Document:

Exhibit 10.17

 

CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED FOR THE REDACTED PORTIONS OF THIS AGREEMENT. THE REDACTIONS ARE
INDICATED WITH FIVE ASTERISKS (“*****”). A COMPLETE VERSION OF THIS AGREEMENT
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

	
   

  

 

 

AMENDED AND RESTATED CREDIT AGREEMENT

 

dated as of December 22, 2009

 

among

 

CSSW, LLC,

as Borrower,

 

CSSW Holdings, LLC,

as CSSW Parent,

 

the Lenders from time to time party hereto,

 

Wells Fargo Bank, National Association,

as the Administrative Agent,

 

and

 

Wells Fargo Bank, National Association,

as the Collateral Agent

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1 DEFINITIONS AND RULES OF INTERPRETATION

  	
  7

  
	
  Section 1.1

  	
  Definitions

  	
  7

  
	
  Section 1.2

  	
  Accounting Terms

  	
  50

  
	
  Section 1.3

  	
  Interpretation, Etc.

  	
  50

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2 THE CREDITS

  	
  51

  
	
  Section 2.1

  	
  The Term Loans

  	
  51

  
	
  Section 2.2

  	
  Procedure for Borrowing

  	
  52

  
	
  Section 2.3

  	
  Evidence of Obligations
  and Notes

  	
  52

  
	
  Section 2.4

  	
  Mandatory Principal and
  Interest Payments on Term Loans

  	
  53

  
	
  Section 2.5

  	
  Default Rate

  	
  54

  
	
  Section 2.6

  	
  Sharing of Payments

  	
  54

  
	
  Section 2.7

  	
  Removal or Replacement of
  a Lender

  	
  55

  
	
  Section 2.8

  	
  Capital Adequacy

  	
  55

  
	
  Section 2.9

  	
  Pro Rata Borrowings;
  Availability

  	
  56

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3 CONDITIONS TO TERM LOANS

  	
  56

  
	
  Section 3.1

  	
  Conditions to the Term
  Loans and Initial Closing Date

  	
  56

  
	
  Section 3.2

  	
  Conditions to Subsequent
  Closing Date

  	
  60

  
	
  Section 3.3

  	
  Conditions to Stetson II
  Effective Date

  	
  64

  
	
  Section 3.4

  	
  Conditions to Stetson II
  Funding Date

  	
  67

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4 PAYMENT, PREPAYMENT AND TAXES

  	
  70

  
	
  Section 4.1

  	
  Mandatory Prepayment

  	
  70

  
	
  Section 4.2

  	
  Voluntary Prepayments

  	
  72

  
	
  Section 4.3

  	
  Payment and Interest
  Cutoff

  	
  72

  
	
  Section 4.4

  	
  Method, Timing and
  Application of Payments

  	
  72

  
	
  Section 4.5

  	
  Taxes

  	
  73

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5 REPRESENTATIONS AND WARRANTIES OF THE
  BORROWER

  	
  76

  
	
  Section 5.1

  	
  Existence

  	
  77

  
	
  Section 5.2

  	
  Power; Authorization;
  Enforceable Obligations

  	
  77

  
	
  Section 5.3

  	
  No Legal Bar

  	
  78

  
	
  Section 5.4

  	
  Principal Place of
  Business; Location of Records

  	
  78

  
	
  Section 5.5

  	
  Subsidiaries

  	
  78

  
	
  Section 5.6

  	
  Payment of Taxes

  	
  78

  
	
  Section 5.7

  	
  Financial Statements and
  Condition

  	
  79

  
	
  Section 5.8

  	
  Accuracy of Information,
  Etc.

  	
  79

  
	
  Section 5.9

  	
  Construction of the
  Stetson II Project

  	
  80

  
	
  Section 5.10

  	
  Title

  	
  80

  
	
  Section 5.11

  	
  Litigation

  	
  80

  
	
  Section 5.12

  	
  Margin Stock

  	
  80

  

 

i

 

	
  Section 5.13

  	
  Employee Benefits

  	
  81

  
	
  Section 5.14

  	
  Environmental Matters

  	
  81

  
	
  Section 5.15

  	
  Investment Company Act of 1940

  	
  82

  
	
  Section 5.16

  	
  Solvency

  	
  82

  
	
  Section 5.17

  	
  Compliance with Requirement of Laws and Permits

  	
  82

  
	
  Section 5.18

  	
  Labor Matters

  	
  82

  
	
  Section 5.19

  	
  Permits, Licenses and Approvals

  	
  82

  
	
  Section 5.20

  	
  Security Documents

  	
  83

  
	
  Section 5.21

  	
  Regulatory Matters

  	
  83

  
	
  Section 5.22

  	
  Events of Loss or Eminent Domain

  	
  84

  
	
  Section 5.23

  	
  Material Project Documents

  	
  84

  
	
  Section 5.24

  	
  No Default Under Material Project Documents

  	
  84

  
	
  Section 5.25

  	
  No Default

  	
  85

  
	
  Section 5.26

  	
  Special Purpose Entity Status

  	
  85

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6
  [RESERVED]

  	
  85

  
	
   

  	
   

  
	
  ARTICLE 7
  REPORTS AND INFORMATION

  	
  85

  
	
  Section 7.1

  	
  Quarterly Financial Statements and Reports

  	
  85

  
	
  Section 7.2

  	
  Annual Financial Statements

  	
  86

  
	
  Section 7.3

  	
  Accountant’s Letters

  	
  86

  
	
  Section 7.4

  	
  Officer’s Certificates

  	
  86

  
	
  Section 7.5

  	
  Annual Budget

  	
  86

  
	
  Section 7.6

  	
  Notice of Defaults

  	
  87

  
	
  Section 7.7

  	
  Reports to Other Creditors

  	
  87

  
	
  Section 7.8

  	
  Miscellaneous

  	
  87

  
	
  Section 7.9

  	
  Other Notices

  	
  87

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8
  FINANCIAL COVENANT

  	
  89

  
	
   

  	
   

  
	
  ARTICLE 9
  AFFIRMATIVE COVENANTS

  	
  89

  
	
  Section 9.1

  	
  Existence and Business

  	
  89

  
	
  Section 9.2

  	
  Name and Location

  	
  90

  
	
  Section 9.3

  	
  Compliance with Laws

  	
  90

  
	
  Section 9.4

  	
  Taxes and Other Obligations

  	
  90

  
	
  Section 9.5

  	
  Maintenance of Properties

  	
  90

  
	
  Section 9.6

  	
  Insurance

  	
  91

  
	
  Section 9.7

  	
  Records and Accounts

  	
  91

  
	
  Section 9.8

  	
  Inspection

  	
  91

  
	
  Section 9.9

  	
  [Reserved]

  	
  91

  
	
  Section 9.10

  	
  Separateness Covenants

  	
  91

  
	
  Section 9.11

  	
  Security Documents

  	
  91

  
	
  Section 9.12

  	
  Project Documents

  	
  92

  
	
  Section 9.13

  	
  [Reserved.]

  	
  92

  
	
  Section 9.14

  	
  Hedging Requirements

  	
  92

  
	
  Section 9.15

  	
  Clipper Bankruptcy

  	
  93

  
	
  Section 9.16

  	
  Further Assurances

  	
  93

  

 

ii

 

	
  Section 9.17

  	
  Mandatory Prepayment of Reserves

  	
  93

  
	
  Section 9.18

  	
  Use of Proceeds

  	
  94

  
	
  Section 9.19

  	
  FERC Approval

  	
  94

  
	
  Section 9.20

  	
  Accuracy of Budgets

  	
  94

  
	
  Section 9.21

  	
  Market-Based Rate Authority

  	
  94

  
	
  Section 9.22

  	
  Additional Collateral

  	
  94

  
	
  Section 9.23

  	
  [Reserved.]

  	
  95

  
	
  Section 9.24

  	
  Independent Director

  	
  95

  
	
  Section 9.25

  	
  Cohocton Holding Company

  	
  95

  
	
  Section 9.26

  	
  Stetson II Project

  	
  96

  
	
  Section 9.27

  	
  Post Stetson Prepayment Obligation to Sell

  	
  96

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  10 NEGATIVE COVENANTS

  	
  97

  
	
  Section 10.1

  	
  Restrictions on Indebtedness; Paying Premiums

  	
  97

  
	
  Section 10.2

  	
  Restriction on Liens

  	
  97

  
	
  Section 10.3

  	
  Investments

  	
  97

  
	
  Section 10.4

  	
  Dispositions of Assets

  	
  97

  
	
  Section 10.5

  	
  Reserved

  	
  98

  
	
  Section 10.6

  	
  Mergers, Consolidation, Etc.

  	
  98

  
	
  Section 10.7

  	
  Distributions

  	
  98

  
	
  Section 10.8

  	
  Sale and Leaseback

  	
  99

  
	
  Section 10.9

  	
  Transactions with Affiliates

  	
  99

  
	
  Section 10.10

  	
  Organizational Documents

  	
  99

  
	
  Section 10.11 

  	
  Amendment of Material Project Documents; Material Additional Project
  Documents; Stetson II Construction Period

  	
  100

  
	
  Section 10.12

  	
  Amendment of Major Project Indebtedness

  	
  101

  
	
  Section 10.13

  	
  Subsidiaries

  	
  101

  
	
  Section 10.14

  	
  Replacement of Operator

  	
  101

  
	
  Section 10.15

  	
  Abandonment of Project

  	
  102

  
	
  Section 10.16

  	
  Special Purpose Entity Status

  	
  102

  
	
  Section 10.17

  	
  Hedging Agreements

  	
  102

  
	
  Section 10.18

  	
  Administrative Services Agreement

  	
  102

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  11 EVENTS OF DEFAULT AND REMEDIES

  	
  103

  
	
  Section 11.1

  	
  Events of Default

  	
  103

  
	
  Section 11.2

  	
  Steel Winds Project and Stetson II Project Event of Default

  	
  108

  
	
  Section 11.3

  	
  Acceleration

  	
  109

  
	
  Section 11.4

  	
  Other Remedies

  	
  109

  
	
  Section 11.5

  	
  Distribution of Proceeds

  	
  110

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  12 THE AGENTS

  	
  110

  
	
  Section 12.1

  	
  Appointment and Authorization

  	
  110

  
	
  Section 12.2

  	
  Delegation of Duties

  	
  111

  
	
  Section 12.3

  	
  Liability of the Agents

  	
  111

  
	
  Section 12.4

  	
  Reliance by the Agents

  	
  112

  
	
  Section 12.5

  	
  Notice of Default

  	
  112

  
	
  Section 12.6

  	
  Credit Decision

  	
  113

  

 

iii

 

	
  Section 12.7

  	
  Indemnification of Agents

  	
  113

  
	
  Section 12.8

  	
  Agents in Individual
  Capacities

  	
  114

  
	
  Section 12.9

  	
  Successor Agents

  	
  114

  
	
  Section 12.10

  	
  Registry

  	
  115

  
	
  Section 12.11

  	
  Force Majeure

  	
  115

  
	
  Section 12.12

  	
  Reliance by Administrative
  Agent

  	
  116

  
	
   

  	
   

  	
   

  
	
  ARTICLE
  13 MISCELLANEOUS

  	
  116

  
	
  Section 13.1

  	
  Costs and Expenses

  	
  116

  
	
  Section 13.2

  	
  Indemnity

  	
  117

  
	
  Section 13.3

  	
  Notices

  	
  120

  
	
  Section 13.4

  	
  Benefit of Agreement

  	
  120

  
	
  Section 13.5

  	
  No Waiver; Remedies Cumulative

  	
  121

  
	
  Section 13.6

  	
  No Third Party Beneficiaries

  	
  121

  
	
  Section 13.7

  	
  Reinstatement

  	
  121

  
	
  Section 13.8

  	
  Accredited Investor

  	
  121

  
	
  Section 13.9

  	
  Counterparts

  	
  121

  
	
  Section 13.10

  	
  Amendment or Waiver

  	
  122

  
	
  Section 13.11

  	
  Assignments, Participations, etc.

  	
  122

  
	
  Section 13.12

  	
  Survival

  	
  125

  
	
  Section 13.13

  	
  WAIVER OF JURY TRIAL

  	
  125

  
	
  Section 13.14

  	
  Right of Set-off

  	
  125

  
	
  Section 13.15

  	
  Severability

  	
  125

  
	
  Section 13.16

  	
  Domicile of Loans

  	
  125

  
	
  Section 13.17

  	
  Limitation of Recourse

  	
  125

  
	
  Section 13.18

  	
  Governing Law; Submission to Jurisdiction

  	
  126

  
	
  Section 13.19

  	
  Complete Agreement

  	
  126

  
	
  Section 13.20

  	
  Confidentiality

  	
  126

  
	
  Section 13.21

  	
  Termination and Release of Liens

  	
  128

  
	
  Section 13.22

  	
  USA Patriot Act

  	
  128

  
	
  Section 13.23

  	
  Acknowledgements

  	
  128

  

 

iv

 

LIST OF EXHIBITS AND SCHEDULES

 

	
  Exhibits

  	
   

  
	
   

  	
   

  
	
  Exhibit A

  	
  Form of Guarantee and
  Security Agreement

  
	
  Exhibit B

  	
  Form of Term Note

  
	
  Exhibit C

  	
  Form of Notice of
  Borrowing

  
	
  Exhibit D 

  	
  Form of Legal Opinion
  of CSSW Parent’s, Borrower’s and Steel Winds Project Company’s In-House
  Counsel

  
	
  Exhibit E

  	
  Form of Legal Opinion
  of Goodwin Procter LLP

  
	
  Exhibit F

  	
  Form of Assignment
  and Acceptance Agreement

  
	
  Exhibit G

  	
  Initial Closing Date
  Organizational Structure

  
	
  Exhibit H

  	
  Form of Undertaking
  Agreement

  
	
  Exhibit I

  	
  Form of Intercreditor
  Agreement

  
	
  Exhibit J

  	
  Form of Compliance
  Certificate

  
	
  Exhibit K

  	
  Stetson II Effective Date
  Organizational Structure

  
	
   

  	
   

  
	
  Schedules

  	
   

  
	
   

  	
   

  
	
  Schedule 1

  	
  Steel Winds Reorganization

  
	
  Schedule 1.1

  	
  Commitments

  
	
  Schedule 2

  	
  Stetson Transmission Line
  Reorganization

  
	
  Schedule 3

  	
  Stetson Reorganization

  
	
  Schedule 3.1(d) 

  	
  List of Material Project
  Documents for Cohocton Project and Stetson I Project

  
	
  Schedule 3.1(e) 

  	
  List of Major Project
  Indebtedness Documents for Cohocton Project and Stetson I Project

  
	
  Schedule 3.2(d)

  	
  List of Steel Winds
  Material Project Documents for Steel Winds Project

  
	
  Schedule 3.3(f)

  	
  List of Material Project
  Documents for Stetson II Project

  
	
  Schedule 5.2

  	
  Consents, Authorizations,
  Filings and Notices

  
	
  Schedule 5.4

  	
  Locations of Principal
  Place of Business

  
	
  Schedule 5.5

  	
  Subsidiaries

  
	
  Schedule 5.6

  	
  Taxes

  
	
  Schedule 5.7

  	
  Material Events

  
	
  Schedule 5.13

  	
  Employee Benefits

  
	
  Schedule 5.19

  	
  Permits, Licenses and
  Approvals

  
	
  Schedule 5.20

  	
  Financing Statements

  
	
  Schedule 5.21(b)

  	
  Regulatory Matters

  
	
  Schedule 10.1

  	
  Indebtedness

  
	
  Schedule 10.2

  	
  Liens

  
	
  Schedule 10.3

  	
  Investments

  
	
  Schedule 11.2(b)

  	
  Amendments to Original
  Credit Agreement

  

 

v

 

AMENDED AND RESTATED CREDIT AGREEMENT

 

This AMENDED AND RESTATED CREDIT AGREEMENT is entered into as of December 22,
2009, by and among (i) CSSW, LLC, a Delaware limited liability company, as
borrower (the “Borrower”), (ii) CSSW Holdings, LLC, a Delaware
limited liability company (the “CSSW Parent”), (iii) the Lenders
from time to time party hereto, (iv) Wells Fargo Bank, National
Association, as the administrative agent for the Lenders from time to time
party hereto (in such capacity, together with its successors in such capacity,
the “Administrative Agent”), and (v) Wells Fargo Bank, National
Association, as the collateral agent for the Secured Parties (in such capacity,
together with its successors in such capacity, the “Collateral Agent”).

 

This Amended and Restated Credit Agreement amends and restates in its
entirety the Credit Agreement, dated as of July 17, 2009, by and among the
Borrower, CSSW Parent, the Lenders from time to time party thereto, the
Administrative Agent and the Collateral Agent, as amended by that certain First
Amendment, Consent and Waiver (the “First Amendment, Consent and Waiver”),
dated as of September 16, 2009, among the Borrower, CSSW Parent and the
Initial Lenders (as so amended, the “Original Credit Agreement”).

 

Recitals

 

WHEREAS, the Initial Lenders have made the Initial Term Loans and the
Subsequent Term Loans to the Borrower on the terms and subject to the
conditions set forth in the Original Credit Agreement;

 

WHEREAS, pursuant to the terms and conditions in the First Amendment,
Consent and Waiver, the Borrower has formed the New Cohocton Holding Company,
as a direct Subsidiary of the Borrower and the Borrower owns directly 100% of
the Equity Interests of the New Cohocton Holding Company. After giving effect
to the reorganization contemplated by Section 9.25 in accordance
with the First Amendment, Consent and Waiver, the New Cohocton Holding Company
now owns 100% of the Equity Interests in the Cohocton Holding Company which
owns 100% of the Equity Interests in the Cohocton Project Companies;

 

WHEREAS, the Borrower, CSSW Parent and the Initial Lenders have agreed
that on the Stetson II Effective Date, the Borrower will form the Stetson
Intermediate Holding Company, as a direct Subsidiary of the Borrower and the
Borrower will own directly 100% of the Equity Interests of the Stetson
Intermediate Holding Company. After giving effect to the Stetson Reorganization
on the Stetson II Effective Date, the Stetson Intermediate Holding Company will
own 100% of the Equity Interests in the Stetson Holding Company which will own
100% of the Equity Interests in the Stetson I Project Company and the Stetson
II Project Company;

 

WHEREAS, in connection with the Stetson Reorganization, the Borrower
has requested that the Initial Lenders make certain additional term loans to
the Borrower and make certain other amendments related thereto; and

 

WHEREAS, the Initial Lenders have agreed to make such additional term
loans to the Borrower and such amendments on the terms and subject to the
conditions as set forth herein.

 

 

NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto do hereby
agree as follows:

 

ARTICLE 1

 

DEFINITIONS AND RULES OF
INTERPRETATION

 

Section 1.1             Definitions.
In addition to the terms defined elsewhere in this Agreement, unless otherwise
specifically provided herein, the following terms, when used herein (including
in the preamble and recitals hereto) with initial capitalization, shall have
the following meanings for all purposes when used in this Agreement:

 

“Additional Project Document” shall mean any
Project Document entered into by or assigned to the Borrower or any of the
Borrower’s Subsidiaries with any other Person (including any Project Document
entered into in substitution for or in replacement of any Project Document that
has been terminated in accordance with its terms or otherwise) (a) with
respect to the Cohocton Project, the Stetson I Project and the Steel Winds
Project, subsequent to the Initial Closing Date and (b) with respect to
the Stetson II Project, subsequent to the Stetson II Effective Date.

 

“Administrative Agent” shall have the meaning
set forth for such term in the preamble hereto, and shall include any successor
administrative agent appointed pursuant to Section 12.9 hereof.

 

“Affiliate” shall mean, with respect to any
Person, (a) any other Person that is directly or indirectly controlled by,
under common control with or controls such Person or (b) any other Person
owning beneficially or controlling ten percent or more of the Voting Stock of
such Person. As used herein, the term “control” shall mean possession,
directly or indirectly, of the power to direct or cause the direction of the
management or policies of a Person, whether through the ownership of partnership
interests or voting securities, by contract or otherwise.

 

“Agents” shall mean, collectively, the
Administrative Agent and the Collateral Agent.

 

“Agreement” shall mean this Amended and
Restated Credit Agreement.

 

“Agreement Change” shall have the meaning set
forth in Section 10.11(a) hereof.

 

“Amendment Measurement Date” shall mean the
effective date of an amendment, supplement or modification to the terms of the
Major Project Indebtedness in the manner described in Section 10.12.

 

“Assignee” shall have the meaning set forth
in Section 13.11 hereof.

 

“Assignment and Acceptance Agreement” shall
have the meaning set forth in Section 13.11 hereof.

 

7

 

“Attorney Costs” shall mean all documented
and reasonable fees and disbursements of any law firm or other external
counsel.

 

“Authorized Officer” shall mean, (a) with
respect to any Person that is a corporation or a limited liability company, any
individual holding the position of chief executive officer, president or vice
president (or the equivalent thereof), chief financial officer, treasurer,
assistant treasurer, secretary or assistant secretary, (b) with respect to
any Person that is a partnership, any individual holding the position of chief
executive officer, president or vice president (or the equivalent thereof),
chief financial officer, treasurer, assistant treasurer, secretary or assistant
secretary of the general partner or managing partner of such Person and (c) with
respect to any other Person, the designated officers of such Person, in each
case whose name appears on a certificate of incumbency of such Person delivered
in accordance with this Agreement, as such certificate may be amended from time
to time.

 

“Bankruptcy Code” shall mean the United
States Federal Bankruptcy Code of 1978, as amended from time to time, and any
successor statute.

 

“Base Case Projections Model” shall mean,
with respect to each Project, a projection of operating results for such
Project over a period ending no sooner than twenty-five (25) years beyond the
commercial operation date of such Project, based on the Borrower’s good faith
estimates and assumptions, as of such commercial operation date, as to revenue
(using the P-50 annual energy estimate provided by AWS Truewind LLC) and
operating expenses over the forecast period.

 

“Borrower” shall have the meaning set forth
for such term in the preamble hereto.

 

“Borrower Credit Party” shall mean the
Borrower, CSSW Parent and each other grantor or obligor under the Security
Documents.

 

“Borrower Net Revenues” shall mean, for any
period, without duplication, the aggregate amount of (a) all Project
Revenues received during such period and (b) all other interest and other
income received by the Borrower and its Subsidiaries in cash during such period
less the aggregate amount of (i) all O&M Costs paid in cash
during such period, (ii) all payments of principal, interest, fees and
other amounts on account of Permitted Indebtedness actually made in cash from
Project Revenues during such period in accordance with the agreements governing
such Permitted Indebtedness (without duplication of any amounts deposited and
held in any Debt Service Account), (iii) all cash payments of taxes made
by the Borrower and its Subsidiaries during such period (without duplication of
any amounts deposited and held in any Tax Distribution Reserve), and (iv) with
respect to the Steel Winds Project, the cash portion of distributions of PTC
Benefits to tax equity investors pursuant to the terms of Qualified Tax Equity
Financings of the Steel Winds Project.

 

“Borrower Tax Distributions” shall have the
meaning set forth in Section 10.7(b) hereof.

 

“Business” shall have the meaning set forth
in Section 5.14(a) hereof.

 

8

 

“Business Day” shall mean any day that is
neither a Saturday or Sunday nor a legal holiday or a day on which commercial
banks and the Federal Reserve Bank are authorized or required to be closed in
New York City, Minneapolis, Minnesota or in Toronto, Ontario, Canada.

 

“Calculation Period” shall mean, as of an
Interest Payment Date, the period from and including the Initial Closing Date
to but excluding the first Interest Payment Date, and thereafter, the period
from and including the prior Interest Payment Date to but excluding the next
Interest Payment Date.

 

“Call Premium” shall mean an amount equal to
the product of (a) the amount of outstanding principal of the Terms Loans
being prepaid in accordance with Section 4.1 or Section 4.2,
as applicable, and (b) the applicable premium as set forth below:

 

	
  Period of Prepayment

  	
   

  	
  Call
  Premium

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  During the period commencing on the Initial Closing Date and ending
  on the second anniversary of the Initial Closing Date

  	
   

  	
  20

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  During the period commencing after the second anniversary of the
  Initial Closing Date and ending on the third anniversary of the Initial
  Closing Date

  	
   

  	
  15

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  During the period commencing after the third anniversary of the
  Initial Closing Date and ending on the fourth anniversary of the Initial
  Closing Date

  	
   

  	
  10

  	
  %

  
	
   

  	
   

  	
   

  	
   

  
	
  Thereafter

  	
   

  	
  0

  	
  %

  

 

“Capital Adequacy Regulation” shall mean any
guideline, request or directive of any central bank or other Governmental
Authority, or any other Requirement of Law, whether or not having the force of
law, in each case regarding capital adequacy of any bank or of any corporation
controlling a bank.

 

“Capital Expenditure” shall mean, for any
period, with respect to any Person, the aggregate expenditures or Indebtedness
incurred by such Person and its Consolidated Subsidiaries for the purchase or
lease (pursuant to a capital lease) of fixed or capital assets or additions to
equipment (including replacements, capitalized repairs and improvements) that
are required to be capitalized under GAAP on the consolidated balance sheet of
such Person and its Consolidated Subsidiaries.

 

“Cash Equivalents” shall mean Investments
held by the Borrower and its Subsidiaries as set forth in clauses (a) through
(f) of the definition of “Permitted Investments”.

 

9

 

“Cash-Funded Reserve Amounts” shall mean,
with respect to a Calculation Period, the Reserve Amounts for a Project that
have been funded with Borrower Net Revenues received during the applicable
Calculation Period.

 

“Cash Interest” shall have the meaning set
forth in Section 2.4(a) hereof.

 

“Change of Control” shall mean an event or
any series of events by which (a) the Parent ceases to have the power,
directly or indirectly, to vote or direct the voting of membership interests
carrying the voting rights to elect the majority of the board of managers or
directors of CSSW Parent, (b) the Parent ceases to own of record and
beneficially, directly or indirectly, at least 51% of each class of Equity
Interests of the CSSW Parent, (c) CSSW Parent ceases to own and control of
record and beneficially, directly, 100% of each class of outstanding Equity
Interests of the Borrower, (d) the Borrower ceases to own and control, of
record and beneficially, directly, 100% of each class of outstanding Equity
Interests of (i) the Stetson Intermediate Holding Company, (ii) New
York Wind III and (iii) the New Cohocton Holding Company, (e) the
Borrower ceases to own and control, of record and beneficially, directly or
indirectly, 100% of each class of outstanding Equity Interests of the Cohocton
Holding Company and each of the Cohocton Project Companies, (f) the
Borrower ceases to own and control, of record and beneficially, directly or
indirectly, 100% of each class of outstanding Equity Interests in the Stetson
Holding Company, the Stetson I Project Company and the Stetson II Project
Company, (g) the Borrower ceases to own and control of record and
beneficially, directly or indirectly, 100% of each class of outstanding Equity
Interests in the Steel Winds Holding Company and the Steel Winds Project
Company or (h) New York Wind III ceases to own and control of record and
beneficially, directly, 100% of each class of outstanding Equity Interests in
the Steel Winds Holding Company and, subject only to the rights of Steel Winds
LLC, a Delaware limited liability company, to receive “Company Interests” as
set forth in and as defined in the Steel Winds Project Company LLC Agreement as
in effect on the date hereof, the Steel Winds Holding Company ceases to own and
control, of record and beneficially, directly, 100% of each class of
outstanding Equity Interests of the Steel Winds Project Company; provided,
however, that if any of the events described in clauses (g) and (h) above
should occur as a result of a Qualified Tax Equity Financing, such event shall
not constitute a “Change of Control” hereunder.

 

“Claim” shall have the meaning set forth in
the definition of “Environmental Claim.”

 

“Clipper” shall mean Clipper Turbine Works, Inc.,
a Delaware corporation.

 

“Closing Date” shall mean, as to the Initial
Term Loans, the Initial Closing Date, as to the Subsequent Term Loans, the
Subsequent Closing Date, and as to the Stetson II Term Loans, the Stetson II
Funding Date.

 

“Code” shall mean the Internal Revenue Code
of 1986, as amended from time to time, and regulations promulgated and rulings
issued thereunder. Section references to

 

10

 

the Code are as in effect at the date hereof and any subsequent
provisions of the Code, amendatory thereof, supplemental thereto or substituted
therefor.

 

“Cohocton Companies” shall mean (a) the
New Cohocton Holding Company, (b) the Cohocton Holding Company and (c) the
Cohocton Project Companies; provided that any Subsidiaries of the
foregoing Persons described in clauses (a), (b) and (c) created or
formed after the Initial Closing Date shall for all purposes of the Loan
Documents be considered Cohocton Companies.

 

“Cohocton Debt-Funded Reserve Amounts” shall
mean the Reserve Amounts (other than Reserve Amounts permitted to be funded
solely with Project Revenues and/or Equity Contributions) for the Cohocton
Project that have been funded with Indebtedness of the Cohocton Project.

 

“Cohocton Holding Company” shall mean New
York Wind, LLC, a Delaware limited liability company.

 

“Cohocton Host Community Agreement” shall
mean, collectively, that certain Host Community Agreement, dated as of August 10,
2007, by and between Canandaigua Power Partners, LLC and the Town of Cohocton,
and that certain Host Community Agreement, dated as of August 10, 2007, by
and between Canandaigua Power Partners II, LLC and the Town of Cohocton, each
as amended from time to time.

 

“Cohocton Major Indebtedness Prepayment Trigger”
shall mean, as applicable, the Initial Cohocton Major Indebtedness Prepayment
Trigger or the Second Cohocton Major Indebtedness Prepayment Trigger.

 

“Cohocton Mini-Perm Financing” shall mean the
transactions contemplated in and Indebtedness incurred pursuant to, the
Financing Agreement, dated as of March 30, 2009, among the Cohocton
Holding Company, HSHN, as arranger, administrative agent and security agent,
Norddeutsche Landesbank Girozentrale, as arranger and the lenders parties
thereto, as amended by that certain Government Grant and Amendment, dated as of
November 12, 2009.

 

“Cohocton Permitted Indebtedness” shall mean
the following Indebtedness incurred by the Cohocton Companies in the aggregate
with respect to the Cohocton Project:

 

1.             Major
Project Indebtedness (which includes, as of the Initial Closing Date, the
Cohocton Mini-Perm Financing) the aggregate principal amount of which, at any
time, does not exceed:

 

(a)           Until
December 31, 2010, $95,500,000 plus the Cohocton Debt-Funded Reserve
Amounts that are outstanding during any period subject to compliance with Section 9.17,
adjusted as follows (such amount, the “Initial Cohocton Major Indebtedness
Prepayment Trigger”):

 

11

 

(i)            Upon
the receipt by any Cohocton Company of Net Cash Proceeds of any ITC Grant in
respect of the Cohocton Project, the Initial Cohocton Major Indebtedness
Prepayment Trigger shall be reduced by the amount of such Net Cash Proceeds, on
a dollar for dollar basis, in an amount of reduction not to exceed $14,500,000;
and

 

(ii)           With
respect to any Refinancing Indebtedness, to the extent that the Yield on such
Refinancing Indebtedness as of the applicable Yield Measurement Date exceeds
the Yield Cap, the Initial Cohocton Major Indebtedness Prepayment Trigger shall
be reduced in increments of $3,333,333 for each full 50 basis points by which
such Yield exceeds the Yield Cap.

 

(b)           On
and after January 1, 2011, $81,000,000 plus the Cohocton Debt-Funded
Reserve Amounts that are outstanding during any period subject to compliance
with Section 9.17, adjusted as follows (such amount, the “Second
Cohocton Major Indebtedness Prepayment Trigger”):

 

(i)            The
Second Cohocton Major Indebtedness Prepayment Trigger shall be reduced from
time to time by any payments, repayments, prepayments and/or redemptions of
principal made from time to time on and after January 1, 2011 in respect
of such Major Project Indebtedness; provided, however, that
payments, repayments, prepayments and/or redemptions of principal resulting
from the incurrence of any Refinancing Indebtedness shall not cause any such
reductions; and

 

(ii)           With
respect to any Refinancing Indebtedness, to the extent that the Yield on such
Refinancing Indebtedness as of the applicable Yield Measurement Date exceeds
the Yield Cap, the Second Cohocton Major Indebtedness Prepayment Trigger shall
be reduced in increments of $3,333,333 for each full 50 basis points by which
such Yield exceeds the Yield Cap.

 

2.             Excess
Cohocton Permitted Project Indebtedness so long as the mandatory prepayment
applicable thereto has been made pursuant to Section 4.1(b);

 

3.                                       LC
Indebtedness;

 

4.             Other
Permitted Indebtedness; and

 

5.             the
Obligations.

 

“Cohocton Project” shall mean the 125 MW wind
powered electrical generating facility owned by the Cohocton Project Companies
located in Steuben County, New York.

 

12

 

“Cohocton Project Companies” shall mean, as
applicable, Canandaigua Power Partners, LLC, a Delaware limited liability
company, and Canandaigua Power Partners II, LLC, a Delaware limited liability
company.

 

“Cohocton Reserve Line” shall mean the sum of
(a) at the Borrower’s option, either (i) twelve months of interest
reserves that are required to be, and actually are, held in reserve accounts
(excluding Debt Service Accounts) pursuant to the applicable Major Project
Indebtedness Documents or (ii) if repayment for such Major Project
Indebtedness is on an amortization schedule of not less than 10 years, six
months of principal, interest and other debt service reserves that are required
to be, and actually are, held in reserve accounts (excluding Debt Service
Accounts) pursuant to applicable Major Project Indebtedness Documents, (b) an
amount funded solely with Project Revenues and/or Equity Contributions not to
exceed $3,200,000 in respect of punch list reserves that is required to be, and
is currently, held pursuant to the Cohocton Mini-Perm Financing as in existence
on the Initial Closing Date, (c) an amount not to exceed $4,000,000 in the
aggregate for any other non-debt service related reserves that are required to
be, and actually are, held pursuant to applicable Major Project Indebtedness
Documents, and (d) amounts funded solely with Project Revenues and/or
Equity Contributions that are required to be, and actually are, held in a Debt
Service Account.

 

“Collateral” shall mean all Property that in
accordance with the Security Documents is intended to be subject to any Lien in
favor of the Collateral Agent and/or the Secured Parties.

 

“Collateral Agent” shall have the meaning set
forth for such term in the preamble hereto, and shall include any successor
collateral agent appointed pursuant to Section 12.9 hereof.

 

“Committed Capacity” shall mean the aggregate
amount of capacity (measured in MWhs) for which a firm purchase obligation
exists under a Permitted Power Document.

 

“Commodity Hedge/Power Sales Agreement” shall
mean any agreement (including each confirmation entered into pursuant to a
master agreement or similar agreement) providing for any swap, cap, collar,
put, call, floor, future, option, spot, forward or credit sleeve, and any power
and/or capacity purchase or sale agreement, power transmission agreement,
ancillary services and capacity sales and purchase agreements, renewable energy
credit or other environmental attributes sale or purchase agreements, netting
agreement or similar agreement entered into in respect of any commodity, or any
energy management agreement, and including any agreement providing for credit
support for any of the foregoing (which shall be considered as part of the
agreement to which it relates for purposes of this definition), in all cases
whether settled physically or financially.

 

“Compliance Certificate” shall mean a
certificate duly executed by a Financial Officer of the Borrower substantially
in the form of Exhibit J.

 

13

 

“Consolidated Subsidiary” shall mean each
Subsidiary of a Person (whether now existing or hereafter created) the
financial statements of which shall be (or should have been) consolidated with
the financial statements of such Person in accordance with GAAP and with
appropriate deductions for minority interests in Subsidiaries, as required by
GAAP. Unless otherwise indicated, each reference to the term “Consolidated
Subsidiary” shall mean a Subsidiary consolidated into the Borrower and shall
exclude, except with respect to the Historical Financial Statements,
Prattsburgh.

 

“Contingent Obligations” shall mean, as to
any Person, any agreement, obligation, undertaking or arrangement by which such
Person assures, guarantees, endorses, contingently agrees to purchase or
provides funds for the payment of, or otherwise becomes or is contingently
liable upon, or incurs any obligation of, any Indebtedness, leases, dividends
or other obligations (“primary obligations”) of any other Person (the “primary
obligor”) in any manner, whether directly or indirectly, including, without
limitation, any obligation of such Person, whether or not contingent, (a) to
purchase any such primary obligation or any property constituting direct or
indirect security therefor, (b) to advance or supply funds (i) for
the purchase or payment of any such primary obligation or (ii) to maintain
working capital or equity capital of the primary obligor or otherwise to
maintain the net worth or solvency of the primary obligor, including, without
limitation, any so-called “keepwell” or “makewell” agreement, (c) to
purchase property, securities or services primarily for the purpose of assuring
the owner of any such primary obligation of the ability of the primary obligor
to make payment of such primary obligation, (d) otherwise to assure,
indemnify or to hold harmless the owner of such primary obligation against loss
in respect thereof, (e) with respect to any letter of credit of such
Person or as to which that Person is otherwise liable for reimbursement of
drawings, or (f) with respect to any hedging agreement; provided, however,
that “Contingent Obligation” shall not include endorsements of instruments for
deposit or collection in the Ordinary Course of Business. The amount of any
Contingent Obligation shall be deemed to be an amount equal to the stated or
determinable amount of the primary obligation in respect of which such
Contingent Obligation is made or, if not stated or determinable, the maximum
reasonably anticipated liability in respect thereof (assuming such Person is
required to perform thereunder) as determined by such Person in good faith.

 

“Contractual Obligation” shall mean, as to
any Person, any provision of any security issued by such Person or of any
material agreement, instrument or other undertaking to which such Person is a
party or by which it or any of its material property is bound.

 

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

 

“Debt-Funded Reserve Amounts” shall mean,
collectively, the Cohocton Debt-Funded Reserve Amount, the Steel Winds
Debt-Funded Reserve Amount and the Stetson Debt-Funded Reserve Amount.

 

“Debt Service Account” shall mean an account
into which amounts are required to be deposited for payment of, and are
deposited in amounts not to exceed, the next

 

14

 

scheduled payment of principal and interest pursuant to applicable
Major Project Indebtedness Documents.

 

“Debtor Relief Law” shall mean the Bankruptcy
Code and all other Requirements of Law relating to liquidation,
conservatorship, bankruptcy, assignment for the benefit of creditors,
moratorium, rearrangement, receivership, insolvency, reorganization, windingup,
composition or readjustment of debts or similar debtor relief laws of the
United States or other applicable jurisdictions from time to time in effect and
affecting the rights of creditors generally.

 

“Default” shall mean an Event of Default or
an event or condition that with the passage of time or giving of notice, or
both, would become an Event of Default.

 

“Default Rate” shall mean the Interest Rate
in effect from time to time plus four percent (4%) per annum.

 

“Distributable ITC Amount” shall mean (a) with
respect to the Cohocton Project, an amount (if positive) equal to (i) the
aggregate Net Cash Proceeds of all ITC Grants received with respect to the
Cohocton Project, less (ii) the greater of the amount of such ITC Grant
that is required to be applied toward payment of Major Project Indebtedness of
the Cohocton Project and $14,500,000, less (iii) the amount of previous
distributions of Distributable ITC Amounts with respect to the Cohocton
Project, (b) with respect to the Stetson I Project, an amount (if
positive) equal to the (i) aggregate Net Cash Proceeds of all ITC Grants
received with respect to the Stetson I Project, less (ii) the greater of
the amount of such ITC Grant that is required to be applied toward payment of
Major Project Indebtedness of the Stetson I Project and $18,000,000, less (iii) the
amount of previous distributions of Distributable ITC Amounts with respect to
the Stetson I Project and (c) with respect to the Stetson II Project, an
amount (if positive) equal to (i) the aggregate Net Cash Proceeds of all
ITC Grants received with respect to the Stetson II Project, less (ii) the
greater of the amount of such ITC Grant that is required to be applied toward
payment of Major Project Indebtedness of the Stetson II Project and
$19,000,000, less (iii) the amount of previous distributions of
Distributable ITC Amounts with respect to the Stetson II Project.

 

“Distribution” shall mean as to any Person, (a) the
declaration or payment of any dividend on or in respect of any shares of any
class of capital stock (or other Equity Interests) of such Person, other than
dividends payable solely in shares of common stock (or other common Equity
Interests) of such Person, (b) the purchase, redemption, defeasance or
other acquisition or retirement of any shares of any class of capital stock (or
other Equity Interests) of such Person, either directly or indirectly, whether
in cash or Property or in any shares of such Person, (c) any other
distribution on or in respect of any shares of any class of capital stock (or
other Equity Interests) of such Person, either directly or indirectly, whether
in cash or Property or in any shares of such Person, and (d) any payment
on account of, any setting apart or allocating any sum for the payment of, any
dividend or distribution, or for the purchase, redemption, defeasance,
retirement or other acquisition of, any shares of capital stock (or other
Equity Interests) of such Person, either directly or indirectly, whether in
cash or Property or in any shares of such Person;

 

15

 

provided that any distribution of PTC Benefits to a tax
equity investor pursuant to the terms of a Qualified Tax Equity Financing with
respect to the Steel Winds Project permitted hereunder shall not be considered
a “Distribution” hereunder.

 

“Distribution Reserve Account” shall mean an
account into which amounts are required by the terms of Major Project
Indebtedness to be held prior to distribution to the upstream equity owners but
after application to all prior provisions of the account waterfall under the
terms of such Major Project Indebtedness.

 

“Dollar” or “$” shall mean United
States dollars.

 

“Eligible Assignees” shall mean any Person
that is (a) a commercial bank, insurance company, investment or mutual
fund or other Person that is an “accredited investor” (as defined in Regulation
D of the Securities Act of 1933, as amended) and (b) not in the business
of developing, owning, constructing or operating wind farms in the United
States, or manufacturing or constructing wind turbines in the United States, or
any Affiliate of such a Person, except that a financial services Affiliate
shall qualify as an Eligible Assignee under this clause (b) if such
financial services Affiliate has not, and does not at the time of any
assignment to such financial services Affiliate, engage in or control any
business described in the foregoing provision of this clause (b).

 

“Eligible Reinvestment” shall mean with
respect to an Event of Loss, a reinvestment to replace, repair, restore or
rebuild the Property subject to such Event of Loss.

 

“Enforcement Action” shall mean any action or
proceeding against (a) CSSW Parent, (b) the Borrower, (c) from
the Subsequent Closing Date, to the extent grantors under the Security
Documents, until the Steel Winds Project Collateral is released pursuant to the
Security Documents, the Steel Winds Holding Company and the Steel Winds Project
Company or, (d) all or any part of the Collateral, in each case under the
foregoing clauses (a) through (d), taken for the purpose of (i) enforcing
the rights of any Secured Party under or in respect of the Collateral or the
Security Documents, including, without limitation, the initiation of any action
in any court or before any administrative agency or governmental tribunal to
enforce such rights, and any action to exercise any rights provided in this
Agreement or the Security Documents and (ii) adjudicating or seeking a
judgment on a claim.

 

“Environmental Claim” shall mean any and all
obligations, liabilities, losses, administrative, regulatory or judicial
actions, suits, demands, decrees, claims, Liens, judgments, warning notices,
notices of noncompliance or violation, investigations, inquiries, requests for
information, proceedings, removal or remedial actions or orders, or damages
(foreseeable and unforeseeable, including consequential and punitive damages),
penalties, fees, out-of-pocket costs, expenses, disbursements, attorneys’ or
consultants’ fees, arising under or relating in any way to any Environmental
Law or any Permit or Governmental Approval required by or issued under any such
Environmental Law (hereafter as used in this definition, “Claims”),
including (a) any and all Claims by Governmental Authorities for
enforcement, cleanup, removal, response, remedial or other

 

16

 

actions or damages arising under or pursuant to any applicable
Environmental Law, and (b) any and all Claims by any third party seeking
damages, contribution, indemnification, cost recovery, compensation or
injunctive relief resulting from or relating to hazardous substances or arising
from alleged injury or threat of injury to health, safety or the environment
(including natural resources, plants, animals and their habitats).

 

“Environmental Law” shall mean any
Requirement of Law or regulation pertaining to the protection of the
environment (including natural resources, plants, animals and their habitats),
or public health, or to the storage, handling, use or generation of hazardous
substances in or at the workplace, or to worker health or safety, whether now
existing or hereafter enacted.

 

“EPC Contract” shall mean that certain
Stetson II Wind Power Project Construction Contract, dated as of September 30,
2009, between Stetson Wind II, LLC, and Reed & Reed, Inc., as
modified by that certain Limited Notice to Proceed, dated as of September 30,
2009, and as further modified by that certain Second Limited Notice to Proceed
and Amendment to Contract, dated as of November 24, 2009.

 

“Equity Contribution” shall mean funds
contributed to the Borrower (through CSSW Parent) by CSSW Parent’s direct or
indirect equity holders.

 

“Equity Documents” shall mean the
Subscription Agreement, dated as of the Initial Closing Date, by and between
the Parent, PIP3PX FirstWind LLC Ltd. and PIP3GV FirstWind LLC Ltd., and the
Fifth Amended and Restated Limited Liability Agreement of the Parent.

 

“Equity Interests” shall mean, with respect
to any Person, all of the shares, interests, membership interests,
participations, or other equivalents (however designated) of such Person’s
capital stock, including all classes of common or preferred capital stock, or
partnership, limited liability company or other equity, ownership or profit
interests at any time outstanding, including, without limitation, the right to
share in profits and losses, the right to receive distributions of cash and
other property, and the right to receive allocations of items of income, gain,
loss, deduction and credit and similar items from such Person, whether or not
such interests include voting or similar rights entitling the holder thereof to
exercise control over such Person, all of the warrants, options or other rights
for the purchase or acquisition from such Person of shares of capital stock of
(or other interests in) such Person, all of the securities convertible into or
exchangeable for shares of capital stock of (or other interests in) such Person
or warrants, rights or options for the purchase or acquisition from such Person
of such shares (or such other interests) (but excluding any debt security that
is convertible into or exchangeable for such shares), and all of the other
ownership or profit interests in such Person (including partnership, member or
trust interests therein), whether voting or nonvoting, and whether or not such
shares, warrants, options, rights or other interests are outstanding on any
date of determination.

 

“ERISA” shall mean the Employee Retirement
Income Security Act of 1974, as amended from time to time.

 

17

 

“ERISA Affiliate” shall mean any trade or
business (whether or not incorporated) that, together with any of CSSW Parent,
the Borrower or the Borrower’s Subsidiaries, is treated as a single employer
under Section 414 of the Code.

 

“ERISA Event” shall mean: (a) any
Reportable Event, (b) the existence with respect to any Plan of a
non-exempt Prohibited Transaction that results in liability to the CSSW Parent,
the Borrower, or any of the Borrower’s Subsidiaries, (c) any failure by
any Pension Plan to satisfy the minimum funding standards (within the meaning
of Section 412 of the Code or Section 302 of ERISA) applicable to
such Pension Plan, whether or not waived, (d) the filing pursuant to Section 412
of the Code or Section 303 of ERISA of an application for a waiver of the
minimum funding standard with respect to any Pension Plan, the failure to make
by its due date a required installment under Section 412(m) of the
Code with respect to any Pension Plan or the failure by any of CSSW Parent, the
Borrower or the Borrower’s Subsidiaries or any of its ERISA Affiliates to make
any required contribution to a Multiemployer Plan, (e) the incurrence by
any of CSSW Parent, the Borrower or the Borrower’s Subsidiaries or any of its
ERISA Affiliates of any liability under Title IV of ERISA with respect to the
termination of any Pension Plan, including but not limited to the imposition of
any lien in favor of the PBGC or any Pension Plan, (f) a determination
that any Pension Plan is, or is expected to be, in “at risk” status (within the
meaning of Title IV of ERISA), (g) the receipt by any of CSSW Parent, the
Borrower or the Borrower’s Subsidiaries or any of its ERISA Affiliates from the
PBGC or a plan administrator of any notice relating to an intention to
terminate any Pension Plan or to appoint a trustee to administer any Pension
Plan under Section 4042 of ERISA, (h) the incurrence by any of CSSW
Parent, the Borrower or the Borrower’s Subsidiaries or any of its ERISA
Affiliates of any liability with respect to the withdrawal or partial
withdrawal from any Pension Plan or Multiemployer Plan, or (i) the receipt
by any of CSSW Parent, the Borrower or the Borrower’s Subsidiaries or any of
its ERISA Affiliates of any notice, or the receipt by any Multiemployer Plan
from CSSW Parent, the Borrower or the Borrower’s Subsidiaries or any ERISA
Affiliate of any notice, concerning the imposition of Withdrawal Liability or a
determination that a Multiemployer Plan is, or is expected to be, insolvent, in
reorganization or in endangered or critical status, within the meaning of Section 432
of the Code or Section 305 or Title IV of ERISA.

 

“Event of Abandonment” shall have the meaning
set forth in Section 10.15 hereof.

 

“Event of Default” shall have the meaning set
forth in Section 11.1 hereof.

 

“Event of Eminent Domain” shall mean (a) any
condemnation, nationalization, seizure or expropriation by a Governmental
Authority of all or a material portion of any Project or the Property or the
assets of CSSW Parent, the Borrower or of the Borrower’s Subsidiaries, (b) any
assumption by a Governmental Authority of control of any Project or a material
portion of the Property, assets or business operations of CSSW Parent, the
Borrower or any of the Borrower’s Subsidiaries, (c) any taking of any
action by a Governmental Authority for the dissolution or disestablishment of
CSSW Parent, the Borrower or any of the Borrower’s Subsidiaries or (d) any
taking of any action by a

 

18

 

Governmental Authority that would prevent CSSW Parent, the Borrower or
any of the Borrower’s Subsidiaries from carrying on a material portion of its
business or operations.

 

“Event of Loss” shall mean any fire,
explosion, accident, drought, storm, hail, earthquake, embargo, act of God or
of the public enemy, other loss, damage, casualty or destruction event (whether
or not covered by insurance) or an Event of Eminent Domain.

 

“Excess Cash” shall mean, with respect to the
Borrower and its Subsidiaries, an amount, without duplication, equal to
Borrower Net Revenues received during the applicable Calculation Period less,
to the extent funded with Borrower Net Revenues received during the applicable
Calculation Period, subject to compliance with Section 9.17, the
Cash-Funded Reserve Amounts and cash amounts paid in respect of Borrower Tax
Distributions (without duplication of any Tax Distribution Reserves) during the
applicable Calculation Period.

 

“Excess Cohocton Permitted Project Indebtedness”
shall mean the aggregate amount of Major Project Indebtedness of the Cohocton Companies
that exceeds the then applicable Cohocton Major Indebtedness Prepayment
Trigger.

 

“Excess Permitted Project Indebtedness” shall
mean, collectively, Excess Cohocton Permitted Project Indebtedness and Excess
Stetson Permitted Project Indebtedness.

 

“Excess Reserves” shall mean, with respect to
each Calculation Period, the amount by which the aggregate Reserve Amounts
exceed the Reserve Cap.

 

“Excess Stetson Permitted Project Indebtedness”
shall mean the aggregate amount of Major Project Indebtedness of the Stetson
Companies that exceeds the then applicable Stetson Major Indebtedness
Prepayment Trigger.

 

“Excluded Taxes” shall mean (a) income,
profits, franchise, or similar Taxes imposed on (or measured by) any Lender’s
net income, net profits or capital imposed on such Lender as a result of a
present, former or future connection between such Lender and the jurisdiction
of the taxing authority imposing such tax or any political subdivision or
taxing authority thereof or therein (other than a connection between such
Lender and the jurisdiction of the taxing authority arising solely as a result
of its execution and the delivery of any Loan Document or its exercise of its
rights or performance of its obligations thereunder), (b) any branch
profits Taxes imposed by the United States or any similar Tax imposed by any
other jurisdiction in which the Borrower is incorporated or formed, (c) any
withholding Tax that is imposed on amounts payable to a Lender at the time the
Lender (including an assignee of a Lender) becomes a party to this Agreement
(or designates a new lending office) or is attributable to a Lender’s (or its
assignee’s) failure to comply with Section 4.5(f) hereof,
except to the extent that (i) the Lender (or its assignor, if any) was
entitled, at the time of designation of a new lending office (or assignment),
to receive additional amounts from the Borrower with respect to such
withholding Tax pursuant to Section 4.5(a) or (ii) the
assignment, acquisition, designation of a new lending office or the appointment
of a successor Agent occurs as a result of the

 

19

 

Borrower’s request pursuant to Section 4.5(h), and (d) Taxes
imposed as a result of the Administrative Agent’s or such Lender’s gross
negligence or willful misconduct (it being understood and agreed, for the
avoidance of doubt, that any withholding tax imposed on a Lender (or assignee
of a Lender) as a result of a change in law occurring after the time such
Lender (or assignee of a Lender) became a party to this Agreement (or
designates a new lending office) shall not be an Excluded Tax).

 

“Exempt Wholesale Generator” shall mean an
“exempt wholesale generator” under PUHCA 2005.

 

“FERC” shall have the meaning set forth in Section 5.21(a) hereof.

 

“Financial Officer” shall mean the chief
financial officer, treasurer or assistant treasurer of any Person.

 

“First Amendment, Consent and Waiver” shall
have the meaning set forth in the preamble hereof.

 

“Fiscal Quarter” shall mean during each
Fiscal Year each quarter ending on March 31, June 30, September 30
or December 31.

 

“Fiscal Year” shall mean the fiscal year of
the Borrower and its Consolidated Subsidiaries ending on December 31 of
each calendar year.

 

“Foreign Benefit Arrangement” shall mean any
employee benefit arrangement mandated by non-US law that is maintained or
contributed to by any of CSSW Parent, the Borrower or the Borrower’s
Subsidiaries or any of their respective Affiliates or ERISA Affiliates.

 

“Foreign Lender” shall have the meaning set
forth in Section 4.5(f)(i) hereof.

 

“Foreign Plan” shall mean each employee
benefit plan (within the meaning of Section 3(3) of ERISA, whether or
not subject to ERISA) that is not subject to U.S. law and is maintained or
contributed to by any of CSSW Parent, the Borrower or the Borrower’s
Subsidiaries or any of their respective Affiliates or ERISA Affiliates.

 

“FPA” shall have the meaning set forth in Section 5.21(a) hereof.

 

“generally accepted accounting principles” or
“GAAP” shall mean accounting principles generally accepted in the United
States of America as defined by controlling pronouncements of the Financial
Accounting Standards Board, as from time to time in effect.

 

“Good Faith Contest” shall mean the contest
of an item if (a) the item is diligently being contested in good faith
and, when applicable, by appropriate proceedings timely instituted, (b) adequate
reserves are established in accordance with GAAP with respect to the contested
item (if and to the extent GAAP requires the establishment of such reserves) or
secured by a bond, and (c) the failure to pay or comply with the contested

 

20

 

item during the period of such contest would not reasonably be expected
to result in a Material Adverse Effect.

 

“Governmental Approval” shall mean any
authorization, consent, approval, license, ruling, Permit, tariff, rate,
certification, exemption, variance, claim, Judgment, publication, notice,
declarations, or regulation or registration with, of, by or to any Governmental
Authority.

 

“Governmental Authority” shall mean any
nation or government, any state, local or other political subdivision thereof,
any agency, authority, instrumentality, regulatory body, court, central bank or
other entity exercising executive, legislative, judicial, taxing, regulatory or
administrative functions of or pertaining to government, any securities
exchange and any self-regulatory organization.

 

“Guarantee and Security Agreement” shall have
the meaning set forth in the definition of “Security Documents”.

 

“Hazardous Substances” shall mean any
gasoline or petroleum (including crude oil or any fraction thereof) or
petroleum products, polychlorinated biphenyls, urea-formaldehyde insulation,
asbestos, toxic molds, pollutants, contaminants, radioactivity and any other
substance that is regulated pursuant to or could give rise to liability under
any Environmental Law.

 

“Hedging Agreement” shall mean any agreement
with respect to any interest rate swap, cap, collar, forward, future or derivative
transaction or option or similar agreement involving, or settled by reference
to, one or more rates, currencies, commodities, equity or debt instruments or
securities, or economic, financial or pricing indices or measures of economic,
financial or pricing risk or value or any similar transaction or any
combination of these transactions; provided that no phantom stock or
similar plan providing for payments only on account of services provided by
current or former directors, officers, employees or consultants of CSSW Parent,
the Borrower or the Borrower’s Subsidiaries shall be a Hedging Agreement.

 

“Historical Financial Statements” shall mean,
(a) as of the Initial Closing Date, (i) the audited financial
statements of New York Wind II and its Consolidated Subsidiaries for the 2008
Fiscal Year, consisting of balance sheets and the related consolidated
statements of income, members’ equity and cash flows for such Fiscal Year, (ii) the
unaudited financial statements of each of the Cohocton Holding Company and the
Stetson I Project Company for the 2008 Fiscal Year, consisting of balance
sheets and the related statements of income, members’ equity and cash flows for
such Fiscal Year and (iii) the unaudited financial statements of New York
Wind II and its Consolidated Subsidiaries, the Cohocton Holding Company and the
Stetson I Project Company for the Fiscal Quarter ended March 31, 2009,
each consisting of a balance sheet and the related statements of income,
members’ equity and cash flows for the three month period ending on such date, (b) as
of the Subsequent Closing Date, the unaudited financial statements of the Steel
Winds Project Company for the 2007 and 2008 Fiscal Years and the Fiscal Quarter
ended March 31, 2009 and each other Fiscal Quarter of the Steel Winds
Project

 

21

 

Company for the 2009 Fiscal Year ending at least 60 days prior to the
Subsequent Closing Date, consisting of balance sheets and the related
statements of income, members’ equity and cash flows for such Fiscal Years and
such Fiscal Quarter and (c) as of the Stetson II Effective Date, the
unaudited financial statements of the Stetson Holding Company, Stetson I
Project Company and Stetson II Project Company for the 2008 and 2009 Fiscal
Years and each other Fiscal Quarter for the 2010 Fiscal Year ending at least 60
days prior to the Stetson II Effective Date consisting of balance sheets and
the related statements of income, members’ equity and cash flows for such
Fiscal Years and such Fiscal Quarters, in the case of all such financial
statements delivered under clauses (a), (b) and (c), certified by a
Financial Officer of the Person delivering such Financial Statements that they
fairly present, in all material respects, the financial condition of such
Person and, if applicable, its Consolidated Subsidiaries as at the dates
indicated and the results of their operations and their cash flows for the
periods indicated, subject, in the case of unaudited financial statements, to
changes resulting from audit and normal year end adjustments and the absence of
footnotes.

 

“Holdings Lien Indebtedness” shall have the
meaning set forth in the Intercreditor Agreement.

 

“HSHN” shall mean HSH Nordbank AG, New York
Branch.

 

“HSHN Parent/Turbine Facilities” shall mean,
collectively, (a) that certain Second Amended and Restated Guaranty, dated
as of July 17, 2009, by Parent in favor of HSHN, (b) that certain
Fourth Amended and Restated Promissory Note, dated as of July 17, 2009,
between First Wind Acquisition, LLC and HSHN, (c) that certain Second
Amended and Restated Promissory Note, dated as of July 17, 2009, between
First Wind Acquisition IV, LLC and HSHN, and (d) that certain Letter of
Credit and Reimbursement Agreement, dated as of July 17, 2009, between
Parent and HSHN (each as amended, supplemented, amended and restated or
otherwise modified from time to time).

 

“HSHN Stetson I Amendments” shall mean,
collectively, (a) the Financing Agreement, dated as of the Initial Closing
Date, by and among the Stetson I Project Company, HSHN, and the lenders party
thereto and the Collateral Documents (as defined therein), and (b) the
Termination and Release, dated as of the Initial Closing Date, by and among
HSHN, the Stetson I Project Company and First Wind Acquisition, LLC.

 

“Indebtedness” of any Person shall mean,
without duplication: (a) all indebtedness for borrowed money, (b) all
earn-out and other obligations issued, undertaken or assumed as the deferred
purchase price of Property or services (other than unsecured trade payables
incurred in the Ordinary Course of Business and so long as such trade payables
are payable within 90 days after the date the respective Property is delivered
or services rendered and are not overdue), (c) the face amount of all
letters of credit (and, without duplication, all drafts drawn and reimbursement
obligations with respect thereto), acceptances, surety bonds and other similar
instruments issued for the account of such Person, (d) all obligations
evidenced by notes, bonds, debentures or similar instruments, (e) all
indebtedness created or arising under any conditional sale or other title
retention agreement, or incurred as financing, in either case with respect to

 

22

 

Property
acquired by such Person, (f) all capital lease obligations, (g) the
principal balance outstanding under any synthetic lease, off-balance sheet loan
or similar off balance sheet financing products, (h) the liquidation value
of all redeemable preferred Equity Interests, (i) all obligations under
Hedging Agreements, (j) all Contingent Obligations in respect of
indebtedness or obligations of others of the kinds referred to in clauses (a) through
(i) above; and (k) all obligations of the kind referred to in clauses
(a) through (j) above secured by (or for which the holder of such
obligation has an existing right, contingent or otherwise, to be secured by)
any Lien upon Property owned by such Person, even though such Person has not
assumed or become liable for the payment of such obligation. The Indebtedness
of any Person shall include the Indebtedness of any other entity (including any
partnership in which such Person is a general partner) to the extent such
Person is liable therefor as a result of such Person’s ownership interest in or
other relationship with such entity, except to the extent that the terms of
such Indebtedness expressly provide that such Person is not liable therefor.

 

“Indemnified Claim” shall have the meaning set forth in Section 13.2(c) hereof.

 

“Indemnified Liabilities” shall have the meaning set forth in Section 13.2(a) hereof.

 

“Indemnified Matters” shall have the meaning set forth in Section 13.2(b) hereof.

 

“Indemnified Person” shall have the meaning set forth in Section 13.2(a) hereof.

 

“Independent Engineer” shall mean Garrad Hassan Americas, Inc.
or such other nationally recognized independent engineer reasonably acceptable
to the Initial Lenders.

 

“Initial Closing Date” shall mean the date on which all
conditions precedent set forth in Section 3.1 have been satisfied
or waived in writing by the Initial Lenders.

 

“Initial Cohocton Major Indebtedness Prepayment Trigger” shall
have the meaning set forth in the definition of “Cohocton Permitted
Indebtedness”.

 

“Initial Lenders” shall mean, collectively, PIP3PX FirstWind
Debt Ltd. and PIP3GV FirstWind Debt Ltd.

 

“Initial Power Hedging Documents” shall mean the following
Hedging Agreements: (a) on and after the Initial Closing Date, (i) the
ISDA Master Agreement, dated as of June 11, 2008, by and between the Stetson
Holding Company and Constellation Energy Commodities Group, Inc., as
amended by the Schedule to the 1992 ISDA Master Agreement and the Confirmation,
dated as of June 11, 2008, (ii) the ISDA Master Agreement, dated as
of August 21, 2007, by and between the Cohocton Holding Company and Credit
Suisse Energy LLC, as amended by that certain First Amendment to ISDA Master
Agreement, dated as of August 20, 2008, as further amended by that certain
Second Amendment to ISDA Master Agreement, dated as of December 11, 2008,
and as further amended by that certain Third Amendment to ISDA Master
Agreement, dated as of March 27, 2009, as amended by the Schedule to the
1992 ISDA Master Agreement and the Confirmation, dated as of August 21,
2007, (b) on and after the Subsequent

 

23

 

Closing
Date, “Initial Power Hedging Documents” shall also include the Commodity Swap
Confirmation, dated as of September 20, 2006, by and between the Steel
Winds Project Company and Morgan Stanley Capital Group, Inc., and (c) on
and after the Stetson II Effective Date, “Initial Power Hedging Documents”
shall also include the Power Purchase Agreement, dated as of September 29,
2009, by and between the Stetson II Project Company and President and Fellows
of Harvard College.

 

“Initial Stetson Major Indebtedness Prepayment Trigger” shall
have the meaning set forth in the definition of “Stetson Permitted
Indebtedness”.

 

“Initial Term Loan” shall have the meaning set forth in Section 2.1(a)(i)(A) hereof.

 

“Initial Term Loan Commitment” shall mean, as to any Initial
Lender, the aggregate amount set forth opposite such Initial Lender’s name for
the Initial Closing Date in Schedule 1.1. The aggregate Initial Term
Loan Commitment of all Initial Lenders as of the Initial Closing Date is
$100,000,000.

 

“Initial U.S. Taxes” shall have the meaning set forth in Section 4.5(i) hereof.

 

“Intercreditor Agreement” shall mean the Intercreditor
Agreement, dated as of the Initial Closing Date, by and among the Collateral
Agent and HSHN, as collateral agent for the holders of the Holdings Lien
Indebtedness, and acknowledged by the Borrower, CSSW Parent and certain other
Affiliates of the Borrower which shall be substantially in the form of Exhibit I
attached hereto.

 

“Interest Election” shall have the meaning set forth in Section 2.4(a) hereof.

 

“Interest Payment Date” shall mean (a) the last Business
Day of each June and December prior to the Maturity Date, and (b) the
Maturity Date; provided that the initial Interest Payment Date shall occur in December 2009.

 

“Interest Rate” shall mean (a) with respect to Cash
Interest, 12.0% per annum and (b) with respect to PIK Interest, 14.0% per
annum.

 

“Investment” shall have the meaning set forth in Section 10.3
hereof.

 

“ITC Grant” shall mean a cash grant issued in respect of
investment tax credits pursuant to The American Recovery and Reinvestment Act
of 2009, as amended from time to time.

 

“Judgment” shall mean the final, non-appealable judgment,
decree, award, order, writ or injunction of, or issued by, any Governmental
Authority, on consent or otherwise.

 

“LC Conversion Indebtedness” shall mean Indebtedness consisting
of reimbursement obligations with respect to letters of credit of the Borrower
or its Subsidiaries that are converted into or otherwise paid with the proceeds
of revolving or

 

24

 

term
Indebtedness or that otherwise remain due and unreimbursed after the due date
thereof.

 

“LC Indebtedness” shall mean Indebtedness consisting of the
available amount of letters of credit with respect to the Initial Power Hedging
Documents, any Replacement IPH Document or any other Permitted Power Document
for the sale of power, capacity and/or renewable energy credits, (a) prior
to the Subsequent Closing Date, in an aggregate amount of up to $30,000,000
with respect to the Cohocton Project (including the Cohocton Companies) and the
Stetson I Project (including the Stetson Companies), (b) on and after the
Subsequent Closing Date until the Stetson II Effective Date, in an aggregate
amount of up to $40,000,000 with respect to the Cohocton Project (including the
Cohocton Companies), the Stetson I Project (including the Stetson Companies)
and the Steel Winds Project (including the Steel Winds Companies) and (c) on
and after the Stetson II Effective Date, in an aggregate amount of up to
$45,000,000 with respect to the Cohocton Project (including the Cohocton
Companies), the Stetson I Project and Stetson II Project (including the Stetson
Companies) and the Steel Winds Project (including the Steel Winds Companies).

 

“Lehman Tax Equity Buyback” shall mean the repurchase of all of
the Class B membership interests held by Lehman First Wind Holdings, LLC,
a Delaware limited liability company, in New York Wind II, and the termination,
satisfaction and release of all rights of Lehman First Wind Holdings, LLC,
under the Lehman Tax Equity Financing Documents.

 

“Lehman Tax Equity Financing” shall mean any financing pursuant
to the Lehman Tax Equity Financing Documents.

 

“Lehman Tax Equity Financing Documents” shall mean (a) that
certain Agreement for Purchase of Membership Interests in UPC New York Wind 2,
LLC, dated as of January 31, 2008, between Lehman First Wind Holdings, LLC
and New York Wind III (the “Purchase Agreement”), and the Amended and
Restated Limited Liability Agreement of New York Wind II, dated as of August 18,
2008, (b) that certain Guarantee, dated as of August 18, 2008, in
favor of New York Wind III, pursuant to which Lehman Brothers Holdings Inc.
guaranteed payment by Lehman First Wind Holdings LLC of all obligations of
Lehman First Wind Holdings LLC owed to New York Wind III under the terms of the
Purchase Agreement and (c) that certain Guarantee, dated as of August 18,
2008, in favor of Lehman First Wind Holdings LLC, pursuant to which First Wind
Holdings, LLC guaranteed payment by New York Wind III of obligations of New
York Wind III owed to Lehman First Wind Holdings LLC under the terms of the
Purchase Agreement.

 

“Lenders” shall mean the Initial Lenders and any other Person
who becomes a Successor Lender hereunder in accordance with the terms of Section 13.11
hereof, and their respective successors.

 

“Lien” shall mean, with respect to any Property of any Person,
any mortgage, pledge, security interest, encumbrance, deposit arrangement,
hypothecation, lien

 

25

 

(statutory
or otherwise), charge or other security interest or any preference, proxy or
other security agreement or preferential arrangement of any kind or nature
whatsoever (including any agreement to give any of the foregoing, any
conditional sale or other title retention agreement or any lease in the nature
thereof), or any other arrangement pursuant to which title to the property is retained
by or vested in some other Person for security purposes.

 

“Loan Documents” shall mean this Agreement, the Term Notes, the
Security Documents, the Undertaking Agreement, the Intercreditor Agreement, the
First Amendment, Consent and Waiver and any other present or future agreement
from time to time entered into among CSSW Parent, the Borrower, the
Administrative Agent, the Collateral Agent and/or the Lenders in connection
with the above-described documents (excluding for the avoidance of doubt, the Holdings
Loan Documents (as defined in the Intercreditor Agreement)).

 

“Loss Proceeds” shall mean (a) all amounts and proceeds
(including instruments), condemnation awards or other compensation awards,
damages and other payments or relief (including compensation payable in
connection with a Taking) and received by CSSW Parent, the Borrower or any of
the Borrower’s Subsidiaries in respect of any Event of Loss and (b) all
amounts and proceeds (including instruments) received by CSSW Parent, the
Borrower or the Borrower’s Subsidiaries in respect of any insurance policy
maintained by CSSW Parent, the Borrower or the Borrower’s Subsidiaries, except
for any proceeds from any business interruption insurance policies maintained
by CSSW Parent, the Borrower or the Borrower’s Subsidiaries.

 

“Losses” shall have the meaning set forth in Section 13.2(b) hereof.

 

“Major Project Indebtedness” shall mean Indebtedness the
proceeds of which are used to finance, or refinance, replace, refund, extend or
are offered in exchange for any Indebtedness that had been previously incurred
to finance, the development, turbine or other asset acquisition or construction
costs for or operation of a Project, including (a) the Cohocton Mini-Perm
Financing, (b) from the Initial Closing Date until the Stetson II
Effective Date, the Stetson I Existing Financing, (c) on and after the
Stetson II Effective Date, the Stetson Portfolio Financing and (d) any
Permitted Project Indebtedness in respect thereof, other than (x) LC
Indebtedness and (y) Other Permitted Indebtedness.

 

“Major Project Indebtedness Approval” shall mean the receipt by
the Borrower or one of its Subsidiaries of the waiver, consent, approval and/or
agreement, as applicable, of the agent and/or lenders required to permit the
matter in question under the terms of the applicable Major Project Indebtedness
Documents.

 

“Major Project Indebtedness Documents” shall mean any and all
documents, agreements, instruments and letters evidencing, or providing
security for, Major Project Indebtedness permitted hereunder.

 

26

 

“Majority Lenders” shall mean, at any time, the Lenders holding
more than 50% of the aggregate outstanding principal amount of the Term Loans
(including any PIK Interest added to the principal amount of Term Loans).

 

“Margin Stock” shall mean, margin stock within the meaning of
Regulation U and Regulation X.

 

“Material Additional Project Document” shall mean any Additional
Project Document (excluding, for the avoidance of doubt, any Project Document
set forth on Schedule 3.1(d), Schedule 3.2(d) or Schedule
3.3(f) and replacements thereof, which are “Material Project
Documents”) (a) entered into by the Borrower or any of its Subsidiaries
after (i) with respect to the Cohocton Project or the Stetson I Project,
the Initial Closing Date, (ii) with respect to the Steel Winds Project,
the Subsequent Closing Date and (iii) with respect to the Stetson II
Project, the Stetson II Effective Date and (b) that is (i) a Material
Power Document or (ii) if not covered by the foregoing clause (i), (A) the
absence of which Additional Project Document could reasonably be expected to
result in a Material Adverse Effect or (B) that contains terms which could
reasonably be expected to result in a twenty percent (20%) or larger reduction
in Borrower Net Revenues calculated in the aggregate for all Material
Additional Project Documents in any Fiscal Year (including, in any case, any
such agreement that replaces an existing Material Additional Project Document
in accordance with Section 11.1(j)).

 

“Material Adverse Effect” shall mean a material and adverse
effect on (a) the business, Property, operations, assets or condition
(financial or otherwise) of the Borrower and its Subsidiaries, taken as a whole
or (b) the ability of CSSW Parent or the Borrower to perform its
obligations under the Loan Documents, (c) the legality, validity or
enforceability of any material provision of any of the Loan Documents or (d) the
ability of the Agents or the Lenders to enforce the rights and remedies of the
Secured Parties under the Loan Documents.

 

“Material Power Document” shall mean any Permitted Power
Document with (a) a minimum committed transaction term of two (2) years
(excluding the term of any master agreements or other agreements under which no
sale or hedging commitment exists) and (b) covering ten percent (10%) or
more of the aggregate capacity (measured in MWhs) with respect to either the
Cohocton Project or the Stetson I Project or twenty percent (20%) or more of
the aggregate capacity (measured in MWhs) with respect to the Stetson II Project,
individually; provided that none of the following shall be considered a
Material Power Document under this Agreement: (i) any power transmission
agreement or (ii) any renewable energy credit or other environmental
attributes sale or purchase agreement.

 

“Material Project Documents” shall mean the following
agreements: (a) on and after the Initial Closing Date, each of the
agreements listed on Schedule 3.1(d) and any Replacement IPH
Document and any replacement of any of the other agreements set forth on such
Schedule in accordance with Section 11.1(j), (b) on and after
the Subsequent Closing Date, in addition to the agreements set forth in clause
(a), each of the agreements listed on Schedule 3.2(d) and any
Replacement IPH Document and any

 

27

 

replacement
of any of the other agreements set forth on such Schedule in accordance with Section 11.1(j),
(c) on and after the Stetson II Effective Date, in addition to the
agreements set forth in clauses (a) and (b), each of the agreements listed
on Schedule 3.3(f) and any Replacement IPH Document and any
replacement of any of the other agreements set forth on such Schedule in
accordance with Section 11.1(j) and (d) any Material
Additional Project Document (and any replacement of the foregoing).

 

“Maturity Date” shall mean January 17, 2018.

 

“Moody’s” shall mean Moody’s Investors Services, Inc.

 

“Multiemployer Plan” shall mean any ERISA Plan that is a
multiemployer plan (as defined in Section 4001(a)(3) of ERISA).

 

“Net Cash Proceeds” shall mean:

 

(a)           with respect to the
issuance or incurrence of any Indebtedness or any Qualified Tax Equity
Financing, the aggregate cash proceeds actually received by CSSW Parent, the
Borrower, or any of the Borrower’s Subsidiaries pursuant to such Indebtedness
or Qualified Tax Equity Financing, net of (i) the transaction costs
actually incurred in connection with the incurrence or issuance of such
Indebtedness or Qualified Tax Equity Financing (including any sales or
underwriter’s commission, investment banker’s commission or fees, attorneys’
fees and expenses and other customary fees and expenses), and (ii) to the
extent actually funded with the proceeds of such incurrence or issuance of
Indebtedness or Qualified Tax Equity Financing, subject to compliance with Section 9.17,
the Debt-Funded Reserve Amounts; and

 

(b)           with respect to any
ITC Grant, the aggregate cash proceeds actually received by the Borrower or its
Subsidiaries pursuant to such ITC Grant, net of the costs relating to the
application, pursuit and collection of such ITC Grant (including any attorneys’
fees and expenses actually incurred in connection therewith).

 

“Net Remaining Loss Proceeds” shall mean an amount equal to: (a) any
Loss Proceeds minus (b) (i) reasonable and documented expenses
incurred by CSSW Parent, the Borrower or any of the Borrower’s Subsidiaries in
connection with the adjustment, settlement or litigation of any claims of CSSW
Parent, the Borrower or such Subsidiary in respect thereof and (ii) any
reasonable and documented expenses incurred or expected to be incurred in
connection with any sale or transfer of property being conducted pursuant to an
Event of Eminent Domain, including income or transfer taxes payable as a result
of any gain recognized in connection therewith.

 

“New Cohocton Holding Company” shall mean CSSW Cohocton
Holdings, LLC, a Delaware limited liability company.

 

“New York Wind II” shall mean New York Wind II, LLC, a Delaware
limited liability company.

 

28

 

“New York Wind III” shall mean New York Wind III, LLC, a
Delaware limited liability company.

 

“Nominee Agreement” shall mean the Nominee Agreement, dated as
of August 18, 2008, among the Cohocton Project Companies, Prattsburgh, the
Cohocton Holding Company, and New York Wind III, and acknowledged by New York
Wind II and Lehman First Wind Holdings, LLC, a Delaware limited liability
company, as in effect on the Initial Closing Date.

 

“Non Consenting Lender” shall have the meaning set forth in Section 2.7
hereof.

 

“Non-Excluded Taxes” shall mean Taxes other than Excluded Taxes
and Other Taxes.

 

“Non-Financing O&M Reserve” shall have the meaning set forth
in the definition of “Reserve Amounts”.

 

“Non hedged Term” shall have the meaning set forth in Section 9.14
hereof.

 

“Notice of Borrowing” shall have the meaning set forth in Section 2.2
hereof.

 

“Notice Office” shall have the meaning set forth in
Section 13.3 hereof.

 

“O&M Costs” shall mean, collectively, without duplication,
whether paid directly or indirectly by or on behalf of the Borrower and its
Subsidiaries (a) costs of administering the Projects, (b) costs of
operating and maintaining the Projects paid or payable by any Subsidiary of the
Borrower, (c) direct operating and maintenance costs of the Projects and
any Capital Expenditures made in connection with required maintenance of the
Projects or required by Requirements of Law or Governmental Approvals with
respect to the Projects or required by the terms of any Major Project Indebtedness
Documents or Commodity Hedge/Power Sales Agreement with respect to the
Projects, in each case paid or payable by any Subsidiary of the Borrower, (d) insurance
premiums paid or payable in respect of the insurance maintained or to be
maintained in respect of the Projects by any Subsidiary, (e) property,
sales, value-added, excise, franchise and other similar taxes paid or payable
by CSSW Parent, the Borrower or any Subsidiary of the Borrower (other than
taxes imposed on or measured by income), (f) costs and fees paid or
payable by any Subsidiary of the Borrower in connection with obtaining and
maintaining in effect the Governmental Approvals required in connection with
the Projects, (g) administrative, legal, accounting and other professional
fees and fees and expenses incurred in the Ordinary Course of Business in
connection with the Projects and CSSW Parent, the Borrower and the Subsidiaries
of the Borrower paid or payable by any of the foregoing and (h) costs of
operating and maintaining common facilities payable by any Subsidiary of the
Borrower; provided that O&M Costs shall exclude any payments of
principal, interest or other amounts on account of Indebtedness.

 

“Obligations” shall mean, collectively, (a) all present and
future loans, advances, debts, obligations, Indebtedness and liabilities of
CSSW Parent, the Borrower or any other Borrower Credit Party to the Lenders at
any time of every kind, nature and

 

29

 

description
however arising, owed to any Secured Party of every kind and description under
the Loan Documents (whether or not evidenced by any note or instrument and
whether or not for the payment of money), whether direct or indirect, joint
and/or several, absolute or contingent, matured or unmatured, now existing or
hereafter arising, contractual or tortious, liquidated or unliquidated,
including, without limitation, all interest (including PIK Interest), fees,
charges, expenses, reimbursements, indemnities and/or amounts paid or advanced
by the Secured Parties to, on behalf of, or for the benefit of, any such Person
pursuant to the Loan Documents, obligations of performance as well as
obligations of payment, and all interest, fees and other amounts that accrue
after the commencement of any proceeding under any Debtor Relief Law by or
against any such Person or its property, whether or not post-filing interest,
fees or other amounts are allowed in such proceeding, (b) any and all sums
advanced by any Secured Party in order to preserve the Collateral or to
preserve the Liens as provided in the Security Documents; and (c) in the
event of any Enforcement Action, the reasonable and properly documented
expenses of retaking, holding, preparing for sale or lease, selling or
otherwise disposing of or realizing on the Collateral, or of any exercise by
the Collateral Agent and/or the Secured Parties of their rights under the
Security Documents, together with reasonable attorneys’ fees and court costs.

 

“OID” shall have the meaning set forth in the definition of “Yield”.

 

“Operator” shall mean First Wind O&M, LLC, a Delaware
limited liability company, or any other Operator appointed in accordance with Section 10.14
hereof.

 

“Ordinary Course of Business” shall mean, in respect of any
Person, the ordinary course operation of such Person’s business undertaken in
good faith and not for purposes of evading any provision of any Loan Document
or material Requirement of Law.

 

“Organizational Documents” shall mean (a) for any
corporation, the certificate or articles of incorporation, the bylaws, any
certificate of designation or other instrument relating to the rights of
preferred shareholders or stockholders of such corporation, any shareholder
rights agreement and all applicable resolutions of the board of directors (or any
committee thereof) of such corporation, (b) for any partnership, the
partnership agreement and, if applicable, the certificate of limited
partnership, and (c) for any limited liability company, the operating
agreement and articles or certificate of formation or organization and all
applicable resolutions of any managing member of such limited liability
company.

 

“Original Credit Agreement” shall have the meaning set forth in
the preamble hereof.

 

“Originating Lender” shall have the meaning set forth in Section 13.11(d) hereof.

 

“Other Permitted Indebtedness” with respect to a Person, shall
mean:

 

(a)           in addition to
Permitted Project Indebtedness, Indebtedness entered into in the Ordinary
Course of Business, including guarantees, working capital facilities, capital
leases, purchase money obligations, and other Indebtedness that

 

30

 

does
not constitute LC Indebtedness, the aggregate outstanding principal amount of
which at any time does not exceed $8,000,000; provided that
notwithstanding the foregoing, (i) the first $2,000,000 in LC Conversion
Indebtedness shall be permitted under this clause (a) and shall not be
counted towards the foregoing $8,000,000 limitation, (ii) the amount of LC
Conversion Indebtedness that exceeds $2,000,000 shall be permitted under this
clause (a) but any such excess that is outstanding more than sixty (60)
days since its incurrence shall be counted towards the foregoing $8,000,000
limitation, (iii) any excess LC Conversion Indebtedness above such
$8,000,000 limitation shall be deemed Major Project Indebtedness subject to the
Cohocton Major Indebtedness Prepayment Trigger or the Stetson Major Project
Indebtedness Prepayment Trigger or Indebtedness of Steel Winds under clause (1) of
the definition of Steel Winds Permitted Debt, as applicable and (iv) prior
to the Subsequent Closing Date, New York Wind III shall be permitted to be an
obligor or guarantor under the Steel Winds Letters of Credit and the aggregate
stated amount of such Steel Winds Letters of Credit shall be counted towards
the $8,000,000 limitation set forth in clause (i);

 

(b)           Indebtedness set
forth on Schedule 10.1 and any Refinancing Indebtedness in respect
thereto (without increasing the principal amount thereof);

 

(c)           Indebtedness which
may be deemed to exist pursuant to any performance, surety, statutory, appeal
or similar obligations incurred in the Ordinary Course of Business;

 

(d)           Indebtedness in
respect of netting services, overdraft protections and similar services, in
each case in connection with deposit accounts;

 

(e)           Hedging Agreements
entered into in accordance with Section 10.17 and Sections 9.14,
10.11 or 11.1(j) hereof;

 

(f)            Guaranties by (i) any
Cohocton Company of any Indebtedness of any other Cohocton Company, (ii) any
Stetson Company of any Indebtedness of any other Stetson Company or guaranties
by a Subsidiary of the Stetson Intermediate Holding Company of Indebtedness of
the Stetson Intermediate Holding Company, the Stetson Holding Company or any
other of its Subsidiaries and (iii) any Steel Winds Company of any
Indebtedness of any other Steel Winds Company, in each case in respect of any
other Permitted Indebtedness; provided that if the Indebtedness that is
being guaranteed is unsecured and/or subordinated to the Obligations, the
guaranty shall also be unsecured and/or subordinated to the Obligations on
terms reasonably satisfactory to the Administrative Agent;

 

(g)           intercompany
Indebtedness owing by (i) any Subsidiary of the Borrower to the Borrower
(to the extent permitted by Section 10.3), (ii) any Cohocton
Company to any other Cohocton Company, (iii) any Stetson Company to any
other Stetson Company and (iv) any Steel Winds Company to any other Steel
Winds Company; provided that such Indebtedness shall be unsecured (it
being understood that this proviso does not restrict the ability to pledge the
right

 

31

 

to
receive payments under such Indebtedness to the lenders under any Stetson
Permitted Project Indebtedness) and (if such Subsidiary of the Borrower is a
Borrower Credit Party) subordinated in right of payment to the Obligations on
terms reasonably satisfactory to the Administrative Agent; and

 

(h)           Indebtedness
incurred in connection with the Holdings Lien Indebtedness and secured by a
second-priority Lien upon Property of the Obligors (as defined in the
Intercreditor Agreement); provided that none of CSSW Parent, the
Borrower or any of the Borrower’s Subsidiaries have assumed or become liable
for such Indebtedness and that the exposure of the Borrower and its
Subsidiaries thereunder is limited to the grant by the Borrower and its
Subsidiaries of second-priority Liens in connection therewith as contemplated
by the Intercreditor Agreement and subject to the terms of the Intercreditor
Agreement.

 

“Other Taxes” shall have the meaning set forth in Section 4.5(c) hereof.

 

“Overflow Reserve” shall have the meaning set forth in the
definition of “Reserve Amounts”.

 

“Parent” shall mean First Wind Holdings, LLC, a Delaware limited
liability company.

 

“Participant” shall have the meaning set forth in Section 13.11(d) hereof.

 

“Participation Register” shall have the meaning set forth in Section 13.11(g) hereof.

 

“Payment Office” shall mean the office of the Administrative
Agent or the Collateral Agent, as applicable, designated in writing from time
to time as such to each of the other parties hereto.

 

“PBGC” shall mean the Pension Benefit Guaranty Corporation
established pursuant to Section 4002 of ERISA, and any successor thereto.

 

“Pension Plan” shall mean any Plan (other than a Multiemployer
Plan) subject to the provisions of Title IV of ERISA or Section 412 of the
Code or Section 302 of ERISA and in respect of which any of CSSW Parent,
the Borrower or the Borrower’s Subsidiaries or any ERISA Affiliate is (or, if
such Plan were terminated, would under Section 4069 of ERISA be deemed to
be) an “employer” as defined in Section 3(5) of ERISA.

 

“Permit” shall mean any approval, consent, waiver, exemption,
variance, franchise, order, permit, authorization, right, registration, filing,
or license of, with or from a Governmental Authority.

 

“Permitted Disposition” shall have the meaning set forth in Section 10.4
hereof.

 

32

 

“Permitted Distributions” shall have the meaning set forth in Section 10.7  hereof.

 

“Permitted Indebtedness” shall mean, collectively, Cohocton
Permitted Indebtedness, Stetson Permitted Indebtedness and Steel Winds
Permitted Indebtedness, and, in the case of CSSW Parent and the Borrower, the
Obligations.

 

“Permitted Investments” shall mean any of the following:

 

(a)           direct obligations
of, or obligations the principal of and interest on which are unconditionally
guaranteed by, the United States of America (or by any agency thereof to the
extent such obligations are backed by the full faith and credit of the United
States of America), in each case maturing within one year from the date of
acquisition thereof;

 

(b)           investments in
commercial paper rated (on the date of acquisition thereof) A1+ or better and
P1+ or better by S&P and Moody’s, respectively, maturing within ninety (90)
days after the date of acquisition thereof;

 

(c)           investments in
certificates of deposit, banker’s acceptances and time deposits maturing within
ninety (90) days from the date of acquisition thereof issued or guaranteed by
or placed with any Lender or any domestic office of any commercial bank
organized under the laws of the United States of America or any state thereof
that has a combined capital and surplus and undivided profits of not less than
$500,000,000  and whose outstanding
senior long-term  unsecured  indebtedness is rated (on the date of
acquisition thereof) A or better and A2 or better by S&P and Moody’s,
respectively;

 

(d)           investments in money
market funds rated “AA” or better by S&P and “Aa” or better by Moody’s;

 

(e)           collateralized
repurchase agreements with a term of not more than thirty (30) days after the
acquisition thereof for securities described in clause (a) above and entered
into with a financial institution satisfying the criteria described in clause (c) above;

 

(f)            securities with
maturities of one year or less from the date of acquisition issued or fully
guaranteed by any state, commonwealth or territory of the United States of
America, or any political subdivision or taxing authority thereof, and rated at
least A by S&P and A2 by Moody’s;

 

(g)           Investments
outstanding on the Initial Closing Date and identified in Schedule 10.3;

 

(h)           Contingent
Obligations constituting Permitted Indebtedness and identified in Schedule
10.3;

 

(i)            indemnities made in
the Loan Documents or in any Major Project Indebtedness Documents;

 

33

 

(j)            Investments by CSSW
Parent in the Borrower and Investments by the Borrower (i) in wholly-owned
domestic Subsidiaries in existence on the Stetson II Effective Date and in
Persons that, following such Investments, are wholly-owned domestic
Subsidiaries of the Borrower; provided that, other than for the purpose
of paying any O&M Costs, the source of such Investments is solely from the
proceeds of capital contributed to the Borrower by the Parent and not Excess
Cash or other amounts held or otherwise distributed to the Borrower by its
Subsidiaries; and provided, further, that any such Investments,
other than for those made for the purpose of paying O&M Costs, shall be
made in the form of loans by the Borrower and documented in the form of an
intercompany note which shall be pledged as Collateral to secure the Obligations,
(ii) that are contemplated by the Stetson Transmission Line Reorganization
and (iii) in Prattsburgh in connection with the Unwind of Prattsburgh; provided
that the source of such Investments is solely from the proceeds of capital
contributed to the Borrower (through CSSW Parent) by the Parent and not Excess
Cash or other amounts held or otherwise distributed to the Borrower by its
Subsidiaries;

 

(k)           Investments
consisting of Hedging Agreements permitted to be incurred pursuant to Section 10.1;

 

(l)            advances, loans or
extensions of credit by CSSW Parent, the Borrower or any of the Borrower’s
Subsidiaries to officers, directors, employees and agents of CSSW Parent, the
Borrower or any of the Borrower’s Subsidiaries (i) in the Ordinary Course
of Business for travel, entertainment or relocation expenses not to exceed the
aggregate amount existing on the date hereof or otherwise not to exceed
$300,000  in the aggregate at any one
time outstanding and (ii) relating to indemnification or reimbursement of
such officers, directors, employees and agents in respect of liabilities
relating to their service in such capacities;

 

(m)          Investments received
in connection with the bankruptcy or reorganization of suppliers and customers
and in settlement of delinquent obligations of, and other disputes with,
customers and supplier arising in the Ordinary Course of Business;

 

(n)           accounts, chattel
paper and notes receivable arising from the sale or lease of goods or the
performance of services in the Ordinary Course of Business;

 

(o)           Capital Expenditures
using Loss Proceeds as permitted by this Agreement or that constitute O&M
Costs;

 

(p)           acquisitions of
assets in the Ordinary Course of Business reasonably required in connection
with the operation of the Projects;

 

(q)           deposits in the
Ordinary Course of Business to secure the performance of operating leases and
payment of utility contracts;

 

34

 

(r)            other Investments
not permitted under the foregoing clauses (a) through (q) in an
aggregate amount at any time outstanding not to exceed $500,000;

 

(s)           Investments that
were Cash Equivalents when made;

 

(t)            Without limitation
of the foregoing clauses (a) through (s), Investments by the obligor with
respect to Major Project Indebtedness that are explicitly permitted or required
by the terms of such Major Project Indebtedness, in an aggregate amount at any
time outstanding not to exceed $500,000; and

 

(u)           any other
Investments approved by the Majority Lenders.

 

“Permitted Liens” shall mean any of the following: (a) any
Liens created pursuant to (i) the Loan Documents, (ii) Hedging
Agreements (other than Commodity Hedge/Power Sales Agreements) permitted
pursuant to Section 10.1 hereof in respect of interest rate
exposure related to Major Project Indebtedness, and (iii) the terms of any
Permitted Project Indebtedness; (b) Liens imposed by law for taxes that
are not yet due or that are the subject to a Good Faith Contest or for which
security for such Lien has otherwise been provided in accordance with GAAP; (c) carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like Liens
imposed by Requirements of Law, arising in the Ordinary Course of Business and
securing obligations that are not overdue by more than ninety (90) days (or
such longer period that is permitted by the terms thereof) and that in the
aggregate could not reasonably be expected to have a Material Adverse Effect or
that are the subject of a Good Faith Contest or for which security for such
Liens has otherwise been provided in accordance with GAAP or in the form of a
bond; (d) pledges and deposits made in the Ordinary Course of Business in
compliance with workers’ compensation, unemployment insurance and other social
security laws or regulations; (e) cash deposits (including letters of
credit) to secure the performance of bids, trade contracts (other than for
borrowed money), leases, statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature, in each case in the Ordinary
Course of Business; (f) Liens arising solely by virtue of any statutory or
common law provision relating to banker’s liens, rights of set-off or similar
rights and remedies as to deposit accounts or other funds maintained with a
creditor depository institution; (g) easements, rights-of-way,
restrictions, defects or other exceptions to title or other similar
encumbrances incurred in the Ordinary Course of Business and that are not
incurred to secure Indebtedness and that do not and could not reasonably be
expected to have a Material Adverse Effect; (h) any Liens, easements,
zoning restrictions, rights-of-way or similar encumbrances on real property
comprising the route for transmission; (i) Liens arising out of Judgments
or awards that do not otherwise constitute an Event of Default; (j) purported
Liens evidenced by the filing of precautionary UCC financing statements
relating to operating leases of personal property entered into in the Ordinary
Course of Business or permitted by this Agreement; (k) Liens created
pursuant to PILOT Agreements and the Cohocton Host Community Agreement; (l) Liens
created on customary terms and in the Ordinary Course of Business under the
terms of any Permitted Power Document that secure obligations thereunder; (m) Liens
set forth on Schedule 10.2; and (n) Liens on the Collateral
securing the

 

35

 

Holdings
Lien Indebtedness that are subordinated in accordance with the terms of the
Intercreditor Agreement.

 

“Permitted Power Counterparty” shall mean, with respect to a
Permitted Power Document or Replacement IPH Document, the counterparty under
such Permitted Power Document or Replacement IPH Document whose credit rating
in respect of its long-term senior unsecured (and non-credit enhanced)
Indebtedness is at least BBB- from S&P and Baa3 from Moody’s or if such
counterparty is not so rated, but its obligations under the applicable
Permitted Power Document or Replacement IPH Document are irrevocably and
unconditionally guaranteed by another Person, such guarantor’s senior unsecured
(and non-credit enhanced) Indebtedness shall be so rated (it is understood that
each counterparty to an Initial Power Hedging Document existing on the Initial
Closing Date, the Subsequent Closing Date and the Stetson II Effective Date,
shall, for purposes of such agreement only, be deemed to be a Permitted Power
Counterparty).

 

“Permitted Power Document” shall mean any Commodity Hedge/Power
Sales Agreement (whether financial or physical) entered into by any Subsidiary
of the Borrower after the Initial Closing Date where (i) such Commodity
Hedge/Power Sales Agreement is entered into in the Ordinary Course of Business
and is not for speculative purposes and (ii) if such Commodity Hedge/Power
Sales Agreement is also a Hedging Agreement, (A) the purpose of which is
to protect such Subsidiary against fluctuations in energy or power prices
and/or capacities and (B) which is structured such that the counterparty’s
credit exposure and actual or projected mark-to-market exposure to such
Subsidiary is positively correlated with energy and power prices and/or
capacities.

 

“Permitted Project Indebtedness” shall mean the Indebtedness
permitted pursuant to (a) clauses (1), (2) and (3) of the
definitions of Cohocton Permitted Indebtedness and Stetson Permitted
Indebtedness and (b) clauses (1) and (2) of the definition of
Steel Winds Permitted Indebtedness.

 

“Person” shall mean an individual, corporation, partnership,
limited liability company, joint venture, association, estate, joint stock
company, trust, organization, business or other enterprises or organization, or
a government or agency, instrumentality or political subdivision thereof.

 

“PIK Interest” shall have the meaning set forth in Section 2.4(a) hereof.

 

“PILOT Agreements” shall mean the Payment In-Lieu-of-Tax
Agreements, dated as of February 1, 2008, by and between Steuben County
Industrial Development Agency and each of the Cohocton Project Companies.

 

“Plan” shall mean any employee pension benefit plan (as defined in
Section 3(2) of ERISA) in respect of which any of CSSW Parent, the
Borrower or the Borrower’s Subsidiaries or any ERISA Affiliate is (or, if such
Plan were terminated, would under Section 4069 of ERISA be deemed to be)
an “employer” as defined in Section 3(5) of ERISA.

 

36

 

“Prattsburgh” shall mean Windfarm Prattsburgh, L.L.C., a
Delaware limited liability company.

 

“Premium Cap” shall mean, as applicable, (a) an amount of
prepayment or redemption premium or other prepayment penalties of four percent
(4%) or (b) a default interest rate of two percent (2%) above the
applicable interest rate thereunder in the absence of a default.

 

“Pro Forma Financial Statements” shall mean the pro forma
unaudited balance sheet and income statement of the Borrower and its
Consolidated Subsidiaries (excluding Prattsburgh) delivered in connection with
each Closing Date as of, and for, the most recent Fiscal Quarter ended, at
least 60 days prior to each such Closing Date.

 

“Prohibited Transaction” shall have the meaning assigned to such
term in Section 406 of ERISA and Section 4975(f)(3) of the Code.

 

“Project Companies” shall mean, collectively, (a) the
Cohocton Project Companies, (b) the Stetson I Project Company, (c) after
the Subsequent Closing Date, the Steel Winds Project Company and (d) after
the Stetson II Effective Date, the Stetson II Project Company.

 

“Project Document” shall mean any contract, agreement or
document relating to the ownership, development, construction, testing,
operation, maintenance, repair, insurance, management, administration or use of
any of the Projects, or the business of the Subsidiaries of the Borrower
entered into by any such Subsidiary of the Borrower with any other Person, but
excluding the Loan Documents, the Organizational Documents and any agreement in
respect of Indebtedness; provided that before the Subsequent Closing
Date, no contract, agreement or document with respect to the Steel Winds
Project shall be considered a Project Document hereunder; provided, further
that before the Stetson II Effective Date, no contract, agreement or document
with respect to the Stetson II Project shall be considered a Project Document
hereunder.

 

“Project Document Claim” shall mean any claim in respect of the
Project Documents, including any warranty or liquidated damage claim.

 

“Project Lender” shall mean any lender under the Major Project
Indebtedness Documents or any other holder of any Major Project Indebtedness.

 

“Project O&M Agreement” shall mean, collectively, (a) that
certain Project O&M Agreement, dated as of December 30, 2008, by and
between First Wind O&M, LLC and the Cohocton Project Companies, as amended
by Amendment No. 1 to Project O&M Agreement, dated as of March 19,
2009, (b) that certain Project O&M Agreement, dated as of November 17,
2008, by and between First Wind O&M, LLC and the Stetson I Project Company,
(c) after the Subsequent Closing Date, that certain Project O&M
Agreement, dated as of September 1, 2006, by and between First Wind
O&M, LLC, as successor-in-interest to UPC New York Wind O&M, LLC, and
Steel Winds Project, LLC and (d) after the Stetson II Effective Date, that
certain Project O&M Agreement, dated as

 

37

 

of
the Stetson II Effective Date, by and between the Stetson II Project Company
and First Wind O&M, LLC.

 

“Project Participants” shall mean any party (other than CSSW
Parent, the Borrower, the Subsidiaries of the Borrower and the Secured Parties)
to a Project Document.

 

“Project Revenues” shall mean, for any period, without
duplication, the aggregate of all cash revenues received by the Borrower and
its Subsidiaries during such period, including revenues comprised of (a) payments
made to such Persons pursuant to the Initial Power Hedging Documents, any
Replacement IPH Documents, any Permitted Power Documents or otherwise in
connection with the sale of energy, capacity, ancillary services and
environmental attributes (including renewable energy credits) from the
Projects, (b) all proceeds received by the Borrower and its Subsidiaries
in respect of Project Document Claims, (c) the proceeds of any business
interruption insurance received by the Borrower and its Subsidiaries and (d) all
interest and other income received by the Borrower and its Subsidiaries; provided
that Project Revenues shall exclude, to the extent included, Loss Proceeds and
Net Cash Proceeds from issuances and incurrences of Indebtedness or any
Qualified Tax Equity Financing and Net Cash Proceeds of any ITC Grant or
proceeds of any Equity Contribution.

 

“Projects” shall mean, collectively, (a) the Cohocton
Project, (b) the Stetson I Project, (c) after the Subsequent Closing
Date, the Steel Winds Project and (d) after the Stetson II Effective Date,
the Stetson II Project.

 

“Property” shall mean any property of any kind whatsoever,
whether real, personal or mixed and whether tangible or intangible, and any
right or interest therein.

 

“Prudent Utility Practice” with respect to a Project shall have
the meaning set forth in the related Project O&M Agreement as such Project
O&M Agreement is in effect on the date hereof.

 

“PTC Benefits” means federal tax credits, federal tax
attributes, and other federal tax benefits under Section 45 of the Code
arising from the ownership and operation of a Project.

 

“PUHCA 2005” shall have the meaning set forth in Section 5.21(a) hereof.

 

“QF” shall have the meaning set forth in Section 5.21(a) hereof.

 

“Qualified Tax Equity Financing” shall mean a sale of the right
to claim PTC Benefits for cash up front.

 

“Refinancing Indebtedness” shall mean, with respect to any
Indebtedness (the “Refinanced Indebtedness”), any Indebtedness issued in
exchange for, or the net proceeds of which are used to extend, refinance,
replace or refund (collectively to “Refinance” or a “Refinancing”
or “Refinanced”), such Refinanced Indebtedness (or previous refinancing
thereof constituting Refinancing Indebtedness); provided that (A) all
Net Cash Proceeds

 

38

 

of
Excess Permitted Project Indebtedness shall be applied to the prepayment of the
Term Loans as required by Section 4.1(b), and (B) the terms
and conditions of any such Refinancing Indebtedness do not require any
mandatory premiums or penalties in excess of the Premium Cap.

 

“Register” shall have the meaning set forth in Section 12.10
hereof.

 

“Regulation U” shall mean Regulation U of the Board of Governors
of the Federal Reserve system (or any successor).

 

“Regulation X” shall mean Regulation X of the Board of Governors
of the Federal Reserve system (or any successor).

 

“Reinvestment Decision Date” shall mean, with respect to the
Borrower’s or one of its Subsidiary’s receipt of any Loss Proceeds, the date
that is twenty (20) days after receipt of such Loss Proceeds.

 

“Reinvestment Deferred Amount” shall mean, with respect to any Reinvestment
Event, the aggregate Net Remaining Loss Proceeds that are not applied to prepay
the Term Loans as a result of the delivery of a Reinvestment Notice.

 

“Reinvestment Event” shall mean any event in respect of which
the Borrower has received Loss Proceeds and has delivered a Reinvestment
Notice.

 

“Reinvestment Notice” shall mean a written notice executed by an
Authorized Officer stating that no Event of Default has occurred and is
continuing and that the Borrower (directly or indirectly through a Subsidiary)
intends and expects to use all or a specified portion of the Loss Proceeds to
make an Eligible Reinvestment.

 

“Reinvestment Prepayment Amount” shall mean, with respect to any
Reinvestment Event, the Reinvestment Deferred Amount relating thereto less any
amount expended prior to the relevant Reinvestment Prepayment Date to make an
Eligible Reinvestment or to prepay Major Project Indebtedness.

 

“Reinvestment Prepayment Date” shall mean, with respect to any
Reinvestment Event, the earlier of (a) the later of (x) the date
occurring twelve (12) months after such Reinvestment Decision Date and (y) the
period, if any, provided in the applicable Major Project Indebtedness Documents
for the reinvestment of Loss Proceeds and (b) the date on which the Borrower
shall have determined not to, or shall have otherwise ceased to, make Eligible
Reinvestments with all or any portion of the relevant Reinvestment Deferred
Amount.

 

“Related Fund” shall mean any Person that is administered or
managed by (a) a Lender, (b) an Affiliate of a Lender or (c) any
entity or Affiliate of any entity that administers or manages a Lender.

 

“Replacement IPH Document” shall have the meaning set forth in Section 11.1(j) hereof.

 

39

 

“Reportable Event” shall mean any “reportable event,” as defined
in Section 4043(c) of ERISA or the regulations issued thereunder,
other than those events as to which the 30-day notice period referred to in Section 4043(c) of
ERISA has been waived, with respect to a Pension Plan.

 

“Requirement of Law” shall mean, as to any Person, (a) any
law (including common law), statute, treaty, rule, ordinance, Judgment, Permit,
concession, grant, franchise, license or other restriction or regulation or
determination of an arbitrator or a court or other Governmental Authority, and (b) any
directive, requirement or any decision or determination by any Governmental
Authority, in each case applicable to or binding upon such Person or any of its
property or to which such Person or any of its property is subject and whether
nor or hereafter in effect.

 

“Reserve Amounts” shall mean, with respect to a Calculation
Period: (a) the amounts required to be, and actually maintained in, any
Debt Service Account (funded solely with Project Revenues and/or Equity
Contributions and without duplication of payments made with Borrower Net
Revenues), debt service reserve account(s), operations and maintenance reserve
account(s), punch list reserve account(s) and any other reserve account(s) pursuant
to Major Project Indebtedness Documents, (b) to the extent (i) no
Major Project Indebtedness or Qualified Tax Equity Financing is outstanding
with respect to a Project or (ii) the maintenance of an operation and
maintenance reserve is not required for a Project under the terms of Major
Project Indebtedness or Qualified Tax Equity Financings, a cash reserve for
O&M Costs for such Project (the “Non-Financing O&M Reserve”), (c) a
reserve funded solely with Project Revenues and/or Equity Contributions for Borrower
Tax Distributions and without duplication of payments of Borrower Tax
Distributions made with Borrower Net Revenues, payable during the next
succeeding Calculation Period (the “Tax Distribution Reserve”), and (d) amounts
and funded solely with Project Revenues and/or Equity Contributions being
retained for the reasonably expected future cash needs of the Borrower and its
Subsidiaries for the next succeeding six (6) months following the end of
such Calculation Period (including cash reserves for settlement of capacity,
energy or renewable energy credit sales but excluding the amounts held in any
Distribution Reserve Account) and cash amounts delivered to third parties to
satisfy collateral requirements of the Borrower and its Subsidiaries under
Permitted Power Documents (the aggregate amount under this clause (d) shall
be referred to as the “Overflow Reserve”). For the avoidance of doubt,
Reserve Amounts to be funded solely with Project Revenues and/or Equity
Contributions shall not be permitted to be Debt-Funded Reserve Amounts.

 

“Reserve Cap” shall mean, with respect to a Calculation Period,
the sum of the following amounts:

 

(a)           with
respect to Reserve Amounts described in clause (a) of the definition
thereof, the Cohocton Reserve Line, Steel Winds Reserve Line and Stetson
Reserve Line;

 

(b)           the Non-Financing
O&M Reserve so long as the aggregate amount of such reserve does not exceed
the budgeted O&M Costs for the next succeeding

 

40

 

three (3) months following the end of such Calculation Period
pursuant to the then-applicable annual budget delivered pursuant to Article 7
hereof (including any budget amendments deemed by the Borrower to be necessary
in the exercise of its reasonable business judgment);

 

(c)           the
Tax Distribution Reserve; and

 

(d)           the
Overflow Reserve so long as the aggregate amount of such reserve (funded solely
with Project Revenues and/or Equity Contributions) does not exceed (i) prior
to the Subsequent Closing Date, $6,500,000 and (ii) on and after the
Subsequent Closing Date, $7,000,000.

 

“Reserve Line” shall mean any of the Cohocton Reserve Line, the
Stetson Reserve Line or the Steel Winds Reserve Line, as applicable.

 

“Returns” shall have the meaning set forth in Section 5.6
hereof.

 

“Second Cohocton Major Indebtedness Prepayment Trigger” shall
have the meaning set forth in the definition of “Cohocton Permitted
Indebtedness”.

 

“Second Lien Security Agreement” shall mean the Second Lien
Guaranty and Security Agreement, dated as of the Initial Closing Date, by and
among the Borrower, CSSW Parent, and HSHN, as collateral agent for the holders
of Holdings Lien Indebtedness.

 

“Second Stetson Major Indebtedness Prepayment Trigger” shall
have the meaning set forth in the definition of “Stetson Permitted
Indebtedness”.

 

“Section 2.8 Lender” shall have the meaning set forth in Section 2.7
hereof.

 

“Secured Parties” shall mean, collectively, the Agents, the
Lenders, the Indemnified Persons and any successors, endorsees, transferees and
assignees of the foregoing.

 

“Security Documents” shall mean the First Lien Guarantee and
Security Agreement, dated as of the Initial Closing Date (the “Guarantee and
Security Agreement”) substantially in the form of Exhibit A, by
CSSW Parent and the Borrower and, on or after the Subsequent Closing Date, to
the extent grantors thereunder in accordance with the terms hereof and thereof,
the Steel Winds Holding Company and the Steel Winds Project Company in favor of
the Collateral Agent, any other security documents hereafter delivered to the
Collateral Agent granting a Lien on any Property of CSSW Parent, the Borrower
or the Steel Winds Companies to secure the Obligations, control agreements and
all UCC financing statements and other filings, recordings and registrations required
to be filed or made in respect of any such Security Document.

 

“Solvent” shall mean, when used with respect to any Person,
that, as of any date of determination, (a) the amount of the “present fair
saleable value” of the assets of such Person will, as of such date, exceed the
amount of all “liabilities of such Person,

 

41

 

contingent
or otherwise”, as of such date, as such quoted terms are determined in
accordance with applicable federal and state laws governing determinations of
the insolvency of debtors, (b) the present fair saleable value of the
assets of such Person will, as of such date, be greater than the amount that
will be required to pay the liability of such Person on its debts as such debts
become absolute and matured, (c) such Person will not have, as of such
date, an unreasonably small amount of capital with which to conduct its
business, and (d) such Person will be able to pay its debts as they
mature. For purposes of this definition: (i) “debt” means liability on a
“claim” and (ii) “claim” means any (x) right to payment, whether or
not such a right is reduced to judgment, liquidated, unliquidated, fixed,
contingent, matured, unmatured, disputed, undisputed, legal, equitable, secured
or unsecured or (y) right to an equitable remedy for breach of performance
if such breach gives rise to a right to payment, whether or not such right to
an equitable remedy is reduced to judgment, fixed, contingent, matured or
unmatured, disputed, undisputed, secured or unsecured. In calculating the
amount of liabilities outstanding at any time, it is intended that any
contingent liabilities will be included at the amount which, in light of all
the facts and circumstances existing at such time, would reasonably be expected
to become an actual or matured liability.

 

“S&P” shall mean Standard & Poor’s Rating Services,
a division of The McGraw-Hill Companies, Inc.

 

“Standstill Period” shall have the meaning set forth in Section 11.1(b) hereof.

 

“Steel Winds Companies” shall mean the Steel Winds Holding
Company and the Steel Winds Project Company.

 

“Steel Winds Debt-Funded Reserve Amounts” shall mean the Reserve
Amounts (other than Reserve Amounts that are permitted to be funded solely with
Project Revenues and/or Equity Contributions) for the Steel Winds Project that
have been funded with Indebtedness of the Steel Winds Project.

 

“Steel Winds Holding Company” shall mean New York Wind II.

 

“Steel Winds Letters of Credit” shall mean (i) that certain
irrevocable Letter of Credit No. SB 000052 issued by HSHN as of April 17,
2007 with First Wind Acquisition (p/k/a UPC Wind Acquisition, LLC), as the
Applicant, Morgan Stanley Capital Group Inc. as the Beneficiary and Niagara
Wind Power, LLC, as the Seller, as amended, modified and supplement from time
to time, in the amount of $3,000,000 and (ii) that certain irrevocable
Letter of Credit No. SB 000119 issued by HSHN as of August 13, 2008
with First Wind Acquisition as the Applicant, Constellation Energy Commodities
Group, Inc., as the Beneficiary and Niagara Wind Power, LLC, as amended,
modified and supplement from time to time, in the amount of $500,000.

 

“Steel Winds Permitted Indebtedness” shall mean the following
Indebtedness incurred by the Steel Winds Companies with respect to the Steel
Winds Project:

 

1.             An unlimited amount
of Indebtedness (including the Steel Winds Debt-Funded Reserve Amounts that are
outstanding during any period, subject to

 

42

 

 

compliance
with Section 9.17 but exclusive of Indebtedness described in
clauses (2) and (3) of this definition) so long as any mandatory
prepayment applicable thereto has been made pursuant to Section 4.1(a) (“Steel
Winds Permitted Project Indebtedness”);

 

2.             LC
Indebtedness;

 

3.             Other
Permitted Indebtedness; and

 

4.             the
Obligations.

 

“Steel Winds Permitted Project Indebtedness” shall have the
meaning set forth in the definition of “Steel Winds Permitted Indebtedness”.

 

“Steel Winds Project” shall mean the 20 MW wind powered electrical
generating facility owned by the Steel Winds Project Company located in
Lackawanna, New York.

 

“Steel Winds Project Company” shall mean Niagara Wind Power,
LLC, a Delaware limited liability company.

 

“Steel Winds Project Company LLC Agreement” shall mean the
Niagara Wind Power, LLC limited liability company agreement, dated September 1,
2006, as in effect on the Subsequent Closing Date.

 

“Steel Winds Reorganization” shall have the meaning set forth on
Schedule 1 hereto.

 

“Steel Winds Reserve Line” shall mean the sum of (a) at the
Borrower’s option, either (i) twelve months of interest reserves that are
required to be, and actually are, held in reserve accounts (excluding Debt
Service Accounts) pursuant to the applicable Major Project Indebtedness Documents
or (ii) if repayment for such Major Project Indebtedness is on an
amortization schedule of not less than 10 years, six months of principal,
interest and other reserves that are required to be, and actually are, held in
reserve accounts (excluding Debt Service Accounts) pursuant to applicable Major
Project Indebtedness Documents, (b) an amount not to exceed $1,500,000 in
the aggregate for any other non-debt service related reserves that are required
to be, and actually are, held pursuant to applicable Major Project Indebtedness
Documents, and (c) amounts funded solely with Project Revenues and/or
Equity Contributions that are required to be, and actually are, held in a Debt
Service Account.

 

“Stetson Companies” shall mean (a) prior to the Stetson II
Effective Date, the Stetson Holding Company and the Stetson I Project Company
and (b) on and after the Stetson II Effective Date, the Stetson
Intermediate Holding Company, the Stetson Holding Company, the Stetson I
Project Company and the Stetson II Project Company; provided that any
Subsidiaries of the Stetson Holding Company and the Stetson I Project Company
created or formed after the Initial Closing Date and of the Stetson
Intermediate Holding Company and the Stetson II Project Company created or
formed after the

 

43

 

Stetson
II Effective Date shall for all purposes of the Loan Documents be considered
Stetson Companies.

 

“Stetson Debt-Funded Reserve Amounts” shall mean the Reserve
Amounts (other than Reserve Amounts that are permitted to be funded solely with
Project Revenues and/or Equity Contributions) for the Stetson I Project and the
Stetson II Project that have been funded with Indebtedness of the Stetson I
Project and the Stetson II Project, respectively.

 

“Stetson Holding Company” shall mean Stetson Holdings, LLC, a
Delaware limited liability company.

 

“Stetson Prepayment” shall have the meaning assigned in Section 4.1(f).

 

“Stetson I Existing Financing” shall mean Indebtedness incurred
by the Stetson I Project Company as reflected in the HSHN Stetson I Amendments.

 

“Stetson I Project” shall mean the 57 MW wind powered electrical
generating facility owned by the Stetson I Project Company located in
Washington County, Maine.

 

“Stetson I Project Company” shall mean Evergreen Wind Power V,
LLC, a Delaware limited liability company.

 

“Stetson II COD” shall mean the date on which each of the
following has occurred: (a) the Placed in Service Date (as defined in the
Stetson Portfolio Financing Agreement as in effect on the date hereof), (b) “Commercial
Operation Date” under that certain Power Purchase Agreement, dated as of September 29,
2009, by and between the Stetson II Project Company and President and Fellows
of Harvard College, and (c) “Commercial Operation” under that certain
Standard Large Generator Interconnection Agreement, dated August 14, 2009
and effective October 1, 2009, by and between the Stetson II Project
Company, Evergreen Gen Lead, LLC, ISO New England, Inc. and Bangor
Hydro-Electric Company.

 

“Stetson II Construction Budget” shall have the meaning assigned
to “Construction Budget and Schedule” in the Stetson Portfolio Financing
Agreement as in effect on the date hereof.

 

“Stetson II Construction Period” shall mean the period beginning
on the Stetson II Effective Date and ending on the Stetson II Funding Date.

 

“Stetson II Effective Date” shall mean the date on which all
conditions precedent set forth in Section 3.3 have been satisfied
or waived in writing by the Initial Lenders.

 

“Stetson II Funding Date” shall mean the date on which all
conditions precedent set forth in Section 3.4 have been satisfied
or waived in writing by the Initial Lenders.

 

“Stetson II Outside Completion Date” shall mean December 31,
2010.

 

44

 

“Stetson II Project” shall mean the 25.5 MW wind powered
electrical generating facility to be constructed and owned by the Stetson II
Project Company located in Washington County, Maine.

 

“Stetson II Project Company” shall mean Stetson Wind II, LLC, a
Delaware limited liability company.

 

“Stetson II Project Document” shall mean any Project Document
entered into with respect to the Stetson II Project.

 

“Stetson II Term Loan” shall have the meaning set forth in Section 2.1(a)(i)(C) hereof.

 

“Stetson II Term Loan Commitment” shall mean, as to any Initial
Lender, the applicable amount set forth opposite such Initial Lender’s name for
the Stetson II Funding Date in Schedule 1.1. The aggregate Stetson II
Term Loan Commitment of all Initial Lenders is $15,000,000.

 

“Stetson II Term Loan Commitment Expiration Date” shall mean September 30,
2010 or if earlier, the date on which an Event of Default under the second
proviso to Section 11.1(b) occurs.

 

“Stetson II Turbine Supply Agreement” shall mean that certain
Contract for the Sale of Power Generation Equipment and Related Services, dated
June 27, 2006, as amended by that UPC Notice No. 2007-GE-J3XU5-01,
dated June 29, 2007, as amended by that External Change Order (ECO) No. 2,
dated November 20, 2007, as amended by Amendment No. 1 to the
Contract for the Sale of Power Generation Equipment and Related Services, dated
November 27, 2007, as amended by External Change Order (ECO) No. 3,
dated May 12, 2008, as amended by External Change Order (ECO) No. 4,
dated September 17, 2008, as amended by Amendment No. 2 to the
Contract for the Sale of Power Generation Equipment and Related Services, dated
February 20, 2009, as amended by External Change Order (ECO) No. 5,
dated June 1, 2009, as assigned to the Stetson II Project Company,
pursuant to that certain Assignment and Assumption Agreement, dated as of the
date hereof.

 

“Stetson Intermediate Holding Company” shall mean CSSW Stetson
Holdings, LLC, a Delaware limited liability company.

 

“Stetson Major Indebtedness Prepayment Trigger” shall mean, as
applicable, the Initial Stetson Major Indebtedness Prepayment Trigger or the
Second Stetson Major Indebtedness Prepayment Trigger.

 

“Stetson Permitted Indebtedness” shall mean the following
Indebtedness incurred by the Stetson Companies with respect to the Stetson I
Project and/or the Stetson II Project:

 

1.             Major Project
Indebtedness (which includes, as of the Initial Closing Date until the Stetson
II Effective Date, the Stetson I Existing Financing and as of the Stetson

 

45

 

II
Effective Date, the Stetson Portfolio Financing) the aggregate principal amount
of which does not exceed:

 

(a)           Until December 31,
2010, $91,000,000 plus subject to compliance with Section 9.17, the
Stetson Debt-Funded Reserve Amounts that are outstanding during any period,
adjusted as follows (such amount, the “Initial Stetson Major Indebtedness
Prepayment Trigger”):

 

(i)            Upon the receipt by
any Stetson Company of Net Cash Proceeds of any ITC Grant in respect of the
Stetson I Project or the Stetson II Project, the Initial Stetson Major
Indebtedness Prepayment Trigger shall be reduced by the amount of such Net Cash
Proceeds, on a dollar for dollar basis, in an amount of reduction not to exceed
in the aggregate $19,000,000; and

 

(ii)           With respect to any
Refinancing Indebtedness, to the extent that the Yield on such Refinancing
Indebtedness as of the applicable Yield Measurement Date exceeds the Yield Cap,
the Initial Stetson Major Indebtedness Prepayment Trigger shall be reduced in
increments of $1,666,667 for each full 50 basis points by which such Yield
exceeds the Yield Cap.

 

(b)           On and after January 1,
2011, $72,000,000 plus, subject to compliance with Section 9.17,
the Stetson Debt-Funded Reserve Amounts that are outstanding during any period,
adjusted as follows (such amount, the “Second Stetson Major Indebtedness
Prepayment Trigger”):

 

(i)            The Second Stetson
Major Indebtedness Prepayment Trigger shall be reduced from time to time by any
payments, repayments, prepayments and/or redemptions of principal made from
time to time on and after January 1, 2011 in respect of such Major Project
Indebtedness; provided, however, that payments, repayments,
prepayments and/or redemptions of principal resulting from the incurrence of
any Refinancing Indebtedness shall not cause any such reductions; and

 

(ii)           With respect to any
Refinancing Indebtedness, to the extent that the Yield on such Refinancing
Indebtedness as of the applicable Yield Measurement Date exceeds the Yield Cap,
the Second Stetson Major Indebtedness Prepayment Trigger shall be reduced in
increments of $1,666,667 for each full 50 basis points by which such Yield
exceeds the Yield Cap.

 

2.             Excess Stetson
Permitted Project Indebtedness so long as the mandatory prepayment applicable
thereto has been made pursuant to Section 4.1(b);

 

3.             LC Indebtedness;

 

4.             Other Permitted
Indebtedness; and

 

46

 

5.             the Obligations.

 

“Stetson Portfolio Financing” shall mean the transactions
contemplated in, collectively, (a) the Stetson Portfolio Financing
Agreement (including the Indebtedness incurred pursuant thereto) and the
Collateral Documents (as defined therein) and (b) the Termination and
Release Agreement and Amendment, dated as of the Stetson II Effective Date by
and among HSHN, the Stetson II Project Company, First Wind Maine Holdings, LLC
and First Wind Acquisition, LLC.

 

“Stetson Portfolio Financing Agreement” shall mean that certain
Financing Agreement, dated as of the Stetson II Effective Date, by and among
the Stetson Holding Company, BNP Paribas, as Joint Lead Arranger, Joint
Bookrunner, Administrative Agent for the Lenders and Security Agent for the
Secured Parties and Issuing Bank, HSHN, as Joint Lead Arranger, Joint
Bookrunner, Co-Syndication Agent, and the Lenders from time to time party
thereto.

 

“Stetson Reorganization” shall have the meaning set forth on Schedule
3 hereto.

 

“Stetson Reserve Line” shall mean the sum of (a) at the
Borrower’s option, either (i) twelve months of interest reserves that are
required to be, and actually are, held in reserve accounts (excluding Debt
Service Accounts) pursuant to the applicable Major Project Indebtedness
Documents or (ii) if repayment for such Major Project Indebtedness is on
an amortization schedule of not less than 9.5 years, six months of principal,
interest and other reserves that are required to be, and actually are, held in
reserve accounts (excluding Debt Service Accounts) pursuant to applicable Major
Project Indebtedness Documents, (b) an amount not to exceed $4,500,000 in
the aggregate for any other non-debt service related reserves that are required
to be, and actually are, held pursuant to applicable Major Project Indebtedness
Documents and (c) amounts funded solely with Project Revenues and/or
Equity Contributions that are required to be, and actually are, held in a Debt
Service Account.

 

“Stetson Transfer Conditions” shall have the meaning set forth
on Schedule 2 hereto.

 

“Stetson Transmission Line Reorganization” shall mean the
transfer or assignment of the transmission line and related rights and Property
for the Stetson I Project, as described on Schedule 2 hereto.

 

“Subsequent Closing Date” shall mean the date on which all
conditions precedent set forth in Section 3.2 have been satisfied
or waived in writing by the Initial Lenders.

 

“Subsequent Term Loan” shall have the meaning set forth in Section 2.1(a)(i)(B) hereof.

 

“Subsequent Term Loan Commitment” shall mean, as to any Initial
Lender, the applicable amount set forth opposite such Initial Lender’s name for
the Subsequent Closing Date in Schedule 1.1. The aggregate Subsequent
Term Loan Commitment of all Initial Lenders is $15,000,000.

 

47

 

“Subsequent Term Loan Commitment Expiration Date” shall mean the
date which is six months after the Initial Closing Date, or if such date is not
a Business Day, the next succeeding Business Day.

 

“Subsidiary” shall mean, for any Person, any corporation,
partnership or other entity of which at least a majority of the securities or
other ownership interests having by the terms thereof ordinary voting power to
elect a majority of the board of directors or other persons performing similar
functions of such corporation, partnership or other entity (irrespective of
whether or not at the time securities or other ownership interests of any other
class or classes of such corporation, partnership or other entity shall have or
might have voting power by reason of the happening of any contingency) is at
the time directly or indirectly owned or controlled by such Person or one or
more Subsidiaries of such Person or by such Person and one or more Subsidiaries
of such Person. Unless otherwise qualified, all references to a “Subsidiary” or
to “Subsidiaries” in this Agreement shall refer to a Subsidiary or Subsidiaries
of the Borrower. It is understood that, notwithstanding the foregoing, for
purposes of this Agreement and the other Loan Documents, (a) Prattsburgh
shall not be considered a Subsidiary of the Borrower or of any of its other
Subsidiaries, (b) until the Subsequent Closing Date, the Steel Winds
Project Company shall not be considered a Subsidiary of the Borrower or of any
of its other Subsidiaries and (c) until the Stetson II Effective Date, the
Stetson Intermediate Holding Company and the Stetson II Project Company shall
not be considered a Subsidiary of the Borrower or any of its other
Subsidiaries.

 

“Successor Lender” shall have the meaning set forth in Section 13.11
hereof.

 

“Taking” shall mean any circumstances or event, or circumstances
or events, in consequence of which the Project or portion thereof shall be
condemned, nationalized, seized, compulsorily acquired or otherwise
expropriated by any Governmental Authority under power of eminent domain or
otherwise. The term “Taken” shall have correlative meaning.

 

“Tax Distribution Reserve” shall have the meaning set forth in
the definition of “Reserve Amounts”.

 

“Tax Equity Standstill Period” shall have the meaning set forth
in Section 11.1(o) hereof.

 

“Taxes” shall have the meaning set forth in Section 4.5(a) hereof.

 

“Terminated Lender” shall have the meaning set forth in Section 2.7
hereof.

 

“Term Loans” shall mean, collectively, the Initial Term Loans,
the Subsequent Term Loans and the Stetson II Term Loans, together with any PIK
Interest added to the outstanding principal amount of such Term Loans on any
Interest Payment Date pursuant to Section 2.4 hereof.

 

“Term Note” shall have the meaning set forth in Section 2.3(b) hereof.

 

48

 

“Total Loss” shall mean, in relation to the Cohocton Project,
the Stetson I Project or the Stetson II Project, any of the following,
including as a result of a Taking, (a) the complete destruction of such
Project, (b) the destruction of such Project such that there remains no
substantial remnant thereof which a prudent owner desiring to restore such
Project to its original condition would utilize as the basis of such
restoration, (c) the destruction of such Project irretrievably beyond
repair or (d) the destruction of such Project such that the insured may
claim the whole amount of any insurance policy covering such Project upon
abandoning such Project to the insurance underwriters therefor.

 

“Transaction Documents” shall mean, collectively the Loan
Documents and the Project Documents.

 

“Undertaking Agreement” shall mean an agreement of the Parent
substantially in the form of Exhibit H.

 

“Uniform Commercial Code” or “UCC” shall mean the Uniform
Commercial Code, as in effect from time to time in any applicable jurisdiction.

 

“United States” and “U.S.” shall each mean the United
States of America.

 

“Unwind” shall mean the continuing management of Prattsburgh’s
rights, assets, obligations or liabilities for the purpose of selling,
transferring or otherwise disposing of such rights and assets and/or the
winding down of its business, which management may include (a) paying and
discharging its taxes and other obligations as they become due, (b) maintaining
or preserving its assets, Properties, licenses and Governmental Approvals, (c) performing,
preserving, protecting and defending its rights and obligations whether under
any agreements to which it is a party or otherwise existing or (d) taking
any actions reasonably related thereto.

 

“USA PATRIOT Act” shall mean the United States Public Law
107-56, Uniting and Strengthening America by Providing Appropriate Tools
Required to Intercept and Obstruct Terrorism (USA PATRIOT Act) of 2001, as
amended, and the related regulations promulgated thereunder from time to time
in effect.

 

“Voting Stock” shall mean, with respect to any Person, Equity
Interest the holders of which are ordinarily, in the absence of contingencies,
entitled to vote for the election of directors (or persons performing similar
functions) of such Person, even if the right so to vote has been suspended by
the happening of a contingency.

 

“Withdrawal Liability” shall mean liability to a Multiemployer
Plan as a result of a complete or partial withdrawal from such Multiemployer
Plan, as such terms are defined in Title IV of ERISA.

 

“Yield” shall mean the per annum interest rate applicable to any
Major Project Indebtedness on the Yield Measurement Date or the Amendment
Measurement Date, as applicable, with such interest rate being calculated by
including in the determination thereof (a) any original issue discount (“OID”)
(inclusive of fees, other than in the case of

 

49

 

the
Refinancing Indebtedness incurred in connection with the repayment of the
Cohocton Mini-Perm Financing, the Stetson I Existing Financing and/or the
Stetson Portfolio Financing) payable by the person incurring such indebtedness
(with OID (and such fees, if applicable) being equated to interest based on
four-year average life to maturity) and (b) to the extent that the
interest rate applicable to such Major Project Indebtedness is determined by
reference to a floating rate, the floating component shall be calculated by
reference to the 3-month LIBOR Rate as set forth on the Reuters Screen LIBOR01 page as
of 11:00 a.m. (London time) two (2) Business Days prior to the Yield
Measurement Date or the Amendment Measurement Date, as applicable, plus the
interest rate margin applicable under the terms of such Major Project
Indebtedness.

 

“Yield
Cap” will be defined as Yield in excess of 9%.

 

“Yield Measurement Date” shall mean, with respect to any Major
Project Indebtedness, the date of initial incurrence with respect to the
applicable Major Project Indebtedness Documents (including the closing date
with respect to any extension of maturity with respect to such Major Project
Indebtedness), and shall explicitly exclude the date of any conversion of loans
under the terms of such Major Project Indebtedness (such as a conversion from
base rate to LIBOR) or any later borrowing of loans under the terms of Major
Project Indebtedness (such as a drawing made under a revolving loan or a letter
of credit facility), if such borrowing is subject to a different rate than that
applied at the transaction closing date.

 

Section 1.2             Accounting Terms. All
accounting terms used and not defined in this Agreement shall be construed in
accordance with GAAP consistently applied and all computations and
determinations as to financial matters, and all financial data required to be
delivered hereunder, shall be made or prepared in accordance with such
principles. With respect to the determination of compliance with any financial
covenants contained herein, the relevant period for determination shall be the
most recent quarterly or annual period, as applicable, for which the Borrower
has submitted the financial statements required hereunder, which period shall
then supersede any prior period.

 

Section 1.3             Interpretation, Etc. Any of
the terms defined herein may, unless the context otherwise requires, be used in
the singular or the plural depending on the reference. References herein to any
Section, Appendix, Schedule or Exhibit shall be to a Section, an Appendix,
a Schedule or Exhibit, as the case may be, hereof unless otherwise specifically
provided. Any reference to a document shall be deemed to include all exhibits,
annexes, appendices and schedules thereto. The use herein of the word “include”
or “including”, when following any general statement, term or matter shall not
be construed to limit such statement, term or matter to the specific items or
matters set forth immediately following such word or to similar items or matters,
whether or not non-limiting language (such as “without limitation” or “but not
limited to” or words of similar import) is used with reference thereto, but
rather shall be deemed to refer to all other items or matters that fall within
the broadest possible scope of such general statement, term or matter. The
terms “asset” and “property” shall be construed to have the same meaning and
effect and refer to any and all tangible and intangible assets and properties,
including cash, Equity Interests, securities, revenues, accounts, leasehold
interests and contract rights. The words “hereof”, herein” and “hereunder”, and
words of similar import,

 

50

 

when used in any Loan
Document shall refer to such Loan Document as a whole and not to any particular
provision of any Loan Document. The terms lease and license shall include any
sublease and sub-license, as applicable. In the computation of a period of time
from a specified date to a later date, the word “from” means “from and
including” and the words “to” and “until” each mean “to but excluding”. In
addition, (a) references herein to agreements and other contractual
instruments shall be deemed to include all subsequent amendments,
modifications, supplements, changes and waivers to such instruments, but only
to the extent that such amendments, modifications, supplements, changes and
waivers are permitted or not prohibited by the terms of this Agreement or the
affected agreement or contractual instruments, (b) references herein to
Requirements of Law or Governmental Approvals are to be construed as including
all statutory provisions consolidating, amending or replacing the Requirement
of Law or Governmental Approval to which reference is made and all regulations
promulgated pursuant to such Requirements of Law, (c) references herein to
Persons include their respective permitted successors and permitted assigns
and, in the case of any Governmental Authority, any Person succeeding to any of
its functions and capacities and (d) references to days shall refer to
calendar days, unless Business Days are specified; references to weeks, months
or years shall be to calendar weeks, months or years, respectively.

 

ARTICLE 2

 

THE CREDITS

 

Section 2.1             The Term Loans.

 

(a)           (i)            Subject
to and upon the terms and conditions set forth herein, (A) the Initial
Lenders agree to make loans (each, an “Initial Term Loan” and,
collectively, the “Initial Term Loans”), to the Borrower on the Initial
Closing Date in an amount equal to the Initial Term Loan Commitment, (B) on
or prior to the Subsequent Term Loan Commitment Expiration Date, the Initial
Lenders agree to make loans (each, a “Subsequent Term Loan” and,
collectively, the “Subsequent Term Loans”) to the Borrower on the
Subsequent Closing Date in an aggregate principal amount equal to the
Subsequent Term Loan Commitment and (C) on or prior to the Stetson II Term
Loan Commitment Expiration Date, the Initial Lenders agree to make loans (each,
a “Stetson II Term Loan” and, collectively, the “Stetson II Term
Loans”) to the Borrower on the Stetson II Funding Date in an aggregate
principal amount equal to the Stetson II Term Loan Commitment. Each of the
Borrower, CSSW Parent, the Initial Lenders and the Administrative Agent
acknowledge that the Initial Term Loans and the Subsequent Term Loans have been
made and that the Borrower has borrowed the full amount of the Initial Term
Loan Commitment and the Subsequent Term Loan Commitment. If the Stetson II
Funding Date has not occurred on or prior to the Stetson II Term Loan
Commitment Expiration Date, the Stetson II Term Loan Commitment shall terminate
in full on the Stetson II Term Loan Commitment Expiration Date. Any portion of
the Stetson II Term Loan Commitment not borrowed on the Stetson II Funding Date
shall automatically terminate on the Stetson II Funding Date.

 

(ii)               The Initial Term Loans were
funded by each Initial Lender to the Borrower on the Initial Closing Date at a
17.40143093% discount; accordingly, the amount of Initial Term Loans funded by
each Initial Lender to the Borrower on the Initial Closing Date

 

51

 

was
in an amount equal to 82.59856907%  of
the stated principal amount of such Initial Term Loans.

 

(b)       The Term Loans are
available only on the terms and conditions specified hereunder and once repaid,
in whole or in part, at maturity or by prepayment, may not be reborrowed in
whole or in part.

 

(c)       The Term Loans,
including all PIK Interest, shall mature on the Maturity Date and shall be repaid
in full by the Borrower by wire transfer of immediately available funds in
Dollars for the account of the Lenders at the Payment Office of the
Administrative Agent.

 

Section 2.2             Procedure for Borrowing. The
Borrower shall give the Administrative Agent at least three (3) Business
Days’ prior written notice at the Notice Office of each Closing Date, which
notice (a “Notice of Borrowing”) shall be irrevocable and shall be given
by the Borrower substantially in the form of Exhibit C hereto,
appropriately completed to specify (a) the aggregate principal amount of
the Term Loans to be made on such date and (b) the applicable Closing
Date. Notwithstanding the foregoing, with respect to the initial borrowing of
the Term Loan to occur on the Initial Closing Date, the Borrower shall be
required to deliver a Notice of Borrowing on the Initial Closing Date. The
Administrative Agent shall promptly forward to the Initial Lenders the Notice
of Borrowing. Subject to the terms and conditions hereof, not later than 1:00
p.m. (New York City time) on the applicable Closing Date, the Initial Lenders
will make available the aggregate amount of Term Loans requested to be made on
the applicable Closing Date in Dollars and in immediately available funds
either, as agreed by the Borrower and the Initial Lenders, at the Payment
Office of the Administrative Agent or pursuant to a funds flow memorandum
confirmed by the Borrower and the Initial Lenders. If applicable, the
Administrative Agent shall credit the account of Borrower on the books of such
Payment Office with the aggregate of the amounts made available to the
Administrative Agent by the Initial Lenders in immediately available funds.

 

Section 2.3             Evidence of Obligations and
Notes.

 

(a)           Each Lender will maintain in
accordance with its usual practice an account or accounts evidencing the
indebtedness of the Borrower to such Lender as a result of the Term Loans of
such Lender, including the amounts of principal, interest (including PIK
Interest) and other amounts payable and paid to such Lender from time to time
under this Agreement. The entries made by each Lender pursuant to the foregoing
sentence shall constitute prima facie evidence
of the existence and amounts of the Term Loans and other Obligations therein
recorded; provided, however, that the failure of such Lender to
maintain such account or accounts, or any error therein, shall not in any
manner affect the obligations of the Borrower to repay or pay the Term Loans,
accrued interest thereon (including PIK Interest) and the other Obligations of
the Borrower to such Lender hereunder in accordance with the terms of this
Agreement. Each Lender will advise the Borrower of the outstanding indebtedness
hereunder to such Lender upon written request therefor.

 

(b)           At the request of each Lender, the
Borrower’s obligation to pay the principal of, and interest on, the Term Loans
shall be evidenced by a promissory note duly

 

52

 

executed and delivered by
the Borrower substantially in the form of Exhibit B hereto with
blanks appropriately completed in conformity herewith (each, a “Term Note”
and collectively, the “Term Notes”).

 

(c)           The Term Notes issued to each Lender
shall (i) be payable to the order of such Lender, (ii) be dated the
applicable Closing Date, (iii) be in a stated maximum principal amount
equal to the Term Loans of such Lender plus any PIK Interest, (iv) mature
on the Maturity Date, (v) bear interest as provided in this Agreement and (vi) be
entitled to the benefits of this Agreement and the other Loan Documents.

 

(d)           Each Lender will note on its internal
records the amount of each Term Loan made by it and each payment in respect
thereof and will prior to any transfer of the Term Note endorse on the reverse
side thereof the outstanding principal amount of Term Loans (including PIK
Interest) evidenced thereby. Failure to make such notation shall not affect the
Borrower’s obligations in respect of such Term Loans.

 

Section 2.4                 Mandatory Principal and
Interest Payments on Term Loans.

 

(a)           The Borrower may, at its option (an “Interest
Election”), elect to pay interest on the Loans on each Interest Payment
Date (i) entirely in cash (“Cash Interest”), (ii) by
increasing the outstanding principal amount of the Term Loans on the relevant
Interest Payment Date by the amount of interest accrued from the effective date
of any such Interest Election until the day immediately prior to the applicable
Interest Payment Date (“PIK Interest”) or (iii) 50% as Cash
Interest and 50% as PIK Interest. Unless the context otherwise requires, for
all purposes hereof, references to “principal amount” of the Term Loans
includes any interest so capitalized, including pursuant to Section 2.5,  and added to the principal amount of the Term
Loans from the date on which such interest has been so added.

 

(b)           The Borrower must make an Interest
Election by delivering an Interest Election notice to the Administrative Agent
no later than ten (10) Business Days prior to the effective date of any
Interest Election, which notice shall specify (x) whether such Interest
Election is made under clause (i), (ii) or (iii) of the immediately
preceding paragraph and (y) the effective date of such Interest Election,
which effective date must be the next Interest Payment Date. An Interest
Election shall remain in effect until the earlier of (i) the day
immediately prior to the next Interest Payment Date following the effective
date of such Interest Election and (ii) the Maturity Date. The
Administrative Agent shall promptly deliver the Interest Election notice with
their allocable interest amount to each Lender. In the absence of such an
election, interest on the Term Loans shall be payable 100% as PIK Interest.

 

(c)           Subject to Section 2.5,
each Term Loan shall bear interest (computed on the basis of the actual number
of days elapsed over a year of 365 (or 366 days, if applicable) at a rate per
annum that shall be equal to the Interest Rate.

 

(d)           Cash Interest accrued on each Term
Loan shall be payable on the Interest Payment Dates applicable to such Term
Loan, except as otherwise provided in this Agreement. PIK Interest accrued on
each Term Loan shall be payable by increasing the outstanding principal amount
of the Term Loans by the amount of PIK Interest on the Interest

 

53

 

Payment
Date applicable to such Term Loan for such period and in such amounts as
required by the relevant Interest Election(s). Any interest so added to the
principal amount of the Term Loans, including pursuant to Section 2.5,
shall bear interest as provided in this Section 2.4 from the date
on which such interest has been so added. The obligation of the Borrower to pay
PIK Interest shall be automatically evidenced by this Agreement or, if
applicable, any Term Notes issued pursuant to this Agreement.

 

(e)       All accrued and unpaid
interest shall be paid in cash at maturity (whether by acceleration or
otherwise), after such maturity on demand and upon any repayment or prepayment
thereof (on the amount prepaid).

 

(f)        In addition to interest
payments required to be made hereunder, and subject to the rights of
acceleration hereunder, the full unpaid principal balance of the Term Loans
shall be payable in full on the Maturity Date.

 

(g)       The Initial Term Loans
shall be issued with OID. Lenders may obtain the issue price, the amount of
OID, issue date and yield to maturity with respect to the Initial Term Loans by
submitting a written request to the Borrower at its Notice Office.
Notwithstanding anything herein to the contrary, if on any Interest Payment
Date (not taking into account any available extensions) on or after June 30,
2015 or on any earlier date as required by Code Sections 163(e)(5) and 163(i),
the aggregate amount of accrued and unpaid original issue discount (as defined
in Section 1273(a)(1) of the Internal Revenue Code) on the Term Loans would,
but for this Section 2.4(g), exceed an amount equal to the product of
the issue price of the Term Loans multiplied by the yield to maturity (as
defined in Treasury Regulations Section 1.1272-1(b)(i)) of the Term Loans
as determined by the Borrower, the Borrower shall prepay at each such
applicable Interest Payment Date, without premium or penalty, the minimum
amount of principal plus accrued interest on the Term Loans necessary to
prevent any of the accrued and unpaid interest and original issue discount on
the Term Loans from being disallowed or deferred as a deduction under Section 163(e)(5) of
the Code to the Borrower (or any member of the Borrower, as applicable). No
partial prepayment of the Term Loans pursuant to any other provision of this
Agreement or the other Loan Documents shall alter the obligation of the
Borrower to make prepayments provided for in this Section 2.4(g).

 

Section 2.5             Default Rate. Upon the
occurrence and during the continuation of an Event of Default and during any
Standstill Period and during the Tax Equity Standstill Period (but only with
respect to the Subsequent Term Loans), interest shall accrue on the Term Loans
and all other outstanding amounts hereunder or under the Loan Documents (after
as well as before judgment, as and to the extent permitted by law) at a rate
per annum equal to the Default Rate and such interest shall be payable in cash
and upon demand; provided that, during the Standstill Period, the
Borrower may elect, by written notice to the Administrative Agent, to pay such
default interest as PIK Interest on each date that any demand for payment is
made.

 

Section 2.6             Sharing of Payments. Except
to the extent that this Agreement, any other Loan Document or any Judgment
expressly provides for payments to be allocated to a particular Lender, if any
Lender shall obtain any payment (whether voluntary, involuntary, through the
exercise of any right of set off, or otherwise, but excluding through any
assignment pursuant to

 

54

 

Section 13.11 hereof) on
account of the Term Loans made by it in excess of its ratable share (according
to the then outstanding principal amount of the Term Loans) of payments on
account of the Term Loans obtained by all the Lenders, such Lender shall
purchase from the other Lenders such participations in the Term Loans held by
such other Lenders as shall cause such purchasing Lender to share such payment
ratably according to the then outstanding principal amount of the Term Loans
with each of such other Lenders; provided, however, that if all
or any portion of such payment is thereafter recovered from such purchasing
Lender, the purchase shall be rescinded and the purchase price restored to the
extent of such recovery, with interest at an interest rate per annum equal to
the Interest Rate. The Borrower agrees that any Lender so purchasing a
participation in the Term Loans from another Lender pursuant to this Section 2.6
may, to the fullest extent permitted by law, exercise all its rights of payment
with respect to such participation as fully as if such Lender were the direct
creditor of the Borrower in the amount of such participation.

 

Section 2.7             Removal or Replacement of a Lender.
In the event that: (a) any Lender shall make a demand for any payment
under Section 2.8 (each, a “Section 2.8 Lender”) or (b) in
connection with any proposed amendment, modification, termination, waiver or
consent with respect to any of the provisions hereof or any other Loan Document
that requires the consent of all of the Lenders or each of the Lenders affected
thereby, the consent of Majority Lenders shall have been obtained, but the
consent of one or more of such other Lenders (each, a “Non Consenting Lender”)
whose consent is required shall not have been obtained; then, with respect to
each such Section 2.8 Lender or Non Consenting Lender, the Borrower may,
by giving written notice of termination to Administrative Agent and any such Section 2.8
Lender or Non Consenting Lender (the “Terminated Lender”) of its
election to do so, elect to cause such Terminated Lender (and such Terminated
Lender hereby irrevocably agrees) to assign its outstanding Term Loans in full
to one or more Successor Lenders in accordance with the provisions of Article 13
and Borrower shall pay the fees, if any, payable thereunder in connection with
any such assignment; provided that (1) on the date of such
assignment, the Successor Lender shall pay to the Terminated Lender an amount
equal to the sum of (A) an amount equal to the principal of, and all
accrued interest on, all outstanding Term Loans of the Terminated Lender and (B) an
amount equal to all other amounts owing to such Terminated Lender under this
Agreement or any other Loan Documents, (2) on the date of such assignment,
the Borrower shall pay any amounts payable to such Terminated Lender as if it
were a prepayment pursuant to Sections 4.1 or 4.2, as applicable,
and (3) in the event such Terminated Lender is a Non Consenting Lender,
each Successor Lender shall consent, at the time of such assignment, to each
matter in respect of which such Terminated Lender was a Non Consenting Lender.
Upon the prepayment of all amounts owing to any Terminated Lender, if any, such
Terminated Lender shall no longer constitute a “Lender” for purposes hereof; provided,
any rights of such Terminated Lender that, pursuant to the terms hereof and the
other Loan Documents expressly survive any assignment, shall survive as to such
Terminated Lender.

 

Section 2.8             Capital Adequacy.

 

(a)           If any Lender shall have determined
that the adoption of, or any change in, any Capital Adequacy Regulation or in
the interpretation or application thereof or compliance by such Lender or any
corporation controlling such Lender with any request or directive regarding
capital adequacy (whether or not having the force of law) from any

 

55

 

Governmental
Authority made subsequent to the date hereof shall have the effect of reducing
the rate of return on such Lender’s or such corporation’s capital as a
consequence of its obligations hereunder to a level below that which such
Lender or such corporation could have achieved but for such adoption, change or
compliance (taking into consideration such Lender’s or such corporation’s
policies with respect to capital adequacy) by an amount deemed by such Lender
to be material, then from time to time, after submission by such Lender to the
Borrower (with a copy to the Administrative Agent) of a written request
therefor, the Borrower shall pay to such Lender such additional amount or
amounts as will compensate such Lender or such corporation for such reduction.

 

(b)       A certificate as to any
additional amounts payable pursuant to this Section 2.8 submitted
by any Lender to the Borrower (with a copy to the Administrative Agent) shall
be conclusive in the absence of manifest error. Notwithstanding anything to the
contrary in this Section 2.8, the Borrower shall not be required to
compensate a Lender pursuant to this Section 2.8  for any amounts incurred more than nine
months prior to the date that such Lender notifies the Borrower of such
Lender’s intention to claim compensation therefor; provided that, if the
circumstances giving rise to such claim have a retroactive effect, then such
nine-month  period shall be extended to
include the period of such retroactive effect. The obligations of the Borrower
pursuant to this Section 2.8 shall survive the termination of this
Agreement and the payment of the Term Loans and all other amounts payable
hereunder.

 

Section 2.9             Pro Rata Borrowings;
Availability. The Term Loans shall be incurred ratably among the Initial
Lenders based upon the amount of their respective Initial Term Loan
Commitments, Subsequent Term Loan Commitments and Stetson II Term Loan
Commitments, respectively. It is agreed that no Initial Lender shall be
responsible for any default by any other Initial Lender of its obligation to
make a Term Loan hereunder and that each Initial Lender shall be obligated to
make the Term Loans provided to be made by it hereunder regardless of the
failure of any other Initial Lender to make a Term Loan hereunder.

 

ARTICLE 3

 

CONDITIONS TO TERM LOANS

 

Section 3.1             Conditions to the Term Loans and
Initial Closing Date. The Initial Lenders’ obligation to make the Initial
Term Loan on the Initial Closing Date shall be subject to the satisfaction or
waiver of the conditions precedent set forth below:

 

(a)       CSSW Parent and the
Borrower shall have delivered the following to the Administrative Agent, the
Collateral Agent and the Initial Lenders on or prior to the Initial Closing
Date, each in form and substance satisfactory to the Initial Lenders:

 

(i)            The Term Note, the
Notice of Borrowing and each of the other Loan Documents, duly executed by CSSW
Parent and the Borrower, as applicable.

 

(ii)           The Equity
Documents, duly executed by each required signatory thereto, other than PIP3PX
FirstWind LLC Ltd. and PIP3GV FirstWind LLC Ltd.

 

56

 

(iii)                               A copy of the
Organizational Documents of each of CSSW Parent, the Borrower and each of the
Cohocton Companies and Stetson Companies as in effect on the Initial Closing
Date, certified by the Secretary of State or other appropriate public official
of the state of its incorporation or organization, and a certificate as to the
good standing of CSSW Parent, the Borrower and each of the Cohocton Companies
and Stetson Companies from the appropriate public official of the jurisdiction
of its incorporation, organization or formation, dated as of a date no earlier
than 15 days prior to the Initial Closing Date.

 

(iv)                              A certificate
of an Authorized Officer of each of CSSW Parent and the Borrower, dated the
Initial Closing Date, certifying (A) that attached thereto is a true and
complete copy of the Organizational Documents of CSSW Parent, the Borrower and
each of the Cohocton Companies and Stetson Companies as in effect on the
Initial Closing Date and at all times from the date on which the resolutions
referred to in clause (B) below were adopted, to and including the date of
such certificate, (B) that attached thereto is a true and complete copy of
resolutions duly adopted by the board of directors (or other equivalent body)
or evidence of all partnership, corporate or limited liability company or
membership action, as the case may be, authorizing the execution, delivery and
performance by CSSW Parent and the Borrower of the Loan Documents to which such
Person is or is intended to be party, and that such resolutions have not been
modified, rescinded or amended and are in full force and effect, and (C) the
name, incumbency and specimen signature of each Authorized Officer of CSSW
Parent and the Borrower executing the Loan Documents and each other document to
be delivered by CSSW Parent or the Borrower from time to time in connection
therewith (and the Secured Parties may conclusively rely on such certificate
until the Administrative Agent receives a replacement certificate in the form
described in this clause (C) from such Person).

 

(v)                                 A certificate
of another Authorized Officer of each of CSSW Parent and the Borrower as to the
name, incumbency and specimen signature of the Authorized Officer of such
Person that signed the certificate referred to in clause (iv)(C) above.

 

(vi)                              Legal opinions
of in-house counsel to CSSW Parent, the Borrower and each of the Cohocton
Companies and Stetson Companies and Goodwin Procter LLP, special counsel to
CSSW Parent, the Borrower and each of the Cohocton Companies and Stetson Companies,
in substantially the form of Exhibits D and E, respectively,
dated as of the Initial Closing Date.

 

(vii)                           A listing of
each policy of insurance held by CSSW Parent, the Borrower and each of the
Subsidiaries, which list sets forth the insurance required with respect to the
Cohocton Project and the Stetson I Project pursuant to Section 9.6;  together with a certification from an
Authorized Officer of the Borrower that such insurance policies comprise all
insurance required to be maintained (or caused to be maintained) in respect of
the Cohocton Project and the Stetson I Project pursuant to Section 9.6
hereof, that each has been obtained and is in full force and effect on the
Initial Closing Date and

 

57

 

such
insurance policies comply in all respects with the requirements of Section 9.6
hereof.

 

(viii)                        Results of a
recent Lien search with respect to CSSW Parent, the Borrower and each of the
Cohocton Companies and Stetson Companies, and such search shall reveal no Liens
on any of the assets of CSSW Parent or the Borrower and no Liens other than
Permitted Liens, on any of the assets of the Cohocton Companies and Stetson
Companies.

 

(ix)                                All documents
required to be filed, registered, notarized or recorded in order to create and
perfect the security interests with respect to the CSSW Parent and the Borrower
as first priority Liens, which documents shall have either (x) been
executed and delivered to the Collateral Agent for filing or recording in form
and substance satisfactory to the Initial Lenders, or (y) been properly
filed, registered, notarized or recorded in each office in each jurisdiction in
which such filings, registrations, notarizations and recordings are required,
and any other action required in the reasonable judgment of the Collateral
Agent or the Initial Lenders to perfect such security interests as such first
priority Liens shall have been effected and the Collateral Agent shall have
received (with respect to any filings described in clause (y) above)
acknowledgment copies or other evidence reasonably satisfactory to it that all
necessary filing, notarization, recording and other fees and all Taxes and
expenses related to such filings, notarizations, registrations and recordings
have been paid in full.

 

(x)                                   Certificates
representing the Equity Interests, if any, required to be pledged pursuant to
the Security Documents, together with undated powers for each such certificate
executed in blank by an Authorized Officer of the pledgor thereof.

 

(xi)                                The Base Case
Projections Model, operating plan for 2009 and the operating budget for 2009
for each of the Cohocton Project and Stetson I Project, in the form approved by
the Initial Lenders.

 

(xii)                             With respect to
the Cohocton Project and Stetson I Project, the Historical Financial
Statements, together with a certificate of a Financial Officer of the Borrower
that such financial statements fairly present in all material respects the
financial condition of such Persons as at the dates indicated, in each case in
accordance with GAAP subject, in the case of unaudited financial statements, to
changes resulting from audit and normal year end adjustments which management
of the Borrower believes are reasonable.

 

(xiii)                          With respect to
the Cohocton Project and the Stetson I Project, the Pro Forma Financial
Statements, together with a certificate of a Financial Officer of the Borrower
that such Pro Forma Financial Statements have been prepared based upon
historical financial information that was prepared in accordance with GAAP and
fairly present in all material respects the pro forma financial condition of
the Borrower and its Consolidated Subsidiaries as at the dates or for such
periods indicated on the basis of the assumptions set forth therein.

 

58

 

(xiv)                         An officer’s
certificate of an Authorized Officer of the Borrower certifying that (x) each
of the representations and warranties set forth in Article 5, and otherwise
in the Loan Documents are true and correct in all material respects as of the
Initial Closing Date (other than those qualified by a reference to materiality
or Material Adverse Effect, which representations and warranties will be true
and correct in all respects, and other than any representations or warranties
with respect to the Steel Winds Companies or the Steel Winds Project) and (y) no
Default or Event of Default hereunder shall have occurred and be continuing.

 

(b)                     All
Governmental Approvals and consents, approvals and filings required to be obtained
or made with any Governmental Authority or any other Person in order for each
party thereto to execute, deliver and perform the Transaction Documents to
which it is a party and the HSHN Stetson I Amendments have been obtained or
made and are in full force and effect as of the Initial Closing Date.

 

(c)                      No action or
proceeding has been instituted or threatened in writing by any Governmental
Authority or any other Person (i) against CSSW Parent, the Borrower or any
of the Borrower’s Subsidiaries which seeks to impair, restrain, prohibit or
invalidate the transactions contemplated by any of the Transaction Documents
with respect to the Cohocton Project or the Stetson I Project or (ii) regarding
the effectiveness or validity of any Governmental Approvals, in any material
respect, with respect to the Cohocton Project or the Stetson I Project.

 

(d)                     The Borrower
shall have made available to the Administrative Agent and the Initial Lenders
electronically or otherwise copies of all Material Project Documents (and Schedule
3.1(d)  sets forth all Material Project Documents as certified by an
Authorized Officer) with respect to the Cohocton Project and Stetson I Project.

 

(e)                      The Borrower
shall have made available to the Administrative Agent and the Initial Lenders
electronically or otherwise copies of all Major Project Indebtedness Documents
(including the Lehman Tax Equity Financing documents) and other documents
governing any outstanding Indebtedness (and Schedule 3.1(e)  sets
forth all such documents as certified by an Authorized Officer of the Borrower)
with respect to the Cohocton Project and Stetson I Project and all copies of
documents governing the Holdings Lien Indebtedness.

 

(f)                        (A) None
of CSSW Parent, the Borrower, any of the Cohocton Companies or any other
Stetson Companies shall be in default in the performance, observance or
fulfillment of any obligations, covenants or conditions contained in any of the
Material Project Documents or any Major Project Indebtedness Documents with
respect to the Cohocton Project or the Stetson I Project, as applicable, and to
CSSW Parent’s, the Borrower’s, any Cohocton Companies’ and Stetson Company’s
knowledge, no Project Participant is in default in the performance, observance
or fulfillment of any obligations, covenants or conditions contained in any
Material Project Document with respect to the Cohocton Project or the Stetson I
Project, as applicable, in each case, except to the extent that such default
could not reasonably be expected to have a Material Adverse Effect, (B) each
such Material Project Document with respect to the Cohocton Project and the
Stetson I Project shall be in full force and effect, (C) the copy of each
such Material Project Document with respect to the Cohocton

 

59

 

Project
and the Stetson I Project delivered to the Initial Lenders pursuant to Section 3.1(d) 
shall be true, correct and complete, and the copy of each document set forth on
Schedule 3.1(e)  with respect to the Cohocton Project and the Stetson
I Project delivered pursuant to Section 3.1(e)  shall be true,
correct and complete, (D) except as delivered to the Initial Lenders
pursuant to Section 3.1(d)  and Section 3.1(e),  there shall be no agreements, side letters or
other documents to which the Parent or any of its Subsidiaries is a party,
which have the effect of modifying or supplementing in any material respect any
of the respective rights or obligations of the parties under any such of the
Material Project Documents or under any document set forth on Schedule
3.1(e)  with respect to the Cohocton Project or the Stetson I Project,
as applicable and (E) the Administrative Agent and the Initial Lenders
shall have received a certificate of an Authorized Officer of the Borrower
certifying that each of the conditions set forth in clauses (A), (B), (C) and
(D) of this Section 3.1(f)  have been satisfied.

 

(g)                     The HSHN
Stetson I Amendments and the Second Lien Security Agreement shall have been
entered into in a form and substance reasonably satisfactory to the Initial
Lenders and shall be in full force and effect and the Borrower shall have
provided full and complete executed copies of such agreements.

 

(h)                     The Agents and
the Initial Lenders shall have received all fees and expense reimbursements due
and payable on the Initial Closing Date by the Borrower.

 

(i)                         No Material
Adverse Effect shall have occurred since March 31, 2009, except as set
forth on Schedule 5.7 hereto.

 

(j)                         The
organizational structure, as of the Initial Closing Date, of CSSW Parent and
the Borrower shall be as described on Exhibit G.

 

Section 3.2                                      Conditions to
Subsequent Closing Date. The Initial Lenders’ obligation to make the
Subsequent Term Loan on the Subsequent Closing Date pursuant to this Agreement
shall be subject to the satisfaction or waiver of all of the conditions
precedent set forth below, which relate solely to the Steel Winds Companies and
the Steel Winds Project, no later than the Subsequent Term Loan Commitment
Expiration Date:

 

(a)                      The Borrower
shall have delivered the following to the Administrative Agent, the Collateral
Agent and the Initial Lenders on or prior to the Subsequent Closing Date, each
in form and substance satisfactory to the Initial Lenders:

 

(i)                                     The Notice of
Borrowing duly executed by the Borrower and, if required pursuant to Section 9.22,
an Assumption Agreement to the Security Agreement duly executed by the Steel
Winds Project Company and the Steel Winds Holding Company.

 

(ii)                                  A copy of the
Organizational Documents of each of the Steel Winds Companies as in effect on
the Subsequent Closing Date, certified by the Secretary of State or other
appropriate public official of the state of its incorporation or organization,
and a certificate as to the good standing of each of the Steel Winds Companies
from the appropriate public official of the jurisdiction of its incorporation,

 

60

 

organization
or formation, dated as of a date no earlier than fifteen (15) days prior to the
Subsequent Closing Date.

 

(iii)                               A certificate
of an Authorized Officer of each of the Steel Winds Companies dated the
Subsequent Closing Date, certifying (A) that attached thereto is a true
and complete copy of the Organizational Documents of each of the Steel Winds
Companies as in effect on the Subsequent Closing Date and at all times from the
date on which the resolutions referred to in clause (B) below were
adopted, to and including the date of such certificate, (B) that attached
thereto is a true and complete copy of resolutions duly adopted by the board of
directors (or other equivalent body) or evidence of all partnership, corporate
or limited liability company or membership action, as the case may be,
authorizing the execution, delivery and performance by each of the Steel Winds
Companies of the Loan Documents to which such Person is or is intended to be a
party, and that such resolutions have not been modified, rescinded or amended
and are in full force and effect, and (C) the name, incumbency and
specimen signature of each authorized officer of each Steel Winds Company
executing the Loan Documents and each other document to be delivered by each
such Steel Winds Company from time to time in connection therewith (and the
Secured Parties may conclusively rely on such certificate until the
Administrative Agent receives a replacement certificate in the form described
in this clause (C) from such Person).

 

(iv)                              Legal opinions
of in-house counsel to the Steel Winds Companies, and Goodwin Procter LLP,
special counsel to the Steel Winds Companies, in substantially the form of Exhibits
D and E, respectively, and a legal opinion of Nixon Peabody LLP,
special New York regulatory counsel to the Steel Winds Companies, with respect
to the Lehman Tax Equity Buyback, in the form previously provided to the
Initial Lenders, dated as of the Subsequent Closing Date.

 

(v)                                 A listing of
each policy of insurance held by CSSW Parent, the Borrower and each of the
Subsidiaries, which list sets forth the insurance required with respect to the
Steel Winds Project pursuant to Section 9.6; together with a
certification from an Authorized Officer of the Borrower that such insurance
policies comprise all insurance required to be maintained (or caused to be
maintained) in respect of the Steel Winds Project pursuant to Section 9.6
hereof, that each has been obtained and is in full force and effect on the
Subsequent Closing Date and such insurance policies comply in all respects with
the requirements of Section 9.6.

 

(vi)                              Results of a
recent Lien search with respect to the Steel Winds Companies, and such search
shall reveal no Liens on any of the assets of the Steel Winds Companies.

 

(vii)                           If required
pursuant to Section 9.22, all documents required to be filed,
registered, notarized or recorded in order to create and perfect the security
interests with respect to the Steel Winds Holding Company and the Steel Winds
Project Company as first priority Liens, which documents shall have either (x) been
executed and delivered to the Collateral Agent for filing or recording in form
and substance satisfactory to the Initial Lenders, or (y) been properly
filed, registered, notarized or recorded in each office

 

61

 

in
each jurisdiction in which such filings, registrations, notarizations and recordings
are required, and any other action required in the reasonable judgment of the
Collateral Agent or the Initial Lenders to perfect such security interests as
such first priority Liens shall have been effected and the Collateral Agent
shall have received (with respect to any filings described in clause (y) above)
acknowledgment copies or other evidence reasonably satisfactory to it that all
necessary filing, notarization, recording and other fees and all Taxes and
expenses related to such filings, notarizations, registrations and recordings
have been paid in full.

 

(viii)                        Certificates
representing the Equity Interests, if any, required to be pledged pursuant to
the Security Documents, together with undated powers for each such certificate
executed in blank by an Authorized Officer of the pledgor thereof.

 

(ix)                                The Base Case
Projections Model, operating plan for the Fiscal Year in which the Subsequent
Closing Date occurs and the operating budget for such Fiscal Year for the Steel
Winds Project, in the form approved by the Initial Lenders.

 

(x)                                   With respect to
the Steel Winds Project, the Historical Financial Statements, together with a
certificate of a Financial Officer of the Borrower that such financial
statements fairly present in all material respects the financial condition of
such Persons as at the dates indicated, in each case in accordance with GAAP
subject, in the case of unaudited financial statements, to changes resulting
from audit and normal year end adjustments.

 

(xi)                                With respect to
the Steel Winds Project, the Pro Forma Financial Statements, together with a
certificate of a Financial Officer of the Borrower that such Pro Forma
Financial Statements have been prepared based upon historical financial
information that was prepared in accordance with GAAP and fairly present in all
material respects the pro forma financial condition of the Borrower and its
Consolidated Subsidiaries as at the dates or for such periods indicated on the
basis of the assumptions set forth therein which management of the Borrower
believes are reasonable.

 

(xii)                             An officer’s
certificate of an Authorized Officer of the Borrower certifying that (x) each
of the representations and warranties set forth in Article 5, and otherwise
in the Loan Documents are true and correct in all material respects as of the
Subsequent Closing Date (other than those qualified by a reference to
materiality or Material Adverse Effect, which representations and warranties
will be true and correct in all respects) and (y) no Default or Event of
Default hereunder shall have occurred and be continuing.

 

(b)                     All
Governmental Approvals and consents, approvals and filings required to be
obtained or made with any Governmental Authority or any other Person in
connection with the Steel Winds Reorganization, the Lehman Tax Equity Buyback
and in order for each party thereto to execute, deliver and perform the
Transaction Documents to which it is a party have been obtained or made and are
in full force and effect as of the Subsequent Closing Date.

 

62

 

(c)                      No action or
proceeding has been instituted or threatened in writing by any Governmental
Authority or any other Person (i) against CSSW Parent, the Borrower or any
of the Borrower’s Subsidiaries which seeks to impair, restrain, prohibit or
invalidate the transactions contemplated by any of the Transaction Documents
with respect to the Steel Winds Project or (ii) regarding the
effectiveness or validity of any Governmental Approvals with respect to the
Steel Winds Project.

 

(d)                     The Borrower
shall have made available electronically or otherwise copies of all Material
Project Documents listed on Schedule 3.2(d) with respect to the
Steel Winds Project.

 

(e)                      There shall be
no Indebtedness outstanding in respect of the Steel Winds Companies and the
Steel Winds Project, other than the Steel Winds Letters of Credit.

 

(f)                        (A) None
of CSSW Parent, the Borrower or any Steel Winds Company shall be in default in
the performance, observance or fulfillment of any obligations, covenants or
conditions contained in any of the Material Project Documents with respect to
the Steel Winds Project, and to CSSW Parent’s, the Borrower’s and any Steel
Winds Company’s knowledge, no Project Participant shall be in default in the
performance, observance or fulfillment of any obligations, covenants or
conditions under any Material Project Document with respect to the Steel Winds
Project, in each case, except to the extent that such default could not
reasonably be expected to have a Material Adverse Effect, (B) each such
Material Project Document with respect to the Steel Winds Project shall be in
full force and effect, (C) the copy of each such Material Project Document
with respect to the Steel Winds Project delivered to the Initial Lenders
pursuant to Section 3.2(d) shall be true, correct and
complete, (D) except as delivered to the Initial Lenders pursuant to Section 3.2(d),
there shall be no agreements, side letters or other documents to which the
Parent or any of its Subsidiaries is a party which have the effect of modifying
or supplementing in any material respect any of the respective rights or
obligations of the parties under any such of the Material Project Documents
with respect to the Steel Winds Project and (E) the Administrative Agent
and the Initial Lenders shall have received a certificate of an Authorized
Officer of the Borrower certifying that each of the conditions set forth in
clauses (A), (B), (C) and (D) of this Section 3.2(f) have
been satisfied.

 

(g)                     The Initial
Lenders shall have received all expense reimbursements due and payable on the
Subsequent Closing Date by the Borrower.

 

(h)                     No Material
Adverse Effect shall have occurred since March 31, 2009, except as set
forth on Schedule 5.7 hereto.

 

(i)                         The Steel Winds
Reorganization shall have occurred or shall occur concurrently with the
Subsequent Closing Date as described on Schedule 1 hereto.

 

(j)                         The Lehman Tax
Equity Buyback shall have occurred or shall occur concurrently with the
Subsequent Closing Date in a manner reasonably satisfactory to the Initial
Lenders.

 

63

 

(k)                      The Initial
Closing Date shall have occurred or shall occur concurrently with the
Subsequent Closing Date.

 

Section 3.3                                      Conditions to
Stetson II Effective Date. The obligations of the Initial Lenders to
enter into the commitment to make the Stetson II Term Loans and the
effectiveness of the Stetson II Effective Date pursuant to this Agreement shall
be subject to the satisfaction or waiver of all of the conditions precedent set
forth below, which, except as otherwise provided herein, relate solely to CSSW
Parent, the Borrower, the Stetson Intermediate Holding Company, the Stetson
Holding Company, the Stetson I Project Company, the Stetson I Project, the
Stetson II Project Company and the Stetson II Project:

 

(a)                      The Stetson
Reorganization shall have occurred or shall occur concurrently with the Stetson
II Effective Date as described on Schedule 3 hereto.

 

(b)                     The Stetson
Portfolio Financing shall have been entered into in a form and substance
reasonably satisfactory to the Initial Lenders and shall be in full force and
effect, the Stetson I Existing Financing shall have been terminated and paid
off in full, and the Borrower shall have provided full and complete executed copies
of such agreements.

 

(c)                      The Borrower
shall have delivered the following to the Administrative Agent, the Collateral
Agent and the Initial Lenders on or prior to the Stetson II Effective Date,
each in form and substance satisfactory to the Initial Lenders:

 

(i)                                     A copy of the Organizational
Documents of the each of CSSW Parent, the Borrower, Stetson Intermediate
Holding Company, the Stetson Holding Company, the Stetson I Project Company and
the Stetson II Project Company as in effect on the Stetson II Effective Date,
certified by the Secretary of State or other appropriate public official of the
state of its incorporation or organization, and a certificate as to the good
standing of each of CSSW Parent, the Borrower Stetson Intermediate Holding
Company, the Stetson Holding Company, the Stetson I Project Company and the
Stetson II Project Company from the appropriate public official of the
jurisdiction of its incorporation, organization or formation, dated as of a
date no earlier than fifteen (15) days prior to the Stetson II Effective Date.

 

(ii)                                  A certificate of an
Authorized Officer of each of CSSW Parent and the Borrower dated the Stetson II
Effective Date, certifying (A) that attached thereto is a true and
complete copy of the Organizational Documents of each of CSSW Parent, the
Borrower, Stetson Intermediate Holding Company, the Stetson Holding Company,
the Stetson I Project Company and the Stetson II Project Company as in effect
on the Stetson II Effective Date and at all times from the date on which the
resolutions referred to in clause (B) below were adopted, to and including
the date of such certificate, (B) that attached thereto is a true and
complete copy of resolutions duly adopted by the board of directors (or other
equivalent body) or evidence of all partnership, corporate or limited liability
company or membership action, as the case may be, authorizing the execution,
delivery and performance by CSSW Parent and the Borrower of the Loan Documents
to which such Person is or is intended to be a party, and that such resolutions
have not been modified, rescinded or amended and are in full force and effect,
and (C) the name,

 

64

 

incumbency and specimen signature of each authorized officer of CSSW
Parent and the Borrower executing the Loan Documents and each other document to
be delivered by the CSSW Parent or the Borrower, as applicable, from time to
time in connection therewith (and the Secured Parties may conclusively rely on
such certificate until the Administrative Agent receives a replacement
certificate in the form described in this clause (C) from such Person).

 

(iii)                               Legal opinions of in-house
counsel to the Stetson Intermediate Holding Company and the Stetson II Project
Company, and Goodwin Procter LLP, special counsel to CSSW Parent, the Borrower,
the Stetson Intermediate Holding Company, the Stetson Holding Company, the
Stetson I Project Company and the Stetson II Project Company, in substantially
the form of Exhibits D and E, respectively, dated as of the
Stetson II Effective Date.

 

(iv)                              A listing of each policy of
insurance held by CSSW Parent, the Borrower and each of the Subsidiaries, which
list sets forth the insurance required with respect to the Stetson II Project
pursuant to Section 9.6; together with a certification from an
Authorized Officer of the Borrower that such insurance policies comprise all
insurance required to be maintained (or caused to be maintained) in respect of
the Stetson II Project pursuant to Section 9.6 hereof, that each
has been obtained and is in full force and effect on the Stetson II Effective
Date and such insurance policies comply in all respects with the requirements
of Section 9.6.

 

(v)                                 Results of a recent Lien
search with respect to the Stetson Intermediate Holding Company and the Stetson
II Project Company, and such search shall reveal no Liens on any of the assets
of such companies other than Permitted Liens.

 

(vi)                              Certificates representing
the Equity Interests, if any, required to be pledged pursuant to the Security
Documents, together with undated powers for each such certificate executed in
blank by an Authorized Officer of the pledgor thereof.

 

(vii)                           The Base Case Projections
Model and operating plan for the Fiscal Year in which the Stetson II Effective
Date occurs and the operating budget, as applicable, for such Fiscal Year for
the Stetson I Project and the Stetson II Project, in the form approved by the
Initial Lenders.

 

(viii)                        With respect to the Stetson
I Project and the Stetson II Project, the Historical Financial Statements,
together with a certificate of a Financial Officer of the Borrower that such
financial statements fairly present in all material respects the financial
condition of such Persons as at the dates indicated, in each case in accordance
with GAAP subject, in the case of unaudited financial statements, to changes
resulting from audit and normal year end adjustments.

 

(ix)                                With respect to the Stetson
I Project and the Stetson II Project, the Pro Forma Financial Statements,
together with a certificate of a Financial Officer of the Borrower that such
Pro Forma Financial Statements have been prepared based upon historical
financial information that was prepared in accordance with GAAP and fairly

 

65

 

present in all material respects the pro forma financial condition of
the Borrower and its Consolidated Subsidiaries as at the dates or for such
periods indicated on the basis of the assumptions set forth therein which
management of the Borrower believes are reasonable.

 

(x)            An officer’s
certificate of an Authorized Officer of the Borrower certifying that (x) each
of the representations and warranties set forth in Article 5, and otherwise
in the Loan Documents are true and correct in all material respects as of the
Stetson II Effective Date (other than those qualified by a reference to
materiality or Material Adverse Effect, which representations and warranties
will be true and correct in all respects) and (y) no Default or Event of
Default hereunder shall have occurred and be continuing and as to matters set
forth in clauses (d), (e) and (m) below.

 

(xi)           Amendment No. 1
to Intercreditor Agreement, duly executed by the Collateral Agent, HSHN and the
Holdings Lenders (as defined in the Intercreditor Agreement).

 

(xii)          Amendment No. 2
to the Guarantee and Security Agreement, duly executed by the Borrower, CSSW
Parent, the Collateral Agent and the Initial Lenders.

 

(d)       All
Governmental Approvals and consents, approvals and filings required to be
obtained or made with any Governmental Authority or any other Person in
connection with the Stetson Reorganization and the Stetson Portfolio Financing
and in order for each party thereto to execute, deliver and perform the
Transaction Documents to which it is a party have been obtained or made and are
in full force and effect as of the Stetson II Effective Date.

 

(e)       No action or
proceeding has been instituted or threatened in writing by any Governmental
Authority or any other Person (i) against CSSW Parent, the Borrower or any
of the Borrower’s Subsidiaries which seeks to impair, restrain, prohibit or
invalidate the transactions contemplated by any of the Transaction Documents
with respect to the Stetson I Project or the Stetson II Project or (ii) regarding
the effectiveness or validity of any Governmental Approvals with respect to the
Stetson I Project or the Stetson II Project.

 

(f)        The Borrower
shall have made available electronically or otherwise copies of all Material
Project Documents listed on Schedule 3.3(f) with respect to the
Stetson II Project and any other reports, notices, certificates or other
information required to be delivered pursuant to Section 7.7.

 

(g)       (i) None
of CSSW Parent, the Borrower or any Stetson Company shall be in default in the
performance, observance or fulfillment of any obligations, covenants or
conditions contained in any of the Material Project Documents with respect to
the Stetson I Project or Stetson II Project, and to CSSW Parent’s, the
Borrower’s and any Stetson Company’s knowledge, no Project Participant shall be
in default in the performance, observance or fulfillment of any obligations,
covenants or conditions under any Material Project Document with respect to the
Stetson I Project or Stetson II Project, in each case, except to the extent
that such default could not reasonably be expected to have a Material Adverse
Effect, (ii) each such Material Project Document with respect to the
Stetson I Project

 

66

 

and the Stetson II Project shall be in full force and effect, (iii) the
copy of each such Material Project Document with respect to the Stetson I
Project and the Stetson II Project delivered to the Initial Lenders pursuant to
Section 3.3(f) shall be true, correct and complete, (iv) except
as delivered to the Initial Lenders pursuant to Section 3.3(f),  there shall be no agreements, side letters or
other documents to which the Parent or any of its Subsidiaries is a party which
have the effect of modifying or supplementing in any material respect any of
the respective rights or obligations of the parties under any such of the
Material Project Documents with respect to the Stetson I Project and the
Stetson II Project and (v) the Administrative Agent and the Initial
Lenders shall have received a certificate of an Authorized Officer of the
Borrower certifying that each of the conditions set forth in clauses (i), (ii),
(iii) and (iv) of this Section 3.3(g) have been
satisfied.

 

(h)       Except as set
forth in Schedule 5.7 hereto, no Material Adverse Effect shall have
occurred since (i) with respect to CSSW Parent, the Borrower, the Cohocton
Companies, the Stetson Holding Company, the Stetson I Project Company, the
Steel Winds Companies, the Cohocton Project, Stetson I Project and Steel Winds
Project, March 31, 2009 and (ii) with respect to the Stetson
Intermediate Holding Company, the Stetson II Project Company and the Stetson II
Project, September 30, 2009.

 

(i)        The Initial
Lenders shall have received a copy of the Stetson II Construction Budget.

 

(j)        The Initial
Lenders shall have received a copy of each of the reports, certificates or
other evidence delivered pursuant to Sections 5.1(g), 5.1(h), 5.1(m), 5.1(n),
5.1(o), 5.1(q), 5.1(r), 5.1(s), 5.1(w) and 5.1(mm) of the Stetson
Portfolio Financing Agreement, in each case, together with any attachments.

 

(k)       The Initial
Lenders shall have received (addressed to them) the same Independent Engineer’s
Closing Certificate and Report (as defined in the Stetson Portfolio Financing
Agreement) being delivered pursuant to Section 5.1(p) of the Stetson
Portfolio Financing Agreement, the same Annual Operating Plan (as defined in
the Stetson Portfolio Financing Agreement) being delivered pursuant to Section 5.1(u)
of the Stetson Portfolio Financing Agreement, and the same certificate
regarding Applicable Permits (as defined in the Stetson Portfolio Financing
Agreement) being delivered pursuant to Section 5.1(x) of the Stetson
Portfolio Financing Agreement, in each case, together with any attachments.

 

(l)        The organizational
structure, as of the Stetson II Effective Date, of CSSW Parent, the Borrower
and its Subsidiaries shall be as described on Exhibit K.

 

(m)      A certificate
of the Borrower signed by an Authorized Officer certifying that the
representations and warranties set forth in Sections 6.16(a) and (b), 6.22,
6.23, 6.24, 6.37, 6.38 and 6.39 of the Stetson Portfolio Financing Agreement
are true and correct in all material respects as of the Stetson II Effective
Date.

 

Section 3.4             Conditions to Stetson II
Funding Date. The Initial Lenders’ obligation to make the
Stetson II Term Loans on the Stetson II Funding Date pursuant to this Agreement
shall be subject to the satisfaction or waiver of all of the conditions
precedent set forth below, which

 

67

 

except
as otherwise provided herein, relate solely to CSSW Parent, the Borrower, the
Stetson Intermediate Holding Company, the Stetson Holding Company, the Stetson
I Project Company, the Stetson I Project, the Stetson II Project Company and
the Stetson II Project, no later than the Stetson II Term Loan Commitment
Expiration Date. The Borrower shall have delivered the following to the
Administrative Agent, the Collateral Agent and the Initial Lenders on or prior
to the Stetson II Funding Date, each in form and substance satisfactory to the
Initial Lenders:

 

(a)       The Notice of
Borrowing duly executed by the Borrower.

 

(b)       An officer’s
certificate of an Authorized Officer of the Borrower certifying that (w) each
of the representations and warranties set forth in Article 5, and
otherwise in the Loan Documents are true and correct in all material respects
as of the Stetson II Funding Date (other than those qualified by a reference to
materiality or Material Adverse Effect, which representations and warranties
will be true and correct in all respects), (x) no Default or Event of
Default hereunder shall have occurred and be continuing, (y) no default or
event of default under the Stetson Portfolio Financing shall have occurred
during the Stetson II Construction Period and be continuing and (z) no
Event of Loss with respect to the Stetson II Project shall have occurred and as
to matters set forth in clauses (j) and (n) below.

 

(c)       The Borrower
shall have made available electronically or otherwise copies of all Material
Project Documents listed on Schedule 3.3(f) (as may be revised on the
Stetson II Funding Date) with respect to the Stetson II Project and any other
reports, notices, certificates or other information required to be delivered
pursuant to Section 7.7.

 

(d)       The Initial
Lenders shall have received all expense reimbursements due and payable on the
Stetson II Funding Date by the Borrower and fees and expenses of the
Administrative Agent and those of its counsel.

 

(e)       Except as set
forth in Schedule 5.7 hereto, no Material Adverse Effect shall have
occurred since (i) with respect to CSSW Parent, the Borrower, the Cohocton
Companies, the Stetson Holding Company, the Stetson I Project Company, the
Steel Winds Companies, the Cohocton Project, Stetson I Project and Steel Winds
Project, March 31, 2009 and (ii) with respect to the Stetson
Intermediate Holding Company, the Stetson II Project Company and the Stetson II
Project, September 30, 2009.

 

(f)        (i) The
Stetson II COD shall have occurred or shall occur concurrently with the Stetson
II Funding Date and all other work on the Stetson II Project shall have been
completed and paid for (other than with respect to punch list items) and no
mechanics’ liens or similar liens shall have been filed with respect to the
Stetson II Project and (ii) all interconnection facilities and other
facilities necessary for the operation of the Stetson II Project in accordance
with Prudent Utility Practices shall be completed and all utilities, real
estate rights and other rights necessary for the operation of the Stetson II
Project shall be in place, in each case as certified by an Authorized Officer
of the Borrower and confirmed by the Independent Engineer (which confirmation
may be provided as separate documentation).

 

(g)       The Initial
Lenders shall have received a copy of the duly executed and delivered Turbine
Mechanical Completion Certificate, together with any attachments, which

 

68

 

shall be substantially in the form provided in the EPC Contract,
provided that any material changes from the form of such certificate shall be
in form and substance reasonably satisfactory to the Initial Lenders.

 

(h)       The Initial
Lenders shall have received a copy of the duly executed and delivered
Infrastructure Completion Certificate, together with any attachments, which
shall be substantially in the form provided in the EPC Contract, provided that
any material changes from the form of such certificate shall be in form and
substance reasonably satisfactory to the Initial Lenders.

 

(i)        If the Annual
Operating Plan has been updated after the Stetson II Effective Date, the
Initial Lenders shall have received any such updates to the Annual Operating
Plan.

 

(j)        No action or
proceeding has been instituted or threatened in writing by any Governmental
Authority or any other Person (i) against CSSW Parent, the Borrower or any
of the Borrower’s Subsidiaries which seeks to impair, restrain, prohibit or
invalidate the transactions contemplated by any of the Transaction Documents
with respect to the Stetson I Project or the Stetson II Project or (ii) regarding
the effectiveness or validity of any Governmental Approvals with respect to the
Stetson I Project or the Stetson II Project.

 

(k)       A certificate
from an Authorized Officer of the Borrower which certifies that the list of
each policy of insurance held by CSSW Parent, the Borrower and each of the
Subsidiaries, which list sets forth the insurance required with respect to the
Stetson II Project pursuant to Section 9.6 delivered to the Initial
Lenders as of the Stetson II Effective Date is in full force and effect on the
Stetson II Funding Date.

 

(l)        The Initial
Lenders shall have received the same certificate regarding Applicable Permits
(as defined in the Stetson Portfolio Financing Agreement) being delivered
pursuant to Section 5.1(x) of the Stetson Portfolio Financing
Agreement, dated as of the Stetson II Funding Date.

 

(m)      (i) None
of CSSW Parent, the Borrower or any Stetson Company shall be in default in the
performance, observance or fulfillment of any obligations, covenants or
conditions contained in any of the Material Project Documents with respect to
the Stetson I Project or Stetson II Project, and to CSSW Parent’s, the
Borrower’s and any Stetson Company’s knowledge, no Project Participant shall be
in default in the performance, observance or fulfillment of any obligations,
covenants or conditions under any Material Project Document with respect to the
Stetson I Project or Stetson II Project, in each case, except to the extent
that such default could not reasonably be expected to have a Material Adverse
Effect, (ii) each such Material Project Document with respect to the
Stetson I Project and the Stetson II Project shall be in full force and effect,
(iii) the copy of each such Material Project Document with respect to the
Stetson I Project and the Stetson II Project delivered to the Initial Lenders
pursuant to Section 3.3(f) shall be true, correct and
complete, (iv) except as delivered to the Initial Lenders pursuant to Section 3.3(f),
there shall be no agreements, side letters or other documents to which the
Parent or any of its Subsidiaries is a party which have the effect of modifying
or supplementing in any material respect any of the respective rights or

 

69

 

obligations of the parties under any such of the Material Project
Documents with respect to the Stetson I Project and the Stetson II Project and (v) the
Administrative Agent and the Initial Lenders shall have received a certificate
of an Authorized Officer of the Borrower certifying that each of the conditions
set forth in clauses (i), (ii), (iii) and (iv) of this Section 3.4(k)
have been satisfied.

 

(n)       A certificate
of the Borrower signed by an Authorized Officer certifying that the
representations and warranties set forth in Sections 6.16(a) and (b),
6.22, 6.23, 6.24, 6.37, 6.38 and 6.39 of the Stetson Portfolio Financing
Agreement are true and correct in all material respects as of the Stetson II
Funding Date.

 

ARTICLE 4

 

PAYMENT, PREPAYMENT AND TAXES

 

Section 4.1             Mandatory Prepayment. The Borrower
shall make mandatory prepayments on the Term Loans as and when required below
without penalty or premium (except as set forth below) of each of the following
amounts:

 

(a)       Within three (3) Business
Days after the Borrower’s or any Subsidiary’s receipt thereof, 100% of the Net
Cash Proceeds received by the Borrower or one of its Subsidiaries from (i) any
funding (regardless of the Project or Person) prior to the Subsequent Closing
Date through the Lehman Tax Equity Financing or (ii) on and after the
Subsequent Closing Date, any Steel Winds Permitted Project Indebtedness or
Qualified Tax Equity Financing with respect to the Steel Winds Project (including
by either of the Steel Winds Companies) (the Borrower agreeing to cause such
Subsidiaries to distribute such Net Cash Proceeds under either clause (i) or
(ii) to it for the purpose of allowing it to make the foregoing mandatory
prepayment), subject to the following:

 

(I)           (A)             prior to the
Subsequent Closing Date, with respect to the receipt of Net Cash Proceeds from
a funding through the Lehman Tax Equity Financing, the mandatory prepayment
being made shall be applied to the aggregate principal amount of Term Loans
then being prepaid plus accrued interest thereon plus an amount equal to
the Call Premium applicable to the aggregate principal amount of Term Loans
then being prepaid, and

 

(B)              on and after
the Subsequent Closing Date, with respect to the receipt of Net Cash Proceeds
in an aggregate amount greater than $15,000,000, the mandatory prepayment being
made shall be applied to the aggregate principal amount of Term Loans then
being prepaid plus accrued interest thereon plus an amount equal to the
Call Premium applicable to the amount of aggregate principal amount of Term
Loans in excess of $15,000,000, and

 

(II)            in all other cases not
covered by the foregoing clause (I), the mandatory prepayment being made shall
be applied to the aggregate

 

70

 

principal amount of Term Loans then being prepaid plus accrued interest
thereon with no Call Premium being applicable thereto.

 

(b)       Within three (3) Business
Days after the Borrower’s or any Subsidiary’s receipt thereof, 100% of the Net
Cash Proceeds received by the Borrower or one of its Subsidiaries from the
issuance or incurrence of any Excess Permitted Project Indebtedness (the
Borrower agreeing to cause such Subsidiaries to distribute such Net Cash Proceeds
to it for the purpose of allowing it to make the foregoing mandatory
prepayment), subject to the following: (i) with respect to the receipt of
Net Cash Proceeds in an aggregate amount greater than $10,000,000, the
mandatory prepayment being made shall be applied to the aggregate principal
amount of Term Loans then being prepaid plus accrued interest thereon plus an
amount equal to the Call Premium applicable to the amount of aggregate
principal amount of Term Loans in excess of $10,000,000 then being prepaid and (ii) otherwise,
the mandatory prepayment being made shall be applied to the aggregate principal
amount of Term Loans then being prepaid plus accrued interest thereon with no
Call Premium being applicable thereto.

 

(c)       Unless a
Reinvestment Notice shall have been delivered to the Administrative Agent (who
shall promptly forward such notice to the Lenders and seek direction) on or
before the Reinvestment Decision Date in respect thereof and the Borrower has
made an Eligible Reinvestment, then on the Reinvestment Decision Date, 100% of
the Net Remaining Loss Proceeds shall be applied on such date (the Borrower
agreeing to cause its Subsidiaries to distribute such Net Remaining Loss
Proceeds to it for the purpose of allowing it to make the foregoing mandatory
prepayment) (x) to reduce Major Project Indebtedness or (y) towards
the prepayment of the Term Loans; provided that, notwithstanding the
foregoing, (i) the aggregate Net Remaining Loss Proceeds that may be
excluded from the foregoing requirement pursuant to a Reinvestment Notice shall
not exceed $2,500,000 in any Fiscal Year of the Borrower, and (ii) on each
Reinvestment Prepayment Date, an amount equal to the Reinvestment Prepayment
Amount (the Borrower agreeing to cause its Subsidiaries to distribute such
Reinvestment Prepayment Amount to it for the purpose of allowing it to make the
foregoing mandatory prepayment) with respect to the relevant Reinvestment Event
shall be applied toward the prepayment of the Term Loans.

 

(d)       No later than
thirty (30) days after the end of each Fiscal Year, 100% of Excess Cash during
such Fiscal Year (the Borrower agreeing to cause its Subsidiaries to distribute
all Excess Cash to it for the purpose of allowing it to make the foregoing
mandatory prepayment).

 

(e)       If the Lehman
Tax Equity Buyback has not been reconsummated pursuant to Section 11.1(o),
promptly following the expiration of the Tax Equity Standstill Period, a
principal amount equal to $15,000,000, plus accrued interest (including
any PIK interest applicable thereto).

 

(f)        If (i) Stetson
II COD has not occurred on or before the Stetson II Outside Completion Date or (ii)
subsequent to a cure effected in accordance with Section 10.1(n) of
the Stetson Portfolio Financing Agreement, the Stetson II Project Company or
Stetson II Project shall not have been fully released and discharged (other
than inchoate obligations thereunder that could not give rise to defaults under
the Stetson Portfolio Financing

 

71

 

Agreement) from the Stetson Portfolio Financing Agreement or any
Refinancing thereof and any related loan documents, including with respect to
obligations relating to collateral, as of the Stetson II Outside Completion
Date, then no later than seven (7) days after the Stetson II
Outside Completion Date, an amount of $50,000,000 (unless the Initial Lenders
shall have notified the Borrower specifying a lesser amount within 5 days after
the Stetson II Outside Completion Date, in which case such payment shall be
made in such lesser amount), plus accrued and unpaid interest on such
principal amount then being prepaid (including any PIK interest applicable
thereto) plus an amount equal to the Call Premium in respect of such
principal amount then being prepaid (the “Stetson Prepayment”).

 

Section 4.2             Voluntary Prepayments. The Borrower
may, at any time and from time to time, prepay all or a portion of the
outstanding principal amount of the Term Loans in minimum amounts of not less
than $1,000,000 plus accrued and unpaid interest to such date plus
an amount equal to the Call Premium in respect of such principal amount then
being prepaid. Amounts prepaid may not be re-borrowed.

 

Section 4.3             Payment and Interest Cutoff. Irrevocable
notice of any voluntary prepayment pursuant to Section 4.2 shall be
given to the Administrative Agent not later than 1:00 p.m. (New York City time)
at least two Business Days prior to the date of prepayment and shall specify
the date of such prepayment and the aggregate principal amount of the Term
Loans to be prepaid on such date. Upon receipt of any such notice, the
Administrative Agent shall promptly forward such notice to each Lender thereof.
Notice of prepayment having been given in compliance with this Section 4.3,
the amount specified to be prepaid shall become due and payable on the date
specified for prepayment together with accrued and unpaid interest to such date
on the amount prepaid.

 

Section 4.4             Method, Timing and
Application of Payments.

 

(a)       Each payment
(including each prepayment) by the Borrower on account of principal of and
interest and other amounts on the Term Loans shall be made pro rata according to
the respective outstanding principal amounts of the Term Loans then held by the
Lenders.

 

(b)       All payments
(including prepayments) to be made by the Borrower hereunder, whether on
account of principal, interest, premiums or otherwise, shall be made without
setoff or counterclaim and shall be made prior to 1:00 p.m., New York City
time, on the due date thereof to the Administrative Agent for the account of
the Lenders at the Payment Office of the Administrative Agent in Dollars and in
immediately available funds. The Administrative Agent shall distribute such
payments to each relevant Lender promptly upon receipt in like funds as
received unless funds are received after 1:00 p.m., New York City time, then
the relevant payments or distributions shall be made on the subsequent Business
Day. If any payment hereunder becomes due and payable on a day, other than a
Business Day, such payment shall be extended to the next succeeding Business
Day. In the case of any extension of any payment of principal pursuant to the
preceding sentence, interest thereon shall be payable at the then applicable
rate during such extension.

 

72

 

(c)       All payments
shall be applied first to the payment of all fees, expenses, premiums
and other amounts due to the Administrative Agent, the Collateral Agent and
then to the Lenders (excluding principal and interest), then to accrued and
unpaid interest, and the balance on account of outstanding principal; provided,
however, that after an Event of Default, payments will be applied to the
obligations of the Borrower to the Administrative Agent, the Collateral Agent
and the Lenders as provided in Section 11.5 or, except for the
obligations due to the Agents, otherwise as the Majority Lenders determine in
their sole discretion.

 

Section 4.5             Taxes.

 

(a)       All payments by
the Borrower of principal of, and interest on, the Term Loans and all other
amounts payable hereunder shall be made free and clear of and without deduction
for any present or future income, excise, stamp or franchise taxes and other
taxes, fees, duties, withholdings or other charges of any nature whatsoever
imposed by any taxing authority (“Taxes”) except as otherwise required
by law. In the event that any withholding or deduction from any payment to be
made by the Borrower hereunder is required in respect of any Taxes pursuant to
any applicable law, rule or regulation, then the Borrower will:

 

(i)            pay directly to
the relevant authority the full amount required to be so withheld or deducted;

 

(ii)           promptly
forward to each affected Lender an official receipt or other documentation
reasonably satisfactory to such affected Lender evidencing such payment to such
authority; and

 

(iii)          pay to each
affected Lender only such additional amount or amounts of Non-Excluded Taxes as
is necessary to ensure that the net amount actually received by each affected
Lender (after taking into account any Non-Excluded Taxes imposed on amounts
payable under this Section 4.5(a)) will equal the full amount each
affected Lender would have received had no such withholding or deduction for
Non-Excluded Taxes been required.

 

Moreover,
if any Non-Excluded Taxes are directly asserted against any Lender with respect
to any payment received by such affected Lender hereunder, each affected Lender
may pay such Taxes and the Borrower will promptly pay such additional amount
(including any penalties, interest or expenses) as is necessary in order that
the net amount received by each affected Lender after the payment of any
Non-Excluded Taxes shall equal the amount each affected Lender would have
received had not such Non-Excluded Taxes been asserted.

 

(b)       If the Borrower
fails to pay any Taxes when due to the appropriate taxing authority or fails to
remit to each affected Lender the required receipts or other required
documentary evidence, the Borrower shall indemnify each affected Lender for any
incremental taxes, interest or penalties that may become payable by each
affected Lender as a result of any such failure.

 

(c)       In addition,
the Borrower agrees to pay any present or future stamp or documentary taxes or
any other excise or property taxes, charges or similar levies that arise from
any payment made or from the execution, delivery or registration of, or
otherwise with

 

73

 

respect to, this Agreement, the Term Notes, or the other Loan Documents
(hereinafter referred to as “Other Taxes”).

 

(d)       The Borrower
shall indemnify each Lender and the Administrative Agent for the full amount of
Non-Excluded Taxes or Other Taxes (including, without limitation, any
Non-Excluded Taxes or Other Taxes imposed by any Governmental Authority on
amounts payable under this Section 4.5) paid by such Lender or the
Administrative Agent (as the case may be) and any liability (including interest
and expenses) arising therefrom or with respect thereto, whether or not such
Non-Excluded Taxes or Other Taxes were correctly or legally asserted. Each
payment required to be made by the Borrower in respect of this indemnification
shall be made to the Administrative Agent for the benefit of any party claiming
such indemnification within thirty (30) days from the date the Borrower
receives written demand therefor detailing the calculation of such amounts from
the Administrative Agent on behalf of itself as Agent or any such Lender. The
agreements in this subsection shall survive the termination of this Agreement
and the payment of the Term Notes and all other amounts payable hereunder.

 

(e)       The Borrower
will pay prior to delinquency Taxes and Other Taxes required to be paid by the
Borrower in respect of any payment under this Agreement. Upon request, the Borrower
will furnish to the Administrative Agent for its own account or for the account
of the affected Lender, as the case may be, the original or a certified copy of
a receipt or other documentation reasonable satisfactory to such affected
Lender evidencing payment of such Taxes or Other Taxes.

 

(f)        Prior to
becoming an Administrative Agent or Lender under this Agreement (including in
connection with an assignment), on or prior to the date on which any form or
certificate expires or becomes obsolete, after the occurrence of any event
requiring a change in the most recent form or certificate previously delivered
and within fifteen (15) days after a reasonable written request of the Borrower
or the Administrative Agent from time to time and to the extent such Administrative
Agent or Lender is legally entitled thereto:

 

(i)            each such
Person or Lender that is not in each case a “United States person” (as such
term is defined in Section 7701(a)(30) of the Code) for U.S. federal
income tax purposes (a “Foreign Lender”) shall provide to the Borrower
and the Administrative Agent (or, in the case of a Participant, to the Lender
from which the related participation shall have been purchased) a properly
completed and executed IRS Form W-8BEN, Form W-8ECI or Form W-8IMY
or other applicable form, certificate or document prescribed by the Internal
Revenue Service (including all required attachments), certifying as to such
Foreign Lender’s entitlement to an exemption from, or reduction in, United
States withholding tax with respect to interest payments to be made to such
Foreign Lender under this Agreement and under the Term Loans. Any Foreign
Lender that is claiming an exemption from U.S. withholding tax under Section 871(h) or
881(c) of the Code shall provide in addition to the applicable IRS Form W-8
(or, in the case of a Participant, to the Lender from which the related
participation shall have been purchased), a properly executed certificate
representing that such Foreign Lender is not a “bank” for purposes of Section 881(c) of
the Code, does not hold a ten percent (10%) interest in the capital or profits
of the Borrower within the meaning of Section

 

74

 

871(h)(3)(B) of the Code, and is not a controlled foreign
corporation related to the Borrower within the meaning of Section 864(d)(4) of
the Code. No Foreign Lender shall be entitled to additional payments under Section 4.5(a) or
to indemnification under Section 4.5(d) for any Non-Excluded
Taxes or Other Taxes to the extent such Non-Excluded Taxes or Other Taxes would
not have been imposed had the Foreign Lender complied with this Section 4.5(f)(i).
Each Foreign Lender shall promptly notify the Borrower at any time it
determines that it is no longer in a position to provide any previously
delivered certificate to the Borrower (or any other form of certification
adopted by the U.S. Governmental Authorities for such purposes); and

 

(ii)           each such
Person or Lender that is a “United States person” (as such term is defined in Section 7701(a)(30)
of the Code) for U.S. federal income tax purposes shall provide to Borrower and
the Administrative Agent (or, in the case of a Participant, to the Lender from
which the related participation shall have been purchased), a properly
completed and executed IRS Form W-9, certifying as to such Lender’s
entitlement to an exemption from U.S. backup withholding tax, or any successor
form. Each such Lender shall promptly notify the Borrower at any time it
determines that it is no longer in a position to provide any previously
delivered certificate to the Borrower (or any other form of certification
adopted by the U.S. Governmental Authorities for such purposes).

 

(g)       If the Borrower
determines in good faith that a reasonable basis exists for contesting a Non-Excluded
Tax or Other Tax, the relevant Lender (or assignee), or the Administrative
Agent, as applicable, shall cooperate with the Borrower in challenging such Tax
at the Borrower’s expense if requested by the Borrower. If any Lender (or
assignee) determines in its sole discretion that it has received a refund in
respect of any Non-Excluded Taxes or Other Taxes as to which it has been
indemnified by the Borrower or with respect to which the Borrower has paid
additional amounts pursuant to this Section 4.5, it shall within
thirty (30) days from the date of such receipt pay over such refund to the
Borrower (but only to the extent of indemnity payments made, or additional
amounts paid, by the Borrower under this Section 4.5 with respect
to the Non-Excluded Taxes or Other Taxes giving rise to such refund), net of
all out-of-pocket expenses of such Lender (or assignee) or the Administrative
Agent and without interest (other than interest paid by the relevant
Governmental Authority with respect to such refund); provided, however,
that the Borrower, upon the request of such Lender (or assignee) or the
Administrative Agent, agrees to repay the amount paid over to the Borrower
(plus penalties interest or other charges) to such Lender (or assignee) or the
Administrative Agent in the event such Lender (or assignee) or the
Administrative Agent is required to repay such refund to such Governmental
Authority. Neither the Lender nor the Administrative Agent shall be obliged to
disclose any information regarding its tax affairs or computations to the
Borrower in connection with this paragraph (g) or any other provision of
this Section 4.5.

 

(h)       If the
Administrative Agent or any Lender requests, or the Borrower is required to
make, any indemnification or payment with respect to Non-Excluded Taxes
(excluding Other Taxes) under this Section 4.5, then the relevant
Lender shall use reasonable efforts to designate a different lending office or
to assign its rights and obligations under the Loan Documents to another of its
branches or such other Person as Borrower may reasonably

 

75

 

request if (i) such designation or assignment could reasonably be
expected to reduce or eliminate amounts payable pursuant to this Section 4.5,
and (ii) in the reasonable judgment of such Lender such designation or
assignment would not subject it to any material unreimbursed cost or expense
and would not otherwise be materially disadvantageous to it. Borrower agrees to
pay all reasonable costs and expenses incurred by such Lender in connection
with such designation or assignment.

 

(i)        To the extent that the Lenders have complied with Section 4.5(f),
the parties agree and acknowledge that as of the date hereof no withholding or
deduction for any U.S. Taxes is required by applicable law, rule or
regulation (“Initial U.S. Taxes”), and, as of the date hereof, the
Borrower will not withhold on any payments made to the Lenders under this
Agreement unless required to do so by a Governmental Authority pursuant to a
final determination. If, as a result of a final determination, the Borrower is
or was required to withhold or deduct any Initial U.S. Taxes on amounts payable
to a Lender (or assignee) under this Agreement, then such Lender (or assignee)
shall indemnify the Borrower in full for the entire amount that was required to
be withheld or deducted (including interest and penalties); provided that
nothing in this sentence shall limit or change the Borrower’s obligations under
this Section 4.5 with respect to all Taxes and Other Taxes other
than with respect to Initial U.S. Taxes.

 

(j)        The agreements and obligations of the Borrower in
respect of this Section 4.5 shall survive the payment of the Term
Loans, the Term Notes and all other Obligations.

 

ARTICLE 5

 

REPRESENTATIONS AND WARRANTIES

OF THE BORROWER

 

In order to induce the Administrative Agent, the Collateral Agent and
the Initial Lenders to enter into this Agreement and to induce the Initial
Lenders to make the Term Loans on each Closing Date, the Borrower hereby makes
the following representations and warranties, on each such Closing Date; provided,
however, that, except as otherwise specified, (a) on and as of the
Initial Closing Date, references in this Article 5 to any
Subsidiary or Subsidiaries of the Borrower, to the Project Companies and to the
Projects shall be deemed to refer to each of the Borrower’s Subsidiaries (other
than with respect to (i) the Steel Winds Companies and the Steel Winds
Project and (ii) the Stetson Intermediate Holding Company and the Stetson
II Project), (b) on and as of the Subsequent Closing Date, references in
this Article 5 to any Subsidiary or Subsidiaries of the Borrower,
to the Project Companies and to the Projects shall be deemed to refer only to (i) each
of the Borrower’s Subsidiaries (other than with respect to the Stetson
Intermediate Holding Company and the Stetson II Project), (ii) each of the
Project Companies and Projects in clause (a) and (iii) the Steel
Winds Companies and the Steel Winds Project, respectively and (c) on and
as of the Stetson II Effective Date, references in this Article 5
to any Subsidiary or Subsidiaries of the Borrower, to the Project Companies and
to the Projects shall be deemed to refer to each of the Borrower’s
Subsidiaries, to each of the Project Companies and to each of the Projects as
applicable; provided, further, that the notwithstanding the foregoing,
the

 

76

 

reference
in Section 5.15 to the Borrower’s Subsidiaries shall be deemed to
refer to each of the Subsidiaries of the Borrower as of each Closing Date.

 

Section 5.1             Existence. CSSW Parent,
the Borrower and each of its Subsidiaries (a) is duly formed, validly
existing and in good standing under the laws of the jurisdiction of its
organization, (b) has the power and authority, and the legal right, to
own, lease and operate its Property and to conduct the business in which it is
currently engaged in the manner it is now being conducted and (c) is duly
qualified as a foreign limited liability company or other organization and in
good standing under the laws of each jurisdiction where its ownership, lease or
operation of Property or the conduct of its business as now being conducted
requires such qualification, except to the extent that its failure to be so
qualified could not reasonably be expected to have a Material Adverse Effect.

 

Section 5.2             Power;
Authorization; Enforceable Obligations. Each of CSSW Parent, the
Borrower and the Steel Winds Companies has the power and authority and the
legal right to make, deliver and perform its obligations under the Loan
Documents to which it is a party and, in the case of the Borrower, to borrow
the Term Loans hereunder. Each of the Borrower’s Subsidiaries has the power and
authority and the legal right to make, deliver and perform its obligations
under the Project Documents to which it is a party. Each of CSSW Parent, the
Borrower and the Steel Winds Companies has taken all necessary organizational
action to authorize the execution, delivery and performance of the Loan
Documents to which it is a party and, in the case of the Borrower, to authorize
the borrowings of the Term Loans on the terms and conditions of this Agreement.
Each of the Borrower’s Subsidiaries has taken all necessary organizational
action to authorize the execution, delivery and performance of each of the
Project Documents to which it is a party. No consent or authorization of,
filing with, notice to or other act by or in respect of, any Governmental
Authority or any other Person is required in connection with the borrowings of
the Term Loans hereunder or with the execution, delivery, performance, validity
or enforceability of this Agreement, any of the Loan Documents or any of the
Project Documents except (i) consents, authorizations, filings and notices
described in Schedule 5.2, which consents, authorizations, filings and
notices have been obtained or made and are in full force and effect and (ii) the
filings referred to in Section 5.21 and in the Guarantee and
Security Agreement. Each Loan Document has been duly executed and delivered on
behalf of CSSW Parent, the Borrower and the Steel Winds Companies (to the
extent it is a party thereto). Each Project Document to which any Subsidiary of
the Borrower is party has been duly executed and delivered by such Subsidiary.
This Agreement constitutes, and each other Loan Document upon execution will
constitute, a legal, valid and binding obligation of each of CSSW Parent, the
Borrower and the Steel Winds Companies (to the extent it is a party thereto),
enforceable against each such Person in accordance with its terms, except as
enforceability may be limited by applicable bankruptcy, insolvency,
reorganization, moratorium or similar laws affecting the enforcement of
creditors’ rights generally and by general equitable principles (whether
enforcement is sought by proceedings in equity or at law). Each Project
Document to which any Subsidiary of the Borrower is party constitutes a legal,
valid and binding obligation of such Subsidiary, enforceable against such
Person in accordance with its terms, except as enforceability may be limited by
applicable bankruptcy, insolvency, reorganization, moratorium or similar laws
affecting the enforcement of creditors’ rights generally and by general
equitable principles (whether enforcement is sought by proceedings in equity or
at law).

 

77

 

Section 5.3             No Legal Bar. The
execution, delivery and performance of this Agreement and the other Loan
Documents, the borrowings hereunder and the use of the proceeds thereof will
not violate any Requirement of Law, conflict with or cause a breach of any
provision of the Organizational Documents of CSSW Parent, the Borrower or any
of the Borrower’s Subsidiaries, conflict with, cause a breach of, constitute a
default under, cause the acceleration of, create in any party the right to accelerate,
terminate, modify or cancel or require the authorization, consent, waiver or
approval under, any Contractual Obligation of CSSW Parent, the Borrower or any
of the Borrower’s Subsidiaries, except for any such events (other than
conflicts or breaches of Organizational Documents) that could not reasonably be
expected to have a Material Adverse Effect, and will not result in, or require,
the creation or imposition of any Lien on any of their respective Properties or
revenues pursuant to any Requirement of Law or any such Contractual Obligation
(other than the Liens created by the Security Documents).

 

Section 5.4             Principal Place
of Business; Location of Records. The principal place of
business of each of CSSW Parent, the Borrower and its Subsidiaries is at the
location set forth on Schedule 5.4 (as the same may be updated on the
Subsequent Closing Date and the Stetson II Funding Date), and no such Person
has had any other principal place of business during the last six months except
as set forth on Schedule 5.4. All of the books and records or true and complete
copies thereof relating to the accounts and contracts of CSSW Parent, the
Borrower and its Subsidiaries are and will be kept at such location.

 

Section 5.5             Subsidiaries. The Borrower
is the only Subsidiary of CSSW Parent. The Borrower does not have any
Subsidiaries except for those listed in Schedule 5.5 (as the same may be
updated on the Subsequent Closing Date, the Stetson II Effective Date or
supplemented pursuant to Section 10.13). All of the issued and
outstanding Equity Interests of the Borrower and each Subsidiary listed on Schedule
5.5 (as the same may be updated on the Subsequent Closing Date, the Stetson
II Effective Date or supplemented pursuant to Section 10.13) are
owned of record and beneficially as described in Schedule 5.5 (as the
same may be updated on the Subsequent Closing Date, the Stetson II Effective
Date or supplement pursuant to Section 10.13). Schedule 5.5
(as the same may be updated on the Subsequent Closing Date, the Stetson II
Effective Date or supplemented pursuant to Section 10.13) sets
forth the name and jurisdiction of organization of the Borrower and each
Subsidiary and the ownership of the Equity Interests of the Borrower and each
such Subsidiary. The Equity Interests of each of CSSW Parent, the Borrower and
the Borrower’s Subsidiaries have been duly authorized and validly issued and
are fully paid. There is no existing option, warrant, call, right, commitment
or other agreement to which CSSW Parent, the Borrower or any of the Borrower’s
Subsidiaries is a party requiring, and there is no membership interest or other
Equity Interests of CSSW Parent, the Borrower or any of the Borrower’s
Subsidiaries outstanding that upon conversion or exchange would require, the
issuance by CSSW Parent, the Borrower or any of the Borrower’s Subsidiaries of
any additional membership interests or other Equity Interests of CSSW Parent,
the Borrower or any of the Borrower’s Subsidiaries or other securities
convertible into, exchangeable for or evidencing the right to subscribe for or
purchase, a membership interest or other Equity Interests of CSSW Parent, the
Borrower or the Borrower’s Subsidiaries.

 

Section 5.6             Payment of
Taxes. Each of CSSW Parent, the Borrower and the Borrower’s Subsidiaries has
timely filed or caused to be timely filed with the appropriate taxing authority
all returns, statements, forms and reports for taxes and all other material tax
and

 

78

 

informational
returns (the “Returns”) that are required to be filed by it with respect
to its income or operations. Each of CSSW Parent, the Borrower and the Borrower’s
Subsidiaries has timely paid all taxes due pursuant to such Returns and all
other material taxes, fees or other charges imposed on or with respect to its
income or operations, except for such taxes, if any, subject to a Good Faith
Contest. No tax lien has been filed with respect to any such tax, fee or other
charges. Other than as set forth on Schedule 5.6, there is no action,
suit, proceeding, investigation, audit, or claim now pending or, to the
knowledge of CSSW Parent, the Borrower and any of the Borrower’s Subsidiaries,
threatened (either in writing or other official communication) by any authority
regarding any taxes relating to CSSW Parent, the Borrower or any of the
Borrower’s Subsidiaries. Neither CSSW Parent, the Borrower or any of the
Borrower’s Subsidiaries has entered into an agreement or waiver or been
requested to enter into an agreement or waiver extending any statute of
limitations relating to the payment or collection of taxes of CSSW Parent, the
Borrower or any of the Borrower’s Subsidiaries, or are aware of any
circumstances that would cause the taxable years or other taxable periods of
CSSW Parent, the Borrower and any of the Borrower’s Subsidiaries not to be
subject to the normally applicable statute of limitations.

 

Section 5.7             Financial
Statements and Condition.

 

(a)       The Historical Financial Statements have been
prepared in accordance with GAAP consistently applied throughout the periods
involved (except, in the case of unaudited financial statements, for normal
year-end adjustments and for the absence of footnotes) and present fairly and
accurately in all material respects the financial condition of the applicable
Person. The Pro Forma Financial Statements of the Borrower and its Consolidated
Subsidiaries have been properly completed on the basis of the assumptions set
forth therein and have been prepared based upon historical information that was
prepared in accordance with GAAP.

 

(b)       Since March 31, 2009, there has been no event,
development or occurrence that has had or could reasonably be expected to have
a Material Adverse Effect, except as set forth on Schedule 5.7.

 

Section 5.8             Accuracy of
Information, Etc. No statement or information contained in this
Agreement, any other Loan Document or any other document, certificate or
statement furnished by or on behalf of CSSW Parent or the Borrower to any Agent
or the Lenders or any of them for use in connection with the transactions
contemplated by this Agreement, taken as a whole, contained, as of the date
delivered, any untrue statement of a material fact or omitted to state a
material fact necessary to make the statements contained herein or therein not
misleading; provided that the foregoing representation is only made to
the Borrower’s knowledge with respect to certifications, representations or
statements made by parties other than CSSW Parent, the Borrower or any of their
respective Affiliates. The projections and pro
forma financial information contained in the materials referenced
above and the Base Case Projections Model being delivered on the applicable
Closing Date are based upon good faith estimates and assumptions believed by
management of CSSW Parent and the Borrower to be reasonable at the time made;
it being recognized by the Lenders that such projections and pro forma financial information as they
relate to future events are not to be viewed as factual and that actual results
during the period or periods covered by such financial information may differ
from the projected

 

79

 

results
set forth therein by a material amount. Notwithstanding any provision of this
Agreement or any other Loan Document to the contrary, any assumptions,
projections, calculations and/or expectations with respect to the receipt of
any ITC Grant by CSSW Parent, the Borrower or any of the Borrower’s
Subsidiaries are purely speculative and no Default or Event of Default under this
Agreement or any other Loan Document shall arise or result from any such
information being included in any Base Case Projections Model or otherwise
being provided to the Administrative Agent, the Collateral Agent and/or the
Lenders.  As of the Stetson II Effective
Date, to the Borrower’s knowledge, the Stetson II Construction Budget and
Annual Operating Plan (as defined in the Stetson Portfolio Financing Agreement)
for the Stetson II Project (a) are based on reasonable assumptions, (b) are
made in good faith and (c) are consistent with the provisions of the
Stetson II Project Documents.

 

Section 5.9             Construction of
the Stetson II Project. To the knowledge of the Borrower (a) all
work performed to date on the Stetson II Project has been performed in a good
and workmanlike manner in accordance with the Material Project Documents for
the Stetson II Project and all applicable Requirements of Law, in each case, in
all material respects and (b) the Stetson II Project is expected to
operate upon final completion in accordance with the Material Project Documents
and all applicable Requirements of Law, in each case, in all material respects.

 

Section 5.10           Title. Each of CSSW
Parent, the Borrower and the Borrower’s Subsidiaries has good and sufficient
title to, or valid leasehold interests in, all of its assets, real and
personal, subject in the case of Subsidiaries of the Borrower to no Liens,
except for Permitted Liens and in the case of CSSW Parent and the Borrower, no
Liens other than the Liens of the Security Documents. Each Project Company
owns, leases or has rights under easements, rights-of-way or similar
instruments in real property sufficient to enable it to conduct its operations,
including providing adequate ingress and egress to the Projects, except as could
not reasonably be expected to have a Material Adverse Effect. Insofar as the
Borrower has knowledge, no Subsidiary has been informed in writing by any owner(s) of
any real property that any Subsidiary is in material breach of its obligations
with respect to such Property, which breaches could reasonably be expected to
have a Material Adverse Effect.

 

Section 5.11           Litigation. There is no
litigation, at law or in equity, or any action, suit, proceeding, hearing or
investigation of, in or before any federal, state, provincial or municipal
board or other Governmental Authority or arbitrator pending that CSSW Parent,
the Borrower or any of the Borrower’s Subsidiaries is subject to or, to the
knowledge of CSSW Parent, the Borrower or any of the Borrower’s Subsidiaries,
threatened in writing against CSSW Parent, the Borrower or any of the Borrower’s
Subsidiaries, that individually or in the aggregate has had or could reasonably
be expected to have a Material Adverse Effect, and no Judgment has been issued
against CSSW Parent, the Borrower or any of its Subsidiaries that has had or
could reasonably be expected to have a Material Adverse Effect.

 

Section 5.12           Margin Stock.

 

(a)       The Borrower is not engaged principally, or as one
of its important activities, in the business of extending credit for the
purpose, whether immediate, incidental or ultimate, of buying or carrying
Margin Stock and no part of the proceeds of the Term Loans will be used to
purchase or carry any Margin Stock.

 

80

 

(b)       Neither the making of the Term Loans nor the use of
the proceeds thereof will violate or be inconsistent with the provisions of
Regulation U or Regulation X.

 

Section 5.13           Employee
Benefits. Except as set forth in Schedule 5.13, none
of CSSW Parent, the Borrower or any of the Borrower’s Subsidiaries has, or at
any point in the past has had, any employees, or maintained, sponsored,
administered or participated in any Plan or any Foreign Plan or Foreign Benefit
Arrangement. Except as could not reasonably be expected to have a Material
Adverse Effect: (a) no ERISA Event has occurred or could reasonably be
expected to occur, (b) each of CSSW Parent, the Borrower and any of the
Borrower’s Subsidiaries and each of their respective ERISA Affiliates is in
compliance with (x) the provisions of ERISA, and all other Requirements of
Law and published interpretations that are applicable to any Plan, Foreign
Benefit Arrangement or Foreign Plan, and (y) the terms of such plan or
arrangement, in each case, relating to any Plan, Foreign Plan and Foreign
Benefit Arrangement and (c) all employer and employee contributions
required by applicable Requirement of Law or by the terms of any Plan, Foreign
Benefit Arrangement or Foreign Plan have been made, or, if applicable, accrued
in accordance with normal accounting practices.

 

Section 5.14           Environmental
Matters. Except as could not reasonably be expected to, individually or in the
aggregate, have a Material Adverse Effect:

 

(a)       Neither CSSW Parent, the Borrower nor any of the
Borrower’s Subsidiaries has received or has knowledge of any notice of violation,
alleged violation, non-compliance, liability or potential liability regarding
compliance with Environmental Laws with regard to any of the Projects or the business
operated by such Person (the “Business”), nor does CSSW Parent, the
Borrower or the Borrower’s Subsidiaries have knowledge or reason to believe
that any such notice will be received or is being threatened;

 

(b)       Neither CSSW Parent, Borrower nor any of the
Borrower’s Subsidiaries nor any of their respective Properties or operations
are subject to any outstanding order, consent decree or settlement agreement
with any Person relating to any Environmental Law or any Environmental Claim;

 

(c)       CSSW Parent, the Borrower and its Subsidiaries: (i) are
in compliance with, and have been in compliance with, all applicable
Environmental Laws, (ii) holds, is in compliance with, and have been in
compliance with, all Permits (each of which is in full force and effect)
required by or issued under such Environmental Law for its Business and any
intended operations and (iii) reasonably believes that any modifications
to such Permits, or any additional Permits, that may be required of them will
be timely obtained;

 

(d)       There are no Hazardous Substances present at, on,
under, in, or about any real property currently or formerly owned, leased or
operated by CSSW Parent, the Borrower or any of the Borrower’s Subsidiaries, or
at any other location (including any location to which Hazardous Substances
have been sent for treatment, storage or disposal), which could reasonably be
expected to (i) give rise to an Environmental Claim against CSSW Parent,
the Borrower or any of the Borrower’s Subsidiaries, (ii) interfere with
the Business, or (iii) impair the fair saleable value of any of the
Collateral;

 

81

 

(e)       There are no pending or, to the knowledge of CSSW
Parent, the Borrower or any of the Borrower’s Subsidiaries, threatened Environmental
Claims to which the Borrower or any of the Borrower’s Subsidiaries, or to the
knowledge of CSSW Parent, the Borrower or any of the Borrower’s Subsidiaries,
will be named; and

 

(f)        Neither CSSW Parent, the Borrower or any of the
Borrower’s Subsidiaries has assumed or retained, by contract or, to the
knowledge of CSSW Parent, the Borrower or any of the Borrower’s Subsidiaries,
by operation of law, any liabilities, fixed or contingent, known or unknown,
under any Environmental Law or with respect to any Hazardous Substances.

 

Section 5.15           Investment
Company Act of 1940. None of CSSW Parent, the Borrower or any of the
Borrower’s Subsidiaries is an “investment company,” or an “affiliated person”
of, or “promoter” or “principal underwriter” for, an “investment company,” as
such terms are defined in the Investment Company Act of 1940, as amended.

 

Section 5.16           Solvency. Immediately
upon giving effect to (a) the Term Loans being made on the date this
representation and warranty is being made, (b) the disbursement and
application of the proceeds of such Term Loans and (c) the payment and
accrual of all transaction costs in connection with the foregoing, the Borrower
is and will be Solvent on the applicable Closing Date.

 

Section 5.17           Compliance with
Requirement of Laws and Permits. Each of CSSW Parent, the
Borrower and each of its Subsidiaries is in compliance with all Requirements of
Law and there are no current violations of any Requirements of Law affecting
any of the Projects, in either case that could reasonably be expected to have a
Material Adverse Effect, and neither CSSW Parent, the Borrower nor any of its
Subsidiaries, to the knowledge of CSSW Parent or the Borrower, has received any
notice of any actual or claimed violations of any Requirements of Law or any
Governmental Approval affecting or relating to the development, use, occupancy
or condition of any Project or the construction and operation of the Stetson II
Project, in each case, which violation could be reasonably expected to have a
Material Adverse Effect.

 

Section 5.18           Labor Matters. Except as,
individually or in the aggregate, could not reasonably be expected to have a
Material Adverse Effect, (a) there are no strikes, slowdowns, work
stoppages, lockouts or other labor disputes against CSSW Parent, the Borrower
or any of its Subsidiaries pending or, to the knowledge of CSSW Parent, the
Borrower or any of its Subsidiaries, threatened (either in writing or otherwise
in an overt manner), (b) hours worked by and payment made to employees of
CSSW Parent, the Borrower and each of the Borrower’s Subsidiaries have not been
in violation of the Fair Labor Standards Act or any other applicable
Requirement of Law dealing with such matters and (c) all payments due from
CSSW Parent, the Borrower or any of the Borrower’s Subsidiaries on account of
employee health and welfare benefits have been paid or accrued as a liability
on the books of the relevant entity.

 

Section 5.19           Permits,
Licenses and Approvals. Each of CSSW Parent, the Borrower and the
Borrower’s Subsidiaries has taken all necessary action to obtain and maintain
all Governmental Approvals that are necessary to conduct its business, except
to the extent that any failure to do so could not be reasonably expected to
have a Material Adverse Effect. Except as

 

82

 

set forth on Schedule
5.19, each of the Borrower’s Subsidiaries has in full force and effect all
necessary Governmental Approvals required to conduct its operations and for the
construction of the Stetson II Project, other than Governmental Approvals which
are non-discretionary ministerial permits obtainable in the ordinary course of
business or whose absence could not reasonably be expected to have a Material
Adverse Effect.  Each Governmental Approval
and Permit listed in Schedule 5.19 which has not yet been obtained is of
a type that is reasonably expected to be granted upon application and each such
Governmental Approval or Permit is timely obtainable without material cost,
difficulty or delay and will be obtained prior to becoming a necessary
Governmental Approval.

 

Section 5.20           Security Documents. The Security
Documents are effective to create in favor of the Collateral Agent, for the
benefit of the Secured Parties, a legal, valid and enforceable security
interest in the Collateral described therein and proceeds thereof. In the case
of the pledged shares described in the Security Documents, when certificates
representing such pledged shares that are represented by certificates (together
with undated transfer powers), if any, are delivered to the Collateral Agent,
and in the case of the other Collateral described in the Security Documents,
when financing statements and other filings specified on Schedule 5.20
in appropriate form are filed in the offices specified on Schedule 5.20,
the Security Documents shall constitute a fully perfected lien on, and security
interest in, all rights, titles and interests of CSSW Parent, the Borrower and
the Steel Winds Companies in such Collateral and the proceeds thereof, as
security for the Obligations, in each case prior and superior in right to any
other Person (except for, in the case of Liens on the Steel Winds Companies,
Permitted Liens).

 

Section 5.21           Regulatory Matters.

 

(a)       None of CSSW Parent, the
Borrower or the Borrower’s Subsidiaries (other than the Project Companies) is
subject to regulation under the Federal Power Act (“FPA”) or any other
Federal energy regulatory law as a “public utility” (or similar term) except
each of CSSW Parent, the Borrower and each of the Borrower’s Subsidiaries
(other than the Project Companies) are subject to regulation under Section 203
of the FPA as a “holding company”. Each of CSSW Parent, the Borrower and the
Borrower’s Subsidiaries is entitled to an exemption from, or not subject to,
regulation under the Public Utility Holding Company Act of 2005, as amended,
and the Federal Energy Regulatory Commission’s implementing regulations (“PUHCA
2005”). Each Project Company has been determined by the Federal Energy
Regulatory Commission (“FERC”) to be an Exempt Wholesale Generator or,
in the case of the Steel Winds Project Company, is a qualifying facility under
the Public Utility Regulatory Policies Act of 1978, as amended (a “QF”).

 

(b)       Except as set forth on Schedule
5.21(b), each of the Project Companies (i) is subject to regulation
under the FPA as a “public utility,” and (ii) is authorized by an order
issued by FERC to make sales of energy, capacity and ancillary services at
market-based rates pursuant to Section 205 of the FPA or, in the case of
the Steel Winds Project Company, is exempt from Section 205 and Section 206
of the FPA pursuant to 18 C.F.R. § 292.601(c)(1), and each currently has, both
market-based rate authority and blanket authorization to issue securities and
assume liabilities pursuant to Section 204 of the FPA, as well as other
waivers of regulations and blanket authorizations as are customarily granted by
FERC to entities with market-based rate authority, or, in the case of the Steel
Winds Project Company, is a QF

 

83

 

exempt
from Section 204 and other sections of the FPA pursuant to 18 C.F.R. §
292.601(c), and such orders and other waivers and blanket authorizations are in
full force and effect, are final and all applicable periods for the filing of
any request for rehearing or application for judicial review of any such order
or such waivers and authorizations expired without any such request or
application being filed. Except as set forth on Schedule 5.21(b), none
of CSSW Parent, the Borrower or the Borrower’s Subsidiaries is subject to
regulation as an electric utility or electric company (or similar term) or a
public utility or public utility holding company (or similar term) under any
applicable state Requirement of Law or otherwise subject to other state
Requirements of Law or regulations respecting the rates charged by, or the
financial or organizational regulation of, electric utilities, public utilities
or their affiliates. None of the market-based rate authorizations or other
waivers and blanket authorizations granted to any Project Company is the
subject of any pending or, to the knowledge of CSSW Parent, the Borrower or any
of the Borrower’s Subsidiaries, threatened judicial or administrative
proceeding.

 

(c)       None of the Secured Parties
nor any of their respective affiliates (as defined in PUHCA 2005) will, solely
as a result of the execution and delivery of the Loan Documents and the
performance of their obligations thereunder, the ownership and operation of the
Projects by CSSW Parent, the Borrower and its Subsidiaries and the sale or
transmission of energy therefrom, be subject to regulation under PUHCA 2005,
the FPA or as an electric utility or electric company (or similar term) or a
public utility or public utility holding company (or similar term) under any
applicable state Requirement of Law or otherwise subject to other state
Requirements of Law respecting the rates charged by, or the financial or
organizational regulation of, electric utilities, public utilities or their
affiliates.

 

(d)       No consent, approval,
authorization or other order of, or make a filing with, FERC, the New York
State Public Service Commission or any other state or federal Governmental
Authority is required to be obtained to execute, deliver and perform the Loan
Documents.

 

Section 5.22           Events of Loss or Eminent
Domain. Neither the business nor the Properties (including the Projects) of
CSSW Parent, the Borrower or any of its Subsidiaries have suffered any Event of
Loss or Event of Eminent Domain.

 

Section 5.23           Material Project Documents. The Borrower
has delivered to the Administrative Agent and the Initial Lenders complete and
correct copies of the Material Project Documents relating to (a) with
respect to the Initial Closing Date, the Cohocton Project and the Stetson I
Project, (b) with respect to the Subsequent Closing Date, the Steel Winds
Project and (c) with respect to the Stetson II Effective Date, the Stetson
II Project, in each case including any amendments, supplements or modifications
with respect to any of the foregoing as of the applicable Closing Date.

 

Section 5.24           No Default Under Material
Project Documents. None of CSSW Parent, the Borrower or any of the
Borrower’s Subsidiaries is in default in the performance, observance or
fulfillment of any obligations, covenants or conditions contained in any of the
Material Project Documents and, to CSSW Parent’s, the Borrower’s and the
Borrower’s Subsidiaries’ knowledge, no Project Participant is in default in the
performance observance or fulfillment of any

 

84

 

obligations, covenants or
conditions contained in such Material Project Documents, in each case to the
extent that such default could reasonably be expected to have a Material
Adverse Effect.

 

Section 5.25           No Default. No Default or
Event of Default has occurred and is continuing.

 

Section 5.26           Special Purpose Entity
Status. CSSW Parent has not engaged in any business unrelated to the
acquisition or ownership of, directly, the Equity Interests in the Borrower.
The Borrower has not engaged in any business unrelated to the acquisition and
ownership of, directly, the Equity Interests in (i) prior to the Stetson
Reorganization, (A) the Stetson Holding Company, (B) New York Wind III
and (B) the New Cohocton Holding Company and (ii) on and after the
Stetson Reorganization, (A) the Stetson Intermediate Holding Company, (B) New
York Wind III and (B) the New Cohocton Holding Company. New York Wind III
has not engaged in any business unrelated to the acquisition and ownership of,
directly, the Equity Interests in the Steel Winds Holding Company. The Steel
Winds Holding Company has not engaged in any business unrelated to the
acquisition and ownership of, directly, the Equity Interests in the Steel Winds
Project Company, the Cohocton Holding Company and Prattsburgh. The Stetson
Intermediate Holding Company has not engaged in any business unrelated to the
acquisition and ownership of, directly, the Equity Interests in the Stetson
Holding Company. The Stetson Holding Company has not engaged in any business
unrelated to the acquisition and ownership of, directly, the Equity Interests
in the Stetson I Project Company and the Stetson II Project Company. The New
Cohocton Holding Company has not engaged in any business unrelated to the
acquisition and ownership of, directly, the Equity Interests in the Cohocton
Holding Company. The Cohocton Holding Company has not engaged in any business
unrelated to the acquisition and ownership of, directly, the Equity Interests
in the Cohocton Project Companies. None of the Borrower’s other Subsidiaries
have engaged in any business other than the development, construction,
ownership, operation and maintenance of the Projects.

 

ARTICLE 6

 

[RESERVED]

 

ARTICLE 7

 

REPORTS AND INFORMATION

 

Section 7.1             Quarterly Financial
Statements and Reports. The Borrower shall furnish to the
Administrative Agent (for delivery to each Lender) as soon as available, and in
any event within sixty (60) days after the end of each of the first three
quarters of each Fiscal Year of the Borrower, consolidated balance sheets of
the Borrower and its Consolidated Subsidiaries as of the end of such quarter
and consolidated statements of income, equity and cash flows of the Borrower
and its Consolidated Subsidiaries for such quarter and for the period
commencing at the end of the previous Fiscal Year and ending with the end of
such quarter, setting forth in each case in comparative form the corresponding
figures for the corresponding period of the preceding Fiscal Year, all in
reasonable detail.

 

85

 

Section 7.2             Annual Financial Statements. The Borrower
shall furnish to the Administrative Agent (for delivery to each Lender) as soon
as available, and in any event within one hundred twenty (120) days after the
end of each Fiscal Year of the Borrower, consolidated balance sheets of the
Borrower and its Consolidated Subsidiaries as of the end of such Fiscal Year
and consolidated statements of income, equity and cash flows of the Borrower
and its Consolidated Subsidiaries for such Fiscal Year, setting forth in
comparative form the corresponding figures for the previous Fiscal Year, and
accompanied by an unqualified opinion thereon from a firm of independent
certified public accountants of recognized national standing (which firm shall
be the auditor of the Parent or approved by the Majority Lenders) which opinion
shall state that such financial statements fairly present in all material
respects the financial condition and results of operations of the Borrower and
its Consolidated Subsidiaries as at the end of, and for, such Fiscal Year in
accordance with GAAP.

 

Section 7.3             Accountant’s Letters. The Borrower
shall furnish to the Administrative Agent (for delivery to each Lender) each
audit response letter, accountant’s management letter and other written report,
as applicable, submitted to the Borrower or one of its Subsidiaries by its
independent public accountants in connection with an annual or interim audit of
the books of the Borrower or any of its Subsidiaries promptly following the
Borrower’s or such Subsidiary’s receipt thereof.

 

Section 7.4             Officer’s Certificates. The quarterly
and annual financial statements delivered pursuant to this Article 7
shall be accompanied by a Compliance Certificate signed by a Financial Officer
of the Borrower, which certificate shall (i) set forth in reasonable
detail the information and calculations necessary for determining compliance
with Article 8 and other provisions of this Agreement referred to
therein as of the last day of the applicable Fiscal Quarter or Fiscal Year of
the Borrower, as the case may be, (ii) certifying that such Financial
Officer has made or caused to be made a review of the transactions and
financial condition of the applicable Person during the relevant fiscal period
and that such financial statements fairly present in all material respects the
financial condition and results of operations of the Borrower and its
Consolidated Subsidiaries in accordance with GAAP, consistently applied, as at
the end of, and for, such periods (subject, in the case of unaudited financial
statements, to normal year-end audit adjustments and absence of footnotes) and (iii) certifying
that no Default or Event of Default exists or is continuing or, if any such
event or condition existed or exists, the nature thereof and the corrective
actions that the Borrower or the applicable Subsidiary has taken or proposes to
take with respect thereto.

 

Section 7.5             Annual Budget. As soon as
available, but in any event not less than forty-five (45) days before the end
of each Fiscal Year, the Borrower shall furnish to the Administrative Agent
(for delivery to each Lender) a copy of its proposed draft annual budget with
respect to each Project for the following Fiscal Year, the form of which shall
be in detail reasonably acceptable to the Administrative Agent (for delivery to
each Lender); provided that neither the Administrative Agent nor any
Lender shall have any approval rights with respect to any such budget. Before
the end of the Fiscal Year, the Borrower shall deliver to the Administrative
Agent a final annual budget with respect to each Project for the following
Fiscal Year, promptly after adopting the same, or making any material amendment
or modification of such annual budget.

 

86

 

Section 7.6             Notice of Defaults. As soon as
reasonably practicable, and in any event within three (3) Business Days
after any Authorized Officer of CSSW Parent, the Borrower or any Subsidiary
obtains knowledge thereof (i) any Default or Event of Default or (ii) any
default with respect to any provision of any of the Project Documents that
could reasonably be expected to have a Material Adverse Effect, a written
notice of such event describing the same in detail reasonably satisfactory to
the Administrative Agent (for delivery to each Lender), together with such
notice, a description of what action that CSSW Parent, the Borrower or such
Subsidiary has taken and/or proposes to take with respect thereto.

 

Section 7.7             Reports to Other Creditors. Promptly
after delivering the same to the Project Lenders or any other holders of debt
securities or other Indebtedness, the Borrower shall furnish to the
Administrative Agent (for delivery to each Lender), with respect to each
Subsidiary, copies of any written monthly operating reports, monthly or
periodic construction progress reports, engineering reports, insurance reports,
environmental reports and compliance certificates, furnished to such Project
Lenders or holders of the Subsidiaries of the Borrower pursuant to the terms of
any Contractual Obligation and not otherwise required to be furnished to the
Administrative Agent pursuant to any other provision of this Agreement,
including any written operating reports, construction reports and other written
operating, construction and financial information furnished to such Persons
(but not, in any case, any ordinary course communications or ministerial
notices). The Borrower shall also deliver, promptly after execution and
delivery thereof, copies of all Material Additional Project Documents, any
Replacement IPH Documents, any other replacement of a Material Project Document
and any documentation, agreements, instruments and letters governing any
Permitted Indebtedness and any amendments, supplements, waivers, or consents to
any thereto.

 

Section 7.8             Miscellaneous. The Borrower
shall provide the Administrative Agent (for delivery to each Lender) with such
other information as the Administrative Agent or the Lenders through the
Administrative Agent may from time to time reasonably request respecting the
business, Properties, financial condition or operations of CSSW Parent, the
Borrower, the Borrower’s Subsidiaries, each of the Projects and the Project
Documents.

 

Section 7.9             Other Notices.

 

(a)       The Borrower shall promptly,
but in any event no later than five (5) Business Days after any Authorized
Officer of CSSW Parent, the Borrower or any of its Subsidiaries obtains
knowledge thereof or no later than five (5) Business Days after CSSW
Parent, the Borrower or any Subsidiary of the Borrower delivers or receives any
notice, give to the Administrative Agent (for delivery to the Lenders) notice
of:

 

(i)            any litigation or
proceeding affecting CSSW Parent, the Borrower or one of the Borrower’s
Subsidiaries or a Project, which could reasonably be expected to have a
Material Adverse Effect;

 

(ii)           any event of
default or event of termination or acceleration under any Permitted
Indebtedness (including copies of any notices of default delivered by the
holders of such Indebtedness to CSSW Parent, the Borrower or any of its
Subsidiaries

 

87

 

and
copies of any notices of default delivered by CSSW Parent, the Borrower and its
Subsidiaries under Major Project Indebtedness);

 

(iii)          (A) any
fact, circumstance, condition, occurrence at, on, under or from any of the
Projects (including any instance in which any bird, bat or other mammal, animal
or plant protected under any Requirement of Law is killed, injured or otherwise
affected) that results in a violation of any Environmental Law applicable to
any of the Projects in any respect or that has resulted or may result in
personal injury or Property damage or an Environmental Claim or otherwise or (B) any
pending or threatened (either in writing or otherwise in an overt manner)
Environmental Claim against CSSW Parent, the Borrower or any of the Borrower’s
Subsidiaries, that, in either of cases (A) or (B), could reasonably be
expected to have a Material Adverse Effect;

 

(iv)          any Event of
Loss to any Property of CSSW Parent, the Borrower or any Subsidiary of the
Borrower, whether or not insured, through fire, theft, other hazard or Event of
Loss, in excess of $5,000,000 for any single event or $20,000,000 in the
aggregate in any calendar year;

 

(v)           any receipt by
the Borrower or one of its Subsidiaries of notice that (A) any event
constituting force majeure or any claim by any Project
Participant party thereto alleging that a force majeure event
under any of the Material Project Documents has occurred or (B) any event
constituting force majeure or any claim by any Project
Participant party thereto alleging that a force majeure which
affects any obligations under any of the other Project Documents has occurred,
in either of cases (A) or (B), that has had or could reasonably be
expected to have a Material Adverse Effect;

 

(vi)          the
termination, rescission or discharge (other than in accordance with its terms)
of any material provision of any Material Project Document;

 

(vii)         the occurrence
of any ERISA Event, or the failure with respect to any Foreign Plan or Foreign
Benefit Arrangement to comply with Requirements of Law, or the terms of such
plan or arrangement, that, alone or together with any other ERISA Events or
such failures that have occurred, could reasonably be expected to have a
Material Adverse Effect;

 

(viii)        any other
event, circumstance, development or condition that could reasonably be expected
to have a Material Adverse Effect; and

 

(ix)           notice of the
exercise of the cure provided for in Section 10.1(n)  of the Stetson
Portfolio Financing Agreement, together with evidence of such exercise
reasonably satisfactory to the Initial Lenders.

 

(b)       A copy of each material
amendment, waiver, consent, notice, demand or other written communication in
respect of any rights or obligations of CSSW Parent, the Borrower or any
Subsidiary of the Borrower given or received by CSSW Parent, the Borrower or
any Subsidiary of the Borrower (i) pursuant to or relating to any of the
Material Project Documents (including all written requests for amendments or
waivers) or pursuant to or relating to any necessary Governmental Approval, or (ii) to
or from any Governmental

 

88

 

Authority
relating in any way to any of the Projects, in each case in clause (i) or (ii) above,
which notice, demand or correspondence is received or initiated other than in
the Ordinary Course of Business and could reasonably be expected to result in a
Material Adverse Effect; including, for avoidance of doubt, (A) any pending
or threatened (in writing or otherwise in an overt manner) application or
proceeding by or before any Governmental Authority for the purpose of revoking,
terminating, withdrawing, suspending, modifying or withholding any materially
necessary Governmental Approval, (B) any written request by a Project
Participant for an arbitration proceeding under any Material Project Document,
and (C) any Taking.

 

ARTICLE 8

 

FINANCIAL COVENANT

 

Until
all of the Obligations (other than inchoate Obligations) shall have been paid
in full and the Lenders shall have no commitments hereunder, the Borrower
hereby covenants and agrees that, as of each date set forth below, the
aggregate outstanding principal amount of the Term Loans, including any PIK
Interest added to the principal amount of outstanding Term Loans, plus the
aggregate outstanding principal amount of all Major Project Indebtedness of all
Subsidiaries of the Borrower shall not exceed the maximum amount set forth
below opposite the corresponding date on which such amount shall be measured:

 

	
   

  	
  as of December 31, 2012

  	
   

  	
  $

  	
  293,300,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  as of December 31, 2014

  	
   

  	
  $

  	
  270,700,000

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  as of December 31, 2016

  	
   

  	
  $

  	
  248,200,000

  	
   

  	
   

  	
   

  

 

; provided that each
of such maximum amounts on each of the corresponding dates shall be reduced in
an amount equal to the sum of the amount by which the Cohocton Major
Indebtedness Prepayment Trigger is reduced pursuant to clause 1(a)(ii) or
1(b)(ii), as applicable, of the definition of “Cohocton Permitted Indebtedness”
and the amount by which the Stetson Major Indebtedness Prepayment Trigger is
reduced pursuant to clause 1(a)(ii) or (1)(b)(ii), as applicable, of the
definition of “Stetson Permitted Indebtedness”.

 

ARTICLE 9

 

AFFIRMATIVE COVENANTS

 

On
and after the date hereof, until all of the Obligations (other than inchoate
Obligations) shall have been paid in full and the Lenders shall have no
commitments hereunder, the CSSW Parent and the Borrower each covenants as
follows:

 

Section 9.1             Existence and Business. Each of CSSW
Parent and the Borrower shall, and shall cause each of the Borrower’s
Subsidiaries to (a)(i) preserve, renew and keep in full force and effect
its organizational existence and good standing, and (ii) maintain all
rights, privileges and franchises necessary for the maintenance of its
existence and the normal conduct of its business, (b) comply in all
material respects with all Organizational Documents applicable

 

89

 

to it and (c) obtain,
renew, preserve and maintain in full force and effect and comply with all its
necessary licenses and Governmental Approvals, except, with respect to clause (c) above,
to the extent that failure to do so or to comply therewith, as applicable,
would not reasonably be expected to have a Material Adverse Effect.

 

Section 9.2             Name and Location. Each of CSSW
Parent and the Borrower shall, and shall cause each of the Borrower’s
Subsidiaries to, maintain its name, its jurisdiction of organization, its “location”
(as defined in Section 9-307 of the UCC), its organizational type and its
Federal Employee Identification Number unless the Borrower shall have given the
Collateral Agent 30 days’ prior written notice prior to any such change (or 10
days’ prior written notice of a change in name) and all actions reasonably
requested by the Collateral Agent to preserve and perfect the Liens of the
Security Documents with respect to the Collateral shall have been taken.

 

Section 9.3             Compliance with Laws. Each of CSSW
Parent and the Borrower shall, and shall cause each of the Borrower’s
Subsidiaries and shall take all commercially reasonable steps to cause each of
its tenants, contractors and invitees to, conduct its business in compliance
with all applicable Requirements of Law, including all necessary Governmental
Approvals and Environmental Laws, except where any failure to comply could not
individually or in the aggregate reasonably be expected to have a Material
Adverse Effect, and except that CSSW Parent, the Borrower or the applicable
Subsidiary may, at its expense, contest by appropriate proceedings conducted in
good faith the validity or application of any such Requirement of Law or
Governmental Approval, so long as (a) none of the Secured Parties, CSSW
Parent, the Borrower or the Subsidiaries of the Borrower would be subject to
any criminal or other liability for failure to comply therewith and (b) such
contest does not involve any material risk of the sale, forfeiture or loss of
any of the Collateral or the Projects.

 

Section 9.4             Taxes and Other Obligations. Each of CSSW
Parent and the Borrower shall, and shall cause each of the Borrower’s
Subsidiaries to duly pay and discharge, or cause to be paid and discharged,
before the same shall become overdue, (a) all material taxes, assessments
and other governmental charges, imposed upon it and its Properties, sales and
activities, or upon the income or profits therefrom, as well as the claims for
labor, materials, or supplies which, if unpaid, might by Requirement of Law
result in a Lien upon any of its properties and (b) all material utility
and other governmental charges incurred in the ownership, operation,
maintenance, use, occupancy and upkeep of its business; provided, however,
that each of CSSW Parent, the Borrower and any of the Subsidiaries of the
Borrower may engage in a Good Faith Contest with respect to any such tax,
assessment, charge, levy, claim or obligation and, in such event, may permit
the tax, assessment, charge, levy, claim or obligation to remain unpaid during
any period, including appeals, and (c) in conformance with customary trade
terms (but not later than one hundred twenty (120) days from the due date in
the case of trade debt), all lease obligations, trade debt and all other
Indebtedness incident to its operations. The Borrower and its Subsidiaries
shall cause all material applicable Returns to be filed.

 

Section 9.5             Maintenance of Properties. Each of CSSW
Parent and the Borrower shall, and shall cause each Subsidiary of the Borrower
to, maintain, keep and preserve all of its Properties, including the Projects,
in good repair and working order in all material respects, ordinary wear and
tear excepted. Each of CSSW Parent and the Borrower shall, and shall cause

 

90

 

each of the Borrower’s
Subsidiaries to, operate and maintain the Projects in accordance with Prudent
Utility Practice.

 

Section 9.6             Insurance. Each of CSSW
Parent and the Borrower shall, and shall cause each of its Subsidiaries to,
maintain with financially sound and reputable insurers insurance against such
hazards and risks and liability to persons and property to the extent and in a
manner required by the terms of Major Project Indebtedness Documents or, if no
such requirements exist, as is customary for companies in similar businesses
similarly situated and in any event in accordance with Prudent Industry
Practice. On reasonable request of the Administrative Agent from time to time,
the Borrower will render to the Administrative Agent a statement in reasonable
detail as to all insurance coverage required by this Section 9.6.

 

Section 9.7             Records and Accounts. Each of CSSW
Parent and the Borrower shall, and shall cause each of the Borrower’s
Subsidiaries to (a) maintain reasonably adequate management information
and cost control systems and (b) maintain a system of accounting in
accordance with GAAP. In the event that any such Person replaces its existing
auditors for any reason, such Person shall appoint and maintain as auditors
another firm of independent public accountants, which firm shall be nationally
recognized.

 

Section 9.8             Inspection. At any
reasonable time and from time to time upon reasonable notice from the
Administrative Agent or the Lenders, as applicable, each of CSSW Parent and the
Borrower shall, and shall cause each of its Subsidiaries to, permit the
Administrative Agent and the Initial Lenders on behalf of the other Lenders to
examine and make copies of and abstracts from the records and books of account
of, and visit the Properties (including the Projects) of, such Person and to
discuss the affairs, finances and accounts of such Person with any of their (or
the Operators’) officers or directors and with their independent accountants; provided
that so long as no Event of Default is then continuing, the Borrower shall not
be required to reimburse the Administrative Agent and the Initial Lenders for
more than one visit in any twelve consecutive month period. The Administrative
Agent, Initial Lenders and the other Lenders shall be bound by the
confidentiality provisions set forth in Section 13.20 hereof with
respect to information obtained in connection with any inspection conducted
pursuant to this Section 9.8.

 

Section 9.9             [Reserved].

 

Section 9.10           Separateness Covenants. Each of
CSSW Parent and Borrower shall comply with the separateness covenants set forth
in its respective Organizational Documents.

 

Section 9.11           Security Documents. Each of CSSW
Parent and the Borrower shall take, and shall cause the Steel Winds Companies
to take, all actions necessary or reasonably requested by the Administrative
Agent or Collateral Agent to maintain each Security Document in full force and
effect and enforceable in accordance with its terms and to maintain and
preserve the Liens created by the Security Documents and the perfection and
priority thereof, including (i) making filings and recordings, (ii) making
payments of fees and other charges, (iii) issuing and, if necessary,
filing or recording supplemental documentation, including continuation
statements, (iv) discharging all claims or other Liens adversely affecting
the rights of any Secured Party in any Collateral, (v) publishing or
otherwise delivering notice to third parties and (vi) taking all

 

91

 

other actions either necessary
or otherwise reasonably requested by the Administrative Agent or Collateral
Agent to ensure that all Collateral (including any after-acquired property of
CSSW Parent, the Borrower and the Steel Winds Companies intended to be covered
by any Security Document) is subject to a valid and enforceable perfected
first-priority (except for, in the case of the Liens on the Steel Winds
Project, Permitted Liens) Lien in favor of the Collateral Agent for the benefit
of the Secured Parties. In furtherance of the foregoing, (A) each of CSSW
Parent and the Borrower shall, and shall cause each of the Steel Winds
Companies to, ensure that all Property acquired by it intended to be covered by
a Security Document shall become subject to the Lien of the Security Documents
having the priority contemplated thereby promptly upon the acquisition thereof
and (B) each of CSSW Parent and the Borrower shall not open or maintain
any bank or securities account without first taking all such actions as may be
necessary or otherwise reasonably requested by the Administrative Agent or the
Collateral Agent to ensure that such bank account is subject to a valid and
enforceable perfected first priority Lien in favor of the Collateral Agent for
the benefit of the Secured Parties and the “control” (as defined in Section 9-104,
9-105, 9-106 or 9-107 of the UCC) of the Collateral Agent.

 

Section 9.12           Project Documents. Without
limiting the amendment, modification, waiver and consent rights of CSSW Parent,
the Borrower and the Borrower’s Subsidiaries permitted by Section 10.11,
each of CSSW Parent and the Borrower shall, and shall cause each of the
Borrower’s Subsidiaries to (i) preserve, protect and defend its rights
under each and every Project Document, including (where necessary or
appropriate) prosecution of suits to enforce any material right of the Borrower
(or Subsidiary, as applicable) thereunder and enforcement of any claims with
respect thereto and (ii) perform and observe all of its covenants and
agreements contained in the Project Documents, except in the case of clause (i) and
(ii) above, to the extent that failure to do so would not reasonably be
expected to have a Material Adverse Effect.

 

Section 9.13           [Reserved.]

 

Section 9.14           Hedging Requirements.

 

(a)       Subject to the provisions of
clause (c) and Sections 10.11 and 11.1(j), each of CSSW
Parent and the Borrower shall, and shall cause each of its Subsidiaries to,
maintain in full force and effect the Initial Power Hedging Documents and/or,
if applicable, any Replacement IPH Document entered in to in accordance with Section 11.1(j);
provided that, in the event that any Replacement IPH Document has a term
that is less than the remaining term of the Initial Power Hedging Documents or
the Replacement IPH Document that such agreement has replaced as permitted by Section 11.1(j) (such
shortfall in term, the “Non-hedged Term”), then on or prior to the
expiration or termination of such Replacement IPH Document, each of CSSW Parent
and the Borrower shall, and shall cause each of its Subsidiaries to, enter into
one or more additional Replacement IPH Documents until expiration of the
Non-Hedged Term that in the aggregate will cover the Non-hedged Term for, in
each case, the longest term it can obtain on commercially reasonable terms
using up to the amount of collateral support that was required to be provided
under the Initial Power Hedging Documents that was originally replaced with
such Replacement IPH Documents.

 

(b)       Within sixty (60) days after
the incurrence of any Permitted Project Indebtedness (including the Stetson
Portfolio Financing), each of CSSW Parent and the

 

92

 

Borrower
shall, and shall cause one of its Subsidiaries to, enter into Hedging
Agreements as may be necessary to ensure that at least fifty percent (50%) of
the aggregate principal amount of all Permitted Project Indebtedness of the
Borrower and its Subsidiaries either (i) is subject to interest rate
protection or (ii) bears a fixed rate of interest.

 

(c)       Within ninety (90) days
after the Stetson II COD, each of CSSW Parent and the Borrower shall, and shall
cause one of its Subsidiaries, to enter into Commodity Hedge/Power Sales
Agreement(s) with respect to the Stetson II Project that cover(s) in
the aggregate not less than twenty (20) GWh per year for a minimum term of five
(5) years.

 

Section 9.15           Clipper Bankruptcy. Upon the
occurrence of a bankruptcy, insolvency or similar event under Debtor Relief
Laws with respect to Clipper, each of CSSW Parent and the Borrower shall, and
shall cause each of the Borrower’s Subsidiaries to, diligently pursue its
respective rights to obtain on behalf of CSSW Parent, the Borrower and the
Borrower’s Subsidiaries ***** related to Clipper turbines owned by the Project
Companies.

 

Section 9.16           Further Assurances. Each of CSSW
Parent and the Borrower shall, and shall cause each Subsidiary of the Borrower
to, execute and deliver to the Agents all such documents and instruments and do
all such other acts and things as may be necessary or reasonably required by
the Agents to exercise and enforce their rights under the Loan Documents and to
record and file and re-record and re-file all such documents and instruments,
at such time or times, in such manner and at such place or places, all as may
be necessary or reasonably required by the Agents to preserve and protect the
position of the Agents under the Loan Documents and the validity,
enforceability, perfection and priority of the Liens on the Collateral.

 

Section 9.17           Mandatory Prepayment of
Reserves.

 

(a)       If as of any Interest
Payment Date there exists Excess Reserves for the Calculation Period ending on
such Interest Payment Date (calculated by the Borrower on such Interest Payment
Date), then each of CSSW Parent and the Borrower shall cause one or more Subsidiaries
to pay an amount, in the aggregate, equal to such Excess Reserve (less
the dollar amount of prepayments previously and actually made under this Section 9.17(a) using
the cash proceeds of Equity Contributions and made as an offset to such Excess
Reserves) either, at their option, toward the prepayment of Major Project
Indebtedness or toward the prepayment of the Obligations.

 

(b)       Independent of the
requirements of Section 9.17(a), if any cash amounts of a
Subsidiary of the Borrower are held in a Distribution Reserve Account under the
terms of Major Project Indebtedness of such Subsidiary or are otherwise trapped
from being distributed by such Subsidiary for a period of twelve (12) months or
more, then each of CSSW Parent and the Borrower shall deliver to the
Administrative Agent (who shall promptly forward such notice to the Lenders and
seek direction) a written notice thereof and reasonably detailed information
regarding the failure to satisfy the applicable distribution conditions (the “Distribution
Reserve Prepayment Notice”). Within ten (10) days after receipt of the
Distribution Reserve Prepayment Notice, the Administrative Agent may elect, at
the direction of the Majority Lenders, by delivery of a written notice to the
Borrower, to waive the further

 

93

 

requirements
of this Section 9.17(b)  with respect to the amounts covered
by such Distribution Reserve Prepayment Notice. If the Administrative Agent
does not timely provide the waiver described in the previous sentence, the
Borrower shall cause such Subsidiary to apply such cash amounts toward the
prepayment of such Major Project Indebtedness in lieu of distribution to the
Borrower when and so long as such prepayment is permitted under, and no default
will exist under, the terms of such Major Project Indebtedness as a result
thereof (including no requirement to replenish the amounts being withdrawn from
the Distribution Reserve Account or that are otherwise trapped) and no
prepayment premium will be required under the terms of such Major Project
Indebtedness in connection with any such prepayment that cannot be fully paid
using the cash amounts in the Distribution Reserve Account or that are
otherwise trapped.

 

Section 9.18           Use of Proceeds. The proceeds
of the Term Loans will be used (i) in connection with the Initial Closing
Date, for general corporate purposes, (ii) in connection with the
Subsequent Closing Date, to effect the Lehman Tax Equity Buyback and, if any
remaining proceeds, for general corporate purposes, (iii) in connection
with the Stetson II Funding Date, to pay construction costs for the Stetson II
Project and if any remaining proceeds, for general corporate purposes and (iv) to
pay transaction expenses incurred in connection with the transactions
contemplated by the Loan Documents and the Equity Documents.

 

Section 9.19           FERC Approval. Upon the
occurrence and continuation of an Event of Default, if the Administrative Agent
has accelerated the Obligations of the Borrower pursuant to Section 11.3
hereof, each of CSSW Parent and the Borrower will, and will cause each of the
Borrower’s Subsidiaries to, cooperate with the Lenders as may be reasonably
necessary for the Collateral Agent to obtain any approvals or authorizations
from the FERC as may be required for the Collateral Agent, at the written
direction of the Majority Lenders, to foreclose on the Collateral.

 

Section 9.20           Accuracy of Budgets. The budgets
to be furnished to the Lenders by or on behalf of the Borrower after the
Initial Closing Date will be based upon good faith estimates and assumptions
believed by management of CSSW Parent, the Borrower and the applicable
Subsidiaries to be reasonable at the time made.

 

Section 9.21           Market-Based Rate Authority. Each of CSSW
and the Borrower shall, and shall cause each of its Subsidiaries to, take or
cause to be taken all necessary or appropriate actions so that each Subsidiary
(if such Subsidiary directly owns or leases a Project or is otherwise a “public
utility” under the FPA) will be authorized by FERC to sell wholesale electric
power at market-based rates with all waivers of regulations and blanket
authorizations (including under Section 204 of the FPA) as are customarily
granted by FERC to entities authorized to sell wholesale electric power at
market-based rates, in each case to the extent such authorization is required
for such Subsidiary to sell wholesale electric power at market-based rates in
accordance with all Requirements of Law.

 

Section 9.22           Additional Collateral. Each of CSSW
Parent and the Borrower shall, and shall cause each of its Subsidiaries to, (a) promptly
(i) execute and deliver to the Administrative Agent and the Collateral
Agent such amendments to the Guarantee and Collateral Agreement as the
Administrative Agent or the Collateral Agent deems necessary or advisable to
grant to the Collateral Agent, for the benefit of the Lenders, a perfected
first priority security interest in the

 

94

 

Equity Interests of the
Steel Winds Companies and the Stetson Intermediate Holding Company, (ii) if
certificated, deliver to the Collateral Agent the certificates representing
such Equity Interests, together with undated stock powers, in blank, executed
and delivered by a duly Authorized Officer of the Borrower and the Steel Winds
Holding Company (iii) cause the Steel Winds Companies (A) to become a
party to the Guarantee and Security Agreement, (B) to take such actions
necessary or advisable to grant to the Collateral Agent for the benefit of the Lenders
a perfected first priority security interest in the Collateral described in the
Guarantee and Security Agreement with respect to the Steel Winds Companies,
including the filing of Uniform Commercial Code financing statements in such
jurisdictions as may be required by the Guarantee and Security Agreement or by
law or as may be requested by the Collateral Agent and (C) to deliver to
the Collateral Agent a certificate of an Authorized Officer of each Steel Winds
Company, substantially in the form of the certificate provided pursuant to Section 3.2(a)(iii),
with appropriate insertions and attachments, (iv) if requested by the
Administrative Agent, deliver to the Administrative Agent legal opinions
relating to the matters described above, which opinions shall be in form and
substance, and from counsel, reasonably satisfactory to the Administrative
Agent and (v) deliver to the Collateral Agent each deposit account control
agreement required to be delivered pursuant to the Guarantee and Collateral
Agreement, in form and substance reasonably acceptable to the Collateral Agent;
provided that the parties hereto acknowledge and agree that if any LC
Indebtedness or LC Conversion Indebtedness of the Steel Winds Project Company
with respect to the Steel Winds Project is in existence as of the Subsequent
Closing Date, then the Steel Winds Companies shall be required to become a
party to the Guarantee and Security Agreement and satisfy the other
requirements of this Section 9.22, upon the termination, expiration
and discharge of such LC Indebtedness or LC Conversion Indebtedness, as the
case may be.

 

Section 9.23           [Reserved.].

 

Section 9.24           Independent Director. The Borrower
shall appoint an initial independent director or member (or equivalent thereof)
to the board of directors or other equivalent governing body of the Borrower
whose consent shall be required for any bankruptcy or insolvency filing by the
Borrower. At the Majority Lenders’ request, the Borrower shall remove the
initial independent director or any successor and appoint a successor
independent director satisfactory to the Majority Lenders.

 

Section 9.25           Cohocton Holding Company. Promptly
following the Subsequent Closing Date, but in no event later than sixty (60)
days following the Subsequent Closing Date (a) pursuant to documentation
(including the Organizational Documents of the New Cohocton Holding Company)
reasonably satisfactory to the Majority Lenders, the Borrower will form the New
Cohocton Holding Company, a direct Subsidiary of the Borrower in which the
Borrower will own directly 100% of the Equity Interests and cause such
Subsidiary to own directly 100% of the Equity Interests in the Cohocton Holding
Company, which will continue to own, directly, 100% of the Equity Interests in
the Cohocton Project Companies; (b) the Borrower shall pledge all of its
Equity Interests in the New Cohocton Holding Company to the Collateral Agent
for the benefit of the Secured Parties pursuant to the Security Agreement and
shall have taken all actions for the creation and perfection of a first
priority Lien thereon as necessary or reasonably requested by the Collateral
Agent or any Lender or otherwise required hereunder, including under Section 9.11
hereof, and under the Security Documents and (c) the Borrower shall have

 

95

 

delivered a certificate of
an Authorized Officer certifying that in connection with the formation of the
New Cohocton Holding Company and the transfer of such Equity Interests to the
New Cohocton Holding Company described above (i) no Governmental Approvals
or notices to or consents, approvals or filings of or with any Governmental
Authority are required to be obtained or made and (ii) no notices to or
consents, approvals of or filings with any other Person are required to be
obtained or made other than (w) consent under the HSHN Parent/Turbine
Facilities, (x) consent by the lenders under the Cohocton Mini-Perm
Financing, (y) consent under that certain ISDA Master Agreement, dated as
of August 21, 2007, by and between the Cohocton Holding Company and Credit
Suisse Energy LLC, as amended by that certain First Amendment to ISDA Master
Agreement, dated as of August 20, 2008, as further amended by that certain
Second Amendment to ISDA Master Agreement, dated as of December 11, 2008,
and as further amended by that certain Third Amendment to ISDA Master
Agreement, dated as of March 27, 2009, as amended by the Schedule to the
1992 ISDA Master Agreement and the Confirmation, dated as of August 21,
2007 and (z) other non-material notices, consents, approvals or filings,
each of which have been obtained or made and are in full force and effect, and
attaching thereto copies of any such notices, consents, approvals and filings.

 

Section 9.26                                Stetson II
Project. The Borrower shall construct, or cause the Stetson II Project to be
constructed in accordance with the the Stetson II Turbine Supply Agreement, the
EPC Contract, the Stetson II Construction Budget and Prudent Utility Practices.

 

Section 9.27                                Post Stetson
Prepayment Obligation to Sell. Notwithstanding anything
to the contrary in this Agreement, this Section 9.27 provides the
sole remedy available to the Administrative Agent and Initial Lenders if at any
time after payment of the Stetson Prepayment an Event of Default under Section 11.1(b) occurs
as a result of Indebtedness of the Stetson Companies (but without limiting the
rights or remedies of the Administrative Agent or the Lenders with respect to
any other Defaults or Events of Default that may exist at any time). After the
occurrence and during the continuance of an Event of Default described in the
prior sentence, the Administrative Agent may deliver a written instruction (the
“Stetson Sale Instruction”) to the Borrower to commence the sale of the
Equity Interests held by the Borrower in the Stetson Intermediate Holding
Company to a third party. During the 180 day period (or such longer period as
permitted by the Majority Lenders in writing) after the Borrower’s receipt of
the Stetson Sale Instruction (the “Stetson Sale Period”), the Borrower
shall commence and diligently pursue the sale of such Equity Interests, using
commercially reasonable efforts to maximize the value received for such Equity
Interests upon sale. The Administrative Agent shall cooperate with the
Borrower’s reasonable requests in connection with the conduct and consummation
of such sale. No such sale shall occur without the prior approval of the
Majority Lenders. Any failure to comply with this covenant will constitute an
immediate Event of Default and terminate the Stetson Sale Period. The Borrower
shall deliver to the Administrative Agent 100% of the cash proceeds and any
other consideration received in connection with such sale immediately after
receipt thereof (or if requested shall direct the buyer to make any payment or
delivery directly to the Administrative Agent), to be applied toward the
prepayment of the Term Loans in accordance with Section 4.4. During
the Stetson Sale Period, such Event of Default shall not be considered an Event
of Default hereunder and interest on the Term Loans shall not accrue at the
Default Rate. If the aforementioned sale has not been consummated before the
expiration of the Stetson Sale Period, such Event of Default shall be deemed an
Event of Default

 

96

 

hereunder and the
Administrative Agent and Lenders shall be entitled to exercise any and all
remedies available under this Agreement and the other Loan Documents, at law or
in equity.

 

ARTICLE 10

 

NEGATIVE COVENANTS

 

On
and after the date hereof, until all of the Obligations (other than inchoate
Obligations) shall have been paid in full and the Lenders shall have no
commitments hereunder, each of CSSW Parent and the Borrower covenants that
neither CSSW Parent, the Borrower nor any of the Borrower’s Subsidiaries will:

 

Section 10.1                                Restrictions on
Indebtedness; Paying Premiums. (a) Create, incur,
suffer or permit to exist, or assume or guarantee, either directly or
indirectly, or otherwise become or remain liable with respect to, any
Indebtedness other than Permitted Indebtedness or (b) pay any prepayment
or redemption premium or other prepayment penalty in an amount that exceeds the
Premium Cap.

 

Section 10.2                                Restriction on
Liens. Create, incur, assume or suffer to be created, assumed, incurred or
to exist any Lien upon any of its property, whether now owned or hereafter
acquired, except Permitted Liens; provided that, with respect to CSSW
Parent and the Borrower, the only Liens permitted are the Liens created
pursuant to the Security Documents and Permitted Liens described in clauses
(b), (f) and (i) of the definition thereof.

 

Section 10.3                                Investments. Make any
advance, loan, extension of credit (by way of Contingent Obligation or
otherwise) or capital contribution to, or purchase any Equity Interests, bonds,
notes, debentures or other debt securities of, or any acquisition of assets
constituting a business unit of, or make any other investment in, any other
Person (all of the foregoing, “Investments”), except Permitted
Investments; provided that, with respect to CSSW Parent and the
Borrower, the only Investments permitted are Cash Equivalents and Permitted
Investments described in clauses (i), (j), (l), (m), (s) and (t) of
the definition thereof.

 

Section 10.4                                Dispositions of
Assets. Sell, lease, assign, transfer, convey or otherwise dispose of any of
its Property (including any sale/leaseback or Qualified Tax Equity Financings
but excluding sales of power, capacity or renewable energy credits under the
Project Documents existing on the applicable Closing Date or Additional Project
Documents that are permitted by Sections 10.11 and 10.17), whether
now owned or hereafter acquired, except (each, a “Permitted Disposition”):

 

(a)                      The disposition
of obsolete or worn out Property or other Property no longer useful in the business
of CSSW Parent, the Borrower and the Borrower’s Subsidiaries, in each case in
the Ordinary Course of Business;

 

(b)                     The sale or
transfer (i) by any Subsidiary of any Property (including Equity
Interests) to the Borrower, (ii) by any Cohocton Company of Property
(including Equity Interests) to any direct or indirect parent thereof, but not
above the Borrower, (iii) by any Stetson Company of any Property
(including Equity Interests) to any direct or indirect parent thereof, but not
above the Borrower or (iv) by any Steel Winds Company of any Property

 

97

 

(other
than Equity Interests) to any direct or indirect parent thereof, but not above
the Borrower;

 

(c)                      Permitted
Distributions;

 

(d)                     Non-exclusive licenses
of intellectual property in the Ordinary Course of Business;

 

(e)                      Other
dispositions in an aggregate amount not to exceed $1,500,000 in the aggregate
per Fiscal Year;

 

(f)                        Any sale of
Equity Interests of either the Steel Winds Holding Company or the Steel Winds
Project Company made in connection with a Qualified Tax Equity Financing with
respect to the Steel Winds Project;

 

(g)                     The Steel Winds
Reorganization;

 

(h)                     The Stetson
Transmission Line Reorganization, subject to the satisfaction or waiver by the
Majority Lenders of the Stetson Transfer Conditions;

 

(i)                         The disposition
of assets affected by an Event of Loss;

 

(j)                         Sales of Cash
Equivalents; or 

 

(k)                      The Stetson
Reorganization.

 

Section 10.5                                Reserved.

 

Section 10.6                                Mergers,
Consolidation, Etc. Except as expressly permitted under the Loan
Documents, enter into any merger or consolidation with or acquire (other than
as permitted by Section 10.3) all or substantially all of the
assets of any Person, or the business, Property or fixed assets of, or Equity
Interests of, any Person constituting any division or line of business or other
business unit of any Person, or sell, assign, lease, transfer, convey or
otherwise dispose of (whether in one transaction or in a series of
transactions) all or substantially all of its assets (whether now owned or
hereafter acquired) to any Person, or liquidate, wind-up or dissolve its organizational
existence (or suffer any liquidation or dissolution), except in connection with
a Permitted Disposition.

 

Section 10.7                                Distributions. With respect
to CSSW Parent and the Borrower only, make any Distribution, other than the
following (collectively, “Permitted Distributions”):

 

(a)                      with respect to
each of the Cohocton Project, the Stetson I Project and the Stetson II Project,
upon and after the receipt of an ITC Grant with respect to such Projects, up to
the applicable Distributable ITC Amount;

 

(b)                     for so long as
the CSSW Parent or the Borrower is either a disregarded entity or a partnership
for tax purposes under the Code, Distributions with respect to such entity’s
Equity Interests to permit the direct and indirect holders of such Equity
Interests to pay

 

98

 

U.S.
federal, state and local income taxes actually due and owing by them at the
time of the Distribution that are solely attributable to their direct or
indirect distributive share of the CSSW Parent’s or the Borrower’s taxable
income (such Distributions made pursuant to this Section 10.7(b), “Borrower
Tax Distributions”);

 

(c)                      so long as such
amounts do not constitute Excess Permitted Project Indebtedness, an amount
equal to the Net Cash Proceeds received by the Borrower or any of its
Subsidiaries from the proceeds of any Refinancing Indebtedness that exceeds the
amount of Major Project Indebtedness being refinanced; and

 

(d)                     Distribution of
the net cash proceeds of the Term Loans so long as the Borrower has complied
with Section 9.18 (including the payment of transaction expenses).

 

Section 10.8                                Sale and
Leaseback. Enter into any arrangement with any Person
providing for the leasing by CSSW Parent, the Borrower or any Subsidiary of the
Borrower of real or personal property that has been sold or transferred by CSSW
Parent, the Borrower or any Subsidiary of the Borrower to such Person or to
another Person to whom funds have been or are to be advanced by such Person on
the security of such Property or rental obligations of CSSW Parent, the
Borrower or the Borrower’s Subsidiaries.

 

Section 10.9                                Transactions
with Affiliates. Enter into any transaction or agreement, including
any purchase, sale, lease or exchange of property, the rendering of any service
or the payment of any management, advisory or similar fees, with any Affiliate
of CSSW Parent, the Borrower or the Borrower’s Subsidiaries, unless such
transaction is (a) otherwise permitted under this Agreement, (b) in
the Ordinary Course of Business of CSSW Parent, the Borrower and the Borrower’s
Subsidiaries, and (c) upon fair and reasonable terms no less favorable to
CSSW Parent, the Borrower or such Subsidiary (on the whole) than would be
obtained in a comparable arm’s length transaction with a Person that is not an
Affiliate; provided, however, that the foregoing restriction
shall not apply to (i) the execution and performance of the Loan Documents
and the transactions contemplated thereby, (ii) any transactions with the
directors, employees or equity holders of the Borrower or any of the
Subsidiaries for customary compensation (including bonus payments made to
employees), (iii) any operations and maintenance agreements,
administrative services agreements and any other affiliate agreements
identified on Schedule 3.1(d), Schedule 3.2(d) or Schedule
3.3(f), as such agreements may be amended, restated, modified or replaced
from time to time, but only to the extent such amendments, restatements,
modifications or replacements are not adverse to the Lenders in any material
respect and (iv) Permitted Distributions.

 

Section 10.10                          Organizational
Documents. Amend, modify or change its Organizational
Documents (including the Steel Winds Project Company LLC Agreement) in a manner
that is materially adverse to the rights of the Lenders (it being understood
that, any amendment, modification or other change to the separateness covenants
therein shall be materially adverse to such rights) or take any action that
would impair the value of or rights of the Lenders under such Organizational
Documents.

 

99

 

Section 10.11                          Amendment of
Material Project Documents; Material Additional Project Documents; Stetson II
Construction Period.

 

(a)                      Amend, modify,
waive or enter into any change order, or consent to the amendment, modification
of or waiver of, or entering into any change order to, any of the Material
Project Documents to which CSSW Parent, the Borrower or any of the Borrower’s
Subsidiaries is a party or waive or consent to a waiver of, any material
provision thereof (each, an “Agreement Change”) unless:

 

(i)                                     one of the
following conditions is met:

 

(A)                              such Agreement Change is of
a ministerial nature;

 

(B)                                such Agreement Change could
not reasonably be expected to have a Material Adverse Effect and the Borrower
shall have delivered to the Administrative Agent and the Lenders a certificate
to that effect;

 

(C)                                such Agreement Change is
approved by the Majority Lenders (such approval not to be unreasonably
withheld, delayed or conditioned);

 

(D)                               such Agreement Change is an
obligation of CSSW Parent, the Borrower or such Subsidiary pursuant to the
terms of this Agreement or any other Loan Document or is expressly permitted
thereby; or

 

(E)                                 the terms of such Agreement
Change, individually or together with a series of directly related Agreement
Changes, increases regular, bonus and similar payments to be made by the CSSW
Parent, the Borrower or such Subsidiary thereunder by an amount in excess of
$5,000,000 (or during the Stetson II Construction Period with respect to
Agreement Changes under the EPC Contract, $10,000,000 in the aggregate for all
such Agreement Changes) over the term of applicable Major Project Document, (it
being acknowledged and agreed that this clause (E) shall not create any
presumption that Agreement Changes above such $5,000,000 threshold (or
$10,000,000, as applicable) are material or constitute a Material Adverse
Effect for any purpose under this Agreement);

 

provided that, in
addition to the above conditions, no amendment, modification or waiver to any
of the Initial Power Hedging Documents or any Replacement IPH Document shall be
permitted which will result in a reduction of the Committed Capacity from sales
of energy, ancillary services, capacity or other related products or services
from any Project pursuant to such agreement, or shorten the term of any such
agreement.

 

(b)                     Except as set
forth in clause (c) below, enter into any Material Additional Project
Document.

 

100

 

(c)                      Enter into any
Material Additional Project Document which is a Material Power Document (but
excluding any Replacement IPH Document, the terms of which are governed by Section 11.1(j))
unless, (i) if such Material Power Document is a Commodity Hedge/Power
Sales Agreement then it shall be a Permitted Power Document and the Borrower
shall so certify, (ii) the counterparty is a Permitted Power Counterparty
and (iii) the Borrower certifies that its entry into such Material Power
Document could not reasonably be expected to have a Material Adverse Effect.

 

Section 10.12                          Amendment of
Major Project Indebtedness. Cause, consent to, or
permit any amendment, modification, waiver or other change to, any of the terms
of any Major Project Indebtedness Document that would (a) increase the
Yield as measured on the Amendment Measurement Date and the amount of fees
(including any fees or similar amounts paid in connection with any amendment,
waiver, extension or roll-over of such Major Project Indebtedness) (such fees
to be equated to interest based on a four-year average life to maturity) by
more than three percent (3%) in the aggregate for all increases in respect of
such Major Project Indebtedness provided in the related Major Project
Indebtedness Documents, (b) add any mandatory premiums or penalties in
excess of the Premium Cap or (c) without the prior written consent of the
Initial Lenders (i) amend, modify, waive or change (x) any terms of Section 10.1(n) of
the Stetson Portfolio Financing Agreement or (y) during the Stetson II
Construction Period, any other terms of the Stetson Portfolio Financing
Agreement and any related loan documents in a manner that is adverse in any
material respect to the rights or remedies of the Initial Lenders or (ii) during
the Stetson II Construction Period, enter into any Refinancing of the Stetson
Portfolio Financing (other than, for the avoidance of doubt, in connection with
the exercise of cure rights contemplated by Section 11.2(b) hereof).

 

Section 10.13                          Subsidiaries. (a) With
respect to CSSW Parent, form, create or acquire any Subsidiary (it being
understood that the Borrower shall be the only direct Subsidiary of CSSW
Parent), (b) with respect to the Borrower, form, create or acquire any
Subsidiary (it being understood that the only direct Subsidiaries of the
Borrower shall be (i) New York Wind III, (ii) the New Cohocton
Holding Company and (iii) the Stetson Intermediate Holding Company), (c) with
respect to any Project Company, form, create or acquire any Subsidiary, except
as permitted in connection with the Stetson Transmission Line Reorganization, (d) with
respect to New York Wind III and the Steel Winds Holding Company, form, create
or acquire any Subsidiary (it being understood that, after the formation of the
New Cohocton Holding Company pursuant to Section 9.25, the Steel
Winds Holding Company shall be the only direct Subsidiary of New York Wind III
and the Steel Winds Project Company shall be the only direct Subsidiary of the
Steel Winds Holding Company) and (e) with respect to any other Subsidiary
of the Borrower, form, create or acquire any Subsidiary that is not a wholly
owned domestic Subsidiary reasonably necessary in connection with the business
or financings of such Subsidiaries and the Projects. Prior to the formation,
creation, or acquisition of any Subsidiary (other than in connection with the
Stetson Transmission Line Reorganization or the Stetson Reorganization), the
Borrower will provide at least fifteen (15) days’ prior notice of such
formation, creation or acquisition to the Administrative Agent and the Initial
Lenders, together with an updated Schedule 5.5 reflecting such
information and copies of all Organizational Documents executed in connection
therewith.

 

Section 10.14                          Replacement of
Operator. Unless required to do so under the terms of Major
Project Indebtedness Document or pursuant to an exercise of remedies by a
lender

 

101

 

thereunder, replace the
Operator of any Project, other than with a replacement operator of such Project
that has recognized knowledge and expertise in providing management, operations
and maintenance services to wind energy generation projects in North America
similar to such Project and that has been approved in writing by the Majority
Lenders, which approval shall not be unreasonably withheld.

 

Section 10.15                          Abandonment of
Project. Willfully and voluntarily abandon, suspend or cease the operation and
maintenance activities at any Project for a continuous period of more than
sixty (60) days (an “Event of Abandonment”); provided, however,
that any such suspension or cessation that arises from an Event of Loss, a
Requirement of Law, an event of force majeure, curtailment or failure to be
dispatched, or other bona fide business reasons shall not constitute an Event
of Abandonment, in each case, so long as the relevant Subsidiary is taking
commercially reasonable actions to overcome or mitigate the effects of the
cause of the suspension or cessation so that maintenance and/or operations, as
the case may be, can be resumed.

 

Section 10.16                          Special Purpose
Entity Status. With respect to CSSW Parent, engage in any
business unrelated to the acquisition and ownership, directly, of the Equity
Interests in the Borrower and entering into and performing obligations under
the Loan Documents. With respect to the Borrower, engage in any business
unrelated to the acquisition and ownership, directly, of the Equity Interests
in (i) the Stetson Intermediate Holding Company, (ii) New York Wind
III and (iii) the New Cohocton Holding Company, and the entry into and
performance of obligations under the Loan Documents. With respect to New York
Wind III, engage in any business unrelated to the acquisition and ownership,
directly, of the Equity Interests in the Steel Winds Holding Company and the
entry into and performance of obligations under the Loan Documents. With
respect to the Steel Winds Holding Company, engage in any business unrelated to
the acquisition and ownership, directly, of the Equity Interests in the Steel
Winds Project Company and the entry into and performance of obligations under
the Loan Documents. With respect to the Stetson Intermediate Holding Company,
engage in any business unrelated to the acquisition and ownership, directly, of
the Equity Interests in the Stetson Holding Company and the entry into and
performance of obligations under the Loan Documents. With respect to any other
Subsidiary of the Borrower, other than a Project Company, engage in any
business unrelated to the ownership, operation and maintenance of the Project
Companies. With respect to Prattsburgh, engage in any business unrelated to the
Unwind of its Properties and business. With respect to any Project Company,
engage in any business unrelated to the ownership, operation and maintenance of
the Projects.

 

Section 10.17                          Hedging
Agreements. Enter into or become a party to (a) any
Commodity Hedge/Power Sales Agreement other than the Initial Power Hedging
Documents, any Replacement IPH Document or any other Permitted Power Document
or (b) any other Hedging Agreement other than Hedging Agreements in the
Ordinary Course of Business or entered into in accordance with Section 9.14(b)
and not for speculative purposes.

 

Section 10.18                          Administrative
Services Agreement With respect to the Stetson Companies, enter into
or become a party to any administrative services agreement where the aggregate
annual reimbursement limits for the Stetson I Project and Stetson II Project
exceed the maximum aggregate amount set forth below opposite the corresponding
date on which such amount shall be measured.

 

102

 

	
  During the period
  commencing on the Stetson II Effective date and ending on December 31,
  2010 

  	
   

  	
  $600,000.

  
	
   

  	
   

  	
   

  
	
  During the period
  commencing on January 1, 2011 and ending on December 31, 2012

  	
   

  	
  (a) $400,000 if the
  Stetson I Project Company and Stetson II Project Company have not distributed
  to Borrower at least $6,000,000 per year for the trailing twelve (12) months;
  or

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) $800,000 if the
  Stetson I Project Company and Stetson II Project Company have distributed to
  Borrower at least $6,000,000 per year for the trailing twelve (12) months. 

  
	
   

  	
   

  	
   

  
	
  Thereafter

  	
   

  	
  (a) $400,000 if the
  Stetson I Project Company and Stetson II Project Company have not distributed
  to Borrower at least $8,000,000 per year for the trailing twelve (12) months;
  or 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) $800,000 if the
  Stetson I Project Company and Stetson II Project Company have distributed to
  Borrower at least $8,000,000 per year for the trailing twelve (12) months. 

  

 

ARTICLE 11

 

EVENTS OF DEFAULT AND REMEDIES

 

Section 11.1                                Events of
Default. The occurrence of any of the following events shall constitute an “Event
of Default” hereunder:

 

(a)                      The Borrower
shall fail to pay (i) when due all or any portion of any principal payment
required under the Loan Documents; or (ii) within three (3) Business
Days after the same shall become due and payable, any interest accrued payable
under the Loan Documents; or (iii) within five (5) Business Days
after the same shall become due and payable, any other amount payable under the
Loan Documents; or

 

(b)                     CSSW Parent,
the Borrower or any Subsidiary of the Borrower shall default (i) in the
payment of any principal or unpaid reimbursement obligations on any of its
Indebtedness (other than the Term Loans, but including any Contingent
Obligation in respect of Indebtedness) on the scheduled or original due date or
(ii) in making any payment of any interest or other amount on any such
Indebtedness (other than the Term Loans, but including any Contingent
Obligation in respect of Indebtedness) beyond the grace period, if any,
provided in the instrument or agreement under which such Indebtedness was
created; provided

 

103

 

that
any default, event or condition described in clause (i) or (ii) of
this paragraph (b) shall not at any time constitute an Event of Default
(A) unless, at such time, one or more defaults, events or conditions of
the type described in clauses (i) or (ii) of this paragraph
(b) shall have occurred and be continuing with respect to Indebtedness the
outstanding principal amount of which exceeds in the aggregate $20,000,000, and
(B) so long as the entire outstanding principal amount of such
Indebtedness has not become due (with no further cure periods for payment
thereof) or has not been accelerated prior to its stated maturity or a payment
of principal is not made at maturity, such default, event or condition is not
cured, remedied or waived within 180 days after the date on which the holder or
beneficiary of such Indebtedness (or a trustee or agent on behalf of such
holder or beneficiary) is permitted to cause such Indebtedness to become due
prior to its stated maturity (the “Standstill Period”); provided,
further, that notwithstanding the above, during the Stetson II
Construction Period, the occurrence of an “Event of Default” (under and as
defined in the Stetson Portfolio Financing Agreement and any Refinancing
thereof) relating to or in any way arising from the Stetson II Project Company
or Stetson II Project shall constitute an Event of Default under this
Agreement; or

 

(c)                      Any
representation, warranty or certification made or deemed made by any Person in
any Loan Document or contained in any notice or other certificate, agreement,
document, financial statement or other statement delivered pursuant hereto or
thereto, shall prove to have been incorrect in any material respect as of the
date made or deemed made; provided that if such misstatement is capable
of being remedied and has not caused a Material Adverse Effect, the Borrower
may correct such misstatement by delivering a correction notice of such
misstatement to the Administrative Agent in form and substance satisfactory to
the Majority Lenders within 30 days after obtaining actual knowledge of such
misstatement; or

 

(d)                     CSSW Parent,
the Borrower or any Subsidiary of the Borrower shall fail to:

 

(i)                                     perform,
observe or comply with, any covenant, obligation or agreement (A) set
forth in Section 9.1(a) (Existence and Business) with respect
to the Borrower, Section 7.6 (Notice of Defaults), Section 9.17(a) (Mandatory
Prepayment of Reserves) or Article 10 (Negative Covenants) (other
than Sections 10.7 and 10.9) of this Agreement at any time or
(B) set forth in Section 7.1 (Quarterly Financial Statements
and Reports), Section 7.2 (Annual Financial Statements), Section 9.10
(Separateness Covenants), Section 9.14 (Hedging Requirements), Section 9.17(b) (Mandatory
Prepayment of Reserves), Section 9.18 (Use of Proceeds), Section 9.25
(Cohocton Holding Company), Section 9.26 (Stetson II Project), Section 10.7
(Distributions) or Section 10.9 (Transactions with Affiliates),
within five (5) Business Days after the earlier of (x) receipt by
such Person of written notice from the Administrative Agent or any Lender of
such failure and (y) the time at which an Authorized Officer of such
Person became aware of such failure;

 

(ii)                                  perform,
observe or comply with, any covenant, obligation or agreement set forth in this
Agreement or in any other Loan Document (other than any such failure described
in the immediately preceding clause (i)), and such failure described in this
clause (ii) shall not be cured within thirty (30) days after the earlier
of (x) receipt by such Person of written notice from the Administrative
Agent or any Lender of such

 

104

 

failure
and (y) the time at which an Authorized Officer of such Person became
aware of such failure; or

 

(e)                      (i) Any
Loan Document is revoked or invalidated or otherwise shall cease to be in full
force and effect (other than in accordance with its terms), or (ii) any of
CSSW Parent, the Borrower or any Subsidiary of the Borrower or any of their
respective Affiliates shall, in a litigation proceeding, contest the validity
or enforceability of any Loan Document or deny that it has any liability or
obligation thereunder; or

 

(f)                        Any Judgment
(or Judgments) is rendered against CSSW Parent, the Borrower or any of the
Borrower’s Subsidiaries in an aggregate amount in excess of $20,000,000 for
CSSW Parent, the Borrower and its Subsidiaries and such Judgments are
(i) not fully covered by third party insurance and (ii) not satisfied
by CSSW Parent, the Borrower or such Subsidiary, as applicable, within thirty
(30) days from the entry thereof; or

 

(g)                     (i) CSSW
Parent, the Borrower or any Subsidiary of the Borrower shall commence any case,
proceeding or other action (A) under any Debtor Relief Law, seeking to
have an order for relief entered with respect to it, or seeking to adjudicate
it as bankrupt or insolvent, or seeking reorganization, arrangement,
adjustment, winding up, liquidation, dissolution, composition or other relief
with respect to it or its debts, or (B) seeking appointment of a receiver,
trustee, custodian, conservator or other similar official for it or for all or
any substantial part of its assets; or (ii) there shall be commenced
against CSSW Parent, the Borrower or any Subsidiary of the Borrower, any case,
proceeding or other action of a nature referred to in clause (i) above
that (A) results in the entry of an order for relief or any such
adjudication or appointment or (B) remains undismissed or undischarged for
a period of sixty (60) days; or (iii) there shall be commenced against
CSSW Parent, the Borrower or any Subsidiary of the Borrower, any case,
proceeding or other action seeking issuance of a warrant of attachment,
execution, distraint or similar process against all or any substantial part of
its assets that results in the entry of an order for any such relief that shall
not have been vacated, discharged, stayed or bonded pending appeal within sixty
(60) days from the entry thereof; or (iv) CSSW Parent, the Borrower or any
Subsidiary of the Borrower shall take any action in furtherance of, or
indicating its consent to, approval of, or acquiescence in, any of the acts set
forth in clause (i), (ii), or (iii) above; or (v) CSSW Parent, the
Borrower or any Subsidiary of the Borrower shall generally not, or shall be
unable to, or shall admit in writing its inability to, pay its debts as they
become due; or (vi) CSSW Parent, the Borrower or any Subsidiary of the
Borrower shall make a general assignment for the benefit of its creditors; or

 

(h)                     A Change of
Control shall occur; or

 

(i)                         The Nominee
Agreement shall terminate or cease to be in full force and effect to provide
beneficial ownership and control of the Equity Interests in and assets and
operations of the Cohocton Holding Company and the Cohocton Project Companies
in New York Wind III, or is amended in any manner adverse to the Lenders, other
than as a result of the Lehman Tax Equity Buyback and the Steel Winds
Reorganization, or the Borrower shall cease to own and control all rights and
privileges to direct the ownership and activities of the Cohocton Holding
Company and Cohocton Project Companies; or

 

105

 

 

(j)                         (a) Any
Material Project Document (x) ceases to be valid and binding and in full
force and effect before its scheduled termination in accordance with the terms
thereof (including by virtue of a termination prior to its normal expiration),
or (y) is replaced by CSSW Parent, the Borrower or any Subsidiary of the
Borrower or assigned by any Project Participant thereto, (b) an event of
default under, notice of termination of or similar right to terminate, a
Material Project Document shall have occurred and be continuing due to a breach
by the Borrower, one of its Subsidiaries or a Project Participant thereunder or
(c) a bankruptcy, insolvency or similar event under any Debtor Relief Law
shall have occurred with respect to any Project Participant party to a Material
Project Document unless such Project Participant is continuing to perform all
of its material obligations thereunder and such bankruptcy, insolvency or
similar event under any Debtor Relief Law has not resulted in a Material
Adverse Effect; provided that none of the foregoing in clauses (a),
(b) or (c) shall constitute an Event of Default:

 

(i)                                     if such
Material Project Document is not an Initial Power Hedging Document or any
previous Replacement IPH Document, (A) such event referred to above has not
had, and could not reasonably be expected to result in, a Material Adverse
Effect or (B) within 180 days(or within 90 days with respect to the EPC
Contract during the Stetson II Construction Period) after the occurrence of
such event referred to above, such event has been cured or the Borrower or the
applicable Subsidiary shall have entered into a replacement arrangement that
either (I) has received any required Major Project Indebtedness Approval
or (II)(1) is with a comparable counterparty or as otherwise approved by
the Majority Lenders (not to be unreasonably withheld, delayed or conditioned)
and (2) is on substantially similar terms as the replaced Material Project
Document, or

 

(ii)                                  if such
Material Project Document is an Initial Power Hedging Document or any previous
Replacement IPH Document, within 180 days after the occurrence of such event
referred to above, such event has been cured or the applicable Subsidiary has
entered into one or more replacement Commodity Hedge/Power Sales Agreements
covering the Committed Capacity of the agreement being replaced (each, a “Replacement
IPH Document”) that (A) has received Major Project Indebtedness
Approval to the extent applicable and required, (B) is with a counterparty
that is a Permitted Power Counterparty, (C) is a Permitted Power Document,
(D) has a term at least equal to the remaining term of the agreement being
replaced unless a Permitted Power Document with such remaining term would
require the Borrower and its Subsidiaries to post collateral support that
exceeds the amount of collateral support required under the terms of the
agreement being replaced (in which case the applicable Subsidiary shall enter
into a Replacement IPH Document with the longest term it can obtain on
commercially reasonable terms using the amount of collateral support that it
was required to provide under the agreement being replaced) and (E) the
Borrower shall have certified that entry into such Replacement IPH Document
could not reasonably be expected to result in a Material Adverse Effect; or

 

(k)                      (i) the
occurrence of any ERISA Event, or the failure with respect to any Foreign Plan
or Foreign Benefit Arrangement to comply with applicable laws, regulations and
interpretations, or the terms of such plan, shall have occurred, (ii) a
trustee shall be appointed

 

106

 

by
a United States District Court to administer any Pension Plan, (iii) the
PBGC shall institute proceedings to terminate any Pension Plan, or (iv) a
complete or partial withdrawal by any of CSSW Parent, the Borrower and any of
the Borrower’s Subsidiaries or any of their respective ERISA Affiliates from
any Multiemployer Plan shall have occurred, or any Multiemployer Plan shall
enter reorganization status, become insolvent, or terminate (or notify CSSW
Parent, the Borrower or any Subsidiary of its intent to terminate) under
Section 4041A of ERISA, and in each case in clauses (i) through
(iv) above, such event or condition, together with all other such events
or conditions, described in this Section 11.1(k), individually or
in the aggregate, could reasonably be expected to have a Material Adverse
Effect; or

 

(l)                         (i) Any of
the Security Documents shall, except pursuant to the terms thereof, be
terminated or shall cease to be in full force and effect (or the Borrower shall
wrongfully so assert) or (ii) any of the Secured Parties shall cease to
have a first priority, perfected Lien on any Collateral; or

 

(m)                   Any
Governmental Approval shall be revoked, terminated, withdrawn, suspended,
modified or withheld or shall cease to be in full force and effect or any
proceeding is commenced to revoke, terminate, withdraw, suspend, modify or
withhold such Governmental Approval, unless, in any such case, such failure,
revocation, termination, withdrawal, suspension, modification, withholding or
failure to be in full force and effect would not reasonably be expected to have
a Material Adverse Effect; or

 

(n)                     A Total Loss
shall have occurred; or

 

(o)                     The Lehman Tax
Equity Buyback shall be deemed, found to be, declared or made unenforceable or
void or shall otherwise not be effective or be unwound for any reason (an “Unwind
Event”) and the parties to the Lehman Tax Equity Buyback are unable to
reconsummate the transaction prior to the earliest of (i) 180 days after
such Unwind Event occurs, (ii) any direct assertion in writing by Lehman
First Wind Holdings, LLC that it is entitled to own and control directly or
indirectly any Equity Interests in or rights or privileges to direct the ownership
or activities of the Cohocton Holding Company and the Cohocton Project
Companies or otherwise have any rights, claims or interests in any assets,
property or revenues of the Cohocton Project, the Cohocton Holding Company or
the Cohocton Project Companies and (iii) a Governmental Authority
determining that the reconsummation of the transaction is prohibited by a
Requirement of Law or otherwise not approving the reconsummation of the Lehman
Tax Equity Buyback (such period, the “Tax Equity Standstill Period”); or

 

(p)                     The
construction of the Stetson II Project shall have been willfully and
voluntarily abandoned for a period in excess of 45 consecutive days; provided,
however, that any suspension or cessation that arises from an Event of
Loss, a Requirement of Law, an event of force majeure or other bona fide
business reasons shall not constitute an abandonment, in each case, so long as
the Stetson II Project Company is taking commercially reasonable actions to
overcome or mitigate the effects of the cause of such suspension or cessation
so that construction can be resumed.

 

107

 

Section 11.2                                Steel Winds
Project and Stetson II Project Event of Default.

 

(a)                                  Notwithstanding
any provision to the contrary in this Agreement, if an Event of Default
hereunder arises from a circumstance or occurrence solely with respect to the
Steel Winds Project, the Steel Winds Holding Company or the Steel Winds Project
Company (and not with respect to the Cohocton Project, the Stetson I Project or
the Cohocton Companies and the Stetson Companies), so long as such circumstance
or occurrence would have no material adverse impact on CSSW Parent, the
Borrower and the Borrower’s Subsidiaries and their assets, taken as a whole,
and would not result in any material liability to CSSW Parent, the Borrower or
the Borrower’s Subsidiaries (other than to the assets of the Steel Winds
Project, the Steel Winds Holding Company or the Steel Winds Project Company),
then automatically, without further action, upon the partial repayment of the
Term Loans, in a principal amount equal to $15,000,000, plus accrued interest
(including any PIK Interest applicable thereto) less 15/115 of payments
and prepayments of principal on the Term Loans made after the Subsequent Closing
Date, then such Event of Default shall be deemed cured and shall no longer
constitute an Event of Default hereunder. Subsequent to such repayment, solely
for purposes of giving rise to an Event of Default under the Loan Documents the
Borrower shall not be bound by any covenants contained in this Agreement as
relates solely to the Steel Winds Holding Company or the Steel Winds Project
Company and any determination of a Default or Event of Default hereunder shall
exclude all circumstances or occurrences with respect to the Steel Winds
Project or the other assets of the Steel Winds Holding Company or the Steel
Winds Project Company, so long as such circumstance or occurrence would have no
material adverse impact on CSSW Parent, the Borrower and the Borrower’s
Subsidiaries and their assets, taken as a whole, and would not result in any
material liability to CSSW Parent, the Borrower or the Borrower’s Subsidiaries
(other than to the assets of the Steel Winds Project and Steel Winds Holding
Company or the Steel Winds Project Company).

 

(b)                                 In the event
that (x) an Event of Default under the second proviso of Section 11.1(b) has
been cured by CSSW Parent, the Borrower or a Stetson Company pursuant to
Section 10.1(n) of the Stetson Portfolio Financing Agreement or
(y) during the period commencing on July 31, 2010 and ending on the
Stetson II COD, the security interests held by the lenders under the Stetson
Portfolio Financing in the Stetson II Project and the Equity Interests in the
Stetson II Project Company have been terminated and released and the Stetson II
Project Company has been fully released from all obligations under the Stetson
Portfolio Financing or any Refinancing thereof, including with respect to
obligations relating to collateral, and has been removed from all
representations, warranties, covenants and events of default thereunder (and
the Borrower shall have delivered to the Administrative Agent notice and
reasonably satisfactory evidence of the foregoing), the Borrower, the
Administrative Agent and the Initial Lenders hereby agree that the changes to
the indebtedness baskets, reserve lines, restricted payments, financial
covenant levels, required hedging, administrative services agreements and other
similar changes shall be restored to those levels and terms set forth in the
Original Credit Agreement and that they will promptly enter into an amendment
to this Agreement to reflect such changes. In addition, subsequent to such cure
under the second proviso of Section 11.1(b) before the Stetson
II Funding Date, solely for the purpose of giving rise to an Event of Default
under the Loan Documents and only to the extent the Stetson II Project Company
and Stetson II Project are and remain fully released and discharged, including
with respect to obligations relating to collateral, the Borrower shall not be
bound by any covenants contained in this Agreement as relates solely to the
Stetson II Project Company and any determination of a Default or Event of
Default hereunder shall exclude any circumstance or

 

108

 

occurrence with respect to
the Stetson II Project or any other assets of the Stetson II Project Company,
so long as such circumstance or occurrence should have no material adverse
impact on CSSW Parent, the Borrower and the Borrower’s Subsidiaries and their
assets, taken as a whole, and would not result in any material lien or material
liability of CSSW Parent, the Borrower or the Borrower’s Subsidiaries.

 

Section 11.3                                Acceleration.

 

(a)                      If an Event of
Default specified in paragraph (g) of Section 11.1 shall occur
with respect to the Borrower, Term Loans (with accrued interest thereon) and
all other amounts owing under the Loan Documents shall immediately become due
and payable.

 

(b)                     Subject to Section 9.27,
if any Event of Default (other than the Event of Default referred to in Section 11.3(a))
shall occur, then the Administrative Agent (acting at the written direction of
the Majority Lenders) may by notice to the Borrower declare the Term Loans, all
accrued and unpaid interest thereon and all other amounts owing to the Lenders
under the Loan Documents to be due and payable, whereupon the same shall become
immediately due and payable.

 

(c)                      Except as
expressly provided above in this Section 11.3, presentment, demand,
protest and all other notices and other formalities of any kind are hereby
expressly waived by the Borrower.

 

Section 11.4                                Other Remedies. Subject to Section 9.27,
upon the occurrence and during the continuation of an Event of Default:

 

(a)                      The Collateral
Agent may, with the written consent of the Majority Lenders, and shall, at the
written direction of the Majority Lenders, exercise any or all rights and
remedies at law or in equity (in any combination or order that the Majority
Lenders may elect), including without limitation or prejudice to the Collateral
Agent’s other rights and remedies that are available under any of the Loan
Documents.

 

(b)                     CSSW Parent and
the Borrower hereby appoint the Collateral Agent (acting on the instruction of
the Majority Lenders) as the attorney-in-fact of CSSW Parent and the Borrower,
with full power of substitution, and in the name of CSSW Parent and the
Borrower, if the Collateral Agent, at the direction of the Majority Lenders, or
the Majority Lenders elect to do so at any time after the Term Loans have been
declared immediately due and payable pursuant to this Article 11,
to: (i) advance and incur such expenses as the Majority Lenders deem
reasonably necessary, (ii) endorse the name of CSSW Parent or the Borrower
on any checks or drafts, representing proceeds of any insurance policies, or
other checks or instruments payable to CSSW Parent or the Borrower,
(iii) take every action with respect to the Loan Documents which CSSW
Parent or the Borrower may take under law or in equity and (iv) prosecute
or defend any action or proceedings incident to the foregoing. The
power-of-attorney granted hereby is a power coupled with an interest and is
irrevocable. The Collateral Agent shall have no obligation to undertake any of the
foregoing actions, and, if it takes any

 

109

 

such
action it shall have no liability to CSSW Parent or the Borrower to continue
the same or for the sufficiency or adequacy thereof.

 

(c)                      Any funds of
any Lender or the Collateral Agent (including the proceeds of any Term Loans)
used for any purpose referred to in this Section 11.4, whether or
not in excess of the relevant Term Loans, shall (i) be governed hereby,
(ii) constitute a part of the Obligations secured by the Security
Documents, (iii) bear interest at the Default Rate, and (iv) be
payable upon demand by such Lender or the Collateral Agent, as applicable.

 

Section 11.5                                Distribution of
Proceeds. Notwithstanding anything to the contrary contained
herein or in the other Loan Documents, in the event that following the
occurrence or during the continuance of any Event of Default, the Agents or any
Lender receives any monies on account of the Obligations from the Borrower or
otherwise, such monies shall be distributed for application as follows:

 

(a)                      First, to the
payment of or the reimbursement of, the Agents for or in respect of all costs,
fees, expenses, disbursements and losses that shall have been incurred or
sustained by the Agents in connection with the collection of such monies by the
Agents, or in connection with the exercise, protection or enforcement by the
Agents of all or any of the rights, remedies, powers and privileges of the
Agents or the Lenders under this Agreement or any other Loan Document;

 

(b)                     Second, to the
payment of all interest, including interest on overdue amounts, and late
charges, then due and payable with respect to the Term Loans, allocated among
the Lenders pro rata in accordance with their respective
outstanding principal amount of Term Loans;

 

(c)                      Third, to the
payment of the outstanding principal balance of the Term Loans (including any
applicable Call Premium and PIK Interest), allocated among the Lenders pro rata
in accordance with their respective outstanding principal amount of Term Loans;

 

(d)                     Fourth, to any other
outstanding Obligations, allocated among the Lenders pro rata
in accordance with their respective outstanding principal amount of Term Loans;
and

 

(e)                      Fifth, the excess,
if any, after all Obligations have been indefeasibly paid in full in cash,
shall be returned to the Borrower or to such other Persons as are lawfully
entitled thereto or as a court of competent jurisdiction may direct.

 

ARTICLE 12

 

THE AGENTS

 

Section 12.1                                Appointment and
Authorization.

 

(a)                      Each Lender
hereby irrevocably appoints, designates and authorizes the Administrative Agent
as the agent of such Lender under this Agreement and the other Loan Documents,
and each such Lender irrevocably authorizes the Administrative Agent, in such

 

110

 

capacity
to take such action on its behalf under the provisions of this Agreement and
each other Loan Document to which it is a party and to exercise such powers and
perform such duties as are expressly delegated to the Administrative Agent by
the terms of this Agreement or any such other Loan Document, together with such
powers as are reasonably incidental thereto.

 

(b)                     Each Lender
hereby irrevocably appoints, designates and authorizes the Collateral Agent as
the agent of such Lender under this Agreement and the other Loan Documents, and
each such Lender irrevocably authorizes the Collateral Agent, in such capacity
to take such action on its behalf under the provisions of this Agreement and
each other Loan Document to which it is a party and to exercise such powers and
perform such duties as are expressly delegated to the Collateral Agent by the
terms of this Agreement or any such other Loan Document, together with such
powers as are reasonably incidental thereto.

 

(c)                      Each of the
Lenders authorizes, respectively, each Agent to execute, deliver and perform
each of the Loan Documents to which such Agent is or is intended to be a party
and each Lender agrees to be bound by all of the agreements of such Agent
contained in the Loan Documents.

 

(d)                     Notwithstanding
any provision to the contrary contained elsewhere in this Agreement or in any
other Loan Document, none of the Agents shall have any duties or
responsibilities to the Lenders except those expressly set forth herein and in
the other Loan Documents, nor shall any of the Agents have or be deemed to have
any fiduciary relationship with any Lender, and no implied covenants,
functions, responsibilities, duties, obligations or liabilities shall be read
into this Agreement or any other Loan Document or otherwise exist against any
of the Agents. Without limiting the generality of the foregoing sentence, the
use of the terms “Administrative Agent,” and “Collateral Agent,” in this
Agreement with reference to the Administrative Agent and the Collateral Agent
is not intended to connote any fiduciary or other implied (or express)
obligations arising under agency doctrine of any applicable Requirement of Law.
Instead, such terms are used merely as a matter of market custom, and are
intended to create or reflect only a relationship between independent
contracting parties.

 

Section 12.2                                Delegation of
Duties. Each of the Agents may execute any of its duties under this Agreement
or any other Loan Document by or through agents, employees or attorneys-in-fact
and shall be entitled to advice of counsel concerning all matters pertaining to
such duties. None of the Agents shall be responsible to the Lenders for the
gross negligence or misconduct of any agent or attorney-in-fact that it selects
with reasonable care.

 

Section 12.3                                Liability of
the Agents. None of the Agents or any of their respective
officers, directors, employees, agents, advisors, attorneys-in-fact or
Affiliates shall (a) be liable to the Lenders for any action taken or omitted
to be taken by any of them under or in connection with this Agreement or any
other Loan Document or the transactions contemplated hereby (except for its own
fraud, gross negligence or willful misconduct), or (b) be responsible in
any manner to any of the Secured Parties or any other Person for any recital,
statement, representation or warranty made by CSSW Parent, the Borrower or any
Affiliate of the Borrower, or any officer thereof, contained in this Agreement
or in any other Loan Document, or in any certificate, report, statement or
other document referred to or provided for in, or received by any Agent under
or in connection with, this Agreement or any other Loan Document, or for

 

111

 

the value of or title to any
Collateral, or the validity, effectiveness, genuineness, enforceability or
sufficiency of this Agreement or any other Loan Document, or for any failure of
the Borrower or any other party to any Loan Document to perform its obligations
hereunder or thereunder. None of the Agents or any of their respective
officers, directors, employees, agents, advisors, attorneys-in-fact or
Affiliates shall be under any obligation to any Secured Party to ascertain or
to inquire as to the observance or performance of any of the agreements
contained in, or conditions of, this Agreement or any other Loan Document, or
to inspect the Properties, books or records of CSSW Parent, the Borrower or any
Affiliate of the Borrower.

 

Section 12.4                                Reliance by the
Agents. Each of the Agents shall be entitled to rely, and shall be fully
protected in relying, upon any writing, resolution, notice, consent,
certificate, affidavit, letter, telegram, facsimile, telex or telephone
message, statement or other document or conversation in good faith believed by
it to be genuine and correct and to have been signed, sent or made by the
proper Person or Persons, and upon advice and statements of legal counsel
(including counsel to CSSW Parent and the Borrower), independent accountants
and other experts selected by any such Agent. Each of the Agents shall be fully
justified in failing or refusing to take any action under this Agreement or any
other Loan Document (a) if such action would, in the opinion of such Agent
(upon consultation with counsel), be contrary to applicable Requirements of Law
or the terms of any Loan Document, (b) if such action is not specifically
provided for in the Loan Documents to which such Agent is a party, and it shall
not have received such advice or concurrence of the Majority Lenders as it
deems appropriate, or (c) unless, if it so requests, such Agent shall
first be indemnified to its satisfaction by the Lenders against any and all
liability and expense which may be incurred by it by reason of taking or
continuing to take any such action. Each of the Agents shall in all cases be
fully protected in acting, or in refraining from acting, under this Agreement
or any other Loan Document in accordance with a request or consent of the
Majority Lenders and such request and any action taken or failure to act
pursuant thereto shall be binding upon all of the Secured Parties.

 

Section 12.5                                Notice of
Default.

 

(a)                      The
Administrative Agent shall not be deemed to have knowledge or notice of the
occurrence of any Default or Event of Default, except with respect to defaults
in the payment of principal, interest and fees required to be paid to the
Administrative Agent for the account of the Lenders, unless the Administrative
Agent shall have received written notice from a Lender or the Borrower
referring to this Agreement, describing such Default or Event of Default and
stating that such notice is a “Notice of Default.” If the Administrative Agent
receives any such notice of the occurrence of a Default or an Event of Default,
it shall give notice thereof to the Lenders. The Administrative Agent shall
take such action with respect to such Default or Event of Default as may be
requested by the Majority Lenders in accordance with this Article 12;
provided, however, that unless and until the Administrative Agent
has received any such request, the Administrative Agent may (but shall not be
obligated to) take such action, or refrain from taking such action, with
respect to such Default or Event of Default as it shall deem advisable or in
the best interest of the Lenders.

 

(b)                     The Collateral
Agent shall not be deemed to have knowledge or notice of the occurrence of any
Default or Event of Default unless the Collateral Agent shall have received
written notice from the Administrative Agent, a Lender, or the Borrower
referring to

 

112

 

this
Agreement, describing such Default or Event of Default and stating that such
notice is a “Notice of Default”. If the Collateral Agent receives any such
notice of the occurrence of a Default or an Event of Default, it shall give
notice thereof to the Administrative Agent and the Lenders. The Collateral
Agent shall take such action with respect to such Default or Event of Default,
and such action on behalf of the Secured Parties under any other Loan Document
as may be requested by the Majority Lenders; provided, however,
that unless and until the Collateral Agent has received any such request, the
Collateral Agent may (but shall not be obligated to) take such action, or refrain
from taking such action, with respect to such Default or Event of Default or
other Loan Document as it shall deem advisable or in the best interest of the
Lenders.

 

Section 12.6                                Credit Decision. Each Lender
acknowledges that none of the Agents or any of their respective officers,
directors, employees, agents, advisors, attorneys-in-fact or Affiliates has
made any representation or warranty to it, and that no act by any of the Agents
hereafter taken, including any review of the Projects or of the affairs of CSSW
Parent, the Borrower and its Subsidiaries shall be deemed to constitute any
representation or warranty by any Agent or any of their respective officers,
directors, employees, agents, advisors, attorneys-in-fact or Affiliates to any
Lender. Each Lender represents to the Agents that it has, independently and
without reliance upon any Agent or any of their respective officers, directors,
employees, agents, advisors, attorneys-in-fact or Affiliates and based on such
documents and information as it has deemed appropriate, made its own appraisal
of and investigation into the business, prospects, operations, Property,
financial and other condition and creditworthiness of CSSW Parent, the
Borrower, its Subsidiaries, the Projects, the value of and title to any
Collateral, and all applicable bank regulatory Requirements of Law relating to
the transactions contemplated hereby, and made its own decision to enter into
this Agreement and to extend credit to the Borrower hereunder. Each Lender also
represents that it will, independently and without reliance upon any Agent or
any of their respective officers, directors, employees, agents, advisors,
attorneys-in-fact or Affiliates and based on such documents and information as
it shall deem appropriate at the time, continue to make its own credit
analysis, appraisals and decisions in taking or not taking action under this
and the other Loan Documents, and to make such investigations as it deems
necessary to inform itself as to the business, prospects, operations, Property,
financial and other condition and creditworthiness of CSSW Parent, the
Borrower, its Subsidiaries and the Projects. Except for notices, reports and
other documents expressly required pursuant to any Loan Document to be
furnished to the Lenders by the Agents, the Agents shall not have any duty or
responsibility to provide any Lender with any credit or other information
concerning the business, prospects, operations, Property, financial and other
condition or creditworthiness of the Projects, of CSSW Parent, of the Borrower
or its Subsidiaries, which may come into the possession of any Agent or any of
their respective officers, directors, employees, agents, advisors,
attorneys-in-fact or Affiliates.

 

Section 12.7                                Indemnification
of Agents.

 

(a)                      Whether or not
the transactions contemplated hereby are consummated, the Lenders shall
indemnify upon demand each Agent or any of their respective officers,
directors, employees, agents, advisors, attorneys-in-fact or Affiliates (to the
extent not reimbursed by or on behalf of the Borrower and without limiting the
obligation of the Borrower to do so), pro
rata in accordance with the aggregate principal amount of the Term

 

113

 

Loans
held by such Lender from and against any and all Indemnified Liabilities; provided,
however, that no Lender shall be liable for the payment to any Agent or
any of their respective officers, directors, employees, agents, advisors,
attorneys-in-fact or Affiliates of any portion of such Indemnified Liabilities
resulting solely from such Person’s fraud, gross negligence or willful
misconduct.

 

(b)                     The
undertakings of the Lenders in this Section 12.7 shall survive the
payment of all Obligations hereunder and the resignation or replacement of any Agent.

 

(c)                      To the extent
permitted by applicable Requirement of Law, no party shall assert, and each
party hereby waives, any claim against any Agent or any of their respective
officers, directors, employees, agents, advisors, attorneys-in-fact or Affiliates,
on any theory of liability, for special, indirect, consequential or punitive
damages (as opposed to direct or actual damages) arising out of, in connection
with, or as a result of, this agreement, any Loan Document or any agreement or
instrument contemplated hereby, or any Term Loan or the use of proceeds
thereof, except for claims in respect of a breach of the confidentiality
provisions contained herein or the gross negligence or willful misconduct of
any Agent or any of their respective officers, directors, employees, agents,
advisors, attorneys-in-fact or Affiliates.

 

Section 12.8                                Agents in
Individual Capacities. Each of the Agents and their respective
Affiliates may make loans to, issue letters of credit for the account of,
accept deposits from, acquire equity interests in and generally engage in any
kind of banking, trust, financial advisory, underwriting or other business with
CSSW Parent, the Borrower or their respective Affiliates as though such Agent
were not an Agent hereunder and without notice to or consent of the Lenders.
The Lenders acknowledge that, pursuant to such activities, an Agent or its
Affiliates may receive information regarding CSSW Parent, the Borrower or their
respective Affiliates (including information that may be subject to confidentiality
obligations in favor of CSSW Parent, the Borrower or such Affiliates) and
acknowledge that the Agents shall be under no obligation to provide such
information to them. Any Agent which is also a Lender hereunder shall have the
same rights and powers under this Agreement as any other Lender and may
exercise the same as though it were not an Agent, and the terms “Lender” and
“Lenders” shall include such Agent in its individual capacity.

 

Section 12.9                                Successor
Agents.

 

(a)                      Subject to the
appointment and acceptance of a successor as provided below, each of the
Administrative Agent and the Collateral Agent may resign at any time by giving
notice thereof to the other Agent, the Lenders and the Borrower, and each such
Agent may be removed at any time with or without cause by the Majority Lenders.
So long as no Default or Event of Default has occurred and is continuing, the
Borrower may make a request in writing to the Lenders for the removal of an
Agent, stating its reasons for such requested removal, but such removal shall
in any event require the affirmative vote of the Majority Lenders in their sole
and absolute discretion. Upon any such resignation or removal, the Majority
Lenders shall have the right, with the consent of the Borrower (such consent
not to be unreasonably withheld, delayed or conditioned) to appoint a successor
to the applicable Agent. If no successor Agent shall have been appointed by the
Majority Lenders, and shall have

 

114

 

accepted
such appointment within 30 days after the resigning Agent’s giving of notice of
resignation or the giving of any notice of removal of any such Agent, then the
resigning Agent or Agent being removed, as the case may be, may appoint a
successor to such Agent. If the Collateral Agent shall resign or be removed
pursuant to the foregoing provisions, upon the acceptance of appointment by a
successor Collateral Agent hereunder, the former Collateral Agent shall deliver
all Collateral then in its possession to the successor Collateral Agent. Upon
the acceptance of its appointment as a successor Agent hereunder, such
successor Agent shall thereupon succeed to and become vested with all the
rights, powers, privileges and duties of such resigning or removed Agent, and
such resigning Agent or removed Agent shall be discharged from its duties and
obligations hereunder.

 

(b)                     After any
Agent’s resignation or removal, the provisions of this Article 12
and of Sections 13.1 and 13.2 shall inure to its benefit as to
any actions taken or omitted to be taken by it while it was an Agent.

 

Section 12.10                          Registry. The Borrower
hereby designates the Administrative Agent, and the Administrative Agent
agrees, to serve as the Borrower’s agent, solely for purposes of this Section 12.10,
to maintain a register at the Notice Office (the “Register”) on which it
will record the Term Loans made by each of the Lenders (including (i) the
names and addresses of all Lenders, (ii) the interests of each Lender and
(iii) the principal amounts of the Term Loans owing to each Lender from
time to time (including the amount of PIK Interest thereon and any stated
interest thereon) and each repayment in respect of the principal amount of the
Term Loans of each Lender. Failure to make any such recordation, or any error
in such recordation shall not affect the Borrower’s obligations in respect of
such Term Loans. The entries in the Register shall be conclusive, in the
absence of manifest error, and the Borrower, the CSSW Parent, the
Administrative Agent and the Lenders may treat each Person whose name is
registered therein for all purposes as a party to this Agreement. With respect
to the assignment by any Lender to an assignee pursuant to Section 13.11,
the rights to the principal of, and interest on, any Term Loans made shall not
be effective until such transfer is recorded on the Register maintained by the
Administrative Agent with respect to ownership of such Term Loans, and prior to
such recordation all amounts owing to the transferor with respect to such Term
Loans shall remain owing to the transferor. The registration of an assignment
or transfer of all or part of any Term Loans shall be recorded by the
Administrative Agent on the Register only upon the acceptance by the
Administrative Agent of a properly executed and delivered Assignment and
Acceptance pursuant to Section 13.11. Coincident with the delivery
of such an Assignment and Acceptance to the Administrative Agent for acceptance
and registration of assignment or transfer of all or part of any Term Loans, or
as soon thereafter as practicable, the assigning or transferor Lender shall
surrender the Term Note evidencing such Term Loans, and thereupon one or more
new Term Notes in the same aggregate principal amount shall be issued to the
assigning or transferor Lender and/or the new Lender. The Register shall be
available for inspection by the Borrower or any Lenders at any reasonable time,
from time to time, upon reasonable prior notice.

 

Section 12.11                          Force Majeure. The
Administrative Agent shall not incur any liability for not performing any act
or fulfilling any duty, obligation or responsibility hereunder by reason of any
occurrence beyond the control of the Administrative Agent (including but not
limited to any act or provision of any present or future law or regulation or
governmental authority, any act of God or war, civil unrest, local or national
disturbance or disaster, any act of terrorism, or the

 

115

 

 

unavailability of the
Federal Reserve Bank wire or facsimile or other wire or communication facility.

 

Section 12.12                          Reliance by
Administrative Agent. Whenever reference is made in this Agreement to
any action by, consent, designation, specification, requirement or approval of,
notice, request or other communication from, or other direction given or action
to be undertaken or to be (or not to be) suffered or omitted by the
Administrative Agent or to any election, decision, opinion, acceptance, use of
judgment, expression of satisfaction or other exercise of discretion, rights or
remedies to be made (or not to be made) by the Administrative Agent, it is
understood that in all cases the Administrative Agent shall be fully justified
in failing or refusing to take any such action under this Agreement if it shall
not have received such advice or concurrence of the Majority Lenders, as it
deems appropriate. This provision is intended solely for the benefit of the
Administrative Agent and its successors and permitted assigns and is not
intended to and will not entitle the other parties hereto to any defense, claim
or counterclaim, or confer any rights or benefits on any party hereto.

 

ARTICLE 13

 

MISCELLANEOUS

 

Section 13.1                                Costs and
Expenses. CSSW Parent and the Borrower, jointly and
severally shall, whether or not the transactions contemplated hereby are
consummated and whether or not any of the following are incurred before or
after the applicable Closing Date, pay, within ten (10) Business Days
after demand, (a) in accordance with the terms of the Engagement Letter,
all properly documented reasonable costs and expenses of the Agents and the
Initial Lenders in connection with the preparation, negotiation, execution, due
diligence, delivery, filing and recording of this Agreement and the other Loan
Documents and any other documents which may be delivered in connection herewith
or therewith, including without limitation Attorney Costs and consultants fees
and expenses approved by the Borrower of the Administration Agent and the
Initial Lenders, (b) all properly documented reasonable costs and expenses
(including Attorney Costs) of the Agents and the Initial Lenders in connection
with the administration of this Agreement and the other Loan Document,
including in connection with any amendment, modification, waiver or consent
with respect to any provision contained in this Agreement or any other Loan
Document, and (c) all properly documented reasonable costs and expenses
(including Attorney Costs) in connection with (i) any and all amounts
which the Agents and the Lenders have incurred in connection with any Event of
Default under this Agreement or any other Loan Document and (ii) any and
all amounts which any Agent or Lender has incurred in connection with the enforcement
or attempted enforcement of, or the investigation or preservation of any rights
or remedies under, this Agreement or any other Loan Document. In addition,
without duplication of amounts paid as Other Taxes pursuant to Section 4.5(c),
CSSW Parent and the Borrower, jointly and severally, shall pay any and all
stamp and other taxes and fees payable or determined to be payable in
connection with the execution, delivery, filing and recording of this
Agreement, the other Loan Documents, or any other document which may be
delivered in connection with this Agreement, and agree to hold the Secured
Parties harmless from and against any and all liabilities with respect to or
resulting from any delay by CSSW Parent or the Borrower in paying or omission
to pay such taxes and fees, provided that CSSW Parent and the Borrower
shall not be responsible for any penalties, interest and expenses relating to
such taxes

 

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and fees that are determined
by a court of competent jurisdiction in a final and non-appealable order to
have arisen from fraud, gross negligence or willful misconduct of the Secured
Parties.

 

Section 13.2                                Indemnity.  Whether or not the transactions contemplated
hereby are consummated:

 

(a)                                  CSSW Parent and
the Borrower, jointly and severally, shall pay, indemnify, save and hold each
Secured Party and each of their respective officers, directors, employees,
counsel, agents and attorneys-in-fact and Affiliates (each, an “Indemnified
Person”) harmless from and against any and all liabilities, obligations,
losses, damages, penalties, claims, actions, judgments, suits, costs, charges,
expenses or disbursements (including Attorney Costs) of any kind or nature
whatsoever which may at any time (including at any time following repayment of
the Term Loans or the termination, resignation or replacement of any Agent or
any Lender) be imposed on, incurred by or asserted against any such Person in
any way relating to, or arising out of, this Agreement or any other Loan Document,
including the Security Documents and any other document or instrument
contemplated by or referred to herein or therein, or the transactions
contemplated hereby and thereby, or any action taken or omitted by any such
Person under or in connection with any of the foregoing, including with respect
to the exercise by any Secured Party of any of its respective rights or
remedies under any of the Loan Documents, and any investigation, litigation or
proceeding (including any bankruptcy, insolvency, reorganization or other
similar proceeding or appellate proceeding) related to this Agreement or any
other Loan Document or the Term Loans, or the use of the proceeds thereof,
whether or not any Indemnified Person is a party thereto (all the foregoing,
collectively, the “Indemnified Liabilities”); provided that
Indemnified Liabilities shall not include Taxes governed by Section 4.5
and shall not include Excluded Taxes, and neither CSSW Parent nor the Borrower
shall have any obligation hereunder to any Indemnified Person with respect to
Indemnified Liabilities determined by a court of competent jurisdiction in a
final and non-appealable order to have arisen from the fraud, gross negligence
or willful misconduct of such Indemnified Person.

 

(b)                                 Environmental
Indemnity. Without in any way limiting the generality of the
other provisions contained in this Section 13.2, CSSW Parent and
the Borrower, jointly and severally, agree to defend, protect, indemnify, save
and hold harmless each Indemnified Person, whether as beneficiary of any of the
Security Documents, as a mortgagee in possession, or as successor-in-interest
to CSSW Parent or the Borrower, by foreclosure deed or deed in lieu of
foreclosure, or otherwise, from and against any and all liabilities,
obligations, losses, damages (including foreseeable and unforeseeable
consequential damages and punitive claims), penalties, fees, claims, actions,
judgments, suits, costs, disbursements (including, without limitation, Attorney
Costs and consultants’ fees and disbursements) and expenses (collectively, “Losses”)
of any kind or nature whatsoever that may at any time be incurred by, imposed
on, asserted or awarded against any such Indemnified Person directly or
indirectly, based on, or arising out of, or resulting from, (A) the actual
or alleged presence of Hazardous Substances on, in, under or affecting all or
any portion of the Property whether or not the same originates or emanates from
the Property or any property adjoining or adjacent to the Property or from
properties at which any Hazardous Substances generated, stored or handled by
CSSW Parent, the Borrower or any of its Subsidiaries were released or disposed
of, (B) any Environmental Claim relating to the Projects or (C) the
exercise of any Secured Party’s rights

 

117

 

under
any of the provisions of the Security Documents (the “Indemnified Matters”),
whether any of the Indemnified Matters arise before or after foreclosure of any
of the security interests or other taking of title to all or any portion of the
Projects by any Secured Party, including, without limitation, (x) the
costs of removal or remediation of any and all Hazardous Substances from all or
any portion of the Property, any property adjoining or adjacent to the Property,
(y) additional costs required to take reasonable precautions to protect
against the release of Hazardous Substances on, in, under, from or affecting
the Property into the environment, including air, any body of water, any other
public domain or any surrounding areas, and (z) costs incurred to comply,
in connection with all or any portion of the Property or any surrounding areas,
with all applicable Environmental Laws with respect to Hazardous Substances,
except to the extent that any such Indemnified Matter is determined by a court
of competent jurisdiction in a final and non-appealable order to have arisen
from fraud, gross negligence or willful misconduct of such Indemnified Person.

 

(c)                                  Defense of
Actions. To the extent that CSSW Parent or the Borrower is unable or unwilling
to assume the defense of any claim for which indemnification is required
pursuant to the provisions of subsection (a) or (b) of this Section 13.2
(an “Indemnified Claim”) for a period of thirty (30) days following
written demand therefor by an Indemnified Person, such Indemnified Person shall
have the right to retain separate legal counsel of its own choice to conduct
the defense and all related matters in connection with any such litigation,
proceeding or other action; provided that an Indemnified Person shall
have the right to retain separate counsel whether or not CSSW Parent or the
Borrower is able or willing to assume the defense of any such litigation,
proceeding or other action if and to the extent that, in the reasonable opinion
of such Indemnified Person and its counsel, such action, suit or proceeding
involves the potential imposition of criminal liability upon such Indemnified
Person or a conflict of interest between such Indemnified Person and CSSW
Parent or the Borrower or between such Indemnified Person and another
Indemnified Person (unless such conflict of interest is waived in writing by
the affected Indemnified Persons). CSSW Parent and the Borrower, jointly and
severally, shall pay the reasonable and documented Attorney Costs (other than
with respect to disputes between Indemnified Persons), and such legal counsel
shall to the fullest extent consistent with its professional responsibilities
cooperate with CSSW Parent and the Borrower and any legal counsel designated by
CSSW Parent and the Borrower. CSSW Parent and the Borrower shall report to the
relevant Indemnified Person on the status of any such action, suit or
proceeding the defense of which it has assumed as material developments shall
occur and from time to time as requested by such Indemnified Person (but not
more frequently than once every sixty (60) days). Notwithstanding anything to
the contrary set forth herein, neither CSSW Parent nor the Borrower shall, in
connection with any one legal proceeding or claim, or separate but related
proceedings or claims arising out of the same general allegations or
circumstances in which there is no conflict of interest between the affected
Indemnified Persons or any such conflict of interest is waived in writing by
the affected Indemnified Persons, be liable to the Indemnified Persons (or any
of them) under any of the provisions hereof for Attorney Costs of more than one
separate firm of attorneys (which firm shall be selected by the Borrower with
the prior written approval of the affected Indemnified Persons, which approval
shall not be unreasonably withheld or delayed, or upon failure to so select, by
the affected Indemnified Persons).

 

118

 

(d)                                 Settlement,
Compromise. Notwithstanding anything herein to the contrary,
so long as no Default or Event of Default shall have occurred and be continuing
and provided the Indemnified Claim does not involve the potential imposition of
criminal liability upon such Indemnified Person, no Indemnified Person may
compromise or settle any Indemnified Claim involving such Indemnified Person,
the defense of which such Indemnified Person has assumed, other than at such
Indemnified Person’s own expense, without CSSW Parent’s and the Borrower’s prior
written consent (which consent shall not be unreasonably withheld or delayed); provided
that in no event shall CSSW Parent, the Borrower or any of their respective
Affiliates be required, in connection with the compromise or settlement of any
Indemnified Claim by an Indemnified Person, to admit any guilt, culpability or
complicity, or incur any civil or criminal liability, without the prior written
consent of CSSW Parent, the Borrower or such Affiliate of the Borrower, as the
case may be, which consent may be granted, conditioned or withheld in such
Person’s sole discretion. CSSW Parent and the Borrower further agrees it will
not, without the prior written consent of the affected Indemnified Persons,
settle or compromise or consent to the entry of any judgment in any pending or
threatened claim, action, suit or proceeding in respect of which
indemnification may be sought hereunder in respect of which any Indemnified
Person is or could have been a party and indemnity could have been sought
hereunder by such Indemnified Person unless such settlement, compromise or
consent includes an unconditional release of such Indemnified Person from all
liability and obligations that are the subject matter of such action.

 

(e)                                  Subrogation. Upon payment
of any Indemnified Claim by CSSW Parent or the Borrower pursuant to the
provisions hereof to or on behalf of an Indemnified Person, CSSW Parent or the
Borrower, as the case may be, without any further action, shall be subrogated
to any and all claims that such Indemnified Person may have relating thereto,
and such Indemnified Person shall reasonably cooperate with CSSW Parent or the
Borrower and give such further reasonable assurances as are necessary or
advisable to enable CSSW Parent or the Borrower, as the case may be, to vigorously
pursue such claims.

 

(f)                                    Contribution. In the event
that the indemnity provided for herein is unavailable or insufficient to hold
any Indemnified Person harmless, then, provided such payment is not prohibited
by or contrary to any Requirement of Law or public policy, CSSW Parent and the
Borrower, jointly and severally, shall contribute to amounts paid or payable by
an Indemnified Person in respect of such Indemnified Person’s Indemnified
Claims as to which the indemnity provided for herein is unavailable or
insufficient in such proportion as appropriately reflects (a) the relative
benefits received or expected to be received by CSSW Parent, the Borrower and
their respective Affiliates, on the one hand, and the Indemnified Person, on
the other hand, in respect of the transactions contemplated by this Agreement,
(b) the relative fault of CSSW Parent, the Borrower and their respective
Affiliates, on the one hand, and the Indemnified Person, on the other hand in
connection with the acts or omissions which have resulted in the Indemnified
Claim, and (c) any other equitable considerations.  CSSW Parent, the Borrower and the Secured
Parties agree that it would not be just and equitable if contributions to be
made by CSSW Parent or the Borrower, as the case may be, pursuant to this
paragraph were to be determined by any method of allocation that does not take
into account the equitable considerations referred to above.

 

119

 

(g)                                 Survival;
Defense. The obligations in this Section 13.2 shall survive
payment of the Term Loans and all other Obligations. All amounts owing under
this Section 13.2 shall be paid within 30 days after demand.

 

Section 13.3                                Notices.

 

(a)                                  All notices,
requests and other communications provided for hereunder shall be in writing
(including, unless the context expressly otherwise provides, by facsimile
transmission) and mailed or faxed to the address or facsimile number specified
for notices on the applicable signature page of this Agreement or the
Assignment and Acceptance or to such other address as shall be designated by
such party in a written notice to the other parties hereto given as provided in
this Section 13.3 (each, a “Notice Office”). The initial
Notice Office of the Administrative Agent is 45 Broadway, 14th floor, New York, New York 10006, Attn:
CMES-CSSW, LLC, Tel: 212-515-5264, Fax: 212-515-1576.

 

(b)                                 All such
notices, requests and communications (i) sent by mail will be effective
three Business Days after being deposited in the mail, postage prepaid,
(ii) sent by express courier will be effective upon delivery to or refusal
to accept delivery by the addressee, and (iii) transmitted by facsimile or
other electronic transmission will be effective when sent and confirmation
received; except that all notices and other communications to any Agent or the
Lenders shall not be effective until actually received.

 

(c)                                  CSSW Parent and
the Borrower acknowledge and agree that any agreement of the Secured Parties to
receive certain notices by telephone is solely for the convenience and at the
request of the Borrower. The Secured Parties shall be entitled to rely on the
authority of any Person purporting to be a Person authorized by CSSW Parent or
the Borrower to give such notice and the Secured Parties shall not have any
liability to the Borrower or other Person on account of any action taken or not
taken by any of the Secured Parties in good faith reliance upon such telephonic
notice.

 

(d)                                 Notices and
other communications to the Lenders hereunder may be delivered or furnished by
electronic communications pursuant to procedures approved by the Administrative
Agent; provided that the foregoing shall not apply to notices pursuant
to Article 2 unless otherwise agreed by the Administrative Agent
and the applicable Lender. The Administrative Agent or the Borrower may, in its
discretion, agree to accept notices and other communications to it hereunder by
electronic communications pursuant to procedures approved by it; provided
that approval of such procedures may be limited to particular notices or
communications.

 

(e)                                  All notices,
requests and other communications hereunder and under the other Loan Documents
shall be in the English language.

 

Section 13.4                                Benefit of
Agreement. This Agreement shall be binding upon and inure to
the benefit of and be enforceable by the respective successors and permitted
assigns of the parties hereto. Neither CSSW Parent nor the Borrower may assign
or otherwise transfer any of their respective rights or obligations under this
Agreement or any of the other Loan Documents.

 

120

 

The Lenders may only assign
their rights and obligations under this Agreement and the other Loan Documents
as provided in Section 13.11.

 

Section 13.5                                No Waiver;
Remedies Cumulative. No failure or delay on the part of any of the
Secured Parties in exercising any right, power or privilege hereunder or under
any other Loan Document and no course of dealing between CSSW Parent, the
Borrower and any Secured Party shall operate as a waiver thereof, nor shall any
single or partial exercise of any right, power or privilege hereunder or under
any other Loan Document preclude any other or further exercise thereof or the
exercise of any other right, power or privilege hereunder or thereunder. No
notice to or demand on CSSW Parent or the Borrower in any case shall entitle
CSSW Parent or the Borrower to any other or further notice or demand in similar
or other circumstances or constitute a waiver of the rights of any Secured
Party to take any other or further action in any circumstances without notice
or demand. All remedies, either under this Agreement or any other Loan Document
or pursuant to any applicable Requirement of Law or otherwise afforded to any
Secured Party shall be cumulative and not alternative.

 

Section 13.6                                No Third Party
Beneficiaries. The agreement of each Lender to make extensions of
credit to the Borrower on the terms and conditions set forth in this Agreement
and the other Loan Documents is solely for the benefit of CSSW Parent and the
Borrower, and no other Person (including any Subsidiary of the Borrower, any
Project Participant, or any contractor, sub-contractor, supplier, worker,
carrier, warehouseman, materialman or vendor furnishing supplies, goods or
services to or for the benefit of the Borrower or any of the Projects or
receiving services from the Projects) shall have any rights hereunder against
any Secured Party with respect to the Term Loans, the proceeds thereof or
otherwise.

 

Section 13.7                                Reinstatement. To the extent
that any Secured Party receives any payment by or on behalf of the Borrower,
which payment or any part thereof is subsequently invalidated, declared to be
fraudulent or preferential, set aside or required to be repaid to the Borrower
or to its estate, trustee, receiver, custodian or any other party under any
Debtor Relief Law or otherwise, then to the extent of the amount so required to
be repaid, the obligation or part thereof which has been paid, reduced or
satisfied by the amount so repaid shall be reinstated by the amount so repaid
and shall be included within the Obligations as of the date such initial
payment, reduction or satisfaction occurred.

 

Section 13.8                                Accredited
Investor. Each Initial Lender represents and warrants to the
Borrower that such Initial Lender is an “accredited investor” as defined in
Regulation D of the Securities Act of 1933, as amended and under National
Instrument 45-106 (Resale of Securities).

 

Section 13.9                                Counterparts. This
Agreement may be executed in any number of counterparts and by the different
parties hereto on separate counterparts, each of which when so executed and
delivered shall be an original, but all of which shall together constitute one
and the same instrument. Delivery of an executed signature page of this
Agreement by email or facsimile transmission shall be effective as delivery of
a manually executed counterpart thereof.

 

121

 

Section 13.10                          Amendment or
Waiver.

 

(a)                                  No provision of
this Agreement or any other Loan Document may be amended, supplemented,
modified or waived, except by a written instrument signed by the Majority
Lenders and CSSW Parent, the Borrower and, if applicable, each other Guarantor
(as defined in the Guarantee and Security Agreement) (but only if CSSW Parent,
the Borrower or such Guarantor is a party thereto). Notwithstanding the
foregoing provisions, no such waiver and no such amendment, supplement or
modification shall (i) postpone or delay the Maturity Date, without the
prior written consent of each Lender affected thereby, or postpone or delay any
date fixed by this Agreement or any other Loan Document for any payment of
principal, interest or other amounts due to any Lender hereunder or under any
other Loan Document, without the prior written consent of each Lender affected
thereby, (ii) reduce the principal of, or the rate or amount of interest
or Call Premiums specified in this Agreement on, the Term Loans of any Lender,
without the prior written consent of each Lender affected thereby,
(iii) release all or substantially all of the Collateral or the Guarantors
except as shall be otherwise provided in any Security Document or other Loan
Document or consent to the assignment or transfer by the Borrower of any of its
respective obligations under this Agreement or any other Loan Document, without
the prior written consent of each Lender, (iv) amend, modify or waive any
provision of this Section 13.10, without the prior written consent
of each Lender, (v) amend, modify or waive any provision of Article 12
or any other provision of any Loan Document that affects the Agents without the
written consent of the applicable Agent or (vi) reduce the percentage
specified in or otherwise amend the definition of Majority Lenders or any other
provision specifying the number or percentage of Lenders required to approve or
consent to any action, without the prior written consent of each Lender.

 

(b)                                 Any waiver and
any amendment, supplement or modification made or entered into in accordance
with Section 13.10(a)  shall be binding upon CSSW Parent, the
Borrower, the Guarantors, the Agents and the Lenders.

 

Section 13.11                          Assignments,
Participations, etc.

 

(a)                                  Subject to
compliance with the following sentence, any Lender may at any time assign to
one or more Eligible Assignees that are not Affiliates of the Borrower (each,
an “Assignee” and “Successor Lender”) all or any part of any Term
Loans and the other rights and obligations of such Lender hereunder and under
the other Loan Documents; provided that (i) except with respect to
an assignment by a Lender to an entity that is an Affiliate of such Lender,
another Lender or a Related Fund, (x) the prior written consent of the
Administrative Agent shall be required for such assignment and (y) so long
as no Event of Default has occurred and is continuing, the prior written
consent of the Borrower shall be required for such assignment (which consent
shall not be unreasonably delayed, withheld or conditioned), (ii) the
Initial Lenders’ obligation to fund the Subsequent Loan may not be assigned
without the Borrower’s written consent to be granted in the Borrower’s sole
discretion and (iii) after acceleration pursuant to Section 11.3,
any Initial Lender, Assignee or Successor Lender may assign to any Person. Any
assignment permitted by the previous sentence must comply with the following
requirements: (A) each such assignment by a Lender of its Term Loans or
its Term Notes shall be made in such a manner so that the same portion of its
Term Loans or its Term Notes is assigned to the Assignee; (B) in the case
of an assignment of any part of a Term

 

122

 

Loan
to any Assignee, such assignment shall not be for an amount less than
$10,000,000 or a higher integral multiple of $1,000,000 in excess thereof (or
100% of the assigning Lender’s remaining Term Loans) in each instance; and
(C) the Borrower and the Agents may continue to deal solely and directly
with the assigning Lender in connection with the interest so assigned until
(1) written notice of such assignment, together with payment instructions,
addresses, contact information and related information and any required tax
forms with respect to the Assignee, shall have been given to the Borrower and
the Administrative Agent by such assigning Lender and the Assignee,
(2) the assigning Lender or Assignee has paid to the Administrative Agent
a processing fee in the amount of $3,500 and (3) the assigning Lender
shall have delivered to the Borrower and the Administrative Agent an Assignment
and Acceptance substantially in the form of Exhibit F hereto (an “Assignment
and Acceptance”) with respect to such assignment from the assigning Lender.

 

(b)                                 From and after
the date that the Administrative Agent notifies the assigning Lender and the
Borrower that it has received (and provided its consent with respect to, if
required) an executed Assignment and Acceptance and payment of the
above-referenced processing fee and the Borrower has provided its consent to
such assignment, if required (such consent not to be unreasonably delayed,
withheld or conditioned), (i) the Assignee thereunder shall be a party
hereto and shall have the rights and obligations of a Lender hereunder and
under the other Loan Documents, and this Agreement shall be deemed to be
amended to the extent, but only to the extent, necessary to effect the addition
of the Assignee, and any reference to the assigning Lender hereunder or under
the other Loan Documents shall thereafter refer to such Lender and to the
Assignee to the extent of their respective interests, and (ii) the
assigning Lender shall, to the extent that rights and obligations hereunder and
under the other Loan Documents have been assigned by it pursuant to such
Assignment and Acceptance, relinquish its rights and be released from its
obligations under the Loan Documents but shall continue to be entitled to the
benefits of Section 2.8, Section 4.5, Section 13.1
and Section 13.2.  At the
time of each assignment pursuant to Section 13.11(a) to a Person
which is not already a Lender hereunder, the respective assignee Lender shall
provide to the Borrower and the Administrative Agent the appropriate Internal
Revenue Service Forms described in Section 4.5(f). Any assignment
or transfer by a Lender of rights and obligations under this Agreement that
does not comply with this Section 13.11(a) and (b) shall
be treated for purposes of this Agreement as a sale by such Lender of a
participation in such rights and obligations in accordance with paragraph (d).

 

(c)                                  Within fifteen
(15) days after the Borrower has received a notice from the Administrative
Agent that it has received an executed Assignment and Acceptance and payment of
the processing fee, if requested by the Assignee or the assigning Lender, the
Borrower shall execute and deliver to the Administrative Agent new Term Notes
evidencing the Assignee’s assigned Term Loans and, if the assigning Lender has
retained a portion of its Term Loans, replacement Term Notes reflecting the
principal amount of the Term Loans retained by the assigning Lender (such Term
Notes to be in exchange for, but not in payment of, the Term Notes held by such
Lender).

 

(d)                                 Any Lender (the
“Originating Lender”) may at any time sell to one or more commercial
banks or other Persons not Affiliates of the Borrower (a “Participant”)
participating interests in any Term Loans; provided, however,
that (i) each such Participant

 

123

 

shall
be an Eligible Assignee, (ii) the Originating Lender’s obligations under
this Agreement shall remain unchanged, (iii) the Originating Lender shall
remain solely responsible for the performance of such obligations,
(iv) the Borrower and the Agents shall continue to deal solely and
directly with the Originating Lender in connection with the Originating
Lender’s rights and obligations under this Agreement and the other Loan
Documents, and (v) no Lender shall transfer or grant any participating
interest under which the Participant shall have rights to approve any amendment
to, or any consent or waiver with respect to, this Agreement or any other Loan
Document, except to the extent such amendment, consent or waiver would require
consent of any affected Lender or all of the Lenders as described in Section 13.10.  In the case of any such participation, the
Participant shall not have any rights under this Agreement or any of the other
Loan Documents (the Participant’s rights against the Originating Lender in
respect of such Participation to be those set forth in the agreement executed
by the Originating Lender in favor of the Participant relating thereto) and all
amounts payable by the Borrower hereunder shall be determined as if such Lender
had not sold such participation.

 

(e)                                  A Participant
shall not be entitled to receive any greater payment with respect to a
participation sold to such Participant than the applicable Lender would have
been entitled to receive under Section 2.8 and 4.5, unless
the sale of the participation to such Participant is made with the Borrower’s
prior written consent. A Participant shall not be entitled (i) to the
benefits of Section 4.5 that the applicable Lender is entitled to
unless such Participant complies with Section 4.5(f), or
(ii) with respect to a Participation that has been consented to by the
Borrower pursuant to the previous sentence, to receive any greater payment with
respect to the participation sold to such Participant than the applicable
Lender would have been entitled to receive under Section 4.5 unless
the Participant (x) would be entitled to amounts under Section 4.5
if it were treated as an assignee as of the date of such participation and
(y) complies with Section 4.5(f) by providing to the Borrower
and the Administrative Agent each form and certificate that would be required
to be provided to them pursuant to Section 4.5(f) as if the
Participant was a Lender.

 

(f)                                    Subject to Section 13.11(a)
hereof, any Lender may pledge or assign all or any portion of the Term Loans
held by it as collateral security to secured obligations of the Lender and this
Section 13.11 shall not apply to any such pledge or assignment. No
such pledge or assignment shall release the assigning Lender from its
obligations hereunder or substitute any such pledge or assignee for such Lender
as a party hereto.

 

(g)                                 In the event
that any Lender sells a participation in a Term Loan, such Lender shall, acting
solely for this purpose as an agent of the Borrower, maintain a register on
which it enters the name and address of all Participants in the Term Loans held
by it and the principal amount (including the amount of PIK Interest and any
stated interest thereon) of the portion of the Loan which is the subject of the
participation (the “Participation Register”) and each repayment in
respect of the principal amount of the portion of the Term Loan held by each
Participant. A Term Loan may be participated in whole or in part only by
registration of such participation on the Participation Register. Any transfer
of such participation may be effected only by the Registration of such transfer
on the Participation Register. The entries in the Participation Register shall
be conclusive absent manifest error and such Lender shall treat such
participants whose name is recorded in the Participation Register as the owner
of such participation for all purposes of this Agreement, notwithstanding any
notice to the contrary.

 

124

 

The
Participation Register shall be available for inspection by the Borrower or the
Administrative Agent at any reasonable time upon reasonable prior notice.

 

Section 13.12                          Survival. All
indemnities set forth herein, including, without limitation, Section 13.2,
shall survive the execution and delivery of this Agreement and the Term Notes
and the making and repayment of the Term Loans. In addition, each
representation and warranty made or deemed to be made pursuant hereto shall
survive the making of such representation and warranty.

 

Section 13.13                          WAIVER OF JURY
TRIAL. EACH OF THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY AND
INTENTIONALLY WAIVES THE RIGHT ANY OF THEM MAY HAVE TO A TRIAL BY JURY IN
RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER OR IN CONNECTION
WITH, THIS AGREEMENT, THE TERM NOTES OR ANY OTHER LOAN DOCUMENT, OR ANY COURSE
OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN) OR
ACTIONS OF ANY PARTY RELATING HERETO OR THERETO. THIS PROVISION IS A MATERIAL
INDUCEMENT FOR THE SECURED PARTIES TO ENTER INTO THIS AGREEMENT.

 

Section 13.14                          Right of
Set-off. In addition to any rights now or hereafter granted under applicable
Requirements of Law or otherwise, and not by way of limitation of any such
rights, upon the occurrence and during the continuance of an Event of Default,
each Lender is hereby authorized at any time or from time to time, without
presentment, demand, protest or other notice of any kind to the Borrower or to
any other Person, any such notice being hereby expressly waived, to set off and
to appropriate and apply any and all deposits (general or special) and any
other Indebtedness at any time held or owing by such Lender (including without
limitation by branches and agencies of any Lender wherever located), to or for
the credit or the account of the Borrower against and on account of the
Obligations or liabilities of the Borrower to such Lender under this Agreement
or any of the other Loan Documents, including all claims of any nature or
description arising out of or connected with this Agreement or any other Loan
Document, irrespective of whether such Lender shall have made any demand
hereunder and although said Obligations, liabilities or claims, or any of them,
shall be contingent or unmatured.

 

Section 13.15                          Severability. Any provision
hereof which is prohibited or unenforceable in any jurisdiction shall, as to
such jurisdiction, be ineffective to the extent of such prohibition or
unenforceability without invalidating the remaining provisions hereof and
without affecting the validity or enforceability of any provision in any other
jurisdiction.

 

Section 13.16                          Domicile of
Loans. Each Lender may transfer and carry its Term Loans at, to or for the
account of any office, Subsidiary or Affiliate of such Lender.

 

Section 13.17                          Limitation of
Recourse. There shall be full recourse to CSSW Parent and
the Borrower and to all of their respective assets for the liabilities of CSSW
Parent and the Borrower under this Agreement and the other Loan Documents for
the Obligations, but in no event shall the Parent or any officer, director or
holder of any equity interest in CSSW Parent, the Borrower or the Parent be
personally liable or obligated for such liabilities and Obligations, except as
it has specifically agreed to in any Loan Document to which it is a party.
Nothing

 

125

 

contained herein shall
affect or diminish any rights of any Person against any other Person for such
other Person’s fraud, gross negligence or willful misconduct.

 

Section 13.18                          Governing Law;
Submission to Jurisdiction.

 

(a)                                  THIS AGREEMENT
AND EACH OF THE OTHER LOAN DOCUMENTS (UNLESS SUCH DOCUMENT EXPRESSLY STATES
OTHERWISE THEREIN) SHALL BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE
LAW OF THE STATE OF NEW YORK.

 

(b)                                 Each party
hereto hereby submits to the nonexclusive jurisdiction of the United States
District Court for the Southern District of New York and of any New York State
court sitting in New York City for the purposes of all legal proceedings arising
out of or relating to this Agreement, any other Loan Document or the
transactions contemplated hereby or thereby. Each party hereby irrevocably
waives, to the fullest extent permitted by applicable Requirement of Law, any
objection which it may now or hereafter have to the laying of the venue of any
such proceeding brought in such a court and any claim that any such proceeding
brought in such a court has been brought in an inconvenient forum. Nothing
herein shall affect the right to serve process in any other manner permitted by
applicable Requirements of Law or any right to bring legal action or
proceedings in any other competent jurisdiction, including judicial or
non-judicial foreclosure of real property interests which are part of the
Collateral. To the extent permitted by applicable Requirements of Law, each
party hereto further irrevocably agrees to the service of process of any of the
aforementioned courts in any suit, action or proceeding by the mailing of
copies thereof by certified mail, postage prepaid, return receipt requested, to
such party at the address referenced in Section 13.3, such service
to be effective upon the date indicated on the postal receipt returned from
such party.

 

Section 13.19                          Complete
Agreement. THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS
REPRESENT THE FINAL AND COMPLETE AGREEMENT OF THE PARTIES HERETO, AND ALL PRIOR
NEGOTIATIONS, REPRESENTATIONS, UNDERSTANDINGS, WRITINGS AND STATEMENTS OF ANY
NATURE ARE HEREBY SUPERSEDED IN THEIR ENTIRETY BY THE TERMS OF THIS AGREEMENT
AND THE OTHER LOAN DOCUMENTS.

 

Section 13.20                          Confidentiality. The Secured
Parties shall keep confidential the terms and conditions (including the credit
structure and sources of revenue) of this Agreement and the Loan Documents to
which such entities are a party and shall not, and shall ensure that their
officers, directors and employees do not, disclose any such information to any
third party without the prior written consent of the Borrower unless:

 

(a)                                  such disclosure
is made in connection with any transfer or participation permitted in
accordance with the Loan Documents (and, in the case of a proposed transferee
or participant, until becoming bound by the Loan Documents such proposed
transferee or participant is otherwise bound by the provisions of this Section 13.20);
or

 

126

 

(b)                                 such disclosure
is by the Secured Parties in connection with the exercise of any remedies under
any of the Loan Documents by such parties during the occurrence and continuance
of an Event of Default; or

 

(c)                                  required to do
so by an order of a court of competent jurisdiction or any competent judicial,
governmental, supervisory or regulatory body; or

 

(d)                                 pursuant to any
Requirement of Law in accordance with which the Secured Party concerned is
required to act; or

 

(e)                                  such disclosure
is made to its auditors for the purpose of enabling them to undertake any audit
or to its legal advisers when seeking bona fide legal advice in connection with
the Loan Documents (and such auditor and/or legal adviser are bound by the
provisions of this Section 13.20); or

 

(f)                                    such disclosure
is made to any employees, directors, agents, Affiliates, accountants and other
professional advisors or to consultant, or other adviser appointed pursuant to
the Loan Documents, to the extent necessary to enable that Person to give the
advice required by the Secured Parties (and such Persons are bound by the
provisions of this Section 13.20); or

 

(g)                                 such factual
information has been published or announced by third parties in conditions free
from confidentiality or has otherwise entered the public domain without fault
on the part of the relevant party (but only to the extent of the information
which has been published, announced or otherwise entered the public domain as
described in this clause (g)), provided that, in the case of clause
(c) and clause (d) above, if such Secured Party is permitted to by
any Requirements of Law in accordance with which the Secured Party is
accustomed to act, either not less that five (5) days’ notice of the
proposed disclosure has been given to the Borrower or (if less) whatever is the
greatest number of days that may elapse without the relevant Secured Party
infringing any obligation pursuant to the relevant law or regulation.

 

Notwithstanding
the foregoing, without the Borrower’s consent, any Secured Party may disclose
(i) the name of the Parent, (ii) the aggregate amount and type of the
financing evidenced hereby, (iii) the Secured Party’s role in such
financing, (iv) the applicable Closing Dates, (v) the type of project
(i.e., a wind project), (vi) the country in which the Projects are located
(i.e., U.S.), (vii) the sector of the Projects, (viii) the legal
adviser to the Lenders, (ix) the currency, amount, instrument type and
tenor of the Term Loans and (x) the names, titles and allocations to each
Lender.

 

Without
limiting the generality of the foregoing, any press release or other similar
release of information by the Secured Parties or any of their agents,
employees, etc. with respect to the Loan Documents is subject to the prior
written approval of the Borrower.

 

A
Secured Party’s obligations under this Section 13.20 shall survive
the sale, assignment, participation or transfer by such party for a period of
two (2) years from the date of such sale, assignment, participation or
transfer.

 

127

 

Section 13.21                          Termination and
Release of Liens.

 

(a)                                  Upon the
indefeasible payment and performance in full (in cash) of any and all
Obligations (other than inchoate Obligations) of CSSW Parent and the Borrower
and the other Guarantors to the Secured Parties under the Loan Documents,
whether due or to become due, direct or indirect, absolute or contingent, and
howsoever evidenced, held or acquired, this Agreement and the other Loan
Documents shall terminate and be of no further force and effect (other than the
provisions hereof that by their express terms survive such termination) and the
Administrative Agent and Collateral Agent shall execute and deliver such
documentation confirming such termination as may reasonably be requested by the
Borrower and the Collateral shall be released from the Liens of the Security
Documents and the guarantees thereunder terminated, all without delivery of any
instrument or performance of any act by any Person.

 

(b)                                 Notwithstanding
anything to the contrary contained herein or in any other Loan Document, the
Agents are hereby irrevocably authorized by each Lender (without requirement of
notice to or consent of any Lender) to take any action requested by the
Borrower having the effect of releasing any Collateral or guarantee obligations
(i) to the extent necessary to permit consummation of any transaction
permitted by the Loan Documents or that has been consented to by the Majority
Lenders or (ii) the circumstances described in Section 13.21(a).

 

(c)                                  Upon the
incurrence or issuance of any Qualified Tax Equity Financing or any Steel Winds
Permitted Project Indebtedness, in each case with respect to the Steel Winds
Project (including by either of the Steel Winds Companies) on and after the
Subsequent Closing Date and so long as the Net Cash Proceeds thereof have been
applied in accordance with Section 4.1(a) to the extent the Steel
Winds Companies have granted Collateral pursuant to Section 9.22 of
this Agreement and Section 8.14 of the Guarantee and Security
Agreement, the Collateral granted by the Steel Winds Companies shall be
released from the Liens created by the Security Documents, and the Security
Documents shall no longer be applicable to the Steel Winds Companies and all
obligations (other than those that expressly survive such release) of the Steel
Winds Companies (including the guarantee obligations of the Steel Winds Holding
Company) under the Security Documents shall terminate, all without delivery of
any instrument or performance of any act by any Person.

 

Section 13.22                          USA Patriot Act. The
Administrative Agent and the Lenders subject to the USA PATRIOT Act hereby
notify CSSW Parent and the Borrower that, pursuant to the requirements of the
USA PATRIOT Act, the Administrative Agent and such Lenders are required to
obtain, verify and record information that identifies CSSW Parent and the
Borrower, which information includes the name and address of CSSW Parent and
the Borrower and other information that will allow the Administrative Agent and
each Lender to identify CSSW Parent and the Borrower in accordance with the USA
PATRIOT Act.

 

Section 13.23                          Acknowledgements. Each of CSSW
Parent and the Borrower hereby acknowledges that:

 

128

 

(a)                                  it has been
advised by counsel in the negotiation, execution and delivery of this Agreement
and the other Loan Documents;

 

(b)                                 neither of the
Agents nor any Lender has any fiduciary relationship with or duty to CSSW
Parent or the Borrower arising out of or in connection with this Agreement or
any of the other Loan Documents, and the relationship between the Agents and
Lenders, on one hand, and CSSW Parent and the Borrower, on the other hand, in
connection herewith or therewith is solely that of debtor and creditor; and

 

(c)                                  no joint
venture is created hereby or by the other Loan Documents or otherwise exists by
virtue of the transactions contemplated hereby among the Lenders or among CSSW
Parent, the Borrower and the Lenders.

 

[Remainder of page intentionally left blank]

 

129

 

IN
WITNESS WHEREOF, CSSW Parent, the Borrower, the Administrative Agent, the
Collateral Agent and the Initial Lenders party hereto have caused this
Agreement to be executed by their duly authorized officers as of the date first
set forth above.

 

	
   

  	
  CSSW
  PARENT:

  
	
   

  	
   

  
	
   

  	
  CSSW
  Holdings, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Evelyn Lim

  
	
   

  	
  Name:

  	
  Evelyn
  Lim

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice
  Address:

  
	
   

  	
   

  
	
   

  	
  c/o
  First Wind Energy, LLC

  
	
   

  	
  179
  Lincoln Street

  
	
   

  	
  Suite 500

  
	
   

  	
  Boston,
  MA 02111

  
	
   

  	
   

  
	
   

  	
  BORROWER:

  
	
   

  	
   

  
	
   

  	
  CSSW,
  LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Evelyn Lim

  
	
   

  	
  Name:

  	
  Evelyn
  Lim

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
  Notice
  Address:

  
	
   

  	
   

  
	
   

  	
  c/o
  First Wind Energy, LLC

  
	
   

  	
  179
  Lincoln Street

  
	
   

  	
  Suite 500

  
	
   

  	
  Boston,
  MA 02111

  

 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	
   

  	
  INITIAL
  LENDERS:

  
	
   

  	
   

  
	
   

  	
  PIP3PX
  FirstWind Debt Ltd., as Initial Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ben Hawkins

  
	
   

  	
  Name:

  	
  Ben
  Hawkins

  
	
   

  	
  Title:

  	
  Principal,
  Infrastructure Investments

  
	
   

  	
   

  
	
   

  	
  Notice
  Address:

  
	
   

  	
   

  
	
   

  	
  340
  Terrace Building, 9515 - 107 Street

  
	
   

  	
  Edmonton,
  AB T5K 2C3, Canada

  
	
   

  	
  Tel: 780.427.6468

  
	
   

  	
  Fax:
  780.422.0257

  
	
   

  	
  Attn:
  William McKenzie

  
	
   

  	
   

  
	
   

  	
  PIP3GV
  FirstsWind Debt Ltd., as Initial Lender 

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Ben Hawkins

  
	
   

  	
  Name:

  	
  Ben
  Hawkins

  
	
   

  	
  Title:

  	
  Principal,
  Infrastructure Investments

  
	
   

  	
   

  
	
   

  	
  Notice
  Address:

  
	
   

  	
   

  
	
   

  	
  340
  Terrace Building, 9515 - 107 Street

  
	
   

  	
  Edmonton,
  AB T5K 2C3, Canada

  
	
   

  	
  Tel: 780.427.6468

  
	
   

  	
  Fax:
  780.422.0257

  
	
   

  	
  Attn:
  William McKenzie

  

 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

	
   

  	
  ADMINISTRATIVE
  AGENT:

  
	
   

  	
   

  
	
   

  	
  Wells
  Fargo Bank, National Association, as 

  
	
   

  	
  Administrative
  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael Pinzon

  
	
   

  	
  Name:

  	
  Michael
  Pinzon

  
	
   

  	
  Title:

  	
  Vice
  President 

  
	
   

  	
   

  
	
   

  	
  Notice
  Address:

  
	
   

  	
   

  
	
   

  	
  45
  Broadway, 14th Floor

  
	
   

  	
  New
  York, NY 10006

  
	
   

  	
  Tel: 212-515-5264

  
	
   

  	
  Fax:
  212-515-1576

  
	
   

  	
  Attn:
  CMES-CSSW, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  COLLATERAL
  AGENT:

  
	
   

  	
   

  
	
   

  	
  Wells
  Fargo Bank, National Association, as

  Collateral Agent

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Michael Pinzon

  
	
   

  	
  Name:

  	
  Michael
  Pinzon

  
	
   

  	
  Title:

  	
  Vice
  President 

  
	
   

  	
   

  
	
   

  	
  Notice
  Address:

  
	
   

  	
   

  
	
   

  	
  45
  Broadway, 14th Floor

  
	
   

  	
  New
  York, NY 10006

  
	
   

  	
  Tel: 212-515-5264

  
	
   

  	
  Fax:
  212-515-1576

  
	
   

  	
  Attn:
  CMES-CSSW, LLC

  

 

SIGNATURE PAGE TO AMENDED AND RESTATED CREDIT AGREEMENT

 

 

 

Exhibit A

 

[FORM OF GUARANTEE AND SECURITY AGREEMENT]

 

To be attached

 

 

 

FIRST LIEN GUARANTEE AND
SECURITY AGREEMENT

 

made by

 

CSSW Holdings, LLC,

 

CSSW, LLC

 

and certain of its
Subsidiaries

 

in favor of

 

Wells Fargo Bank, National
Association,

as Collateral Agent

 

Dated as of July 17,
2009

 

 

 

2

 

Exhibit A

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Section 1.

  	
  DEFINED
  TERMS

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.1

  	
  Definitions

  	
  7

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 2.

  	
  GUARANTEE

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.1

  	
  Guarantee

  	
  13

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.2

  	
  Right
  of Contribution

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.3

  	
  No
  Subrogation

  	
  15

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.4

  	
  Amendments,
  etc. with respect to the Borrower Obligations

  	
  16

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.5

  	
  Guarantee
  Absolute and Unconditional

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.6

  	
  Reinstatement

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.7

  	
  Payments

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 3.

  	
  GRANT
  OF SECURITY INTEREST

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.1

  	
  Grant
  of Security Interest

  	
  19

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.2

  	
  Deposit
  Accounts

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 4.

  	
  REPRESENTATIONS
  AND WARRANTIES

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.1

  	
  Title;
  No Other Liens

  	
  21

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.2

  	
  Perfected
  First Priority Liens

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.3

  	
  Jurisdiction
  of Organization; Federal Identification Number; Chief Executive Office

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.4

  	
  Investment
  Property

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.5

  	
  Intellectual
  Property

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.6

  	
  Commercial
  Tort Claims

  	
  25

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 5.

  	
  COVENANTS

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.1

  	
  Delivery
  of Instruments, Certificated Securities and Chattel Paper

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.2

  	
  Maintenance
  of Perfected Security Interest; Further Documentation

  	
  26

  

 

3

 

	
   

  	
  5.3

  	
  Changes
  in Name, etc

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.4

  	
  Investment
  Property

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.5

  	
  Intellectual
  Property

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.6

  	
  Commercial
  Tort Claims

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 6.

  	
  REMEDIAL
  PROVISIONS

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.1

  	
  Grantors
  Remain Liable

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.2

  	
  Pledged
  Stock

  	
  30

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.3

  	
  Proceeds
  to be Turned Over To Collateral Agent

  	
  32

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.4

  	
  Application
  of Proceeds

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.5

  	
  Code
  and Other Remedies

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.6

  	
  Sale
  of Pledged Stock

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.7

  	
  Subordination

  	
  35

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.8

  	
  Deficiency

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 7.

  	
  THE
  COLLATERAL AGENT

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.1

  	
  Collateral
  Agent’s Appointment as Attorney-in-Fact, etc

  	
  36

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.2

  	
  Duty
  of Collateral Agent

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.3

  	
  Execution
  of Financing Statements

  	
  39

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.4

  	
  Authority
  of Collateral Agent

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.5

  	
  Collateral
  and Administrative Agent’s Duties

  	
  40

  
	
   

  	
   

  	
   

  	
   

  
	
  Section 8.

  	
  MISCELLANEOUS

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.1

  	
  Amendments
  in Writing

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.2

  	
  Notices

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.3

  	
  No
  Waiver by Course of Conduct; Cumulative Remedies

  	
  41

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.4

  	
  Enforcement
  Expenses; Indemnification

  	
  42

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.5

  	
  Successors
  and Assigns

  	
  43

  

 

4

 

	
   

  	
  8.6

  	
  Set-Off

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.7

  	
  Counterparts

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.8

  	
  Severability

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.9

  	
  Section Headings

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.10

  	
  Integration

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.11

  	
  GOVERNING
  LAW

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.12

  	
  Submission
  To Jurisdiction

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.13

  	
  Acknowledgements

  	
  45

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.14

  	
  Additional
  Grantors

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.15

  	
  Termination;
  Releases

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.16

  	
  Security
  Interest Absolute

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.17

  	
  Reinstatement

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.18

  	
  WAIVER
  OF JURY TRIAL

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.19

  	
  Intercreditor Agreement

  	
  50

  
	
   

  	
   

  	
   

  	
   

  
	
  SCHEDULES

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Schedule
  1

  	
  Pledged
  Stock

  
	
  Schedule
  2

  	
  Perfection
  Matters

  
	
  Schedule
  3

  	
  Jurisdictions
  of Organization, Federal Identification Numbers and Chief Executive Offices

  
	
  Schedule
  4

  	
  Intellectual
  Property

  
	
  Schedule
  5

  	
  Notice
  Addresses

  
	
  Schedule
  6

  	
  Commercial
  Tort Claims

  
	
  Schedule 7

  	
  Deposit Accounts and
  Securities Accounts

  
	
   

  	
   

  	
   

  	
   

  
	
  ANNEX

  
	
   

  	
   

  	
   

  	
   

  
	
  Annex
  I

  	
  Assumption
  Agreement

  

 

5

 

FIRST LIEN GUARANTEE AND SECURITY AGREEMENT

 

FIRST LIEN
GUARANTEE AND SECURITY AGREEMENT, dated as of July 17, 2009 (this “Agreement”),
made by each of the signatories hereto (together with any other entity that may
become a party hereto as provided herein, the “Grantors”), in favor of Wells
Fargo Bank, National Association, as collateral agent (in such capacity, and
together with its successors and assigns in such capacity, the “Collateral Agent”)
for the benefit of PIP3PX FirstWind Debt Ltd. and PIP3GV FirstWind Debt Ltd.
(the “Initial Lenders”) and the banks and other financial institutions or
entities (the “Other Lenders” and together with the Initial Lenders, the “Lenders”)
from time to time parties to the Credit Agreement referred to below.

 

W I T N E S S E T H:

 

WHEREAS, pursuant
to the Credit Agreement, dated as of July 17, 2009 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
by and among CSSW, LLC, as borrower (the “Borrower”),  CSSW Holdings, LLC (“CSSW Parent”), the
Initial Lenders, Wells Fargo Bank, National Association, as administrative
agent (in such capacity, and together with its successors and assigns in such
capacity, the “Administrative Agent”) and the Collateral Agent, the Initial
Lenders have severally agreed to make their respective extensions of credit to
the Borrower upon the terms and subject to the conditions set forth therein;

 

WHEREAS, the
Borrower is a member of an affiliated group of companies that includes each
other Grantor;

 

WHEREAS, the
proceeds of the extensions of credit under the Credit Agreement will be used in
part to enable the Borrower to make valuable transfers to one or more of the
other Grantors in connection with the operation of their respective businesses;

 

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WHEREAS, the
Borrower and the other Grantors are engaged in related businesses, and each
Grantor will derive substantial direct and indirect benefit from the making of
the extensions of credit under the Credit Agreement; and

 

WHEREAS, it is a
condition precedent to the obligation of the Initial Lenders to make their
respective extensions of credit to the Borrower under the Credit Agreement that
the Grantors shall have executed and delivered this Agreement to the Collateral
Agent for the ratable benefit of the Secured Parties;

 

NOW, THEREFORE, in
consideration of the premises and to induce the Agents and the Initial Lenders
to enter into the Credit Agreement and to induce the Initial Lenders to make
their respective extensions of credit to the Borrower thereunder, each Grantor
hereby agrees with the Collateral Agent, for the ratable benefit of the Secured
Parties, as follows:

 

SECTION 1.           DEFINED TERMS

 

1.1           Definitions.  (a)     Unless otherwise defined herein, terms
defined in the Credit Agreement and used herein (including in the preamble and
recitals hereto) shall have the meanings given to them in the Credit Agreement,
and the following terms are used herein as defined in the New York UCC:  Accounts, Certificated Security, Chattel
Paper, Commercial Tort Claims, Contracts, Deposit Accounts, Documents,
Equipment, General Intangibles, Instruments, Inventory, Letter-of-Credit Rights,
Proceeds, Securities Accounts and Supporting Obligations.

 

(b)           The following terms shall have the
following meanings:

 

“Administrative
Agent” shall have the meaning set forth in the recitals hereto.

 

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

 

“Borrower”
shall have the meaning set forth in the recitals hereto.

 

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“Borrower
Obligations” shall mean the collective reference to the unpaid principal of and
interest on the Term Loans and all other obligations and liabilities of the
Borrower (including, without limitation, interest accruing at the then
applicable rate provided in the Credit Agreement after the maturity of the Term
Loans and interest accruing at the then applicable rate provided in the Credit
Agreement after the filing of any petition in bankruptcy, or the commencement
of any insolvency, reorganization or like proceeding, relating to the Borrower,
whether or not a claim for post-filing or post-petition interest is allowed in
such proceeding) to the Collateral Agent, the Lenders or any other Secured
Party, whether direct or indirect, absolute or contingent, due or to become
due, or now existing or hereafter incurred, which may arise under, out of, or
in connection with, the Credit Agreement, this Agreement, the other Loan
Documents or any other document made, delivered or given in connection with any
of the foregoing, in each case whether on account of principal, interest,
reimbursement obligations, fees, indemnities, costs, expenses or otherwise
(including, without limitation, all fees and disbursements of counsel to the
Collateral Agent or to the Secured Parties that are required to be paid by the
Borrower pursuant to the terms of any of the foregoing agreements).

 

“Collateral” shall
have the meaning ascribed to such term in Section 3.1.

 

“Collateral
Account” shall mean any collateral account established by the Collateral Agent
as provided in Section 6.3 or 6.4.

 

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

 

“Contracts”
shall mean all contracts and agreements to which any Grantor is or may
hereafter become a party (in each case, whether written or oral, or third party
or intercompany), including the Material Project Documents, as the same may be
amended, supplemented or otherwise modified from time to time, including,
without limitation, (i) all

 

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rights
of any Grantor to receive moneys due and to become due to it thereunder or in
connection therewith, (ii) all rights of any Grantor to damages arising
thereunder and proceeds of any insurance, indemnity, warranty or guaranty with
respect thereto and (iii) all rights of any Grantor to perform and to
exercise all remedies thereunder.

 

“Copyrights” shall
mean (i) all copyrights arising under the laws of the United States, any
other country or any political subdivision thereof, whether registered or
unregistered and whether published or unpublished (including, without
limitation, those listed in Schedule 4), all registrations and recordings thereof,
and all applications in connection therewith, including, without limitation,
all registrations, recordings and applications in the United States Copyright
Office, and (ii) the right to obtain all renewals thereof.

 

“Copyright
Licenses” shall mean any written agreement naming any Grantor as licensor or
licensee (including, without limitation, those listed in Schedule 4), granting
any right under any Copyright, including, without limitation, the grant of
rights to manufacture, distribute, exploit and sell materials derived from any
Copyright.

 

“Credit
Agreement” shall have the meaning set forth in the recitals hereto.

 

“CSSW
Parent” shall have the meaning set forth in the recitals hereto.

 

“Deposit
Account” shall have the meaning ascribed to such term in the Uniform Commercial
Code of any applicable jurisdiction and, in any event, including, without
limitation, any demand, time, savings, passbook or like account maintained with
a depositary institution.

 

“Deposit Account
Control Agreement” shall have the meaning ascribed to such term in Section 3.2.

 

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

 

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“Guarantor
Obligations” shall mean with respect to any Guarantor, all obligations and liabilities
of such Guarantor which may arise under or in connection with this Agreement
(including, without limitation, Section 2) or any other Loan Document to
which such Guarantor is a party, in each case whether on account of guarantee
obligations, reimbursement obligations, fees, indemnities, costs, expenses or
otherwise (including, without limitation, all Attorney Costs and expenses of
the Collateral Agent or the Secured Parties that are required to be paid by
such Guarantor pursuant to the terms of this Agreement or any other Loan
Document).

 

“Guarantors”
shall mean the collective reference to each Grantor other than the Borrower.

 

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

 

“Intellectual
Property” shall mean the collective reference to all rights, priorities and
privileges relating to intellectual property, whether arising under United
States, multinational or foreign laws or otherwise, including, without
limitation, the Copyrights, the Copyright Licenses, the Patents, the Patent
Licenses, the Trademarks and the Trademark Licenses, and all rights to sue at
law or in equity for any infringement or other impairment thereof, including
the right to receive all proceeds and damages therefrom.

 

“Intercompany
Note” shall mean any promissory note evidencing loans made by any Grantor to
CSSW Parent or any of its Subsidiaries.

 

“Investment
Property” shall mean the collective reference to (i) all “investment
property” as such term is defined in Section 9-102(a)(49) of the New York
UCC and (ii) whether or not constituting “investment property” as so
defined, all Pledged Notes and all Pledged Stock.

 

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“Issuers”
shall mean the collective reference to each issuer of any Investment Property.

 

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

 

“New
York UCC” shall mean the Uniform Commercial Code as from time to time in effect
in the State of New York.

 

“Obligations”
shall mean (i) in the case of the Borrower, the Borrower Obligations, and (ii) in
the case of each Guarantor, its Guarantor Obligations.

 

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

 

“Patents”
shall mean (i) all letters patent of the United States, any other country
or any political subdivision thereof, all reissues and extensions thereof and
all goodwill associated therewith, including, without limitation, any of the
foregoing referred to in Schedule 4, (ii) all applications for letters
patent of the United States or any other country and all divisions,
continuations and continuations-in-part thereof, including, without limitation,
any of the foregoing referred to in Schedule 4, and (iii) all rights to
obtain any reissues or extensions of the foregoing.

 

“Patent
License” shall mean all agreements, whether written or oral, providing for the
grant by or to any Grantor of any right to manufacture, use or sell any
invention covered in whole or in part by a Patent, including, without
limitation, any of the foregoing referred to in Schedule 4.

 

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“Pledged
Notes” shall mean all promissory notes listed on Schedule 1, all Intercompany
Notes at any time issued to any Grantor and all other promissory notes issued
to or held by any Grantor (other than promissory notes issued in connection
with extensions of trade credit by any Grantor in the ordinary course of
business).

 

“Pledged
Stock” shall mean the Equity Interests listed on Schedule 1, together with any
other shares, stock certificates, options, interests or rights of any nature
whatsoever in respect of the Equity Interests of any Person that may be issued
or granted to, or held by, any Grantor while this Agreement is in effect.

 

“Proceeds”
shall mean all “proceeds” as such term is defined in Section 9-102(a)(64)
of the New York UCC and, in any event, shall include, without limitation, all
dividends or other income from the Investment Property, collections thereon or
distributions or payments with respect thereto.

 

“Securities
Act” shall mean the Securities Act of 1933, as amended.

 

“Subsidiary
Guarantors” shall mean after the Subsequent Closing Date, to the extent
Grantors hereunder, the collective reference to the Steel Winds Holding Company
and the Steel Winds Project Company.

 

“Trademarks”
shall mean (i) all trademarks, trade names, corporate names, company
names, business names, fictitious business names, trade styles, service marks,
logos and other source or business identifiers, and all goodwill associated
therewith, now existing or hereafter adopted or acquired, all registrations and
recordings thereof, and all applications in connection therewith, whether in
the United States Patent and Trademark Office or in any similar office or
agency of the United States, any State thereof or any other country or any
political

 

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subdivision
thereof, or otherwise, and all common-law rights related thereto, including, without
limitation, any of the foregoing referred to in Schedule 4, and (ii) the
right to obtain all renewals thereof.

 

“Trademark
License” shall mean any agreement, whether written or oral, providing for the
grant by or to any Grantor of any right to use any Trademark, including,
without limitation, any of the foregoing referred to in Schedule 4.

 

1.2           Other Definitional Provisions.  (a)  The “Interpretation, Etc.”
provisions set forth in Section 1.3 of the Credit Agreement shall apply to
this Agreement, including terms defined in the preamble and the recitals
hereto.

 

(b)           Where the context requires, terms
relating to the Collateral or any part thereof, when used in relation to a
Grantor, shall refer to such Grantor’s Collateral or the relevant part thereof.

 

SECTION 2.           GUARANTEE

 

2.1           Guarantee.  (a)  Each of the Guarantors hereby,
jointly and severally, unconditionally and irrevocably, guarantees to the
Collateral Agent, for the ratable benefit of the Secured Parties and their
respective successors, indorsees, transferees and assigns, the prompt and
complete payment and performance by the Borrower when due (whether at the
stated maturity, by acceleration or otherwise) of the Borrower Obligations.

 

(b)           Anything herein or in any other Loan
Document to the contrary notwithstanding, the maximum liability of each
Guarantor hereunder and under the other Loan Documents shall in no event exceed
the amount which can be guaranteed by such Guarantor 

 

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under
applicable federal and state laws relating to fraudulent conveyances, transfers
or the insolvency of debtors (after giving effect to the right of contribution
established in Section 2.2).

 

(c)           Each Guarantor agrees that the Borrower
Obligations may at any time and from time to time exceed the amount of the
liability of such Guarantor hereunder without impairing the guarantee of such
Guarantor contained in this Section 2 or affecting the rights and remedies
of the Collateral Agent or any Secured Party hereunder.

 

(d)           Subject to Section 8.15 hereof, the
guarantee contained in this Section 2 shall remain in full force and
effect until all the Borrower Obligations and the obligations of each Guarantor
under the guarantee contained in this Section 2 shall have been satisfied
by full and final payment in cash and the Initial Term Loan Commitment and
Subsequent Term Loan Commitment shall be terminated, notwithstanding that from
time to time during the term of the Credit Agreement the Borrower may be free
from any Borrower Obligations.

 

(e)           No payment made by the Borrower, any of
the Guarantors, any other guarantor or any other Person or received or
collected by the Collateral Agent or any Secured Party from the Borrower, any
of the Guarantors, any other guarantor or any other Person by virtue of any
action or proceeding or any set-off or appropriation or application at any time
or from time to time in reduction of or in payment of the Borrower Obligations
shall be deemed to modify, reduce, release or otherwise affect the liability of
any Guarantor hereunder which shall, notwithstanding any such payment (other
than any payment made by such Guarantor in respect of the Borrower Obligations
or any payment received or collected from such Guarantor in respect of the
Borrower Obligations), remain liable for the Borrower Obligations up to the
maximum liability of such Guarantor hereunder until the Borrower Obligations
are paid in full and the Initial Term Loan Commitment and Subsequent Term Loan
Commitment are terminated.

 

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2.2           Right of Contribution.  Each Subsidiary Guarantor hereby agrees that
to the extent that a Subsidiary Guarantor shall have paid more than its
proportionate share of any payment made hereunder, such Subsidiary Guarantor
shall be entitled to seek and receive contribution from and against any other
Subsidiary Guarantor hereunder which has not paid its proportionate share of
such payment.  Each Subsidiary Guarantor’s
right of contribution shall be subject to the terms and conditions of Section 2.3.  The provisions of this Section 2.2 shall
in no respect limit the obligations and liabilities of any Subsidiary Guarantor
to the Collateral Agent and the Secured Parties, and each Subsidiary Guarantor
shall remain liable to the Collateral Agent and the Secured Parties for the
full amount guaranteed by such Subsidiary Guarantor hereunder.

 

2.3           No Subrogation.  Notwithstanding any payment made by any
Guarantor hereunder or any set-off or application of funds of any Guarantor by
the Collateral Agent or any Secured Party, no Guarantor shall be entitled to be
subrogated to any of the rights of the Collateral Agent or any Secured Party
against the Borrower or any other Guarantor or any collateral security or
guarantee or right of set-off held by the Collateral Agent or any Secured Party
for the payment of the Borrower Obligations, nor shall any Guarantor seek or be
entitled to seek any contribution or reimbursement from the Borrower or any
other Guarantor in respect of payments made by such Guarantor hereunder, until
all amounts owing to the Collateral Agent and the Secured Parties by the
Borrower on account of the Borrower Obligations are paid in full and the
Initial Term Loan Commitment and Subsequent Term Loan Commitment are terminated.  If any amount shall be paid to any Guarantor
on account of such subrogation rights at any time when all of the Borrower
Obligations shall not have been paid in full, such amount shall be held by such
Guarantor in trust for the Collateral Agent and the Secured Parties, segregated
from 

 

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other
funds of such Guarantor, and shall, forthwith upon receipt by such Guarantor,
be turned over to the Collateral Agent in the exact form received by such
Guarantor (duly indorsed by such Guarantor to the Collateral Agent, if
required), to be applied against the Borrower Obligations, whether matured or
unmatured, in such order as the Collateral Agent, at the direction of the
Majority Lenders, may determine.

 

2.4           Amendments, etc. with respect to the
Borrower Obligations.  Each Guarantor
shall remain obligated hereunder notwithstanding that, without any reservation
of rights against any Guarantor and without notice to or further assent by any
Guarantor, any demand for payment of any of the Borrower Obligations made by
the Collateral Agent or any Secured Party may be rescinded by the Collateral
Agent or such Secured Party and any of the Borrower Obligations continued, and
the Borrower Obligations, or the liability of any other Person upon or for any
part thereof, or any collateral security or guarantee therefor or right of
set-off with respect thereto, may, from time to time, in whole or in part, be
renewed, extended, amended, modified, accelerated, compromised, waived, surrendered
or released by the Collateral Agent or any Secured Party, and the Credit
Agreement and the other Loan Documents and any other documents executed and
delivered in connection therewith may be amended, modified, supplemented or
terminated, in whole or in part, as the Collateral Agent (or the Majority
Lenders or all Lenders, as the case may be) may deem advisable from time to
time, and any collateral security, guarantee or right of set-off at any time
held by the Collateral Agent or any Secured Party for the payment of the
Borrower Obligations may be sold, exchanged, waived, surrendered or
released.  Neither the Collateral Agent
nor any Secured Party shall have any obligation to protect, secure, perfect or
insure any Lien at any time held by it as security for the Borrower Obligations
or for the guarantee contained in this Section 2 or any property subject
thereto.

 

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2.5           Guarantee Absolute and
Unconditional.  Each Guarantor waives any
and all notice of the creation, renewal, extension or accrual of any of the
Borrower Obligations and notice of or proof of reliance by the Collateral Agent
or any Secured Party upon the guarantee contained in this Section 2 or
acceptance of the guarantee contained in this Section 2; the Borrower
Obligations, and any of them, shall conclusively be deemed to have been
created, contracted or incurred, or renewed, extended, amended or waived, in
reliance upon the guarantee contained in this Section 2; and all dealings
between the Borrower and any of the Guarantors, on the one hand, and the
Collateral Agent and the Secured Parties, on the other hand, likewise shall be
conclusively presumed to have been had or consummated in reliance upon the
guarantee contained in this Section 2. 
Each Guarantor waives diligence, presentment, protest, demand for
payment and notice of default or nonpayment to or upon the Borrower or any of
the Guarantors with respect to the Borrower Obligations.  Each Guarantor understands and agrees that
the guarantee contained in this Section 2 shall be construed as a
continuing, absolute and unconditional guarantee of payment without regard to (a) the
validity or enforceability of the Credit Agreement or any other Loan Document,
any of the Borrower Obligations or any other collateral security therefor or
guarantee or right of set-off with respect thereto at any time or from time to
time held by the Collateral Agent or any Secured Party, (b) any defense,
set-off or counterclaim (other than a defense of payment or performance) which
may at any time be available to or be asserted by the Borrower or any other
Person against the Collateral Agent or any Secured Party, or (c) any other
circumstance whatsoever (with or without notice to or knowledge of the Borrower
or such Guarantor) which constitutes, or might be construed to constitute, an
equitable or legal discharge of the Borrower for the Borrower Obligations, or
of such Guarantor under the guarantee of such Guarantor contained in this Section 2,
in bankruptcy 

 

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or in
any other instance.  When making any
demand hereunder or otherwise pursuing its rights and remedies hereunder
against any Guarantor, the Collateral Agent or any Secured Party may, but shall
be under no obligation to, make a similar demand on or otherwise pursue such
rights and remedies as it may have against the Borrower, any other Guarantor or
any other Person or against any collateral security or guarantee for the
Borrower Obligations or any right of set-off with respect thereto, and any
failure by the Collateral Agent or any Secured Party to make any such demand,
to pursue such other rights or remedies or to collect any payments from the
Borrower, any other Guarantor or any other Person or to realize upon any such
collateral security or guarantee or to exercise any such right of set-off, or
any release of the Borrower, any other Guarantor or any other Person or any
such collateral security, guarantee or right of set-off, shall not relieve any
Guarantor of any obligation or liability hereunder, and shall not impair or
affect the rights and remedies, whether express, implied or available as a
matter of law, of the Collateral Agent or any Secured Party against any
Guarantor.  For the purposes hereof “demand”
shall include the commencement and continuance of any legal proceedings.

 

2.6           Reinstatement.  The guarantee contained in this Section 2
shall continue to be effective, or be reinstated, as the case may be, if at any
time payment, or any part thereof, of any of the Borrower Obligations is
rescinded or must otherwise be restored or returned by the Collateral Agent or
any Secured Party upon the insolvency, bankruptcy, dissolution, liquidation or
reorganization of the Borrower or any Guarantor, or upon or as a result of the
appointment of a receiver, intervenor or conservator of, or trustee or similar
officer for, the Borrower or any Guarantor or any substantial part of its
property, or otherwise, all as though such payments had not been made.

 

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2.7           Payments. 
Payments by any Guarantor made hereunder will be paid to the Collateral
Agent without set-off or counterclaim in Dollars at the Payment Office of the
Collateral Agent specified in the Credit Agreement.

 

SECTION 3.           GRANT OF SECURITY INTEREST

 

3.1           Grant of Security Interest.  Each Grantor hereby assigns and transfers to
the Collateral Agent, and hereby grants to the Collateral Agent, for the
ratable benefit of the Secured Parties, a security interest in, all of the
following property now owned or at any time hereafter acquired by such Grantor
or in which such Grantor now has or at any time in the future may acquire any
right, title or interest (collectively, the “Collateral”), as collateral
security for the prompt and complete payment and performance when due (whether
at the stated maturity, by acceleration or otherwise) of such Grantor’s
Obligations:

 

(a)  all
Accounts;

 

(b)  all
Chattel Paper;

 

(c)  all
Contracts;

 

(d)  all
Deposit Accounts;

 

(e)  all
Documents;

 

(f)  all
Equipment;

 

(g)  all
Fixtures;

 

(h)  all
General Intangibles;

 

(i)  all
Instruments;

 

(j)  all
Intellectual Property;

 

(k) all
Inventory;

 

(l)  all
Investment Property;

 

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(m)  all
Letter-of-Credit Rights;

 

(n)  all
Commercial Tort Claims from time to time described on Schedule 6;

 

(o)  all
other property not otherwise described above (except for any property
specifically excluded from any clause in this section above, and any property
specifically excluded from any defined term used in any clause of this section
above);

 

(p)  all
books and records pertaining to the Collateral; and

 

(q)  to the
extent not otherwise included, all Proceeds, Supporting Obligations and
products of any and all of the foregoing and all collateral security and
guarantees given by any Person with respect to any of the foregoing;

 

provided, however,
that notwithstanding any of the other provisions set forth in this Section 3.1,
this Agreement shall not constitute a grant of a security interest in any
property to the extent that such grant of a security interest is prohibited by
any Requirements of Law of a Governmental Authority, requires a consent not
obtained of any Governmental Authority pursuant to such Requirement of Law or
is prohibited by, or constitutes a breach or default under or results in the
termination of or requires any consent not obtained under, any contract,
license, agreement, instrument or other document evidencing or giving rise to
such property or, in the case of any Investment Property, Pledged Stock or
Pledged Note, any applicable shareholder or similar agreement, except to the
extent that such Requirement of Law or the term in such contract, license,
agreement, instrument or other document or shareholder or similar agreement
providing for such prohibition, breach, default or termination or requiring
such consent is ineffective under applicable law; provided that any such
property shall be excluded from such security interest only to the extent and
for so long as the consequences specified above shall exist

 

20

 

and
shall cease to be excluded and shall be subject to the Lien of the Security
Documents immediately and automatically at such time as such consequence shall
no longer exist.

 

3.2           Deposit Accounts. Each Grantor agrees
that upon the opening by it of any Deposit Account, the Collateral Agent shall
have “control” (as defined in Section 9-104, 9-105, 9-106 or 9-107 of the
UCC) with respect to all cash and other Collateral on deposit therein.  Each Grantor hereby agrees that in the event
it opens a Deposit Account, it shall execute and deliver a deposit account
control agreement (a “Deposit Account Control Agreement”) with respect to such
Deposit Account to the Collateral Agent within 30 days of opening such Deposit
Account, in form and substance reasonably acceptable to the Collateral Agent.
No Grantor shall have any account other than a Deposit Account and no Grantor
shall deposit any cash or other Collateral into any account other than a
Deposit Account subject to a Deposit Account Control Agreement with the Collateral
Agent.

 

SECTION 4.           REPRESENTATIONS AND WARRANTIES

 

To induce the
Agents and the Initial Lenders to enter into the Credit Agreement and to induce
the Initial Lenders to make their respective extensions of credit to the
Borrower thereunder, each Grantor hereby represents and warrants to the Agents
and each Lender that:

 

4.1           Title; No Other Liens.  Except for the security interest granted to
the Collateral Agent for the ratable benefit of the Secured Parties pursuant to
this Agreement and Permitted Liens on the Collateral under the Credit
Agreement, such Grantor owns each item of the Collateral free and clear of any
and all Liens, encumbrances or claims of others.  No financing statement or other public notice
with respect to all or any part of the Collateral is on file or of record in
any public office, except such as have been filed in favor of the Collateral
Agent, for the ratable benefit of the Secured Parties, pursuant to this
Agreement or as are 

 

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permitted
under the Credit Agreement.  No Person
shall have “control” (as defined in Section 9-104, 9-105, 9-106 or 9-107
of the UCC) of any Deposit Account, Chattel Paper, Investment Property or
Letter-of-Credit Right constituting part of the Collateral other than the
Collateral Agent.  For the avoidance of
doubt, it is understood and agreed that any Grantor may, as part of its
business, grant licenses to third parties to use Intellectual Property owned or
developed by a Grantor.  For purposes of
restriction on Liens and encumbrances under this Agreement and the other Loan
Documents, such licensing activity shall not constitute a “Lien” on such
Intellectual Property.  Each of the
Collateral Agent and each Secured Party understands that any such licenses may
be exclusive to the applicable licensees, and such exclusivity provisions may
limit the ability of the Collateral Agent to utilize, sell, lease or transfer
the related Intellectual Property or otherwise realize value from such
Intellectual Property pursuant hereto.

 

4.2           Perfected First Priority Liens.  The security interests granted pursuant to
this Agreement (a) upon execution and delivery of any relevant Deposit
Account Control Agreements and upon completion of the filings and other actions
specified on Schedule 2 (which, in the case of all filings and other documents
referred to on said Schedule, have been delivered to the Collateral Agent in
completed and duly executed form) will constitute valid perfected security
interests in all of the Collateral in favor of the Collateral Agent, for the
ratable benefit of the Secured Parties, as collateral security for such Grantor’s
Obligations, enforceable in accordance with the terms hereof against all
creditors of such Grantor and any Persons purporting to purchase any Collateral
from such Grantor and (b) are prior to all other Liens on the Collateral
in existence on the date hereof except for, in the case of Liens on Steel Winds
Companies, Permitted Liens (other than as described in clause (n) of the
definition of “Permitted Liens”).

 

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4.3           Jurisdiction of Organization; Federal
Identification Number; Chief Executive Office. 
On the date hereof, such Grantor’s jurisdiction of organization, federal
identification number from the jurisdiction of organization (if any), and the
location of such Grantor’s chief executive office or sole place of business or
principal residence, as the case may be, are specified on Schedule 3.

 

4.4           Investment Property.  (a)  The shares of Pledged Stock pledged
by such Grantor hereunder constitute all the issued and outstanding shares of
all classes of the Equity Interests of each Issuer owned by such Grantor.

 

(b)           All the shares of the Pledged Stock have
been duly and validly issued and are fully paid and nonassessable. None of the
Pledged Stock is subject to any voting trust, shareholder agreement or voting
agreement or other agreement, right instrument or understanding with respect to
any purchase, sale, issuance, transfer, repurchase, redemption or voting
agreement, other than limited liability company agreements, partnership
agreements or other governing documents of the relevant Issuer. None of the
Pledged Stock is subject to an existing option, warrant, call, right,
commitment or other agreement, and there is no membership interest or other
Equity Interests outstanding required to be pledged hereunder in any
Subsidiary, that upon conversion or exchange would require, the issuance by the
applicable Grantor of any additional membership interests or other Equity
Interests of such Subsidiary or other securities convertible into, exchangeable
for or evidencing the right to subscribe for or purchase, a membership interest
or other Equity Interests of such Subsidiary.

 

(c)           Unless otherwise consented to by the
Collateral Agent, Equity Interests required to be pledged hereunder in any
Subsidiary that is organized as a limited liability company or limited
partnership and pledged hereunder shall either (i) be represented by a 

 

23

 

certificate,
and in the Organizational Documents of such Subsidiary, the applicable Grantor
shall cause the Issuer of such interests to elect to treat such interests as a “security”
within the meaning of Article 8 of the Uniform Commercial Code of its
jurisdiction of organization or formation, as applicable, by including in its
Organizational Documents language substantially similar to the following and,
accordingly, such interests shall be governed by Article 8 of the Uniform
Commercial Code:

 

“The
[partnership/limited liability company] hereby irrevocably elects that all
[partnership/membership] interests in the [partnership/limited liability
company] shall be securities governed by Article 8 of the Uniform
Commercial Code of [jurisdiction of organization or formation, as applicable].
Each certificate evidencing [partnership/membership] interests in the
[partnership/limited liability company] shall bear the following legend: “This
certificate evidences an interest in [name of [partnership/limited liability
company]] and shall be a security for purposes of Article 8 of the Uniform
Commercial Code.” No change to this provision shall be effective until all
outstanding certificates have been surrendered for cancellation and any new
certificates thereafter issued shall not bear the foregoing legend.”

 

or (ii) not
have elected to be treated as a “security” within the meaning of Article 8
of the Uniform Commercial Code and shall not be represented by a certificate.

 

(d)           Each of the Pledged Notes constitutes the
legal, valid and binding obligation of the obligor with respect thereto,
enforceable in accordance with its terms, subject to the effects of bankruptcy,
insolvency, fraudulent conveyance, reorganization, moratorium and other similar
laws relating to or affecting creditors’ rights generally and general equitable
principles (whether considered in a proceeding in equity or at law).

 

24

 

(e)           Such Grantor is the record and beneficial
owner of, and has good and marketable title to, the Investment Property pledged
by it hereunder, free and clear of any and all Liens, encumbrances or options
in favor of, or claims of, any other Person, except the security interest
created by this Agreement and as permitted by the Credit Agreement.

 

4.5           Intellectual Property.  (a) Schedule 4 lists all material
Intellectual Property owned by such Grantor in its own name on the date hereof.

 

(b)           On the date hereof, all material
Intellectual Property is valid, subsisting, unexpired and enforceable, has not
been abandoned and does not knowingly infringe the intellectual property rights
of any other Person.

 

4.6           Commercial Tort Claims.  (a)  On the date hereof, no Grantor has
rights in any Commercial Tort Claim with potential value in excess of $500,000.

 

(b)    Upon the filing of a financing statement
covering any Commercial Tort Claim referred to in Section 5.6 hereof
against such Grantor in the jurisdiction specified in Schedule 3 hereto, the
security interest granted in such Commercial Tort Claim will constitute a valid
perfected security interest in favor of the Collateral Agent, for the ratable
benefit of the Secured Parties, as collateral security for such Grantor’s
Obligations, enforceable in accordance with the terms hereof against all
creditors of such Grantor and any Persons purporting to purchase such
Collateral from Grantor, which security interest shall be prior to all other
Liens on such Collateral except for unrecorded liens permitted by the Credit Agreement
which have priority over the Liens on such Collateral by operation of law.

 

4.7           Deposit Accounts and Securities
Accounts.   Schedule 7 sets forth a
complete and correct list of all Deposit Accounts and Securities Accounts for
each Grantor on the date hereof.

 

25

 

SECTION 5.           COVENANTS

 

Each Grantor
covenants and agrees with the Collateral Agent and the Secured Parties that,
from and after the date of this Agreement until the Obligations shall have been
paid in full and the Initial Term Loan Commitment and Subsequent Term Loan
Commitment shall have terminated:

 

5.1           Delivery of Instruments, Certificated
Securities and Chattel Paper.  If any
amount payable under or in connection with any of the Collateral shall be or
become evidenced by any Instrument, Certificated Security or Chattel Paper,
upon its receipt thereof, the Grantor shall promptly deliver to the Collateral
Agent such Instrument, Certificated Security or Chattel Paper, as applicable,
duly indorsed in a manner reasonably satisfactory to the Collateral Agent, to
be held as Collateral pursuant to this Agreement.

 

5.2           Maintenance of Perfected Security
Interest; Further Documentation.  (a) 
Such Grantor shall maintain the security interest created by this Agreement as
a perfected security interest having at least the priority described in Section 4.2
and shall defend such security interest against the claims and demands of all
Persons whomsoever, subject to the rights of such Grantor under the Loan Documents
to dispose of or pledge the Collateral.

 

(b)           Such Grantor will furnish to the
Collateral Agent and the Secured Parties from time to time statements and
schedules further identifying and describing the assets and property of such
Grantor as the Collateral Agent may reasonably request, all in reasonable
detail.

 

(c)           At any time and from time to time, upon
the written request of the Collateral Agent, and at the sole expense of such
Grantor, such Grantor will promptly and duly execute and deliver, and have
recorded, such further instruments and documents and take such further actions
as the Collateral Agent or any Lender may reasonably request for the purpose of

 

26

 

obtaining
or preserving the full benefits of this Agreement and of the rights and powers
herein granted, including, without limitation, (i) the filing of any
financing or continuation statements under the Uniform Commercial Code (or
other similar laws) in effect in any jurisdiction with respect to the security
interests created hereby and (ii) subject to Section 3.2, in the case
of Deposit Accounts and Letter-of-Credit Rights and any other relevant
Collateral, taking any commercially reasonable actions necessary to enable the
Collateral Agent to obtain “control” (within the meaning of the applicable
Uniform Commercial Code) with respect thereto.

 

5.3           Changes in Name, etc.  Such Grantor will not, (a) except upon
30 days’ prior written notice to the Collateral Agent and delivery to the
Collateral Agent of all additional financing statements and other documents
reasonably requested by the Collateral Agent to maintain the validity,
perfection and priority of the security interests provided for herein, change
its jurisdiction of organization or the location of its chief executive office
or sole place of business or principal residence from that referred to in Section 4.3
or (b) except upon 10 days’ prior written notice to the Collateral Agent
and delivery to the Collateral Agent of all additional financing statements and
other documents reasonably requested by the Collateral Agent to maintain the
validity, perfection and priority of the security interests provided for
herein, change its name.

 

5.4           Investment Property.  (a)  If such Grantor shall become entitled
to receive or shall receive any certificate (including, without limitation, any
certificate representing a dividend or a distribution in connection with any
reclassification, increase or reduction of capital or any certificate issued in
connection with any reorganization), option or rights in respect of the Equity
Interests of any Issuer, whether in addition to, in substitution of, as a
conversion of, or in exchange for, any shares of the Pledged Stock, or
otherwise in respect thereof, such Grantor shall 

 

27

 

accept
the same as the agent of the Collateral Agent and the Secured Parties, hold the
same in trust for the Collateral Agent and the Secured Parties and deliver the
same forthwith to the Collateral Agent in the exact form received, duly
indorsed by such Grantor to the Collateral Agent, if required, together with an
undated stock power covering such certificate duly executed in blank by such
Grantor and with, if the Collateral Agent so requests, signature guaranteed, to
be held by the Collateral Agent, subject to the terms hereof, as additional
collateral security for the Obligations. 
Any sums paid upon or in respect of Pledged Stock or Pledged Notes and
except as otherwise expressly provided in the Credit Agreement, any other
Investment Property, upon the liquidation or dissolution of any Issuer shall be
paid over to the Collateral Agent to be held by it hereunder as additional
collateral security for the Obligations, and in case any distribution of capital
constituting Collateral shall be made on or in respect of such Investment
Property or any property shall be distributed upon or with respect to such
Investment Property pursuant to the recapitalization or reclassification of the
capital of any Issuer or pursuant to the reorganization thereof, the property
constituting Collateral so distributed shall, unless otherwise subject to a
perfected security interest in favor of the Collateral Agent, be delivered to
the Collateral Agent to be held by it hereunder as additional collateral
security for the Obligations.  If any
sums of money or property constituting Collateral so paid or distributed in
respect of the Investment Property shall be received by such Grantor, such
Grantor shall, until such money or property is paid or delivered to the
Collateral Agent, hold such money or property in trust for the Collateral Agent
and the Secured Parties, segregated from other funds of such Grantor, as
additional collateral security for the Obligations.

 

(b)           Without the prior written consent of the
Collateral Agent, such Grantor will not (i) vote to enable, or take any
other action to permit, any Issuer to issue any Equity 

 

28

 

Interests
of any nature or to issue any other securities convertible into or granting the
right to purchase or exchange for any Equity Interests of any nature of any
Issuer, unless such securities are delivered to the Collateral Agent,
concurrently with the issuance thereof, to be held by the Collateral Agent as
Collateral, (ii) sell, assign, transfer, exchange, or otherwise dispose
of, or grant any option with respect to, the Investment Property or Proceeds
thereof (except pursuant to a transaction expressly permitted by the Credit
Agreement), (iii) create, incur or permit to exist any Lien, encumbrance
or option in favor of, or any claim of any Person with respect to, any of the
Investment Property or Proceeds thereof, or any interest therein, except for
the security interests created by this Agreement or Permitted Liens under the
Credit Agreement or (iv) enter into any agreement or undertaking
restricting the right or ability of such Grantor or the Collateral Agent to
sell, assign or transfer any of the Investment Property or Proceeds thereof.

 

(c)           In the case of each Grantor which is an
Issuer, such Issuer agrees that (i) it will be bound by the terms of this
Agreement relating to the Investment Property issued by it and will comply with
such terms insofar as such terms are applicable to it and (ii) the terms
of Sections 6.2(c) and 6.6 shall apply to it, mutatis mutandis, with
respect to all actions that may be required of it pursuant to Section 6.2(c) or
6.6 with respect to the Investment Property issued by it.

 

5.5           Intellectual Property.  Such Grantor shall take commercially
reasonable actions to maintain the value and validity of all Intellectual
Property owned by it that is material to its business, except to the extent the
failure to take any such action could not reasonably be expected to have a Material
Adverse Effect.

 

5.6           Commercial Tort Claims.  If such Grantor shall obtain an interest in
any Commercial Tort Claim with a potential value in excess of $500,000, such
Grantor shall within 

 

29

 

30 days
of obtaining such interest sign and deliver documentation reasonably acceptable
to the Collateral Agent granting a security interest under the terms and
provisions of this Agreement in and to such Commercial Tort Claim.

 

SECTION 6.           REMEDIAL PROVISIONS

 

6.1           Grantors Remain Liable.  Anything herein to the contrary
notwithstanding, each Grantor shall remain liable under each of the Contracts
to observe and perform all the conditions and obligations to be observed and
performed by it thereunder, all in accordance with the terms of any agreement
giving rise thereto and neither the Collateral Agent nor any Secured Party
shall have any obligation or liability under any Contract by reason of or
arising out of this Agreement or the receipt by the Collateral Agent or any
Secured Party of any payment relating thereto. Neither the Collateral Agent or
any Secured Party shall be obligated in any manner to perform any of the
obligations of any Grantor under or pursuant to any Contract, to make any
payment, to make any inquiry as to the nature or the sufficiency of any payment
received by it or as to the sufficiency of any performance by any party
thereunder, to present or file any claim, to take any action to enforce any
performance or to collect the payment of any amounts which may have been
assigned to it or to which it may be entitled at any time or times.

 

6.2           Pledged Stock.  (a)  Unless an Event of Default shall
have occurred and be continuing and the Collateral Agent shall have given
notice to the relevant Grantor of the Collateral Agent’s intent to exercise its
corresponding rights pursuant to Section 6.2(b), each Grantor shall be
permitted to receive all cash dividends paid in respect of the Pledged Stock
and all payments made in respect of the Pledged Notes, in each case, paid in
the normal course of business of the relevant Issuer and consistent with past
practice, to the extent permitted in the

 

30

 

Credit
Agreement, and to exercise all voting and corporate or other organizational
rights with respect to the Investment Property; provided, however, that no vote
shall be cast or corporate or other organizational right exercised or other
action taken which, in the Majority Lenders’ reasonable judgment, would
materially impair the Pledged Stock or which would result in any violation of
any provision of the Credit Agreement, this Agreement or any other Loan
Document.

 

(b)           If an Event of Default shall occur and be
continuing and the Collateral Agent shall give notice of its intent to exercise
such rights to the relevant Grantor or Grantors, (i) the Collateral Agent
shall have the right to receive any and all cash dividends, payments or other
Proceeds paid in respect of the Investment Property and make application
thereof to the Obligations in such order as the Collateral Agent may determine,
and (ii) any or all of the Investment Property shall be registered in the
name of the Collateral Agent or its nominee, and the Collateral Agent or its
nominee may thereafter exercise (x) all voting, corporate and other rights
pertaining to such Investment Property at any meeting of shareholders of the
relevant Issuer or Issuers or otherwise and (y) any and all rights of conversion,
exchange and subscription and any other rights, privileges or options
pertaining to such Investment Property as if it were the absolute owner thereof
(including, without limitation, the right to exchange at its discretion any and
all of the Investment Property upon the merger, consolidation, reorganization,
recapitalization or other fundamental change in the corporate or other
organizational structure of any Issuer, or upon the exercise by any Grantor or
the Collateral Agent of any right, privilege or option pertaining to such
Investment Property, and in connection therewith, the right to deposit and
deliver any and all of the Investment Property with any committee, depositary,
transfer agent, registrar or other designated agency upon such terms and
conditions as the Collateral 

 

31

 

Agent
may determine), all without liability except to account for property actually
received by it, but the Collateral Agent shall have no duty to any Grantor to
exercise any such right, privilege or option and shall not be responsible for
any failure to do so or delay in so doing.

 

(c)           Each Grantor hereby authorizes and
instructs each Issuer of any Investment Property pledged by such Grantor
hereunder to (i) comply with any instruction received by it from the
Collateral Agent in writing that (x) states that an Event of Default has
occurred and is continuing and (y) is otherwise in accordance with the
terms of this Agreement, without any other or further instructions from such
Grantor, and each Grantor agrees that each Issuer shall be fully protected in
so complying and (ii) unless otherwise expressly permitted hereby, pay any
dividends or other payments with respect to the Investment Property directly to
the Collateral Agent.

 

6.3           Proceeds to be Turned Over To Collateral
Agent.  If an Event of Default shall
occur and be continuing, all Proceeds received by any Grantor consisting of
cash, checks and other near cash items shall be held by such Grantor in trust
for the Collateral Agent and the Secured Parties, segregated from other funds
of such Grantor, and shall, forthwith upon receipt by such Grantor, be turned
over to the Collateral Agent in the exact form received by such Grantor (duly
indorsed by such Grantor to the Collateral Agent, if required).  All Proceeds received by the Collateral Agent
hereunder shall be held by the Collateral Agent in a Collateral Account
maintained under its sole dominion and control. 
All Proceeds while held by the Collateral Agent in a Collateral Account
(or by such Grantor in trust for the Collateral Agent and the Secured Parties)
shall continue to be held as collateral security for all the Obligations and
shall not constitute payment thereof until applied as provided in Section 6.4.

 

32

 

6.4           Application of Proceeds.  If an Event of Default shall have occurred
and be continuing, the Collateral Agent shall apply all or any part of Proceeds
constituting Collateral, whether or not held in any Collateral Account, and any
proceeds of the guarantee set forth in Section 2, in payment of the
Obligations then due and owing in accordance with Section 11.5 of the
Credit Agreement and the Collateral Agent shall retain any other proceeds
constituting Collateral in accordance with the terms of this Agreement.

 

6.5           Code and Other Remedies.  If an Event of Default shall occur and be
continuing, the Collateral Agent, on behalf of the Secured Parties, may
exercise, in addition to all other rights and remedies granted to them in this
Agreement and in any other instrument or agreement securing, evidencing or
relating to the Obligations, all rights and remedies of a secured party under
the New York UCC or any other applicable law. 
Without limiting the generality of the foregoing, the Collateral Agent,
without demand of performance or other demand, presentment, protest,
advertisement or notice of any kind (except any notice required by law referred
to below) to or upon any Grantor or any other Person (all and each of which
demands, defenses, advertisements and notices are hereby waived), may in such
circumstances forthwith collect, receive, appropriate and realize upon the
Collateral, or any part thereof, and/or may forthwith sell, lease, assign, give
option or options to purchase, or otherwise dispose of and deliver the
Collateral or any part thereof (or contract to do any of the foregoing), in one
or more parcels at public or private sale or sales, at any exchange, broker’s
board or office of the Collateral Agent or any Secured Party or elsewhere upon
such terms and conditions as it may deem advisable and at such prices as it may
deem best, for cash or on credit or for future delivery without assumption of
any credit risk.  The Collateral Agent or
any Secured Party shall have the right upon any such public sale or sales, and,
to the extent permitted by law, upon any such 

 

33

 

private
sale or sales, to purchase the whole or any part of the Collateral so sold,
free of any right or equity of redemption in any Grantor, which right or equity
is hereby waived and released.  Each
Grantor further agrees, at the Collateral Agent’s request, to assemble the
Collateral and make it available to the Collateral Agent at places which the
Collateral Agent shall reasonably select, whether at such Grantor’s premises or
elsewhere.  The Collateral Agent shall
apply the net proceeds of any action taken by it pursuant to this Section 6.5
with respect to any Grantor’s Collateral, after deducting all reasonable costs
and expenses of every kind incurred for the care or safekeeping of any of the
Collateral of such Grantor or in any way relating to preserving or maintaining
the Collateral of such Grantor or the rights of the Collateral Agent and the
Secured Parties hereunder with respect thereto, including, without limitation,
reasonable attorneys’ fees and disbursements, to the payment in whole or in
part of the Obligations of such Grantor, in such order as the Collateral Agent
may elect and only after such application and after the payment by the
Collateral Agent of any other amount required by any provision of law,
including, without limitation, Section 9-615(a)(3) of the New York
UCC, need the Collateral Agent account for the surplus, if any, to any Grantor.  To the extent permitted by applicable law,
each Grantor waives all claims, damages and demands it may acquire against the
Collateral Agent or any Secured Party arising out of the exercise by them of
any rights hereunder.  If any notice of a
proposed sale or other disposition of Collateral shall be required by law, such
notice shall be deemed reasonable and proper if given at least 10 days before
such sale or other disposition.

 

6.6           Sale of Pledged Stock.  (a)  Each Grantor recognizes that the
Collateral Agent may be unable to effect a public sale of any or all the
Pledged Stock, by reason of certain prohibitions contained in the Securities
Act and applicable state securities laws or otherwise, and may be compelled to
resort to one or more private sales thereof to a restricted group of 

 

34

 

purchasers
which will be obliged to agree, among other things, to acquire such securities
for their own account for investment and not with a view to the distribution or
resale thereof.  Each Grantor
acknowledges and agrees that any such private sale may result in prices and
other terms less favorable than if such sale were a public sale and,
notwithstanding such circumstances, agrees that any such private sale shall be deemed
to have been made in a commercially reasonable manner.  The Collateral Agent shall be under no
obligation to delay a sale of any of the Pledged Stock for the period of time
necessary to permit the Issuer thereof to register such securities for public
sale under the Securities Act, or under applicable state securities laws, even
if such Issuer would agree to do so.

 

(b)           Each Grantor agrees to use its best
efforts to do or cause to be done all such other acts as may be necessary to
make such sale or sales of all or any portion of the Pledged Stock pursuant to
this Section 6.6 valid and binding and in compliance with any and all
other applicable Requirements of Law. 
Each Grantor further agrees that a breach of any of the covenants
contained in this Section 6.6 will cause irreparable injury to the
Collateral Agent and the Secured Parties, that the Collateral Agent and the
Secured Parties have no adequate remedy at law in respect of such breach and,
as a consequence, that each and every covenant contained in this Section 6.6
shall be specifically enforceable against such Grantor, and such Grantor hereby
waives and agrees not to assert any defenses against an action for specific
performance of such covenants except for a defense that no Event of Default has
occurred or is continuing under the Credit Agreement.

 

6.7           Subordination.  Each Grantor hereby agrees that, upon the
occurrence and during the continuance of an Event of Default, unless otherwise
agreed by the Collateral Agent, 

 

35

 

all
Indebtedness owing by it to any Subsidiary of any Grantor shall be fully
subordinated to the indefeasible payment in full in cash of such Grantor’s
Obligations.

 

6.8           Deficiency.  Each Grantor shall remain liable for any
deficiency if the proceeds of any sale or other disposition of the Collateral
are insufficient to pay its Obligations and reasonable Attorney Costs and
expenses of the Collateral Agent or any Secured Party to collect such
deficiency.

 

SECTION 7.           THE COLLATERAL AGENT

 

7.1           Collateral Agent’s Appointment as
Attorney-in-Fact, etc.  (a)  Each
Grantor hereby irrevocably constitutes and appoints the Collateral Agent and
any officer or agent thereof, with full power of substitution, as its true and
lawful attorney-in-fact with full irrevocable power and authority in the place
and stead of such Grantor and in the name of such Grantor or in its own name,
for the purpose of carrying out the terms of this Agreement, subject to the
last sentence of this Section 7.1(a), to take any and all appropriate
action and to execute any and all documents and instruments which may be
necessary or desirable to accomplish the purposes of this Agreement, and,
without limiting the generality of the foregoing, each Grantor hereby gives the
Collateral Agent the power and right, on behalf of such Grantor, without notice
to or assent by such Grantor, to do any or all of the following:

 

(i)            in the name of such Grantor or its own
name, or otherwise, take possession of and indorse and collect any checks,
drafts, notes, acceptances or other instruments for the payment of moneys due
under any Contract or with respect to any other Collateral and file any claim
or take any other action or proceeding in any court of law or equity or
otherwise deemed appropriate by the Collateral Agent for the purpose of
collecting any and all such moneys due under any Contract or with respect to
any other Collateral whenever payable;

 

36

 

(ii)           in the case of any Intellectual Property,
execute and deliver, and have recorded, any and all agreements, instruments,
documents and papers as the Collateral Agent or any Lender may request to
evidence the Collateral Agent’s and the Secured Parties’ security interest in
such Intellectual Property and the goodwill and general intangibles of such
Grantor relating thereto or represented thereby;

 

(iii)          pay or discharge taxes and Liens levied
or placed on or threatened against the Collateral, effect any repairs or any
insurance called for by the terms of the Credit Agreement and pay all or any
part of the premiums therefor and the costs thereof;

 

(iv)          execute, in connection with any sale
provided for in Sections 6.5 or 6.6, any indorsements, assignments or other
instruments of conveyance or transfer with respect to the Collateral; and

 

(v)           (1)  direct any party liable for any
payment under any of the Collateral to make payment of any and all moneys due
or to become due thereunder directly to the Collateral Agent or as the
Collateral Agent shall direct;  (2)   ask or demand for, collect, and receive
payment of and receipt for, any and all moneys, claims and other amounts due or
to become due at any time in respect of or arising out of any Collateral;  (3)  
sign and indorse any invoices, freight or express bills, bills of
lading, storage or warehouse receipts, drafts against debtors, assignments,
verifications, notices and other documents in connection with any of the
Collateral;  (4) commence and
prosecute any suits, actions or proceedings at law or in equity in any court of
competent jurisdiction to collect the Collateral or any portion thereof and to
enforce any other right in respect of any Collateral; (5) defend any suit,
action or proceeding brought against such Grantor with respect to any Collateral;
(6) settle, compromise or adjust any such suit, action or proceeding and,
in connection therewith, give such discharges or releases as the Collateral
Agent 

 

37

 

may
deem appropriate; (7) assign any Copyright, Patent or Trademark (along
with the goodwill of the business to which any such Copyright, Patent or
Trademark pertains), throughout the world for such term or terms, on such
conditions, and in such manner, as the Collateral Agent shall in its sole
discretion determine; and (8) generally, sell, transfer, pledge and make
any agreement with respect to or otherwise deal with any of the Collateral as
fully and completely as though the Collateral Agent were the absolute owner
thereof for all purposes, and do, at the Collateral Agent’s option and such
Grantor’s expense, at any time, or from time to time, all acts and things which
the Collateral Agent deems necessary to protect, preserve or realize upon the
Collateral and the Collateral Agent’s and the Secured Parties’ security
interests therein and to effect the intent of this Agreement, all as fully and
effectively as such Grantor might do.

 

Anything in this Section 7.1(a) to
the contrary notwithstanding, the Collateral Agent agrees that it will not
exercise any rights under the power of attorney provided for in this Section 7.1(a) unless
an Event of Default shall have occurred and be continuing.

 

(b)           If any Grantor fails to perform or comply
with any of its agreements contained herein, the Collateral Agent, at its
option, but without any obligation so to do, may perform or comply, or
otherwise cause performance or compliance, with such agreement.

 

(c)           The reasonable expenses of the Collateral
Agent incurred in connection with actions undertaken as provided in this Section 7.1,
together with interest thereon at a rate per annum equal to the highest rate
per annum at which interest would then be payable on any past due Term Loans
under the Credit Agreement, from the date of payment by the Collateral Agent to
the date reimbursed by the relevant Grantor, shall be payable by such Grantor
to the Collateral Agent immediately upon demand.

 

38

 

(d)           Each Grantor hereby ratifies all that
said attorneys shall lawfully do or cause to be done by virtue hereof.  All powers, authorizations and agencies
contained in this Agreement are coupled with an interest and are irrevocable
until this Agreement is terminated and the security interests created hereby
are released.

 

7.2           Duty of Collateral Agent.  The Collateral Agent’s sole duty with respect
to the custody, safekeeping and physical preservation of the Collateral in its
possession, under Section 9-207 of the New York UCC or otherwise, shall be
to deal with it in the same manner as the Collateral Agent deals with similar
property for its own account.  Neither
the Collateral Agent, any Secured Party nor any of their respective officers,
directors, employees or agents shall be liable for failure to demand, collect
or realize upon any of the Collateral or for any delay in doing so or shall be
under any obligation to sell or otherwise dispose of any Collateral upon the
request of any Grantor or any other Person or to take any other action
whatsoever with regard to the Collateral or any part thereof.  The powers conferred on the Collateral Agent
and the Secured Parties hereunder are solely to protect the Collateral Agent’s
and the Secured Parties’ interests in the Collateral and shall not impose any
duty upon the Collateral Agent or any Secured Party to exercise any such
powers.  The Collateral Agent and the
Secured Parties shall be accountable only for amounts that they actually
receive as a result of the exercise of such powers, and neither they nor any of
their officers, directors, employees or agents shall be responsible to any
Grantor for any act or failure to act hereunder, except for their own gross
negligence or willful misconduct.

 

7.3           Execution of Financing Statements.  Pursuant to any applicable law, each Grantor
authorizes the Collateral Agent to file or record financing statements and
other filing or recording documents or instruments with respect to the
Collateral without the signature of such 

 

39

 

Grantor
in such form and in such offices as the Collateral Agent or any Lender
determines appropriate to perfect the security interests of the Collateral
Agent under this Agreement.  Each Grantor
authorizes the Collateral Agent to use the collateral description “all personal
property” or “all assets” in any such financing statements.

 

7.4           Authority of Collateral Agent.  Each Grantor acknowledges that the rights and
responsibilities of the Collateral Agent under this Agreement with respect to
any action taken by the Collateral Agent or the exercise or non-exercise by the
Collateral Agent of any option, voting right, request, judgment or other right
or remedy provided for herein or resulting or arising out of this Agreement
shall, as between the Collateral Agent and the Secured Parties, be governed by
the Credit Agreement and by such other agreements with respect thereto as may
exist from time to time among them, but, as between the Collateral Agent and
the Grantors, the Collateral Agent shall be conclusively presumed to be acting
as agent for the Secured Parties with full and valid authority so to act or
refrain from acting, and no Grantor shall be under any obligation, or
entitlement, to make any inquiry respecting such authority.

 

7.5           Collateral and Administrative Agent’s
Duties. (a)  Wells Fargo Bank, National Association, in its capacity as
Collateral Agent and Administrative Agent, agrees to take any actions or
exercise any powers or remedies provided for it under this Agreement or the
Loan Documents if so instructed by the requisite Lenders; provided, however,
that the Agents shall not be required to take any action that exposes it to
personal liability, requires it to advance or expend funds, or that is contrary
to this Agreement, the Loan Documents or any Requirement of Law. The Lenders
acknowledge that the Administrative Agent and the Collateral Agent will only be
required to exercise its rights and remedies under this Agreement or the other
Loan Documents upon the written direction of the requisite Lenders and that any
permissive duty

 

40

 

contained
in this Agreement or the other Loan Documents shall not be construed as an
obligations imposed upon either the Administrative Agent or the Collateral
Agent.

 

(b)                                 Notwithstanding anything herein to the
contrary, the Collateral Agent shall be afforded all of the rights, powers,
immunities and indemnities of the Collateral Agent set forth in the Credit
Agreement and the other Loan Documents, as if such rights, powers, immunities
and indemnities were specifically set forth herein.  Each Grantor hereby acknowledges the
appointment of the Collateral Agent pursuant to the Credit Agreement.  The rights, privileges, protections and
benefits given to the Collateral Agent, including their right to be
indemnified, are extended to, and shall be enforceable by, the Collateral Agent
in its capacity hereunder.

 

SECTION 8.                                MISCELLANEOUS

 

8.1                                 Amendments in Writing.  None of the terms or provisions of this
Agreement may be waived, amended, supplemented or otherwise modified except in
accordance with Section 13.10 of the Credit Agreement.

 

8.2                                 Notices. 
All notices, requests and demands to or upon the Collateral Agent or any
Grantor hereunder shall be effected in the manner provided for in Section 13.3
of the Credit Agreement; provided that any such notice, request or demand to or
upon any Guarantor shall be addressed to such Guarantor at its notice address
set forth on Schedule 5.

 

8.3                                 No Waiver by Course of Conduct;
Cumulative Remedies.  Neither the
Collateral Agent nor any Secured Party shall by any act (except by a written
instrument pursuant to Section 8.1), delay, indulgence, omission or
otherwise be deemed to have waived any right or remedy hereunder or to have
acquiesced in any Default or Event of Default. 
No failure to exercise, nor any delay in exercising, on the part of the
Collateral Agent or any Secured Party, any right, power or privilege hereunder
shall operate as a waiver thereof.  No
single or partial 

 

41

 

exercise
of any right, power or privilege hereunder shall preclude any other or further
exercise thereof or the exercise of any other right, power or privilege.  A waiver by the Collateral Agent or any
Secured Party of any right or remedy hereunder on any one occasion shall not be
construed as a bar to any right or remedy which the Collateral Agent or such
Secured Party would otherwise have on any future occasion.  The rights and remedies herein provided are
cumulative, may be exercised singly or concurrently and are not exclusive of
any other rights or remedies provided by law.

 

8.4                                 Enforcement Expenses;
Indemnification.  (a)  Each
Guarantor agrees to pay or reimburse each Secured Party and the Collateral
Agent for all its properly documented reasonable costs, fees and expenses
incurred in collecting against such Guarantor under the guarantee contained in Section 2
or otherwise enforcing or preserving any rights under this Agreement and the
other Loan Documents to which such Guarantor is a party, including, without
limitation, Attorney Costs and expenses of each Secured Party and the
Collateral Agent.

 

(b)                                 Each Guarantor agrees to pay, and to save
the Collateral Agent and the Secured Parties harmless from, any and all
liabilities with respect to, or resulting from any delay in paying, any and all
stamp, excise, sales or other taxes which may be payable or determined to be
payable with respect to any of the Collateral or in connection with any of the
transactions contemplated by this Agreement.

 

(c)                                  Each Guarantor agrees to pay, and to save
the Collateral Agent and the Secured Parties harmless from, any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever with
respect to the execution, delivery, enforcement, performance and administration
of this 

 

42

 

Agreement
to the extent the Borrower would be required to do so pursuant to Sections 13.1
and 13.2 of the Credit Agreement.

 

(d)                                 The agreements in this Section 8.4
shall survive repayment of the Obligations and all other amounts payable under
the Credit Agreement and the other Loan Documents.

 

8.5                                 Successors and Assigns.  This Agreement shall be binding upon the
successors and assigns of each Grantor and shall inure to the benefit of the
Collateral Agent and the Secured Parties and their successors and assigns;
provided that no Grantor may assign, transfer or delegate any of its rights or
obligations under this Agreement without the prior written consent of the Collateral
Agent.

 

8.6                                 Set-Off. 
In addition to any rights and remedies of the Secured Parties provided
by law, each Secured Party shall have the right, without notice to any Grantor,
any such notice being expressly waived by each Grantor to the extent permitted
by applicable law, upon any Obligations becoming due and payable by any Grantor
(whether at the stated maturity, by acceleration or otherwise), to apply to the
payment of such Obligations, by setoff or otherwise, any and all deposits
(general or special, time or demand, provisional or final), in any currency,
and any other credits, indebtedness or claims, in any currency, in each case
whether direct or indirect, absolute or contingent, matured or unmatured, at
any time held or owing by such Secured Party, any affiliate thereof or any of
their respective branches or agencies to or for the credit or the account of
such Grantor.  Each Secured Party agrees
promptly to notify the relevant Grantor and the Collateral Agent after any such
application made by such Secured Party, provided that the failure to give such
notice shall not affect the validity of such application.

 

43

 

8.7                                 Counterparts.  This Agreement may be executed by one or more
of the parties to this Agreement on any number of separate counterparts
(including by .pdf or telecopy), and all of said counterparts taken together
shall be deemed to constitute one and the same instrument.

 

8.8                                 Severability.  Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

8.9                                 Section Headings.  The Section headings used in this
Agreement are for convenience of reference only and are not to affect the
construction hereof or be taken into consideration in the interpretation
hereof.

 

8.10                           Integration.  This Agreement and the other Loan Documents
represent the agreement of the Grantors, the Collateral Agent and the Secured
Parties with respect to the subject matter hereof and thereof, and there are no
promises, undertakings, representations or warranties by the Collateral Agent
or any Secured Party relative to subject matter hereof and thereof not
expressly set forth or referred to herein or therein.

 

8.11                           GOVERNING LAW.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

8.12                           Submission To Jurisdiction.  Each party hereto hereby submits to the
nonexclusive jurisdiction of the United States District Court for the Southern
District of New York and of any New York State court sitting in New York City
for the purposes of all legal 

 

44

 

proceedings
arising out of or relating to this Agreement, any other Loan Document or the
transactions contemplated hereby or thereby. 
Each party hereby irrevocably waives, to the fullest extent permitted by
applicable Requirement of Law, any objection which it may now or hereafter have
to the laying of the venue of any such proceeding brought in such a court and any
claim that any such proceeding brought in such a court has been brought in an
inconvenient forum.  Nothing herein shall
affect the right to serve process in any other manner permitted by applicable
Requirements of Law or any right to bring legal action or proceedings in any
other competent jurisdiction, including judicial or non-judicial foreclosure of
real property interests which are part of the Collateral.  To the extent permitted by applicable
Requirements of Law, each party hereto further irrevocably agrees to the
service of process of any of the aforementioned courts in any suit, action or
proceeding by the mailing of copies thereof by certified mail, postage prepaid,
return receipt requested, to such party at the address referenced in Section 8.2,
such service to be effective upon the date indicated on the postal receipt
returned from such party.

 

8.13                           Acknowledgements.  Each Grantor hereby acknowledges that:

 

(a)                                  it has been advised by counsel in the
negotiation, execution and delivery of this Agreement and the other Loan
Documents to which it is a party;

 

(b)                                 neither the Collateral Agent nor any
Secured Party has any fiduciary relationship with or duty to any Grantor
arising out of or in connection with this Agreement or any of the other Loan
Documents, and the relationship between the Grantors, on the one hand, and the
Collateral Agent and Secured Parties, on the other hand, in connection herewith
or therewith is solely that of debtor and creditor; and

 

45

 

(c)                                  no joint venture is created hereby or by
the other Loan Documents or otherwise exists by virtue of the transactions
contemplated hereby among the Secured Parties or among the Grantors and the
Secured Parties.

 

8.14                           Additional Grantors.  Each Subsidiary of the Borrower that is
required to become a party to this Agreement on or after the Subsequent Closing
Date pursuant to Section 9.22 of the Credit Agreement shall become a
Grantor for all purposes of this Agreement upon execution and delivery by such
Subsidiary of an Assumption Agreement in the form of Annex I hereto. The
parties hereto acknowledge and agree that with respect to the Steel Winds
Project, if the Steel Winds Letters of Credit are in existence as of the
Subsequent Closing Date and the Steel Winds Project Company is the obligor
thereunder, then the Steel Winds Companies shall be required to become a party
to this Agreement upon the termination or expiration of such Steel Winds
Letters of Credit.

 

8.15                           Termination; Releases.  (a) Upon the indefeasible payment and
performance in full (in cash) of any and all Obligations (other than inchoate
Obligations for which no claims have been asserted), whether due or to become
due, direct or indirect, absolute or contingent, and howsoever evidences, held
or acquired, this Agreement and the other Loan Documents shall automatically
terminate and be of no further force and effect (other than the provisions
hereof that by their express terms survive such termination) and at the
direction of the Majority Lenders, the Administrative Agent and Collateral
Agent shall execute and deliver such documentation confirming such termination
as may reasonably be requested by the Borrower and the Collateral shall
automatically be released from the Liens of under this Agreement and any other
Security Documents and the guarantees thereunder terminated, all without
delivery of any instrument or performance of any act by any Person.

 

46

 

(b)                                 Notwithstanding anything to the contrary
contained herein or in any other Loan Document, the Agents are hereby
irrevocably authorized by each Lender (without requirement of notice to or
consent of any Lender) to take any action requested by the Borrower having the
effect of releasing any Collateral or guarantee obligations under Section 2
hereunder (i) to the extent necessary to permit consummation of any
transaction permitted by the Loan Documents or that has been consented to by
the Majority Lenders or (ii) the circumstances described in clause (a) above.

 

(c)                                  Upon the incurrence or issuance of any
Qualified Tax Equity Financing or any Steel Winds Permitted Project
Indebtedness, in each case with respect to the Steel Winds Project (including
by either of the Steel Winds Companies) on and after the Subsequent Closing
Date and so long as the Net Cash Proceeds thereof have been applied in
accordance with Section 4.1(a) of the Credit Agreement to the extent
the Steel Winds Companies have granted Collateral pursuant to Section 9.22
of the Credit Agreement and Section 8.14 of this Agreement, the Collateral
granted by the Steel Winds Companies shall be released from the Liens created
by the Security Documents, and the Security Documents shall no longer be
applicable to the Steel Winds Companies and all obligations (other than those
that expressly survive such release) of the Steel Winds Companies (including
the guarantee obligations of Steel Winds Holding Company) under this Agreement
and any other Security Document shall terminate, all without delivery of any
instrument or performance of any act by any Person.

 

8.16                           Security Interest Absolute.  To the maximum extent permitted by applicable
Requirement of Law, the rights and remedies of the Collateral Agent hereunder,
the Liens created hereby, and, subject to Section 2.5, the obligations of
the Grantors under this Agreement are absolute, irrevocable and unconditional
and will remain in full force and effect 

 

47

 

without
regard to, and will not be released, suspended, discharged, terminated or
otherwise affected by, any circumstance or occurrence whatsoever (other than
termination or release pursuant to Section 8.15), including: (a) any
renewal, extension, amendment or modification of, or addition or supplement to
or deletion from, any of the Loan Documents or any other instrument or
agreement referred to therein, or any assignment or transfer of any thereof, (b) any
waiver of, consent to or departure from, extension, indulgence or other action
or inaction under or in respect of any of the Obligations, this Agreement, any
other Loan Document or other instrument or agreement relating thereto, or any
exercise or non-exercise of any right, remedy, power or privilege under or in
respect of the Obligations, this Agreement, any other Loan Document or any such
other instrument or agreement relating thereto, (c) any furnishing of any
additional security for the Obligations or any part thereof to the Collateral
Agent or any other Person or any acceptance thereof by the Collateral Agent or
any other Person or any substitution, sale, exchange, release, surrender or
realization of or upon any such security by the Collateral Agent or any other
Person or the failure to create, preserve, validate, perfect or protect any other
Lien granted to, or purported to be granted to, or in favor of, the Collateral
Agent or any other Secured Party, (d) any invalidity, irregularity or
unenforceability of all or any part of the Obligations, any other Loan Document
or any other agreement or instrument relating thereto or any security therefor,
(e) the acceleration of the maturity of any of the Obligations or any
other modification of the time of payment thereof, (f)  any judicial or
nonjudicial foreclosure or sale of, or other election of remedies with respect
to, any interest in real property or other collateral serving as security for
all or any part of the Obligations, even though such foreclosure, sale or
election of remedies may impair the subrogation rights of any Grantor or may
preclude any Grantor from obtaining reimbursement, contribution,
indemnification or other recovery and even 

 

48

 

though
such Grantor may or may not, as a result of such foreclosure, sale or election
of remedies, be liable for any deficiency, (g) any act or omission of the
Collateral Agent or any other Person (other than payment of the Obligations)
that directly or indirectly results in or aids the discharge or release of any
Grantor or any part of the Obligations or any security or guarantee (including
any letter of credit) for all or any part of the Obligations by operation of
law or otherwise, (h) the election by the Collateral Agent, in any
bankruptcy proceeding of any Person, of the application or non-application of Section 1111(b)(2) of
the Bankruptcy Code, (i) any extension of credit or the grant of any Lien
under Section 364 of the Bankruptcy Code, (j) any use of cash
collateral under Section 363 of the Bankruptcy Code, (k) any
agreement or stipulation with respect to the provision of adequate protection
in any bankruptcy proceeding of any Person, (l) the avoidance of any Lien
in favor of the Collateral Agent for any reason, (m) any bankruptcy,
insolvency, reorganization, arrangement, readjustment of debt, liquidation or
dissolution proceeding commenced by or against any Person, including any
discharge of, or bar or stay against collecting, all or any part of the
Obligations (or any interest on all or any part of the Obligations) in or as a
result of any such proceeding or (n) any other event or circumstance
whatsoever which might otherwise constitute a legal or equitable discharge of a
surety or a guarantor, it being the intent of this Section 8.16 that the
obligations of any Grantor hereunder shall be absolute, irrevocable and
unconditional under any and all circumstances.

 

8.17                           Reinstatement.  This Agreement and the Liens created
hereunder shall automatically be reinstated if at any time payment, or any part
thereof, of any of the Obligations is rescinded or must otherwise be restored
or returned by the Collateral Agent or any Secured Party upon the insolvency,
bankruptcy, dissolution, liquidation or reorganization of the Borrower or any
Guarantor, or upon or as a result of the appointment of a receiver, intervenor
or

 

49

 

conservator
of, or trustee or similar officer for, the Borrower or any Guarantor or any
substantial part of its property, or otherwise, all as though such payments had
not been made, and such Grantor shall indemnify the Collateral Agent, each
other Secured Party and its respective employees, officers and agents on demand
for all reasonable fees, costs and expenses (including reasonable fees, costs
and expenses of counsel) incurred by the Collateral Agent, such other Secured
Party or their respective employees, officers or agents in connection with such
reinstatement, rescission or restoration.

 

8.18         WAIVER OF JURY TRIAL.  EACH PARTY HERETO IRREVOCABLY AND
UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY LEGAL ACTION OR PROCEEDING RELATING
TO THIS AGREEMENT OR ANY OTHER LOAN DOCUMENT AND FOR ANY COUNTERCLAIM THEREIN.

 

8.19         Intercreditor Agreement.  Notwithstanding anything to the contrary
herein, in the case of any inconsistency between this Agreement and the
Intercreditor Agreement, the Intercreditor Agreement shall govern.

 

IN WITNESS
WHEREOF, each of the undersigned has caused this Agreement to be duly executed
and delivered as of the date first above written.

 

[NAME OF GRANTOR]

 

By:

 

Name:

 

50

 

	
  Title:

  
	
   

  
	
   

  
	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION, as Collateral Agent

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  
	
  Name:

  
	
   

  
	
  Title:

  

 

51

 

	
  Schedule
  1

  
	
   

  
	
  DESCRIPTION
  OF INVESTMENT PROPERTY

  
	
   

  
	
  Pledged
  Stock:

  
	
   

  
	
  Issuer

  	
   

  	
  Class of Stock

  	
   

  	
  Stock Certificate No.

  	
   

  	
  No. of Shares

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CSSW, LLC

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  100%
  of membership interests

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  New York Wind III, LLC

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  100%
  of membership interests

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Stetson Holdings, LLC

  	
   

  	
  N/A

  	
   

  	
  N/A

  	
   

  	
  100%
  of membership interests

  	
   

  
	
   

  
	
  Pledged
  Notes:

  
	
   

  
	
  None.

  

 

52

 

Schedule
2

 

FILINGS
AND OTHER ACTIONS

 

REQUIRED TO
PERFECT SECURITY INTERESTS

 

Uniform Commercial
Code Filings

 

Secretary of State
of the State of Delaware

 

Patent and
Trademark Filings

 

None.

 

Actions with respect
to Pledged Stock

 

Other Actions

 

Delivery of all
share certificates of Pledged Stock to Collateral Agent

 

53

 

Schedule 3

 

LOCATION OF JURISDICTIONS OF ORGANIZATION; FEDERAL
IDENTIFICATION NUMBERS; CHIEF EXECUTIVE OFFICES

 

Full and Correct
Legal Name CSSW HOLDINGS, LLC CSSW, LLC

 

Type of
Organization Limited Liability Company Limited Liability Company

 

	
  Jurisdiction of Organization

  	
  Delaware

  	
  Delaware

  
	
   

  	
   

  	
   

  
	
  Organizational ID Number

  	
  4707418

  	
  4707420

  

 

Mailing Address c/o
First Wind Energy, LLC

 

85 Wells Avenue, Suite 305

 

Newton, MA 02459

 

Attention:  President c/o First Wind Energy, LLC

 

85 Wells Avenue, Suite 305

 

Newton, MA 02459

 

Attention:  President

 

	
  Place of Business

  	
  Delaware

  	
  Delaware

  

 

Location of Chief
Executive Officer c/o First Wind Energy, LLC

 

85 Wells Avenue, Suite 305

 

Newton, MA 02459

 

Attention:  President c/o First Wind Energy, LLC

 

85 Wells Avenue, Suite 305

 

Newton, MA 02459

 

Attention:  President

 

	
  Change of Name

  	
  N/A

  	
  N/A

  

 

54

 

Schedule 4

 

COPYRIGHTS AND
COPYRIGHT LICENSES

 

None.

 

PATENTS AND PATENT
LICENSES

 

None.

 

TRADEMARKS AND
TRADEMARK LICENSES

 

None.

 

55

 

Schedule 5

 

NOTICE ADDRESSES
OF GUARANTORS

 

c/o First Wind
Energy, LLC

 

85 Wells Avenue, Suite 305

 

Newton, MA 02459

 

56

 

Schedule 6

 

COMMERCIAL TORT
CLAIMS

 

None.

 

57

 

Schedule 7

 

DEPOSIT AND SECURITY
ACCOUNTS

 

None.

 

58

 

Annex I to

 

Guarantee and
Security Agreement

 

ASSUMPTION
AGREEMENT, dated as of
                    ,
20    , made by                             
(the “Additional Grantor”), in favor of Wells Fargo Bank, National Association,
as collateral agent (in such capacity, and together with its successors and
assigns in such capacity, the “Collateral Agent”) for the benefit of PIP3PX
FirstWind Debt Ltd. and PIP3GV FirstWind Debt Ltd. (the “Initial Lenders”) and
the banks and other financial institutions or entities (the “Other Lenders” and
together with the Initial Lenders, the “Lenders”) parties to the Credit
Agreement referred to below.  All
capitalized terms not defined herein shall have the meaning ascribed to them in
such Credit Agreement referred to below.

 

59

 

W I T N E S S E T
H :

 

WHEREAS, CSSW, LLC
as borrower (the “Borrower”),  CSSW
Holdings, LLC (“CSSW Parent”), the Initial Lenders, Wells Fargo Bank, National
Association, as administrative agent (in such capacity, and together with its
successors and assigns in such capacity, the “Administrative Agent”) and the
Collateral Agent have entered into the Credit Agreement, dated as of July 17,
2009 (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”);

 

WHEREAS, in
connection with the Credit Agreement, the Borrower and certain of its
Affiliates (other than the Additional Grantor) have entered into the Guarantee
and Security Agreement, dated as of July 17, 2009 (as amended,
supplemented or otherwise modified from time to time, the “Guarantee and
Security Agreement”) in favor of the Collateral Agent for the ratable benefit
of the Secured Parties;

 

WHEREAS, the Credit
Agreement requires in certain circumstances for the Additional Grantor to
become a party to the Guarantee and Security Agreement on or after the
Subsequent Closing Date; and

 

WHEREAS, the
Additional Grantor has agreed to execute and deliver this Assumption Agreement
in order to become a party to the Guarantee and Security Agreement;

 

NOW, THEREFORE, IT
IS AGREED:

 

1.  Guarantee and Security Agreement.  By executing and delivering this Assumption
Agreement, the Additional Grantor, as provided in Section 8.14 of the
Guarantee and Security Agreement, hereby becomes a party to the Guarantee and
Security Agreement as a Grantor thereunder with the same force and effect as if
originally named therein as a Grantor and, without limiting the generality of
the foregoing, hereby expressly assumes all obligations and liabilities of a
Grantor thereunder.  The information set
forth in Annex I-A hereto is hereby 

 

60

 

added
to the information set forth in the Schedules to the Guarantee and Security
Agreement. The Additional Grantor hereby represents and warrants that each of
the representations and warranties contained in Section 4 of the Guarantee
and Security Agreement is true and correct on and as the date hereof (after
giving effect to this Assumption Agreement) as if made on and as of such date.

 

2.  Governing Law.  THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED
BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF THE STATE OF
NEW YORK.

 

3.
Acknowledgment.  The undersigned hereby
acknowledges and consents to, the Intercreditor Agreement, dated as of July 17,
2009, between HSH Nordbank, AG, New York Branch, as the Holdings Agent and
Wells Fargo Bank, National Association, as the Aimco Agent. The undersigned
agrees to be bound by the Intercreditor Agreement, and that the Intercreditor
Agreement may be amended by Aimco Agent and Holdings Agent (as such terms are
defined in the Intercreditor Agreement) without notice to, or the consent of,
the Additional Grantor or any other Person.

 

IN WITNESS
WHEREOF, the undersigned has caused this Assumption Agreement to be duly
executed and delivered as of the date first above written.

 

	
  [ADDITIONAL GRANTOR]

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  
			

 

61

 

Annex I-A to

 

Assumption
Agreement

 

Supplement to
Schedule 1

 

Supplement to
Schedule 2

 

Supplement to
Schedule 3

 

Supplement to
Schedule 4

 

Supplement to
Schedule 5

 

Supplement to
Schedule 6

 

Supplement to Schedule 7

 

62

 

Exhibit B

 

[FORM OF TERM NOTE]

 

 

TERM NOTE

 

 

New York, New York

 

	
  $                 

  	
  ,
  20  

  

 

FOR VALUE RECEIVED, the
undersigned, CSSW, LLC, a Delaware limited liability company (the “Borrower”)
hereby unconditionally promises to pay to the order of [Insert name of Lender]
(the “Lender”) or its registered assigns at the Payment Office specified
in the Credit Agreement (as hereinafter defined), in lawful money of the United
States and in immediately available funds, the principal sum of
                            
DOLLARS ($                  ),
with interest, including PIK Interest, if any, at the rate and payable in the
manner stated in the Amended and Restated Credit Agreement dated as of December     ,
2009 (as amended, modified, supplemented or restated and in effect from time to
time, the “Credit Agreement”), by and among (i) the Borrower, (ii) CSSW
Holdings, LLC, (iii) the Lenders party thereto, and (iv) Wells Fargo
Bank, National Association, as Administrative Agent and as Collateral Agent.

 

This is a “Term Note” to
which reference is made in the Credit Agreement and is subject to all terms and
provisions thereof. The principal of, and interest (including PIK Interest, if
any) on, this Term Note shall be payable at the times, in the manner, and in
the amounts as provided in the Credit Agreement and shall be subject to
prepayment and acceleration as provided therein. This Term Note is secured and
guaranteed as provided in the Loan Documents. Capitalized terms used herein and
not defined herein shall have the meanings assigned to such terms in the Credit
Agreement.

 

The Lender’s books and
records concerning the Term Loans, the accrual of interest (including PIK
Interest) thereon, and the repayment of such Term Loans, shall be prima facie
evidence of the existence and amounts of the Term Loans and other Obligations
therein recorded. The failure of the Lender to maintain such books and records,
or any error therein, shall not in any manner affect the obligations of the
Borrower to repay or pay the Term Loans, accrued interest thereon (including
PIK Interest) and the other Obligations of the Borrower to such Lender
hereunder in accordance with the terms of the Credit Agreement.

 

No delay or omission by any
Agent or any Lender in exercising or enforcing any of such Agent’s or such
Lender’s powers, rights, privileges, remedies or discretions hereunder shall
operate as a waiver thereof on that occasion nor on any other occasion. No
waiver of any Event of Default shall operate as a waiver of any other Event of
Default, nor as a continuing waiver.

 

In addition to any other
remedy provided in the Credit Agreement, upon the occurrence of any Event of
Default (other than an Event of Default specified in Section 11.1(g) of
the Credit Agreement), all amounts then unpaid on this Term Note (including any
accrued and unpaid interest) shall, upon notice to the Borrower by the
Administrative Agent (acting at the direction of the Majority Lenders),
immediately become due and payable.  If
an Event of Default specified in Section 11.1(g) shall occur with
respect to the Borrower, all amounts then unpaid on this Term

 

 

Note (including any accrued
and unpaid interest) shall immediately become due and payable without notice.

 

Except as otherwise provided
in the Credit Agreement, all parties now and hereafter liable with respect to
this Term Note, whether maker, principal, surety, guarantor, endorser or
otherwise, hereby waive presentment, demand, notice and protest, and also waive
any delay on the part of the holder hereof.

 

This Term Note shall be
binding upon the Borrower, and each endorser and guarantor hereof, and upon
their respective successors, assigns, and representatives, and shall inure to
the benefit of the Lenders and their successors, endorsees and assigns.

 

THIS TERM NOTE SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW
YORK.

 

THESE INITIAL TERM LOANS
WERE ISSUED WITH ORIGINAL ISSUE DISCOUNT (“OID”).  LENDERS MAY OBTAIN THE ISSUE PRICE, THE
AMOUNT OF OID, THE ISSUE DATE AND THE YIELD TO MATURITY WITH RESPECT TO THESE
LOANS BY SUBMITTING A WRITTEN REQUEST TO BORROWER AT ITS NOTICE OFFICE.

 

[SIGNATURE PAGE FOLLOWS]

 

2

 

IN WITNESS WHEREOF, the
Borrower has caused this Term Note to be duly executed as of the date set forth
above.

 

	
   

  	
  CSSW,
  LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

3

 

Exhibit C

 

[FORM OF NOTICE OF
BORROWING]

 

NOTICE OF BORROWING

 

[Date](1)

 

Wells Fargo Bank,
National Association

as Administrative Agent for the Lenders party

to the Credit Agreement referred to below

45 Broadway, 14th Floor

New York, NY 10006

Attention:  CMES-CSSW, LLC

 

Ladies
and Gentlemen:

 

The undersigned, CSSW LLC, a Delaware limited
liability company (the “Borrower”), refers to the Amended and Restated
Credit Agreement dated as of December     , 2009 (as
amended, modified, supplemented or restated and in effect from time to time,
the “Credit Agreement,” the terms defined therein being used herein as
therein defined) among the Borrower, CSSW Holdings, LLC, the Lenders party
thereto, and Wells Fargo Bank, National Association, as Administrative Agent
and as Collateral Agent.

 

Pursuant to Section 2.2 of the Credit
Agreement, the Borrower hereby gives you notice, irrevocably, that it requests
Term Loans under the Credit Agreement, and in that connection sets forth below
the information relating to such Term Loans as is required by Section 2.2
of the Credit Agreement:

 

(i)       The aggregate principal
amount of the Term Loans to be made on the [Initial Closing Date] [Subsequent
Closing Date] [Stetson II Closing Date] is
$                    .

 

(ii)      The
[Initial Closing Date] [Subsequent Closing Date] [Stetson II Closing Date] is
[                ],
20    .

 

The undersigned hereby certifies that as of the
[Initial Closing Date] [Subsequent Closing Date] [Stetson II Closing Date],
each of the conditions precedent contained in [Section 3.1] [Section 3.2]
[Section 3.4] of the Credit Agreement will be fully satisfied or waived by
the Administrative Agent and the Initial Lenders.

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  CSSW,
  LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

(1)           At least three
Business Days prior to the applicable Closing Date, except if the borrowing is
to occur on the Initial Closing Date.

 

 

Exhibit D

 

[FORM OF LEGAL OPINION OF CSSW PARENT’S,
BORROWER’S AND STEEL WINDS PROJECT COMPANY’S IN-HOUSE COUNSEL]

 

To be provided by Goodwin Procter LLP

 

 

Exhibit E

 

[FORM OF LEGAL OPINION OF GOODWIN PROCTER LLP]

 

To be provided by Goodwin Procter LLP

 

 

Exhibit F

 

[FORM OF ASSIGNMENT AND
ACCEPTANCE]

 

 

ASSIGNMENT AND ACCEPTANCE

 

 

Reference is made to the
Amended and Restated Credit Agreement dated as of December     ,
2009 (as amended, modified, supplemented or restated and in effect from time to
time, the “Credit Agreement”) by and among (i) CSSW, LLC (the “Borrower”),
(ii) CSSW Holdings, LLC, (iii) the Lenders party thereto, and (iv) Wells
Fargo Bank, National Association, as Administrative Agent and as Collateral
Agent. Capitalized terms used herein and not defined herein shall have the
meanings assigned to such terms in the Credit Agreement.

 

(the
“Assignor”) and
                    
(the “Assignee”) agree as follows:

 

1.                                       The Assignor hereby irrevocably sells and assigns to the
Assignee without recourse to the Assignor, and the Assignee hereby irrevocably
purchases and assumes from the Assignor without recourse to the Assignor, the
interest described in Section 1 of Schedule I hereto (the “Assigned
Interest”) in and to the Assignor’s rights and obligations as a Lender
under the Credit Agreement as of the Effective Date (defined below).  After giving effect to such sale and
assignment, the principal amount of the Term Loans owing to the Assignor and
the Assignee will be as set forth in Section 2 of Schedule I
hereto.

 

2.                                       The Assignor (a) represents and warrants that (i) it
is the legal and beneficial owner of the Assigned Interest and that the
Assigned Interest is free and clear of any adverse claim and (ii) it is
legally authorized to enter into this Assignment and Acceptance; (b) makes
no representation or warranty and assumes no responsibility with respect to any
statements, warranties or representations made in, or in connection with, the
Credit Agreement, any other Loan Document or any other instrument or document
furnished pursuant thereto or the execution, legality, validity,
enforceability, genuineness, sufficiency or value of the Credit Agreement, any
other Loan Document or any other instrument or document furnished pursuant
thereto; (c) makes no representation or warranty and assumes no
responsibility with respect to the financial condition of the Borrower, any of
its Affiliates or any other obligor or the performance or observance by the
Borrower, any of its Affiliates or any other obligor of any of their respective
obligations under the Credit Agreement, any other Loan Document or any other
instrument or document furnished pursuant thereto; and (d) confirms that
the amount of the Term Loans subject to this Assignment and Acceptance is not
less than $10,000,000 or a higher integral multiple of $1,000,000 in excess
thereof, or, if less, 100% of the remaining amount of the Assignor’s Term
Loans.

 

3.                                       The Assignee (a) confirms that it has received a copy
of the Credit Agreement, together with copies of the financial statements
referred to in Sections 7.1 and 7.2 thereof and such other documents and
information as it has deemed appropriate to make its own credit analysis and decision
to enter into this Assignment and Acceptance; (b) agrees that

 

 

it will, independently and without
reliance upon the Agents, the Assignor or any other Lender, and based on such
documents and information as it shall deem appropriate at the time, continue to
make its own credit decisions in taking or not taking action under the Credit
Agreement, the other Loan Documents or any other instrument or document
furnished pursuant hereto or thereto; (c) appoints and authorizes the
Agents to take such action as agents on its behalf and to exercise such powers
under the Credit Agreement, the other Loan Documents or any other instrument or
document furnished pursuant hereto or thereto as are delegated to the Agents by
the terms thereof, together with such powers as are reasonably incidental
thereto; (d) agrees that it will be bound by the provisions of the Credit
Agreement and will perform in accordance with its terms all of the obligations
which, by the terms of the Credit Agreement, are required to be performed by it
as a Lender; (e) represents and warrants that it is legally authorized to
enter into this Assignment and Acceptance; (f) specifies as its lending
office (and address for notices) the office set forth beneath its name on the
signature pages hereof; and (g) agrees to deliver to the
Administrative Agent and the Borrower such documents and other information as
required by Section 4.5(f) of the Credit Agreement.

 

4.                                       Following the execution of this Assignment and Acceptance by
the Assignor and the Assignee, it will be delivered to the Administrative
Agent, together with (a) payment instructions, addresses, any required tax
forms, contact information and any related information with respect to the
Assignee and (b) a processing fee in the amount of $3,500 for acceptance
and recording by the Administrative Agent. Unless otherwise specified on
Schedule I hereto, the effective date of this Assignment and Acceptance shall
be the date that the Administrative Agent notifies the Assignor and the
Borrower that it has received (and provided its consent with respect to, if
necessary) a fully executed version of this Assignment and Acceptance and
payment of the above-referenced processing fee and the Borrower has provided
its consent to such assignment, if required (such consent not to be
unreasonably delayed, withheld or conditioned).

 

5.                                       From and after the Effective Date, (a) the Assignee
shall be a party to the Credit Agreement and, to the extent of the interest
assigned by this Assignment and Acceptance, shall have the rights and
obligations under the Credit Agreement of a Lender thereunder and under the
other Loan Documents and shall be bound by the provisions thereof, and (b) the
Assignor shall, to the extent provided in this Assignment and Acceptance,
relinquish its rights and be released from its obligations under the Credit
Agreement and the other Loan Documents with respect to the Assigned Interest,
other than those relating to events or circumstances occurring prior to the
Effective Date.

 

6.                                       From and after the Effective Date, the Administrative Agent
shall make all payments under the Credit Agreement in respect of the Assigned
Interest (including, without limitation, all payments of principal, interest
and fees with respect thereto) to the Assignee whether such amounts have
accrued prior to the Effective Date or accrue subsequent to the Effective Date.
The Assignor and Assignee shall make all appropriate adjustments in payments
under the Credit Agreement for periods prior to the Effective Date or with
respect to the making of this assignment directly between themselves.

 

 

7.                                       This Assignment and Acceptance shall be governed by, and be
construed and interpreted in accordance with, the law of the State of New York.

 

8.                                       This Assignment and Acceptance may be executed in any number
of counterparts and by the different parties hereto on separate counterparts,
each of which when so executed and delivered shall be deemed to constitute an
original, but all of which shall together constitute one and the same
instrument.  Delivery of an executed
signature page of this Assignment and Acceptance by email or facsimile
transmission shall be effective as delivery of a manually executed counterpart
thereof.

 

[SIGNATURE PAGE FOLLOWS]

 

 

IN WITNESS WHEREOF, the
parties hereto have caused this Assignment and Acceptance to be executed by
their respective officers thereunto duly authorized, as of the date first above
written on Schedule I hereto.

 

	
   

  	
  [ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Lending
  Office (and address for notices):

  
	
   

  	
   

  
	
   

  	
  [Address]

  
	
   

  	
   

  
	
   

  	
   

  
	
  Accepted
  this            day

  	
   

  
	
  of
                  ,

  	
   

  
	
   

  	
   

  
	
  WELLS
  FARGO BANK, NATIONAL ASSOCIATION,

  	
   

  
	
  as
  Administrative Agent

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

 

	
  Consented
  to this         

  	
   

  
	
  day
  of
                  ,

  	
   

  
	
   

  	
   

  
	
  CSSW,
  LLC, as Borrower

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

 

Schedule I to Assignment and Acceptance

 

Dated
              ,

 

This
is Schedule I to Assignment and Acceptance with respect to the Amended and
Restated Credit Agreement dated as of December     ,
2009 (as amended, modified, supplemented or restated and in effect from time to
time, the “Credit Agreement”) by and among (i) CSSW, LLC (the “Borrower”),
(ii) CSSW Holdings, LLC, (iii) the Lenders party thereto, and (iv) Wells
Fargo Bank, National Association, as Administrative Agent and as Collateral
Agent.

 

	
  Section 1.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name
  of Assignor:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name
  of Assignee:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Principal
  amount of Term Loans assigned:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Section 2.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Principal
  amount of Term Loans owing to Assignor:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Principal
  amount of Term Loans owing to Assignee:

  	
   

  	
  $

  
	
   

  	
   

  	
   

  
	
  Section 3.

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Effective
  Date:

  	
   

  	
                          ,

  

 

 

Exhibit G

 

[INITIAL CLOSING DATE ORGANIZATIONAL STRUCTURE]

 

To be provided by Goodwin Procter LLP

 

 

 

 

Exhibit H

 

[FORM OF UNDERTAKING AGREEMENT]

 

To be attached

 

 

UNDERTAKING AGREEMENT

 

Dated as of July 17, 2009

 

FIRST WIND HOLDINGS, LLC

 

and

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as Administrative Agent and Collateral Agent

 

 

UNDERTAKING
AGREEMENT (this “Undertaking Agreement”), dated as of July 17, 2009, by
and among FIRST WIND HOLDINGS, LLC, a limited liability company duly organized
and validly existing under the laws of the State of Delaware (“FWH”), WELLS
FARGO BANK, NATIONAL ASSOCIATION, as administrative agent for the Lenders
(together with its successors and assigns in such capacity, the “Administrative
Agent”) and WELLS FARGO BANK, NATIONAL ASSOCIATION, as collateral agent
(together with its successors and assigns in such capacity, the “Collateral
Agent”) for the benefit of the Secured Parties.

 

RECITALS

 

WHEREAS, CSSW,
LLC, a Delaware limited liability company (the “Borrower”), CSSW Holdings, LLC
(“CSSW Parent”), a Delaware limited liability company and the Borrower’s
parent, various financial institutions party thereto as Lenders from time to
time, the Administrative Agent and the Collateral Agent have entered into the
Credit Agreement dated as of July 17, 2009 (as amended, restated,
supplemented or otherwise modified from time to time in accordance with the
terms thereof, the “Credit Agreement”), pursuant to which the Lenders have
agreed to provide the Term Loans to the Borrower on the terms and conditions
set forth therein;

 

WHEREAS, certain
Subsidiaries of the Borrower own, operate and maintain the Projects;

 

WHEREAS, FWH
currently provides, on behalf of such Subsidiaries, the guarantees, letters of
credits and other credit support specified on Schedule I hereto (each an “Existing
Credit Support Instrument”) to satisfy the credit support obligations under the
Material Project Documents specified in such Schedule;

 

 

WHEREAS, the
Borrower currently owns, indirectly, Prattsburgh, and intends to Unwind the
rights and assets of Prattsburgh and transfer its equity interests in
Prattsburgh to an Affiliate (other than to any of its Subsidiaries); and

 

WHEREAS, FWH is an
indirect parent of the Borrower, and the issuance, execution and delivery of
this Undertaking Agreement is a condition precedent to the making of the Term
Loans by the Lenders.

 

NOW, THEREFORE, to
induce the Lenders to make the Term Loans and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
FWH desires to confirm and agree to certain matters for the benefit of the
Collateral Agent, the Administrative Agent and the other Secured Parties.  Accordingly, the parties hereto agree as
follows:

 

ARTICLE 1

 

DEFINITIONS

 

1.01         Definitions.  Capitalized terms used herein (including in
the preamble and recitals hereto) and not defined herein shall have the
meanings assigned thereto in the Credit Agreement.  The rules of interpretation set out in
Sections 1.2 and 1.3 of the Credit Agreement are incorporated herein by
reference and shall apply to this Undertaking Agreement.

 

 

ARTICLE 2

 

THE CONFIRMATIONS
AND AGREEMENTS

 

2.01         Confirmations and Agreements.  FWH hereby confirms to and covenants and
agrees with the Administrative Agent and the Collateral Agent, for the benefit
of the Secured Parties, that, on behalf of each Subsidiary listed on Schedule I
hereto, FWH will maintain each of the Existing Credit Support Instruments set
forth on Schedule I in accordance with the terms of the relevant Material
Project Document (including extending the term of any such Existing Credit
Support Instrument if required thereunder) until, with respect to any Existing
Credit Support Instrument, the earliest to occur of (a) the date on which
the relevant Project Company or other Subsidiary of the Borrower (any such
Project Company or Subsidiary being referred to as a “New LC Obligor”) is able
to and provides pursuant to Permitted Project Indebtedness substitute credit
support that is acceptable to the relevant counterparty and in full replacement
of such Existing Credit Support Instrument, in accordance with the terms and
conditions of the applicable Material Project Document and the Loan Documents, (b) the
date on which all of FWH’s obligations with respect to the Existing Credit
Support Instrument have been assumed by a New LC Obligor, (c) the date on
which this Undertaking Agreement terminates under Section 2.03 and (d) after
an acceleration of the Term Loans under the Credit Agreement, the date upon
which the Collateral Agent transfers, assigns, sells or otherwise disposes of,
directly or indirectly, the Steel Winds Project in connection with its exercise
of remedies thereunder to an unaffiliated third party purchaser.

 

2.02         Indemnity.  Without waiving any rights, claims or
defenses FWH or any of its Affiliates may have under any agreement with an
Indemnified Person other than the Loan Documents, FWH shall pay, indemnify,
save and hold the Administrative Agent, the Collateral Agent and each Secured
Party and each of their respective officers, directors, employees, 

 

 

counsel,
agents and attorneys-in-fact and Affiliates (each, an “Indemnified Person”)
harmless from and against any and all liabilities, obligations, losses,
damages, penalties, claims, actions, judgments, suits, costs, charges, expenses
or disbursements (including Attorney Costs) of any kind or nature whatsoever
which may at any time (including at any time following the Unwind of
Prattsburgh or repayment of the Term Loans or the termination, resignation or
replacement of any Agent or any Lender) be imposed on, incurred by or asserted
against any such Person in any way relating to, or arising out of, the
business, activities, assets, liabilities or obligations of Prattsburgh,
including the Unwind of Prattsburgh, or the actions of the Borrower or any of
its Affiliates related thereto, and any investigation, litigation or proceeding
(including any bankruptcy, insolvency, reorganization or other similar
proceeding or appellate proceeding) related to Prattsburgh, whether or not any
Indemnified Person is a party thereto (all the foregoing, collectively, the “Indemnified
Liabilities”); provided that FWH shall not have any obligation hereunder to any
Indemnified Person with respect to Indemnified Liabilities determined by a
court of competent jurisdiction in a final and non-appealable order to have
arisen from the fraud, gross negligence or willful misconduct of such
Indemnified Person.

 

2.03         Termination.  The obligations of FWH under this Undertaking
Agreement shall terminate on the date of termination of the Credit Agreement
and the other Loan Documents in accordance with Section 13.21 of the
Credit Agreement.

 

ARTICLE 3

 

MISCELLANEOUS

 

3.01         Notices.  All notices and other communications provided
for hereunder shall be:  (a) given
or made in writing in the manner set out in, and deemed to have been duly 

 

 

given
in accordance with, Section 13.3 of the Credit Agreement and (b) sent
to a party hereto at its address and contact number specified on the signature pages hereto,
or at such other address and contact number as is designated by such party in a
written notice to the other parties hereto.

 

3.02         No Waiver; Remedies Cumulative.  No failure or delay on the part of any of the
Secured Parties in exercising any right, power or privilege hereunder and no
course of dealing between FWH, the Borrower, the Guarantors and any Secured
Party shall operate as a waiver thereof, nor shall any single or partial
exercise of any right, power or privilege hereunder preclude any other or
further exercise thereof or the exercise of any other right, power or privilege
hereunder.  No notice to or demand on FWH
in any case shall entitle FWH to any other or further notice or demand in
similar or other circumstances or constitute a waiver of the rights of any
Secured Party to take any other or further action in any circumstances without notice
or demand.  All remedies, either under
this Agreement or pursuant to any Requirement of Law or otherwise afforded to
any Secured Party shall be cumulative and not alternative.

 

3.03         Amendments, Etc.  The terms of this Undertaking Agreement may
be waived, altered or amended only by an instrument in writing duly executed by
FWH, the Administrative Agent and the Collateral Agent (each acting on the
instructions of the Majority Lenders).

 

3.04         Successors and Assigns.   This Undertaking Agreement shall be binding
upon and inure to the benefit of the respective successors and assigns of FWH
and the respective successors and assignees of each Secured Party; provided,
however, that FWH shall not assign or transfer its rights or obligations
hereunder without the prior written consent of each of the Lenders.  Any purported assignment in violation of this
provision shall be void.

 

 

3.05         Counterparts.  This Undertaking Agreement may be executed in
any number of counterparts and by the different parties hereto on separate
counterparts, each of which when so executed and delivered shall be an
original, but all of which shall together constitute one and the same
instrument.  Delivery of an executed
signature page of this Undertaking Agreement by email or facsimile transmission
or Portable Document Format (i.e., PDF) shall be effective as delivery of a
manually executed counterpart thereof.

 

3.06         Governing Law; Submission to
Jurisdiction.  (a)            THIS UNDERTAKING AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK.

 

(b)           FWH hereby submits to the
nonexclusive jurisdiction of the United States District Court for the Southern
District of New York and of any New York State court sitting in New York City
for the purposes of all legal proceedings arising out of or relating to this
Undertaking Agreement or the transactions contemplated hereby.  FWH hereby irrevocably waives, to the fullest
extent permitted by applicable Requirements of Law, any objection which it may
now or hereafter have to the laying of the venue of any such proceeding brought
in such a court and any claim that any such proceeding brought in such a court
has been brought in an inconvenient forum. 
Nothing herein shall affect the right to serve process in any other manner
permitted by applicable Requirements of Law or any right to bring legal action
or proceedings in any other competent jurisdiction.  To the extent permitted by applicable
Requirements of Law, FWH further irrevocably agrees to the service of process
of any of the aforementioned courts in any suit, action or proceeding by the
mailing of copies thereof by certified mail, postage prepaid, return receipt
requested, to such party at the address referenced in Section 3.01, such
service to be effective upon the date indicated on the postal receipt returned
from FWH.

 

 

3.07         WAIVER OF JURY TRIAL.  EACH OF THE PARTIES HERETO HEREBY KNOWINGLY,
VOLUNTARILY AND INTENTIONALLY WAIVES THE RIGHT ANY OF THEM MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED ON, OR ARISING OUT OF, UNDER
OR IN CONNECTION WITH, THIS AGREEMENT, THE TERM NOTES OR ANY OTHER LOAN
DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER
VERBAL OR WRITTEN) OR ACTIONS OF ANY PARTY RELATING HERETO OR THERETO.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR
THE SECURED PARTIES TO ENTER INTO THIS AGREEMENT.

 

3.08         Captions.  The captions and section headings appearing
herein are included solely for convenience of reference and are not intended to
affect the interpretation of any provision of this Undertaking Agreement.

 

3.09         Integration of Terms.  This Undertaking Agreement contains the
entire agreement between FWH and the Administrative Agent, the Collateral Agent
or any of the other Secured Parties relating to the subject matter hereof and
supersedes all oral statements and prior writing with respect hereto.

 

3.10         Collection Expenses.  FWH agrees to reimburse the Administrative
Agent, the Collateral Agent and any of the other Secured Parties for all
properly documented reasonable costs and expenses of the Administrative Agent,
the Collateral Agent or such other Secured Party (including, without
limitation, Attorney Costs) in connection with (a) any enforcement or
collection proceeding with respect to this Undertaking Agreement, including,
without limitation, all manner of participation in or other involvement with (i) bankruptcy,
insolvency, receivership, 

 

 

foreclosure,
winding up or liquidation proceedings, (ii) judicial or regulatory
proceedings and (iii) workout, restructuring or other negotiations or
proceedings (whether or not the workout, restructuring or transaction
contemplated thereby is consummated) and (b) the enforcement of this Section 3.10.

 

3.11         Severability.  Any provision hereof which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof and without affecting the validity
or enforceability of any provision in any other jurisdiction.

 

3.12         No Benefit to Borrower, CSSW Parent or
their Subsidiaries.  This Undertaking
Agreement is for the benefit of only the Administrative Agent, the Collateral
Agent and the other Secured Parties and is not for the benefit of the Borrower,
the CSSW Parent or any of the Borrower’s Subsidiaries.

 

3.13         No Bankruptcy.  So long as the Loan Documents remain in
effect and until the termination of this Undertaking Agreement in accordance
with Section 2.03, FWH shall not, without the prior written consent of the
Administrative Agent and the Collateral Agent, commence, or join with any other
Person in commencing, any bankruptcy, reorganization or insolvency proceeding
against CSSW Parent, the Borrower or any of the Borrower’s Subsidiaries.

 

3.14         Survival.  All indemnities set forth herein shall
survive the execution and delivery of this Undertaking Agreement and the Term
Loans and the making and repayment of the Term Loans.  In addition, each representation and warranty
made or deemed to be made pursuant hereto shall survive the making of such
representation and warranty.

 

 

IN WITNESS
WHEREOF, the parties hereto have caused this Undertaking Agreement to be duly
executed and delivered as of the day and year first above written.

 

 

	
  FIRST
  WIND HOLDINGS, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  Address
  for Notices:

  	
   

  
	
   

  	
   

  
	
  [                ]

  	
   

  
	
   

  	
   

  
	
  Attention:
  [                ]

  	
   

  
	
   

  	
   

  
	
  Telephone
  No.:
  [                ]

  	
   

  
	
   

  	
   

  
	
  Facsimile
  No.: [                ]

  	
   

  
	
   

  	
   

  
	
  E-Mail:
  [                ]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  WELLS
  FARGO BANK, N.A.,

  	
   

  
	
   

  	
   

  
	
  in
  its capacity as the Administrative Agent

  	
   

  
			

 

 

 

	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  
	
   

  	
   

  
	
  Address
  for Notices:

  	
   

  
	
   

  	
   

  
	
  [                ]

  	
   

  
	
   

  	
   

  
	
  Attn:
  [                ]

  	
   

  
	
   

  	
   

  
	
  Telephone
  No.:
  [                ]

  	
   

  
	
   

  	
   

  
	
  Facsimile
  No.:
  [                ]

  	
   

  
	
   

  	
   

  
	
  E-Mail:
  [                ]

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  WELLS
  FARGO BANK, N.A.,

  	
   

  
	
   

  	
   

  
	
  in
  its capacity as the Collateral Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  
	
  Name:

  	
   

  
	
   

  	
   

  
	
  Title:

  	
   

  

 

 

Address for Notices: 

 

[                ]

 

Attn:
[                ]

 

Telephone No.:
[                ]

 

Facsimile No.: [                ]

 

E-Mail:
[                ]

 

 

SCHEDULE I

 

EXISTING CREDIT SUPPORT

 

 

Exhibit I

 

[FORM OF INTERCREDITOR AGREEMENT]

 

To
be attached

 

 

Exhibit J

 

FORM OF

COMPLIANCE CERTIFICATE

 

This Compliance Certificate is delivered pursuant to
Section 7.4 of the Amended and Restated Credit Agreement, dated as of December     ,
2009 (as amended, supplemented or otherwise modified from time to time (the “Credit
Agreement”), among CSSW, LLC (the “Borrower”), CSSW Holdings, LLC,
the Lenders from time to time party thereto, and Wells Fargo Bank, National
Association, as the administrative agent (in such capacity, the “Administrative
Agent”) and as the collateral agent. 
Unless otherwise defined herein, terms defined in the Credit Agreement
and used herein shall have the meanings given to them in the Credit Agreement.

 

I, the undersigned, hereby certify, in my capacity
as
                    
and not in my individual capacity, to the Administrative Agent and the Lenders
as follows:

 

1.     I am the duly elected, qualified and acting
[Chief Financial Officer/Treasurer/Assistant Treasurer] of the Borrower.

 

2.     I have reviewed and am familiar with the
contents of this Certificate.

 

3.     I have reviewed the terms of the Credit
Agreement and the other Loan Documents and have made or caused to be made under
my supervision, a review in reasonable detail of the transactions and financial
condition of the Borrower and its Subsidiaries during the accounting period
covered by the financial statements attached hereto as Attachment 1
(the “Financial Statements”) and such Financial Statements fairly
present in all material respects the financial condition and results of
operations of the Borrower and its Consolidated Subsidiaries in accordance with
GAAP, consistently applied, as at the end of, and for, such periods (subject,
in the case of unaudited financial statements, to normal year-end audit
adjustments and absence of footnotes). 
Such review did not disclose the existence during or at the end of the
accounting period covered by the Financial Statements, and I have no knowledge
of the existence, as of the date of this Certificate, of any condition or event
which constitutes a Default or Event of Default[, except as set forth
below:                          ].

 

4.     [Attached hereto as Attachment 2 are
the computations showing compliance with the covenant set forth in Article 8
of the Credit Agreement.]

 

5.     [Attached hereto as Attachment 3 is
a calculation of Reserve Amounts, Excess Reserves, Excess Cash, Cohocton
Permitted Indebtedness set forth in clauses (1), (2) and (3) of the
definition thereof, Stetson Permitted Indebtedness set forth in clauses (1), (2) and
(3) of the definition thereof, and Other Permitted Indebtedness set forth
in clause (a) of the definition thereof, and a description of all amounts
applied in respect of Excess Reserves.](2)

 

6.     To the extent the computations,
calculations and other information set forth in this Certificate are based on
projections or other pro forma or forward-looking information, it is my good
faith belief that such projections and other pro forma or forward-looking
information are based on reasonable estimates, information and assumptions.

 

(2) Calculated on a semi-annual basis.

 

 

7.     The amount of the aggregate cash balance in
the Project accounts is as follows:

 

 

IN WITNESS WHEREOF, I have executed this Certificate
this            day of
        , 20    .

 

 

	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

[Signature Page to
Compliance Certificate]

 

 

Attachment 1

to Compliance Certificate

 

[Attach Financial Statements]

 

 

Attachment 2

to Compliance Certificate

 

The information described herein is as of
            ,
        , and pertains to the period
from                   ,
         to
                                
    ,         .

 

[Set forth Covenant Calculations]

 

 

Attachment 3

to Compliance Certificate

 

The information described herein is as of
            ,
        , and pertains to the period
from                   ,
         to
                                
    ,         .

 

[Calculations]

 

 

Exhibit K

 

[FORM OF STETSON II EFFECTIVE DATE
ORGANIZATIONAL STRUCTURE]

 

To be attached

 

 

Exhibit K

 

 

 

 

Schedule 1

Steel Winds Reorganization

 

1.               New York Wind III to
purchase all of Lehman First Wind Holdings, LLC Class B membership interests in
New York Wind II (and to deliver a copy of the related documentation to the
Initial Lenders).

 

2.               New York Wind III to
transfer Class A and Class B membership interests in New York Wind II to
Borrower.

 

3.               New York Wind II to transfer
membership interests in Prattsburgh to First Wind New York Holdings, LLC.

 

4.               Borrower to dissolve New
York Wind III or merge it into New York Wind II.  The limited liability company agreement of
New York Wind II will be amended and restated in form and substance
satisfactory to the Initial Lenders to be substantially similar to the existing
limited liability company agreement of New York Wind III, and a copy of such
amended and restated limited liability company agreement will be delivered to
the Initial Lenders at least ten (10) Business Days before the effectiveness of
the Steel Winds Reorganization.

 

5.               Evidence reasonably
satisfactory to the Initial Lenders of the termination of the Nominee Agreement
and release of pledges of Class A membership interests in New York Wind II and
each class of membership interests in New York Wind III by HSHN (and any other
action or consent required of HSHN). 
Full and complete copies of the related documentation will be delivered
to the Initial Lenders at least ten (10) Business Days before the effectiveness
of the Steel Winds Reorganization, with fully executed copies delivered
promptly after the Steel Winds Reorganization.

 

6.               Steel Winds Holding Company
and Steel Wind Project Company to give “all assets” pledge pursuant to the
Guarantee and Security Agreement (to the extent required by the Credit
Agreement).

 

7.               All necessary Governmental
Approvals for the Steel Winds Reorganization shall have been obtained and are
in full force and effect.

 

 

Schedule 1.1

Commitments

 

	
  Lender

  	
   

  	
  Commitment

  	
   

  	
  Percentage

  	
   

  
	
  A. Initial Closing Date

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PIP3PX
  FirstWind Debt Ltd.

  	
   

  	
  $

  	
  35,850,000

  	
   

  	
  35.85

  	
  %

  
	
  PIP3GV
  FirstWind Debt Ltd.

  	
   

  	
  $

  	
  64,150,000

  	
   

  	
  64.15

  	
  %

  
	
  TOTAL

  	
   

  	
  $

  	
  100,000,000

  	
   

  	
  100

  	
  %

  

 

	
  Lender

  	
   

  	
  Commitment

  	
   

  	
  Percentage

  	
   

  
	
  B. Subsequent Closing Date

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PIP3PX
  FirstWind Debt Ltd.

  	
   

  	
  $

  	
  5,377,500.00

  	
   

  	
  35.85

  	
  %

  
	
  PIP3GV
  FirstWind Debt Ltd.

  	
   

  	
  $

  	
  9,622,500.00

  	
   

  	
  64.15

  	
  %

  
	
  TOTAL

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  	
  100

  	
  %

  

 

	
  Lender

  	
   

  	
  Commitment

  	
   

  	
  Percentage

  	
   

  
	
  C. Stetson II Closing Date

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  PIP3PX
  FirstWind Debt Ltd.

  	
   

  	
  $

  	
  5,377,500.00

  	
   

  	
  35.85

  	
  %

  
	
  PIP3GV
  FirstWind Debt Ltd.

  	
   

  	
  $

  	
  9,622,500.00

  	
   

  	
  64.15

  	
  %

  
	
  TOTAL

  	
   

  	
  $

  	
  15,000,000.00

  	
   

  	
  100

  	
  %

  

 

Lender Wire Instructions:

 

Beneficiary Bank:

Bank Name: Canadian Imperial Bank of Commerce,
Toronto

SWIFT Code: CIBCCATT

 

2

 

Bank Address: 10102 Jasper Ave, Edmonton,
Alberta

 

Beneficiary Name/For further credit to:

Customer Clearing Code: //CC001000059

Customer Account Number: 0579319

Customer Account Name: PA Private Income Pool 3
Pensions PIP3PX

Customer Address: 340
Terrace Building, 9515 — 107 Street, Edmonton, AB T5K 2C3

 

Correspondent (aka Intermediary) bank:

Bank of America, N.A.

New York, N.Y.

ABA Code: 026009593

BIC: BOFAUS3N

 

3

 

Schedule 2

Stetson Transmission Line
Reorganization

 

Subject to the satisfaction of the Stetson Transfer
Conditions (as defined below), the Stetson I Project Company will transfer all
assets directly relating to the 38-mile 115 kV generator lead line (connecting
the Stetson I Project’s wind turbines to the New England transmission system)
(the “Transmission Assets”) to a to-be-formed special purpose company
(the “Gen Lead Company”) set forth below.  The Gen Lead Company will be a wholly-owned
indirect subsidiary of the Parent, whose sole purpose will be to own, operate
and maintain the generator lead line assets relating to the Stetson I Project
and other projects owned (directly or indirectly) in whole or in part by the
Parent.  Concurrently with the Stetson I
Project Company’s transfer of such Transmission Assets, the Stetson I Project
Company will (a) obtain an Equity Interest in the Gen Lead Company and (b) enter
into definitive agreements with the Gen Lead Company providing the Stetson I
Project Company with sufficient rights to transmission line access necessary
for operation of the Stetson Project (the “Transmission Agreements”).

 

The
Initial Lenders’ consent to the Stetson Transmission Line Reorganization shall
be subject to the satisfaction or waiver of the conditions precedent (the “Stetson
Transfer Conditions”) set forth below:

 

1.               The Borrower
shall provide the Initial Lenders with twenty-five (25) days’ prior notice of
the occurrence of the Stetson Transmission Line Reorganization, which notice
will be accompanied by:

 

a.               copies of the
primary transaction documents (including the Transmission Agreements and the
Organizational Documents of the Gen Lead Company) to be entered into in
connection therewith and all documentation related to Governmental Approvals;
and

 

b.              the certificate
of an Authorized Officer of the Borrower stating that (i) no Material Adverse
Effect could reasonably be expected to occur as a result of the Stetson
Transmission Line Reorganization; (ii) the Stetson I Project Company shall have
sufficient access rights to the transmission line after giving effect to the
Stetson Transmission Line Reorganization for the operation and maintenance of its
business; (iii) all necessary Governmental Approvals have been obtained or will
be obtained before the consummation of the Stetson Transmission Line
Reorganization, and, if obtained, are in full force and effect in connection
with the Stetson Transmission Line Reorganization; and (iv) the assets that are
being transferred to the Gen Lead Company are only those assets directly
related to the 38-mile 115 kV generator lead line and not otherwise necessary
for the operation of the Stetson I Project unrelated to such generator lead
line.

 

2.               The Initial
Lenders shall have the opportunity to review the documents delivered pursuant
to clause 1(a) above, which shall be reasonably satisfactory to them.

 

3.               After receipt of
the Borrower’s notice of the Stetson Transmission Line Reorganization, the
Initial Lenders shall have the right to engage an independent engineer selected
by 

 

 

them
(at the expense of Borrower) to confirm (within the twenty-five (25) day period
prior to the occurrence of the Stetson Transmission Line Reorganization) that (a)
the Stetson I Project Company shall have sufficient access rights to the
transmission line after giving effect to the Stetson Transmission Line
Reorganization for the operation and maintenance of its business, and (b) all necessary
Governmental Approvals have been obtained and are in full force and effect in
connection with the Stetson Transmission Line Reorganization.

 

5

 

Schedule 3

Stetson Reorganization

 

1.               Borrower to form the Stetson
Intermediate Holding Company.

 

2.               Borrower to transfer 100% of
the membership interests in the Stetson Holding Company to the Stetson
Intermediate Holding Company.

 

3.               First Wind Maine Holdings,
LLC to transfer 100% of the membership interests in the Stetson II Project
Company to the Stetson Holding Company. 
A copy of all documentation related to such transfer (including the
Organizational Documents of the Stetson Intermediate Holding Company) will be delivered
to the Initial Lenders at least three (3) Business Days before the
effectiveness of the Stetson Reorganization.

 

4.               Evidence reasonably
satisfactory to the Initial Lenders of the termination of the release of
pledges of the membership interests in and assets of the Stetson II Project Company
by HSHN (and any other action or consent required of HSHN).  Full and complete copies of the related
documentation will be delivered to the Initial Lenders at least three (3) Business
Days before the effectiveness of the Stetson Reorganization, with fully
executed copies delivered promptly after the Stetson Reorganization.

 

5.               Borrower to pledge all of
its Equity Interests in the Stetson Intermediate Holding Company pursuant to
the Guarantee and Security Agreement (to the extent required by the Amended and
Restated Credit Agreement).  Borrower to
take all actions for the creation and perfection of a first priority Lien
thereon as necessary or reasonably required by the Collateral Agent or the
Initial Lenders or otherwise required under the Amended and Restated Credit
Agreement, including Section 9.11 thereof, and under the Security
Documents.  Initial Lenders to release
Borrower’s pledge of its Equity Interests in the Stetson Holding Company and
take all actions for the release as necessary or reasonably required by the
Collateral Agent or otherwise required under the Amended and Restated Credit
Agreement and under the Security Documents.

 

6.               All necessary Governmental
Approvals for the Stetson Reorganization shall have been obtained and are in
full force and effect.

 

6

 

Schedule 3.1(d)

Material Project Documents for
Cohocton Project and Stetson Project

 

Cohocton
Project

 

1.               Project O&M Agreement, dated as of December
30, 2008, by and among Operator and the Cohocton Project Companies, as amended
by that certain Amendment No. 1 to Project O&M Agreement, dated as of March
19, 2009.

 

2.               Amended and Restated Interconnection
Agreement, dated as of December 3, 2008, by and among New York Independent
System Operator, Inc. (“NYISO”), New York State Electric & Gas Corp. and
Canandaigua Power Partners, LLC (“CPP”).

 

3.               ISDA Master
Agreement, dated as of August 21, 2007, by and between the Cohocton Holding
Company and Credit Suisse Energy LLC, as amended by that certain First
Amendment to ISDA Master Agreement, dated as of August 20, 2008, as further
amended by that certain Second Amendment to ISDA Master Agreement, dated as of December
11, 2008, and as further amended by that certain Third Amendment to ISDA Master
Agreement, dated as of March 27, 2009, as amended by the Schedule to the 1992
ISDA Master Agreement and the Confirmation, dated as of August 21, 2007.

 

4.               Agreement to Purchase and Sell Unforced
Capacity in NYISO Installed Capacity Auctions, dated as of October 6, 2008,
given by CPP.

 

5.               Shared Facilities Agreement, dated as of March
27, 2009, by and between the Cohocton Project Companies.

 

6.               Management
Services Agreement, dated as of March 30, 2009, by and between Cohocton Holding
Company and First Wind Energy, LLC.

 

7.               Warranty
Agreement, dated as of September 27, 2006, by and between Clipper Turbine Works
and First Wind Acquisition III, LLC (f/k/a/ UPC Wind Acquisition III, LLC) (“FWA
III”), as amended by Amendment No. 1 to Turbine Supply Agreement and Warranty
Agreement, dated as of October 30, 2006, as amended by Amendment No. 2 to
Warranty Agreement, dated as of December 31, 2007, as amended by Amendment No. 3
to Warranty Agreement, dated as of December 30, 2008, and as further amended by
Settlement Agreement and 4th Amendment to Turbine Supply Agreement and Warranty
Agreement, dated as of March 30, 2009, as assigned to Cohocton Holding Company,
pursuant to that certain Assignment and Assumption Agreement, dated as of March
30, 2009.

 

8.               Turbine
Operation, Maintenance and Service Agreement, dated as of September 27, 2006,
by and between Operator and Clipper Fleet Services, Inc. (“Clipper Fleet”), as
amended by Amendment No. 1 to Turbine Operation, Maintenance and Service
Agreement, dated as of October 30, 2006, as assigned to Cohocton Holding
Company, pursuant to that certain Assignment and Assumption Agreement, dated as
of March 30, 2009.

 

7

 

9.               Service Agreement for Point-to-Point
Transmission Service under the OATT, dated as of October 15, 2008, by and
between NYISO and CPP.

 

10.         Service Agreement for NYISO Market
Administration and Control Area Services Tariff, dated as of October 15, 2008,
by and between NYISO and CPP.

 

11.         Service Agreement for Non-Firm Point-to-Point
Transmission Service under the OATT, dated as of October 15, 2008, by and
between NYISO and CPP.

 

12.         Balance of Plant Contract, dated as of October
31, 2007, by and among the Cohocton Project Companies for themselves and as
agents on behalf of Steuben County Industrial Development Agency and M.A.
Mortenson Company (“MAM”), as amended by the First Amendment to Balance of
Plant Construction Contract, dated as of December 10, 2007, as amended by
Change Order 1 dated May 5, 2008, Change Order 2 dated May 5, 2008, Change
Order 4 dated March 28, 2008, Change Order 5 dated June 17, 2008, Change Order
6 dated March 28, 2008, Change Oder 8 dated May 23, 2008, Change Order 9 dated May
23, 2008, Change Order 10 dated March 28, 2008, Change Order 11 dated June 19,
2008, Change Order 12 dated May 27, 2008, Change Order 13 dated May 27, 2008,
Change Order 20 dated August 26, 2008, Change Order 21 dated August 26, 2008,
Change Order 23 dated August 8, 2008, Change Order 24 dated August 8, 2008,
Change Order 28 dated October 7, 2008, and Change Order 29 dated October 15,
2008, and Change Order 30 dated December 12, 2008, as further modified by that
Settlement Agreement, dated as of March 5, 2009 by and among the Cohocton
Project Companies and MAM,.

 

13.         Balance of Plant Contract, dated as of April
1, 2008, by and between CPP for itself and as agent on behalf of Steuben County
Industrial Development Agency and MSE Power Systems, Inc as amended by MSE
Change Order 1 dated April 8, 2008 and MSE Change Order 5 dated May 31, 2008.
MSE Change Order 2 dated April 8, 2008, MSE Change Order 4 dated May 15, 2008,
MSE Change Order 5 dated May 31, 2008, MSE Change Order 6 dated June 15, 2008,
MSE Change Order 7 dated June 15, 2008, MSE Change Order 9 dated June 15, 2008,
MSE Change Order 10 rev. 1 dated September 17, 2008, MSE Change Order 11 rev. 1
dated July 9, 2008, MSE Change Order 12 dated June 30, 2008, MSE Change Order
14 rev. 1 dated September 17, 2008, MSE Change Order 15 dated September 17,
2008, MSE Change Order 17 dated September 17, 2008, MSE Change Order 18 dated September
17, 2008, MSE Change Order 19 dated September 22, 2008, MSE Change Order 20
dated September 22, 2008, MSE Change Order 21 dated September 24, 2008, MSE
Change Order 24 dated October 7, 2008.

 

14.         Tract 3

STIC T129026

Fee Owner:   Jerry Thomas Deusenbery
1/3 Interest; Jerry T. Deusenbery and Cheryl L. Deusenbery 1/3 Interest;
Anthony Robert Deusenbery, 1/3 Interest

 

A Lease as evidenced by a
Memorandum of Lease made by Jerry Deusenbery, Anthony Deusenbery and Cheryl
Deusenbery to CPP, dated July 13, 2007 and recorded 

 

8

 

February 19, 2008 in the
Steuben County Clerk’s Office in Book 2147 of Deeds at page 292.

 

15.         Tract 8

STIC T129032

Fee Owner:  Austin W. Dyckman, Inc.

 

A Lease as evidenced by a
Memorandum of Lease made by Austin W. Dyckman, Inc. to CPP, dated November 24,
2008 and recorded December 12, 2008 in the Steuben County Clerk’s Office in
Book 2212 of Deeds at Page 152, as amended by Memorandum of Lease (Corrective)
dated January 9, 2009 and recorded February 25, 2009 in Book 2225, Page 1, as
further amended by Memorandum of Lease (Corrective) dated March 24, 2009 and
recorded March 31, 2009 in the Steuben County Clerk’s Office in Book 2232 Page 1.

 

16.         Tract 9

STIC T129048

 

Fee Owner:  Richard Edmond & Sara Edmond

 

A Lease as evidenced by a
Memorandum of Lease made by Gerald Moore, Dorothy Moore and Richard Edmond &
Sara Edmond to CPP, dated August 2, 2007 and recorded February 19, 2008 in the Steuben
County Clerk’s Office in Book 2148 of Deeds at Page 110.

 

17.         Tract 10

STIC T129033

Fee Owner:  Paul E. Fairbrother and Roberta L.
Fairbrother

 

A Lease as evidenced by a
Memorandum of Lease made by Paul E. Fairbrother and Roberta L. Fairbrother to CPP
c/o Parent, dated July 24, 2007 and recorded on February 19, 2008 in the
Steuben County Clerk’s Office in Book 2148 of Deeds at page 1 as amended by
Memorandum of Lease (Corrective) recorded on November 13, 2008 in Book 2206 Page
59, as amended by Memorandum of Lease (Corrective) recorded February 25, 2009
in the Steuben County Clerk’s Office in Book 2225, Page 21.

 

18.         Tract 11

STIC T129034

Fee Owner:  Russell A. Ferrell and Susan L. Ferrell

 

A Lease as evidenced by a
Memorandum of Lease made by Mr. Russell Ferrell and Mrs. Susan Ferrell to CPP
c/o Parent, dated July 24, 2007 and recorded on February 19, 2008 in the
Steuben County Clerk’s Office in Book 2147 of Deeds at page 312.

 

19.         Tract 12

STIC T129035

Fee Owner:  Glenn A. Warner (purchased through foreclosure)

 

9

 

Lease as evidenced by a
Memorandum of Lease made by Ms. Cindy McCormick and Mr. Charles Funk to CPP c/o
Parent, dated April 4, 2007 and recorded on February 19, 2008 in the Steuben
County Clerk’s Office in Book 2148 of Deeds at page 97.

 

20.         Tract 13

STIC T129036

Fee Owner:  Judith Graham

 

Lease as evidenced by a
Memorandum of Lease made by Judith Graham to CPP c/o Parent, dated October 29,
2007 and recorded on August 7, 2008 in the Steuben County Clerk’s Office in
Book 2178 of Deeds at page 279.

 

21.         Tract 14

STIC T129037

Fee Owner:  Bradley C. Harter and Kris S. Harter, doing
business as Harter Brothers Swiss Farms

 

A Lease as evidenced by a
Memorandum of Lease made by Bradley Harter and Kris Harter to CPP c/o Parent,
dated October 26, 2007 and recorded on August 7, 2008 in the Steuben County
Clerk’s Office in Book 2178 of Deeds at page 262, as amended by Memorandum of
Lease (Corrective) dated August 1, 2008 and recorded on February 25, 2009 in
the Steuben County Clerk’s Office in Book 2225 of Deeds at page 45.

 

22.         Tract 15

STIC T129039

Fee Owner:  William F. Holbrook

 

A Lease as evidenced by a
Memorandum of Lease made by William F. Holbrook to CPP c/o Parent, dated August
31, 2007 and recorded on July 22, 2008 in the Steuben County Clerk’s Office in
Book 2176 of Deeds at page 1.

 

23.         Tract 16

STIC T129040

Fee Owner:  Robert W. Jacobs

 

A Lease as evidenced by a
Memorandum of Lease made by Robert Jacobs and Karen Jacobs to CPP c/o Parent,
dated July 31, 2007 and recorded on June 27, 2008 in the Steuben County Clerk’s
Office in Book 2171 of Deeds at page 65.

 

24.         Tract 17

STIC T129041

Fee Owner:  Jan Kastberg

 

A Lease as evidenced by a
Memorandum of Lease made by and between Jan Kastberg, Lessor and CPP, dated August
3, 2007 and recorded on February 19, 2008 in the Steuben County Clerk’s Office
in Book 2148 of Deeds at page 137.

 

10

 

25.         Tract 18

STIC T129072

Fee Owner:  Lent Hill Dairy Farm, LLC

 

A Lease as evidenced by a
Memorandum of Lease made by Lent Hill Dairy Farm, LLC to CPP, dated August 15,
2007 and recorded November 13, 2008 in the Steuben County Clerk’s Office in
Book 2206 of Deeds at Page 75, as amended by Memorandum of Lease (Corrective),
dated January 17, 2009 and recorded February 25, 2009 in the Steuben County
Clerk’s Office in Book 2225 of Deeds at page 74, as further amended by
Memorandum of Lease (Corrective) dated March 24, 2009 and recorded March 31,
2009 in the Steuben County Clerk’s Office in Book 2231 Page 244.

 

26.         Tract 20A

STIC T129044

Fee Owner:  John Meyer and Joseph Meyer

 

A Lease as evidenced by a
Memorandum of Lease made by Joseph Meyer, Jr. and John Meyer to CPP, c/o
Parent, dated November 7, 2007 and recorded February 27, 2008 in the Steuben
County Clerk’s Office in Book 2149 of Deeds, Page 230.

 

27.         Tract 20B

STIC T129031

Fee Owner:  Joseph Meyer, Joseph Meyer, Jr. and John
Meyer

 

Lease as evidenced by a
Memorandum of Lease made by Joseph Meyer, Joseph Meyer, Jr. and John Meyer to
CPP c/o Parent, dated November 7, 2007 and recorded on August 20, 2008 in the
Steuben County Clerk’s Office in Book 2183 of Deeds at page 43.

 

28.         Tract 21

STIC T129045

Fee Owner:  Phyllis G. Meyer aka Phyllis Meyer

 

A Lease as evidenced by a
Memorandum of Lease made by Phyllis Meyer to CPP c/o Parent, dated November 7,
2007 and recorded on February 27, 2008 in the Steuben County Clerk’s Office in
Book 2149 of Deeds at page 249.

 

29.         Tract 22

STIC T129049

Fee Owner:  John S. Nelson and Patricia F. Nelson

 

A Lease as evidenced by a
Memorandum of Lease made by John Nelson and Patricia Nelson to CPP c/o Parent,
dated October 29, 2007 and recorded on June 25, 2008 in the Steuben County
Clerk’s Office in Book 2170 of Deeds at page 247 as amended by Memorandum of
Lease (Corrective) dated December 26, 2008 and recorded January 14, 2009 in
Book 2217 at Page 329.

 

30.         Tract 23

STIC T129050

Fee Owner:  Paul Preston and Lucille Preston

 

11

 

A Lease as evidenced by a
Memorandum of Lease made by Paul E. Preston and Lucille I. Preston to CPP,
dated June 21, 2007 and recorded on February 19, 2008 in the Steuben County
Clerk’s Office in Book 2148 of Deeds at page 149.

 

31.   Tract 25

STIC T129052

Fee Owner:  Douglas Schwingel and Susan E. Schwingel

 

Lease as evidenced by a
Memorandum of Lease between Douglas L. Schwingel and Susan Schwingel, Lessor
and CPP, c/o Parent, Lessee, dated June 22, 2007 and recorded February 19, 2008
in the Steuben County Clerk’s Office in Liber 2147 of Deeds, Page 324, as
amended by Memorandum of Lease (Corrective), dated September 8, 2008 and
recorded November 3, 2008 in the Steuben County Clerk’s Office in Book 2206 of
Deeds at page 39.

 

32.   Tract 26

STIC T129053

Fee Owner:  Neil R. Sick and Linda J. Sick

 

A Lease as evidenced by a
Memorandum of Lease made by Neil R. Sick and Linda J. Sick to CPP, dated August
15, 2007 and recorded on February 19, 2008 in the Steuben County Clerk’s Office
in Book 2148 of Deeds at page 18.

 

33.   Tract 27

STIC T129054

Fee Owner:  Berta M. Simmons

 

Lease as evidenced by a
Memorandum of Lease between Berta Simmons, Lessor and CPP, c/o Parent, dated June
20, 2007 and recorded on February 19, 2008 in the Steuben County Clerk’s Office
in Book 2148 of Deeds, Page 32.

 

34.   Tract 30

STIC T129056

Fee Owner:  Forrest R. Slayton and Kelly E. Slayton

 

Lease as evidenced by a
Memorandum of Lease made by Forrest Slayton and Kelly Slayton to CPP c/o
Parent, dated August 15, 2007 and recorded February 19, 2008 in the Steuben
County Clerk’s Office in Book 2148 of Deeds, Page 161.

 

35.   Tract 31

STIC T129058

Fee Owner:  County of Steuben

 

A Lease as evidenced by a
Memorandum of Lease made by County of Steuben to CPP, dated November 7, 2008
and recorded December 9, 2008 in the Steuben County Clerk’s Office in Book 2211
of Deeds at page 294.

 

12

 

36.   Tract 32

STIC T129061

Fee Owner:  Jane C. Towner

 

A Lease has evidenced by
a Memorandum of Lease made by Jane C. Towne to CPP, dated July 31, 2007 and
recorded February 19, 2008 in the Steuben County Clerk’s Office in Book 2148 of
Deeds, Page 47.

 

37.   Tract 34

STIC T129065

Fee Owner:  Tedd R. Wallace

 

A Lease as evidenced by a
Memorandum of Lease made by Tedd R. Wallace to CPP, dated December 17, 2008 and
recorded December 23, 2008 in the Steuben County Clerk’s Office in Book 2215, Page
17.

 

38.   Tract 35

STIC T129066

Fee Owner:  Thomas Walter and Carrie Walter aka Carrie I.
Walter

 

A lease as evidenced by A
Memorandum of Lease between Thomas E. Walter and Carrie I. Walter and CPP,
dated July 26, 2007 and recorded February 19, 2008 in the Steuben County Clerk’s
Office in Liber 2148 of Deeds, Page 61.

 

39.   Tract 36

STIC T129070

Fee Owner:  Maureen D. Wolcott, as surviving spouse

 

A Lease as evidenced by a
Memorandum of Lease made by Maureen Wolcott to CPP c/o Parent, dated August 15,
2007 and recorded on February 19, 2008 in the Steuben County Clerk’s Office in
Book 2149 of Deeds at Page 279, as corrected by Memorandum of Lease dated March
24, 2009 and recorded March 31, 2009 in the Steuben County Clerk’s Office in
Book 2231, Page 229.

 

40.   Tract 37

STIC T129073

Fee Owner:  Roger W. Wolcott

 

A Lease as evidenced by
Memorandum of Lease made by and between Roger Wolcott and CPP, dated June 21,
2007 and recorded on February 19, 2008 in the Steuben County Clerk’s Office in
Book 2148 of Deeds at page 175.

 

41.   Tract 38

STIC T129535

Fee Owner:  Eric Zastawrny

 

A Lease as evidenced by
Memorandum of Lease made by Eric Zastawrny to CPP c/o Parent, dated August 9,
2007 and recorded on February 19, 2008 in the Steuben County Clerk’s Office in
Book 2148 of Deeds at page 73.

 

13

 

42.   Tract 42

STIC T134500

Fee Owner:  Shirley O’Neil, Suzanne Middleton, Diana
Sheldon and Bruce Fleishman

 

Grant of Easements
made by Shirley O’Neil, Suzanne Middleton, Diana Sheldon and Bruce Fleishman to
CPP II, dated October 9, 2008 and recorded December 18, 2008 in the Steuben
County Clerk’s Office in Book 2213, Page 292.

 

Grant of Easements
made by Shirley O’Neil, Suzanne Middleton, Diana Sheldon to Bruce Fleishman,
dated November 5, 2008 and recorded on December 22, 2008 in the Steuben County
Clerk’s Office in Book 2214, Page 175.

 

43.   Tract 43

STIC T129059

Fee Owner:  Steuben County IDA

 

A Lease as evidenced by a
Memorandum of Lease made by Steuben County IDA to CPP, dated December 1, 2008
and recorded December 22, 2008 in the Steuben County Clerk’s Office in Book
2214, Page 93.

 

44.   Tract 44

STIC T131845

Fee Owner:  CPP

 

Warranty Deed with Lien
Covenant executed by Madison and Paul Realty, Inc. to CPP, dated November 26,
2007 and recorded on January 22, 2008 in the Steuben County Clerk’s Office in
Liber 2141 of Deeds at page 182.

 

45.   Tract 45

STIC T130566

Fee Owner: Roger L.
Bidlack

 

An easement as evidenced
by a Memorandum of Easement Agreement made by Roger L. Bidlack to CPP.

 

46.   Tract 46

Intentionally deleted..

 

47.   Tract 47

STIC T130564

Fee Owner: Ronald Saxton

 

An easement as evidenced
by a Memorandum of Easement Agreement made by Ronald Saxton to CPP.

 

48.   Tract 48

STIC T130568

Fee Owner: William E.
Schumacher

 

14

 

An easement as evidenced
by a Memorandum of Easement Agreement by William E. Schumacher to CPP.

 

49.   Tract 49

STIC T130567

Fee Owner: Mary E. Sick

 

An easement as evidenced
by a Memorandum of Easement Agreement made by Mary E. Sick to CPP.

 

50.   Tract 50

STIC T

Fee Owner: S & D
Farms, Inc.

 

An easement as evidenced
by a Memorandum of Easement Agreement made by S & D Farms, Inc. to CPP
dated March 10, 2008.

 

51.   Tract 51

STIC T

Fee Owner: Conway K.
Slayton and Sharon Slayton

 

An easement as evidenced
by a Memorandum of Easement Agreement made by Conway K. Slayton and Sharon
Slayton to CPP dated November 27, 2007.

 

52.   Tract 52

STIC T

Fee Owner: Roland C. Drum
and Sara L. Drum

 

An easement as evidenced
by a Memorandum of Easement Agreement made by Roland C. Drum and Sara L. Drum
to CPP.

 

53.   Tract 53

STIC T

Fee Owner: Austin W.
Dyckman, Inc.

 

An easement as evidenced
by a Memorandum of Easement Agreement made by Austin W. Dyckman to CPP,
recorded in the Steuben County Clerk’s Office on February 19, 2008 in Liber
2148 page 207.

 

54.   Tract 54

STIC T

Fee Owner: Paul E.
Fairbrother and Roberta L. Fairbrother

 

An easement as evidenced
by a Memorandum of Easement Agreement made by Paul E. Fairbrother and Roberta
L. Fairbrother to CPP.

 

55.   Tract 55

STIC T

 

15

 

Fee Owner: Lent Hill
Dairy Farm, LLC

 

An easement as evidenced
by a Memorandum of Easement Agreement made by Lent Hill Dairy Farm, LLC to CPP.

 

56.   Tract 56

STIC T

Fee Owner: Phyllis Meyer

 

An easement as evidenced
by a Memorandum of Easement Agreement made by Phyllis Meyer to CPP.

 

57.   Tract 57

STIC T

Fee Owner: Douglas
Schwingel and Susan Schwingel

 

An easement as evidenced
by a Memorandum of Easement Agreement made by Douglas Schwingel and Susan
Schwingel to CPP recorded in the Steuben County Clerk’s Office on February 19,
2008 in Liber 2148 page 201.

 

58.   Tract 58

STIC T

Fee Owner: Paul White and
Kathie White

 

An easement as evidenced
by a Memorandum of Easement Agreement made by Paul White and Kathie White to
CPP recorded in the Steuben County Clerk’s Office on February 19, 2008 in Liber
2148 page 195.

 

59.   Tract 59

STIC T

Fee Owner: Roger W.
Wolcott and Linda A. Wolcott

 

An easement as evidenced
by a Memorandum of Easement Agreement made by Roger W. Wolcott and Linda A.
Wolcott to CPP.

 

60.   Tract 1

STIC T129064

Fee Owner: Ted E. Walker
and Susan J. Walker

 

A Lease as evidenced by a
Memorandum of Lease made by Ted E. Walker and Susan J. Walker to CPP II c/o
Parent, dated October 23, 2008 and recorded on December 23, 2008 in the Steuben
County Clerk’s Office in Book 2215 of Deeds, Page 1.

 

61.   Tract 2

STIC T129023

Fee Owner:  Glenn M. Cunningham and Diana J. Cunningham

 

16

 

A Lease as evidenced by a
Memorandum of Lease made by Glenn and Diana Cunningham, Lessors to CPP II c/o
Parent, dated June 22, 2007 and recorded on June 27, 2008 in the Steuben County
Clerk’s Office in Book 2171 of Deeds, Page 57.

 

62.   Tract 4

STIC T129028

Fee Owner:  Gene R. Drum

 

Lease as evidenced by a
Land Lease Agreement made by and between Gene Drum to CPP II dated as of July 12,
2007, as evidenced by a Memorandum of Lease made by Gene Drum to CPP, dated July
12, 2007 and recorded December 22, 2008 in the Steuben County Clerk’s Office in
Book 2214, Page 200.

 

63.   Tract 5

STIC T129029

Fee Owner:  Gene R. Drum and Patricia Drum, husband and
wife

 

A Lease as evidenced by a
Memorandum of Lease made by Gene R. Drum and Patricia Drum to CPP II, dated August
13, 2007 and recorded on February 27, 2008 in the Steuben County Clerk’s Office
in Book 2149 of Deeds at page 265.

 

64.   Tract 6

STIC T129027

Fee Owner:  Thomas McAree, Gene Drum, Arthur Moran, Mark
Hansen, William Jablonka and Todd Lewis as tenants in common

 

Lease as evidenced by a
Land Lease Agreement made by and between Gene Drum with CPP II dated as of July
12, 2007, as evidenced by A Lease as evidenced by a Memorandum of Lease made by
Gene Drum to CPP, dated 15th day of August, 2007 and recorded December 17, 2008
in the Steuben County Clerk’s Office in Book 2213, Page 181.

 

65.   Tract 7

STIC T129030

Fee Owner:  Roland C. Drum and Sara L. Drum

 

Lease as evidenced by a
Memorandum of Lease made by Roland Drum and Sarah Drum to CPP II c/o Parent,
dated August 13, 2007 and recorded on February 27, 2008 in the Steuben County
Clerk’s Office in Book 2149 of Deeds at page 302 as amended by Memorandum of
Lease (Corrective) dated December 15, 2008 and recorded on December 22, 2008 in
Book 2214, Page 187.

 

66.   Tract 18

STIC T129072

Fee Owner:  Lent Hill Dairy Farm, LLC

 

A Lease as evidenced by a
Memorandum of Lease made by Lent Hill Dairy Farm, LLC to CPP, dated August 15,
2007 and recorded November 13, 2008 in the Steuben County 

 

17

 

Clerk’s Office in Book
2206 of Deeds at Page 137, as amended by Memorandum of Lease (Corrective),
dated December 18, 2008 and recorded December 18, 2008 in Book 2213 at Page 309.

 

67.   Tract 24

STIC T129051

Fee Owner:  Henry M. Schultheiss, Ilean W. Schultheiss
a/k/a Ilean Y. Schultheiss and Edward Schultheiss

 

Land Lease Agreement made
by Henry Schultheiss, Ilean Schultheiss and Edward Schultheiss with CPP II,
dated February 28, 2006, as amended by that Land Lease Amendment dated as of July
30, 2007, as further amended by that Second Land Lease Amendment dated as of September
3, 2008 evidenced by a Memorandum of Lease made by Henry Schultheiss, Ilean
Schultheiss and Edward Schultheiss to CPP, dated December 22, 2008 and recorded
December 22, 2008 in the Steuben County Clerk’s Office in Book 2214, Page 221.

 

68.   Tract 29

STIC T129055

Fee Owner:  David M. Simolo, Daniel J. Kilker and Robert
M. Kilker

 

A Lease as evidenced by a
Memorandum of Lease made by David M. Simolo, Daniel J. Kilker and Robert M.
Kilker to CPP II c/o Parent, dated July 9, 2007 and recorded on February 19,
2008 in the Steuben County Clerk’s Office in Book 2148 of Deeds at page 84.

 

69.   Tract 33

STIC T129062

Fee Owner:  Rick Towner and Christine Towner

 

A Lease as evidenced by a
Memorandum of Lease made by Rick Towner and Christine Towner to CPP II, dated July
31, 2007 and recorded on February 19, 2008 in the Steuben County Clerk’s Office
in Book 2148 of Deeds at page 123.

 

70.   Tract 41

STIC T129534

Fee Owner:  William P. Jablonka

 

Easement as evidenced by
a Grant of Easement made by William P. Jablonka to CPP II, dated September 12,
2008 and recorded December 2, 2008 in the Steuben County Clerk’s Office in Book
2210 of Deeds at Page 144.

 

71.   Tract 42

STIC T134500

Fee Owner:  Shirley O’Neil, Suzanne Middleton, Diana
Sheldon and Bruce Fleishman

 

18

 

Grant of Easements made
by Shirley O’Neil, Suzanne Middleton, Diana Sheldon and Bruce Fleishman to CPP
II, dated October 9, 2008 and recorded December 18, 2008 in the Steuben County
Clerk’s Office in Book 2213, Page 292.

 

Grant of Easements made
by Shirley O’Neil, Suzanne Middleton, Diana Sheldon to Bruce Fleishman, dated November
5, 2008 and recorded on December 22, 2008 in the Steuben County Clerk’s Office
in Book 2214, Page 175.

 

72.   Tract 43

STIC T129059

Fee Owner:  Steuben County IDA

 

A Lease as evidenced by a
Memorandum of Lease made by Steuben County IDA to CPP II, dated December 1,
2008 and recorded December 22, 2008 in Steuben County Clerk’s Office in Book
2214, Page 117.

 

Stetson
Project

 

1.     Standard Large Generator Interconnection Agreement,
dated as of December 7, 2007, by and among ISO New England Inc., Bangor
Hydro-Electric Company and Stetson Project Company.

 

2.     ISDA Master Agreement, dated
as of June 11, 2008, by and between Stetson Holdings, LLC and Constellation
Energy Commodities Group, Inc., as amended by the Schedule to the 1992 ISDA
Master Agreement, the Credit Support Annex, and the Confirmation, each dated as
of June 11, 2008.

 

3.     Project O&M Agreement, dated as of November 17,
2008, by and between Operator and Stetson Project Company.

 

4.     Contract for the Sale of Power and Generation
Equipment and Related Services (Stetson), dated as of June 4, 2007, by and
between First Wind Acquisition, LLC (f/k/a UPC Wind Acquisition, LLC) and
General Electric Company, as amended by that Scope Change Order Form 01 dated as
of August 14, 2007, as amended by that Scope Change Order Form 02 dated September
7, 2007,  as amended by that Change Order
No. A, dated as of the 8th day of July, 2008, as amended by that External
Change Order No. 3, dated as of the 5th day of August, 2008, as amended by that
External Change Order No. 4, dated as of the 22nd day of July, 2008, and as amended by that
External Change Order No. 4, Revision No. 1, dated as of the 8th day of August,
2008, as amended by that External Change Order No. 5 dated as of the 13th day of July,
2009.

 

5.     Operations Support Agreement, dated June 27,
2008, by and between General Electric International Incorporated and Stetson
Project Company.

 

6.     Consulting and Administrative Services
Agreement, dated as of November 1, 2006, by and between First Wind Energy,
Stetson Project Company, Stetson Wind II, LLC and the other companies party
thereto from time to time.

 

19

 

7.     Stetson Wind Power Project Construction
Works Contract No. EWPV-07-02, dated December 31, 2007, between Stetson Project
Company and Reed & Reed, Inc (and associated change orders), as amended by
Change Order 1 dated as of September 26, 2007, as amended by Change Order 2
dated as of November 9, 2008, Change Order 3 dated as of November 11, 2008,
Change Order 4 dated as of January 28, 2009

 

8.     Construction Agreement dated as of August
30, 2008 by and between Evergreen Wind Power V, LLC and Cianbro Corporation, as
Contractor, for the Stetson Mountain Substation.

 

9.     Land Lease Agreement, dated October 12,
2006, by and between Lakeville Shores, Inc. and Stetson Project Company, as
amended by that certain First Amendment to Land Lease Agreement, dated March 30,
2007, and as further amended by that certain Second Amendment to Land Lease
Agreement, dated August 17, 2007.

 

10.   Management Services Agreement, dated July
17, 2009, by and between Evergreen Wind Power V, LLC and First Wind Energy,
LLC.

 

Stetson
Transmission Line(1)

 

11.   Stetson Wind Power Project Transmission
Line Contract, effective as of July 18, 2008, by and between Stetson Project
Company and PowerTel Utilities Contractors Limited (“PowerTel”) (and associated
change orders).

 

12.   Warranty Deed, dated as of June 14, 2007,
from Rickey Deloge, Sr. to Stetson Project Company, recorded in the Penobscot
County Registry of Deeds in Book 11012, Page 347.

 

13.   Quitclaim Deed, dated as of March 13,
2008, from Gary A. Fleming and Cynthia Fleming to Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11330, Page 56.

 

14.   Local Service Agreement, dated January 12,
2009, among ISO New England Inc., Bangor Hydro-Electric Company and Stetson
Project Company.

 

15.   Local Service Agreement, dated December 8,
2008, among ISO New England Inc., Bangor Hydro-Electric Company and Stetson
Project Company.

 

16.   Quitclaim Deed, dated as of October 24,
2007, from H C Haynes, Inc to Stetson Project Company, recorded in the
Penobscot County Registry of Deeds in Book 11226, Page 162.

 

(1)   These transmission documents will be
transferred to the Gen Lead Company in connection with the Stetson Transmission
Line Reorganization and will no longer be Material Project Documents after the
Stetson Transmission Line Reorganization.

 

20

 

17.   Warranty Deed, dated as of April 10,
2008, from Andrew G. Edwards to Stetson Project Company, recorded in the
Penobscot County Registry of Deeds in Book 11354, Page 291.

 

18.   Quitclaim Deed, dated as of November 6,
2007, from Marjorie White Ghost to Stetson Project Company, recorded in the
Penobscot County Registry of Deeds in Book 11198, Page 46.

 

19.   Quitclaim Deed, dated as of May 14, 2008,
from Robert Harmon, Jr. to Stetson Project Company, recorded in the Penobscot
County Registry of Deeds in Book 11392, Page 109.

 

20.   Quitclaim Deed, dated as of May 22, 2008,
from Huber Timber LLC to Stetson Project Company, recorded in the Penobscot
County Registry of Deeds in Book 11403, Page 237.

 

21.   Warranty Deed, dated as of July 3, 2008,
from J. Robert Hudson to Stetson Project Company, recorded in the Penobscot
County Registry of Deeds in Book 11474, Page 343.

 

22.   Quitclaim Deed, dated as of April 21,
2008, from Lakeville Shores, Inc. to Stetson Project Company, recorded in the
Penobscot County Registry of Deeds in Book 11367, Page 185.

 

23.   Quitclaim Deed, dated as of March 18,
2008, from Thomas E. Linscott and Karen B. Linscott to Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11329, Page 273.

 

24.   Warranty Deed, dated as of April 28,
2008, from Donald Morin and Elizabeth A. Morin to Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11379, Page 121.

 

25.   Quitclaim Deed, dated as of May 12, 2008,
from Prentiss & Carlisle Company, Inc., et al., to Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11424, Page 100.

 

26.   Quitclaim Deed, dated as of May 12, 2008,
from Prentiss & Carlisle Company, Inc., et. al, to Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11424, Page 116.

 

27.   Quitclaim Deed, dated as of May 7, 2008,
from Prentiss & Carlisle Company, Inc. to Stetson Project Company, recorded
in the Penobscot County Registry of Deeds in Book 11386, Page 8.

 

28.   Quitclaim Deed, dated as of May 12, 2008,
from Prentiss & Carlisle Company, Inc. and McCrillis Timberlands, LLC to
Stetson Project Company, recorded in the Penobscot County Registry of Deeds in
Book 11393, Page 96.

 

21

 

29.   Quitclaim Deed, dated as of October 30,
2004, from Henry D. Provencher to Stetson Project Company, recorded in the
Penobscot County Registry of Deeds in Book 11187, Page 311.

 

30.   Quitclaim Deed, dated as of March 11,
2008, from Jamie Lee Steeves to Stetson Project Company, recorded in the
Penobscot County Registry of Deeds in Book 11320, Page 125.

 

31.   Quitclaim Deed, dated as of March 11,
2008, from Donald L. Whitney and Ida M. Whitney to Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11322. Page 275, and
corrected by that certain Corrective Quitclaim Deed, dated as of June 24, 2008
and recorded in the Penobscot County Registry of Deeds in Book 11444, Page 110.

 

32.   Quitclaim Deed, dated as of March 26,
2008, from Harlan H. Whitney and Pauline D. Whitney to Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11338, Page 154.

 

33.   Quitclaim Deed, dated as of June 24,
2008, from Harlan H. Whitney and Pauline D. Whitney to Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11444, Page 114.

 

34.   Quitclaim Deed, dated as of March 22,
2008, from John R. Whitney and Deborah M. Whitney to Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11332, Page 340.

 

35.   Quitclaim Deed, dated as of June 24,
2008, from Donald L. Whitney and Ida M. Whitney to Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11444, Page 112.

 

36.   Quitclaim Deed, dated as of May 9, 2008,
from Lakeville Shores, Inc. to Stetson Project Company, recorded in the
Penobscot County Registry of Deeds in Book 11392, Page 76.

 

37.   Easement, dated as of March 6, 2007, by
Joanne Adams for the benefit of Stetson Project Company, recorded in the
Penobscot County Registry of Deeds in Book 11317, Page 64.

 

38.   Easement, dated as of April 17, 2008, by
Charles T. Alferes and Ethel L. Alferes, Trustees of the Ethel L. Alferes 1998
Trust, for the benefit of Stetson Project Company, recorded in the Penobscot
County Registry of Deeds in Book 11367, Page 205.

 

39.   Deed of Easement, dated as of January 17,
2008, by Aroostook & Bangor Resources for the benefit of Stetson Project
Company, recorded in the Penobscot County Registry of Deeds in Book 11275, Page
109.

 

40.   Generator Lead Easement Agreement and
Right of First Refusal, dated as of October 10, 2008, by Bangor Hydro-Electric
Company for the benefit of Stetson Project Company, recorded in the Penobscot
County Registry of Deeds in Book 11563, Page 77.

 

22

 

41.   Easement, dated as of March 20, 2008, by
Eileen Marie Beaulieu for the benefit of Stetson Project Company, recorded in
the Penobscot County Registry of Deeds in Book 11332, Page 334.

 

42.   Easement, dated as of March 26, 2008, by
Russell W. Brown, Sr. and Catherine Brown for the benefit of Stetson Project
Company, recorded in the Penobscot County Registry of Deeds in Book 11362, Page
184.

 

43.   Evergreen Easement, dated as of February 22,
2008, by C.N. Brown Company for the benefit of Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11301, Page 268, and
assigned in part pursuant to that certain Assignment of Easement Rights, dated
as of March 14, 2008, by Stetson Project Company to Northern Timbers, Inc.,
recorded in the Penobscot County Registry of Deeds in Book 11338, Page 149.

 

44.   Easement, dated as of February 28, 2008,
by Lucy Campbell, Susan Fort, David B. Campbell, Sheila Jean, Alan Bruce
Campbell, and Linda Lucian for the benefit of Stetson Project Company, recorded
in the Penobscot County Registry of Deeds in Book 11333, Page 117.

 

45.   Easement, dated as of January 15, 2008,
by Susan Claerbout and Kenneth Claerbout for the benefit of Stetson Project
Company, recorded in the Penobscot County Registry of Deeds in Book 11284, Page
312.

 

46.   Easement, dated as of August 28, 2008, by
Louis M. Coiro and Patricia R. Joyce Coiro for the benefit of Stetson Project
Company, recorded in the Penobscot County Registry of Deeds in Book 11531, Page
217.

 

47.   Easement rights reserved in that certain
Quitclaim Deed, dated as of March 24, 2008, from Stetson Project Company, to
Louis M. Coiro and Patricia R. Joyce Coiro, recorded in the Penobscot County
Registry of Deeds in Book 11531, Page 220.

 

48.   Easement, dated as of May 2, 2008, by
Richard A. Delaite and David W. Delaite for the benefit of Stetson Project
Company, recorded in the Penobscot County Registry of Deeds in Book 11384, Page
320.

 

49.   Easement, dated as of July 31, 2008, by
John A. Dudley, III and Debra Dudley for the benefit of Stetson Project
Company, recorded in the Penobscot County Registry of Deeds in Book 11486, Page
2.

 

50.   Easement, dated as of February 15, 2008,
by Gardner Land Company, Inc. for the benefit of Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11329, Page 282.

 

51.   Easement, dated April 15, 2008, by The
Gerrity Family Limited Partnership for the benefit of Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11360, Page 172.

 

23

 

52.   Easement, dated as of March 21, 2008, by
Dennis Gould and Robert Yorks for the benefit of Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11332, Page 337.

 

53.   Easement, dated as of June 24, 2008, by
John Hagemeyer and Sylvia Hagemeyer for the benefit of Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11444, Page 105.

 

54.   Easement, dated as of April 4, 2008, by
Loren A. Hale and Joyce M. Hale for the benefit of Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11351, Page 117.

 

55.   Easement, dated as of May 9, 2008, by
Haynes Timberland, Inc. for the benefit of Stetson Project Company, recorded in
the Penobscot County Registry of Deeds in Book 11392, Page 94.

 

56.   Easement, dated as of May 9, 2008, by
Haynes Timberland, Inc. for the benefit of Stetson Project Company, recorded in
the Penobscot County Registry of Deeds in Book 11392, Page 86.

 

57.   Easement, dated as of May 9, 2008, by
Haynes Timberland, Inc. for the benefit of Stetson Project Company, recorded in
the Penobscot County Registry of Deeds in Book 11392, Page 90.

 

58.   Easement, dated as of May 9, 2008, by
Herbert C. Haynes, Jr. and Ginger E. Maxwell, as Personal Representatives of
the Estate of Herbert C. Haynes, for the benefit of Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11392, Page 82.

 

59.   Easement, dated as of April 21, 2008, by
Herbert C. Haynes, Jr. for the benefit of Stetson Project Company, recorded in
the Penobscot County Registry of Deeds in Book 11367, Page 201.

 

60.   Easement, dated as of May 9, 2008, by H.
C. Haynes, Inc. for the benefit of Stetson Project Company, recorded in the
Penobscot County Register of Deeds in Book 11392, Page 72.

 

61.   Easement, dated as of February 21, 2008,
by Thomas B. Kates, Jr. and Walter W. Hughes, Sr. for the benefit of Stetson
Project Company, recorded in the Penobscot County Registry of Deeds in Book
11301, Page 261.

 

62.   Easement, undated, by John M. Kyler, II
and Joan E. H. Kyler for the benefit of Stetson Project Company, recorded on July
1, 2008 in the Penobscot County Registry of Deeds in Book 11450, Page 21.

 

63.   Easement, dated as of April 21, 2008, by
Lakeville Shores, Inc. for the benefit of Stetson Project Company, recorded in
the Penobscot County Registry of Deeds in Book 11367, Page 187, and assigned in
part pursuant to that certain Crossing Easement Agreement, 

 

24

 

dated
as of October 10, 2008, by and between Stetson Project Company and Bangor
Hydro-Electric Company, recorded in the Penobscot County Registry of Deeds in
Book 11563, Page 59.

 

64.   Easement, dated as of May 9, 2008, by
Lakeville Shores, Inc. for the benefit of Stetson Project Company, recorded in
the Penobscot County Registry of Deeds in Book 11392, Page 68.

 

65.   Easement, dated as of April 21, 2008, by
Lakeville Shores, Inc. for the benefit of Stetson Project Company, recorded in
the Penobscot County Registry of Deeds in Book 11367, Page 191.

 

66.   Easement, dated as of April 21, 2008, by
Lakeville Shores, Inc. for the benefit of Stetson Project Company, recorded in
the Penobscot County Registry of Deeds in Book 11367, Page 196.

 

67.   Easement dated as of June 12,
2009 between Lakeville Shores, Inc. and Evergreen Wind Power V, LLC, recorded
in the Washington County Registry of Deeds in Book 3543, Page 223.

 

68.   Transmission Line Easement Deed, dated as
of October 2, 2008, by Maine Electric Power Company, Inc. for the benefit of
Stetson Project Company, recorded in the Penobscot County Registry of Deeds in
Book 11553, Page 18.

 

69.   Quitclaim Deed Without Covenant, dated as
of September 19, 2008, by the State of Maine Department of Inland Fisheries and
Wildlife for the benefit of Stetson Project Company, recorded in the Penobscot
County Registry of Deeds in Book 11537, Page 290.

 

70.   Easement, dated as of May 9, 2008, by
Ginger Maxwell for the benefit of Stetson Project Company, recorded in the
Penobscot County Registry of Deeds in Book 11392, Page 78.

 

71.   Easement, dated as of March 4, 2008, by
Clayton J. McCarthy for the benefit of Stetson Project Company, recorded in the
Penobscot County Registry of Deeds in Book 11317, Page 56.

 

72.   Easement, dated as of March 4, 2008, by
Clayton J. McCarthy for the benefit of Stetson Project Company, recorded in the
Penobscot County Registry of Deeds in Book 11317, Page 51.

 

73.   Easement, dated as of March 4, 2008, by
Hayden P. McCarthy for the benefit of Stetson Project Company, recorded in the
Penobscot County Registry of Deeds in Book 11317, Page 60, and corrected by
that certain Corrective Easement, dated as of June 26, 2008 and recorded in the
Penobscot County Registry of Deeds in Book 11450, Page 2.

 

74.   Easement, dated as of June 20, 2008, by
Naturals Rod & Gun Club for the benefit of Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11450, Page 6.

 

25

 

75.   Easement, dated as of March 6, 2008, by
Northern Timbers, Inc. for the benefit of Stetson Project Company, recorded in
the Penobscot County Registry of Deeds in Book 11338, Page 146.

 

76.   Easement, dated as of April 4, 2008, by
John Osgood and Susan Osgood for the benefit of Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11354, Page 297.

 

77.   Easement, dated as of February 21, 2008,
by Delia M. Parker for the benefit of Stetson Project Company, recorded in the
Penobscot County Registry of Deeds in Book 11301, Page 264.

 

78.   Easement Deed and Agreement, undated, by
Penobscot Forest LLC for the benefit of Stetson Project Company, recorded on July
23, 2008 in the Penobscot County Registry of Deeds in Book 11473, Page 276.

 

79.   Easement, dated as of May 12, 2008, by
Prentiss & Carlisle Company, Inc. and McCrillis Timberlands, LLC for the
benefit of Stetson Project Company, recorded in the Penobscot County Registry
of Deeds in Book 11392, Page 103.

 

80.   Easement, dated as of March 28, 2008, by
Elaine Reardon for the benefit of Stetson Project Company, recorded in the
Penobscot County Registry of Deeds in Book 11360, Page 181.

 

81.   Easement, dated as of February 28, 2008,
by Albert S. Ring and Linda M. Ring for the benefit of Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11348, Page 235.

 

82.   Easement, dated as of March 2, 2008, by
Edward F. Sargent, Jr. for the benefit of Stetson Project Company, recorded in
the Penobscot County Registry of Deeds in Book 11348, Page 239.

 

83.   Easement, dated as of March 14, 2008, by
Royl M. Schoonover and Vanessa V. Schoonover for the benefit of Stetson Project
Company, recorded in the Penobscot County Registry of Deeds in Book 11327, Page
239.

 

84.   Easement, dated as of March 26, 2008, by
Shepard V. Sloane, as Trustee of the Jane Vaughn B. Stuart Trust created January
19, 1990 and as Trustee u/w/o Dr. W. Sterry Branning f/b/o Jane Vaughn B.
Stuart, for the benefit of Stetson Project Company, recorded in the Penobscot
County Registry of Deeds in Book 11317, Page 46.

 

85.   Easement, dated as of March 10, 2008, by
Junior L. Smith and Christine C. Goldsmith for the benefit of Stetson Project
Company, recorded in the Penobscot County Registry of Deeds in Book 11322, Page
277.

 

86.   Easement, dated as of May 30, 2008, by
Edwin Tash, Sr., et al. for the benefit of Stetson Project Company, recorded in
the Penobscot County Registry of Deeds in Book 11418, Page 84.

 

26

 

87.   Easement, dated as of March 13, 2008, by
Roscoe Tash and Marlene Tash for the benefit of Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11327, Page 236.

 

88.   Easement, dated as of March 11, 2008, by
Bion Tolman for the benefit of Stetson Project Company, recorded in the
Penobscot County Registry of Deeds in Book 11322, Page 280.

 

89.   Easement, dated as of March 18, 2008, by
Kevin R. Tozier for the benefit of Stetson Project Company, recorded in the
Penobscot County Registry of Deeds in Book 11329, Page 278.

 

90.   Easement, dated as of August 2, 2007, by
Elgin H. Turner for the benefit of Stetson Project Company, recorded in the
Penobscot County Registry of Deeds in Book 11140, Page 1.

 

91.   Easement, dated as of June 10, 2008, by
Jeffrey B. Vicaire and Rhonda J. Vicaire for the benefit of Stetson Project
Company, recorded in the Penobscot County Registry of Deeds in Book 11426, Page
317.

 

92.   Easement, dated as of March 6, 2008, by
Melvin L. Vicaire and Lynn M. Vicaire for the benefit of Stetson Project
Company, recorded in the Penobscot County Registry of Deeds in Book 11317, Page
68.

 

93.   Easement, dated as of February 25, 2008,
by Edward Whitney, III, Anne-Marie B. Whitney, Scott E. Whitney and Mark J.
Whitney for the benefit of Stetson Project Company, recorded in the Penobscot
County Registry of Deeds in Book 11329, Page 275.

 

94.   Easement, dated as of February 25, 2008,
by William Ziehl and Rhonda Ziehl for the benefit of Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11311, Page 83.

 

95.   Easement for Right-of-Way Access Road,
dated as of May 2, 2008, by Richard A. Delaite and David W. Delaite for the
benefit of Stetson Project Company, recorded in the Penobscot County Register
of Deeds in Book 11384, Page 323.

 

96.   Easement dated
as of July 16, 2008 between Evergreen Wind Power V, LLC and John R. Whitney and
recorded in the Penobscot County Registry of Deeds in Book 11467, Page 254.

 

97.   Easement Deed, dated as of May 12, 2008,
by Prentiss & Carlisle Company, Inc. and McCrillis Timberlands, LLC for the
benefit of Stetson Project Company, recorded in the Penobscot County Register
of Deeds in Book 11392, Page 98.

 

98.   Easement, dated as of July 15, 2008, by
John E. Osgood and Susan Osgood for the benefit of Stetson Project Company,
recorded in the Penobscot County Registry of Deeds in Book 11465, Page 80.

 

27

 

99.   Overhead Wire Agreement, dated as of May 15,
2008, by and between Stetson Project Company, and Maine Central Railroad
Company, recorded in the Penobscot County Registry of Deeds in Book 11414, Page
332.

 

100. Overhead Wire Agreement, dated as of May 1,
2008, by and between Stetson Project Company, and Eastern Maine Railway
Company, recorded in the Penobscot County Registry of Deeds in Book 11478, Page
169, and evidenced by that certain Memorandum of Overhead Wire Agreement, dated
as of May 1, 2008.

 

101. Overhead Wire Agreement, dated as of May 1,
2008, by and between Stetson Project Company, and Eastern Maine Railway,
recorded in the Penobscot County Registry of Deeds in Book 11478, Page 166, and
evidenced by that certain Memorandum of Overhead Wire Agreement, dated as of May
1, 2008.

 

102. Crossing Agreement, dated as of June 6,
2008, by and between Stetson Project Company, and Eastern Maine Electric
Cooperative, Inc., recorded in the Penobscot County Registry of Deeds in Book
11420, Page 198.

 

103. Transmission Line Crossing Area Consent
and Agreement (Woodville — Line 84), dated as of October 10, 2008, by and
between Stetson Project Company, and Bangor Hydro-Electric Company, recorded in
the Penobscot County Registry of Deeds in Book 11563, Page 37.

 

104. Transmission Line Crossing Area Consent and
Agreement (Chester — Line 86), dated as of October 10, 2008, by and between
Stetson Project Company, and Bangor Hydro-Electric Company, recorded in the
Penobscot County Registry of Deeds in Book 11563, Page 41.

 

105. Assignment and Assumption of Property
Rights Agreement, dated as of June 6, 2008, by and between Stetson Project
Company, and Eastern Maine Electric Cooperative, Inc., recorded in the
Penobscot County Registry of Deeds in Book 11420, Page 179.

 

28

 

Schedule 3.1(e)

Major Project Indebtedness
Documents for Cohocton Project and Stetson Project

 

Agreement for Purchase of Membership Interests in UPC
New York Wind 2, LLC, dated as of January 31, 2008, between Lehman First Wind
Holdings, LLC and New York Wind III LLC, and the Amended and Restated Limited
Liability Agreement of New York Wind II, LLC, dated as of August 18, 2008.

 

Cohocton Project

 

Financing Agreement,
dated as of March 30, 2009, by and among the Cohocton Holding Company, HSHN, as
arranger, administrative agent and security agent, Norddeutsche Landesbank
Girozentrale, New York Branch, as arranger and the lenders parties thereto and
the “Collateral Documents” as defined therein.

 

Stetson Project

 

Financing Agreement,
dated as of July 17, 2009, by and among Evergreen Wind Power V, LLC, HSHN and
the lenders parties thereto and the “Collateral Documents” as defined therein.

 

29

 

Schedule 3.2(d)

Steel Winds Material Project
Documents

 

1.     Power Purchase Agreement, dated as of July 21, 2006,
by and between Constellation NewEnergy, Inc., assigned to Constellation Energy
Commodities Group, Inc. pursuant to that certain Assignment of Agreement
effective as of August 1, 2008, and Steel Winds Project LLC, assigned
to Niagara Wind Power, LLC pursuant to that certain Irrevocable Option to
Purchase dated as of September 1, 2006 between Steel Winds Project LLC, New
York Wind, LLC (pka UPC New York Wind, LLC), Steel Winds LLC and Niagara Wind
Power, LLC, and exercise thereof by written notice on June 1, 2007, as amended
by that certain Amendment to Power Purchase Agreement, dated as of April 30,
2008.

 

2.     Guarantee Agreement dated as of July 26, 2006, by and
between Constellation NewEnergy, Inc., as Guarantee, assigned to Constellation
Energy Commodities Group, Inc. pursuant to that certain Assignment of Agreement
effective as of August 1, 2008, and Steel Winds Project, LLC, as Guarantor,
assigned to Niagara Wind Power, LLC pursuant to that certain Irrevocable Option
to Purchase dated as of September 1, 2006 between Steel Winds Project LLC, New
York Wind, LLC (pka UPC New York Wind, LLC), Steel Winds LLC and Niagara Wind
Power, LLC, and exercise thereof by written notice on June 1, 2007.

 

3.     Project O&M Agreement, dated as of September 1,
2006, by and between UPC New York Wind O&M, LLC, assigned to First Wind
O&M, LLC (pka UPC Wind O&M, LLC) pursuant to that certain Assignment of
Project O&M Agreement dated as of October 4, 2006, and Steel Winds Project,
, assigned to Niagara Wind Power, LLC pursuant to that certain Irrevocable
Option to Purchase dated as of September 1, 2006 between Steel Winds Project
LLC, New York Wind, LLC (pka UPC New York Wind, LLC), Steel Winds LLC and
Niagara Wind Power, LLC, and exercise thereof by written notice on June 1,
2007.

 

4.     Small Generator Interconnection Agreement, dated as of
2006, by and between Niagara Mohawk Power Corporation (d/b/a/ National Grid)
and Steel Winds LLC, assigned to Steel Winds Project, LLC by that certain
Assignment and Assumption Agreement, dated as of November 17, 2006, as further
assigned to Niagara Wind Power, LLC pursuant to that certain Irrevocable Option
to Purchase dated as of September 1, 2006 between Steel Winds Project LLC, New
York Wind, LLC (pka UPC New York Wind, LLC), Steel Winds LLC and Niagara Wind
Power, LLC, and exercise thereof by written notice on June 1, 2007.

 

5.     Balance of Plant Contract, dated as of September 1,
2006, by and between, Steel Winds Projct, LLC, assigned to Niagara Wind Power,
LLC pursuant to that certain Irrevocable Option to Purchase dated as of September
1, 2006 between Steel Winds Project LLC, New York Wind, LLC (pka UPC New York
Wind, LLC), Steel Winds LLC and Niagara Wind Power, LLC, and exercise thereof
by written notice on June 1, 2007 and Tennessee Valley Infrastructure Group, Inc.

 

30

 

6.     Warranty Agreement, dated as of July 24, 2006, by and
between First Wind Acquisition II, LLC (pka UPC Wind Acquisition II, LLC).
assigned to Steel Winds Project, LLC by that certain Assignment and Assumption
Agreement, dated as of September 1, 2006, as further assigned to Niagara Wind
Power, LLC pursuant to that certain Irrevocable Option to Purchase dated as of September
1, 2006 between Steel Winds Project LLC, New York Wind, LLC (pka UPC New York
Wind, LLC), Steel Winds LLC and Niagara Wind Power, LLC, and exercise thereof
by written notice on June 1, 2007,and Clipper Turbine Works, as amended by that
certain Amendment No. 1 to Warranty Agreement, dated as of December 31, 2007,
as amended by that certain Omnibus Agreement, dated as of December 30, 2008.

 

7.     Turbine Operation, Maintenance and Service Agreement,
dated as of July 24, 2006, by and between First Wind O&M, LLC and Clipper
Fleet, as amended by that certain Amendment No. 1 to Turbine Operation,
Maintenance and Service Agreement, dated as of December 31, 2007, by and
between Clipper Fleet and Operator.

 

8.     Commodity Swap Confirmation, dated as of September 20,
2006, by and between Niagara Wind Power, LLC and Morgan Stanley Capital Group, Inc.

 

9.     Administrative Services Agreement, dated as of September
1, 2006, by and between Steel Winds Project LLC, as Owner and First Wind
Energy, LLC (pka UPC Wind Management, LLC), assigned to Niagara Wind Power, LLC
pursuant to that certain Irrevocable Option to Purchase dated as of September 1,
2006 between Steel Winds Project LLC, New York Wind, LLC (pka UPC New York
Wind, LLC), Steel Winds LLC and Niagara Wind Power, LLC, and exercise thereof by
written notice on June 1, 2007.

 

10.   Substation Cost Sharing Agreement dated as of May 4,
2007, by and between Steel Winds Project LLC, as Tenant, assigned to Niagara
Wind Power, LLC pursuant to that certain Irrevocable Option to Purchase dated
as of September 1, 2006 between Steel Winds Project LLC, New York Wind, LLC
(pka UPC New York Wind, LLC), Steel Winds LLC and Niagara Wind Power, LLC, and
exercise thereof by written notice on June 1, 2007, and Steel Winds LLC, as
Landlord.

 

11.   Sublease Agreement dated as of May 19, 2008 between BQ
Energy, LLC and Niagara Wind Power, LLC.

 

12.   Substation Lease Agreement dated as of May 19, 2008,
between Steel Winds LLC and Niagara Wind Power, LLC.

 

31

 

Schedule 3.3(f)

Stetson II Material Project
Documents

 

1.     Stetson II Wind Power Project Construction Contract,
dated as of September 30, 2009, between Stetson II Project Company and Reed &
Reed, Inc., as modified by that certain Limited Notice to Proceed, dated as of September
30, 2009, and as further modified by that certain Second Limited Notice to
Proceed and Amendment to Contract, dated as of November 24, 2009.

 

2.     Power Purchase Agreement, dated as of September
29, 2009, by and between Stetson II Project Company and President and Fellows
of Harvard College.

 

3.     Contract for the Sale of Power Generation
Equipment and Related Services, dated June 27, 2006, as amended by that UPC
Notice No. 2007-GE-J3XU5-01, dated June 29, 2007, as amended by that External
Change Order (ECO) No. 2, dated November 20, 2007, as amended by Amendment No. 1
to the Contract for the Sale of Power Generation Equipment and Related
Services, dated November 27, 2007, as amended by External Change Order (ECO) No.
3, dated May 12, 2008, as amended by External Change Order (ECO) No. 4, dated September
17, 2008, as amended by Amendment No. 2 to the Contract for the Sale of Power
Generation Equipment and Related Services, dated February 20, 2009, as amended
by External Change Order (ECO) No. 5, dated June 1, 2009, as assigned to the
Stetson II Project Company, pursuant to that certain Assignment and Assumption
Agreement, dated as of the Stetson II Effective Date.

 

4.     Local Service Agreement between Bangor Hydro-Electric
Company, ISO New England, Inc. and Stetson II Project Company, dated as of June
26, 2009 for long term Non-Firm Local Point-to-Point Transmission Service.

 

5.     Operations Support Agreement, dated as of June 27,
2008, between General Electric International Incorporated, as operator, and
Stetson I Project Company, as owner.

 

6.     Project O&M Agreement, dated as of December 18,
2009, by and between Stetson II Project Company and Operator.

 

7.     Shared Facilities Agreement, by and between Stetson I
Project Company and Stetson II Project Company, dated as of the Stetson II
Effective Date.

 

8.     Equipment Purchase Agreement, dated as of April 29,
2009, by and between First Wind Construction, LLC, as Buyer, and Waukesha
Electric, as Seller, and assigned to Stetson II Project Company, pursuant to
that certain Assignment and Assumption Agreement, dated as of the Stetson II
Effective Date, by and between First Wind Construction, LLC and Stetson II
Project Company.

 

9.     Management Services Agreement, dated as of December 18,
2009, by and between Stetson II Project Company and First Wind Energy, LLC.

 

10.   Line Loss Allocation Letter Agreement,
dated February 2, 2009, entered into by Stetson I Project Company, Stetson II
Project Company and Evergreen Wind Power III, LLC.

 

32

 

11.   Standard Large Generator Interconnection
Agreement, dated August 14, 2009 and effective October 1, 2009, by and between
Stetson II Project Company, Evergreen Gen Lead, LLC, ISO New England, Inc. and
Bangor Hydro-Electric Company.

 

12.   Amended and Restated Land Lease
Agreement, dated December 26, 2008, by and between Lakeville Shores, Inc. and
Stetson II Project Company, a memorandum of which was recorded in the
Washington County Registry of Deeds in Book 3482, Page 141 on December 30,
2008.

 

13.   First Amendment to Amended and Restated
Land Lease Agreement, by and between Lakeville Shores, Inc. and Stetson II
Project Company, recorded in the Washington County Registry of Deeds in Book
3543, Page 234.

 

14.   Grant of Easements, Lakeville Shores, Inc.
to Stetson II Project Company recorded at the Washington County Registry of
Deeds in Book 3543, Page 249.

 

33

 

Schedule 5.2 

Consents, Authorizations, Filings and Notices

 

Consents required from
HSHN in connection with the HSHN Amendments.

 

34

 

Schedule 5.4

Locations of Principal Place of Business

 

	
  CSSW Holdings, LLC*

  
	
  c/o First Wind Energy,
  LLC

  
	
  179 Lincoln Street,
  Suite 500

  
	
  Boston, MA 02111

  
	
   

  
	
  CSSW, LLC*

  
	
  c/o First Wind Energy,
  LLC

  
	
  179 Lincoln Street,
  Suite 500

  
	
  Boston, MA 02111

  
	
   

  
	
  New York Wind III, LLC*

  
	
  c/o First Wind Energy,
  LLC

  
	
  179 Lincoln Street,
  Suite 500

  
	
  Boston, MA 02111

  
	
   

  
	
  New York Wind II, LLC*

  
	
  c/o First Wind Energy,
  LLC

  
	
  179 Lincoln Street,
  Suite 500

  
	
  Boston, MA 02111

  
	
   

  
	
  CSSW Cohoton Holdings,
  LLC*

  
	
  c/o First Wind Energy,
  LLC

  
	
  179 Lincoln Street,
  Suite 500

  
	
  Boston, MA 02111

  
	
   

  
	
  New York Wind, LLC*

  
	
  c/o First Wind Energy,
  LLC

  
	
  179 Lincoln Street,
  Suite 500

  
	
  Boston, MA 02111

  
	
   

  
	
  Canandaigua Power Partners,
  LLC*

  
	
  c/o First Wind Energy,
  LLC

  
	
  179 Lincoln Street,
  Suite 500

  
	
  Boston, MA 02111

  
	
   

  
	
  Canandaigua Power
  Partners II, LLC*

  
	
  c/o First Wind Energy,
  LLC

  
	
  179 Lincoln Street,
  Suite 500

  
	
  Boston, MA 02111

  

 

*      Previous place of business
during the last six (6) months (including as of the Initial Closing Date and
the Subsequent Closing Date): 85 Wells Ave., Suite 305, Newton, MA 02459.

 

35

 

	
  Niagara Wind Power, LLC*

  
	
  c/o First Wind Energy,
  LLC

  
	
  179 Lincoln Street,
  Suite 500

  
	
  Boston, MA 02111

  
	
   

  
	
  CSSW Stetson Holdings,
  LLC

  
	
  c/o First Wind Energy,
  LLC

  
	
  179 Lincoln Street,
  Suite 500

  
	
  Boston, MA 02111

  
	
   

  
	
  Stetson Holdings, LLC*

  
	
  c/o First Wind Energy,
  LLC

  
	
  179 Lincoln Street,
  Suite 500

  
	
  Boston, MA 02111

  
	
   

  
	
  Evergreen Wind Power V,
  LLC*

  
	
  c/o First Wind Energy,
  LLC

  
	
  179 Lincoln Street,
  Suite 500

  
	
  Boston, MA 02111

  
	
   

  
	
  Stetson Wind II, LLC*

  
	
  c/o First Wind Energy,
  LLC

  
	
  179 Lincoln Street,
  Suite 500

  
	
  Boston, MA 02111

  

 

36

 

Schedule 5.5 

Subsidiaries

 

After
Initial Closing

 

	
  Name

  	
   

  	
  Jurisdiction

  of

  Organization

  	
   

  	
  Owner of Equity Interests

  	
   

  	
  Percentage of Membership

  Interest

  
	
  CSSW,
  LLC

  	
   

  	
  DE

  	
   

  	
  CSSW
  Holdings, LLC

  	
   

  	
  100%

  
	
  New
  York Wind III, LLC

  	
   

  	
  DE

  	
   

  	
  CSSW,
  LLC

  	
   

  	
  100%

  
	
  New
  York Wind II, LLC

  	
   

  	
  DE

  	
   

  	
  New
  York Wind III, LLC

  	
   

  	
  75%
  (Class A Membership Interest)

  
	
   

  	
   

  	
   

  	
   

  	
  Lehman
  First Wind Holdings, LLC

  	
   

  	
  25%
  (Class B Membership Interest)

  
	
  New
  York Wind, LLC*

  	
   

  	
  DE

  	
   

  	
  New
  York Wind II, LLC

  	
   

  	
  100%

  
	
  Canandaigua
  Power Partners, LLC*

  	
   

  	
  DE

  	
   

  	
  New
  York Wind, LLC

  	
   

  	
  100%

  
	
  Canandaigua
  Power Partners II, LLC*

  	
   

  	
  DE

  	
   

  	
  New
  York Wind, LLC

  	
   

  	
  100%

  
	
  Niagara
  Wind Power, LLC

  	
   

  	
  DE

  	
   

  	
  New
  York Wind II, LLC

  	
   

  	
  100%(2)

  
	
  Stetson
  Holdings, LLC

  	
   

  	
  DE

  	
   

  	
  CSSW,
  LLC

  	
   

  	
  100%

  
	
  Evergreen
  Wind Power V, LLC

  	
   

  	
  DE

  	
   

  	
  Stetson
  Holdings, LLC

  	
   

  	
  100%

  

 

After
Subsequent Closing

 

	
  Name

  	
   

  	
  Jurisdiction

  of

  Organization

  	
   

  	
  Owner of Equity Interests

  	
   

  	
  Percentage of Membership

  Interest

  
	
  CSSW,
  LLC

  	
   

  	
  DE

  	
   

  	
  CSSW
  Holdings, LLC

  	
   

  	
  100%

  
	
  New
  York Wind III, LLC

  	
   

  	
  DE

  	
   

  	
  CSSW,
  LLC

  	
   

  	
  100%

  
	
  New
  York Wind II, LLC

  	
   

  	
  DE

  	
   

  	
  New
  York Wind III, LLC

  	
   

  	
  100%

  
	
  CSSW
  Cohocton Holdings, LLC

  	
   

  	
  DE

  	
   

  	
  CSSW,
  LLC

  	
   

  	
  100%

  
	
  New
  York Wind, LLC

  	
   

  	
  DE

  	
   

  	
  CSSW
  Cohocton Holdings, LLC

  	
   

  	
  100%

  
	
  Canandaigua
  Power Partners, LLC

  	
   

  	
  DE

  	
   

  	
  New
  York Wind, LLC

  	
   

  	
  100%

  
	
  Canandaigua
  Power Partners II, LLC

  	
   

  	
  DE

  	
   

  	
  New
  York Wind, LLC

  	
   

  	
  100%

  
	
  Niagara
  Wind Power, LLC

  	
   

  	
  DE

  	
   

  	
  New
  York Wind II, LLC

  	
   

  	
  100%

  

 

	
  *

  	
  Control subject to
  Nominee Agreement.

  
	
   

  	
   

  
	
  (2)

  	
  Ownership interest is reduced pursuant to Steel
  Winds Project Company Limited Liability Company Operating Agreement.

  

 

37

 

	
  Stetson
  Holdings, LLC

  	
   

  	
  DE

  	
   

  	
  CSSW,
  LLC

  	
   

  	
  100%

  
	
  Evergreen
  Wind Power V, LLC

  	
   

  	
  DE

  	
   

  	
  Stetson
  Holdings, LLC

  	
   

  	
  100%

  

 

After
Stetson II Effective Date

 

	
  Name

  	
   

  	
  Jurisdiction

  of

  Organization

  	
   

  	
  Owner of Equity Interests

  	
   

  	
  Percentage of Membership

  Interest

  
	
  CSSW,
  LLC

  	
   

  	
  DE

  	
   

  	
  CSSW
  Holdings, LLC

  	
   

  	
  100%

  
	
  New
  York Wind III, LLC

  	
   

  	
  DE

  	
   

  	
  CSSW,
  LLC

  	
   

  	
  100%

  
	
  New
  York Wind II, LLC

  	
   

  	
  DE

  	
   

  	
  New
  York Wind III, LLC

  	
   

  	
  100%

  
	
  CSSW
  Cohocton Holdings

  	
   

  	
  DE

  	
   

  	
  CSSW,
  LLC

  	
   

  	
  100%

  
	
  New
  York Wind, LLC

  	
   

  	
  DE

  	
   

  	
  CSSW
  Cohocton Holdings, LLC

  	
   

  	
  100%

  
	
  Canandaigua
  Power Partners, LLC

  	
   

  	
  DE

  	
   

  	
  New
  York Wind, LLC

  	
   

  	
  100%

  
	
  Canandaigua
  Power Partners II, LLC

  	
   

  	
  DE

  	
   

  	
  New
  York Wind, LLC

  	
   

  	
  100%

  
	
  Niagara
  Wind Power, LLC

  	
   

  	
  DE

  	
   

  	
  New
  York Wind II, LLC

  	
   

  	
  100%

  
	
  CSSW
  Stetson Holdings, LLC

  	
   

  	
  DE

  	
   

  	
  CSSW,
  LLC

  	
   

  	
  100%

  
	
  Stetson
  Holdings, LLC

  	
   

  	
  DE

  	
   

  	
  CSSW
  Stetson Holdings, LLC

  	
   

  	
  100%

  
	
  Evergreen
  Wind Power V, LLC

  	
   

  	
  DE

  	
   

  	
  Stetson
  Holdings, LLC

  	
   

  	
  100%

  
	
  Stetson
  Wind II, LLC

  	
   

  	
  DE

  	
   

  	
  Stetson
  Holdings, LLC

  	
   

  	
  100%

  

 

38

 

Schedule 5.6

Taxes

 

NONE

 

39

 

Schedule 5.7

Material Events

 

Clipper Blade remediation at Cohocton Project and
Steel Winds Project.

RCA65
Blade Skin Crack RCA Overview

· Blade skin
crack found at 6m blade station on turbine during 2000 hour post-commissioning
blade inspection on Friday 8/22/08

· RCA65 launched
Monday 8/25/08 to investigate problem

· Blade
inspections are on-going at 500 hr intervals on all operational turbines.
Turbines with identified blade skin cracks are taken off line and put in
standby mode.

· Root cause has
been identified: manufacturing defect, wrinkle in structural skin laminate.

· Factory
corrective action has been implemented and field repair activities are
underway.

 

40

 

Schedule 5.13

Employee Benefits

 

NONE

 

41

 

Schedule 5.19

Governmental Approvals

 

NONE

 

 

Schedule 5.20

Financing Statements

 

	
  Financing
  Statement

  	
   

  	
  Filing Office

  
	
   

  	
   

  	
   

  
	
  Upon occurrence of the Initial
  Closing Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  UCC-1 Financing
  Statement evidencing the pledge by CSSW Holdings, LLC, in favor of Collateral
  Agent, of all assets as collateral

  	
   

  	
  Delaware

  
	
   

  	
   

  	
   

  
	
  UCC-1 Financing
  Statement evidencing the pledge by CSSW, LLC, in favor of Collateral Agent,
  of all assets as collateral

  	
   

  	
  Delaware

  
	
   

  	
   

  	
   

  
	
  Upon occurrence of the
  Subsequent Closing Date:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  UCC-1 Financing
  Statement evidencing the pledge by Steel Winds Holding Company, in favor of
  Collateral Agent, of 100% of the Equity Interests in Niagara Wind Power, LLC
  as collateral(3)

  	
   

  	
  Delaware

  
	
   

  	
   

  	
   

  
	
  UCC-1 Financing
  Statement evidencing the pledge by Niagara Wind Power, LLC, in favor of
  Collateral Agent, of all assets of Niagara Wind Power, LLC as collateral(4)

  	
   

  	
  Delaware

  

 

	
  (3)

  	
  Unless
  LC Indebtedness of Steel Winds Project Company is then in existence.

  
	
   

  	
   

  
	
  (4)

  	
  Unless LC Indebtedness of
  Steel Winds Project Company is then in existence.

  

 

43

 

Schedule 5.21(b)

Regulatory Matters

 

On
the Stetson II Effective Date, the Stetson II Project Company will not be, nor
will it be required to be by FERC or under the FPA, as applicable, subject to
regulation under the FPA as a “public utility”, authorized by an order issued
by FERC to make sales of energy capacity and ancillary services at market-based
rates pursuant to Section 205 of the FPA or have both market-based rate
authority and blanket authorization to issue securities and assume liabilities
pursuant to Section 204 of the FPA, as well as other waivers of regulations and
blanket authorizations as are customarily granted by FERC to entities with
market-based rate authorization.

 

 

Schedule 10.1

Indebtedness

 

NONE

 

45

 

Schedule 10.2

Liens

 

NONE

 

46

 

Schedule 10.3

Investments

 

NONE

 

47Exhibit 10.26

 

CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED FOR THE REDACTED PORTIONS OF THIS AGREEMENT. THE REDACTIONS ARE
INDICATED WITH FIVE ASTERISKS (“*****”). A COMPLETE VERSION OF THIS AGREEMENT
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

Execution Version

 

FINANCING AGREEMENT

 

among

 

STETSON HOLDINGS, LLC

 

a Delaware limited liability company

 

(Borrower);

 

BNP PARIBAS

 

(Joint Lead Arranger, Joint
Bookrunner, Administrative Agent for the Lenders, and as Issuing Bank)

 

HSH NORDBANK AG, NEW YORK BRANCH

 

(Joint Lead Arranger, Joint Bookrunner, Co-Syndication
Agent);

 

BNP PARIBAS

 

(Security Agent for the Secured Parties);

 

and

 

THE LENDERS PARTIES HERETO

 

 

TABLE
OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1.
  DEFINITIONS

  	
  1

  
	
  1.1

  	
  Definitions

  	
  1

  
	
  1.2

  	
  Rules of
  Interpretation

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2.
  THE LOAN FACILITY

  	
  1

  
	
  2.1

  	
  Loan
  Facility

  	
  1

  
	
  2.2

  	
  Letters of
  Credit

  	
  4

  
	
  2.3

  	
  Use of Loan
  Proceeds

  	
  12

  
	
  2.4

  	
  Total
  Commitment

  	
  12

  
	
  2.5

  	
  Notice of
  Borrowing of Loans

  	
  13

  
	
  2.6

  	
  Defaulting
  Lenders

  	
  13

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3.
  GENERAL PROVISIONS RELATED TO CREDIT FACILITIES

  	
  15

  
	
  3.1

  	
  Loan Funding

  	
  15

  
	
  3.2

  	
  Prepayments

  	
  16

  
	
  3.3

  	
  Fees

  	
  18

  
	
  3.4

  	
  Other
  Payment Terms

  	
  20

  
	
  3.5

  	
  Pro Rata
  Treatment

  	
  25

  
	
  3.6

  	
  Change of
  Circumstances

  	
  26

  
	
  3.7

  	
  Funding
  Losses

  	
  28

  
	
  3.8

  	
  Alternate
  Office; Minimization of Costs

  	
  29

  
	
  3.9

  	
  Interest
  Rate Protection

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4.
  COLLATERAL DOCUMENTS

  	
  30

  
	
  4.1

  	
  Security

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5.
  CONDITIONS PRECEDENT

  	
  32

  
	
  5.1

  	
  Conditions
  Precedent to the Closing Date; Issuance of Letters of Credit

  	
  32

  
	
  5.2

  	
  Conditions
  Precedent to each Borrowing

  	
  39

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6.
  REPRESENTATIONS AND WARRANTIES

  	
  40

  
	
  6.1

  	
  Organization

  	
  40

  
	
  6.2

  	
  Authorization;
  No Conflict

  	
  41

  
	
  6.3

  	
  Enforceability

  	
  41

  
	
  6.4

  	
  ERISA

  	
  42

  
	
  6.5

  	
  Taxes

  	
  42

  
	
  6.6

  	
  Business,
  Debt, Contracts, Etc.

  	
  42

  
	
  6.7

  	
  Private
  Offering by Borrower

  	
  43

  
	
  6.8

  	
  Filings

  	
  43

  
	
  6.9

  	
  Investment
  Company, Holding Company Act

  	
  43

  
	
  6.10

  	
  Governmental
  Regulation

  	
  43

  
	
  6.11

  	
  Margin Stock

  	
  43

  
	
  6.12

  	
  Financial
  Statements

  	
  44

  
	
  6.13

  	
  Partnerships
  and Joint Ventures

  	
  44

  
				

 

i

 

TABLE OF CONTENTS

(Continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  6.14

  	
  Existing
  Defaults

  	
  44

  
	
  6.15

  	
  No Default

  	
  44

  
	
  6.16

  	
  Permits

  	
  44

  
	
  6.17

  	
  Offices,
  Location of Collateral

  	
  45

  
	
  6.18

  	
  No Material
  Adverse Effect

  	
  46

  
	
  6.19

  	
  Environmental
  Matters

  	
  46

  
	
  6.20

  	
  Litigation

  	
  47

  
	
  6.21

  	
  Title and
  Liens

  	
  47

  
	
  6.22

  	
  Utilities

  	
  48

  
	
  6.23

  	
  Roads/Feeder
  Lines

  	
  48

  
	
  6.24

  	
  Sufficiency
  of Project Documents

  	
  49

  
	
  6.25

  	
  Project
  Documents

  	
  49

  
	
  6.26

  	
  Representations
  and Warranties of Affiliated Participants

  	
  49

  
	
  6.27

  	
  EWG

  	
  49

  
	
  6.28

  	
  Labor
  Disputes and Acts of God

  	
  50

  
	
  6.29

  	
  Disclosure

  	
  50

  
	
  6.30

  	
  Base Case
  Project Projections

  	
  50

  
	
  6.31

  	
  Collateral

  	
  50

  
	
  6.32

  	
  Intellectual
  Property

  	
  51

  
	
  6.33

  	
  Proper
  Subdivision

  	
  51

  
	
  6.34

  	
  Land Not in
  Flood Zone

  	
  51

  
	
  6.35

  	
  Insurance

  	
  52

  
	
  6.36

  	
  Bankruptcy
  Event

  	
  52

  
	
  6.37

  	
  Construction
  of Projects

  	
  52

  
	
  6.38

  	
  Construction
  Contracts

  	
  52

  
	
  6.39

  	
  Warranty
  Period

  	
  52

  
	
  6.40

  	
  OFAC and
  Related Matters

  	
  52

  
	
  6.41

  	
  OFAC
  Restrictions

  	
  53

  
	
  6.42

  	
  Line Outage
  Costs

  	
  53

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7.
  COVENANTS OF BORROWER

  	
  53

  
	
  7.1

  	
  Use of Loan
  Proceeds and Project Revenues

  	
  54

  
	
  7.2

  	
  Payment

  	
  54

  
	
  7.3

  	
  Notices and
  Deliveries

  	
  54

  
	
  7.4

  	
  Financial
  Statements

  	
  57

  
	
  7.5

  	
  Reports

  	
  58

  
	
  7.6

  	
  Additional
  Permits and Project Documents; Additional Consents

  	
  59

  
	
  7.7

  	
  Compliance
  with Environmental Report Recommendations

  	
  59

  
	
  7.8

  	
  Existence,
  Conduct of Business, Properties, Etc.

  	
  60

  
	
  7.9

  	
  Obligations

  	
  60

  
	
  7.10

  	
  Books,
  Records, Access

  	
  60

  
	
  7.11

  	
  EWG and Rate
  Approval

  	
  61

  
	
  7.12

  	
  Operation of Projects

  	
  61

  

 

ii

 

TABLE OF CONTENTS

(Continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  7.13

  	
  Preservation
  of Rights; Further Assurances

  	
  62

  
	
  7.14

  	
  Taxes, Other
  Government Charges and Utility Charges

  	
  63

  
	
  7.15

  	
  Compliance
  With Laws; Permits

  	
  63

  
	
  7.16

  	
  Compliance
  with Anti-Money Laundering and OFAC Laws

  	
  64

  
	
  7.17

  	
  Separateness
  Provisions

  	
  65

  
	
  7.18

  	
  Enforcement
  of Remedies

  	
  65

  
	
  7.19

  	
  O&M
  Service Agreement

  	
  65

  
	
  7.20

  	
  Maintenance
  of Insurance

  	
  65

  
	
  7.21

  	
  Maintenance
  of Title

  	
  72

  
	
  7.22

  	
  Event of
  Eminent Domain

  	
  72

  
	
  7.23

  	
  Indemnification

  	
  72

  
	
  7.24

  	
  Replacement
  of Operator

  	
  75

  
	
  7.25

  	
  Government
  Grant

  	
  75

  
	
  7.26

  	
  Further
  Assurances

  	
  75

  
	
  7.27

  	
  Upwind Array
  Effect

  	
  75

  
	
  7.28

  	
  Capacity
  Revenues

  	
  76

  
	
  7.29

  	
  Survey —
  Stetson II Project

  	
  76

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8.
  NEGATIVE COVENANTS OF BORROWER

  	
  77

  
	
  8.1

  	
  Contingent Liabilities

  	
  77

  
	
  8.2

  	
  Limitations on Lien

  	
  77

  
	
  8.3

  	
  Indebtedness

  	
  77

  
	
  8.4

  	
  Sale or
  Lease of Assets

  	
  77

  
	
  8.5

  	
  Changes

  	
  78

  
	
  8.6

  	
  Distributions

  	
  78

  
	
  8.7

  	
  Investments

  	
  78

  
	
  8.8

  	
  Transactions
  With Affiliates

  	
  78

  
	
  8.9

  	
  Margin Stock
  Regulations

  	
  79

  
	
  8.10

  	
  Partnerships

  	
  79

  
	
  8.11

  	
  Dissolution

  	
  79

  
	
  8.12

  	
  Amendments;
  Change Orders

  	
  79

  
	
  8.13

  	
  Compliance
  With Operative Documents

  	
  80

  
	
  8.14

  	
  Name and
  Location; Fiscal Year

  	
  80

  
	
  8.15

  	
  Use of
  Project Site

  	
  80

  
	
  8.16

  	
  Assignment

  	
  80

  
	
  8.17

  	
  Transfer of
  Interest

  	
  80

  
	
  8.18

  	
  Abandonment
  of Projects

  	
  80

  
	
  8.19

  	
  Environmental
  Matters

  	
  81

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9.
  COLLATERAL ACCOUNTS

  	
  81

  
	
  9.1

  	
  Establishment
  of Collateral Accounts

  	
  81

  
	
  9.2

  	
  Permitted
  Investments

  	
  81

  
	
  9.3

  	
  Foreclosure

  	
  82

  

 

iii

 

TABLE OF CONTENTS

(Continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10.
  EVENTS OF DEFAULT; REMEDIES

  	
  82

  
	
  10.1

  	
  Events of
  Default

  	
  82

  
	
  10.2

  	
  Remedies

  	
  88

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11.
  SCOPE OF LIABILITY

  	
  89

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12.
  AGENTS

  	
  90

  
	
  12.1

  	
  Appointment,
  Powers and Immunities

  	
  90

  
	
  12.2

  	
  Duties,
  Responsibilities, Powers and Immunities of Agents

  	
  91

  
	
  12.3

  	
  Reliance by
  Agents

  	
  92

  
	
  12.4

  	
  Non-Reliance

  	
  92

  
	
  12.5

  	
  Defaults

  	
  92

  
	
  12.6

  	
  Indemnification

  	
  93

  
	
  12.7

  	
  Successor
  Agents

  	
  93

  
	
  12.8

  	
  Authorization

  	
  94

  
	
  12.9

  	
  Other Rights
  and Powers of Agents

  	
  94

  
	
  12.10

  	
  Security
  Agent to Hold in Trust.

  	
  95

  
	
  12.11

  	
  Amendments
  and Decision Making

  	
  95

  
	
  12.12

  	
  Withholding
  Tax

  	
  96

  
	
  12.13

  	
  Substitution
  of Lender

  	
  97

  
	
  12.14

  	
  Participations

  	
  97

  
	
  12.15

  	
  Transfer of
  Loans; Commitments

  	
  98

  
	
  12.16

  	
  Laws

  	
  99

  
	
  12.17

  	
  Assignability
  to Federal Reserve Bank

  	
  99

  
	
  12.18

  	
  Response to
  Borrower Requests

  	
  99

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13.
  INDEPENDENT CONSULTANTS

  	
  100

  
	
  13.1

  	
  Removal and
  Fees

  	
  100

  
	
  13.2

  	
  Duties

  	
  100

  
	
  13.3

  	
  Independent
  Consultants’ Certificates

  	
  100

  
	
  13.4

  	
  Certification
  of Dates

  	
  100

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14.
  MISCELLANEOUS

  	
  101

  
	
  14.1

  	
  Addresses

  	
  101

  
	
  14.2

  	
  Additional
  Security; Right to-Set Off

  	
  102

  
	
  14.3

  	
  Delay and
  Waiver

  	
  102

  
	
  14.4

  	
  Costs,
  Expenses and Attorneys’ Fees

  	
  103

  
	
  14.5

  	
  Attorney-In-Fact

  	
  103

  
	
  14.6

  	
  Entire
  Agreement; Amendments

  	
  103

  
	
  14.7

  	
  Governing
  Law

  	
  104

  
	
  14.8

  	
  Severability

  	
  104

  
	
  14.9

  	
  Headings

  	
  104

  
	
  14.10

  	
  Accounting
  Terms

  	
  104

  

 

iv

 

TABLE OF CONTENTS

(Continued)

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  14.11

  	
  Additional
  Financing

  	
  104

  
	
  14.12

  	
  No
  Partnership, Etc.

  	
  105

  
	
  14.13

  	
  Mortgage Documents/Collateral Documents

  	
  105

  
	
  14.14

  	
  Limitation on Liability

  	
  105

  
	
  14.15

  	
  Waiver of
  Jury Trial

  	
  105

  
	
  14.16

  	
  Consent to
  Jurisdiction

  	
  106

  
	
  14.17

  	
  Usury

  	
  106

  
	
  14.18

  	
  Successors
  and Assigns

  	
  107

  
	
  14.19

  	
  Confidentiality

  	
  107

  
	
  14.20

  	
  Counterparts

  	
  108

  
	
  14.21

  	
  Patriot Act Compliance

  	
  108

  

 

v

 

INDEX OF EXHIBITS AND SCHEDULES

 

	
  Exhibit A

  	
   

  	
  Definitions
  and Rules of Interpretation

  
	
   

  	
   

  	
   

  
	
  Exhibit B-1

  	
   

  	
  Form of
  Note

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
   

  	
  [Reserved]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Disbursement
  Procedures

  
	
   

  	
   

  	
   

  
	
  Exhibit D-1

  	
   

  	
  [Reserved]

  
	
  Exhibit D-2

  	
   

  	
  [Reserved]

  
	
  Exhibit D-3

  	
   

  	
  Form of
  Confirmation of Interest Period Selection

  
	
  Exhibit D-4

  	
   

  	
  Form of
  Notice of Borrowing

  
	
  Exhibit D-5

  	
   

  	
  Form of
  Pending Disbursements Clause

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Security-Related
  Documents

  
	
   

  	
   

  	
   

  
	
  Exhibit E-1

  	
   

  	
  Form of
  Mortgage Documents

  
	
  Exhibit E-2

  	
   

  	
  Form of
  Borrower Pledge and Security Agreement

  
	
  Exhibit E-3

  	
   

  	
  Form of
  Guaranty and Security Agreement

  
	
  Exhibit E-4

  	
   

  	
  Form of
  Account Control Agreement

  
	
  Exhibit E-5

  	
   

  	
  Schedule of
  Permitted Encumbrances

  
	
  Exhibit E-6

  	
   

  	
  Schedule of
  Security Filings

  
	
  Exhibit E-7

  	
   

  	
  Form of
  Member Pledge and Security Agreement

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Consents

  
	
   

  	
   

  	
   

  
	
  Exhibit F-1

  	
   

  	
   

  
	
  Exhibit F-2

  	
   

  	
  Form of
  Consent of BOP Contractor

  
	
  Exhibit F-3

  	
   

  	
  Form of
  Consent of Energy Hedge Provider

  
	
  Exhibit F-4

  	
   

  	
  Form of
  Consent of Energy Hedge Guarantor

  
	
  Exhibit F-5

  	
   

  	
  [Reserved]

  
	
  Exhibit F-6

  	
   

  	
  Form of Landowner Estoppel

  
	
  Exhibit F-7

  	
   

  	
  Form of
  Consent of Contracting Party

  
	
  Exhibit F-8

  	
   

  	
  Form of
  Consent of Turbine Supplier and Turbine Operator

  
	
  Exhibit F-9

  	
   

  	
  [Reserved]

  
	
  Exhibit F-10

  	
   

  	
  Form of
  Consent of Operator

  
	
  Exhibit F-11

  	
   

  	
  Form of
  Shared Facilities Consent

  
	
  Exhibit F-12

  	
   

  	
  Form of
  Project Administration Agreement Consent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Closing
  Certificates

  
	
   

  	
   

  	
   

  
	
  Exhibit G-1

  	
   

  	
  Form of
  Borrower’s Closing Certificate

  
	
  Exhibit G-2

  	
   

  	
  Form of
  Insurance Consultant’s Certificate

  
	
  Exhibit G-3

  	
   

  	
  Form of
  Environmental Consultant’s Certificate

  

 

vi

 

	
  Exhibit G-4

  	
   

  	
  Form of
  Independent Engineer’s Closing Certificate and Report

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Project
  Description Exhibits

  
	
   

  	
   

  	
   

  
	
  Exhibit H-1

  	
   

  	
  [Reserved]

  
	
  Exhibit H-2A

  	
   

  	
  Schedule of
  Borrower Permit Exceptions— Environmental, Permitting, Real Property, Maine
  Regulatory Matters and FERC

  
	
  Exhibit H-2B

  	
   

  	
  Schedule of
  Applicable Permits — Environmental, Permitting, Real Property, Maine
  Regulatory Matters and FERC

  
	
  Exhibit H-3

  	
   

  	
  Governmental
  Regulations

  
	
  Exhibit H-4

  	
   

  	
  [Reserved]

  
	
  Exhibit H-5

  	
   

  	
  Pending
  Litigation

  
	
  Exhibit H-6

  	
   

  	
  Environmental
  Matters Disclosure

  
	
  Exhibit H-7

  	
   

  	
  Chief
  Executive Office of Borrower

  
	
  Exhibit H-8A

  	
   

  	
  Description
  of Stetson I Real Property Interests

  
	
  Exhibit H-8B

  	
   

  	
  Description
  of Stetson II Real Property Interests

  
	
  Exhibit H-9

  	
   

  	
  Description
  of Transmission Line Real Property Interests

  
	
   

  	
   

  	
   

  
	
  Other
  Exhibits

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit I

  	
   

  	
  Lenders/Lending
  Offices

  
	
  Exhibit J

  	
   

  	
  Schedule of
  Lender Proportionate Shares

  
	
  Exhibit K

  	
   

  	
  Amortization
  Schedule

  
	
  Exhibit L-1

  	
   

  	
  Form of
  Withholding Certificate (Treaty)

  
	
  Exhibit L-2

  	
   

  	
  Form of
  Withholding Certificate (Effectively Connected)

  
	
  Exhibit L-3

  	
   

  	
  Form of
  Withholding Certificate (Portfolio Interest)

  
	
  Exhibit M

  	
   

  	
  Form of
  Subordination Agreement

  
	
  Exhibit N

  	
   

  	
  Form of
  Assignment Agreement

  
	
  Exhibit O

  	
   

  	
  Form of
  O&M Reserve LC

  
	
  Exhibit P

  	
   

  	
  Form of
  Debt Service Reserve LC

  
	
  Exhibit Q-1

  	
   

  	
  Form of
  Energy Hedge LC

  
	
  Exhibit Q-2

  	
   

  	
  Form of
  REC Contract LC

  
	
  Exhibit R

  	
   

  	
  Form of
  Working Capital LC

  
	
  Exhibit S

  	
   

  	
  Form of
  Notice of LC Activity

  

 

vii

 

FINANCING AGREEMENT

 

This FINANCING AGREEMENT (this “Financing
Agreement”), dated as of December 22, 2009, is entered into by and
among STETSON HOLDINGS, LLC, a Delaware
limited liability company, as Borrower; the financial institutions listed on Exhibit I
or who later become a party hereto, as Lenders; BNP PARIBAS,
as a Joint Lead Arranger, as Administrative Agent for the Lenders, Security
Agent for the Secured Parties, and as Issuing Bank; and HSH NORDBANK
AG, NEW YORK BRANCH, as a Joint Lead Arranger.

 

AGREEMENT

 

In consideration of the agreements herein and in the other Financing
Documents and in reliance upon the representations and warranties set forth
herein and therein, the parties agree as follows:

 

ARTICLE
1.

DEFINITIONS

 

1.1          Definitions.

 

Except
as otherwise expressly provided, capitalized terms used in this Financing
Agreement and its exhibits shall have the meanings given in Exhibit A.

 

1.2          Rules of Interpretation.

 

Except
as otherwise expressly provided, the rules of interpretation set forth in Exhibit A
shall apply to this Financing Agreement and the other Financing Documents.

 

ARTICLE
2.

THE LOAN FACILITY

 

2.1                               Loan Facility.

 

(a)                                 Availability.

 

(i)                                     Term Loan.  Subject to
the terms and conditions set forth in this Financing Agreement, each Lender
severally agrees to make to Borrower one or more loans as Borrower may request
during the Availability Period under Section 2.5 (individually, a “Term
Loan” and, collectively, the “Term Loans”), in an aggregate
principal amount not to exceed such Lender’s Proportionate Share of the Total
Term Loan Commitment.  Borrower may
request Base Rate Loans or LIBO Rate Loans, in each case, pursuant to the
Notice of Borrowing under Section 2.5.  Each Lender shall make its Term Loan, in an
amount not in excess of its Total Term Loan Commitment, pursuant to Section 3.1(c).

 

(ii)                                  Bridge Loan. 
Subject to the terms and conditions set forth in this Financing
Agreement, each Lender severally agrees to make to Borrower 

 

 

one or more loans
as Borrower may request during the Availability Period under Section 2.5
(individually, a “Bridge Loan” and, collectively, the “Bridge Loans”),
in an aggregate principal amount not to exceed such Lender’s Proportionate
Share of the Total Bridge Loan Commitment. 
Borrower may request Base Rate Loans or LIBO Rate Loans, in each case,
pursuant to the Notice of Borrowing under Section 2.5.  Each Lender shall make its Bridge Loan, in an
amount not in excess of its Total Bridge Loan Commitment, pursuant to Section 3.1(c).

 

(b)                                 Interest Provisions.

 

(i)                                     Interest Rate. 
Each Loan shall bear interest on the unpaid principal amount thereof
from the date of the funding of such Loan until the repayment or prepayment
thereof at a rate determined by reference to the LIBO Rate or Base Rate, as
applicable.  In respect of Term Loans and
Bridge Loans, the applicable basis for determining the rate of interest with
respect to any LIBO Rate Loan shall be selected by Borrower initially at the
time the Notice of Borrowing is given with respect to such LIBO Rate Loan
pursuant to Section 2.5, and, thereafter, the basis for determining
the interest rate with respect to such LIBO Rate Loan may be changed from time
to time pursuant to Section 2.1(c).

 

Borrower shall pay
interest (including interest accruing after the commencement of an insolvency
proceeding under applicable Bankruptcy Law) on the unpaid principal amount of
each LIBO Rate Loan from the date of the funding of such LIBO Rate Loan until
the repayment or prepayment thereof, at a rate per annum in effect during each
Interest Period for such LIBO Rate Loan, equal to the LIBO Rate for the
relevant Interest Period plus the Applicable Margin.  Borrower shall pay interest (including
interest accruing after the commencement of an insolvency proceeding under
applicable Bankruptcy Law) on the unpaid principal amount of each Base Rate
Loan from the date of the funding of such Base Rate Loan until the repayment or
prepayment thereof, at a rate per annum equal to the Base Rate in effect during
such period plus the Applicable Base Rate Margin.  In the event that an Event of Default shall
have occurred and be continuing, the applicable Default Rate shall apply to all
then outstanding Loans and shall be payable on demand or otherwise pursuant to Section 3.4(c)(ii).

 

(ii)                                  Interest Payment Dates. 
Borrower shall pay accrued interest on the unpaid principal amount of
each outstanding Loan (a) on each Payment Date and (b) upon
prepayment (to the extent thereof) and at maturity of each Loan (each an “Interest
Payment Date”).

 

2

 

(c)           Interest Periods.

 

(i)            Solely with respect to Term Loans and
Bridge Loans and in connection with each LIBO Rate Loan, Borrower shall,
pursuant to the Notice of Borrowing or a Confirmation of Interest Period
Selection select an Interest Period to be applicable to such LIBO Rate Loans,
which Interest Periods shall be a six (6) month period  ending
in each case on a Payment Date or, solely with respect to the initial LIBO Rate
Loans, any shorter Interest Period ending on the first Payment Date, as
requested by Borrower and approved by Administrative Agent (any such period, an
“Interest Period”); provided, however, that (1) with
the exception of any shorter Interest Period ending on the first Payment Date,
the selection of any Interest Period other than the six (6) month Interest
Period shall be subject to availability of such Interest Period from each
Lender; (2) any Interest Period which would otherwise end on a day which
is not a Business Day shall be extended to the next succeeding Business Day
unless that day falls in the next calendar month, in which case such Interest
Period shall end on the immediately preceding Business Day; (3) any
Interest Period which begins on the last Business Day of a calendar month (or
on a day for which there is no numerically corresponding day in the calendar
month at the end of such Interest Period) shall end on the last Business Day of
a calendar month; and (4) no Interest Period shall extend beyond the Term
Loan Maturity Date or Bridge Loan Maturity Date, as applicable.  If Borrower fails to notify Administrative
Agent of the next Interest Period for any LIBO Rate Loan in accordance with
this Section 2.1(c)(i), such Term Loan or Bridge Loan, as
applicable, shall automatically continue as a new LIBO Rate Loan with the same
Interest Period as such prior LIBO Rate Loan; provided, however,
that in the event that the Interest Period of such new LIBO Rate Loan would
extend beyond the applicable Maturity Date, then such Loan shall automatically
convert to a Base Rate Loan.

 

(d)           Interest Account and Interest
Computations.  Borrower authorizes Administrative Agent to
record in an account or accounts maintained by Administrative Agent on its
books (1) the interest rates applicable to all Loans and the effective
dates of all changes thereto; (2) the Interest Period for each LIBO Rate
Loan; (3) the date and amount of each principal and interest payment on
each outstanding Loan; and (4) such other information as Administrative
Agent may determine is necessary for the computation of interest payable by
Borrower hereunder consistent with this Financing Agreement.  Borrower agrees that all computations of
interest made by Administrative Agent shall be conclusive in the absence of
demonstrable error.  Administrative Agent
shall, at the request of Borrower, deliver to Borrower a statement detailing
such computations of interest.  All
computations of interest on LIBO Rate Loans shall be based upon a year of 360
days and the actual days elapsed (including the first day but excluding the
last day of the applicable Interest Period). 
All computations of interest on Base Rate Loans hereunder shall be based
upon a year of 365 days (or 366 days in a leap year) and the actual days 

 

3

 

elapsed (including the
first day but excluding the last day of the applicable interest period).

 

(e)           Principal Payments. 
On each Payment Date, Borrower shall repay to Administrative Agent for
the account of each Lender, an amount equal to the Scheduled Repayment Amount
for such Payment Date.  Any unpaid
principal, interest, fees, costs and all other Obligations with respect to the
Loans shall be due and payable on the Bridge Loan Maturity Date, LC Loan
Maturity Date or Term Loan Maturity Date, as applicable.   Notwithstanding the foregoing, in no event
shall the principal amount of the Loans to be repaid by Borrower on any Payment
Date exceed the aggregate principal amount of the Loans then outstanding.

 

(f)            Promissory Notes. 
The obligation of Borrower to repay the Loans made by each Lender and to
pay all interest thereon at the rates provided herein and all other Obligations
with respect to such Loans under this Financing Agreement shall be irrevocable,
absolute and unconditional under any and all circumstances and shall be evidenced
by promissory notes substantially in the form of Exhibit B-1
(individually, a “Note” and, collectively, the “Notes”), each
payable to the order of such Lender and in the principal amount of such Lender’s
Proportionate Share of Loans requested to be made as of the Closing Date.  Such Notes shall be duly executed by Borrower
and delivered to each Lender on or prior to the Closing Date.

 

2.2    
Letters of Credit.

 

(a)           Issuance and Availability.

 

(i)            O&M Reserve LC. 
Subject to the terms and conditions contained in this Financing
Agreement, the Issuing Bank irrevocably agrees to issue on the Closing Date,
the O&M Reserve LC for the account of Borrower and in favor of the
Administrative Agent (on behalf of the Lenders) as beneficiary in support of
O&M Costs.  The O&M Reserve LC
shall be in an initial Stated Amount equal to $2,570,000 and shall be
substantially in the form attached hereto as Exhibit O.

 

(ii)           Debt Service Reserve LC. 
Subject to the terms and conditions contained in this Financing Agreement,
Issuing Bank irrevocably agrees to issue on the Closing Date, the Debt Service
Reserve LC for the account of Borrower and in favor of the Administrative Agent
(on behalf of the Lenders) as beneficiary in support of the Debt Service
Reserve Requirement.  The Debt Service
Reserve LC shall be in an initial Stated Amount equal to $6,630,000 and shall
be substantially in the form attached hereto as Exhibit P.

 

(iii)          Energy Hedge LCs and REC Contract LCs. 
Subject to the terms and conditions contained in this Financing
Agreement, Issuing Bank 

 

4

 

irrevocably agrees
to issue, during the LC Issuance Period, one or more Energy Hedge LCs for the
account of Borrower and in favor of the applicable counterparty under the
applicable Energy Hedge and one or more REC Contract LCs for the account of
Borrower and in favor of the applicable counterparty under the applicable REC
Contract.  Each Energy Hedge LC shall be
substantially in the form attached hereto as Exhibit Q-1.  Each REC Contract LC shall be substantially
in the form attached hereto as Exhibit Q-2.

 

(iv)          Working Capital LCs. 
Subject to the terms and conditions contained in this Financing
Agreement, Issuing Bank irrevocably agrees to issue, during the LC Issuance
Period, one or more Working Capital LCs for the account of Borrower and in
favor of the applicable counterparty under the applicable Project
Documents.  Each Working Capital LC shall
be substantially in the form attached hereto as Exhibit R.

 

(b)           Letter of Credit Commitments and
Adjustments.

 

(i)            The Total LC Commitment shall be a
separate revolving working capital facility provided by Issuing Bank and its
participants and permitted assignees pursuant to Sections 12.14 and 12.15
of the Financing Agreement, respectively, as Lender in respect of any LC Loans,
and the issuance of the Letters of Credit shall be deemed to reduce, in an
amount equal to the aggregate Stated Amount of such Letters of Credit, the
Available LC Commitment.

 

(ii)           Any Drawing Payment with respect to the
O&M Reserve LC shall reduce the available Stated Amount thereof pursuant to
this Financing Agreement and the Total LC Commitment applicable thereto shall
be reduced, each in an amount equal to such Drawing Payment.  Any Drawing Payment with respect to the Debt
Service Reserve LC shall reduce the available Stated Amount thereof pursuant to
this Financing Agreement and the Total LC Commitment applicable thereto shall
be reduced, each in an amount equal to such Drawing Payment.  Any Drawing Payment with respect to any Hedge
LC shall reduce the available Stated Amount thereof pursuant to this Financing
Agreement and the Total LC Commitment applicable thereto shall be reduced, each
in an amount equal to such Drawing Payment. 
Any Drawing Payment with respect to any Working Capital LC shall reduce
the available Stated Amount thereof pursuant to this Financing Agreement and
the Total LC Commitment applicable thereto shall be reduced, each in an amount
equal to such Drawing Payment.

 

(iii)          Subject to Section 2.2(b)(iv),
the Stated Amount of any Letter of Credit may, upon request by Borrower
pursuant to Section 2.2(c), be reinstated to its original Stated
Amount; provided, that (A) the applicable Reimbursement Obligation
or LC Loan is paid in full; (B) no Inchoate Default or Event of Default
has occurred and is continuing; (C) each 

 

5

 

representation and
warranty set forth in Article 6 shall be true and correct in all
material respects as of such date (unless such representation or warranty
relates solely to an earlier date, in which case it shall have been true and
correct in all material respects as of such earlier date); and (D) all
applicable terms and conditions set forth in the applicable Letter of Credit
are satisfied in accordance therewith.

 

(iv)          Notwithstanding anything to the contrary
provided in this Financing Agreement, the sum of the Stated Amounts of any
Letters of Credit issued, or requested but not yet issued, hereunder at any
time, any Reimbursement Obligations remaining unpaid at any time and LC Loans
outstanding at any time shall not exceed the Total LC Commitment.

 

(c)           Notice of LC Activity. Subject to the terms and conditions
contained in this Financing Agreement (including the satisfaction of the
requirements in Section 2.2(b)) and so long as no Inchoate Default
or Event of Default has occurred and is continuing, Borrower shall request (x) the
issuance or extension of any Letter of Credit, or (y) any reinstatement,
increase or decrease in the Stated Amount thereof, in each case, by delivering
to Administrative Agent and Issuing Bank an irrevocable written notice in the
form of Exhibit S, appropriately completed (a “Notice of LC
Activity”), which specifies, among other things:

 

(i)            the particulars of any Letters of Credit
to be issued, extended or amended, including the then-current Stated Amount of
such Letters of Credit (which shall not exceed the then Available LC Commitment
applicable to such Letters of Credit); and

 

(ii)           with respect to any Hedge LC or Working
Capital LC, if a reinstatement, increase or decrease to the Stated Amount of
such Letter of Credit is requested, the amount by which such Stated Amount is
to be reinstated, increased or decreased, as applicable.

 

In the case of any Hedge LC or Working
Capital LC, Borrower shall deliver the Notice of LC Activity to Administrative
Agent (with a copy to Issuing Bank) at least five (5) Business Days before
the date of issuance, reinstatement, increase or decrease of the Stated Amount
of such Letter of Credit.  Upon the
adjustment date specified in such Notice of LC Activity, subject to the terms
and conditions set forth in this Financing Agreement, Issuing Bank shall, by
amendment or adjustment to the Letter of Credit, adjust the Stated Amount
thereof to reflect the change specified in such Notice of LC Activity.  From the effective date of any such
adjustment, the LC Fees payable pursuant to Section 3.3(e) shall
be computed on the basis of the Stated Amount as so adjusted.

 

(d)           Drawings; LC Loans.

 

(i)            Drawings.  Subject to
the terms and conditions of this Financing Agreement, each Lender in respect of
the LC Loans, and its participants and permitted assignees pursuant to Sections
12.14 and 12.15 of the 

 

6

 

Financing
Agreement, respectively, severally agrees to advance to Issuing Bank, for the
account of Borrower, such Lender’s Proportionate Share of the full amount of
any Drawing Payment under any Letter of Credit. 
Upon the making of any Drawing Payment, Borrower shall be obligated to
reimburse Issuing Bank for such Drawing Payment as provided below.

 

(ii)           Lender Participation. 
Upon a Drawing Payment on any Letter of Credit, each Lender in respect
of the LC Loans, and its participants and permitted assignees pursuant to Sections
12.14 and 12.15 of the Financing Agreement, respectively, hereby
severally agrees that it shall forthwith purchase from Issuing Bank a
participation interest in the unreimbursed Drawing Payment made by Issuing Bank
under such Letter of Credit, in an amount equal to such Lender’s Proportionate
Share of such unreimbursed Drawing Payment.

 

(iii)          Reimbursement of O&M Reserve LC.

 

Borrower hereby agrees to
repay any Drawing Payment and to pay all fees and interest thereon at the rates
provided herein, which obligation shall be irrevocable, absolute and
unconditional; provided, that as long as an Event of Default (other than
an Event of Default that will be cured with the proceeds of the proposed draw
on the O&M Reserve LC) has not occurred and is continuing and unless
Borrower has repaid the full amount of such Drawing Payment on the next
Business Day, the amount of such Drawing Payment shall be converted to a loan
made pursuant to this Section 2.2(d)(iii) (an “O&M Reserve
LC Loan”).  Each O&M Reserve LC
Loan, if any, shall be due and payable in full on the LC Loan Maturity
Date.  Borrower shall pay interest on the
unpaid amount of the O&M Reserve LC Loan calculated from the date of such
O&M Reserve LC Loan until such O&M Reserve LC Loan is repaid in full at
a rate per annum equal to the Base Rate plus the Applicable Base Rate Margin.

 

(iv)          Reimbursement of Debt Service Reserve LC.

 

Borrower hereby agrees to
repay any Drawing Payment and to pay all fees and interest thereon at the rates
provided herein, which obligation shall be irrevocable, absolute and
unconditional; provided, that as long as an Event of Default (other than
an Event of Default that will be cured with the proceeds of the proposed draw
on the Debt Service Reserve LC) has not occurred and is continuing and unless
Borrower has repaid the full amount of such Drawing Payment on the next
Business Day, the amount of such Drawing Payment shall be converted to a loan
made pursuant to this Section 2.2(d)(iv) (a “Debt Service
Reserve LC Loan”).  Each Debt Service
Reserve LC Loan, if any, shall be due and payable in full on the LC Loan
Maturity Date.  Borrower shall pay
interest on the unpaid amount of the Debt Service Reserve LC Loan calculated
from the date of such Debt Service Reserve LC Loan until such Debt Service
Reserve LC 

 

7

 

Loan is repaid in full at
a rate per annum equal to the Base Rate plus the Applicable Base Rate Margin.

 

(v)           Reimbursement of Hedge LC.

 

Borrower hereby agrees to
repay any Drawing Payment and to pay all fees and interest thereon at the rates
provided herein, which obligation shall be irrevocable, absolute and
unconditional; provided, that as long as an Event of Default (other than
an Event of Default that will be cured with the proceeds of the proposed draw
on the applicable Hedge LC) has not occurred and is continuing and unless
Borrower has repaid the full amount of such Drawing Payment on the next
Business Day, the amount of the applicable Drawing Payment in respect of any
Hedge LC shall be converted to a loan made pursuant to this Section 2.2(d)(v) (a
“Hedge LC Loan”).  Each Hedge LC
Loan, if any, shall be due and payable in full on the LC Loan Maturity
Date.  Borrower shall pay interest on the
unpaid amount of each Hedge LC Loan calculated from the date of such Hedge LC
Loan until such Hedge LC Loan is repaid in full at a rate per annum equal to
the Base Rate plus the Applicable Base Rate Margin.

 

(vi)          Reimbursement of Working Capital LC.

 

Borrower hereby agrees to
repay any Drawing Payment and to pay all fees and interest thereon at the rates
provided herein, which obligation shall be irrevocable, absolute and
unconditional; provided, that as long as an Event of Default (other than
an Event of Default that will be cured with the proceeds of the proposed draw
on the applicable Working Capital LC) has not occurred and is continuing and
unless Borrower has repaid the full amount of such Drawing Payment on the next
Business Day, the amount of the applicable Drawing Payment in respect of any
Working Capital LC shall be converted to a loan made pursuant to this Section 2.2(d)(vi) (a
“Working Capital LC Loan”).  Each
Working Capital LC Loan, if any, shall be due and payable in full on the LC
Loan Maturity Date.  Borrower shall pay
interest on the unpaid amount of each Working Capital LC Loan calculated from
the date of such Working Capital LC Loan until such Working Capital LC Loan is
repaid in full at a rate per annum equal to the Base Rate plus the Applicable
Base Rate Margin.

 

(vii)         Interim Interest. 
Without limiting the Borrower’s obligation to reimburse Drawing Payments
pursuant to this Section 2.2(d), if the Issuing Bank makes any
Drawing Payment, then, unless the Borrower reimburses that Drawing Payment in
full on the date that such Drawing Payment is made, the unreimbursed amount of
that Drawing Payment shall bear interest, for each day from and including the
date that such Drawing Payment is made to but excluding the date that the
Borrower reimburses that Drawing Payment at the rate per annum equal to the
Base Rate in effect during such period plus the Applicable Base Rate
Margin.

 

8

 

(e)           Adjustments to Stated Amount;
Cancellation.

 

(i)            Adjustments to Stated Amount. 
The Stated Amount of each Letter of Credit (i) shall be adjusted as
provided in Section 2.2(b) and (ii) may be adjusted as
provided in Section 2.2(c).

 

(ii)           Cancellation Upon Acceleration. 
At such time as, pursuant to the terms hereof, Administrative Agent and
the Lenders have accelerated the Obligations and unless Borrower has provided
Issuing Bank with cash collateral on terms and conditions reasonably
satisfactory to Issuing Bank in an amount equal to 103%  of
the Stated Amount of each Letter of Credit then outstanding and all
Reimbursement Obligations of Borrower then outstanding, Issuing Bank shall be
entitled to cancel each Letter of Credit at any time at least thirty
(30) days after delivery to Administrative Agent, the beneficiary of such
Letter of Credit and Borrower of a written notice of such intent to cancel.

 

(iii)          Expiration.  The Letters
of Credit shall expire on their respective Expiration Dates which shall in no
event be later than the LC Loan Maturity Date, or on such earlier date if
terminated pursuant to the terms of this Financing Agreement or the applicable
Letter of Credit.

 

(iv)          Lender Participation. 
The several obligations of (x) each Lender, and its participants
and permitted assignees pursuant to Sections 12.14 and 12.15 of
the Financing Agreement, who have purchased a participation in the Letters of
Credit in such Lender’s Proportionate Share of the maximum amount which is or
at any time may become available to be drawn thereunder, and (y) each
Lender, and its participants and permitted assignees pursuant to Sections
12.14 and 12.15 of the Financing Agreement, to make LC Loans in
accordance with Section 2.2(d) shall be absolute, irrevocable
and unconditional under any and all circumstances whatsoever and shall not be
affected by any circumstance, including, without limitation, (A) any
set-off, counterclaim, recoupment, defense or other right which any such Lender
or any other Person may have against the Administrative Agent, the Issuing
Bank, the Borrower or any other Person for any reason whatsoever; (B) the
occurrence or continuance of a Default, an Event of Default or the termination
of the Commitments, the acceleration of the Term Loans, Bridge Loans or the
termination of such Letter of Credit; (C) any adverse change in the
condition (financial or otherwise) of the Borrower or any other Person; (D) any
breach of any Financing Document by any party thereto; (E) the fact that
any condition precedent to (1) the issuance of, or the making of any
payment under, such Letter of Credit or (2) the making of LC Loans, was
not met; (F) any violation or asserted violation of law by any Lender or
any Affiliate thereof; or (G) to the extent permitted under applicable
law, any other circumstance, happening or event whatsoever, whether or not
similar to any of the foregoing. 
Immediately upon the issuance of any Letter of 

 

9

 

Credit, Issuing
Bank shall be deemed to have sold and transferred to such Lender, and such
Lender shall be deemed to have purchased and received from Issuing Bank, in
each case irrevocably and without any further action by any party, an undivided
interest and participation in the Letter of Credit, each Drawing and the other
obligations in respect thereof in an amount equal to such Lender’s
Proportionate Share referenced above. 
Each payment by each such Lender or other Person to the Issuing Bank for
its own account shall be made without any offset, abatement, withholding or
reduction whatsoever.  If the Issuing
Bank is required at any time to return to the Borrower or to a trustee,
receiver, liquidator, custodian or other similar official any portion of the
payments made by the Borrower to such Issuing Bank in payment of any
Reimbursement Obligation or interest thereon upon the insolvency of the
Borrower, or the commencement of any case or proceeding under any bankruptcy,
insolvency or other similar law with respect to the Borrower, each applicable
Lender or other Person shall, on demand of the Issuing Bank, forthwith return
to the Issuing Bank any amounts transferred to such Lender or other Person by
the Issuing Bank in respect thereof pursuant to this subsection plus such Lender’s or other Person’s pro
rata share of any interest on such payments required to be paid to the Person
recovering such payments plus
interest on the amount so demanded from the day such demand is made, if such
demand is made by 2:00 p.m., New York time, or from the next following
Business Day, if such demand is made after 2:00 p.m., New York time, to
but not including the day such amounts are returned by such Lender or other
Person to the Issuing Bank at a rate per annum for each day equal to (A) the
Federal Funds Effective Rate for the day of such demand and (B) the Federal
Funds Effective Rate plus 3.00% for each day thereafter.

 

(v)           Draw Procedures. 
Issuing Bank shall require each Lender in respect of the LC Loans, and
its participants and permitted assignees pursuant to Sections 12.14 and 12.15
of the Financing Agreement, respectively, to severally pay to Issuing Bank its
respective Proportionate Share of all or any portion of any Drawing Payment
made or to be made by Issuing Bank under any Letter of Credit by contacting
Administrative Agent telephonically (promptly confirmed in writing) at any time
after Issuing Bank has received notice of or request for such Drawing, and
specifying the amount of such Drawing, such Lender’s Proportionate Share
thereof, and the date on which such Drawing is to be made or was made and
Administrative Agent shall promptly notify each Lender thereof; provided,
however, that Issuing Bank shall not request such Lenders to make any
payment in connection with any portion of a Drawing for which Issuing Bank has
received a Reimbursement Payment from Borrower. 
Upon receipt of any such request for payment from Issuing Bank, such
Lender shall pay to Issuing Bank such Lender’s Proportionate Share of the
unreimbursed portion of such Drawing, together with interest thereon at a per
annum rate equal to the Federal Funds Effective Rate from the date of 

 

10

 

such Drawing to
the date on which such Lender makes payment. 
Such Lender’s obligation to make each such payment to Issuing Bank shall
be absolute, unconditional and irrevocable, and shall not be affected by any
circumstance whatsoever, including the occurrence or continuance of any
Inchoate Default or Event of Default, or the failure of any other Lender to
make any payment hereunder, and such Lender further agrees that each such
payment shall be made without any offset, abatement, withholding or reduction
whatsoever.  In the event that any
Lender fails to make available to Issuing Bank the amount of its Proportionate
Share in such LC Loan, Issuing Bank shall be entitled to recover such amount on
demand from such Lender together with interest thereon at the Federal Funds
Effective Rate plus 3.00% (without any right to indemnification by such Lender
from Borrower in respect of such interest). 
If any
Reimbursement Payment is made by Borrower to Issuing Bank, Issuing Bank shall
pay to such Lender which has paid its Proportionate Share of the Drawing such
Lender’s Proportionate Share of the Reimbursement Payment and then retain the
balance of such Reimbursement Payment.

 

(f)            Commercial Practices. 
Borrower agrees that none of Issuing Bank, Administrative Agent, nor any
Lender (nor any of their respective directors, officers or employees) shall be
liable or responsible for, and the Reimbursement Obligations of Borrower and
Borrower’s obligations to repay the O&M Reserve LC Loan, Debt Service
Reserve LC Loan, Hedge LC Loans and the Working Capital LC Loans pursuant to
the terms of this Financing Agreement shall be absolute, unconditional and
irrevocable, and shall be performed strictly in accordance with the terms of
this Financing Agreement regardless of (i) the use of any Letter of Credit
or for any acts or omissions of any beneficiary or transferee in connection
therewith; (ii) payment by Issuing Bank against presentation of documents
which do not strictly comply with the terms of any Letter of Credit, including
failure of any documents to bear any reference or adequate reference to such
Letter of Credit so long as such documents substantially comply with the terms
of such Letter of Credit and Issuing Bank has not acted with gross negligence
or willful misconduct; (iii) any amendment or waiver of or any consent to
departure from all or any terms of any of the Financing Documents agreed by
Borrower; (iv) the existence of any claim, setoff, defense or other right
which Borrower may have at any time against any beneficiary or transferee of
any Letter of Credit (or any Persons for whom any such beneficiary or
transferee may be acting), Administrative Agent, Issuing Bank, any Lender or any
other Person, whether in connection with this Financing Agreement, the
transactions contemplated herein or in the other Financing Documents, or in any
unrelated transaction; (v) any demand, statement, certificate, draft or
other document presented under any Letter of Credit proving to be forged,
fraudulent, invalid or insufficient in any respect or any statement therein
being untrue or inaccurate in any respect; (vi) any extension of time for
or delay, renewal or compromise of or other indulgence or modification to the
Drawing Payment granted or agreed to by Administrative Agent, Issuing Bank or
any Lender; (vii) any failure of the relevant Project Document under which
the relevant Letter of Credit is issued or 

 

11

 

any other
Operative Document to be in full force and effect, (viii) any failure to
perfect or preserve the perfection of any Lien thereon, or the release of any
of the Collateral securing the performance or observance of the terms of this
Financing Agreement or any of the other Financing Documents, or (ix) any
other circumstances whatsoever in making or failing to make payment under any
Letter of Credit, except, in each case, that Issuing Bank shall be liable to
Borrower for acts or events described in clauses (i) through (ix) above
to the extent suffered by Borrower which Borrower provides evidence that such
acts or events were caused by (A) Issuing Bank’s willful misconduct or
gross negligence in determining whether a drawing made under any Letter of
Credit complies with the terms and conditions stated therein or (B) Issuing
Bank’s willful failure to pay under any Letter of Credit after a drawing by the
beneficiary strictly complying with the terms and conditions stated
therein.  Without limiting the foregoing,
Issuing Bank may accept any document that appears on its face to be in order,
without responsibility for further investigation.  Borrower hereby waives any right to object to
any payment made under any Letter of Credit with regard to a drawing that is in
the form provided in such Letter of Credit but which varies with respect to
punctuation (except punctuation with respect to any Dollar amount specified
therein), capitalization, spelling or similar administrative matters of form
that do not change meaning.

 

(g)           On the earlier of (i) the day when
each Letter of Credit expires by its terms and (ii) the LC Loan Maturity
Date, Borrower shall cause each Letter of Credit to be irrevocably terminated
by the beneficiary thereof (pursuant to documentation acceptable to the Issuing
Bank) and surrendered to the Issuing Bank for cancellation.

 

2.3    
Use of Loan Proceeds.

 

Borrower
shall use the proceeds of the Loans solely for the purposes and in the order
and manner provided in Section 7.1.

 

2.4    
Total Commitment.

 

(a)           Working Capital Letters of Credit. 
The sum of the maximum aggregate Stated Amount of all Letters of Credit
outstanding at any time, the Stated Amount of any requested but not yet issued
Letters of Credit, any Reimbursement Obligations remaining unpaid at any time
and LC Loans outstanding at any time shall not exceed $26,700,000 (such amount,
as reduced from time to time, the “Total LC Commitment”).  The maximum Stated Amount of the O&M
Reserve LC outstanding and the Stated Amount of any requested but not yet
issued O&M Reserve LC at any time shall not exceed $2,570,000.  The maximum Stated Amount of the Debt
Service Reserve LC outstanding at any time and the Stated Amount of any
requested but not yet issued Debt Service Reserve LC shall not exceed
$6,630,000.  The maximum Stated Amount of
all Hedge LCs outstanding at any time shall not exceed $16,500,000.  The maximum Stated Amount of all Working
Capital LCs outstanding at any time shall not exceed $1,000,000.

 

12

 

(b)           Term Loans.  The Total
Term Loan Commitment on the Closing Date is $71,000,000.

 

(c)           Bridge Loans. 
The Total Bridge Loan Commitment on the Closing Date is $18,632,891.16.

 

(d)           Total Commitment. 
The Total Commitment on the Closing Date is $116,332,891.16.  The Total Commitment shall terminate without
any further action from Borrower, the Agents and the Lenders upon the
disbursement of Term Loans and the Bridge Loans, and the issuance of Letters of
Credit in the amount of the Total Commitment pursuant to Section 2.1
and Section 2.2, as applicable. 
Borrower may from time to time upon two (2) Business Days notice to
Administrative Agent, permanently reduce (without premium or penalty), by an
amount of $500,000 or integral multiples of $100,000 in excess thereof or
cancel in its entirety the Total LC Commitment, the Total Term Loan Commitment
or the Total Bridge Loan Commitment.

 

2.5     Notice of Borrowing of
Loans.

 

Borrower
shall request the Term Loans and Bridge Loans by delivering to Administrative
Agent an initial irrevocable written notice in the form of Exhibit D-4
(the “Notice of Borrowing”). 
Borrower shall give the Notice of Borrowing to Administrative Agent not
later than 12:00 p.m., New York time, at least three (3) Business
Days before the proposed Borrowing (or as otherwise agreed among Administrative
Agent, the Lenders and Borrower).

 

2.6    
Defaulting Lenders.

 

Notwithstanding any provision of this
Financing Agreement to the contrary, if any Lender becomes a Defaulting Lender,
then the following provisions shall apply for so long as such lender is a
Defaulting Lender:

 

(a)           fees shall cease to accrue on the
unfunded portion of the Commitment of such Defaulting Lender pursuant to Section 3.3;

 

(b)           the Commitment of such Defaulting Lender
shall not be included in determining whether all Lenders or the Required
Lenders have taken or may take any action hereunder (including any consent to
any amendment or waiver); provided, that any waiver, amendment or
modification requiring the consent of all Lenders or each affected Lender which
affects such Defaulting Lender differently than other affected Lenders shall
require the consent of such Defaulting Lender;

 

(c)           if any LC Exposure exists at the time a
Lender with an LC Commitment and/or LC Loan becomes a Defaulting Lender then:

 

(i)            all or any part of such LC Exposure shall
be reallocated among the non-Defaulting Lenders in accordance with their
respective Proportionate Share but only to the extent the sum of all
non-Defaulting Lenders LC 

 

13

 

Exposure plus such
Defaulting Lender’s LC Exposure does not exceed the total of all non-Defaulting
Lenders’ Commitments;

 

(ii)           if the reallocation described in clause (i) above
cannot, or can only partially, be effected, the Borrower shall, within one (1) Business
Day following notice by the Administrative Agent, cash collateralize such
defaulting Lender’s LC Exposure (after giving effect to any partial
reallocation pursuant to clause (i) above) in accordance with the
procedures set forth in Section 2.2(e) for so long as such LC
Exposure is outstanding;

 

(iii)          if the Borrower cash collateralizes any
portion of such Defaulting Lender’s LC Exposure pursuant to this Section 2.6(c),
the Borrower shall not be required to pay any fees to such Defaulting Lender
pursuant to Section 3.3(e) with respect to such Defaulting
Lender’s LC Exposure during the period such Defaulting Lender’s LC Exposure is
cash collateralized;

 

(iv)          if the LC Exposure of the non-Defaulting
Lenders is reallocated pursuant to this Section 2.6(c), then the
fees payable to the Lenders pursuant to Section 3.3(e) shall
be adjusted in accordance with each such non-Defaulting Lender’s Proportionate
Share; and

 

(v)           if any Defaulting Lender’s LC Exposure is
neither cash collateralized nor reallocated pursuant to this Section 2.6,
then, without prejudice to any rights or remedies of the Issuing Bank or any
Lender hereunder, all participation fees payable under Section 3.3
with respect to such Defaulting Lender’s LC Exposure shall be payable to the
Issuing Bank until such LC Exposure is cash collateralized and/or reallocated.

 

(d)           so long as any Lender with an LC
Commitment and/or LC Loan is a Defaulting Lender, the Issuing Bank shall not be
required to issue, amend, renew or extend any Letter of Credit, unless it is
satisfied that the related LC Exposure will be 100% covered by the LC
Commitments of the non-Defaulting Lenders and/or cash collateral will be
provided by the Borrower in accordance with this Section 2.6;

 

(e)           any amount payable to such Defaulting
Lender hereunder (whether on account of principal, interest, fees or otherwise
and including any amount that would otherwise be payable to such Defaulting
Lender shall, in lieu of being distributed to such Defaulting Lender, be
retained by the Administrative Agent in a segregated account and, subject to
any applicable requirements of law, be applied at such time or times as may be
determined by the Administrative Agent (i) first, to the payments of any
amounts owing by such Defaulting Lender to the Administrative Agent hereunder, (ii) second
to the payment of any amounts owing by such Defaulting Lender to the Issuing
Bank hereunder, (iii) third, to the funding of any Loan or the funding or
cash collateralization of any participating 

 

14

 

interest in any
Letter of Credit in respect of which such Defaulting Lender has failed to fund
its portion thereof as required by this Agreement, as determined by the
Administrative Agent, (iv) fourth, if so determined by the Administrative
Agent and the Borrower, held in such account as cash collateral for future
funding obligations of any Defaulting Lender under this Agreement, (v) fifth,
pro rata, to the payment of any amounts owing to the Borrower or any Lender as
a result of any judgment of a court of competent jurisdiction obtained by the
Borrower or any Lender against such Defaulting Lender as a result of such
Defaulting Lender’s breach of its obligations under this Agreement and (vi) sixth,
to such Defaulting Lender’s or as otherwise directed by a court of competent
jurisdiction; provided, that if such payment is a prepayment of the principal
amount of any Loans or Reimbursement Obligations in respect of Drawing Payments
which a Defaulting Lender has funded in accordance with its participation
obligations, such payment shall be applied solely to prepay the Loans of, and
Reimbursement Obligations owed to, all non-Defaulting Lenders pro rata prior to
being applied to the prepayment of any Loans, or Reimbursement Obligations owed
to, any Defaulting Lender; and

 

(f)            so long as any Lender with an LC
Commitment and/or LC Loan is a Defaulting Lender for longer than thirty (30)
days, the Issuing Bank may resign by giving thirty (30) days’ written notice
thereof to the Lenders and Borrower, such resignation to be effective only upon
the acceptance of a successor Issuing Bank (reasonably satisfactory to the
Majority Lenders who are non-Defaulting Lenders and the Borrower) and the
replacement of all Letters of Credit issued hereunder (and the parties have
executed in conjunction therewith all necessary documentation).

 

In the
event that the Administrative. Agent, the Borrower and the Issuing Bank each
agrees that a Defaulting Lender has adequately remedied all maters that caused
such Lender to be a Defaulting Lender, then the LC Exposure of the Lenders
shall be readjusted to reflect the inclusion of such Lender’s Commitment and on
such date such Lender shall purchase at par such of the Loans of the other
Lenders as the Administrative Agent shall determine may necessary in order for
such Lender to hold such Loans in accordance with its Proportionate Share.

 

ARTICLE 3.

GENERAL
PROVISIONS RELATED TO CREDIT FACILITIES

 

3.1    
Loan Funding.

 

(a)           Notice.  The Notice of
Borrowing and each Confirmation of Interest Period Selection shall be delivered
to Administrative Agent in accordance with Section 14.1.  Administrative Agent shall promptly notify
each Lender of the contents of such notices.

 

15

 

(b)           Pro Rata Loans. 
All Loans shall be made on a pro rata basis
by the Lenders in accordance with their respective Proportionate Shares of such
Loans, with the Borrowing of Loans to be comprised of the applicable Loan by
each Lender equal to such Lender’s Proportionate Share of the Borrowing.

 

(c)           Lender Funding. 
No later than 11:00 a.m., New York time, on the proposed date set
forth in the Notice of Borrowing subject to the satisfaction of the conditions
precedent set forth in Section 5.1, each Lender shall make
available its Term Loans and/or Bridge Loans, as applicable, requested in each
Notice of Borrowing in Dollars in immediately available funds by transferring
such funds into the Disbursement Account; provided, that, in connection with
the initial Notice of Borrowing delivered in connection with the Closing Date,
each Lender shall make available its Term Loans and/or Bridge Loans, as
applicable, by transferring such funds into an account designated by the Administrative
Agent.  The failure of any Lender to make
the Term Loan and/or Bridge Loan, as applicable, to be made by it as part of
any Borrowing shall not relieve any other Lender of its obligation hereunder to
make its Term Loan and/or Bridge Loan, as applicable.  No Lender shall have any obligation or
liability in respect of the failure of any other Lender to make the Term Loan
and/or Bridge Loan, as applicable, to be made by it as part of any Borrowing
made under this Financing Agreement.

 

(d)           Disbursement of Funds. 
Funds in the Disbursement Account shall be disbursed in accordance with Section 6(a) of
the Account Control Agreement.  No Agent
shall have any obligation or liability in respect of any disbursement of the
Loans to the extent funds in respect of such disbursements are not received
from the Lenders in accordance with Section 3.1(c).  Funds in all other Collateral Accounts shall
be disbursed in accordance with Article 9 of the Financing
Agreement and the Account Control Agreement.

 

3.2    
Prepayments.

 

Loans, subject to the terms and conditions of this Financing
Agreement, are prepayable in accordance with the following terms:

 

(a)           Terms of All Prepayments. 
Upon the prepayment of any Loan (whether such prepayment is an Optional
Prepayment or a Mandatory Prepayment), Borrower shall pay to Administrative
Agent for the account of each Lender owed such Loan, as applicable, (A) all
accrued interest to the date of such prepayment on the amount prepaid; (B) all
accrued fees, if any, to the date of such prepayment corresponding to the
amount being prepaid; (C) if such prepayment is the prepayment of a Loan
on a day other than the last day of an Interest Period for such Loan, all
Liquidation Costs, if any, incurred by such Lender as a result of such prepayment;
and (D) if such prepayment is a prepayment of the Fixed Portion resulting
in an early termination of an Interest Rate Agreement, the Interest Fix Fees,
with respect to such prepayment, if applicable. 
All Mandatory Prepayments and Optional Prepayments shall be applied to
reduce the remaining 

 

16

 

Scheduled
Repayment Amounts in the inverse order of maturity of the Loan then
outstanding.  Loans prepaid may not be
re-borrowed.

 

(b)           Optional Prepayments. 
Subject to Section 3.2(a), Borrower may, at its option upon
five (5) Business Days’ irrevocable notice to Administrative Agent, prepay
(i) any Term Loans or Bridge Loans in whole or in part in a minimum amount
of $1,000,000, or (ii) any Term Loans pursuant to the Stetson II
Prepayment.  Each such notice of Optional
Prepayment shall specify such date, the aggregate principal amount of the Term
Loans or Bridge Loans, as applicable, to be prepaid on such date and the interest
to be paid on the prepayment date with respect to such principal amount being
prepaid, and shall be accompanied by a certificate of Borrower as to the
estimated Liquidation Costs (if any) and Interest Fix Fees (if any) due in
connection with such Optional Prepayment (calculated as if the date of such
notice were the date of the Optional Prepayment) setting forth the details of
such computation.  Within two (2) Business
Days after the date of such Optional Prepayment, Administrative Agent shall
deliver to Borrower and each applicable Lender a certificate of Administrative
Agent confirming the calculation of such Liquidation Costs (if any) or Interest
Fix Fees (if any) as of the specified prepayment date.  Borrower may make an Optional Prepayment with
respect to all Term Loans or Bridge Loans then outstanding at any time, without
any premium or penalty, except for Liquidation Costs or Interest Fix Fees, if
any.

 

(c)           Mandatory Prepayments. 
Subject to Section 3.2(a), Borrower shall prepay: (i) within
seven (7) Business Days after the Closing Date an amount equal to
$3,000,000 with respect to the Term Loans, which amount shall be paid from
amounts on deposit in the Stetson I Holding Account, (ii) on the date that
is earlier to occur of (A) the achievement of Final Completion (as defined
in the Stetson II Reed Agreement) and (B) the date of submission of the
Government Grant application in respect of the Stetson II Project, an amount
equal to the difference between $18,632,891.16 and the aggregate amount of paid
construction costs that constitute the eligible basis for the Government Grant
pursuant to Section 1603 of the American Recovery and Reinvestment Act of
2009 (as determined by the Administrative Agent in consultation with the
Independent Engineer), which amount shall be applied as a prepayment of Bridge
Loans, (iii) the Loans in an amount required in respect of an Upwind Array
Event pursuant to Section 7.27, (iv) the Loans in an amount
equal to the lesser of (A) 100% of Excess Cash and (B) the amount
required pursuant to Section 7.28, and (v) to the extent
otherwise provided by the terms of this Financing Agreement, including pursuant
to Section 6 of the Account Control Agreement.

 

(d)           Pro Rata Treatment of Lenders. 
Except as expressly set forth in this Section 3.2(d), all
prepayments of Loans shall be applied among the Lenders pro rata,
according to their respective Proportionate Shares of Loans at the time of the
applicable prepayment.  Prepayments of
Loans in accordance with Section 3.6(a) and Section 3.6(b) shall
be applied in accordance with the requirements set forth in those Sections.

 

17

 

(e)           Funding of Prepayment Costs. 
Borrower shall fund Optional Prepayments solely from Borrower
Equity.  Except as otherwise provided in
this Financing Agreement or the Account Control Agreement, all Mandatory
Prepayments shall be funded pursuant to Section 6(b) of the Account
Control Agreement.

 

(f)            Prepayment or Reduction of Interest Rate
Agreements.  Any amount being prepaid in respect of the
Term Loans and/or Bridge Loans under this Financing Agreement (except for
prepayments under Sections 3.6(a) and 3.6(b)) may, at
the option of Borrower (i) be first applied to the Floating Portion and
then to the Fixed Portion or (ii) may be applied to the Floating Portion
and the Fixed Portion on a pro rata
basis.  Any prepayment of the Fixed
Portion of the Term Loans under this Financing Agreement shall be accompanied
by a concurrent reduction or prepayment by Borrower of its exposure and
obligations under the Interest Rate Agreements then in effect as provided in Section 3.9(b).

 

3.3    
Fees.

 

(a)           Structuring Fees. 
On the Closing Date, Borrower shall pay to the Joint Lead Arrangers
solely for each Joint Lead Arranger’s account the structuring fees in the
amount set forth in the Lender Fee Side Agreement.

 

(b)           Annual Agency Fee. 
Borrower shall pay to Administrative Agent on the Closing Date, solely
for the account of Administrative Agent, an administrative agency fee payable
in advance in an amount set forth in the Agency Fee Side Agreement.

 

(c)           Securities Intermediary Fees. 
Borrower shall pay to the Securities Intermediary on the Closing Date,
solely for the account of the Securities Intermediary, a fee in the amount and
on terms and conditions set forth in the Account Control Agreement.

 

(d)           Commitment Fees.

 

(i)            On each Payment Date during the
Availability Period (where all or any portion of such semi-annual period occurs
on or after the Closing Date)and on the last day of the Availability Period,
Borrower shall pay to Administrative Agent, for the benefit of the Lenders,
accruing from the Closing Date or the first day of such Payment Date, as the
case may be, Term Loan commitment fees (the “Term Loan Commitment Fees”)
for such period (or portion thereof) then ending equal to the product of (x) 1.00%
times (y) the daily
average Total Term Loan Commitment for such semi-annual period (or portion
thereof) times (z) a
fraction, the numerator of which is the number of days in such period (or
portion thereof) and the denominator of which is 360.

 

(ii)           On each Payment Date during the
Availability Period (where all or any portion of such semi-annual period occurs
on or after the Closing Date) and on the Bridge Loan Maturity Date, Borrower
shall pay to Administrative Agent, for the benefit of the Lenders, accruing
from the 

 

18

 

Closing Date or
the first day of such Payment Date, as the case may be, Bridge Loan commitment
fees (the “Bridge Loan Commitment Fees”) for such period (or portion
thereof) then ending equal to the product of (x) 1.00% times (y) the daily average
Bridge Loan Commitment for such semi-annual period (or portion thereof) times (z) a fraction, the
numerator of which is the number of days in such period (or portion thereof)
and the denominator of which is 360.

 

(e)           Letter of Credit Fees.

 

(i)            With respect to any portion of the
Available LC Commitment that has not been cancelled, reduced or utilized by the
issuance of the Letters of Credit, on each Payment Date commencing from the
Closing Date and ending on the LC Loan Maturity Date and on any date on which a
Letter of Credit is issued, Borrower shall pay to Administrative Agent, for the
benefit of the Issuing Bank and the Lenders, accruing from the Closing Date or
the first day of such semi-annual period, as the case may be, a commitment fee
(the “LC Commitment Fee”) for such six (6) month period (or portion
thereof) then ending equal to the product of (i) 1.00% times (ii) the
daily average Available LC Commitment for such six (6) month period (or
portion thereof) times (iii) a fraction, the numerator of which is the
number of days in such six (6) month period (or portion thereof) and the
denominator of which is 360.

 

(ii)           Upon the issuance of any Letter of Credit,
on each Payment Date prior to the Expiration Date of such Letter of Credit
(where all or any portion of such six (6) month period occurs on or after
the date of such issuance) and on the date of such Expiration Date when such
Letter of Credit is returned to the Issuing Bank for cancellation (or, if such
Letter of Credit is reduced or canceled prior to such date, on the date of such
reduction or cancellation), Borrower shall pay to Administrative Agent, for the
benefit of the Issuing Bank and the Lenders, accruing from the date of such
issuance, a letter of credit fee (the “Letter of Credit Fee”) for such
six (6) month period (or portion thereof) then ending equal to the product
of (A) the Applicable Margin times (B) the daily average Stated
Amount of such Letter of Credit for such six (6) month period (or portion
thereof) times (C) a fraction, the numerator of which is the number of
days in such six (6) month period (or portion thereof) and the denominator
of which is 360.

 

(iii)          As a condition precedent to the issuance
of each Letter of Credit, Borrower shall pay to the Administrative Agent for
the account of the Issuing Bank, an upfront letter of credit fee (the “LC
Fronting Fee”) in the amount set forth in the Lender Fee Side Agreement.

 

19

 

3.4    
Other Payment Terms.

 

(a)           Place and Manner. 
Borrower shall make all payments due to each Lender, Issuing Bank and
Administrative Agent hereunder to the Administrative Agent Account for the
account of each Lender, Issuing Bank or Administrative Agent (as the case may
be) in Dollars and in immediately available funds not later than 12:00 p.m.,
New York time, on the date on which such payment is due.  Any payment made after such time on any day
shall be deemed received on the next Business Day after such payment is
received.  Upon receipt of any payment
hereunder on behalf of any Lender or the Issuing Bank, as applicable,
Administrative Agent shall remit such payment to such Lender or Issuing Bank,
as applicable, no later than 3:00 p.m., New York time, on the date of
receipt if received prior to 12:30 p.m., New York time, on such day, or
otherwise on the next Business Day.

 

(b)           Date.  Unless
otherwise specified in this Financing Agreement, whenever any payment due hereunder
shall fall due on a day other than a Business Day, such payment shall be made
on the next succeeding Business Day, and such extension of time shall be
included in the computation of interest or fees, as the case may be.

 

(c)           Late Payments; Conversion to Base Rate
Loans.

 

(i)            If any amounts required to be paid by
Borrower under this Financing Agreement or the other Financing Documents
(including principal or interest payable on any Loan, and any fees or other
amounts otherwise payable by Borrower to Administrative Agent, Issuing Bank or
any Lender) remain unpaid after such amounts are due, subject to the applicable
cure periods, if any, set forth in Sections 10.1(a) or 10.1(d),
Borrower shall pay interest on the aggregate, outstanding balance of such amounts
from the date due until those amounts are paid in full at a per annum rate
equal to the Default Rate until the earlier of (A) the date when such
Event of Default has been cured by Borrower to the satisfaction of
Administrative Agent (acting with the consent of the Majority Lenders and the
Issuing Bank) or (B) the date when any and all Obligations of Borrower
under this Financing Agreement and all other Financing Documents have been
indefeasibly paid in full in cash and performed as required hereunder and
thereunder.

 

(ii)           Without limiting any rights or remedies
of the Agents under Article 10 or other Financing Documents, as
long as any Event of Default shall have occurred and be continuing: (A) Administrative
Agent shall suspend the continuation of any Loan (if any) on the basis of a
LIBO Rate, in which event all Loans then outstanding shall be automatically
converted on the last Business Day of the respective Interest Periods therefor
into Base Rate Loans; (B) prior to such conversion, if an Event of Default
shall have occurred and is continuing, the then outstanding LIBO Rate Loans (if
any) shall accrue interest at the LIBO Rate Default Rate that shall be due and 

 

20

 

payable on the
last Business Day of the applicable Interest Period; and (C) upon such
conversion to Base Rate Loans, the resulting Base Rate Loans shall accrue
interest at a rate per annum equal to the Base Rate Default Rate.  The interest accruing at the Base Rate
Default Rate, shall be payable on demand and/or on each Payment Date
thereafter, as applicable, commencing on the date of such conversion.  All computations of the LIBO Rate Default
Rate shall be based on a year of 360 days and the actual days elapsed
(including the first day, but excluding the last day of the applicable Interest
Period).  All computations of the Base
Rate Default Rate shall be based on a 365 day year (or 366 day year during a
leap year) with respect to the actual days elapsed when such Base Rate Default
Rate is payable.  Interest accruing at
the Base Rate Default Rate shall include the first day, but exclude the last
day of the period for which such interest is payable.

 

(d)           Net of Taxes, Etc.

 

(i)            Taxes.  Any and all
payments to or for the benefit of any Lender or the Issuing Bank by Borrower
hereunder or under any other Financing Document shall be made free and clear of
and without deduction, setoff or counterclaim of any kind whatsoever and in
such amounts as may be necessary in order that all such payments, after
deduction for or on account of liabilities of any Lender or the Issuing Bank
with respect to any present or future taxes, levies, imposts, deductions,
charges or withholdings arising from or relating to such Lender’s (or the
Issuing Bank’s) Loans made under this Financing Agreement, excluding (i) taxes
imposed on or measured by the income or capital of any Lender or the Issuing
Bank by any jurisdiction or any political subdivision or taxing authority
thereof or therein as a result of a connection between such Lender or the
Issuing Bank and such jurisdiction or political subdivision, other than a
connection resulting solely from executing, delivering or performing its
obligations or receiving a payment under, or enforcing, this Financing
Agreement or any Note, (ii) any branch profits taxes imposed by the United
States or any similar tax imposed by any other jurisdiction in which such
Lender or the Issuing Bank is located, or (iii) any withholding tax that
is imposed on amounts payable to any Lender or the Issuing Bank that is
attributable to such Lender’s or the Issuing Bank’s failure to comply with Section 3.4(e) or
to the inaccuracy of any certification made pursuant to Section 3.4(e) unless
such inaccuracy arose as the result of a change in applicable law or the
interpretation or administration thereof by any Governmental Authority after
the date such certification was made (all such non-excluded taxes, levies,
imposts, deductions, charges, withholdings and liabilities being hereinafter
referred to as “Taxes”), shall be not less than the amounts otherwise
specified to be paid under this Financing Agreement and the other Financing
Documents.  If Borrower shall be required
by law to withhold or deduct any Taxes imposed by the United States or any
political subdivision thereof from or 

 

21

 

in respect of any
sum payable hereunder or under any other Financing Document to any Lender or
the Issuing Bank, and if such Lender or the Issuing Bank shall have complied
with its obligations set forth in Section 3.4(e), (A) the sum
payable shall be increased as may be necessary so that after making all
required deductions (including deductions applicable to additional sums payable
under this Section 3.4(d)), such Lender or the Issuing Bank
receives an amount equal to the sum it would have received had no such
deductions been made; (B) Borrower shall make such deductions; and (C) Borrower
shall pay the full amount deducted to the relevant taxation authority or other
authority in accordance with applicable law. 
If Borrower shall make any payment under this Section 3.4(d) to
or for the benefit of any Lender or the Issuing Bank with respect to Taxes and
if such Lender or the Issuing Bank determines in its discretion, exercised in good
faith, that it has received the benefit of any credit or deduction for such
Taxes, then such Lender or the Issuing Bank shall pay to Borrower an amount
equal to the amount of such credit or deduction actually received by the Lender
or the Issuing Bank; provided, however, that the aggregate amount payable by such Lender or
the Issuing Bank pursuant to this sentence shall not exceed the aggregate
amount previously paid by Borrower with respect to such Taxes.  In addition, and without duplication of other
taxes or charges addressed herein, Borrower agrees to pay any present or future
stamp, recording or documentary taxes and any other excise or property taxes,
charges or similar levies that arise under the laws of the United States of
America or the State of New York from any payment made hereunder or under any
other Financing Document or from the execution or delivery or otherwise with
respect to this Financing Agreement or any other Financing Document
(hereinafter referred to as “Other Taxes”).

 

(ii)           Indemnity.  Borrower shall
indemnify each Lender and the Issuing Bank for the full amount of Taxes and
Other Taxes (including any Taxes or Other Taxes imposed by any jurisdiction on
amounts payable under this Section 3.4(d)) arising from the
execution, delivery or performance of its obligations or from receiving a
payment hereunder, or enforcing this Financing Agreement or any Financing
Document, paid by any Lender or the Issuing Bank, or any liability (including
penalties, interest and reasonable and reasonably documented expenses) arising
therefrom or with respect thereto, whether or not such Taxes or Other Taxes
were correctly or legally asserted; provided that Borrower shall not be obligated to indemnify any
Lender or the Issuing Bank for any penalties, interest or expenses relating to
Taxes or Other Taxes arising from the indemnitee’s gross negligence, willful
misconduct or unexcused breach of this Financing Agreement as determined by a
final non-appealable judgment of a court of competent jurisdiction.  Each Lender and the Issuing Bank agrees to
give notice to Borrower of the assertion of any claim against such Lender or
the Issuing Bank relating to such Taxes or Other Taxes as promptly as is
practicable, and in no event later than ten (10) days prior to

 

22

 

the final expiration of any
period available to such Lender or the Issuing Bank under applicable law for
challenging such a claim; provided, however, that any Lender’s or
the Issuing Bank’s failure to notify Borrower within such period shall not
relieve Borrower of its obligation under this Section 3.4(d) with
respect to claims arising prior to such time as Borrower receives notice from
the indemnitee as provided herein, but shall relieve Borrower of its
obligations under this Section 3.4(d) with respect to interest
and penalties between the end of the period and such time as Borrower receives
notice from such Lender or the Issuing Bank as provided herein.  Payments by Borrower pursuant to this
indemnification shall be made within thirty (30) days from the date such Lender
or the Issuing Bank makes written demand therefor (submitted through
Administrative Agent), which demand shall be accompanied by documentation
establishing, in reasonable detail, the basis and calculation thereof and
certifying that the method used to calculate such amount is fair and
reasonable.  Following a written request
by Borrower setting forth in reasonable detail the basis therefor, each Lender
and the Issuing Bank agrees either (i) in good faith to contest Taxes or
Other Taxes with respect to which such Lender or the Issuing Bank has received
an indemnity payment pursuant to this Section 3.4(d)(ii), or (ii) to
permit Borrower to contest such Taxes or Other Taxes if such Lender’s or the
Issuing Bank’s permission would be required and to cooperate with Borrower in
such contest, in each case at Borrower’s sole cost and expense, provided that
nothing in the foregoing sentence shall oblige such Lender or the Issuing Bank
to disclose to Borrower its tax returns or other information it reasonably
considers to be confidential or proprietary or to take other actions that in
the reasonable judgment of such Lender or the Issuing Bank would be adverse to
its commercial interests.  Each Lender
and the Issuing Bank agrees to repay to Borrower any refund (including that
portion of any interest that was included as part of such refund with respect
to Taxes or Other Taxes paid by Borrower pursuant to this Section 3.4(d)),
as soon as commercially practicable after receipt of such refund, received by
such Lender or the Issuing Bank for Taxes or Other Taxes that were paid by
Borrower pursuant to this Section 3.4(d).

 

(iii)          Notice.  Within thirty (30) days after the date of any
payment of Taxes or Other Taxes by Borrower, Borrower shall furnish to
Administrative Agent, at the address referred to in Section 14.1,
the original or a certified copy of a receipt evidencing payment thereof, a
certified copy of the return reporting such payment or other evidence of such
payment reasonably satisfactory to Administrative Agent, in either instance,
certified by an Authorized Officer of Borrower. 
Administrative Agent shall promptly provide a copy of such receipt,
return or other evidence of payment to each Lender and the Issuing Bank.  Borrower shall compensate Administrative
Agent, Issuing Bank and each Lender for all reasonable losses and expenses
sustained by Administrative Agent, Issuing Bank or Lender, as the case may be,
as a result of any failure by Borrower to so

 

23

 

furnish
the original or certified copy of such receipt, return or other evidence of
payment.

 

(iv)                              Survival of
Obligations.  The
obligations of Borrower under this Section 3.4(d) shall
survive the termination of this Financing Agreement and the repayment of the
Obligations for a period of two (2) years.

 

(e)                                                                                  Withholding
Exemption Certificates. 
Administrative Agent, on the Closing Date, and each Lender, upon
becoming a Lender hereunder, and each Person to which any Lender grants a
participation (or otherwise transfers its interest in this Financing
Agreement), agrees that it will deliver, as soon as commercially practicable,
to Borrower and Administrative Agent (and Administrative Agent agrees that it
will promptly deliver to Borrower) (i) in the case of Administrative
Agent, Form W-8IMY (together with any withholding statement required by
applicable law) in respect of amounts to be received for or on account of the
Lenders and Form W-8ECI in respect of amounts to be received for its own
account, each duly completed; (ii) in the case of a Lender or Person that
is a United States person (as defined in Section 7701(a)(30) of the Code),
a copy of a United States Internal Revenue Service Form W-9, duly
completed; or (iii) in the case of a Lender or Person that is not a United
States person, a duly completed and executed letter in the form of Exhibit L-1,
Exhibit L-2 or Exhibit L-3 (Forms of “Withholding
Certificate (Treaty)”, “Withholding Certificate (Effectively
Connected)” and “Withholding Certificate (Portfolio Interest)”)
as appropriate, and two duly completed copies of United States Internal Revenue
Service Form W-8BEN or W-8ECI or successor applicable form, as the case
may be, certifying in each case that Administrative Agent or Lender is entitled
to receive payments under this Financing Agreement without deduction or
withholding of any United States federal income or withholding taxes and
including, in each case, a U.S. taxpayer identification number (“TIN”)
if required by such form or otherwise necessary to obtain the benefits being
claimed.  Each Lender which delivers to
Borrower and Administrative Agent a Form W-8BEN or W-8ECI pursuant to the
preceding sentence further undertakes to deliver to Borrower and to
Administrative Agent further copies of the said letter and Form W-8BEN or
W-8ECI, or successor applicable forms, or other manner of certification or
procedure, as the case may be, on or before the date that any such letter or
form expires or becomes obsolete or within a reasonable time after gaining
knowledge of the occurrence of any event requiring a change in the most recent
letter and forms previously delivered by it to Borrower and Administrative
Agent, and such extensions or renewals thereof as may reasonably be requested
by Borrower or Administrative Agent, certifying in the case of a Form W-8BEN
or W-8ECI that such Lender is entitled to receive payments under this Financing
Agreement and the other Financing Documents without deduction or withholding of
any United States federal income or withholding taxes, unless a change in
applicable law or the

 

24

 

interpretation or
administration thereof by any Governmental Authority has occurred prior to the
date on which any such delivery would otherwise be required, which change
renders all such forms inapplicable or which change would prevent a Lender from
duly completing and delivering any such letter or form with respect to it and
such Lender advises Borrower that it is not capable of receiving payments
without any deduction or withholding of United States federal income or
withholding tax.  Borrower shall not be
obligated to pay any additional amounts in respect of United States Federal
income tax pursuant to Section 3.4(d) (or make an
indemnification payment pursuant to Section 3.4(d)) to any Lender
(including any Person to which any Lender sells, assigns, grants a
participation in, or otherwise transfers its rights under this Financing
Agreement) if the obligation to pay such additional amounts (or such
indemnification) would not have arisen but for a failure of such Lender to
comply with its obligations under this Section 3.4(e).  In the event that any Lender fails or is
unable to satisfy the provisions of this Section 3.4(e), Borrower,
Administrative Agent and such Lender shall cooperate to find another Person to
be substituted for such Lender in the manner provided in Section 12.13
hereof.

 

3.5                                 Pro Rata
Treatment.

 

(a)                                  Borrowing, Etc.  Except as otherwise provided in this
Financing Agreement, (i) each Loan and each reduction of the applicable
Commitments shall be made or allocated among the Lenders pro rata according to their respective
Proportionate Shares of such Loans or Commitments and (ii) each payment of
principal of and interest on Loans shall be made or shared among the Lenders
holding such Loans pro rata
according to the Proportionate Shares of such Loans.

 

(b)                                 Sharing of
Payments, Etc.  If any
Lender or the Issuing Bank (a “Benefited Lender”) shall obtain any
payment (whether voluntary, involuntary, through the exercise of any right of
setoff, or otherwise) on account of Loans (or interest thereon) owed to it,
other than pursuant to Sections 3.6(a) or (b), in excess of
its ratable share of payments on account of such Loans obtained by all Lenders
entitled to such payments, such Lender shall forthwith purchase from the other
Lenders such participations in the Loans, as the case may be, as shall be
necessary to cause such purchasing Lender to share the excess payment ratably
with each of them; and if after taking into account such participations the
Benefited Lender continues to have access to additional funds of Borrower for
application on account of its debt, then the Benefited Lender shall use such
funds to reduce indebtedness of Borrower under the Financing Documents held by
it and share such payments with the other Lenders; provided, however,
that, if all or any portion of such excess payment is thereafter recovered from
such purchasing Lender, such purchase from such Lender shall be rescinded and
each other Lender shall repay to the purchasing Lender the purchase price to
the extent of such recovery together with an amount equal to such other Lender’s
ratable share (according to the proportion of (i) the amount of such other
Lender’s required

 

25

 

repayment to (ii) the
total amount so recovered from the purchasing Lender) of any interest or other
amount paid or payable by the purchasing Lender in respect of the total amount
so recovered.  Borrower agrees that any
Lender so purchasing a participation from another Lender pursuant to this Section 3.5(b) may,
to the fullest extent permitted by law, exercise all its rights of payment
(including the right of setoff) with respect to such participation as fully as
if such Lender were the direct creditor of Borrower in the amount of such
participation; provided that Borrower shall have no
liability to the Lenders or the Issuing Bank hereunder to the extent that it
has made all payments to the Lenders, Issuing Bank and Administrative Agent
required to be made by Borrower hereunder.

 

3.6                                 Change of
Circumstances.

 

(a)                                  Inability to
Determine Rates.  If, on or
before the first day of any Interest Period for any LIBO Rate Loan (i) Administrative
Agent determines that the LIBO Rate for such Interest Period with respect to
the LIBO Rate Loans cannot be adequately and reasonably determined due to the
unavailability of funds in or other circumstances affecting the London
interbank market (in respect of a change of circumstances compared to the
totality of the circumstances that existed on the Closing Date), or (ii) Lenders
holding in the aggregate at least 33.33% of the then outstanding and unpaid
principal amount of LIBO Rate Loans shall advise Administrative Agent that (x) the
rates of interest for such LIBO Rate Loans do not adequately and fairly reflect
the cost to such Lenders of maintaining or continuing such LIBO Rate Loans
(compared to the totality of the circumstances that existed on the Closing
Date) or (y) deposits in Dollars in the London interbank market are not
available to such Lenders (as conclusively certified by each such Lender in
good faith in writing to Administrative Agent and to Borrower) in the ordinary
course of business in sufficient amounts to maintain or continue their LIBO
Rate Loans, then Administrative Agent shall immediately give notice of such
condition to Borrower (the “Notice of Inability to Determine Rates”).  After the giving of any such Notice of
Inability to Determine Rates and until Administrative Agent shall otherwise
notify Borrower and the Lenders that the circumstances giving rise to such
condition no longer exist, Borrower’s right to request the continuation of LIBO
Rate Loans shall be suspended.  Any Loan
outstanding at the commencement of any such suspension shall be converted at
the end of the then current Interest Period for such Loans into Base Rate
Loans.  Loans converted into Base Rate
Loans shall accrue interest at the rate per annum equal to the Base Rate then
in effect plus the Applicable Base Rate Margin.  All computations with respect to such Base
Rate Loan shall be made as set forth in the last sentence of Section 2.1(d).

 

(b)                                 Illegality.  If, after the date of this Financing
Agreement, the adoption of any Governmental Rule, any change in any
Governmental Rule or the application or requirements thereof (whether such
change occurs in accordance with the terms of such Governmental Rule as
enacted, as a result of amendment, or otherwise), any change in the
interpretation or administration of any Governmental Rule by any
Governmental Authority, or compliance by any Lender or Borrower with any

 

26

 

request or directive
(whether or not having the force of law) of any Governmental Authority (a “Change
of Law”) shall make it unlawful or impossible for any Lender to maintain or
continue any LIBO Rate Loan, such Lender shall immediately notify
Administrative Agent and Borrower of such Change of Law (“Notice of Change
of Law”).  Upon receipt of such
notice (i) Borrower’s right to request the continuation of LIBO Rate Loans
and the obligations of Lenders to maintain or continue LIBO Rate Loans shall be
suspended for so long as such condition shall exist; and (ii) Borrower
shall, at the request of such Lender, either (y) immediately repay such
Loans pursuant to Section 3.2 or (z) convert such outstanding
Loans into Base Rate Loans, if such Lender shall notify Borrower that such
Lender may not lawfully maintain or continue such Loans.  Any conversion or prepayment of Loans made
pursuant to the preceding sentence prior to the last day of an Interest Period
for such Loans shall be deemed a prepayment thereof for purposes of Section 3.7.  Upon the giving of any such Notice of Change
of Law, such Base Rate Loans shall accrue interest equal to the Base Rate then
in effect plus the Applicable Base Rate Margin.  All computations with respect to such Base
Rate Loans shall be made as set forth in the last sentence of Section 2.1(d).

 

(c)                                  Increased Costs.  If, after the date of this Financing
Agreement, any Change of Law:

 

(i)            shall, without
duplication with amounts payable under Section 3.4(d), subject any
Lender to any tax, duty or other charge with respect to any Loan, or shall
change the basis of taxation of payments by Borrower to any Lender on such a
Loan (except for Taxes, Other Taxes, or changes in the rate of taxation on the
overall net income of any Lender);

 

(ii)           shall impose,
modify or require any reserve, special deposit or similar requirement
(including any modification of a Reserve Requirement) against assets held by,
deposits in or other liabilities for the account of, advances or loans by, or
any other acquisition of funds by, any Lender for any Loan; or

 

(iii)          shall impose on
any Lender any other requirement directly related to any Loan;

 

and the effect of any of the
foregoing is to increase the cost to such Lender of renewing, participating in
or maintaining any such Loan or to reduce any amount receivable by such Lender
hereunder or under the Notes; then Borrower shall from time to time, upon
demand by Administrative Agent (accompanied by a certificate from such Lender
setting forth in reasonable detail the amount of such increased costs or
reduced amounts and the basis for determination of such amount), pay to
Administrative Agent on behalf of such Lender additional amounts sufficient to
reimburse such Lender for such increased costs or to compensate such Lender for
such reduced amounts.  Thereafter,
Borrower may replace any such Lender so affected pursuant to Section 12.13.

 

27

 

(d)                                 Capital
Requirements.  If any
Lender determines that (i) any Change of Law after the date of this
Financing Agreement increases the amount of capital required or expected to be
maintained by such Lender or the Lending Office of such Lender (a “Capital
Adequacy Requirement”) and (ii) the amount of capital maintained by
such Lender or such Lending Office which is attributable to, or based upon, the
Loans, or this Financing Agreement must be increased as a result of such
Capital Adequacy Requirement (taking into account such Lender’s policies with
respect to capital adequacy), Borrower shall pay to Administrative Agent on
behalf of such Lender or such Person, upon demand of Administrative Agent
(accompanied by a certificate from such Lender setting forth in reasonable
detail the computation of any such increased costs), such amounts as such
Lender or such Person shall reasonably determine are necessary to compensate such
Lender or such Person for such reasonably increased costs to such Lender or
Person of such increased capital. 
Thereafter, Borrower may replace any such Lender so affected pursuant to
Section 12.13.

 

(e)                                  Notice.  Each Lender will notify Administrative Agent
of any event occurring after the date of this Financing Agreement that will
entitle such Lender to compensation pursuant to this Section 3.6,
as promptly as is practicable and in no event later than 120 days after the
principal officer or other representative of such Lender responsible for
administering this Financing Agreement obtains knowledge thereof, and
Administrative Agent shall promptly notify Borrower of such event; provided that
any Lender’s failure to notify Administrative Agent within such 120-day period
shall not relieve Borrower of its obligation under this Section 3.6
with respect to claims arising prior to such time as Borrower receives notice
as provided herein but shall relieve Borrower of its obligations under this Section 3.6
with respect to interest and penalties between the end of such 120-day period
and such time as Borrower receives notice from such Lender as provided
herein.  No Person purchasing from a
Lender a participation in any Loan shall be entitled to any payment from or on behalf
of Borrower pursuant to Section 3.6(c) or 3.6(d) which
would be in excess of the applicable proportionate amount (based on the portion
of the Loan in which such Person is participating) which would then be payable
to such Lender if such Lender had not sold a participation in that portion of
the Loan.

 

3.7                                 Funding Losses.

 

If Borrower shall (a) repay
or prepay any Loans on any day other than the last day of an Interest Period
for such Loans (whether an Optional Prepayment or a Mandatory Prepayment); (b) fail
to borrow any Loans in accordance with the Notice of Borrowing delivered to
Administrative Agent (whether as a result of the failure to satisfy any
applicable conditions or otherwise other than a default by a Lender); or (c) fail
to make any prepayment of any Loan in accordance with any notice of prepayment
delivered to Administrative Agent; then Borrower shall, upon demand by any
Lender, reimburse such Lender (by payment to Administrative Agent for the
account of such Lender) for all documented and reasonable costs and losses
incurred by such Lender as a result of such repayment, prepayment or failure
(but such costs and losses shall not include any compensation for lost profit
or lost opportunity) (“Liquidation Costs”) together

 

28

 

with any Interest Fix Fees. 
Borrower understands that such Liquidation Costs may include losses
incurred by a Lender as a result of funding and other contracts entered into by
such Lender to fund Loans.  Each Lender
demanding payment under this Section 3.7 shall deliver to
Administrative Agent a certificate setting forth in reasonable detail the basis
for and amount of costs and losses for which demand is made, and Administrative
Agent shall promptly provide such certificate to Borrower.

 

3.8                                 Alternate
Office; Minimization of Costs.

 

(a)                                  To the extent
reasonably possible, each Lender shall designate an alternative Lending Office
with respect to its Loans and otherwise take any reasonable actions to reduce
any liability of Borrower to such Lender under Section 3.4(d), 3.6(c) or
3.6(d), or to avoid the unavailability of Loans or the determination of
the interest rate under Section 3.6(a) or Section 3.6(b) so
long as such Lender, in its sole discretion, determines that such designation
is not materially disadvantageous to such Lender.

 

(b)                                 Any Lender may
designate a Lending Office other than that set forth on Exhibit I
and may assign all of its interests under the Financing Documents, and its
Notes, to such Lending Office, provided that such
designation and assignment do not at the time of such designation and
assignment increase the reasonably foreseeable liability of Borrower under Sections
3.4(d), 3.6(c), or 3.6(d) or make Loans or an interest
rate option unavailable pursuant to Section 3.6(a) or Section 3.6(b).

 

(c)                                  Each Lender
shall use reasonable efforts to avoid or minimize any additional costs, taxes,
expense or obligation which might otherwise be imposed on Borrower pursuant to Sections
3.4(d), 3.6(c) or 3.6(d) or as a result of such
Lender being subject to a Reserve Requirement or to avoid the unavailability of
Loans or the determination of the interest rate under Section 3.6(a) or
Section 3.6(b); provided, however, that such efforts
shall not cause the imposition on any Lender of any additional costs or legal
or regulatory burdens unless Borrower shall provide such Lender with an
indemnification for such additional costs in form and substance reasonably
satisfactory to such Lender.

 

3.9                                 Interest Rate
Protection.

 

(a)                                  Interest Rate
Agreement.  No later
than five (5) Business Days after the Closing Date, Borrower shall have
entered into, and shall maintain in full force and effect, one or more LIBO
Rate cap agreements and/or interest rate swaps with schedules and confirmations
thereto (collectively, the “Interest Rate Agreements”) with respect to a
minimum of 75% of the aggregate outstanding principal of the Term Loans on the
Closing Date, on terms and conditions reasonably satisfactory to the Borrower
and the counterparty to each such Interest Rate Agreement.  Borrower may substitute one type of Interest
Rate Agreement for another type of Interest Rate Agreement, which substitution
shall not otherwise constitute an Event of Default.

 

29

 

(b)                                 Interest Fix
Fees.  Borrower shall pay all
reasonable costs, fees and expenses incurred by each counterparty providing the
Interest Rate Agreements that Borrower enters into hereunder, including any
reasonable costs, fees or expenses (including increased interest payments)
incurred in connection with any unwinding, breach or termination of such
Interest Rate Agreements (“Interest Fix Fees”).

 

(c)                                  Security.  The obligations of Borrower under each
Interest Rate Agreement, and all associated Interest Fix Fees shall be secured
by the Collateral Documents and shall rank pari
passu with the obligations of Borrower under the other Financing
Documents.

 

ARTICLE 4.

COLLATERAL DOCUMENTS

 

4.1                                 Security.

 

(a)                                  Mortgage
Documents, Security Agreements, Etc.  The Obligations shall be secured by, and
Borrower shall deliver or cause to be delivered the following to Administrative
Agent and Security Agent at the times required pursuant to Article 7:

 

(i)                                     (A) A
mortgage, in the form of the Leasehold Mortgage, Assignment Of Rents, Security
Agreement And Fixture Filing shown on Exhibit E-1, duly executed by
Evergreen Wind Power V, LLC in a recordable form, in favor of Security Agent,
with respect to the Stetson I Lease; (B) a mortgage, in the form of the
Mortgage, Assignment Of Rents, Security Agreement And Fixture Filing shown on Exhibit E-1,
duly executed by Evergreen Wind Power V, LLC in a recordable form, in favor of
Security Agent, with respect to the Transmission Line Real Property Interests;
and (C) a mortgage, in the form of the Leasehold Mortgage, Assignment Of
Rents, Security Agreement And Fixture Filing shown on Exhibit E-1,
duly executed by Stetson Wind II, LLC in a recordable form, in favor of
Security Agent, with respect to the Stetson II Lease (together, the “Mortgage
Documents”);

 

(ii)                                  A Pledge and
Security Agreement in the form of Exhibit E-2, duly executed by the
Borrower, in favor of Security Agent (the “Borrower Pledge and Security
Agreement”);

 

(iii)                               A Pledge and
Security Agreement in the form of Exhibit E-7, duly executed by
Member in favor of Security Agent (the “Member Pledge and Security Agreement”);

 

30

 

(iv)                              A Guaranty and
Security Agreement in the form of Exhibit E-3, duly executed by
each Project Company, in each case, in favor of Security Agent (each, a “Guaranty
and Security Agreement”);

 

(v)                                 The Account
Control Agreement;

 

(vi)                              The Consents
from the counterparties in respect of the following Material Project Documents,
in favor of Security Agent:

 

A.                                   the Energy
Hedge;

 

B.                                     the Citigroup
REC Contract;

 

C.                                     the PPA;

 

D.                                    the BOP
Agreement;

 

E.                                      the Turbine
Supply Agreement;

 

F.                                      the Turbine
Service Agreement;

 

G.                                     the Shared
Facilities Agreement;

 

H.                                    the Equipment
Purchase Agreement;

 

I.                                         the O&M
Service Agreement; and

 

J.                                        the Project
Administration Agreement.

 

(vii)         The Estoppel
Agreements in favor of Security Agent;

 

(viii)        Such other
documents, instruments and agreements as Security Agent may request to ensure
that it has first-priority perfected Liens in all assets of Borrower and each
Project Company, all the issued and outstanding membership interests in each
Project Company and all the issued and outstanding membership interests in the
Borrower (other than Permitted Liens that, pursuant to applicable law, are
entitled to a higher priority than the liens granted to the Security Agent
pursuant to the Collateral Documents).

 

(b)                                 Further
Assurances.  Borrower
shall deliver to Security Agent each of the foregoing and such other
instruments, agreements, certificates, opinions and documents (including UCC
financing statements and fixture filings and landlord waivers) as Security
Agent may reasonably request to perfect and maintain the Liens granted to
Security Agent by the foregoing prior to the Liens or other interests of any
Person other than Security Agent (other than Permitted Liens that, pursuant to
applicable law, are entitled to a higher priority than the liens granted to the
Security Agent pursuant to the Collateral Documents).  Borrower shall fully

 

31

 

cooperate with Security
Agent and perform all additional acts necessary or reasonably requested by
Security Agent or Administrative Agent to effect the purposes of the foregoing.

 

ARTICLE 5.

CONDITIONS PRECEDENT

 

5.1                                 Conditions
Precedent to the Closing Date; Issuance of Letters of Credit.

 

The obligation of the
Lenders to make the Loans hereunder and the Issuing Bank to issue the Letters
of Credit is subject to the prior satisfaction by Borrower of each of the
following conditions to the satisfaction of Administrative Agent, Issuing Bank
and the Lenders (unless waived in writing by Administrative Agent with consent
of all Lenders and the Issuing Bank):

 

(a)                                  All Sponsor
Equity shall have been deposited into the Disbursement Account or otherwise
contributed in respect of the Projects by or on behalf of the Sponsor.

 

(b)                                 Each
representation and warranty set forth in Article 6 is true and
correct in all material respects on the Closing Date (unless such representation
or warranty relates solely to an earlier date, in which case it shall have been
true and correct in all material respects as of such earlier date).

 

(c)                                  No Event of
Default or Inchoate Default with respect to any Affiliated Participant has
occurred and is continuing as of the Closing Date and to the knowledge of
Borrower, no Inchoate Default with respect to any Major Project Participant
that is not an Affiliated Participant has occurred and is continuing as of the
Closing Date.

 

(d)                                 Delivery to
Administrative Agent of a copy of one or more resolutions or other
authorizations of Borrower, the Member, and each Affiliated Participant,
certified by the appropriate officers of each such entity as being in full
force and effect on the Closing Date, authorizing, in respect of Borrower, the
Borrowing herein provided for and the execution, delivery and performance of
this Financing Agreement, and in respect of Borrower and each Affiliated
Participant, the other Operative Documents and any instruments or agreements
required hereunder or thereunder and in each case to which Borrower or such
Affiliated Participant is a party.

 

(e)                                  Delivery to
Administrative Agent of a certificate satisfactory in form and substance to
Administrative Agent from Borrower and each Affiliated Participant, signed by
the appropriate Authorized Officer of each such entity and dated the Closing
Date, as to the incumbency of the natural persons authorized, in respect of
Borrower, to execute and deliver this Financing Agreement, and in respect of
Borrower and each Affiliated Participant, the other Operative Documents and any
instruments or agreements required hereunder or thereunder and in each case to
which Borrower or such Affiliated Participant is a party.

 

32

 

(f)                                    Delivery to Administrative Agent of (i) a
copy of the Certificate of Formation of Borrower, certified by the Secretary of
State of the State of Delaware, a copy of the Borrower LLC Agreement and any
agreements or certificates related to the Borrower LLC Agreement filed in
accordance with applicable state law; (ii) copies of the Certificates of
Formation of each Affiliated Participant, certified by the Secretary of State
of the State of formation of each Affiliated Participant; and (iii) copies
of the limited liability company agreement of each Affiliated Participant, as
applicable, in each case, certified by an Authorized Officer thereof.

 

(g)                                 Delivery to Administrative Agent of
certificates issued by the Secretary of State of the State or any other jurisdiction
of organization of each Major Project Participant (other than the individual
counterparties to the Real Property Agreements) certifying that each such Major
Project Participant exists under the laws of such State and has paid all taxes
due to such State, if such certificates are reasonably available in such State
or jurisdiction.

 

(h)                                 Delivery to Administrative Agent of
certificates issued by the Secretary of State of the State of Maine certifying
that each Major Project Participant (other than individual counterparties to
the Real Property Agreements), is in good standing and is qualified to do
business in and has paid all taxes due to such state, if reasonably available; provided,
however, that no such certificate shall be required if such Major Project
Participant is not required to qualify to do business in such state in order to
perform its obligations under the Project Documents to which it is a party or
where such Major Project Participant is not the type of Person for which a good
standing certificate or certification as to payment of taxes is reasonably
available.

 

(i)                                     Delivery to Administrative Agent of (i) executed
originals of each Financing Document required as of the Closing Date, and (ii) certified
true and correct execution copies of each Material Project Document and any
existing supplements or amendments thereto, all of which Financing Documents,
Material Project Documents and supplements or amendments thereto shall, in all
material respects, be satisfactory in form and substance to Administrative
Agent, Issuing Bank, the Lenders and the Independent Engineer.  Receipt by Security Agent of evidence
reasonably satisfactory to it that all appropriate financing statements,
fixture filings and the Mortgage Documents were or will be promptly in
connection with the funding of the Loans filed and/or recorded as required
hereunder or by law.  The Member shall
have delivered to Security Agent the original certificates or other
instruments, along with a blank membership interest transfer power, evidencing
the Member’s 100% ownership interest in all of the issued and outstanding
membership interests of the Borrower. 
The Borrower shall have delivered to Security Agent the original
certificates or other instruments, along with blank membership interest
transfer powers, evidencing the Borrower’s 100% ownership interest in all of
the issued and outstanding membership interests of each Project Company.

 

33

 

(j)                                     Delivery to Administrative Agent, Issuing
Bank and each Lender, as applicable, of all requested information pursuant to
the Patriot Act and Know-Your-Customer regulatory requirements.

 

(k)                                  Execution and delivery to Administrative
Agent by Sponsor of the Sponsor Indemnity, in form and substance satisfactory
to Administrative Agent.

 

(l)                                     Each Financing Document, Material Project
Document and Applicable Permit shall be in full force and effect in accordance
with its terms and, to the knowledge of Borrower, no material defaults shall
have occurred thereunder.

 

(m)                               Administrative Agent shall have received
a certificate, dated as of the Closing Date, signed on behalf of Borrower by an
Authorized Officer of the Borrower, in substantially the form of Exhibit G-1.

 

(n)                                 Delivery to Administrative Agent of the
Insurance Consultant’s certificate, in substantially the form of Exhibit G-2,
with the Insurance Consultant’s report, in form and substance satisfactory to
Administrative Agent, attached thereto.

 

(o)                                 Delivery to Administrative Agent of the
Environmental Consultant’s certificate, in substantially the form of Exhibit G-3,
with the Environmental Report, in form and substance satisfactory to
Administrative Agent, attached thereto.

 

(p)                                 Delivery to Administrative Agent of the
Independent Engineer’s Closing Certificate, in the form of Exhibit G-4,
and otherwise satisfactory to Administrative Agent and the Lenders along with a
copy of the Independent Engineer’s report in form and substance satisfactory to
the Administrative Agent and the Lenders regarding its satisfactory technical
review of the Projects, such report confirming (i) the reasonableness of
the Projects’ production, revenue, operating cost and major maintenance
assumptions; (ii) the adequacy of the Projects’ overall wind farm design
including the proposed civil and electrical works, the interconnection
facilities and grid functionality; (iii) the adequacy of the Base Case
Project Projections, including power production forecasts; and (iv) the
status and progress of the construction and development of the Stetson II
Project, and the adequacy of the aggregate estimated costs (and reasonableness
of the related assumptions) necessary for the achievement of Substantial
Completion (as defined in the Stetson II Reed Agreement) of the Stetson II
Project (the “Independent Engineer’s Closing Certificate and Report”).

 

(q)                                 Delivery to Administrative Agent of a
report prepared by the Power Market Consultant, satisfactory in form and
substance to Administrative Agent and the Lenders, and demonstration that
Borrower has complied in all material respects with all relevant
recommendations set forth in such report.

 

(r)                                    Delivery to Administrative Agent of the
transmission report prepared by the Transmission Consultant, satisfactory in
form and substance to Administrative Agent and the Lenders.

 

34

 

(s)                                  Delivery to Administrative Agent of a
report prepared by the Wind Consultant, which shall include a wind and
associated power production gross and net forecast based on the turbine power
curve specifications, expected availability of Turbines and actual site and
resource characteristics (such review including 50%, 75%, 90% and 99%
confidence levels for one and ten year probability forecasts), in each case,
satisfactory in form and substance to Administrative Agent, Issuing Bank, the
Lenders and the Independent Engineer, along with a reliance certificate from
the Wind Consultant dated as of the Closing Date, addressed to Administrative
Agent, with respect to such report confirming that the Administrative Agent and
the Lenders may rely on such report as of the Closing Date.

 

(t)                                    Delivery to the Administrative Agent,
Transmission Owner and the ISO of a duly executed notice by the Borrower to the
Transmission Owner and the ISO, in form and substance acceptable to the
Administrative Agent, notifying the ISO and the Transmission Owner of the
collateral assignment of the Interconnection Agreement to the Lenders as
required pursuant to Section 19.1 of the Interconnection Agreement.

 

(u)                                 Delivery to Administrative Agent of the
Annual Operating Plan, satisfactory in form and substance to Administrative
Agent and the Lenders.

 

(v)                                 Delivery to Administrative Agent of an
opinion, each dated the Closing Date, of:

 

(i)                                     Morgan, Lewis & Bockius LLP, special counsel for Borrower, Member and each
other Affiliated Participant, in form and substance acceptable to
Administrative Agent (including certain federal permitting matters);

 

(ii)           Verrill Dana, LLP, special real estate counsel for
Borrower, Member and each Project Company (including certain state and local
permitting matters);

 

(iii)          Bernstein, Shur, Sawyer & Nelson, P.A.,
special counsel for Borrower and the Project Companies with respect to Maine
energy regulatory matters

 

(iv)                              McDermott, Will & Emery, LLP,
special counsel for Borrower with respect to the Energy Hedge;

 

(v)                                 in-house counsel for Borrower, Member and
each other Affiliated Participant, in form and substance acceptable to
Administrative Agent; and

 

(vi)                              counsel for the Turbine Supplier and
Turbine Operator, in form and substance acceptable to Administrative Agent.

 

(w)                               Insurance complying with Section 7.20
shall be in full force and effect as of the Closing Date and Administrative
Agent shall have received (i) a certificate of Borrower signed by an
Authorized Officer responsible for insurance matters or 

 

35

 

Borrower’s
authorized insurance representative, dated as of the Closing Date, and
identifying underwriters, type of insurance, insurance limits and policy terms,
listing the special provisions required as set forth in Section 7.20,
describing the insurance obtained and stating that such insurance is in full
force and effect and that all premiums then due thereon have been paid and that,
in the opinion of such Person, such insurance complies with Section 7.20,
and (ii) certified copies of all policies evidencing such insurance (or a
binder, commitment or certificates signed by the insurer or a broker authorized
to bind the insurer), in form and substance satisfactory to Administrative
Agent.

 

(x)                                   Delivery to Administrative Agent of (i) Exhibit H-2B,
the schedule of Applicable Permits, in form and substance satisfactory to
Administrative Agent; and (ii) true and correct copies of all Applicable
Permits, which Permits shall be in form and substance satisfactory to
Administrative Agent and shall be in the name of, or assigned to, the Project
Companies or the Borrower, together with a certificate of Borrower signed by an
Authorized Officer certifying that all such Applicable Permits under (ii) hereof
have been obtained and that such Applicable Permits are in full force and
effect and are not subject to appeal, further procedures or any unsatisfied
conditions that may allow material modification or revocation.

 

(y)                                 Except as set forth in Exhibit H-5
and Exhibit H-6, no material action, suit, proceeding,
Environmental Claim or investigation shall have been instituted or, to the
knowledge of Borrower, threatened against Borrower, any Affiliated Participant
or the Project, which action, suit, proceeding, Environmental Claim or
investigation could reasonably be expected to have a Material Adverse Effect.

 

(z)                                   No action, suit, proceeding or
investigation shall have been instituted, or to the knowledge of Borrower,
threatened, nor shall any rule, regulation, order, judgment or decree have been
issued or proposed to be issued by any Governmental Authority that, solely as a
result of the ownership or operation of the Project, the generation or sale of
electricity therefrom or the entering into of any Operative Document or any
transaction contemplated hereby or thereby, would cause or deem (i) Administrative
Agent, Issuing Bank, Security Agent, or the Lenders or any Affiliate of any of
them to be subject to, or not exempted from, regulation under PUHCA, any
financial, organizational or rate regulation as a “public utility” or “electric
utility” or terms of similar effect under Maine law, or under any other state
laws and regulations respecting the rates or the financial or organizational
regulation of electric utilities; or (ii) Borrower, any Project Company or
the Member to be subject to, or not exempted from, regulation (A) under
any financial, organizational or rate regulation as a “public utility” or “electric
utility” or terms of similar effect under Maine law, (B) under any other
state laws and regulations respecting the rates or the financial or
organizational regulation of electric utilities except, with respect to the
Member, any such state laws or regulations that could not be reasonably
expected to have a Material Adverse Effect, and (C) under PUHCA, other
than (x) compliance with Section 1265 of PUHCA required with respect
to Borrower, the Member or the Project Companies; and (y) regulation under
PUHCA with respect to any Affiliate of 

 

36

 

Borrower
(including Member and the Project Companies) if such regulation could not be
reasonably expected to have a Material Adverse Effect.

 

(aa)                            All amounts required to be paid to or
deposited with Administrative Agent, Security Agent, Issuing Bank or any
Lender, and all taxes, fees and other costs payable in connection with the
execution, delivery, recordation and filing of the documents and instruments
required to be filed under this Section 5.1, shall have been paid
in full or provided for.

 

(bb)                          Delivery to Administrative Agent of the (i) audited
financial statements for the Sponsor for fiscal year 2008 and (ii) unaudited
financial statements of each of Borrower and each Project Company, on a
consolidated basis, and Member, including its respective balance sheet and an
income and expense statement, as of September 30, 2009, together with
certificates from the appropriate Authorized Officers of the Borrower stating that
such financial statements fairly present, in all material respects, the
financial position of Borrower and each Project Company (on a consolidated
basis), Member and Sponsor, as applicable, at the date thereof, subject to
changes resulting from audit and normal year-end adjustments.

 

(cc)                            Delivery to Administrative Agent of a UCC
search report with respect to Borrower, Member and each Project Company dated
as of the Closing Date or an earlier date satisfactory to Administrative Agent
for each of the jurisdictions in which the UCC-1 financing statements, the
fixture filings and the Mortgage Documents are intended to be filed in respect
of the Collateral.

 

(dd)                          Delivery to Administrative Agent of:  (i) the Construction Budget and
Schedule, (ii) Annual Operating Plan, (iii) the Base Case Project
Projections and (iv) the Debt Sizing Base Case, reflecting,
among other things, a Projected Debt Service Coverage Ratio of not less
than 1.00 to 1.00 when applying the P99 Production Level and a Projected Debt
Service Coverage Ratio of not less than 1.30 to 1.00 when applying the P50
Production Level.

 

(ee)                            Administrative Agent shall have received
a title insurance policy or policies in an ALTA Loan Policy Form (6-17-06),
together with such endorsements as are required by Administrative Agent, or
Title Insurer’s irrevocable, unconditional commitment to issue such policy
(such policy and endorsements being hereinafter referred to as the “Title
Policy”), each policy in an amount equal to the Total Commitment issued by
the Title Insurer, in form and substance and with such reinsurance  as is available on commercially reasonable terms and
reasonably satisfactory to Administrative Agent, and insuring (or agreeing to
insure) Administrative Agent that:

 

(i)                                     The applicable Project Company has a good
and marketable title to or right to control, occupy and use the Project Site
and the Transmission Line Real Property Interests, free and clear of liens,
encumbrances or other exceptions to title except those exceptions specified on Exhibit E-5
(the “Permitted Encumbrances”);

 

37

 

(ii)           the Mortgage Documents constitute a valid first
priority Lien on the Mortgaged Property, free and clear of all Liens,
encumbrances and exceptions to title, other than Permitted Encumbrances.  The Title Policy shall effect full coverage
against losses arising out of encroachments on boundary and other losses with
respect to which Administrative Agent may request coverage, which shall include
an endorsement deleting creditor’s rights and arbitration provisions, an
endorsement covering pending disbursements, and an affirmative mechanic’s lien
endorsement; and

 

(iii)          such other matters as Administrative Agent may
reasonably request, and containing only Permitted Encumbrances and any other
exceptions relating to the boundaries of the Project Site, encroachments and
matters disclosed or discoverable by a survey or inspection as are reasonably
acceptable to Administrative Agent and containing no exception for mechanics’
or materialmen’s liens.

 

(ff)                                Administrative Agent shall have received
an as-built ALTA/ASCM survey of the Project Site with respect to the Stetson I
Project and an ALTA/ASCM survey of the Project Site with respect to the Stetson
II Project, in each case, satisfactory in form and substance to Administrative
Agent and Title Insurer, current within thirty (30) days of the Closing Date
and certified to Administrative Agent and Title Insurer by a licensed surveyor
in form satisfactory to Administrative Agent.

 

(gg)                          Each Project Company is an “exempt
wholesale generator” within the meaning of Section 1262(6) of PUHCA
and Borrower shall have delivered to Administrative Agent, (i) in respect
of the Stetson I Project, the FERC notice Acknowledging Effectiveness of
Evergreen Wind Power V, LLC’s Exempt Wholesale Generator Status, dated May 27,
2009, and the FERC Order Granting Market-Based Rate Authority to Evergreen Wind
Power V, LLC, dated January 15, 2009; and (ii) in respect of the
Stetson II Project, a copy of the Notice of Self-Certification of Exempt
Wholesale Generator Status with respect to Stetson Wind II, LLC, properly filed
with the FERC and any responsive orders issued by FERC or the FERC staff,
acting under delegated authority, copies of all applications for market-based
rate authorization with respect to Stetson Wind II, LLC, properly filed with
FERC pursuant to Section 205 of the FPA, and any responsive orders issued
by FERC, or the FERC staff acting under delegated authority, granting such
authorizations.

 

(hh)                          Borrower shall have delivered to
Administrative Agent satisfactory evidence of the establishment of the
Collateral Accounts.  All Reserve
Accounts have been fully funded as required under Section 6 of the Account
Control Agreement.

 

(ii)                                  Borrower shall have delivered to
Administrative Agent a certificate of Borrower or other evidence that the
output of the Projects will qualify for RECs.

 

38

 

(jj)           Receipt of all fees under the Fee Side Agreement by
all applicable Persons thereunder.

 

(kk)         No event, condition or circumstance that could be
reasonably expected to have a Material Adverse Effect shall have occurred and
be continuing.

 

(ll)           Borrower shall have deposited Project Revenues from
the Stetson I Project (i) in an amount equal to $3,000,000 into the
Stetson I Holding Account, and (ii) all remaining Project Revenues into
the Revenue Account, in each case prior to the Closing Date.

 

(mm)       Borrower shall have delivered evidence reasonably
satisfactory to Administrative Agent that all work that has been performed at
the Stetson II Project by the Closing Date requiring inspection by any
Governmental Authorities having jurisdiction has been duly inspected and
approved by such authorities and that any certificates or notices required to
be issued in connection therewith have been issued by such Governmental
Authorities, that all parties performing such work have been or will be paid
for such work, and that no mechanics’ and/or materialmen’s liens or applications
therefor have been filed and either lien waivers have been obtained or all
applicable filing periods for any such mechanics’ and/or materialmen’s liens
have expired.

 

5.2                                 Conditions Precedent to each Borrowing.

 

The
obligation of the Lenders to effect or permit any Borrowing (including the
first Borrowing of a Term Loan and the first Borrowing of a Bridge Loan) is
subject to the prior satisfaction by Borrower of each of the following
conditions to the satisfaction of Administrative Agent, Issuing Bank and the
Lenders (unless waived in writing by Administrative Agent with consent of all
Lenders and the Issuing Bank):

 

(a)                                  Borrower shall have requested the Term
Loans and/or Bridge Loans pursuant to a Notice of Borrowing delivered to
Administrative Agent in accordance with Section 2.5.

 

(b)                                 [Intentionally Omitted].

 

(c)                                  Each representation and warranty set
forth in Article 6 is true and correct in all material respects on
such date (unless such representation or warranty relates solely to an earlier
date, in which case it shall have been true and correct in all material
respects as of such earlier date).

 

(d)                                 No Event of Default or Inchoate Default
with respect to any Affiliated Participant has occurred and is continuing or
will result from the funding of the Loans and to the knowledge of Borrower, no
Inchoate Default with respect to any Major Project Participant that is not an
Affiliated Participant has occurred and is continuing or will result from the
funding of the Loans.

 

39

 

(e)                                  Administrative Agent shall have received (i) a
continuation report and an endorsement to the Title Policy with respect
to the Stetson II Project to the date of such Borrowing in the form reasonably
approved by the Administrative Agent conforming to the pending disbursement
requirements set forth in Exhibit D-5 and setting forth no
additional exceptions (including without limitation survey exceptions for the
Stetson II Project) except those approved by the Administrative Agent, and (ii) a
continuation report and endorsement to each Title Policy with respect to the
Stetson I Project and the Transmission Line Real Property Interests to the date
of such Borrowing in the form reasonably approved by the Administrative Agent,
which continuation report and endorsements shall: (A) update the date of
each Title Policy and all endorsements attached thereto to the date of such
Borrowing, (B) show no additional exceptions to each Title Policy
(including without limitation survey exceptions for the Stetson I Project or
the Transmission Line Real Property Interest) except those approved by the
Administrative Agent, and (C) shall state the amount of the Loans advanced
to date.

 

(f)                                    Except as set forth in Exhibit H-5
and Exhibit H-6, no material action, suit, proceeding,
Environmental Claim or investigation shall have been instituted or, to the
knowledge of Borrower, threatened against Borrower, any Affiliated Participant
or the Project, which action, suit, proceeding, Environmental Claim or
investigation could reasonably be expected to have a Material Adverse Effect.

 

(g)                                 Each Financing Document, Material Project
Document and Applicable Permit shall be in full force and effect in accordance
with its terms and, to the knowledge of Borrower, no material defaults shall
have occurred thereunder.

 

(h)                                 No event, condition or circumstance that
could be reasonably expected to have a Material Adverse Effect shall have
occurred and be continuing.

 

ARTICLE
6.

REPRESENTATIONS AND WARRANTIES

 

Borrower
makes the following representations and warranties to and in favor of
Administrative Agent, Issuing Bank and the Lenders as of the Closing Date.

 

6.1                                 Organization.

 

(a)                                  Borrower (i) is a limited liability
company duly formed, validly existing and in good standing under the laws of
the State of Delaware and in each other jurisdiction where the character of its
properties or the nature of its activities makes such qualification
necessary.  Borrower has all requisite
limited liability company power and authority to own or hold under lease and/or
easement and operate the property it purports to own or hold under lease and/or
easement and to carry on its business as now being conducted and as proposed to
be conducted under the Operative Documents in respect of the Project and Borrower
has the requisite limited liability power and authority to execute, deliver and
perform its 

 

40

 

obligations under
each Operative Document to which it is a party. 
The Member is the sole member of Borrower holding all of the issued and
outstanding membership interests in Borrower.

 

(b)                                 Each Affiliated Participant (i) is
duly formed and validly existing and in good standing under the laws of the
State of its organization with all requisite organizational or other power and
authority under the laws of such State to enter into the Operative Documents to
which it is a party and to perform its obligations thereunder and to consummate
the transactions contemplated thereby; (ii) is duly qualified, authorized to
do business and in good standing in such State and each other material
jurisdiction where the character of its properties or the nature of its
activities makes such qualification necessary, except where the failure to do
so could not reasonably be expected to have a Material Adverse Effect; (iii) has
the requisite limited liability company or corporate power (A) to carry on
its business as now being conducted and as proposed to be conducted by it, (B) to
execute, deliver and perform its obligations under each Operative Document to
which it is a party, in its individual capacity, and (C) to provide
guaranties and grant the Liens and security interests provided for in the
Financing Documents to which it is a party; and (iv) has the requisite
limited liability company or corporate authority to execute, deliver and
perform its obligations under each Operative Document to which it is a party.

 

6.2                                 Authorization; No Conflict.

 

Borrower
and each Affiliated Participant has duly authorized, executed and delivered each
Operative Document to which Borrower or such Affiliated Participant is a party
(or such Operative Documents have been duly and validly assigned to Borrower
and Borrower has assumed the obligations thereunder by operation of law or
otherwise), and none of the execution and delivery thereof by Borrower or such
Affiliated Participant, the consummation of the transactions contemplated
thereby or the compliance with the terms thereof or performance of its
obligations thereunder (i) does or will contravene (A) the Borrower
LLC Agreement or any organizational document of such Affiliated Participant or (B) any
other Legal Requirement applicable to or binding on Borrower, such Affiliated
Participant or any of their respective properties, except for any such contravention
of a Legal Requirement that could not be reasonably expected to have a Material
Adverse Effect; (ii) does or will contravene or result in any material
breach of or constitute any material default under, or result in or require the
creation of any Lien (other than Permitted Liens) upon any of their respective
properties under, any agreement or instrument to which Borrower or any
Affiliated Participant is a party or by which any of them or any of their
respective properties may be bound or affected; or (iii) does or will
require the consent or approval of any Person, which has not already been
obtained.

 

6.3                                 Enforceability.

 

Assuming
the due authorization, execution and delivery thereof by each other party
thereto, each Operative Document to which Borrower or any Affiliated
Participant is a party is a legal, valid and binding obligation of Borrower or
such Affiliated Participant, enforceable against Borrower or such Affiliated
Participant in accordance with its terms, except 

 

41

 

to the extent that enforceability may be limited by
applicable bankruptcy, insolvency, moratorium, reorganization or other similar
laws affecting the enforcement of creditors’ rights and subject to general
equitable principles (regardless of whether such enforceability is considered
in a proceeding in equity or at law). 
None of the Operative Documents to which Borrower or any Affiliated
Participant is a party has been amended or modified except in accordance with
this Financing Agreement or as disclosed. 
Each Operative Document has been duly executed and delivered by Borrower
and each Affiliated Participant, and to the knowledge of Borrower, by each
other party thereto.  Each Operative
Document (other than any Additional Project Documents) is in effect as of the
Closing Date.  As of each date referenced
in Section 7.4(b), each Operative Document remains in effect except
for those Operative Documents that have expired in accordance with their
respective terms as of such date.

 

6.4                                 ERISA.

 

There
are no ERISA Plans for Borrower, Member or the Project Companies or ERISA Plans
that provide benefits to any employee of Borrower, Member or the Project
Companies, and none of Borrower, Member or any Project Company has maintained,
contributed, or been obligated to contribute to any ERISA Plan at any time
within the five (5) years preceding the Closing Date.

 

6.5                                 Taxes.

 

(a)                                  Each of Borrower, Member and each Project
Company has filed, or has caused to be filed, all federal, state, local and foreign
tax returns that it is required to file, has paid or has caused to be paid all
taxes it is required to pay to the extent due (other than those taxes that it
is contesting in good faith and by appropriate proceedings in accordance with Section 7.14).

 

(b)                                 For United
States federal and Maine income tax purposes, Member and Evergreen Wind Power
V, LLC each have elected to be treated as a corporation, and Borrower and
Stetson Wind II, LLC will each be treated as a disregarded entity.  Neither the execution and delivery of the
Operative Documents nor the consummation of any of the transactions
contemplated by the Operative Documents will affect such status of Member,
Borrower or any Project Company.  Member,
Borrower and each Project Company has made such elections and taken such other
actions, and agrees and warrants that it shall at all times make such elections
and take such other actions, as would permit Member, Borrower and each Project
Company, as applicable, to maintain the status as a disregarded entity or
corporation, as applicable, for U.S. Federal and Maine income tax purposes, to
the maximum extent permitted by applicable Governmental Rules.

 

6.6                                 Business, Debt, Contracts, Etc.

 

Each
of Borrower and each Project Company has not conducted any business other than
the business contemplated by the Operative Documents.  Except as reflected in the financial
statements delivered to Administrative Agent pursuant to Article 5,
none of Borrower nor any Project Company has any outstanding Debt or other
material liabilities other than

 

42

 

pursuant to or allowed by the Operative
Documents.  Except as otherwise
disclosed, neither Borrower nor any Project Company is a party to or bound by
any material contract obligating Borrower or any Project Company, as
applicable, to pay more than $100,000 in any fiscal year or $250,000 in the
aggregate over the term of such contract other than the Operative Documents and
the Financing Documents to which it is a party.

 

6.7                                 Private Offering by Borrower.

 

Assuming
the Lenders are acquiring the Notes for investment purposes only, and not for
purposes of resale or distribution thereof except for assignments or
participations as provided in Sections 12.14 and 12.15, no
registration of the Notes under the Securities Act of 1933, as amended, or
under the securities laws of any applicable jurisdiction is required in
connection with the offering, issuance and sale of the Notes hereunder.

 

6.8                                 Filings.

 

No
filing, recording, re-filing or rerecording other than those listed on Exhibit E-6
is necessary to perfect and maintain the perfection and priority of the
interest, title or Liens referred to in Section 6.21 relating to
personal property set forth in the Member Pledge and Security Agreement,
Borrower Pledge and Security Agreement and each Guaranty and Security Agreement,
and on or prior to the Closing Date all such filings or recordings (other than
those that are required to be made only at a later date, which are so indicated
on Exhibit E-6) will have been made.  No filing or recording other than the
recording of the Mortgage Documents in the office of the clerk of Washington
County and Penobscot County of the State of Maine is necessary to create Liens
on the real property interests referred to in Section 6.21, and on
or promptly after the Closing Date such filing will be made.

 

6.9                                 Investment Company, Holding Company Act.

 

None
of Borrower, the Member or any Affiliated Participant that is a party to an
Operative Document is an investment company or a company controlled by an
investment company within the meaning of the Investment Company Act of 1940, as
amended.  Borrower and Member have
made any required filing with FERC, pursuant to PUHCA.  No Affiliate of Borrower (including the Member) is
subject to, or not exempt from, regulation under PUHCA other than regulation
under PUHCA that would not reasonably be expected to constitute a Material
Adverse Effect.  Each Project Company
satisfies the requirements of Section 1262(6) of PUHCA and the
regulations thereunder to be an “exempt wholesale generator.”

 

6.10                           Governmental Regulation.

 

Except
as set forth in Exhibit H-3, neither Borrower nor the Project
Companies will be deemed by MPUC to be subject to financial, organizational or
rate regulation as a “public utility” under any applicable Maine law or under
any other state or other law, rule or regulation.

 

6.11                           Margin Stock.

 

Borrower
is not engaged principally, or as one of its principal activities, in the
business of extending credit for the purpose of “buying,” “carrying” or “purchasing”
margin 

 

43

 

stock (as defined or used in Regulation T, U or X of
the Federal Reserve Board), and no part of the proceeds of the Loans or the
Project Revenues will be used by Borrower to buy, purchase or carry any such
margin stock or to extend credit to others for the purpose of buying,
purchasing or carrying any such margin stock or otherwise in violation of
Regulation T, U or X of the Federal Reserve Board.

 

6.12                           Financial Statements.

 

The
consolidated financial statements of Borrower delivered pursuant to Section 5.1(bb)
fairly present, in all material respects, the financial position of Borrower
and the Project Companies, on a combined basis, as of the respective dates
thereof and (except as specified in Section 5.1(bb)) the results of
operations and cash flows of Borrower and each Project Company, on a combined
basis, for each of the periods then ended, subject, in the case of any such
unaudited financial statements, to changes resulting from audit and normal
year-end adjustments.  Except for
obligations under the Operative Documents to which it is a party, none of
Borrower nor any Project Company has (and will not following the funding of the
Loans have) any contingent obligations, unmatured liabilities, contingent
liability or liability for taxes, long-term lease or forward or long-term
commitment that are not reflected in the foregoing financial statements or the
notes thereto and which in any such case are material in relation to the
business, operations, properties, assets, financial condition or prospects of
Borrower and the Project Companies.

 

6.13                           Partnerships and Joint Ventures.

 

Neither
Borrower nor any Project Company is a general partner or a limited partner in
any general or limited partnership, a joint venturer in any joint venture or a
member in any limited liability company (except for Borrower’s ownership of the
Project Companies).  Borrower’s sole
subsidiaries are the Project Companies. 
Neither Project Company has any subsidiaries.

 

6.14                           Existing Defaults.

 

Neither
Borrower nor any Project Company is in default under any material term of any
Operative Document or any other agreement or instrument relating to any
obligation of Borrower and each Project Company for or with respect to borrowed
money, as applicable.

 

6.15                           No Default.

 

No
Event of Default or Inchoate Default with respect to any Affiliated Participant
has occurred and is continuing.

 

6.16                           Permits.

 

(a)                                  Except as set forth in Exhibit H-2A,
there are no Permits under existing Legal Requirements, including all Environmental
Laws, applicable to Borrower, each Project Company and the Project as it is
currently designed that are or will become Applicable Permits other than the
Permits described in Exhibit H-2B (including all Permits needed to
enable the Borrower and each Project Company 

 

44

 

to execute,
deliver and perform its obligations under the Financing Documents and each
Project Document).  Each Permit described
in Part I of Exhibit H-2B is in full force and effect and is
not subject to any current legal proceeding or to any unsatisfied condition
that may allow material modification or revocation or that could reasonably be
expected to have a Material Adverse Effect, and all applicable appeal periods
with respect thereto have expired.  None
of the Permits described in Part I of Exhibit H-2B has been
modified, amended or supplemented in a manner that could be reasonably expected
to have a Material Adverse Effect. 
Except as set forth on Exhibit H-6, Borrower and each
Project Company is in compliance in all material respects with all Applicable
Permits set forth in Part I of  Exhibit H-2B.

 

(b)                                 Each Permit described in Part II of Exhibit H-2B
is of a type that is routinely granted on application and Borrower believes that
each Permit so indicated on Part II of Exhibit H-2B will be
obtained before it becomes an Applicable Permit.

 

(c)                                  To Borrower’s knowledge, each other Major
Project Participant is in compliance in all material respects with its
respective applicable third party Permits, each other Major Project Participant
possesses all Permits, licenses, franchises, patents, copyrights, trademarks
and trade names, or rights thereto necessary to perform its duties under the
Operative Documents to which it is a party, and such Person is not in violation
of any valid rights of others with respect to any of the foregoing that could
be reasonably expected to have a Material Adverse Effect.

 

(d)                                 Neither Borrower nor any Project Company
has entered into any stipulations with any Governmental Authority issuing any
Applicable Permit(s) which are not expressly set forth in such Permit(s).

 

6.17                           Offices, Location of Collateral.

 

(a)                                  The chief executive office, if it has
more than one place of business, or place of business, if it has only one place
of business (as such terms are used in Section 9-307 of the Uniform
Commercial Code as in effect in each State where the Collateral is located and
the State of New York from time to time) of Borrower and each Project Company
is set forth in Exhibit H-7 hereto (as such Exhibit may be
supplemented from time to time by 30 days’ notice to Administrative Agent).

 

(b)                                 All of the tangible Collateral (excluding
the Collateral Accounts, the membership interests in the Borrower and each
Project Company and general intangibles and other possessory security
interests) and the Mortgaged Property is, or when acquired and installed
pursuant to the Project Documents will be, located at or on the Project Site or
on the real property the subject of the Transmission Line Real Property
Interests.

 

45

 

6.18                           No Material Adverse Effect

 

To
Borrower’s knowledge, since September 30, 2009 no event, condition or
circumstance that could reasonably be expected to have a Material Adverse
Effect has occurred or is continuing.

 

6.19                           Environmental Matters.

 

(a)                                  Except as set forth in Exhibit H-6,
none of Borrower, Member or any Project Company (the “Subject Companies”)
is or has in the past been in violation of any Environmental Law which
violation could reasonably be expected to give rise to a material liability to
any of the Subject Companies or have a Material Adverse Effect.

 

(b)                                 Except as set forth in Exhibit H-6,
(i) the Subject Companies have obtained all material Permits required
under any Environmental Laws for the construction and operation of the
Projects, or the occupation and operation of the Project Site, the Improvements
or other Mortgaged Property, (ii) the Subject Companies and the Projects
comply and have complied with all such material Permits in such a manner that
no Material Adverse Effect has been caused or created and (iii) no actions
are pending, or to the knowledge of Borrower, threatened, to revoke, terminate,
cancel, modify, amend, appeal or otherwise challenge any such Permits.

 

(c)                                  Except as set forth in Exhibit H-6,
none of the Subject Companies nor, to the knowledge of Borrower, any other
Person has used, Released, discharged, generated, manufactured, produced,
stored, or disposed of, in, on, under, or about the Project Site, the
Improvements or other Mortgaged Property, or transported, arranged or permitted
the disposal thereto or therefrom, of any Hazardous Substances that could
reasonably be expected to subject Administrative Agent, Issuing Bank, the
Lenders or the Subject Companies to a material liability under any
Environmental Law or that could reasonably be expected to have a Material
Adverse Effect.

 

(d)                                 Except as set forth in Exhibit H-6,
there are no aboveground or, to Borrower’s knowledge, underground tanks,
whether operative or temporarily or permanently closed, located on the Project
Site, the Improvements or other Mortgaged Property, the presence of which could
reasonably be expected to have a Material Adverse Effect.

 

(e)                                  Except as set forth in Exhibit H-6,
there are no Hazardous Substances used, stored or present at, on or near the
Project Site, the Improvements or other Mortgaged Property that could
reasonably be expected to give rise to a material liability of any of the
Subject Companies under any Environmental Law or that could reasonably be
expected to have a Material Adverse Effect.

 

(f)                                    Except as set forth in Exhibit H-6,
there is or has been no condition, circumstance, action, activity or event that
could reasonably form the basis of any material 

 

46

 

violation of any
Environmental Law or give rise to any material liability of any of the Subject
Companies under any Environmental Law that could reasonably be expected to have
a Material Adverse Effect.

 

(g)                                 Except as set forth in Exhibit H-6,
there is no Environmental Claim pending or, to the knowledge of Borrower,
threatened with respect to the Project Site, the Improvements or other
Mortgaged Property or any of the Subject Companies with respect to the
Projects, which Environmental Claim could be reasonably expected to have a
Material Adverse Effect.

 

(h)                                 Borrower has provided to Administrative
Agent all reports and other documents relating to environmental investigations
and environmental matters concerning the Projects in Borrower’s possession or
control.

 

6.20                           Litigation.

 

(a)                                  Except as set forth on Exhibit H-5
or Exhibit H-6, as applicable, there are no pending or, to Borrower’s
knowledge, actions threatened in writing against Borrower, Member or any
Project Company or proceedings of any kind, including actions or proceedings of
or before any Governmental Authority or any Environmental Claims to which
Borrower, Member or any Project Company is a party or is subject, or by which
any of them or any of their properties are bound that, if adversely determined
against Borrower, Member or any Project Company could be reasonably expected to
have a Material Adverse Effect.

 

(b)                                 Except as set forth on Exhibit H-5,
there are no pending or, to Borrower’s knowledge, actions threatened in writing
against Borrower, Member or any Project Company or proceedings of any kind,
including any actions, complaints or proceedings of, or before, any
Governmental Authority or any Environmental Claims to which the Project or any
of the Affiliated Participants is a party or is subject, or by which any of
them or any of their properties or the Project are bound that, if adversely
determined against any such Affiliated Participants or the Project, could be
reasonably expected to have a Material Adverse Effect.

 

6.21                           Title and Liens.

 

(a)                                  Borrower or each Project Company, as
applicable, has good and marketable title to all personal property comprising
the Projects, a good and marketable, undivided leasehold estate under the
Stetson I Real Property Interests and the Stetson II Real Property Interests
that are leases and a good and marketable, undivided easement estate under the
Transmission Line Real Property Interests and the Stetson II Real Property
Interests that are easements.  Each of
the Stetson I Real Property Interests, the Stetson II Real Property Interests
and the Transmission Line Real Property Interests are free and clear of all
Liens, encumbrances or other exceptions to title other than Permitted
Liens.  No written notice has been given
to Borrower or any Project Company by any lessor or easement grantor under any
of the Stetson I Real Property Interests, Stetson II 

 

47

 

Real Property
Interests and the Transmission Line Real Property Interests as to any rights of
third parties that are not disclosed in the Title Policy.  To the knowledge of Borrower, except as
disclosed in the Title Policy, each lessor or easement grantor under each Real
Property Agreement has a good and marketable fee simple estate in the
respective portion of the Project Site, in each case free and clear of all
Liens, encumbrances or other exceptions to title other than Permitted
Liens.  Subject to the provisions of the
Mortgage Documents, the Lien of the Mortgage Documents constitutes a valid and
subsisting first priority Lien of record on all the Mortgaged Property
described in the Mortgage Documents, and the Lien of the Collateral Documents
constitutes a first priority perfected security interest in all of the personal
property included in the Collateral described in the Collateral Documents,
subject to no other Liens except, in the case of Collateral not constituting
pledged shares, member interests or other ownership interests in any Person, Permitted
Liens.

 

(b)                                 None of the Permitted Liens:

 

(i)                                     Materially interferes with the completion
or operation of the Projects on the Project Site or, unless otherwise obtained,
requires any consents, approvals, permits, easements, licenses or other rights from
or notices to the parties thereto for the completion or operation of the
Projects or for the granting of the security contemplated by the Collateral
Documents;

 

(ii)                                  provides for any rights in favor of the
parties thereto that could materially interfere with the realization of the
security granted to the Secured Parties by the Collateral Documents.

 

6.22                           Utilities.

 

All
utility services necessary for the completion and operation of the Projects for
its intended purposes are available at the Project Site or will be so available
when required.

 

6.23                           Roads/Feeder Lines.

 

(a)                                  All roads necessary for the completion
and full utilization of the Projects for their intended purposes under the
Project Documents have either been completed or the necessary rights of way
therefor have been acquired.

 

(b)                                 All necessary easements, rights of way,
agreements and other rights for the completion, interconnection and utilization
of the feeder lines for the Projects have been acquired.

 

(c)                                  All of the easements, rights of way,
agreements and other rights referred to in paragraphs (a) and (b) are
good, valid and subsisting and are held by Borrower or the Project Companies,
as applicable, with a good and marketable title thereto free and clear of all
Liens, encumbrances or other exceptions to title other than Permitted Liens.

 

48

 

6.24                           Sufficiency of Project Documents.

 

(a)                                  Other than those that can be reasonably
expected to be commercially available when and as required, the services to be
performed, the materials to be supplied and the real property interests and the
other rights granted to Borrower and the Project Companies pursuant to the
Project Documents:

 

(i)                                     comprise all of the property interests
necessary to secure any right material to the completion, operation and
maintenance of the Projects in accordance with all Legal Requirements, all
without reference to any proprietary information not owned by or available to
Borrower or any Project Company under the Project Documents;

 

(ii)                                  are sufficient to enable each Project to
be located, completed, operated and routinely maintained on the respective
Project Site; and

 

(iii)                               provide adequate ingress and egress for
any reasonable purpose in connection with the completion, operation and routine
maintenance of each Project under the Project Documents.

 

(b)                                 There are no material services, materials
or rights required for the completion, operation or routine maintenance of the
Projects in accordance with the Energy Hedge, Turbine Supply Agreement, BOP
Agreement, the Turbine Service Agreement, the O&M Service Agreement, the
Plans and Specifications and the Base Case Project Projections other than those
available under the Project Documents or that can reasonably be expected to be
commercially available at the Project Site on commercially reasonable
terms.  The Material Project Documents
are the only material agreements in effect as of the Closing Date for the
completion and operation of the Projects.

 

6.25                           Project Documents.

 

Except
as otherwise disclosed in writing to Administrative Agent, to Borrower’s
knowledge, no default by any Major Project Participant to a Material Project
Document to which it is a party has occurred and is continuing, which default
could be reasonably expected to have a Material Adverse Effect.

 

6.26                           Representations and Warranties of
Affiliated Participants.

 

The
representations and warranties of the Affiliated Participants contained in the
Operative Documents other than this Financing Agreement are true and correct in
all material respects as made therein as of the time made or deemed to have
been made.

 

6.27                           EWG.

 

Each Project Company
qualifies as an EWG.

 

49

 

6.28                           Labor Disputes and Acts of God.

 

Neither
the business nor the properties of each of Borrower and each Project Company
or, to the knowledge of Borrower, any of the other Major Project Participants
are affected by any fire, explosion, accident, strike, lockout or other labor
dispute, drought, storm, hail, earthquake, embargo, act of God or of the public
enemy, or other casualty (whether or not covered by insurance), that could be
reasonably expected to have a Material Adverse Effect.

 

6.29                           Disclosure.

 

Neither
this Financing Agreement nor any other Financing Document or certificate
furnished to Administrative Agent, by or, to the knowledge of Borrower, on
behalf of Borrower, in connection with the transactions contemplated by this
Financing Agreement or the Project Documents or the design, description,
testing or operation of the Project, contains any untrue statement of a
material fact or omits to state any material fact necessary in order to make
statements made therein (in light of the circumstances in which they were made)
not misleading.  As of the Closing Date,
there is no fact known to Borrower which Borrower has not disclosed to
Administrative Agent or the Independent Consultants that has or could be
reasonably expected to have a Material Adverse Effect which has not been set
forth in this Financing Agreement or in the other documents, certificates and
written statements furnished to Administrative Agent and/or the Independent
Consultants, by or on behalf of Borrower in connection with the Projects.  No material adverse change has occurred with
respect to the financial condition, properties or business of any Affiliated
Participant that could be reasonably expected to have a Material Adverse
Effect.  To the knowledge of Borrower, no
material adverse change has occurred with respect to the financial condition,
properties or business of any Major Project Participant that is not an
Affiliated Participant that constitutes a Material Adverse Effect.

 

6.30                           Base Case Project Projections.

 

The
Base Case Project Projections (a) are based on reasonable assumptions as
to all legal and factual matters material to the estimates set forth therein, (b) are
consistent, in all material respects, with the provisions of the Project
Documents, and (c) to Borrower’s knowledge, accurately represent the
anticipated financial performance of the Projects based on the assumptions set
forth in the Base Case Project Projections.

 

6.31                           Collateral.

 

The
security interests in the Collateral granted to Security Agent, for the benefit
of the Secured Parties, pursuant to the Collateral Documents (a) constitute
as to personal property included in the Collateral and, with respect to
subsequently acquired personal property included in the Collateral, will
constitute, a perfected security interest under the UCC to the extent a
security interest can be perfected by filing or, in the case of the Collateral
Accounts and the Pledged Equity Interests (the Pledged Equity Interests being “certificated securities” as defined in Article 8 of the UCC), by control
or possession by or on behalf of the secured party; and (b) are, and, with
respect to such subsequently acquired property, will be, as to Collateral
perfected under the UCC as aforesaid, superior and prior to the rights of all
third Persons now existing or hereafter arising whether by way of mortgage, lien,
security interests, encumbrance, 

 

50

 

assignment or otherwise, except, in the case of
Collateral not constituting Pledged Equity Interests, for Permitted Liens.  Except to the extent possession of portions
of such Collateral is required for perfection, all such action as is necessary
has been taken to establish and perfect for the benefit of Security Agent
rights in and to such Collateral to the extent Security Agent’s security
interest can be perfected by recording, filing, registration, giving of notice
or other similar action.  No filing,
recordation, re-filing or re-recording other than those listed on Exhibit E-6
(as the same may be supplemented from time to time) is necessary to maintain
the perfection of the security interest in or Liens on the Collateral
comprising personal property set forth in the Member Pledge and Security
Agreement, the Borrower Pledge and Security Agreement and each Guaranty and
Security Agreement, and all such filings will have been made to the extent
Security Agent’s security interest (for the benefit of the Secured Parties) can
be perfected by filing.  Security Agent
has received all original certificates representing all issued and outstanding
membership interests in Borrower and each Project Company.  Borrower has taken the steps necessary
pursuant to the Account Control Agreement to give “control” (as that term is
defined in Section 8-106(d) of the UCC of New York) to Security Agent
over the Collateral Accounts.

 

6.32                           Intellectual Property.

 

Borrower
owns or has the right to use all material patents, trademarks, service marks,
trade names, copyrights, licenses, know-how and other rights, which are
necessary for the completion and operation of the Projects.  Neither Borrower nor any Project Company has
received notice that (a) any material product, process, method, substance,
part or other material presently contemplated to be sold by or employed by
Borrower or any Project Company, as applicable, in connection with the Projects
will infringe in any material manner upon any patent, trademark, service mark,
trade name, copyright, license or other right owned by any other Person; (b) there
is any pending or threatened claim or litigation against or affecting Borrower
or any Project Company, as applicable, contesting its right to sell or use any
such product, process, method, substance, part or other material; or (c) there
is, or there is pending or proposed, any patent, invention, device, application
or principle or any statute, law, rule, regulation, standard or code relating
to intellectual property that could reasonably be expected to have a Material
Adverse Effect.

 

6.33                           Proper Subdivision.

 

The
Project Site does not have to be subdivided from larger tracts of land in order
to be made subject to a Lien without regard to any other real property, and may
be mortgaged, conveyed, made subject to a Lien subject to the extent and
limitations of Borrower’s and each Project Company’s, as applicable,  rights, title and interest therein and
thereto.

 

6.34                           Land Not in Flood Zone.

 

Except
as reflected on the as-built ALTA/ACSM survey delivered by Borrower pursuant to
Section 5.1(ff), to Borrower’s knowledge, none of the Collateral at
the Project Site includes improved real estate that is located in an area that
has been identified by the Director of the Federal Emergency Management Agency
as an area having special flood hazards and in 

 

51

 

which flood insurance has been made available under
the National Flood Insurance Act of 1968, as amended.

 

6.35                           Insurance.

 

All
insurance policies required to be maintained by Borrower and each Project
Company, as applicable, under Section 7.20    and
represented by insurance policies, binders, commitments or certificates signed
by the insurer or a broker authorized to bind the insurer provided to
Administrative Agent pursuant to Section 5.1    (w) are
in full force and effect and neither Borrower nor any Project Company has
received any notice of cancellation from the relevant insurers.

 

6.36                           Bankruptcy Event.

 

No
Bankruptcy Event has occurred and is continuing with respect to Borrower, the
Member or any Affiliated Participant or, to the knowledge of Borrower, with
respect to any Major Project Participant.

 

6.37                           Construction of Projects.

 

To the
knowledge of Borrower, all work done on the Projects has been done in a good
and workmanlike manner in all material respects and in accordance with the
Turbine Supply Agreement, BOP Agreement and Prudent Utility Practices in all
material respects.  Neither Borrower nor
any Project Company has, except as permitted by the Project Documents,
permitted the use of any temporary components or used parts in the construction
of the Projects.

 

6.38                           Construction Contracts.

 

Borrower
and each Project Company has paid and discharged or caused to be paid or
discharged all material liabilities and obligations for payments of any amounts
required to be paid to the Turbine Supplier and the BOP Contractor as of the
date hereof.

 

6.39                           Warranty Period.

 

The
Warranty Period (as defined in the Turbine Supply Agreement) has commenced with
respect to the Turbines.  Borrower and
each Project Company, as applicable, has paid and discharged or caused to be
paid or discharged all material liabilities and obligations due and payable as
of the Closing Date, if any, to Turbine Supplier under the Turbine Supply
Agreement.

 

6.40                           OFAC and Related Matters.

 

(a)                                  Except to the extent any violation would
be due solely to the identity or nationality of one or more parties hereto
other than the Sponsor, Borrower, the Member or any Project Company,

 

(i)                                     None of the transactions contemplated
hereby will violate (w) the United States Trading with the Enemy Act, as
amended, (x) any of the foreign

 

52

 

assets control
regulations of the United States Treasury Department (31 C.F.R., Subtitle
B, Chapter V, as amended) or any enabling legislation or executive order
relating thereto (as amended, the “Department of Treasury Rule”), (y) Executive
Order No. 13,224, 66 Fed Reg 49,079 (2001), issued by the President of the
United States (Executive Order Blocking Property and Prohibiting Transactions
with Persons Who Commit, Threaten to Commit or Support Terrorism) (as amended,
the  “Terrorism Order”)) or (z) the
Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism (USA PATRIOT ACT) Act of 2001, Public Law
107-56 (October 26, 2001), as amended (the “Patriot Act”).

 

(ii)           None of the Member, Sponsor, the Borrower nor any
Project Company is a “blocked person” as described in Section 1 of the
Terrorism Order or a Person described in the Department of the Treasury Rule.

 

(iii)          None of the Member, Sponsor, the Borrower nor any
Project Company knowingly engages in any dealings or transactions, or is
otherwise associated, with any such blocked person or any such Person.

 

6.41                           OFAC Restrictions.

 

Neither the
Borrower nor any Project Company, nor, to the Borrower’s knowledge, any Person
holding any legal or beneficial interest whatsoever in the Borrower or any
Project Company (whether directly or indirectly): (i) appear on the OFAC
SDN List; (ii) are included in, owned by, controlled by, acting for or on
behalf of, providing assistance, support, sponsorship, or services of any kind
to, or otherwise associated with any of the Persons referred to or described in
the OFAC SDN List; or (iii) have conducted business with or engaged in any
transaction with any Person named on any of the OFAC SDN List or any Person
included in, owned by, controlled by, acting for or on behalf of, providing
assistance, support, sponsorship, or services of any kind to, or otherwise
associated with any of the Persons referred to or described in the OFAC SDN
List.

 

6.42                           Line Outage Costs.

 

Neither the Borrower
nor any Project Company incurred any line outage costs under and pursuant to
the Interconnection Agreement.

 

ARTICLE
7.

COVENANTS OF BORROWER

 

Borrower
covenants and agrees that until all of the Loans and Obligations have been paid
and performed in full and as long as Commitments remain in effect, Borrower
shall, unless Administrative Agent (on instructions of the Majority Lenders and
Issuing Bank) waives compliance in writing, perform all of the covenants set
forth in this Article 7:

 

53

 

7.1                                 Use of Loan Proceeds and Project Revenues.

 

(a)                                  Proceeds of Loans; Letter of Credit. 
Unless otherwise applied by Administrative Agent pursuant to this
Financing Agreement, proceeds of the Loans shall be applied by Security Agent
and the Securities Intermediary in the order and manner set forth in more
detail in Article 9 and the Account Control Agreement.  The proceeds of the Term Loans and the Bridge
Loans shall be used solely for (i) the payment in full to the lenders
under the Existing Stetson I Facilities, (ii) the payment in full to the
lenders of the loans corresponding to each Stetson II Project Turbine under the
Stetson II Turbine Supply Loan, (iii) payment of construction costs in
accordance with the Construction Budget and Schedule, and (iv) payment of
transaction costs, fees and expenses related to this Financing Agreement.  The Letters of Credit and the proceeds of the
LC Loans shall be used solely in the manner set forth in this Financing
Agreement.

 

(b)                                 Revenues.  Unless otherwise applied by Administrative
Agent pursuant to this Financing Agreement, Borrower shall (and Borrower shall
cause each Project Company to) deposit all Project Revenues in the Revenue
Account pursuant to Article 9 hereof and the Account Control
Agreement, for application solely for the purposes and in the order and manner
provided in Article 9 hereof and the Account Control Agreement.

 

7.2                                 Payment.

 

Borrower
shall promptly pay all amounts due under this Financing Agreement and the other
Financing Documents to which it is a party according to the terms hereof and
thereof.

 

7.3                                 Notices and Deliveries.

 

Borrower
shall promptly upon acquiring notice or giving notice, as the case may be, or
obtaining knowledge thereof, give written notice to Administrative Agent of:

 

(a)                                  Any litigation pending or, to the
knowledge of Borrower, threatened against Borrower or any Project Company
involving claims against Borrower, any Project Company or the Project in excess
of $200,000 in the aggregate in any fiscal year of Borrower or any Project
Company, as applicable, or involving any material injunctive, declaratory or
other equitable relief, such notice to include copies of all papers filed in
such litigation and to be given monthly if any such papers have been filed
since the last notice given;

 

(b)                                 Any dispute or disputes which exist
between Borrower (or any Project Company, as applicable) and any Governmental
Authority and which involve (i) claims against Borrower (or any Project
Company, as applicable) which exceed $500,000 in the aggregate in any fiscal
year of Borrower (or any Project Company, as applicable), (ii) injunctive
or declaratory relief, (iii) revocation, suspension or material adverse
modification of any Applicable Permit or the commencement of any action or
proceeding that could reasonably be expected to result in revocation, 

 

54

 

suspension or
material adverse modification of an Applicable Permit, or (iv) any Liens
for material taxes due but not yet paid;

 

(c)                                  Any Event of Default or Inchoate Default;

 

(d)                                 Any casualty, damage or loss, whether or
not insured, through fire, theft, other hazard or casualty, or any act or
omission of Borrower, Member or any Project Company, or their respective
officers, directors, employees, agents, contractors, consultants or
representatives, or of any other Person if such casualty, damage or loss
affects Borrower, any Project Company or the Project in excess of $1,000,000
for any one casualty or loss, or an aggregate of $3,000,000 in any fiscal year
of Borrower (or any Project Company, as applicable), and Borrower shall keep
Administrative Agent timely apprised of any insurance claim proceedings;

 

(e)                                  Any cancellation or material change in
the terms, coverages or amounts of any insurance described in Section 7.20;

 

(f)                                    Any matter that has had or, in Borrower’s
reasonable judgment, would reasonably be expected to have a Material Adverse
Effect;

 

(g)                                 Any scheduled maintenance calendar with
respect to the Project delivered to Borrower (or any Project Company, as
applicable) pursuant to the Turbine Service Agreement or the O&M Service
Agreement;

 

(h)                                 Any termination or material event of
default or notice of termination or default under any Project Document to which
Borrower or any Affiliated Participant is a party (including any failure of
Borrower to maintain in effect security instruments (including cash collateral)
as and when required pursuant to the terms and conditions of the Energy Hedge);

 

(i)                                     Any developments concerning any FERC or
MPUC proceedings affecting any Project that could be reasonably expected to
have a Material Adverse Effect;

 

(j)                                     (i) Any fact, circumstance,
condition or occurrence at, on, or arising from or with respect to, the
Projects, the Project Site, the Improvements, or other Mortgaged Property that
has resulted or could reasonably be expected to result in a material
non-compliance with any Environmental Law or any material liability or material
remedial, corrective or investigatory obligation thereunder, (ii) any
Release of Hazardous Substances on or from the Project Site, the Improvements
or other Mortgaged Property that has resulted or could reasonably be expected
to result in personal injury or material property damage or could reasonably be
expected to have a Material Adverse Effect, and (iii) any pending or, to
Borrower’s knowledge, threatened, Environmental Claim against Borrower (or any
Project Company, as applicable) or to Borrower’s knowledge any of its
Affiliates, contractors, lessees or any other Persons, arising in connection
with their occupying or conducting operations on or at the Projects, the
Project Site, the 

 

55

 

Improvements or
the other Mortgaged Property which could reasonably be expected to have a
Material Adverse Effect;

 

(k)                                  The receipt of any management letter or
similar communication as to any deficiencies in the accounting practices of
Borrower (or any Project Company, as applicable) from Borrower’s (or any
Project Company’s, as applicable) auditors, or the resignation, discharge or
change of Borrower’s (or any Project Company’s, as applicable) auditors;

 

(l)                                     Any claim of force majeure under any
Project Document;

 

(m)                               Any forced outage affecting five (5) Turbines
or more for more than 24 hours;

 

(n)                                 Borrower’s, any Project Company’s or any
ERISA affiliate’s adoption of or participation in any ERISA Plan, or intention
to adopt or participate in any ERISA Plan;

 

(o)                                 The occurrence of an Event of Eminent
Domain;

 

(p)                                 Any event or condition likely to require
the incurrence of major maintenance items in an amount that is at least 20%
higher, in the aggregate, than the corresponding amounts set forth with respect
to all such items in the Base Case Project Projections for such year, within
thirty (30) days of the date when Borrower obtains such knowledge;

 

(q)                                 (i) a notice of any drawing or
demand by the Energy Hedge Provider on the security instruments established by
or on behalf of Borrower as required under the Energy Hedge, (ii) a notice
of any drawing or demand by Borrower on any security instruments established by
or on behalf of Energy Hedge Provider as required under the Energy Hedge; or (iii) prior
to the creation of the Energy Hedge Lien, if applicable, if the amount of the
available Total LC Commitment in respect of the Hedge LCs plus
the value of any other existing credit support (in excess of the value of the
Energy Hedge LC) provided to Energy Hedge Provider minus
the Energy Hedge Liquidity Reserve Requirement (such amount as calculated on
each Payment Date, the “Hedge LC Margin”) is less than $2,500,000,
Borrower shall cause to be deposited into the Energy Hedge Reserve Account
amounts remaining in the Revenue Account pursuant to Section 6(b)(9) of
the Account Control Agreement; provided, that  the amounts on deposit in the Energy Hedge
Deposit Account shall never be required to exceed $5,000,000 at any given time.

 

(r)                                    All material notices relating to any
Project received by Borrower (or any Project Company) from any Governmental
Authority;

 

(s)                                  The receipt of Turbine Mechanical
Completion Certificates (as defined in the Turbine Supply Agreement), and the
Infrastructure Completion Certificate (as defined in the BOP Agreement) with
respect to the Stetson II Project; and

 

56

 

(t)                                    All material written notices or material
written periodic reports with respect to any Project received by the Borrower
or any Project Company under any Project Document they are a party to, including
any such notices related to the Turbines by the Turbine Operator or the Turbine
Supplier.

 

7.4                                 Financial Statements.

 

(a)                                  Borrower shall deliver to Administrative
Agent (or cause to be delivered to Administrative Agent) with sufficient copies
for the Lenders, in form and substance reasonably satisfactory to
Administrative Agent (with consent of the Majority Lenders and the Issuing
Bank):

 

(i)                                     As soon as practicable but no later than
forty-five (45) days after the close of the first, second and third quarterly
periods of its fiscal year, quarterly (and year-to-date) unaudited financial
statements of Borrower and each Project Company (on a consolidated basis),
Member, Sponsor and Energy Hedge Guarantor, including a balance sheet and an
income and expense statement.  Such
requirement may be satisfied with respect to any Person if the appropriate Form 10-Q
filed with the Securities and Exchange Commission is publicly available;

 

(ii)                                  As soon as practicable but no later than
120 days after the close of each applicable fiscal year, audited financial
statements of Borrower and each Project Company, on a consolidated basis,  Sponsor, Member and Energy Hedge
Guarantor including a statement of equity, a balance sheet as of the close of
such year, an income and expense statement and a cash flow statement, all
prepared in conformity with GAAP and certified by an independent certified
public accountant selected by the Person whose financial statements are being
prepared and, except in the case of any company subject to reporting
requirements under the Securities Exchange Act of 1934, satisfactory to
Administrative Agent (with consent of the Majority Lenders and the Issuing
Bank); provided, however, that any accounting firm of
international or national standing shall be satisfactory.  The certificate to be delivered by an
independent certified public accountant pursuant to the first sentence of this Section 7.4(a)(ii) with
respect to Borrower and each Project Company shall not be qualified or limited
because of such accountant’s restricted or limited examination of any material
portion of the records of the applicable Person.  Such requirement may be satisfied with
respect to any Person if the appropriate Form 10-K filed with the
Securities and Exchange Commission is publicly available; and

 

(iii)                               Any additional financial statements,
reports or documents to the extent available to Borrower or to which Borrower
(or any Project Company, as applicable) is entitled under the Material Project
Documents and that are reasonably requested by Administrative Agent.

 

57

 

(b)                                 Each time the financial statements
described above are delivered under this Section 7.4, a certificate
signed by an Authorized Officer of the Person whose financial statements are
being delivered shall be delivered along with such financial statements,
certifying that such Authorized Officer has made or caused to be made a review
of the transactions and financial condition of the applicable Person during the
relevant fiscal period and that, to the knowledge of the Authorized Officer, no
Inchoate Default or Event of Default exists or if any such event or condition
existed or exists, the nature thereof and the corrective actions that the
Sponsor, Member, Borrower or the Project Company has taken or proposes to take
with respect thereto.

 

7.5                                 Reports.

 

(a)                                  No later than five (5) Business Days
prior to each Payment Date, Borrower shall deliver to the Administrative Agent
the calculation of the Debt Service Coverage Ratio for the past 12-month period
(which calculation of the Debt Service Coverage Ratio shall include Borrower’s
reasonable estimate for Project Revenues and O&M Costs through such Payment
Date).  The calculations of the Debt
Service Coverage Ratio hereunder, upon confirmation from the Administrative
Agent, shall be used in determining the transfers and releases from the Revenue
Account and the Disbursement Reserve Account, as applicable, in accordance with
the terms of the Account Control Agreement.

 

(b)                                 Following the Closing Date, on the 26th day of each
calendar month commencing January 2010, Borrower shall deliver to
Administrative Agent (with sufficient copies for the Lenders) a monthly summary
operating report which shall include (i) monthly, a three-month and
year-to-date numerical and narrative assessment with respect to each calendar
month in the relevant period of (A) the variance analysis of each Project’s
compliance with each material category in the Base Case Project Projections, (B) each
Project’s electrical production (including variances from budgeted amounts),
delivery and curtailment, if any, (C) Project availability and unscheduled
maintenance of Turbines in respect of both Projects, (D) [reserved], (E) all
Project Revenues received and all O&M Costs paid during such period
(including any REC penalties, if applicable and the activity under the Energy
Hedge) and all cash balances, including debt service payments during such
period, (F) any claims for warranty claims under the Turbine Supply
Agreement made or outstanding during such quarter, (G) replacement of
equipment not contemplated by the Base Case Project Projections of value in
excess of $250,000, and (H) material disputes with contractors,
materialmen, suppliers or others and any related claims against Borrower (or
any Project Company, as applicable); and (ii) average wind speeds
(including with respect to each calendar month in such period).

 

(c)                                  Promptly following the end of each
calendar quarter, commencing with the quarter ending December 31, 2009,
Borrower shall deliver to Administrative Agent a summary report describing the
then current balance of RECs calculated pursuant to the REC Contracts,
including the relevant balances of RECs for each 

 

58

 

category
referenced therein and, to the extent reasonably available to Borrower, the REC
balances determined by GIS Administrator with respect to each Project for the
relevant quarter.  Promptly following
each annual reconciliation of REC balances under the REC Contracts, Borrower
shall deliver to Administrative Agent a reasonably detailed report discussing
in sufficient detail (i) the results of such reconciliation, (ii) the
applicable REC balances for each category referenced therein and, to the extent
reasonably available to Borrower, the REC balances determined by GIS
Administrator with respect to the Projects for the relevant period, (iii) if
applicable, the amount of substitute RECs required to be provided by Borrower
(or any Project Company, as applicable) as a result of such reconciliation and
the costs payable by Borrower (or any Project Company, as applicable) as a
result thereof, and (iv) any REC penalties due and payable by Borrower (or
any Project Company, as applicable) or GIS Administrator as a result of such
reconciliation.

 

(d)                                 Borrower shall provide to Administrative
Agent promptly upon reasonable request such information concerning the Projects
and the Project Companies and, to the extent available, the other Affiliated
Participants, at such times as Administrative Agent shall reasonably require,
including such reports and information as are reasonably required by the
Independent Consultants.

 

(e)                                  Borrower shall provide reports required
under this Section 7.5 in a number of copies sufficient for
distribution to all Lenders.

 

7.6                                 Additional Permits and Project Documents;
Additional Consents.

 

Borrower
shall deliver to Administrative Agent promptly, but in no event later than
thirty (30) days after the receipt thereof by Borrower, copies of (a) all
Applicable Permits or any Additional Project Documents obtained or entered into
by Borrower (or any Project Company, as applicable) after the Closing Date; and
(b) any material amendment, supplement or other modification to any
Applicable Permit received by Borrower after the Closing Date.  Each Additional Project Document entered into
by Borrower (or any Project Company, as applicable) after the Closing Date
shall be in form and substance reasonably satisfactory to Administrative Agent
and concurrently with the delivery of such Additional Project Document,
Borrower shall cause each other party to such agreement to execute and deliver
to Administrative Agent, to the extent reasonably required by Administrative
Agent, a consent in substantially the form of Exhibit F-7 and use
its commercially reasonable efforts, to the extent reasonably required by
Administrative Agent,  to cause such
counterparty to provide an opinion of its counsel, in form and substance
reasonably acceptable to Administrative Agent. 
Within fifteen (15) Business Days after the Closing Date, Stetson Wind
II, LLC shall enter into an agreement, in form and substance similar to the
Turbine Service Agreement and reasonably satisfactory to the Administrative
Agent.

 

7.7                                 Compliance with Environmental Report
Recommendations

 

Borrower shall (and Borrower shall cause each Project
Company to), and shall use reasonable efforts to cause each counterparty to
each Project Document to, comply in all 

 

59

 

material
respects with all material and relevant recommendations of the applicable
Environmental Consultant set forth in the Environmental Reports, and shall
inform each such counterparty of each Project Document of the material and
relevant recommendations contained in each such Environmental Reports.

 

7.8                                 Existence, Conduct of Business, Properties,
Etc.

 

Except
as otherwise expressly permitted under this Financing Agreement, Borrower shall
(and Borrower shall cause each Project Company to) (a) maintain and
preserve its existence as a Delaware limited liability company and all material
rights, privileges, remedies and franchises necessary or desirable in the
normal conduct of its business; (b) perform all of its material
contractual obligations under the Operative Documents and all other agreements
and contracts by which it is bound upon the terms contained therein; (c) maintain
all Permits and licenses, including all Applicable Permits, which are necessary
or advisable to conduct its business and to own, insure, operate and maintain
each Project in the manner contemplated by the Project Documents; (d) at
or before the time that any Permit becomes an Applicable Permit, obtain such
Permit; and (e) engage only in the business contemplated by the Operative
Documents.

 

7.9                                 Obligations.

 

Borrower
shall (and Borrower shall cause each Project Company to) pay all of its
obligations as and when due and payable, including trade payables in the
ordinary course of business and taxes and tax claims, except such obligations
as may be contested in good faith by Borrower (or any Project Company, as
applicable) or as to which a bona fide
dispute may exist, provided that with respect to any such disputes relating to amounts
of more than $100,000, (i) Administrative Agent is satisfied in its
reasonable discretion that non-payment of such obligation pending the
resolution of such contest or dispute could not reasonably be expected to have
a Material Adverse Effect; or (ii) provision is made to the satisfaction
of Administrative Agent (and Administrative Agent’s failure to object to
Borrower’s written request for approval of such arrangements within ten (10) Business
Days of receipt of such request shall constitute approval thereof) in its
reasonable discretion for the posting of security (other than the Collateral)
for or the bonding of such obligations or the prompt payment thereof in the
event that such obligation is payable.

 

7.10                           Books, Records, Access.

 

(a)                                  Borrower shall (and Borrower shall cause
each Project Company to) maintain adequate books, accounts and records with
respect to Borrower (or the Project Companies, as applicable) and each Project
and prepare all financial statements required hereunder in conformity with GAAP
and in material compliance with the regulations of any Governmental Authority
having jurisdiction thereof, and permit employees or agents of any Lender at
any reasonable time during Borrower’s normal business hours and upon reasonable
prior notice to Borrower and Administrative Agent, without undue disturbance to
Borrower’s commercial operations and at all times in reasonable compliance with
Borrower’s health, safety, and environmental policies (assuming that Borrower
has provided 

 

60

 

adequate training
to such Lender), to inspect all of Borrower’s (and each Project Company’s)
properties including the Project Site, to examine or audit all of Borrower’s
(and each Project Company’s) books, accounts and records and make copies and
memoranda thereof, in each case subject to the provisions of Section 14.19    ;
provided, however, that prior to the occurrence of an Inchoate
Default or Event of Default the Lender desiring to conduct an inspection in
excess of one inspection per 90-day period shall bear the cost thereof.

 

(b)                                 Borrower shall, upon reasonable notice
from the Independent Engineer, provide the Independent Engineer with reasonable
access to the Project Site at all times during Borrower’s normal business
hours, remote access to the Project’s SCADA System (as defined in the Turbine
Supply Agreement) and access to and copies of such of the Project’s engineering
drawings and civil and electrical designs and interconnection facilities and
project manuals so as to enable the Independent Engineer to deliver such certificates
and written reports to Administrative Agent (with sufficient copies for the
Lenders) as Administrative Agent may reasonably request.

 

(c)                                  Borrower shall provide the Independent
Engineer with copies of all manuals that are material to the operation of the
Projects and that are required to be delivered to Borrower.

 

7.11                           EWG and Rate Approval.

 

(a)                                  Borrower shall take or cause to be taken
all necessary and appropriate actions so that each Project Company will be an
Exempt Wholesale Generator until all amounts due the Lenders under the
Financing Documents have been paid in full.

 

(b)                                 Borrower shall (i) take or cause to
be taken all necessary and appropriate actions so that Borrower will not be
subject to the jurisdiction of FERC as a “public utility” under Parts II and
III of the FPA and neither Borrower nor any Project Company will be subject to
jurisdiction of the MPUC as a “public utility” under applicable Maine law; and (ii) take
or cause to be taken all necessary or appropriate actions so that each Project
Company will maintain any FERC approvals and Maine state approvals in respect
of selling power in Maine.

 

7.12                           Operation of Projects.

 

(a)                                  Borrower shall keep and operate each
Project, or cause the same to be kept and operated, in good operating condition
consistent in all material respects with Prudent Utility Practices, all
Applicable Permits and Legal Requirements and all applicable requirements of
the Operative Documents, and make or cause to be made all repairs (structural
and non-structural, extraordinary or ordinary) necessary to keep and operate
each Project in such condition.  Borrower
shall from time to time consider and implement the reasonable recommendations
of the Independent Engineer in connection with the operation of each Project.

 

61

 

(b)                                 Borrower shall operate and maintain each
Project, or cause each Project to be operated and maintained in accordance with
the Base Case Project Projections (subject to Borrower’s other rights under the
Financing Documents, including Borrower’s rights to access amounts in the
Collateral Accounts in accordance with the terms of this Agreement and the
Account Control Agreement).

 

(c)                                  Borrower shall operate and maintain each
Project, or cause each Project to be operated and maintained in accordance with
the Base Case Project Projections in effect from time to time after the
expiration of the applicable Warranty Period (as defined in each Turbine Supply
Agreement).

 

(d)                                 Borrower shall not (nor shall it allow
any Project Company to) (i) approve any material amendments or
modifications to any operation and maintenance manuals referred to in the
Turbine Service Agreement and O&M Service Agreement, or (ii) terminate
the Turbine Service Agreement ***** in each case without obtaining the prior
written consent of Administrative Agent (with consent of the Majority Lenders
and Issuing Bank).

 

7.13                           Preservation of Rights; Further Assurances.

 

(a)                                  Borrower shall preserve, protect and
defend its rights (and the rights of each Project Company, as applicable) under
each and every Project Document, including (where necessary or appropriate)
prosecution of suits to enforce any material right of Borrower (or any Project
Company, as applicable) thereunder and enforcement of any claims with respect
thereto.

 

(b)                                 From time to time as reasonably requested
by any Agent, Borrower shall (and Borrower shall cause each Project Company to)
execute, acknowledge, record, register, deliver and/or file all such notices,
statements, instruments and other documents (including any memorandum of lease
or other agreement, financing statement, continuation statement, fixture
filing, certificate of title or estoppel certificate) relating to the Loans and
other Obligations of Borrower hereunder stating the interest and charges then
due and any known defaults, and take such other steps as may be necessary or
reasonably advisable to render fully valid and enforceable under all applicable
laws the rights, Liens and priorities of the Secured Parties (or any Agent on
their behalf) with respect to all Collateral and other security from time to
time furnished under this Financing Agreement and the other Financing Documents
or intended to be so furnished, in each case in such form, together with such
legal opinions as may reasonably be requested by any Agent and at such times as
shall be reasonably satisfactory to Security Agent, and pay all reasonable fees
and expenses (including reasonable attorneys’ fees) incident to compliance with
this Section 7.13(b).

 

(c)                                  If Borrower (or any Project Company)
shall at any time acquire any real property or leasehold, easement or other
interest in real property not covered by the Mortgage Documents, promptly upon
such acquisition, Borrower shall (and Borrower shall cause each Project Company
to) execute, deliver and record a

 

62

 

supplement to the
Mortgage Documents, reasonably satisfactory in form and substance to Security
Agent, subjecting such real property or leasehold, easement or other interests
to the Lien and security interest created by the Mortgage Documents.

 

7.14         Taxes, Other Government Charges and Utility
Charges.

 

Borrower
shall (and Borrower shall cause each Project Company to) pay, or cause to be
paid, as and when due and prior to delinquency, all taxes, assessments and
governmental charges of any kind that may at any time be lawfully assessed or
levied against or with respect to Borrower, each Project Company or the
Projects, all utility and other charges incurred in the completion, operation,
maintenance, use, occupancy and upkeep of each Project, and all assessments and
charges lawfully made by any Governmental Authority for public improvements
that may be secured by a Lien on any Project. 
However, Borrower and each Project Company may contest in good faith any
such taxes, assessments and other charges and, in such event, may permit the
taxes, assessments or other charges so contested to remain unpaid during any
period, including appeals, when each of Borrower and each Project Company is in
good faith contesting the same, so long as, with respect to any such dispute in
an amount greater than $100,000 (a) reserves reasonably satisfactory to
Administrative Agent have been established in an amount sufficient to pay any
such taxes, assessments or other charges, accrued interest thereon, potential
penalties, additions to tax or other costs relating thereto, or other adequate
provision for the payment thereof shall have been made, provided that
failure of Administrative Agent to object to Borrower’s written request for
approval of reserve arrangements within ten (10) Business Days of receipt
by Administrative Agent of such request shall constitute and be deemed approval
thereof; (b) enforcement of the contested tax, assessment or other charge
is effectively stayed for the entire duration of such contest; and (c) any
tax, assessment or other charge determined to be due, together with any
interest, additions to tax or penalties thereon, is paid when due after
resolution of such contest by final non-appealable judgment.

 

7.15         Compliance With Laws; Permits.

 

At its
expense, Borrower shall (and Borrower shall cause each Project Company to),
except to the extent failure to do so could not be reasonably expected to have
a Material Adverse Effect, (a) comply, or cause compliance, with all
Legal Requirements relating to the Projects, each Project Company or to
Borrower, including all Environmental Laws; (b) procure, maintain and
comply, or cause to be procured, maintained and complied with, all Permits
required under Legal Requirements (including all Environmental Laws) for any
use of the Projects, the Project Site, the Improvements or other Mortgaged
Property, then being made or contemplated by the Operative Documents; and (c) in
the case of a change of name or corporate organization involving Borrower or
any Project Company, as applicable, take such actions, including the filing of
appropriate notices with all Governmental Authorities that have issued
Applicable Permits, to maintain in full force and effect each Applicable
Permit, as may be necessary by applicable Legal Requirements.  Borrower shall (and Borrower shall cause each
Project Company to) (i) promptly take any remedial, responsive or
corrective action required under any Environmental Law with respect to any
presence or Release of Hazardous Substances to the extent that such presence or
Release could reasonably be expected to give rise to a material liability or a
material remedial, corrective or investigatory obligation of Borrower (or any
Project 

 

63

 

Company, as applicable) or (ii) promptly respond
to, and address, any material Environmental Claim against Borrower, any Project
Company or any Project.  Borrower (or any
Project Company, as applicable) may, at its expense, contest by appropriate proceedings
conducted in good faith the validity or application of Legal Requirements or
Permits, provided that (i) none of the Agents, Lenders, Issuing
Bank, any Project Company or Borrower reasonably would be likely to be
subjected to any criminal or other liability for failure to comply therewith;  and  (ii) all proceedings to enforce
such Legal Requirements or Permits against the Agents, Issuing Bank, the
Lenders, Borrower, the Project Companies or the Projects, shall have been duly
and effectively stayed during the entire pendency of such contest.

 

7.16         Compliance with Anti-Money Laundering and OFAC Laws.

 

(a)           The Borrower shall (and the Borrower
shall cause each Project Company to) comply at all times with the requirements
of all Anti-Money Laundering Laws.

 

(b)           The Borrower shall provide the
Administrative Agent (on behalf of the Lenders) with any information regarding
the Borrower, Sponsor, the Member and any Project Company necessary for the
Lenders to comply with all Anti-Money Laundering Laws.

 

(c)           The Borrower shall comply at all times
with the requirements of all OFAC Laws.

 

(d)           The Borrower shall not, and shall cause
the Member, Sponsor and each Project Company not to, conduct business with or
engage in any transaction with any person or entity named in the OFAC SDN List
or any Person included in, owned by, controlled by, acting for or on behalf of,
providing assistance, support, sponsorship, or services of any kind to, or
otherwise associated with any of the Persons referred to or described in the
OFAC SDN List.

 

(e)           If the Borrower obtains actual knowledge
or receives any written notice that the Borrower, the Member, Sponsor, any
Project Company or any Person holding any legal or beneficial interest
whatsoever therein (whether directly or indirectly) is named on the OFAC SDN List
(such occurrence, an “OFAC Violation”), the Borrower shall immediately (i) give
written notice to the Administrative Agent of such OFAC Violation, and (ii) comply
with all applicable laws with respect to such OFAC Violation (regardless of
whether the party included on the OFAC SDN List is located within the
jurisdiction of the United States of America), including the OFAC Laws, and the
Borrower hereby authorizes and consents to the Administrative Agent taking any
and all steps the Agent deems necessary, in its sole discretion, to comply with
all applicable laws with respect to any such OFAC Violation, including the
requirements of the OFAC Laws (including the “freezing” and/or “blocking” of
assets and reporting such action to OFAC).

 

(f)            Upon the Administrative Agent’s request
from time to time, the Borrower shall deliver a certification confirming its
compliance with the covenants set forth in this Section 7.16.

 

64

 

7.17         Separateness Provisions.

 

Borrower shall (and Borrower shall cause each Project Company to)
comply with the separateness provisions set forth in Article 6 of its
respective LLC Agreement, other than as required for Borrower and each Project
Company to execute, deliver and perform the obligations under the Operative
Documents to which it is a party.

 

7.18         Enforcement of Remedies.

 

Borrower
shall diligently pursue and enforce all of its rights and remedies under the
Turbine Supply Agreement and the BOP Agreement in a reasonably commercial
manner.

 

7.19         O&M Service Agreement.  The Borrower shall cause the Annual Operating
Budget under and as defined in the O&M Service Agreement to be in
compliance with the Base Case Project Projections.  The Borrower shall deliver to the
Administrative Agent a copy of each such Annual Operating Budget upon receipt.

 

7.20         Maintenance of Insurance.

 

(a)           Borrower shall (and Borrower shall cause each Project
Company to), without cost to the Lenders, maintain or cause to be maintained on
its (or the Project Companies’, as applicable) behalf in effect at all times
the types of insurance required by the following provisions together with any
other types of insurance required hereunder or in any other Project Document,
with insurance companies rated A-, X or better, by Best’s Insurance Guide and
Key Ratings (or an equivalent rating by another nationally recognized insurance
rating agency of similar standing if Best’s Insurance Guide and Key Ratings
shall no longer be published), or other insurance companies of recognized responsibility
satisfactory to Administrative Agent (with the consent of the Majority Lenders
and Issuing Bank).  Upon request of the
Administrative Agent, Borrower shall supply copies of insurance policies or
agreed upon policy wordings.

 

(b)           The following insurance coverages shall be in form and
substance reasonably satisfactory to the Administrative Agent and shall be in
place as of the Closing Date until all obligations of Borrower pursuant to this
Financing Agreement and the other Financing Documents have been fully
discharged:

 

(i)            Commercial
general liability insurance for the Borrower and each Project Company on a “per
occurrence” policy form, or “AEGIS”
claims-first made equivalent policy including coverage for
premises/operations, explosion, collapse and underground hazards,
products/completed operations, broad form property damage, blanket contractual
liability, and personal injury, with primary coverage limits of no less than
$1,000,000 any one occurrence and $2,000,000 in the aggregate.  The commercial general liability policy shall
also include a severability of interest with no exclusions for cross-liability.  Deductibles in excess of $10,000 shall be
subject to review and approval by the Administrative Agent.  Pollution 

 

65

 

liability
is optional unless otherwise required by contract, and then, to such limits as
required therein.

 

(ii)           Automobile liability insurance for
Borrower and each Project Company, including coverage for owned, non-owned and hired
automobiles, as applicable, for both bodily injury and property damage and
containing appropriate no-fault insurance provisions or other endorsements in
accordance with applicable state legal requirements, with limits of no less
than $1,000,000 per accident with respect to bodily injury, property damage or
death.

 

(iii)          Worker’s compensation insurance, disability benefits
insurance and other similar forms of insurance which Borrower (or any Project
Company, as applicable) is required by law to provide for the Project,
providing statutory benefits and other applicable States’ endorsement and
USL&H Act coverage (if any exposure exists), covering loss resulting from
injury, sickness, disability or death of the employees of Borrower (or any
Project Company, as applicable) with limits for employer’s liability of not
less than bodily injury by accident $4,500,000 each accident, bodily injury by
disease $4,500,000 policy limit, and bodily injury by disease $4,500,000 each
employee.  These limits may be satisfied
through a combination of primary and excess policies.

 

(iv)          Umbrella/Excess
Liability Insurance written on an occurrence basis or AEGIS claims-first-made
equivalent and providing limits in excess of the primary limits applying under
policies described in Sections 7.20(b)(i) and (ii).  Such insurance coverage shall have a limit of
liability of not less
than $20,000,000 per occurrence and in the annual aggregate.  The umbrella and/or excess
liability policies shall not contain endorsements which restrict coverages as
set forth in Section 7.20(b)(i), and which are provided in the
underlying policies.  If the policy or
policies provided under this Section 7.20(b)(iv) contain(s) aggregate
limits and such limits are diminished below $15,000,000 by any incident, occurrence,
claim, settlement or judgment against such insurance which has caused the
carrier to establish a reserve, Borrower (and each Project Company, as
applicable) shall take immediate steps to restore such aggregate limits or
shall provide other equivalent insurance protection for such aggregate limits.

 

(v)           Aircraft liability, to the extent exposure exists, for
the use of any owned, non-owned or hired aircraft used in the operation of the
Project with a limit of not less than $10,000,000.

 

(vi)          From the point
of groundbreaking for the Borrower and the Stetson II Project and through the
date of Substantial Completion, or
until such time as cover is provided under the operational insurance as set
forth in Section 7.20(b)(vii) below, with no gap in coverage,
builder’s risk insurance on an 

 

66

 

“all
risk” basis on a completed value form including earthquake and flood, collapse,
sinkhole, subsidence and malicious mischief, on a replacement cost basis with
no coinsurance penalty and providing:

 

A.            coverage for
the Stetson II Project including removal of debris, and first party pollution
and hazardous material clean up and removal (with a limit of not less than
$1,000,000) insuring the buildings, structures, machinery, equipment,
facilities, fixtures and other properties intended to be a permanent part of
the Stetson II Project in a minimum aggregate amount not less than full
replacement value of the Stetson II Project, subject to an annual aggregate
limit of not less than $50,000,000 for flood, earthquake, collapse, sinkhole
and subsidence coverage,

 

B.            off-site
coverage with a per occurrence limit of $5,000,000 of the limit of liability or
such higher amount as is sufficient to cover the replacement cost values of
off-site equipment for which there have been progress payments.  Said off-site coverage may be insured as a
section of the all risk builder’s risk or as a separate policy,

 

C.            transit
coverage (including ocean cargo where ocean transit will be required) with a
per occurrence limit of the full insurable value of any single shipment and
providing for 12 months delay in start-up cover (revenues including PTCs, if
applicable, less non-continuing expenses). 
Said transit coverage may be insured as a section of the all risk
builder’s risk or as a separate policy. 
If as a separate policy, such policy to be placed no later than 20 days
prior to the first shipment and shall contain a 50/50 clause,

 

D.            coverage for
operational testing and startup with the same dollar coverage and modifications
as set out in (vi)(A) above for all assets related to the Stetson II
Project, with cover running continuously for machinery breakdown from the
beginning of testing until such time as operational cover is put into place;
and

 

E.             business
interruption insurance (of a “delay” or “delay in start-up” and “contingent
delay in startup” nature) in a minimum aggregate amount for the delay in
start-up of not less than the equivalent of twelve (12) months and for
contingent at least six (6) months “Advance Loss of Profits” including
grossed up production tax credits and Renewable Energy Credits (if applicable)
on an “all risk” basis, as set forth in (vi)(A) through (vi)(D) above.  The “contingent delay in start- up” shall 

 

67

 

endorse
and insure all non-owned substations and interconnection facilities and
material project suppliers

 

F.             All such
policies may have deductibles of not greater than $150,000 per loss; and
business interruption/delay in start-up coverage shall have a deductible not
greater than a 30 day period; and operational testing shall have a deductible
of not greater than $150,000 per occurrence; and transit coverage shall have a
deductible of not greater than $150,000 per occurrence.

 

(vii)         All-risk
property insurance covering against physical loss or damage to the Stetson II
Project assets from and after the
date of Substantial Completion as defined in the Turbine Supply Agreements with
no gap in coverage with the requirements in Section (b)(vi) above,
Borrower, and Stetson I Project assets (including (i) buried
cables at any of the Project sites and (ii) transmission lines to the
extent the Borrower or any Project Company has risk of loss and insurance,
subject to commercially availability), including fire and extended coverage,
collapse, flood, earth movement and comprehensive boiler and machinery coverage
(including electrical malfunction and mechanical breakdown).  Such insurance coverage shall not include any
exclusion for resultant damage caused by faulty workmanship, design or
materials.  Such insurance coverage shall
be written on a full replacement cost basis with no coinsurance penalty, and
providing:

 

A.            expediting and extra expense
at $500,000 (unless provided under the business interruption cover in F.
below);

 

B.            debris removal with a
$10,000,000 limit;

 

C.            transit cover to the extent
exposure exists, with limits equivalent to the full replacement value of
property at risks;

 

D.            earthquake and flood
coverage may be written with a sublimit of not less than $50,000,000 and cover
for terrorism is optional, unless required by contract;

 

E.             the policy limits shall be
automatically reinstated following a loss event, with the exception of damage
from earthquake and flood, which shall be on an annual aggregate limit;

 

F.             business interruption
insurance covering against the same
perils as set forth in Section 7.20(b)(vii) above, in an
amount not less than twelve (12) months of projected revenues (including production tax credits and renewable energy credits, to the extent
applicable) less non continuing expenses with an indemnity period of not less
than  twelve (12) months.  The 

 

68

 

business
interruption limit may be included in the policy limit set forth in Section 7.20(b)(vii).  Borrower shall also maintain contingent
business interruption coverage to the first non-owned substation(s) and
transmission facilities or electrical distribution systems on a specified and
named location basis with a limit  not
less than $5,000,000 (subject
to commercial availability).. Borrower shall also maintain or cause to be
maintained, expediting or extra expenses coverage in an amount not less than
$500,000.  Such cover may be subject to a
waiting period not to exceed thirty (30) days; and

 

G.            all such policies
may have deductibles of not greater than $150,000 per loss and business
interruption coverage shall have a deductible not greater than a 30 day period,
unless otherwise approved by the Administrative Agent.

 

(viii)        Such other or additional insurance (as to
risks covered, policy amounts, policy provisions or otherwise) as, under
Prudent Utility Practices, are from time to time insured against for property
and facilities similar in type, nature, use and location to the Project which
Administrative Agent may reasonably require after consultation with the
Insurance Consultant and Borrower or Borrower’s insurance representative.

 

(c)           Borrower shall use
reasonable efforts to require each contractor to maintain insurance consistent
with industry practice.

 

(d)           All policies wherein any Lender has an insurable
interest shall insure the interests of the Agents and the Lenders as well as
Borrower and any Project Company, as applicable ,and shall name Agents, and the
Lenders as additional insured, unless the Agents and the Lenders are named as
an insured under the policy.  All
policies covering real or personal property or business interruption shall name
the Security Agent as sole loss payee in accordance with lender’s loss payable
endorsement 438 BFU or ISO CP 1218 or their equivalent and shall provide that
any payment thereunder for any loss or damage with respect to the Projects
shall be made in accordance with the provisions set forth in Article 9
of this Financing Agreement and Section 6 of the Account Control
Agreement.  Upon payment and satisfaction
of all of Borrower’s obligations under, and termination of the Financing
Documents, Administrative Agent will instruct the insurers to name Borrower, or
such successor credit provider or other Person as Borrower shall specify, as
loss payee.

 

All policies of
liability, except for workmens compensation and employer’s liability where not
legally allowed, shall name the Secured Parties as Additional Insured.

 

All
policies shall:

 

69

 

(A)  expressly provide that all provisions thereof, except
the limits of liability (which shall be applicable to all insureds as a group)
and liability for premiums (which shall be solely a liability of Borrower)
shall operate in the same manner as if there were a separate policy covering
each such insured.

 

(B)   be primary and non-contributory with insurance carried
by or on behalf of additional insureds.

 

(C)   Each policy shall waive subrogation (to
the extent allowed by law) against any of the Secured Parties, any Project Company or Borrower.

 

(D)  To the extent commercially
available, each such
policy shall provide that if any premium or installment is not paid when due,
or if such insurance is to be cancelled or terminated for any reason
whatsoever, the insurers (or their representatives) will promptly notify
Borrower and Administrative Agent, and any such cancellation or termination
shall not be effective until thirty (30) days (ten (10) days with regard
to non-payment) after receipt of such notice to Administrative Agent, and that
appropriate certification shall be made to Borrower by each insurer with
respect thereto.

 

(E)   All policies covering real and personal property or
business interruption (including delay in start-up/
advance loss of profits)
shall be endorsed so that the interests of Agents and Lenders shall be insured
regardless of any breach or violation by Borrower, any Project Company or any
other Person, of any warranties, declarations or conditions contained in such
insurance policies.

 

(e)           In the event that Borrower (or any Project Company)
fails to respond in a timely and appropriate manner (as reasonably determined
by Administrative Agent) to take any steps necessary or reasonably requested by
Administrative Agent to collect from any insurers for any loss covered by any
insurance required to be maintained by this Section 7.20,
Administrative Agent shall have the right to make all proofs of loss, adjust
all claims with the insurance company or companies and/or receive all or any
part of the proceeds of the foregoing insurance policies, either in its own
name or the name of Borrower or any Project Company; provided, however,
that Borrower shall (and Borrower shall cause each Project Company to), upon
Administrative Agent’s request and at Borrower’s (or each Project Company’s, as
applicable) own cost and expense, make all proofs of loss and take all other
steps necessary or reasonably requested by Administrative Agent to collect from
insurers for any loss covered by any insurance required to be obtained by this Section 7.20.  Notwithstanding this Section 7.20(e),
Administrative Agent shall have the right to participate and receive
information with respect to all claims and losses.

 

70

 

(f)            On or before the Closing Date and at each policy
renewal, Borrower or its authorized insurance representative shall furnish
evidence of insurance (certificates of insurance, binders, cover notes or
policy wordings) to the Administrative Agent in accordance with industry
standards.  On or before the Closing Date
and annually thereafter, the Borrower or its insurance representative shall
furnish to Administrative Agent a certificate signed by a duly authorized
representative of Borrower or insurance brokerage firm, showing the insurance
then maintained by or on behalf of Borrower and each Project Company pursuant
to this Section 7.20 and stating that such insurance complies in
all material aspects with the terms hereof and that premiums are current and
that no policies are in danger or threat of cancellation for non-payment of
premiums.  In the event that at any time
the insurance required by this Section 7.20 shall be reduced or
cease to be maintained, then (without limiting the rights of Administrative
Agent hereunder in respect of the Event of Default which arises as a result of
such failure) Administrative Agent may on behalf of the Secured Parties, at its
option, maintain the insurance required hereby and, in such event, Borrower
shall reimburse Administrative Agent upon demand for the cost thereof together
with interest thereon at a rate per annum equal to the Default Rate, but in no
event shall the rate of interest exceed the maximum rate permitted by law.

 

(g)           In the event any insurance (including the limits or
deductibles thereof) hereby required by this Section 7.20 to be
maintained, other than insurance required by law to be maintained, shall not be
available on commercially reasonable terms in the commercial insurance market,
Administrative Agent acting upon consultation with the Insurance Consultant,
shall not unreasonably withhold its agreement to waive such requirement to the
extent the maintenance thereof is not so available and/or, to the extent
applicable, may allow Borrower (or any Project Company, as applicable) to
obtain the best available insurance comparable to the requirements of this Section 7.20
on commercially reasonable terms then available in the commercial insurance
market (as determined by the Insurance Consultant); provided, however,
that (i) Borrower shall first request any such waiver in writing, which
request shall be accompanied by written reports prepared by Borrower and the
Insurance Consultant certifying that such insurance is not available on
commercially reasonable terms in the commercial insurance market for wind
energy generation projects of similar type and capacity (and, in any case where
the required amount is not so available, certifying as to the maximum amount
which is so available) and explaining in detail the basis for such conclusions
and the form and substance of such reports to be reasonably acceptable to
Administrative Agent; (ii) at any time after the granting of any such
waiver, but not more often than once
annually, Administrative Agent may request, and Borrower shall furnish
to Administrative Agent within fifteen (15) days after such request,
supplemental reports reasonably acceptable to Administrative Agent updating the
prior reports and reaffirming such conclusion; and (iii) any such waiver
shall be effective only so long as such insurance shall not be available on
commercially reasonable terms in the commercial insurance market (as determined
by the Insurance Consultant), it being understood that the failure of Borrower
to timely furnish any such supplemental report shall be conclusive 

 

71

 

evidence that such waiver
is no longer effective because such condition no longer exists.

 

(h)           In the event that any policy is written on a “claims-made”
or “occurrence reported” basis and such policy is not renewed or the
retroactive date of such policy is to be changed, Borrower shall (and Borrower
shall cause each Project Company to) obtain for each such policy or policies an
extended reporting period coverage or “tail” coverage reasonably available in
the commercial insurance market for each such policy or policies and shall
provide Administrative Agent with proof that such basic and supplemental
extended reporting period coverage or “tail” has been obtained.

 

7.21         Maintenance of Title.

 

Borrower
shall (and Borrower shall cause each Project Company to) maintain (a)   good and marketable title to the Mortgaged Property
pursuant to the Real Property Agreements, subject only to Permitted Liens; and (b) good
and marketable title to all of its other respective personal properties and
assets (other than properties and assets disposed of in the ordinary course of
business) related to the Project to the extent that failure to do so could be
reasonably expected to have a Material Adverse Effect.

 

7.22         Event of Eminent Domain.

 

If an
Event of Eminent Domain shall be threatened or occur with respect to any
Collateral Borrower shall (and Borrower shall cause each Project Company to) (a) diligently
pursue all its rights to compensation against the relevant Governmental
Authority in respect of such Event of Eminent Domain; (b) not, without the
written consent of Administrative Agent (with the consent of the Majority
Lenders whose consent shall not be unreasonably withheld), compromise or settle
any claim against such Governmental Authority; and (c) pay or apply all
Eminent Domain Proceeds in accordance with Section 6 of the Account
Control Agreement.  Borrower (and each
Project Company, as applicable) consents to the participation of Administrative
Agent in any proceedings resulting from an Event of Eminent Domain, and
Borrower shall (and Borrower shall cause each Project Company to) from time to
time deliver to Administrative Agent all documents and instruments reasonably
requested by it to permit such participation.

 

7.23         Indemnification.

 

(a)           Without duplication of Borrower’s
obligations under Sections 3.4(d), 3.6(c) or 3.6(d) (and
excluding any items or events specifically excluded from Borrower’s obligations
thereunder) and without duplication of any other indemnification requirements
in this Financing Agreement, Borrower shall indemnify, defend and hold harmless
each Agent, Lender, Issuing Bank and Borrower’s counterparties under Interest
Rate Agreements and in their capacities as such, their respective officers,
directors, shareholders, controlling persons, employees, agents and servants
(collectively, the “Indemnitees”) from and against and reimburse the
Indemnitees for:

 

72

 

(i)            any and all claims, obligations,
liabilities, losses, damages, injuries (to person, property, or natural
resources), penalties, stamp or other similar taxes, actions, suits, judgments,
costs and expenses (including reasonable and documented attorney’s fees and
expenses) of whatever kind or nature actually incurred, INCLUDING
STRICT LIABILITY CLAIMS, whether or not well founded, meritorious or
unmeritorious, demanded, asserted or claimed against any such Indemnitee in any
way relating to, or arising out of or in connection with this Financing
Agreement, the other Operative Documents, or the Project (collectively, “Claims”),
except, with respect to any Indemnitee, or any Claims by any Lender, Issuing
Bank, any Agent, or any counterparty of Borrower to an Interest Rate Agreement
or any Affiliate of any of the same against such Indemnitee or its officers,
directors, shareholders, controlling persons, employees, agents or servants
(collectively, its “Affiliated Indemnitees”); and

 

(ii)           any Environmental Claims and all other
Claims arising under any Environmental Law relating to any fact, circumstance,
condition or occurrence at, on, or arising from, or with respect to any
Project, the Project Site, the Improvements, or other Mortgaged Property or the
past or current facilities or operations of the Subject Persons related to the
Projects, including all Claims in connection with the Release or presence of
any Hazardous Substances at any Project, the Project Site, the Improvements, or
other Mortgaged Property, whether foreseeable or unforeseeable and, as relating
to any Project, the Project Site, the Improvements or other Mortgaged Property,
(A) all costs of removal and disposal of Hazardous Substances, (B) all
reasonably documented costs actually incurred in accordance with the
requirements of the Environmental Laws or relevant Governmental Authorities to (1) determine
whether the applicable Project is in compliance with all applicable Legal
Requirements; and/or (2) correct any non-compliance with any applicable Legal
Requirements, and (C) all reasonably documented costs actually incurred
for claims for damages to persons or property, including reasonable attorneys’
and consultants’ fees and court costs.

 

(b)           THE FOREGOING INDEMNITIES SHALL NOT APPLY
WITH RESPECT TO AN INDEMNITEE OR ITS AFFILIATED INDEMNITEES, TO THE EXTENT
ARISING AS A RESULT OF THE GROSS NEGLIGENCE OR WILLFUL MISCONDUCT OF SUCH
INDEMNITEE OR ITS AFFILIATED INDEMNITEES AS DETERMINED BY A FINAL
NON-APPEALABLE JUDGMENT OF A COURT OF COMPETENT JURISDICTION, BUT SHALL
CONTINUE TO APPLY TO OTHER INDEMNITEES.

 

(c)           The provisions of this Section 7.23
shall survive foreclosure of the Collateral Documents and satisfaction or
discharge of Borrower’s obligations (including the Obligations) hereunder, and
shall be in addition to any other rights and remedies of the Lenders.

 

73

 

(d)           In case any action, suit or proceeding
subject to the indemnity of this Section 7.23 shall be brought
against any Indemnitee, such Indemnitee shall notify Borrower of the
commencement thereof, and Borrower shall be entitled, at its expense, acting
through counsel reasonably acceptable to such Indemnitee, to participate in,
and, to the extent that Borrower desires, to assume and control the defense
thereof.  Such Indemnitee shall be
entitled, at its expense, to participate in any action, suit or proceeding the
defense of which has been assumed by Borrower. 
Notwithstanding the foregoing, Borrower shall not be entitled to assume
and control the defenses of any such action, suit or proceedings if and to the
extent that, in the reasonable opinion of such Indemnitee and its counsel, such
action, suit or proceeding involves the potential imposition of criminal
liability upon such Indemnitee or a potential or actual conflict of interest
between such Indemnitee and Borrower (unless such conflict of interest is
waived in writing by such Indemnitee), and in such event (other than with
respect to disputes between such Indemnitee and another Indemnitee) Borrower
shall pay the reasonable expenses of such Indemnitee in such defense; provided that Borrower shall not be required to pay any such
expenses of more than one lead counsel.

 

(e)           Borrower shall report to such Indemnitee
on the status of such action, suit or proceeding as material developments shall
occur and from time to time as requested by such Indemnitee (but not more
frequently than every sixty (60) days). 
Borrower shall deliver to such Indemnitee a copy of each document filed
or served on any party in such action, suit or proceeding, and each material
document which Borrower possesses relating to such action, suit or proceeding.

 

(f)            Notwithstanding Borrower’s rights
hereunder to control certain actions, suits or proceedings, unless Borrower has
provided Indemnitee such security as is adequate (in such Indemnitee’s
reasonable judgment taking into account the cover available under the insurance
maintained by or on behalf of Borrower to cover any potential unfavorable
determination of any such action, suit or proceeding), if any Indemnitee
reasonably believes that failure to compromise or settle such Claim is
reasonably likely to have an imminent material adverse effect on such
Indemnitee or a Material Adverse Effect, such Indemnitee shall be entitled to
compromise or settle any such Claim.  Any
such compromise or settlement shall be binding upon Borrower for purposes of
this Section 7.23.

 

(g)           Upon payment of any Claim by Borrower
pursuant to this Section 7.23, or other similar indemnity provisions
contained herein to or on behalf of an Indemnitee, Borrower, without any
further action, shall be subrogated to any and all claims that such Indemnitee
may have relating thereto, and such Indemnitee shall cooperate with Borrower
and give such further assurances as are necessary or advisable to enable
Borrower vigorously to pursue such claims.

 

(h)           Any amounts payable by Borrower pursuant
to this Section 7.23 shall be regularly payable within thirty (30)
days after Borrower receives an invoice for such amounts from any applicable
Indemnitee, and if not paid within such 30-day period shall bear interest at
the Default Rate.

 

74

 

7.24         Replacement of Operator.

 

To the
extent that Operator ceases to be the operator of the Projects, Borrower shall
retain a replacement operator of the Projects that has recognized knowledge and
expertise in providing management, operations, maintenance, and administration
services to U.S. wind energy generation projects similar to the Projects and
that has been approved in writing by Administrative Agent (acting upon
consultation with the Independent Engineer). 
If the Turbine Service Agreement is terminated or expires by its terms
without being renewed or extended, Borrower shall cause Operator (or
replacement operator retained pursuant to the immediately preceding sentence)
to expand such operator’s scope of work under the O&M Service Agreement (or
an Additional Project Document replacing the Turbine Service Agreement) in
order to fully incorporate Turbine Operator’s responsibilities under the
Turbine Service Agreement.

 

7.25         Government Grant.

 

Borrower
shall, as soon as practicable, apply for and otherwise cause the Stetson II
Project to qualify for the maximum allowable Government Grant pursuant to the
American Recovery and Reinvestment Act of 2009 and to provide the
Administrative Agent with a copy of all application documents and related
correspondence.  All Government Grant
proceeds received shall be deposited into the Government Grant Proceeds
Account, in accordance with Section 6(g) of the Account Control
Agreement.

 

7.26         Further Assurances.

 

Promptly
upon request by an Agent or any Lender through the Administrative Agent (and,
in any event, no more than ten (10) Business Days after any such request),
the Borrower shall (a) correct any material defect or error that may be
discovered in any Financing Document or in the execution, acknowledgment,
filing or recordation thereof, and (b) do, execute, acknowledge, deliver,
record, re-record, file, re-file, register and re-register any and all such
further acts, deeds, certificates, assurances and other instruments as the
Administrative Agent, the Security Agent or any Lender through the
Administrative Agent, may reasonably require from time to time in order to (i) carry
out more effectively the purposes of the Financing Documents, (ii) to the
fullest extent permitted by applicable law, subject any of the Borrower’s
properties, assets, rights or interests to the Liens now or hereafter intended
to be covered by any of the Collateral Documents, (iii) perfect and
maintain the validity, effectiveness and priority of any of the Collateral
Documents and any of the Liens intended to be created thereunder and (iv) assure,
convey, grant, assign, transfer, preserve, protect and confirm more effectively
unto the Secured Parties the rights granted or now or hereafter intended to be
granted to the Secured Parties under any Financing Document or under any other
instrument executed in connection with any Financing Document to which the
Borrower is or is to be a party.

 

7.27         Upwind Array Effect.

 

In the
event that an Upwind Array Event shall occur, then within ninety (90) days of
such event (such date the “Adjustment Date”), Borrower shall calculate
and deliver to the Administrative Agent a Projected Debt Service Coverage Ratio
as of such date using the 

 

75

 

applicable Base Case Project Projections updated with
any changes needed solely to take into account the effect, if any, of such
Upwind Array Event on the expected power production of any Project, as
determined by the Independent Engineer. 
In the event that there occurs an Upwind Array Event, and the annual
Debt Service Coverage Ratio through the Maturity Date is less than 1.00 to 1.00
when using the P99 Production Level, then Borrower shall make a
mandatory prepayment in accordance with Section 3.2(c)(iii) not later
than the next Payment Date after such Adjustment Date to the Administrative
Agent, for the account of each Lender, in an amount necessary to maintain
through the Maturity Date a minimum annual Debt Service Coverage Ratio
of at least 1.00 to 1.00 when using the P99 Production Level using the Debt Sizing Base Case delivered
pursuant to Section 5.1(dd)  modified only to reflect any decrease in the projected
annual production of electricity by the Projects as a result of the Upwind
Array Event and the Amortization Schedule shall be amended and revised to take
into account the effect of such prepayment.

 

7.28         Capacity Revenues.

 

In the event that after June 30, 2010, the
Borrower or the Project Companies fail to qualify in respect of the capacity
revenue level as set forth in the Debt Sizing Base Case (which includes a
capacity revenue price of $1 per kilowatt per month) for each 6-month period
after June 30, 2013, then Borrower shall make a mandatory prepayment in
accordance with Section 3.2(c)(iii) not later than the next
Payment Date after June 30, 2010 to the Administrative Agent, for the
account of each Lender, in an amount equal to the difference between the
capacity revenue level as set forth in the Debt Sizing Base Case for the
applicable 6-month period and the actual capacity revenue level for which the
Projects have qualified for such 6-month period.

 

7.29         Survey — Stetson II Project.

 

Upon
the occurrence of Final Completion (as defined in the Stetson II Reed
Agreement) in respect of the Stetson II Project, Borrower shall deliver to
Administrative Agent, in each case in form and substance satisfactory to Administrative Agent, (i) an
as-built ALTA/ASCM survey of the Project Site with respect to the Stetson II
Project, dated within sixty (60) days of the date thereof,  showing that the Stetson II
Project is located entirely in the Stetson II Real Property Interests, and
showing the location of all plotable easements and all utility services, and (ii) an
endorsement to the Title Policy that (w) deletes all exceptions for
mechanics’ liens, (x) redates the Title Policy and all endorsements
attached to the Title Policy to the date of Final Completion, (y) amends
the survey endorsement attached to the Title Policy and all references in the
Title Policy to the initial survey to refer to the new survey required under
clause (i) above and (z) deletes the pending disbursement clause
and sets forth no additional exceptions (including survey exceptions), except
Permitted Liens and those exceptions otherwise approved by the Majority Lenders.

 

76

 

ARTICLE 8.

NEGATIVE COVENANTS OF BORROWER

 

Borrower
covenants and agrees that until all of the Loans and Obligations have been paid
and performed in full, unless otherwise approved by Administrative Agent (with
the consent of the Majority Lenders, unless stated otherwise), Borrower will
(and Borrower will cause each Project Company to, as applicable) perform the
covenants set forth in this Article 8.

 

8.1           Contingent Liabilities.

 

Except
as provided in this Financing Agreement, the Project Documents or the Financing
Documents, Borrower shall not (nor shall Borrower allow any Project Company to)
become liable as a surety, guarantor, accommodation endorser or otherwise, for
or upon the obligation of any other Person or otherwise create, incur, assume
or suffer to exist any contingent obligation exceeding in the aggregate
$250,000; provided, however, that this Section 8.1
shall not be deemed to prohibit (a) the acquisition of goods, supplies or
merchandise in the normal course of business on normal trade credit; (b) the
endorsement of negotiable instruments received in the normal course of its
business; or (c) the incurrence, creation, assumption or existence of
Permitted Debt.

 

8.2           Limitations on Lien.

 

Borrower
shall not (nor shall Borrower allow any Project Company to) create, assume or
suffer to exist any Lien securing a charge or obligation on any properties or
assets of Borrower or any Project Company except for Permitted Liens.  Administrative Agent acknowledges that
Borrower has advised that it intends to amend the Energy Hedge, subject to the
terms and conditions of this Financing Agreement, to permit the creation of a
Lien in favor of the Energy Hedge Provider (the “Energy Hedge Lien”),
and Administrative Agent agrees that, upon request from Borrower, it will in
good faith review and negotiate documents to be executed in connection
therewith in a prompt and reasonable manner.

 

8.3           Indebtedness.

 

Borrower
shall not (nor shall Borrower allow any Project Company to) incur, create,
assume or permit to exist any Debt except Permitted Debt.

 

8.4           Sale or Lease of Assets.

 

Except
with respect to assets not exceeding $450,000 in the aggregate, Borrower shall
not (nor shall Borrower allow any Project Company to) sell, lease, assign,
transfer or otherwise dispose of its assets, whether now owned or hereafter
acquired (a) except in the ordinary course of its business or as
contemplated by the Operative Documents; or (b) except for obsolete, worn
out, damaged or replaced property not used or useful in its business.
Administrative Agent acknowledges that Borrower has informed Administrative
Agent that Evergreen Wind Power V, LLC intends to transfer the assets related
to the 38-mile 115 kV generator lead line (connecting the Projects’ Turbines to
the New England transmission system), including the Transmission Line Real
Property Interests to the Gen Lead Company, and Administrative Agent agrees
that, upon request from Borrower, it, with the consent of the 

 

77

 

Majority Lenders, will in good faith review and
negotiate documents, in form and substance reasonably satisfactory to the
Administrative Agent, to be executed in connection therewith in a prompt and
reasonable manner as long as such documents provide Borrower and the Project
Companies with sufficient transmission line access and rights for full and
unencumbered operation of the Projects (the “Permitted Transmission Line
Transfer”).  Borrower shall cause any
applicable parties to execute consents to collateral assignment and any other
documents reasonably requested by Security Agent.  In connection with the completed transfer of
transmission assets to the Gen Lead Company in accordance herewith, Security
Agent shall execute a discharge of the Mortgage Document executed with respect
to the Transmission Line Real Property Interests.

 

8.5           Changes.

 

Borrower
shall not (nor shall Borrower allow any Project Company to) change the nature
of its business or expand its business beyond the business contemplated in the
Operative Documents.

 

8.6           Distributions.

 

Except
for any distributions (i) made by the Project Companies to the Borrower as
required to enable the Borrower to cause all Project Revenues to be deposited
into the Revenue Account pursuant to Section 6(b) of the Account
Control Agreement, (ii) allowed to be made by the Borrower pursuant to Section 6
of the Account Control Agreement, and (iii) in accordance with the
definition of Restoration Conditions, Borrower shall not (nor shall Borrower
allow any Project Company to) directly or indirectly, (a) make or declare
any distribution (in cash, property or obligation) on, or make any other
payment on account of, any interest in Borrower or any Project Company, (b) make
any payments in respect of any management fees to the Member or any Affiliated
Participant (except if such fees are included in the Base Case Project
Projections or are reflected in the Project Documents).

 

8.7           Investments.

 

Borrower
shall not (nor shall Borrower allow any Project Company to) make or permit to
remain outstanding any advances or loans or extensions of credit to, or
purchase or own any stock, bonds, notes, debentures or other securities of any
Person, except Permitted Investments.

 

8.8           Transactions With Affiliates.

 

Except
for (a) any employment, noncompetition or confidentiality agreement
entered into by Borrower or any Project Company, as applicable, with any of its
respective employees, officers or directors in the ordinary course of business,
(b) as otherwise expressly permitted or contemplated by this Financing
Agreement and the other Operative Documents in effect as of the Closing Date or
(c) transactions in connection with a Permitted Transmission Line
Transfer, Borrower shall not (nor shall Borrower allow any Project Company to)
directly or indirectly enter into any transaction or series of transactions
with or for the benefit of an Affiliate without the prior written approval of
Administrative Agent (with the consent of the Majority Lenders, which consent
shall not be unreasonably withheld) unless such transaction or agreement 

 

78

 

is entered into in the ordinary course of business on
fair and reasonable terms certified by an officer of the Borrower as no less
favorable to such Person than what such Person would obtain in an arm’s length
transaction with a counterparty that is not an Affiliate.

 

8.9           Margin Stock Regulations.

 

Borrower
shall not (nor shall Borrower allow any Project Company to) directly or
indirectly apply any part of the proceeds of any Loan or Project Revenues to
the “buying,” “purchasing” or “carrying” of any margin stock within the meaning
of Regulations T, U or X of the Federal Reserve Board, or any regulations,
interpretations or rulings thereunder.

 

8.10         Partnerships.

 

Except
for Borrower’s membership interests in the Project Companies or each Project
Company’s acquisition of membership interests in the Gen Lead Company in
connection with a Permitted Transmission Line Transfer, Borrower shall not (nor
shall Borrower allow any Project Company to) become a general or limited
partner in any partnership, a joint venturer in any joint venture or a member
in any limited liability company.  Except
for the Project Companies, Borrower shall not form or acquire any subsidiaries.  No Project Company shall form or acquire any
subsidiaries other than in connection with a Permitted Transmission Line
Transfer.

 

8.11         Dissolution.

 

Borrower
shall not (nor shall Borrower allow any Project Company to) liquidate or
dissolve, or sell or lease or otherwise transfer or dispose of all or any
substantial part of its property, assets or business, or combine, merge or
consolidate with or into any other entity.

 

8.12         Amendments; Change Orders.

 

(a)           Borrower shall not, and shall not allow
any Project Company or any Affiliated Participant to, cause, consent to, or
permit, any (i) termination or (ii) amendment, modification (other
than any amendments or modifications contemplated by Section 12.9(c)),
variance, impairment, replacement, or waiver of timely compliance with any
material terms or conditions of, any Project Document or execution of any
Additional Project Document with payments exceeding $250,000 over its term
without the prior written consent of Administrative Agent (acting with the
consent of the Majority Lenders and, as applicable for technical matters, upon
consultation with the Independent Engineer).

 

(b)           Borrower shall not (and shall not allow
any Project Company to) declare Final Completion (as defined in the Stetson II
Reed Agreement) of the Stetson II Project under the Stetson II Reed Agreement
without the prior written consent of Administrative Agent; provided, however,
that such consent shall be deemed to have been given if the Independent
Engineer has certified to the Administrative Agent that Final Completion of the
Stetson II Project under the Stetson II Reed Agreement has occurred.

 

79

 

8.13         Compliance With Operative Documents.

 

Borrower
shall not (nor shall Borrower allow any Project Company to)  permit (to the extent within its control and
permitted by the Operative Documents) to be done any act under the Operative
Documents, or omit or refrain (to the extent within its control and permitted
by the Operative Documents) from any act under the Operative Documents, where such
act done or permitted to be done, or such omission of or refraining from
action, that could be reasonably expected to have a Material Adverse Effect.

 

8.14         Name and Location; Fiscal Year.

 

Neither
Member nor Borrower shall (nor shall Borrower allow any Project Company to)
change its name, its limited liability company structure, its jurisdiction of
organization or change its fiscal year, in each case, without Administrative
Agent’s prior written consent, such consent not to be unreasonably withheld.

 

8.15         Use of Project Site.

 

Borrower
shall not (nor shall Borrower allow any Project Company to) use, or permit to
be used, the Project Site for any purpose other than for the construction,
operation and maintenance of the Projects as contemplated by the Operative
Documents, without the prior written consent of Administrative Agent (with the
consent of the Majority Lenders, acting reasonably), or locate any portion of
any Project on a site other than as permitted by the Operative Documents,
except, in each case, to the extent such use does not conflict with the
business of Borrower (or the Project Companies) 
or Borrower’s (or the Project Companies’) compliance with the Material
Project Documents in effect from time to time.

 

8.16         Assignment.

 

Borrower
shall not (nor shall Borrower allow any Project Company to) assign its rights
hereunder or under any of the Operative Documents to any Person except as
permitted by Section 8.17 and the other Financing Documents.

 

8.17         Transfer of Interest.

 

Borrower shall not (nor shall Borrower allow any
Project Company to) cause, make, suffer, permit or consent to any creation,
sale, assignment or transfer of any ownership interest in Borrower or any
Project Company without the prior written consent of Administrative Agent acting
in good faith (with the consent of all the Lenders, whose consent shall not be
unreasonably delayed or withheld).  As
used herein, the transfer of an ownership interest in Borrower shall mean any
sale, assignment or transfer of the Sponsor’s direct or indirect ownership
interest in the Member.

 

8.18         Abandonment of Projects.

 

Borrower
shall not (nor shall Borrower allow any Project Company to) willfully and
voluntarily abandon the operation of any Project for a continuous period of
more than forty-five (45) days.

 

80

 

8.19         Environmental Matters.

 

Borrower
shall not (nor shall Borrower allow any Project Company to) Release, emit or
discharge into the environment any Hazardous Substances in a manner that could
reasonably be expected to have a Material Adverse Effect.  Borrower shall not (nor shall Borrower allow
any Project Company to) engage in any other act or omission in violation of any
Environmental Laws, Legal Requirements or Applicable Permits that could reasonably
be expected to have a Material Adverse Effect.

 

ARTICLE 9.

COLLATERAL ACCOUNTS

 

9.1           Establishment of Collateral Accounts.

 

On or
prior to the Closing Date, the Borrower and the Security Agent shall cause to
be established at the Securities Intermediary the Operating Account, Revenue
Account, the Disbursement Account, the Debt Service Reserve Account, the
O&M Reserve Account, the Loss Proceeds Account, the Distribution Reserve
Account, the Stetson I Holding Account, the Government Grant Proceeds Account,
the Gen Lead Account and the Energy Hedge Reserve Account.  Each Collateral Account shall be a “securities
account” within the meaning of Section 8-501 of the Uniform Commercial
Code in effect in the State of New York. 
In accordance with the terms of the Collateral Documents, the Borrower
and each Project Company has pledged, assigned and transferred to the Security
Agent for the equal and ratable benefit of the Secured Parties, and has granted
to the Security Agent for the equal and ratable benefit of the Secured Parties
a first- priority, perfected lien on and security interest in, all of its
right, title and interest in, to and under the Collateral Accounts, any
Permitted Investments (or any other property) held in or credited to the
Collateral Accounts and the proceeds of any such Permitted Investments (or such
other property).  The Borrower hereby
irrevocably confirms the authority of the Security Agent to (and directs and
authorizes the Security Agent to) instruct the Securities Intermediary to deposit
into and remit funds from such Collateral Accounts in accordance with the terms
and conditions of this Financing Agreement and the Collateral Documents.

 

9.2           Permitted Investments.

 

Upon
the request of the Borrower, the Security Agent shall instruct Securities
Intermediary to invest and reinvest any balances in any Collateral Account or
any amounts held as Loss Proceeds from time to time solely in Permitted
Investments, and solely at the expense and risk of the Borrower; provided,
however, that (a) if the Borrower fails to provide such request or during
any period when an Event of Default exists and is continuing, the Security
Agent may instruct Securities Intermediary to invest and reinvest such balances
as the Security Agent shall determine in its sole discretion and (b) the
maturity of any Permitted Investment shall not exceed thirty (30) days and
(c) the minimum amount of each such Permitted Investment shall be One
Hundred Thousand Dollars ($100,000) (or, with respect to any Collateral
Account, such lesser amount as equals the balance in such Collateral Account at
the time).  Earnings on Permitted
Investments shall be deposited on the date received by the Securities
Intermediary (or 

 

81

 

as soon as practicable thereafter) in the Revenue
Account for application as provided for in this Financing Agreement.  All such investments and reinvestments shall
be held as provided in the Account Control Agreement.  The Borrower shall bear all risk of loss of
capital from investments in Permitted Investments.  As long as the Security Agent, the
Administrative Agent and the Securities Intermediary complied with all their
respective obligations under the Financing Documents, none of the
Administrative Agent, the Security Agent or the Securities Intermediary shall
be liable for any loss resulting from any investment in any Permitted
Investment or the sale, disposition, redemption or liquidation of such
investment or by reason of the fact that the proceeds realized in respect of
such sale, disposition, redemption or liquidation were less than that which
might otherwise have been obtained, except if such liability is caused by gross
negligence or willful misconduct of such Person.

 

9.3           Foreclosure.

 

Regardless of any Bankruptcy Event which
has been commenced by or against the Borrower, any Collateral or any proceeds
thereof received in connection with the Collateral Documents, in connection
with any sale, release or other disposition of, or collection or realization
on, such Collateral, shall be applied by the Security Agent in the following
order:

 

(a)           first, on a pro rata
basis, to the payment of any and all fees, costs and expenses due and payable
to the Agents and the Lenders in connection with this Financing Agreement and
the other Financing Documents;

 

(b)           second, on a pro rata
basis to any Secured Party which has theretofore advanced or paid any fees to
any Agent or Issuing Bank that would otherwise have been payable under priority
first, in an amount equal to the amount
thereof so advanced or paid by such Secured Party and for which such Secured
Party has not been previously reimbursed;

 

(c)           third, on a pro rata
basis, to the payment of any interest expense then due and payable under this
Financing Agreement and all Interest Fix Fees;

 

(d)           fourth, on a pro rata
basis, to the payment, without duplication, of all principal and other amounts
then due and payable in respect of the Obligations under the Financing
Agreement;

 

(e)           last, the balance, if any, after all of the
Obligations have been paid in full in cash, to the Borrower or to such other
person legally entitled thereto.

 

ARTICLE 10.

EVENTS OF
DEFAULT; REMEDIES

 

10.1         Events of Default.

 

The
occurrence of any of the following events, shall constitute an event of default
(individually, an “Event of Default,” and collectively, the “Events
of Default”) hereunder:

 

82

 

 

(a)           Failure to Make Payments. 
Borrower shall fail to pay, in accordance with the terms of this
Financing Agreement, (i) any principal on any Loan (including any
Scheduled Repayment Amount or any Mandatory Prepayments required hereunder) on
the date that such sum is due; (ii) any interest on any Loan within five (5) days
after the date that such sum is due; or (iii) any fee, cost, charge or
other sum, including amounts in respect of any Liquidation Costs or Interest
Fix Fees due under this Financing Agreement within ten (10) days after the
date notice is provided to Borrower by Administrative Agent that such sum
referenced in this clause (iii) is due.

 

(b)           Judgments.  A final
judgment or judgments shall be entered against Borrower (or any Project
Company) in the aggregate amount of $500,000 or more individually and in the
aggregate (other than (i) a judgment which is fully covered by insurance
or discharged within thirty (30) days after its entry, or (ii) a judgment,
the execution of which is effectively stayed within thirty (30) days after its
entry but only for thirty (30) days after the date on which such stay is
terminated or expires) or that could reasonably be expected to have a Material
Adverse Effect.

 

(c)           Misstatements. 
Any financial statement, representation or warranty made or prepared by,
under the control of or on behalf of Borrower, Member, Sponsor or any Project
Company or pursuant to this Financing Agreement or any other Financing Document
shall prove to have been false or misleading in any material respect as of the
time made or deemed made which could reasonably be expected to have a Material
Adverse Effect; provided, however, that if any such misstatement
is capable of being remedied and has not caused a Material Adverse Effect,
Borrower may correct such misstatement by delivering a written correction of
such misstatement to Administrative Agent, in the form and substance
satisfactory to Administrative Agent, within thirty (30) days of obtaining
knowledge of such misstatement.

 

(d)           Bankruptcy; Insolvency. 
Any of Borrower, Member, any Project Company, any Affiliated Participant
or any other Major Project Participant, as long as such Person remains a Major
Project Participant (each such Person, the “Subject Person”) shall
institute a voluntary case seeking liquidation or reorganization under the
Bankruptcy Law (or any successor statute), or shall consent to the institution
of an involuntary case thereunder against it; or any of the Subject Persons
shall file a petition, answer or consent or shall otherwise institute any
similar proceeding under any other applicable federal, state or other
applicable law, or shall consent thereto; or any of the Subject Persons shall
apply for, or by consent or acquiescence there shall be an appointment of, a
receiver, liquidator, sequestrator, trustee or other officer with similar
powers, or any of the Subject Persons shall make an assignment for the benefit
of creditors (except for the collateral assignments and grants of security
interests to Security Agent pursuant to the Financing Documents); or any of the
Subject Persons shall admit in writing its inability to pay its debts generally
as they become due; or if an involuntary case shall be commenced seeking the
liquidation or reorganization of any of the Subject Persons under the
Bankruptcy Law (or any successor statute) or any 

 

83

 

similar proceeding
shall be commenced against any of the Subject Persons under any other
applicable federal, state or other applicable law and (i) the petition
commencing the involuntary case is not timely controverted; (ii) the
petition commencing the involuntary case is not dismissed within sixty (60)
days of its filing; (iii) an interim trustee is appointed to take
possession of all or a portion of the property, and/or to operate all or any
part of the business of any of the Subject Persons and such appointment is not
vacated within sixty (60) days; or (iv) an order for relief shall have
been issued or entered therein; or a decree or order of a court having
jurisdiction in the premises for the appointment of a receiver, liquidator,
sequestrator, trustee or other officer having similar powers over any of the
Subject Persons or of all or a part of their property, shall have been entered;
or any other similar relief shall be granted against any of the Subject Persons
under any federal, state or other applicable law (any such event, a “Bankruptcy
Event”); provided, however, that solely with respect to any
BOP Contractor, Borrower or any Affiliated Participant shall have sixty (60)
days following any Bankruptcy Event to replace such BOP Contractor with a
Replacement Obligor.

 

(e)           Cross Default. 
Borrower (or any Project Company) shall default for a period beyond any
applicable grace period (i) in the payment of any principal, interest or
other amount due under any agreement (other than the Financing Documents)
involving the borrowing of money or the advance of credit and the outstanding
amount or amounts payable under all such agreements equals or exceeds $500,000
in the aggregate, or (ii) in the payment of any amount or performance of
any obligation due under any guaranty or other agreement (other than the
Financing Documents) if in either case of clauses (i) or (ii), pursuant to
such default, the holder of the obligation concerned exercises its right to
accelerate the maturity of an indebtedness evidenced thereby which equals or
exceeds $500,000.

 

(f)            ERISA.  If Borrower,
any Project Company or any member of the Controlled Group should establish,
maintain, contribute to or become obligated to contribute to any ERISA Plan and
(i) a reportable event (as defined in Section 4043(b) of ERISA)
shall have occurred with respect to any ERISA Plan and, within thirty (30) days
after the reporting of such reportable event to Administrative Agent by
Borrower (or Administrative Agent otherwise obtaining knowledge of such event)
and the furnishing of such information as Administrative Agent may reasonably
request with respect thereto, Administrative Agent shall have notified Borrower
in writing that (1) Administrative Agent has made a determination that, on
the basis of such reportable event, there are reasonable grounds for the
termination of such ERISA Plan by the PBGC or for the appointment by the
appropriate United States District Court of a trustee to administer such ERISA
Plan and (2) as a result thereof, an Event of Default exists hereunder; or
(ii) a trustee shall be appointed by a United States District Court to
administer any ERISA Plan; or (iii) the PBGC shall institute proceedings
to terminate any ERISA Plan; or (iv) a complete or partial withdrawal by
Borrower, any Project Company or any member of the Controlled Group from any
Multiemployer Plan shall have occurred, or any Multiemployer Plan shall enter
reorganization status, become insolvent, or terminate (or notify Borrower, any
Project Company or any member of the 

 

84

 

Controlled Group
of its intent to terminate) under Section 4041A of ERISA and, within
thirty (30) days after the reporting of any such occurrence to Administrative
Agent by Borrower (or Administrative Agent otherwise obtaining knowledge of
such event) and the furnishing of such information as Administrative Agent may
reasonably request with respect thereto, Administrative Agent shall have
notified Borrower in writing that Administrative Agent has made a determination
that, on the basis of such occurrence, an Event of Default exists hereunder; provided,
however, that any of the events described in this Section 10.1(f) could
reasonably be expected to have a Material Adverse Effect provided, further,
that any of the events described in this Section 10.1(f) shall
apply only to (x) one or more ERISA Plans that are single-employer plans
(as defined in Section 4001(a)(15) of ERISA) and under which the aggregate
gross amount of unfunded benefit liabilities (as defined in Section 4001(a)(16)
of ERISA), including vested unfunded liabilities which arise or might arise as
the result of the termination of such ERISA Plan or Plans, and/or (y) one
or more Multiemployer Plans to which the aggregate liabilities of Borrower,
each Project Company and all members of the Controlled Group shall, in each
case, be in an amount that could reasonably be expected to have a Material
Adverse Effect.

 

(g)           Breach of Project Documents. 
Subject to Section 10.1(h), Borrower or any Project Company
(unless waived by the counterparty under the applicable Project Document) or
any Major Project Participant shall be in breach of, or default under, any
Project Document and any applicable cure period thereunder shall have expired
with respect to such breach or default (or, if no cure period is stipulated for
such breach or default, the cure period for such default shall be no longer
than thirty (30) days) or if the giving of notice would allow Person to
terminate such Project Document, and Administrative Agent shall have reasonably
determined (with the consent of the Majority Lenders), and have sent a written
notice to Borrower to that effect, that such breach or default could reasonably
be expected to have a Material Adverse Effect; provided, however,
that with respect to a breach or default by any Major Project Participant, if
Borrower or any Affiliated Participant shall replace such Major Project
Participant with a Replacement Obligor within sixty (60) days of such breach or
default, such breach or default shall not be deemed a default under this
Financing Agreement; provided, further, however, the
Replacement Obligor and the form of such replacement agreement shall be in form
and substance satisfactory to the Administrative Agent and the Lenders.  For purposes of the foregoing, any cure by
any Agent or any Lender on Borrower’s or any Project Company’s behalf with
respect to a breach or default by Borrower or any Project Company under a
Project Document shall not be considered a remedy under this Financing
Agreement for any such breach or default of such Project Document.

 

(h)           Loss of Material Project Document. 
Notwithstanding Section 10.1    (g), if
any Material Project Document shall fail for any reason to be in full force; provided,
however, that Borrower shall have forty-five (45) days following such
failure to cure such failure or enter into a replacement Material Project Document
with a Replacement Obligor.

 

85

 

(i)            Breach of Terms of Financing Documents.

 

(i)            (A) Borrower shall fail to (or
Borrower shall fail to cause any Project Company to) perform or observe any of
the covenants set forth in Sections  7.1,  7.11, 8.1,
8.2, 8.3, 8.4, 8.6, 8.11, 8.17, or 8.18
or (B) Sponsor shall fail to make any payment when due under the Sponsor
Indemnity; or

 

(ii)           Borrower or any Affiliated Participant
shall fail to perform or observe any other covenant to be performed or observed
by it hereunder or under any other Financing Document to which it is a party
not otherwise specifically provided for elsewhere in this Article 10,
and such failure shall continue unremedied for a period of thirty (30) days; provided,
however, that upon notice from Borrower to Administrative Agent, such
cure period shall be extended to such longer period of time as is reasonably
necessary to effect a cure so long as (x) such default could reasonably be
expected to be susceptible of a cure after the initial 30-day cure period and (y) Borrower
or the Project Companies, as applicable, are diligently and continuously
preceding to cure, or cause the cure of, such default; provided, further,
that such extended cure period shall not exceed thirty (30) days from the
expiration of the initial 30-day cure period.

 

(j)            Security.  Any of the
Collateral Documents, once executed and delivered, shall (except as the result
solely of the acts or omissions of the Agents or any Secured Party) fail to
provide the Secured Parties with the first-priority Liens, security interest,
rights, titles, interest, remedies, powers or privileges intended to be created
thereby or cease to be in full force and effect with respect to the Collateral,
or the validity thereof or the applicability thereof to the Loans, the Notes or
any other Obligations purported to be secured or guaranteed thereby or any part
thereof, shall be disaffirmed by or on behalf of Borrower or any Project
Company or there shall occur a default or event of default (however defined)
under any of the Collateral Documents and Administrative Agent (with the
consent of the Majority Lenders) shall determine in its sole discretion that
such default or event of default that could be reasonably expected to have a
Material Adverse Effect.

 

(k)           Loss of Applicable Permits. 
Any Applicable Permit necessary for completion, operation or maintenance
of any Project shall be materially modified, revoked or cancelled by the
issuing agency or other Governmental Authority having jurisdiction, and
Administrative Agent (with the consent of the Majority Lenders) shall have
reasonably determined that such material modification, revocation or
cancellation would be reasonably expected to have a Material Adverse Effect on
the Project and such material modification, revocation or cancellation
continues unremedied for forty-five (45) days from such modification,
revocation or cancellation.  For purposes
of the foregoing, any cure by any Agent or any Lender on Borrower’s or any
Project Company’s behalf with respect to any such material modification,
revocation or cancellation of any Applicable Permit shall not be considered a
remedy under this Financing Agreement.

 

86

 

(l)            Loss of Collateral. 
Borrower or any Project Company, as applicable, ceases to be the sole
direct or beneficial owner of the Collateral or any portion of Borrower’s or
any Project Company’s Collateral material to any Project is seized or
appropriated without fair value being paid therefor such as to allow
replacement of such property and/or prepayment in full of all Obligations and
to allow Borrower in the judgment of Administrative Agent (with the consent of
the Majority Lenders, acting reasonably) to continue satisfying its obligations
hereunder and under the other Operative Documents.

 

(m)          Material Adverse Effect. 
Occurrence of an event or condition that has a Material Adverse Effect.

 

(n)           Stetson II Project Prepayment and
Cure.  Notwithstanding the foregoing
and subject to all terms and conditions set forth in this Section 10.1(n),
upon the occurrence at any time prior to Final Completion (as defined in the
Stetson II Reed Agreement) of the Stetson II Project of any Event of Default
set forth in Sections 10.1(g), (h), (k) and/or (m) relating
solely to the Stetson II Project or Stetson Wind II, LLC, Borrower shall, upon
delivery to Administrative Agent of notice of its intent to Administrative
Agent on or before the expiry of the applicable cure period, have the right to
cure such Event of Default by making the Stetson II Prepayment within five (5) Business Days after
receipt of written notice from Administrative Agent of the required amount of
the Stetson II Prepayment (the “Stetson II Prepayment Notice”); provided,
that if Borrower disputes the prepayment amount set forth in the Stetson II
Prepayment Notice, the Borrower may propose in good faith a revised amount of
the Stetson II Prepayment; provided, further, that in the event
that Administrative Agent and Borrower are unable, after exercising
commercially reasonable efforts, to agree on a revised amount of the Stetson II
Prepayment within five (5) Business Days of Borrower’s receipt of the
Stetson II Prepayment Notice, Borrower shall have the right to cure the
applicable Event of Default by making the Stetson II Prepayment (in the amount
set forth in the Stetson II Prepayment Notice) within two (2) Business
Days after such written notice is received.

 

Notwithstanding any of
the foregoing, the cure right set forth in this Section 10.1(n) is
expressly subject to Borrower taking such actions that may be necessary (as
determined by the Lenders in their sole discretion) to ensure the adequacy of
the Collateral with respect to all remaining Obligations; provided, that
upon the indefeasible payment by Borrower of the Stetson II Prepayment, (i) Lenders’
security interests with respect to the portion of the Collateral related solely
to the Stetson II Project, to the extent not necessary to ensure the adequacy
of the Collateral with respect to all remaining Obligations (as determined by
the Lenders in their sole discretion) shall be terminated and released, (ii) any
remaining Total Bridge Loan Commitment shall terminate and any remaining Total
Term Loan Commitment allocated to the Stetson II Project at such time as
determined by the Administrative Agent (taking into account all debt sizing
requirements contemplated in the Debt Sizing Base Case) shall terminate, (iii) Stetson
Wind II, LLC shall automatically and without further action be 

 

87

 

terminated,
released and discharged from, and no longer be bound by, any and all of its
obligations under this Financing Agreement and the other Loan Documents (except
to the extent necessary to ensure the adequacy of the remaining Collateral, as
determined by the Lenders in their sole discretion, and except for any such
obligations that, by their terms, expressly survive termination), and (iv) none
of Borrower, any Affiliated Participant, Evergreen Wind Power V, LLC nor
Stetson Wind II, LLC shall be bound by any representations, warranties or
covenants of other terms or obligations contained in this Financing Agreement
or any of the Loan Documents as they relate solely to Stetson Wind II, LLC or
the Stetson II Project, and no Default or Event of Default shall be deemed to
have occurred hereunder or any of the Loan Documents as a result of, and any
determination of a Default of Event of Default hereunder or any of the Loan
Documents shall exclude, any action, omission, circumstance or occurrence with
respect to Stetson Wind II, LLC, the Stetson II Project and any other assets of
Stetson Wind II, LLC.

 

(o)           Change of Control. 
Occurrence of any Change of Control.

 

10.2         Remedies.

 

Upon
the occurrence and during the continuation of an Event of Default,
Administrative Agent may, at the election of the Majority Lenders, without
further notice of default, presentment or demand for payment, protest or notice
of non-payment or dishonor, or other notices or demands of any kind, all such
notices and demands being waived, exercise any or all of the following rights
and remedies, in any combination or order that Administrative Agent (with the
consent of the Majority Lenders) may elect, in addition to such other rights or
remedies as the Lenders may have hereunder, under the Collateral Documents or
at law or in equity:

 

(a)           No Loans.  Cancel all
Commitments, refuse to make any Loans, or refuse to make any payments from the
Revenue Account or any other Collateral Account or other funds held by any
Agent or the Securities Intermediary under the Financing Documents for or on
behalf of Borrower.

 

(b)           Cure by Administrative Agent. 
Without any obligation to do so, cure any Event of Default hereunder and
cure any default and render any performance under any Project Documents as the
Majority Lenders in their sole discretion may consider necessary or
appropriate, whether to preserve and protect the Collateral or the Secured
Parties’ interests therein or for any other reason, and all sums so expended,
together with interest on such total amount at the Default Rate (but in no
event shall the rate exceed the maximum lawful rate), shall be repaid by
Borrower to Administrative Agent on demand and shall be secured by the Financing
Documents as if such amounts were Loans, notwithstanding that such expenditures
may, together with amounts advanced under this Financing Agreement, exceed the
amount of the Total Commitment.

 

88

 

(c)           Acceleration. 
Declare and make any or all sums of accrued and outstanding principal of
Loans and accrued but unpaid interest remaining under this Financing Agreement
and evidenced by any or all of the Notes, together with all unpaid fees, costs
(including Liquidation Costs, Interest Fix Fees and charges and amounts due
hereunder or under any other Financing Document) immediately due and payable, provided,
however, that upon an Event of Default occurring under Section 10.1(d),
all such amounts shall become immediately due and payable without further act
of Administrative Agent or Lender or any other Person.

 

(d)           Cash Collateral.  (i) Apply
or execute upon, any amounts on deposit in any Collateral Account, any Loss
Proceeds or Borrower Equity or any other moneys of Borrower on deposit with
Administrative Agent or any Secured Party in the manner provided in the Uniform
Commercial Code and other relevant statutes and decisions and interpretations
thereunder with respect to cash collateral and/or (ii) draw upon or make a
demand under any Collateral Document or any Project Document collaterally
assigned to Security Agent by  Borrower
or any Project Company; and/or (iii) require the cash collateralization of
all Letters of Credit (to the extent of the undrawn Stated Amounts of Letters
of Credit issued and outstanding).

 

(e)           Possession of Project. 
Enter into possession of the Projects and operate and maintain the
Projects, and all sums expended by Administrative Agent in so doing, together
with interest on such total amount at the Default Rate, shall be repaid by
Borrower to Administrative Agent upon demand and shall be secured by the
Financing Documents to the extent provided therein, notwithstanding that such
expenditures may, together with amounts advanced under this Financing
Agreement, exceed the amount of the Total Commitment.

 

(f)            Remedies Under Financing Documents. 
Exercise any and all rights and remedies available to any Agent, Issuing
Bank or Lender under any of the Financing Documents (including making a demand
under the Sponsor Indemnity pursuant to the terms thereof) or under applicable
law, including judicial or non-judicial foreclosure or public or private sale
of any of the Collateral pursuant to the Collateral Documents.

 

ARTICLE 11.

SCOPE OF
LIABILITY

 

Notwithstanding
anything to the contrary in this Financing Agreement or the other Financing
Documents (but subject to the last sentence of this Article 11), no
Lender, Issuing Bank, Agent, Secured Party or other Person shall have any
recourse against any Affiliated Participant (other than Sponsor, Member,
Borrower, each Project Company) or the stockholders or other owners, officers,
directors or employees of any such Person (each, a “Non-Recourse Party”),
for any liability to the Lenders arising in connection with any breach or
default under this Financing Agreement or any Financing Document, except to the
extent the same is enforced against Sponsor, Member, Borrower, the Project
Companies and the Collateral and the rents, issues, profits, proceeds and products
of the Collateral, and the Lenders shall look solely to 

 

89

 

Sponsor, Member, Borrower and the Project Companies
(but not to any Non-Recourse Party or to any distributions received by or
payments allowed to any Non-Recourse Party pursuant to the terms of this
Financing Agreement or any Financing Document) and the Collateral and the
rents, issues, profits, proceeds and products of the Collateral in enforcing
rights and obligations under and in connection with the Financing Documents, provided that (a) the foregoing provisions of this Article 11
shall not constitute a waiver, release or discharge of any of the indebtedness,
or of any of the terms, covenants, conditions, or provisions of this Financing
Agreement, the Notes, any other Collateral Document or other Financing Document
or any Material Project Document, and the same shall continue until all
Obligations have been fully paid, discharged, observed, or performed; and (b) the
foregoing provisions of this Article 11 shall not limit or restrict
the right of the Agents, Issuing Bank and/or the Lenders to name Sponsor,
Member, Borrower, any Project Company or any applicable Person as a defendant
in any action or suit for a judicial foreclosure or for the exercise of any
other remedy under or with respect to this Financing Agreement, the Projects,
the Sponsor Indemnity Agreement, the Mortgage Documents, the Borrower Pledge
and Security Agreement, Member Pledge and Security Agreement, each Guaranty and
Security Agreement or any other Financing Document, or otherwise, or for
injunction or specific performance, so long as no judgment in the nature of a
deficiency judgment shall be enforced against any Non-Recourse Party out of any
property, assets or funds other than the Collateral and the rents, issues,
profits, proceeds or products of the Collateral, and any other property of
Sponsor, Member, Borrower or any Project Company.  Notwithstanding the foregoing, it is
expressly understood and agreed that nothing contained in this Article 11
shall be deemed to (i) limit or restrict any right or remedy of the
Lenders or the Issuing Bank (or any assignee or beneficiary thereof or
successor thereto) with respect to, and each of Sponsor, Member, Borrower, each
Project Company shall remain fully liable to the extent that Sponsor, Member,
Borrower, each Project Company would otherwise be liable for its own actions
with respect to, any fraud, willful misconduct, gross negligence or willful
misrepresentation or (ii) limit in any respect the enforceability against
the parties thereto (including any Non-Recourse Parties) of any Collateral
Documents, any Project Documents or any Operative Document in accordance with
their respective terms.

 

ARTICLE 12.

AGENTS

 

12.1         Appointment, Powers and Immunities.

 

(a)           Each Lender hereby appoints and
authorizes Administrative Agent to act as its agent hereunder and under the
other Financing Documents with such powers as are expressly delegated to
Administrative Agent by the terms of this Financing Agreement and the other
Financing Documents, together with such other powers as are reasonably
incidental thereto.

 

(b)           Each Secured Party hereby appoints and
authorizes Security Agent to act as its agent hereunder and under the other
Financing Documents with such powers as are expressly delegated to Security
Agent by the terms of this Financing Agreement and the other Financing
Documents, together with such other powers as are reasonably incidental
thereto.

 

90

 

12.2         Duties, Responsibilities, Powers and
Immunities of Agents.

 

(a)           Each Agent shall not have any duties or
responsibilities except those expressly set forth in this Financing Agreement
or in any other Financing Document, and shall not be a trustee for, or
fiduciary of, any Lender or any other Secured Party.  Notwithstanding anything to the contrary
contained herein, no Agent shall be required to take any action which is
contrary to this Financing Agreement or any other Financing Documents or any
Legal Requirement or exposes such Agent to any liability.  Each of the Agents, the Lenders and any of
their respective Affiliates shall not be responsible to any other Agent, Lender
for any recitals, statements, representations or warranties made by Borrower,
or any Project Company or any Affiliates thereof contained in this Financing
Agreement or any other Financing Document or in any certificate or other
document referred to or provided for in, or received by any Agent or any Lender
under this Financing Agreement or any other Financing Document, for the value,
validity, effectiveness, genuineness, enforceability or sufficiency of this
Financing Agreement, the Notes, any other Financing Document or any other
document referred to or provided for herein or for any failure by Borrower, any
Project Company or any Affiliates thereof to perform their respective
obligations hereunder or thereunder. 
Each Agent may employ agents and attorneys-in-fact and shall not be
responsible for the negligence or misconduct of any such agents or
attorneys-in-fact selected by it with reasonable care.  No Agent shall be liable to Borrower for
breach by any other Agent under any Financing Document or any Lender in its
capacity solely as Agent, or be liable to any other Agent or any Lender for
breach by Borrower of any Financing Document.

 

(b)           Each Agent and its respective directors,
officers, employees or agents shall not be responsible for any action taken or
omitted to be taken by it or them hereunder or under any other Financing
Document or in connection herewith or therewith, except for its or their own
gross negligence or willful misconduct as determined by a final non-appealable
judgment of a court of competent jurisdiction. 
Without limiting the generality of the foregoing, each Agent (i) may
treat the payee of any Note as the holder thereof until such Agent receives
written notice of the assignment or transfer thereof signed by such payee and
in form and substance satisfactory to such Agent; (ii) may consult with
legal counsel, independent public accountants and other experts selected by it
and shall not be liable for any action taken or omitted to be taken in good
faith by it in accordance with the advice of such counsel, accountants or
experts; (iii) makes no warranty or representation to any Lender or any
other Agent for any statements, warranties or representations made in or in
connection with any Project Document or Financing Document; (iv) shall not
have any duty to ascertain or to inquire as to the performance or observance of
any of the terms, covenants or conditions of any Operative Document on the part
of any party thereto or to inspect the property (including the books and
records) of Borrower, any Project Company or any other Person; and (v) shall
not be responsible to any Lender or any other Agent for the due execution,
legality, validity, enforceability, genuineness, sufficiency or value of any
Operative Document or any other instrument or document furnished pursuant 

 

91

 

hereto or
thereto.  Except as otherwise provided
under this Financing Agreement, each Agent shall take such action with respect
to the Financing Documents as shall be directed, or consented to, by the
Majority Lenders.

 

12.3         Reliance by Agents.

 

Each
Agent shall be entitled to rely upon any certificate, notice or other document
(including any cable, telegram, telecopy or telex) reasonably believed by it to
be genuine and correct and to have been signed or sent by or on behalf of the
proper Person or Persons, and upon advice and statements of legal counsel,
independent accountants and other experts selected by such Agent.  As to any other matters not expressly
provided for by this Financing Agreement, Administrative Agent shall not be
required to take any action or exercise any discretion, but shall be required
to act or to refrain from acting upon instructions or with the consent of the
Majority Lenders (except that Administrative Agent shall not be required to
take any action which exposes Administrative Agent to personal liability or
which is contrary to this Financing Agreement, any other Financing Document or
any Legal Requirement) and shall in all cases be fully protected in acting, or
in refraining from acting, hereunder or under any other Financing Document in
accordance with the instructions or consent of the Majority Lenders, and such
instructions or consent of the Majority Lenders and any action taken or
refraining to act pursuant thereto shall be binding on all Lenders.

 

12.4         Non-Reliance.

 

Each
Lender represents that it has, independently and without reliance on any Agent
or any other Lender, and based on such documents and information as it has
deemed appropriate, made its own appraisal of the financial condition and
affairs of Borrower and each Project Company and decision to enter into this
Financing Agreement and agrees that it will, independently and without reliance
upon any Agent or any other Lender, and based on such documents and information
as it shall deem appropriate at the time, continue to make its own appraisals
and decisions in taking or not taking action under this Financing
Agreement.  Each Agent and Lender shall
not be required to keep informed as to the performance or observance by
Borrower, any Project Company or any Affiliated Participant under this
Financing Agreement or any other document referred to or provided for herein or
to make inquiry of, or to inspect the properties or books of Borrower, any
Project Company or any Affiliated Participant.

 

12.5         Defaults.

 

(a)           Each Agent (acting in its capacity as
Agent and not in any other capacity) shall not be deemed to have knowledge or
notice of the occurrence of any Inchoate Default or Event of Default unless
such Agent has received a written notice from a Lender, another Agent or Borrower,
referring to this Financing Agreement, describing such Inchoate Default or
Event of Default and indicating that such notice is a “notice of default”.  If an Agent receives such a notice of the
occurrence of an Inchoate Default or Event of Default, it shall give notice
thereof to the Lenders and the other Agent. 
Each Agent shall take such action with respect to such Inchoate Default
or Event of Default as is provided in Article 10 of this Financing
Agreement.

 

92

 

 

(b)           Unless and until an Agent shall have
received instructions from the Lenders or the other Agent, as may be
applicable, such Agent may (but shall not be obligated to) take such action, or
refrain from taking such action, with respect to such Inchoate Default or Event
of Default as it shall deem advisable in the best interests of the Lenders (in
case of Administrative Agent) or Secured Parties (in case of Security Agent).

 

12.6         Indemnification.

 

Without
limiting the Obligations of Borrower hereunder, each Lender agrees to indemnify
Administrative Agent and Security Agent, ratably in accordance with the
proportion that (i) the aggregate Commitments and/or Loans of such Lender
bears to (ii) the aggregate of all Commitments and/or Loans, for any and
all liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever which
may at any time be imposed on, incurred by or asserted against Security Agent
or Administrative Agent in any way relating to or arising out of this Financing
Agreement any other Financing Documents or any documents contemplated by or
referred to herein or therein or the transactions contemplated hereby or
thereby or the enforcement of any of the terms hereof or thereof or of any such
other documents; provided, however, that no Lender shall be
liable for any of the foregoing to the extent they arise from Security Agent’s
or Administrative Agent’s gross negligence or willful misconduct as determined
by a final non-appealable judgment of a court of competent jurisdiction.  Each of Administrative Agent and Security
Agent shall be fully justified in refusing to take or to continue to take any
action hereunder unless it shall first be indemnified to its satisfaction by the
Lenders against any and all liability and expense which may be incurred by it
by reason of taking or continuing to take any such action.  Without limitation of the foregoing, each
Lender agrees to reimburse Administrative Agent and Security Agent promptly
upon demand for its ratable share of any out-of-pocket expenses (including
counsel fees) incurred by Security Agent or Administrative Agent in connection
with the preparation, execution, administration or enforcement of, or legal
advice in respect of rights or responsibilities under, the Operative Documents,
to the extent that Security Agent or Administrative Agent are not reimbursed
promptly for such expenses by Borrower.

 

12.7         Successor Agents.

 

Each
Agent acknowledges that its current intention is to remain Agent
hereunder.  Nevertheless, any Agent may
resign at any time by giving fifteen (15) days’ written notice thereof to the
Lenders and Borrower, such resignation to be effective only upon the acceptance
of the appointment of a successor Agent by the Lenders, in case of a successor
Administrative Agent or Security Agent. 
Furthermore, with the consent of Borrower (such consent not to be
unreasonably withheld) any Agent may assign its duties and rights as Agent to
any of its Affiliates satisfying the requirements set forth below upon sixty
(60) days prior written notice to the Lenders, the other Agents and
Borrower.  Upon the occurrence of such
assignment, all rights and obligations of such assigning Agent under the
Financing Documents shall be transferred to such assignee, and the parties
hereto shall execute in conjunction therewith assignment documentation and such
other documentation as shall be necessary or desirable to preserve the
transactions contemplated hereby and to preserve such Agent’s security interest
in the Collateral, if any, all as shall be reasonably satisfactory to such
assignee.  Any Agent may be removed

 

93

 

involuntarily only for a material breach of its duties
and obligations hereunder or under the other Financing Documents or for gross
negligence or willful misconduct as determined by a final non-appealable
judgment of a court of competent jurisdiction in connection with the
performance of its duties hereunder or under the other Financing Documents and
then only upon the affirmative vote of the Majority Lenders (in each case, the “Required
Applicable Lenders”) (excluding such Agent from such vote and such Agent’s
Loans from the amounts used to determine the portion of the Loans necessary to
constitute the Required Applicable Lenders). 
Upon any such resignation or removal, the Required Applicable Lenders
shall have the right to appoint a successor Agent with the consent of Borrower
(unless an Event of Default shall have occurred and be continuing), which
consent shall not be unreasonably withheld. 
If no successor Agent shall have been so appointed by the Required
Applicable Lenders, and shall have accepted such appointment, within thirty (30)
days after the retiring Agent’s giving of notice of resignation or the Lenders’
removal of the retiring Agent, the retiring Agent may, on behalf of the
Lenders, with the consent of Borrower (such consent not to be unreasonably
withheld) appoint a successor Agent, which shall be a Lender, if any Lender
shall be willing to serve, and otherwise shall be a financial institution
having a combined capital and surplus of at least $500,000,000.  Upon the acceptance of any appointment as
Agent under the Operative Documents by a successor Agent, such successor Agent
shall thereupon succeed to and become vested with all the rights, powers,
privileges and duties of the retiring Agent, and the retiring Agent shall be
discharged from its duties and obligations as Agent only under the Financing
Documents.  After any retiring Agent’s
resignation or removal hereunder as Agent, the provisions of this Financing
Agreement shall inure to its benefit as to any actions taken or omitted to be
taken by it while it was Agent under the Operative Documents.

 

12.8         Authorization.

 

(a)           Administrative Agent is hereby authorized
by the Lenders to execute, deliver and perform each of the Financing Documents
to which Administrative Agent is or is intended to be a party and each Lender
agrees to be bound by all of the agreements of Administrative Agent contained
in the Financing Documents.

 

(b)           Security Agent is hereby authorized by
the Secured Parties to execute, deliver and perform each of the Financing
Documents to which such Agent is or is intended to be a party and each Secured Party
agrees to be bound by all of the agreements of such Agent contained in the
Financing Documents.

 

(c)           Borrower irrevocably authorizes each
Agent to disclose any information received in its capacity as Agent to the
other Agents and Lenders.

 

12.9         Other Rights and Powers of Agents.

 

(a)           With respect to its Commitments, the
Loans made by it, the Interest Rate Agreements issued by it and any Note issued
to it, each of Administrative Agent and Security Agent shall have the same
rights and powers under the Operative Documents as any other Lender; and each
Agent may exercise the same as though it were not an Agent.  The term “Lender,” or “Lenders,” shall,
unless otherwise expressly indicated, include each Agent in its individual
capacity.  Each Agent

 

94

 

and its Affiliates
may accept deposits from, lend money to, act as trustee under indentures of,
and generally engage in any kind of business with Borrower or any other Person,
without any duty to account therefor to any of the Lenders, or the other Agent.

 

(b)           Any information acquired by an Agent
which, in its reasonable opinion, is acquired by it other than in its capacity
as Agent will be treated as confidential by such Agent and will not be deemed
to be information possessed by such Agent in its capacity as such.

 

(c)           Administrative Agent shall be entitled to approve an
amendment or modification to any Project Document to the extent it is necessary
to correct any provision that is inconsistent with any other provision in such
Project Document or to the extent such amendment or modification, in the
reasonable determination of Administrative Agent, does not adversely affect the
interests of any Lender.

 

12.10       Security Agent to Hold in Trust.

 

Security
Agent will hold all of its rights under or pursuant to the Collateral Documents
and all sums received by it under this Financing Agreement and under the
Collateral Documents (save for any sums received solely for its own account
pursuant to such documents) in accordance with the terms of this Financing
Agreement and the Collateral Documents in trust for each of the Secured
Parties.

 

12.11       Amendments and Decision Making.

 

Subject
to the terms and conditions as set forth in this Financing Agreement, the
Majority Lenders (or Administrative Agent with the consent in writing of the
Majority Lenders) and Borrower may enter into any amendments, modifications or
supplements to, or waivers of the terms of this Financing Agreement and the
other Financing Documents; provided, that any amendments, modifications
or supplements to, or waivers that would modify Section 2.2 or
otherwise affect the Issuing Bank shall also require the consent of the Issuing
Bank; provided, however, that no such amendment, modification or
supplement shall, without the consent of all the Lenders and the Issuing Bank:

 

(a)           Extend the maturity of any Loan or any of
the Notes or reduce the principal amount thereof, or reduce the rate or change
the time of payment of interest due on any Loan or any Note; or

 

(b)           modify Sections 2.1, 2.3, 2.4, 3.4, 3.5, 3.6,
3.7, 7.1, 7.24, and 8.6; or

 

(c)           reduce the amount or extend the payment
date for any amount due under Article 2; or

 

(d)           increase the amount of the Commitments of
any Lender under this Financing Agreement; or

 

95

 

(e)           reduce or change the time or amount of
payment of any fee due or payable hereunder or under any Financing Document; or

 

(f)            reduce the percentage specified in the
definition of Majority Lenders; or

 

(g)           permit Borrower to assign its rights
under this Financing Agreement except as provided in Section 8.16;
or

 

(h)           amend this Section 12.11; or

 

(i)            release any Collateral from the Lien of
any of the Collateral Documents or release any guaranties under any of the
Collateral Documents or allow release of any funds from any Collateral Account
otherwise than in accordance with the terms hereof.

 

Notwithstanding
anything to the contrary provided in this Section 12.11, any
amendment, modification, supplement or waiver of any provision of Article 12
shall require the prior written consent of each Agent.

 

12.12       Withholding Tax.

 

(a)           Administrative Agent may withhold from
any interest payment to any Lender an amount equivalent to any applicable
withholding tax.  If the forms or other
documentation required by Section 3.4(e) are not delivered to
Administrative Agent, then Administrative Agent may withhold from any interest
payment to any Lender not providing such forms or other documentation, an
amount equivalent to the applicable withholding tax.

 

(b)           If the Internal Revenue Service or any
authority of the United States or other jurisdiction asserts a claim that
Administrative Agent or Borrower did not properly withhold tax from amounts
paid to or for the account of any Lender (because the appropriate form was not
delivered, was inaccurate, was not properly executed, or because such Lender
failed to notify Administrative Agent, Borrower or any other Person of a change
in circumstances which rendered the exemption from, or reduction of,
withholding tax ineffective, or for any other reason, other than gross
negligence or willful misconduct of Administrative Agent or Borrower claiming
indemnity hereunder) such Lender shall indemnify promptly Administrative Agent
and/or Borrower (but in the case of Borrower, only to the extent that Borrower
would not have been required to pay additional amounts or indemnify such Lender
for such tax pursuant to Section 3.4), as applicable, fully for all
amounts paid, directly or indirectly, by such Person as tax or otherwise,
including penalties, additions to tax and interest, together with all expenses
incurred, including legal expenses, allocated staff costs, and any out of
pocket expenses.

 

(c)           If any Lender sells, assigns, grants
participations in, or otherwise transfers its rights under this Financing
Agreement, the participant shall comply and be bound

 

96

 

by the terms of Sections
3.4(d), 3.4(e), 12.12(a) and 12.12(b) as
though it were such Lender.

 

12.13       Substitution of Lender.

 

Should
any Lender (i) be a Defaulting Lender, (ii) otherwise fail to make a
Loan, (iii) fail to provide the forms or other documentation required by Section 3.4(f) in
violation of its obligations under this Financing Agreement, (iv) be
unable to maintain or continue LIBO Rate Loans due to an event occurring under Section 3.6(a),
(v) be unable to maintain or continue Loans due to an event occurring
under Section 3.6(b), (vi) claim increased costs under Section 3.6(c) or
Section 3.6(d), (vii) claim any right to payment under Section 3.4(d),
or (viii) refuse to give timely consent to an amendment, modification or
waiver of the Financing Documents that, pursuant to Section 12.11,
requires consent of all of the Lenders and the consent of at least the Required
Lenders has been obtained with respect thereto (in each case, a “Substitutable
Lender”), Administrative Agent shall (a) in its sole and absolute
discretion, fund the Loan on behalf of the Substitutable Lender or (b) cooperate
with Borrower or any other Lender to find another Person that shall be
acceptable to Administrative Agent and that shall be willing to assume the
Substitutable Lender’s obligations under this Financing Agreement (including
the obligation to make, maintain or continue the Loan which the Substitutable
Lender failed to make but without assuming any liability for damages for
failing to have made, maintained or continued such Loan or any previously
required Loan).  Subject to the
provisions of the next following sentence, such Person shall be substituted for
the Substitutable Lender hereunder upon execution and delivery to
Administrative Agent of an agreement acceptable to Administrative Agent by such
Person assuming the Substitutable Lender’s obligations under this Financing
Agreement, and all principal, interest and fees which would otherwise have been
payable to the Substitutable Lender shall thereafter be payable to such
Person.  Nothing in (and no action taken pursuant
to) this Section 12.13 shall relieve the Substitutable Lender from
any liability it might have to Borrower, to Administrative Agent or to the
other Lenders as a result of its failure to make, maintain or continue such
Loan.

 

12.14       Participations.

 

Nothing
herein provided shall prevent any Lender from selling a participation in its
Loans; provided that (a) no such sale of a
participation shall (i) alter such Lender’s obligations hereunder, or (ii) cause
an increase in any expense or cost to Borrower including pursuant to Section 3.4
or otherwise under this Financing Agreement, and (b) any agreement
pursuant to which any Lender may grant a participation in its rights with
respect to its Loans shall provide that, with respect to such Loans, such
Lender shall retain the sole right and responsibility to exercise the rights of
such Lender, and enforce the obligations of Borrower relating to such Loans,
including the right to approve any amendment, modification or waiver of any
provision of this Financing Agreement or any other Financing Document and the
right to take action to have the Obligations (and the Notes) declared due and
payable pursuant to Article 10. 
Each Lender that sells a participation in its Commitments or Loans shall
provide notice of such sale to Borrower no later than ten (10) Business
Days after the date of any such sale.  No
recipient of a participation in any Loans of any Lender shall have any rights
under this Financing Agreement or shall be entitled to any reimbursement for
Taxes, Other Taxes, increased cost or reserve

 

97

 

requirements under Section 3.4 or 3.6
or any other indemnity or payment rights against Borrower.

 

12.15       Transfer of Loans; Commitments.

 

Notwithstanding
anything else herein to the contrary, any Lender, after receiving the prior
written consent of Administrative Agent and the Issuing Bank, such consent not
to be unreasonably withheld or delayed, and, prior to the occurrence and
continuation of an Event of Default, Borrower, such consent not to be
unreasonably withheld or delayed, may from time to time, at its option, sell,
assign, transfer, negotiate or otherwise dispose of all or a portion of its
Loans and Commitments (including the Lender’s interest in this Financing
Agreement and the other Financing Documents) to any bank, insurance company or
other financial institution; provided, however, that (i) no
Lender (including any assignee of any Lender) may assign any portion of its
Loans and Commitments to a new lender if, at the time of transfer, such
assignment would result, if the circumstances (including Governmental Rules) at
the time of such transfer were unchanged or if the change in such circumstances
does not give rise to or increase the costs described in this sentence, in
claims being made by such new lender, for costs pursuant to Section 3.4
or Section 3.6 hereof in excess of those which could be made by the
assigning Lender were it not to make such assignment, unless such new lender
waives its right to claim such costs or unless Borrower consents to such
transfer and (ii) in no event shall the consent of the Borrower be
required in respect of any such assignments, transfers or other dispositions
described above from a Lender to an Affiliate of such Lender and such Lender
confirms to Borrower in writing that no material increased costs under Section 3.4
or Section 3.6 could reasonably be expected to result from such
transfer.  In the event of any such
assignment, (a) the assigning Lender’s Proportionate Share of Loans and
Commitments shall be reduced by the amount of the Proportionate Share of Loans
and Commitments assigned to the new lender, (b) the parties to such
assignment shall execute and deliver to Administrative Agent an assignment
agreement in substantially the form of Exhibit N attached hereto, evidencing
such sale, assignment, transfer or other disposition and evidencing the
assumption by the new Lender of its Proportionate Share of Loans and
Commitments; (c) Borrower shall (A) execute and deliver to such new
lender a new Note in the form attached hereto as Exhibit B-1, in a
principal amount equal to its Proportionate Share of the Loans being assigned,
and (B) execute and exchange with the assigning Lender a replacement note
for the Note then held by such Lender in an amount equal to the Proportionate
Share of the Loans retained by the Lender, if any, and (d) the assigning
Lender shall cancel and return any replaced Note to Borrower promptly after the
effectiveness of such assignment. 
Administrative Agent shall be paid an assignment fee of $3,000 by the
assigning Lender for each assignment made pursuant to this Section 12.15,
unless waived by Administrative Agent. 
For greater certainty, it is the intention of the parties that transfer
of a Note among Lenders pursuant to the terms and conditions of this Financing
Agreement may be effected only by surrender and reissuance of such Note by
Borrower or by issuance of a replacement Note by Borrower.  Thereafter, such new lender shall be deemed
to be a Lender and shall have all of the rights and duties of the assigning
Lender (except as otherwise provided in this Article 12), in
accordance with its Proportionate Share of Loans and Commitments, under each of
the Financing Documents.  For greater
certainty, other than as set forth in Section 14.4, the costs of
the foregoing shall not be for the account of Borrower.

 

98

 

12.16       Laws.

 

Notwithstanding
the foregoing provisions of this Article 12, no sale, assignment,
transfer, negotiation or other disposition of the interests of any Lender
hereunder or under the other Financing Documents shall be allowed if it would
require registration under the Securities Act of 1933, as amended, any other
federal securities laws or regulations or the securities laws or regulations of
any applicable jurisdiction.  Borrower
shall, from time to time at the request and expense of the Lenders, execute and
deliver to Administrative Agent, or to such party or parties as Administrative
Agent may designate, any and all further instruments and take such further
actions as may in the opinion of Administrative Agent be reasonably necessary
or advisable to give full force and effect to such disposition.

 

12.17       Assignability to Federal Reserve Bank.

 

Notwithstanding
any other provision contained in this Financing Agreement or any other
Financing Document to the contrary, any Lender may assign all or any portion of
the Loans or Notes held by it to any Federal Reserve Bank or the United States
Treasury as collateral security pursuant to Regulation A of the Federal Reserve
Board and any Operating Circular issued by such Federal Reserve Bank; provided,
however, that any payment in respect of such assigned Loans or Notes
made by Borrower to or for the account of the assigning and/or pledging Lender
in accordance with the terms of this Financing Agreement shall satisfy Borrower’s
obligations hereunder in respect to such assigned Loans or Notes to the extent
of such payment.  No such assignment
shall release the assigning Lender from its obligations hereunder and in no
event shall such Federal Reserve Bank be considered to be a “Lender” or be
entitled to require the assigning Lender to take or omit to take any action
hereunder.

 

12.18       Response to Borrower Requests.

 

Each Agent and
Lender shall endeavor to act as diligently as practicable in the review of
documents, the making of determinations or the consideration of requests for
consents, approvals, waivers or amendments required to be reviewed, made or
considered by the Agents or Lenders, as the case may be, as contemplated by and
in accordance with the provisions of this Financing Agreement and the other
Operative Documents.  Borrower shall
provide each Agent with reasonable advance written notice of the expected occurrence
of any such requirements and, at the reasonable request of Borrower and to the
extent required by this Financing Agreement, each Agent shall so advise the
Lenders.  Borrower shall provide such
documents and information to Administrative Agent as Administrative Agent or
any Lender (through Administrative Agent) may reasonably consider necessary or
advisable, and shall otherwise cooperate with the Agents and the Lenders to
permit the Agents and the Lenders effectively to review such documents, make
such determinations or consider such requests for consents, approvals, waivers
or amendments.

 

99

 

ARTICLE 13.

INDEPENDENT
CONSULTANTS

 

13.1         Removal and Fees.

 

Administrative
Agent (with the consent of the Majority Lenders in their reasonable discretion),
to the extent consistent with the terms of any letter agreement of Borrower
with an Independent Consultant, may remove from time to time, any one or more
of the Independent Consultants and appoint replacements reasonably acceptable
to Borrower.  Notice of any replacement
of Independent Consultant shall be given by Administrative Agent to Borrower,
the other Agents, the Lenders and to the Independent Consultant being
replaced.  All reasonable fees and
expenses of the Independent Consultants (whether the original Independent
Consultants or replacements) shall be paid by Borrower; provided, however,
that unless an Event of Default shall have occurred and be continuing,
Administrative Agent shall request that each such Independent Consultant
provide Borrower with its proposed scope of work and proposed budget therefor,
and Administrative Agent shall consult with Borrower with regard to the matters
contained therein.

 

13.2         Duties.

 

Each
Independent Consultant shall be contractually obligated to Administrative Agent
to carry out the activities required of it in this Financing Agreement and as
otherwise requested by Administrative Agent and shall be responsible solely to
Administrative Agent.  Borrower
acknowledges that it will not have any cause of action or claim against any
Independent Consultant resulting from any decision made or not made, any action
taken or not taken or any advice given by such Independent Consultant in the
due performance in good faith of its duties to Administrative Agent hereunder,
except to the extent arising from such Independent Consultant’s gross
negligence or willful misconduct.

 

13.3         Independent Consultants’ Certificates.

 

Borrower
shall provide such documents and information to the Independent Consultants as
they may reasonably consider necessary in order for the Independent Consultants
to deliver annually to Administrative Agent a certificate setting forth a full
report on the status of the Project and such other information and
certification as Administrative Agent may reasonably require from time to time.

 

13.4         Certification of Dates.

 

Administrative
Agent shall request that the Independent Consultants act diligently in the
issuance of all certificates and reports required to be delivered by the
Independent Consultants hereunder, if their issuance is appropriate.  Borrower shall provide the Independent
Consultants with reasonable notice of the expected occurrence of any such dates
or events that would require certificates of such Independent Consultants
hereunder.

 

100

 

ARTICLE 14.

MISCELLANEOUS

 

14.1         Addresses.

 

Any
communications between the parties hereto or notices provided herein to be
given may be given to the following addresses:

 

	
  If to
  Administrative

  	
   

  	
  BNP Paribas

  
	
  Agent or Issuing
  Bank:

  	
   

  	
  787 Seventh
  Avenue

  
	
   

  	
   

  	
  New York,
  NY  10019

  
	
   

  	
   

  	
  Attention:

  	
  Project
  Finance & Utilities

  
	
   

  	
   

  	
  Facsimile:

  	
  (212)
  841-2146

  
	
   

  	
   

  	
   

  
	
  If to
  Security Agent:

  	
   

  	
  BNP Paribas

  
	
   

  	
   

  	
  787 Seventh
  Avenue

  
	
   

  	
   

  	
  New York,
  NY  10019

  
	
   

  	
   

  	
  Attention:

  	
  Project
  Finance & Utilities

  
	
   

  	
   

  	
  Facsimile:

  	
  (212)
  841-2146

  
	
   

  	
   

  	
   

  
	
  If to
  Borrower:

  	
   

  	
  Stetson
  Holdings, LLC

  
	
   

  	
   

  	
  c/o First
  Wind Energy, LLC

  
	
   

  	
   

  	
  179 Lincoln
  Street, Suite 500

  
	
   

  	
   

  	
  Boston, MA
  02111

  
	
   

  	
   

  	
  Attention:

  	
  Secretary

  
	
   

  	
   

  	
  Facsimile:

  	
  (617)
  960-2889

  
	
   

  	
   

  	
   

  
	
  If to any Lender:

  	
   

  	
  To its address set forth for its Lending Office in Exhibit
  I.

  

 

All
notices or other communications required or permitted to be given hereunder
shall be in writing and shall be considered as properly given (a) if
delivered in person; (b) if sent by a nationally recognized overnight
delivery service; (c) in the event overnight delivery services are not
readily available, if mailed by first class mail, postage prepaid, registered
or certified with return receipt requested; or (d) if sent by facsimile or
other direct written electronic means with a confirmation of receipt.  Notice so given shall be effective upon
receipt by the addressee, except that communication or notice so transmitted by
facsimile or other direct written electronic means shall be deemed to have been
validly and effectively given on the day (if a Business Day and, if not, on the
next following Business Day) on which it is transmitted if transmitted before
4:00 p.m., recipient’s time, and if transmitted after that time, on the
next following Business Day; provided, however, that if any
notice is tendered to an addressee and the delivery thereof is refused by such
addressee, such notice shall be effective upon such tender.  Any party shall have the right to change its
address for notice hereunder to any other location by giving of
thirty (30) days’ written notice to the other parties in the manner set
forth hereinabove.

 

101

 

Borrower
agrees and acknowledges that the Agents, Issuing Bank and the Lenders may act
upon any notice or other communication delivered to them by telecopy by or on
behalf of Borrower in accordance with the instructions contained therein that
are received by the Agents, Issuing Bank or the Lenders from persons purported
to be, or which instructions appear to be authorized by Borrower.  Borrower further agrees to indemnify and hold
the Agents, Issuing Bank and the Lenders harmless from any claims by virtue of
their actions on the basis of instructions contained in any telecopied notice
from Borrower as such instructions were understood by the Agents and the
Lenders except for claims relating solely from the gross negligence or willful
misconduct of the Agents, Issuing Bank or Lenders, as applicable, as determined
by a final non-appealable judgment of a court of competent jurisdiction.  The Agents, Issuing Bank and Lenders shall
not be liable for any errors in transmission or the illegibility of any
telecopied documents delivered by or on behalf of Borrower.  In the event that Borrower sends the Agents,
Issuing Bank and Lenders an executed original of a previously telecopied notice
or other communication, the Agents, Issuing Bank or Lenders, as applicable,
shall have no duty to compare it against such notice previously received by
telecopy nor shall the Agents, Issuing Bank or Lenders have any responsibility
should the contents of the original notice differ from the telecopied notice
acted upon by the Agents, Issuing Bank or Lenders, as applicable.

 

14.2         Additional Security; Right to-Set Off.

 

Any
deposits or other sums at any time credited or due from Lenders and any Project
Revenues, securities or other property of Borrower or any Project Company in
the possession of any of the Agents may at all times be treated as collateral
security for the payment of the Loans and the Notes and all other obligations
of Borrower to the Lenders under this Financing Agreement and the other
Financing Documents and Borrower’s and each Project Company’s interest in such
deposits and other property have been pledged and assigned as collateral
security to Security Agent pursuant to the Borrower Pledge and Security
Agreement and each Guaranty and Security Agreement.  Regardless of the adequacy of any other
collateral, any Lender (but only with the consent of Security Agent) may execute
or realize on the Lenders’ security interest in any such deposits or other sums
credited by or due from the Lenders to Borrower, and may apply any such
deposits or other sums to or set them off against Borrower’s obligations to
Lenders under the Notes and this Financing Agreement at any time after the
occurrence and during the continuance of any Event of Default.

 

14.3         Delay and Waiver.

 

No
delay or omission to exercise any right, power or remedy accruing to the
Agents, Issuing Bank or the Lenders upon the occurrence of any Event of Default
or Inchoate Default or any breach or default of Borrower under this Financing
Agreement or any other Financing Document shall impair any such right, power or
remedy of the Agents, Issuing Bank or the Lenders, nor shall it be construed to
be a waiver of any such breach or default, or an acquiescence therein, or of or
in any similar breach or default thereafter occurring, nor shall any waiver of
any single Event of Default, Inchoate Default or other breach or default be deemed
a waiver of any other Event of Default, Inchoate Default or other breach or
default theretofore or thereafter occurring. 
Any waiver, indulgence, permit, consent or approval of any kind or
character on the part of the Agents, Issuing Bank and/or the Lenders of any
Event of Default, Inchoate Default or other breach or default under this
Financing Agreement or any other

 

102

 

 

Financing Document, or any waiver on the part of the
Agents, Issuing Bank and/or the Lenders of any provision or condition of this
Financing Agreement or any other Financing Document, must be in a writing
expressly referencing this Financing Agreement and shall be effective only to
the extent in such writing specifically set forth.  All remedies, either under this Financing
Agreement or any other Financing Document or by law or otherwise afforded to
the Agents, Issuing Bank and the Lenders, shall be cumulative and not
alternative.

 

14.4         Costs, Expenses and Attorneys’ Fees.

 

Subject
to limitations set forth in the relevant letter agreements with Independent
Consultants, Borrower shall pay to each Agent all of its reasonable costs and
expenses in connection with the preparation, negotiation, closing and costs of
administering this Financing Agreement and the documents contemplated hereby,
including the reasonable fees, expenses and disbursements of Milbank, Tweed,
Hadley & McCloy LLP and other attorneys retained by such Agent
(subject to the prior consent of Borrower, not to be unreasonably withheld) in
connection with the preparation of such documents and any amendments hereof or
thereof, or the negotiation, closing or administration of this Financing Agreement,
and the reasonable fees, expenses and disbursements of the Independent
Consultants in connection with this Financing Agreement or the Loans or
Commitments, and the reasonable travel and out-of-pocket costs incurred by such
Persons.  Borrower will reimburse each
Agent, Issuing Bank and the Lenders for all costs and expenses, including
reasonable attorneys’ fees, expended or incurred by such Agent, Issuing Bank
and/or any Lender in enforcing this Financing Agreement or the other Financing
Documents or exercising any rights under any Consent in connection with an
Event of Default or Inchoate Default, in actions for declaratory relief in any
way related to this Financing Agreement, in collecting any sum which becomes
due to such Agent, Issuing Bank and/or any Lender on the Notes or under the
Financing Documents, or in connection with the participation by such Agent,
Issuing Bank and any Lender in any legal proceedings under the Turbine Supply
Agreement, provided, however, that Borrower shall not be
responsible for the payment of any fees, costs, or other liabilities arising
out of any dispute between or among Administrative Agent, Issuing Bank, the
Lenders, any counterparty of Borrower under the Interest Rate Agreements, and
their respective Affiliates to the extent, and only to the extent, that such
dispute does not arise out of any alleged failure of Borrower or any Affiliated
Participant to perform their respective obligations under the Financing
Documents.

 

14.5         Attorney-In-Fact.

 

For
the purpose of allowing the Agents to exercise their rights and remedies
provided in Article 10 (as may be applicable) following the
occurrence and during the continuation of a Event of Default, Borrower hereby
constitutes and appoints each Agent its true and lawful attorney-in-fact, with
full power of substitution.

 

14.6         Entire Agreement; Amendments.

 

This
Financing Agreement and any agreement, document or instrument attached hereto
or referred to herein integrate all the terms and conditions mentioned herein
or incidental hereto and supersede all oral negotiations and prior writings in
respect to the subject matter hereof.  In
the event of any conflict between the terms, conditions and provisions of this 

 

103

 

Financing Agreement and any such agreement, document
or instrument, the terms, conditions and provisions of this Financing Agreement
shall prevail.  This Financing Agreement
may only be amended or modified by an instrument in writing signed by Borrower
and the Agents (acting on behalf of or with the consent of the Lenders and the
Issuing Bank, in each case, as required herein or in other Financing Documents)
in accordance with the terms of this Financing Agreement.

 

14.7         Governing Law.

 

THIS
FINANCING AGREEMENT, AND ANY INSTRUMENT OR AGREEMENT REQUIRED HEREUNDER (TO THE
EXTENT NOT EXPRESSLY PROVIDED FOR THEREIN), SHALL BE GOVERNED BY, AND CONSTRUED
UNDER, THE LAWS OF THE STATE OF NEW YORK, APPLICABLE TO CONTRACTS MADE AND TO
BE PERFORMED IN SUCH STATE AND WITHOUT REFERENCE TO CONFLICTS OF LAWS RULES
THEREOF (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS
LAW).

 

14.8         Severability.

 

In
case any one or more of the provisions contained in this Financing Agreement
should be invalid, illegal or unenforceable in any respect, the validity,
legality and enforceability of the remaining provisions shall not in any way be
affected or impaired thereby, and the parties hereto shall enter into good
faith negotiations to replace the invalid, illegal or unenforceable provision.

 

14.9         Headings.

 

Paragraph
headings and a table of contents have been inserted in this Financing Agreement
as a matter of convenience for reference only and it is agreed that such
paragraph headings are not a part of this Financing Agreement and shall not be
used in the interpretation of any provision of this Financing Agreement.

 

14.10       Accounting Terms.

 

All
accounting terms not specifically defined herein shall be construed in
accordance with GAAP and practices consistent with those applied in the preparation
of the financial statements of Borrower, each Project Company and Major Project
Participants, to the extent required herein, submitted by Borrower to
Administrative Agent, and (unless otherwise indicated) all financial data of
Borrower, each Project Company  and Major
Project Participants, to the extent required herein, submitted pursuant to this
Financing Agreement shall be prepared in accordance with such principles and
practices.

 

14.11       Additional Financing.

 

The
parties hereto acknowledge that the Lenders have made no agreement or
commitment to provide any financing except as set forth herein.

 

104

 

14.12       No Partnership, Etc.

 

The
Agents, Issuing Bank, the Lenders and Borrower intend that the relationship
between them shall be solely that of creditor and debtor.  Nothing contained in this Financing
Agreement, the Notes or in any of the other Financing Documents shall be deemed
or construed to create a partnership, tenancy-in-common, joint tenancy, joint
venture or co-ownership by or between or among the Agents, Issuing Bank, the
Lenders and Borrower or any other Person. 
None of the Agents, Issuing Bank or the Lenders shall be in any way
responsible or liable for the debts, losses, obligations or duties of Borrower,
any Project Company or any other Person with respect to the Project or
otherwise.  All obligations to pay real
property or other taxes, assessments, insurance premiums, and all other fees
and charges arising from the ownership, operation or occupancy of the Project
and to perform all obligations under agreements and contracts relating to the
Project shall be the sole responsibility of Borrower and the Project Companies,
as applicable.

 

14.13       Mortgage Documents/Collateral Documents.

 

The
Loans and the other Obligations are secured in part by the Mortgage Documents
encumbering certain properties in Maine. 
Reference is hereby made to the Mortgage Documents and the other
Collateral Documents for the provisions, among others, relating to the nature
and extent of the security provided thereunder, the rights, duties and
obligations of Borrower and the rights of the Agents, Issuing Bank and the
Lenders with respect to such security.

 

14.14       Limitation on Liability.

 

NO
CLAIM SHALL BE MADE BY ANY PARTY HERETO OR ANY OF ITS AFFILIATES, DIRECTORS,
EMPLOYEES, ATTORNEYS OR AGENTS AGAINST ANY OTHER PARTY HERETO OR ANY OF ITS
AFFILIATES, DIRECTORS, EMPLOYEES, ATTORNEYS OR AGENTS FOR ANY SPECIAL,
INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES (WHETHER OR NOT THE CLAIM THEREFOR
IS BASED ON CONTRACT, TORT, DUTY IMPOSED BY LAW OR OTHERWISE), IN CONNECTION
WITH, ARISING OUT OF OR IN ANY WAY RELATED TO THE TRANSACTIONS CONTEMPLATED BY
THIS FINANCING AGREEMENT OR THE OTHER OPERATIVE DOCUMENTS OR ANY ACT OR
OMISSION OR EVENT OCCURRING IN CONNECTION THEREWITH; AND EACH PARTY HEREBY
WAIVES, RELEASES AND AGREES NOT TO SUE UPON ANY SUCH CLAIM FOR ANY SUCH
SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES, WHETHER OR NOT ACCRUED
AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR.

 

14.15       Waiver of Jury Trial.

 

THE
AGENTS, THE ISSUING BANK, THE LENDERS AND BORROWER HEREBY KNOWINGLY,
VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL
BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR
IN CONNECTION WITH, THIS FINANCING AGREEMENT OR ANY OTHER OPERATIVE DOCUMENT,
OR ANY 

 

105

 

COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER VERBAL OR WRITTEN), OR ACTIONS OF THE AGENTS, ISSUING BANK, THE
LENDERS OR BORROWER.  THIS PROVISION IS A
MATERIAL INDUCEMENT FOR THE AGENTS, ISSUING BANK AND THE LENDERS TO ENTER INTO
THIS FINANCING AGREEMENT.

 

14.16       Consent to Jurisdiction.

 

The
Agents, the Issuing Bank, the Lenders and Borrower (on behalf of itself and on
behalf of Sponsor, Member, each Project Company and each Affiliated
Participant) agree that any legal action or proceeding by or against Borrower
or with respect to or arising out of this Financing Agreement, the Notes or any
other Financing Document may be brought in or removed to the courts of
competent jurisdiction of the State of New York sitting in The City of New York
in New York County and of the United States of America in and for the Southern
District of New York, as Administrative Agent may elect.  By execution and delivery of this Financing
Agreement, the Agents, the Lenders, Issuing Bank and Borrower (on behalf of
itself and on behalf of Sponsor, Member, each Project Company and each
Affiliated Participant) accept, for themselves and in respect of their
property, generally and unconditionally, the jurisdiction of the aforesaid
courts.  The Agents, the Lenders, the
Issuing Bank and Borrower (on behalf of itself and on behalf of Sponsor,
Member, each Project Company and each Affiliated Participant) irrevocably
consent to the service of process out of any of the aforementioned courts in
any such action or proceeding by the mailing of copies thereof by registered or
certified airmail, postage prepaid, to the Agents, Issuing Bank, the Lenders or
Borrower (on behalf of itself and on behalf of Sponsor, Member, each Project
Company and each Affiliated Participant), as the case may be, at their
respective addresses for notices as specified herein and that such service
shall be effective five (5) Business Days after such mailing.  Nothing herein shall affect the right to
serve process in any other manner permitted by law or the right of the Agents,
Issuing Bank or any Lender to bring legal action or proceedings in any other
competent jurisdiction, including judicial or non-judicial foreclosure of the
Mortgage Documents.  The Agents, the
Issuing Bank, the Lenders and Borrower (on behalf of itself and on behalf of
Sponsor, Member, each Project Company and each Affiliated Participant) hereby
waive any right to stay or dismiss any action or proceeding under or in
connection with any or all of the Project, this Financing Agreement or any
other Financing Document brought before the foregoing courts on the basis of forum non-conveniens.

 

14.17       Usury.

 

Nothing
contained in this Financing Agreement or the Notes shall be deemed to require
the payment of interest or other charges by Borrower or any other Person in
excess of the amount which the holders of the Notes may lawfully charge under
any applicable usury laws.  In the event
that the holders of the Notes shall collect moneys which are deemed to
constitute interest which would increase the effective interest rate to a rate
in excess of that permitted to be charged by applicable law, all such sums
deemed to constitute interest in excess of the legal rate shall, upon such
determination, at the option of the holder of the Notes, be returned to
Borrower or credited against the principal balance of the Notes then
outstanding.

 

106

 

 

14.18       Successors and Assigns.

 

The
provisions of this Financing Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective permitted successors and
assigns.  Borrower may not assign or
otherwise transfer any of its rights under this Financing Agreement without the
prior written consent of Administrative Agent (with the consent of all Lenders
and the Issuing Bank).

 

14.19       Confidentiality.

 

The
Agents, Issuing Bank and the Lenders agree to use best efforts to maintain the
confidential nature of, and shall not use or disclose the financial information
or other confidential information related to Borrower, the Project Companies or
any of Borrower’s Affiliates without first obtaining Borrower’s prior written
consent; provided that nothing in this Section 14.19
shall require any Agent, Issuing Bank or any Lender to obtain any consent of
Borrower in connection with (and Borrower hereby authorizes the Agents, Issuing
Bank and each Lender to freely disclose any financial information or
confidential information with respect to Borrower, the Project Companies, the
Project, any Project Document or any Financing Document without any consent of
Borrower, to the extent otherwise required, in connection with) (a) exercising
any of their respective rights under the Financing Documents, including those
exercisable upon the occurrence of an Event of Default; (b) providing
information about Borrower, the Project Companies, the Project, any Project
Document or any Financing Document or the parties thereto to any other Lender
or prospective Lender or any Person acquiring, or potentially acquiring, any
interest of the Lenders under the Financing Agreement and any such Person’s
directors, officers, employees, agents and consultants in connection with their
credit evaluation of Borrower, the Project Companies or otherwise (if, in the
case of any such Person potentially acquiring such an interest from any Lender,
such Person agrees to be bound by the terms of a confidentiality agreement
substantially similar to this Section 14.19); (c) any
situation in which any Agent, Issuing Bank or any Lender (i) is required
by law or required by any Governmental Authority or the National Association of
Insurance Commissioners to disclose information or (ii) is requested by
bank examiners to disclose information (provided that in each instance under
clauses (i) and (ii) above such Person uses reasonable efforts to
maintain confidentiality of the information disclosed); (d) providing
information to legal counsel to any Agent, Issuing Bank or any Lender in
connection with the transactions contemplated by any of the Financing Documents
(if such Lender informs such counsel of the confidential nature of such
information and requires that it be kept confidential except as permitted
herein); (e) providing information to independent accountants, auditors or
other expert consultants retained by any Agent, Issuing Bank or any Lender (if
such Lender informs such auditors or consultants of the confidential nature of
such information and requires that it be kept confidential except as permitted
herein); (f) any information that is in or becomes part of the public
domain otherwise than through a wrongful act of any Agent, Issuing Bank, any
Lender or any employees or agents thereof or other Persons to whom confidential
information is disclosed under subsections (b), (c), (d) or (e) above;
(g) any information that is in the possession of any Agent, Issuing Bank
or any Lender prior to receipt thereof from Borrower or any other Person known
to any Agent, Issuing Bank or any Lender to be acting on behalf of Borrower; (h) any
information that is independently developed by any Agent, Issuing Bank or any
Lender; and (i) any information that is disclosed to any Agent, Issuing
Bank or any Lender by a third 

 

107

 

party that is not known or reasonably suspected by
such Agent, Issuing Bank or Lender to be bound by a confidentiality agreement
with, or other contractual, legal or fiduciary obligation of confidentiality
to, Borrower, any Project Company or any of Borrower’s Affiliates, with respect
to such information.

 

Notwithstanding
anything to the contrary set forth in this Section 14.19, after
notice to Borrower, any Agent, Issuing Bank or Lender shall be free to disclose
any information regarding the tax structure of the transactions contemplated in
this Financing Agreement to any relevant Governmental Authority requiring such
information.

 

14.20       Counterparts.

 

This
Financing Agreement and any amendment, waivers, consents or supplements hereto
or in connection herewith may be executed in one or more counterparts, each of
which when executed and delivered shall be deemed an original, but all such
counterparts together shall constitute but one and the same instrument.

 

14.21       Patriot Act Compliance.

 

Administrative
Agent hereby notifies Borrower that, pursuant to the requirements of the
Patriot Act, it and any Lender shall be required to obtain, verify and record
information that identifies Borrower and each Project Company, which
information includes, without limitation, the names and addresses and other
information that will allow it or any Lender to identify Borrower and each
Project Company in accordance with the requirements of the Patriot Act.  Borrower shall promptly deliver information
described in the immediately preceding sentence when requested by
Administrative Agent, Issuing Bank or any Lender in writing pursuant to the
requirements of the Patriot Act.

 

[SIGNATURES FOLLOW]

 

108

 

IN
WITNESS WHEREOF,
the parties have caused this Financing Agreement to be duly executed and
delivered by their officers thereunto duly authorized as of the day and year
first above written.

 

 

	
   

  	
  STETSON
  HOLDINGS, LLC

  
	
   

  	
  a Delaware
  limited liability company

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Evelyn
  Lim

  
	
   

  	
  Name:

  	
  Evelyn Lim

  
	
   

  	
  Title:

  	
  Secretary

  

 

 

	
   

  	
  BNP
  PARIBAS,

  
	
   

  	
  as
  Administrative Agent for the Lenders

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew
  Platt

  
	
   

  	
   

  	
  Name: Andrew
  Platt

  
	
   

  	
   

  	
  Title: Managing
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean
  Finnegan

  
	
   

  	
   

  	
  Name: Sean
  Finnegan

  
	
   

  	
   

  	
  Title: Director

  

 

 

	
   

  	
  BNP
  PARIBAS,

  
	
   

  	
  as Security
  Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew
  Platt

  
	
   

  	
   

  	
  Name: Andrew
  Platt

  
	
   

  	
   

  	
  Title: Managing
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean
  Finnegan

  
	
   

  	
   

  	
  Name: Sean
  Finnegan

  
	
   

  	
   

  	
  Title: Director

  

 

 

	
   

  	
  BNP PARIBAS,  

  
	
   

  	
  as Joint
  Lead Arranger, Joint Bookrunner and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Brian A.
  Goldstein

  
	
   

  	
   

  	
  Name: Brian
  A. Goldstein

  
	
   

  	
   

  	
  Title: Managing
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean
  Finnegan

  
	
   

  	
   

  	
  Name: Sean
  Finnegan

  
	
   

  	
   

  	
  Title: Director

  

 

 

	
   

  	
  HSH
  NORDBANK AG, NEW YORK BRANCH,

  
	
   

  	
  as Joint
  Lead Arranger, Joint Bookrunner and as a Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sylvia
  Chong

  
	
   

  	
   

  	
  Name: Sylvia
  Chong

  
	
   

  	
   

  	
  Title: Senior
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ David
  Watson

  
	
   

  	
   

  	
  Name: David
  Watson

  
	
   

  	
   

  	
  Title: Vice
  President

  

 

 

	
   

  	
  BNP
  PARIBAS,

  
	
   

  	
  as Issuing
  Bank

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Andrew
  Platt

  
	
   

  	
   

  	
  Name: Andrew
  Platt

  
	
   

  	
   

  	
  Title: Managing
  Director

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Sean
  Finnegan

  
	
   

  	
   

  	
  Name: Sean
  Finnegan

  
	
   

  	
   

  	
  Title: Director

  

 

 

 

Execution
Version

 

EXHIBIT
A

to
Financing Agreement

 

DEFINITIONS
AND RULES OF INTERPRETATION

 

(Attached)

 

A-1

 

EXHIBIT A

to Financing Agreement

 

DEFINITIONS

 

“Account Control Agreement” means that certain Account
Control Agreement among Borrower, Administrative Agent, Security Agent and
Securities Intermediary, in substantially the form of Exhibit E-4 to the
Financing Agreement.

 

“Additional Project Documents” means, collectively, any
contract or agreement entered into by Borrower in respect of any Project
subsequent to the Closing Date that either (a) replaces or is entered into
in substitution of an existing Material Project Document; or (b) obligates
Borrower to make payments in an aggregate amount exceeding $250,000 over its
term except with respect to contracts or agreements for the purchase of
materials, equipment or Parts that are included in the Base Case Project
Projections.

 

“Adjustment Date” has the meaning given in Section 7.27
of the Financing Agreement.

 

“Administrative Agent” means BNP Paribas, in its capacity as
Administrative Agent for the Lenders under the Financing Agreement, or any
successor in such capacity appointed from time to time in accordance with the
Financing Agreement.

 

“Administrative Agent Account” means the account of
Administrative Agent at such office or bank as it may notify from time to time
to the Lenders, the other Agents and Borrower.

 

“Affiliate” means (a) with respect to
any Person that is not directly or indirectly controlled by the Sponsor, any
other Person that directly, or indirectly through one or more intermediaries,
controls, is controlled by or is under common control with the Person
specified, or who holds or beneficially owns ten percent (10%) or more of the equity
interest in the Person specified or ten percent (10%) or more of any class of
voting securities of the Person specified.

 

A-2

 

“Affiliated Indemnitees” has the meaning given in Section 7.23(a)(i) of
the Financing Agreement.

 

“Affiliated Participant” means the Borrower, Member, any
Project Company, and Sponsor for so long as such Person has any obligation
under any Collateral Document to which it is a party and any Major Project
Participant that is an Affiliate of Borrower, Sponsor, any Project Company or
Member for so long as such Person has any obligation under a Material Project
Document to which it is a party.

 

“Agency Fee Side Agreement” means that certain Fee Letter,
dated as of the Closing Date, by and between the Administrative Agent and the
Borrower.

 

“Agents” means Administrative Agent and Security Agent.

 

“AIMCO Prepayment” means an optional prepayment of the Term
Loans as contemplated pursuant to Section 9.17 of that certain Credit
Agreement, dated as of July 17, 2009 (as amended from time to time), by
and among Wells Fargo, N.A., as collateral agent and administrative agent, the
lender party thereto, CSSW, LLC a Delaware limited liability company, and CSSW
Holdings, LLC, a Delaware limited liability company.

 

“Amortization Schedule” means the amortization schedule set
forth as Exhibit K to the Financing Agreement.

 

“Annual Operating Plan” means the Annual
Operating Plan that shall contain a reasonably detailed narrative description
of (a) the categories of revenues and costs set forth in the Base Case
Project Projections; (b) maintenance and repair activities expected or
planned for the upcoming 12-month period; (c) the planned purchases of
Parts, (d) the marketing
plan of the Borrower detailing, among other things, the strategy for power
sales, power scheduling, renewable energy credit sales and ICAP  sales, and (e) any event or
condition forecasted for the 

 

A-3

 

relevant upcoming 12-month period that is likely to
require the incurrence of major maintenance expense items in an amount that is
at least 20% higher than the corresponding amount set forth with respect to
such category in the Base Case Project Projections for such year.

 

“Anti-Money Laundering Laws” means any
laws or regulations relating to money laundering or terrorist financing,
including, without limitation, the Bank Secrecy Act, 31 U.S.C. sections
5301 et seq.; the Uniting and Strengthening America by Providing Appropriate
Tools Required to Intercept and Obstruct Terrorism Act of 2001, Pub. L. 107-56
(a/k/a the USA Patriot Act); Laundering of Monetary Instruments, 18 U.S.C.
section 1956; Engaging in Monetary Transactions in Property Derived from
Specified Unlawful Activity, 18 U.S.C. section 1957; the Financial
Recordkeeping and Reporting of Currency and Foreign Transactions Regulations,
31 C.F.R. Part 103; and any similar laws or regulations currently in force
or hereafter enacted.

 

“Applicable Base Rate Margin” means, with respect to any Base
Rate Loans, (i) 2.25% per annum during the period commencing on the
Closing Date and ending on the third anniversary thereof, and (ii) 2.50%
per annum thereafter until the Maturity Date.

 

“Applicable Margin” means, with respect to any LIBO Rate
Loans, (i) 3.25% per annum during the period commencing on the Closing
Date and ending on the third anniversary thereof, and (ii) 3.50% per annum
thereafter until the Maturity Date.

 

“Applicable Permit” means, at any given time, any Permit,
including any zoning, environmental protection, pollution, sanitation, FERC,
the Maine Public Utilities Commission, safety, siting or building, importation
of technology, or equipment and materials Permit (a) that is necessary as
of and after the Closing Date, in light of the stage of construction or
operation of any Project, to test, construct, operate, maintain, repair, own or
use such Project as contemplated 

 

A-4

 

pursuant to applicable Legal Requirements or as
required by the Operative Documents, to generate or sell electricity therefrom,
to enter into any Operative Document or to consummate any transaction contemplated thereby in each case
materially in accordance with all applicable Legal Requirements; or (b) that is necessary at such
time so that (i) none of the Agents, Issuing Bank, the Lenders, or any
Affiliate of any of them may be deemed by any Governmental Authority to be
subject to regulation under the FPA or PUHCA or under any state laws or
regulations respecting the rates or the financial or organizational regulation
of electric utilities as a result of the construction, testing or operation of
any Project or the generation or sale of electricity therefrom, or (ii) none
of Borrower nor any Affiliate of Borrower may be deemed by any Governmental
Authority to be subject to, and not exempt from, compliance with PUHCA (other
than Section 1265 thereof).

 

“Authorized Officer” means
(a) with respect to any Person that is a corporation, the president, any
vice president, the treasurer or the chief financial officer of such Person; (b) with
respect to any Person that is a partnership, the general partner or a duly authorized officer of a
general partners of such Person or such other authorized officer as appointed
by the board of directors of such general partner; or (c) with respect to
any Person that is a limited liability company, any member or manager, or to
the extent duly authorized to so act pursuant to such Person’s governing
documents, the president, any vice president, the treasurer or chief financial
officer of such Person or, in the case of a limited liability company, of a
member of such Person.  No Person shall
be deemed to be an “Authorized Officer” unless designated as an individual duly
authorized to act on behalf of such Person in a certificate of incumbency of
such Person delivered to Administrative Agent.

 

“Available Bridge Loan Commitment”
means (a) at any time prior to the Bridge 

 

A-5

 

Loan Maturity Date, the Total Bridge Loan Commitment
at such time minus the aggregate
outstanding amount of the Bridge Loans at such time, and (b) after the
conditions set forth in clause (a) are satisfied, zero.

 

“Available Term Loan Commitment”
means (a) at any time prior to the Term Loan Maturity Date, the Total Term
Loan Commitment at such time minus
the aggregate outstanding amount of the Term Loans at such time, and (b) after
the conditions set forth in clause (a) are satisfied, zero.

 

“Availability Period” means the period commencing
on the Closing Date and ending July 1, 2010.

 

“Available LC Commitment” means, with
respect to any type of Letter of Credit (a) at any time and from time to
time, the Total LC Commitment applicable to such type of Letter of Credit minus
(b) the aggregate Stated Amounts applicable to such type of Letter of
Credit.

 

“Bankruptcy Event” has the meaning given in Section 10.1(d) of
the Financing Agreement.

 

“Bankruptcy Law” means Title 11, United States Code, and any
other state or federal insolvency, reorganization, moratorium or similar law
for the relief of debtors.

 

“Base Case Project Projections” means a good
faith projection of reasonable operating results and forecasted cash flows for
the Projects for the period from the Closing Date to the twentieth anniversary
thereof.

 

“Base Rate” means, for any day, a rate
per annum equal to the higher of (a) the Prime Rate in effect on such day
as determined by the Administrative Agent, (b) the Federal Funds Effective
Rate for such day plus 0.50% and (c) 3-month LIBO Rate on such day plus 

 

A-6

 

1.50%.  Any
change in the Base Rate due to a change in the Prime Rate, the Federal Funds
Effective Rate or the 3-month LIBO Rate shall be effective from and including
the effective date of such change in the Prime Rate, the Federal Funds
Effective Rate or the 3-month LIBO Rate, as the case may be.

 

“Base Rate Default Rate” means, with respect
to any Base Rate Loans outstanding from time to time, the interest rate per
annum equal to the Base Rate then in effect plus the Applicable Base
Rate Margin plus 2.00% per annum.

 

“Base Rate
Loans” means
Loans that bear interest at a rate per annum determined by reference to the
Base Rate.

 

“Benefited Lender” has the meaning given in Section 3.5(b) of
the Financing Agreement.

 

“BOP Agreement” or “BOP Agreements”
means, the Stetson I Reed Agreement, the Stetson II Reed Agreement, and/or
Cianbro Agreement, as applicable.

 

“BOP Contractor” means as applicable, Reed & Reed, Inc.,
or Cianbro Corporation.

 

“Borrower” means Stetson Holdings, LLC, a Delaware limited
liability company.

 

“Borrower Equity” means any equity contributed or required to
be contributed to Borrower by Member or Sponsor.

 

“Borrower LLC Agreement” means Limited
Liability Company Agreement of Stetson Holdings, LLC, dated as of May 27,
2008, as modified by that certain Membership Interest Transfer Agreement of
Stetson Holdings, LLC, dated as of July 17, 2009, as further amended by
that certain First Amendment to Limited Liability Company Agreement of Stetson
Holdings, LLC, dated as of July 17, 2009, as modified by that certain
Membership Interest 

 

A-7

 

Transfer Agreement of Stetson Holdings, LLC, dated
as of the date of the Financing Agreement, and as further amended by that
certain Second Amendment to Limited Liability Company Agreement, dated as of
the date of the Financing Agreement.

 

“Borrower Pledge and Security Agreement” has the meaning given in Section 4.1(a)(ii) of
the Financing Agreement.

 

“Borrowing” means a borrowing or advance of Loans or the
issuance or extension of any Letter of Credit under the Financing Agreement
except for any conversions or continuation of Loans.  For the avoidance of doubt, neither the
conversions of Loans
under Sections 3.4(c), 3.6(a) or 3.6(b) of the Financing Agreement,
nor continuations of any Loan without any increase in the aggregate principal
amount outstanding shall be deemed to be a Borrowing.

 

“Bridge Loan” and “Bridge Loans”
have the meaning
given in Section 2.1(a)(ii) of the Financing Agreement.

 

“Bridge Loan Commitment Fees” has the meaning given in Section 3.3(d)(ii) of
the Financing Agreement.

 

“Bridge Loan Maturity Date” means the earliest to occur of (a) receipt
by the Borrower or any Project Company of the Government Grant proceeds in
respect of the Stetson II Project; (b) the date that is ninety (90) days
or, at the sole discretion of the Administrative Agent, up to one hundred
twenty (120) days after Commercial Operation; (c) the date on
which the entire outstanding principal balance of the Bridge Loans, together with all unpaid
interest, fees, charges and costs, become due and payable under the Financing
Agreement; and (d) September 1, 2010.

 

“Business Day” means any day (a) other than a Saturday,
Sunday or other day on 

 

A-8

 

which
banks are authorized to be closed in New York, New York; and (b) which is
also a day on which dealings in Dollar deposits are carried out in the London interbank
market.

 

“Capital Adequacy Requirement” has the meaning given in Section 3.6(d) of
the Financing Agreement.

 

“Change of Control” means an event or any
series of events by which (i) Member ceases to own, directly or
indirectly, at least 51% of the voting rights of the equity interests of
Borrower or (ii) Member ceases to own legally and beneficially at least
51% of the membership or economic interests of the Borrower.

 

“Change of Law” has the meaning given in Section 3.6(b) of
the Financing Agreement.

 

“Cianbro Agreement” means that certain
Construction Agreement, dated as of August 18, 2008, by and between
Evergreen Wind Power V, LLC and Cianbro Corporation, as Contractor, for the
Stetson Mountain Substation.

 

“Citigroup REC Contract” means that certain
Agreement for the Purchase and Sale of Renewable Energy Certificates and Credit
Support Annex to the Agreement for the Purchase and Sale of Renewable Energy
Certificates, each dated as of December 21, 2009, by and between Borrower
and Citigroup Energy Inc.

 

“Claims” has the meaning given in Section 7.23(a)(i) of
the Financing Agreement.

 

“Closing Date” means the date when each of the
conditions precedent listed in Section 5.1 of the Financing Agreement has
been satisfied or waived in writing by Administrative Agent and the Issuing
Bank (with the consent of all the Lenders).

 

“Code” means the Internal Revenue Code of 1986, as amended,
including any applicable Treasury Regulations.

 

A-9

 

“Collateral” means all real and personal property which is
subject or required to become subject to the security interests or Liens
granted by Borrower (or other Persons, as applicable) under any of the
Collateral Documents.

 

“Collateral  Accounts” means
the Revenue Account, Operating Account, the Debt Service Reserve Account, the O&M Reserve
Account, the Loss
Proceeds Account, the Disbursement Reserve Account and the Government Grant
Proceeds Account.

 

“Collateral Documents” means the Mortgage Documents, the
Member Pledge and Security Agreement, the Borrower Security and Pledge
Agreement, each Guaranty and Security Agreement, the Account Control Agreement,
the Sponsor Indemnity, the Consents and any other security documents, financing
statements and the like filed or recorded in connection with the foregoing.

 

“Commercial Operation Date” means, in
respect of the Stetson II Project, the date on which each of the following has
occurred:  (i) the Placed in Service
Date, (ii) “Commercial Operation Date” under the PPA, and (iii) “Commercial
Operation” under the Interconnection Agreement.

 

“Commitment” means, at any time with respect to each Lender,
such Lender’s Proportionate Share of the Total Commitment at such time.

 

“Commitment Fees” means, collectively, the Term Loan
Commitment Fees, Bridge Loan Commitment Fees and the LC Commitment Fees.

 

“Confirmation of Interest Period Selection”  means a written confirmation,
substantially in the form of Exhibit C-1 to the Financing Agreement,
confirming Borrower’s telephone notice to the Administrative Agent of a
selected Interest Period.

 

“Consents” means, collectively, the consents listed in Section 4.1(a)(vi) of
the 

 

A-10

 

Financing
Agreement by and among Borrower, Security Agent and the Persons identified in
such section, in each case substantially in the forms of Exhibits F-1 through
F-12 to the Financing Agreement.

 

“Construction Budget and Schedule” means, in respect of the
Stetson II Project, the budget and schedule of anticipated costs to be incurred
in connection with the construction and development of the Stetson II Project,
in form and substance satisfactory to Administrative Agent.

 

“Controlled Group” means all members of a controlled group of
corporations and all trades or businesses (whether or not incorporated) under
common control which, together with Borrower, are treated as a single employer
under Section 414(b) or 414(c) of the Code.

 

“Debt” of any Person at any date means, without duplication, (a) all
obligations of such Person for borrowed money, (b) all obligations of such
Person evidenced by bonds, debentures, notes or other similar instruments, (c) all
obligations of such Person to pay the deferred purchase price of property or
services, except trade accounts payable arising in the ordinary course of
business, (d) all obligations of such Person under leases which are or
should be, in accordance with GAAP, recorded as capital leases in respect of
which such Person is liable, (e) all obligations of such Person to
purchase securities (or other property) which arise out of or in connection
with the sale of the same or substantially similar securities (or property), (f) all
deferred obligations of such Person to reimburse any bank or other Person in
respect of amounts paid or advanced under a letter of credit or other
instrument, (g) all indebtedness of others secured by a Lien on any asset
of such Person, whether or not such indebtedness is assumed by such Person, (h) all
indebtedness of others guaranteed directly or indirectly by such Person or as
to which such Person has an obligation substantially the economic equivalent of
a 

 

A-11

 

guaranty
and (i) obligations in respect of Interest Rate Agreements.

 

“Debt Service” means the obligations payable by Borrower for
interest and principal on the Term Loans (other than the $3,000,000 to be
prepaid as a Mandatory Prepayment pursuant to Section 3.2(c) of the
Financing Agreement), interest only on the Bridge Loans, fees and expenses
payable under the Financing Documents or other charges due in respect of Debt,
and Reimbursement Obligations and any interest accrued thereon, as set forth in
the Financing Documents.

 

“Debt Service Coverage Ratio” means the
ratio, calculated by the Administrative Agent as of each Payment Date for the
preceding twelve-month period, based on (a) (i) Project Revenues from the ownership or operation of the
Projects, less  (ii) O&M Costs, to (b) Debt
Service; provided, that in respect of each applicable Payment Date that
is less than twelve (12) months after the date of the Financing Agreement, the
calculation shall be performed in respect of the time period from the date of
the Financing Agreement to such Payment Date.

 

“Debt Service Reserve Account” has the
meaning given in Section 6(d) of the Account Control Agreement.

 

“Debt Service Reserve LC” means the
letter of credit to be issued pursuant to Section 2.2(a)(ii) of the
Financing Agreement.

 

“Debt Service Reserve LC Loan” has the
meaning given in Section 2.2(d)(iv) of the Financing Agreement.

 

“Debt Service Reserve Requirement” means
$6,630,000.

 

“Debt Sizing Base Case” means a good faith
projection of reasonable operating results and forecasted cash flows for the
Projects for the period from the Closing Date to the twentieth anniversary
thereof, which shall include, without limitation, (i) hedged energy 

 

A-12

 

revenues in respect of the Energy Hedge, (ii) energy
and REC revenues based on the floor price set forth in the PPA, (iii) hedged
REC sales in respect of the REC Contracts, (iv) capacity revenue (utilizing an assumption of a monthly capacity
price of $1 per kilowatt after the completion of transmission system upgrades
in June 2013), (v) merchant energy revenues, if applicable, (vi) cash
collateral in the amount of $3,000,000 that will be placed on deposit in the
Stetson I Holding Account, and (vii) any other forecasted cash receipts
and expenditures of the Projects.

 

“Default
Rate” means the
Base Rate Default Rate or the LIBO Rate Default Rate, as the context may
require.

 

“Defaulting Lender” means any Lender, as reasonably
determined by the Administrative Agent, that has (a) failed to fund any
portion of its Loans or participations in Letters of Credit within one (1) Business
Date of the date required to be funded by it hereunder, (b) notified the
Borrower, the Administrative Agent, the Issuing Bank or any Lender in writing
that it does not intend to comply with any of its funding obligations under the
Financing Agreement or under other agreements in which it commits to extend
credit, (c) failed, within one (1) Business Day after request by the
Administrative Agent, to confirm that it will comply with the terms of the
Financing Agreement relating to its obligations to fund prospective Loans and
participations in then outstanding Letters of Credit, (d) otherwise failed
to pay over to the Administrative Agent or any other Lender any other amount
required to be paid by it under the Financing Agreement within one (1) Business
Day of the date when due, unless the subject of a good faith dispute, or (e) (i) become
or is insolvent or has a parent company that has become or is insolvent or (ii) become
the subject of a bankruptcy or insolvency proceeding, or has had a receiver,
conservator, trustee or custodian appointed for it, or has taken any action in
furtherance 

 

A-13

 

of, or
indicating its consent to, approval of or acquiescence in any such proceeding
or appointment or has a parent company that has become the subject of a
bankruptcy or insolvency proceeding, or has had a receiver, conservator,
trustee or custodian appointed for it, or has taken any action in furtherance
of, or indicating its consent to, approval of or acquiescence in any such
proceeding or appointment.

 

“Department of Treasury Rule” has the meaning assigned to such term in Section 6.40(a)(i) of
the Financing Agreement.

 

“Disbursement Account” has the meaning given in Section 6(a) of
the Account Control Agreement.

 

“Distribution Reserve Account” has the meaning given in Section 6(i) of
the Account Control Agreement.

 

“Dollars” and “$” means United
States dollars or such coin or currency of the United States of America as at
the time of payment shall be legal tender for the payment of public and private
debts in the United States of America.

 

“Drawing” means a drawing on a Letter of
Credit.

 

“Drawing Payment” means a payment by
Issuing Bank of all or any part of the Stated Amount in conjunction with a
Drawing under any Letter of Credit.

 

“Eminent Domain Proceeds” means all amounts and
proceeds (including instruments) received in respect of any Event of Eminent
Domain.

 

“Energy Hedge” means the ISDA Master
Agreement, Schedule to Master Agreement, Credit Support Annex to the Schedule
to the Master Agreement, Credit Support Annex (Elections and Variables) and
Confirmation, each dated as of June 11, 2008 by and between Borrower and
Energy Hedge Provider.

 

A-14

 

“Energy Hedge Guarantor” means Constellation Energy Group, Inc.

 

“Energy  Hedge LC”
means one or more letters of credit to be issued pursuant to Section 2.2(a)(iii) of
the Financing Agreement.

 

“Energy Hedge Lien” has the meaning
given in Section 8.2 of the Financing Agreement.

 

“Energy Hedge Liquidity Reserve Requirement” means, at any time,
the mark to market value with respect to the credit support required to be
established by Borrower pursuant to the Energy Hedge, which mark to market
calculation shall be performed monthly by the Borrower and reported to
Administrative Agent.

 

“Energy Hedge Provider” means
Constellation Energy Commodities Group, Inc.

 

“Energy Hedge Reserve Account” has the
meaning given in Section 6(k) of the Account Control Agreement.

 

“Environmental Claim” means any and all obligations,
liabilities, losses, administrative, regulatory or judicial actions, suits,
demands, decrees, claims, liens, judgments, warning notices, notices of
noncompliance or violation, investigations, inquiries, requests for
information, proceedings, removal or remedial actions or orders, or damages
(foreseeable and unforeseeable, including consequential and punitive damages),
penalties, fees, out-of-pocket costs, expenses, disbursements, attorneys’ or
consultants’ fees, arising under or relating in any way to any Environmental
Law or any Permit issued under any such Environmental Law (hereafter as used in
this definition, “Claims”), including (a) any and all Claims by
Governmental Authorities for enforcement, cleanup, removal, response, remedial
or other actions or damages arising under or pursuant to any applicable
Environmental Law, and (b) any and all Claims by any third party seeking
damages, contribution, indemnification, cost recovery, 

 

A-15

 

compensation
or injunctive relief resulting from or relating to Hazardous Substances or
arising from alleged injury or threat of injury to health, safety or the
environment.

 

“Environmental Consultant” means, with respect to the
Stetson I Project, Ransom Environmental Consultants, Inc., or with respect
to the Stetson II Project, Acadia Environmental Technology, or their respective
successors appointed pursuant to Section 13.1 of the Financing Agreement.

 

“Environmental Law” means any and all federal, state and
local statutes, Governmental Rules (including any Hazardous Substances
Law), regulations, ordinances, judgments, consent decrees, settlements, orders,
codes or injunctions and all common law, whenever enacted or in effect
concerning pollution, protection of human health, safety or the environment or
preservation or reclamation of natural and biological resources.

 

“Environmental Reports” means, with respect to the
Stetson I Project, (i) the Phase I Environmental Site Assessment (ESA)
Stetson Wind Project Township 8 Range 3 NBPP, Township 8 Range 4 NBPP, Carroll
Plantation, Prentiss Township, Webster Plantation, Kingman Township, Towns of
Mattawamkeag, Woodville & Chester, Maine, dated January 30, 2008,
(ii) Phase I Environmental Site Assessment (ESA) Provencher Property Town
of Chester, Penobscot County, Maine, dated September 24, 2007, (iii) Phase
I Environmental Site Assessment (ESA) Deloge Property Town of Chester,
Penobscot County, Maine, dated November 29, 2007, (iv) Phase I
Environmental Site Assessment (ESA) State of Maine/Haynes Timberland Exchange
Property Map 1, Lot 5, Webster Plantation and Map 8, Lot 1, Prentiss Township,
Penobscot County, Maine, dated June 20, 2008, (v) Phase I
Environmental Site Assessment (ESA) Ghost, Kazilionis & Coiro
Properties (Plan 6, Lot 17.1, Plan 1, Lot 11-10 & Portion of Plan 1,
Lots 11-8) Prentiss Township, Penobscot County, Maine, dated October 22, 

 

A-16

 

2007, and (vi) Phase I Environmental Site
Assessment (ESA) Update Stetson Wind Project Township 8 Range 3 NBPP, Township
8 Range 4 NBPP, Carroll Plantation, Prentiss Township, Webster Plantation,
Kingman Township, Towns of Mattawamkeag, Woodville & Chester, Maine,
dated September 14, 2009, each prepared by Ransom Environmental
Consultants, Inc., and with respect to the Stetson II Project, the Phase I
Environmental Assessment Stetson II, T8 R4 NBPP, Washington County, Maine,
dated May 13, 2009, prepared by Acadia Environmental Technology.

 

“Equipment Purchase Agreement” means that certain Equipment
Purchase Agreement, dated as of April 29, 2009, by and between First Wind
Construction, LLC, as Buyer, and Waukesha Electric, as Seller, and assigned to Stetson Wind II,
LLC, pursuant to that certain Assignment and Assumption Agreement, dated as of December 22,
2009, by and between First Wind Construction, LLC and Stetson Wind II, LLC.

 

“ERISA” means the Employee Retirement Income Security Act of
1974.

 

“ERISA Plan” means any employee benefit plan (a) maintained
by Borrower or any member of the Controlled Group, or to which any of them
contributes or is obligated to contribute, for its employees and (b) covered
by Title IV of ERISA or to which Section 412 of the Code applies.

 

“Estoppel Agreement” means the estoppels agreements executed
by the Landowners with respect to the Real Property Agreements, in the form of Exhibit F-6
to the Financing Agreement and otherwise satisfactory in content to the
Security Agent.

 

“Event of Default” and “Events of Default”
have the meanings given in Section 10.1 of the Financing Agreement.

 

“Event of Eminent Domain” means any compulsory transfer or
taking by 

 

A-17

 

condemnation,
eminent domain or exercise of a similar power, or transfer under threat of such
compulsory transfer or taking, of any part of the Collateral by any agency,
department, authority, commission, board, instrumentality or political
subdivision of the State of Maine, the United States or another Governmental
Authority having jurisdiction.

 

“Evergreen Wind Power V LLC Agreement”
means the First Amended and Restated Limited Liability Company Agreement of
Evergreen Wind Power  V, LLC, dated as of April 2, 2007, as amended
by that certain First Amendment to First Amended and Restated Limited Liability
Company Agreement of Evergreen Wind Power V, LLC, dated as of December 11,
2008, as modified by that certain Membership Interest Transfer Agreement of
Evergreen Wind Power V, LLC, dated as of July 17, 2009, as further
amended by that certain Second Amendment to First Amended and Restated Limited
Liability Company Agreement of Evergreen Wind Power V, LLC, dated as of July 17,
2009, and as further amended by that certain Third Amendment to First Amended
and Restated Limited Liability Company Agreement of Evergreen Wind Power V,
LLC, dated as of the date of the Financing Agreement.

 

“Excess Cash” means, for any applicable
time period, Project Revenues received, less paid
O&M Costs, less paid Debt Service, less amounts required for deposit into the Reserve Accounts
(pursuant to Section 6 of the Account Control Agreement), plus any amounts withdrawn from such Reserve Accounts.

 

“Exempt Wholesale Generator” or “EWG” means an “exempt wholesale generator,” as such term is
defined in PUHCA and the FERC’s regulations thereunder.

 

“Existing Stetson I Facilities” means
all obligations of Evergreen Wind Power V, LLC under that certain Financing
Agreement, dated as of July 17, 2009, by and among Evergreen Wind Power V,
LLC, as borrower, HSH Nordbank AG, New York Branch, as 

 

A-18

 

arranger, administrative agent, security agent and
issuing bank, and the financial institutions party thereto as lenders, as
amended from time to time.

 

“Expiration Date” means, with respect to
any Letter of Credit, the date of expiration set forth therein.

 

“FDIC” means the Federal Deposit
Insurance Corporation.

 

“Federal Funds Effective Rate” means, for any day, the weighted
average (rounded upwards, if necessary, to the next 1/100 of 1%) of the rates
on overnight Federal funds transactions with members of the Federal Reserve
System arranged by Federal funds brokers, as published on the next succeeding
Business Day by the Federal Reserve Bank of New York, or, if such rate is not
so published for any day that is a Business Day, the average (rounded upwards,
if necessary, to the next 1/100 of 1%) of the quotations for such day for such
transactions received by Administrative Agent from three Federal funds brokers
of recognized standing selected by it.

 

“Federal Reserve Board” means the Board of Governors of the
Federal Reserve System.

 

“Fee Side Agreement”  means, collectively, the Lender Fee Side
Agreement and the Agency Fee Side Agreement.

 

“FERC” means the Federal Energy Regulatory Commission and
its successors.

 

“Financing Agreement” means that certain Financing Agreement,
dated as of December 22, 2009, by and among Borrower, Administrative
Agent, Issuing Bank, Security Agent, the Joint Lead Arrangers and the Lenders.

 

“Financing Documents” means the Financing Agreement, the
Notes, the Collateral Documents, the Fee Side Agreement, the Letters of Credit,
the Interest Rate Agreements, and any other documents, agreements or
instruments entered into in connection

 

A-19

 

with
any of the foregoing.

 

“Fixed Portion” means, at any time, the Term Loans that have
been hedged pursuant to Interest Rate Agreements in accordance with Section 3.9
of the Financing Agreement.

 

“Floating Portion” means, at any time, the Term Loans that
have been not hedged pursuant to Interest Rate Agreements.

 

“FPA” means the Federal Power Act, 16. U.S.C., Section 824 et seq.

 

“GAAP” means generally accepted accounting principles in the
United States of America consistently applied.

 

“Gen Lead Account” has the meaning given in Section 6(j) of
the Account Control Agreement.

 

“Gen Lead Company” means Evergreen Gen Lead, LLC, a
wholly-owned indirect subsidiary of the Sponsor.

 

“GIS Administrator” has the meaning given in the
New England Power Pool Generation Information System Operating Rules.

 

“Governmental Authority” means any national, state or local
government (whether domestic or foreign), any political subdivision thereof or
any other governmental, quasi-governmental, judicial, public or statutory instrumentality,
authority, body, agency, bureau or entity, (including the Internal Revenue
Service, Department of Energy, any zoning authority, FERC, the FDIC, the
Comptroller of the Currency or the Federal Reserve Board, any central bank or
any comparable authority) or any arbitrator, any of which has the authority to
bind a party at law.

 

“Government Grant” means any cash grants
received by Borrower from the 

 

A-20

 

United States government in respect of the Stetson
II Project pursuant to Section 1603 of the American Recovery and
Reinvestment Act of 2009.

 

“Government Grant Disallowance Event”
means any reduction, disallowance or invalidation in any Government Grant
received by Borrower or Stetson Wind II, LLC in respect of the Stetson II
Project, for any reason, including, without limitation, any misstatements,
misrepresentations or inaccuracies in the Government Grant application  filed in respect of the Stetson II Project.

 

“Government Grant Proceeds Account” has
the meaning given in Section 6(g) of the Account Control Agreement.

 

“Governmental Rule” means any law, rule, regulation,
ordinance, order, code interpretation, judgment, decree, directive, guideline,
policy (only to the extent that such guideline or policy is mandatory in
character) or similar form of decision of any Governmental Authority.

 

“Guaranty and Security Agreement” has the meaning given in Section 4.1(a)(iv) of
the Financing Agreement.

 

“Hazardous Substances” means, collectively, (a) any petroleum or
petroleum products, flammable materials, explosives, radioactive materials,
asbestos, urea formaldehyde foam insulation, and transformers or other
equipment that contain polychlorinated byphenyls, (b) any chemicals or
other materials or substances defined as or included in the definition of “hazardous
substances”, “hazardous wastes”, “hazardous materials”, “extremely hazardous
wastes”, “restricted hazardous wastes”, “toxic substances”, “toxic pollutants”,
“contaminants”, “pollutants” or words of similar import under any Environmental
Law and (c) any other chemical or other material or substance, exposure to
which is prohibited, limited or regulated or with 

 

A-21

 

respect
to which liability or standards of conduct are imposed under any Environmental
Law.

 

“Hazardous Substances Law” means any and all federal, state
and local statutes, Governmental Rules, regulations, ordinances, judgments,
consent decrees, settlements, orders, codes or injunctions that impose
liability for or standards of conduct concerning the generation, manufacture,
processing, emission, distribution, use, treatment, storage, release or
threatened release, discharge, disposal, cleanup, transport, arrangement for
disposal or handling of Hazardous Substances including, but not limited to, the
Federal Water Pollution Control Act, as amended, the Resource Conservation and
Recovery Act of 1976 (RCRA), as amended, the Comprehensive Environmental
Response, Compensation and Liability Act of 1980 (CERCLA), as amended, the
Toxic Substances Control Act (TSCA), as amended, and the Occupational Safety
and Health Act of 1970 (OSHA), as amended, to the extent it relates to the
handling of and exposure to Hazardous Substances.

 

“Hedge LC” means an Energy Hedge LC or a
REC Contract LC, as the case may be.

 

“Hedge LC Loan” has the meaning given in
Section 2.2(d)(v) of the Financing Agreement.

 

“Hedge LC Margin” has the meaning given in Section 7.3(q) of
the Financing Agreement.

 

“Improvements” means all buildings, structures and
improvements now located or later to be constructed on the Project Site or the
Transmission Lien Real Property Interests.

 

“Inchoate Default” means any occurrence, circumstance or
event, or any combination thereof, which, with the lapse of time, the giving of
notice or both, would constitute an Event of Default.

 

A-22

 

“Indemnitees” has the meaning given in Section 7.23(a) of
the Financing Agreement.

 

“Independent Consultants” means, collectively, the Insurance
Consultant, the Independent Engineer, the Wind Consultant, the Power Market
Consultant and the Environmental Consultant, or their respective successors
appointed pursuant to Section 13.1 of the Financing Agreement.

 

“Independent Engineer” means Garrad Hassan America, Inc.,
or its successor
appointed pursuant to Section 13.1 of the Financing Agreement.

 

“Independent Engineer’s  Closing Certificate and
Report” has the meaning given in Section 5.1(p) of the
Financing Agreement.

 

“Insurance Consultant” means Moore McNeil, LLC, or
its successor appointed pursuant to Section 13.1 of the Financing
Agreement.

 

“Insurance Proceeds” means all amounts
and proceeds (including instruments) received by the Borrower or any Project
Company or with respect to the Projects, in respect of any insurance policy
maintained by Borrower, except for any proceeds from any business interruption
insurance policies maintained by Borrower thereunder.

 

“Interconnection Agreement” means, with respect to the Stetson
I Project, the Amended and Restated Standard Large Generator Interconnection
Agreement effective as of October 1, 2009, by and among ISO, Transmission
Owner, Evergreen Wind Power V, LLC and Gen Lead Company, and with respect to
the Stetson II Project, the Standard Large Generator Interconnection Agreement
effective as of October 1, 2009 by and among ISO, Transmission Owner,
Stetson Wind II, LLC and Gen Lead Company.

 

“Interest Fix Fees” has the meaning given in Section 3.9(b) of
the Financing 

 

A-23

 

Agreement.

 

“Interest Payment Date” has the meaning
given in Section 2.1(b)(ii) of the Financing Agreement.

 

“Interest Period” has the meaning given in Section 2.1(c) of
the Financing Agreement.

 

“Interest Rate Agreements” has the meaning given in Section 3.9(a) of
the Financing Agreement.

 

“ISO” means the ISO New England, Inc.

 

“ISO Service Agreements” means (a) the Local Service
Agreement between Bangor Hydro-Electric Company, ISO and Evergreen Wind Power
V, LLC for long term Firm Local Point-to-Point Transmission Service, dated as
of January 12, 2009, (b) the Local Service Agreement between Bangor
Hydro-Electric Company, ISO and Evergreen Wind Power V, LLC for long term Firm
Local Point-to-Point Transmission Service, dated as of December 8, 2008, (c) the
Local Service Agreement between Bangor Hydro-Electric Company, ISO and Stetson
Wind II, dated as of June 26, 2009 for long term Non-Firm Local
Point-to-Point Transmission Service.

 

“Issuing Bank” means BNP Paribas, or any
successor pursuant to Section 2.6(f) of the Financing Agreement.

 

“Joint Lead Arranger” or “Joint Lead Arrangers”  means BNP
Paribas and HSH Nordbank AG, New York Branch.

 

“Landowners” means the counterparties to the Project
Companies under the Real Property Agreements.

 

“LC Commitment” means, at any time with
respect to BNP Paribas
and its 

 

A-24

 

participants
and permitted assignees pursuant to Sections 12.14 and 12.15 of the Financing
Agreement, respectively, the Total LC Commitment.

 

“LC Commitment Fee” has the meaning
given in Section 3.3(e)(i) of the Financing Agreement.

 

“LC Exposure” means, for
any Letter of Credit, at any time, the sum of (a) the Stated Amount of
such Letter of Credit issued and outstanding at such time, plus (b) the
aggregate amount of all Reimbursement Obligations or LC Loans on any such
Letter of Credit, if any.

 

“LC Fees” means, collectively, the LC
Commitment Fees, LC Fronting Fee and the Letter of Credit Fees.

 

“LC Fronting Fee” has the meaning given
in Section 3.3(e)(iii) of the Financing Agreement.

 

“LC Issuance Period” means the period
commencing on the Closing Date and ending on the LC Loan Maturity Date.

 

“LC Loan” means each and any O&M
Reserve LC Loan, Debt Service Reserve LC Loan, Hedge LC Loan and Working
Capital LC Loan.

 

“LC Loan Maturity Date” means the earlier to occur of (a) five
(5) Business Days prior to the date that is seven (7) years from the
Closing Date; and (b) the date on which the entire outstanding
principal balance of
the LC Loans, together with all unpaid interest, fees, charges and costs,
become due and payable under the Financing Agreement.

 

“Lease” means, collectively, the Stetson
I Lease and the Stetson II Lease.

 

“Legal Requirements” means, as to any
Person, the articles of incorporation, by-laws or other organizational or
governing documents
of such Person, and any law, treaty, rule or 

 

A-25

 

regulation,
including any Governmental Rule, any requirement under a Permit, and any
determination of any Governmental Authority in each case applicable to or
binding upon such Person or any of its properties or to which such Person or
any of its property is subject.

 

“Lender” or “Lenders” means
lenders from time to time party to the Financing Agreement as Lenders in
respect of the Term Loans, Bridge Loans, LC Loans and Letters of Credit.

 

“Lender Fee Side Agreement” means that certain Fee Letter,
dated as of the Closing Date, by and between the Administrative Agent, the
Joint Lead Arrangers, the Lenders and the Borrower.

 

“Lending Office” means the office designated as such beneath
the name of a Lender set forth on Exhibit I of the Financing Agreement or
such other office of such Lender as such Lender may specify in writing from
time to time to Administrative Agent and Borrower in accordance with the
Financing Agreement.

 

“Letter of Credit Fee” has the meaning
given in Section 3.3(e)(ii) of the Financing Agreement.

 

“Letters of Credit” means, collectively,
the O&M Reserve LC, the Debt Service Reserve LC, each Hedge LC and each
Working Capital LC.

 

“LIBO Rate” means, with respect to any
LIBO Rate Loan for any Interest Period, the rate appearing on Reuters BBA Libor
Rates Page 3750 (or on any successor or substitute page of such
service, or any successor to or substitute for such service, providing rate
quotations comparable to those currently provided on such page of such
service, as determined by the Administrative Agent from time to time for
purposes of providing quotations of interest rates applicable to dollar
deposits in the London interbank market at approximately 11:00 a.m. 

 

A-26

 

(London, England time) two (2) Business Days
prior to the commencement of such Interest Period, as the rate for dollar
deposits with a maturity comparable to such Interest Period.

 

“LIBO Rate  Default Rate”
means, with respect to any LIBO Rate Loans outstanding from time to time, the
interest rate per annum equal to the LIBO Rate then in effect plus the
Applicable Margin plus 2.00% per annum.

 

“LIBO Rate
Loans” means Term
Loans that bear interest at a rate per annum determined by reference to the
LIBO Rate.

 

“Lien” on any asset means any mortgage, deed of trust, lien,
pledge, charge, security interest, restrictive covenant by Borrower, Member or
any Project Company or easement or encumbrance of any kind in respect of such
asset, whether or not filed, recorded or otherwise perfected or effective under
applicable law, as well as the interest of a vendor or lessor under any
conditional sale agreement, capital lease or other title retention agreement
relating to such asset.

 

“Liquidation Costs” has the meaning given in Section 3.7
of the Financing Agreement.

 

“LLC Agreements” means, collectively, the (a) Borrower
LLC Agreement; (b) Evergreen Wind Power V LLC Agreement; (c) Stetson
Wind II LLC Agreement; and (d) Member LLC Agreement.

 

“Loan” and “Loans” means
the Term Loans and Bridge Loans.

 

“Loss Proceeds” means, collectively, the Eminent Domain
Proceeds and the Insurance Proceeds.

 

“Loss Proceeds Account”
has the meaning given in Section 6(f) of the Account Control
Agreement.

 

“Major Project Participants” means (a) Borrower; (b) Member;
(c) Sponsor; 

 

A-27

 

(d) each
Project Company; (e) Operator;  (f) BOP Contractor while any warranties remain under
its applicable BOP Contract; (g) Energy Hedge Provider; (h) Energy
Hedge Guarantor; (i) ISO; (j) Turbine Supplier while any warranties
remain under a Turbine Supply Agreement, (k) Turbine Operator, (l) Transmission
Owner, (m) the power purchaser under the PPA, (n) REC Contracts
Counterparties, (o) First Wind Energy, LLC, (p) Waukesha Electric,
and (q) each other Person to a Material Project Document (except for
grantors under the Real Property Agreements), in each case, for so long as such
Person has obligations under such Material Project Document, and subject to any
other limitations set forth in this definition of Major Project Participant.

 

“Majority Lenders” means, subject to Section 2.6(c)(ii) of
the Financing Agreement, the Lenders having outstanding Loans representing at
least 66.67% of the aggregate amount of all outstanding Loans.

 

“Mandatory Prepayment” means a prepayment of Loans required
of Borrower pursuant to Section 3.2(c) of the Financing Agreement.

 

“Material Adverse Effect” means any event or occurrence of
whatever nature that could reasonably be expected to result in a material
adverse change in (a) the status of the business, results of operations or
condition (financial or otherwise) of Borrower, any Project Company or the
Project that affects the ability of Borrower to meet its financial obligations
under the Financing Agreement in a timely manner during the term of the Financing
Agreement, taking into consideration the scheduled repayment of the Loans and
payment of other Obligations under the Financing Documents; or (b) the
ability of Borrower to perform its respective material obligations under the
Operative Documents to which it is a party, or (c) with respect to the
Financing Documents, the validity or priority of the Lenders’ security
interests in, 

 

A-28

 

and
Liens on, the Collateral and the continued effectiveness and enforceability of
the Collateral Documents.

 

“Material Project Documents” means the Energy Hedge, the
Interconnection Agreement, the ISO Service Agreements, the BOP Agreements, the
Turbine Supply Agreement, the Turbine Service Agreement, the O&M Service
Agreement, the PPA, the REC Contracts, the Real Property Agreements, the LLC
Agreements, the Shared Facilities Agreement, the Equipment Purchase Agreement
and the Project Administration Agreement, in each case unless and until any
such Material Project Document expires on its scheduled termination date
without being extended or is replaced with an Additional Project Document
pursuant to the applicable provisions of the Financing Agreement, and in the
case of the BOP Agreements and the Turbine Supply Agreement, upon the
expiration of any warranty periods thereunder.

 

“Maturity Date” means, as applicable, the Bridge Loan
Maturity Date, the LC Loan Maturity Date or the Term Loan Maturity Date.

 

“Member” means CSSW Stetson Holdings, LLC, a
Delaware limited liability company, and any subsequent transferee pursuant to Section 8.17
of the Financing Agreement.

 

“Member LLC Agreement” means the Limited Liability Company
Agreement of CSSW Stetson Holdings, LLC, a Delaware limited liability company,
dated as of December 7, 2009.

 

“Member Pledge and Security Agreement” has
the meaning given in Section 4.1(a)(iii) of the Financing Agreement.

 

“Minimum Debt Service Coverage Ratio” means a Debt Service
Coverage Ratio of a minimum of 1.20 to 1.00.

 

“Monthly Transfer Date”
means (a) December 31, 2009, (b) thereafter, the last

 

A-29

 

Business
Day of each succeeding calendar month, and (c) the Maturity Date.

 

“Moody’s” means Moody’s Investors Service, Inc., or, if
such credit rating agency terminates its activities, any other credit rating
agency acceptable to the Majority Lenders.

 

“Mortgage Documents” has the meaning given in Section 4.1(a)(i) of
the Financing Agreement.

 

“Mortgaged Property” has the meaning given to the term “Mortgaged
Property” in the granting clause of each Mortgage Document.

 

“MPUC” means the Maine Public Utilities Commission.

 

“Multiemployer Plan” means any ERISA Plan that is a
multiemployer plan (as defined in Section 4001(a)(3) of ERISA) to which
Borrower or any member of the Controlled Group is making, or has an obligation
to make, contributions, or has made, or has been obligated to make,
contributions since the date which is six (6) years immediately preceding
the Closing Date.

 

“Non-Recourse Party” has the meaning given in Article 11
of the Financing Agreement.

 

“Note” and “Notes”
have the meaning given in Section 2.1(f) of the Financing Agreement.

 

“Notice of Borrowing” has the meaning given in Section 2.5
of the Financing Agreement.

 

“Notice of Change of Law” has the meaning given in Section 3.6(b) of
the Financing Agreement.

 

“Notice of Inability to Determine Rates” has the meaning
given in Section 

 

A-30

 

3.6(a) of
the Financing Agreement.

 

“Notice of LC Activity” has the meaning
given in Section 2.2(c) of the Financing Agreement.

 

“O&M Costs” means, for any period, all actual cash
operating and maintenance costs incurred and paid by Borrower or any Project
Company for such period, payments required under the Project Documents,
including under the Turbine Service Agreement and the O&M Service Agreement
for such period, costs for major maintenance for such period, local sales and
real estate taxes for such period, income tax (if any) for such period,
insurance premiums for such period, consumables, payments made in connection
with the requirements of any Permits or Legal Requirements for such period,
payments under any lease or any Real Property Agreement (including any royalty
or similar payments), reasonable legal, accounting and consulting fees, costs
and expenses paid by Borrower or any Project Company in connection with the
management, maintenance or operation of the Projects in accordance with the
Project Documents for such period whether performed by an Affiliate or the
Member, fees paid in connection with obtaining, transferring, maintaining or
amending any Applicable Permits and reasonable general and administrative
expenses for such period, but exclusive, in all cases, of non-cash charges,
including depreciation or obsolescence charges or reserves therefor,
amortization of intangibles or other bookkeeping entries of a similar nature,
and also exclusive of all debt service obligations of Borrower under the
Financing Documents.

 

“O&M Reserve Account” has the meaning given in Section 6(e) of
the Account Control Agreement.

 

“O&M Reserve LC” means the letter of
credit to be issued pursuant to Section 2.2(a)(i) of the Financing
Agreement.

 

A-31

 

“O&M Reserve LC Loan” has the
meaning given in Section 2.2(d)(iii) of the Financing Agreement.

 

“O&M Reserve Requirement”
means $2,570,000.

 

“O&M
Service Agreement” means, collectively, (a) that certain Project
O&M Agreement, dated as of November 17, 2008, by and between Evergreen
Wind Power V, LLC and First Wind O&M, LLC; and (b) that certain
Project O&M Agreement, dated as of December 18, 2009, by and between
Stetson Wind II, LLC and First Wind O&M, LLC.

 

“Obligations” means, with respect to
Borrower or any Affiliated Participant (only to the extent of its obligations
under any Financing Document to which it is a party), all Loans, Reimbursement
Obligations and obligations of performance, howsoever arising (and whether
arising or incurred before or after any Bankruptcy Event), owed by Borrower or
any Affiliated Participant (only to the extent of its obligations under any Financing
Document to which it is a party) to the Agents, Issuing Bank, Joint Lead
Arrangers, the Lenders or Borrower’s counterparties under the Interest Rate
Agreements (whether or not evidenced by any note or instrument and whether or
not for the payment of money), direct or indirect, absolute or contingent, due
or to become due, now existing or hereafter arising, pursuant to the terms of
the Financing Agreement or any of the other Financing Documents, including all
principal, interest, Liquidation Costs, Interest Fix Fees, fees, charges,
expenses, attorneys’ fees and accountants’ fees chargeable and other amounts
payable by Borrower or any Affiliated Participant (only to the extent of its
obligations under any Financing Document to which it is a party) under the
Financing Agreement or any of the other Financing Documents.

 

“OFAC” means the United States
Department of Treasury Office of Foreign Assets Control.

 

A-32

 

“OFAC Laws” means any laws, regulations,
and executive orders relating to the economic sanctions programs administered
by OFAC, including without limitation, the International Emergency Economic
Powers Act, 50 U.S.C. sections 1701 et seq.; the
Trading with the Enemy Act, 50 App. U.S.C. sections 1 et seq.; and the Office
of Foreign Assets Control, Department of the Treasury Regulations, 31 C.F.R.
Parts 500 et seq. (implementing the economic
sanctions programs administered by OFAC).

 

“OFAC SDN List” means the list of “Specially Designated
Nationals and Blocked Persons” maintained by OFAC.

 

“OFAC Violation” has the meaning assigned to such term in Section 7.16(e) of
the Financing Agreement.

 

“Operating Account” has the meaning
given in Section 6(b) of the Account Control Agreement.

 

“Operative Documents” means the
Financing Documents and the Project Documents.

 

“Operator” means First Wind O&M,
LLC, or such other Person as shall be approved by Administrative Agent (acting
reasonably on instructions of the Majority Lenders) to operate the Project in
accordance with Section 7.12(b) of
the Financing Agreement.

 

“Optional Prepayment” means a prepayment of Loans at the
option of Borrower pursuant to the Financing Agreement, including, without
limitation, pursuant to Section 3.2(b) of the Financing Agreement.

 

“Other Taxes” has the meaning given in Section 3.4(d)(i) of
the Financing Agreement.

 

“P50 Production Level”
means the aggregate annual energy production level of the Projects that has a
probability of excedence of 50% over a one-year and ten-year period of 

 

A-33

 

time, according to the Independent Engineer’s wind
production forecasts delivered to Administrative Agent.

 

“P99 Production Level”
means the aggregate annual energy production level of the Projects that has a
probability of excedence of 99% over a one-year period of time, according to
Independent Engineer’s wind production forecasts delivered to Administrative
Agent.

 

“Parts” means any part, appliance, instrument, appurtenance,
accessory or other personal property of any nature necessary or useful to the
operation, maintenance, service or repair of any Project.

 

“Patriot Act” has the meaning assigned
to such term in Section 6.40(a) of
the Financing Agreement.

 

“Payment Date” means (a) December 31, 2009, (b) thereafter,
the last Business Day of each succeeding six (6) month period, and (c) the
Maturity Date.

 

“PBGC” means the Pension Benefit Guaranty Corporation.

 

“Permit” means any action, approval, consent, waiver,
exemption, variance, franchise, order, permit, authorization, right,
registration, filing, submission or license of, with or from a Governmental
Authority.

 

“Permitted Debt” means (a) the Loans and the other
Obligations; (b) trade or other similar indebtedness incurred in the
ordinary course of business in accordance with the Base Case Project
Projections; and (c) in addition to Debt expressly set forth in the Base
Case Project Projections, up to $100,000 of Debt incurred in the ordinary
course of business in a fiscal year or up to $250,000 of Debt in the aggregate
outstanding at any time incurred in the ordinary course of business.

 

“Permitted Encumbrances” has the meaning given in Section 5.1(ee)(i) of
the 

 

A-34

 

Financing
Agreement.

 

“Permitted Investments” means investments in and agreements
reflecting such investments or executed to effectuate the same:

 

obligations issued or guaranteed by the United States
of America maturing or being due or payable in full not more than thirty (30)
days after Borrower’s acquisition thereof;

 

certificates of deposit, bankers acceptances and other
“money market instruments” issued by any Lender or a bank having capital and
surplus in an aggregate amount of not less than $500,000,000 and having the
following ratings: A or greater by S&P or A2 or greater by Moody’s, and, in
each case, maturing or being due or payable in full not more than one thirty
(30) days after Borrower’s acquisition thereof;

 

collateralized repurchase agreements entered into with
any bank or trust company organized under the laws of the United States of
America or any State thereof and having capital and surplus in an aggregate
amount of not less than $100,000,000 relating to United States of America
government obligations maturing or being due or payable in full not more than
thirty (30) days after Borrower’s acquisition thereof;

 

(i) tax exempt short-term securities having at
least the following ratings: A or greater by S&P or Prime or greater by
Moody’s; and (ii) tax exempt long-term securities having at least the
following ratings: A or greater by S&P or A2 or greater by Moody’s, in each
case maturing or being due or payable in full not more than thirty (30) days
after Borrower’s acquisition thereof;

 

money market funds for which the Securities
Intermediary or any of its Affiliates is investment manager or advisor; or

 

any other investments approved by Security Agent
(acting with the consent of the Majority Lenders).

 

“Permitted Liens” means (a) the Liens, rights and
interests of the Agents and other Secured Parties as provided in the Operative
Documents (including in the Collateral Documents); (b) Liens imposed by
any Governmental Authority for any taxes applicable to Borrower, for which
adequate reserves have been set aside therefor (as determined by the Security
Agent) or are either secured by a bond or other security reasonably acceptable
to 

 

A-35

 

Administrative
Agent or not yet due or being contested in good faith and by appropriate
proceedings, so long as (i) such proceedings shall not involve any
substantial danger of the sale, forfeiture or loss of any Project, any material
portion of the Project Site or any Real Property Parcel, as the case may be,
title thereto or any interest therein and shall not interfere in any material
respect with the use or disposition of the Projects, any material portion of
the Project Site or any Real Property Parcel, or (ii) adequate reserves
have been set aside therefor (as determined by the Security Agent) or such bond
or other security acceptable to Administrative Agent in its sole discretion has
been posted or provided in such manner and amount as to assure Administrative
Agent that any taxes, assessments or other charges determined to be due will be
promptly paid in full when such contest is determined; (c) materialmen’s,
mechanics’, workers’, repairmen’s, employees’ or other like liens arising in
the ordinary course of business or, prior to the Commercial Operation Date, in
connection with the construction of the Stetson II Project, either for amounts
not yet due or for amounts being contested in good faith and by appropriate
proceedings so long as (i) such proceedings shall not involve any
substantial danger of the sale, forfeiture or loss of any part of the Stetson
II Project, any material portion of the Project Site or any Real Property
Parcel, as the case may be, title thereto or any interest therein and shall not
interfere in any material respect with the use or disposition of the Stetson II
Project, any material portion of the Project Site or any Real Property Parcel,
or (ii) adequate reserves have been set aside therefor (as determined by
the Security Agent) or a bond or other security acceptable to Administrative
Agent in its sole discretion has been posted or provided in such manner and
amount as to assure Administrative Agent that any amounts determined to be due
will be promptly paid in full when such contest is determined; (d) Permitted
Encumbrances; (e) Liens incurred in the ordinary course of business in
connection with worker’s compensation, 

 

A-36

 

unemployment
insurance, social security and other Governmental Rules and that do not in
the aggregate, materially impair the use or the value of any Project; (f) Liens
arising out of judgments or awards so long as an appeal or proceeding for
review is being prosecuted in good faith and for the payment of which adequate
reserves in accordance with GAAP, bonds or other security acceptable to
Administrative Agent in its sole discretion have been provided or are fully
covered by insurance; (g) minor defects, easements, rights-of-way,
restrictions and other similar encumbrances incurred in the ordinary course of
business and encumbrances consisting of zoning restrictions, licenses,
restrictions on the use of property or minor imperfections in title which do
not impair the property affected thereby for the purpose for which title was
acquired or materially interfere with the operation of any Project as contemplated
by the Operative Documents; (h) mineral rights the use and enjoyment of
which do not materially interfere with the use and enjoyment of any Project or
any material portion of the Project Site; (i) Liens, deposits or pledges
to secure mandatory statutory obligations or performance of bids, tenders,
contracts (other than for the repayment of borrowed money) or leases, or for
purposes of like general nature in the ordinary course of Borrower’s business; (j) Liens
on assets, other than any real property assets, of Borrower related to any
Project, which assets have a fair market value of less than $250,000 in the
aggregate; (k) involuntary Liens (including a lien of an attachment,
judgment or execution) securing a charge or obligation, on any of Borrower’s
property, either real or personal, related to any Project, whether now or
hereafter owned in the aggregate sum of less than $250,000; (l) subject to
Section 8.4 of the Financing Agreement, a Lien granted to Security Agent
with respect to the ownership interests of the Project Companies in the Gen
Lead Company in connection with a Permitted Transmission Line Transfer; and (m) Energy
Hedge Lien if created in connection with documents executed pursuant to Section 8.2
of the Financing 

 

A-37

 

Agreement..

 

“Permitted Transmission Line Transfer”
has the meaning given in Section 8.4 of the Financing Agreement.

 

“Person” means any natural person, corporation, limited
liability company, partnership, firm, association, Governmental Authority or
any other entity whether acting in an individual, fiduciary or other capacity.

 

“Placed in Service Date” means the date
on which (a) Turbine Mechanical Completion Certificates, or any
replacement certificate providing the same certifications, have been delivered
for the Turbines included in the Stetson II Project; (b) the Stetson II
Project has obtained all Applicable Permits required for its operation, and (c) the
Stetson II Project is interconnected and synchronized to the grid and capable
of producing electricity in commercial quantities.

 

“Plans and Specifications” means the plans and specifications for the
construction and design of the Stetson II Project, including any document
describing the scope of work performed by the BOP Contractor under the BOP
Agreement or any other contract or subcontract for the construction of the
Stetson II Project and any feeder lines and interconnections, all work
drawings, engineering and construction schedules, project schedules, project
monitoring systems, specifications status lists, material and procurement
ledgers, drawings and drawing lists, manpower allocation documents, management
and project procedures documents, project design criteria, and any other
document or software referred to in or utilized in connection with the BOP
Agreement or any of the documents referred to in this definition, as the same
may be amended to the extent permitted by the Financing Agreement.

 

“Pledged
Equity Interests”
means (a) all the issued and outstanding membership 

 

A-38

 

interests
held by Member in Borrower and (b) all the issued and outstanding
membership interests held by Borrower in each Project Company.

 

“Power Market Consultant” means PACE Global Energy Services,
LLC, or its successor appointed pursuant to Section 13.1 of the Financing
Agreement.

 

“PPA” means that certain Power Purchase
Agreement between President and Fellows of Harvard College and Stetson Wind II,
LLC, dated as of September 29, 2009.

 

“Prime Rate” means the rate of interest
per annum publicly announced from time to time by BNP Paribas, as the
Administrative Agent, as such bank’s prime rate with respect to extensions of
credit made by it in the United States; and each change in the Prime Rate shall
be effective from and including the date such change is publicly announced as
being effective.

 

“Project Administration Agreement” means, collectively, (a) that
certain Management Services Agreement, dated as of July 17, 2009, by and
between Evergreen Wind Power V, LLC and First Wind Energy, LLC, and (b) that
certain Management Services Agreement, dated as of December 18, 2009, by
and between Stetson Wind II, LLC and First Wind Energy, LLC.

 

“Project Company” or “Project Companies” means Evergreen Wind Power V, LLC and/or
Stetson Wind II, LLC, as applicable.

 

“Project Documents” means the Material
Project Documents and the Additional Project Documents.

 

“Projected Debt Service Coverage Ratio”
means the ratio, calculated by the Administrative Agent, based on the financial
model utilized to create the Base Case Project Projections and applying each of
the P50 Production Level and the P99 Production Level, of (a) (i) Project
Revenues projected to be received by the Borrower or any Project Company from

 

A-39

 

the
ownership or operation of the Projects, less (ii) projected
O&M Costs, to (b) Debt Service, calculated for each quarterly period
during the remaining term under the Energy Hedge.

 

“Project Revenues” means all payments
received by Borrower or any Project Company from the ownership or operation of any Project, including (a) any
payments due to Borrower under the Energy Hedge and resulting from the
ownership of the Projects (including capacity payments) and all other income
derived from the sale or use of electric energy and renewable energy credits
generated by the Projects, (b) payments due to Borrower or any Project
Company under any Material Project Documents (including (i) any liquidated
damages due to Borrower or any Project Company under any BOP Agreement or the
Turbine Supply Agreement, (ii) warranty payments due to Borrower or any
Project Company under the Turbine Supply Agreement, and (iii) any warranty
payments due to Borrower or any Project Company under any BOP Agreement), (c) Loss
Proceeds of any business interruption insurance maintained by or on behalf of
Borrower or any Project Company, and (d) any net proceeds derived from the
sale of any property pertaining to any Project or incidental to the operation
of any Project to the extent allowed under the Financing Agreement; provided,
that Project Revenues shall not include (i) Loss Proceeds (other
than proceeds of any business interruption insurance), (ii) the investment
income on amounts on deposit in the Collateral Accounts, (iii) Government
Grants and (iv) amounts received by Evergreen Wind Power V, LLC in
connection with a Permitted Transmission Line Transfer.

 

“Project Site” means all property described in the Lease.

 

“Projects” means the Stetson I Project and the Stetson II
Project.

 

“Proportionate Share” means the percentages and amounts set
forth opposite such Lender’s name on Exhibit J to the Financing Agreement
to be prepared by Administrative 

 

A-40

 

Agent
and attached to the Financing Agreement on the Closing Date, as such Exhibit J
may be amended and modified from time to time as a result of transfers of Loans
or LC Commitment by a Lender.

 

“Prudent Utility Practices” means those practices, methods,
equipment, specifications and standards of safety and performance, of which
there may be more than one, and as the same may change from time to time, as
are commonly used by wind energy generation facilities of a type and size
similar to any Project as good, safe and prudent engineering practices utilized
in connection with the design, construction, operation, maintenance, repair and
use of electrical and other equipment, facilities and improvements of such wind
energy generation facility, with commensurate standards of safety, performance,
dependability, and efficiency.

 

“PUHCA” means the Public Utility Holding
Company Act of 2005, as amended, and all FERC rules and regulations
adopted thereunder.

 

“Real Property Agreements”  means the Lease.

 

“REC Contracts” means: (a) the
Certificate Purchase Agreement, dated as of October 9, 2008, by and
between Evergreen Wind Power, LLC, as seller, and Massachusetts Electric
Corporation, as buyer, as assigned to Evergreen Wind Power V, LLC effective as
of April 24, 2009; (b) the 2010 Certificate Purchase Agreement, dated
as of August 18, 2009, by and between Evergreen Wind Power V, LLC, as
seller, and Massachusetts Electric Corporation, as buyer; (c) the Purchase
and Sale Agreement for Massachusetts Renewable Energy Credits, dated as of October 22,
2009, by and between Evergreen Wind Power V, LLC and Shell Energy North
America, LP; (d) the Renewable Energy Certificate Purchase Agreement, by
and between NSTAR Electric & Gas Corporation and Evergreen Wind Power
V, LLC, dated as of October 5, 2009; and (e) the Citigroup REC
Contract; and (f) the trade confirmation dated December 21, 

 

A-41

 

2009, between Evergreen Wind Power V, LLC and Energy
America, LLC.

 

“REC Contracts Counterparties” means
each of the counterparties to the REC Contracts.

 

“REC  Contract LC”
means one or more letters of credit to be issued pursuant to Section 2.2(a)(iii) of
the Financing Agreement.

 

“Regulation D” means Regulation D of the Federal Reserve
Board (or any successor).

 

“Reimbursement Obligation” means
Borrower’s obligation to repay any Drawing Payments under any Letter of Credit
(together with interest accrued and unpaid thereon) as provided in Section 2.2(d) of
the Financing Agreement.

 

“Reimbursement Payments” means a payment
made by or on behalf of Borrower in partial or complete satisfaction of a
Reimbursement Obligation.

 

“Release” means disposing, discharging, injecting, spilling,
leaking, leaching, dumping, pumping, pouring, emitting, escaping, emptying,
seeping, migrating, placing, abandonment and the like, into or upon any land or
water or air, or otherwise entering into the environment.

 

“Replacement Obligor” means, with respect to any Person party
to a Project Document, any Person satisfactory to Administrative Agent (with
the consent of the Majority Lenders) who, pursuant to any definitive agreement
or definitive guaranty satisfactory to Administrative Agent (with the consent
of the Majority Lenders) assumes the obligation of providing the services
and/or products on terms and conditions no less favorable to Borrower or any
Project Company than those which such Person being replaced is obligated to
provide pursuant to the applicable Project Document.

 

A-42

 

“Required Applicable Lenders” has the meaning given in Section 12.7
of the Financing Agreement, subject to Section 2.6(c)(ii) of the
Financing Agreement.

 

“Reserve
Accounts” means the Debt Service Reserve Account and the O&M Reserve
Account.

 

“Reserve Requirement”
means, at any time, the maximum rate at which reserves (including any marginal,
special, supplemental, or emergency reserves) are required to be maintained
under regulations issued from time to time by the Federal Reserve Board by
member banks of the Federal Reserve System against “Eurocurrency liabilities”
(as such term is used in Regulation D). 
Without limiting the effect of the foregoing, the Reserve Requirement
shall reflect any other reserves required to be maintained by such member banks
with respect to (a) any category of liabilities which includes deposits by
reference to which the LIBO Rate with respect to LIBO Rate Loans is to be
determined, or (b) any category of extensions of credit or other assets
which include LIBO Rate Loans.

 

“Restoration Conditions” means in the
event Borrower wishes to restore any Project or the Project Site affected by an
Event of Eminent Domain or any event of loss for which Borrower or any Project
Company has received Loss Proceeds in an amount in excess of $1,500,000,
Borrower has promptly delivered to the Administrative Agent a Restoration Plan
and, such Restoration Plan has been approved by the Lenders and the
Administrative Agent in their sole discretion, in consultation with the
Independent Engineer; provided, however, that to the extent the
Restoration Plan is otherwise approved as set forth above and prior to the
receipt of such Loss Proceeds from the relevant insurance company, the Borrower
may use Borrower Equity to restore the Project or the Project Site affected by
such Event of Eminent Domain or event of loss and, following such restoration
to the satisfaction of the Administrative Agent (acting in consultation with
the Independent Engineer), the Borrower may be subsequently reimbursed in an
amount up to the Loss Proceeds, if any, actually received in the Loss Proceeds
Account with respect to such Event of Eminent Domain or event of loss, as
applicable.

 

“Restoration Plan” means a plan,
certified by an authorized officer of Borrower, 

 

A-43

 

for the restoration of the affected portion of any
Project, demonstrating that: (i) the sum of the aggregate amounts of Loss
Proceeds in respect of such event available to the Borrower (including in
respect of any deductible for which Borrower is responsible) are anticipated to
be sufficient to restore the affected portion of such Project to the condition
then required or contemplated under the applicable Project Document prior to
the occurrence of such event, (ii) all Applicable Permits required for the
restoration work have been obtained or can be expected to be obtained in due
course and are or can be expected to be free of any burdensome conditions, and (iii) the
restoration work will not result in a termination, cancellation, revocation or other
invalidity or impairment of any Applicable Permit or any Project Documents then
in effect that could, individually or in the aggregate, be reasonably expected
to have a Material Adverse Effect.

 

“Revenue Account” has the meaning given
in Section 6(a) of the Account Control Agreement.

 

“S&P” means Standard & Poor’s Ratings Group, a
division of the McGraw-Hill Companies, Inc., or, if such credit rating
agency terminates its activities, any other credit rating agency acceptable to
the Lenders.

 

“Scheduled Repayment Amount” means the repayment amounts of
the Term Loans and Bridge Loans corresponding to each Payment Date as set forth
in the Amortization Schedule and as adjusted from time to time pursuant to Section 3.2(a) of
the Financing Agreement.

 

“Secured Parties” means, collectively, the Lenders, the
Agents, the Issuing Bank, the Arranger, Securities Intermediary and Borrower’s
counterparties to the Interest Rate Agreements.

 

A-44

 

“Securities Intermediary” means SunTrust Bank, a
Georgia corporation, in its capacity as the Securities Intermediary under the
Account Control
Agreement, or its successor appointed pursuant to the terms of the Financing
Agreement and the Account Control Agreement.

 

“Security Agent” means BNP Paribas, acting in its capacity as
Security Agent for the Secured Parties under the Financing Agreement, or any
successor appointed pursuant to the terms of the Financing Agreement.

 

“Shared Facilities Agreement” means that certain Shared Facilities
Agreement, by and between Evergreen Wind Power V, LLC and Stetson Wind II, LLC,
dated as of December 22, 2009.

 

“Sponsor” means First Wind Holdings, LLC, a
Delaware limited liability company.

 

“Sponsor Equity” means the equity required to be contributed
by Sponsor in respect of the Projects in an amount equal to $95,962,382.

 

“Sponsor Indemnity Agreement” means the
Indemnity Agreement dated as of the date of the Financing Agreement, by the
Sponsor in respect of certain indemnity obligations arising out of a Government
Grant Disallowance Event.

 

“State” means (a) any state of the United States of
America or (b) the District of Columbia.

 

“Stated Amount” means, with regard to
any Letter of Credit, the total amount available to be drawn under such Letter
of Credit at the time in question in accordance with the terms of such Letter
of Credit and the Financing Agreement.

 

“Stetson I Holding Account” has the meaning given in Section 6(h) of
the 

 

A-45

 

Account
Control Agreement.

 

“Stetson I Lease” means that certain Land Lease Agreement, dated October 12,
2006, by and between Lakeville Shores, Inc. and Evergreen Wind Power V,
LLC, as amended by that certain First Amendment to Land Lease Agreement, dated March 30,
2007, and as further amended by that certain Second Amendment to Land Lease
Agreement, dated August 17, 2007.

 

“Stetson I Project” means the approximately 57 megawatt
nameplate capacity wind generation project comprised of Turbines, turbine
towers, tower-mounted transformers, feeder lines, transmission lines,
substations, switches, meteorological towers and related facilities, situated
in Washington County, Maine, together with all buildings, structures or
improvements erected on the land subject to the Stetson I Real Property
Interests, all alterations thereto or replacements thereof, all fixtures,
attachments, appliances, equipment, machinery and other articles attached
thereto or used in connection therewith and all Parts which may from time to
time be incorporated or installed in or attached thereto, all contracts and
agreements for the purchase or sale of commodities or other personal property
related thereto, all leases of real or personal property related thereto, and
all other real and tangible and intangible personal property owned by Borrower
and placed upon or used in connection with the generation of electricity upon
the Project Site.

 

“Stetson I Real Property Interests” means the Stetson I
Lease, as described in Exhibit H-8A to the Financing Agreement.

 

“Stetson I Reed Agreement” means that
certain Stetson Wind Power Project Construction Works Contract No. EWPV-07-02,
dated as of December 31, 2007, by and between Evergreen Wind Power V, LLC,
and Reed & Reed, Inc., as Contractor, as amended by Change Order
Number 001, dated as of August 15, 2008, as further amended by Change
Order Number 

 

A-46

 

002, dated as of November 9, 2008, as further
amended by Change Order Number 003, dated as of November 11, 2008, and as
further amended by Change Order Number 004, dated as of January 28, 2008.

 

“Stetson II Lease” means that certain Amended and Restated Land Lease
Agreement, dated as of December 26, 2008, by and between Lakeville Shores, Inc.
and Stetson Wind II, LLC, as amended by that certain First Amendment dated as
of June 30, 2009.

 

“Stetson II Prepayment” means an amount
equal to the sum of (i) the outstanding Bridge Loans and (ii) the
outstanding Term Loans allocated to the Stetson II Project, as determined
pursuant to Section 10.1(n) of the Financing Agreement by the
Administrative Agent (taking into account all debt sizing requirements
contemplated in the Debt Sizing Base Case).

 

“Stetson II Project” means the approximately 25.5 megawatt nameplate
capacity wind generation project comprised of Turbines, turbine towers,
tower-mounted transformers, feeder lines, transmission lines, substations,
switches, meteorological towers and related facilities, situated in Washington
County, Maine, together with all buildings, structures or improvements erected
on the land subject to the Stetson II Real Property Interests, all alterations
thereto or replacements thereof, all fixtures, attachments, appliances,
equipment, machinery and other articles attached thereto or used in connection
therewith and all Parts which may from time to time be incorporated or
installed in or attached thereto, all contracts and agreements for the purchase
or sale of commodities or other personal property related thereto, all leases
of real or personal property related thereto, and all other real and tangible
and intangible personal property owned by Borrower and placed upon or used in
connection with the generation of electricity upon the Project Site.

 

A-47

 

“Stetson II Real Property Interests” means the Stetson II
Lease and other easement interests, as described in Exhibit H-8B to the
Financing Agreement.

 

“Stetson II Reed Agreement” means that
certain Stetson II Wind Power Project Construction Contract, dated as of September 30,
2009, between Stetson Wind II, LLC, and Reed & Reed, Inc., as
modified by that certain Limited Notice to Proceed, dated as of September 30,
2009, and as further modified by that certain Second Limited Notice to Proceed
and Amendment to Contract, dated as of November 24, 2009.

 

“Stetson II Turbine Supply Loan” means
the Fourth Amended and Restated Secured Promissory Note, dated as of July 17,
2009, between First Wind Acquisition, LLC and HSH Nordbank AG, New York Branch.

 

“Stetson Wind II LLC Agreement” means the Limited Liability
Company Agreement of Stetson Wind II, LLC, dated July 3, 2007, as amended
by that certain First Amendment to Limited Liability Company Agreement of
Stetson Wind II, LLC, dated December 11, 2008, and as further amended by
that certain Second Amendment to Limited Liability Company Agreement of Stetson
Wind II, LLC, dated as of the date of the Financing Agreement.

 

“Subject Companies” has the meaning given in Section 6.19(a) of
the Financing Agreement.

 

“Subject Persons” has the meaning given in Section 10.1(d) of
the Financing Agreement.

 

“Substitutable Lender” has the meaning given in Section 12.13
of the Financing Agreement.

 

“Taxes” has the meaning given in Section 3.4(d)(i) of
the Financing Agreement.

 

A-48

 

“Term Loan” and “Term Loans”
have the meaning
given in Section 2.1(a) of the Financing Agreement.

 

“Term Loan Commitment Fees” has the meaning given in Section 3.3(d)(i) of
the Financing Agreement.

 

“Term Loan Maturity Date” means the earlier to occur of (a) seven
(7) years from the Closing Date; and (b) the date on which the entire
outstanding principal
balance of the Term Loans, together with all unpaid interest, fees, charges and
costs, become due and payable under the Financing Agreement.

 

“Terrorism Order” has the meaning assigned to such term in Section 6.40(a) of the
Financing Agreement.

 

“Title Insurer” means Stewart Title Guaranty Company.

 

“Title Policy” means that certain policy of the title
insurance issued by the Title Insurer as provided in Section 5.1(ee) of
the Financing Agreement, including all amendments thereto, endorsements thereof
and substitutions or replacements therefor.

 

“Total Bridge Loan Commitment” means the
aggregate amount of $18,632,891.16, as set forth in Section 2.4(c) of
the Financing Agreement.

 

“Total Commitment” means the (i) Total Term Loan
Commitment plus (ii) Total Bridge Loan
Commitment plus (c) Total LC Commitment,
as set forth in Section 2.4(a) of the Financing Agreement.

 

“Total LC Commitment” has the meaning
given in Section 2.4(a) of the Financing Agreement.

 

“Total Term Loan Commitment” means the
aggregate amount of $71,000,000, as set forth in Section 2.4(b) of
the Financing Agreement.

 

A-49

 

“Transmission Consultant” means Nexant Inc.

 

“Transmission Line Real Property Interests”
means those real property interests set forth in Exhibit H-9 to the
Financing Agreement.

 

“Transmission Owner” means Bangor Hydro-Electric Company.

 

“Turbine” means each GE 1.5sle MW wind turbine generator used
in any Project, conforming to the specifications for such model set forth in
the Turbine Supply Agreement.

 

“Turbine Operator” means General Electric
International Incorporated.

 

“Turbine Service Agreement” means Operations Support Agreement, dated
as of June 27, 2008, between General Electric International Incorporated,
as Operator, and Evergreen Wind Power V, LLC, as Owner.

 

“Turbine Supplier” means General Electric Company.

 

“Turbine Supply Agreements” means, collectively,
(a) the Contract for the Sale of Power Generation Equipment and Related
Services (Stetson), dated as of June 4, 2007, between First Wind
Acquisition, LLC, as Buyer, and General Electric Company, as Seller (“GE”), as
amended by that Scope Change Order Form 01 dated as of August 14,
2007, as amended by that Scope Change Order Form 02 dated September 7,
2007, as amended by that Change Order No. A, dated as of the 8th day of July, 2008, as amended by that External
Change Order No. 3, dated as of the 5th day of
August, 2008, as amended by that External Change Order No. 4, dated as of
the 22nd day of July, 2008, as amended by that External
Change Order No. 4, Revision No. 1, dated as of the 8th day of August, 2008, and as amended by that
External Change Order No. 5, dated as of July 14, 2009, as assigned
to Evergreen Wind Power V, LLC, pursuant to that certain Assignment and
Assumption Agreement, dated July 17, 2009. and (b) Contract for 

 

A-50

 

the Sale of Power Generation Equipment and Related
Services, dated June 27, 2006, as amended by that UPC Notice No. 2007-GE-J3XU5-01,
dated June 29, 2007, as amended by that External Change Order (ECO) No. 2,
dated November 20, 2007, as amended by Amendment No. 1 to the
Contract for the Sale of Power Generation Equipment and Related Services, dated
November 27, 2007, as amended by External Change Order (ECO) No. 3,
dated May 12, 2008, as amended by 
External Change Order (ECO) No. 4, dated September 17, 2008, as
amended by Amendment No. 2 to the Contract for the Sale of Power
Generation Equipment and Related Services, dated February 20, 2009, as
amended by External Change Order (ECO) No. 5, dated June 1, 2009, as
assigned to Stetson Wind II, LLC, pursuant to that certain Assignment and
Assumption Agreement, dated as of the date of the Financing Agreement.

 

“UCC” means the Uniform Commercial Code of the jurisdiction the law of
which governs the document in which such term is used or which governs the
creation or perfection of the Liens granted thereunder.

 

“Upwind Array” means a single Upwind Turbine
or wind energy project and all Upwind Turbines located thereon.

 

“Upwind Array Event” means the erection of
an Upwind Turbine owned by Borrower or any Affiliate thereof that is not
included in the Projects, which related Upwind Array could reasonably be
expected to have a material adverse impact on the power output of any Project,
as determined by the Independent Engineer (but in no event will a loss of power
output of 2% of the power output of any Project or less be considered a
material adverse impact).

 

“Upwind Turbine” means a
wind turbine generator that is located upwind of the Projects and within a
radius of 15 rotor diameter of a WTG comprising a part of any Project.

 

“Waukesha Electric” means Waukesha
Electric Systems, Inc., a Wisconsin corporation.

 

“Wind Consultant” means AWS Truewind,
LLC, or its successor appointed pursuant to Section 13.1 of the Financing
Agreement.

 

A-51

 

“Withholding Certificate (Effectively Connected)”
has the meaning given in Section 3.4(e) of the Financing Agreement.

 

“Withholding Certificate (Portfolio Interest)”
has the meaning given in Section 3.4(e) of the Financing Agreement.

 

“Withholding Certificate (Treaty)” has
the meaning given in Section 3.4(e) of
the Financing Agreement.

 

“Working Capital LC” means one or more
letters of credit to be issued pursuant to Section 2.2(a)(iv) of the
Financing Agreement.

 

“Working Capital LC Loan” has the
meaning given in Section 2.2(d)(vi) of the Financing Agreement.

 

A-52

 

RULES OF INTERPRETATION

 

1.                                       The singular includes the plural and the
plural includes the singular.

 

2.                                       The word “or” is not exclusive.

 

3.                                       A reference to a Governmental Rule includes
any amendment or modification to such Governmental Rule, and all regulations,
rulings and other Governmental Rules promulgated under such Governmental
Rule.

 

4.                                       A reference to a Person includes its
successors and permitted assigns.

 

5.                                       Accounting terms have the meanings
assigned to them by GAAP, as applied by the accounting entity to which they
refer.

 

6.                                       The words “include,” “includes” and “including”
are not limiting.

 

7.                                       A reference in a document to an Article,
Section, Exhibit, Schedule, Annex or Appendix is to the Article, Section,
Exhibit, Schedule, Annex or Appendix of such document unless otherwise
indicated.  Exhibits, Schedules, Annexes
or Appendices to any document shall be deemed incorporated by reference in such
document.

 

8.                                       References to any document, instrument or
agreement (a) shall include all exhibits, schedules and other attachments
thereto, (b) shall include all documents, instruments or agreements issued
or executed in replacement thereof, and (c) shall mean such document,
instrument or agreement, or replacement or predecessor thereto, as amended,
modified and supplemented from time to time and in effect at any given time.

 

9.                                       The words “hereof,” “herein” and “hereunder”
and words of similar import when used in any document shall refer to such
document as a whole and not to any particular provision of such document.  The words “will” and “shall” are used
interchangeably with the same meaning.

 

10.                                 References to “days” shall mean calendar
days, unless the term “Business Days” shall be used.  References to a time of day shall mean such
time in New York, New York, unless otherwise specified.

 

11.                                 The Financing
Documents are the result of negotiations between, and have been reviewed by
Borrower, the Affiliated Participants, the Agents, Issuing Bank, each Lender
and their respective counsel. 
Accordingly, the Financing Documents shall be deemed to be the product
of all parties thereto, and no ambiguity shall be construed in favor of or
against Borrower, the Affiliated Participants, Issuing Bank, any Agent or any
Lender.

 

1

 

EXHIBIT
B-1

to
Financing Agreement

 

	
   

  	
  Note No.

  

 

FORM OF
NOTE

 

	
  $

  	
   

  
	
   

  	
  Dated as of

  

 

For value received,
the undersigned Stetson Holdings, LLC, a Delaware limited liability company (“Borrower”),
promises to pay to                   , (“Lender”)
for the account of its applicable Lending Office specified in the Financing
Agreement referred to below, in lawful money of the United States of America
and in immediately available funds, the principal amount of                      DOLLARS ($                    ), or if less, the
aggregate unpaid and outstanding principal amount of this Note advanced by
Lender to Borrower pursuant to the Financing Agreement, dated as of December [    ],
2009 (the “Financing Agreement”), by and among  BNP Paribas 
as Joint Lead Arranger, Joint Bookrunner, Administrative
Agent, Security Agent, and Issuing Bank, and HSH Nordbank AG, New
York Branch as Joint Lead Arranger, Joint Bookrunner, Co-Syndication Agent
and the certain lenders (“Lenders”) party thereto.

 

This is one of the
Notes referred to in the Financing Agreement and is entitled to the benefits
thereof and is subject to all terms, provisions and conditions thereof.  Capitalized terms used and not defined herein
shall have the meanings set forth in Exhibit A to the Financing Agreement.

 

This Note is made in
connection with and is secured by, among other instruments, the provisions of
the Mortgage Documents, the Member Pledge and Security Agreement, the Borrower
Security and Pledge Agreement, the Account Control Agreement and the other
Collateral Documents.  Reference is
hereby made to the Financing Agreement, the Mortgage Documents, the Member
Pledge and Security Agreement, the Borrower Security and Peldge Agreement, the
Account Control Agreement and the other Collateral Documents for the
provisions, among others, with respect to the custody and application of the
Collateral, the nature and extent of the security provided thereunder, the
rights, duties and obligations of Borrower and the rights of the holder of this
Note.

 

The principal amount
hereof is payable in accordance with the Financing Agreement, and such
principal amount may be prepaid solely in accordance with the Financing
Agreement.

 

Borrower authorizes
Lender to record on the schedule annexed to this Note, the date and amount of
each Loan made by Lender, each payment or prepayment of principal thereunder
and agrees that all such notations shall constitute prima facie evidence of the matters noted in the absence of
demonstrable error.  Borrower further
authorizes Lender to attach to and make a part of this Note continuations of
the schedule attached thereto as necessary. 
No failure to make any 

 

Exhibit B-1

 

2

 

such
notations, nor any errors in making any such notations, shall affect the
validity of Borrower’s obligations to repay the full unpaid and outstanding
principal amount of the Loans.

 

Borrower further
agrees to pay, in lawful money of the United States of America and in
immediately available funds, interest from the date hereof on the unpaid and
outstanding principal amount hereof until such unpaid and outstanding principal
amount shall become due and payable (whether at stated maturity, by
acceleration or otherwise) at the rates of interest and at the times set forth
in the Financing Agreement.

 

If any payment on this
Note becomes due and payable on a date which is not a Business Day, such payment
shall be made on the succeeding, or next preceding, Business Day, in accordance
with the terms of the Financing Agreement.

 

Upon the occurrence of
any one or more Events of Default, all amounts then remaining unpaid on this
Note may become or be declared to be immediately due and payable as provided in
the Financing Agreement and other Financing Documents, without notice of
default, presentment or demand for payment, protest or notice of nonpayment or
dishonor, or notices or demands of any kind, all of which are expressly waived
by Borrower.

 

Recourse under this
Note shall be limited to that expressly set forth in Article 11 of the
Financing Agreement.

 

Borrower agrees to pay
all costs and expenses, including without limitation reasonable attorneys’ fees
and Liquidation Costs incurred in connection with the enforcement of this Note,
in accordance with the Financing Agreement.

 

Except as permitted by
the Financing Agreement, this Note may not be assigned by Lender to any other
person.  Transfer of this Note may be
effected only by a surrender of the Note by Lender and either reissuance of the
Note or issuance of a new Note by Borrower to the new lender.

 

This Note has been
executed and delivered in and shall be construed and interpreted in accordance
with and governed by the laws of the State of New York without reference to
conflicts of laws other than Section 5-1401 and 5-1402 of the New York
General Obligations Law.

 

[SIGNATURE
TO FOLLOW]

 

Exhibit B-1

 

3

 

	
   

  	
   

  	
  STETSON HOLDINGS, LLC

  
	
   

  	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

Exhibit B-1

 

4

 

	
   

  	
   

  	
   

  	
   

  	
  Prepayment or

  	
   

  	
  Outstanding

  	
   

  
	
  Date

  	
   

  	
  Advance

  	
   

  	
  Repayment

  	
   

  	
  Balance

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Exhibit B-1

 

5

 

EXHIBIT
C

to Financing Agreement

 

[Reserved]

 

Exhibit C

 

1

 

EXHIBIT
D-1

to
Financing Agreement

 

[Reserved]

 

Exhibit D-1

 

1

 

EXHIBIT
D-2

to
Financing Agreement

 

[Reserved]

 

Exhibit D-2

 

1

 

EXHIBIT
D-3

to Financing Agreement

 

FORM OF CONFIRMATION OF
INTEREST PERIOD SELECTION

 

TO:                                                                            BNP
Paribas, as Administrative Agent

 

FROM:                                                         Stetson Holdings, LLC, a
Delaware limited liability company (“Borrower”)

 

DATE:                                         

 

1.                                       This
Confirmation of Interest Period Selection is delivered to you pursuant to Section 2.1(c) of
the Financing Agreement, dated as of December [    ],
2009 by and among  BNP
Paribas  as Joint Lead Arranger, Joint
Bookrunner, Administrative Agent, Security Agent, and Issuing Bank,
and HSH Nordbank AG, New York Branch as Joint Lead Arranger, Joint
Bookrunner, Co-Syndication Agent and the certain lenders
(“Lenders”) party thereto (as amended, amended and restated,
supplemented and modified from time to time, the “Financing Agreement”).  All defined terms set forth herein shall have
the meanings specified in Exhibit A to the Financing Agreement.

 

2(a)                            We
hereby confirm with respect to the [Base Rate Loan/LIBO Rate Loan] in the
principal amount of
$                                        ,
that the applicable rate of interest is herby changed to a [LIBO Rate Loan/Base
Rate Loan], and we have selected a new Interest Period in respect of the new
[LIBO Rate Loan/Base Rate Loan], effective as
of                        ,
20    , as specified below:

 

Interest Period(1):

 

2(b)                           We
hereby confirm with respect to the LIBO Rate Loan in the principal amount of
$                                        ,
the current Interest Period with respect to which ends on
                        ,
20     and as such, we have selected a new Interest Period
in respect of such LIBO Rate Loan effective as of                        ,
20    , as specified below:

 

Interest Period:(2)

 

[SIGNATURE
TO FOLLOW]

 

(1) Paragraph 2(a) is
applicable in the event of a change from a Base Rate Loan to a LIBO Rate Loan
or a LIBO Rate Loan to a Base Rate Loan.

(2) Paragraph
2(b) is applicable in the event of a selection of a new Interest period of
a LIBO Rate Loan.

 

Exhibit D-3

 

1

 

	
   

  	
  Yours very truly,

  
	
   

  	
   

  	
   

  
	
   

  	
  STETSON HOLDINGS, LLC,

  a
  Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Exhibit D-3

 

2

 

EXHIBIT
D-4

to Financing Agreement

 

FORM OF NOTICE OF
BORROWING

 

Date: 
[            
    ], 2009

 

BNP Paribas

787 Seventh Avenue

New York, NY 10019

Attention:

Telephone:

Facsimile:

 

Re: Stetson Wind Farm Project

 

Ladies and Gentlemen:

 

This Notice of Borrowing is delivered to you pursuant to Sections 2.5
and [5.2(a)] of the Financing Agreement, dated as of December [    ],
2009 by and among  BNP
Paribas  as Joint Lead Arranger, Joint
Bookrunner, Administrative Agent, Security Agent, and Issuing Bank, and HSH Nordbank AG, New York
Branch as Joint Lead Arranger, Joint Bookrunner, Co-Syndication Agent and the
certain lenders (“Lenders”) party thereto (as amended, amended and
restated, supplemented and modified from time to time, the “Financing
Agreement”).  All capitalized terms
used herein shall have the respective meanings specified in Exhibit A to
the Financing Agreement unless otherwise defined herein or unless the context
requires otherwise.

 

This Notice of Borrowing constitutes a request for [Term Loans]/[Bridge
Loans] as follows:

 

1.                                       The proposed Closing Date is
[          ], 2009.

 

The aggregate amount of
[Term Loans]/[Bridge Loans] is
$[                    ],
of which amount $[                          ]
will be the aggregate principal amount of LIBO Rate Loans. Pursuant to Section 2.1(c) of
the Financing Agreement, Borrower hereby requests an irregular Interest Period
for this LIBO Rate Loan with an expiration date of [                            ].]

 

The undersigned does hereby certify as of the
date hereof that:

 

2.                                       Each representation and warranty set
forth in Article 6 of the Financing Agreement is true and correct in all
material respects as if made on the date hereof (unless such 

 

Exhibit D-4

 

1

 

representation or
warranty relates solely to an earlier date, in which case it shall have been
true and correct in all material respects as of such earlier date).

 

3.                                       No Event of Default or Inchoate Default with
respect to any Affiliated Participant has occurred and is continuing or will
result from the funding of the Loans and to the knowledge of Borrower, no
Inchoate Default with respect to any Major Project Participant that is not an
Affiliated Participant has occurred and is continuing or will result from the
funding of the Loans.

 

4.                                       Neither Borrower nor Member is in default
under any material term of any Operative Document or any other agreement or
instrument relating to any obligation of Borrower and Member for or with
respect to borrowed money, as applicable.

 

[SIGNATURE TO FOLLOW]

 

Exhibit D-4

 

2

 

The undersigned further confirms and certifies to each
Lender that, as of Closing Date, all conditions precedent to the Closing Date
set forth in Section 5.1 of the Financing Agreement have all been
satisfied or waived in accordance with the terms of the Financing Agreement.

 

	
   

  	
  STETSON HOLDINGS, LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Exhibit D-4

 

3

 

EXHIBIT
D-5

to
Financing Agreement

 

FORM OF
PENDING DISBURSEMENTS CLAUSE

 

Pending disbursement of
the full proceeds of the loan secured by the Mortgage or Deed of Trust
described in Schedule A, this Policy insures only to the extent of the amount
actually disbursed which on the date hereof 
is
                                        .  This Policy insures against loss or damage
which results from claims of mechanics’ or materialmen’s liens arising from
non-payment of bills for labor performed or material furnished prior to December 22,
2009, except any such liens or notices thereof as may be recited under Schedule
B hereof.  At the time of each
disbursement of proceeds of the loan, an endorsement to this Policy must be
secured increasing the amount insured hereunder up to the face amount of the
Policy, and re-dating the Policy, all endorsements attached thereto, and the
date set forth in the immediate preceding sentence to the date of the relevant
disbursement, subject to the following requirements being met before issuance
of such endorsement: (a) a title search is made by the Company that
reveals no liens, objections or any adverse changes in title, with the Company
reserving the right to take as an exception any liens, objections or any
adverse changes in title revealed by such (b) the contractor and owner
furnish the Company satisfactory paid bills, lien waivers, estoppel
certificates and other evidence that all items, from which a lien might arise,
have been paid or otherwise satisfied, and (c) the Owner and Contractor
furnish the Company satisfactory Affidavit and Indemnity Agreement (s) as
to the matters referred to in (b) above. 
This Policy does not insure against mechanics’ and materialmen’s liens
for labor performed and materials furnished subsequent to the last date to
which mechanics’ lien coverage has been extended, nor does this Policy insure
completion of the improvements in progress, or their compliance with plans and
specifications.  The Company in no way
guarantees the sufficiency of the mortgage proceeds as adequate to complete
improvements.  Notwithstanding any other
language contained in the insuring provisions of this Policy, the above
provisions are the sole provision applicable to coverage for loss or damage
resulting from mechanics’ or materialmen’s liens or claims not of record.

 

Exhibit D-5

 

1

 

EXHIBIT
E-1

to
Financing Agreement

 

FORM OF
MORTGAGE DOCUMENTS

 

(See Tab      )

 

 

Penobscot and Washington Counties, Maine

 

 

MORTGAGE, ASSIGNMENT OF RENTS, SECURITY

AGREEMENT AND FIXTURE FILING

 

BY

 

EVERGREEN WIND POWER V, LLC,

as Mortgagor

 

TO

 

BNP PARIBAS, as Security Agent,

as Mortgagee

 

Relating to Premises in:

 

Penobscot and Washington Counties, Maine

 

DATED:  As of December 22,
2009

 

 

This instrument was prepared

by and after recording should be returned to:

 

Milbank, Tweed, Hadley & McCloy LLP

601 South Figueroa Street, 30th Floor

Los Angeles, CA 90017

Attn:  Allan T. Marks

 

 

MORTGAGE, ASSIGNMENT OF RENTS, SECURITY

AGREEMENT AND FIXTURE FILING

 

KNOW ALL PERSONS BY THESE PRESENTS:

 

THIS MORTGAGE, ASSIGNMENT OF RENTS, SECURITY
AGREEMENT AND FIXTURE FILING (this “Mortgage”) is made as of December 22,
2009 by EVERGREEN WIND POWER V, LLC, a limited liability company duly organized
and validly existing under the laws of the State of Delaware and having an
office at c/o First Wind Energy, LLC, 179 Lincoln Street, Suite 500,
Boston, MA 02111 (the “Mortgagor”), in favor of BNP PARIBAS, having
an office at 787 Seventh Avenue, New York, New York 10019, as
Security Agent for the Secured Parties party to the Loan Agreement referred to
below (in such capacity, together with its successors in such capacity, the “Mortgagee”).

 

W I T N E S S E T H:

 

WHEREAS, Stetson Holdings, LLC, as borrower (the “Borrower”),
BNP Paribas, HSH Nordbank AG, New York Branch and other financial institutions
who later become a party thereto (collectively, the “Lenders”), HSH
Nordbank AG, New York Branch, in its capacity as Joint Lead Arranger, and BNP
Paribas, in its capacities as Joint Lead Arranger, as Administrative Agent for
the Lenders, as Security Agent for the Secured Parties, and as Issuing Bank,
are the parties to a Financing Agreement dated as of December 22, 2009 (as
modified, supplemented, further amended and amended and restated and in effect
from time to time, being herein called the “Loan Agreement”; except as
otherwise herein expressly provided, all terms defined in the Loan Agreement
being used herein as defined therein), which Loan Agreement provides for
extensions of credit to be made by the Lenders to the Borrower as set forth
therein in an original aggregate amount up to but not exceeding the Commitment,
for extensions of credit (the “Loans”).

 

WHEREAS the Mortgagor expects to receive benefits
from the extensions of credit pursuant to the Loan Agreement.

 

WHEREAS, pursuant to that certain Guaranty and
Security Agreement, dated as of December 22, 2009 as modified,
supplemented, amended and amended and restated and in effect from time to time,
being herein called the “Security Agreement”), the Mortgagor has
unconditionally secured the principal of and interest on the Loans made by the
Lenders to the Borrower and all other amounts from time to time owing to the
Lenders by the Borrower under the Loan Documents (as hereinafter defined);

 

WHEREAS, it is a condition to the obligation of the
Lenders to extend credit to the Borrower pursuant to the Loan Agreement that
the Mortgagor execute and deliver this Mortgage;

 

NOW, THEREFORE, for good and valuable consideration,
the receipt of which is hereby acknowledged, and FOR THE PURPOSE OF SECURING
the following (collectively, the “Obligations”):

 

1.     the
obligations of the Mortgagor in respect of its guarantee under the Security
Agreements,

 

 

2.     the
performance and payment of the covenants, agreements and obligations
hereinafter contained and contained in the Security Agreement,

 

3.     the
performance and payment of the covenants, agreements and obligations
hereinafter contained and contained in the Loan Agreement and the other Loan
Documents and all other monies secured hereby, including, without limitation,
any and all sums expended by the Mortgagee pursuant to Section 1.09,
together with interest thereon, and

 

4.     the
payment of all other obligations of the Borrower and Mortgagor to the Lenders
under the Loan Documents,

 

the Mortgagor hereby irrevocably grants, bargains,
sells, releases, conveys, warrants, assigns, transfers, mortgages, pledges,
sets over and confirms unto the Mortgagee, under and subject to the terms and
conditions hereinafter set forth, the land and premises (the “Land”)
described in the deeds to Mortgagor identified in Exhibit A,
together with the easement rights (the “Easement Rights”) described in
the assignment and easement deeds to Mortgagor identified in Exhibit B,
the Land and the Easement Rights being hereinafter collectively called the “Property”;

 

TOGETHER WITH all interests, estates or other
claims, both in law and in equity, that the Mortgagor now has or may hereafter
acquire in (a) the Property, (b) all easements, rights-of-way and
rights used in connection therewith or as a means of access thereto, including
(without limitation) the access easements identified in Exhibit D
and (c) all tenements, hereditaments and appurtenances
in any manner belonging, relating or appertaining thereto (all of the foregoing
interests, estates and other claims being hereinafter collectively called “Access
Easements and Rights of Way”); and

 

TOGETHER WITH all estate, right, title and interest
of the Mortgagor, now owned or hereafter acquired, in and to any land lying
within the right-of-way of any streets, open or proposed, adjoining the
Property, and any and all sidewalks, alleys and strips and gores of land
adjacent to or used in connection therewith (all of the foregoing estate,
right, title and interest being hereinafter called “Adjacent Rights”);
and

 

TOGETHER WITH all estate, right, title and interest
of the Mortgagor, now owned or hereafter acquired, in and to any and all
buildings and other improvements now or hereafter located on the Land or on the
land burdened by the Easement Rights and all building materials, building
equipment and fixtures of every kind and nature located on the Land or on the
land burdened by the Easement Rights or, attached to, contained in or used in
any such buildings and other improvements (including, without limitation,
substations, transmission lines, collection lines, microwave towers and
ancillary facilities), and all appurtenances and additions thereto and
betterments, substitutions and replacements thereof (all of the foregoing
estate, right, title and interest being hereinafter collectively called “Improvements”);
and

 

TOGETHER WITH all estate, right, title and interest
of the Mortgagor in and to all such tangible property now owned or hereafter
acquired by the Mortgagor (including but not limited to any and all machinery,
apparatus, equipment, fittings, partitions, ducts, shafts, pipes, radiators,
conduits, wiring, floor coverings, awnings, motors, engines, boilers, stokers,
pumps, dynamos, 

 

 

transformers, turbines, generators, fans,
blowers, vents, switchboards, elevators, escalators, compressors, furnaces,
cleaning equipment, call and sprinkler systems, fire extinguishing apparatus,
water and other tanks, heating, ventilating, plumbing, incinerating, air
conditioning and air cooling systems and water, gas, telephone,
telecommunications, telemetry and electric equipment and articles of personal
property) now or hereafter located on or at or attached to the Land or on the
land burdened by the Easement Rights such that an interest in such tangible
property arises under applicable real estate law, and any and all products and
accessions to any such property that may exist at any time (all of the foregoing
estate, right, title and interest, and products and accessions being
hereinafter called “Fixtures”); and

 

TOGETHER WITH all estate, right, title and interest
of the Mortgagor in and to all rights, royalties and profits in connection with
all minerals, oil and gas and other hydrocarbon substances on or in the
Property, development rights or credits, air rights, water, water rights
(whether riparian, appropriative, or otherwise and whether or not appurtenant)
and water stock (all of the foregoing estate, right, title and interest being
hereinafter collectively called “Mineral and Related Rights”); and

 

TOGETHER WITH all reversion or reversions and
remainder or remainders of the Property and Improvements and all estate, right,
title and interest of the Mortgagor in and to any and all present and future
leases of space in the Property and Improvements, and all rents, revenues,
proceeds, issues, profits, royalties, income and other benefits now or
hereafter derived from the Property, the Improvements and the Fixtures, subject
to the right, power and authority hereinafter given to the Mortgagor to collect
and apply the same (all of the foregoing reversions, remainders, leases of
space, rents, revenues, proceeds, issues, profits, royalties, income and other
benefits being hereinafter collectively called “Rents”); and

 

TOGETHER WITH all estate, right, title and interest
and other claim or demand that the Mortgagor now has or may hereafter acquire
with respect to any damage to the Property, the Improvements or the Fixtures
and any and all proceeds of insurance in effect with respect to the
Improvements or the Fixtures, including, without limitation, any title
insurance, and any and all awards made for the taking by eminent domain, or by
any proceeding or purchase in lieu thereof, of the Property, the Improvements
or the Fixtures, including without limitation any awards resulting from a
change of grade of streets or as the result of any other damage to the
Property, the Improvements or the Fixtures for which compensation shall be
given by any governmental authority (all of the foregoing estate, right, title
and interest and other claims or demand, and any such proceeds or awards being
hereinafter collectively called “Damage Rights”); and

 

TOGETHER WITH all estate, right, title and interest
of the Mortgagor in respect of any and all air rights, development rights,
zoning rights or other similar rights or interests that benefit or are
appurtenant to the Property or the Improvements (including, but not limited to,
any and all wind energy and wind flow rights, noise buffer rights, development
rights, option rights or similar or comparable rights of any nature whatsoever
now or hereafter appurtenant to the Property or now or hereafter transferred to
the Property) (all of the foregoing estate, right, title and interest being
hereinafter collectively called “Air and Development Rights”); and

 

TOGETHER WITH all estate, right, title and interest
of the Mortgagor in and to the agreements identified in Exhibit C
attached hereto, and all other agreements heretofore or 

 

 

hereafter entered into relating to the
construction, ownership, operation, management or use of the Property or
Improvements, to the fullest extent that the same or any interest therein may
be legally assigned by Mortgagor (collectively, the “Agreements”); and

 

TOGETHER WITH all estate, right, title and interest
of the Mortgagor in and to the permits identified in Exhibit E
attached hereto, and all other building permits, governmental permits,
licenses, variances, conditional or special use permits, and other
authorizations now or hereafter issued in connection with the construction,
development, ownership, operation, management or use of the Property or
Improvements, to the fullest extent that the same or any interest therein may
be legally assigned by Mortgagor (collectively, the “Permits”).

 

All of the foregoing Access Easements and Rights of
Way, Adjacent Rights, Improvements, Fixtures, Mineral and Related Rights,
Rents, Damage Rights, Air and Development Rights, Agreements and Permits being
sometimes hereinafter referred to collectively as the “Ancillary Rights and
Properties” and the Land, the Easement Rights, and Ancillary Rights and
Properties being sometimes hereinafter referred to collectively as the “Mortgage
Estate”;

 

TO HAVE AND TO HOLD the Mortgage Estate with all
privileges and appurtenances thereunto belonging, to the Mortgagee and its
successors and assigns, forever, upon the terms and conditions and for the uses
hereinafter set forth;

 

PROVIDED ALWAYS, that if the principal of and
interest on the Loans under the Loan Agreement and all of the other Obligations
shall be paid in full, and the Borrower shall abide by and comply with each and
every covenant contained herein and in the Loan Agreement, then this Mortgage
and the Lien and estate hereby granted shall cease, terminate and become void.

 

This Mortgage, the Loan Agreement and any other
instrument given to evidence or further secure the payment and performance of
any Obligation are sometimes hereinafter collectively referred to as the “Loan
Documents.”

 

TO PROTECT THE SECURITY OF THIS MORTGAGE, THE
MORTGAGOR HEREBY COVENANTS AND AGREES AS FOLLOWS:

 

ARTICLE 1

 

Particular
Covenants and Agreements of the Mortgagor

 

Section 1.01.          Payment of Secured Obligations.  The Mortgagor shall pay when due all
Obligations in respect of its guarantee under the Collateral Documents.

 

 

Section 1.02.          Title, Etc.  The Mortgagor represents and warrants that
the Mortgagor is lawfully seized and possessed of a valid and subsisting fee
simple interest in the Land, is the owner of the Easement Rights, and is the
owner of the related Ancillary Rights and Properties, in each case subject to
no mortgage, deed of trust, lien, pledge, charge, security interest or other
encumbrance or adverse claim of any nature, except those permitted under the
Loan Agreement.

 

The Mortgagor represents and warrants that it has
the full power and lawful authority to grant, bargain, sell, release, convey,
warrant, assign, transfer, mortgage, pledge, set over and confirm unto the
Mortgagee the Mortgage Estate as hereinabove provided.

 

Section 1.03.          Further Assurances; Filing;
Re-Filing; Etc.

 

(a)           Further
Instruments.  The Mortgagor shall
execute, acknowledge and deliver, from time to time, such further instruments
as the Mortgagee may reasonably require to accomplish the purposes of this
Mortgage.

 

(b)           Filing
and Re-Filing.  The Mortgagor,
immediately upon the execution and delivery of this Mortgage, and thereafter
from time to time, shall cause this Mortgage, any security agreement or
mortgage supplemental hereto and each instrument of further assurance to be
filed, registered or recorded and re-filed, re-registered or re-recorded in
such manner and in such places as may be required by any present or future law
in order to publish notice of and perfect the Lien or estate of this Mortgage
upon the Mortgage Estate.

 

(c)           Fees
and Expenses.  The Mortgagor shall
pay all filing, registration and recording fees, all re-filing, re-registration
and re-recording fees, and all expenses incident to the execution, filing,
recording and acknowledgment of this Mortgage, any security agreement or
mortgage supplemental hereto and any instrument of further assurance, and all
Federal, state, county and municipal stamp taxes and other taxes, duties,
imposts, assessments and charges arising out of or in connection with the
execution, delivery, filing and recording of this Mortgage or any of the other
Loan Documents, any security agreement or mortgage supplemental hereto or any
instruments of further assurance.

 

Section 1.04.          Intentionally Omitted.

 

Section 1.05.          Insurance.  The Mortgagor will maintain insurance, with
respect to the Mortgage Estate, in accordance with the Loan Agreement.

 

Section 1.06.          Casualty and Condemnation Events.

 

(a)           Casualty
and Condemnation.  Should the
Mortgage Estate or any part thereof be taken or damaged by reason of any fire
or other casualty (collectively, a “Casualty”), or by reason of any
public improvement or condemnation proceeding (collectively, a “Condemnation”)
or should the Mortgagor receive any notice or other information regarding any
such proceeding, such Casualty, Condemnation or notice or other information
regarding any such proceeding shall be handled in accordance with the Loan
Agreement.

 

 

Section 1.07.          Impositions.  The Mortgagor shall pay or cause to be paid
all taxes, assessments, water and sewer rates, utility charges and all other
governmental or non-governmental charges assessed or levied against any part of
the Mortgage Estate or upon the Lien or estate of the Mortgagee therein in
accordance with the Loan Agreement.

 

Section 1.08.          Limitations of Use.  Except as otherwise permitted under the Loan
Documents, the Mortgagor shall comply in all material respects with the
provisions of all leases, licenses, agreements and private covenants,
conditions and restrictions that at any time are applicable to the Mortgage
Estate.

 

Section 1.09.          Actions to Protect Mortgage Estate.  If the Mortgagor shall fail to (a) perform
and observe any of the terms, covenants or conditions required to be performed
or observed by it under the instruments conveying the Easement Rights to
Mortgagor identified in Exhibit B, or perform and observe any of
the terms, covenants or conditions required to be performed or observed by it
under the Agreements identified in Exhibit C, (b) effect the
insurance required by and as provided in Section 1.05, (c) make the
payments required by Section 1.07 or (d) perform or observe any of
its other covenants or agreements hereunder, the Mortgagee may, without
obligation to do so, and upon notice to the Mortgagor (except in an emergency)
effect or pay the same.  To the maximum
extent permitted by law, all sums, including reasonable attorneys’ fees and
disbursements, so expended or expended to sustain the Lien or estate of this
Mortgage or its priority, or to protect or enforce any of the rights hereunder,
or to recover any of the Obligations, shall be a Lien on the Mortgage Estate,
shall be deemed to be added to the Obligations secured hereby, and shall be
paid by the Mortgagor within 10 days after demand therefor,
together with interest thereon at the default rate provided for in the Loan
Agreement.

 

Section 1.10.          Estoppel
Certificates.  The Mortgagor, within
ten days after written request therefor, shall
furnish the Mortgagee a written statement, duly acknowledged, of the amount of
the Obligations then secured by this Mortgage and whether to their knowledge
any offsets or defenses exist against any such Obligations.

 

ARTICLE 2

 

Assignment
of Rents, Issues and Profits

 

Section 2.01.          Assignment of Rents, Issues and
Profits.  The Mortgagor hereby
assigns and transfers to the Mortgagee, FOR THE PURPOSE OF SECURING the
Obligations, all Rents, and hereby gives to and confers upon the Mortgagee the
right, power and authority to collect the same. 
The Mortgagor irrevocably appoints the Mortgagee its true and lawful
attorney-in-fact, at its option at any time and from time to time following the
occurrence and during the continuance of a Default, to demand, receive and
enforce payment, to give receipts, releases and satisfactions, and to sue, in
the name of the Mortgagor or otherwise, for Rents and apply the same to the
Obligations as provided in paragraph (a) of Section 4.03; provided,
however, that the Mortgagor shall have the right to collect Rents at any
time prior to the occurrence of a Default (but not more than one month in
advance, except in the case of security deposits).

 

 

Section 2.02.          Collection Upon Default.  To the extent permitted by law, upon the
occurrence of any Default, the Mortgagee may, at any time without notice,
either in person, by agent or by a receiver appointed by a court, and without
regard to the adequacy of any security for the Obligations or the solvency of
the Mortgagor, enter upon and take possession of the Property, the Improvements
and the Fixtures or any part thereof, in its own name, sue for or otherwise
collect Rents including those past due and unpaid, and, apply the same, less
costs and expenses of operation and collection, including attorneys’ fees and
disbursements, to the payment of the Obligations as provided in paragraph (a) of
Section 4.03, and in such order as the Mortgagee may determine.  The collection of Rents or the entering upon
and taking possession of the Property, the Improvements or the Fixtures or any
part thereof, or the application thereof as aforesaid, shall not cure or waive
any Default or notice thereof or invalidate any act done in response to such
Default or pursuant to notice thereof.

 

ARTICLE 3

 

Security
Agreement

 

Section 3.01.          Creation
of Security Interest.  The Mortgagor
hereby grants to the Mortgagee a security interest in the Fixtures for the
purpose of securing the Obligations.  The
Mortgagee shall have, in addition to all rights and remedies provided herein
and in the other Loan Documents, all the rights and remedies of a secured party
under the Uniform Commercial Code of the state in which the applicable
portion of the Fixtures is located.  The
Mortgagor represents and warrants to the Mortgagee that the Mortgagor has an
interest of record in the real property on which the Fixtures are located, and
the organizational identification number of the Mortgagor is 90-0197266.Section 3.02            Warranties,
Representations and Covenants.  The
Mortgagor hereby warrants, represents and covenants that:  (a) the Fixtures will be kept on or at
the Property and the Mortgagor will not remove any Fixtures from the Property,
except as permitted under the Loan Documents and except such portions or items
of the Fixtures that are consumed or worn out in ordinary usage, all of which
shall be promptly replaced by the Mortgagor, except as otherwise expressly
provided in the Loan Documents, (b) all covenants and obligations of the
Mortgagor contained herein relating to the Mortgage Estate shall be deemed to
apply to the Fixtures whether or not expressly referred to herein and (c) this
Mortgage constitutes a security agreement and “fixture filing” as those terms
are used in the applicable Uniform Commercial Code.  The Mortgagor is the “Debtor” and its name
and mailing address are set forth on Page 1 hereof.  The Mortgagee is the “Secured Party” and its
name and mailing address from which information relative to the security
interest created hereby are also set forth on Page 1 hereof.  The information provided in this Section 3.02
is provided so that this Mortgage shall comply with the requirements of the
Uniform Commercial Code as in effect in the state in which the Mortgage
Estate is located for a mortgage instrument to be filed as a financing
statement.

 

Defaults; Remedies

 

Section 4.01.          Defaults.  If any Event of Default (herein, a “Default”)
under the Loan Agreement shall occur and be continuing and, as more
particularly provided in the Loan Agreement, the principal of and accrued
interest on the extensions of credit and all other Obligations under the Loan
Agreement shall be declared, or become, due and payable, then the

 

 

obligations of the Mortgagor
under the Security Agreement shall become due and payable, without presentment,
demand, protest or other formalities of any kind, all of which have been waived
pursuant to the Loan Agreement.Default
Remedies.

 

Section 4.02           Default Remedies.

 

(a)           Remedies
Generally.  If a Default shall have
occurred and be continuing, this Mortgage may, to the maximum extent permitted
by law, be enforced, and the Mortgagee may exercise any right, power or remedy
permitted to it hereunder, under the Loan Agreement or under any of the other
Loan Documents or by law, and, without limiting the generality of the
foregoing, the Mortgagee may, personally or by its agents, to the maximum
extent permitted by law:

 

(i)    enter
into and take possession of the Mortgage Estate or any part thereof, exclude
the Mortgagor and all persons claiming under the Mortgagor whose claims are
junior to this Mortgage, wholly or partly therefrom,
and use, operate, manage and control the same either in the name of the
Mortgagor or otherwise as the Mortgagee shall deem best, and upon such entry,
from time to time at the expense of the Mortgagor and the Mortgage Estate, make
all such repairs, replacements, alterations, additions or improvements to the
Mortgage Estate or any part thereof as the Mortgagee may deem proper and,
whether or not the Mortgagee has so entered and taken possession of the
Mortgage Estate or any part thereof, collect and receive all Rents and apply
the same to the payment of all expenses that the Mortgagee may be authorized to
make under this Mortgage, the remainder to be applied to the payment of the
Obligations until the same shall have been repaid in full; if the Mortgagee
demands or attempts to take possession of the Mortgage Estate or any portion
thereof in the exercise of any rights hereunder, the Mortgagor shall promptly
turn over and deliver complete possession thereof to the Mortgagee; and

 

(ii)   personally or by agents,
with or without entry, if the Mortgagee shall deem it advisable:

 

(x)            sell the Mortgage Estate at a sale or sales held at such
place or places and time or times and upon such notice and otherwise in such
manner as may be required by law, or, in the absence of any such requirement,
as the Mortgagee may deem appropriate, and from time to time adjourn any such
sale by announcement at the time and place specified for such sale or for such
adjourned sale without further notice, except such as may be required by law;

 

(y)           proceed to protect and enforce its rights under this
Mortgage, by suit for specific performance of any covenant contained herein or
in the Loan Documents or in aid of the execution of any power granted herein or
in the Loan Documents, or for the foreclosure of this Mortgage (as a mortgage
or otherwise) and the sale of the Mortgage Estate under the judgment or decree
of a court of competent jurisdiction, or for the enforcement of any other right
as the Mortgagee shall deem most effectual for such purpose, provided,
that in the event of a sale, by foreclosure or otherwise, of less than all of
the Mortgage Estate, this Mortgage shall continue as a Lien on, and security
interest in, the remaining portion of the Mortgage Estate; or

 

 

(z)            exercise any or all of the remedies available to a
secured party under the applicable Uniform Commercial Code, including,
without limitation:

 

(1)   either personally or by
means of a court appointed receiver, take possession of all or any of the
Fixtures and exclude therefrom the Mortgagor and all
persons claiming under the Mortgagor, and thereafter hold, store, use, operate,
manage, maintain and control, make repairs, replacements, alterations,
additions and improvements to and exercise all rights and powers of the
Mortgagor in respect of the Fixtures or any part thereof; if the Mortgagee
demands or attempts to take possession of the Fixtures in the exercise of any
rights hereunder, the Mortgagor shall promptly turn over and deliver complete
possession thereof to the Mortgagee;

 

(2)   without notice to or demand
upon the Mortgagor, make such payments and do such acts as the Mortgagee may
deem necessary to protect its security interest in the Fixtures, including,
without limitation, paying, purchasing, contesting or compromising any
encumbrance that is prior to or superior to the security interest granted
hereunder, and in exercising any such powers or authority paying all expenses
incurred in connection therewith;

 

(3)   require the Mortgagor to
assemble the Fixtures or any portion thereof, at a place designated by the
Mortgagee and reasonably convenient to both parties, and promptly to deliver
the Fixtures to the Mortgagee, or an agent or representative designated by it;
the Mortgagee, and its agents and representatives, shall have the right to
enter upon the premises and property of the Mortgagor to exercise the Mortgagee’s
rights hereunder; and

 

(4)   sell, lease or otherwise
dispose of the Fixtures, with or without having the Fixtures at the place of
sale, and upon such terms and in such manner as the Mortgagee may determine
(and the Mortgagee or any Lender may be a purchaser at any such sale).

 

(b)           Appointment
of Receiver.  If a Default shall have
occurred and be continuing, the Mortgagee, to the maximum extent permitted by
law, shall be entitled, as a matter of right, to the appointment of a receiver
of the Mortgage Estate, without notice or demand, and without regard to the
adequacy of the security for the Obligations or the solvency of the
Mortgagor.  The Mortgagor hereby
irrevocably consents to such appointment and waives notice of any application therefor.  Any such
receiver or receivers shall have all the usual powers and duties of receivers
in like or similar cases and all the powers and duties of the Mortgagee in case
of entry and shall continue as such and exercise all such powers until the date
of confirmation of sale of the Mortgage Estate, unless such receivership is
sooner terminated.

 

(c)           Rents.  If a Default shall have occurred and be
continuing, the Mortgagor shall, to the maximum extent permitted by law, pay
monthly in advance to the Mortgagee, or to

 

 

any
receiver appointed at the request of the Mortgagee to collect Rents, the fair and
reasonable rental value for the use and occupancy of the Property, the
Improvements and the Fixtures or of such part thereof as may be in the
possession of the Mortgagor.  Upon
default in the payment thereof, the Mortgagor shall vacate and surrender possession
of the Property, the Improvements and the Fixtures to the Mortgagee or such
receiver, and upon a failure so to do may be evicted by summary proceedings.

 

(d)        Sale.  In any sale
under any provision of this Mortgage or pursuant to any judgment or decree of
court, the Mortgage Estate, to the maximum extent permitted by law, may be sold
in one or more parcels or as an entirety and in such order as the Mortgagee may
elect, without regard to the right of the Mortgagor or any person claiming
under the Mortgagor to the marshalling of assets.  The purchaser at any such sale shall take
title to the Mortgage Estate or the part thereof so sold free and discharged of
the estate of the Mortgagor therein, the purchaser being hereby discharged from
all liability to see to the application of the purchase money.  Any person, including Mortgagee or any
Lender, may purchase at any such sale. 
Upon the completion of any such sale by virtue of this Section 4.02
the Mortgagee shall execute and deliver to the purchaser an appropriate
instrument that shall effectively transfer all of the Mortgagor’s estate,
right, title, interest, property, claim and demand in and to the Mortgage
Estate or portion thereof so sold, but without any covenant or warranty,
express or implied.  The Mortgagee is
hereby irrevocably appointed the attorney-in-fact of the Mortgagor in its name
and stead to make all appropriate transfers and deliveries of the Mortgage
Estate or any portions thereof so sold and, for that purpose, the Mortgagee may
execute all appropriate instruments of transfer, and may substitute one or more
persons with like power, the Mortgagor hereby ratifying and confirming all that
such attorneys or such substitute or substitutes shall lawfully do by virtue
hereof.  Nevertheless, the Mortgagor
shall ratify and confirm, or cause to be ratified and confirmed, any such sale
or sales by executing and delivering, or by causing to be executed and
delivered, to the Mortgagee or to such purchaser or purchasers all such
instruments as may be advisable, in the judgment of the Mortgagee, for such
purpose, and as may be designated in such request.  Any sale or sales made under or by virtue of
this Mortgage, to the extent not prohibited by law, shall operate to divest all
the estate, right, title, interest, property, claim and demand whatsoever,
whether at law or in equity, of the Mortgagor in, to and under the Mortgage
Estate, or any portions thereof so sold, and shall be a perpetual bar both at
law and in equity against the Mortgagor and against any and all persons
claiming or who may claim the same, or any part thereof, by, through or under
the Mortgagor.  The powers and agency
herein granted are coupled with an interest and are irrevocable.

 

(e)           Possession
of Loan Documents Not Necessary.  All
rights of action under the Loan Documents and this Mortgage may be enforced by
the Mortgagee without the possession of the Loan Documents and without the
production thereof at any trial or other proceeding relative thereto.

 

(f)            Power
of Sale.  This Mortgage is on the
STATUTORY CONDITION and upon the further condition of full and seasonable
compliance of the Mortgagor with all of the terms, conditions, covenants and
agreements set forth herein, for any breach of which the Mortgagee and its
successors and assigns shall have the right of foreclosure and any and all
other rights and remedies given to a mortgagee and secured party under the law
of Maine, this Mortgage and any document it secures.  This Mortgage is given primarily for a
business,

 

 

commercial
or agricultural purpose.  Mortgagor,
therefore, agrees that the Mortgagee and its successors and assigns shall have “THE
STATUTORY POWER OF SALE” pursuant to the applicable provisions of
Titles 14 and 33 of the Maine Revised Statutes of 1964, as said
Statutes have been and shall be amended, which POWER is expressly incorporated
herein by reference.  Mortgagor hereby
represents that the Mortgagor is a limited liability company, and the Mortgagor
is not the trustee of a trust.  Such
Statutory Power of Sale shall be in addition to all rights and remedies set
forth herein or available under applicable law.

 

Section 4.03.          Application of Proceeds.

 

(a)           Application
of Proceeds Generally.  The proceeds
of any sale made either under the power of sale hereby given or under a
judgment, order or decree made in any action to foreclose or to enforce this
Mortgage, or of any monies held by the Mortgagee hereunder shall, to the
maximum extent permitted by law, be applied:

 

(i)    first
to the payment of all costs and expenses of such sale, including the Mortgagee’s
reasonable attorneys’ fees and disbursements;

 

(ii)   then to the payment of all
charges, expenses and advances incurred or made by the Mortgagee in order to
protect the Lien and estate of this Mortgage or the security afforded hereby;

 

(iii)  then to the payment in full
of the Obligations, ratably in accordance with the respective amounts then due
and owing or as the Lenders may otherwise agree;

 

and after payment in full of all Obligations any
surplus remaining shall be paid to the Mortgagor or to whomsoever may be
lawfully entitled to receive the same.

 

(b)           Liability
for Deficiencies.  No sale or other
disposition of all or any part of the Mortgage Estate pursuant to Section 4.02
shall be deemed to relieve the Mortgagor of its obligations under the Loan
Agreement or any other Loan Document except to the extent the proceeds thereof
are applied to the payment of such obligations. 
Except as otherwise provided in the Loan Documents, if the proceeds of
sale, collection or other realization of or upon the Mortgage Estate are
insufficient to cover the costs and expenses of such realization and the
payment in full of the Obligations, the Mortgagor shall remain liable for any
deficiency.

 

Section 4.04.          Right to Sue.  The Mortgagee shall have the right from time
to time to sue for any sums required to be paid by the Mortgagor under the
terms of this Mortgage as the same become due, without regard to whether or not
the Obligations shall be, or have become, due and without prejudice to the
right of the Mortgagee thereafter to bring any action or proceeding of
foreclosure or any other action upon the occurrence of any Default existing at
the time such earlier action was commenced.

 

Section 4.05.          Powers of the Mortgagee.  The Mortgagee may at any time or from time to
time (with the agreement of the Mortgagor) alter or modify the same in any way,
or waive any of the terms, covenants or conditions hereof or thereof, in whole
or in part, and may release any portion of the Mortgage Estate or any other
security, and grant such extensions and indulgences in relation to the
Obligations, or release any person liable therefor as
the Mortgagee

 

 

may determine without the
consent of any junior lienor or encumbrancer, without any obligation to give
notice of any kind thereto, without in any manner affecting the priority of the
Lien and estate of this Mortgage on or in any part of the Mortgage Estate, and
without affecting the liability of any other person liable for any of the
Obligations.

 

Section 4.06.          Remedies Cumulative.

 

(a)           Remedies
Cumulative.  No right or remedy
herein conferred upon or reserved to the Mortgagee is intended to be exclusive
of any other right or remedy, and each and every right and remedy shall be
cumulative and in addition to any other right or remedy under this Mortgage, or
under applicable law, whether now or hereafter existing; the failure of the
Mortgagee to insist at any time upon the strict observance or performance of
any of the provisions of this Mortgage or to exercise any right or remedy
provided for herein or under applicable law, shall not impair any such right or
remedy nor be construed as a waiver or relinquishment thereof.

 

(b)           Other
Security.  The Mortgagee shall be
entitled to enforce payment and performance of any of the obligations of the
Mortgagor and to exercise all rights and powers under this Mortgage or under
any Loan Document or any laws now or hereafter in force, notwithstanding that
some or all of the Obligations may now or hereafter be otherwise secured,
whether by mortgage, deed of trust, pledge, Lien, assignment or otherwise;
neither the acceptance of this Mortgage nor its enforcement, whether by court
action or pursuant to the power of sale or other powers herein contained, shall
prejudice or in any manner affect the Mortgagee’s right to realize upon or
enforce any other security now or hereafter held by the Mortgagee, it being
stipulated that the Mortgagee shall be entitled to enforce this Mortgage and
any other security now or hereafter held by the Mortgagee in such order and
manner as the Mortgagee, in its sole discretion, may determine; every power or
remedy given by the Loan Agreement, this Mortgage or any of the other Loan
Documents to the Mortgagee, or to which the Mortgagee is otherwise entitled,
may be exercised, concurrently or independently, from time to time and as often
as may be deemed expedient by the Mortgagee, and the Mortgagee may pursue
inconsistent remedies.

 

 

Section 4.07.          Waiver of Stay, Extension,
Moratorium Laws; Equity of Redemption. 
To the maximum extent permitted by law, the Mortgagor shall not at any
time insist upon, or plead, or in any manner whatever claim or take any benefit
or advantage of any applicable present or future stay, extension or moratorium
law, that may affect observance or performance of the provisions of this
Mortgage; nor claim, take or insist upon any benefit or advantage of any
present or future law providing for the valuation or appraisal of the Mortgage
Estate or any portion thereof prior to any sale or sales thereof that may be
made under or by virtue of Section 4.02; and the Mortgagor, to the extent
that it lawfully may, hereby waives all benefit or advantage of any such law or
laws.  The Mortgagor for itself and all
who may claim under it, hereby waives, to the maximum extent permitted by
applicable law, any and all rights and equities of redemption from sale under
the power of sale created hereunder or from sale under any order or decree of
foreclosure of this Mortgage and (if a Default shall have occurred) all notice
or notices of seizure, and all right to have the Mortgage Estate marshalled
upon any foreclosure hereof.  The
Mortgagee shall not be obligated to pursue or exhaust its rights or remedies as
against any other part of the Mortgage Estate and the Mortgagor hereby waives
any right or claim of right to have the Mortgagee proceed in any particular
order.

 

Section 4.08.          No Waiver of Foreclosure.  Mortgagor agrees for itself and its
successors and assigns that the acceptance, before the expiration of the right
of redemption and after the commencement of foreclosure proceedings of this
Mortgage, of insurance proceeds, eminent domain awards, Rents or anything else
of value to be applied on or to the Obligations by the Mortgagee or the Lenders
or any person or party holding under it shall not constitute a waiver of such
foreclosure, and this agreement by Mortgagor shall be that agreement referred to
in Section 6321 of Title 14 of the Maine Revised Statutes
of 1964 as necessary to prevent such waiver of foreclosure.  This agreement by Mortgagor is intended to
apply to the acceptance and application of any such proceeds, awards, Rents and
other sums or anything else of value whether the same shall be accepted from,
or for the account of, Mortgagor or from any other source whatsoever by the
Mortgagee or any Lender or by any person or party holding under Mortgagee at
any time or times in the future while any of the Obligations shall remain
outstanding.

 

Section 4.09.          Assignment
of Certain Easement Obligations.

 

Any foreclosure of this Mortgage shall constitute an
express assignment from the Mortgagor to the Mortgagee or other party that
acquires the Property pursuant to such foreclosure sale (the “Assignee”)
of the Mortgagor’s obligations under the Easement Deed dated as of October 2,
2008 between Evergreen Wind Power V, LLC, and Maine Electric Power Company and
recorded in the Penobscot County Registry of Deeds in Book 11553, Page 18
and the Use Agreement referenced therein, if any, and such acquisition of the
Property pursuant to such foreclosure shall be deemed to be a written
acceptance of all such assigned obligations by the Assignee.  Furthermore, Assignee shall give notice of
any such acquisition of the Property pursuant to such foreclosure as may be
required pursuant to the instruments identified on the attached Exhibit F.

 

 

ARTICLE 5

 

Miscellaneous

 

Section 5.01.          Release by Mortgagee.  Upon the termination of the Commitments under
and as defined in the Loan Agreement and the payment in full of the
Obligations, the Mortgagee shall release the Lien of this Mortgage, or upon the
request of the Mortgagor, and at the Mortgagor’s expense, assign this Mortgage
without recourse to the Mortgagor’s designee, or to the person or persons
legally entitled thereto, by an instrument duly acknowledged in form for
recording.  Upon any transfer by
Mortgagor of title to all or any portion of the Mortgage Estate, which transfer
is not prohibited by the Loan Documents, the Mortgagee shall, upon the request
of the Mortgagor, execute and deliver a release (in recordable form) of the
transferred property from the Lien of this Mortgage.  If all of the Mortgage Estate is so transferred,
the Mortgagee shall completely release and discharge this Mortgage.

 

Section 5.02.          Notices.  All notices, demands, consents, requests or
other communications (collectively, “notices”) that are permitted or
required to be given by any party to the other hereunder shall be in writing
and given in the manner specified in the Loan Agreement.

 

Section 5.03.          Amendments; Waivers; Etc.  This Mortgage cannot be modified, changed or
discharged except by an agreement in writing, duly acknowledged in form for
recording, signed by the Mortgagor and the Mortgagee with the consent of the
Lenders as provided in the Loan Agreement. 
For purposes hereof, a statement by the Mortgagee in any modification or
supplement to this Mortgage to the effect that such modification or supplement
has been consented to by the Lenders as provided in the Loan Agreement shall be
conclusive evidence of such consent and it shall not be necessary for a copy of
such consent to be recorded with such modification or supplement as a condition
to such modification or supplement being recorded in the appropriate real
estate records.

 

Section 5.04.          Successors and Assigns.  This Mortgage applies to, inures to the
benefit of and binds the Mortgagor and the Mortgagee and their respective
successors and assigns and shall run with the Property.

 

Section 5.05.          Captions.  The captions or headings at the beginning of
Articles, Sections and paragraphs hereof are for convenience of reference and
are not a part of this Mortgage.

 

Section 5.06.          Severability.  If any term or provision of this Mortgage or
the application thereof to any person or circumstance shall to any extent be
invalid or unenforceable, the remainder of this Mortgage, or the application of
such term or provision to persons or circumstances other than those as to which
it is invalid or unenforceable, shall not be affected thereby, and each term
and provision of this Mortgage shall be valid and enforceable to the maximum
extent permitted by law.  If any portion
of the Obligations shall for any reason not be secured by a valid and
enforceable Lien upon any part of the Mortgage Estate, then any payments made
in respect of the Obligations (whether voluntary or under foreclosure or other
enforcement action or procedure or otherwise) shall, for purposes of this
Mortgage (except to the 

 

 

extent otherwise required by
applicable law) be deemed to be made (i) first, in respect of the portion
of the Obligations not secured by the Lien of this Mortgage, (ii) second,
in respect of the portion of the Obligations secured by the Lien of this
Mortgage, but which Lien is on less than all of the Mortgage Estate, and (iii) last,
to the portion of the Obligations secured by the Lien of this Mortgage, and
which Lien is on all of the Mortgage Estate.

 

Section 5.07.          Maximum Amount.  Notwithstanding anything contained in this
Mortgage to the contrary, the maximum amount of principal indebtedness secured
by this Mortgage at the time of execution hereof or which under any contingency
may become secured by this Mortgage is $116,700,000 plus (a) taxes,
charges or assessments which may be imposed by law upon the Mortgage Estate; (b) premiums
on insurance policies covering the Mortgage Estate; and (c) expenses
incurred in upholding the lien of this Mortgage, including, but not limited to (i) the
expenses of any litigation to prosecute or defend the rights and liens created
by this Mortgage; (ii) any amount, cost or charges to which the Mortgagee
becomes subrogated, upon payment, whether under recognized principles of law or
equity, or under express statutory authority after a Default and (iii) interest
at the rate set forth in the Loan Documents.

 

Section 5.08.          Open End Mortgage.  As stated in the recitals of this Mortgage,
the Obligations include both loans now existing under the Loan Agreement and
future loans that may be advanced thereunder and Mortgagor’s obligations
pursuant to the Security Agreement. 
Pursuant to Maine’s Open-End Mortgage statute, Title 33 § 505 of
the Maine Revised Statutes of 1964, as amended (herein called the “Open-End
Mortgage Statute”), the aggregate principal amount of all debts or obligations
secured hereby and remaining unpaid including “future advances” but not
including “contingent obligations” or “protective advances” as such terms are
defined in the Open-End Mortgage Statute, shall not at any time exceed
$116,700,000, and the Mortgagor’s obligations under the Security Agreement
shall be “contingent obligations” as defined in the Open-End Mortgage Statute
and the maximum amount of such contingent obligations shall not at any time
exceed $116,700,000 (collectively, the “Maximum Amounts”); provided,
further, that nothing herein contained shall limit the amount secured by this
Mortgage if such amount is increased by “protective advances” as defined in the
Open-End Mortgage Statute.  All of the
Obligations that are “future advances,” “contingent obligations” or “protective
advances” as such terms are defined in the Open-End Mortgage Statute shall be
secured by this Mortgage with the record priority set forth in the Open-End
Mortgage Statute.  The Maximum Amounts
shall only pertain to the record priority of the amount secured hereby pursuant
to the Open-End Mortgage Statute and do not otherwise limit the amount of total
obligations of Mortgagor secured hereby or limit the liability of Mortgagor to
the Mortgagee or the Secured Parties for such total obligations.

 

Section 5.09.          Written Trust Agreement.  The provisions of the Loan Agreement relating
to the Security Agent and its relationship to the Secured Parties are intended
to constitute a written trust agreement for purposes of Title 33 § 851 of
the Maine Revised Statutes of 1964, as amended.

 

Section 5.10.          Release of Mortgage.  Pursuant to Title 33 § 551 of the Maine
Revised Statutes of 1964, as amended, Mortgagee shall, within 60 days
after full performance of the conditions of this Mortgage, record a valid and
complete release of this Mortgage together

 

 

with any instrument of
assignment necessary to establish the Mortgagee’s record ownership of this
Mortgage.

 

 

IN WITNESS WHEREOF, this Mortgage has been duly
executed by the Mortgagor as of the day and year first above written.

 

	
   

  	
  EVERGREEN WIND POWER V,
  LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

	
  COMMONWEALTH OF MASSACHUSETTS

  	
  )

  
	
   

  	
  ) ss.:

  
	
  COUNTY OF MIDDLESEX

  	
  )

  

 

On this      day of
                ,
2009 before me, the undersigned, a Notary Public in and for said State,
personally appeared                             ,
personally known to me or proved to me on the basis of satisfactory evidence to
be the individual(s) whose name(s) is subscribed to the within
instrument and acknowledged to me that s/he executed the same in her/his
capacity, and that by her/his, signature on the instrument, the individual(s) or
the person(s) upon behalf of which the individual acted, executed the
instrument.

 

	
   

  	
   

  
	
  Notary Public

  	
   

  

 

Exhibit E-1

 

1

 

EXHIBIT A

 

Deeds Conveying
Land to Mortgagor

 

1.               Deed dated as of April 28, 2008
between Evergreen Wind Power V, LLC, and Donald Morin and Elizabeth A. Morin
and recorded in the Penobscot County Registry of Deeds in Book 11379, Page 121.

 

2.               Deed dated as of May 22, 2008
between Evergreen Wind Power V, LLC, and Huber Timer, LLC and recorded in the
Penobscot County Registry of Deeds in Book 11403, Page 237.

 

3.     Deed dated
as of May 12, 2008 between Evergreen Wind Power V, LLC, and Prentiss &
Carlisle Co. and recorded in the Penobscot County Registry of Deeds in
Book 11424, Page 100.

 

4.     Deed dated
as of June 14, 2007 between Evergreen Wind Power V, LLC, and Ricky Deloge, Sr.
and recorded in the Penobscot County Registry of Deeds in Book 11012, Page 347.

 

5.     Deed dated
as of March 26, 2008 between Evergreen Wind Power V, LLC, and Harlan H.
Whitney and Pauline D. Whitney and recorded in the Penobscot County Registry of
Deeds in Book 11338. Page 154.

 

6.     Deed dated
as of June 24, 2008 between Evergreen Wind Power V, LLC, and Harlan H.
Whitney and Pauline D. Whitney and recorded in the Penobscot County Registry of
Deeds in Book 11444, Page 114.

 

7.     Deed dated
as of May 12, 2008 between Evergreen Wind Power V, LLC, and Prentiss &
Carlisle Co. and recorded in the Penobscot County Registry of Deeds in
Book 11424, Page 116.

 

8.     Deed dated
as of June 24, 2008 between Evergreen Wind Power V, LLC, and Donald L.
Whitney and recorded in the Penobscot County Registry of Deeds in Book 11444, Page 112.

 

9.     Deed dated
as of March, 11 2008 between Evergreen Wind Power V, LLC, and Donald L. Whitney
and recorded in the Penobscot County Registry of Deeds in Book 11322, Page 275.  Said deed being corrected by document dated June 24,
2008 and recorded in said Registry of Deeds in Book 11444, Page 110.

 

10.   Deed dated
as of March 22, 2008 between Evergreen Wind Power V, LLC, and John R.
Whitney and Deborah M. Whitney and recorded in the Penobscot County Registry of
Deeds in Book 11332, Page 340.

 

11.   Deed dated
as of May 14, 2008 between Evergreen Wind Power V, LLC, and Robert Harmon, Jr.
and recorded in the Penobscot County Registry of Deeds in Book 11392, Page 109.

 

 

12.   Deed dated
as of April 10, 2008 between Evergreen Wind Power V, LLC, and Andrew G.
Edwards and recorded in the Penobscot County Registry of Deeds in Book 11354, Page 291.

 

13.   Deed dated
as of March 13, 2008 between Evergreen Wind Power V, LLC, and Gary A.
Fleming and Cynthia Fleming and recorded in the Penobscot County Registry of
Deeds in Book 11330, Page 56.

 

14.   Deed dated
as of October 24, 2007 between Evergreen Wind Power V, LLC, and H C Haynes, Inc.
and recorded in the Penobscot County Registry of Deeds in Book 11226, Page 162.

 

15.   Deed dated
as of October 30, 2004 between Evergreen Wind Power V, LLC, and Henry D.
Provencher and recorded in the Penobscot County Registry of Deeds in Book
11187, Page 311.

 

16.   Deed dated
as of May 7, 2008 between Evergreen Wind Power V, LLC, and Prentiss &
Carlisle Co. and recorded in the Penobscot County Registry of Deeds in
Book 11386, Page 8.

 

17.   Deed dated
as of May 9, 2008 between Evergreen Wind Power V, LLC, and Lakeville
Shores, Inc. and recorded in the Penobscot County Registry of Deeds in
Book 11392, Page 76.

 

18.   Deed dated
as of April 21, 2008 between Evergreen Wind Power V, LLC, and Lakeville
Shores, Inc. and recorded in the Penobscot County Registry of Deeds in
Book 11367, Page 185.

 

19.   Deed dated
as of March 11, 2008 between Evergreen Wind Power V, LLC, and Jamie Lee
Steeves and recorded in the Penobscot County Registry of Deeds in Book 11320, Page 125.

 

20.   Deed dated
as of November 6, 2007 between Evergreen Wind Power V, LLC, and Marjorie
White Ghost and recorded in the Penobscot County Registry of Deeds in Book
11198, Page 46.

 

21.   Deed dated
as of May 12, 2008 between Evergreen Wind Power V, LLC, and Prentiss &
Carlisle Co., Inc. and McCrillis Timberlands, LLC and recorded in the
Penobscot County Registry of Deeds in Book 11393, Page 96.

 

22.         Deed dated as of March 18, 2008
between Evergreen Wind Power V, LLC, and Thomas E. Linscott and Karen B.
Linscott and recorded in the Penobscot County Registry of Deeds in Book 11329, Page 273.

 

23.         Deed dated as of July 3, 2008
between Evergreen Wind Power V, LLC, and J. Robert Hudson and recorded in
the Penobscot County Registry of Deeds in Book 11474, Page 343.

 

 

EXHIBIT B

 

Instruments
Conveying Easement Rights to Mortgagor

 

1.               Easement dated October 10, 2008
between Evergreen Wind Power V, LLC, and Bangor Hydro Electric Company and
recorded in the Penobscot County Registry of Deeds in Book 11563, Page 77.

 

2.               Easement dated as of October 2, 2008
between Evergreen Wind Power V, LLC, and Maine Electric Power Company and
recorded in the Penobscot County Registry of Deeds in Book 11553, Page 18.

 

3.               Easement dated as of April 21, 2008
between Evergreen Wind Power V, LLC, and Lakeville Shores, Inc. and
recorded in the Penobscot County Registry of Deeds in Book 11367, Page 187.

 

4.               Easement dated as of April 4, 2008
between Evergreen Wind Power V, LLC, and Loren A. Hale and Joyce M. Hale and
recorded in the Penobscot County Registry of Deeds in Book 11351, Page 117.

 

5.     Easement
dated as of March 13, 2008 between Evergreen Wind Power V, LLC, and Roscoe
Tash and recorded in the Penobscot County Registry of Deeds in Book 11327,
Page 236.

 

6.     Easement
dated as of August 2, 2007 between Evergreen Wind Power V, LLC, and Elgin H.
Turner and recorded in the Penobscot County Registry of Deeds in
Book 11140, Page 1.

 

7.     Easement
dated as of May 30, 2008 between Evergreen Wind Power V, LLC, and Edwin
Tash, Sr. et al and recorded in the Penobscot County Registry of Deeds in
Book 11418, Page 84.

 

8.     Easement
dated April 15, 2008 between Evergreen Wind Power V, LLC, and The Gerrity
Family Limited Partnership and recorded in the Penobscot County Registry of
Deeds in Book 11360, Page 172.

 

9.     Easement
dated as of March 4, 2008 between Evergreen Wind Power V, LLC, and Clayton
J. McCarthy and recorded in the Penobscot County Registry of Deeds in Book
11317, Page 56.

 

10.   Easement
dated as of March 28, 2008 between Evergreen Wind Power V, LLC, and Elaine
Reardon and recorded in the Penobscot County Registry of Deeds in Book 11360, Page 181.

 

11.   Easement
dated as of February 28, 2008 between Evergreen Wind Power V, LLC, and
Albert S. Ring and Linda M. Ring and recorded in the Penobscot County Registry
of Deeds in Book 11348, Page 235.

 

 

12.   Easement
dated as of May 9, 2008 between Evergreen Wind Power V, LLC, and H C
Haynes, Inc. and recorded in the Penobscot County Register of Deeds in
Book 11392, Page 72.

 

13.   Easement
dated as of March 2, 2008 between Evergreen Wind Power V, LLC, and Edward
F. Sargent, Jr. and recorded in the Penobscot County Registry of Deeds in
Book 11348, Page 239.

 

14.   Easement
dated as of February 25, 2008 between Evergreen Wind Power V, LLC, and
Edward Whitney, III, AnneMarie B. Whitney, Scott E. Whitney, Mark J. Whitney
and recorded in the Penobscot County Registry of Deeds in Book 11329, Page 275.

 

15.   Easement
dated as of March 6, 2008 between Evergreen Wind Power V, LLC, and Shepard
V. Sloane-Trustee and recorded in the Penobscot County Registry of Deeds in
Book 11317, Page 46.

 

16.   Easement
dated as of March 14, 2008 between Evergreen Wind Power V, LLC, and Royl
M. Schoonover and Vanessa V. Schoonover and recorded in the Penobscot County
Registry of Deeds in Book 11327, Page 239.

 

17.   Easement
dated as of May 9, 2008 between Evergreen Wind Power V, LLC, and Lakeville
Shores, Inc. and recorded in the Penobscot County Registry of Deeds in
Book 11392, Page 68.

 

18.   Easement
dated as of March 4, 2008 between Evergreen Wind Power V, LLC, and Clayton
J. McCarthy and recorded in the Penobscot County Registry of Deeds in Book
11317, Page 51.

 

19.   Easement
dated as of March 4, 2008 between Evergreen Wind Power V, LLC, and Hayden
P. McCarthy and recorded in the Penobscot County Registry of Deeds in Book
11317, Page 60.  Said easement being
corrected by document dated June 26, 2008 and recorded in said Registry of
Deeds in Book 11450, Page 2.

 

20.   Easement
dated as of March 26, 2008 between Evergreen Wind Power V, LLC, and
Northern Timbers, Inc. and recorded in the Penobscot County Registry of
Deeds in Book 11338, Page 146.

 

21.   Easement
dated as of February 22, 2008 between Evergreen Wind Power V, LLC, and C N
Brown Company and recorded in the Penobscot County Registry of Deeds in Book
11301, Page 268.

 

 

22.         Easement dated as of January 17, 2008 between
Evergreen Wind Power V, LLC, and Aroostook & Bangor Resources and
recorded in the Penobscot County Registry of Deeds in Book 11275, Page 109.

 

23.         Easement dated as of May 2, 2008 between
Evergreen Wind Power V, LLC, and Richard A. Delaite and David W. Delaite and
recorded in the Penobscot County Registry of Deeds in Book 11384, Page 320.

 

24.         Easement dated as of March 11, 2008 between
Evergreen Wind Power V, LLC, and Bion Tolman and recorded in the Penobscot
County Registry of Deeds in Book 11322, Page 280.

 

25.         Easement dated as of June 10, 2008 between
Evergreen Wind Power V, LLC, and Jeffrey B. Vicaire and Rhonda J. Vicaire and
recorded in the Penobscot County Registry of Deeds in Book 11426, Page 317.

 

26.         Easement dated as of March 6, 2007 between
Evergreen Wind Power V, LLC, and Joanne Adams and recorded in the Penobscot
County Registry of Deeds in Book 11317, Page 64.

 

27.         Easement dated 2008 between Evergreen Wind Power V,
LLC, and John M. Kyler and Joan E. H. Kyler and recorded in the Penobscot
County Registry of Deeds in Book 11450, Page 21.

 

28.         Easement dated as of March 6, 2008 between
Evergreen Wind Power V, LLC, and Melvin L. Vicaire and Lynn Vicaire and
recorded in the Penobscot County Registry of Deeds in Book 11317, Page 68.

 

29.         Easement dated as of February 21, 2008 between
Evergreen Wind Power V, LLC, and Thomas B. Kates, Jr. and Walter W. Hughes
and recorded in the Penobscot County Registry of Deeds in Book 11301, Page 261.

 

30.         Easement dated as of February 25, 2008 between
Evergreen Wind Power V, LLC, and William Ziehl and Rhonda Ziehl and recorded in
the Penobscot County Registry of Deeds in Book 11311, Page 83.

 

31.         Easement recorded March 25, 2008 between
Evergreen Wind Power V, LLC, and Lucy Campbell, Susan Fort, David B. Campbell,
Sheila Jean, Alan Bruce, and Linda Lucian and recorded in the Penobscot County
Registry of Deeds in Book 11333, Page 117.

 

 

32.         Easement between Evergreen Wind Power V, LLC, and
Penobscot Forest, LLC and recorded in the Penobscot County Registry of Deeds in
Book 11473, Page 276.

 

33.         Easement dated as of April 21, 2008 between
Evergreen Wind Power V, LLC, and Lakeville Shores, Inc. and recorded in
the Penobscot County Registry of Deeds in Book 11367, Page 191.

 

34.         Easement dated as of June 24, 2008 between
Evergreen Wind Power V, LLC, and John Hagemeyer and Sylvia Hagemeyer and
recorded in the Penobscot County Registry of Deeds in Book 11444, Page 105.

 

35.         Assignment and Assumption dated as of June 6, 2008
between Evergreen Wind Power V, LLC, and Eastern Maine Electric Cooperative, Inc.
and recorded in the Penobscot County Registry of Deeds in Book 11420, Page 179.

 

36.         Easement dated as of June 20, 2008 between
Evergreen Wind Power V, LLC, and Naturals Rod & Gun Club and recorded
in the Penobscot County Registry of Deeds in Book 11450, Page 6.

 

37.         Easement dated as of September 19, 2008 between
Evergreen Wind Power V, LLC, and State of Maine, Inland Fisheries and Wildlife
and recorded in the Penobscot County Registry of Deeds in Book 11537, Page 290.

 

38.         Easement dated as of May 9, 2008 between
Evergreen Wind Power V, LLC, and Haynes Timberland, Inc. and recorded in
the Penobscot County Registry of Deeds in Book 11392, Page 94.

 

39.         Easement dated as of April 17, 2008 between
Evergreen Wind Power V, LLC, and Charles Alferes and Ethel Alferes-Trustees and
recorded in the Penobscot County Registry of Deeds in Book 11367, Page 205.

 

40.         Easement dated as of May 9, 2008 between
Evergreen Wind Power V, LLC, and Haynes Timberland, Inc. and recorded in
the Penobscot County Registry of Deeds in Book 11392, Page 86.

 

41.         Easement dated as of May 9, 2008 between
Evergreen Wind Power V, LLC, and Haynes Timberland, Inc. and recorded in
the Penobscot County Registry of Deeds in Book 11392, Page 90.

 

 

42.         Easement dated as of May 9, 2008 between
Evergreen Wind Power V, LLC, and Ginger Maxwell and recorded in the Penobscot
County Registry of Deeds in Book 11392, Page 78, as corrected by
Corrective Easement from Ginger Maxwell dated November 25, 2009 and
recorded at said Registry in Book 11987, Page 189.

 

43.         Easement dated as of July 31, 2008 between
Evergreen Wind Power V, LLC, and John A. Dudley, III and Debra Dudley and
recorded in the Penobscot County Registry of Deeds in Book 11486, Page 2.

 

44.         Easement dated as of July 15, 2008 between
Evergreen Wind Power V, LLC, and John E. Osgood and Susan Osgood and recorded
in the Penobscot County Registry of Deeds in Book 11465, Page 80.

 

45.         Easement dated as of March 18, 2008 between
Evergreen Wind Power V, LLC, and Kevin R. Tozier and recorded in the Penobscot
County Registry of Deeds in Book 11329, Page 278.

 

46.         Easement dated as of May 12, 2008 between
Evergreen Wind Power V, LLC, and Prentiss & Carlisle Company and McCrillis
Timberlands, LLC and recorded in the Penobscot County Registry of Deeds in Book
11392, Page 103.

 

47.         Easement dated as of February 21, 2008 between
Evergreen Wind Power V, LLC, and Delia M. Parker and recorded in the Penobscot
County Registry of Deeds in Book 11301, Page 264.

 

48.         Easement dated as of March 10, 2008 between
Evergreen Wind Power V, LLC, and Junior L. Smith and Christine C. Goldsmith and
recorded in the Penobscot County Registry of Deeds in Book 11322, Page 277.

 

49.         Easement dated as of May 9, 2008 between
Evergreen Wind Power V, LLC, and Estate of Herbert Haynes, by Personal
Representative and recorded in the Penobscot County Registry of Deeds in Book
11392, Page 82.

 

50.         Easement dated as of January 15, 2008 between
Evergreen Wind Power V, LLC, and Susan Claerbout and Kenneth Claerbout and
recorded in the Penobscot County Registry of Deeds in Book 11284, Page 312.

 

51.         Easement dated as of April 21, 2008 between
Evergreen Wind Power V, LLC, and Herbert C. 
Haynes, Jr. and recorded in the Penobscot County Registry of Deeds
in Book 11367, Page 201.

 

 

52.         Easement dated as of April 21, 2008 between
Evergreen Wind Power V, LLC, and Lakeville Shores, Inc. and recorded in
the Penobscot County Registry of Deeds in Book 11367, Page 196.

 

53.         Easement dated as of February 15, 2008 between
Evergreen Wind Power V, LLC, and Gardner Land Company, Inc. and recorded
in the Penobscot County Registry of Deeds in Book 11329, Page 282.

 

54.         Easement dated as of March 21, 2008 between
Evergreen Wind Power V, LLC, and Dennis Gould and Robert Yorks and recorded in
the Penobscot County Registry of Deeds in Book 11332, Page 337.

 

55.         Easement dated as of March 20, 2008 between
Evergreen Wind Power V, LLC, and Eileen Marie Beaulieu and recorded in the
Penobscot County Registry of Deeds in Book 11332, Page 334.

 

56.         Easement dated as of August 28, 2008 between
Evergreen Wind Power V, LLC, and Louis M. Coiro and Patricia R. Joyce Coiro and
recorded in the Penobscot County Registry of Deeds in Book 11531, Page 217.

 

57.         Easement dated as of March 26, 2008 between
Evergreen Wind Power V, LLC, and Russell Brown and recorded in the Penobscot
County Registry of Deeds in Book 11362, Page 184.

 

58.         Easement rights reserved in a Deed dated as of March 24,
2008 between Evergreen Wind Power V, LLC, and Louis M. Coiro and recorded in
the Penobscot County Registry of Deeds in Book 11531, Page 220.

 

59.         Grant of Easements dated as of June 12, 2009
between Lakeville Shores, Inc. and Evergreen Wind Power V, LLC, recorded
in the Washington County Registry of Deeds in Book 3543, Page 223.

 

 

EXHIBIT C

 

Crossing Agreements

 

1.               Crossing Easement Agreement between Evergreen Wind
Power V, LLC and Bangor Hydro Electric Company dated October 10, 2008 and
recorded in the Penobscot County Registry of Deeds in Book 11563, Page 59.

 

2.               Transmission Line Crossing Area Consent and Agreement
between Evergreen Wind Power V, LLC and Bangor Hydro Electric Company dated October 10,
2008 and recorded in the Penobscot County Registry of Deeds in Book 11563, Page 41.

 

3.               Overhead Wire Agreement dated May 1, 2008 between
Evergreen Wind Power V, LLC, and Eastern Maine Railway Company and recorded in
the Penobscot County Registry of Deeds in Book 11478, Page 169.

 

4.               Transmission Line Crossing Area Consent and Agreement
between Evergreen Wind Power V, LLC, and Bangor Hydro Electric Company dated October 10,
2008 and recorded in the Penobscot County Registry of Deeds in Book 11563, Page 37.

 

5.               Overhead Wire Agreement dated May 1, 2008 between
Evergreen Wind Power V, LLC, and Eastern Maine Railway Company and recorded in
the Penobscot County Registry of Deeds in Book 11478, Page 166.

 

6.               Overhead Wire Agreement dated May 15, 2008
between Evergreen Wind Power V, LLC, and Maine Central Railroad Company and
recorded in the Penobscot County Registry of Deeds in Book 11414, Page 332.

 

7.               Crossing Agreement dated June 6, 2008 between
Evergreen Wind Power V, LLC, and Eastern Maine Electric Cooperative, Inc.
and recorded in the Penobscot County Registry of Deeds in Book 11420, Page 198.

 

 

EXHIBIT D

 

Access Easements

 

1.               Easement dated July 16, 2008 between Evergreen
Wind Power V, LLC and John R. Whitney and recorded in the Penobscot County
Registry of Deeds in Book 11467, Page 254.

 

2.               Easement dated May 12, 2008 between Evergreen
Wind Power V, LLC, and Prentiss & Carlisle Co. and recorded in the
Penobscot County Register of Deeds in Book 11392, Page 98.

 

3.               Easement dated May 2, 2008 between Evergreen Wind
Power V, LLC, and Richard A. Delaite and recorded in the Penobscot County
Register of Deeds in Book 11384, Page 323.

 

 

EXHIBIT E

 

Permits

 

1.               Department of Environmental Protection Site Order
dated March 18, 2008 and filed in the Penobscot County Registry of Deeds
in Book 11345, Page 249.

 

2.               State of Maine Utility Location Permits for multiple
crossings all dated February 7, 2008 (Maine DOT Permits 51818, 51814,
51816, 51824, and 51820.

 

3.               Town of Chester Utility Location Permit for crossing
the Pea Ridge Road.

 

4.               Town of Woodville Utility Location Permit dated May 12,
2008 for crossing the Butterfield Ridge Road and the River Road.

 

5.               Town of Mattawamkeag Utility Location Permit dated May 22,
2008 for crossing the River Road.

 

6.               Carroll Plantation Utility Location Permit dated April 28,
2008 for crossing in North Road.

 

 

EXHIBIT F

 

Notice Provisions

 

1.               Easement dated October 10, 2008 between Evergreen
Wind Power V, LLC, and Bangor Hydro Electric Company and recorded in the
Penobscot County Registry of Deeds in Book 11563, Page 77.

 

2.               Overhead Wire Agreement dated May 1, 2008 between
Evergreen Wind Power V, LLC, and Eastern Maine Railway Company and recorded in
the Penobscot County Registry of Deeds in Book 11478, Page 169.  .

 

3.               Overhead Wire Agreement dated May 1, 2008 between
Evergreen Wind Power V, LLC, and Eastern Maine Railway Company and recorded in
the Penobscot County Registry of Deeds in Book 11478, Page 166.

 

4.               Overhead Wire Agreement dated May 15, 2008
between Evergreen Wind Power V, LLC, and Maine Central Railroad Company and
recorded in the Penobscot County Registry of Deeds in Book 11414, Page 332.

 

5.               Easement between Evergreen Wind Power V, LLC, and
Penobscot Forest, LLC and recorded in the Penobscot County Registry of Deeds in
Book 11473, Page 276.

 

6.               Easement dated as of June 20, 2008 between
Evergreen Wind Power V, LLC, and Naturals Rod & Gun Club and recorded
in the Penobscot County Registry of Deeds in Book 11450, Page 6.

 

 

EXECUTION FORM

 

EXHIBIT
E-2

to
Financing Agreement

 

FORM OF
BORROWER PLEDGE AND SECURITY AGREEMENT

 

(See
Tab      )

 

 

 

 

PLEDGE AND SECURITY AGREEMENT

 

among

 

STETSON HOLDINGS, LLC,

as Borrower

 

and

 

EVERGREEN WIND POWER V, LLC

 

and

 

STETSON WIND II, LLC,

 

each as a Project Company

 

and

 

BNP PARIBAS]

as Security Agent

 

Dated as of December [    ], 2009

 

 

 

 

TABLE OF CONTENTS

 

	
  Section 1.

  	
  Definitions

  	
  2

  
	
  Section 2.

  	
  Pledge
  and Grant of Security Interest

  	
  2

  
	
  Section 3.

  	
  Delivery
  of Collateral

  	
  15

  
	
  Section 4.

  	
  Obligations
  Secured

  	
  15

  
	
  Section 5.

  	
  Use of
  Collateral

  	
  15

  
	
  Section 6.

  	
  Remedies

  	
  15

  
	
  Section 7.

  	
  Remedies
  Cumulative; Delay Not Waiver

  	
  18

  
	
  Section 8.

  	
  Representations
  and Warranties of Borrower

  	
  19

  
	
  Section 9.

  	
  Covenants
  of Borrower

  	
  22

  
	
  Section 10.

  	
  Voting
  Rights

  	
  24

  
	
  Section 11.

  	
  Certain
  Consents and Waivers

  	
  24

  
	
  Section 12.

  	
  Project
  Companies’ Consent and Covenant

  	
  25

  
	
  Section 13.

  	
  Attorney-in-Fact

  	
  26

  
	
  Section 14.

  	
  Perfection;
  Further Assurances

  	
  29

  
	
  Section 15.

  	
  Notices

  	
  30

  
	
  Section 16.

  	
  Continuing
  Assignment and Security Interest; Transfer of Notes

  	
  30

  
	
  Section 17.

  	
  Termination
  of Security Interest

  	
  31

  
	
  Section 18.

  	
  Severability

  	
  31

  
	
  Section 19.

  	
  Successors
  and Assigns

  	
  31

  
	
  Section 20.

  	
  No
  Amendment, Modification

  	
  31

  
	
  Section 21.

  	
  Headings

  	
  32

  
	
  Section 22.

  	
  Liability

  	
  32

  
	
  Section 23.

  	
  References
  to Other Documents

  	
  32

  
	
  Section 24.

  	
  Governing
  Law

  	
  32

  
	
  Section 25.

  	
  Execution
  in Counterparts

  	
  32

  
	
  Section 26.

  	
  Reinstatement

  	
  32

  
	
  Section 27.

  	
  Third
  Party Rights

  	
  33

  
	
  Section 28.

  	
  Conflict
  Among Agreements

  	
  33

  
	
  Section 29.

  	
  Waiver of Jury Trial

  	
  33

  

 

i

 

PLEDGE
AND SECURITY AGREEMENT

 

This PLEDGE AND SECURITY AGREEMENT (as amended, amended and restated,
supplemented or otherwise modified from time to time, this “Agreement”),
is entered into as of December [    ], 2009, by and
among Stetson Holdings, LLC, a Delaware limited liability company (“Borrower”),
Evergreen Wind Power V, LLC, a Delaware limited liability company and Stetson
Wind II, LLC, a Delaware limited liability company (each a “Project Company”,
and collectively “Project Companies”), and BNP Paribas, as Security Agent (together
with its successors and assigns in such capacity, “Security Agent”) for
each of the Secured Parties.

 

RECITALS

 

A.            Borrower has entered into that certain Financing
Agreement, dated as of the date hereof (as amended, amended and restated,
supplemented or otherwise modified from time to time, the “Financing
Agreement”), among Borrower, the financial institutions from time to time
parties thereto (collectively, “Lenders”), the Security Agent, BNP
Paribas, as joint Lead Arranger, Joint Bookrunner, Administrative Agent for the
Lenders, and Issuing Bank and HSH Nordbank AG, New York Branch, as Joint Lead
Arranger, Joint Bookrunner and as Co-Syndication Agent, pursuant to which the
Lenders and the Issuing Bank have agreed to extend credit to Borrower in the
amounts specified and on the terms and subject to the conditions set forth
therein.

 

B.            Borrower is the sole member of each Project Company and
owns one hundred percent (100%) of all issued and outstanding membership
interests in each Project Company (collectively, the “Membership Interest”),
with respect to Evergreen Wind Power V, LLC, pursuant to that certain First
Amended and Restated Limited Liability Company Agreement of Evergreen Wind
Power  V, LLC, dated as of April 2,
2007, as amended by that certain First Amendment to First Amended and Restated
Limited Liability Company Agreement of Evergreen Wind Power V, LLC, dated as of
December 11, 2008, as modified by that certain Membership Interest
Transfer Agreement of Evergreen Wind Power V, LLC, dated as of July 17,
2009, as further amended by that certain Second Amendment to First Amended and
Restated Limited Liability Company Agreement of Evergreen Wind Power V, LLC,
dated as of July 17, 2009, and as further amended by that certain Third
Amendment to First Amended and Restated Limited Liability Company Agreement of
Evergreen Wind Power V, LLC, dated as of the date hereof; and with respect to
Stetson Wind II, LLC, pursuant to that certain Limited Liability Company
Agreement of Stetson Wind II, LLC, dated July 3, 2007, as amended by that
certain First Amendment to Limited Liability Company Agreement of Stetson Wind
II, LLC, dated December 11, 2008, and as further amended by that certain
Second Amendment to Limited Liability Company Agreement of Stetson Wind II,
LLC, dated as of the date hereof (as amended, amended and restated,
supplemented or otherwise modified from time to time, each an “LLC Agreement”,
and collectively, the “LLC Agreements”).

 

1

 

C.            Borrower will gain an economic benefit from the extension
of credit to be made under the Financing Agreement and desires that the Issuing
Bank and the Lenders enter into the Financing Agreement.

 

D.            It is a condition precedent to the effectiveness of the
Financing Agreement that the parties hereto shall have executed and delivered
this Agreement.

 

AGREEMENT

 

NOW THEREFORE, in consideration of the foregoing premises, and in order
to induce the Lenders and the Issuing Bank to enter into the Financing
Agreement and to make the Loans and the extension of credit contemplated by the
Financing Agreement, and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, Borrower and each Project
Company hereby agree with Security Agent, for the benefit of Security Agent and
the Secured Parties, as follows:

 

Section 1. Definitions.

 

Unless otherwise defined herein, all capitalized terms
used in this Agreement (including the preamble and recitals), shall have the
meanings provided in the Financing Agreement, or, if not defined therein, shall
have the meanings provided in the Uniform Commercial Code, as the same from
time to time shall be in effect in the State of New York (the “UCC”); provided,
however, in the event that, by reason of mandatory provisions of law,
any or all of the perfection or priority of the security interest in any
Collateral (as defined below) is governed by the Uniform Commercial Code as in
effect in a jurisdiction other than the State of New York, the term “UCC” shall
mean the Uniform Commercial Code as in effect in such other jurisdiction for
purposes of the provisions hereof relating to such perfection or priority and
for purposes of definitions related to such provisions.  The Rules of Interpretation contained in
Exhibit A to the Financing Agreement shall apply to this Agreement.

 

(a)                                  Certain Uniform Commercial Code Terms.  As used herein, the terms “Accession”,
“Account”, “As-Extracted Collateral”, “Chattel Paper”, “Commodity
Account”, “Commodity Contract”, “Deposit Account”, “Commercial
Tort Claim”, “Document”, “Electronic Chattel Paper”, “Equipment”,
“Fixture”, “General Intangible”, “Goods”, “Instrument”,
“Inventory”, “Investment Property”, “Letter-of-Credit Right”,
“Motor Vehicle”, “Payment Intangible”, “Proceeds”, “Promissory
Note” and “Software” have the respective meanings set forth in Article 9
of the UCC, and the terms “Certificated Security”, “Financial Asset”,
“Securities Account”, “Securities Intermediary”, “Security”,
“Security Certificate”, “Security Entitlement” and “Software”
have the respective meanings set forth in Article 8 of the UCC.

 

Section 2. Pledge and Grant of Security Interest.

 

(a)                                  Granting Clause.  To secure the timely payment and performance
of the Obligations, Borrower does hereby assign, grant and pledge to Security 

 

2

 

Agent,
for the benefit of the Secured Parties, a continuing security interest in all
estate, right, title and interest of Borrower in, to and under all assets of
Borrower, whether now owned or hereafter existing or acquired, including all
the estate, right, title and interest of 
Borrower in, to and under the following (collectively, the “Collateral”):

 

(i)                                             each
of the agreements and documents listed on Exhibit A, in each case,
as amended, amended and restated, supplemented or otherwise modified from time
to time (each, an “Assigned Agreement” and collectively, the “Assigned
Agreements”) and all of Borrower’s rights thereunder;

 

(ii)                                          all
Accounts;

 

(iii)                                       all
As-Extracted Collateral;

 

(iv)                                      all
Chattel Paper (including Electronic Chattel Paper);

 

(v)                                         all
Deposit Accounts;

 

(vi)                                      all
Documents;

 

(vii)                                   all
Equipment (including, for the avoidance of doubt, all wind turbines);

 

(viii)                                all
Fixtures;

 

(ix)                                        all
General Intangibles;

 

(x)                                           all
Goods not covered by the other clauses of this Section 2, if any;

 

(xi)                                        all
Instruments, including all Promissory Notes;

 

(xii)                                     all
inventions, processes, production methods, proprietary information (including
operating data and wind resource data related to the Project), know how, maps,
plans, specifications, architectural, engineering, construction or shop
drawings, route surveys, engineering reports, manuals and similar materials in
which Borrower has an interest, and all payment and performance bonds or
warranties or guaranties relating to the Project and all of Borrower’s rights
under and in patents, patent licenses, copyrights, trademarks and trade names,
trade secrets and any replacements, renewals or substitutions for any of the
foregoing (collectively, “Intellectual Property”);

 

(xiii)                                  all
Inventory;

 

3

 

(xiv)                                 all Motor
Vehicles;

 

(xv)                                    all
Investment Property not covered by other clauses of this Section 2,
including all Securities, all Securities Accounts and all Security Entitlements
with respect thereto and Financial Assets carried therein, and all Commodity
Accounts and Commodity Contracts;

 

(xvi)                                 all
Letter-of-Credit Rights;

 

(xvii)                              Payment
Intangibles;

 

(xviii)                           Software;

 

(xix)                                   all
Commercial Tort Claims arising out of, relating to or in connection with all or
any part of the Inventory, Equipment or Documents of Borrower;

 

(xx)                                      all
cash and cash instruments;

 

(xxi)                                   all
other tangible and intangible personal property whatsoever of the Borrower; and

 

(xxii)                                (a) the Membership
Interest and any and all certificates representing the Membership Interest (“Membership
Certificates”) as listed on Annex A attached hereto, and all
dividends, cash, options, warrants, instruments, chattel paper, other rights
and property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for the Membership Interest; (b) all
additional membership interests, shares of stock or other equity interest of
Borrower in any Project Company, at any time acquired by Borrower in any
manner, and the certificates representing such additional membership interests,
shares or other equity interest of Borrower in such Project Company (any such
additional membership interests, shares or other equity interest of Borrower in
such Project Company shall constitute part of the Membership Interest), and all
dividends, cash, options, warrants, instruments, chattel paper, other rights
and property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for any or all of such membership
interests, shares or other equity interest of Borrower in such Project Company;
(c) all of Borrower’s rights to receive income, gain, profit, loss or
other items allocated or distributed to Borrower under the LLC Agreements; (d) all
rights to receive all distributions of any nature whatsoever from any Project
Company with respect to such Membership Interest, if any; (e) all of
Borrower’s capital or ownership interest, including capital accounts, in each
Project Company, and all accounts, 

 

4

 

deposits
or credits of any kind with each Project Company related to or required in
connection with the Membership Interest; (f) all of Borrower’s voting
rights in (if any), or rights to control or direct the affairs (if any), of
each Project Company; (g) all of Borrower’s right, title and interest, as
a member of each Project Company, in or to any and all of each Project Company’s
assets or properties; (h) all other right, title and interest in or to
each Project Company, and all rights to receive income, profit or other
distributions from each Project Company, of any nature whatsoever, in each
case, as such rights are derived from Borrower’s Membership Interest in each
Project Company;  (i) all claims of Borrower
for damages arising out of or for breach of or default relating to the
Collateral (including under or in connection with the LLC Agreements); (j) all
rights of Borrower to terminate, amend, supplement, modify or waive performance
under the LLC Agreements, to perform thereunder and to compel performance and
otherwise exercise all remedies thereunder; (k) without
affecting the obligations under any provision prohibiting that action under any
Financing Document, in the event of any consolidation or merger involving any
Project Company in which such Project Company is not the surviving entity, (x) all
shares, securities, membership, partnership or ownership interests of the
successor entity formed by or resulting from that consolidation or merger, and (y) all
other consideration (including all personal property, tangible or intangible)
received in exchange for such Collateral;  (l) all of Borrower’s interests in the Applicable
Permits, if any, to the extent permitted by applicable Governmental Rules; (m) all of Borrower’s right, title and interest
in the Collateral (including under or in connection with the LLC Agreements);
and

 

(xxiii)                          all
Proceeds of any of the Collateral, all Accessions to and substitutions and
replacements for, any of the Collateral, and all offspring, rents, profits and
products of any of the Collateral.

 

The foregoing
notwithstanding, the term “Collateral” shall not include (i) contracts and
agreements which by their terms or by operation of law prohibit or do not allow
assignment or which would become void solely by virtue of a security interest
being granted therein, in each case only for so long as such restriction is in
place and no such restriction was agreed with the intent to undermine the
security interest granted therein, or (ii) any Applicable Permits or other
permits or any insurance policies that by their terms or by operation of law
would become void, voidable, terminable or revocable or in respect of which
Borrower would be deemed to be in breach or default thereunder if pledged or
assigned hereunder or if a security interest therein were granted hereunder, to
the extent necessary to avoid such voidness, voidability, revocability, breach
or default.

 

5

 

(b)                                 Nature of Security Interest.  The granting of the foregoing security
interest does not make Security Agent or any Secured Party a successor to
Borrower as a member in any Project Company, and none of Security Agent, any
Secured Party or any of their successors or assigns hereunder shall be deemed
to have become a member in any Project Company by accepting this Agreement or
exercising any right granted herein unless and until such time, if any, when
Security Agent, any Secured Party or any such successor or assign expressly
becomes a member in any Project Company after a foreclosure upon the
Collateral.  Notwithstanding anything
herein to the contrary, none of Security Agent, the Secured Parties, or any of
their successors or assigns shall be deemed to have assumed or otherwise become
liable for any debts or obligations of any Project Company or of Borrower by
virtue of the security interest granted hereunder (except to the extent, if
any, that Security Agent, any Secured Party or any of their successors or
assigns hereafter expressly becomes a member in any Project Company).

 

(c)                                  Delivery of Agreements.  Borrower has heretofore delivered or
concurrently with the delivery hereof is delivering to Security Agent, an
executed counterpart or certified copy of each LLC Agreement and each of the
Assigned Agreements in existence on the date hereof.  Borrower will likewise, to the extent
required under the Financing Agreement deliver to Security Agent a copy of an
executed counterpart or certified copy of each Additional Project Document and
each future lease or future easement relating to the Project or any part
thereof and amendments and supplements to the foregoing, included in the
Collateral, as they are entered into by Borrower promptly upon the execution
thereof.  Notwithstanding anything to the
contrary contained herein, no such Additional Project Document, or material
future lease, or other material agreement related to the Project may be entered
into by Borrower without the prior written approval of Security Agent, except
as otherwise permitted under the Financing Agreement and the LLC Agreements, as
applicable.

 

(d)                                 Continuing Liability Under Agreements.  Notwithstanding anything to the contrary
contained herein, (a) Borrower shall remain liable under each LLC
Agreement and each Assigned Agreement  to
perform all of the obligations undertaken by it thereunder, all in accordance
with and pursuant to the terms and provisions thereof, and (b) Security
Agent shall have no obligation or liability under any of such agreements by
reason of or arising out of this Agreement, nor shall Security Agent be
required or obligated in any manner to perform or fulfill any obligations of
Borrower thereunder or to make any payment or inquiry as to the nature or
sufficiency of any payment received by it, or present or file any claim, or
take any action to collect or enforce the payment of any amounts which may have
been assigned to it or to which it may be entitled at any time.

 

6

 

(e)                                  Consent to Transfer:  Borrower, as the sole member of each Project
Company, hereby irrevocably consents (for all purposes under the LLC
Agreements) to the transfer of the Membership Interest of each Project Company
to any Person upon exercise by the Security Agent of its remedies in accordance
with the provisions of Section 6.

 

(f)                                    Defaults Under Assigned Agreements.  If a default by Borrower under any of the
Assigned Agreements shall occur and be continuing, and if such default could
reasonably be expected to result in a Material Adverse Effect as determined by
Administrative Agent (with consent of Required Applicable Lenders), then, upon
ten (10) Business Days’ notice to Borrower (or, if the applicable Assigned
Agreement has a cure period of less than twenty (20) days with respect to
defaults, then such ten (10) Business Days notice period shall be reduced
to the number of days which is half of the number of days provided to cure any
such default under such Assigned Agreement), Security Agent shall, at its
option, be permitted (but not obligated) to remedy any such default either
pursuant to the terms of any Consent in respect of such Assigned Agreement or
otherwise by giving written notice of such intent to Borrower and to the parties
to the Assigned Agreement or Assigned Agreements for which Security Agent
intends to remedy the default.  After
giving such notice of its intent to cure such default and upon the commencement
thereof, Security Agent will proceed to cure such default.  Any cure by Security Agent of Borrower’s
default under any of the Assigned Agreements shall not be construed as an
assumption by Security Agent or any other Secured Party of any obligations,
covenants or agreements of Borrower under such Assigned Agreement or any other
Assigned Agreement, and neither Security Agent nor any other Secured Party
shall be liable to Borrower or any other Person as a result of any actions
undertaken by Security Agent in curing or attempting to cure any such default,
except as otherwise set forth in the Financing Agreement or any applicable
Consent.  This Agreement shall not be
deemed to release or to affect in any way the obligations of Borrower under the
Assigned Agreements.

 

(g)                                 Intellectual Property.  For the purpose of enabling Security Agent to
exercise its rights, remedies, powers and privileges under Section 6
at that time or times as Security Agent is lawfully entitled to exercise those
rights, remedies, powers and privileges, and for no other purpose, Borrower
hereby grants to Security Agent, to the extent assignable or licensable in a
manner consistent with this Agreement and without payment of any royalty or
compensation, an irrevocable, nonexclusive license (exercisable without payment
of royalty or other compensation to Borrower) to use, assign, license or
sublicense any of the Intellectual Property of Borrower, together with
reasonable access to all media in which any of the licensed items may be
recorded or stored and to all computer programs used for the compilation or
printout of those items.

 

7

 

(h)                                 Preservation of Security Interests.  Borrower shall:

 

(i)                                             upon
the acquisition after the date of this Agreement by Borrower of any
Certificated Securities, Instruments, Deposit Accounts, other Investment
Property, Electronic Chattel Paper, Letter-of Credit Rights, Motor Vehicles or
other Equipment covered by a certificate of title or ownership promptly (x) take
such action with respect to that Collateral as is specified for that type of
Collateral in Section 14 and (y) take all such other actions,
and authenticate or sign and file or record such other records or instruments,
as are necessary or as Security Agent may reasonably request to create, perfect
and establish the priority of the liens granted by this Agreement in any and
all of the Collateral, to preserve the validity, perfection or priority of the
liens granted by this Agreement in any and all of the Collateral or to enable
Security Agent to exercise its remedies, rights, powers and privileges under
this Agreement.

 

(ii)                                          upon
Borrower’s acquiring, or otherwise becoming entitled to the benefits of, any
Intellectual Property or upon or prior to Borrower’s filing, either directly or
through Security Agent, any licensee or any other designee, of any application
with any Governmental Authority for any Intellectual Property, in each case
after the date of this Agreement, execute and deliver such contracts,
agreements and other instruments as Security Agent may reasonably request to
create, perfect and establish the priority of the liens granted by this
Agreement in that Intellectual Property.

 

(iii)                                       whether
with respect to Collateral as of the date of this Agreement or Collateral in
which Borrower acquires rights in the future, authorize, give, authenticate,
execute, deliver, file or record any and all financing statements, notices,
contracts, agreements or other records or instruments, obtain any and all
Applicable Permits, and take all such other actions, as are necessary or as
Security Agent may reasonably request to create, perfect and establish the
priority of the liens granted by this Agreement in any and all of the
Collateral, to preserve the validity, perfection or priority of the liens
granted by this Agreement in any and all of the Collateral or to enable
Security Agent to exercise and enforce its remedies, rights, powers and
privileges under this Agreement.

 

(iv)                                      furnish
to Security Agent from time to time statements and schedules further
identifying and describing the Collateral pledged by Borrower hereunder and
such other reports in connection with the Collateral pledged by Borrower
hereunder as Security Agent may reasonably request, all in reasonable detail.

 

8

 

(i)                                     Commercial Tort Claims.  Borrower agrees that, if it shall acquire any
interest in any Commercial Tort Claim (whether from another Person or because
such Commercial Tort Claim shall have come into existence), (i) Borrower
shall, immediately upon such acquisition, deliver to Security Agent, in each
case in form and substance reasonably satisfactory to Security Agent, a notice
of the existence and nature of such Commercial Tort Claim containing a
reasonably specific description of such Commercial Tort Claim, certified by
Borrower as true, correct and complete, (ii) the provisions of Section 2  shall apply to such Commercial Tort Claim
(and Borrower authorizes Security Agent to supplement this Agreement with a
description of such Commercial Tort Claim if Borrower fails to deliver the
supplement described in clause (i)), and (iii) Borrower shall execute and
deliver to Security Agent, in each case in form and substance reasonably
satisfactory to Security Agent, any certificate, agreement and other document,
and take all other action, deemed by Security Agent to be reasonably necessary
or appropriate for Security Agent to obtain, on behalf of the Secured Parties,
a first-priority, perfected security interest in all such Commercial Tort
Claims.

 

(j)                                     Obligations Unconditional.  The obligations of Borrower under this
Agreement shall be continuing, irrevocable, absolute and unconditional
irrespective of the value, genuineness, validity, regularity or enforceability
of any Financing Document or any other agreement or instrument referred to
therein or herein, or any substitution, release or exchange of any guarantee of
or security for any of the Obligations, and, to the fullest extent permitted by
applicable law, irrespective of any other circumstance whatsoever that might
otherwise constitute a legal or equitable discharge or defense of a surety or
guarantor (other than payment in full of all Obligations, subject to Section 2(l)),
it being the intent of this Section 2(j) that the obligations
of Borrower hereunder shall be absolute and unconditional under any and all
circumstances.  Without limiting the
generality of the foregoing, it is agreed that the occurrence of any one or
more of the following shall not alter or impair the liability of Borrower
hereunder, which shall remain absolute and unconditional as described above
without regard to and not be released, discharged or in any way affected
(whether in full or in part) by:

 

(i)                                             at
any time or from time to time, without notice to Borrower, the time for any
performance of or compliance with any of the Obligations shall be extended, or
such performance or compliance shall be waived;

 

(ii)                                          any
of the acts mentioned in any of the provisions of any Financing Document shall
have occurred;

 

9

 

(iii)                                       the
maturity of any of the Obligations shall be accelerated, or any of the
Obligations shall be modified, supplemented or amended in any respect, or any
right under any Financing Document or any other agreement or instrument
referred to therein or herein shall be waived or any guarantee of any of the
Obligations or any security therefor shall be released or exchanged in whole or
in part or otherwise dealt with;

 

(iv)                                      any
lien granted to, or in favor of, Security Agent as security for any of the Obligations
shall fail to be perfected; or

 

(v)                                         any
bankruptcy, insolvency, reorganization, arrangement, readjustment of debt,
liquidation or dissolution proceeding commenced by or against Security Agent,
Borrower, any Project Company or any other Person, including any discharge of,
or bar or stay against collecting, all or any part of the Obligations (or any
interest on all or any part of the Obligations) in or as a result of any such
proceeding.

 

Should, after
the occurrence and during the continuation of an Event of Default, any money
due or owing under this Agreement not be recoverable from Borrower for any
reason, whether by operation of law or otherwise, then, in any such case, such
money shall nevertheless be recoverable by Security Agent from the proceeds of
the Collateral as though Borrower were the principal debtor in respect thereof
and not merely a pledgor hereunder.

 

(k)                                  Waiver.

 

(i)                                             Borrower
hereby expressly waives promptness, diligence, presentment, demand for payment
or performance and protest; filing of claims with any court; any proceeding to
enforce any provision of the Financing Documents; notice of acceptance of and
reliance on this Agreement by the Secured Parties, notice of the creation of
any Obligations of Borrower or any Project Company, and any other notice
whatsoever (other than those specifically provided under the Financing
Documents); any requirement that Security Agent exhaust any right, power or
remedy or proceed or take any other action against any Project Company under
any Financing Document to which it is a party or any lien or encumbrance on, or
any claim of payment against, any property of any Project Company or any other
agreement or instrument referred to therein, or any other Person under any
guarantee of, or lien securing, or claim for payment of, any of the
Obligations; any right to require a proceeding by Security Agent first against
any Project Company whether to marshal any assets or to exhaust any right or
take any action against any Project Company or any other 

 

10

 

Person
or any collateral or otherwise, any diligence in collection or protection for
realization upon any Obligation, any obligation hereunder or any collateral
security for any of the foregoing; any right of protest, presentment, notice or
demand whatsoever, and any claims of waiver, release, surrender, alteration or
compromise and all defenses, set-offs, counterclaims, recoupments, reductions,
limitations, impairments or terminations, whether arising hereunder or
otherwise.  Borrower further waives (A) any
requirement that any other Person be joined as a party to any proceeding for
the enforcement by Security Agent of any Obligation and (B) the filing of
claims by Security Agent in the event of the receivership or bankruptcy of
Borrower or any Project Company. 
Security Agent shall have the right to bring suit directly against
Borrower with respect to the obligations owed to Security Agent hereunder
either prior to or concurrently with any lawsuit against, or without bringing
any suit against Borrower, any Project Company or any other Person.

 

(ii)                                          The
enforceability and effectiveness of this Agreement and the liability of
Borrower, and the rights, remedies, powers and privileges of Security Agent,
under this Agreement shall not be affected, limited, reduced, discharged or
terminated, and Borrower hereby expressly waives to the fullest extent
permitted by law any defense now or in the future arising by reason of:

 

A.                                   the illegality, invalidity or unenforceability
of all or any part of the Obligations, any Financing Document or any agreement,
security document, guarantee or other instrument relating to all or any part of
the Obligations;

 

B.                                     any disability or other defense with
respect to all or any part of the Obligations of any Project Company or
Borrower, including the effect of any statute of limitations that may bar the
enforcement of all or any part of the Obligations;

 

C.                                     the illegality, invalidity or
unenforceability of any security or guarantee for all or any part of the
Obligations or the lack of perfection or continuing perfection or failure of
the priority of any lien or encumbrance on any collateral for all or any part
of the Obligations;

 

D.                                    the cessation, for any cause whatsoever, of
the liability of any Project Company that is a guarantor of all or any part of
the Obligations (other than, subject to Section 2(l), by reason of
the full payment and performance of all Obligations);

 

11

 

E.                                      other than notice expressly required under
this Agreement, any failure of Security Agent to give notice of sale or other
disposition of any collateral (including any notice of any judicial or
nonjudicial foreclosure or sale of any interest in real property serving as
collateral for all or any part of the Obligations) for all or any part of the
Obligations to any Project Company, Borrower or any other Person or any defect
in, or any failure by any Project Company, Borrower or any other Person to
receive, any notice that may be given in connection with any sale or
disposition of any collateral for all or any part of the Obligations;

 

F.                                      any failure of Security Agent to comply
with applicable laws in connection with the sale or other disposition of any
collateral (other than the Collateral) for all or any part of the Obligations;

 

G.                                     any judicial or nonjudicial foreclosure or
sale of, or other election of remedies with respect to, any interest in real
property or other collateral serving as security for all or any part of the
Obligations, even though such foreclosure, sale or election of remedies may
impair the subrogation rights of any Project Company or Borrower or may
preclude any Project Company or Borrower from obtaining reimbursement,
contribution, indemnification or other recovery from any Project Company or
Borrower or any other Person and even though such Project Company or Borrower
may not, as a result of such foreclosure, sale or election of remedies, be
liable for any deficiency;

 

H.                                    any act or omission of Security Agent or
any other Person that directly or indirectly results in or aids the discharge
or release of Borrower or any Project Company or any part of the Obligations or
any security or guarantee (including any letter of credit) for all or any part
of the Obligations by operation of law or otherwise;

 

I.                                         any law which provides that the obligation
of a surety or guarantor must neither be larger in amount nor in other respects
more burdensome than that of the principal or which reduces a surety’s or
guarantor’s obligation in proportion to the principal obligation;

 

J.                                        any counterclaim, set-off or other claim
which Borrower has or alleges to have with respect to all or any part of the
Obligations;

 

12

 

K.                                    any failure of Security Agent to file or
enforce a claim in any bankruptcy or other proceeding with respect to any
Person;

 

L.                                      the election by Security Agent, in any
bankruptcy proceeding of any Person, of the application or non-application of Section 1111(b)(2) of
the United States Bankruptcy Code;

 

M.                                 any extension of credit or the grant of any
lien or encumbrance under Section 364 of the United States Bankruptcy
Code;

 

N.                                    any use of cash collateral under Section 363
of the United States Bankruptcy Code;

 

O.                                    any agreement or stipulation with respect
to the provision of adequate protection in any bankruptcy proceeding of any
Person;

 

P.                                      the avoidance of any lien or encumbrance in
favor of Security Agent for any reason;

 

Q.                                    any bankruptcy, insolvency, reorganization,
arrangement, readjustment of debt, liquidation or dissolution proceeding
commenced by or against any Person, including any discharge of, or bar or stay
against collecting, all or any part of the Obligations (or any interest on all
or any part of the Obligations) in or as a result of any such proceeding; or

 

R.                                     any action taken by Security Agent that is
authorized by this Section 2(k) or otherwise in this Agreement
or by any other provision of any Financing Document or any omission to take any
such action.

 

(l)                                     Reinstatement.  The obligations of Borrower under this Section 2
shall be automatically reinstated if and to the extent that for any reason any
payment by or on behalf of Borrower in respect of the Obligations is rescinded
or must be otherwise restored by any holder of any of the Obligations, whether
as a result of any proceedings in bankruptcy or reorganization or
otherwise.  Borrower agrees that it will
indemnify Security Agent on demand for all reasonable costs and expenses
(including reasonable and reasonably documented fees of counsel) incurred by
Security Agent in connection with such rescission or restoration, including any
such costs and expenses incurred in defending against any claim alleging that
such payment constituted a preference, fraudulent transfer or similar payment
under any bankruptcy, insolvency or similar law.

 

13

 

(m)                               Subrogation. 
Borrower hereby waives all rights of subrogation or contribution,
whether arising by contract or operation of law (including, without limitation,
any such right arising under any bankruptcy, insolvency or other similar law)
or otherwise by reason of any payment by it pursuant to the provisions of this Section 2
and further agrees for the benefit of Security Agent that any such payment by
it shall be characterized as a contribution of capital by Borrower to the
applicable Project Company (or an investment in the equity capital of the
applicable Project Company by Borrower). 
If any amount shall be paid to Borrower on account of such subrogation
rights at any time prior to the indefeasible and unconditional payment,
discharge or performance in full of the Obligations, such amount shall be held
in trust for the benefit of Security Agent (if applicable) and shall forthwith
be paid to Security Agent to be credited and applied upon and against the
Obligations, to the extent then matured, in accordance with the terms of the
relevant Financing Documents or, to the extent not then matured or existing, be
held by Security Agent as collateral security for the Obligations.

 

(n)                                 Remedies. 
Borrower agrees that, as between Borrower and Security Agent, any
Obligations of Borrower to the Secured Parties under any of the Financing
Documents to which it is a party may be declared to be forthwith due and
payable notwithstanding any stay, injunction or other prohibition preventing
such declaration (or such Obligations from becoming automatically due and
payable) as against Borrower or any Project Company, and that, in the event of such
declaration (or such Obligations being deemed to have become automatically due
and payable), such Obligations (whether or not due and payable by Borrower or
any Project Company) shall forthwith become due and payable by Borrower for
purposes of this Agreement.  For the
avoidance of doubt, it is understood and agreed that any amount payable by
Borrower pursuant to the immediately preceding sentence may be applied to the
payment or prepayment (as the case may be) of the Obligations of Borrower or
any Project Company, as applicable (whether or not due and payable).  Each of the obligations of Borrower under
this Agreement is separate and independent of each other obligation of Borrower
hereunder and separate and independent of the Obligations, and Borrower agrees
that a separate action or actions may be brought and prosecuted by Security
Agent against Borrower to enforce this Agreement, irrespective of whether any
action is brought by Security Agent against Borrower or any Project Company
under any relevant Financing Document or whether Borrower or any Project
Company is joined in any such action or actions.

 

(o)                                 Continuing Obligation.  The obligations of Borrower provided in this Section 2
are continuing obligations and shall apply to all Obligations whenever arising.

 

14

 

Section 3. Delivery of Collateral.

 

All Membership Certificates, instruments or other documents
representing or evidencing the Membership Interest, if any, shall be endorsed
for transfer or accompanied by duly executed instruments of transfer or
assignments in blank, all in a form satisfactory to Security Agent, and shall
be delivered promptly to Security Agent or its nominee upon execution of this
Agreement.  Security Agent shall have the
right, at any time in its discretion and without prior notice to Borrower, but
only following the occurrence and during the continuance of an Event of
Default, to transfer to or register in the name of Security Agent or its
nominee, any or all such certificates, instruments or other documents, provided,
that Security Agent shall promptly notify Borrower and the applicable Project
Company of such transfer or registration. 
Such certificates, instruments and other documents representing the
Membership Interest shall be returned to Borrower promptly upon satisfaction of
the Obligations.

 

Section 4. Obligations Secured.

 

This Agreement and all of the Collateral hereunder assigned to Security
Agent, for the benefit of the Secured Parties, secures the payment and performance
when due of all Obligations to Security Agent and the other Secured Parties
under the Financing Documents.

 

Section 5. Use of Collateral.

 

Except for the Membership Certificates, so long as no Event of Default
has occurred and is continuing, Borrower reserves the right to, and shall be
entitled to, use and possess the Collateral and exercise all of its right,
title and interest in, to and under the Collateral, including under the LLC
Agreements and to receive and use (subject to the terms of the Financing
Agreement) all income, profit and other distributions in respect of the
Collateral.  Provided that no Event of
Default shall have occurred and be continuing, Borrower shall be permitted to
exploit, use, enjoy, protect, license, sublicense, assign, sell, dispose of or
take other actions with respect to the Intellectual Property of the Project
Companies in the ordinary course of its business to the extent permitted by the
Financing Agreement and the other Operative Documents.

 

Section 6. Remedies.

 

(a)                                  Subject to the terms of the Financing
Documents, if any Event of Default has occurred and is continuing, Security
Agent shall have the right, at its election and at the direction of the
Required Applicable Lenders, but not the obligation, to do any of the
following:

 

(i)                                             declare
any or all amounts payable by Borrower under the Financing Documents to be due
and payable immediately, and thereupon the same shall become immediately due
and payable;

 

(ii)                                          subject
to Section 10, vote or exercise any and all of Borrower’s rights or
powers under the LLC Agreements including 

 

15

 

any of
Borrower’s rights or powers to manage or control the Project Companies;

 

(iii)                                       demand,
sue for, collect or receive any money or property at any time payable to or
receivable by Borrower on account of or in exchange for all or any part of the
Collateral;

 

(iv)                                      cause
any action at law or suit in equity or other proceeding to be instituted and
prosecuted to collect any Collateral or enforce any Obligation or rights
hereunder or included in the Collateral, including specific enforcement of any
covenant or agreement contained herein or in the LLC Agreements, or to
foreclose or enforce the security interest in all or any part of the Collateral
granted herein, or to enforce any other legal or equitable right vested in it
by this Agreement or by law;

 

(v)                                         sell
or otherwise dispose of any or all of the Collateral or cause any or all of the
Collateral to be sold or otherwise disposed of in one or more sales or
transactions, at such prices as Security Agent may deem commercially
reasonable, and for cash or on credit or for future delivery, without
assumption of any credit risk, at any broker’s board or at public or private
sale, without demand of performance or notice of intention to sell or of time
or place of sale (except such notice which under applicable law cannot be
waived, in which case such notice shall be in accordance with the provisions
hereof to the extent permitted by applicable law), it being agreed that
Security Agent may be a purchaser on behalf of the Secured Parties or on its
own behalf at any such sale and that Security Agent, any Secured Party or any
other Person who may be a bona fide purchaser for value of any or all of the Collateral
without notice of any claims on any or all of the Collateral so sold shall
thereafter hold the same absolutely free from any claim or right of whatsoever
kind, including any equity of redemption, of Borrower or any Project Company,
any such demand, notice or right and equity being hereby expressly waived and
released;

 

(vi)                                      incur
reasonable expenses, including reasonable attorneys’ fees, consultants’ fees,
and other costs appropriate to the exercise of any right or power under this
Agreement;

 

(vii)                                   perform
any obligation of Borrower hereunder, under any other Financing Document, under
the LLC Agreements or the Assigned Agreements, and make payments, purchase,
contest or compromise any encumbrance, charge, or lien, and pay taxes and
expenses, without, however, any obligation to do so;

 

16

 

(viii)                                secure
the appointment of a receiver for Borrower, of the Project or any part thereof
and/or the Collateral or any part thereof without prior notice to Borrower or
any Project Company;

 

(ix)                                        proceed
to protect and enforce the rights vested in it by this Agreement, including the
right to cause all revenues hereby pledged as security and all other moneys
pledged hereunder to be paid directly to it, and to enforce its rights
hereunder to such payments and all other rights hereunder by such appropriate
judicial proceedings as it shall deem most effective to protect and enforce any
of such rights, either at law or in equity or otherwise, whether for specific enforcement
of any covenant or agreement, or in aid of the exercise of any power therein or
herein granted, or for any foreclosure hereunder and sale under a judgment or
decree in any judicial proceeding, or to enforce any other legal or equitable
right vested in it by this Agreement or by law;

 

(x)                                           require
Borrower to assemble the Collateral at the expense of Borrower and (to the
extent moveable) make it available to Security Agent at a place to be
designated by Security Agent which is reasonably convenient to both parties;

 

(xi)                                        require
Borrower to take any actions that are necessary or requested by Security Agent
to preserve the value of the Collateral and the validity, perfection or
priority of the liens granted by this Agreement in any portion of the Collateral;

 

(xii)                                     take
possession of the Collateral (other than the membership Certificates that have
been delivered to Security Agent pursuant to Section 3) and render
it usable, and repair and renovate the same, without, however, any obligation
to do so, and enter upon the property of Borrower or any other location where
the same may be located for that purpose, control, manage, operate, rent and
lease the Collateral and apply the same in accordance with the the Financing
Documents; or

 

(xiii)                                  exercise
any other or additional rights or remedies granted to a secured party under the
UCC.

 

(b)                                 Minimum Notice Period.  If, pursuant to applicable law, prior notice
of any such action set forth above is required to be given to Borrower or any
Project Company, Borrower and applicable Project Company hereby acknowledge and
agree that the minimum time required by such applicable law, or if no minimum
is specified, of ten (10) Business Days, shall be deemed a reasonable
notice period.  Security Agent shall not
be obligated to make any sale of Collateral regardless of notice of sale having
been given.  Security Agent may adjourn
any public or private 

 

17

 

sale
from time to time by announcement at the time and place fixed therefor, and
such sale may, without further notice, be made at the time and place to which
it was so adjourned.

 

(c)                                  Payment of Costs.  Borrower agrees to pay to Security Agent,
within five (5) Business Days of its demand therefor, all reasonable
out-of-pocket costs and expenses (including reasonable and reasonably
documented attorneys’ fees and expenses) incident to its enforcement,
protection and preservation of any of its rights and claims under this
Agreement.  Any amount required to be
paid by Borrower pursuant to the terms hereof shall bear interest at the
Default Rate or the maximum rate permitted by law, whichever is less, from the
date due until payment, and shall constitute additional indebtedness secured by
this Agreement.

 

(d)                                 Application of Proceeds.  The proceeds of any sale of, or other
realization upon, all or any part of the Collateral shall be applied in
accordance with the Financing Documents. 
In the event that the proceeds of any sale or other realization upon the
Collateral by Security Agent are insufficient to pay all Obligations, Borrower
shall be liable for the deficiency as calculated in accordance with the the
Financing Documents.  Any excess proceeds
after full satisfaction of the Obligations shall be returned promptly to
Borrower.

 

Section 7. Remedies Cumulative; Delay Not Waiver.

 

(a)                                  No right, power or remedy herein conferred
upon or reserved to Security Agent or the Secured Parties is intended to be
exclusive of any other right, power or remedy, and every such right, power and
remedy shall, to the extent permitted by law, be cumulative and in addition to
every other right, power and remedy given hereunder or now or hereafter
existing at law or in equity or otherwise. 
The assertion or employment of any right or remedy hereunder, or
otherwise, shall not prevent the concurrent assertion or employment of any
other appropriate right or remedy.

 

(b)                                 No delay or omission of Security Agent to
exercise any right or power accruing upon the occurrence and during the
continuation of any Event of Default shall impair any such right or power of
Security Agent, nor shall it be construed as a waiver of any such Event of
Default or an acquiescence therein. 
Every power and remedy given by this Agreement may be exercised from
time to time, and as often as shall be deemed expedient, by Security Agent upon
the occurrence and during the continuation of an Event of Default.  Each and every default by Borrower in payment
hereunder shall give rise to a separate cause of action hereunder, and Security
Agent may enforce its security interest in concurrent or successive actions and
in one or several consolidated or 

 

18

 

independent
judicial actions or lawfully taken nonjudicial proceedings, or both.

 

(c)                                  Security Agent may perform any of its
rights and duties hereunder by or through agents and is entitled to retain
counsel and to act in reliance upon the advice of such counsel concerning all
matters pertaining to its rights and duties hereunder.

 

Section 8. Representations and Warranties of Borrower.

 

Borrower represents and warrants, as of the date hereof, to Security
Agent and the Secured Parties as follows:

 

(a)                                  Borrower has not assigned any of its rights
under the LLC Agreements, the Assigned Agreements or any of the Collateral
except as provided in this Agreement and the other Financing Documents.

 

(b)                                 Borrower is the legal and equitable owner
of the Collateral (including the Membership Interest in each Project Company),
subject to no mortgages, liens, charges, or encumbrances of any kind other than
Liens granted pursuant to the Financing Documents and Permitted Liens set forth
in clauses (b), (c) and (f) of the definition thereof, and has full
power and lawful authority to pledge, assign and grant a security interest in
the Collateral hereunder.

 

(c)                                  Borrower has not executed and is not aware
of any effective financing statement, security agreement or other instrument
similar in effect covering all or any part of the Collateral on file in any
recording office or any agreement or instrument granting an interest in the
Collateral that is capable of being so recorded, except such as may have been
filed pursuant to this Agreement and the other Financing Documents, or pursuant
to the documents evidencing Permitted Liens.

 

(d)                                 Borrower (i) is a duly formed and
validly existing limited liability company in good standing under the laws of
Delaware; (ii) is authorized to do business in each jurisdiction where the
character of its properties or the nature of its activities makes such
qualification necessary, except where the failure to do so would not reasonably
be expected to result in a Material Adverse Effect; and (iii) has the
power and authority to own its property and assets and to transact the business
in which it is engaged.

 

(e)                                  Borrower (i) has the power and
authority to execute, deliver and perform its obligations under the Financing
Documents, the Assigned Agreements, the LLC Agreements and this Agreement, and
to pledge and assign the Collateral; (ii) has taken all necessary action
to authorize the execution, delivery and performance of the Financing
Documents, the Assigned Agreements, the LLC Agreements and this Agreement;

 

19

 

and (iii) has
duly executed and delivered the Financing Documents, the Assigned Agreements,
the LLC Agreements and this Agreement. 
The Financing Documents, the Assigned Agreements, the LLC Agreements and
this Agreement constitute the legal, valid and binding obligations of Borrower,
enforceable in accordance with their respective terms, except as the
enforceability thereof may be limited by applicable bankruptcy, insolvency,
moratorium, reorganization or other similar laws affecting the enforcement of creditors’
rights and subject to general equitable principles.

 

(f)                                    The LLC Agreements and the Assigned
Agreements have not been amended since the date of their execution, except as
otherwise disclosed to Security Agent, and are in full force and effect.  There exists no default, or event that with
the passage of time, the giving of notice or both would become a default by
Borrower under the LLC Agreements or the Assigned Agreements.

 

(g)                                 The execution and delivery of, and
performance by Borrower under, this Agreement, and the consummation of the
transactions contemplated herein, will not (i) violate any provision of
any material agreement to which Borrower is a party or any of its property or
assets is bound, including the LLC Agreements and the Assigned Agreements, or (ii) conflict
with any material law, order, rule or regulation applicable to Borrower,
of any court or any federal or state government, regulatory body or
administrative agency, or any other governmental body having jurisdiction over
Borrower or any of its properties.

 

(h)                                 Other than the Financing Documents, there
is no existing agreement, option, right or privilege capable of becoming an
agreement, option or right pursuant to which Borrower could be required to sell
or otherwise dispose of all or a part of the Membership Interest.

 

(i)                                     No consent of any Governmental Authority is
required for the transfer of the Membership Interest except as may be required
by applicable laws affecting the offering and sale of securities generally or
the regulation of ownership or operation of utility assets under the laws of
the State of New York, the FPA, PUHCA and any other Federal regulation
regarding EWG’s.

 

(j)                                     [Intentionally Omitted]

 

(k)                                  Perfection of Security Interest. 
The security interests granted to Security Agent, for the benefit of
Secured Parties, pursuant to this Agreement, in the Collateral (a) upon
filing of appropriate financing statements, constitute as to personal property
included in the Collateral and, with respect to subsequently acquired personal
property included in the Collateral, will constitute, a perfected security
interest under the UCC to 

 

20

 

the
extent a security interest can be perfected by filing or, in the case of the
Membership Certificates (such certificates being Certificated Securities), by
possession by or on behalf of the secured party and (b) are, and, with
respect to such subsequently acquired personal property, will be, as to the
Collateral perfected under the UCC as aforesaid, superior and prior to the
rights of all third Persons now existing or hereafter arising whether by way of
mortgage, lien, security interests, encumbrance, assignment or otherwise (other
than Permitted Liens that, pursuant to applicable law,
are entitled to a higher priority than the liens granted by this
Agreement).  Except to the extent possession of portions
of such Collateral is required for perfection, all such action as is necessary
has been taken to establish and perfect Security Agent’s, for the benefit of
Secured Parties, rights in and to such Collateral to the extent Security Agent’s
security interest (for the benefit of the Secured Parties) can be perfected by
filing, including any recording, filing, registration, giving of notice or
other similar action.  No filing,
recordation, re-filing or re-recording other than those listed on Schedule A
hereto (as the same may be supplemented from time to time) is necessary to
perfect and maintain the perfection of the Liens created by this Agreement on
the Collateral, and all such filings or recordings will have been made to the
extent Security Agent’s, for the benefit of Secured Parties, security interest
can be perfected by filing (except to the extent that such filings or
recordings are, by their nature, filings or recordings to be made at a later
date).  Borrower has properly delivered
or caused to be delivered to Security Agent all such Collateral that requires
perfection of the Lien and security interest described above by possession.

 

(l)                                     Place of Business. 
Borrower’s principal place of business and chief executive office is
located at 179 Lincoln Street, Suite 500, Boston, MA 02111.  Borrower has not changed its location (as
defined in Section 9-307 of the UCC) or previously changed its name.

 

(m)                               After-Acquired Collateral. 
It is understood and agreed that the foregoing representations and
warranties shall apply only to the Collateral delivered on the date hereof and
that, with respect to Collateral delivered thereafter, Borrower shall, upon the
written request of Security Agent, be required to make representations and
warranties in form and substance substantially similar to the foregoing in
supplements hereto and that such representations and warranties contained in
such supplements hereto shall be applicable to such Collateral hereafter
delivered.

 

(n)                                 Pledged Interests. 
The Membership Interest in each Project Company is duly authorized,
validly existing, fully paid and nonassessable, and such Membership Interest is
not subject to any contractual restriction, or any restriction under the
organizational documents of any Project Company 

 

21

 

or
Borrower upon the transfer of such Membership Interest (except for any such
restriction contained in any Financing Document).  Such Membership Interest exists in a
certificated form.  No Person other than
Borrower is the registered owner of the Membership Interest in each Project Company.

 

Section 9. Covenants of Borrower.

 

Borrower covenants to and in favor of Security Agent
and the other the Secured Parties as follows:

 

(a)           Borrower shall maintain its existence
as a Delaware limited liability company and all material rights, privileges,
and franchises necessary to perform its obligations hereunder.

 

(b)                                 Borrower shall perform and comply, in all
material respects, with all obligations and conditions on its part to be
performed hereunder, under the LLC Agreements, the Assigned Agreements, the
Financing Documents and with respect to the Collateral.

 

(c)                                  Borrower will, so long as any Obligations
shall be outstanding, warrant and defend its title to the Collateral and the
interest of Security Agent in the Collateral against any claim or demand of any
Persons (except for Permitted Liens).

 

(d)                                 Borrower shall not directly or indirectly
create, incur, assume or suffer to exist any liens on or with respect to any
part of the Collateral (other than Liens granted pursuant to the Financing
Documents or clauses (b), (f), (l) and (m) of the definition of
Permitted Liens).  Borrower will at its
own cost and expense promptly take such action as may be necessary to discharge
any such liens.

 

(e)                                  Without the prior written consent of
Security Agent, such consent not to be unreasonably withheld, Borrower will not
file or authorize to be filed in any jurisdiction any financing statements
under the UCC or any like statement with respect to the Collateral, in which
Security Agent is not named as the sole secured party for the benefit of the
Secured Parties.

 

(f)                                    Borrower will not cause, suffer or permit
the sale, assignment, conveyance or other transfer of all or any portion of
Borrower’s Membership Interest in any Project Company other than in accordance
with Sections 8.2 and 8.17 of the Financing Agreement and the Energy Hedge.

 

(g)                                 Without the prior written consent of
Security Agent, such consent in respect to modification or amendment not to be
unreasonably withheld, or except as otherwise permitted by the Financing
Agreement, Borrower 

 

22

 

shall
not terminate, modify or amend the LLC Agreements or the Assigned Agreements.

 

(h)                                 Borrower shall give to Security Agent
prompt notice of (i) each demand or notice received by it relating to the
LLC Agreements or the Assigned Agreements; and (ii) any default, event of
default or event which with the giving of notice or the passage of time or both
might reasonably be expected to become a default under the LLC Agreements or
the Assigned Agreements, whether by any Project Company, Borrower or any other
Person, of which Borrower has knowledge or as to which Borrower has received
notice.

 

(i)                                     If Borrower in its capacity as a member
of each Project Company receives any income or distribution of money or
property of any kind from any Project Company while an Event of Default has
occurred and is continuing (other than as permitted hereby or under the
Financing Agreement), Borrower shall hold such income or distribution as
trustee for and shall deliver the same to Security Agent.

 

(j)                                     Borrower will, at all times, keep
accurate and complete records of the Collateral.  Upon three Business Days’ prior notice,
Borrower shall permit representatives of Security Agent at any time during
normal business hours of Borrower to inspect and make abstracts from Borrower’s
books and records pertaining to the Collateral. 
Upon the occurrence and continuance of any Event of Default, at Security
Agent’s request, Borrower shall promptly deliver copies (or, where requested by
Security Agent, and where available, originals) of any and all such records to
Security Agent.

 

(k)                                  Borrower shall not cause, consent to, or
permit any termination, material amendment or modification to, or waiver of
timely compliance with any material terms or conditions of the LLC Agreements
without the prior written consent of Administrative Agent (with the consent of
the Required Applicable Lenders, acting reasonably).

 

(l)                                     Borrower shall give Security Agent at
least 10 Business Days’ notice of a change in location of its place of business
and chief executive office and shall, at the expense of Borrower, execute and
deliver such instruments and documents as may be required by Security Agent to
maintain the security interest in the Collateral created hereunder.

 

(m)                               Any indebtedness owed to Borrower by any
Project Company shall be subordinated pursuant to the terms of Exhibit M
of the Financing Agreement (the terms of which are incorporated herein by
reference).

 

(n)                                 Except as otherwise permitted under the
Financing Agreement, Borrower will not make any assignment of its rights under
the LLC 

 

23

 

Agreements
or the Assigned Agreements other than any assignment pursuant to this Agreement
or any other Financing Document.

 

Section 10. Voting Rights.

 

(a)                                  Unless an Event of Default has occurred
and is continuing (and not waived by Administrative Agent or Security Agent),
Borrower shall be entitled to exercise all the rights and powers of a holder of
such interest, including the right to vote from time to time exercisable in
respect of the Membership Interest in each Project Company and to give proxies,
consents and waivers in respect thereof. 
No such action may be taken if such action would violate or be
inconsistent with the Financing Agreement, any Financing Document or this
Agreement.

 

(b)                                 Upon the occurrence and continuance of an
Event of Default that has not been waived, Security Agent may give Borrower a
notice prohibiting Borrower from exercising the rights and powers of a holder
of the Membership Interest in each Project Company, including the right to vote
such Membership Interest, at which time (and until such time that such Event of
Default has been cured or waived), all such rights of Borrower will cease
immediately and Security Agent will have the right to exercise the rights and
powers related to such Membership Interest, including the right to vote.

 

(c)                                  Upon the occurrence and continuance of an
Event of Default that has not been waived, and whether or not Security Agent
exercises any available right to declare any Obligation due and payable or seek
or pursue any other right, remedy, power or privilege available to it under
applicable law, this Agreement or any other Financing Document, all dividends
and other distributions on all Securities included in the Collateral shall be
paid directly to a Collateral Account designated by Security Agent and retained
by it in such account as part of the Collateral, subject to the terms of this
Agreement and the other Financing Documents, and, if Security Agent so requests,
Borrower shall execute and deliver to Security Agent appropriate additional
dividend, distribution and other orders and instruments to that end, provided
that if such Event of Default is cured, any such dividend or distribution paid
to Security Agent prior to its cure shall, upon request of Borrower (except to
the extent applied to the Obligations), be returned by Security Agent to
Borrower.

 

Section 11. Certain Consents and Waivers.

 

(a)                                  Borrower hereby waives, to the maximum
extent permitted by law, and only while this Agreement is in effect (subject to
Section 25 below), (i) all rights and remedies afforded to
guarantors, sureties and other Persons under applicable law, including
limitations on the recovery of a deficiency under an obligation secured by a
deed of trust on real 

 

24

 

property
if the real property is sold under a power of sale contained in the deed of
trust, including specifically, the rights and remedies available under the laws
of the State of New York, and all defenses based on any loss, whether as a
result of any such sale or otherwise, of Borrower’s right to recover any amount
from any Project Company, whether by right of subrogation or otherwise; (ii) all
rights under any law to require Security Agent to pursue any Project Company or
any other Person, or to proceed against or exhaust any security held by
Security Agent, or to pursue any other remedy before proceeding against
Borrower; (iii) all rights of reimbursement or subrogation, including the
rights and protections under the laws of the State of New York, all rights to
enforce any remedy that Security Agent or the Secured Parties may have against
any Project Company, and all rights to participate in any security held by
Security Agent until the Obligations have been satisfied in full; (iv) all
rights to require Security Agent to give any notices of any kind, including
notices of nonpayment, nonperformance, notice of intent to accelerate, notice
of acceleration, protest, dishonor, default, delinquency or acceleration, or to
make any presentments, demands or protests, except as expressly provided in the
Financing Documents; (v) all rights to assert the bankruptcy or insolvency
of Borrower or any Project Company as a defense hereunder or as the basis for
rescission hereof; (vi) all rights under any law purporting to reduce
Borrower’s Obligations hereunder if any Project Company’s Obligations under any
Financing Document are reduced; (vii) all defenses based on the disability
or lack of authority of Borrower, any Project Company or any Person, the
repudiation of the Financing Documents by Borrower, any Project Company or any
Person, or the failure by Security Agent or the Secured Parties to enforce any
claim against Borrower or any Project Company, or the unenforceability in whole
or in part of any Financing Documents; and (viii) all suretyship and
guarantor’s defenses generally.  Borrower
further agrees that upon an Event of Default with respect to any Project
Company, Security Agent may elect to exercise any remedy against Borrower or
any security or any guarantor under the Financing Documents and this Agreement,
even if the effect of that action is to deprive Borrower of the right to
collect reimbursement from any Project Company for any sums paid by Borrower to
Security Agent or any Secured Party.

 

Section 12. Project Companies’ Consent and Covenant.

 

Each Project Company hereby consents to the assignment and grant of a
security interest in the Collateral to Security Agent and to the exercise by
Security Agent of all rights and powers assigned or delegated to Security Agent
by Borrower hereunder, including the right of Security Agent upon and during
the continuance of an Event of Default to exercise Borrower’s voting rights and
other rights under each LLC Agreement to manage or control each Project Company
as provided therein.  Each Project
Company 

 

25

 

further agrees to perform all covenants and
obligations herein which, by their terms, are to be performed by each Project
Company.

 

Section 13. Attorney-in-Fact.

 

(a)                                  Attorney-in-Fact. 
Upon the occurrence and during the continuation of an Event of Default,
Borrower hereby irrevocably constitutes and appoints Security Agent, acting for
and on behalf of itself and all Secured Parties and each successor or assign of
Security Agent and the Secured Parties, its true and lawful attorney-in-fact
with full power (in the name of Borrower or otherwise) to enforce all rights,
interests and remedies of Borrower with respect to the Collateral, including
the right:

 

(i)                                                             to ask, require, demand,
receive, compound and give acquittance for any and all moneys and claims for
money due and to become due under or arising out of the Assigned Agreements or
any of the other Collateral;

 

(ii)                                                          to elect remedies thereunder
and to endorse any checks, documents or other instruments or orders in
connection therewith;

 

(iii)                  to vote as provided herein, demand,
receive and enforce Borrower’s rights with respect to the Collateral;

 

(iv)                  to give appropriate receipts, releases
and satisfactions for and on behalf of and in the name of Borrower or, at the
option of Security Agent, in the name of Security Agent, with the same force
and effect as Borrower could do if this Agreement had not been made;

 

(v)                   to file any claims or take any action or
institute any proceedings in connection therewith which Security Agent may
reasonably deem to be necessary or advisable;

 

(vi)                  to pay, settle or compromise all bills
and claims which may be or become liens or security interests against any or
all of the Collateral, or any part thereof, unless a bond or other security
satisfactory to Security Agent has been provided;

 

(vii)                 upon foreclosure, to do any and every
act which Borrower may do on its behalf with respect to the Collateral or any
part thereof and to exercise any or all of Borrower’s rights and remedies under
any or all of the Assigned Agreements;

 

(viii)                to preserve the validity, perfection and
priority of the liens granted by this Agreement;

 

26

 

(ix)                                                        to, in the name of the
Borrower or its own name, or otherwise, take possession of, receive and indorse
and collect any check, Account, Chattel Paper, draft, note, acceptance or other
Instrument for the payment of moneys due under any Account or General
Intangible;

 

(x)                    to execute, in connection with any sale
or disposition of the Collateral under Section 6, any endorsements,
assignments, bills of sale or other instruments of conveyance or transfer with
respect to all or any part of the Collateral;

 

(xi)                   in the case of any Intellectual
Property, to execute and deliver, and to have recorded, any agreement,
instrument, document or paper as Security Agent may request to evidence
Security Agent’s security interest in such Intellectual Property and the
goodwill and General Intangibles of Borrower relating thereto or represented
thereby;

 

(xii)                  to pay or discharge taxes and liens
levied or placed on or threatened against the Collateral, effect any repair or
pay or discharge any insurance called for by the terms of this Agreement
(including all or any part of the premiums therefor and the costs thereof);

 

(xiii)                 to execute, in connection with any sale
provided for in Section 6, any endorsement, assignment or other instrument
of conveyance or transfer with respect to the Collateral; and

 

(xiv)                to (A) direct any party liable for
any payment under any Collateral to make payment of any moneys due or to become
due thereunder directly to Security Agent or as Security Agent shall direct, (B) ask
or demand for, collect, and receive payment of and receipt for, any moneys,
claims and other amounts due or to become due at any time in respect of or
arising out of any Collateral, (C) sign and indorse any invoice, freight
or express bill, bill of lading, storage or warehouse receipt, draft against
debtors, assignment, verification, notice and other document in connection with
any Collateral, (D) commence and prosecute any suit, action or proceeding
at law or in equity in any court of competent jurisdiction to collect any
Collateral and to enforce any other right in respect of any Collateral, (E) defend
any suit, action or proceeding brought against Borrower with respect to any
Collateral, (F) settle, compromise or adjust any such suit, action or
proceeding and, in connection therewith, give such discharges or releases as Security
Agent may deem appropriate, (G) assign any Intellectual Property, to the
extent assignable, throughout the world for such term or terms, on such
conditions, and in such manner as 

 

27

 

Security
Agent shall in its sole discretion determine, including
the execution and filing of any document necessary to effectuate or record such
assignment; and (H) generally, sell, transfer, pledge and make any
agreement with respect to or otherwise deal with any Collateral as fully and
completely as though Security Agent were the
absolute owner thereof for all purposes, and do, at Security Agent’s option and
Borrower’s expense, at any time, or from time to time, all acts and things that
Security
Agent deems necessary to protect, preserve or realize
upon the Collateral and Security Agent’s and the other
Secured Parties’ security interests therein and to effect the intent of this
Agreement, all as fully and effectively as Borrower might do;

 

provided, however, that Security Agent shall not
exercise any such right unless an Event of Default has occurred and is
continuing.  This power of attorney is a
power coupled with an interest and shall be irrevocable.

 

(b)                                 Motor Vehicles. 
Without limiting the rights and powers of Security Agent under Section 13(a),
Borrower hereby appoints Security Agent as its attorney-in-fact, effective the
date of this Agreement and terminating upon the termination of this Agreement,
for the purpose of, upon the occurrence and during the continuation of an Event
of Default, (i) executing on behalf of Borrower title or ownership
applications for filing with appropriate state agencies to enable Motor
Vehicles now owned or in the future acquired by Borrower to be retitled and
Security Agent to be listed as lien holder as to such Motor Vehicles, (ii) filing
such applications with such state agencies, and (iii) executing such other
documents and instruments on behalf of, and taking such other action in the
name of, Borrower as Security Agent may deem necessary or advisable to
accomplish the purposes of this Agreement (including the purpose of creating in
favor of Security Agent a perfected lien on such Motor Vehicles and exercising
the rights, remedies, powers and privileges of Security Agent under Section 4).  This appointment as attorney-in-fact is
irrevocable and coupled with an interest.

 

(c)                                  Expenses.  The expenses of Security Agent incurred in connection with
actions undertaken as provided in this Section 13, together with
interest thereon at a rate per annum equal to the rate per annum at which
interest would then be payable on past due Loans that are Base Rate Loans under
the Financing Agreement, from the date of payment by Security Agent to the date reimbursed by
Borrower, shall be payable by Borrower to Security Agent on demand and shall
constitute Obligations and be secured by the Liens of the Collateral Documents.

 

(d)                                 Ratification; Powers Coupled With
Interests.  Borrower hereby ratifies all that said
attorneys shall lawfully, in compliance with the terms of the Financing
Documents, and not otherwise acting with gross negligence or 

 

28

 

willful
misconduct, do or cause to be done by virtue hereof.  All powers, authorizations and agencies
contained in this Agreement are coupled with an interest and are irrevocable
until this Agreement is terminated and the security interests created hereby are
released.

 

Section 14. Perfection; Further Assurances.

 

(a)                                  Perfection.  Borrower
agrees that from time to time, Borrower shall promptly execute and deliver all
instruments and documents, and take all action, that may be reasonably
necessary, or that Security Agent may reasonably request, in order to perfect
and protect the assignment and security interest granted or intended to be
granted hereby, or to enable Security Agent to exercise and enforce its rights
and remedies hereunder with respect to any Collateral in accordance with the
terms hereof.  Without limiting the
generality of the foregoing, Borrower shall (i) deliver the Collateral or
any part thereof to Security Agent for the benefit of the Secured Parties as
Security Agent may request, duly endorsed or accompanied by such duly executed
instruments of transfer or assignment, as Security Agent may request, and in
form and substance satisfactory to Security Agent; (ii) deliver to
Security Agent any and all Instruments, endorsed or accompanied by such
instruments of assignment and transfer in such form and substance as Security
Agent may reasonably request; (iii) cooperate with Security Agent in
obtaining, and take such other actions as are necessary or that Security Agent
may reasonably request in order for them to obtain Control (as defined in the
UCC) with respect to all Deposit Accounts, Investment Property, Electronic
Chattel Paper and Letter-of-Credit Rights included in the Collateral, including
(to the extent reasonably requested by Security Agent) (A) in the case of
any Deposit Account for which Security Agent is not the Bank (as defined in the
UCC) at which that Deposit Account is maintained, using commercially reasonable
efforts to cause the Bank to enter into an agreement in such form as Security
Agent may in its reasonable discretion accept and (B) in the case of any
Security Entitlement, using commercially reasonable efforts to cause the
relevant Securities Intermediary to enter into an agreement in such form as
Security Agent may in its reasonable discretion accept; (iv) cause
Security Agent (to the extent reasonably requested by Security Agent) to be
listed as the lienholder on all certificates of title or ownership relating to
Motor Vehicles in the name of Borrower and deliver to Security Agent originals
of all such certificates of title or ownership for such Motor Vehicles together
with the odometer statements for each respective Motor Vehicle; (v) cause
Security Agent to be listed as the lienholder on any certificate of title or
ownership for any other Equipment covered by a certificate of title or
ownership; and (vi) execute and file such financing or continuation
statements, or amendments thereto, including financing statements describing
the Collateral as “all assets now owned or hereafter acquired”, and such

 

29

 

other
instruments, endorsements or notices, as may be reasonably necessary or as
Security Agent may reasonably request, in order to perfect and preserve the
assignments and security interests granted or purported to be granted hereby.

 

(b)                                 Filing of Financing Statement. 
Borrower hereby authorizes Security Agent to file one or more financing
or continuation statements, and amendments thereto, relative to all or any part
of the Collateral, including financing statements describing the Collateral as “all
assets now owned or hereafter acquired”, without the signature of Borrower
where permitted by law, provided, that Security Agent delivers to
Borrower and Project Companies a copy of any such statement or amendment.

 

(c)                                  Filing Costs. 
Borrower or any Project Company shall pay all filing, registration and
recording fees and all refiling, re-registration and re-recording fees, and all
reasonable out-of-pocket expenses incident to the execution and acknowledgment
of this Agreement, and all federal, state, county and municipal stamp taxes and
other taxes, duties, imports, assessments and charges arising out of or in
connection with the execution and delivery of this Agreement, any agreement
supplemental hereto, any financing statements, and any instruments of further
assurance, except as may otherwise be provided in the Financing Agreement.

 

Section 15. Notices.

 

All notices required or permitted under the terms and provisions hereof
shall be in writing and any such notice shall be effective if given in
accordance with the provisions of Section 14.1 of the Financing
Agreement.  Notices to each Project
Company may be given at the address of each Project Company set forth in such Section 14.1
of the Financing Agreement.  Notices to
Borrower may be given at the following address:

 

	
   

  	
  Stetson Holdings, LLC

  
	
   

  	
  c/o First Wind Energy, LLC

  
	
   

  	
  179 Lincoln Street, Suite 500

  
	
   

  	
  Boston, MA 92111

  
	
   

  	
  Attention:
  

  	
  Secretary

  
	
   

  	
  Facsimile:
  

  	
  (617)
  960-2889

  

 

Section 16. Continuing Assignment and Security Interest; Transfer
of Notes.

 

This Agreement shall create a continuing pledge and assignment of and
security interest in the Collateral and shall (a) remain in full force and
effect until the Discharge of Obligations, (b) be binding upon each
Project Company and Borrower, and their respective successors and assigns and (c) inure,
together with the rights and remedies of Security Agent, to the benefit of
Security Agent, the Secured Parties and their respective 

 

30

 

successors, transferees and permitted assigns.  Without limiting the generality of the
foregoing, Security Agent or any Secured Party may assign or otherwise transfer
all or any part of or interest in the Notes, the Commitments or other evidence
of the Obligations owed to them to any other Person to the extent permitted by
and in accordance with the Financing Agreement and such other Person shall
thereupon become vested with all or an appropriate part of the benefits in
respect thereof granted to the Secured Parties herein.  The release of the security interest in any
or all of the Collateral, the taking or acceptance of additional security, or
the resort by Security Agent to any security it may have in any order it may
deem appropriate, shall not affect the liability of any Person on the
indebtedness secured hereby.

 

Section 17. Termination of Security Interest.

 

Upon the Discharge of Obligations, the security interest granted hereby
shall terminate and all rights to the Collateral shall automatically revert to
Borrower.  Upon any such termination,
Security Agent will return promptly all certificates evidencing Borrower’s
ownership interest in each Project Company, and all ownership powers executed
hereunder, to Borrower, and will, at Borrower’s expense, execute and deliver to
Borrower such documents (including UCC-3 termination statements) as Borrower
shall reasonably request to evidence such termination.  If this Agreement shall be terminated or
revoked by operation of law, Borrower will indemnify and hold Security Agent
and the other Secured Parties harmless from any loss, cost or expense which may
be suffered or incurred by Security Agent and the Secured Parties in acting
hereunder in good faith prior to the receipt by Security Agent, its successors,
transferees or assigns, of notice of such termination or revocation.

 

Section 18. Severability.

 

Any provision of this Agreement which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

Section 19. Successors and Assigns.

 

This Agreement shall be binding upon, and inure to the benefit of, the
parties hereto and their respective successors and permitted assigns, provided
however, that none of Borrower nor any Project Company may assign its rights or
obligations hereunder without the prior written consent of Security Agent
unless such an assignment is in connection with a transfer of the Membership
Interest permitted under Section 9(f) or otherwise not in
violation of the Financing Agreement

 

Section 20. No Amendment, Modification.

 

This Agreement may only be amended or modified by an instrument in
writing signed by Borrower, Project Companies and Security Agent, both for
itself and on behalf of any other parties to be charged in accordance with the
terms of this Agreement.

 

31

 

Section 21. Headings.

 

The table of contents and headings of the various sections herein are
for convenience of reference only and shall not define or limit any of the
terms or provisions hereof.

 

Section 22. Liability.

 

The scope of liability of Borrower and the Non-Recourse Parties (as
defined in Article 11 of the Financing Agreement) shall be as set forth in
Article 11 of the Financing Agreement, which is incorporated herein by
this reference.

 

Section 23. References to Other Documents.

 

Subject to the Financing Agreement, all defined terms used in this
Agreement which refer to other documents shall be deemed to refer to such other
documents as they may be amended, supplemented or replaced from time to time,
provided such documents were not amended in breach of a covenant contained in
any agreement to which Borrower, any Project Company or Security Agent is a
party.

 

Section 24. Governing Law.

 

THIS AGREEMENT, INCLUDING ALL MATTERS OF CONSTRUCTION, VALIDITY AND
PERFORMANCE AND MATTERS RELATING TO THE CREATION, VALIDITY, ENFORCEMENT OR
PRIORITY OF THE LIEN OF, AND SECURITY INTERESTS CREATED BY, THIS AGREEMENT IN
OR UPON THE COLLATERAL, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REFERENCE TO THE CONFLICTS OF LAW RULES THEREOF (OTHER THAN SECTION 5-1401
AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), EXCEPT AS
REQUIRED BY MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT THE
VALIDITY OR PERFECTION OF THE LIEN AND SECURITY INTEREST HEREUNDER, OR REMEDIES
HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF
A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

 

Section 25. Execution in Counterparts.

 

This Agreement may be executed in one or more duplicate counterparts, and
when executed and delivered by all the parties hereto, shall constitute a
single binding agreement.

 

Section 26. Reinstatement.

 

This Agreement and the continuing security interest in, and the lien
on, the Collateral created hereunder shall automatically be reinstated, to the
extent permitted by applicable law, if and to the extent that for any reason
any payment by or on behalf of Borrower or any Project Company in respect of
the Obligations is rescinded or must 

 

32

 

otherwise be restored by any holder of the
Obligations, whether as a result of any proceedings in bankruptcy or
reorganization or otherwise.

 

Section 27. Third Party Rights.

 

Nothing in this Agreement, expressed or implied, is
intended or shall be construed to confer upon, or give to any Person, other
than Borrower, Project Companies, Security Agent and the Secured Parties, any
security, rights, remedies or claims, legal or equitable, under or by reason
hereof, or any covenant or condition hereof; and this Agreement and the
covenants and agreements herein contained are and shall be held to be for the
sole and exclusive benefit of Borrower, Project Companies, Security Agent and
the Secured Parties.

 

Section 28. Conflict Among Agreements.

 

In the event of any
conflict between the terms and provisions of this Agreement, the Financing
Agreement, the terms and conditions of the Financing Agreement shall prevail.

 

Section 29. Waiver of Jury Trial.

 

THE PARTIES TO THIS AGREEMENT HEREBY KNOWINGLY, VOLUNTARILY, AND
INTENTIONALLY WAIVE ANY RIGHTS THEY 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 OTHER OPERATIVE DOCUMENT, OR ANY COURSE OF CONDUCT,
COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF
SECURITY AGENT, THE SECURED PARTIES, BORROWER OR ANY PROJECT COMPANY.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR
SECURITY AGENT TO ENTER INTO THIS AGREEMENT.

 

[SIGNATURES
FOLLOW]

 

33

 

IN WITNESS WHEREOF, the parties hereto have caused this Pledge and
Security Agreement to be duly executed by their members and officers thereunto
duly authorized, as of the day and year first above written.

 

	
   

  	
  STETSON HOLDINGS, LLC,

  
	
   

  	
  a Delaware limited liability company, as Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  EVERGREEN WIND POWER V, LLC,

  
	
   

  	
  a Delaware limited
  liability company, as a Project Company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  STETSON WIND II, LLC, a Delaware limited liability company,
  as a Project Company 

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  BNP
  PARIBAS,

  
	
   

  	
  as Security Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Exhibit A

 

List of
assigned agreements and documents

 

(i)                               Energy Hedge;

 

(ii)                            LLC Agreement of Evergreen Wind Power V,
LLC;

 

(iii)                         LLC Agreement of Stetson Wind II, LLC;

 

(iv)                        the insurance policies maintained or
required to be maintained by Borrower or any other Person (to the extent of
Borrower’s right, title and interest therein) under the Financing Agreement,
including any such policies insuring against loss of revenues by reason of
interruption of the operation of the Project and all loss proceeds and other
amounts payable to Borrower thereunder and all Eminent Domain Proceeds;

 

(v)                           to the extent assignable, all other
agreements, including vendor warranties, running to Borrower or assigned to
Borrower relating to the construction, maintenance, improvement, operation or
acquisition of the Project or any part thereof, or transport of material, equipment
and other parts of the Project or any part thereof;

 

(vi)                        any lease or sublease agreements or
easement agreements, including the easement agreements, relating to the Project
or any part thereof or any ancillary facilities, to which Borrower may be or
become a party;

 

(vii)                     and any other agreements to which
Borrower may be or become a party relating to the construction or operation of
the Project or any part thereof;

 

(viii)                  each and every performance bond or
guaranty and similar other document relating to the performance by any party of
any of the Assigned Agreements;

 

(ix)                          all rights of Borrower to receive moneys
due and to become due under or pursuant to the Assigned Agreements and all
claims of Borrower for damages arising out of or for breach of or under the
Assigned Agreements;

 

(x)                             all amendments, modifications,
supplements, restatements, substitutions and renewals to any of the Assigned
Agreements; and

 

(xi)                          all Applicable Permits, including those
described on Exhibit H-2B to the Financing Agreement, except for any such
permit which would be breached or terminated solely by virtue of a security
interest being granted;

 

 

E-1

 

Annex A

 

List of
Pledged Interests

 

1.               Evergreen Wind Power V, LLC Certificate
of Interest No. [    ], issued on
[                ],
certifying that Stetson Holdings, LLC is the owner of the Certificate of
Interest representing a 100% membership interest in Evergreen Wind Power V,
LLC, subject to the terms of the First Amended and Restated Limited Liability
Company Agreement of Evergreen Wind Power 
V, LLC, dated as of April 2, 2007, as amended by that certain First
Amendment to First Amended and Restated Limited Liability Company Agreement of
Evergreen Wind Power V, LLC, dated as of December 11, 2008, as modified by
that certain Membership Interest Transfer Agreement of Evergreen Wind Power V,
LLC, dated as of July 17, 2009, as further amended by that certain Second
Amendment to First Amended and Restated Limited Liability Company Agreement of
Evergreen Wind Power V, LLC, dated as of July 17, 2009, and as further
amended by that certain Third Amendment to First Amended and Restated Limited
Liability Company Agreement of Evergreen Wind Power V, LLC, dated as of the
date hereof (as amended, amended and restated, supplemented or otherwise
modified from time to time).

 

2.               Stetson Wind II, LLC Certificate of
Interest No. [    ], issued on
[                ],
certifying that Stetson Holdings, LLC is the owner of the Certificate of Interest
representing a 100% membership interest in Stetson Wind II, LLC Limited
Liability Company Agreement of Stetson Wind II, LLC, dated July 3, 2007,
as amended by that certain First Amendment to Limited Liability Company
Agreement of Stetson Wind II, LLC, dated December 11, 2008, and as further
amended by that certain Second Amendment to Limited Liability Company Agreement
of Stetson Wind II, LLC, dated as of the date hereof (as amended, amended and
restated, supplemented or otherwise modified from time to time).

 

 

A-1

 

Schedule
A

 

List of
Required Filings

 

1.               UCC-1 Financing Statement naming Stetson
Holdings, LLC, as Debtor and BNP Paribas, in its capacity as Security Agent, as
Secured Party, to be filed with the Secretary of State of the State of
Delaware.

 

 

S-1

 

 

EXHIBIT
E-3

to
Financing Agreement

 

FORM OF
GUARANTY AND SECURITY AGREEMENT

 

(See Tab      )

 

 

EXECUTION
FORM

	
   

  

 

GUARANTY
AND SECURITY AGREEMENT

 

between

 

BNP
PARIBAS,

as Security Agent

 

and

 

STETSON
WIND II, LLC

as Guarantor

 

and

 

STETSON
HOLDINGS, LLC

as Borrower

 

Dated
as of December [    ], 2009

 

	
   

  

 

TABLE OF
CONTENTS

 

	
   

  	
   

  	
  Page

  
	
  Section 1.

  	
  Definitions

  	
  1

  
	
  Section 2.

  	
  Guarantee

  	
  2

  
	
  Section 3.

  	
  Pledge
  and Grant of Security Interest

  	
  8

  
	
  Section 4.

  	
  Obligations
  Secured

  	
  13

  
	
  Section 5.

  	
  Use of
  Collateral

  	
  14

  
	
  Section 6.

  	
  Remedies

  	
  14

  
	
  Section 7.

  	
  Remedies
  Cumulative; Delay Not Waiver

  	
  16

  
	
  Section 8.

  	
  Representations
  and Warranties

  	
  17

  
	
  Section 9.

  	
  Covenants

  	
  19

  
	
  Section 10.

  	
  INTENTIONALLY
  OMITTED

  	
  20

  
	
  Section 11.

  	
  Borrower’s
  Consent and Covenant

  	
  20

  
	
  Section 12.

  	
  Attorney-In-Fact

  	
  20

  
	
  Section 13.

  	
  Perfection;
  Further Assurances

  	
  23

  
	
  Section 14.

  	
  Notices

  	
  24

  
	
  Section 15.

  	
  Continuing
  Assignment and Security Interest; Transfer of Notes

  	
  25

  
	
  Section 16.

  	
  Termination
  of Security Interest

  	
  25

  
	
  Section 17.

  	
  Severability

  	
  26

  
	
  Section 18.

  	
  Successors
  and Assigns

  	
  26

  
	
  Section 19.

  	
  No
  Amendment, Modification

  	
  26

  
	
  Section 20.

  	
  Headings

  	
  26

  
	
  Section 21.

  	
  Liability

  	
  26

  
	
  Section 22.

  	
  Governing
  Law

  	
  26

  
	
  Section 23.

  	
  References
  to Other Documents

  	
  27

  
	
  Section 24.

  	
  Execution
  in Counterparts

  	
  27

  
	
  Section 25.

  	
  Third
  Party Rights

  	
  27

  
	
  Section 26.

  	
  Conflict
  Among Agreements

  	
  27

  
	
  Section 27.

  	
  Waiver
  of Jury Trial

  	
  27

  
	
  Section 28.

  	
  Reinstatement

  	
  27

  

 

 

GUARANTY
AND SECURITY AGREEMENT

 

This
GUARANTY AND SECURITY AGREEMENT (this “Agreement”), dated as of December [    ],
2009, is entered into by and among STETSON WIND II, LLC, a Delaware limited
liability company (“Guarantor”), STETSON HOLDINGS, LLC, a Delaware
limited liability company (“Borrower”), and BNP PARIBAS, as Security
Agent (together with its successors and assigns in such capacity, “Security
Agent”) for each of the Secured Parties.

 

RECITALS

 

A.                                   Borrower has entered into that certain
Financing Agreement, dated as of the date hereof (as amended, amended and
restated, supplemented or otherwise modified from time to time, the “Financing
Agreement”), among Borrower, the financial institutions from time to time
parties thereto (collectively, “Lenders”), the Security Agent, BNP
Paribas, as joint Lead Arranger, Joint Bookrunner, Administrative Agent for the
Lenders, and Issuing Bank and HSH Nordbank AG, New York Branch, as Joint Lead
Arranger, Joint Bookrunner and as Co-Syndication Agent, pursuant to which the
Lenders and the Issuing Bank have agreed to extend credit to Borrower in the
amounts specified and on the terms and subject to the conditions set forth
therein.

 

B.                                     Borrower is the sole member and owns 100%
of all issued and outstanding membership interests in Guarantor.  The proceeds of the Loans will be used, among
other purposes, for the ownership and operation of certain wind electricity
generating assets in Maine by Guarantor. 
Guarantor agrees to guarantee the obligations of Borrower under the
Financing Agreement and the other Financing Documents and to provide a security
interest in the collateral described in this Agreement.

 

C.                                     Guarantor acknowledges that it will
benefit if the Lenders and the Issuing Bank extend credit to Borrower pursuant
to the Financing Agreement.

 

D.                                    As a condition precedent to the
effectiveness of the Financing Agreement, Guarantor shall have executed this
Agreement.

 

AGREEMENT

 

In
consideration of the foregoing premises and to induce the Lenders and the
Issuing Bank to extend credit pursuant to the Financing Agreement, and for
other good and valuable consideration, the receipt and adequacy of which are
hereby acknowledged, Guarantor hereby agrees with Security Agent for the
benefit of the Secured Parties as follows:

 

Section 1.                                            Definitions.

 

(a)                                  Defined Terms. 
Unless otherwise defined herein or unless the context otherwise
requires, all capitalized terms used in this Agreement, including its preamble
and recitals, shall have the same meaning provided in Exhibit A to the
Financing Agreement, or, if not defined therein, shall have the 

 

1

 

meaning provided in the Uniform Commercial Code, as
the same from time to time shall be in effect in the State of New York (the “UCC”);
provided, however, in the event that, by reason of mandatory
provisions of law, any or all of the perfection or priority of the security
interest in any Collateral (as defined below) is governed by the Uniform
Commercial Code as in effect in a jurisdiction other than the State of New
York, the term “UCC” shall mean the Uniform Commercial Code as in effect in
such other jurisdiction for purposes of the provisions hereof relating to such
perfection or priority and for purposes of definitions related to such
provisions.  The Rules of
Interpretation contained in Exhibit A to the Financing Agreement shall
apply to this Agreement.

 

(i)                                     Certain Uniform Commercial Code Terms.  As used herein, the terms “Accession”,
“Account”, “As-Extracted Collateral”, “Chattel Paper”, “Commodity
Account”, “Commodity Contract”, “Deposit  Account”, “Commercial
Tort Claim”, “Document”, “Electronic Chattel Paper”, “Equipment”,
“Fixture”, “General Intangible”, “Goods”, “Instrument”,
“Inventory”, “Investment Property”, “Letter-of-Credit Right”,
“Motor Vehicle”, “Payment Intangible”, “Proceeds”, “Promissory
Note” and “Software” have the respective meanings set forth in Article 9
of the UCC, and the terms “Certificated Security”, “Financial Asset”,
“Securities Account”, “Securities Intermediary”, “Security”,
“Security Entitlement” and “Software” have the respective
meanings set forth in Article 8 of the UCC.

 

Section 2.                                            Guarantee.

 

(a)                                  Guarantee.  Guarantor
hereby guarantees to Security Agent the timely payment in full when due
(whether at stated maturity, by acceleration or otherwise) and performance of
the Obligations in accordance with their terms. 
Guarantor hereby further agrees that if Borrower fails to pay in full
when due (whether at stated maturity, by acceleration or otherwise) all or any
part of the Obligations, Guarantor will immediately pay the same, upon demand,
and that, in the case of any extension of time of payment or renewal of all or
any part of the Obligations, it will timely pay the same in full when due
(whether at extended maturity, by acceleration or otherwise) in accordance with
the terms of that extension or renewal. 
This Agreement is irrevocable and unconditional in nature and is made
with respect to any Obligations now existing or in the future arising.  The liability of Guarantor under this
Agreement shall continue until the full satisfaction of all Obligations.  This Agreement is a guarantee of due and
punctual payment and performance and is not merely a guarantee of collection.

 

(b)                                 Obligations Unconditional. 
The obligations of Guarantor under this Agreement shall be continuing,
irrevocable, absolute and unconditional 

 

2

 

irrespective of the value, genuineness, validity,
regularity or enforceability of any Financing Document or any other agreement
or instrument referred to therein or herein, or any substitution, release or
exchange of any guarantee of or security for any of the Obligations, and, to
the fullest extent permitted by applicable law, irrespective of any other
circumstance whatsoever that might otherwise constitute a legal or equitable
discharge or defense of a surety or guarantor (other than payment in full of
the Obligations, subject to Section 2(d)), it being the intent of
this Section 2(b) that the obligations of Guarantor hereunder
shall be absolute and unconditional under any and all circumstances.  Without limiting the generality of the
foregoing, it is agreed that the occurrence of any one or more of the following
shall not alter or impair the liability of Guarantor hereunder, which shall
remain absolute and unconditional as described above without regard to and not
be released, discharged or in any way affected (whether in full or in part) by:

 

(i)                                     at any time or from time to time, without
notice to Guarantor, the time for any performance of or compliance with any of
the Obligations shall be extended, or such performance or compliance shall be
waived;

 

(ii)                                  any of the acts mentioned in any of the
provisions of any Financing Document shall have occurred;

 

(iii)                               the maturity of any of the Obligations
shall be accelerated, or any of the Obligations shall be modified, supplemented
or amended in any respect, or any right under any Financing Document or any
other agreement or instrument referred to therein or herein shall be waived or
any guarantee of any of the Obligations or any security therefor shall be
released or exchanged in whole or in part or otherwise dealt with;

 

(iv)                              any lien granted to, or in favor of,
Security Agent as security for any of the Obligations shall fail to be
perfected; or

 

(v)                                 any bankruptcy, insolvency, reorganization,
arrangement, readjustment of debt, liquidation or dissolution proceeding
commenced by or against Security Agent, Borrower, Guarantor or any other
Person, including any discharge of, or bar or stay against collecting, all or
any part of the Obligations (or any interest on all or any part of the Obligations)
in or as a result of any such proceeding.

 

Should, at any
time, any money due or owing under this Agreement not be recoverable from
Guarantor for any reason, whether by operation of law or otherwise, then, in
any such case, such money shall nevertheless be recoverable by Security Agent
from the proceeds of the Collateral (as 

 

3

 

defined below)
as though Guarantor were the principal debtor in respect thereof and not merely
a pledgor hereunder.

 

(c)                                  Waiver.

 

(i)                                     Guarantor hereby expressly waives, to the
fullest extent permitted by law, promptness, diligence, presentment, demand for
payment or performance and protest; filing of claims with any court; any
proceeding to enforce any provision of the Financing Documents; notice of
acceptance of and reliance on this Agreement by the Secured Parties, notice of
the creation of any Obligations, and any other notice whatsoever (other than
notices specifically provided under the Financing Documents); any requirement that
Security Agent exhaust any right, power or remedy or proceed or take any other
action against Borrower or any other Person under any Financing Document to
which it is a party or any lien or encumbrance on, or any claim of payment
against, any property of Borrower or any other agreement or instrument referred
to therein, or any other Person under any guarantee of, or lien securing, or
claim for payment of, any of the Obligations, any right to require a proceeding
by Security Agent first against Borrower or any other Person whether to marshal
any assets or to exhaust any right or take any action against Borrower or any
other Person or any collateral or otherwise, any diligence in collection or
protection for realization upon any Obligation; any obligation hereunder or any
collateral security for any of the foregoing; any right of protest,
presentment, notice or demand whatsoever, and any claims of waiver, release,
surrender, alteration or compromise and all defenses, set-offs, counterclaims,
recoupments, reductions, limitations, impairments or terminations, whether
arising hereunder or otherwise. 
Guarantor further waives (A) any requirement that any other Person
be joined as a party to any proceeding for the enforcement by Security Agent of
any Obligation and (B) the filing of claims by Security Agent in the event
of the receivership or bankruptcy of Borrower or any other guarantor.  Security Agent shall have the right to bring
suit directly against Guarantor with respect to the obligations owed to
Security Agent hereunder either prior to or concurrently with any lawsuit
against, or without bringing any suit against Borrower, any other guarantor or
any other Person.

 

(ii)                                  The enforceability and effectiveness of
this Agreement and the liability of Guarantor, and the rights, remedies, powers
and privileges of Security Agent, under this Agreement shall not be affected,
limited, reduced, discharged or terminated, and Guarantor hereby expressly
waives to the fullest extent permitted by law any defense now or in the future
arising by reason of:

 

4

 

A.                                   the illegality, invalidity or
unenforceability of all or any part of the Obligations, any Financing Document
or any agreement, security document, guarantee or other instrument relating to
all or any part of the Obligations;

 

B.                                     any disability or other defense with
respect to all or any part of the Obligations of Borrower or Guarantor,
including the effect of any statute of limitations that may bar the enforcement
of all or any part of the Obligations;

 

C.                                     the illegality, invalidity or
unenforceability of any security or guarantee for all or any part of the
Obligations or the lack of perfection or continuing perfection or failure of
the priority of any lien or encumbrance on any collateral for all or any part
of the Obligations;

 

D.                                    the cessation, for any cause whatsoever, of
the liability of Borrower in respect of all or any part of the Obligations
(other than, subject to Section 2(d), by reason of the full payment
and performance of all Obligations);

 

E.                                      other than notice expressly required under
this Agreement, any failure of Security Agent to give notice of sale or other
disposition of any collateral (including any notice of any judicial or
nonjudicial foreclosure or sale of any interest in real property serving as
collateral for all or any part of the Obligations) for all or any part of the
Obligations to Borrower, Guarantor or any other Person or any defect in, or any
failure by Borrower, Guarantor or any other Person to receive, any notice that
may be given in connection with any sale or disposition of any collateral for
all or any part of the Obligations;

 

F.                                      any failure of Security Agent to comply
with applicable laws in connection with the sale or other disposition of any
collateral (other than the Collateral) for all or any part of the Obligations;

 

G.                                     any judicial or nonjudicial foreclosure or
sale of, or other election of remedies with respect to, any interest in real
property or other collateral serving as security for all or any part of the
Obligations, even though such foreclosure, sale or election of remedies may
impair the subrogation rights of Borrower or Guarantor or may preclude Borrower
or Guarantor from obtaining reimbursement, contribution, indemnification or
other recovery from any other Guarantor, Borrower or any other Person and even
though

 

5

 

Borrower
or Guarantor may not, as a result of such foreclosure, sale or election of
remedies, be liable for any deficiency;

 

H.                                    any act or omission of Security Agent or
any other Person that directly or indirectly results in or aids the discharge
or release of Borrower or any part of the Obligations or any security or
guarantee (including any letter of credit) for all or any part of the
Obligations by operation of law or otherwise;

 

I.                                         any law which provides that the obligation
of a surety or guarantor must neither be larger in amount nor in other respects
more burdensome than that of the principal or which reduces a surety’s or
guarantor’s obligation in proportion to the principal obligation;

 

J.                                        any counterclaim, set-off or other claim
which Borrower has or alleges to have with respect to all or any part of the
Obligations;

 

K.                                    any failure of Security Agent to file or enforce
a claim in any bankruptcy or other proceeding with respect to any Person;

 

L.                                      the election by Security Agent, in any
bankruptcy proceeding of any Person, of the application or non-application of Section 1111(b)(2) of
the United States Bankruptcy Code;

 

M.                                 any extension of credit or the grant of any
lien or encumbrance under Section 364 of the United States Bankruptcy
Code;

 

N.                                    any use of cash collateral under Section 363
of the United States Bankruptcy Code;

 

O.                                    any agreement or stipulation with respect
to the provision of adequate protection in any bankruptcy proceeding of any
Person;

 

P.                                      the avoidance of any lien or encumbrance in
favor of Security Agent for any reason;

 

Q.                                    any bankruptcy, insolvency, reorganization,
arrangement, readjustment of debt, liquidation or dissolution proceeding
commenced by or against any Person, including any discharge of, or bar or stay
against collecting, all or any

 

6

 

part of
the Obligations (or any interest on all or any part of the Obligations) in or
as a result of any such proceeding;

 

R.                                     any action taken by Security Agent that is
authorized by this Section 2(c) or otherwise in this Agreement
or by any other provision of any Financing Document or any omission to take any
such action; or

 

S.                                      any other circumstance whatsoever that
might otherwise constitute a legal or equitable discharge or defense of a
surety or Guarantor.

 

(d)                                 Reinstatement. 
This Agreement, the security interest in, and the lien on, the
Collateral (as defined below), and the obligations of Guarantor under this
Agreement, shall be automatically reinstated if and to the extent that for any
reason any payment  by or on behalf of
Guarantor or Borrower in respect of the Obligations is rescinded or must be otherwise
restored by any holder of any of the Obligations, whether as a result of any
proceedings in bankruptcy or reorganization or otherwise.  Guarantor agrees that it will indemnify
Security Agent on demand for all reasonable costs and expenses (including
reasonable and reasonably documented fees of counsel) incurred by Security
Agent in connection with such rescission or restoration, including any such
costs and expenses incurred in defending against any claim alleging that such
payment constituted a preference, fraudulent transfer or similar payment under
any bankruptcy, insolvency or similar law.

 

(e)                                  Subrogation. 
Guarantor hereby waives any right of subrogation or contribution,
whether arising by contract or operation of law (including, without limitation,
any such right arising under any bankruptcy, insolvency or other similar law)
or otherwise by reason of any payment by it pursuant to the provisions of this
Agreement until the Obligations shall have been paid and performed in full.  If any amount shall be paid to Guarantor on
account of such subrogation rights at any time prior to the indefeasible and
unconditional payment, discharge or performance in full of the Obligations,
such amount shall be held in trust for the benefit of Security Agent (if applicable)
and shall forthwith be paid to Security Agent to be credited and applied upon
and against the Obligations, to the extent then matured, in accordance with the
terms of the relevant Financing Documents or, to the extent not then matured or
existing, be held by Security Agent as collateral security for the Obligations.

 

(f)                                    Remedies.  Guarantor
agrees that, as between Guarantor and Security Agent, any Obligations of
Borrower to the Secured Parties under any of the Financing Documents to which
Borrower is a party may be declared to be forthwith due and payable
notwithstanding any stay, injunction or other prohibition preventing such
declaration (or such Obligations from

 

7

 

becoming
automatically due and payable) as against Borrower and that, in the event of
such declaration (or such Obligations being deemed to have become automatically
due and payable), such Obligations (whether or not due and payable by Borrower)
shall forthwith be deemed to have become due and payable by Guarantor for
purposes of this Agreement.  For the
avoidance of doubt, it is understood and agreed that any amount paid by
Guarantor pursuant to the immediately preceding sentence may be applied to the
payment or prepayment (as the case may be) of the Obligations of Borrower.  Each of the obligations of Guarantor under
this Agreement is separate and independent of each other obligation of
Guarantor hereunder and separate and independent of the Obligations, and
Guarantor agrees that a separate action or actions may be brought and
prosecuted by Security Agent against Guarantor to enforce this Agreement,
irrespective of whether any action is brought by Security Agent against
Borrower or any other guarantor under any relevant Financing Document or
whether Borrower or any other guarantor is joined in any such action or
actions.

 

(g)           Continuing Obligation. 
The obligations of Guarantor provided in this Section 2 are
continuing obligations and shall apply to all Obligations whenever arising.

 

(h)           Subordination of Indebtedness of Borrower.  Guarantor agrees that any Debt now or in the
future owed to it by Borrower or by any other guarantor is hereby subordinated
in right of payment to their prior payment in full in cash of the
Obligations.  Without limiting the
generality of the foregoing, if the Security Agent so requests, any such Debt
shall be collected, enforced and received by Guarantor as trustee for the
Secured Parties and shall be paid over to the Security Agent (for the benefit
of the Secured Parties) in kind on account of the Obligations, upon the
occurrence and during the continuation of an Event of Default.  If, after request by the Security Agent, upon
the occurrence and during the continuation of an Event of Default, Guarantor
fails to collect or enforce any such indebtedness or to pay the proceeds of
that indebtedness to the Security Agent, the Security Agent as Guarantor’s
attorney-in-fact may, upon the occurrence and during the continuation of an
Event of Default, do such acts and sign such documents in Guarantor’s name and
on Guarantor’s behalf as the Security Agent considers necessary or desirable to
effect that collection, enforcement or payment, the Security Agent being hereby
appointed Guarantor’s attorney-in-fact for that purpose (and such appointment
is irrevocable and is coupled with an interest) and in accordance with Section 12
of this Agreement.

 

Section 3.               Pledge and Grant of Security Interest.

 

(a)           Granting Clause.  To
secure the timely payment and performance of the Obligations, Guarantor does
hereby assign, grant and pledge to Security Agent, on behalf of and for the
benefit of the Secured Parties, a continuing 

 

8

 

security
interest in all estate, right, title and interest of Guarantor in, to and under
all assets of Guarantor, whether now owned or hereafter existing or acquired,
including all estate, right, title and interest of Guarantor in, to and under
the following (collectively, the “Collateral”):

 

(i)                    each of the agreements and documents listed on Exhibit A,
in each case, as amended, amended and restated, supplemented or otherwise
modified from time to time (each, an “Assigned Agreement” and
collectively, the “Assigned Agreements”) and all of Guarantor’s rights
thereunder;

 

(ii)                   all Accounts;

 

(iii)                  all As-Extracted Collateral;

 

(iv)                  all Chattel Paper (including Electronic Chattel
Paper);

 

(v)                   all Deposit Accounts;

 

(vi)                  all Documents;

 

(vii)                 all Equipment (including, for the avoidance of doubt,
all wind turbines);

 

(viii)                all Fixtures;

 

(ix)                   all General Intangibles;

 

(x)                    all Goods not covered by the other clauses of this Section 3,
if any;

 

(xi)                   all Instruments, including all Promissory Notes;

 

(xii)                  all inventions, processes, production methods,
proprietary information (including operating data and wind resource data
related to the Stetson II Project), know how, maps, plans, specifications,
architectural, engineering, construction or shop drawings, route surveys,
engineering reports, manuals and similar materials in which Guarantor has an
interest, and all payment and performance bonds or warranties or guaranties
relating to the Stetson II Project and all of Guarantor’s rights under and in
patents, patent licenses, copyrights, trademarks and trade names, trade secrets
and any replacements, renewals or substitutions for any of the foregoing
(collectively, “Intellectual Property”);

 

(xiii)                 all Inventory;

 

(xiv)                all Motor Vehicles;

 

9

 

(xv)                 all Investment Property not covered by other clauses
of this Section 3, including all Securities, all Securities
Accounts and all Security Entitlements with respect thereto and Financial
Assets carried therein, and all Commodity Accounts and Commodity Contracts;

 

(xvi)                all Letter-of-Credit Rights;

 

(xvii)               Payment Intangibles;

 

(xviii)              Software;

 

(xix)                 all Commercial Tort Claims arising out of, relating to
or in connection with all or any part of the Inventory, Equipment or Documents
of Borrower;

 

(xx)                  all cash and cash instruments;

 

(xxi)                 all other tangible and intangible personal property
whatsoever of the Guarantor; and

 

(xxii)                all claims of Guarantor for damages arising out of or
for breach of or default relating to the Collateral; and

 

(xxiii)               all Proceeds of any of the Collateral, all Accessions
to and substitutions and replacements for, any of the Collateral, and all
offspring, rents, profits and products of any of the Collateral.

 

The foregoing notwithstanding, the term “Collateral” shall not include (i) contracts
and agreements which by their terms or by operation of law prohibit or do not
allow assignment or which would become void solely by virtue of a security
interest being granted therein, in each case only for so long as such restriction
is in place and no such restriction was agreed with the intent to undermine the
security interest granted therein, or (ii) any Applicable Permits or other
permits or any insurance policies that by their terms or by operation of law
would become void, voidable, terminable or revocable or in respect of which
Guarantor would be deemed to be in breach or default thereunder if pledged or
assigned hereunder or if a security interest therein were granted hereunder, to
the extent necessary to avoid such voidness, voidability, revocability, breach
or default.

 

(b)           Delivery of Agreements. 
Guarantor has heretofore delivered or concurrently with the delivery
hereof is delivering to Security Agent, an executed counterpart or certified
copy of each of the Assigned Agreements in existence on the date hereof.  Guarantor will likewise, to the extent
required under the Financing Agreement deliver to Security Agent a copy of an
executed counterpart or certified copy of each 

 

10

 

Additional
Project Document and each future lease or future easement relating to the
Stetson II Project or any part thereof and amendments and supplements to the
foregoing, included in the Collateral, as they are entered into by Guarantor
promptly upon the execution thereof. 
Notwithstanding anything to the contrary contained herein, no such
Additional Project Document, or material future lease, or other material
agreement related to the Stetson II Project may be entered into by Guarantor
without the prior written approval of Security Agent, except as otherwise
permitted under the Financing Agreement.

 

(c)           Continuing Liability Under Assigned Agreements.  Notwithstanding anything to the contrary
contained herein, (a) Guarantor shall remain liable under each of the
Assigned Agreements to which it is a party to perform all of the obligations
undertaken by it thereunder, all in accordance with and pursuant to the terms
and provisions thereof, and (b) Security Agent shall have no obligation or
liability under any of such Assigned Agreements by reason of or arising out of
this Agreement, nor shall Security Agent be required or obligated in any manner
to perform or fulfill any obligations of Guarantor thereunder or to make any
payment or inquiry as to the nature or sufficiency of any payment received by
it, or present or file any claim, or take any action to collect or enforce the
payment of any amounts which may have been assigned to it or to which it may be
entitled at any time.

 

(d)           Defaults Under Assigned Agreements.  If a default by Guarantor under any of the
Assigned Agreements shall occur and be continuing, and if such default could
reasonably be expected to result in a Material Adverse Effect as determined by
Administrative Agent (with consent of Required Applicable Lenders), then, upon
ten (10) Business Days’ notice to Guarantor (or, if the applicable
Assigned Agreement has a cure period of less than twenty (20) days with respect
to defaults, then such ten (10) Business Days notice period shall be reduced
to the number of days which is half of the number of days provided to cure any
such default under such Assigned Agreement), Security Agent shall, at its
option, be permitted (but not obligated) to remedy any such default either
pursuant to the terms of any Consent in respect of such Assigned Agreement or
otherwise by giving written notice of such intent to Guarantor and to the
parties to the Assigned Agreement or Assigned Agreements for which Security
Agent intends to remedy the default. 
After giving such notice of its intent to cure such default and upon the
commencement thereof, Security Agent will proceed to cure such default.  Any cure by Security Agent of Guarantor’s
default under any of the Assigned Agreements shall not be construed as an
assumption by Security Agent or any other Secured Party of any obligations,
covenants or agreements of Guarantor under such Assigned Agreement or any other
Assigned Agreement, and neither Security Agent nor any other Secured Party
shall be liable to Guarantor or any other Person as a result 

 

11

 

of any
actions undertaken by Security Agent in curing or attempting to cure any such
default, except as otherwise set forth in the Financing Agreement or any
applicable Consent.  This Agreement shall
not be deemed to release or to affect in any way the obligations of Guarantor
under the Assigned Agreements.

 

(e)           Intellectual Property. 
For the purpose of enabling Security Agent to exercise its rights,
remedies, powers and privileges under Section 6 at that time or
times as Security Agent is lawfully entitled to exercise those rights,
remedies, powers and privileges, and for no other purpose, Guarantor hereby
grants to Security Agent, to the extent assignable or licensable in a manner
consistent with this Agreement and without payment of any royalty or
compensation, an irrevocable, nonexclusive license (exercisable without payment
of royalty or other compensation to Guarantor) to use, assign, license or
sublicense any of the Intellectual Property of Guarantor, together with
reasonable access to all media in which any of the licensed items may be
recorded or stored and to all computer programs used for the compilation or
printout of those items.

 

(f)            Preservation of Security Interests.  Guarantor shall:

 

(i)            upon the acquisition after the date of this Agreement
by Guarantor of any Certificated Securities, Instruments, Deposit Accounts,
other Investment Property, Electronic Chattel Paper, Letter-of Credit Rights,
Motor Vehicles or other Equipment covered by a certificate of title or
ownership promptly (x) take such action with respect to that Collateral as
is specified for that type of Collateral in Section 13 and (y) take
all such other actions, and authenticate or sign and file or record such other
records or instruments, as are necessary or as Security Agent may reasonably
request to create, perfect and establish the priority of the liens granted by
this Agreement in any and all of the Collateral, to preserve the validity,
perfection or priority of the liens granted by this Agreement in any and all of
the Collateral or to enable Security Agent to exercise its remedies, rights,
powers and privileges under this Agreement.

 

(ii)           upon Guarantor’s acquiring, or otherwise becoming
entitled to the benefits of, any Intellectual Property or upon or prior to
Guarantor’s filing, either directly or through Security Agent, any licensee or
any other designee, of any application with any Governmental Authority for any
Intellectual Property, in each case after the date of this Agreement, execute
and deliver such contracts, agreements and other instruments as Security Agent
may reasonably request to create, perfect and establish the priority of the
liens granted by this Agreement in that Intellectual Property.

 

12

 

(iii)          whether with respect to Collateral as of the date of
this Agreement or Collateral in which Guarantor acquires rights in the future,
authorize, give, authenticate, execute, deliver, file or record any and all
financing statements, notices, contracts, agreements or other records or
instruments, obtain any and all Applicable Permits, and take all such other
actions, as are necessary or as Security Agent may reasonably request to
create, perfect and establish the priority of the liens granted by this
Agreement in any and all of the Collateral, to preserve the validity,
perfection or priority of the liens granted by this Agreement in any and all of
the Collateral or to enable Security Agent to exercise and enforce its
remedies, rights, powers and privileges under this Agreement.

 

(iv)          furnish to Security Agent from time to time statements
and schedules further identifying and describing the Collateral pledged by
Guarantor hereunder and such other reports in connection with the Collateral
pledged by Guarantor hereunder as Security Agent may reasonably request, all in
reasonable detail.

 

(g)           Commercial Tort Claims. 
Guarantor agrees that, if it shall acquire any interest in any
Commercial Tort Claim (whether from another Person or because such Commercial
Tort Claim shall have come into existence), (i) Guarantor shall,
immediately upon such acquisition, deliver to Security Agent, in each case in
form and substance reasonably satisfactory to Security Agent, a notice of the
existence and nature of such Commercial Tort Claim containing a reasonably
specific description of such Commercial Tort Claim, certified by Guarantor as
true, correct and complete, (ii) the provisions of Section 3  shall apply to such Commercial Tort Claim
(and Guarantor authorizes Security Agent to supplement this Agreement with a
description of such Commercial Tort Claim if Guarantor fails to deliver the
supplement described in clause (i)), and (iii) Guarantor shall execute and
deliver to Security Agent, in each case in form and substance reasonably
satisfactory to Security Agent, any certificate, agreement and other document,
and take all other action, deemed by Security Agent to be reasonably necessary
or appropriate for Security Agent to obtain, on behalf of the Secured Parties,
a first-priority, perfected security interest in all such Commercial Tort
Claims.

 

Section 4.               Obligations Secured.

 

This Agreement and all of the Collateral hereunder
assigned to Security Agent, for the benefit of Secured Parties, secure the
payment and performance when due of all Obligations to Security Agent and the
other Secured Parties under the Financing Documents.

 

13

 

Section 5.               Use of Collateral.

 

So long as no Event of Default has occurred and is
continuing, Guarantor reserves the right to, and shall be entitled to, use and
possess the Collateral and exercise all of its right, title and interest in, to
and under the Collateral, including under the Assigned Agreements and to
receive and use (subject to the terms of the Financing Agreement) all income,
profit and other distributions in respect of the Collateral.  Provided that no Event of Default shall have
occurred and be continuing, Guarantor shall be permitted to exploit, use,
enjoy, protect, license, sublicense, assign, sell, dispose of or take other
actions with respect to the Intellectual Property of Borrower in the ordinary
course of its business to the extent permitted by the Financing Agreement and the
other Operative Documents.

 

Section 6.               Remedies.

 

(a)           Remedies Upon Event of Default.  Subject to the terms of the Financing
Documents, if an Event of Default has occurred and is continuing, Security
Agent shall have the right, at its election and at the direction of the
Required Applicable Lenders, but not the obligation, to do any of the
following:

 

(i)            demand, sue for, collect or receive any money or
property at any time payable to or receivable by Guarantor on account of or in
exchange for all or any part of the Collateral;

 

(ii)           proceed to protect and enforce the rights vested in it
by this Agreement, including the right to cause all revenues hereby pledged as
security and all other moneys pledged hereunder to be paid directly to it, and
to enforce its rights hereunder to such payments and all other rights hereunder
by such appropriate judicial proceedings as it shall deem most effective to
protect and enforce any of such rights, either at law or in equity or
otherwise, whether for specific enforcement of any covenant or agreement, or in
aid of the exercise of any power therein or herein granted, or for any
foreclosure hereunder and sale under a judgment or decree in any judicial
proceeding, or to enforce any other legal or equitable right vested in it by
this Agreement or by law;

 

(iii)          cause any action at law or suit in equity or other
proceeding to be instituted and prosecuted to collect any Collateral or enforce
any Obligation or rights hereunder or included in the Collateral, including
specific enforcement of any covenant or agreement contained herein or in any
Assigned Agreement, or to foreclose or enforce the security interest in all or
any part of the Collateral granted herein, or to enforce any other legal or
equitable right vested in it by this Agreement or by law;

 

(iv)          sell or otherwise dispose of any or all of the
Collateral or cause all or any part of the Collateral to be sold or otherwise
disposed of in 

 

14

 

one or
more sales or transactions, at such prices as Security Agent may deem
commercially reasonable, and for cash or on credit or for future delivery,
without assumption of any credit risk, at any broker’s board or at public or
private sale, without demand of performance or notice of intention to sell or
of time or place of sale (except such notice as is required by applicable
statute and cannot be waived, in which case such notice shall be in accordance
with the provisions hereof to extent permitted by applicable law), it being
agreed that Security Agent may be a purchaser on behalf of the Secured Parties
or on its own behalf at any such sale and that Security Agent, any Secured
Party or any other Person who may be a bona fide purchaser for value of any or
all of the Collateral without notice of any claims of any or all of the
Collateral so sold shall thereafter hold the same absolutely, free from any
claim or right of whatsoever kind, including any equity of redemption, of
Guarantor, any such demand, notice or right and equity being hereby expressly
waived and released;

 

(v)           incur reasonable expenses, including reasonable
attorneys’ fees, consultants’ fees, and other costs appropriate to the exercise
of any right or power under this Agreement;

 

(vi)          perform any obligation of Guarantor hereunder or under
any other Financing Document or Assigned Agreement, and make payments,
purchase, contest or compromise any encumbrance, charge, or lien, and pay taxes
and expenses, without, however, any obligation to do so;

 

(vii)         take possession of the Collateral and render it
usable, and repair and renovate the same, without, however, any obligation to
do so, and enter upon the Project Site or any other location where the same may
be located for that purpose, control, manage, operate, rent and lease the Collateral,
either separately or in conjunction with the Stetson II Project, collect all
rents and income from the Collateral and apply the same in accordance with the
Financing Documents;

 

(viii)        secure the appointment of a receiver for Guarantor or Borrower and/or
the Collateral or any part thereof without any prior notice to Borrower or
Guarantor;

 

(ix)           require Guarantor to assemble the Collateral at the
expense of Guarantor and (to the extent moveable) make it available to Security
Agent at a place to be designated by Security Agent which is reasonably
convenient to both parties;

 

15

 

(x)            require Guarantor to take any actions that are
necessary or requested by Security Agent to preserve the value of the Collateral
and the validity, perfection or priority of the liens granted by this Agreement
in any portion of the Collateral; or

 

(xi)           exercise any other or additional rights or remedies
granted to a secured party under the UCC.

 

(b)           Minimum Notice Period. 
If, pursuant to applicable law, prior notice of any such action is
required to be given to Guarantor, Guarantor hereby acknowledges that the
minimum time required by such applicable law, or ten (10) Business Days if
no minimum is specified, shall be deemed a reasonable notice period.  Security Agent shall not be obligated to make
any sale of Collateral regardless of notice of sale having been given.  Security Agent may adjourn any public or
private sale from time to time by announcement at the time and place fixed
therefor, and such sale may, without further notice, be made at the time and
place to which it was so adjourned.

 

(c)           Payment of Costs. 
The costs and expenses of Security Agent incurred in
connection with actions undertaken to enforce, protect and preserve any of its
rights and claims under this Agreement, shall be payable as provided in the
Financing Documents.

 

(d)           Application of Proceeds. 
Subject to the terms of the the other Financing Documents, Security
Agent shall apply the net proceeds of any sale or other realization of all or
any part of the Collateral in accordance with the Financing Agreement.  In the event that the proceeds of any sale or
other realization upon the Collateral by Security Agent are insufficient to pay
all Obligations, Guarantor shall be liable for the deficiency as calculated in
accordance with the the other Financing Documents.  Any excess proceeds after full satisfaction
of the Obligations shall be returned promptly to Guarantor.

 

Section 7.               Remedies Cumulative; Delay Not Waiver.

 

(a)           Remedies Cumulative.  No
right, power or remedy herein conferred upon or reserved to Security Agent or
the Secured Parties is intended to be exclusive of any other right, power or
remedy, and every such right, power and remedy shall, to the extent permitted
by law, be cumulative and in addition to every other right, power and remedy
given hereunder or now or hereafter existing at law or in equity or
otherwise.  The assertion or employment
of any right or remedy hereunder, or otherwise, shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

 

16

 

(b)           No Waiver.  No
delay or omission of Security Agent to exercise any right or power accruing
upon the occurrence and during the continuation of an Event of Default shall
impair any such right or power of Security Agent, nor shall it be construed to
be a waiver of any such Event of Default or an acquiescence therein.  Every power and remedy given by this
Agreement may be exercised from time to time, and as often as shall be deemed
expedient, by Security Agent upon the occurrence and during the continuation of
an Event of Default. Each and every default by Guarantor in payment hereunder
shall give rise to a separate cause of action hereunder, and Security Agent may
enforce its security interest in concurrent or successive actions and in one or
several consolidated or independent judicial actions or lawfully taken
nonjudicial proceedings, or both.

 

(c)           Use of Agents.  Security
Agent may perform any of its rights and duties hereunder by or through agents
and is entitled to retain counsel and to act in reliance upon the advice of
such counsel concerning all matters pertaining to its rights and duties
hereunder.

 

Section 8.               Representations and Warranties.

 

(a)           Guarantor has not assigned any of its rights under the
Assigned Agreements or any of the Collateral except as provided in this
Agreement and the other Financing Documents.

 

(b)           The Assigned Agreements have not been amended
since the date of their execution, except as otherwise disclosed to Security
Agent, and are in full force and effect. 
There exists no default, or event that with the passage of time, the
giving of notice or both would become a default by Guarantor under the Assigned
Agreements.

 

(c)           Guarantor (i) has the power and authority to
execute, deliver and perform its obligations under the Financing Documents, the
Assigned Agreements and this Agreement, and to pledge and assign the
Collateral; (ii) has taken all necessary action to authorize the
execution, delivery and performance of the Financing Documents, the Assigned
Agreements and this Agreement; and (iii) has duly executed and delivered
the Financing Documents, the Assigned Agreements and this Agreement.  The Financing Documents, the Assigned
Agreements and this Agreement constitute the legal, valid and binding
obligations of Guarantor, enforceable in accordance with their respective
terms, except as the enforceability thereof may be limited by applicable bankruptcy,
insolvency, moratorium, reorganization or other similar laws affecting the
enforcement of creditors’ rights and subject to general equitable principles.

 

(d)           The representations and warranties contained in Article 8
of the Financing Agreement are hereby incorporated herein by reference in this
Agreement

 

17

 

mutatis mutandis as a direct representation
and warranty of Guarantor with respect to itself and the Stetson II Project and such representations and
warranties are true and correct as of the date hereof.

 

(e)           The security interests granted to Security Agent, for
the benefit of Secured Parties, pursuant to this Agreement, in the Collateral (a) upon
filing of appropriate financing statements, constitute as to personal property
included in the Collateral and, with respect to subsequently acquired personal
property included in the Collateral, will constitute, a perfected security
interest under the UCC to the extent a security interest can be perfected by
filing or by possession by or on behalf of the secured party and (b) are,
and, with respect to such subsequently acquired personal property, will be, as
to the Collateral perfected under the UCC as aforesaid, superior and prior to
the rights of all third Persons now existing or hereafter arising whether by
way of mortgage, lien, security interests, encumbrance, assignment or otherwise
(other than Permitted Liens that, pursuant to applicable law,
are entitled to a higher priority than the liens granted by this Agreement).  Except to the extent possession of portions
of such Collateral is required for perfection, all such action as is necessary
has been taken to establish and perfect Security Agent’s, for the benefit of
Secured Parties, rights in and to such Collateral to the extent Security Agent’s
security interest (for the benefit of the Secured Parties) can be perfected by
filing, including any recording, filing, registration, giving of notice or
other similar action.  No filing,
recordation, re-filing or re-recording other than those listed on Exhibit B
hereto (as the same may be supplemented from time to time) is necessary to
perfect and maintain the perfection of the Liens created by this Agreement on
the Collateral, and all such filings or recording will have been made to the
extent Security Agent’s, for the benefit of Secured Parties, security interest
can be perfected by filing (except to the extent that such filings or
recordings are, by their nature, filings or recordings to be made at a later
date).  Guarantor has properly delivered
or caused to be delivered to Security Agent all such Collateral that requires
perfection of the Lien and security interest described above by possession.

 

(f)            Guarantor’s principal place of business and chief
executive office is located at 85 Wells Avenue, Suite 305, Newton, MA
02459.  Guarantor has not changed its
location (as defined in Section 9-307 of the UCC) or previously changed
its name.

 

(g)           It is understood and agreed that the foregoing
representations and warranties shall apply only to the Collateral delivered on
the date hereof and that, with respect to Collateral delivered thereafter,
Guarantor shall, upon the written request of Security Agent, be required to
make representations and warranties in form and substance substantially similar
to the foregoing in supplements hereto and that such representations and 

 

18

 

warranties
contained in such supplements hereto shall be applicable to such Collateral
hereafter delivered.

 

Section 9.               Covenants.

 

(a)           Guarantor shall perform and comply, in all material
respects, with all obligations and conditions on its part to be performed
hereunder, under the Assigned Agreements, the Financing Documents and with
respect to the Collateral.

 

(b)           Guarantor shall not directly or indirectly create,
incur, assume or suffer to exist any liens on or with respect to any part of
the Collateral (other than Liens granted pursuant to the Financing Documents or
clauses (b), (c), (f), (l) and (m) of the definition of Permitted
Liens (such term being used herein with the reference to “Borrower” in clause (b) of
such definition contained in the Financing Agreement being deemed to be a
reference to “Guarantor” for purposes of this Agreement).  Guarantor will at its own cost and expense
promptly take such action as may be necessary to discharge any such liens.

 

(c)           Without the prior written consent of Security Agent,
such consent in respect to modification or amendment not to be unreasonably
withheld, or except as otherwise permitted by the Financing Agreement or the
other Financing Documents, Guarantor shall not terminate, modify or amend the
Assigned Agreements.

 

(d)           Guarantor shall give to Security Agent prompt notice
of (i) each demand or notice received by it relating to the Assigned
Agreements; and (ii) any default, event of default or event which with the
giving of notice or the passage of time or both might reasonably be expected to
become a default under the Assigned Agreements, whether by Guarantor, Borrower
or any other Person, of which Guarantor has knowledge or as to which Guarantor
has received notice.

 

(e)           Guarantor shall give Security Agent at least 10
Business Days’ notice of a change in location of its place of business and
chief executive office and shall, at the expense of Guarantor, execute and
deliver such instruments and documents as may be required by Security Agent to
maintain the security interest in the Collateral created hereunder.

 

(f)            Except as otherwise permitted under the Financing
Agreement, Guarantor will not make any assignment of its rights under the
Assigned Agreements other than any assignment pursuant to this Agreement or any
other Financing Document.

 

(g)           With respect to each and every covenant and agreement
of Borrower set forth in the Financing Documents that relates to Borrower
causing (or not permitting) the Guarantor to take action or to refrain from
taking any 

 

19

 

action
is hereby incorporated by reference in this Agreement mutatis mutandis as a direct obligation,
covenant and agreement of Guarantor with respect to itself and the Stetson II
Project, and Guarantor agrees to perform and observe each such covenant and
agreement as it relates to it and the Stetson II Project so long as any
Obligations shall be outstanding, to and in favor of Security Agent and the
other Secured Parties.

 

(h)           Guarantor will defend its title to the Collateral and
the interest of Security Agent in the Collateral against any claim or demand of
any Persons (other than the Permitted Liens set out in subsections (b), (c),
(d), (g), and (i) of such definition).

 

(i)            Without the prior written consent of Security Agent,
such consent not to be unreasonably withheld, Guarantor will not file or
authorize to be filed in any jurisdiction any financing statements under the
UCC or any like statement with respect to the Collateral, in which Security
Agent is not named as the sole secured party for the benefit of the Secured
Parties.

 

Section 10.             INTENTIONALLY OMITTED

 

Section 11.             Borrower’s Consent and Covenant.

 

Borrower hereby consents to the assignment and grant of a security
interest in the Collateral to Security Agent and to the exercise by Security
Agent of all rights and powers assigned or delegated to Security Agent by
Guarantor hereunder.  Borrower further
agrees to perform all covenants and obligations herein which, by their terms,
are to be performed by Borrower.

 

Section 12.             Attorney-In-Fact.

 

(a)           Attorney-In-Fact. 
Guarantor hereby constitutes and appoints Security Agent, acting for and
on behalf of itself and all Secured Parties and each successor or assign of
Security Agent and the Secured Parties, the true and lawful attorney-in-fact of
Guarantor, with full power and authority in the place and stead of such
Guarantor and in the name of Guarantor, Security Agent or otherwise after the
occurrence and during the continuation of an Event of Default, to enforce all
rights, interests and remedies of Guarantor with respect to the Collateral,
including the rights:

 

(i)            to ask, require, demand, receive, compound and give
acquittance for any and all moneys and claims for moneys due and to become due
under or arising out of the Assigned Agreements or any of the other Collateral,
including any insurance policies;

 

(ii)           to elect remedies thereunder and to endorse any
checks, documents or other instruments or orders in connection therewith;

 

20

 

(iii)          to give appropriate receipts, releases and
satisfactions for and on behalf of and in the name of Guarantor or, at the
option of Security Agent, in the name of Security Agent, with the same force
and effect as Guarantor could do if this Agreement had not been made;

 

(iv)          to file any claims or take any action or institute any
proceedings in connection therewith which Security Agent may reasonably deem to
be necessary or advisable;

 

(v)           to pay, settle or compromise all bills and claims
which may be or become liens or security interests against any or all of the
Collateral, or any part thereof, unless a bond or other security satisfactory
to Security Agent has been provided;

 

(vi)          upon foreclosure, to do any and every act which
Guarantor may do on its behalf with respect to the Collateral or any part
thereof and to exercise any or all of Guarantor’s rights and remedies under any
or all of the Assigned Agreements;

 

(vii)         to preserve the validity, perfection and priority of
the liens granted by this Agreement;

 

(viii)        to, in the name of Guarantor or its own name, or otherwise, take
possession of, receive and indorse and collect any check, Account, Chattel
Paper, draft, note, acceptance or other Instrument for the payment of moneys
due under any Account or General Intangible;

 

(ix)           to execute, in connection with any sale or disposition
of the Collateral under Section 6, any endorsements, assignments,
bills of sale or other instruments of conveyance or transfer with respect to
all or any part of the Collateral;

 

(x)            in the case of any Intellectual Property, to execute
and deliver, and to have recorded, any agreement, instrument, document or paper
as Security Agent may request to evidence Security Agent’s security interest in
such Intellectual Property and the goodwill and General Intangibles of
Guarantor relating thereto or represented thereby;

 

(xi)           to pay or discharge taxes and liens levied or placed
on or threatened against the Collateral, effect any repair or pay or discharge
any insurance called for by the terms of this Agreement (including all or any
part of the premiums therefor and the costs thereof);

 

(xii)          to execute, in connection with any sale provided for
in Section 6, any endorsement, assignment or other instrument of
conveyance or transfer with respect to the Collateral; and

 

21

 

(xiii)         to (A) direct any party
liable for any payment under any Collateral to make payment of any moneys due
or to become due thereunder directly to Security Agent or as Security Agent shall
direct, (B) ask or demand for, collect, and receive
payment of and receipt for, any moneys, claims and other amounts due or to
become due at any time in respect of or arising out of any Collateral, (C) sign
and indorse any invoice, freight or express bill, bill of lading, storage or
warehouse receipt, draft against debtors, assignment, verification, notice and
other document in connection with any Collateral, (D) commence and
prosecute any suit, action or proceeding at law or in equity in any court of
competent jurisdiction to collect any Collateral and to enforce any other right
in respect of any Collateral, (E) defend any suit, action or proceeding
brought against Guarantor with respect to any Collateral, (F) settle,
compromise or adjust any such suit, action or proceeding and, in connection
therewith, give such discharges or releases as Security Agent may deem
appropriate, (G) assign any Intellectual Property, to the extent
assignable, throughout the world for such term or terms, on such conditions,
and in such manner as Security Agent shall in its
sole discretion determine, including the execution and filing of any document
necessary to effectuate or record such assignment; and (H) generally,
sell, transfer, pledge and make any agreement with respect to or otherwise deal
with any Collateral as fully and completely as though Security Agent
were the absolute owner thereof for all purposes, and do, at Security Agent’s
option and Guarantor’s expense, at any time, or from time to time, all acts and
things that Security
Agent deems necessary to protect, preserve or realize
upon the Collateral and Security Agent’s and the other
Secured Parties’ security interests therein and to effect the intent of this
Agreement, all as fully and effectively as Guarantor might do;

 

provided, however,
that Security Agent shall not exercise any such rights or remedies unless an
Event of Default has occurred and is continuing.  This power of attorney is a power coupled
with an interest and shall be irrevocable.

 

(b)           Motor Vehicles. 
Without limiting the rights and powers of Security Agent under Section 12(a),
Guarantor hereby appoints Security Agent as its attorney-in-fact, effective the
date of this Agreement and terminating upon the termination of this Agreement,
for the purpose of, upon the occurrence and during the continuation of an Event
of Default, (i) executing on behalf of Guarantor title or ownership
applications for filing with appropriate state agencies to enable Motor
Vehicles now owned or in the future acquired by Guarantor to be retitled and
Security Agent to be listed as lien holder as to those Motor Vehicles, (ii) filing
such applications with such state agencies, and (iii) executing such other
documents and instruments on behalf of, and taking such other action in the
name of, Guarantor as 

 

22

 

Security
Agent may deem necessary or advisable to accomplish the purposes of this Agreement
(including the purpose of creating in favor of Security Agent a perfected lien
on such Motor Vehicles and exercising the rights, remedies, powers and
privileges of Security Agent under Section 6).  This appointment as attorney-in-fact is
irrevocable and coupled with an interest.

 

(c)           Expenses. 
The expenses of Security Agent incurred in
connection with actions undertaken as provided in this Section 12,
together with interest thereon at a rate per annum equal to the rate per annum
at which interest would then be payable on past due Loans that are Base Rate
Loans under the Financing Agreement, from the date of payment by Security Agent to
the date reimbursed by Guarantor, shall be payable by Guarantor to Security Agent on
demand and shall constitute Obligations and be secured by the Liens of the
Collateral Documents.

 

(d)           Ratification; Powers Coupled With Interests.  Guarantor hereby ratifies all that said
attorneys shall lawfully, in compliance with the terms of the Financing
Documents, and not otherwise acting with gross negligence or willful
misconduct, do or cause to be done by virtue hereof.  All powers, authorizations and agencies
contained in this Agreement are coupled with an interest and are irrevocable
until this Agreement is terminated and the security interests created hereby
are released.

 

Section 13.             Perfection; Further Assurances.

 

(a)           Perfection. 
Guarantor agrees that from time to time, Guarantor shall promptly
execute and deliver all instruments and documents, and take all action, that
may be reasonably necessary, or that Security Agent may reasonably request, in
order to perfect and protect the assignment and security interest granted or
intended to be granted hereby, or to enable Security Agent to exercise and
enforce its rights and remedies hereunder with respect to any Collateral in
accordance with the terms hereof. 
Without limiting the generality of the foregoing, Guarantor shall (i) deliver
the Collateral or any part thereof to Security Agent for the benefit of the
Secured Parties as Security Agent may request, duly endorsed or accompanied by
such duly executed instruments of transfer or assignment, as Security Agent may
request, and in form and substance satisfactory to Security Agent; (ii) deliver
to Security Agent any and all Instruments, endorsed or accompanied by such
instruments of assignment and transfer in such form and substance as Security
Agent may reasonably request; (iii) cooperate with Security Agent in
obtaining, and take such other actions as are necessary or that Security Agent
may reasonably request in order for them to obtain Control (as defined in the
UCC) with respect to all Deposit Accounts, Investment Property, Electronic
Chattel Paper and Letter-of-Credit Rights included in the Collateral, including
(to the extent reasonably requested by Security Agent) (A) in the case of
any Deposit 

 

23

 

Account
for which Security Agent is not the Bank (as defined in the UCC) at which that
Deposit Account is maintained, using commercially reasonable efforts to cause
the Bank to enter into an agreement in such form as Security Agent may in its
reasonable discretion accept and (B) in the case of any Security
Entitlement, using commercially reasonable efforts to cause the relevant Securities
Intermediary to enter into an agreement in such form as Security Agent may in
its reasonable discretion accept; (iv) cause Security Agent (to the extent
reasonably requested by Security Agent) to be listed as the lienholder on all
certificates of title or ownership relating to Motor Vehicles in the name of
Guarantor and deliver to Security Agent originals of all such certificates of
title or ownership for such Motor Vehicles together with the odometer
statements for each such respective Motor Vehicle; (v) cause Security
Agent to be listed as the lienholder on any certificate of title or ownership
for any other Equipment covered by a certificate of title or ownership; and (vi) execute
and file such financing or continuation statements, or amendments thereto,
including financing statements describing the Collateral as “all assets now
owned or hereafter acquired”, and such other instruments, endorsements or
notices, as may be reasonably necessary or as Security Agent may reasonably
request, in order to perfect and preserve the assignments and security
interests granted or purported to be granted hereby.

 

(b)           Filing of Financing Statements.  Guarantor hereby authorizes Security Agent to
file one or more financing or continuation statements, and amendments thereto,
relative to all or any part of the Collateral, including financing statements
describing the Collateral as “all assets now owned or hereafter acquired”,
without the signature of Guarantor where permitted by law.  Except for filings on the Closing Date,
Security Agent shall notify Guarantor promptly after any such filing.

 

(c)           Payment of Fees. 
Guarantor shall pay all filing, registration and recording fees and all
refiling, re-registration and re-recording fees, and all reasonable
out-of-pocket expenses incident to the execution and acknowledgement of this
Agreement, and all federal, state, county and municipal stamp taxes and other
taxes, duties, imports, assessments and charges arising out of or in connection
with the execution and delivery of this Agreement, any agreement supplemental
hereto, any financing statements, and any instruments of further assurance,
except as may otherwise be provided in the Financing Agreement.

 

Section 14.             Notices.

 

All notices required or permitted under the terms and
provisions hereof shall be in writing and any such notice shall be effective if
given in accordance with the provisions of Section 14.1 of the Financing
Agreement.  Notices to Security Agent may

 

24

 

be given at the address of Security Agent set forth in
such Section 14.1 of the Financing Agreement.  Notices to Guarantor may be given at the
following addresses:

 

Stetson Wind II, LLC

c/o First Wind Energy,
LLC

179 Lincoln Street, Suite 500

Boston, MA 02111

Attention:  Secretary

Fax:  (619) 960-2889

 

Section 15.             Continuing Assignment and Security
Interest; Transfer of Notes.

 

This Agreement shall create a continuing pledge and
assignment of and security interest in the Collateral and shall (a) remain
in full force and effect until the Discharge of Obligations; (b) be
binding upon Guarantor, and its respective successors and assigns; and (c) inure,
together with the rights and remedies of Security Agent, to the benefit of
Security Agent, the Secured Parties and their respective successors,
transferees and permitted assigns. 
Without limiting the generality of the foregoing, Security Agent or any
Secured Party may assign or otherwise transfer all or any part of or interest
in the Notes, the Commitments or other evidence of the Obligations owed to them
to any other Person to the extent permitted by and in accordance with the
Financing Agreement, and such other Person shall thereupon become vested with
all or an appropriate part of the benefits in respect thereof granted to the
Secured Parties herein.  The release of
the security interest in any or all of the Collateral, the taking or acceptance
of additional security, or the resort by Security Agent to any security it may
have in any order it may deem appropriate, shall not affect the liability of
any Person on the indebtedness secured hereby.

 

Section 16.             Termination of Security Interest.

 

Upon the Discharge of
Obligations, this Agreement and the security interest granted hereby shall
terminate and all rights to the Collateral shall automatically revert to
Guarantor.  Upon any such termination,
Security Agent will, at Guarantor’s expense, execute and deliver to Guarantor
such documents (including UCC-3 termination statements) as Guarantor shall
reasonably request to evidence such termination.  The release of the security interest in any
or all of the Collateral, the taking or acceptance of additional security, or
the resort by Security Agent to any security it may have in any order it may
deem appropriate, shall not affect the liability of any Person on the
indebtedness secured hereby.  If this
Agreement shall be terminated or revoked by operation of law, Guarantor will
indemnify and hold Security Agent and the other Secured Parties harmless from
any loss, cost or expense which may be suffered or incurred by Security Agent
and the Secured Parties in acting hereunder in good faith prior to the receipt
by Security Agent, its successors, transferees, or assigns, of notice of such
termination or revocation.

 

25

 

Section 17.             Severability.

 

Any provision of this Agreement which is prohibited or
unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

Section 18.             Successors and Assigns.

 

This Agreement shall be binding upon, and inure to the
benefit of, the parties hereto and their respective successors and permitted
assigns; provided however that Guarantor may not assign its rights or
obligations hereunder.

 

Section 19.             No Amendment, Modification.

 

This Agreement may only be amended or modified by an
instrument in writing signed by Guarantor, Borrower and Security Agent, both
for itself and on behalf of any other parties to be charged in accordance with
the terms of this Agreement.

 

Section 20.             Headings.

 

The headings of the various sections herein are for
convenience of reference only and shall not define or limit any of the terms or
provisions hereof.

 

Section 21.             Liability.

 

The scope of liability of Guarantor hereunder shall be
as set forth in Article 11 (Scope of Liability) of the Financing
Agreement, which Article 11 is incorporated herein by this reference.

 

Section 22.             Governing Law.

 

THIS AGREEMENT, INCLUDING ALL MATTERS OF CONSTRUCTION,
VALIDITY AND PERFORMANCE AND MATTERS RELATING TO THE CREATION, VALIDITY,
ENFORCEMENT OR PRIORITY OF THE LIEN OF, AND SECURITY INTERESTS CREATED BY, THIS
AGREEMENT IN OR UPON THE COLLATERAL, SHALL BE GOVERNED BY THE LAWS OF THE STATE
OF NEW YORK, WITHOUT REFERENCE TO THE CONFLICTS OF LAW RULES (OTHER THAN SECTION 5-1401
AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), EXCEPT AS
REQUIRED BY MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE EXTENT THAT THE
VALIDITY OR PERFECTION OF THE LIEN AND SECURITY INTEREST HEREUNDER, OR REMEDIES
HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE LAWS OF
A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

 

26

 

Section 23.             References to Other Documents.

 

Subject to the Financing Agreement, all defined terms
used in this Agreement which refer to other documents shall be deemed to refer
to such other documents as they may be amended, supplemented or replaced from
time to time, provided such documents were not amended in breach of a covenant
contained in any agreement to which Borrower, Guarantor or Security Agent is a
party.

 

Section 24.             Execution in Counterparts.

 

This Agreement may be executed in one or more
duplicate counterparts, and when executed and delivered by all the parties
hereto, shall constitute a single binding agreement.

 

Section 25.             Third Party Rights.

 

Nothing in this Agreement, expressed or implied, is
intended or shall be construed to confer upon, or give to any Person, other
than Guarantor, Security Agent and the Secured Parties, any security, rights,
remedies or claims, legal or equitable, under or by reason hereof, or any
covenant or condition hereof; and this Agreement and the covenants and
agreements herein contained are and shall be held to be for the sole and
exclusive benefit of Guarantor, Security Agent and the Secured Parties.

 

Section 26.     Conflict Among Agreements.

 

In the event of any
conflict between the terms and provisions of this Agreement, the Financing
Agreement, the terms and conditions of the Financing Agreement shall prevail.

 

Section 27.             Waiver of Jury Trial.

 

THE PARTIES TO THIS AGREEMENT HEREBY KNOWINGLY,
VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHTS THEY 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 OTHER OPERATIVE DOCUMENT, OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN),
OR ACTIONS OF SECURITY AGENT, THE SECURED PARTIES, BORROWER OR GUARANTOR.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR
SECURITY AGENT TO ENTER INTO THIS AGREEMENT.

 

Section 28.     Reinstatement.

 

This Agreement and the continuing security interest in, and the lien
on, the Collateral created hereunder shall automatically be reinstated, to the
extent permitted by applicable law, if and to the extent that for any reason
any payment by or on behalf of Borrower or Guarantor in respect of the
Obligations is rescinded or must otherwise be

 

27

 

restored by any holder of the Obligations, whether as
a result of any proceedings in bankruptcy or reorganization or otherwise.

 

[SIGNATURES FOLLOW]

 

28

 

IN
WITNESS WHEREOF, the parties hereto have caused this Guaranty and Security
Agreement to be duly executed and delivered by their members and officers,
respectively, thereunto duly authorized, as of the day and year first above
written.

 

	
   

  	
  STETSON WIND II, LLC

  
	
   

  	
  a Delaware limited
  liability company, as Guarantor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  STETSON HOLDINGS, LLC

  
	
   

  	
  a Delaware limited liability company, as Borrower

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  BNP PARIBAS

  
	
   

  	
  as Security Agent 

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Exhibit A

 

List of
assigned agreements and documents

 

(i)          Stetson Wind II LLC Agreement;

 

(ii)         PPA;

 

(iii)        the BOP Agreement to which it is a party;

 

(iv)        the Turbine Supply Agreement to which it
is a party;

 

(v)         the Interconnection Agreement to which it
is a party;

 

(vi)        the insurance policies maintained or
required to be maintained by Guarantor or any other Person (to the extent of
Guarantor’s right, title and interest therein) under the Financing Agreement,
including any such policies insuring against loss of revenues by reason of
interruption of the operation of the Stetson II Project and all loss proceeds
and other amounts payable to Guarantor thereunder and all applicable Eminent
Domain Proceeds;

 

(vii)       to the extent assignable, all other agreements,
including vendor warranties, running to Guarantor or assigned to Guarantor
relating to the construction, maintenance, improvement, operation or
acquisition of the Stetson II Project or any part thereof, or transport of
material, equipment and other parts of the Stetson II Project or any part
thereof;

 

(viii)      any lease or sublease agreements or
easement agreements, including the easement agreements, relating to the Stetson
II Project or any part thereof or any ancillary facilities, to which Guarantor
may be or become a party;

 

(ix)         each Material Project Document and any
other agreements to which Guarantor may be or become a party relating to the
construction or operation of the Stetson II Project or any part thereof;

 

(x)          each and every performance bond or
guaranty and similar other document relating to the performance by any party of
any of the Assigned Agreements;

 

(xi)         all rights of Guarantor to receive moneys
due and to become due under or pursuant to the Assigned Agreements and all
claims of Guarantor for damages arising out of or for breach of or under the
Assigned Agreements;

 

(xii)        all amendments, modifications,
supplements, restatements, substitutions and renewals to any of the Assigned
Agreements; and

 

 

(xiii)       all Applicable Permits, including those
described on Exhibit H-2B to the Financing Agreement, except for any such
permit which would be breached or terminated solely by virtue of a security
interest being granted;

 

 

Exhibit B

 

List of
UCC Filings

 

1.             UCC-1 Financing Statement naming Stetson
Wind II, LLC, as Debtor and BNP Paribas, in its capacity as Security Agreement,
as Secured Party, to be filed with the Secretary of State of the State of
Delaware.

 

 

Execution
Version

 

EXHIBIT
E-4

to
Financing Agreement

 

FORM OF
ACCOUNT CONTROL AGREEMENT

 

(See Tab      )

 

 

ACCOUNT CONTROL AGREEMENT

 

This ACCOUNT CONTROL
AGREEMENT (this “Agreement”), dated as of December 22, 2009, is
made among STETSON HOLDINGS, LLC, a Delaware
limited liability company (“Borrower”), BNP PARIBAS,
in its capacity as security agent (with its successors and permitted assigns,
the “Security Agent”) under that certain Financing Agreement (as defined
below) for the benefit of the Secured Parties (as defined in the Financing
Agreement) and SunTrust Bank, a Georgia banking corporation, in its capacity as
a “securities intermediary” as defined in Section 8-102 of the UCC (in
such capacity, with its successors and permitted assigns, the “Securities
Intermediary”).

 

A.            Pursuant to the Financing Agreement, Borrower is required
to arrange for the establishment of the Collateral Accounts (as defined below)
and to deposit, or arrange for the deposit of, cash and other property into the
Collateral Accounts as set forth in the Financing Agreement and this Agreement
and, pursuant to the Borrower Security and Pledge Agreement, Borrower has
granted to the Security Agent a security interest in Borrower’s right, title
and interest in and to the Collateral Accounts and the property credited
thereto.

 

B.            In order to perfect the Security Agent’s security
interest in the Collateral Accounts and the property credited thereto,
Borrower, the Security Agent and Securities Intermediary have agreed to enter
into this Agreement.

 

NOW, THEREFORE, for good
and valuable consideration, the receipt of which is hereby acknowledged, the
parties to this Agreement agree as follows:

 

Section 1.               Definitions.  Terms defined
in the Financing Agreement and used herein have the respective meaning assigned
thereto in Exhibit A of the Financing Agreement and, unless defined
therein or herein, terms defined in Articles 8 and 9 of the Uniform Commercial
Code as in effect in New York are used herein as therein defined.  In addition, as used herein:

 

“Book-Entry
Security” shall mean a security maintained in the form of entries
(including, without limitation the security entitlements in, and the financial
assets based on, such security) in the commercial book-entry system of the
Federal Reserve System.

 

“Distribution
Test” shall mean, in respect of any distribution to Member, each of the
following conditions tested as of the Payment Date on which any such
distribution is to be made:  (i) the
certification of the Minimum Debt Service Coverage Ratio; (ii) all Reserve
Accounts have been fully funded as required under Section 6; (iii) no
LC Loan shall be outstanding; (iv) no event, condition or circumstance
that could be reasonably expected to have a Material Adverse Effect shall have
occurred and be continuing as of such Payment Date or will result after giving
effect to the proposed distribution; and (v) No Event of Default or
Inchoate Default with respect to any Affiliated Participant has occurred and is
continuing as of such Payment Date or will result after giving effect to the
proposed distribution.

 

“Federal
Book-Entry Regulations” shall mean (a) the federal regulations
contained in Subpart B (“Treasury/Reserve Automated Debt Entry System
(TRADES)” governing Book-Entry Securities consisting of U.S. Treasury bonds,
notes and bills) and Subpart D (“Additional Provisions”) of 31 C.F.R. Part 357,
31 C.F.R. § 357.10 through § 357.14 and § 357.41 through
§ 357.44 (including related defined terms in 31 C.F.R. 

 

2

 

§ 357.2); and (b) to
the extent substantially identical to the federal regulations referred to in
clause (a) above (as in effect from time to time), the federal regulations
governing other Book-Entry Securities.

 

“Financing
Agreement” shall mean the Financing Agreement, dated as of December 22,
2009, is entered into by and among Borrower, the lenders from time to time
parties thereto (collectively, the “Lenders” and each individually, a “Lender”),
BNP Paribas, in its separate capacities as a joint lead arranger, the
administrative agent, the security agent and the issuing bank, and HSH Nordbank
AG, New York Branch, as a joint lead arranger.

 

“Gen
Lead Distribution Test” shall mean, in respect of any distribution to
Member pursuant to Section 6(j) hereunder, each of the
following conditions tested as of the date on which any such distribution is to
be made:  (i) all Reserve Accounts
have been fully funded as required under Section 6; (ii) no LC
Loan shall be outstanding; (iii) no event, condition or circumstance that
could be reasonably expected to have a Material Adverse Effect shall have
occurred and be continuing as of such date or will result after giving effect
to the proposed distribution; and (iv) No Event of Default or Inchoate
Default with respect to any Affiliated Participant has occurred and is
continuing as of such date or will result after giving effect to the proposed
distribution.

 

“UCC”
shall mean the Uniform Commercial Code as in effect in the State of New York
from time to time.

 

Section 2.               The Collateral Accounts.

 

(a)           Establishment of Collateral Accounts. 
Securities Intermediary acknowledges and agrees that: (i) it has
established and is maintaining on its books
and records the accounts identified on the attached Schedule 1
(each such account, together with any replacements thereof or substitutions
therefor, the “Collateral Account” and such accounts, collectively, the “Collateral
Accounts”) in the name of the Borrower; (ii) each Collateral Account
is a “securities account” (within the
meaning of Section 8-501(a) of the UCC) in respect of which
Securities Intermediary is a “securities intermediary” (within the meaning of Section 8-102(a)(14)
of the UCC and, with respect to any Book-Entry Security, within the meaning of
Federal Book-Entry Regulations) and the Security Agent is the “entitlement
holder” (within the meaning of Section 8-102(a)(7) of the UCC); provided,
however, that if, notwithstanding the intention of the parties hereto,
all or any portion of the Collateral Account is determined to be a “deposit
account” (within the meaning of Section 9-102 of the UCC) rather than a “securities
account,” then the Securities Intermediary represents, warrants, covenants and
agrees that it is a “bank” (as defined in Section 9-102(a)(8) of the
UCC) and will treat the Borrower as its customer (within the meaning of Section 9-104(a)(3) of
the UCC) with respect to the Collateral Accounts (or portion thereof);  (iii) all property
delivered, or to be delivered, to Securities Intermediary pursuant to this
Agreement is, and will be, promptly credited to the Collateral Accounts; (iv) it
does not know of any claim to or interest in any Collateral Account or any
assets or funds therein, except for claims and interests of the parties to this
Agreement as set forth herein; and (v) it shall not change the name or
account number of any Collateral Account without the prior written consent of
the Security Agent.  Except as provided
in Section 2(b), Securities Intermediary agrees that it shall not
take “entitlement orders” (as defined in Section 8-102(a)(8) of the
UCC) or “instructions” (within the meaning of Section 9-104(a)(2) of
the UCC)

 

3

 

with respect to the Collateral Accounts or any assets or funds therein from any Person other than the
Security Agent.

 

(b)                                 Reliance Upon Instructions of Security
Agent.  It is agreed and understood that the
Collateral Accounts will be administered by Securities Intermediary according
to instructions given to it by the Security Agent, including, but not limited
to, instructions concerning the investment and disposition of funds held in the
Collateral Accounts; provided, however, that so long as the
Security Agent has not advised Securities Intermediary that any Default or
Event of Default has occurred and is continuing, Borrower may instruct
Securities Intermediary to invest any amounts in the Collateral Accounts in
Permitted Investments.  As to all matters
concerning administration of the Collateral Accounts, Securities Intermediary
shall be entitled, in its reasonable discretion, to request and receive
direction from the Security Agent. 
Securities Intermediary shall be entitled to conclusively presume that
any direction given to it by the Security Agent is in accordance with the
Collateral Documents.  Securities
Intermediary shall be entitled to conclusively presume that any investment
direction given to it by the Borrower is in accordance with the Financing
Agreement, the Energy Hedge and this Agreement.

 

(c)                                  Treatment of Account Balances as “Financial
Assets.”  Securities Intermediary hereby agrees that
each item of property (whether cash, a security, an instrument or any other
property whatsoever (including, without limitation, Permitted Investments))
credited to the Collateral Accounts shall be treated as a “financial asset”
under Article 8 of the UCC.

 

(d)                                 Registration of Securities, Etc. 
All securities and other financial assets credited to the Collateral
Accounts that are in registered form or that are payable to or to order shall
be (i) registered in the name of, or payable to or to the order of,
Securities Intermediary, (ii) indorsed to or to the order of Securities
Intermediary or in blank or (iii) credited to another securities account
maintained in the name of Securities Intermediary; and in no case will any
financial asset credited to the Collateral Accounts be registered in the name
of, or payable to or to the order of, Borrower or indorsed to or to the order
of Borrower, except to the extent the foregoing have been specially indorsed to
or to the order of Securities Intermediary or in blank.

 

(e)                                  Securities Intermediary’s Jurisdiction. 
Securities Intermediary agrees that its “securities intermediary’s
jurisdiction” (within the meaning of Section 8-110(e) of the UCC) or
its “bank’s jurisdiction” (within the meaning of Section 9-304(b) of
the UCC) is the State of New York.

 

(f)                                    Control of Collateral Accounts. 
If at any time the Securities Intermediary shall receive from the
Security Agent any entitlement order or any instruction originated by the
Security Agent directing transfer or redemption of any financial asset relating
to the Collateral Accounts, the disposition of funds in the Collateral Accounts
or any other action or inaction, the Securities Intermediary shall comply with
such entitlement order or instruction without further consent of the Borrower
or any other party.

 

(g)                                 Conflict between Agreements. 
Borrower, the Security Agent and Securities Intermediary agree that, if
there is any conflict between this Agreement and any other agreement relating
to the Collateral Accounts, the provisions of this Agreement shall control.

 

Section 3.                                            Duties of
Securities Intermediary.

 

(a)                                  Subordination of
Liens in Favor of Securities Intermediary, Etc. 
Securities Intermediary hereby subordinates to the extent it may
lawfully do so, any lien including, but not limited to (i) any and all
contractual rights of set-off, lien or compensation, (ii) any and all statutory
or regulatory rights of pledge, lien, set-off or compensation, (iii) any
and all 

 

4

 

statutory,
regulatory, contractual or other rights to put on hold, block transfers from or
fail to honor instructions of the Security Agent with respect to the Collateral Accounts, and (iv) any and all statutory or other rights to prohibit
or otherwise limit the pledge, assignment, collateral assignment or granting of
any type of security interest in the Collateral Accounts, to the security interest of the Security Agent in the Collateral
Accounts, all property credited thereto,
all security entitlements with respect to such property and financial assets
and any and all statutory, regulatory, contractual or other rights now or
hereafter existing in favor of Securities Intermediary over or with respect to
the Collateral Accounts.

 

(b)                                 Account Statements.  Securities Intermediary will send copies of
all statements and confirmations for the Collateral Accounts
simultaneously to Borrower and the Security Agent.

 

(c)                                  No Liabilities of
Securities Intermediary or Officers, Etc. 
Neither Securities Intermediary nor any of its officers, directors,
employees, agents or attorneys-in-fact shall be liable for any action lawfully
taken or omitted to be taken by it or such person under or in connection with
this Agreement, except that neither Securities Intermediary nor any such person
shall be relieved of any liability arising out of (i) its or such person’s
willful failure to follow written directions delivered to it in
accordance with this Agreement or (ii) its or such person’s own gross
negligence or willful misconduct or unlawful acts.  Securities Intermediary shall have no
liability for making any investment or reinvestment of any cash balance in the Collateral Accounts pursuant to an investment instruction given to it by the
Security Agent or the Borrower.  Unless
otherwise directed by the Security Agent, any net investment earnings or losses
realized on any investments held in a Collateral Account shall be credited to
or debited from that Collateral Account. The Securities Intermediary assumes no responsibility for,
nor will it be liable for,
any loss arising from an  investment authorized under this Agreement,
including any loss arising from the sale of an investment to fund a
disbursement requested by the Security Agent hereunder.  The liabilities of Securities
Intermediary shall be limited to those expressly set forth in this
Agreement.  With the exception of this
Agreement, Securities Intermediary is not responsible for or chargeable with
knowledge of any terms or conditions contained in any agreement referred to
herein.  Securities Intermediary may
rely, and shall be protected in acting or refraining from acting, upon any written
notice, instruction or request furnished to it under this Agreement and
believed by it in good faith to be genuine and to have been signed or presented
by the proper party.  The Securities Intermediary shall in no
event incur any liability with respect to any action taken or omitted in good
faith upon advice of legal counsel, which may be counsel to any party hereto,
given with respect to any question relating to the duties and responsibilities
of the Securities Intermediary hereunder.

 

(d)                                 Degree of Care.  Securities Intermediary shall exercise the
same degree of care in administering the funds held in the Collateral Accounts
and the investments purchased from such funds in accordance with the terms of this Agreement
as Securities Intermediary exercises in the ordinary course of its day-to-day
business in administering other funds and investments for its own account and
as required by applicable law. 
Securities Intermediary shall perform its obligations hereunder in
accordance with generally accepted banking industry standards.

 

Section 4.                                            Indemnity;
Expenses; Fees.

 

(a)                                  Indemnification by
Borrower.  Borrower will
indemnify and defend Securities Intermediary and its officers, directors,
employees and agents, from and against any 

 

5

 

and
all claims, losses and liabilities, including the reasonable costs of its
counsel, resulting from this Agreement (including, without limitation,
enforcement of this Agreement), but excluding any such claims, losses or liabilities
resulting from the gross negligence or willful misconduct or unlawful acts of
Securities Intermediary or any of its officers, directors, employees and
agents, or any willful failure of Securities Intermediary or any of its
officers, directors, employees and agents to follow written directions
delivered to Securities Intermediary in accordance with this Agreement.  The obligation of the Borrower to provide
such indemnification to the Securities Intermediary and its directors,
officers, employees and agents shall survive the termination of this Agreement
and the resignation or removal of the Securities Intermediary.

 

(b)                                 Costs and Expenses.  Borrower shall be responsible for, and hereby
agrees to pay all reasonable, documented costs and expenses incurred by
Securities Intermediary in connection with the establishment and maintenance of
the Collateral Accounts, including, without limitation, (i) Securities
Intermediary’s customary service charges, transfer fees and account maintenance
fees, (ii) any reasonable costs or expenses incurred by Securities
Intermediary as a result of conflicting claims or notices involving the parties
hereto, including, without limitation, the reasonable, documented fees and
expenses of its external legal counsel, and (iii) all other reasonable,
documented costs and expenses incurred in connection with the execution,
administration or enforcement of this Agreement including, but not limited to,
reasonable, documented attorneys’ fees and costs, whether or not such
enforcement includes the filing of a lawsuit (collectively, “Fees”). All
such Fees shall constitute O&M Costs and Securities Intermediary is hereby
authorized to pay such Fees from the Collateral Accounts if Borrower fails to pay such amounts when due; provided, that Securities
Intermediary shall provide a statement of such accrued Fees to Borrower and the
Security Agent simultaneously with such payment.  Except as otherwise expressly permitted in
this Agreement, Securities Intermediary hereby agrees that Securities Intermediary
will not exercise or claim any banker’s lien against the Collateral Accounts,
all property credited thereto, all security entitlements with respect to such
property and financial assets.

 

Section 5.                                            Event of Default.

 

(a)                                  Upon the occurrence and during the
continuation of an Event of Default, the Security Agent shall have the right to
instruct Securities Intermediary (i) not to release, withdraw, distribute,
transfer or otherwise make available any funds in or from any of the Collateral
Accounts except to the Security Agent and (ii) to take such action or
refrain from taking such action the Security Agent specifies.

 

(b)                                 Upon the receipt of notice of occurrence
of any Event of Default from the Security Agent, the Securities Intermediary
shall render an accounting to the Security Agent and the Borrower of all monies
in the Collateral Accounts as of the date of such Event of Default.  The Security Agent shall have the right to
exercise such remedies as are then available to it, including, without limitation,
under this Agreement, the Borrower Security Agreement and any applicable law,
and the Security Agent shall apply any funds on deposit in the Collateral
Accounts in accordance with Section 9.3 of the Financing Agreement.

 

Section 6.                                            Accounts.

 

(a)                                  Disbursement Account. 
The Borrower and the Security Agent have established with the Securities
Intermediary an account entitled the “Stetson Disbursement Account” (account
number 7931044) (the “Disbursement Account”).  All 

 

6

 

proceeds of the Term
Loans and Bridge Loans shall be deposited in the Disbursement Account and shall
be applied in accordance with Section 7.1 of the Financing Agreement and
the Notice of Borrowing.

 

(b)                                 Revenue Account. 
The Borrower and the Security Agent have established with the Securities
Intermediary an account entitled the “Stetson Revenue Account” (account number
7931046) (the “Revenue Account”). 
Except as otherwise set forth in this Agreement, the Borrower shall (and
the Borrower shall cause each Project Company to) deposit in the Revenue
Account all cash amounts held by or paid to the Borrower (and each Project
Company), including without limitation, (i) any and all distributions and
other payments to which the Borrower is entitled under the Borrower LLC
Agreement, (ii) all Project Revenues paid to the Borrower or any Project
Company under any Project Documents or otherwise, (iii) all proceeds of
any equity contribution funded by all Affiliated Participants, (iv) all
proceeds of any business interruption insurance received by the Borrower or any
Project Company or otherwise in respect of the Projects, and (v) transfers
from other Collateral Accounts in accordance with this Section 6; provided,
however, that (x) all Government Grant proceeds received from the
Governmental Authority shall be deposited in the Government Grant Proceeds
Account pursuant to Section 6(g), (y) all proceeds of
insurance (other than proceeds of business interruption insurance) shall be
deposited in the Loss Proceeds Account pursuant to Section 6(f),
and (z) all proceeds paid to the Borrower or any Project Company related
to the Permitted Transmission Line Transfer shall be deposited in the Gen Lead
Account pursuant to Section 6(j). 
So long as no Event of Default has occurred and is continuing or will
occur upon giving effect to the application described below, funds in the
Revenue Account shall be applied by internal account transfer by the Securities
Intermediary at the direction of the Security Agent and the Borrower, in each
case at the following times and in the following order of priority:

 

(1)          First, on each Monthly Transfer Date, to the
Operating Account in an amount sufficient for the payment of O&M Costs that
are or will become due and payable either in the calendar month in which such
Monthly Transfer Date occurs or the next succeeding calendar month, in each
case to the extent that such O&M Costs are included in the Base Case
Project Projections;

 

(2)          Second, on each Payment Date and any other date
on which the following amounts may be due and payable, to the extent there are
funds remaining in the Revenue Account as of such date after application of
payments set forth in Section 6(b)(1), on a pro rata
basis, to the payment of any and all fees, costs and expenses due and payable
to the Agents, Lenders and Issuing Bank in connection with the Financing
Agreement and the other Financing Documents;

 

(3)          Third, on each Payment Date and any other date
on which the following amounts may be due and payable, to the extent there are
funds remaining in the Revenue Account as of such date after application of
payments set forth in Sections 6(b)(1)-(2), on a pro rata
basis, to the payment of (A) amounts due and payable to the Lenders with
respect to accrued interest on all outstanding Term Loans due and payable
hereunder, (B) amounts due and payable to the Lenders with respect to
accrued interest on all outstanding Bridge Loans due and payable hereunder, (C) amounts
due and payable to the Lenders with respect to accrued 

 

7

 

interim interest pursuant to Section 2.2(d)(vii) of the
Financing Agreement, (D) amounts due and payable to the Lenders with
respect to accrued interest on all outstanding LC Loans due and payable hereunder,
and (E) all amounts, if any, then due and payable to the counterparties to
the Interest Rate Agreements or scheduled to become due and payable on such
Payment Date;

 

(4)          Fourth, on each Payment Date and any other date
on which the following amounts may be due and payable, to the extent there are
funds remaining in the Revenue Account as of such date after application of
payments set forth in Sections 6(b)(1)-(3), on a pro rata
basis, to the payment of (A) any outstanding principal of the Term Loans in
an amount up to the then required Scheduled Repayment Amount as of such date,
and (B) Reimbursement Obligations, if elected by Borrower or otherwise
required to be repaid pursuant to Section 2.2(d) of the Financing
Agreement;

 

(5)          Fifth, on each Payment Date, to the extent
there are funds remaining in the Revenue Account as of such date after
application of payments set forth in Sections 6(b)(1)-(4), to the
O&M Reserve Account, up to the O&M Reserve Requirement less any amount
of the O&M Reserve Requirement supported by the O&M Reserve LC;

 

(6)          Sixth, on each Payment Date, to the extent
there are funds remaining in the Revenue Account as of such date after
application of payments set forth in Sections 6(b)(1)-(5), to the
funding of the Debt Service Reserve Account up to the Debt Service Reserve
Requirement less any amount of the Debt Service Reserve Requirement supported
by the Debt Service Reserve LC;

 

(7)          Seventh, on each Payment Date and any other date
on which the following amounts may be due and payable, to the extent there are
funds remaining in the Revenue Account as of such date after application of
payments set forth in Sections 6(b)(1)-(6), to the prepayment of any
outstanding principal of LC Loans; and

 

(8)          Eighth, on each Payment Date and any other date
on which the following amounts may be due and payable, to the extent there are
funds remaining in the Revenue Account as of such date after application of
payments set forth in Sections 6(b)(1)-(7), to the prepayment of Loans
pursuant to Section 3.2 of the Financing Agreement or the payment of the
AIMCO Prepayment if so requested by the Borrower;

 

(9)          Ninth, on each Payment Date and prior to the
creation of an Energy Hedge Lien, to the extent there are funds remaining in
the Revenue Account as of such date after application of payments set forth in Sections
6(b)(1)-(8), to the funding of the Energy Hedge Reserve Account to the
extent the Hedge LC Margin is less than $2,500,000 pursuant to Section 7.3(q) of
the Financing Agreement; provided, that amounts on deposit in the Energy
Hedge Deposit Account shall never exceed $5,000,000 at any given time; and

 

(10) Tenth, on each
Payment Date, to the extent there are funds remaining in the Revenue Account as
of such date after application of payments set forth in Sections 6(b)(1)-(9),
to the Distribution Reserve Account for application pursuant to Section 6(i).

 

8

 

(c)                                  Operating Account. 
The Borrower and the Security Agent have established with the Securities
Intermediary an account entitled the “Stetson Operating Account” (account
number 7931045) (the “Operating Account”). 
Funds on deposit in the Operating Account shall be transferred, after
giving effect to any deposits to the Operating Account pursuant to Sections
6(b)(1), to the extent of available funds, for the payment from time to
time of O&M Costs in accordance with the Base Case Project Projections that
are then due and payable.

 

(d)                                 Debt Service Reserve Account. 
The Borrower and the Security Agent have established with the Securities
Intermediary an account entitled the “Stetson Debt Service Reserve Account”
(account number 7931047) (the “Debt Service Reserve Account”).  Unless an Event of Default exists and is
continuing, Administrative Agent, as beneficiary under the Debt Service Reserve
LC, shall make a draw under the Debt Service Reserve LC to the to the extent
necessary in the event that the amounts on deposit in the Revenue Account are
at any applicable time insufficient for the purpose set forth in Sections
6(b)(3) and (4).  All
proceeds of Drawing Payments in respect of the Debt Service Reserve LC shall be
deposited in the Debt Service Reserve Account. 
Funds on deposit in the Debt Service Reserve Account shall be used as
and to the extent necessary in the event that the amounts on deposit in the
Revenue Account are at any applicable time insufficient for the purpose set
forth in Section 6(b)(3) and (4).  In the event that upon the repayment of any
Debt Service Reserve LC Loan and reinstatement of the Stated Amount of the Debt
Service Reserve LC, the effect of which is that the aggregate sum of such
reinstated Stated Amount and amount of funds on deposit in the Debt Service
Reserve Account exceeds the Debt Service Reserve Requirement, then such excess
amount shall be transferred to the Revenue Account to be applied pursuant to Section 6(b).  Funds on deposit in the Debt Service Reserve
Account may be transferred at Borrower’s request to be applied as an Optional
Prepayment in connection with an AIMCO Prepayment.

 

(e)                                  O&M Reserve Account. 
The Borrower and the Security Agent have established with the Securities
Intermediary an account entitled the “Stetson O&M Reserve Account” (account
number 7931048) (the “O&M Reserve Account”).  Unless an Event of Default exists and is
continuing, Administrative Agent, as beneficiary under the O&M Reserve LC,
shall make a draw under the O&M Reserve LC to the extent necessary in the
event that the amounts on deposit in the Revenue Account are at any applicable
time insufficient for the purpose set forth in Section 6(b)(1).  All proceeds of Drawing Payments in respect
of the O&M Reserve LC shall be deposited in the O&M Reserve
Account.  Funds on deposit in the O&M
Reserve Account shall be used as and to the extent necessary in the event that
the amounts on deposit in the Revenue Account are at any time insufficient for
the purpose set forth in Section 6(b)(1).  In the event that upon the repayment of any
O&M Reserve LC Loan and reinstatement of the Stated Amount of the O&M
Reserve LC, the effect of which is that the aggregate sum of such reinstated
Stated Amount and amount of funds on deposit in the Debt Service Reserve
Account exceeds the O&M Reserve Requirement, then such excess amount shall
be transferred to the Revenue Account to be applied pursuant to Section 6(b).  Funds on deposit in the O&M Reserve
Account may be transferred at Borrower’s request to be applied as an Optional
Prepayment in connection with an AIMCO Prepayment.

 

9

 

(f)                              Loss Proceeds Account. 
The Borrower and the Security Agent have established with the Securities
Intermediary an account entitled the “Stetson Loss Proceeds Account” (account
number 7931050) (the “Loss Proceeds Account”). 
All Loss Proceeds paid or payable to or for the account of the Borrower
or any Project Company under any insurance policies maintained by the Borrower
or any Project Company or otherwise shall be deposited in the Loss Proceeds
Account, except for any such Loss Proceeds that the Security Agent determines
the Borrower is entitled to pursuant to the proviso set forth in the definition
of Restoration Conditions in the Financing Agreement, which shall be paid to an
unrestricted account directed by the Borrower. 
If the amount of Loss Proceeds received for a single event is $1,500,000
or less and Borrower and the Independent Engineer certify to the satisfaction
of the Security Agent, that repair or restoration of the affected portion of
the Project is technically and economically feasible prior to the Maturity Date
under the Financing Agreement (or, to the extent applicable, such shorter
period during which Insurance Proceeds are available under the business
interruption insurance maintained by or on behalf of Borrower or any Project
Company), and Borrower demonstrates to the Security Agent and the Independent
Engineer that a sufficient amount of funds are available to Borrower in the
Loss Proceeds Account to make such repairs and restorations, such funds on
deposit in the Loss Proceeds Account shall be transferred to the Borrower from
time to time to rebuild, repair, restore or replace the affected portion of the
Project.  If the Borrower elects to
satisfy the Restoration Conditions with respect to a single event for Loss
Proceeds paid to the Borrower in excess of $1,500,000 and such Restoration
Conditions are satisfied, such funds on deposit in the Loss Proceeds Account
shall be transferred to the Borrower from time to time to rebuild, repair,
restore or replace the affected portion of the Project.  If the Borrower elects not to satisfy the
Restoration Conditions (or if the Restoration Conditions are not otherwise
satisfied) with respect to a single event for Loss Proceeds paid to the
Borrower or any Project Company in excess of $1,500,000, such funds on deposit
in the Loss Proceeds Account shall be transferred to the Revenue Account to be
applied pursuant to Section 6(b).

 

(g)                                 Government Grant Proceeds Account. 
The Borrower and the Security Agent have established with the Securities
Intermediary an account entitled the “Stetson Government Grant Proceeds Account”
(account number 7931051) (the “Government Grant Proceeds Account”).  All proceeds of any Government Grant paid or
payable to or for the account of the Borrower or any Project Company or
otherwise received by any Affiliate of the Borrower in connection with the
Stetson II Project shall be deposited in the Government Grant Proceeds
Account.  The funds deposited in the
Government Grant Proceeds Account shall be promptly applied (A) to the
prepayment of all outstanding Bridge Loans, including all accrued interest and
any other fees and costs payable in connection therewith, and (B) to
the extent of any remainder, to the Revenue Account to be applied pursuant to Section 6(b).

 

(h)                                 Stetson I Holding Account. 
The Borrower and the Security Agent have established with the Securities
Intermediary an account entitled the “Stetson I Holding Account” (account
number 7931049) (the “Stetson I Holding Account”).  On the Closing Date, Borrower shall deposit
or cause to be deposited in the Stetson I Holding Account an amount equal to
$3,000,000 in accordance with Section 5.1(mm) of the Financing 

 

10

 

Agreement.  The funds on deposit in the Stetson I Holding
Account shall be transferred to the prepayment of Term Loans pursuant to Section 3.2(c) of
the Financing Agreement.

 

(i)                                     Distribution Reserve Account. 
The Borrower and the Security Agent have established with the Securities
Intermediary an account entitled the “Stetson Distribution Reserve Account”
(account number 7931052) (the “Distribution Reserve Account”).

 

(i)                                     On any Payment Date after, or concurrent
with, the repayment in full of the Bridge Loans, after all transfers and
distributions required to be made pursuant to Sections 6(b)(1) – (8) and
in each case upon the satisfaction of all of the Distribution Test conditions,
which shall remain satisfied after giving effect to any proposed distribution,
the funds on deposit in the Distribution Reserve Account may be transferred to
Member as a distribution.

 

(ii)                                  If for two (2) consecutive Payment
Dates after the repayment in full of the Bridge Loans the conditions set forth
in clause (i) above are not satisfied, the amounts on deposit in the
Distribution Reserve Account shall be deposited into the Revenue Account to be
applied pursuant to Section 6(b).

 

(iii)                               Funds on deposit in the Distribution
Reserve Account may be transferred at Borrower’s request to be applied as an
Optional Prepayment in connection with an AIMCO Prepayment.

 

(j)                                     Gen Lead Account. 
The Borrower and the Security Agent have established with the Securities
Intermediary an account entitled the “Stetson Gen Lead Account” (account number
7933134) (the “Gen Lead Account”).  All
proceeds paid or payable to or for the account of the Borrower or any Project
Company or otherwise received by any Affiliate of the Borrower in connection
with the Permitted Transmission Lien Transfer shall be deposited in the Gen
Lead Account.  Immediately, but in no
event no later than the following Business Day after the Gen Lead Distribution
Test conditions have been satisfied, which shall remain satisfied after giving
effect to any proposed distribution, the funds on deposit in the Gen Lead
Account shall be transferred to Member, or any other Affiliate designated by
Borrower, as a distribution.

 

(k)                                  Energy Hedge Reserve Account. 
The Borrower and the Security Agent have established with the Securities
Intermediary an account entitled the “Stetson Energy Hedge Reserve Account”
(account number 7933154) (the “Energy Hedge Reserve Account”).  Funds on deposit in the Energy Hedge Reserve
Account may be transferred (1) in support of Borrower’s credit support
obligations pursuant to the Energy Hedge, upon appropriate certification from
Borrower that additional collateral is required with respect thereto; (2) as
an Optional Prepayment in connection with an AIMCO Prepayment; and (3) in
the event that on any Payment Date the Hedge LC Margin is greater than
$2,500,000, all amounts on deposit in the Energy Hedge Reserve Account shall be
deposited into the Revenue Account to be applied pursuant to Section 6(b).

 

Section 7.                                            Miscellaneous.

 

(a)                                  Waiver.  No failure on the part of Securities
Intermediary or the Security Agent to exercise and no delay in exercising, and
no course of dealing with respect to, any right, remedy, power or privilege
under this Agreement shall operate as a waiver of such right, remedy, power or
privilege, nor shall any single or partial exercise of any right, remedy, power
or privilege under this Agreement preclude any other or further exercise of any
such right, remedy, power or privilege or the exercise of any other right,
remedy, power or privilege.  The rights, 

 

11

 

remedies,
powers and privileges provided in this Agreement are cumulative and not
exclusive of any rights, remedies, powers and privileges provided by law.  No waiver of any provision of this Agreement and no
consent to any departure from the terms of this Agreement shall be effective
except in the specific instance and for the purpose for which given.

 

(b)                                 Notices.  All notices, requests and other communications
provided for in this Agreement shall be given or made in writing and delivered
by hand or courier service, mailed by certified or registered mail or sent by
facsimile or electronic mail (e-mail) to the intended recipient as specified
below in this Section 7(b) or, as to any party, at such other
address as is designated by that party in a notice to each other party.  All such communications shall be deemed to
have been duly given when transmitted by facsimile or electronic mail (e-mail)
(with electronic confirmation of transmission) or personally delivered or, in
the case of a communication that was mailed or sent by a courier service, upon
receipt.

 

To Borrower:

Stetson Holdings, LLC

c/o First Wind Energy,
LLC

179 Lincoln Street, Suite 500

Boston, MA  02111

Attention:             Secretary

Telephone:           (617)
960-2888

Facsimile:            (617)
960-2889

 

With a copy to:

 

First Wind Energy, LLC

179 Lincoln Street, Suite 500

Boston, MA 02111

Attention:       
     General Counsel

Telephone:           (617)
960-2888

Facsimile:            (617)
960-2889

 

To the Security
Agent:

 

BNP Paribas

787 Seventh Avenue

New York, NY  10019

Attention:  Project Finance & Utilities

Tel:   (212) 841-2000

Fax:  (212) 841-2146

 

12

 

To Securities
Intermediary:

SunTrust
Bank

919
East Main Street, 7th Floor

Richmond,
Virginia  23219

Attention:
Escrow Services – Emily Hare

Telephone:  (804) 782-5400

Facsimile:  (804) 782-7855

 

(c)                                  Automatic Succession.  Any bank or corporation into which Securities
Intermediary may be merged or with which it may be consolidated, or any bank or
corporation (with a comparable asset base and level of experience in carrying
out the functions to be performed by Securities Intermediary) to whom
Securities Intermediary may transfer a majority of its escrow business, shall
be deemed the successor to Securities Intermediary upon delivery of notice of
such merger, consolidation or transfer to the Security Agent and Borrower,
without execution or filing of any other paper and without any further act on
the part of any of the parties to this Agreement.

 

(d)                                 Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of Borrower, the Security Agent and Securities
Intermediary and their respective successors and permitted assigns.  Except as otherwise provided herein, no party
may assign or transfer its rights or obligations under this Agreement without
the prior written consent of the Security Agent; provided, however,
that Securities Intermediary shall not be obligated to comply with any
instructions or entitlement orders of any assignee or transferee of the
Security Agent until such assignee or transferee has provided Securities
Intermediary such evidence of its succession to the rights and powers of the
Security Agent as Securities Intermediary reasonably may require.

 

(e)                                  Resignation or Removal of Securities Intermediary. 
Securities Intermediary may resign as Securities Intermediary upon
thirty (30) days’ prior written notice to the Secured Parties and Borrower, and
may be removed at any time with or without cause by the Security Agent (acting
at the direction of the Secured Parties), with any such resignation or removal
to become effective only upon the appointment of a successor Securities
Intermediary under this Section 7(e).  If Securities Intermediary shall resign or be
removed as Securities Intermediary, then the Security Agent and the Secured
Parties shall (and if no such successor shall have been appointed within thirty
(30) days of Securities Intermediary’s resignation or removal, the Security
Agent may) appoint a successor intermediary for the Secured Parties, which
successor shall be reasonably acceptable to Borrower whereupon such successor
shall succeed to the rights, powers and duties of Securities Intermediary, and
the term “Securities Intermediary” shall mean such successor effective upon its
appointment, and the former Securities Intermediary’s rights, powers and duties
as Securities Intermediary shall be terminated, without any other or further
act or deed on the part of such former Securities Intermediary (except that the
former Securities Intermediary shall deliver all Collateral then in its
possession to the successor Securities Intermediary) or any of the other
Secured Parties.  After resignation or
removal hereunder as Securities Intermediary, the provisions of this Agreement
shall inure to, and continue to be binding upon, the former Securities
Intermediary’s benefit as to any actions taken or omitted to be taken by it
while it was Securities Intermediary.

 

(f)                                    Survival.  All representations and warranties made in
this Agreement or in

 

13

 

any
certificate or other document delivered pursuant to or in connection with this
Agreement shall survive the execution and delivery of this Agreement or such
certificate or other document (as the case may be) or any deemed repetition of
any such representation or warranty.

 

(g)                                 Severability.  Any provision of this Agreement held to be invalid,
illegal or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability
without affecting the validity, legality and enforceability of the remaining
provisions of this Agreement; and the invalidity of a particular provision in a
particular jurisdiction shall not invalidate such provision in any other
jurisdiction.

 

(h)                                 Captions.  The captions and section headings appearing
in this Agreement are included solely for convenience of reference and are not
intended to affect the interpretation of any provision of this Agreement.

 

(i)                                     Counterparts.  This Agreement may be executed in any number
of counterparts, all of which taken together shall constitute one and the same
instrument and any of the parties to this Agreement may execute this Agreement
by signing any such counterpart.  Delivery of an executed counterpart of a
signature page to the Agreement by hand or by facsimile shall be as
effective as the delivery of a fully executed counterpart of this Agreement.

 

(j)                                     Agreement for Benefit of Parties
Hereto.  Except for the Secured Parties
and their respective successors and permitted assigns, nothing in this
Agreement, express or implied, is intended or shall be construed to confer
upon, or to give to, any Person other than the parties hereto and their
respective successors and permitted assigns, and Persons for whom the parties
hereto are acting as agents or representatives, any right, remedy or claim
under or by reason of this Agreement or any covenant, condition or stipulation
in this Agreement; and the covenants, stipulations and agreements contained in
this Agreement are and shall be for the sole and exclusive benefit of the
parties hereto and their respective successors and permitted assigns and
Persons for whom the parties hereto are acting as agents or representatives.

 

(k)                                  Special Exculpation.  To the extent permitted by applicable law, no
claim may be made by any party hereto or any other person against any other
party hereto or the affiliates, directors, officers, employees, attorneys or
agents of any of them for any special, indirect, consequential or punitive
damages in respect of any claim for breach of contract or any other theory of
liability arising out of or relating to this Agreement or the transactions
contemplated hereby, or any act, omission or event occurring in connection
therewith and the parties hereto hereby waive, release and agree not to sue
upon any claim for any such damages, whether or not accrued and whether or not
known or suspected to exist in its favor.

 

14

 

(l)                                     Governing Law; Submission to
Jurisdiction.  THIS AGREEMENT SHALL BE
GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE LAW OF THE STATE OF NEW YORK
WITHOUT REFERENCE TO CONFLICT OF LAWS PROVISIONS THEREOF (OTHER THAN SECTION 5-1401
AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).  EACH PARTY TO THIS AGREEMENT HEREBY SUBMITS
TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR THE
SOUTHERN DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN NEW
YORK CITY FOR THE PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR RELATING
TO THIS AGREEMENT OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.  EACH PARTY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY APPLICABLE LAW, ANY OBJECTION THAT IT MAY NOW OR IN
THE FUTURE HAVE TO THE LAYING OF THE VENUE OF ANY SUCH PROCEEDING BROUGHT IN
ANY SUCH COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING BROUGHT IN ANY SUCH COURT
HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

(m)                               Waiver of Jury Trial.  EACH OF BORROWER, SECURITY
AGENT AND SECURITIES INTERMEDIARY HEREBY IRREVOCABLY WAIVES, TO THE FULLEST
EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL
PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT OR THE TRANSACTIONS
CONTEMPLATED HEREBY.

 

(n)                                 Amendment; Waiver.  No amendment or waiver of any provision of
this Agreement shall be effective unless the same shall be in writing and
signed by all parties hereto, and any such waiver or amendment shall be
effective only in the specific instance and for the specific purpose for which
given; provided, however, that the amendment of Section 6
hereunder shall be effective upon written consent of the Borrower and Security
Agent.

 

(o)                                 Termination of Agreement.  Except as provided herein, this Agreement
shall remain in full force and effect until the date upon which the Discharge of Obligations
occurs.

 

(p)                                 Compliance with Patriot Act.  In accordance with the
requirements of the Patriot Act, all parties to this Agreement must provide the
Securities Intermediary with a fully executed IRS Form W-9 upon execution
of this Agreement.  Each party agrees to
provide to the Securities Intermediary from time to time upon its request such
other documentation as would show proper authorization for such party to enter
into this Agreement and to evidence compliance with the Patriot Act.

 

[SIGNATURES TO FOLLOW]

 

15

 

IN
WITNESS WHEREOF, the parties have caused this Agreement to be duly executed and
delivered as of the day and year first above written.

 

	
   

  	
  STETSON HOLDINGS, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  BNP PARIBAS,

  
	
   

  	
  as the Security Agent
  for the Secured Parties

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  SUNTRUST
  BANK,

  
	
   

  	
  as Securities
  Intermediary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Schedule 1 to Account Control Agreement

 

STETSON
HOLDINGS, LLC ACCOUNTS

 

	
  7931044

  	
  - Stetson Disbursement
  Account

  
	
  7931045

  	
  - Stetson Operating
  Account

  
	
  7931046

  	
  - Stetson Revenue
  Account

  
	
  7931047

  	
  - Stetson Debt Service
  Reserve Account

  
	
  7931048

  	
  - Stetson O&M
  Reserve Account

  
	
  7931050

  	
  - Stetson Loss Proceeds
  Account

  
	
  7931051

  	
  - Stetson Government
  Grant Proceeds Account

  
	
  7931049

  	
  - Stetson I Holding
  Account

  
	
  7931052

  	
  - Stetson Distribution
  Reserve Account

  
	
  7933134

  	
  - Stetson Gen Lead
  Account

  
	
  7933154

  	
  - Stetson Energy Hedge Reserve Account

  

 

Exhibit E-4

 

1

 

EXHIBIT
E-5

to
Financing Agreement

 

SCHEDULE
OF PERMITTED ENCUMBRANCES

 

Stetson
Mountain Wind I

 

1.               Non-exclusive easement for roadways
contained in Reciprocal Road Easement dated December 1, 1999 and recorded
on December 6, 1999 in Book 2395, Page 117 of Washington County
Registry of Deeds between John Hancock Mutual Life Ins. Co. and Lakeville
Shores, Inc. and rerecorded on January 26, 2000 in Book 2405, Page 254
of the Washington County Registry of Deeds.

 

2.               Provision of the Maine Tree Growth Tax
Law, Title 36, M.R.S.A, Section 571-5S4A.

 

3.               Maine Commercial Forestry Excise Tax,
Title 36, M.R.SA. Section 2721, 2727.

 

4.               Terms
and conditions of Land
Lease Agreement dated October 12, 2006, First Amendment to Land Lease
Agreement dated March 30, 2007 and Second Amendment to Land Lease
Agreement dated August 17, 2007, all as evidenced by Memorandum of Lease
dated October 13, 2008, by and between Lakeville Shores Inc., as Lessor,
and Evergreen Wind Power V, LLC, as Lessee, recorded on October 17, 2008
in Book 3462, Page 292, Document No. 11448, Register of Deeds,
Washington County, Maine.

 

5.               Rights to cross and recross reserved in the Trustee’s
Deed from Edward D. Leonard III, as Trustee of Land Exchange Trust, under
Declaration of Trust dated November 1, 1991 to Herbert C. Haynes, Inc.
dated May 28, 1998 and recorded in Book 2246, Page 137 of Washington
County Registry of Deeds.

 

6.               Terms and conditions of Shared Facilities and Sublease
Agreement as evidenced by Memorandum of Shared Facilities and Sublease
Agreement dated December     , 2009 by and between
Evergreen Wind Power V, LLC and Stetson Wind II, LLC recorded on December     ,
2009 in Book         , Page           ,
Document No.                   ,
Register of Deeds, Washington County, Maine.

 

Exhibit E-5

 

1

 

Stetson Mountain Wind Line 56

 

The Permits, Routes, and Sections referred to herein are the same as
those Permits, Routes, and Sections referred to in the Stetson Mountain Wind
Line 56 loan policy issued by Stewart Title Guaranty Company in connection with
the closing under this Agreement.

 

Permits

 

a.               Terms and conditions of
Permit by and between Evergreen Wind Power V LLC/UPC Wind and Department of
Environmental Protection dated March 18, 2008 and filed in the Penobscot
County Registry of Deeds on April 2, 2008 in Book 11345, Page 249.

 

Section R1/R3.

Routes 1 and 3; SGC File
No: CHES-13-3; T&B File No: 07-1568AR

 

R1/3. a.                                           Terms of Supplemental Indenture from
Bangor Hydro-Electric Company to JP Morgan Chase Bank, N.A. dated as of May 13,
2005, recorded in Penobscot Registry of Deeds in Book 9879, Page 134 in
the original principal amount of $126,000,000.00 (supplementing an earlier
indenture [mortgage] on other property) [as to Exhibit A-R1/3].

 

R1/3. b.                                          Non-exclusive right of way for ingress and egress
described in a deed from Rodney Savage and Beatrice Savage to Robert Harmon, Sr.
dated December 7, 1974, recorded in Penobscot Registry of Deeds in Book
2612, Page 39 [as to Exhibit A-R1/3].

 

R1/3. c.                                           Non-exclusive easements for pole lines
contained in Deed of Pole Line Easements from Rodney L. Savage to Maine
Electric Power Company, Inc. dated September 16, 1969, recorded in
Penobscot Registry of Deeds in Book 2169, Page 405 [as to Exhibit A-R1/3].

 

R1/3. d.                                          Non-exclusive easement for anchor guys contained in
instrument from Rodney L. Savage to Maine Electric Power Company, Inc.
dated February 18, 1970, recorded in Penobscot Registry of Deeds in Book
2179, Page 623 [as to Exhibit A-R1/3].

 

R1/3. e.Terms and provisions of Generator Lead
Easement Agreement and Right of First Refusal between Bangor Hydro-Electric
Company and Evergreen Wind Power V, LLC dated October 10, 2008 recorded October 17,
2008 in Penobscot Registry of Deeds in Book 11563, Page 77 [as to Exhibit A-R1/3].

 

R1/3. f.                                             Mortgage from Carlton W. Aylward, et als.
to Northeast Bank of Lincoln, dated December 9, 1977 and recorded in
Penobscot Registry of Deeds in Book 2822, Page 119 in the original amount
of $25,000.00.  [as to Exhibit A-R1/3].

 

R1/3. g.                                          Second Mortgage from The Lincoln Company to George E.
Edwards, et al., recorded January 3, 1986 and recorded in Penobscot
Registry of Deeds in Book 3768, Page 105 in the original amount of
$14,758.83, as assigned to Norstar Bank of Maine by Assignment of Mortgage
instrument dated January 20, 1986 and recorded in Penobscot Registry of
Deeds in Book 3775, Page 227.  [as
to Exhibit A-R1/3].

 

Exhibit E-5

 

 

R1/3. i. A Non-exclusive; easement for
electricity and communication purposes from Gardner Land Company, Inc. to
Bangor Hydro-Electric Company dated November 8, 2002, recorded in
Penobscot Registry of Deeds in Book 8488, Page 103.

 

Section R4/5.

Routes 4 and 5; SGC File
No:  CHES-10-2/CHES-12-01; T&B File
No:  07-1658AR

 

R4/5. a                                           NON-EXCLUSIVE EASEMENT FOR
ELECTRIC/COMMUNICATION LINES CONTAINED IN EASEMENT DEED FROM LAKEVILLE SHORES,
INC. TO BANGOR HYDRO-ELECTRIC COMPANY DATED DECEMBER 3, 2002, RECORDED IN
PENOBSCOT REGISTRY OF DEEDS IN BOOK 8509, PAGE 127 [AS TO EXHIBIT A-R4/5].

 

R4/5. b. TERMS AND PROVISIONS OF GENERATOR LEAD
EASEMENT AGREEMENT AND RIGHT OF FIRST REFUSAL BETWEEN BANGOR HYDRO-ELECTRIC
COMPANY AND EVERGREEN WIND POWER V, LLC RECORDED OCTOBER 17, 2008 IN PENOBSCOT
REGISTRY OF DEEDS IN BOOK 11563, PAGE 77 [AS TO EXHIBIT A-1/3].

 

Section R6.

Route 6; SGC File
No:  CHES-10-14; T&B File No:  07-1533AR

 

R6. a.      Terms and conditions of non-exclusive
easement to install, operate and maintain an electric transmission line
contained in Crossing Easement Agreement granted by Evergreen Wind Power V, LLC
to Bangor Hydro Electric Company dated October 10, 2008 and recorded October 17,
2008 in the Penobscot County Registry of Deeds in Book 11563, Page 59 [as
to Exhibit A-R6].

 

Section R7.

Route 7; SGC File
No:  CHES-10-7; T&B File No:  07-1175AR

 

R7. a.      Reservation of
right to enter to remove materials for railway in favor of the Atlantic and
Northwest Rail company and the Canadian Pacific Railway Company contained in an
instrument from Arden H. Lancaster, Ronald K. Lancaster and Elizabeth Lancaster
to 

 

Exhibit E-5

 

 

Donald Morin and Elizabeth A. Morin dated January 13, 1981,
recorded in Penobscot Registry of Deeds in Book 3158, Page 59.

 

Section R8.

Route 8; SGC File
No:  CHES-10-11; T&B File No:  07-1176AR

 

R8. a.      Terms
of Memorandum of Temporary Easement for Construction Access and Laydown Area
between Evergreen Wind Power V, LLC and Loren A. Hale and Joyce M. Hale dated July 8,
2008, recorded in Penobscot Registry of Deeds in Book 11456, Page 145.  NOTE: 
This exception will no longer apply after the date of its stated
expiration (June 30, 2010) [as to Exhibit A-R8].

 

Section R9

R9a.        (Pea Ridge Road) Terms and conditions of unrecorded
Grant of Utility Location Permit issued by the Town of Chester to Evergreen
Wind Power V, LLC for crossing the Pea Ridge Road.

 

Section R10.

Route 10; SGC File
No:  CHES-10-12; T&B File No:  07-1177AR

 

a.

 

b.                                      R10. a. Non-exclusive easement for utility purposes from Donald L. Whitney to Bangor Hydro Electric Company dated June 25,
1993, recorded in Penobscot Registry of Deeds in Book 5377, Page 82 [as to
Exhibit A-R10].

 

c.                                       R10. c. Terms
and conditions of non-exclusive pole line easement contained in Pole
Line Easement from Donald L. Whitney to
Bangor Hydro Electric Company dated November 3, 1959, recorded in Penobscot Registry of
Deeds in Book 1700, Page 335, said rights subject to a Consent Agreement
between Bangor Hydro-Electric Company and Evergreen Wind Power V, LLC dated October 10,
2008, recorded in Book 11563, Page 41 [as to Exhibit A-R10].

 

Section R12.

Route 12; SGC File
No:  CHES-11-2; T&B File No:  07-1484AR

 

R12.
a. Income tax lien against Penny L. Hurd and Sean W. Hurd in favor of the
State of Maine dated September 18, 2008, recorded in Penobscot Registry of
Deeds in Book 11536, Page 337 in the original amount of $591.76 (to be
discharged) [as to Exhibit A-R12].

 

Section R15/R19.

Routes 15 & 19;
SGC File No:  CHES-09-04; T&B File
No:  07-1174AR

 

Exhibit E-5

 

 

d.

 

e.                                       R15/19. a. Non-exclusive highway easement contained in instrument from Edward J. Whitney, Sr. to the State of Maine dated May 29,
1963, recorded in Penobscot Registry of Deeds in Book 1897, Page 32 [as to
Exhibit A-R15/19].

 

R15/19.
b.  Terms of Memorandum of Temporary
Easement for Construction Laydown Area between Evergreen Wind Power V, LLC and
The Gerrity Family Limited Partnership dated August 5, 2008, recorded in
Penobscot Registry of Deeds in Book 11514, Page 205.  NOTE: 
This exception will no longer apply after the date of its stated
expiration (June 30, 2010) [as to Exhibit A-R15/19].

 

R15/19. c. Terms and provisions of Transmission Line
Easement Deed by and between Evergreen Wind Power V, LLC to Maine Electric
Power Company, Inc. dated October 2, 2008, recorded October 7,
2008 in Penobscot Registry of Deeds in Book 11553, Page 18. [as to Exhibit A-R15/19].

 

Section R16
(Highway Route 116).Terms and conditions of unrecorded Permit Record No
51818, issued by the State of Maine Department of Transportation to Evergreen
Wind Power V, LLC, dated January 31, 2008, for crossing of State Route 116

 

Section R20.

 

f.              Route 20; SGC File No:  CHES-18-01; T&B File No:  07-1178AR

 

R20.
a.  Non-exclusive pole line easements
contained in Deed of Pole Line Easements from Harlan H. Whitney and Pauline D.
Whitney to Bangor Hydro Electric Company dated October 9, 1967, recorded
in Penobscot Registry of Deeds in Book 2117, Page 543 [as to Exhibit A-R20].

 

R20.
b.  Terms and provisions of Transmission
Line Easement Deed by and between Evergreen Wind Power V, LLC to Maine Electric
Power Company, Inc. dated October 2, 2008, recorded October 7,
2008 in Penobscot Registry of Deeds in Book 11553, Page 18. [as to Exhibit A-R20].

 

Section R21.

Route 21; SGC File
No:  CHES-04-03; T&B File No:  07-1611AR

 

R21.
a.   Non-exclusive easement to install,
maintain and operate electric wires contained in an instrument from St. Regis
Paper Company, et al. to Bangor Hydro-Electric Company dated October 17,
1968, recorded in Penobscot Registry of Deeds in Book 2147, Page 832 [as
to Exhibit A-R21].

 

R21.
b.  Terms and provisions of Transmission
Line Easement Deed by and between Evergreen Wind Power V, LLC to Maine Electric
Power Company, Inc. dated October 2, 2008, 

 

Exhibit E-5

 

 

recorded October 7,
2008 in Penobscot Registry of Deeds in Book 11553, Page 18. [as to Exhibit A-R21].

 

Section R24/25.

Routes 24 and 25; SGC
File No:  CHES-18-9 and CHES-18-11;
T&B File No:  07-1180AR and 07-1181AR

 

R24/25.
a.  Non-exclusive easement for ingress
and egress contained in Easement instrument from Everett Harmon to Donald
DeWitt dated December 1, 1965, recorded in Penobscot Registry of Deeds in
Book 2062, Page 173 [as to Exhibit A-R25 only].

 

Section R26.

Route 26; SGC File
No:  CHES-18-13; T&B File No:  07-1485AR

 

R26.
a.  Non-exclusive right of way contained
in instrument from Robert L. Harmon to Herbert C. Haynes dated August 30,
1973 recorded at said Registry in Book 2402, Page 114 [as to Exhibit A-R26].

 

R26.
b.  Non-exclusive right of way for
ingress and egress contained in an instrument from Robert Harmon to Donald
DeWitt contained in a deed dated December 7, 1965 recorded at said
Registry in Book 2062, Page 170 [as to Exhibit A-R26].

 

Section R30.

Route 30; SGC File
No:  CHES-5-2.6; T&B File No:  07-1173AR

 

R30.
a.  Non-exclusive 50 foot wide access
right of way described in Warranty Deed from Herbert C. Haynes, Inc. to
Albert S. Ring and Linda M. Ring dated July 27, 1981, recorded in Penobscot Registry of Deeds in Book 3219, Page 174
[as to Exhibit A-R30].

 

R30.
b. Terms and provisions of Memorandum of Temporary Easement For Construction
Access & Laydown Area between Evergreen Wind Power V, LLC and Albert
S. Ring and Linda M. Ring dated July 5, 2008, recorded in Penobscot
Registry of Deeds in Book 11457, Page 227 [as to Exhibit A-R30].  NOTE: 
This exception will no longer apply after the date of its stated
expiration (June 30, 2010).

 

Section R31.

Route 31; SGC File
No:  CHES-5-2.3; T&B File No:  07-1172AR

 

R31.
a.  Non-exclusive 50 foot wide access
right of way described in an instrument from Herbert C. Haynes, Inc to Prentiss &
Carlisle Company, Inc., et al. dated September 19, 1984, recorded in
Penobscot Registry of Deeds in Book 3612, Page 324 [as to Exhibit A-R31].

 

Exhibit E-5

 

 

R31. b.  Non-exclusive right of way for ingress and
egress contained in Warranty Deed from Herbert C. Haynes, Inc. to Edward
F. Sargent, Jr. dated November 1, 1988, recorded in Penobscot
Registry of Deeds in Book 4377, Page 229 [as to Exhibit A-R31].

 

Section R31.5.

 

R31.5 a. 
Non-exclusive right of way contained in Warranty Deed from H.C. Haynes, Inc.
to Richard W. Maheux, recorded in Penobscot Registry of Deeds in Book 3957, Page 300.

 

R31.5 b. 
Non-exclusive right of way for ingress or egress contained in Warranty
Deed from Herbert C. Haynes, Inc. to William Sirigos, dated March 3,
1994, recorded in Penobscot Registry of Deeds in Book 6626, Page 146.

 

R31.5 c. 
Non-exclusive right of way contained in Warranty Deed from Herbert C.
Haynes, Inc. to William H. Winslow and Donald C. Cartonio, Sr., dated
April 1, 1987, recorded in Penobscot Registry of Deeds in Book 4028, Page 174.

 

R31.5 d. 
Non-exclusive right of way contained in Warranty Deed from Herbert C.
Haynes, Inc. to B.M.W. Realty Co., dated May 1, 1987, recorded in
Penobscot Registry of Deeds in Book 4056, Page 297.

 

R31.5 e. 
Non-exclusive 50 foot wide access right of way and non-exclusive 50 foot
wide right of way for all purposes of a way contained in Warranty Deed from
Herbert C. Haynes, Inc. to B.M.W. Realty Co., dated May 1, 1987,
recorded in Penobscot Registry of Deeds in Book 4067, Page 226

 

R31.5 f. 
Non-exclusive right of way for ingress and egress contained in Warranty
Deed from Herbert C. Haynes, Inc. to Edward F. Sargent, Jr., dated November 1,
1988, recorded in Penobscot Registry of Deeds in Book 4377, Page 229.

 

R31.5 g. 
Non-exclusive right of way for ingress and egress contained in Warranty
Deed from Herbert C. Haynes, Inc. to Edward F. Sargent and Geraldine E.
Sargent, dated November 1, 1988, recorded in Penobscot Registry of Deeds
in Book 4378, Page 335.

 

R31.5 h. 
Non-exclusive right of way for ingress and egress contained in Warranty
Deed from Herbert C. Haynes, Inc. to Joseph T. Giansanti, dated January 1,
1989, recorded in Penobscot Registry of Deeds in Book 4398, Page 81.

 

R31.5 i. 
Non-exclusive right of way for all purposes of a way, including
utilities purposes and ingress and egress, contained in Warranty Deed from
Herbert C. Haynes, Inc. to Donald C. Cartonio, Sr., Patrick A.
Cartonio, Joseph F. Cartonio, and Donald C. Cartonio, Jr., dated January 1,
1990, recorded in Penobscot Registry of Deeds in Book 4600, Page 265.

 

Exhibit E-5

 

 

Section R36
(Butterfield Ridge Road)

 

R36. a                Terms and conditions of Unrecorded Grant of Utility Location Permit by the Town of Woodville to
Evergreen Wind Power V, LLC, dated May 12, 2008 for crossing the
Butterfield Ridge Road.

 

Section R38.

Route 38; SGC File
No:  WOOD-2-10; T&B File No:  07-1734AR

 

Section 38
(Eastern Maine Railway Company) Terms and conditions of  Overhead Wire
Agreement from Eastern Maine Railway Company dated May 01, 2008, a
memorandum of which was dated May 1, 2008 and recorded July 29, 2008
in the Penobscot County Registry of Deeds in Book 11478, Page 169.

 

Section R39.

Route 39; SGC File
No:  WOOD-2-4B; T&B File No:  07-1310AR

 

R39. a.  TERMS CONTAINED IN SUPPLEMENTAL FINAL ORDER AND JUDGMENT RECORDED
AUGUST 27, 2007, IN PENOBSCOT REGISTRY OF DEEDS IN BOOK 11100, PAGE 1, AS SUCH
TERMS ARE MODIFIED BY AND SUBJECT TO RIGHTS CONTAINED IN AND TERMS OF A CONSENT
AGREEMENT BETWEEN AT&T CORP. AND ROYAL M. SCHOONOVER AND VANESSA V.
SCHOONOVER DATED APRIL 22, 2008, RECORDED IN PENOBSCOT REGISTRY OF DEEDS IN
BOOK 11385, PAGE 40 [AS TO EXHIBIT A-R39].

 

Section R40.

Route 40; SGC File
No:  WOOD-2-8; T&B File No:  07-1534AR

 

R40.
a.  Reservation from International Paper
Company to IP Maine Forests L.L.C. for mineral rights in, on or under any of
the Grantor’s land.  [as to Exhibit A-R40].

 

Section R41.

Route 41; SGC File
No:  WOOD-2-9; T&B File No:  07-1608AR

 

R41.
a.  A survey plan prepared for Prentiss &
Carlisle Company, Inc. dated June 23, 1988 prepared by Gilbert S.
Viitala, Land Surveyor for Prentiss & Carlisle Co., Inc.
Engineers and recorded Penobscot Registry of Deeds in Map File D 121-88,
depicts the U.S. Government pipeline running to Loring, crossing the insured
property, not withstanding the fact that the pipeline easement is located
outside the area of any improvements proposed or constructed [as to Exhibit A-R41].

 

Exhibit E-5

 

 

Section R42.

Route 42; SGC File
No:  WOOD-2-3; T&B File No:  07-1535AR

 

R42.
a.  Reservation from International Paper
Company to IP Maine Forests L.L.C. for mineral rights in, on or under any of
the Grantor’s land [as to Exhibit A-R42].

 

Section R43/45.

Routes 43/45; SGC File
No:  WOOD-2-14; T&B File No:  07-1186AR

 

R43/45
a.  Non-exclusive easement to construct,
maintain and operate a line of poles and wires and transmit electricity and
voice contained in instrument from Vernon F. Robichaud to Bangor Hydro-Electric
Company dated November 8, 1962, recorded in Penobscot Registry of Deeds in
Book 1868, Page 55 [as to Exhibit A-R43/45].

 

R43/45.
b.  Non-exclusive pipeline easement
contained in instrument from Jacob Robichaud to the United States of America
dated April 8, 1953, and recorded at said Registry in Book 1386, Page 143.
[as to Exhibit A-R43/45].  ].  [as to Exhibit A-R44].

 

R43/45.
c.  Subject to any existing non-exclusive
rights of the public in and to any and all public roads or highways across the
same. [as to Exhibit A-R43/45].

 

Section R46.

Route 46; SGC File
No:  WOOD-2-15.1; T&B File No:  07-1187AR

 

R46.
a.  Non-exclusive easement to construct,
maintain and operate an electricity line contained in an instrument from Floyd
Welch to Bangor Hydro-Electric Company dated October 3, 1963, recorded in
Penobscot Registry of Deeds in Book 1918, Page 293, as modified by a
Consent Agreement between Bangor Hydro-Electric Company and Evergreen Wind
Power V, LLC dated October 17, 2008, recorded in Book 11563, Page 37
[as to Exhibit A-R46].

 

R46.
b.  Non-exclusive right of way for all
purposes of a way described in a Warranty Deed from Wellington O. Hicks, Jr.
and Anna D. Hicks to Hayden P. McCarthy dated May 25, 1995, recorded in
Penobscot Registry of Deeds in Book 5869, Page 68 [as to Exhibit A-R46].

 

Sections
R47 (River Road)

 

R47.
a.  Terms and conditions of unrecorded
Grant of Utility Location Permit issued by the Town of Woodville to Evergreen
Wind Power V, LLC, dated May 12, 2008, for crossing River Road.

 

Section R50.

Route 50; SGC File
No:  MATT-U4-12; T&B File No:  07-1730AR

 

R50. A. 
NON-EXCLUSIVE RIGHT OF WAY FOR INGRESS AND EGRESS AND NON-EXCLUSIVE

 

Exhibit E-5

 

 

PIPELINE
EASEMENT SET FORTH IN A DEED FROM JOHN R. ESTES TO L.D. BEARCE COMPANY DATED
JUNE 8, 1936, RECORDED IN PENOBSCOT REGISTRY OF DEEDS IN BOOK 1108, PAGE 497
[AS TO EXHIBIT A-R50].

 

R50. B. 
NON-EXCLUSIVE EASEMENT FOR VEHICULAR AND PEDESTRIAN INGRESS AND EGRESS
ASSIGNED FROM EVERGREEN WIND POWER V, LLC TO NORTHERN TIMBERS, INC. IN ASSIGNMENT
OF EASEMENT RIGHTS DATED MARCH 14, 2008, AND RECORDED ON MARCH 28,
2008 IN PENOBSCOT REGISTRY OF DEEDS IN BOOK 11338, PAGE 149 [AS TO EXHIBIT
A-R50].

 

Route 51
(Route 2)

 

R51.
a.  Terms and conditions of Permit Record
No. 51814, issued by State of Maine Department of Transportation to
Evergreen Wind Power V, LLC, dated January 31, 2008, for crossing US Route
2.

 

Route 52
(Eastern Maine Railway)

 

R52.
a.  Terms and conditions of an Overhead
Wire Agreement from Eastern Maine Railway Company, a memorandum of which was
dated May 1, 2008 and recorded July 29, 2008 in the Penobscot County
Registry of Deeds in Book 11478, page 166.

 

Route 53

 

R53.
a.  Terms and conditions of an Overhead
Wire Agreement from Maine Central Railroad Company dated May 15, 2008, a
memorandum of which was recorded June 4, 2008, in the Penobscot County
Registry of Deeds in Book 11414, Page 332.

 

Section R55.

Route 55; SGC File
No:  MATT-U3-7; T&B File No:  07-1189AR

 

R55.
a.  Terms and conditions of Memorandum of
Option Agreement between Richard A. Delaite and David W. Delaite to Evergreen
Wind Power III, LLC dated July 17, 2008, recorded in Penobscot Registry of
Deeds in Book 11467, Page 253.

 

Exhibit E-5

 

 

R55. B. 
TERMS AND CONDITIONS OF EASEMENT FOR RIGHT OF WAY ACCESS ROAD FROM RICHARD
A. DELAITE AND DAVID W. DELAITE TO EVERGREEN WIND POWER V, LLC DATED MAY 2,
2008, RECORDED IN PENOBSCOT REGISTRY OF DEEDS IN BOOK 11384, PAGE 323.

 

Section R56.

Route 56; SGC File
No:  MATT-R1-2A; T&B File No:  07-1190AR

 

R56.
a.  Non-exclusive easement for purpose of
ingress and egress contained in Warranty Deed from Hayden P. McCarthy to Bion
Tolman dated May 14, 1998, recorded in Penobscot Registry of Deeds in Book
6691, Page 75 [as to Exhibit A-R56].

 

Section R57.

Route 57; SGC File
No:  MATT-U5-10; T&B File No:  07-1478AR

 

R57.
a.  Terms and conditions of Transmission
Line Right of Way Easement from Forster Manufacturing Company, Inc. to
Kingman Electric Cooperative recorded in the Penobscot County Registry of Deeds
in Book 1546, page 252, said easement rights having been assigned by Deed
and Bill of Sale from Kingman Electric Cooperative, Inc. to Eastern Maine
Electric Cooperative, Inc., dated May 13, 1964, recorded in Book
1949, page 5, as further assigned by Assignment and Assumption of Property
Rights Agreement between Eastern Maine Electric Cooperative, Inc. and
Evergreen Wind Power V. LLC dated June 6, 2008, recorded in Book 11420, Page 179
[as to Exhibit A-R57].  The grant of
easement contained herein extends to the tread of the Mattawamkeag River.  This easement, described as R57 in Schedule A
hereto, abuts the easement granted to Evergreen Wind Power V, LLC described as
R60/62 in Schedule A hereto.

 

R57.
b.  Terms of Notice of Landfill Closure
from Forster, Inc. dated January 10, 1995, recorded in Penobscot
Registry of Deeds in Book 5805, Page 227 as affected by Corrective Notice
of Landfill Closure from Forster, Inc. dated February 9, 1995,
recorded in Penobscot Registry of Deeds in Book 5806, Page 294 [as to Exhibit A-R57].

 

R57.
d.  Reservation of non-exclusive easement
for purposes of ingress and egress and performing environmental remediation
contained in Quitclaim Deed with Covenant from Forster, Inc. to Aroostook
and Bangor Resources, Inc. dated February 9, 1995, recorded in
Penobscot Registry of Deeds in Book 5815, Page 92 [as to Exhibit A-R57].

 

Section R58.

Route 58; SGC File
No:  MATT-R1-02; T&B File No:  07-1532R

 

Exhibit E-5

 

 

R58.
a.  Non-exclusive rights of the public
and other to so much of the premises as lies within the bed or bottom of the
Mattawamkeag River and Mattakeunk Stream, their arms, branches or tributaries
by whatever name called [as to Exhibit A-R58].

 

R58.
b.  Reservation of non-exclusive mineral
rights contained in Quit Claim Deed with Covenant from International Paper
Company to IP Timberlands Operating Company, LTD dated March 14, 1985,
recorded in Volume 3712, Page 223 [as to Exhibit A-R58].

 

Section R60/62.

Routes 60/62; SGC File
No:  MATT-R1-24; T&B File No:  07-1482AR

 

R60/62.
a.  Non-exclusive easement for access to
Mattawamkeag River for purpose of launching canoes contained in instrument from
Melvin L. Vicaire to Penobscot Reservation Tribal Council dated March 26,
1975, recorded in Penobscot Registry of Deeds in Book 2535, Page 134 [as
to Exhibit A-R60/62].

 

R60/62.
b. Terms and provisions of Transmission Line Right of Way Easement from Bert J.
and Margaret Libbey to Kingman Electric Cooperative dated September 16,
1952, recorded in Penobscot Registry of Deeds in Book 1546, Page 253, said
right of way easement assigned from Kingman Electric Cooperative to Eastern
Maine Electric Cooperative, Inc. in Deed and Bill of Sale dated May 13,
1964 recorded in Book 1949, Page 5 and said easement rights having been
further assigned by Assignment and Assumption of Property Rights Agreement
between Eastern Maine Electric Cooperative, Inc. and Evergreen Wind Power
V, LLC dated June 6, 2008, recorded in Book 11420, Page 179 as to Exhibit A-R60/62.
– (EA) [as to Exhibit A-R60/62].

 

Section R61
(River Road)

 

R61. b Unrecorded Grant of
Utility Location Permit issued by Town of Mattawamkeag to Evergreen Wind Power
V, LLC, dated May 22, 2008 for crossing River Road.

 

Section R63.

Route 63; SGC File
No:  MATT-R1-26; T&B File No:  07-1481AR

 

R63. A. 
TERMS AND PROVISIONS OF TRANSMISSION LINE RIGHT OF WAY EASEMENT FROM
VERNON PHILBRICK AND MILDRED PHILBRICK TO KINGMAN ELECTRIC COOPERATIVE DATED
DECEMBER 5, 1951, RECORDED IN PENOBSCOT REGISTRY OF DEEDS IN BOOK 1546, PAGE
254, SAID RIGHT OF WAY EASEMENT ASSIGNED FROM KINGMAN ELECTRIC COOPERATIVE TO
EASTERN MAINE ELECTRIC COOPERATIVE, INC. IN DEED AND BILL OF SALE DATED MAY 13,
1964 RECORDED IN BOOK 1949, PAGE 5 AND SAID EASEMENT 

 

Exhibit E-5

 

 

RIGHTS
HAVING BEEN FURTHER ASSIGNED BY ASSIGNMENT AND ASSUMPTION OF PROPERTY RIGHTS
AGREEMENT BETWEEN EASTERN MAINE ELECTRIC COOPERATIVE, INC. AND EVERGREEN WIND
POWER V, LLC DATED JUNE 6, 2008, RECORDED IN BOOK 11420, PAGE 179 [AS TO
EXHIBIT A-R63].

 

Section R66.

Route 66; SGC File
No:  MATT-R2-03-16; T&B File No:  07-1420AR

 

R66.
a.  Terms and provisions of Transmission
Line Right of Way Easement from George W. and Ethel S. Pettengill to Kingman
Electric Cooperative dated September 17, 1952 and recorded in Penobscot
Registry of Deeds in Book 1546, Page 256, said right of way easement
assigned from Kingman Electric Cooperative to Eastern Maine Electric
Cooperative, Inc. in Deed and Bill of Sale dated May 13, 1964
recorded in Book 1949, Page 5 and said easement rights having been further
assigned by Assignment and Assumption of Property Rights Agreement between
Eastern Maine Electric Cooperative, Inc. and Evergreen Wind Power V, LLC
dated June 6, 2008, recorded in Book 11420, Page 179  [as to Exhibit A-R66].

 

Section R67.

Route 67; SGC File
No:  MATT-R2-03-17; T&B File No:  07-1419AR

 

R67.
a.  Terms and provisions of Transmission
Line Right of Way Easement from George and Ethel Pettengill to Kingman Electric
Cooperative dated September 17, 1952, recorded in Penobscot Registry of
Deeds in Book 1546, Page 256, said right of way easement assigned from
Kingman Electric Cooperative to Eastern Maine Electric Cooperative, Inc.
in Deed and Bill of Sale dated May 13, 1964 recorded in Book 1949, Page 5
and said easement rights having been further assigned by Assignment and
Assumption of Property Rights Agreement between Eastern Maine Electric
Cooperative, Inc. and Evergreen Wind Power V, LLC dated June 6, 2008,
recorded in Book 11420, Page 179 [as to Exhibit A-R67].

 

Section R68/69/70.

Routes 68, 69 and 70; SGC
File No:  MATT-R2-03-18 and R2-03-19;
T&B File No:  07-1421AR

 

R68/69/70.  a. 
Terms and provisions of Transmission Line Right of Way Easement from
George W. and Ethel S. Pettengill to the Kingman Electric Cooperative dated September 17,
1952 and recorded in Penobscot Registry of Deeds in Book 1546, Page 256,
said right of way easement assigned from Kingman Electric Cooperative to
Eastern Maine Electric Cooperative, Inc. in Deed and Bill of Sale dated May 13,
1964 recorded in Book 1949, Page 5 and said easement rights having been 

 

Exhibit E-5

 

 

further assigned by Assignment and
Assumption of Property Rights Agreement between Eastern Maine Electric
Cooperative, Inc. and Evergreen Wind Power V, LLC dated June 6, 2008,
recorded in Book 11420, Page 179. This easement being a 100-foot wide
strip on the south side of the railroad and running across the insured property
[as to Exhibit A-R68/69/70]

 

Section R71/72.

Routes 71 and 72; SGC
File No:  MATT-R2-03-21 and R2-03-22;
T&B File No:  07-1514AR

 

R71/72. a.  Terms and provisions of Transmission Line
Right of Way Easement from George W. and Ethel S. Pettengill to the Kingman
Electric Cooperative dated September 17, 1952 and recorded in Penobscot
Registry of Deeds in Book 1546, Page 256, said right of way easement
assigned from Kingman Electric Cooperative to Eastern Maine Electric
Cooperative, Inc. in Deed and Bill of Sale dated May 13, 1964
recorded in Book 1949, Page 5 and said easement rights having been further
assigned by Assignment and Assumption of Property Rights Agreement between
Eastern Maine Electric Cooperative, Inc. and Evergreen Wind Power V, LLC
dated June 6, 2008, recorded in Book 11420, Page 179 [as to Exhibit A-R71/72].

 

R71/72.
b.  Reservation of non-exclusive 50 foot
wide right of way for all purposes of way contained in Warranty Deed from Herbert
C. Haynes, Inc. to Bruce Campbell dated January 13, 1992, recorded February 9,
2000 in Penobscot Registry of Deeds in Book 7288, Page 241 [as to Exhibit A-R71/72].

 

Section R73/74.

Routes 73 and 74; SGC
File No:  MATT-R2-03-12 and R2-03-13;
T&B File No:  07-1515AR

 

R73/74.
a.  Terms and provisions of Transmission
Line Right of Way Easement from George W. and Ethel S. Pettengill to Kingman
Electric Cooperative dated September 17, 1952 and recorded in Penobscot
Registry of Deeds in Book 1546, Page 256, said right of way easement
assigned from Kingman Electric Cooperative to Eastern Maine Electric
Cooperative, Inc. in Deed and Bill of Sale dated May 13, 1964
recorded in Book 1949, Page 5 and said easement rights having been further
assigned by Assignment and Assumption of Property Rights Agreement between
Eastern Maine Electric Cooperative, Inc. and Evergreen Wind Power V, LLC
dated June 6, 2008, recorded in Book 11420, Page 179. This being a
100 foot wide transmission line easement on the south side of the railroad over
lot 126 (and others) and across the insured property [as to Exhibit A-R73/74].

 

R73/74.
b.  Reservation of non-exclusive 50 foot
wide right of way for all purposes of way contained in Warranty Deed from
Herbert C. Haynes, Inc. to Jamie Lee Steeves dated October 16, 2001,
recorded January 3, 2002 in Penobscot Registry of Deeds in Book 8017, Page 117.
[as to Exhibit A-R73/74].

 

Section 75

Route 75; SGC File
No:  MATT-R4-1; T&B File No:  07-1606AR

 

Exhibit E-5

 

 

R75.
a.  Non-exclusive flowage rights
contained in an Indenture between American Realty Company and Winn Water &
Power Company dated March 16, 1932, recorded in Penobscot Registry of
Deeds, Volume 1059, Page 329. NOTE: 
This policy insures against loss or damage sustained by the insured by
reason of damage to the improvements constructed on the land after the date of
the policy arising out of the future exercise of any water privileges or rights
created or reserved by said instrument and existing as of the date of the
policy [as to Exhibit A-R75].

 

R75.
b.  Reservation of water privileges and
rights in an instrument by P. McCullough to the American Realty Company dated June 14,
1901, and recorded in Penobscot Registry of Deeds in Book 708, Page 175
[as to Exhibit A-R75].

 

R75.
c.  Covenants, conditions and
restrictions contained in Memorandum of Agreement between International Paper
Company, Osito Logging, Inc., and Kennebec West Forest LLC, dated December 31,
2004, and recorded in Penobscot Registry of Deeds in Book 9702, Page 326,
as affected by an Amendment to Memorandum of Agreement, effective January 21,
2005, and recorded in Book 9778, Page 216 [as to Exhibit A-R75].

 

R75. e. 
Terms and provisions of Easement Deed and Agreement between Penobscot
Forest, LLC and Evergreen Wind Power V, LLC recorded July 23, 2008,
recorded in Penobscot Registry of Deeds in Book 11473, Page 276 [as to Exhibit A-R75].

 

Section R79.

Route 79; SGC File
No:  KING-1-31-1; T&B File No:  07-1192AR

 

R79.
b.  Terms and conditions of Transmission
Line Right of Way Easement from Annie Brown to Kingman Electric Cooperative
dated June 18, 1953 and recorded at said Registry in Book 1409, Page 249,
said easement rights having been assigned by Deed and Bill of Sale from Kingman
Electric Cooperative Eastern Maine Electric Cooperative, Inc., dated May 13,
1964, recorded in Book 1949, Page 5, as further assigned by Assignment and
Assumption of Property Rights Agreement between Eastern Maine Electric
Cooperative, Inc. and Evergreen Wind Power V, LLC dated June 6, 2008,
recorded in Book 11420, Page 179. [as to Exhibit A-R79].

 

R79.
c.  Terms and conditions of Non-exclusive
easement for electric transmission line contained in Transmission Line Right of
Way Easement from Claude Gibbs and Ruth Gibbs to 

 

Exhibit E-5

 

 

Kingman Electric
Cooperative dated June 18, 1953 and recorded at said Registry in Book
1409, Page 250, said easement rights having been assigned by Deed and Bill
of Sale from Kingman Electric Cooperative Eastern Maine Electric Cooperative, Inc.,
dated May 13, 1964, recorded in Book 1949, Page 5, as further
assigned by Assignment and Assumption of Property Rights Agreement between
Eastern Maine Electric Cooperative, Inc. and Evergreen Wind Power V, LLC
dated June 6, 2008, recorded in Book 11420, Page 179. [as to Exhibit A-R79].

 

Section R80.

Route 80; SGC File
No:  KING-1-31-2; T&B File No:  07-1487AR

 

R80.  a. 
Terms and provisions of Transmission Line Right of Way Easement from
Ernest W. Oliver to Kingman Electric Cooperative dated June 18, 1953,
recorded in Penobscot Registry of Deeds in Book 1546, Page 257, said
easement rights having been assigned by Deed and Bill of Sale from Kingman
Electric Cooperative to Eastern Maine Electric Cooperative, Inc., dated May 13,
1964, recorded in Book 1949, Page 5, as further assigned by Assignment and
Assumption of Property Rights Agreement between Eastern Maine Electric
Cooperative and Evergreen Wind Power V, LLC dated June 6, 2008, recorded
in Penobscot Registry of Deeds in Book 11420, Page 179 [as to Exhibit A-R80].

 

R80.  b. 
Terms and provisions of Crossing Agreement between Eastern Maine
Electric Cooperative and Evergreen Wind Power V, LLC dated June 6, 2008,
recorded June 9, 2008 in Penobscot Registry of Deeds in Book 11420, Page 198
[as to Exhibit A-R80].

 

Section R81.

Route 81; SGC File
No:  KING-01-32; T&B File No:  07-1488AR

 

R81.
a.  Terms and provisions of Transmission
Line Right of Way Easement from Ernest W. Oliver to Kingman Electric
Cooperative dated June 18, 1953, recorded in Penobscot Registry of Deeds
in Book 1546, Page 257; said easement rights having been assigned by Deed
and Bill of Sale from Kingman Electric Cooperative to Eastern Maine Electric
Cooperative, Inc., dated May 13, 1964, recorded in Book 1949, Page 5,
as further assigned by Assignment and Assumption of Property Rights Agreement
between Eastern Maine Electric Cooperative and Evergreen Wind Power V, LLC
dated June 6, 2008, recorded in Penobscot Registry of Deeds in Book 11420,
Page 179 [as to Exhibit A-R81].

 

R81.
b.  Terms and provisions of Crossing
Agreement between Eastern Maine Electric Cooperative and Evergreen Wind Power
V, LLC dated June 6, 2008, recorded June 9, 2008 in Penobscot
Registry of Deeds in Book 11420, Page 198 [as to Exhibit A-R81].

 

Section R82.

Route 82; SGC File
No:  KING-01-05; T&B File No:  07-1489AR

 

Exhibit E-5

 

 

R82.
a.  Terms and provisions of Transmission
Line Right of Way Easement from Otto Clark and Nellie Clark to Kingman Electric
Cooperative dated December 12, 1951, recorded in Penobscot Registry of
Deeds in Book 1546, Page 258; said easement rights having been assigned by
Deed and Bill of Sale from Kingman Electric Cooperative to Eastern Maine
Electric Cooperative, Inc., dated May 13, 1964, recorded in Book
1949, Page 5, as further assigned by Assignment and Assumption of Property
Rights Agreement between Eastern Maine Electric Cooperative and Evergreen Wind
Power V, LLC dated June 6, 2008, recorded in Penobscot Registry of Deeds
in Book 11420, Page 179 [as to Exhibit A-R82].

 

R82.
b.  Terms and provisions of Crossing
Agreement between Eastern Maine Electric Cooperative and Evergreen Wind Power
V, LLC dated June 6, 2008, recorded June 9, 2008 in Penobscot
Registry of Deeds in Book 11420, Page 198 [as to Exhibit A-R82].

 

Section R83.

Route 83; SGC File
No:  KING-01-07-02; T&B File No:  07-1490AR

 

R83.
a.  Terms and provisions of Transmission
Line Right of Way Easement from Otto Clark and Nellie Clark to Kingman Electric
Cooperative dated December 12, 1951, recorded in Penobscot Registry of Deeds
in Book 1546, Page 258; said easement rights having been assigned by Deed
and Bill of Sale from Kingman Electric Cooperative to Eastern Maine Electric
Cooperative, Inc., dated May 13, 1964, recorded in Book 1949, Page 5,
as further assigned by Assignment and Assumption of Property Rights Agreement
between Eastern Maine Electric Cooperative and Evergreen Wind Power V, LLC
dated June 6, 2008, recorded in Penobscot Registry of Deeds in Book 11420,
Page 179 [as to Exhibit A-R83].

 

R83.
b.  Terms and provisions of Crossing
Agreement between Eastern Maine Electric Cooperative and Evergreen Wind Power
V, LLC dated June 6, 2008, recorded June 9, 2008 in Penobscot
Registry of Deeds in Book 11420, Page 198 [as to Exhibit A-R83].

 

Section R84.

Route 84; SGC File No:  KING-01-09-01; T&B File No:  07-1491AR

 

R84.
a.  Terms and provisions of Transmission
Line Right of Way Easement from Ralph Worster and Isabelle Worster to Kingman
Electric Cooperative dated December 12, 1951, recorded in Penobscot
Registry of Deeds in Book 1546, Page 259, said easement rights having been
assigned by Deed and Bill of Sale from Kingman Electric Cooperative to Eastern
Maine Electric Cooperative, Inc., dated May 13, 1964, recorded in
Book 1949, Page 5, as further assigned by Assignment and Assumption of
Property Rights Agreement between Eastern Maine Electric Cooperative and
Evergreen Wind Power V, LLC dated June 6, 2008, recorded in Penobscot
Registry of Deeds in Book 11420, Page 179 [as to Exhibit A-R84].

 

Exhibit E-5

 

 

R84.
b.  Terms and provisions of Crossing
Agreement between Eastern Maine Electric Cooperative and Evergreen Wind Power
V, LLC dated June 6, 2008, recorded June 9, 2008 in Penobscot
Registry of Deeds in Book 11420, Page 198 [as to Exhibit A-R84].

 

Section R85.

Route 85; SGC File
No:  KING-01-11-02; T&B File No:  07-1492AR

 

R85.
a.  Terms and provisions of Transmission
Line Right of Way Easement from Grace Osnoe and Laurence Osnoe to Kingman
Electric Cooperative dated January 22, 1954, recorded in Penobscot
Registry of Deeds in Book 1550, Page 114, said easement rights having been
assigned by Deed and Bill of Sale from Kingman Electric Cooperative to Eastern
Maine Electric Cooperative, Inc., dated May 13, 1964, recorded in
Book 1949, Page 5, as further assigned by Assignment and Assumption of
Property Rights Agreement between Eastern Maine Electric Cooperative and
Evergreen Wind Power V, LLC dated June 6, 2008, recorded in Penobscot
Registry of Deeds in Book 11420, Page 179 [as to Exhibit A-R85].

 

R85.
b.  Terms and provisions of Crossing
Agreement between Eastern Maine Electric Cooperative and Evergreen Wind Power
V, LLC dated June 6, 2008, recorded June 9, 2008 in Penobscot
Registry of Deeds in Book 11420, Page 198 [as to Exhibit A-R85].

 

Section R86.

Route 86; SGC File No:  KING-01-11-01; T&B File No:  07-1493AR

 

R86.
a.  Terms and provisions of Transmission
Line Right of Way Easement from Grace Osnoe and Laurence Osnoe to Kingman
Electric Cooperative dated January 22, 1954, recorded in Penobscot
Registry of Deeds in Book 1550, Page 114, said easement rights having been
assigned by Deed and Bill of Sale from Kingman Electric Cooperative to Eastern
Maine Electric Cooperative, Inc., dated May 13, 1964, recorded in
Book 1949, Page 5, as further assigned by Assignment and Assumption of
Property Rights Agreement between Eastern Maine Electric Cooperative and
Evergreen Wind Power V, LLC dated June 6, 2008, recorded in Penobscot
Registry of Deeds in Book 11420, Page 179 [as to Exhibit A-R86].

 

R86.
b.  Terms and provisions of Crossing
Agreement between Eastern Maine Electric Cooperative and Evergreen Wind Power
V, LLC dated June 6, 2008, recorded June 9, 2008 in Penobscot
Registry of Deeds in Book 11420, Page 198 
[as to Exhibit A-R86].

 

Section R87.

Route 87; SGC File
No:  KING-01-11-03; T&B File No:  07-1494AR

 

R87.
a.  Terms and provisions of Transmission
Line Right of Way Easement from Grace Osnoe and Laurence Osnoe to Kingman
Electric Cooperative dated January 22, 1954, recorded 

 

Exhibit E-5

 

 

in Penobscot Registry of
Deeds in Book 1550, Page 114, said easement rights having been assigned by
Deed and Bill of Sale from Kingman Electric Cooperative to Eastern Maine
Electric Cooperative, Inc., dated May 13, 1964, recorded in Book
1949, Page 5, as further assigned by Assignment and Assumption of Property
Rights Agreement between Eastern Maine Electric Cooperative and Evergreen Wind
Power V, LLC dated June 6, 2008, recorded in Penobscot Registry of Deeds
in Book 11420, Page 179 [as to Exhibit A-R87].

 

R87.
b.  Terms and provisions of Crossing
Agreement between Eastern Maine Electric Cooperative and Evergreen Wind Power
V, LLC dated June 6, 2008, recorded June 9, 2008 in Penobscot
Registry of Deeds in Book 11420, Page 198 
[as to Exhibit A-R87].

 

Section R88.

Route 88; SGC File
No:  KING-01-13; T&B File No:  07-1495AR

 

R88.
a.  Terms and provisions of Transmission
Line Right of Way Easement from Grace Osnoe and Laurence Osnoe to Kingman
Electric Cooperative dated January 22, 1954, recorded in Penobscot
Registry of Deeds in Book 1550, Page 114, said easement rights having been
assigned by Deed and Bill of Sale from Kingman Electric Cooperative to Eastern
Maine Electric Cooperative, Inc., dated May 13, 1964, recorded in
Book 1949, Page 5, as further assigned by Assignment and Assumption of Property
Rights Agreement between Eastern Maine Electric Cooperative and Evergreen Wind
Power V, LLC dated June 6, 2008, recorded in Penobscot Registry of Deeds
in Book 11420, Page 179 [as to Exhibit A-R88].

 

R88.
b.  Terms and provisions of Crossing
Agreement between Eastern Maine Electric Cooperative and Evergreen Wind Power
V, LLC dated June 6, 2008, recorded June 9, 2008 in Penobscot
Registry of Deeds in Book 11420, Page 198 
[as to Exhibit A-R88].

 

Section R89
(Highway Route 170).

 

R89. a.  Terms and conditions of unrecorded Permit
Record No. 51816, issued by the State of Maine Department of
Transportation to Evergreen Wind Power V, LLC, dated January 31, 2008, for
crossing State Route 170.

 

Section R90.

Route 90; SGC File
No:  KING-01-14-21; T&B File No:  07-1496AR

 

R90.
a.  Terms and provisions of Transmission
Line Right of Way Easement from John Westgate and Dennie Westgate to Kingman
Electric Cooperative dated December 12, 1951, recorded in Penobscot
Registry of Deeds in Book 1546, Page 260; said easement rights having
assigned by Deed and Bill of Sale from Kingman Electric Cooperative to Eastern
Maine Electric Cooperative, Inc., dated May 13, 1964, recorded in
Book 1949, Page 5, as 

 

Exhibit E-5

 

 

further been assigned by
Assignment and Assumption of Property Rights Agreement between Eastern Maine
Electric Cooperative and Evergreen Wind Power V, LLC dated June 6, 2008,
recorded in Penobscot Registry of Deeds in Book 11420, Page 179 [as to Exhibit A-R90].

 

R90.
b.  Terms and provisions of Crossing Agreement
between Eastern Maine Electric Cooperative and Evergreen Wind Power V, LLC
dated June 6, 2008, recorded June 9, 2008 in Penobscot Registry of
Deeds in Book 11420, Page 198  [as
to Exhibit A-R90].

 

Section R91.

Route 91; SGC File
No:  KING-01-16; T&B File No:  07-1497AR

 

R91.
a.  Terms and provisions of Transmission
Line Right of Way Easement from Mabel Vinson to Kingman Electric Cooperative
dated October 14, 1952, recorded in Penobscot Registry of Deeds in Book
1546, Page 263; said easement rights having been assigned by Deed and Bill
of Sale from Kingman Electric Cooperative to Eastern Maine Elective Cooperative, Inc.,
dated May 13, 1964 recorded in Book 1949, Page 5 and further assigned
by Assignment and Assumption of Property Rights Agreement between Eastern Maine
Electric Cooperative and Evergreen Wind Power V, LLC dated June 6, 2008,
recorded in Penobscot Registry of Deeds in Book 11420, Page 179 [as to Exhibit A-R91].

 

R91.
c.  Terms and provisions of Crossing
Agreement between Eastern Maine Electric Cooperative and Evergreen Wind Power
V, LLC dated June 6, 2008, recorded June 9, 2008 in Penobscot
Registry of Deeds in Book 11420, Page 198.

 

Section R92/93.

Routes 92 and 93; SGC
File No:  KING-01-18-03 and 01-18-01;
T&B File No:  07-1498AR

 

R92/93.
a.  Terms and provisions of Transmission
Line Right of Way Easement from Orland Severance and Lena Severance to Kingman
Electric Cooperative dated December 14, 1951, recorded in Penobscot
Registry of Deeds in Book 1546, Page 262; said easement rights having been
assigned by Deed and Bill of Sale from Kingman Electric Cooperative to Eastern
Maine Electric Cooperative, Inc., dated May 13, 1964, recorded in
Book 1949, Page 5, as further assigned by Assignment and Assumption of
Property Rights Agreement between Eastern Maine Electric Cooperative and
Evergreen Wind Power V, LLC dated June 6, 2008, recorded in Penobscot
Registry of Deeds in Book 11420, Page 179 [as to Exhibit A-R92/93].

 

R92/93.
b.  Terms and provisions of Crossing
Agreement between Eastern Maine Electric Cooperative and Evergreen Wind Power
V, LLC dated June 6, 2008, recorded June 9, 2008 in Penobscot
Registry of Deeds in Book 11420, Page 198 
[as to Exhibit A-R92/93].

 

Section R96.

Route 96; SGC File
No:  WEBS-01-05; T&B File No:  07-1607AR

 

Exhibit E-5

 

 

R96.
a.  Restrictions stating that all
property along and adjacent to the Mattagodus Stream, Webster Plantation,
Maine, shall forever be held as a wildlife management area managed under a plan
meant to ensure the protection of plant, vertebrate and invertebrate species
considered rare, threatened, or endangered, contained in a Quitclaim Deed with
Covenant from Diamond Occidental Forest, Inc. to State of Maine,
Department of Inland Fisheries and Wildlife, recorded in Penobscot Registry of
Deeds in Book 4733, Page 365. [as to Exhibit A-R96].

 

Section R97/99/101.

Routes 97, 99 and 101;
SGC File No:  PREN-08-1; PREN-06-24;
PREN-6-23; T&B File No:  07-1579AR

 

R97/99/101. a. 
The right to cross and recross the property reserved in Partition Deed
with Quitclaim Covenant from Andre Emerson Cushing Corp., Greentrees Inc.,
McCrillis Timberland LLC, and Prentiss & Carlisle Company, Inc.
to Lakeville Shores, Inc., recorded December 15, 2006 in Book 10763, Page 199
in the Penobscot Registry of Deeds, Partition Deed with Quitclaim Covenant from
The Cushing Family Corporation to Lakeville Shores, Inc., dated December 6,
2006, recorded December 15,2006 in Book 10763, Page 246 in said
Registry, Partition Deed with Quitclaim Covenant from Lange Timber LLC and Webber
Timber LLC to Lakeville Shores, Inc., dated December 7, 2006,
recorded December 15,2006 in Book 10763, Page 286 in said Registry,
and Trustee’s Deed from Edward D. Leonard III as Trustee of Land Exchange Trust
under Declaration of Trust dated November 1, 1991 to John M. Webber, dated
September 29, 2000 and recorded September 9, 2000 in Book 7488, Page 301
in said Registry.

 

Section R98.

Route 98; SGC File
No:  PREN-02-26-01; T&B File No:  07-1463AR

 

R98.
a.  Terms and conditions of Non-exclusive
easement for electric transmission line contained in Transmission Line Right of
Way Easement from Leroy Porter and Axie Porter to Kingman Electric Cooperative
dated September 2, 1952 and recorded at said Registry in Book 1546, Page 267;
said easement rights having been assigned by Deed and Bill of Sale from Kingman
Electric Cooperative to Eastern Maine Electric Cooperative, Inc., dated May 13,
1964, recorded in Book 1949, Page 5, as further assigned by Assignment and
Assumption of Property Rights Agreement between Eastern Main Electric
Cooperative and Evergreen Wind Power V, LLC dated June 6, 2008, recorded
in Penobscot Registry of Deeds in Book 11420, page 179. [as to Exhibit A-R98].

 

Section R100
(Highway Route 170)

 

R100. a.  Terms and conditions of unrecorded Permit No. 51824,
issued by the State of Maine Department of Transportation to Evergreen Wind
Power V, LLC, dated January 31, 2008, for crossing State Route 170.

 

Exhibit E-5

 

 

Section 103.

Route 103; SGC File
No:  07-1499AR; T&B File No:  07-1499AR

 

R103.
a.  Terms and conditions of Transmission
Line Right of Way Easement from Clair Worster and Hattie Worster to Kingman
Electric Cooperative dated March 4, 1954, recorded in Penobscot Registry
of Deeds in Book 1546, Page 265; 
said easement rights having been assigned by Deed and Bill of Sale from
Kingman Electric Cooperative to Eastern Maine Electric Cooperative, Inc.,
dated May 13, 1964, recorded in Book 1949, Page 5, as further
assigned by Assignment and Assumption of Property Rights Agreement between Eastern
Main Electric Cooperative and Evergreen Wind Power V, LLC dated June 6,
2008, recorded in Penobscot Registry of Deeds in Book 11420, page 179 [as
to Exhibit A-R103].

 

Section 104.

Route 104; SGC File
No:  PREN-6-17.1; T&B File No:  07-1383AR

 

R104.
a.  Terms and conditions of Non-exclusive
easement for electric transmission line contained in Transmission Line Right of
Way Easement from Clair Worster and Hattie Worster to Kingman Electric
Cooperative dated March 4, 1954, recorded in Penobscot Registry of Deeds
in Book 1546, Page 265; said easement rights having been assigned by Deed
and Bill of Sale from Kingman Electric Cooperative to Eastern Maine Electric
Cooperative, Inc., dated May 13, 1964, recorded in Book 1949, Page 5,
as further assigned by Assignment and Assumption of Property Rights Agreement
between Eastern Main Electric Cooperative and Evergreen Wind Power V, LLC dated
June 6, 2008, recorded in Penobscot Registry of Deeds in Book 11420, page 179
[as to Exhibit A-R104].

 

Section 105
(State Route 170).

 

R105.
a.  Terms and conditions of unrecorded
Permit Record No 51822 issued by the State of Maine Department of
transportation to Evergreen Wind Power V, LLC, dated February 13, 2009,
for crossing State Route 170.

 

Section R106/108.

Routes 106/108; SGC File
No:  PREN-04-54 and PREN-06-13; T&B
File No:  07-1351AR

 

R106/108. b.  Terms of Memorandum of Temporary Easement for
Construction Access and Laydown Area between Evergreen Wind Power V, LLC and
John Osgood and Susan Osgood dated July 15, 2008, recorded in Penobscot
Registry of Deeds in Book 11474, Page 336. 
NOTE:  This easement will no
longer apply after the date of its stated expiration (June 30, 2010) [as
to Exhibit A-R106/108].

 

Exhibit E-5

 

 

Route
107 (Osgood Road)

 

R107.
a.  Terms and conditions of unrecorded
Letter from County of Penobscot Court of County Commissioners, dated February 12,
2008, approving the crossing of Osgood Road in Prentiss Township

 

Section R111/113.

Routes 111/113; SGC File
No:  PREN-04-29 and PREN-04-05.1; T&B
File No:  07-1513AR

 

R111/113.
a.  Reservation of a thirty-five (35%)
percent undivided interest in and to the minerals within the lands conveyed
referred to in Quitclaim Deed with Covenant from the Penobscot Indian Nation to
Herbert C. Haynes, Inc. recorded in Penobscot Registry of Deeds in Book
5863, Page 240.

 

R111/113.
b.  TERMS AND PROVISIONS OF
MEMORANDUM OF TEMPORARY EASEMENT FOR CONSTRUCTION ACCESS AND LAYDOWN AREA
BETWEEN EVERGREEN WIND POWER V, LLC AND THOMAS E. LINSCOTT AND KAREN B.
LINSCOTT DATED JULY 15, 2008, RECORDED JULY 24, 2008 IN PENOBSCOT REGISTRY OF
DEEDS IN BOOK 11474, PAGE 339. 
NOTE:  THIS EXCEPTION WILL NO
LONGER APPLY AFTER THE DATE OF ITS STATED EXPIRATION (JUNE 30, 2010) [AS TO
EXHIBIT A-R111/113].

 

Section R112
(Tar Ridge Road)

 

R112. a.  Terms and conditions of unrecorded Letter
from the County of Penobscot Court of County Commissioners, dated February 12,
2008, approving the crossing of Tar Ridge Road in Prentiss Township

 

Section R117
(Highway Route 169)

 

R117. a.  Terms and provisions of unrecorded Permit
Record No. 51820 issued by the State of Maine Department of Transportation
to Evergreen Wind Power V, LLC, dated January 31, 2008, for crossing State
Route 169

 

Section R118.

Route 118; SGC File
No:  PREN-02-12; T&B File No:  07-1194AR

 

R118.
a.  Non-exclusive easement for electric
distribution and communication lines contained in an instrument from Fred and
Mae Kimball to Eastern Maine Electrical Cooperative and 

 

Exhibit E-5

 

 

New England Telephone and
Telegraph Company dated April 12, 1977, recorded in Penobscot Registry of
Deeds in Book 2829, Page 217 [as to Exhibit A-R118].

 

Section R119.

Route 119; SGC File
No:  CARR-01-03; T&B File No:  07-1542AR

 

R119.
a.  Reservation of a thirty-five (35%)
percent undivided interest in and to the minerals within the lands conveyed
referred to in Quitclaim Deed with Covenant dated August 20, 1986  recorded in Penobscot Registry of Deeds in
Book 3883, Page 352.

 

Section R122
(North Road)

 

R122. a.                                         Terms and
conditions of  unrecorded Grant of Utility Location Permit issued by
Carroll Plantation to Evergreen Wind Power V, LLC, dated April 28, 2008,
for crossing in North Road.

 

Section R124.

Route 124; SGC File
No:  CARR-01-04; T&B File No:  07-1539AR

 

R124. a.  Mortgage from Gardner Land Company, Inc.
to Farm Credit of Maine, ACA, dated and recorded November 17, 2000 in
Penobscot Registry of Deeds in Book 7533, Page 40, in the original
principal amount of $16,000,000.00, modified by a consent accommodating the
insured easement recorded in Book 11329, Page 286 [as to Exhibit A-R124].

 

Section R125.

Route 125; SGC File
No:  PREN-01-11.6; T&B File No:  07-1305AR

 

R125
a.  Non-exclusive right of way contained
in Trustee’s Deed from Mary B. Gregor, Trustee of Meadows and Mountains Trust
to Jason Uriah Mully dated February 11, 1998, recorded in Penobscot
Registry of Deeds in Book 6600, Page 67 [as to Exhibit A-R125].

 

Washington
County:

 

Township 8 Ranges 3 and 4

 

a.                             Non-exclusive roadway easements contained
in Reciprocal Road Easement between John Hancock Mutual Life Ins. Co. and
Lakeville Shores, Inc. dated December 1, 1999 and

 

Exhibit E-5

 

 

rerecorded on January 26,
2000 in Book 2405, Page 254 of the Washington County Registry of Deeds.

 

b.                                      Provision of the Maine Tree Growth Tax
Law, Title 36, M.R.S.A, Section 571-5S4A.

 

c.                                       Maine Commercial Forestry Excise Tax,
Title 36, M.R.SA. Section 2721, 2727.

 

d.                                      Intentionally
Deleted.

 

e.                                       Reservation of the non-exclusive right to
cross and recross contained in the Trustee’s Deed from Edward D. Leonard III,
Trustee of Land Exchange Trust, under Declaration of Trust dated November 1,
1991 to Herbert C. Haynes, Inc. dated May 28, 1998 and recorded in
Book 2246, Page 137 of Washington County Registry of Deeds.

 

f.                                         Non-exclusive roadway easements contained
in Reciprocal Road Easement between John Hancock Mutual Life Insurance Company
and Lakeville Shores, Inc., dated December 1, 1999 and recorded on December 6,
1999 in the Washington County Register of Deeds in Book 2395, Page 117.

 

Exhibit E-5

 

 

Stetson II

 

The Tracts referred to herein are the same as those Tracts referred to
in the Stetson II loan policy issued by Stewart Title Guaranty Company in
connection with the closing under this Agreement.

 

1.               Standard Exceptions –

 

a.               Rights or claims of parties in possession
not shown by the public records.  Affects
Tract 2 only.

 

b.              Easements, or claims of easements, not
shown by the public records. .  Affects
Tract 2 only.

 

c.               Encroachments, overlaps, boundary line
disputes, or other matters which would be disclosed by an accurate survey and
inspection of the premises.  Affects
Tract 2 only.

 

d.              Any lien, or right to a lien, for
services, labor, or material hereto or hereafter furnished, imposed by law and
not shown by the public records. . 
Affects Tract 2 only.

 

e.               titles or rights asserted by anyone
including but not limited to persons, corporations, governments or other
entities, to tide lands, or lands comprising the shores or bottoms of navigable
rivers, lakes, bays, oceans or gulf, or lands beyond the line of the harbor or
bulkhead lines as established or changed by the United States Government or
water rights, if any. .  Affects Tract 2
only.

 

TRACTS 1 and 2

 

1.               Terms and conditions of Memorandum of
Lease between Lakeville Shores, Inc. and Stetson Wind II, LLC recorded in
Book 3482, Page 141, as amended by First Amendment to Amended and Restated
Leand Lease Agreement recorded in Book 3543, page 234.

 

2.               .                                             Non-exclusive easement for electric and
telephone lines contained in Easement given by G. Pierce Webber, as agent for
Webber Timberlands to Eastern Maine Electric Cooperative and New England
Telephone and Telegraph Company, dated August 6, 1969, and recorded in the
Washington County Registry of Deeds in Book 679, Page 302.  Affects Tract 2 only, does not affect Tract 1

 

3.               Non-exclusive easement for public highway
contained in Easement given by G. Peirce Webber, as agent for Webber
Timberlands, to the State of Maine, dated April 27, 1972, recorded in the
Washington County Registry of Deeds in Book 752, Page 194.  Affects Tract 2 only, does not affect Tract 1

 

4.               Non-exclusive easement for slopes and
drainage along State Route 169 contained in Easement given by G. Peirce Webber,
as agent for Webber Timberlands, to the State of Maine, dated September 8,
1978, recorded in the Washington County Registry of Deeds in Book 1031, Page 182.  Affects Tract 2 only, does not affect Tract 1

 

Exhibit E-5

 

 

5.               Rights to cross and recross reserved in
Trustee’s Deed from Edward D. Leonard III, as Trustee of Land Exchange Trust
under Declaration of Trust dated November 1, 1991, to Charles P. Webber
and Eleanor H. Webber, as Trustees of the Eleanor H. and Charles Pl Webber
Revocable Trust dated August 8, 1982, dated May 28, 1998, and
recorded in Washington County Registry of Deeds in Book 2246, Page 212.  Affects Tract 2 only, does not affect Tract 1

 

6.               Rights to cross and recross reserved in
the 16 individual deeds from Edward D. Leonard III, Trustee of Land Exchange
Trust under Declaration of Trust dated November 1, 1991 to Lange Timber
Limited Liability Company dated September 29, 2000 and recorded in the
Washington County Registry of Deeds in Book 2463, Pages 120 through 340,
inclusive.

 

7.               Non-exclusive rights of tenants, as
tenants only,  under unrecorded leases to
use roads crossing the property for access to leased lots.  Tract 1 does not have any unrecorded leases
and the Jimmey Mountain Access Road is not subject to any access or other
rights of tenants.

 

TRACT 3

 

8.               Non-exclusive easements for roadways
contained in Reciprocal Road Easement dated December 1, 1999 and recorded
on December 6, 1999 in Book 2395, Page 117 of the Washington County
Registry of Deeds between John Hancock Mutual Life Ins. Co. and Lakeville
Shores, Inc. and rerecorded on January 26, 2000 in Book 2405, Page 254
of the Washington County Registry of Deeds.

 

9.               Terms
and conditions of Land
Lease Agreement dated October 12, 2006, First Amendment to Land Lease
Agreement dated March 30, 2007 and Second Amendment to Land Lease
Agreement dated August 17, 2007, all as evidenced by Memorandum of Lease
dated October 13, 2008, by and between Lakeville Shores Inc., as Lessor,
and Evergreen Wind Power V, LLC, as Lessee, recorded on October 17, 2008
in Book 3462, Page 292, Document No. 11448, Register of Deeds,
Washington County, Maine.

 

10.         Rights to cross and recross reserved in Trustee’s Deed
from Edward D. Leonard III, as Trustee of Land Exchange Trust, under
Declaration of Trust dated November 1, 1991 to Herbert C. Haynes, Inc.
dated May 28, 1998 and recorded in Book 2246, Page 137 of Washington
County Registry of Deeds.

 

TRACT 4

 

11.         Terms and conditions of unrecorded Permit
Record No. 56861 issued by the State of Maine Department of Transportation
to Evergreen Wind Power V, LLC, dated March 25, 2009, for crossing Route
169.

 

Exhibit E-5

 

 

TRACT 5

 

12.         Mortgage between Dellis Huff Jr. and
Jessica P. Huff and Machias Savings Bank, dated May 4, 2009 and recorded
in the Washington County Registry in Book 3540 Page 181, modified by a
consent to Granting of Lease from Machias Savings Bank dated September 18,
2009 and recorded on September 28, 2009 in Book 3574, Page 159,
Washington County, Maine.

 

Company insures the Insured against loss or damage sustained by the
Insured in the event that the Mortgage referenced immediately above is not
subordinate to the lease between Owner and the Insured of the Tract referenced immediately
above, which lease is more particularly described in Schedule A.  Without limiting the generality of the
foregoing, Company agrees to provide defense to the Insured in accordance with
the terms of this Policy if suit is brought against the Insured to enforce any
such claim.

 

Tract 6

 

13.         Non-exclusive easement for roadways
contained in Reciprocal Road Easement dated December 1, 1999 and recorded
on December 6, 1999 in Book 2395, Page 117 of Washington County
Registry of Deeds between John Hancock Mutual Life Ins. Co. and Lakeville
Shores, Inc. and rerecorded on January 26, 2000 in Book 2405, Page 254
of the Washington County Registry of Deeds.

 

14.         Provision of the Maine Tree Growth Tax
Law, Title 36, M.R.S.A, Section 571-5S4A.

 

15.         Maine Commercial Forestry Excise Tax,
Title 36, M.R.SA. Section 2721, 2727.

 

16.         Terms
and conditions of Land
Lease Agreement dated October 12, 2006, First Amendment to Land Lease
Agreement dated March 30, 2007 and Second Amendment to Land Lease
Agreement dated August 17, 2007, all as evidenced by Memorandum of Lease
dated October 13, 2008, by and between Lakeville Shores Inc., as Lessor,
and Evergreen Wind Power V, LLC, as Lessee, recorded on October 17, 2008
in Book 3462, Page 292, Document No. 11448, Register of Deeds,
Washington County, Maine.

 

17.         Rights to cross and recross reserved in the Trustee’s
Deed from Edward D. Leonard III, as Trustee of Land Exchange Trust, under
Declaration of Trust dated November 1, 1991 to Herbert C. Haynes, Inc.
dated May 28, 1998 and recorded in Book 2246, Page 137 of Washington
County Registry of Deeds.

 

18.         Terms and conditions of Shared Facilities
and , Sublease Agreement as evidenced by Memorandum of Shared Facilities and
Sublease Agreement dated December 22, 2009 by and between Evergreen Wind
Power V, LLC and Stetson Wind II, LLC recorded on 

 

Exhibit E-5

 

 

December     , 2009 in Book
        , Page           ,
Document No.                   ,
Register of Deeds, Washington County, Maine.

 

Exhibit E-5

 

 

EXHIBIT
E-6

to
Financing Agreement

 

SCHEDULE
OF SECURITY FILINGS

 

1.                                       UCC-1 Financing Statement naming Member
as Debtor and Security Agent as Secured Party, for filing with the Secretary of
State of Delaware, and any continuation statements to such financing statement
necessary to maintain the perfection and priority of the interest, title and
Liens in Section 6.21.

 

2.                                       UCC-1 Financing Statement naming Borrower
as Debtor and Security Agent as Secured Party, for filing with the Secretary of
State of Delaware, and any continuation statements to such financing statement
necessary to maintain the perfection and priority of the interest, title and
Liens in Section 6.21.

 

3.                                       UCC-1 Financing Statement naming Stetson
Wind II, LLC as Debtor and as Secured Party, for filing with the Secretary of
State of Delaware, and any continuation statements to such financing statement
necessary to maintain the perfection and priority of the interest, title and
Liens in Section 6.21.

 

4.                                       UCC-1 Financing Statement naming
Evergreen Wind Power V, LLC as Debtor and as Secured Party, for filing with the
Secretary of State of Delaware, and any continuation statements to such
financing statement necessary to maintain the perfection and priority of the
interest, title and Liens in Section 6.21.

 

5.                                       UCC-3 Financing Statement Termination
naming Evergreen Wind Power V, LLC as Debtor and HSH Nordbank AG, New York
Branch as Secured Party, for filing with the Secretary of State of Delaware.

 

6.                                       UCC-3 Financing Statement Termination
naming Stetson Wind II, LLC as Debtor and HSH Nordbank AG, New York Branch as
Secured Party, for filing with the Secretary of State of Delaware.

 

7.                                       UCC-3 Financing Statement Termination
naming Stetson Holdings, LLC, LLC as Debtor and HSH Nordbank AG, New York
Branch as Secured Party, for filing with the Secretary of State of Delaware

 

8.                                       UCC-3 Financing Statement Amendment
removing Stetson Wind II, LLC from the collateral pledged in the UCC-1
Financing Statement naming First Wind Maine Holdings, LLC as Debtor and HSH
Nordbank AG, New York Branch as Secured Party, for filing with the Secretary of
State of Delaware.

 

Exhibit E-6

 

1

 

EXECUTION FORM

 

EXHIBIT
E-7

to
Financing Agreement

 

FORM OF
MEMBER PLEDGE AND SECURITY AGREEMENT

 

(See Tab      )

 

 

 

PLEDGE
AND SECURITY AGREEMENT

 

among

 

CSSW STETSON
HOLDINGS, LLC,

as Member

 

and

 

STETSON HOLDINGS,
LLC,

as Borrower

 

and

 

BNP PARIBAS,

as Security Agent

 

Dated as of December [    ],
2009

 

 

 

TABLE OF CONTENTS

 

	
  Section 1.

  	
  Definitions

  	
  2

  
	
  Section 2.

  	
  Pledge
  and Grant of Security Interest

  	
  2

  
	
  Section 3.

  	
  Delivery
  of Collateral

  	
  10

  
	
  Section 4.

  	
  Obligations
  Secured

  	
  11

  
	
  Section 5.

  	
  Use of
  Collateral

  	
  11

  
	
  Section 6.

  	
  Remedies

  	
  11

  
	
  Section 7.

  	
  Remedies
  Cumulative; Delay Not Waiver

  	
  13

  
	
  Section 8.

  	
  Representations
  and Warranties of Member

  	
  14

  
	
  Section 9.

  	
  Covenants
  of Member

  	
  17

  
	
  Section 10.

  	
  Voting
  Rights

  	
  19

  
	
  Section 11.

  	
  Certain
  Consents and Waivers

  	
  19

  
	
  Section 12.

  	
  Borrower’s
  Consent and Covenant

  	
  20

  
	
  Section 13.

  	
  Attorney-in-Fact

  	
  21

  
	
  Section 14.

  	
  Perfection;
  Further Assurances

  	
  22

  
	
  Section 15.

  	
  Notices

  	
  23

  
	
  Section 16.

  	
  Continuing
  Assignment and Security Interest; Transfer of Notes

  	
  23

  
	
  Section 17.

  	
  Termination
  of Security Interest

  	
  23

  
	
  Section 18.

  	
  Severability

  	
  24

  
	
  Section 19.

  	
  Successors
  and Assigns

  	
  24

  
	
  Section 20.

  	
  Headings

  	
  24

  
	
  Section 21.

  	
  Liability

  	
  24

  
	
  Section 22.

  	
  References
  to Other Documents

  	
  24

  
	
  Section 23.

  	
  Governing
  Law

  	
  24

  
	
  Section 24.

  	
  Execution
  in Counterparts

  	
  25

  
	
  Section 25.

  	
  No
  Amendment, Modification

  	
  25

  
	
  Section 26.

  	
  Third
  Party Rights

  	
  25

  
	
  Section 27.

  	
  Reinstatement

  	
  25

  
	
  Section 28.

  	
  Conflict
  Among Agreements

  	
  25

  
	
  Section 29.

  	
  Waiver of Jury Trial

  	
  25

  

 

i

 

PLEDGE
AND SECURITY AGREEMENT

 

This PLEDGE AND SECURITY AGREEMENT (as amended, amended and restated,
supplemented or otherwise modified from time to time, this “Agreement”),
is entered into as of December [    ], 2009, by and
among CSSW STETSON HOLDINGS, LLC, a Delaware limited liability company (“Member”),
STETSON HOLDINGS, LLC, a Delaware limited liability company (“Borrower”),
and BNP PARIBAS, as Security Agent (together with its
successors and assigns in such capacity, “Security Agent”) for each of
the Secured Parties.

 

RECITALS

 

A.                                   Borrower
has entered into that certain Financing Agreement, dated as of the date hereof
(as amended, amended and restated, supplemented or otherwise modified from time
to time, the “Financing Agreement”), among Borrower, the financial
institutions from time to time parties thereto (collectively, “Lenders”),
the Security Agent, BNP Paribas, as joint Lead Arranger, Joint Bookrunner,
Administrative Agent for the Lenders, and Issuing Bank and HSH Nordbank AG, New
York Branch, as Joint Lead Arranger, Joint Bookrunner and as Co-Syndication
Agent, pursuant to which the Lenders and the Issuing Bank have agreed to extend
credit to Borrower in the amounts specified and on the terms and subject to the
conditions set forth therein.

 

B.                                     Member
is the sole member of Borrower and owns one hundred percent (100%) of all
issued and outstanding membership interests in Borrower (the “Membership
Interest”), pursuant to that certain Limited Liability Company Agreement of
Stetson Holdings, LLC, dated as of May 27, 2008, as modified by that
certain Membership Interest Transfer Agreement of Stetson Holdings, LLC, dated
as of July 17, 2009, as further amended by that certain First Amendment to
Limited Liability Company Agreement of Stetson Holdings, LLC, dated as of July 17,
2009, and as further amended by that certain Second Amendment to Limited
Liability Company Agreement, dated as of the date hereof (as amended, amended
and restated, supplemented or otherwise modified from time to time, the “LLC
Agreement”).

 

C.                                     Borrower
is the sole member of each of Evergreen Wind Power V, LLC, a Delaware limited
liability company and Stetson Wind II, LLC, a Delaware limited liability
company (each a “Project Company”, and collectively “Project
Companies”) and owns one hundred percent (100%) of all issued and
outstanding membership interests in each Project Company, with respect to
Evergreen Wind Power V, LLC, pursuant to that certain First Amended and
Restated Limited Liability Company Agreement of Evergreen Wind Power V, LLC,
dated as of April 2, 2007, as amended by that certain First Amendment to
First Amended and Restated Limited Liability Company Agreement of Evergreen
Wind Power V, LLC, dated as of December 11, 2008, as modified by that
certain Membership Interest Transfer Agreement of Evergreen Wind Power V, LLC,
dated as of July 17, 2009, as further amended by that certain Second
Amendment to First Amended and Restated Limited Liability Company Agreement of
Evergreen Wind Power V, LLC, dated as of July 17, 2009, and as further
amended by that certain Third Amendment to First Amended and Restated Limited
Liability

 

1

 

Company Agreement of Evergreen Wind Power V,
LLC, dated as of the date hereof; and with respect to Stetson Wind II, LLC,
pursuant to that certain Limited Liability Company Agreement of Stetson Wind
II, LLC, dated July 3, 2007, as amended by that certain First Amendment to
Limited Liability Company Agreement of Stetson Wind II, LLC, dated December 11,
2008, and as further amended by that certain Second Amendment to Limited
Liability Company Agreement of Stetson Wind II, LLC, dated as of the date
hereof.

 

D.            Member will gain
an economic benefit from the extension of credit to be made under the Financing
Agreement and desires that the Lenders and the Issuing Bank enter into the
Financing Agreement.

 

E.             It is a condition
precedent to the effectiveness of the Financing Agreement that the parties
hereto shall have executed and delivered this Agreement.

 

AGREEMENT

 

NOW THEREFORE, in consideration of the foregoing premises, and in order
to induce the Lenders and the Issuing Bank to enter into the Financing
Agreement and to make the Loans and extension of credit contemplated by the
Financing Agreement and for other good and valuable consideration, the receipt
and adequacy of which are hereby acknowledged, Member and Borrower hereby agree
with Security Agent, for the benefit of Security Agent and the Secured Parties,
as follows:

 

Section 1. Definitions.

 

Unless otherwise defined herein, all capitalized terms
used in this Agreement (including the preamble and recitals), shall have the
meanings provided in Exhibit A to the Financing Agreement, and if not
defined therein, shall have the meanings provided in the Uniform Commercial
Code, as the same from time to time shall be in effect in the State of New York
(the “UCC”); provided, however, in the event that, by
reason of mandatory provisions of law, any or all of the perfection or priority
of the security interest in any Collateral (as defined below) is governed by
the Uniform Commercial Code as in effect in a jurisdiction other than the State
of New York, the term “UCC” shall mean the Uniform Commercial Code as in effect
in such other jurisdiction for purposes of the provisions hereof relating to
such perfection or priority and for purposes of definitions related to such
provisions.  The Rules of
Interpretation contained in Exhibit A to the Financing Agreement shall
apply to this Agreement.

 

Section 2. Pledge and Grant of Security
Interest.

 

(a)           Granting Clause.  To
secure the timely payment and performance of the Obligations, Member does
hereby assign and pledge to Security Agent, for the benefit of the Secured
Parties, and grants to Security Agent, for the benefit of the Secured Parties,
a continuing security interest in all estate, right, title and interest of
Member, now owned or hereafter acquired, in, to and under any and all of the
following (collectively, the “Collateral”):

 

2

 

(i)            the Membership Interest and
any and all certificates representing the Membership Interest (“Membership
Certificates”) as listed on Annex A attached hereto, and all
dividends, cash, options, warrants, instruments, chattel paper, other rights
and property or proceeds from time to time received, receivable or otherwise
distributed in respect of or in exchange for the Membership Interest;

 

(ii)           all additional membership
interests, shares of stock or other equity interest of Member in Borrower, at
any time acquired by Member in any manner, and the certificates representing
such additional membership interests, shares or other equity interest of Member
in Borrower (any such additional membership interests, shares or other equity
interest of Member in Borrower shall constitute part of the Membership
Interest), and all dividends, cash, options, warrants, instruments, chattel
paper, other rights and property or proceeds from time to time received,
receivable or otherwise distributed in respect of or in exchange for any or all
of such membership interests, shares or other equity interest of Member in
Borrower;

 

(iii)          all of Member’s rights to
receive income, gain, profit, loss or other items allocated or distributed to
Member under the LLC Agreement;

 

(iv)          all rights to receive all
distributions of any nature whatsoever from Borrower with respect to such
Membership Interest, if any;

 

(v)           all of Member’s capital or
ownership interest, including capital accounts, in Borrower, and all accounts,
deposits or credits of any kind with Borrower related to or required in
connection with the Membership Interest;

 

(vi)          all of Member’s voting rights
in (if any), or rights to control or direct the affairs (if any), of Borrower;

 

(vii)         all of Member’s right, title
and interest, as a member of Borrower, in or to any and all of Borrower’s
assets or properties;

 

(viii)        all other right, title and
interest in or to Borrower, and all rights to receive income, profit or other
distributions from Borrower, of any nature whatsoever, in each case, as such
rights are derived from Member’s Membership Interest in Borrower;

 

(ix)           all claims of Member for
damages arising out of or for breach of or default relating to the LLC
Agreement;

 

3

 

(x)            all rights of Member to terminate, amend,
supplement, modify or waive performance under the LLC Agreement, to perform
thereunder and to compel performance and otherwise exercise all remedies
thereunder;

 

(xi)           without affecting
the obligations under any provision prohibiting that action under any Financing
Document, in the event of any consolidation or merger involving Borrower in
which Borrower is not the surviving entity, (i) all shares, securities,
membership, partnership or ownership interests of the successor entity formed
by or resulting from that consolidation or merger, and (ii) all other
consideration (including all personal property, tangible or intangible)
received in exchange for such Collateral;

 

(xii)          all of Member’s
interests in the Applicable Permits, if any, to the extent permitted by
applicable Governmental Rule;

 

(xiii)         all of Member’s
right, title and interest in and under the LLC Agreement; and

 

(xiv)        all proceeds of any of the above.

 

(b)           Nature of Security Interest.  The granting of the foregoing security
interest does not make Security Agent or any Secured Party a successor to
Member as a member in Borrower, and none of Security Agent, any Secured Party
or any of their successors or assigns hereunder shall be deemed to have become
a member in Borrower by accepting this Agreement or exercising any right
granted herein unless and until such time, if any, when Security Agent, any
Secured Party or any such successor or assign expressly becomes a member in
Borrower after a foreclosure upon the Collateral.  Notwithstanding anything herein to the
contrary, none of Security Agent, the Secured Parties, or any of their
successors or assigns shall be deemed to have assumed or otherwise become
liable for any debts or obligations of Borrower or of Member by virtue of the
security interest granted hereunder (except to the extent, if any, that
Security Agent, any Secured Party or any of their successors or assigns
hereafter expressly becomes a member in Borrower).

 

(c)           Delivery of Agreements. 
Member has heretofore delivered or concurrently with the delivery hereof
is delivering to Security Agent, an executed counterpart or certified copy of
the LLC Agreement.

 

(d)           Continuing Liability Under Agreements.  Notwithstanding anything to the contrary
contained herein, (a) Member shall remain liable under the LLC Agreement
to perform all of the obligations undertaken by it thereunder, all in
accordance with and pursuant to the terms and provisions thereof, and (b) Security
Agent shall have no obligation or liability under any of 

 

4

 

such
agreements by reason of or arising out of this Agreement, nor shall Security Agent
be required or obligated in any manner to perform or fulfill any obligations of
Member thereunder or to make any payment or inquiry as to the nature or
sufficiency of any payment received by it, or present or file any claim, or
take any action to collect or enforce the payment of any amounts which may have
been assigned to it or to which it may be entitled at any time.

 

(e)           Consent to Transfer: 
Member, as the sole member of the Borrower, hereby irrevocably consents
(for all purposes under the LLC Agreement) to the transfer of the Membership
Interest to any Person upon exercise by the Security Agent of its remedies in
accordance with the provisions of Section 6.

 

(f)            Obligations Unconditional.  The obligations of Member under this
Agreement shall be continuing, irrevocable, absolute and unconditional
irrespective of the value, genuineness, validity, regularity or enforceability
of any Financing Document or any other agreement or instrument referred to
therein, or any substitution, release or exchange of any guarantee of or
security for any of the Obligations, and, to the fullest extent permitted by
applicable law, irrespective of any other circumstance whatsoever that might
otherwise constitute a legal or equitable discharge or defense of a surety or
guarantor (other than payment in full of the Obligations, subject to Section 2(h)),
it being the intent of this Section 2(e) that the obligations
of Member hereunder shall be absolute and unconditional under any and all
circumstances.  Without limiting the generality
of the foregoing, it is agreed that the occurrence of any one or more of the
following shall not alter or impair the liability of Member hereunder, which
shall remain absolute and unconditional as described above without regard to
and not be released, discharged or in any way affected (whether in full or in
part) by:

 

(i)            at any time or from time to time, without
notice to Member, the time for any performance of or compliance with any of the
Obligations shall be extended, or such performance or compliance shall be
waived;

 

(ii)           any of the acts mentioned in any of the
provisions of any Financing Document shall have occurred;

 

(iii)          the maturity of any of the Obligations
shall be accelerated, or any of the Obligations shall be modified, supplemented
or amended in any respect, or any right under any Financing Document or any
other agreement or instrument referred to therein shall be waived or any
guarantee of any of the Obligations or any security therefor shall be released
or exchanged in whole or in part or otherwise dealt with;

 

5

 

(iv)          any lien granted to, or in favor of,
Security Agent as security for any of the Obligations shall fail to be
perfected; or

 

(v)           any bankruptcy, insolvency, reorganization,
arrangement, readjustment of debt, liquidation or dissolution proceeding
commenced by or against Security Agent, the Member, Borrower, Project Companies
or any other Person, including any discharge of, or bar or stay against
collecting, all or any part of the Obligations (or any interest on all or any
part of the Obligations) in or as a result of any such proceeding.

 

Should, after
the occurrence and during the continuation of an Event of Default, any money
due or owing under this Agreement not be recoverable from Member for any
reason, whether by operation of law or otherwise, then, in any such case, such
money shall nevertheless be recoverable by Security Agent from the proceeds of
the Collateral as though Member were the principal debtor in respect thereof
and not merely a pledgor hereunder.

 

(g)           Waiver.

 

(i)            Member hereby expressly waives promptness,
diligence, presentment, demand for payment or performance and protest; filing
of claims with any court; any proceeding to enforce any provision of the Financing
Documents; notice of acceptance of and reliance on this Agreement by the
Secured Parties, notice of the creation of any Obligations of Borrower, and any
other notice whatsoever (other than those specifically provided under the
Financing Documents); any requirement that Security Agent exhaust any right,
power or remedy or proceed or take any other action against Borrower under any
Financing Document to which it is a party or any lien or encumbrance on, or any
claim of payment against, any property of Borrower or any other agreement or
instrument referred to therein, or any other Person under any guarantee of, or
lien securing, or claim for payment of, any of the Obligations; any right to
require a proceeding by Security Agent first against Borrower whether to
marshal any assets or to exhaust any right or take any action against Borrower
or any other Person or any collateral or otherwise, any diligence in collection
or protection for realization upon any Obligation, any obligation hereunder or
any collateral security for any of the foregoing; any right of protest,
presentment, notice or demand whatsoever, and any claims of waiver, release,
surrender, alteration or compromise and all defenses, set-offs, counterclaims,
recoupments, reductions, limitations, impairments or terminations, whether
arising hereunder or otherwise.  Member
further waives (A) any requirement that any other Person be joined as a
party to any 

 

6

 

proceeding for
the enforcement by Security Agent of any Obligation and (B) the filing of
claims by Security Agent in the event of the receivership or bankruptcy of
Borrower.  Security Agent shall have the
right to bring suit directly against Member with respect to the obligations
owed to Security Agent hereunder either prior to or concurrently with any
lawsuit against, or without bringing any suit against Member, Borrower or any
other Person.

 

(ii)           The enforceability and effectiveness of
this Agreement and the liability of Member, and the rights, remedies, powers
and privileges of Security Agent, under this Agreement shall not be affected,
limited, reduced, discharged or terminated, and Member hereby expressly waives
to the fullest extent permitted by law any defense now or in the future arising
by reason of:

 

A.            the illegality, invalidity or unenforceability of all
or any part of the Obligations, any Financing Document or any agreement,
security document, guarantee or other instrument relating to all or any part of
the Obligations;

 

B.            any disability or other defense with respect to all or
any part of the Obligations of Borrower or Member, including the effect of any
statute of limitations that may bar the enforcement of all or any part of the
Obligations;

 

C.            the illegality, invalidity or unenforceability of any
security or guarantee for all or any part of the Obligations or the lack of
perfection or continuing perfection or failure of the priority of any lien or
encumbrance on any collateral for all or any part of the Obligations;

 

D.            the cessation, for any cause whatsoever, of the
liability of Borrower or any Project Company that is a guarantor of all or any
part of the Obligations (other than, subject to Section 2(h), by
reason of the full payment and performance of all Obligations);

 

E.             other than notice expressly required under this
Agreement, any failure of Security Agent to give notice of sale or other
disposition of any collateral (including any notice of any judicial or
nonjudicial foreclosure or sale of any interest in real property serving as collateral
for all or any part of the Obligations) for all or any part of the Obligations
to Borrower, Member or any other Person or any defect in, or any failure by
Borrower, Member or any other Person to receive, any notice that may be given
in connection with 

 

7

 

any
sale or disposition of any collateral for all or any part of the Obligations;

 

F.             any failure of Security Agent to comply with
applicable laws in connection with the sale or other disposition of any
collateral (other than the Collateral) for all or any part of the Obligations;

 

G.            any judicial or nonjudicial foreclosure or sale of, or
other election of remedies with respect to, any interest in real property or
other collateral serving as security for all or any part of the Obligations,
even though such foreclosure, sale or election of remedies may impair the
subrogation rights of Borrower or Member or may preclude Borrower or Member
from obtaining reimbursement, contribution, indemnification or other recovery
from Member, Borrower or any other Person and even though Borrower or Member
may not, as a result of such foreclosure, sale or election of remedies, be
liable for any deficiency;

 

H.            any act or omission of Security Agent or any other
Person that directly or indirectly results in or aids the discharge or release
of Borrower or any part of the Obligations or any security or guarantee
(including any letter of credit) for all or any part of the Obligations by
operation of law or otherwise;

 

I.              any law which provides that the obligation of a surety
or guarantor must neither be larger in amount nor in other respects more
burdensome than that of the principal or which reduces a surety’s or guarantor’s
obligation in proportion to the principal obligation;

 

J.             any counterclaim, set-off or other claim which
Borrower has or alleges to have with respect to all or any part of the
Obligations;

 

K.            any failure of Security Agent to file or enforce a
claim in any bankruptcy or other proceeding with respect to any Person;

 

L.             the election by Security Agent, in any bankruptcy
proceeding of any Person, of the application or non-application of Section 1111(b)(2) of
the United States Bankruptcy Code;

 

8

 

M.           any extension of credit or the grant of any lien or
encumbrance under Section 364 of the United States Bankruptcy Code;

 

N.            any use of cash collateral under Section 363 of
the United States Bankruptcy Code;

 

O.            any agreement or stipulation with respect to the
provision of adequate protection in any bankruptcy proceeding of any Person;

 

P.             the avoidance of any lien or encumbrance in favor of
Security Agent for any reason;

 

Q.            any bankruptcy, insolvency, reorganization,
arrangement, readjustment of debt, liquidation or dissolution proceeding
commenced by or against any Person, including any discharge of, or bar or stay
against collecting, all or any part of the Obligations (or any interest on all
or any part of the Obligations) in or as a result of any such proceeding; or

 

R.            any action taken by Security Agent that is authorized
by this Section 2(g)or otherwise in this Agreement or by any other
provision of any Financing Document or any omission to take any such action.

 

(h)           Reinstatement. 
The obligations of Member under this Section 2 shall be
automatically reinstated if and to the extent that for any reason any payment
by or on behalf of Member in respect of the Obligations is rescinded or must be
otherwise restored by any holder of any of the Obligations, whether as a result
of any proceedings in bankruptcy or reorganization or otherwise.  Member agrees that it will indemnify Security
Agent on demand for all reasonable costs and expenses (including reasonable and
reasonably documented fees of counsel) incurred by Security Agent in connection
with such rescission or restoration, including any such costs and expenses
incurred in defending against any claim alleging that such payment constituted
a preference, fraudulent transfer or similar payment under any bankruptcy, insolvency
or similar law.

 

(i)            Subrogation. 
Member hereby waives all rights of subrogation or contribution, whether
arising by contract or operation of law (including, without limitation, any
such right arising under any bankruptcy, insolvency or other similar law) or
otherwise by reason of any payment by it pursuant to the provisions of this Section 2
and further agrees for the benefit of Security Agent that any such payment by
it shall be characterized as a contribution of capital by Member to Borrower
(or an 

 

9

 

investment
in the equity capital of Borrower by Member). 
If any amount shall be paid to Member on account of such subrogation
rights at any time prior to the indefeasible and unconditional payment, discharge
or performance in full of the Obligations, such amount shall be held in trust
for the benefit of Security Agent (if applicable) and shall forthwith be paid
to Security Agent to be credited and applied upon and against the Obligations,
to the extent then matured, in accordance with the terms of the relevant
Financing Documents or, to the extent not then matured or existing, be held by
Security Agent as collateral security for the Obligations.

 

(j)            Remedies. 
Member agrees that, as between Member and Security Agent, any
Obligations of Member to the Secured Parties under any of the Financing
Documents to which it is a party may be declared to be forthwith due and
payable notwithstanding any stay, injunction or other prohibition preventing
such declaration (or such Obligations from becoming automatically due and
payable) as against Borrower or Project Companies, and that, in the event of
such declaration (or such Obligations being deemed to have become automatically
due and payable), such Obligations (whether or not due and payable by Borrower
or Project Companies) shall forthwith become due and payable by Member for
purposes of this Agreement.  For the
avoidance of doubt, it is understood and agreed that any amount payable by
Member pursuant to the immediately preceding sentence may be applied to the
payment or prepayment (as the case may be) of the Obligations of Borrower or
Project Companies, as applicable (whether or not due and payable).  Each of the obligations of Member under this
Agreement is separate and independent of each other obligation of Member
hereunder and separate and independent of the Obligations, and Member agrees
that a separate action or actions may be brought and prosecuted by Security
Agent against Member to enforce this Agreement, irrespective of whether any
action is brought by Security Agent against Borrower or Project Companies under
any relevant Financing Document or whether Borrower is or Project Companies are
joined in any such action or actions.

 

(k)           Continuing Obligation.  The
obligations of Member provided in this Section 2 are continuing
obligations and shall apply to all Obligations whenever arising.

 

Section 3. Delivery of Collateral.

 

All Membership Certificates, instruments or other documents
representing or evidencing the Membership Interest, if any, shall be endorsed
for transfer or accompanied by duly executed instruments of transfer or
assignments in blank, all in a form satisfactory to Security Agent, and shall
be delivered promptly to Security Agent or its nominee upon execution of this
Agreement.  Security Agent shall have the
right, at any time in its discretion and without prior notice to Member, but
only following the 

 

10

 

occurrence and during the continuance of an Event of
Default, to transfer to or register in the name of Security Agent or its
nominee, any or all such certificates, instruments or other documents, provided,
that Security Agent shall promptly notify Member and Borrower of such transfer
or registration.  Such certificates,
instruments and other documents representing the Membership Interest shall be
returned to Member promptly upon satisfaction of the Obligations.

 

Section 4. Obligations Secured.

 

This Agreement and all of the Collateral hereunder assigned to Security
Agent, for the benefit of the Secured Parties, secures the payment and
performance when due of all Obligations to Security Agent and the other Secured
Parties under the Financing Documents.

 

Section 5. Use of Collateral.

 

Except for the Membership Certificates, so long as no Event of Default
has occurred and is continuing, Member reserves the right to, and shall be
entitled to, use and possess the Collateral and exercise all of its right,
title and interest in, to and under the Collateral, including under the LLC
Agreement and to receive and use (subject to the terms of the Financing
Agreement) all income, profit and other distributions in respect of the
Collateral.  Provided that no Event of
Default shall have occurred and be continuing, Member shall be permitted to
exploit, use, enjoy, protect, license, sublicense, assign, sell, dispose of or
take other actions with respect to the intellectual property of Borrower in the
ordinary course of its business to the extent permitted by the Financing
Agreement and the other Operative Documents.

 

Section 6. Remedies.

 

(a)           Subject to the terms of the Financing Agreement and
the other Financing Documents, if any Event of Default has occurred and is
continuing, Security Agent shall have the right, at its election and at the
direction of the Required Applicable Lenders, but not the obligation, to do any
of the following:

 

(i)            subject to Section 10, vote or
exercise any and all of Member’s rights or powers under the LLC Agreement;

 

(ii)           demand, sue for, collect or receive any
money or property at any time payable to or receivable by Member on account of
or in exchange for all or any part of the Collateral;

 

(iii)          cause any action at law or suit in equity
or other proceeding to be instituted and prosecuted to collect or enforce any
Obligation or rights hereunder or included in the Collateral, including
specific enforcement of any covenant or agreement contained herein or in the
LLC Agreement, or to foreclose or enforce the security interest in all or any part
of the Collateral granted herein, or to enforce any

 

11

 

other legal or
equitable right vested in it by this Agreement or by law;

 

(iv)          sell or otherwise dispose of all or any
part of the Collateral or cause all or any part of the Collateral to be sold or
otherwise disposed of in one or more sales or transactions, at such prices as
Security Agent may deem commercially reasonable, and for cash or on credit or
for future delivery, without assumption of any credit risk, at any broker’s
board or at public or private sale, without demand of performance or notice of
intention to sell or of time or place of sale (except such notice which under
applicable law cannot be waived), it being agreed that Security Agent may be a
purchaser on behalf of the Secured Parties or on its own behalf at any such
sale and that Security Agent, any Secured Party or any other Person who may be
a bona fide purchaser for value of any or all of the Collateral without notice
of any claims on any or all of the Collateral so sold shall thereafter hold the
same absolutely free from any claim or right of whatsoever kind, including any
equity of redemption, of Member or Borrower, any such demand, notice or right
and equity being hereby expressly waived and released;

 

(v)           incur reasonable expenses, including
reasonable attorneys’ fees, consultants’ fees, and other costs appropriate to
the exercise of any right or power under this Agreement;

 

(vi)          perform any obligation of Member hereunder
or under the LLC Agreement;

 

(vii)         secure the appointment of a receiver for
Member or Borrower without prior notice to Borrower or Member;

 

(viii)        proceed to protect and enforce the rights
vested in it by this Agreement, including the right to cause all revenues
hereby pledged as security and all other moneys pledged hereunder to be paid
directly to it, and to enforce its rights hereunder to such payments and all
other rights hereunder by such appropriate judicial proceedings as it shall
deem most effective to protect and enforce any of such rights, either at law or
in equity or otherwise, whether for specific enforcement of any covenant or
agreement, or in aid of the exercise of any power therein or herein granted, or
for any foreclosure hereunder and sale under a judgment or decree in any
judicial proceeding, or to enforce any other legal or equitable right vested in
it by this Agreement or by law;

 

(ix)           take possession of the Collateral and
render it usable, and repair and renovate the same, without, however, any
obligation to do so, and enter upon the property of Member or any other
location 

 

12

 

where the same
may be located for that purpose, control, manage, operate, rent and lease the
Collateral and apply the same in accordance with the Financing Documents; or

 

(x)            exercise any other or additional rights or
remedies granted to a secured party under the UCC.

 

(b)           Minimum Notice Period. 
If, pursuant to applicable law, prior notice of any such action set
forth above is required to be given to Member or Borrower, Member and Borrower
hereby acknowledge and agree that the minimum time required by such applicable
law, or if no minimum is specified, of ten (10) Business Days, shall be
deemed a reasonable notice period. 
Security Agent shall not be obligated to make any sale of Collateral
regardless of notice of sale having been given. 
Security Agent may adjourn any public or private sale from time to time
by announcement at the time and place fixed therefor, and such sale may,
without further notice, be made at the time and place to which it was so
adjourned.

 

(c)           Payment of Costs. 
Borrower agrees to pay to Security Agent, within five (5) Business
Days of its demand therefor, all reasonable and reasonably documented
out-of-pocket costs and expenses (including reasonable and reasonably
documented attorneys’ fees and expenses) incident to its enforcement,
protection and preservation of any of its rights and claims under this
Agreement.  Any amount required to be
paid by Member pursuant to the terms hereof shall bear interest at the Default
Rate or the maximum rate permitted by law, whichever is less, from the date due
until payment, and shall constitute indebtedness secured by this Agreement.

 

(d)           Application of Proceeds. 
The proceeds of any sale of, or other realization upon, all or any part
of the Collateral shall be applied in accordance with the Financing
Documents.  Any excess after full
satisfaction of the Obligations shall be returned promptly to Member.

 

Section 7. Remedies Cumulative; Delay Not
Waiver.

 

(a)           No right, power or remedy herein conferred upon or
reserved to Security Agent or the Secured Parties is intended to be exclusive
of any other right, power or remedy, and every such right, power and remedy
shall, to the extent permitted by law, be cumulative and in addition to every
other right, power and remedy given hereunder or now or hereafter existing at
law or in equity or otherwise.  The
assertion or employment of any right or remedy hereunder shall not prevent the
concurrent assertion or employment of any other appropriate right or remedy.

 

(b)           No delay or omission of Security Agent to exercise any
right or power accruing upon the occurrence and during the continuation of any
Event of Default shall impair any such right or power of Security Agent, nor
shall it 

 

13

 

be
construed as a waiver of any such Event of Default or an acquiescence
therein.  Every power and remedy given by
this Agreement may be exercised from time to time, and as often as shall be
deemed expedient, by Security Agent upon the occurrence and during the
continuation of an Event of Default.

 

(c)           Security Agent may perform any of its rights and
duties hereunder by or through agents and is entitled to retain counsel and to
act in reliance upon the advice of such counsel concerning all matters pertaining
to its rights and duties hereunder.

 

Section 8. Representations and Warranties
of Member.

 

Member represents and warrants, as of the date hereof, to Security
Agent and the Secured Parties as follows:

 

(a)           Member (i) is a duly formed and validly existing
limited liability company in good standing under the laws of Delaware; (ii) is
authorized to do business in each jurisdiction where the character of its
properties or the nature of its activities makes such qualification necessary,
except where the failure to do so would not reasonably be expected to result in
a Material Adverse Effect; and (iii) has the power and authority to own
its property and assets and to transact the business in which it is engaged.

 

(b)           Member (i) has the power and authority to execute,
deliver and perform its obligations under the LLC Agreement and this Agreement,
and to pledge and assign the Collateral; (ii) has taken all necessary
action to authorize the execution, delivery and performance of the LLC
Agreement and this Agreement; and (iii) has duly executed and delivered
the LLC Agreement and this Agreement. 
The LLC Agreement and this Agreement constitute the legal, valid and
binding obligations of Member, enforceable in accordance with their respective
terms, except as the enforceability thereof may be limited by applicable
bankruptcy, insolvency, moratorium, reorganization or other similar laws
affecting the enforcement of creditors’ rights and subject to general equitable
principles.

 

(c)           The LLC Agreement has not been amended since the date
of its execution, except as otherwise disclosed to Security Agent, and is in
full force and effect.  There exists no
default, or event that with the passage of time, the giving of notice or both
would become a default by Member under the LLC Agreement.

 

(d)           The execution and delivery of, and performance by
Member under, this Agreement, and the consummation of the transactions
contemplated herein, will not (i) violate any provision of any material
agreement to which Member is a party or any of its property or assets is bound,
including the LLC Agreement, or (ii) conflict with any material law,
order, 

 

14

 

rule or
regulation applicable to Member, of any court or any federal or state
government, regulatory body or administrative agency, or any other governmental
body having jurisdiction over Member or any of its properties.

 

(e)           Member is the legal and equitable owner of the
Membership Interest in Borrower, together with the other rights and interests
comprising the Collateral described above, subject to no mortgages, liens,
charges, or encumbrances of any kind other than Liens granted pursuant to the
Financing Documents and Permitted Liens set forth in clauses (b), (f) and (m) of
the definition thereof (such term being used herein with the reference to “Borrower”
in clause (b) of such definition contained in the Financing Agreement
being deemed to be a reference to “Member” for purposes of this Agreement), and
has full power and lawful authority to pledge, assign and grant a security
interest in the Collateral hereunder.

 

(f)            Other than the Financing Documents, there is no
existing agreement, option, right or privilege capable of becoming an
agreement, option or right pursuant to which Member could be required to sell
or otherwise dispose of all or a part of the Membership Interest.

 

(g)           No consent of any Governmental Rule is required
for the transfer of the Membership Interest except as may be required by
applicable laws affecting the offering and sale of securities generally or the
regulation of ownership or operation of utility assets under the laws of the
State of New York, the FPA, PUHCA and any other Federal regulation regarding
EWG’s.

 

(h)           Member has not assigned any of its rights under the
LLC Agreement or any of the Collateral except as provided in this Agreement and
the other Financing Documents.

 

(i)            Member has not executed and has no knowledge of any
effective financing statement, security agreement or other instrument similar
in effect covering all or any part of the Collateral on file in any recording
office, except such as may have been filed pursuant to this Agreement and the
other Financing Documents.

 

(j)            Member will not be, or cause Borrower to be or become
or to be deemed by any Governmental Authority to be, solely as a result of
ownership of Borrower, (1) an “electric utility” or a public utility under
the law of any state, (2) subject to, or not exempt from, regulation as a
public utility under the FPA, other than regulation pursuant to Section 203
thereof, or (3) an investment company or a company controlled by an
investment company within the meaning of the Investment Company Act of 1940, as
amended; and Member is not, and has not been, nor has Member caused Borrower to
be, determined by the Securities and Exchange Commission 

 

15

 

or any
successor agency or other Governmental Authority with jurisdiction to be
subject to, or not exempt from, regulation under PUHCA other than (x) compliance
with Section 1265 of PUHCA and (y) regulation under PUHCA with
respect to any Affiliate of Borrower (including Member) that does not result in
a Material Adverse Effect.

 

(k)           Perfection of Security Interest.  The security interests granted to Security Agent,
for the benefit of Secured Parties, pursuant to this Agreement, in the
Collateral (a) upon filing of appropriate financing statements, constitute
as to personal property included in the Collateral and, with respect to
subsequently acquired personal property included in the Collateral, will
constitute, a perfected security interest under the UCC to the extent a
security interest can be perfected by filing or, in the case of the Membership
Certificates (such certificates being “certificated securities” as defined in Article 8
of the UCC), by possession by or on behalf of the secured party and (b) are,
and, with respect to such subsequently acquired personal property, will be, as
to the Collateral perfected under the UCC as aforesaid, superior and prior to
the rights of all third Persons now existing or hereafter arising whether by
way of mortgage, lien, security interests, encumbrance, assignment or otherwise
(other than Permitted Liens that, pursuant to applicable law,
are entitled to a higher priority than the liens granted by this Agreement).  Except to the extent possession of portions
of such Collateral is required for perfection, all such action as is necessary
has been taken to establish and perfect Security Agent’s, for the benefit of
Secured Parties, rights in and to such Collateral to the extent Security Agent’s
security interest (for the benefit of the Secured Parties) can be perfected by
filing, including any recording, filing, registration, giving of notice or
other similar action.  No filing,
recordation, re-filing or re-recording other than those listed on Schedule A
hereto (as the same may be supplemented from time to time) is necessary to
perfect and maintain the perfection of the Liens created by this Agreement on
the Collateral, and all such filings or recordings will have been made to the
extent Security Agent’s, for the benefit of Secured Parties, security interest
can be perfected by filing (except to the extent that such filings or
recordings are, by their nature, filings or recordings to be made at a later
date).  Member has properly delivered or
caused to be delivered to Security Agent all such Collateral that requires
perfection of the Lien and security interest described above by possession.

 

(l)            Place of Business. 
Member’s principal place of business and chief executive office is
located at 179 Lincoln Street, Suite 500, Boston, MA 02111.  Member has not changed its location (as
defined in Section 9-307 of the UCC) or previously changed its name.

 

(m)          After-Acquired Collateral.  It is understood and agreed that the
foregoing representations and warranties shall apply only to the Collateral
delivered on the date hereof and that, with respect to Collateral delivered
thereafter, 

 

16

 

Member
shall, upon the written request of Security Agent, be required to make
representations and warranties in form and substance substantially similar to
the foregoing in supplements hereto and that such representations and
warranties contained in such supplements hereto shall be applicable to such
Collateral hereafter delivered.

 

(n)           Pledged Interests. 
The Membership Interest is duly authorized, validly existing, fully paid
and nonassessable, and the Membership Interest is not subject to any
contractual restriction, or any restriction under the organizational documents
of Borrower or Member upon the transfer of such Membership Interest (except for
any such restriction contained in any Financing Document).  Such Membership Interest exists in a
certificated form.  No Person other than
Member is the registered owner of the Membership Interest.

 

Section 9. Covenants of Member.

 

Member covenants to and in favor of the Secured
Parties as follows:

 

(a)           Member shall maintain its existence as a Delaware
limited liability company and all material rights, privileges, and franchises
necessary to perform its obligations hereunder.

 

(b)           Member shall perform and comply, in all material
respects, with all obligations and conditions on its part to be performed
hereunder, under the LLC Agreement and with respect to the Collateral.

 

(c)           Member will, so long as any Obligations shall be
outstanding, defend its title to the Collateral and the interest of Security
Agent in the Collateral against any claim or demand of any Persons (except for
Permitted Liens).

 

(d)           Member shall not directly or indirectly create, incur,
assume or suffer to exist any liens on or with respect to any part of the
Collateral (other than Liens granted pursuant to the Financing Documents or
clauses (b) and (f) of the definition of Permitted Liens as such term
is defined in Section 8(e) above).  Member will at its own cost and expense
promptly take such action as may be necessary to discharge any such liens.

 

(e)           Without the prior written consent of Security Agent,
such consent not to be unreasonably withheld, Member will not file or authorize
to be filed in any jurisdiction any financing statements under the UCC or any
like statement with respect to the Collateral, in which Security Agent is not
named as the sole secured party for the benefit of the Secured Parties.

 

(f)            Member will not cause, suffer or permit the sale,
assignment, conveyance or other transfer of all or any portion of Member’s
Membership Interest in Borrower other than in accordance with Section 8.17
of the Financing Agreement.

 

17

 

(g)           Without the prior written consent of Security Agent,
such consent in respect to modification or amendment not to be unreasonably
withheld, or except as otherwise permitted by the Financing Agreement, shall
not terminate, modify or amend the LLC Agreement.

 

(h)           Member shall give to Security Agent prompt notice of (i) each
demand or notice received by it relating to the LLC Agreement; and (ii) any
default, event of default or event which with the giving of notice or the
passage of time or both might reasonably be expected to become a default under
the LLC Agreement, whether by Borrower, Member or any other Person, of which
Member has knowledge or has received notice.

 

(i)            If Member in its capacity as a member of Borrower
receives any income or distribution of money or property of any kind from
Borrower while an Event of Default has occurred and is continuing (other than
as permitted hereby or under the Financing Agreement), Member shall hold such
income or distribution as trustee for and shall deliver the same to Security
Agent.

 

(j)            Member will, at all times, keep accurate and complete
records of the Collateral.  Upon three
Business Days’ prior notice, Member shall permit representatives of Security
Agent during normal business hours of Member to inspect and make abstracts from
Member’s books and records pertaining to the Collateral.  Upon the occurrence and continuance of any
Event of Default, at Security Agent’s request, Member shall promptly deliver
copies (or, where requested by Security Agent, and where available, originals)
of any and all such records to Security Agent.

 

(k)           Member shall not cause, consent to, or permit any
termination, material amendment or modification to, or waiver of timely
compliance with any material terms or conditions of the LLC Agreement without
the prior written consent of the Administrative Agent (with the consent of the
Required Applicable Lenders, acting reasonably).

 

(l)            Member shall give Security Agent at least 10 Business
Days’ notice of a change in location of its place of business and chief
executive office and shall, at the expense of Borrower, execute and deliver
such instruments and documents as may be required by Security Agent to maintain
the security interest in the Collateral created hereunder.

 

(m)          Any indebtedness owed to Member by Borrower shall be
subordinated pursuant to the terms of Exhibit M of the Financing Agreement
(the terms of which are incorporated herein by reference).

 

(n)           Except as otherwise permitted under the Financing
Agreement, Member will not make any assignment of its rights under the LLC
Agreement other 

 

18

 

than
any assignment pursuant to this Agreement or any other Financing Document.

 

Section 10. Voting Rights.

 

(a)           Unless an Event of Default has occurred and is
continuing (and not waived by Administrative Agent or Security Agent), Member
shall be entitled to exercise all the rights and powers of a holder of such
interest, including the right to vote from time to time exercisable in respect
of the Membership Interest and to give proxies, consents and waivers in respect
thereof.  No such action may be taken if
such action would violate or be inconsistent with the Financing Agreement, any
Financing Document or this Agreement.

 

(b)           Upon the occurrence and continuance of an Event of
Default that has not been waived, Security Agent may give Member a notice
prohibiting Member from exercising the rights and powers of a holder of the
Membership Interest, including the right to vote the Membership Interest, at
which time (and until such time that such Event of Default has been cured or
waived), all such rights of Member will cease immediately and Security Agent
will have the right to exercise the rights and powers related to the Membership
Interest, including the right to vote.

 

(c)           Upon the occurrence and continuance of an Event of
Default that has not been waived, and whether or not Security Agent exercises
any available right to declare any Obligation due and payable or seek or pursue
any other right, remedy, power or privilege available to it under applicable
law, this Agreement or any other Financing Document, all dividends and other
distributions on all Securities (as defined in the UCC) included in the
Collateral shall be paid directly to a Collateral Account designated by
Security Agent and retained by it in such account as part of the Collateral,
subject to the terms of this Agreement and the other Financing Documents, and,
if Security Agent so requests, Member shall execute and deliver to Security
Agent appropriate additional dividend, distribution and other orders and
instruments to that end, provided that if such Event of Default is cured, any
such dividend or distribution paid to Security Agent prior to its cure shall,
upon request of Member (except to the extent applied to the Obligations), be
returned by Security Agent to Member.

 

Section 11. Certain Consents and Waivers.

 

(a)           Member hereby waives, to the maximum extent permitted
by law, and only while this Agreement is in effect (subject to Section 25
below), (i) all rights and remedies afforded to guarantors, sureties and
other Persons under applicable law, including limitations on the recovery of a
deficiency under an obligation secured by a deed of trust on real property if
the real property is sold under a power of sale contained in the deed of trust,

 

19

 

including
specifically, the rights and remedies available under the laws of the State of
New York, and all defenses based on any loss, whether as a result of any such
sale or otherwise, of Member’s right to recover any amount from Borrower,
whether by right of subrogation or otherwise; (ii) all rights under any
law to require Security Agent to pursue Borrower or any other Person, or to
proceed against or exhaust any security held by Security Agent, or to pursue
any other remedy before proceeding against Member; (iii) all rights of
reimbursement or subrogation, including the rights and protections under the
laws of the State of New York, all rights to enforce any remedy that Security
Agent or the Secured Parties may have against Borrower, and all rights to
participate in any security held by Security Agent until the Obligations have
been satisfied in full; (iv) all rights to require Security Agent to give
any notices of any kind, including notices of nonpayment, nonperformance,
notice of intent to accelerate, notice of acceleration, protest, dishonor,
default, delinquency or acceleration, or to make any presentments, demands or
protests, except as expressly provided in the Financing Documents; (v) all
rights to assert the bankruptcy or insolvency of Borrower or Project Companies
as a defense hereunder or as the basis for rescission hereof; (vi) all
rights under any law purporting to reduce Member’s Obligations hereunder if
Borrower’s Obligations under any Financing Document are reduced; (vii) all
defenses based on the disability or lack of authority of Borrower or any
Person, the repudiation of the Financing Documents by Borrower or any Person,
or the failure by Security Agent or the Secured Parties to enforce any claim
against Borrower, or the unenforceability in whole or in part of any Financing
Documents; and (viii) all suretyship and guarantor’s defenses
generally.  Member further agrees that
upon an Event of Default with respect to Borrower or Project Companies,
Security Agent may elect to exercise any remedy against Borrower or any
security or any guarantor under the Financing Documents and this Agreement,
even if the effect of that action is to deprive Member of the right to collect
reimbursement from Borrower or Project Companies for any sums paid by Member to
Security Agent or any Secured Party.

 

Section 12. Borrower’s Consent and
Covenant.

 

Borrower hereby consents to the assignment and grant of a security
interest in the Collateral to Security Agent and to the exercise by Security
Agent of all rights and powers assigned or delegated to Security Agent by Member
hereunder, including the right of Security Agent upon and during the
continuance of an Event of Default to exercise Member’s voting rights and other
rights under the LLC Agreement to manage or control Borrower as provided
herein.  Borrower further agrees to
perform all covenants and obligations herein which, by their terms, are to be
performed by Borrower.

 

20

 

Section 13. Attorney-in-Fact.

 

Upon the occurrence and during the continuation of an Event of Default,
Member hereby irrevocably constitutes and appoints Security Agent its true and
lawful attorney-in-fact with full power (in the name of Member or otherwise) to
enforce all rights of Member with respect to the Collateral, including the
right:

 

(a)           to ask, require, demand, receive, compound and give
acquittance for any and all moneys and claims for money due and to become due
under or arising out of the Collateral;

 

(b)           to elect remedies thereunder, to endorse any checks or
other instruments or orders in connection therewith;

 

(c)           to vote as provided herein, demand, receive and
enforce Member’s rights with respect to the Collateral;

 

(d)           to give appropriate receipts, releases and
satisfactions for and on behalf of and in the name of Member or, at the option
of Security Agent, in the name of Security Agent, with the same force and
effect as Member could do if this Agreement had not been made;

 

(e)           to file any claims or take any action or institute any
proceedings in connection therewith which Security Agent may reasonably deem to
be necessary or advisable;

 

(f)            to preserve the validity, perfection and priority of
the liens granted by this Agreement;

 

(g)           to execute, in connection with any sale or disposition
of the Collateral under Section 6, any endorsements, assignments,
bills of sale or other instruments of conveyance or transfer with respect to
all or any part of the Collateral;

 

(h)           to pay or discharge taxes and liens levied or placed
on or threatened against the Collateral; and

 

(i)            to (A) direct any party
liable for any payment under any Collateral to make payment of any moneys due
or to become due thereunder directly to Security Agent or as Security Agent
shall direct, (B) ask or demand for, collect, and receive payment of and
receipt for, any moneys, claims and other amounts due or to become due at any
time in respect of or arising out of any Collateral, (C) commence and
prosecute any suit, action or proceeding at law or in equity in any court of
competent jurisdiction to collect any Collateral and to enforce any other right
in respect of any Collateral, (D) defend any suit, action or proceeding
brought against Member with respect to any Collateral, (E) settle,
compromise or adjust any such suit, action or proceeding and, in connection
therewith, give such

 

21

 

discharges or releases as Security Agent may
deem appropriate and (F) generally, sell, transfer, pledge and make any
agreement with respect to or otherwise deal with any Collateral as fully and
completely as though Security Agent were the
absolute owner thereof for all purposes, and do, at Security Agent’s option and
Member’s expense, at any time, or from time to time, all acts and things that Security Agent
deems necessary to protect, preserve or realize upon the Collateral and Security Agent’s
and the other Secured Parties’ security interests therein and to effect the
intent of this Agreement, all as fully and effectively as Member might do;

 

provided, however, that
Security Agent shall not exercise any such right unless an Event of Default has
occurred and is continuing.  This power
of attorney is a power coupled with an interest and shall be irrevocable.

 

Section 14. Perfection; Further
Assurances.

 

(a)           Perfection. 
Member agrees that from time to time, Member shall promptly execute and
deliver all instruments and documents, and take all action, that may be
reasonably necessary, or that Security Agent may reasonably request, in order
to perfect and protect the assignment and security interest granted or intended
to be granted hereby, or to enable Security Agent to exercise and enforce its
rights and remedies hereunder with respect to any Collateral in accordance with
the terms hereof.  Without limiting the
generality of the foregoing, Member shall (i) deliver the Collateral or
any part thereof to Security Agent for the benefit of the Secured Parties as
Security Agent may request, endorsed or accompanied by such duly executed
instruments of transfer or assignment, as Security Agent may request, and in
form and substance reasonably satisfactory to Security Agent; and (ii) execute
and file such financing or continuation statements, or amendments thereto, and
such other instruments, endorsements or notices, as may be reasonably necessary
or as Security Agent may reasonably request, in order to perfect and preserve
the assignments and security interests granted or purported to be granted
hereby.

 

(b)           Filing of Financing Statement.  Member hereby authorizes Security Agent to
file one or more financing or continuation statements, and amendments thereto,
relative to all or any part of the Collateral without the signature of Member
where permitted by law, provided, that Security Agent delivers to Member
and Borrower a copy of any such statement or amendment.

 

(c)           Filing Costs. 
Borrower or Member shall pay all filing, registration and recording fees
and all refiling, re-registration and re-recording fees, and all reasonable
out-of-pocket expenses incident to the execution and acknowledgment of this
Agreement, and all federal, state, county and municipal stamp taxes and other
taxes, duties, imports, assessments and charges arising out of or in connection
with the execution and delivery of 

 

22

 

this
Agreement, any agreement supplemental hereto, any financing statements, and any
instruments of further assurance, except as may otherwise be provided in the
Financing Agreement.

 

Section 15. Notices.

 

All notices required or permitted under the terms and provisions hereof
shall be in writing and any such notice shall be effective if given in
accordance with the provisions of Section 14.1of the Financing
Agreement.  Notices to Borrower may be
given at the address of Borrower set forth in such Section 14.1 of the
Financing Agreement.  Notices to Member
may be given at the following address:

 

	
   

  	
  CSSW Stetson Holdings,
  LLC

  
	
   

  	
  c/o First Wind Energy, LLC

  
	
   

  	
  179 Lincoln Street, Suite 500

  
	
   

  	
  Boston, MA 02111

  
	
   

  	
  Attention:

  	
  Secretary

  
	
   

  	
  Facsimile:

  	
  (617) 960-2889

  

 

Section 16. Continuing Assignment and Security Interest; Transfer
of Notes.

 

This Agreement shall create a continuing pledge and assignment of and
security interest in the Collateral and shall (a) remain in full force and
effect until the Discharge of Obligations; (b) be binding upon Borrower
and Member, and their respective successors and assigns; and (c) inure,
together with the rights and remedies of Security Agent, to the benefit of
Security Agent, the Secured Parties and their respective successors,
transferees and permitted assigns. 
Without limiting the generality of the foregoing, Security Agent or any
Secured Party may assign or otherwise transfer all or any part of or interest
in the Notes, the Commitments or other evidence of the Obligations owed to them
to any other Person to the extent permitted by and in accordance with the Financing
Agreement, and such other Person shall thereupon become vested with all or an
appropriate part of the benefits in respect thereof granted to the Secured
Parties herein.  The release of the
security interest in any or all of the Collateral, the taking or acceptance of
additional security, or the resort by Security Agent to any security it may
have in any order it may deem appropriate, shall not affect the liability of
any Person on the indebtedness secured hereby.

 

Section 17. Termination of Security
Interest.

 

Upon the Discharge of Obligations, the security interest granted hereby
shall terminate and all rights to the Collateral shall automatically revert to
Member.  Upon any such termination,
Security Agent will return promptly all certificates evidencing Member’s
ownership interest in Borrower, and all ownership powers executed hereunder, to
Member, and will, at Member’s expense, execute and deliver to Member such
documents (including UCC-3 termination statements) as Borrower or Member shall
reasonably request to evidence such termination.  If this Agreement shall be terminated or
revoked by operation of law, Member will indemnify and hold Security Agent and
the 

 

23

 

Secured Parties harmless from any loss, cost or
expense which may be suffered or incurred by Security Agent and the Secured
Parties in acting hereunder in good faith prior to the receipt by Security
Agent, its successors, transferees or assigns, of notice of such termination or
revocation.

 

Section 18. Severability.

 

Any provision of this Agreement which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining provisions
hereof, and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other
jurisdiction.

 

Section 19. Successors and Assigns.

 

All covenants and agreements contained herein shall be binding upon,
and inure to the benefit of, the parties hereto and their respective successors
and permitted assigns, provided however, that none of Member nor Borrower may
assign its rights or obligations hereunder without the prior written consent of
Security Agent unless such an assignment is in connection with a transfer of
the Membership Interest permitted under Section 9(f) or
otherwise not in violation of the Financing Agreement.

 

Section 20. Headings.

 

The table of contents and headings of the various sections herein are
for convenience of reference only and shall not define or limit any of the
terms or provisions hereof.

 

Section 21. Liability.

 

The scope of liability of Member and the Non-Recourse Parties (as
defined in Article 11 of the Financing Agreement) shall be as set forth in
such Article 11 of the Financing Agreement, which is incorporated herein
by this reference.

 

Section 22. References to Other Documents.

 

Subject to the Financing Agreement, all defined terms used in this
Agreement which refer to other documents shall be deemed to refer to such other
documents as they may be amended, supplemented or replaced from time to time,
provided such documents were not amended in breach of a covenant contained in
any agreement to which Member, Borrower, Project Companies or Security Agent is
a party.

 

Section 23. Governing Law.

 

THIS AGREEMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REFERENCE TO THE CONFLICTS OF LAW RULES THEREOF (OTHER THAN SECTION 5-1401
AND SECTION 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW), EXCEPT AS
REQUIRED BY 

 

24

 

MANDATORY PROVISIONS OF LAW AND EXCEPT TO THE EXTENT
THAT THE VALIDITY OR PERFECTION OF THE LIEN AND SECURITY INTEREST HEREUNDER, OR
REMEDIES HEREUNDER, IN RESPECT OF ANY PARTICULAR COLLATERAL ARE GOVERNED BY THE
LAWS OF A JURISDICTION OTHER THAN THE STATE OF NEW YORK.

 

Section 24. Execution in Counterparts.

 

This Agreement may be executed in one or more duplicate counterparts,
and when executed and delivered by all the parties hereto, shall constitute a
single binding agreement.

 

Section 25. No Amendment, Modification.

 

This Agreement may only be amended or modified by an instrument in
writing signed by Member, Borrower and Security Agent, both for itself and on
behalf of any other parties to be charged in accordance with the terms of this
Agreement.

 

Section 26. Third Party Rights.

 

Nothing in this Agreement, expressed or implied, is
intended or shall be construed to confer upon, or give to any Person, other
than Member, Borrower, Security Agent and the Secured Parties, any security,
rights, remedies or claims, legal or equitable, under or by reason hereof, or
any covenant or condition hereof; and this Agreement and the covenants and agreements
herein contained are and shall be held to be for the sole and exclusive benefit
of Member, Borrower, Security Agent and the Secured Parties.

 

Section 27. Reinstatement.

 

This Agreement and the continuing security interest in the Collateral
created hereunder shall automatically be reinstated, to the extent permitted by
applicable law, if and to the extent that for any reason any payment by or on
behalf of Member or Borrower in respect of the Obligations is rescinded or must
otherwise be restored by any holder of the Obligations, whether as a result of
any proceedings in bankruptcy or reorganization or otherwise.

 

Section 28. Conflict Among Agreements.

 

In the event of any
conflict between the terms and provisions of this Agreement, and the Financing
Agreement, the terms and conditions of the Financing Agreement shall prevail.

 

Section 29. Waiver of Jury Trial.

 

THE PARTIES TO THIS AGREEMENT HEREBY KNOWINGLY, VOLUNTARILY, AND
INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL BY JURY IN RESPECT
OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION
WITH, THIS 

 

25

 

AGREEMENT OR ANY OTHER OPERATIVE DOCUMENT, OR ANY
COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN),
OR ACTIONS OF SECURITY AGENT, THE SECURED PARTIES, MEMBER OR BORROWER.  THIS PROVISION IS A MATERIAL INDUCEMENT FOR
SECURITY AGENT TO ENTER INTO THIS AGREEMENT.

 

[SIGNATURES
FOLLOW]

 

26

 

IN WITNESS WHEREOF, the parties hereto have caused this Pledge and
Security Agreement to be duly executed by their members and officers thereunto
duly authorized, as of the day and year first above written.

 

	
   

  	
  CSSW
  STETSON HOLDINGS, LLC,

  
	
   

  	
  a Delaware limited liability company, as Member

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  STETSON HOLDINGS, LLC,

  
	
   

  	
  a Delaware limited liability company, as Borrower

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  BNP PARIBAS,

  
	
   

  	
  as Security Agent

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Annex A

 

List of
Pledged Interests

 

1.     Stetson Holdings, LLC Certificate of Interest No. [    ],
issued on
[              ],
certifying that CSSW Stetson Holdings, LLC is the owner of the Certificate of
Interest representing a 100% membership interest in Stetson Holdings, LLC,
subject to the terms of the Limited Liability Company Agreement of Stetson
Holdings, LLC, dated as of May 27, 2008, as modified by that certain
Membership Interest Transfer Agreement of Stetson Holdings, LLC, dated as of July 17,
2009, as further amended by that certain First Amendment to Limited Liability
Company Agreement of Stetson Holdings, LLC, dated as of July 17, 2009, and
as further amended by that certain Second Amendment to Limited Liability
Company Agreement, dated as of the date hereof (as amended, amended and
restated, supplemented or otherwise modified from time to time).

 

A-1

 

Schedule
A

 

List of
Required Filings

 

1.     UCC-1 Financing Statement naming CSSW Stetson
Holdings, LLC, as Debtor and BNP Paribas, in its capacity as Security Agent, as
Secured Party, to be filed with the Secretary of State of the State of
Delaware.

 

Exhibit E-7

 

S-1

 

EXHIBIT
F-2

to
Financing Agreement

 

FORM OF
CONSENT OF BOP CONTRACTOR

 

(See Tab      )

 

 

This CONSENT AND AGREEMENT, dated as of December 22, 2009
(this “Consent”), is entered into by and among REED & REED,
INC., a corporation organized and
existing under the laws of the state of Maine (together with its
permitted successors and assigns, “Contracting Party”), EVERGREEN WIND POWER V, LLC, a Delaware
limited liability company (“EWP”), and BNP PARIBAS, as Security Agent (“Agent”)
for the Secured Parties (as defined in the Financing Agreement).

 

RECITALS

 

A.            In order to
finance the operation of a 57 MW wind energy project and a 25.5 MW wind energy project located
in Washington County, Maine (collectively, or individually, as the case may be,
the “Project”), Stetson Holdings, LLC has entered into that certain
Financing Agreement dated as of December 22, 2009 with BNP Paribas (“BNPP”)
as Joint Lead Arranger, Joint Bookrunner, Administrative Agent for the Lenders,
Security Agent and Issuing Bank, and HSH Nordbank AG, New York Branch (“HSHN”),
as Joint Lead Arranger, Joint Bookrunner and Co-Syndication Agent, and certain
other lenders (“Lenders”) party thereto (the “Financing Agreement”).  In connection with the Financing Agreement,
EWP and Agent have entered into a Guaranty and Security Agreement (the “Security
Agreement”), under which EWP has agreed to assign its interest under the
Assigned Agreement (as defined below) to Agent as collateral for certain
secured obligations under the Financing Agreement.

 

B.            Contracting
Party and EWP have entered into that certain Stetson Wind Power Project
Transmission Construction Works Contract No. EWPV-07-02, dated as of December 31,
2007, as amended by Change Order Number 001 dated as of August 15, 2008,
as further amended by Change Order Number 002 dated as of November 9,
2008, as amended by Change Order Number 003 dated as of November 11, 2008,
and as amended by
Change Order Number 004, dated as of January 28, 2009 (as
additionally amended, amended and restated, 

 

 

supplemented or otherwise modified from time to time
in accordance with the terms thereof and hereof,  the
“Assigned Agreement”).

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the foregoing, and for other good
and valuable consideration, the receipt and adequacy of which are hereby
acknowledged, and intending to be legally bound, the parties hereto hereby
agree, notwithstanding anything in the Assigned Agreement to the contrary, as
follows:

 

I.              ASSIGNMENT AND AGREEMENT.

 

A.            Consent
to Assignment.

 

Contracting Party consents to the collateral assignment under the
Security Agreement of all of EWP’s right, title and interest in, to and under
the Assigned Agreement (collectively, the “Assigned Interests”).  Contracting Party acknowledges the right of
Agent, in the exercise of Agent’s rights and remedies pursuant to the Security
Agreement, to make all demands, give all notices, take all actions and exercise
all rights of EWP under the Assigned Agreement.

 

B.            Subsequent
Owner.

 

1.             Contracting Party agrees that, if Agent
notifies Contracting Party in writing that, pursuant to the Security Agreement,
it has assigned, foreclosed or sold the Assigned Interests, then (i) Agent
or its successor, assignee and/or designee (a “Subsequent Owner”) shall
be substituted for EWP under the Assigned Agreement and (ii) Contracting
Party shall (1) recognize Agent or the Subsequent Owner, as the case may
be, as its counterparty under the Assigned Agreement and (2) continue to
perform its obligations under the Assigned Agreement in favor of Agent or the
Subsequent Owner, as the case may be; provided that Agent or such
Subsequent Owner, as the case may be, has assumed in writing all of EWP’s rights and obligations (including,
without limitation, the obligation to cure any then existing payment and
performance defaults, but excluding any obligation to cure any then existing
performance defaults which by their nature are incapable of being cured) under
the Assigned Agreement.

 

2.             Without limiting anything herein, the
warranties provided by Contracting Party under the Assigned Agreement shall
continue in full force and effect (until the expiration of the applicable
warranty periods set forth in the Assigned Agreement) in the event that Agent
or a Subsequent Owner succeeds to EWP’s right, title and interest in the Assigned Agreement.

 

 

C.            Right
to Cure.

 

If EWP defaults in the performance of any of its obligations under the
Assigned Agreement, or upon the occurrence or non-occurrence of any event or
condition under the Assigned Agreement which would immediately or with the
passage of any applicable grace period or the giving of notice, or both, enable
Contracting Party to terminate or suspend its performance under the Assigned
Agreement (each hereinafter a “Default”), Contracting Party shall not terminate
or suspend its performance under the Assigned Agreement until it first gives
written notice of such Default to Agent and affords Agent a period of at least
30 days (this 30 day period, for the avoidance of doubt, being in addition to
any cure period granted to EWP to cure such Default under the Assigned
Agreement) or if such Default is a nonmonetary default, a period of 60 days
(this 60 day period, for the avoidance of doubt, being in addition to any cure
period granted to EWP to cure such Default under the Assigned Agreement) from
receipt of such notice to cure such Default.

 

D.            Delivery
of Notices.

 

Contracting Party shall deliver notice to Agent when there is a Default
by EWP under the Assigned Agreement.

 

E.             Termination.

 

In the event that
the Assigned Agreement is terminated by rejection, or otherwise, during a case
in which EWP is the
debtor under Title 11, United States Code, or other similar federal or state
statute, then, in the event that Agent
or its nominee or designee has commenced foreclosure proceedings on the assets
of EWP, Contracting
Party shall, at the option of Agent and so long as all existing payment
defaults by EWP under the Assigned Agreement are cured by Agent or its
nominee or designee, enter into a new agreement with Agent or (at the direction
of Agent) its nominee or designee having terms substantially identical to the
Assigned Agreement, 

 

 

pursuant
to which Agent or its nominee or designee shall have all of the rights and
obligations of EWP under the Assigned Agreement.

 

II.            REPRESENTATIONS AND
WARRANTIES

 

Each of
Contracting Party, EWP and Agent hereby represents and warrants as of the
date hereof that it is duly organized, validly existing, and in good standing
under the laws of the commonwealth or state of its organization and is
qualified and in good standing in each other jurisdiction where the failure to
so qualify would have a material adverse effect upon its business or financial
condition, and it has all requisite power and authority to conduct its
business, to own its properties and to execute, deliver and perform its
obligations under this Consent.

 

III.           PAYMENTS UNDER THE
ASSIGNED AGREEMENT

 

Contracting Party
shall pay all amounts (if any) payable by it under the Assigned Agreement to EWP in the manner and as and when required by
the Assigned Agreement directly into the account specified from time to time by
Agent to Contracting Party in writing. 
Notwithstanding the foregoing, if any entity or person has become a
Subsequent Owner pursuant to the terms hereof, then Contracting Party shall pay
all such amounts directly to an account designated by Subsequent Owner.

 

IV.           MISCELLANEOUS.

 

A.            Notices.

 

Any communications
between the parties hereto or notices provided herein to be given may be given
to the following addresses:

 

	
  If to Contracting
  Party:

  	
   

  	
  If to EWP:

  
	
   

  	
   

  	
   

  
	
  Reed & Reed, Inc.

  	
   

  	
  Evergreen Wind Power V,
  LLC

  
	
  P.O. Box 370, Route 128

  	
   

  	
   

  
	
  Woolwich, ME 04579

  	
   

  	
  c/o First Wind Energy,
  LLC

  
	
  Facsimile: (207)
  443-2792

  	
   

  	
   

  

 

 

	
  Attention: Pat Defilipp
  and Jack Parke

  	
   

  	
  179 Lincoln Street,
  Suite 500

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Boston, Massachusetts
  02111

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Facsimile: (617)
  960-2889

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attention: Secretary

  
	
   

  	
   

  	
   

  
	
  If to Agent:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BNP Paribas

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  787 Seventh Avenue

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  New York, NY 10019

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Telephone: (212)
  841-2000

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Facsimile: (212)
  841-2146

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Attention: Project
  Finance & Utilities

  	
   

  	
   

  

 

All notices or other communications required or permitted to be given
hereunder shall be in writing and shall be considered as properly given (a) if
delivered in person, (b) if sent by overnight delivery service (including
Federal Express, UPS, DHL and other similar overnight delivery services), (c) in
the event overnight delivery services are not readily available, if mailed by
first class United States Mail, postage prepaid, registered or certified with
return receipt requested, (d) if sent by prepaid telegram or by facsimile
or (e) if sent by other electronic means (including electronic mail)
confirmed by facsimile or telephone.  Any
party may change its address for notice hereunder by giving of 30 days’ notice
to the other parties in the manner set forth herein.

 

B.            Counterparts.

 

This Consent may be executed in any number of counterparts and by the
different parties hereto on separate counterparts, each of which when so
executed and delivered shall be 

 

 

an original, but all of which shall together
constitute one and the same instrument.

 

C.            Amendment,
Waiver.

 

Neither this Consent nor any of the terms hereof may be terminated,
amended, supplemented, waived or modified except by an instrument in writing
signed by Contracting Party and Agent.

 

D.            Successors
and Assigns.

 

This Consent shall bind and benefit Contracting Party, Agent, and their
respective successors and assigns.

 

E.             Further
Assurances.

 

Contracting Party will, upon the reasonable written request of Agent,
execute and deliver such further documents and do such other acts and things
necessary to effectuate the purposes of this Consent.

 

F.             Governing
Law.

 

This Consent shall
be governed by the laws of the State of New York without reference to conflicts
of laws rules thereof (other than Section 5-1401 of the New York
General Obligations Law).

 

[signatures on the following pages]

 

 

IN WITNESS WHEREOF, the parties hereto, by their officers duly
authorized, intending to be legally bound, have caused this Consent and
Agreement to be duly executed and delivered as of the date first above written.

 

	
   

  	
  REED &
  REED, INC., a Maine Corporation, as Contracting Party

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

	
   

  	
  EVERGREEN
  WIND POWER V, LLC, a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:
  Evelyn Lim

  
	
   

  	
   

  	
  Title: Secretary

  

 

 

	
  Accepted
  and Agreed to

  
	
  BNP
  PARIBAS, as Agent

  
	
   

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Exhibit F-2

 

1

 

EXHIBIT
F-3

to
Financing Agreement

 

FORM OF
CONSENT OF ENERGY HEDGE PROVIDER

 

(See Tab      )

 

 

CONSENT OF CONSTELLATION ENERGY COMMODITIES GROUP, INC.

 

This CONSENT AND
AGREEMENT (as amended, modified and supplemented from time to time, this “Consent”),
dated as of December 22, 2009, is executed by Constellation Energy
Commodities Group, Inc., a Delaware corporation (“Contracting Party”),
Stetson Holdings, LLC, a Delaware limited liability company (“Assignor”),
and BNP Paribas (“Agent”).

 

RECITALS

 

WHEREAS, Assignor owns and
operates a wind generating facility with a nameplate capacity of up to 57
megawatts and a wind generating facility with a nameplate capacity of up to
25.5 megawatts located in Washington and Penobscot Counties, Maine
(collectively, the “Project”);

 

WHEREAS, Assignor has
entered into with Contracting Party that certain (i) ISDA International
Swaps Dealers Association, Inc. Master Agreement, dated as of June 11,
2008, with Contracting Party (“Master Agreement” ), (ii) Schedule
to the Master Agreement, dated as of June 11, 2008, with Contracting Party
(“Schedule”), (iii) ISDA International Swaps and Derivatives
Association, Inc. Credit Support Annex to the Schedule to the Master
Agreement, dated as of June 11, 2008, with Contracting Party (“Credit
Support Annex”) and (iv) Confirmation to the Master Agreement, dated
as of June 11, 2008, with Contracting Party (“Confirmation”)
(together with the Master Agreement, Schedule, and Credit Support Annex, each
as amended in accordance with the terms hereof or as may be further amended,
amended and restated, supplemented or otherwise modified from time to time in
accordance with the terms thereof, the “Agreement”);

 

WHEREAS, pursuant to the Financing Agreement (as the
same may be amended, amended and restated, supplemented or otherwise modified
from time to time, the “Financing Agreement”), dated as of December 22, 2009,
by and among Assignor, as Borrower, the financial institutions from time to
time party thereto (the “Lenders”), BNP Paribas (“BNPP”) as Joint
Lead Arranger, Joint Bookrunner, Administrative Agent for the Lenders, Security
Agent and Issuing Bank, and HSH Nordbank AG, New York Branch (“HSHN”),
as Joint Lead Arranger, Joint Bookrunner, and Co-Syndication Agent, the Lenders
have agreed to extend financing to Assignor with respect to the operation and
maintenance of the Project;

 

WHEREAS, as a condition of the financing under the
Financing Agreement, Assignor is required to grant to Security Agent a
first-priority security interest in all of Assignor ‘s right, title and
interest in, to and under the Agreement (the “Assigned Interest”) as
collateral security for satisfaction of all obligations of Assignor to Security
Agent under a Pledge and Security Agreement and the other Loan Documents (as defined
in the Financing Agreement).

 

3

 

WHEREAS, it is a requirement under the Financing
Agreement that Contracting Party and the other parties hereto shall have
executed this Consent.

 

NOW THEREFORE, in consideration of the foregoing and
the mutual agreements contained herein, and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged,
the parties hereto hereby agree as follows:

 

1.             Consent and Agreement.  Contracting
Party:

 

(a)           consents to the assignment of the
Assigned Interest as collateral security to Agent;

 

(b)           acknowledges the right (but not the
obligation) of Agent in the exercise of its rights and remedies under the
Financing Agreement to, upon notice to Contracting Party that an “Event of
Default” has occurred and is continuing under the Financing Agreement, make all
demands, give all notices, take all actions and exercise all rights of Assignor
under the Agreement, and agrees to accept any such exercise; provided, however,
that, insofar as Agent exercises any of its rights under the Agreement or makes
any claims with respect to payments or other obligations under the Agreement,
the terms and conditions of the Agreement applicable to such exercise of rights
or claims shall apply to Agent to the same extent as to Assignor, provided,
further, that Agent or its designee, as the case may be, assumes in
writing all of Assignor’s obligations under the Agreement and notifies
Contracting Party of such assumption;

 

(c)           agrees not to (i) terminate the
Agreement or suspend performance of its services thereunder, except as provided in the Agreement or
to the extent permitted by law and, in any event with respect to a termination
of the Agreement, in accordance with Section 4 of this Consent; (ii) consent
to any termination of the Agreement by Assignor without the prior written
consent of Agent (such consent not to be unreasonably withheld or delayed),
except as provided in the Agreement and in accordance with Section 4
of this Consent; or (iii) except as provided in the Agreement (but in any
event subject to the assignee or transferee entering into a consent and
agreement substantially similar to this Consent), sell, assign or otherwise dispose (by operation of
law or otherwise) of any part of its right, title or interest in the Agreement,
in each case without the prior written consent of Agent (such consent not to be
unreasonably withheld or delayed);

 

(d)           agrees not to amend, supplement or modify
the Agreement in any material respect (excluding routine or immaterial change
orders or amendments), without the prior written consent of Agent (such consent
not to be unreasonably withheld or delayed) unless Contracting Party receives
confirmation from Assignor that such amendment, supplement or modification is  expressly permitted under the Financing Agreement;
and

 

(e)           agrees to promptly deliver to Agent
duplicates or copies of all notices of or with respect to default, suspension
or termination delivered under or pursuant to the Agreement.

 

2.             Assignor’s Acknowledgement. 
Assignor acknowledges and agrees that Contracting Party is permitted to
perform its obligations under the Agreement upon Agent’s exercise of Assignor’s
rights in accordance with this Consent, and that Contracting Party shall 

 

4

 

bear no liability to Assignor solely as a result of
performing its obligations under the Agreement upon such exercise by Agent.

 

3.             Subsequent Transferee. 
Contracting Party agrees that, if Agent shall notify Contracting Party
in writing that an “Event of Default” under the Financing Agreement has
occurred and is continuing and that Agent has elected to exercise its rights
and remedies pursuant to the Financing Agreement with respect to the
foreclosure (whether judicial or nonjudicial) or sale of the Assigned Interest
(or any portion thereof), then Agent or any other purchaser, successor,
assignee or designee of the Assigned Interest (as the case may be, in each
case, a “Subsequent Transferee”) shall be substituted for Assignor under
the Agreement and Contracting Party shall (a) recognize the Subsequent
Transferee as its counterparty under the Agreement and (b) continue to
perform its obligations under the Agreement in favor of the Subsequent
Transferee; provided, however, that such Subsequent Transferee: (i) has
elected in writing to assume all of Assignor’s rights and obligations  under the Agreement, (ii) has cured any then-existing payment defaults under
the Agreement, (iii) has provided credit support and collateral to the
extent and in the manner required under the Agreement, (iv) has acquired all of Assignor’s right, title and
interest in the Project and (v) is a Permitted Assignee.  “Permitted Assignee” shall mean a Person
having at least five (5) years experience in the operation and maintenance
of electrical generation facilities similar to the Project, which Person shall
be reasonably acceptable to Contracting Party. 
The Subsequent Transferee shall have the right to assign all of its
interest in the Agreement to any Person as permitted and under the terms set
forth in the Agreement.  “Person”
means any natural person, corporation, partnership, trust, joint venture,
limited liability company, firm, association, Governmental Authority or any
other entity whether acting in an individual, fiduciary or other capacity.

 

4.             Right to Cure. 
In the event of a default or breach by Assignor in the performance of
any of its obligations under the Agreement, or upon the occurrence or non-occurrence
of any event or condition under the Agreement which would immediately or with
the passage of any applicable grace period or the giving of notice, or both,
enable Contracting Party to terminate the Agreement (hereinafter, a “Default”),
Contracting Party shall not terminate the Agreement until it first gives
written notice of such Default to Agent (concurrently with the notice of such
Default to Assignor) and affords Agent (a) a period of thirty (30) days
from receipt of such notice to cure such Default if such Default is the failure
to pay amounts to Contracting Party which are due and payable under the
Agreement or (b) with respect to any other Default, a reasonable
opportunity, but no longer than  ninety (90)
days from receipt of such notice, to cure such non-payment Default (provided
that during such cure period Agent or Assignor continues to perform each of
Assignor’s other obligations under the Agreement).  Notwithstanding anything to the contrary
herein, if the Default is peculiar to Assignor and not curable by Agent, such
as the insolvency, bankruptcy, general assignment for the benefit of the Agent,
or appointment of a receiver, trustee, custodian or liquidator of Assignor or
its properties, then, notwithstanding any right that Contracting Party may have
to terminate the Agreement, Agent shall be entitled to assume the rights and
obligations of Assignor under the Agreement in accordance with Section 3
within the cure period provided in clause (b) above, and provided such
assumption has occurred within such period, Contracting Party shall not be
entitled to terminate the Agreement as a result of such Default.  If possession of the Project is necessary to
cure such Default, and Agent or its successor(s), assignee(s) and/or
designee(s) declares an Event of Default under the Financing Agreement and
commences foreclosure proceedings or any other proceedings necessary to take 

 

5

 

possession of the Project, Agent or its successors(s),
assignee(s) and/or designee(s) will be allowed a reasonable period to
complete such proceedings, provided that, once commenced, Agent or its
successor(s), assignee(s) and/or designee(s) shall pursue such
proceedings with due dispatch.  After
taking possession of the Project, Agent or its successor(s), assignee(s) and/or
designee(s) shall commence curing such Default within fifteen (15) days
after having possession of the Project and thereafter diligently pursue such
cure to completion within ninety (90) days after obtaining possession of the
Project or such later date, if any, permitted under the terms of the Agreement,
as applicable, for the performance of a cure of a Default.  If Agent or its successor(s), assignee(s) and/or
designee(s) is prohibited by any court order or bankruptcy or insolvency
proceedings of Assignor from curing the Default or from commencing or
prosecuting such proceedings, the foregoing time periods shall be extended by
the period of such prohibition.

 

5.             Replacement Agreement. 
In the event that the Agreement is rejected or terminated as a result of
any bankruptcy or insolvency proceeding, or the Agreement is terminated for any
reason other than a Default which could have been cured by Agent as provided in
Section 4, Contracting Party shall, at the option of Agent
exercised within forty-five (45) days after such rejection or termination,
enter into a new agreement with Agent having terms that are the same in all
material respects to those in  the
Agreement (subject to any conforming changes necessitated by the substitution
of parties and other changes as the parties may mutually agree, the “Replacement
Agreement”), provided that the term under such Replacement Agreement shall
be no longer than the remaining balance of the term specified in the
Agreement.  Agent shall have the right to
assign all of its interest in the Replacement Agreement to any Person in
accordance with and subject to Section 3.  Upon such assignment, Agent (including its
agents and employees) shall be released from any further liability thereunder
to the extent of its interest under the Replacement Agreement.

 

6.             No Liability. 
Contracting Party acknowledges and agrees that Agent (and any
successor(s), assignee(s), designee(s) other representative of Agent)
shall not have any liability or obligation under the Agreement as a result of
exercising its rights under this Consent or the Financing Agreement, nor shall
Agent (nor any successor(s), assignee(s), designee(s) or other
representative of Agent), be obligated or required to perform any of Assignor’s
obligations under the Agreement or to take any action to collect or enforce any
claim for payment assigned under any document executed in connection with the
Financing Agreement, except as provided in Section 1(b) or
during any period in which such Person has elected to become a Subsequent
Transferee pursuant to Section 3 or counterparty to a Replacement
Agreement pursuant to Section 5, in which case such Subsequent
Transferee shall assume all of Assignor’s rights and obligations under the
Agreement in accordance with Section 3, or, if such Person is a
counterparty to a Replacement Agreement, shall cure any Defaults for failure to
pay amounts owed under the Agreement but shall not otherwise be required to
perform or be subject to any defenses or offsets by reason of any of Assignor’s
other obligations under the Agreement that were unperformed at such time unless
expressly agreed to in writing by such counterparty.    Without limiting the
generality of the foregoing, under no circumstance shall Agent or its
successor(s), assignee(s) or designee(s), be liable to Contracting Party
for any action taken by it or on its behalf in good faith during the cure
period provided for in Section 4, notwithstanding such
action may prove to be in whole or in part, inadequate or invalid; provided
however the parties hereto acknowledge and agree that to the extent any such
action increases the Losses (as defined in the Agreement) of Contracting Party
resulting from a default or breach of the 

 

6

 

Agreement by Assignor, then
such Losses shall be taken into account in determining any payments due under
the Agreement as a result of such default or breach.

 

7.             Payment of Monies. 
Commencing when Agent notifies Contracting Party in writing that Agent
has established an account for the deposit of funds, and has directed
Contracting Party to make all payments required to be made by it under the
Agreement to such account, and so long as the Financing Agreement remains in
effect, Contracting Party hereby agrees to make all payments required to be
made by it under the Agreement in U.S. dollars, or, if Contracting Party has
been notified that an “Event of Default” under the Financing Agreement has
occurred and is continuing, to such other Person and/or at such other address
or account as the Agent may from time to time specify in writing to Contracting
Party and all payments made by Contracting Party shall be accompanied by a
statement stating that such payments are made under the Agreement.  Assignor hereby instructs Contracting Party,
and Contracting Party accepts such instructions, to make all payments due and
payable to Assignor under the Agreement as set forth in the immediately
preceding sentence.

 

8.             Representations and Warranties.  Contracting
Party hereby represents and warrants to Assignor and Agent as of the date of
this Consent that:

 

(a)           Contracting Party is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
formation/incorporation and has all requisite power and authority to execute,
deliver and perform its obligations under the Agreement and this Consent;

 

(b)           The execution, delivery and performance
by Contracting Party of the Agreement and this Consent have been duly
authorized by all necessary corporate action, and do not and will not require
any further consents or approvals which have not been obtained, or violate any
provision of any law, regulation, order, judgment, injunction or similar
matters or breach in any material respect any agreement presently in effect
with respect to or binding on Contracting Party;

 

(c)           All government approvals necessary for
the execution, delivery and performance by Contracting Party of its obligations
under the Agreement have been obtained and are in full force and effect, except
those governmental approvals routinely obtained during the ordinary course of
business during the execution of the Project;

 

(d)           This Consent and the Agreement are legal,
valid and binding obligations of Contracting Party, enforceable against
Contracting Party in accordance with their respective terms except as
enforceability may be limited by bankruptcy, reorganization, insolvency,
moratorium and other laws affecting creditors’ rights in general and except to
the extent that the availability of equitable remedies is subject to the
discretion of the court before which any proceeding therefor may be brought;

 

(e)           Assuming the due authorization, execution
and delivery by, and the binding effect on, Assignor, the Agreement is in full
force and effect and has not been amended, supplemented or modified since the
date of execution of the Agreement;

 

(f)            To the best of Contracting Party’s
knowledge, Assignor has fulfilled all of its obligations under the Agreement,
and there are no breaches, Defaults or unsatisfied conditions 

 

7

 

presently existing (or which would exist after the
passage of time and/or giving of notice) that would allow Contracting Party to
terminate the Agreement;

 

(g)           There are no disputes or legal
proceedings between Contracting Party and Assignor; and

 

(h)           The
representations and warranties of Contracting Party contained in the Agreement
are true and correct on the date hereof.

 

9.             Notices.  Any
communications between the parties hereto or notices provided herein to be
given, may be given to the following addresses:

 

	
  If to Contracting
  Party:

  	
  Constellation Energy
  Commodities Group, Inc.

  
	
   

  	
  111 Market Place, Suite
  500

  
	
   

  	
  Baltimore, MD 21202

  
	
   

  	
  Attn: Contract
  Administration

  
	
   

  	
  Telephone: (410)
  470-3738

  
	
   

  	
  Facsimile: (443)
  213-3556

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Constellation Energy
  Commodities Group, Inc.

  
	
   

  	
  111 Market Place, Suite
  500

  
	
   

  	
  Baltimore, MD 21202

  
	
   

  	
  Attention: General
  Counsel

  
	
   

  	
  Facsimile No. : (443-)
  213-3556

  
	
   

  	
   

  
	
  If to Agent:

  	
  BNP PARIBAS

  
	
   

  	
  787 Seventh Avenue

  
	
   

  	
  New York, NY 10019

  
	
   

  	
  Attention:

  	
  Project Finance &
  Utilities

  
	
   

  	
  Telephone:

  	
  (212) 841-2000

  
	
   

  	
  Facsimile:

  	
  (212) 841-2146

  
	
   

  	
   

  
	
  If to Assignor:

  	
  Stetson Holdings, LLC

  
	
   

  	
  c/o First Wind Energy,
  LLC

  
	
   

  	
  179 Lincoln Street,
  Suite 500

  
	
   

  	
  Boston, MA 02111

  
	
   

  	
  Attention: President

  
	
   

  	
  Facsimile: (617)
  960-2889

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  First Wind Energy, LLC

  
	
   

  	
  179 Lincoln Street,
  Suite 500

  
	
   

  	
  Boston, MA 02111

  
	
   

  	
  Attention: General
  Counsel

  

 

8

 

	
   

  	
  Facsimile: (617)
  960-2889

  

 

All notices or other communications required or permitted to be given
hereunder shall be in writing and shall be considered as properly given (a) if
delivered in person, (b) if sent by overnight delivery service, (c) in
the event overnight delivery services are not readily available, if mailed by
first class mail, postage prepaid, registered or certified with return receipt
requested or (d) if sent by prepaid telegram, or by telecopy, confirmed by
telephone.  Notice so given shall be
effective upon receipt by the addressee, except that communication or notice so
transmitted by telecopy or other direct written electronic means shall be
deemed to have been validly and effectively given on the day (if a business day
and, if not, on the next following business day) on which it is transmitted if
transmitted before 4 p.m., recipient’s time, and if transmitted after that
time, on the next following business day; provided, however, that if any notice
is tendered to an addressee and the delivery thereof is refused by such
addressee, such notice shall be effective upon such tender.  Any party shall have the right to change its
address for notice hereunder by giving of thirty (30) days’ written notice to
the other parties in the manner set forth herein above.

 

10.           Binding Effect;
Amendments; Confirmation.  This Consent shall be binding upon and
benefit the successors and assigns of Contracting Party, Assignor, Agent and
their respective successors, transferees and permitted assigns (including without
limitation, any entity that refinances all or any portion of Assignor’s
obligations under the Financing Agreement). 
No termination, amendment, variation or waiver of any provisions of this
Consent shall be effective unless in writing and signed by Contracting Party,
Agent and Assignor; provided that all rights and obligations of Agent hereunder
shall terminate upon payment in full of the obligations of Assignor under the
Financing Agreement without the requirement for any such writing.

 

11.           Governing Law. 
This Consent shall be governed by the laws of the State of New York
without reference to conflicts of laws rules thereof (other than Section 5-1401
of the New York General Obligations Law). 
CONTRACTING PARTY, ASSIGNOR, AND AGENT HEREBY
SUBMIT TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN
NEW YORK CITY FOR THE PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR
RELATING TO THIS CONSENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.  EACH OF CONTRACTING PARTY, ASSIGNOR AND AGENT
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
IT MAY 

 

9

 

NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE
OF ANY SUCH PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH
PROCEEDING BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

EACH OF CONTRACTING PARTY, ASSIGNOR AND AGENT HEREBY IRREVOCABLY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT TO TRIAL BY
JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS CONSENT OR THE
TRANSACTIONS CONTEMPLATED HEREBY.

 

12.           Severability. 
Any provision of this Consent which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

13.           Counterparts. 
This Consent may be executed in one or more duplicate counterparts, and
when executed and delivered by all the parties listed below, shall constitute a
single binding agreement.

 

14.           Interpretation. 
All references in this Consent to any document, instrument or agreement (a) shall
include all contract variations, change orders, exhibits, schedules and other
attachments thereto, and (b) shall include all documents, instruments or
agreements issued or executed in replacement or as predecessor thereto, as
amended, modified and supplemented from time to time and in effect at any given
time.

 

[SIGNATURES FOLLOW]

 

10

 

IN WITNESS WHEREOF,
the undersigned, by its officer thereunto duly authorized, has duly executed
this Consent as of the date first above written.

 

 

	
   

  	
  CONSTELLATION
  ENERGY COMMODITIES GROUP, INC.,

  
	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

	
  Accepted
  and agreed:

  	
   

  
	
   

  	
   

  
	
  BNP
  PARIBAS,

  	
   

  
	
  as
  Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

 

	
  Accepted
  and agreed:

  	
   

  
	
   

  	
   

  
	
  STETSON
  HOLDINGS, LLC,

  	
   

  
	
  a
  Delaware limited liability company

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
  Evelyn Lim

  	
   

  
	
  Title:

  	
  Secretary

  	
   

  

 

Exhibit F-3

 

1

 

EXHIBIT
F-4

to
Financing Agreement

 

FORM OF
CONSENT OF ENERGY HEDGE GUARANTOR

 

(See Tab      )

 

 

CONSENT
OF CONTRACTING PARTY

 

This CONSENT AND
AGREEMENT (as amended, modified and supplemented from time to time, this “Consent”),
dated as of December 22, 2009, is executed by Constellation Energy Group, Inc., a Maryland corporation (“Contracting
Party”), Stetson Holdings, LLC, a Delaware limited liability company (“Assignor”),
and BNP Paribas (“Agent”).

 

RECITALS

 

WHEREAS, pursuant to the
Financing Agreement (as the same may be amended, amended and restated,
supplemented or otherwise modified from time to time, the “Financing
Agreement”), dated as of December 22, 2009, by and among Assignor,
as Borrower, the financial institutions from time to time party thereto (the “Lenders”),
BNP Paribas (“BNPP”) as Joint Lead Arranger, Joint Bookrunner,
Administrative Agent for the Lenders, Security Agent and Issuing Bank, and HSH
Nordbank AG, New York Branch (“HSHN”), as Joint Lead Arranger, Joint
Bookrunner and Co-Syndication Agent, the Lenders have agreed to extend
financing to Assignor with respect to the operation and maintenance of a wind
generating facility with a nameplate capacity of up to 57 megawatts and a wind
generating facility with a nameplate capacity of up to 25.5 megawatts located
in Washington and Penobscot Counties, Maine (collectively, the “Project”).

 

WHEREAS, Constellation Energy Commodities Group, Inc.,
an affiliate of Contracting Party, has entered into that certain (i) ISDA
International Swaps Dealers Association, Inc. Master Agreement, dated as
of June 11, 2008, with Contracting Party (“Master Agreement”), (ii) Schedule
to the Master Agreement, dated as of June 11, 2008, with Assignor (“Schedule”),
(iii) ISDA International Swaps and Derivatives Association, Inc.
Credit Support Annex to the Schedule to the Master Agreement, dated as of June 11,
2008, with Assignor (“Credit Support Annex”) and (iv) Confirmation
to the Master Agreement, dated as of June 11, 2008, with Assignor (“Confirmation”;
together with the Master Agreement, Schedule, and Credit Support Annex, each as
amended in accordance with the terms hereof or as may be further amended,
amended and restated, supplemented or otherwise modified from time to time in
accordance with the terms thereof, the “Agreement”).

 

WHEREAS, Contracting Party has entered into that
certain Guaranty with respect to the Agreement, dated as of February 9,
2009 for the benefit of Assignor (as amended in accordance with the terms
hereof or as may be further amended, modified and supplemented from time to
time in accordance with the terms hereof, the “Guaranty”).

 

WHEREAS, as a condition of the financing under the
Financing Agreement, Assignor is required to grant to Agent a first-priority
security interest in all of Assignor’s right, title and interest in, to and
under the Guaranty (the “Assigned Interest”) as collateral security for
satisfaction of all obligations of Assignor to Agent under a Pledge and
Security Agreement and the Loan Documents.

 

3

 

WHEREAS, it is a
requirement under the Financing Agreement that Contracting Party and the other
parties hereto shall have executed this Consent.

 

NOW THEREFORE, in consideration of the foregoing and the mutual
agreements contained herein, and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto
hereby agree as follows:

 

1.             Consent and Agreement. 
Contracting Party acknowledges and consents to the assignment of the
Assigned Interest as collateral security to Agent.

 

2.             Representations and Warranties. 
Contracting Party hereby represents and warrants to Assignor and Agent
as of the date of this Consent that:

 

(a)           Contracting Party is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
formation/incorporation and has all requisite power and authority to execute,
deliver and perform its obligations under the Guaranty and this Consent; and

 

(b)           The execution, delivery and performance
by Contracting Party of the Guaranty and this Consent have been duly authorized
by all necessary corporate action, and do not and will not require any further
consents or approvals which have not been obtained, or violate any provision of
any law, regulation, order, judgment, injunction or similar matters or breach
any agreement presently in effect with respect to or binding on Contracting
Party.

 

3.             Notification. 
The notification requirements pursuant to Section 11 of the
Guaranty shall be deemed satisfied by this Consent.

 

4.             Notices.  Any
communications between the parties hereto or notices provided herein to be
given, may be given to the following addresses:

 

4

 

	
  If to Contracting
  Party:

  	
  Constellation Energy
  Group, Inc.

  
	
   

  	
  100 Constellation Way,
  Suite 1600P

  
	
   

  	
  Baltimore, MD 21202

  
	
   

  	
  Attention: Treasurer

  
	
   

  	
  Facsimile: 410-470-5680

  
	
   

  	
   

  
	
   

  	
  with a copy to:

  
	
   

  	
   

  
	
   

  	
  Constellation Energy Commodities
  Group, Inc.

  
	
   

  	
  111 Market Place, Suite
  500

  
	
   

  	
  Baltimore, MD 21202

  
	
   

  	
  Attention: Credit
  Department

  
	
   

  	
  Telephone: 410-470-2389

  
	
   

  	
  Facsimile: 410-468-3828

  
	
   

  	
   

  
	
  If to Agent:

  	
  BNP PARIBAS

  
	
   

  	
  787 Seventh Avenue

  
	
   

  	
  New York, NY 10019

  
	
   

  	
  Attention:

  	
  Project Finance &
  Utilities

  
	
   

  	
  Telephone:

  	
  (212) 841-2000

  
	
   

  	
  Facsimile:

  	
  (212) 841-2146

  
	
   

  	
   

  
	
  If to Assignor:

  	
  Stetson Holdings, LLC

  
	
   

  	
  c/o First Wind Energy,
  LLC

  
	
   

  	
  179 Lincoln Street,
  Suite 500

  
	
   

  	
  Boston, MA 02111

  
	
   

  	
  Attention: General
  Counsel

  
	
   

  	
  Facsimile: 617-960-2889

  

 

All notices or
other communications required or permitted to be given hereunder shall be in
writing and shall be considered as properly given (a) if delivered in
person, (b) if sent by overnight delivery service, (c) in the event
overnight delivery services are not readily available, if mailed by first class
mail, postage prepaid, registered or certified with return receipt requested or
(d) if sent by prepaid telegram, or by telecopy, confirmed by
telephone.  Notice so given shall be
effective upon receipt by the addressee, except that communication or notice so
transmitted by telecopy or other direct written electronic means shall be
deemed to have been validly and effectively given on the day (if a business day
and, if not, on the next following business day) on which it is transmitted if
transmitted before 4 p.m., recipient’s time, and if transmitted after that

 

5

 

time, on the next
following business day; provided, however, that if any notice is tendered to an
addressee and the delivery thereof is refused by such addressee, such notice
shall be effective upon such tender.  Any
party shall have the right to change its address for notice hereunder by giving
of thirty (30) days’ written notice to the other parties in the manner set
forth herein above.

 

5.             Binding Effect; Amendments; Confirmation. 
No termination, amendment, variation or waiver of any provisions of this
Consent shall be effective unless in writing and signed by Contracting Party,
Agent and Assignor; provided that all rights and obligations of Agent hereunder
shall terminate upon payment in full of the obligations of Assignor under the
Financing Agreement without the requirement for any such writing.

 

6.             Governing Law. 
This Consent shall be governed by the laws of the State of New York
without reference to conflicts of laws rules thereof (other than Section 5-1401
of the New York General Obligations Law). 
CONTRACTING PARTY, ASSIGNOR, AND AGENT HEREBY
SUBMIT TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES DISTRICT COURT FOR
THE SOUTHERN DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE COURT SITTING IN
NEW YORK CITY FOR THE PURPOSES OF ALL LEGAL PROCEEDINGS ARISING OUT OF OR
RELATING TO THIS CONSENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.  EACH OF CONTRACTING PARTY, ASSIGNOR AND AGENT
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH
PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING
BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

EACH OF CONTRACTING PARTY, ASSIGNOR AND AGENT
HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL
RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO
THIS CONSENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

7.             Severability. 
Any provision of this Consent which is prohibited or unenforceable in
any jurisdiction shall, as to such jurisdiction, be ineffective to the extent
of such prohibition or unenforceability without invalidating the remaining
provisions hereof, and any such prohibition or unenforceability in any
jurisdiction shall not invalidate or render unenforceable such provision in any
other jurisdiction.

 

8.             Counterparts. 
This Consent may be executed in one or more duplicate counterparts, and
when executed and delivered by all the parties listed below, shall constitute a
single binding agreement.

 

6

 

9.             Interpretation. 
All references in this Consent to any document, instrument or agreement (a) shall
include all contract variations, change orders, exhibits, schedules and other
attachments thereto, and (b) shall include all documents, instruments or
agreements issued or executed in replacement or as predecessor thereto, as
amended, modified and supplemented from time to time and in effect at any given
time.

 

[SIGNATURES FOLLOW]

 

7

 

IN WITNESS
WHEREOF, the undersigned, by its officer thereunto duly authorized, has duly
executed this Consent as of the date first above written.

 

 

	
   

  	
  CONSTELLATION
  ENERGY GROUP, INC.,

  
	
   

  	
  a Maryland corporation

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

	
  Accepted
  and agreed:

  	
   

  
	
   

  	
   

  
	
  BNP
  PARIBAS,

  	
   

  
	
  as
  Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

 

	
  Accepted
  and agreed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Stetson Holdings, LLC,

  	
   

  	
   

  
	
  a Delaware limited liability company 

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:  Evelyn Lim

  	
   

  	
   

  
	
   

  	
  Title:    Secretary

  	
   

  	
   

  

 

Exhibit F-4

 

1

 

EXHIBIT
F-6

to
Financing Agreement

 

FORM OF
CONSENT OF LANDOWNER ESTOPPEL

 

(See Tab      )

 

Exhibit F-6

 

1

 

ESTOPPEL
CERTIFICATE

 

To:                              BNP PARIBAS, as Joint Lead Arranger,
Joint Bookrunner, Administrative Agent for the Lenders, Security Agent for the
Secured Parties and as Issuing Bank; and HSH NORDBANK AG, New York Branch as a
Joint Lead Arranger, Joint Bookrunner, and Co-syndication Agent; and such other
party or parties that may provide financing for the development of the project
(the “Project”) described in the below defined Land Agreement (each such party
a “Lender”);

 

Evergreen Wind Power V,
LLC (“Project Company);

 

Stewart Title Insurance
Company (the “Title Company”)

 

RE:                              Land Lease Agreement dated as of October 12,
2006, between Lakeville Shores, Inc., as Landowner, and Project Company as
amended by that certain First Amendment to Land Lease Agreement dated as of March 30,
2007 and that certain Second Amendment to Land Lease Agreement dated as of August 17,
2007 (collectively, the “Land Agreement”). 
A Memorandum of Lease being filed in the Washington County Registry of
Deeds on October 17, 2008 in Book 3462, Page 292.

 

Each capitalized term
used and not otherwise defined herein shall have the meaning assigned to such
term Land Agreement.

 

Landowner hereby makes
the following consent, and certifies and represents to each of the, Project
Company, Title Company and any Lender, as to the following matters, with the
knowledge that this Estoppel (the “Estoppel”) will be relied upon by the
Project Company with respect to the development of the Project, by the Title
Company in connection with in connection with issuing title insurance
concerning the Land Agreement, and by Lender in making loans to the Project
Company.

 

1.                                       Complete
Agreement.  Attached to this Estoppel as Exhibit A
is a true, complete and correct copy of the Land Agreement and constitutes the
complete agreement between Landowner and Project Company with respect to the
Land Agreement and the property that is subject to the Land Agreement (the “Property”).

 

2.                                       Valid Title. 
Landowner holds fee title to the Property, has all right, title and
interest necessary to grant the Land Agreement and has not sold, assigned or
otherwise encumbered its interest in the Land Agreement.  There are no adverse claims to title to the
Property that would impair Project Company from exercising its rights under the
Land Agreement.  The Land Agreement does
not violate any agreements to which Landowner is a party.

 

3.                                       No Defaults. 
All payments or other charges that are due by Project Company to
Landowner under the Land Agreement have been paid as of the date of this
Estoppel.  Neither Landowner nor Project
Company is in default of any of the terms and provisions 

 

 

of the Land
Agreement nor is there now any fact or condition which, with notice or lapse of
time or both, will become a default by Landowner or Project Company under the
Land Agreement.

 

4.                                       No Claims. 
As of the date of this Estoppel, Landowner has no defenses, offsets,
credits or counterclaims to the enforcement of the Land Agreement.  Landowner has not received any notice from or
on behalf of Project Company of any defenses, offsets, credits or counterclaims
to the enforcement of the Land Agreement.

 

5.                                       No Actions. 
Landowner is not insolvent and has no expectations to file for
bankruptcy or reorganization.  Landowner
has received no notice nor has any knowledge that:

 

(a)                                  Landowner or Project Company is in
violation of any law or regulation applicable to the Property.

 

(b)                                 Any pending eminent domain proceedings or
other government actions or any judicial actions of any kind relating to the
Land Agreement or the Property exist.

 

(c)                                  Any pending or threatened litigation
against Landowner exists, and there are no actions, whether voluntary or otherwise,
pending against Landowner under any bankruptcy, reorganization, arrangement,
moratorium or similar laws.

 

6.                                       Acknowledgment of Lender
as Leasehold Mortgagee. Landowner expressly acknowledges and affirms the
rights of Lender as a Leasehold Mortgagee under Section 19 of the Land
Agreement.  Landowner will provide all
notices of default to Lender at the address

 

BNP Paribas

The Equitable Tower

787 Seventh Avenue

New York, NY 10019

Attention:       General
Counsel

 

The individual executing
this Estoppel on behalf of Landowner represents and warrants that she/he has
the power and the authority to execute this Estoppel on behalf of Landowner.

 

IN WITNESS WHEREOF, the
undersigned has executed this Estoppel as of the [      ] day of [                               ], 2009.

 

 

	
   

  	
  LANDOWNER:

  
	
   

  	
   

  
	
   

  	
  LAKEVILLE SHORES, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

 

Exhibit A

to Land Agreement
Estoppel

 

Land Agreement

 

[To be attached.]

 

 

EXHIBIT
F-7

to
Financing Agreement

 

FORM OF
CONSENT OF CONTRACTING PARTY

 

(See Tab      )

 

 

CONSENT AND AGREEMENT

 

This CONSENT AND AGREEMENT,
dated as of December 22, 2009 (this “Consent”), is entered
into by and among FIRST WIND O&M, LLC, a limited liability company organized and existing under the laws of the state
of Delaware (together with its permitted successors and assigns, “Contracting
Party”), STETSON WIND II, LLC, a Delaware limited liability company (“Assignor”),
and BNP PARIBAS, as Security Agent (“Agent”) for the Secured Parties (as
defined in the Financing Agreement).

 

RECITALS

 

A.                                    In
order to finance the operation of a 57 MW wind energy project and a 25.5
MW wind energy project located in Washington County, Maine (collectively, or
individually, as the case may be, the “Project”), Stetson Holdings, LLC has
entered into that certain Financing Agreement dated as of December 22,
2009 with BNP Paribas, as Joint Lead Arranger, Joint Bookrunner, Administrative
Agent, Issuing Bank and Security Agent for the Secured Parties, and HSH
Nordbank AG, New York Branch, as Joint Lead Arranger, Joint Bookrunner, and
Co-Syndication Agent and certain lenders (“Lenders”) party thereto (the “Financing
Agreement”).  In connection with the
Financing Agreement, Assignor, Stetson Holdings, LLC and Agent have entered
into a Guaranty and Security Agreement (the “Security Agreement”), under
which Assignor has agreed to assign its interest under the Assigned Agreement
(as defined below) to Agent as collateral for certain secured obligations under
the Financing Agreement.

 

B.                                    Contracting
Party and Assignor have entered into that certain Project O&M Agreement,
dated as of December 22, 2009 (as amended, amended and restated,
supplemented or otherwise modified from time to time in accordance with the
terms thereof and hereof, the “Assigned Agreement”).

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the
foregoing, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, and intending to be legally bound,
the parties hereto hereby agree, notwithstanding anything in the Assigned
Agreement to the contrary, as follows:

 

II.                                     ASSIGNMENT AND AGREEMENT

 

A.                                    Consent
to Assignment.

 

Contracting Party consents to the collateral
assignment under the Security Agreement of all of Assignor’s right, title and
interest in, to and under the Assigned Agreement (collectively, the “Assigned
Interest”).  Contracting Party
acknowledges the right of Agent, in the exercise of Agent’s rights and remedies
pursuant to the Security Agreement, to make all demands, give all notices, take
all actions and exercise all rights of Assignor under the Assigned Agreement.

 

 

B.                                    Subsequent
Owner.

 

1.                                       Contracting Party agrees that, if Agent
notifies Contracting Party in writing that, pursuant to the Security Agreement, it has assigned, foreclosed or
sold the Assigned Interests, then (i) Agent or its successor, assignee
and/or designee (a “Subsequent Owner”) shall be substituted for Assignor
under the Assigned Agreement and (ii) Contracting Party shall (1) recognize
Agent or the Subsequent Owner, as the case may be, as its counterparty under
the Assigned Agreement and (2) continue to perform its obligations under
the Assigned Agreement in favor of Agent or the Subsequent Owner, as the case
may be; provided that Agent or such Subsequent Owner, as the case may
be, has assumed in writing all of Assignor’s rights and obligations (including,
without limitation, the obligation to cure any then existing payment and
performance defaults, but excluding any obligation to cure any then existing
performance defaults which by their nature are incapable of being cured) under
the Assigned Agreement.

 

2.                                       Without limiting anything herein, the
warranties provided by Contracting Party under the Assigned Agreement shall
continue in full force and effect (until the expiration of the applicable
warranty periods set forth in the Assigned Agreement) in the event that Agent
or a Subsequent Owner succeeds to Assignor’s right, title and interest in the Assigned Agreement.

 

C.                                    Right
to Cure.

 

If Assignor defaults in the performance of
any of its obligations under the Assigned Agreement, or upon the occurrence or
non-occurrence of any event or condition under the Assigned Agreement which
would immediately or with the passage of any applicable grace period or the
giving of notice, or both, enable Contracting Party to terminate or suspend its
performance under the Assigned Agreement (each hereinafter a “Default”),
Contracting Party shall not terminate or suspend its performance under the
Assigned Agreement until it first gives written notice of such Default to Agent
and affords Agent a period of at least 30 days (this 30 day period, for the
avoidance of doubt, being in addition to any cure period granted to Assignor to
cure such Default under the Assigned Agreement) or if such Default is a
nonmonetary default, a period of 60 days (this 60 day period, for the avoidance
of doubt, being in addition to any cure period granted to Assignor to cure such
Default under the Assigned Agreement) from receipt of such notice to cure such Default.

 

D.                                    Delivery
of Notices.

 

Contracting Party shall deliver notice to
Agent when there is a Default by Assignor under the Assigned Agreement.

 

E.                                      Termination.

 

In the event that
the Assigned Agreement is terminated by rejection, or otherwise, during a case
in which Assignor is the debtor under Title 11, United States Code, or other
similar federal or state statute, then,
in the event
that Agent or its nominee or designee has commenced foreclosure proceedings on
the assets of Assignor, Contracting
Party shall, at the option of Agent and so long as all existing payment
defaults by Assignor under the Assigned Agreement are cured by Agent or its
nominee or designee, enter into a new agreement with Agent or (at the 

 

 

direction of Agent) its
nominee or designee having terms substantially identical to the Assigned
Agreement, pursuant to which Agent or its nominee or designee shall have all of
the rights and obligations of Assignor under the Assigned Agreement.

 

III.                                 REPRESENTATIONS AND
WARRANTIES

 

Each of Contracting Party, Assignor and Agent
hereby represents and warrants as of the date hereof that it is duly organized,
validly existing, and in good standing under the laws of the commonwealth or
state of its organization and is qualified and in good standing in each other
jurisdiction where the failure to so qualify would have a material adverse
effect upon its business or financial condition, and it has all requisite power
and authority to conduct its business, to own its properties and to execute,
deliver and perform its obligations under this Consent.

 

IV.                                MISCELLANEOUS

 

A.                                    Notices.

 

Any communications between the parties hereto
or notices provided herein to be given may be given to the following addresses:

 

	
  If
  to Contracting Party:

  	
   

  	
  If to Assignor:

  
	
   

  	
   

  	
   

  
	
  First Wind O&M, LLC

  	
   

  	
  Stetson Wind II, LLC

  
	
   

  	
   

  	
   

  
	
  c/o First Wind Energy,
  LLC

  	
   

  	
  c/o First Wind Energy,
  LLC

  
	
   

  	
   

  	
   

  
	
  179 Lincoln Street,
  Suite 500

  	
   

  	
  179 Lincoln Street,
  Suite 500

  
	
   

  	
   

  	
   

  
	
  Boston, Massachusetts
  02111

  	
   

  	
  Boston, Massachusetts
  02111

  
	
   

  	
   

  	
   

  
	
  Facsimile: (617) 960-2889

  	
   

  	
  Facsimile: (617)
  960-2889

  
	
   

  	
   

  	
   

  
	
  Attention: Secretary

  	
   

  	
  Attention: Secretary

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  If to Agent:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BNP Paribas

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  787 Seventh Avenue

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  New York, New York
  10019

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Facsimile: (212)
  841-2146

  	
   

  	
   

  

 

 

Attention:  Project Finance & Utilities

 

All notices or other communications required
or permitted to be given hereunder shall be in writing and shall be considered
as properly given (a) if delivered in person, (b) if sent by
overnight delivery service (including Federal Express, UPS, DHL and other
similar overnight delivery services), (c) in the event overnight delivery
services are not readily available, if mailed by first class United States
Mail, postage prepaid, registered or certified with return receipt requested, (d) if
sent by prepaid telegram or by facsimile or (e) if sent by other
electronic means (including electronic mail) confirmed by facsimile or
telephone.  Any party may change its
address for notice hereunder by giving of 30 days’ notice to the other parties
in the manner set forth herein.

 

B.                                    Counterparts.

 

This Consent may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each
of which when so executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument.

 

C.                                    Amendment,
Waiver.

 

Neither this Consent nor any of the terms
hereof may be terminated, amended, supplemented, waived or modified except by
an instrument in writing signed by Contracting Party and Agent.

 

D.                                    Successors
and Assigns.

 

This Consent shall bind and benefit
Contracting Party, Agent, and their respective successors and assigns.

 

E.                                      Further
Assurances.

 

Contracting Party will,
upon the reasonable written request of Collateral Agent, execute and deliver
such further documents and do
such other acts and things necessary to effectuate the purposes of this
Consent.

 

F.                                      Governing
Law.

 

This Consent shall be governed by the laws of
the State of New York without reference to conflicts of laws rules thereof
(other than Section 5-1401 of the New York General Obligations Law).

 

[signatures on the following pages]

 

 

IN WITNESS WHEREOF, the parties hereto, by
their officers duly authorized, intending to be legally bound, have caused this
Consent and Agreement to be duly executed and delivered as of the date first
above written.

 

	
   

  	
  FIRST WIND O&M, LLC, 

  
	
   

  	
  a Delaware limited
  liability company, as Contracting Party

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Elizabeth Weir

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  

 

 

	
   

  	
  STETSON WIND II, LLC, 

  
	
   

  	
  a Delaware limited
  liability company, as Assignor

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Elizabeth Weir

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  

 

 

	
  Accepted
  and Agreed to

  	
   

  
	
   

  	
   

  
	
  BNP
  PARIBAS, 

  	
   

  
	
  as
  Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  

 

Exhibit F-7

 

1

 

EXHIBIT
F-8

to
Financing Agreement

 

FORM OF
CONSENT OF TURBINE SUPPLIER AND TURBINE OPERATOR

 

(See Tab      )

 

 

CONSENT AND AGREEMENT

GENERAL ELECTRIC COMPANY

 

 

This CONSENT AND AGREEMENT (as amended,
modified or supplemented from time to time, this “Consent”), dated as of
December 22, 2009, is executed by GENERAL ELECTRIC COMPANY,
a New York corporation (“GE”), EVERGREEN WIND POWER V,
LLC, a Delaware limited liability company (“EWP” or the “Assignor”),
and BNP PARIBAS, as Security Agent
(“Security Agent”).

 

RECITALS

 

A.                                   Stetson Holdings, LLC (“Borrower”) has
entered into that certain Financing Agreement, dated as of the date hereof (as
amended, amended and restated, supplemented or otherwise modified from time to
time, the “Financing Agreement”) with the financial institutions from time to
time party thereto as lenders, BNP Paribas (“BNPP”) as Joint Lead Arranger,
Joint Bookrunner, Administrative Agent for the Lenders, Security Agent and
Issuing Bank, and HSH Nordbank AG, New York Branch (“HSHN”), as Joint Lead
Arranger, Joint Bookrunner, and Co-Syndication Agent;

 

B.                                     EWP, as assignee of First Wind
Acquisition, LLC (f/k/a UPC Wind Acquisition, LLC) has entered into that
certain Contract for the Sale of Power Generation Equipment and Related
Services, dated as of June 4, 2007, as amended by Scope Change Order Form 01,
dated as of August 14, 2007, as further amended by Scope Change Order Form 02,
dated as of September 7, 2007, as further amended by that certain “In/Out”
letter agreement, dated as of May 28, 2008, as further amended by and as
further amended by Change Order No. A, dated as of July 3, 2008, as further
amended by Stetson External Change Order Proposal No. 03, dated as of June 10,
2008, and as further amended by Stetson External Change Order Proposal No. 04,
dated as of July 22, 2008, as amended by that External Change Order No. 4,
Revision No. 1, dated as of the 8th day of August, 2008, as amended by External
Change Order No. 5, dated as of July 14, 2009 (as amended, modified or
supplemented from time to time, the “Assigned Agreement”) with GE for the
purchase of thirty-eight (38) wind generation turbines and other ancillary
equipment and related services;

 

C.                                     EWP has entered into that certain
Guaranty and Security Agreement, dated as of the date hereof (as amended,
amended and restated, supplemented or otherwise modified from time to time, the
“Security Agreement “) with BNP Paribas as Security Agent;

 

D.                                    As collateral security for all
obligations of Assignor to Security Agent under the Security Agreement and
related documents, Assignor has granted to Security Agent a first-priority
security interest in all of its right, title and interest in, to and under the
Assigned Agreement (the “Assigned Interest”) pursuant to the Security
Agreement; and

 

3

 

E.                                      It is a requirement under the Financing
Agreement that GE and the other parties hereto shall have executed this
Consent.

 

AGREEMENT

 

NOW THEREFORE, the parties hereto hereby
agree as follows:

 

1.                                       Consent and Agreement. 
GE:

 

(a)                                  consents to the assignment as collateral
security to Security Agent, of the Assigned Interest;

 

(b)                                 acknowledges the right (but not the
obligation) of Security Agent in the exercise of its rights and remedies under
the Security Agreement to, upon notice to GE that an Event of Default has
occurred and continuing under the Financing Agreement, make all demands, give
all notices, take all actions and exercise all rights of Assignor under the
Assigned Agreement and agrees to accept any such exercise; provided, however,
that, insofar as Security Agent exercises any of its rights under the Assigned
Agreement or makes any claims with respect to payments or other obligations
under the Assigned Agreement, the terms and conditions of the Assigned
Agreement applicable to such exercise of rights or claims shall apply to
Security Agent to the same extent as to Assignor; provided, further,
that Security Agent or its designee, as the case may be, assumes in writing all
of Assignor’s obligations under the Assigned Agreement, as applicable, and
notifies GE of such assumption;

 

(c)                                  agrees not to (i) cancel or
terminate the Assigned Agreement or suspend performance of its services thereunder,
except as provided in the Assigned Agreement or by operation of law and, in any
event, except as in accordance with Section (e); (ii) consent to or
accept any cancellation or termination of any of the Assigned Agreements by
Assignor without the prior written consent of Security Agent; or (iii) sell,
assign or otherwise dispose (by operation of law or otherwise) of any part of
its right, title or interest in the Assigned Agreement (other than the right to
receive payment thereunder), in each case without the prior written consent of
Security Agent (such consent not to be unreasonably withheld);

 

(d)                                 agrees to promptly deliver to Security
Agent duplicates or copies of all notices of or with respect to default,
suspension or termination delivered under or pursuant to the Assigned
Agreement.

 

2.                                       Assignor’s Acknowledgement. 
Assignor acknowledges and agrees that GE is authorized to perform its
obligations under the Assigned Agreement pursuant to Security Agent’s exercise
of Assignor’s rights in accordance with this Consent, and that GE shall bear no
liability to Assignor in connection therewith.

 

3.                                       Subsequent Transferee.

 

(a)                                  GE agrees that, if Security Agent shall
notify GE in writing that an Event of Default under the Financing Agreement has
occurred and is continuing and that Security Agent has elected to exercise its
rights and remedies pursuant to the Security Agreement with respect to the
foreclosure (whether judicial or nonjudicial) or sale of the Assigned Interest
(or 

 

4

 

any portion thereof), then Security Agent or any other
purchaser, successor, assignee or designee of the Assigned Interest (as the
case may be, in each ease, a “Subsequent Transferee”) shall be
substituted for Assignor under the Assigned Agreement and GE shall (i) recognize
the Subsequent Transferee as its counterparty under the Assigned Agreement and (ii) continue
to perform its obligations under the Assigned Agreement in favor of the
Subsequent Transferee; provided, however, that such Subsequent
Transferee has elected in writing to assume all of such Assignor’s rights and
obligations (including the obligation to cure any then existing payment
defaults within the time permitted in the Assigned Agreement subject to Section (d))
under the Assigned Agreement, and has the ability to perform under the Assigned
Agreement.  The Subsequent Transferee
shall have the right to assign all of its interest in the Assigned Agreement to
any Person, provided such assignee assumes in writing all obligations of the
Subsequent Transferee under the Assigned Agreement, and has the ability to
perform thereunder.  Upon such
assignment, the Subsequent Transferee (including its agents and employees)
shall be released from any further liability thereunder to the extent of its
interest under the Assigned Agreement.

 

(b)                                 Without limiting anything herein, the
warranties provided by GE under the Assigned Agreement shall continue in full
force and effect (until the expiration of the warranty period set forth in the
Assigned Agreement, in accordance with the terms in the Assigned Agreement) for
the benefit of Security Agent or a Subsequent Transferee, as the case may be,
in the event that Security Agent or a Subsequent Transferee succeeds to
Assignor’s right, title and interest in the Assigned Agreement.

 

4.                                       Right to Cure. 
In the event of a default or breach by Assignor in the performance of
any of its obligations under the Assigned Agreement, or upon the occurrence or
non-occurrence of any event or condition under the Assigned Agreement which
would immediately or with the passage of any applicable grace period or the
giving of notice, or both, enable GE to terminate the Assigned Agreement
(hereinafter, a “Default”), GE shall not terminate the Assigned
Agreement until it first gives written notice of such Default to Security Agent
(concurrently with the notice of such Default to Assignor) and affords Security
Agent (a) a period of thirty (30) days from receipt of such notice to cure
such Default if such Default is the failure to pay amounts to GE which are due
and payable under the Assigned Agreement or (b) with respect to any other
Default, a reasonable opportunity, but no more than ninety (90) days from
receipt of such notice, to cure such non-payment Default (provided, that
during such cure period Security Agent or such Assignor continues to perform
Assignor’s other obligations under the Assigned Agreement).  Notwithstanding anything to the contrary
herein, if the Default is peculiar to Assignor and not curable by Security
Agent, such as the insolvency, bankruptcy, general assignment for the benefit
of the Lender, or appointment of a receiver, trustee, custodian or liquidator
of Assignor or its properties, then, notwithstanding any right that GE may have
to terminate the Assigned Agreement, Security Agent shall be entitled to assume
the rights and obligations of Assignor under the Assigned Agreement within the
cure period provided in clause (b) above and provided such assumption
has occurred within such period, GE shall not be entitled to terminate the
Assigned Agreement as a result of such Default. 
If possession of the Turbines is necessary to cure such breach or
Default, and Security Agent or its successor(s), assignee(s) and/or
designee(s) declares an Event of Default under the Financing Agreement and
commences foreclosure proceedings or any other proceedings necessary to take
possession of the Turbines, Security Agent or its successor(s), assignee(s) and/or
designee(s) will be allowed a reasonable period to complete such
proceedings; provided that, once commenced, Security 

 

5

 

Agent or its successor(s), assignee(s) and/or
designee(s) shall pursue such proceedings with due dispatch.  After taking possession of the Turbines,
Security Agent or its successor(s), assignee(s) and/or designee(s) shall
commence curing such breach or Default within fifteen (15) days after having
possession of the Turbines and thereafter diligently pursue such cure to
completion within ninety (90) days after obtaining possession of the Turbines
or such later date, if any, permitted under the terms of the Assigned
Agreement, for the performance of a cure of a breach or Default.  If Security Agent or its successor(s),
assignee(s) and/or designee(s) is prohibited by any court order or
bankruptcy or insolvency proceedings of such Assignor from curing the Default
or from commencing or prosecuting such proceedings, the foregoing time periods
shall be extended by the period of such prohibition.

 

5.                                       Replacement Agreement. 
In the event that the Assigned Agreement is rejected or terminated as a
result of any bankruptcy or insolvency proceeding, or the Assigned Agreement is
terminated for any reason other than a Default which could have been cured by
Security Agent as provided in Section (d), GE shall, at the option of
Security Agent exercised within sixty (60) days after such rejection or
termination, enter into a new agreement with Security Agent having identical
terms as the Assigned Agreement (subject to any conforming changes necessitated
by the passage of time, substitution of parties and other changes as the
parties may mutually agree, the “Replacement Agreement”); provided
that the term under the Replacement Agreement shall be no longer than the
remaining balance of the term specified in the Assigned Agreement.  Security Agent shall have the right to assign
all of its interest in the Replacement Agreement to any Person, provided such
assignee assumes in writing all obligations of Security Agent under the
Replacement Agreement.  Upon such
assignment, Security Agent (including its agents and employees) shall be
released from any further liability thereunder to the extent of its interest
under the Replacement Agreement.

 

6.                                       No Liability. 
GE acknowledges and agrees that Security Agent (nor any successor(s),
assignee(s), designee(s) other representative of Security Agent) shall
have any liability or obligation under the Assigned Agreement as a result of
exercising its rights under this Consent, the Security Agreement or the
Financing Agreement, nor shall Security Agent (nor any successor(s),
assignee(s), designee(s) or other representative of Security Agent), be
obligated or required to perform any of Assignor’s obligations under the
Assigned Agreement or to take any action to collect or enforce any claim for
payment assigned under the Financing Agreement, except during any period in
which such Person has elected to become a Subsequent Transferee pursuant to Section (c) or
counterparty to a Replacement Agreement pursuant to Section (e), in which
case such Subsequent Transferee shall assume all of Assignor’s rights and
obligations under the Assigned Agreement in accordance with Section (c),
or, if such Person is a counterparty to a Replacement Agreement, shall cure any
Defaults for failure to pay amounts owed under the Assigned Agreement but shall
not otherwise be required to perform or be subject to any defenses or offsets
by reason of any of Assignor’s other obligations under the Assigned Agreement
that were unperformed at such time unless expressly agreed to in writing by
such counterparty.  Notwithstanding
anything to the contrary herein, the sole recourse of GE in seeking the
enforcement of any obligations under this Consent, the Assigned Agreement or a
Replacement Agreement shall be to any such Subsequent Transferee’s or
Replacement Agreement counterparty’s right, title and interest in the Turbines.

 

6

 

7.                                       Representations and Warranties. 
GE hereby represents and warrants to Assignor and Security Agent, as of
the date of this Consent that:

 

(a)                                  GE is duly organized, validly existing
and in good standing under the laws of the jurisdiction of its incorporation
and has all requisite power and authority to execute, deliver and perform its
obligations under the Assigned Agreement and this Consent;

 

(b)                                 The execution, delivery and performance
by GE of the Assigned Agreement and this Consent have been duly authorized by
all necessary corporate action, and do not and will not require any further
consents or approvals which have not been obtained, or violate any provision of
any law, regulation, order, judgment, injunction or similar matters or breach
any agreement presently in effect with respect to or binding on GE;

 

(c)                                  All government approvals necessary for
the execution, delivery and performance by GE of its obligations under the
Assigned Agreement have been obtained and are in full force and effect, except
those governmental approvals routinely obtained during the ordinary course of
business;

 

(d)                                 This Consent and the Assigned Agreement
are legal, valid and binding obligations of GE enforceable against GE in
accordance with their respective terms except as may be limited by bankruptcy,
reorganization, insolvency, moratorium and other laws affecting creditors’
rights in general and except to the extent that the availability of equitable
remedies is subject to the discretion of the court before which any proceeding
therefor may be brought;

 

(e)                                  The Assigned Agreement is in full force
and effect and has not been amended, supplemented or modified since the date of
execution of the Assigned Agreement;

 

(f)                                    To the best of GE’s knowledge, Assignor
has fulfilled all of its obligations under the Assigned Agreement, and there
are no breaches, Defaults or unsatisfied conditions presently existing (or
which would exist after the passage of time and/or giving of notice) that would
allow GE to terminate the Assigned Agreement;

 

(g)                                 There are no disputes or legal
proceedings between GE and Assignor;

 

(h)                                 The representations and warranties of GE
contained in the Assigned Agreement are true and correct on the date hereof;
and

 

(i)                                     Except pursuant to this Consent and
except as expressly provided in the Assigned Agreement, GE has not consented to
any pledge, assignment or other transfer of any interest in the Assigned
Agreement.

 

8.                                       Covenants.  Security
Agent shall promptly provide to GE copies of any notices of default issued by
it to Assignor under the Financing Agreement; provided, however,
that any failure by Security Agent to provide any such notice in a timely
manner shall not affect its substantive rights under this Consent.

 

9.                                       Notices.  Any
communications between the parties hereto or notices provided herein to be
given may be given to the following addresses:

 

7

 

	
  If
  to GE:

  	
  General Electric
  Company

  
	
   

  	
  One River Road

  
	
   

  	
  Schenectady, New York
  12345

  
	
   

  	
  Attention: Dylan Davis

  
	
   

  	
  Fax:

  	
  (518) 385-7850

  
	
   

  	
  Attention: Scott
  Stalica

  
	
   

  	
  Fax:

  	
  (518) 385-5128

  
	
   

  	
   

  
	
  If to Security Agent:

  	
  BNP PARIBAS

  
	
   

  	
  787 Seventh Avenue

  
	
   

  	
  New York, NY 10019

  
	
   

  	
  Attention:

  	
  Project Finance &
  Utilities

  
	
   

  	
  Telephone:

  	
  (212) 841-2000

  
	
   

  	
  Facsimile:

  	
  (212) 841-2146

  
	
   

  	
   

  
	
  If to Assignor:

  	
  Evergreen Wind Power V,
  LLC

  
	
   

  	
  c/o First Wind Energy,
  LLC

  
	
   

  	
  179 Lincoln Street
  Suite 500

  
	
   

  	
  Boston MA 02111

  
	
   

  	
  Attention: General
  Counsel

  
	
   

  	
  Fax:

  	
  (617) 960-2889

  
				

 

All notices or
other communications required or permitted to be given hereunder shall be in
writing and shall be considered as properly given (a) if delivered in
person, (b) if sent by overnight delivery service, (c) in the event
overnight delivery services are not readily available, if mailed by first class
mail, postage prepaid, registered or certified with return receipt requested or
(d) if sent by prepaid telegram, or by telecopy confirmed by
telephone.  Notice so given shall be effective
upon receipt by the addressee, except that communication or notice so
transmitted by telecopy or other direct written electronic means shall be
deemed to have been validly and effectively given on the day (if a Business Day
and, if not, on the next following Business Day) on which it is transmitted if
transmitted before 4 p.m., recipient’s time, and if transmitted after that
time, on the next following Business Day; provided, however, that if any
notice is tendered to an addressee and the delivery thereof is refused by such
addressee, such notice shall be effective upon such tender.  Any party shall have the right to change its
address 

 

8

 

for
notice hereunder by giving of thirty (30) days’ written notice to the other
parties in the manner set forth herein above.

 

10.           Binding Effect; Amendments.  This Consent shall be binding upon and
benefit GE, Assignor, Security Agent and the Lenders and their respective
successors, transferees and permitted assigns. 
GE agrees to confirm such continuing obligation in writing upon the
reasonable request of Assignor, Security Agent, the Lenders or any of their
respective successors, transferees or permitted assigns.  No termination, amendment, variation or
waiver of any provisions of this Consent shall be effective unless in writing
and signed by GE, Security Agent, and Assignor; provided that all rights and
obligations of Security Agent and the Lenders hereunder shall terminate upon
payment in full of the obligations of Assignor under the Security Agreement
without the requirement for any such writing.

 

11.           Governing Law.  This Consent shall be governed by the laws of
the State of New York without reference to conflicts of laws rules thereof
(other than Section 5-1401 of the New York General Obligations Law).  GE, ASSIGNOR AND SECURITY
AGENT HEREBY SUBMIT TO THE NONEXCLUSIVE JURISDICTION OF THE UNITED STATES
DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK AND OF ANY NEW YORK STATE
COURT SITTING IN NEW YORK CITY FOR THE PURPOSES OF ALL LEGAL PROCEEDINGS
ARISING OUT OF OR RELATING TO THIS CONSENT OR THE TRANSACTIONS CONTEMPLATED
HEREBY.  EACH OF THE PARTIES HERETO
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION WHICH
IT MAY NOW OR HEREAFTER HAVE TO THE LAYING OF THE VENUE OF ANY SUCH
PROCEEDING BROUGHT IN SUCH A COURT AND ANY CLAIM THAT ANY SUCH PROCEEDING
BROUGHT IN SUCH A COURT HAS BEEN BROUGHT IN AN INCONVENIENT FORUM.

 

EACH OF THE PARTIES HERETO HEREBY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY AND ALL RIGHT
TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS
CONSENT OR THE TRANSACTIONS CONTEMPLATED HEREBY.

 

12.           Severability.  Any provision of this Consent which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

13.           Counterparts.  This Consent may be executed in one or more
duplicate counterparts, and when executed and delivered by all the parties
listed below, shall constitute a single binding agreement.

 

14.           Interpretation.  All references in this Consent to any
document, instrument or agreement (a) shall include all contract
variations, change orders, exhibits, schedules and other attachments thereto, (b) shall
include all documents, instruments or agreements issued or 

 

9

 

executed in replacement or predecessor thereto, as
amended, modified and supplemented from time to time and in effect at any given
time.

 

[SIGNATURES
FOLLOW]

 

10

 

IN WITNESS WHEREOF, the undersigned by its
officer thereunto duly authorized, has duly executed this CONSENT AND AGREEMENT
as of the date first above written.

 

	
   

  	
  GENERAL ELECTRIC COMPANY,

  
	
   

  	
   

  
	
   

  	
  a New York corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  

 

 

	
  Accepted
  and agreed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BNP PARIBAS,

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  as Security Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  

 

 

	
  Accepted
  and agreed:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  EVERGREEN WIND POWER V, LLC,

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  a Delaware limited
  liability company

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name: Evelyn Lim

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Title: Secretary

  	
   

  	
   

  
				

 

Exhibit F-8

 

1

 

EXHIBIT
F-9

to
Financing Agreement

 

[Reserved]

 

Exhibit F-9

 

 

EXHIBIT F-10

to Financing Agreement

 

FORM OF CONSENT OF OPERATOR

 

(See Tab      )

 

Exhibit F-10

 

1

 

CONSENT AND AGREEMENT

 

This CONSENT AND AGREEMENT,
dated as of December 22, 2009 (this “Consent”), is entered
into by and among FIRST WIND O&M, LLC, a limited liability company organized and existing under the laws of the
state of Delaware (together with its permitted successors and assigns, “Contracting
Party”), EVERGREEN WIND POWER V, LLC, a Delaware limited liability company
(“Assignor”), and BNP PARIBAS, as Security Agent (“Agent”) for
the Secured Parties (as defined in the Financing Agreement).

 

RECITALS

 

A.            In
order to finance the operation of a 57 MW wind energy project and a 25.5
MW wind energy project located in Washington County, Maine (collectively, or
individually, as the case may be, the “Project”), Stetson Holdings, LLC has
entered into that certain Financing Agreement dated as of December 22,
2009 with BNP Paribas, as Joint Lead Arranger, Joint Bookrunner, Administrative
Agent, Issuing Bank and Security Agent for the Secured Parties, and HSH
Nordbank AG, New York Branch, as Joint Lead Arranger, Joint Bookrunner, and Co-Syndication
Agent and certain lenders (“Lenders”) party thereto (the “Financing Agreement”).  In connection with the Financing Agreement,
Assignor, Stetson Holdings, LLC and Agent have entered into a Guaranty and
Security Agreement (the “Security Agreement”), under which Assignor has
agreed to assign its interest under the Assigned Agreement (as defined below)
to Agent as collateral for certain secured obligations under the Financing
Agreement.

 

B.            Contracting
Party and Assignor have entered into that certain Project O&M Agreement,
dated as of November 17, 2008 (as amended, amended and restated,
supplemented or otherwise modified from time to time in accordance with the
terms thereof and hereof, the “Assigned Agreement”).

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the
foregoing, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, and intending to be legally bound,
the parties hereto hereby agree, notwithstanding anything in the Assigned
Agreement to the contrary, as follows:

 

II.                                     ASSIGNMENT
AND AGREEMENT

 

A.            Consent to Assignment.

 

Contracting Party consents to the collateral
assignment under the Security Agreement of all of Assignor’s right, title and
interest in, to and under the Assigned Agreement (collectively, the “Assigned
Interest”).  Contracting Party
acknowledges the right of Agent, in the exercise of Agent’s rights and remedies
pursuant to the Security Agreement, to make all demands, give all notices, take
all actions and exercise all rights of Assignor under the Assigned Agreement.

 

Consent
to Collateral Assignment (EWP Project O&M Agreement)

Stetson

 

 

B.            Subsequent Owner.

 

1.             Contracting
Party agrees that, if Agent notifies Contracting Party in writing that,
pursuant to the Security Agreement, it has assigned, foreclosed or sold the
Assigned Interests, then (i) Agent or its successor, assignee and/or
designee (a “Subsequent Owner”) shall be substituted for Assignor under
the Assigned Agreement and (ii) Contracting Party shall (1) recognize
Agent or the Subsequent Owner, as the case may be, as its counterparty under
the Assigned Agreement and (2) continue to perform its obligations under
the Assigned Agreement in favor of Agent or the Subsequent Owner, as the case
may be; provided that Agent or such Subsequent Owner, as the case may
be, has assumed in writing all of Assignor’s rights and obligations (including,
without limitation, the obligation to cure any then existing payment and
performance defaults, but excluding any obligation to cure any then existing
performance defaults which by their nature are incapable of being cured) under
the Assigned Agreement.

 

2.             Without
limiting anything herein, the warranties provided by Contracting Party under
the Assigned Agreement shall continue in full force and effect (until the
expiration of the applicable warranty periods set forth in the Assigned
Agreement) in the event that Agent or a Subsequent Owner succeeds to Assignor’s
right, title and interest in the
Assigned Agreement.

 

C.            Right to Cure.

 

If Assignor defaults in the performance of
any of its obligations under the Assigned Agreement, or upon the occurrence or
non-occurrence of any event or condition under the Assigned Agreement which
would immediately or with the passage of any applicable grace period or the
giving of notice, or both, enable Contracting Party to terminate or suspend its
performance under the Assigned Agreement (each hereinafter a “Default”),
Contracting Party shall not terminate or suspend its performance under the
Assigned Agreement until it first gives written notice of such Default to Agent
and affords Agent a period of at least 30 days (this 30 day period, for the
avoidance of doubt, being in addition to any cure period granted to Assignor to
cure such Default under the Assigned Agreement) or if such Default is a
nonmonetary default, a period of 60 days (this 60 day period, for the avoidance
of doubt, being in addition to any cure period granted to Assignor to cure such
Default under the Assigned Agreement) from receipt of such notice to cure such
Default.

 

D.            Delivery of Notices.

 

Contracting Party shall deliver notice to
Agent when there is a Default by Assignor under the Assigned Agreement.

 

E.             Termination.

 

In the event that
the Assigned Agreement is terminated by rejection, or otherwise, during a case
in which Assignor is the debtor under Title 11, United States Code, or other
similar federal or state statute, then,
in the event
that Agent or its nominee or designee has commenced foreclosure proceedings on
the assets of Assignor, Contracting
Party shall, at the option of Agent and so long as all existing payment
defaults by Assignor under the Assigned Agreement are cured by Agent or its
nominee or designee, enter into a new agreement with Agent or (at the 

 

 

direction of Agent) its
nominee or designee having terms substantially identical to the Assigned Agreement,
pursuant to which Agent or its nominee or designee shall have all of the rights
and obligations of Assignor under the Assigned Agreement.

 

III.                                 REPRESENTATIONS
AND WARRANTIES

 

Each of Contracting Party, Assignor and Agent
hereby represents and warrants as of the date hereof that it is duly organized,
validly existing, and in good standing under the laws of the commonwealth or
state of its organization and is qualified and in good standing in each other
jurisdiction where the failure to so qualify would have a material adverse
effect upon its business or financial condition, and it has all requisite power
and authority to conduct its business, to own its properties and to execute,
deliver and perform its obligations under this Consent.

 

IV.                                MISCELLANEOUS

 

A.            Notices.

 

Any communications between the parties hereto
or notices provided herein to be given may be given to the following addresses:

 

	
  If to Contracting
  Party:

  	
  If
  to Assignor:

  
	
   

  	
   

  
	
  First
  Wind O&M, LLC

  	
  Evergreen
  Wind Power V, LLC

  
	
  c/o
  First Wind Energy, LLC

  	
  c/o
  First Wind Energy, LLC

  
	
  179
  Lincoln Street, Suite 500

  	
  179
  Lincoln Street, Suite 500

  
	
  Boston,
  Massachusetts 02111

  	
  Boston,
  Massachusetts 02111

  
	
  Facsimile:
  (617) 960-2889

  	
  Facsimile:
  (617) 960-2889

  
	
  Attention:
  Secretary

  	
  Attention:
  Secretary

  
	
   

  	
   

  
	
  If
  to Agent:

  	
   

  
	
   

  	
   

  
	
  BNP
  Paribas

  	
   

  
	
  787
  Seventh Avenue

  	
   

  
	
  New
  York, New York 10019

  	
   

  
	
  Facsimile:
  (212) 841-2146

  	
   

  
	
  Attention: Project Finance & Utilities

  	
   

  

 

All notices or other communications required
or permitted to be given hereunder shall be in writing and shall be considered
as properly given (a) if delivered in person, (b) if sent by
overnight delivery service (including Federal Express, UPS, DHL and other
similar overnight delivery services), (c) in the event overnight delivery
services are not readily available, if mailed by first class United States
Mail, postage prepaid, registered or certified with return receipt requested, (d) if
sent by prepaid telegram or by facsimile or (e) if sent by other
electronic means (including electronic mail) confirmed by facsimile or
telephone.  Any party may change its
address for notice hereunder by giving of 30 days’ notice to the other parties
in the manner set forth herein.

 

 

B.            Counterparts.

 

This Consent may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each
of which when so executed and delivered shall be an original, but all of which
shall together constitute one and the same instrument.

 

C.            Amendment, Waiver.

 

Neither this Consent nor any of the terms
hereof may be terminated, amended, supplemented, waived or modified except by
an instrument in writing signed by Contracting Party and Agent.

 

D.            Successors and Assigns.

 

This Consent shall bind and benefit
Contracting Party, Agent, and their respective successors and assigns.

 

E.             Further Assurances.

 

Contracting Party will,
upon the reasonable written request of Collateral Agent, execute and deliver
such further documents and do
such other acts and things necessary to effectuate the purposes of this
Consent.

 

F.             Governing Law.

 

This Consent shall be governed by the laws of
the State of New York without reference to conflicts of laws rules thereof
(other than Section 5-1401 of the New York General Obligations Law).

 

 

[signatures
on the following pages]

 

 

IN WITNESS WHEREOF, the parties hereto, by
their officers duly authorized, intending to be legally bound, have caused this
Consent and Agreement to be duly executed and delivered as of the date first
above written.

 

 

	
   

  	
  FIRST
  WIND O&M, LLC,

  
	
   

  	
  a
  Delaware limited liability company, as Contracting Party

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Elizabeth
  Weir

  
	
   

  	
  Title:

  	
  Assistant
  Secretary

  

 

 

	
   

  	
  EVERGREEN
  WIND POWER V, LLC,

  
	
   

  	
  a
  Delaware limited liability company, as Assignor

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
  Evelyn
  Lim

  
	
   

  	
  Title:

  	
  Secretary

  

 

 

	
  Accepted and Agreed to

  	
   

  
	
   

  	
   

  
	
  BNP PARIBAS,

  	
   

  
	
  as Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

EXHIBIT F-11

to Financing Agreement

 

FORM OF SHARED FACILITIES CONSENT

 

(See Tab      )

 

Exhibit F-11

 

1

 

This CONSENT AND AGREEMENT, dated as of December 22, 2009
(this “Consent”), is entered into by and among EVERGREEN WIND POWER V,
LLC (“EWP V”), a Delaware limited liability company and STETSON
WIND II, LLC (“SW II”), a Delaware limited liability company, and BNP
PARIBAS, as Security Agent (“Agent”) for the Secured Parties (as defined
in the Financing Agreement).

 

RECITALS

 

A.            In
order to finance the operation of a 57 MW wind energy project and a 25.5
MW wind energy project located in Washington County, Maine (collectively, or
individually, as the case may be, the “Project”), Stetson Holdings, LLC has
entered into that certain Financing Agreement dated as of December 22,
2009 with BNP Paribas, as Joint Lead Arranger, Joint Bookrunner, Administrative
Agent, Issuing Bank and Security Agent for the Secured Parties, and HSH
Nordbank AG, New York Branch, as Joint Lead Arranger, Joint Bookrunner, and
Co-Syndication Agent and certain lenders (“Lenders”) party thereto (the “Financing
Agreement”).  Each of EWP V and SW II
and Agent have also entered into a guaranty and security agreement in
connection with the Financing Agreement (each, a “Guaranty and  Security
Agreement”; and collectively, the “Guaranty and Security Agreements”)),
under which each of EWP V and SW II has agreed to assign its interest (each, in
such capacity, an “Assignor”) under the Assigned Agreement (as defined
below) to Agent as collateral for certain secured obligations under the
Financing Agreement.

 

B.            EWP
V and SW II (each, in such capacity, a “Contracting Party”) have entered
into that certain Shared Facilities Agreement, dated as of December 22, 2009 (as
amended, amended and restated, supplemented or otherwise modified from time to
time in accordance with the terms thereof and hereof,  the
“Assigned Agreement”).

 

AGREEMENT

 

NOW, THEREFORE, in consideration of the
foregoing, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, and intending to be legally bound,
the parties hereto hereby agree, notwithstanding anything in the Assigned
Agreement to the contrary, as follows:

 

I.                                         ASSIGNMENT
AND AGREEMENT.

 

A.            Consent
to Assignment.

 

1.             EWP
V consents to the collateral assignment under the Guaranty and Security
Agreement of all of SW II’s right, title and interest in, to and under the
Assigned Agreement (collectively, the “Assigned Interests”).  EWP V acknowledges the right of Agent, in the
exercise of Agent’s rights and remedies pursuant to the Guaranty and Security Agreement,
to make all demands, give all notices, take all actions and exercise all rights
of SW II under the Assigned Agreement.

 

2.             SW II consents
to the collateral assignment under the Guaranty and Security Agreement of all
of EWP V’s right, title and interest in, to and under the Assigned Agreement
(collectively, the “Assigned Interests”).  SW II acknowledges the right of Agent, in the
exercise 

 

Consent
to Collateral Assignment (Shared Facilities Agreement)

Stetson
Financing

 

 

of Agent’s rights and
remedies pursuant to the Guaranty and Security Agreement, to make all demands,
give all notices, take all actions and exercise all rights of EWP V under the
Assigned Agreement.

 

B.            Subsequent
Owner.

 

1.             Each
Contracting Party agrees that, if Agent notifies such Contracting Party in
writing that, pursuant to the Guaranty and Security Agreements, it has assigned,
foreclosed or sold the Assigned Interests, then (i) Agent or its
successor, assignee and/or designee (a “Subsequent Owner”) shall be
substituted for such Assignor under the Assigned Agreement and (ii) such
Contracting Party shall (1) recognize Agent or the Subsequent Owner, as
the case may be, as its counterparty under the Assigned Agreement and (2) continue
to perform its obligations under the Assigned Agreement in favor of Agent or
the Subsequent Owner, as the case may be; provided that Agent or such
Subsequent Owner, as the case may be, has assumed in writing all of such
Assignor’s rights and obligations (including, without limitation, the
obligation to cure any then existing payment and performance defaults, but
excluding any obligation to cure any then existing performance defaults which
by their nature are incapable of being cured) under the Assigned Agreement.

 

2.             Without
limiting anything herein, the warranties provided by such Contracting Party
under the Assigned Agreement shall continue in full force and effect (until the
expiration of the applicable warranty periods set forth in the Assigned
Agreement) in the event that Agent or a Subsequent Owner succeeds to such
Assignor’s right, title and interest in the
Assigned Agreement.

 

C.            Right
to Cure.  If any Assignor defaults in the performance
of any of its obligations under the Assigned Agreement, or upon the occurrence or non-occurrence of any event or
condition under the Assigned Agreement which would immediately or with the
passage of any applicable grace period or the giving of notice, or both, enable
such Contracting Party to terminate or suspend its performance under the
Assigned Agreement (each hereinafter a “Default”), such Contracting Party shall
not terminate or suspend its performance under the Assigned Agreement until it
first gives written notice of such Default to Agent and affords Agent a period
of at least 30 days (this 30 day period, for the avoidance of doubt, being in
addition to any cure period granted to such Assignor to cure such Default under
the Assigned Agreement) or if such Default is a nonmonetary default, a period
of 60 days (this 60 day period, for the avoidance of doubt, being in addition
to any cure period granted to such Assignor to cure such Default under the
Assigned Agreement) from receipt of such notice to cure such Default.

 

D.            Delivery
of Notices.  Each Contracting Party shall deliver notice to Agent when there
is a Default by any Assignor under the Assigned Agreement.

 

E.             Termination.  In  the
event that the Assigned Agreement is terminated by rejection, or otherwise,
during a case in which any Assignor is the debtor under Title 11, United States
Code, or other similar federal or state statute, then, in the event that Agent or its nominee or designee has commenced
foreclosure proceedings on the assets of such Assignor, such Contracting Party shall, at the
option of Agent and so long as all existing payment defaults by such Assignor
under the Assigned Agreement are cured by Agent or its nominee or designee, 

 

 

enter into a new agreement with Agent or (at the
direction of Agent) its nominee or designee having terms substantially
identical to the Assigned Agreement, pursuant to which Agent or its nominee or
designee shall have all of the rights and obligations of such Assignor under
the Assigned Agreement.

 

II.                                     REPRESENTATIONS
AND WARRANTIES

 

Each Contracting Party, each Assignor and
Agent hereby represents and warrants as of the date hereof that it is duly
organized, validly existing, and in good standing under the laws of the
commonwealth or state of its organization and is qualified and in good standing
in each other jurisdiction where the failure to so qualify would have a
material adverse effect upon its business or financial condition, and it has
all requisite power and authority to conduct its business, to own its
properties and to execute, deliver and perform its obligations under this
Consent.

 

III.                                 MISCELLANEOUS.

 

A.            Notices. 
Any communications between the parties hereto or notices provided herein
to be given may be given to the following addresses:

 

	
  If to Contracting
  Parties:

  	
  If
  to Assignors:

  
	
   

  	
   

  
	
  Evergreen
  Wind Power V, LLC

  	
  Evergreen
  Wind Power V, LLC

  
	
  Stetson
  Wind II, LLC

  	
  Stetson
  Wind II, LLC

  
	
  c/o
  First Wind Energy, LLC

  	
  c/o
  First Wind Energy, LLC

  
	
  179
  Lincoln Street, Suite 500

  	
  179
  Lincoln Street, Suite 500

  
	
  Boston,
  Massachusetts 02111

  	
  Boston,
  Massachusetts 02111

  
	
  Facsimile:
  (617) 960-2889

  	
  Facsimile:
  (617) 960-2889

  
	
  Attention:
  Secretary

  	
  Attention:
  Secretary

  
	
   

  	
   

  
	
  If
  to Agent:

  	
   

  
	
   

  	
   

  
	
  BNP
  Paribas

  	
   

  
	
  787
  Seventh Avenue

  	
   

  
	
  New
  York, New York 10019

  	
   

  
	
  Facsimile:
  (212) 841-2146

  	
   

  
	
  Attention: Project Finance & Utilities

  	
   

  

 

All notices or other communications required
or permitted to be given hereunder shall be in writing and shall be considered as properly
given (a) if delivered in person, (b) if sent by overnight delivery
service (including Federal Express, UPS, DHL and other similar overnight
delivery services), (c) in the event overnight delivery services are not
readily available, if mailed by first class United States Mail, postage
prepaid, registered or certified with return receipt requested, (d) if
sent by prepaid telegram or by facsimile or (e) if sent by other
electronic means (including electronic mail) confirmed by facsimile or
telephone.  Any party may change its
address for notice hereunder by giving of 30 days’ notice to the other parties
in the manner set forth herein.

 

 

B.            Counterparts. 
This Consent may be executed in any number of counterparts and by the
different parties hereto on separate counterparts, each of which when so
executed and delivered shall be an original, but all of which shall together
constitute one and the same instrument.

 

C.            Amendment,
Waiver.  Neither this Consent nor any of the terms hereof may
be terminated, amended, supplemented, waived or modified except by an
instrument in writing signed by each Contracting Party and Agent.

 

D.            Successors
and Assigns.  This Consent shall
bind and benefit each Contracting Party, Agent, and their respective successors
and assigns.

 

E.             Further Assurances.  Each Contracting Party will, upon the
reasonable written request of Collateral Agent, execute and deliver such
further documents and do such other acts and things necessary to effectuate the
purposes of this Consent.

 

F.             Governing
Law.  This Consent shall be governed by the laws of
the State of New York without reference to conflicts of laws rules thereof
(other than Section 5-1401 of the New York General Obligations Law).

 

[signatures
on the following pages]

 

 

IN WITNESS WHEREOF, the parties hereto, by
their officers duly authorized, intending to be legally bound, have caused this
Consent and Agreement to be duly executed and delivered as of the date first
above written.

 

	
   

  	
  EVERGREEN
  WIND POWER V, LLC, a

  
	
   

  	
  Delaware
  limited liability company, as an Assignor 

  and a Contracting Party

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:
   Evelyn Lim

  
	
   

  	
   

  	
  Title:
   Secretary

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  STETSON
  WIND II, LLC, a Delaware limited 

  liability company, as an Assignor and a Contracting 

  Party

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:  Elizabeth Weir

  
	
   

  	
   

  	
  Title:    Assistant Secretary

  

 

 

	
  Accepted and Agreed to

  	
   

  
	
   

  	
   

  
	
  BNP PARIBAS, as Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

 

EXHIBIT F-12

 

to Financing Agreement

 

FORM OF PROJECT ADMINISTRATION AGREEMENT CONSENT

 

(See Tab      )

 

Exhibit F-12

 

2

 

CONSENT AND AGREEMENT

 

This
CONSENT AND AGREEMENT, dated as of December 22, 2009 (this “Consent”),
is entered into by and among FIRST WIND ENERGY, LLC, a Delaware limited liability company (together
with its permitted successors and assigns, “Contracting Party”), EVERGREEN
WIND POWER V, LLC, a Delaware limited liability company (“Assignor”),
and BNP PARIBAS, as Security Agent (“Agent”) for the Secured Parties (as
defined in the Financing Agreement).

 

RECITALS

 

A.            In order to finance the operation of
a 57 MW wind energy project and a 25.5 MW wind energy project located in
Washington County, Maine (collectively, or individually, as the case may be,
the “Project”), Stetson Holdings, LLC has entered into that certain
Financing Agreement dated as of December 22, 2009 with BNP Paribas, as
Joint Lead Arranger, Joint Bookrunner, Administrative Agent, Issuing Bank and
Security Agent for the Secured Parties, and HSH Nordbank AG, New York Branch, as
Joint Lead Arranger, Joint Bookrunner, and Co-Syndication Agent and certain
lenders (“Lenders”) party thereto (the “Financing Agreement”).  In connection with the Financing Agreement, Assignor,
Stetson Holdings, LLC and Agent have entered into a Guaranty and Security
Agreement (the “Security Agreement”), under which Assignor has agreed to
assign its interest under the Assigned Agreement (as defined below) to Agent as
collateral for certain secured obligations under the Financing Agreement.

 

B.            Contracting Party and Assignor have
entered into that certain Management Services Agreement, dated as of July 17,
2009 (as amended, amended and restated, supplemented or otherwise modified from
time to time in accordance with the terms thereof and hereof,  the “Assigned Agreement”).

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, and
intending to be legally bound, the parties hereto hereby agree, notwithstanding
anything in the Assigned Agreement to the contrary, as follows:

 

I.              ASSIGNMENT
AND AGREEMENT

 

A.            Consent
to Assignment.

 

Contracting
Party consents to the collateral assignment under the Security Agreement of all
of Assignor’s right, title and interest in, to and under the Assigned Agreement
(collectively, the “Assigned Interests”).  Contracting Party acknowledges the right of
Agent, in the exercise of Agent’s rights and remedies pursuant to the Security
Agreement, to make all demands, give all notices, take all actions and exercise
all rights of Assignor under the Assigned Agreement.

 

Consent
to Collateral Assignment (EWP Project Administration Agreement)

Stetson
Financing

 

 

B.            Subsequent Owner.

 

1.             Contracting
Party agrees that, if Agent notifies Contracting Party in writing that,
pursuant to the Security Agreement, it has assigned, foreclosed or sold the
Assigned Interests, then (i) Agent or its successor, assignee and/or
designee (a “Subsequent Owner”) shall be substituted for Assignor under
the Assigned Agreement and (ii) Contracting Party shall (1) recognize
Agent or the Subsequent Owner, as the case may be, as its counterparty under
the Assigned Agreement and (2) continue to perform its obligations under
the Assigned Agreement in favor of Agent or the Subsequent Owner, as the case
may be; provided that Agent or such Subsequent Owner, as the case may
be, has assumed in writing all of Assignor’s rights and obligations (including,
without limitation, the obligation to cure any then existing payment and
performance defaults, but excluding any obligation to cure any then existing
performance defaults which by their nature are incapable of being cured) under
the Assigned Agreement.

 

2.             Without
limiting anything herein, the warranties provided by Contracting Party under
the Assigned Agreement shall continue in full force and effect (until the
expiration of the applicable warranty periods set forth in the Assigned
Agreement) in the event that Agent or a Subsequent Owner succeeds to Assignor’s
right, title and interest in the
Assigned Agreement.

 

C.            Right
to Cure.

 

If Assignor defaults in the performance of any of its
obligations under the Assigned Agreement, or upon the occurrence or
non-occurrence of any event or condition under the Assigned Agreement which
would immediately or with the passage of any applicable grace period or the
giving of notice, or both, enable Contracting Party to terminate or suspend its
performance under the Assigned Agreement (each hereinafter a “Default”),
Contracting Party shall not terminate or suspend its performance under the
Assigned Agreement until it first gives written notice of such Default to Agent
and affords Agent a period of at least 30 days (this 30 day period, for the
avoidance of doubt, being in addition to any cure period granted to Assignor to
cure such Default under the Assigned Agreement) or if such Default is a
nonmonetary default, a period of 60 days (this 60 day period, for the avoidance
of doubt, being in addition to any cure period granted to Assignor to cure such
Default under the Assigned Agreement) from receipt of such notice to cure such
Default.

 

D.            Delivery
of Notices.

 

Contracting
Party shall deliver notice to Agent when there is a Default by Assignor under
the Assigned Agreement.

 

E.             Termination.

 

In the
event that the Assigned Agreement is terminated by rejection, or otherwise,
during a case in which Assignor is the debtor under Title 11, United States
Code, or other similar federal or state statute, then Assignor, Contracting
Party shall, at the option of Agent and so long as all existing payment
defaults by Assignor under the Assigned Agreement are cured by Agent or its
nominee or designee, enter into a new agreement with Agent or (at the direction
of Agent) its nominee or designee having terms substantially identical to the
Assigned Agreement, 

 

2

 

pursuant to which Agent or its nominee or designee
shall have all of the rights and obligations of Assignor under the Assigned
Agreement.

 

II.            REPRESENTATIONS
AND WARRANTIES AND CERTAIN COVENANTS

 

1.             Each
of Contracting Party, Assignor and Agent hereby represents and warrants as of
the date hereof that it is duly organized, validly existing, and in good
standing under the laws of the commonwealth or state of its organization and is
qualified and in good standing in each other jurisdiction where the failure to
so qualify would have a material adverse effect upon its business or financial
condition, and it has all requisite power and authority to conduct its
business, to own its properties and to execute, deliver and perform its
obligations under this Consent.

 

2.             Further,
Contracting Party hereby represents and warrants, as of the date hereof, that (a) to
Contracting Party’s knowledge, Assignor has fulfilled all of its material
obligations under the Assigned Agreement, and there are no breaches, defaults
or unsatisfied conditions presently existing (or which would exist after the
passage of time and/or giving of notice) that would allow Contracting Party to
terminate the Assigned Agreement and (b) Contracting Party has not filed
or threatened any legal proceedings or claims against Assignor.

 

3.             Further,
Contracting Party hereby represents and warrants that it has received a copy of
the Financing Agreement and acknowledges the limitations imposed therein with
respect to the performance of its obligations under the Assigned Agreement.  Each of the Contracting Party and the
Assignor hereby acknowledge and agree that the Contracting Party will perform
its obligations under the Assigned Agreement in accordance with the
restrictions set forth in the Financing Agreement.

 

III.           PAYMENTS
UNDER THE ASSIGNED AGREEMENT

 

Contracting
Party shall pay all amounts (if any) payable by it under the Assigned Agreement
to Assignor in the manner and as and when required by the Assigned Agreement
directly into the account specified from time to time by Agent to Contracting
Party in writing.  Notwithstanding the
foregoing, if any entity or person has become a Subsequent Owner pursuant to
the terms hereof, then Contracting Party shall pay all such amounts directly to
an account designated by Subsequent Owner.

 

3

 

IV.           MISCELLANEOUS

 

A.            Notices.

 

Any communications
between the parties hereto or notices provided herein to be given may be given
to the following addresses:

 

	
  If
  to Contracting Party:

  First
  Wind Energy, LLC

  179 Lincoln Street, Suite 500

  Boston, Massachusetts 02111

  Facsimile: (617) 960-2889

  Attention: Secretary

  	
   

  	
  If
  to Assignor:

  Evergreen
  Wind Power V, LLC

  c/o First Wind Energy, LLC

  179 Lincoln Street, Suite 500

  Boston, Massachusetts 02111

  Facsimile: (617) 960-2889

  Attention: Secretary

  

 

If to Agent:

 

BNP Paribas

787 Seventh Avenue

New York, NY 
10019

Telephone:  (212) 841-2000

Facsimile:   (212) 841-2146

Attention:   Project Finance &
Utilities

 

All
notices or other communications required or permitted to be given hereunder
shall be in writing and shall be considered as properly given (a) if
delivered in person, (b) if sent by overnight delivery service (including
Federal Express, UPS, DHL and other similar overnight delivery services), (c) in
the event overnight delivery services are not readily available, if mailed by
first class United States Mail, postage prepaid, registered or certified with
return receipt requested, (d) if sent by prepaid telegram or by facsimile
or (e) if sent by other electronic means (including electronic mail)
confirmed by facsimile or telephone.  Any
party may change its address for notice hereunder by giving of 30 days’ notice
to the other parties in the manner set forth herein.

 

B.            Counterparts.

 

This
Consent may be executed in any number of counterparts and by the different
parties hereto on separate counterparts, each of which when so executed and
delivered shall be an original, but all of which shall together constitute one
and the same instrument.

 

C.            Amendment,
Waiver.

 

Neither
this Consent nor any of the terms hereof may be terminated, amended,
supplemented, waived or modified except by an instrument in writing signed by
Contracting Party and Agent.

 

4

 

D.            Successors
and Assigns.

 

This
Consent shall bind and benefit Contracting Party, Agent, and their respective
successors and assigns.

 

E.             Further Assurances.

 

Contracting Party will, upon the reasonable written request
of Agent, execute and deliver such further documents and
do such other acts and things necessary to effectuate the purposes of this
Consent.

 

F.             Governing
Law.

 

This
Consent shall be governed by the laws of the State of New York without
reference to conflicts of laws rules thereof (other than Sections 5-1401
and 5-1402 of the New York General Obligations Law).

 

[Signature pages follow]

 

5

 

IN
WITNESS WHEREOF, the parties hereto, by their officers duly authorized,
intending to be legally bound, have caused this Consent and Agreement to be
duly executed and delivered as of the date first above written.

 

	
   

  	
  FIRST
  WIND ENERGY, LLC,

  
	
   

  	
  a
  Delaware limited liability company,

  
	
   

  	
   

  
	
   

  	
  as
  Contracting Party

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Elizabeth
  Weir

  
	
   

  	
   

  	
  Title:

  	
  Assistant Secretary

  

 

 

	
   

  	
  EVERGREEN
  WIND POWER V, LLC,

  
	
   

  	
  a
  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:
  

  	
  Evelyn
  Lim

  
	
   

  	
   

  	
  Title:
  

  	
  Secretary

  
	
   

  	
   

  	
   

  	
   

  

 

 

	
  Accepted and Agreed to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  BNP PARIBAS, as Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

 

EXHIBIT
G-1

to
Financing Agreement

 

FORM OF
BORROWER’S CLOSING CERTIFICATE

 

Stetson
Holdings, LLC

 

OFFICER’S
CERTIFICATE

 

December       ,
2009

 

THIS OFFICER’S
CERTIFICATE is delivered pursuant to the terms of that certain Financing
Agreement, dated as of December       , 2009
(as amended, modified or supplemented from time to time, the “Financing
Agreement”), by and among Stetson Holdings, LLC, (“Borrower”), BNP Paribas, as
Joint Lead Arranger, Joint Bookrunner, Administrative Agent, Issuing Bank and
Security Agent for the Secured Parties, and HSH Nordbank AG, New York Branch,
as Joint Lead Arranger, Joint Bookrunner, and Co-Syndication Agent and certain
lenders party thereto.  Capitalized terms defined in the Financing
Agreement, used herein and not otherwise defined herein, shall have the
meanings given to them in the Financing Agreement.

 

The undersigned, being the duly authorized officer
of the Borrower, DOES HEREBY CERTIFY, in the name and on behalf of the
Borrower, both immediately prior to the making of the Loans under the Financing
Agreement with respect to the Project and also after giving effect thereto, and
to the intended use of, that Loans:

 

1.                                       In accordance with Section 5.1
(b) of the Financing Agreement, that each representation and warranty set
forth in Article 6 of the Financing Agreement is true and correct in all
material respects as of the date hereof (unless such representation or warranty
relates solely to an earlier date, in which case it is true and correct in all
material respects as of such earlier date).

 

2.                                       In accordance with Section 5.1(c) of
the Financing Agreement, that no Event of Default or Inchoate Default with
respect to any Affiliated Participant has occurred and is continuing as of the
date hereof, and to the knowledge of Borrower, no Inchoate Default with respect
to any Major Project Participant that is not an Affiliated Participant has
occurred and is continuing as of the date hereof.

 

3.                                       In accordance with Section 5.1(l) of
the Financing Agreement, that each Financing Document, Material Project
Document and Applicable Permit is in full force and effect in accordance with
its terms and, to the knowledge of Borrower, no material defaults have occurred
thereunder.

 

Exhibit G-1

 

1

 

4.                                       In accordance with Section 5.1(w) of
the Financing Agreement, that Insurance complying with Section 7.20 of the
Financing Agreement is in full force and effect as of the date hereof and
attached hereto is a list identifying underwriters, type of insurance,
insurance limits and policy terms, and listing the special provisions required
as set forth in Section 7.20 of the Financing Agreement.  All premiums due thereon have been paid and,
in my opinion, such insurance complies with Section 7.20 of the Financing
Agreement.

 

5.                                       In accordance with Section 5.1(x) of
the Financing Agreement, that all Applicable Permits listed on Exhibit H-2B
to the Financing Agreement have been obtained and are in full force and effect
and are not subject to appeal, further procedures or any unsatisfied
conditions, except as provided in Exhibit H-2B, that may allow material
modification or revocation.

 

6.                                       In accordance with Section 5.1(z) of
the Financing Agreement, that no action, suit, proceeding or investigation has
been instituted, or to the knowledge of Borrower, threatened, nor has any rule,
regulation, order, judgment or decree have been issued or proposed to be issued
by any Governmental Authority that, solely as a result of the ownership or
operation of the Project, the generation or sale of electricity therefrom or
the entering into of any Operative Document or any transaction contemplated
thereby, would cause or deem (i) Administrative Agent, Issuing Bank,
Security Agent, or the Lenders or any Affiliate of any of them to be subject
to, or not exempted from, regulation under PUHCA, any financial, organizational
or rate regulation as a “public utility” or “electric utility” or terms of
similar effect under Maine law, or under any other state laws and regulations
respecting the rates or the financial or organizational regulation of electric
utilities; or (ii) Borrower, any Project Company or the Member to be
subject to, or not exempted from, regulation (A) under any financial,
organizational or rate regulation as a “public utility” or “electric utility”
or terms of similar effect under Maine law, (B) under any other state laws
and regulations respecting the rates or the financial or organizational
regulation of electric utilities except, with respect to the Member, any such
state laws or regulations that could not be reasonably expected to have a
Material Adverse Effect, and (C) under PUHCA, other than (x) compliance
with Section 1265 of PUHCA required with respect to Borrower, any Project
Company or the Member; and (y) regulation under PUHCA with respect to any
Affiliate of Borrower (including Member and the Project Companies) if such
regulation could not be reasonably expected to have a Material Adverse Effect.

 

7.                                       In accordance with Section 5.1(gg)
of the Financing Agreement, that (i) each Project Company is an “exempt
wholesale generator” and has previously delivered to Administrative Agent a
copy of (A) in respect of the Stetson I Project, the FERC notice
Acknowledging Effectiveness of Borrower’s Exempt Wholesale Generator Status,
dated May 27, 2009; and  the FERC
Order Granting Market-Based Rate Authority to Borrower, dated January 15,
2009, and (B) in respect of the Stetson II Project, a copy of the Notice
of Self-Certification of Exempt Wholesale Generator Status with respect to
Stetson Wind II, LLC, 

 

Exhibit G-1

 

2

 

properly filed with FERC and any responsive orders issued by FERC or
the FERC staff, acting under delegated authority, copies of all applications
for market-based rate authorization with respect to Stetson Wind II, LLC,
properly filed with FERC pursuant to Section 205 of the FPA, and any
responsive orders issued by FERC, or the FERC staff acting under delegated
authority, granting such authorizations.

 

8.                                       In accordance with Section 5.1(ii) of
the Financing Agreement, that the output of the Projects have qualified for
RECs.

 

9.                                       In accordance with Section 5.1(mm),
all work that has been performed as of the date hereof at the Stetson II
Project requiring inspection by any Governmental Authorities having
jurisdiction has been duly inspected and approved by such authorities and all
certificates or notices required to be issued in connection therewith have been
issued by such Governmental Authorities, all parties performing such work have
been paid for such work and no mechanics’ or materialmen’s liens or
applications therefore have been filed, and either lien waivers have been
obtained or all applicable filing periods for such mechanic’s and/or
materialmen’s liens have expired.

 

[SIGNATURE PAGE FOLLOWS]

 

Exhibit G-1

 

3

 

IN WITNESS WHEREOF, the undersigned has executed and
delivered this Officer’s Certificate as of the date first written above.

 

	
   

  	
  STETSON HOLDINGS, LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:  

  	
  Evelyn Lim

  
	
   

  	
  Title:

  	
  Secretary

  

 

Exhibit G-1

 

4

 

EXHIBIT
G-2

to
Financing Agreement

 

FORM OF INSURANCE CONSULTANT
CERTIFICATE

 

(See Tab      )

 

Exhibit G-2

 

1

 

INSURANCE CONSULTANT CERTIFICATE

 

Dated as of December       ,
2009

 

BNP Paribas

as Administrative Agent

The Equitable Tower

787 Seventh Avenue

New York, NY 10019

 

Ladies and Gentlemen:

 

The undersigned, a duly authorized representative of Moore-McNeil, LLC
as insurance consultant (“Insurance Consultant”) under the Financing
Agreement (as defined below), hereby provides this letter with respect to the
Project (as defined below) in accordance with Section 5.1(n) of the
Financing Agreement, dated as of December     , 2009
(as amended, amended and restated, supplemented or otherwise modified from time
to time, the “Financing Agreement”), by and among Stetson Holdings, LLC,
a Delaware limited liability company (“Borrower”), the financial
institutions from time to time parties thereto (the “Lenders”), BNP
Paribas (“BNPP”) , as a Joint Lead Arranger, Joint Bookrunner,
Administrative Agent for the Lenders (the “Administrative Agent “),
Security Agent for the Secured Parties (the “Security Agent”), and as
Issuing Bank, and HSH Nordbank AG, New York Branch (“HSHN”), as a Joint
Lead Arranger, Joint Bookrunner, and Co-syndication Agent.

 

Insurance Consultant
acknowledges that pursuant to the Financing Agreement, (i) BNPP in its
capacity as a Joint Lead Arranger, Joint Bookrunner, Administrative Agent,
Security Agent, and Issuing Bank, (ii) HSHN, in its capacity as a Joint
Lead Arranger, Joint Bookrunner, and Co-syndication Agent, and (iii) the
Lenders party to the Financing Agreement will be relying on this certificate
and the Insurance Consultant’s report, dated as of
                                ,
2009 and attached hereto as Exhibit A.  Insurance Consultant has reviewed Section 7.20
of the Financing Agreement and is familiar with the insurance requirements
stated therein.  It is the Insurance
Consultant’s opinion that the types and amounts of insurance required by Section 7.20
of the Financing Agreement are reasonable and adequate for a project of the
size and scope of the approximately 57 megawatt nameplate capacity wind
generation project and the approximately 25 megawatt nameplate capacity
generation project located in Penobscot and Washington Counties, Maine, as more
particularly described in the Financing Agreement (collectively, and
individually, as the case may be, the “Project”).

 

Attached hereto as Schedule A is a true, correct and complete
list of the insurance coverages which have been obtained in connection with the
Project.  Upon delivery of the original
certificates of insurance to Administrative Agent, copies of which are attached
to Schedule A, Borrower will have provided satisfactory evidence of
compliance with the provisions of Section 7.20 of the Financing Agreement.

 

Exhibit G-2

 

 

It is the Insurance Consultant’s opinion that (i) all required
insurance policies are in full force and effect, are not subject to
cancellation without prior thirty (30) days’ notice and otherwise conform with
the requirements set forth in the Financing Documents and the Material Project
Documents reviewed and summarized within the Insurance Consultant’s report and (ii) since
the date of the aforementioned Insurance Consultant’s report, nothing (outside
of the information contained in any updated or supplemental reports attached
thereto) has come to Insurance Consultant’s attention which would cause it to
change its report.

 

 

	
   

  	
  Respectfully submitted,

  
	
   

  	
  MOORE-MCNEIL, LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: 

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Exhibit G-2

 

 

EXHIBIT
A

Insurance Consultant’s Report

 

(SEE ATTACHED)

 

Exhibit G-2

 

 

Schedule A

 

Certificates
of Insurance

 

(SEE ATTACHED)

 

Exhibit G-2

 

 

EXHIBIT
G-3

to
Financing Agreement

 

FORM OF ENVIRONMENTAL CONSULTANT’S
CERTIFICATE

 

(See
Tab      )

 

 

December       ,
2009

 

BNP Paribas

as Administrative Agent

The Equitable Tower

787 Seventh Avenue

New York, NY 10019

 

Re:                               Phase I Environmental Assessment Stetson
II, T8 R4 NBPP, Washington County, Maine, dated May 13, 2009 (the “Report”),
prepared by Acadia Environmental Technology. (the “Consultant”).

 

Ladies and Gentlemen:

 

This reliance
letter is provided pursuant to that
certain Financing Agreement, dated as of December       ,
2009, made by and
among Stetson Holdings, LLC, a Delaware limited liability company (“Borrower”),
the financial institutions from time to time parties thereto (the “Lenders”),
BNP Paribas (“BNPP”) , as a Joint Lead Arranger, Joint Bookrunner,
Administrative Agent for the Lenders (the “Administrative Agent “),
Security Agent for the Secured Parties (the “Security Agent”), and as
Issuing Bank, and HSH Nordbank AG, New York Branch (“HSHN”), as a Joint
Lead Arranger, Joint Bookrunner, and Co-syndication Agent (as amended, amended
and restated, supplemented or otherwise modified from time to time, the “Financing
Agreement”).

 

The Consultant
prepared the Report as of the date noted above. 
Consultant hereby authorizes (i) BNPP in its capacity as a Joint
Lead Arranger, Joint Bookrunner, Administrative Agent, Security Agent, and
Issuing Bank, and as a Lender, and (ii) HSHN, in its capacity as a Joint
Lead Arranger, Joint Bookrunner, and Co-syndication Agent, and as a Lender, to
rely on the Report referenced in this letter.

 

[signature on the following page]

 

 

	
  Sincerely,

  	
   

  
	
   

  	
   

  
	
  Acadia Environmental
  Technology

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:  

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
			

 

Attachment A — Report

 

Exhibit G-3

 

1

 

ATTACHMENT
A

 

Exhibit G-3

 

 

EXHIBIT
G-4

to
Financing Agreement

 

FORM OF INDEPENDENT ENGINEER’S
CLOSING CERTIFICATE AND REPORT

 

(See
Tab      )

 

 

INDEPENDENT ENGINEER’S CERTIFICATE AND REPORT

 

Dated as of December       ,
2009

 

BNP Paribas,

as Administrative Agent

The Equitable Tower

787 Seventh Avenue

New York, NY 10019

 

Alberta Investment Management Company

PIP3PX FirstWind Debt Ltd.

PIP3GV FirstWind Debt Ltd.

340 Terrace Building, 9515 - 107 Street 

Edmonton, AB  T5K 2C3 , Canada

Tel: 780.427.6468 

Fax: 780.422.0257

Attn:      William McKenzie

 

Re: Stetson Wind Project

 

Ladies and Gentlemen:

 

The
undersigned, a duly authorized representative of Garrad Hassan America, Inc.,
in its capacity as independent engineer (“Independent Engineer”) to the
Administrative Agent (defined below), hereby provides this letter with respect
to the Project (as defined below) in accordance with: (i) Section 5.1(p) of
the Financing Agreement, dated as of December       ,
2009 (as amended, amended and restated, supplemented or otherwise modified from
time to time, the “Stetson  Financing
Agreement”), by and among Stetson Holdings, LLC, a Delaware limited
liability company (“Borrower”), the financial institutions from time to
time parties thereto (the “Stetson Lenders”), BNP Paribas (“BNPP”),
as a Joint Lead Arranger, Joint Bookrunner, Administrative Agent for the
Lenders (the “Administrative Agent”), Security Agent for the Secured
Parties, and as Issuing Bank, and HSH Nordbank AG, New York Branch (“HSHN”),
as a Joint Lead Arranger, Joint Bookrunner, and Co-syndication Agent and (ii) Section 3.3(k) of
the Amended and Restated Credit Agreement, dated as of December       ,
2009 (as amended, amended and restated, supplemented or otherwise modified from
time to time, the “AIMCO  Credit
Agreement”), by and among CSSW, LLC, CSSW Holdings, LLC, Wells Fargo Bank,
National Association (“Wells Fargo”), as Administrative Agent for the
Lenders and Collateral Agent for the Secured Parties, and the lenders from time
to time party thereto (the “AIMCO Lenders”; and together with the
Stetson Lenders, BNPP, HSHN, .and Wells Fargo, the “Financing Parties”)

 

Independent Engineer acknowledges that pursuant to
the Stetson Financing Agreement, the Stetson Lenders will be providing
financing to Borrower for the ownership and operation of the approximately
57 megawatt nameplate capacity wind generation project and the approximately
25.5 megawatt nameplate capacity wind generation project located in Penobscot
and Washington 

 

 

Counties, Maine (collectively, and individually, as
the case may be, the “Project”), and, in so doing, will be relying on
this certificate and the Independent Engineer reports attached hereto
(collectively, the “Reports”). 
Independent Engineer certifies to the Financing Parties (and their
permitted successors and assigns) that: (1) attached hereto as Exhibits A
and B are true, correct and complete copies of Independent Engineer’s
Reports and such Reports represent Independent Engineer’s professional opinion
with regard to the Project as of the  dates thereof;
and (2) since the date of the aforementioned Independent Engineer’s
Reports, nothing has come to Independent Engineer’s attention which would cause
it to change its Reports.

 

Consultant disclaims any obligation to update this
letter after the date hereof.  This
letter is not intended to be, and may not be, relied upon by any parties other
than the Financing Parties.  The
Financing Parties, each by its receipt of and reliance on this letter hereby
agrees to the limitations on Consultant’s liability as set forth in Section 7
of the Framework Agreement, dated May 8, 2007.

 

[signature on the following page]

 

 

	
   

  	
  Sincerely,

  
	
   

  	
   

  
	
   

  	
  GARRAD HASSAN AMERICA,
  INC.

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
  Name:  
  

  	
  Eric Tufts

  
	
   

  	
  Title:
  

  	
  Senior Project Manager

  

 

 

EXHIBIT A

 

(SEE ATTACHED)

 

Exhibit G-4

 

1

 

EXHIBIT B

 

(SEE ATTACHED)

 

Exhibit F-4

 

2

 

EXHIBIT
H-1

to
Financing Agreement

 

[Reserved]

 

Exhibit H-1

 

1

 

EXHIBIT
H-2A

to
Financing Agreement

 

SCHEDULE OF BORROWER PERMIT EXCEPTIONS-
ENVIRONMENTAL, PERMITTING, REAL PROPERTY, MAINE REGULATORY MATTERS AND FERC

 

Stetson I Project

 

None

 

Transmission Line

 

None

 

Stetson II Project

 

1.                                       Minor Change Approval to Development
Permit 4788 dated November 17, 2009, for changes to the portion of the
Project located within the D-PD subdistrict subject to DP 4788.

 

Exhibit H-2A

 

1

 

EXHIBIT
H-2B

to
Financing Agreement

 

SCHEDULE OF APPLICABLE PERMITS- ENVIRONMENTAL,
PERMITTING, REAL PROPERTY, MAINE REGULATORY MATTERS AND FERC

 

PART I

 

Stetson I Project Federal
Aviation Administration Permits

 

1.                                       (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1979-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1979-OE

 

2.                                       (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1980-OE, April 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1980-OE

 

3.                                       (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1981-OE, April 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1981-OE

 

4.                                       (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1982-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1982-OE

 

5.                                       (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1983-OE, April 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1983-OE

 

6.                                       (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1984-OE, April 6, 2008

 

Exhibit H-2B

 

1

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1984-OE

 

7.                                       (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1985-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1985-OE

 

8.                                       (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1986-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1986-OE

 

9.                                       (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1987-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1987-OE

 

10.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1988-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1988-OE

 

11.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1989-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1989-OE

 

12.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1990-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-AEA-2544-OE

 

13.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1991-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1991-OE

 

14.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1992-OE, February 6, 2008

 

Exhibit H-2B

 

2

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1992-OE

 

15.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1993-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1993-OE

 

16.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1994-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1994-OE

 

17.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1995-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1995-OE

 

18.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1996-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1996-OE

 

19.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1997-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1997-OE

 

20.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1998-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1998-OE

 

21.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-1999-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-1999-OE

 

22.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-2000-OE, February 6, 2008

 

Exhibit H-2B

 

3

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-2000-OE

 

23.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-2001-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-2001-OE

 

24.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-2002-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-2002-OE

 

25.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-2003-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-2003-OE

 

26.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-2004-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-2004-OE

 

27.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-2005-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-2005-OE

 

28.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-2006-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-2006-OE

 

29.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-2007-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-2007-OE

 

30.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-2008-OE, February 6, 2008

 

Exhibit H-2B

 

4

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-2008-OE

 

31.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-2009-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-2009-OE

 

32.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-2010-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-2010-OE

 

33.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-2011-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-2011-OE

 

34.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-2012-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study
No2007-ANE-2012-OE

 

35.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-2013-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-2013-OE

 

36.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-2014-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-2014-OE

 

37.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-2015-OE, February 6, 2008

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-2015-OE

 

38.                                 (a)                                  Federal Aviation Administration Determination of No
Hazard to Air Navigation 2007-ANE-2016-OE, February 6, 2008

 

Exhibit H-2B

 

5

 

(b)                                 Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2007-ANE-2016-OE

 

39.                                 Federal Aviation Administration Determination
of No Hazard to Air Navigation 2007-ANE-576-OE, April 30, 2007

 

40.                                 Federal Aviation Administration
Determination of No Hazard to Air Navigation 2007-ANE-577-OE, April 30,
2007

 

41.                                 Federal Aviation Administration
Determination of No Hazard to Air Navigation 2007-ANE-578-OE, April 30,
2007

 

42.                                 Federal Aviation Administration
Determination of No Hazard to Air Navigation 2007-ANE-579-OE, April 30,
2007

 

Stetson I Project FERC Permits

 

43.                                 Federal Energy Regulatory Commission
Notice in Docket No. EG09-24-000 Acknowledging Effectiveness of Borrower’s
Exempt Wholesale Generator Status, Hay Canyon Wind LLC, et al., Notice
in Docket Nos. EG09-19-000, et al. (May 27, 2009).

 

44.                                 Order of the Federal Energy Regulatory
Commission Granting the Application of Evergreen Wind Power V, LLC, for Order
Accepting Initial Market-Based Rate Tariff, Waiving Regulations, and Granting
Blanket Approvals, Unpublished Letter Order in Docket Nos. ER09-174-000 and
ER09-174-001 (January 15, 2009).

 

Stetson I Project — Other Federal
Permits

 

1.                                       U.S. Army Corps of Engineers Permit,
issued May 15, 2008 (appeal period runs May 15, 2013).

 

Stetson I Project — State of
Maine Permits

 

1.                                       Approved LURC Zoning Petition ZP 713 and
Preliminary Development Plan, T8 R3 NBPP and T8 R4 NBPP, Washington County,
issued November 7, 2007.

 

2.                                       Approved LURC Final Development Plan
Permit DP 4788, T8 R3 NBPP and T8 R4 NBPP, Washington County, issued January 2,
2008.

 

3.                                       Approved LURC Amendment A to Final
Development Plan Permit DP 4788, T8 R3 NBPP and T8 R4 NBPP, Washington County,
issued March 11, 2008.

 

4.                                       Correction to Final Development Plan
Permit DP 4788, T8 R3 NBPP and T8 R4 NBPP, Washington County, issued July 22,
2008.

 

5.                                       Maine Department of Environmental
Protection Site Location of Development Act, Natural Resources Protection Act
Permit and Water Quality Certificate, issued March 18, 2008.

 

Exhibit H-2B

 

6

 

6.                                       LURC Staff clarified Condition #12A of
the Final Development Plan Permit, dated May 22, 2008.

 

7.                                       Notice of Intent to Comply with Maine
Construction General Permit (LURC), dated December 13, 2007.

 

8.                                       Notice of Intent to Comply with Maine
Construction General Permit (DEP).

 

Exhibit H-2B

 

7

 

Stetson I Project — Municipal Permits

 

1.                                       Town of Woodville Shoreland Zoning
Permit, issued April 16, 2008.

 

2.                                       Town of Chester Shoreland Zoning Permit,
issued April 23, 2008.

 

3.                                       Town of Mattawamkeag Shoreland Zoning
Permit, issued April 25, 2008.

 

4.                                       Town of Chester Flood Hazard Development
Permit, issued October 20, 2008.

 

5.                                       Town of Mattawamkeag Flood Hazard
Development Permit, issued October 12, 2008.

 

Exhibit H-2B

 

8

 

GENERATOR LEAD PERMITS

 

1.                                       Department of Environmental Protection
Site Order dated March 18, 2008 and filed in the Penobscot County Registry
of Deeds in Book 11345, Page 249.

 

2.                                       Town of Chester Utility Location Permit
for crossing the Pea Ridge Road.

 

3.                                       Town of Mattawamkeag Utility Location
Permit dated May 22, 2008 for crossing the River Road.

 

4.                                       Town of Woodville Utility Location Permit
dated May 12, 2008 for crossing the Butterfield Ridge Road and the River
Road.

 

5.                                       Carroll Plantation Utility Location
Permit dated April 28, 2008 for crossing the North Road

 

6.                                       State of Maine
Utility Location Permits for multiple crossings all dated February 7, 2008
for Route 116, Chester, Route 2, Mattawamkeag, Route 169, Prentiss and two
crossings of Route 170 Prentiss.

 

Exhibit H-2B

 

9

 

Stetson II Project Federal
Aviation Administration Permits

 

1.             (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation
2009-WTE-1346-OE, April 9, 2009

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2009-WTE-1346-OE

 

2.             (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation
2009-WTE-1347-OE, April 9, 2009

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2009-WTE-1347-OE

 

3.             (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation
2009-WTE-1348-OE, April 9, 2009

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2009-WTE-1348-OE

 

4.             (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation
2008-WTE-1385-OE, October 7, 2008

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2008-WTE-1385-OE

 

5.             (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation
2008-WTE-1386-OE, October 7, 2008

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2008-WTE-1386-OE

 

6.             (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation
2008-WTE-1387-OE, October 7, 2008

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2008-WTE-1387-OE

 

7.             (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation
2008-WTE-1388-OE, October 7, 2008

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2008-WTE-1388-OE

 

8.             (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation
2008-WTE-1389-OE, October 7, 2008

 

Exhibit H-2B

 

10

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2008-WTE-1389-OE

 

9.             (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation
2008-WTE-1390-OE, October 7, 2008

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2008-WTE-1390-OE

 

10.           (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation
2008-WTE-1391-OE, October 7, 2008

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2008-WTE-1391-OE

 

11.           (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation
2008-WTE-1392-OE, October 7, 2008

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2008-WTE-1392-OE

 

12.           (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation
2008-WTE-1393-OE, October 7, 2008

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2008-WTE-1393-OE

 

13.           (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation
2008-WTE-1394-OE, October 7, 2008

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2008-WTE-1394-OE

 

14.           (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation
2008-WTE-1395-OE, October 7, 2008

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2008-WTE-1395-OE

 

15.           (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation
2008-WTE-1396-OE, October 7, 2008

 

(b)           Form 7460-2, Federal Aviation Administration
Notice of Actual Construction or Alteration, Aeronautical Study No. 2008-WTE-1396-OE

 

Exhibit H-2B

 

11

 

16.           (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation 2008-WTE-1397-OE,
October 7, 2008

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2008-WTE-1397-OE

 

17.           (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation 2008-WTE-1398-OE,
October 7, 2008

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2008-WTE-1398-OE

 

18.           (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation 2008-WTE-1399-OE,
October 7, 2008

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2008-WTE-1399-OE

 

19.           (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation 2008-WTE-1400-OE,
October 7, 2008

 

(b)           Form 7460-2, Federal Aviation
Administration Notice of Actual Construction or Alteration, Aeronautical Study No. 2008-WTE-1400-OE

 

20.           (a)           Federal
Aviation Administration Determination of No Hazard to Air Navigation 2008-WTE-1401-OE,
October 7, 2008

 

(b)           Form 7460-2, Federal Aviation Administration
Notice of Actual Construction or    Alteration,
Aeronautical Study No. 2008-WTE-1401-OE

 

Stetson II Project FERC Permits

 

1.             Stetson Wind II’s Notice of
Self-Certification as an Exempt Wholesale Generator, Notice in Docket No. EG10-13-000
(December 16, 2009).

 

2.             Stetson Wind II’s Application for Order
Accepting Initial Market-Based Tariff, Waiving Regulations, and Granting
Blanket Approvals, Application in Docket No. ER10-426-000 (December 16,
2009).

 

Exhibit H-2B

 

12

 

Stetson II Project — State of
Maine Permits

 

1.             Approved LURC Stetson Wind II, LLC
Development Permit DP 4818, T8 R4 NBPP, Washington County, issued March, 4,
2009.

 

2.             Approved LURC Amendment B to Final
Development Plan Permit DP 4788, T8 R4 NBPP, Washington County, issued March 6,
2009.

 

3.             State of Maine, Department of
Transportation, Special Opening Permit to Stetson Wind II, LLC for the
construction of road widening for wind turbine transport.

 

4.             Maine Department of Transportation,
Driveway/Entrance Permit, Number 8924, issued March 9, 2009.

 

5.             Maine Department of Transportation,
Driveway/Entrance Permit, Number 8927, issued March 9, 2009.

 

6.             Maine Department of Transportation,
Driveway/Entrance Permit, Number 8958, issued April 15, 2009.

 

7.             State of Maine, Department of
Transportation, Highway Opening Permit No. R5-0809-029, issued March 25,
2009.

 

8.             State of Maine, Department of
Transportation, Location Permit, Permit Record Number 56861, issued March 25,
2009.

 

9.             Approved LURC Stetson Wind II, LLC
Development Permit DP 4786, T8 R4 NBPP, Washington County, issued December 5,
2007.

 

10.           Notice of Intent to Comply with Maine
Construction General Permit (DEP), accepted March 26, 2009.

 

11.           Application for a Department of
Environmental Protection Stormwater Permit By Rule dated October 27,
2008.

 

Exhibit H-2B

 

13

 

EXHIBIT
H-3

to
Financing Agreement

 

GOVERNMENTAL REGULATIONS

 

None.

 

Exhibit H-3

 

1

 

EXHIBIT
H-4

to
Financing Agreement

 

[Reserved]

 

Exhibit H-4

 

1

 

EXHIBIT
H-5

to
Financing Agreement

 

PENDING LITIGATION

 

1.             PowerTel Utilities Contractors Limited (“PowerTel”)
has asserted claims for additional compensation against Evergreen Wind Power V,
LLC, arising from the construction of a 38 mile electricity transmission line
from the Project to Bangor Hydro’s Keene Road Switching Station (“Line 56
Project”).   Specifically, PowerTel, as
the general contractor on the Line 56 Project, has asserted claims for
additional compensation in excess of $2 million arising from alleged
impacts to PowerTel’s work caused by certain unforeseen conditions and lost
productivity

 

Exhibit H-5

 

1

 

EXHIBIT
H-6

to
Financing Agreement

 

ENVIRONMENTAL
MATTERS DISCLOSURE

 

None.

 

Exhibit H-6

 

1

 

EXHIBIT
H-7

to
Financing Agreement

 

CHIEF
EXECUTIVE OFFICE OF BORROWER

 

Stetson Holdings, LLC

 

c/o First Wind Energy, LLC

 

179 Lincoln Street, Suite 500

 

Boston, Massachusetts, 02111

 

 

Evergreen Wind Power V, LLC

 

c/o First Wind Energy, LLC

 

179 Lincoln Street, Suite 500

 

Boston, Massachusetts, 02111

 

 

Stetson Wind II, LLC

 

c/o First Wind Energy, LLC

 

179 Lincoln Street, Suite 500

 

Boston, Massachusetts, 02111

 

Exhibit H-7

 

1

 

EXHIBIT
H-8A

to
Financing Agreement

 

DESCRIPTION
OF STETSON I REAL PROPERTY INTERESTS

 

LEASE

 

	
  Stetson
  Tax

  Map/Lot Nos.

  	
   

  	
  Leases

  	
   

  	
  Property

  (described in Memorandum of 

  Lease recorded as follows at the 

  Washington County Registry of 

  Deeds)

  
	
  p/o Lot 1, Map WA23;
  

  p/o Lot 11, Map WA26

  	
   

  	
  Land Lease Agreement
  from Lakeville Shores, Inc. dated
  October 12, 2006

  	
   

  	
  Memorandum recorded
  October 17, 2008 in Bk 3462 Pg 292

  

 

AGREEMENTS

 

Shared Facilities and Sublease Agreement
between Evergreen Wind Power V, LLC and Stetson Wind II, LLC, as evidenced by
Memorandum of Shared Facilities and Sublease Agreement dated as of the date of
this Financing Agreement, to be recorded in the Washington County Registry of
Deeds.

 

Exhibit H-8A

 

1

 

EXHIBIT
H-8B

to
Financing Agreement

 

DESCRIPTION
OF STETSON II REAL PROPERTY INTERESTS

 

LAND AND EASEMENT RIGHTS

 

Leasehold
Rights:

 

Lease as evidenced by
Memorandum of Lease dated December 26, 2008 by and between Lakeville
Shores, Inc. and Stetson Wind II, LLC recorded on December 30, 2008
in Book 3482, Page 141, Washington County, Maine, and as amended by First
Amendment to Amended and Restated Land Lease Agreement dated June 12,
2009, recorded on June 30, 2009 in Book 3543, Page 234, Washington
County, Maine.

 

Easement Rights:

 

Easement as evidenced by
Grant of Easements dated June 12, 2009, recorded on June 30, 2009 in
Book 3543, Page 249, Washington County, Maine.

 

LAYDOWN LEASE

 

Lease as
evidenced by Memorandum of Lease dated June 12, 2009 by and between Dellis
J. Huff, Jessica P. Huff and Stetson Wind II, LLC recorded on June 15,
2009 in Book 3549, Page 49, Washington County, Maine

 

ANCILLARY RIGHTS AND PROPERTIES

 

Agreements

 

Shared Facilities and Sublease Agreement between Evergreen Wind Power
V, LLC and Stetson Wind II, LLC, as evidenced by Memorandum of Shared
Facilities and Sublease Agreement dated as of the date of this Financing
Agreement, to be recorded in the Washington County Registry of Deeds.

 

Road Crossing Permit

 

Unrecorded Utility
Location Permit Record No. 56861 issued by the State of Maine Department
of Transportation to Stetson Wind II, LLC, dated March 25, 2009, for
crossing Route 169.

 

Exhibit H-8B

 

1

 

EXHIBIT
H-9

to
Financing Agreement

 

DESCRIPTION
OF TRANSMISSION LINE REAL PROPERTY INTERESTS

 

Deeds Conveying
Land to Mortgagor

 

 

	
  1.

  	
   

  	
  Deed dated as of
  April 28, 2008 between Evergreen Wind Power V, LLC, and Donald Morin and
  Elizabeth A. Morin and recorded in the Penobscot County Registry of Deeds in
  Book 11379, Page 121.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Deed dated as of
  May 22, 2008 between Evergreen Wind Power V, LLC, and Huber Timer, LLC
  and recorded in the Penobscot County Registry of Deeds in Book 11403,
  Page 237.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Deed
  dated as of May 12, 2008 between Evergreen Wind Power V, LLC, and
  Prentiss & Carlisle Co. and recorded in the Penobscot County
  Registry of Deeds in Book 11424, Page 100.

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Deed
  dated as of June 14, 2007 between Evergreen Wind Power V, LLC, and Ricky
  Deloge, Sr. and recorded in the Penobscot County Registry of Deeds in
  Book 11012, Page 347.

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Deed dated as of
  March 26, 2008 between Evergreen Wind Power V, LLC, and Harlan H.
  Whitney and Pauline D. Whitney and recorded in the Penobscot County Registry
  of Deeds in Book 11338. Page 154.

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Deed
  dated as of June 24, 2008 between Evergreen Wind Power V, LLC, and
  Harlan H. Whitney and Pauline D. Whitney and recorded in the Penobscot County
  Registry of Deeds in Book 11444, Page 114.

  
	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Deed
  dated as of May 12, 2008 between Evergreen Wind Power V, LLC, and
  Prentiss & Carlisle Co. and recorded in the Penobscot County
  Registry of Deeds in Book 11424, Page 116.

  
	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Deed
  dated as of June 24, 2008 between Evergreen Wind Power V, LLC, and
  Donald L. Whitney and recorded in the Penobscot County Registry of Deeds in
  Book 11444, Page 112.

  
	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Deed
  dated as of March, 11 2008 between Evergreen Wind Power V, LLC, and Donald L.
  Whitney and recorded in the Penobscot County Registry of Deeds in
  Book 11322, Page 275. Said deed being corrected by document dated
  June 24, 2008 and recorded in said Registry of Deeds in Book 11444,
  Page 110.

  
	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Deed
  dated as of March 22, 2008 between Evergreen Wind Power V, LLC, and John
  R. Whitney and Deborah M. Whitney and recorded in the Penobscot County
  Registry of Deeds in Book 11332, Page 340.

  
	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Deed dated as of May 14, 2008
  between Evergreen Wind Power V, LLC, and Robert Harmon, Jr. and recorded
  in the Penobscot County Registry of Deeds in Book 11392, Page 109.

  

 

Exhibit H-9

 

1

 

	
  12.

  	
   

  	
  Deed
  dated as of April 10, 2008 between Evergreen Wind Power V, LLC, and
  Andrew G. Edwards and recorded in the Penobscot County Registry of Deeds in
  Book 11354, Page 291.

  
	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Deed dated as of
  March 13, 2008 between Evergreen Wind Power V, LLC, and Gary A. Fleming
  and Cynthia Fleming and recorded in the Penobscot County Registry of Deeds in
  Book 11330, Page 56.

  
	
   

  	
   

  	
   

  
	
  14.

  	
   

  	
  Deed dated as of
  October 24, 2007 between Evergreen Wind Power V, LLC, and H C
  Haynes, Inc. and recorded in the Penobscot County Registry of Deeds in
  Book 11226, Page 162.

  
	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  Deed dated as of
  October 30, 2004 between Evergreen Wind Power V, LLC, and Henry D.
  Provencher and recorded in the Penobscot County Registry of Deeds in Book
  11187, Page 311.

  
	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Deed
  dated as of May 7, 2008 between Evergreen Wind Power V, LLC, and
  Prentiss & Carlisle Co. and recorded in the Penobscot County
  Registry of Deeds in Book 11386, Page 8.

  
	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  Deed
  dated as of May 9, 2008 between Evergreen Wind Power V, LLC, and
  Lakeville Shores, Inc. and recorded in the Penobscot County Registry of
  Deeds in Book 11392, Page 76.

  
	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  Deed
  dated as of April 21, 2008 between Evergreen Wind Power V, LLC, and
  Lakeville Shores, Inc. and recorded in the Penobscot County Registry of
  Deeds in Book 11367, Page 185.

  
	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  Deed
  dated as of March 11, 2008 between Evergreen Wind Power V, LLC, and
  Jamie Lee Steeves and recorded in the Penobscot County Registry of Deeds in
  Book 11320, Page 125.

  
	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
  Deed dated as of
  November 6, 2007 between Evergreen Wind Power V, LLC, and Marjorie White
  Ghost and recorded in the Penobscot County Registry of Deeds in Book 11198,
  Page 46.

  
	
   

  	
   

  	
   

  
	
  21.

  	
   

  	
  Deed dated as of
  May 12, 2008 between Evergreen Wind Power V, LLC, and
  Prentiss & Carlisle Co., Inc. and McCrillis Timberlands, LLC
  and recorded in the Penobscot County Registry of Deeds in Book 11393,
  Page 96.

  
	
   

  	
   

  	
   

  
	
  22.

  	
   

  	
  Deed dated as of
  March 18, 2008 between Evergreen Wind Power V, LLC, and Thomas E.
  Linscott and Karen B. Linscott and recorded in the Penobscot County Registry
  of Deeds in Book 11329, Page 273.

  
	
   

  	
   

  	
   

  
	
  23.

  	
   

  	
  Deed dated as of
  July 3, 2008 between Evergreen Wind Power V, LLC, and J. Robert
  Hudson and recorded in the Penobscot County Registry of Deeds in
  Book 11474, Page 343.

  
	
   

  	
   

  	
   

  
	
  Instruments Conveying Easement Rights to Mortgagor

  
	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Easement dated
  October 10, 2008 between Evergreen Wind Power V, LLC, and Bangor Hydro
  Electric Company and recorded in the Penobscot County Registry of Deeds in
  Book 11563, Page 77.

  

 

Exhibit H-8B

 

2

 

	
  2.

  	
   

  	
  Easement dated as of
  October 2, 2008 between Evergreen Wind Power V, LLC, and Maine Electric
  Power Company and recorded in the Penobscot County Registry of Deeds in Book
  11553, Page 18.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Easement dated as of
  April 21, 2008 between Evergreen Wind Power V, LLC, and Lakeville
  Shores, Inc. and recorded in the Penobscot County Registry of Deeds in
  Book 11367, Page 187.

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Easement dated as of
  April 4, 2008 between Evergreen Wind Power V, LLC, and Loren A. Hale and
  Joyce M. Hale and recorded in the Penobscot County Registry of Deeds in Book
  11351, Page 117.

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Easement
  dated as of March 13, 2008 between Evergreen Wind Power V, LLC, and
  Roscoe Tash and recorded in the Penobscot County Registry of Deeds in
  Book 11327, Page 236.

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Easement
  dated as of August 2, 2007 between Evergreen Wind Power V, LLC, and
  Elgin H. Turner and recorded in the Penobscot County Registry of Deeds in
  Book 11140, Page 1.

  
	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Easement
  dated as of May 30, 2008 between Evergreen Wind Power V, LLC, and Edwin
  Tash, Sr. et al and recorded in the Penobscot County Registry of Deeds
  in Book 11418, Page 84.

  
	
   

  	
   

  	
   

  
	
  8.

  	
   

  	
  Easement
  dated April 15, 2008 between Evergreen Wind Power V, LLC, and The Gerrity
  Family Limited Partnership and recorded in the Penobscot County Registry of
  Deeds in Book 11360, Page 172.

  
	
   

  	
   

  	
   

  
	
  9.

  	
   

  	
  Easement dated as of
  March 4, 2008 between Evergreen Wind Power V, LLC, and Clayton J.
  McCarthy and recorded in the Penobscot County Registry of Deeds in Book
  11317, Page 56.

  
	
   

  	
   

  	
   

  
	
  10.

  	
   

  	
  Easement dated as of
  March 28, 2008 between Evergreen Wind Power V, LLC, and Elaine Reardon
  and recorded in the Penobscot County Registry of Deeds in Book 11360,
  Page 181.

  
	
   

  	
   

  	
   

  
	
  11.

  	
   

  	
  Easement dated as of February 28,
  2008 between Evergreen Wind Power V, LLC, and Albert S. Ring and Linda M.
  Ring and recorded in the Penobscot County Registry of Deeds in Book 11348,
  Page 235.

  
	
   

  	
   

  	
   

  
	
  12.

  	
   

  	
  Easement dated as of May 9, 2008 between
  Evergreen Wind Power V, LLC, and H C Haynes, Inc. and recorded in the
  Penobscot County Register of Deeds in Book 11392, Page 72.

  
	
   

  	
   

  	
   

  
	
  13.

  	
   

  	
  Easement dated as of March 2, 2008 between
  Evergreen Wind Power V, LLC, and Edward F. Sargent, Jr. and recorded in
  the Penobscot County Registry of Deeds in Book 11348, Page 239.

  

 

Exhibit H-8B

 

3

 

	
  14.

  	
   

  	
  Easement
  dated as of February 25, 2008 between Evergreen Wind Power V, LLC, and
  Edward Whitney, III, AnneMarie B. Whitney, Scott E. Whitney, Mark J.
  Whitney and recorded in the Penobscot County Registry of Deeds in Book 11329,
  Page 275.

  
	
   

  	
   

  	
   

  
	
  15.

  	
   

  	
  Easement
  dated as of March 6, 2008 between Evergreen Wind Power V, LLC, and
  Shepard V. Sloane-Trustee and recorded in the Penobscot County Registry of
  Deeds in Book 11317, Page 46.

  
	
   

  	
   

  	
   

  
	
  16.

  	
   

  	
  Easement
  dated as of March 14, 2008 between Evergreen Wind Power V, LLC, and Royl
  M. Schoonover and Vanessa V. Schoonover and recorded in the Penobscot County
  Registry of Deeds in Book 11327, Page 239.

  
	
   

  	
   

  	
   

  
	
  17.

  	
   

  	
  Easement
  dated as of May 9, 2008 between Evergreen Wind Power V, LLC, and
  Lakeville Shores, Inc. and recorded in the Penobscot County Registry of
  Deeds in Book 11392, Page 68.

  
	
   

  	
   

  	
   

  
	
  18.

  	
   

  	
  Easement
  dated as of March 4, 2008 between Evergreen Wind Power V, LLC, and
  Clayton J. McCarthy and recorded in the Penobscot County Registry of Deeds in
  Book 11317, Page 51.

  
	
   

  	
   

  	
   

  
	
  19.

  	
   

  	
  Easement dated as of
  March 4, 2008 between Evergreen Wind Power V, LLC, and Hayden P.
  McCarthy and recorded in the Penobscot County Registry of Deeds in Book 11317,
  Page 60. Said easement being corrected by document dated June 26,
  2008 and recorded in said Registry of Deeds in Book 11450, Page 2.

  
	
   

  	
   

  	
   

  
	
  20.

  	
   

  	
  Easement dated as of
  March 26, 2008 between Evergreen Wind Power V, LLC, and Northern
  Timbers, Inc. and recorded in the Penobscot County Registry of Deeds in
  Book 11338, Page 146.

  
	
   

  	
   

  	
   

  
	
  21.

  	
   

  	
  Easement dated as of
  February 22, 2008 between Evergreen Wind Power V, LLC, and C N Brown
  Company and recorded in the Penobscot County Registry of Deeds in Book 11301,
  Page 268.

  
	
   

  	
   

  	
   

  
	
  22.

  	
   

  	
  Easement dated as of
  January 17, 2008 between Evergreen Wind Power V, LLC, and
  Aroostook & Bangor Resources and recorded in the Penobscot County
  Registry of Deeds in Book 11275, Page 109.

  
	
   

  	
   

  	
   

  
	
  23.

  	
   

  	
  Easement dated as of May 2, 2008 between Evergreen
  Wind Power V, LLC, and Richard A. Delaite and David W. Delaite and recorded
  in the Penobscot County Registry of Deeds in Book 11384, Page 320.

  
	
   

  	
   

  	
   

  
	
  24.

  	
   

  	
  Easement dated as of March 11, 2008 between
  Evergreen Wind Power V, LLC, and Bion Tolman and recorded in the Penobscot
  County Registry of Deeds in Book 11322, Page 280.

  

 

Exhibit H-8B

 

4

 

	
  25.

  	
   

  	
  Easement dated as of June 10, 2008 between
  Evergreen Wind Power V, LLC, and Jeffrey B. Vicaire and Rhonda J. Vicaire and
  recorded in the Penobscot County Registry of Deeds in Book 11426,
  Page 317.

  
	
   

  	
   

  	
   

  
	
  26.

  	
   

  	
  Easement dated as of March 6, 2007 between
  Evergreen Wind Power V, LLC, and Joanne Adams and recorded in the Penobscot
  County Registry of Deeds in Book 11317, Page 64.

  
	
   

  	
   

  	
   

  
	
  27.

  	
   

  	
  Easement dated 2008 between Evergreen Wind Power V,
  LLC, and John M. Kyler and Joan E. H. Kyler and recorded in the Penobscot
  County Registry of Deeds in Book 11450, Page 21.

  
	
   

  	
   

  	
   

  
	
  28.

  	
   

  	
  Easement dated as of March 6, 2008 between
  Evergreen Wind Power V, LLC, and Melvin L. Vicaire and Lynn Vicaire and
  recorded in the Penobscot County Registry of Deeds in Book 11317,
  Page 68.

  
	
   

  	
   

  	
   

  
	
  29.

  	
   

  	
  Easement dated as of February 21, 2008 between
  Evergreen Wind Power V, LLC, and Thomas B. Kates, Jr. and Walter W.
  Hughes and recorded in the Penobscot County Registry of Deeds in Book 11301,
  Page 261.

  
	
   

  	
   

  	
   

  
	
  30.

  	
   

  	
  Easement dated as of February 25, 2008 between
  Evergreen Wind Power V, LLC, and William Ziehl and Rhonda Ziehl and recorded
  in the Penobscot County Registry of Deeds in Book 11311, Page 83.

  
	
   

  	
   

  	
   

  
	
  31.

  	
   

  	
  Easement recorded March 25, 2008 between
  Evergreen Wind Power V, LLC, and Lucy Campbell, Susan Fort, David B.
  Campbell, Sheila Jean, Alan Bruce, and Linda Lucian and recorded in the
  Penobscot County Registry of Deeds in Book 11333, Page 117.

  
	
   

  	
   

  	
   

  
	
  32.

  	
   

  	
  Easement between Evergreen Wind Power V, LLC, and
  Penobscot Forest, LLC and recorded in the Penobscot County Registry of Deeds
  in Book 11473, Page 276.

  
	
   

  	
   

  	
   

  
	
  33.

  	
   

  	
  Easement dated as of April 21, 2008 between
  Evergreen Wind Power V, LLC, and Lakeville Shores, Inc. and recorded in
  the Penobscot County Registry of Deeds in Book 11367, Page 191.

  
	
   

  	
   

  	
   

  
	
  34.

  	
   

  	
  Easement dated as of June 24, 2008 between
  Evergreen Wind Power V, LLC, and John Hagemeyer and Sylvia Hagemeyer and recorded
  in the Penobscot County Registry of Deeds in Book 11444, Page 105.

  
	
   

  	
   

  	
   

  
	
  35.

  	
   

  	
  Assignment and Assumption dated as of June 6,
  2008 between Evergreen Wind Power V, LLC, and Eastern Maine Electric
  Cooperative, Inc. and recorded in the Penobscot County Registry of Deeds
  in Book 11420, Page 179.

  

 

Exhibit H-8B

 

5

 

	
  36.

  	
   

  	
  Easement dated as of June 20, 2008 between
  Evergreen Wind Power V, LLC, and Naturals Rod & Gun Club and
  recorded in the Penobscot County Registry of Deeds in Book 11450,
  Page 6.

  
	
   

  	
   

  	
   

  
	
  37.

  	
   

  	
  Easement dated as of September 19, 2008 between
  Evergreen Wind Power V, LLC, and State of Maine, Inland Fisheries and
  Wildlife and recorded in the Penobscot County Registry of Deeds in Book
  11537, Page 290.

  
	
   

  	
   

  	
   

  
	
  38.

  	
   

  	
  Easement dated as of May 9, 2008 between
  Evergreen Wind Power V, LLC, and Haynes Timberland, Inc. and recorded in
  the Penobscot County Registry of Deeds in Book 11392, Page 94.

  
	
   

  	
   

  	
   

  
	
  39.

  	
   

  	
  Easement dated as of April 17, 2008 between
  Evergreen Wind Power V, LLC, and Charles Alferes and Ethel Alferes-Trustees
  and recorded in the Penobscot County Registry of Deeds in Book 11367,
  Page 205.

  
	
   

  	
   

  	
   

  
	
  40.

  	
   

  	
  Easement dated as of May 9, 2008 between
  Evergreen Wind Power V, LLC, and Haynes Timberland, Inc. and recorded in
  the Penobscot County Registry of Deeds in Book 11392, Page 86.

  
	
   

  	
   

  	
   

  
	
  41.

  	
   

  	
  Easement dated as of May 9, 2008 between
  Evergreen Wind Power V, LLC, and Haynes Timberland, Inc. and recorded in
  the Penobscot County Registry of Deeds in Book 11392, Page 90.

  
	
   

  	
   

  	
   

  
	
  42.

  	
   

  	
  Easement dated as of May 9, 2008 between
  Evergreen Wind Power V, LLC, and Ginger Maxwell and recorded in the Penobscot
  County Registry of Deeds in Book 11392, Page 78, as corrected by
  Corrective Easement from Ginger Maxwell dated November 25, 2009 and
  recorded at said Registry in Book 11987, Page 189.

  
	
   

  	
   

  	
   

  
	
  43.

  	
   

  	
  Easement dated as of July 31, 2008 between
  Evergreen Wind Power V, LLC, and John A. Dudley, III and Debra Dudley
  and recorded in the Penobscot County Registry of Deeds in Book 11486,
  Page 2.

  
	
   

  	
   

  	
   

  
	
  44.

  	
   

  	
  Easement dated as of July 15, 2008 between
  Evergreen Wind Power V, LLC, and John E. Osgood and Susan Osgood and recorded
  in the Penobscot County Registry of Deeds in Book 11465, Page 80.

  
	
   

  	
   

  	
   

  
	
  45.

  	
   

  	
  Easement dated as of March 18, 2008 between
  Evergreen Wind Power V, LLC, and Kevin R. Tozier and recorded in the
  Penobscot County Registry of Deeds in Book 11329, Page 278.

  

 

Exhibit H-8B

 

6

 

	
  46.

  	
   

  	
  Easement dated as of May 12, 2008 between
  Evergreen Wind Power V, LLC, and Prentiss & Carlisle Company and
  McCrillis Timberlands, LLC and recorded in the Penobscot County Registry of
  Deeds in Book 11392, Page 103.

  
	
   

  	
   

  	
   

  
	
  47.

  	
   

  	
  Easement dated as of February 21, 2008 between
  Evergreen Wind Power V, LLC, and Delia M. Parker and recorded in the
  Penobscot County Registry of Deeds in Book 11301, Page 264.

  
	
   

  	
   

  	
   

  
	
  48.

  	
   

  	
  Easement dated as of March 10, 2008 between
  Evergreen Wind Power V, LLC, and Junior L. Smith and Christine C. Goldsmith
  and recorded in the Penobscot County Registry of Deeds in Book 11322,
  Page 277.

  
	
   

  	
   

  	
   

  
	
  49.

  	
   

  	
  Easement dated as of May 9, 2008 between
  Evergreen Wind Power V, LLC, and Estate of Herbert Haynes, by Personal
  Representative and recorded in the Penobscot County Registry of Deeds in Book
  11392, Page 82.

  
	
   

  	
   

  	
   

  
	
  50.

  	
   

  	
  Easement dated as of January 15, 2008 between
  Evergreen Wind Power V, LLC, and Susan Claerbout and Kenneth Claerbout and
  recorded in the Penobscot County Registry of Deeds in Book 11284,
  Page 312.

  
	
   

  	
   

  	
   

  
	
  51.

  	
   

  	
  Easement dated as of April 21, 2008 between
  Evergreen Wind Power V, LLC, and Herbert C. Haynes, Jr. and recorded in
  the Penobscot County Registry of Deeds in Book 11367, Page 201.

  
	
   

  	
   

  	
   

  
	
  52.

  	
   

  	
  Easement dated as of April 21, 2008 between
  Evergreen Wind Power V, LLC, and Lakeville Shores, Inc. and recorded in
  the Penobscot County Registry of Deeds in Book 11367, Page 196.

  
	
   

  	
   

  	
   

  
	
  53.

  	
   

  	
  Easement dated as of February 15, 2008 between
  Evergreen Wind Power V, LLC, and Gardner Land Company, Inc. and recorded
  in the Penobscot County Registry of Deeds in Book 11329, Page 282.

  
	
   

  	
   

  	
   

  
	
  54.

  	
   

  	
  Easement dated as of March 21, 2008 between
  Evergreen Wind Power V, LLC, and Dennis Gould and Robert Yorks and recorded
  in the Penobscot County Registry of Deeds in Book 11332, Page 337.

  
	
   

  	
   

  	
   

  
	
  55.

  	
   

  	
  Easement dated as of March 20, 2008 between
  Evergreen Wind Power V, LLC, and Eileen Marie Beaulieu and recorded in the
  Penobscot County Registry of Deeds in Book 11332, Page 334.

  
	
   

  	
   

  	
   

  
	
  56.

  	
   

  	
  Easement dated as of August 28, 2008 between
  Evergreen Wind Power V, LLC, and Louis M. Coiro and Patricia R. Joyce Coiro
  and recorded in the Penobscot County Registry of Deeds in Book 11531,
  Page 217.

  

 

Exhibit H-8B

 

7

 

	
  57.

  	
   

  	
  Easement
  dated as of March 26, 2008 between Evergreen Wind Power V, LLC, and
  Russell Brown and recorded in the Penobscot County Registry of Deeds in
  Book 11362, Page 184.

  
	
   

  	
   

  	
   

  
	
  58.

  	
   

  	
  Easement
  rights reserved in a Deed dated as of March 24, 2008 between Evergreen
  Wind Power V, LLC, and Louis M. Coiro and recorded in the Penobscot County
  Registry of Deeds in Book 11531, Page 220.

  
	
   

  	
   

  	
   

  
	
  59.

  	
   

  	
  Grant
  of Easements dated as of June 12, 2009 between Lakeville
  Shores, Inc. and Evergreen Wind Power V, LLC, recorded in the Washington
  County Registry of Deeds in Book 3543, Page 223.

  
	
   

  	
   

  	
   

  
	
  Crossing Agreements

  
	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Crossing
  Easement Agreement between Evergreen Wind Power V, LLC and Bangor Hydro
  Electric Company dated October 10, 2008 and recorded in the Penobscot
  County Registry of Deeds in Book 11563, Page 59.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Transmission
  Line Crossing Area Consent and Agreement between Evergreen Wind Power V, LLC
  and Bangor Hydro Electric Company dated October 10, 2008 and recorded in
  the Penobscot County Registry of Deeds in Book 11563, Page 41.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Overhead
  Wire Agreement dated May 1, 2008 between Evergreen Wind Power V, LLC,
  and Eastern Maine Railway Company and recorded in the Penobscot County
  Registry of Deeds in Book 11478, Page 169.

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Transmission
  Line Crossing Area Consent and Agreement between Evergreen Wind Power V, LLC,
  and Bangor Hydro Electric Company dated October 10, 2008 and recorded in
  the Penobscot County Registry of Deeds in Book 11563, Page 37.

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Overhead
  Wire Agreement dated May 1, 2008 between Evergreen Wind Power V, LLC,
  and Eastern Maine Railway Company and recorded in the Penobscot County
  Registry of Deeds in Book 11478, Page 166.

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Overhead
  Wire Agreement dated May 15, 2008 between Evergreen Wind Power V, LLC,
  and Maine Central Railroad Company and recorded in the Penobscot County
  Registry of Deeds in Book 11414, Page 332.

  
	
   

  	
   

  	
   

  
	
  7.

  	
   

  	
  Crossing Agreement dated June 6,
  2008 between Evergreen Wind Power V, LLC, and Eastern Maine Electric
  Cooperative, Inc. and recorded in the Penobscot County Registry of Deeds
  in Book 11420, Page 198.

  

 

Exhibit H-8B

 

8

 

	
  Access Easements

  
	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Easement
  dated July 16, 2008 between Evergreen Wind Power V, LLC and John R.
  Whitney and recorded in the Penobscot County Registry of Deeds in Book 11467,
  Page 254.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  Easement
  dated May 12, 2008 between Evergreen Wind Power V, LLC, and
  Prentiss & Carlisle Co. and recorded in the Penobscot County
  Register of Deeds in Book 11392, Page 98.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Easement
  dated May 2, 2008 between Evergreen Wind Power V, LLC, and
  Richard A. Delaite and recorded in the Penobscot County Register of
  Deeds in Book 11384, Page 323.

  
	
   

  	
   

  	
   

  
	
  Permits

  
	
   

  	
   

  	
   

  
	
  1.

  	
   

  	
  Department
  of Environmental Protection Site Order dated March 18, 2008 and filed in
  the Penobscot County Registry of Deeds in Book 11345, Page 249.

  
	
   

  	
   

  	
   

  
	
  2.

  	
   

  	
  State
  of Maine Utility Location Permits for multiple crossings all dated
  February 7, 2008 (Maine DOT Permits 51818, 51814, 51816, 51824, and
  51820.

  
	
   

  	
   

  	
   

  
	
  3.

  	
   

  	
  Town
  of Chester Utility Location Permit for crossing the Pea Ridge Road.

  
	
   

  	
   

  	
   

  
	
  4.

  	
   

  	
  Town
  of Woodville Utility Location Permit dated May 12, 2008 for crossing the
  Butterfield Ridge Road and the River Road.

  
	
   

  	
   

  	
   

  
	
  5.

  	
   

  	
  Town
  of Mattawamkeag Utility Location Permit dated May 22, 2008 for crossing
  the River Road.

  
	
   

  	
   

  	
   

  
	
  6.

  	
   

  	
  Carroll Plantation Utility
  Location Permit dated April 28, 2008 for crossing in North Road.

  

 

Exhibit H-8B

 

9

 

EXHIBIT
I

to
Financing Agreement

 

LENDERS
/ LENDING OFFICES

 

HSH Nordbank AG, New York
Branch

230 Park Avenue

New York, NY 10169

 

BNP Paribas

787 Seventh Avenue

New York, NY 10019

 

Exhibit I

 

1

 

EXHIBIT
J

to
Financing Agreement

 

SCHEDULE
OF LENDER PROPORTIONATE SHARES

 

	
  Lender

  	
   

  	
  Total Term Loan

  Commitment Proportionate

  Share

  	
   

  	
  Total Bridge

  Loan

  Commitment

  Proportionate

  Share

  	
   

  	
  Total LC

  Commitment

  Proportionate

  Share

  	
   

  	
  Amount

  	
   

  
	
  HSH Nordbank, AG, New York Branch

  	
   

  	
  50%

  	
   

  	
  50%

  	
   

  	
  0%

  	
   

  	
  $

  	
  44,816,445.58

  	
   

  
	
  BNP Paribas

  	
   

  	
  50%

  	
   

  	
  50%

  	
   

  	
  100%

  	
   

  	
  $

  	
  71,516,445.58

  	
   

  

 

Exhibit J

 

1

 

EXHIBIT
K

to
Financing Agreement

 

TERM
LOAN AMORTIZATION SCHEDULE

 

	
  Period
  Ending

  	
   

  	
  Required Balance

  	
   

  	
  Required Principal

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $

  	
  71,000,000.00

  	
   

  	
   

  	
   

  
	
  6/30/2010

  	
   

  	
  $

  	
  62,854,418.42

  	
   

  	
  $

  	
  8,145,581.58

  	
   

  
	
  12/31/2010

  	
   

  	
  $

  	
  60,335,761.24

  	
   

  	
  $

  	
  2,518,657.18

  	
   

  
	
  6/30/2011

  	
   

  	
  $

  	
  54,979,324.02

  	
   

  	
  $

  	
  5,356,437.22

  	
   

  
	
  12/31/2011

  	
   

  	
  $

  	
  52,274,910.39

  	
   

  	
  $

  	
  2,704,413.63

  	
   

  
	
  6/30/2012

  	
   

  	
  $

  	
  48,453,996.11

  	
   

  	
  $

  	
  3,820,914.28

  	
   

  
	
  12/31/2012

  	
   

  	
  $

  	
  46,834,932.14

  	
   

  	
  $

  	
  1,619,063.97

  	
   

  
	
  6/30/2013

  	
   

  	
  $

  	
  42,904,665.44

  	
   

  	
  $

  	
  3,930,266.70

  	
   

  
	
  12/31/2013

  	
   

  	
  $

  	
  41,044,938.50

  	
   

  	
  $

  	
  1,859,726.94

  	
   

  
	
  6/30/2014

  	
   

  	
  $

  	
  36,583,995.53

  	
   

  	
  $

  	
  4,460,942.97

  	
   

  
	
  12/31/2014

  	
   

  	
  $

  	
  34,606,452.94

  	
   

  	
  $

  	
  1,977,542.59

  	
   

  
	
  6/30/2015

  	
   

  	
  $

  	
  29,950,445.41

  	
   

  	
  $

  	
  4,656,007.53

  	
   

  
	
  12/31/2015

  	
   

  	
  $

  	
  27,810,463.99

  	
   

  	
  $

  	
  2,139,981.42

  	
   

  
	
  6/30/2016

  	
   

  	
  $

  	
  22,944,897.75

  	
   

  	
  $

  	
  4,865,566.24

  	
   

  
	
  12/22/2016

  	
   

  	
  $

  	
  0.00

  	
   

  	
  $

  	
  22,944,897.75

  	
   

  

 

Exhibit K

 

1

 

EXHIBIT
L-1

To Financing Agreement

FORM OF WITHHOLDING CERTIFICATE
(TREATY)

 

Date:                     

 

Stetson Holdings, LLC, as Borrower

 

Attention: 
[                                ]

 

In connection with the Financing Agreement, dated as
of December [    ], 2009 (the “Financing Agreement”),
by and among, Stetson Holdings LLC (“Borrower”),  BNP Paribas as Joint Lead Arranger, Joint
Bookrunner, Administrative Agent, Security Agent, and Issuing Bank,
and HSH Nordbank AG, New York Branch as Joint Lead Arranger, Joint
Bookrunner, Co-Syndication Agent and the certain lenders
(“Lenders”) party thereto, the undersigned hereby certifies, represents
and warrants
that                          is
a                   and
is currently exempt from, or is subject to a reduced rate of
    % in lieu of, any U.S. Federal Withholding tax
otherwise imposed on amounts paid to it from United States sources under the
Financing Agreement, by virtue of compliance with the provisions of the Income
Tax Convention between the United States
and                              .

 

The undersigned (a) is
a                     organized
under the laws of                  whose
registered business is managed or controlled in                 ,
(b) [does not have a
permanent establishment or fixed base in the United States]
[does have a
permanent establishment or fixed base in the United States, but the Financing
Agreement is not effectively connected with such permanent establishment or
fixed base], and (c) is the beneficial owner of
the interest income to be received from its share arising under the Financing
Agreement.

 

We enclose two signed copies of Form W-8BEN of
the U.S. Internal Revenue Service, certifying that the undersigned is entitled
to claim the tax treaty benefit with respect to U.S. withholding on payments
under the Financing Agreement.

 

	
   

  	
  Yours
  faithfully,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

Enclosures

Exhibit L-1

 

1

 

EXHIBIT L-2

To Financing Agreement

FORM OF WITHHOLDING
CERTIFICATE (EFFECTIVELY CONNECTED)

 

Date:                     

 

Stetson Holdings, LLC, as Borrower

 

Attention: 
[                                ]

 

In connection with the Financing Agreement, dated as of December [    ],
2009 (the “Financing Agreement”), by and among, Stetson Holdings LLC (“Borrower”),
 BNP Paribas as Joint Lead
Arranger, Joint Bookrunner, Administrative Agent, Security Agent,
and Issuing Bank, and HSH Nordbank AG, New York Branch as Joint Lead
Arranger, Joint Bookrunner, Co-Syndication Agent and the
certain lenders (“Lenders”) party thereto, the undersigned hereby
certifies, represents and warrants
that               is
entitled to exemption from withholding tax on payments to it under the
provisions of Section 1441(c)(1) or 1442 of the Internal Revenue Code
of 1986, as amended, of the United States of America, relating to income which
is effectively connected with the conduct of a trade or business within the
United States.

 

We enclose two signed copies of Form W-8ECI of the U.S. Internal
Revenue Service.

 

	
   

  	
  Yours faithfully,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

Enclosures

 

Exhibit L-2

 

1

 

EXHIBIT
L-3

To Financing Agreement

FORM OF WITHHOLDING CERTIFICATE
(PORTFOLIO INTEREST)

 

Date:                     

 

Stetson Holdings,
LLC, as Borrower

 

Attention: 
[                                ]

 

In connection with the Financing Agreement, dated as of December [    ],
2009 (the “Financing Agreement”), by and among, Stetson Holdings LLC (“Borrower”),
 BNP Paribas as Joint Lead
Arranger, Joint Bookrunner, Administrative Agent, Security Agent,
and Issuing Bank, and HSH Nordbank AG, New York Branch as Joint Lead
Arranger, Joint Bookrunner, Co-Syndication Agent and the
certain lenders (“Lenders”) party thereto, the undersigned hereby
certifies, represents and warrants that the undersigned:  (a) is a corporation organized under the
laws
of                      whose
registered business is managed or controlled in
                                      ,
(b) does not have a permanent establishment or fixed base in the United States
or otherwise conduct a trade or business in the United States to which the
Financing Agreement or income therefrom is effectively connected, (c) is
the beneficial owner of the interest income which arises from its share of the
interest income arising from the Financing Agreement, (d) does not own an
equity interest in the Borrower of 10% or more, directly or indirectly, taking
into account the ownership rules specified in Section 871(h)(3)(B) and
(C) of the Internal Revenue Code of 1986, as amended (the “Code”), (e) is
not a related party to the Borrower, taking into account the rules of Section 864(d)(4) of
the Code, and (f) is not a bank that has entered into the Financing
Agreement in the ordinary course of its trade or business within the meaning of
Section 881(c)(3)(A) of the Code.

 

We enclose two signed copies of Form W-8BEN.

 

	
   

  	
  Yours faithfully,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Exhibit L-3

 

1

 

EXHIBIT
M

 

to
Financing Agreement

 

FORM OF
SUBORDINATION AGREEMENT

 

This SUBORDINATION AGREEMENT (this “Agreement”),
dated as of
[                    ],
2009, is made by and among
[                                    ],
a
[                                      ]
(“Subordinated Creditor”), STETSON
HOLDINGS, LLC a Delaware limited liability company (“Borrower”),
and BNP PARIBAS, as Security Agent and Administrative Agent (“Agent”),
for the lenders (the “Lenders”) party to the Financing Agreement
described below.

 

A.                                   Borrower has entered into that certain
dated as of December [    ], 2009 (the “Financing
Agreement”), by and among, Stetson Holdings LLC (“Borrower”),  BNP Paribas as Joint Lead Arranger, Joint
Bookrunner, Administrative Agent, Security Agent, and Issuing Bank,
and HSH Nordbank AG, New York Branch as Joint Lead Arranger, Joint
Bookrunner, Co-Syndication Agent and the certain lenders
(“Lenders”) party thereto.  Each
capitalized term used and not otherwise defined herein shall have the meaning
assigned to such term in Exhibit A to the Financing Agreement.

 

B.                                     Subordinated Creditor and Borrower have
entered into [SUBORDINATED LOAN OR OTHER AGREEMENT] (as amended, modified and
supplemented and in effect from time to time, the “Subordinated Agreement”).

 

C.                                     The Financing Agreement permits Borrower
to incur [Subordinated Debt] (as defined in the Financing Agreement) only if
Subordinated Creditor shall execute this Agreement and shall subordinate, to
the extent and in the manner hereinafter set forth, all of the indebtedness and
other obligations of Borrower to Subordinated Creditor, including without
limitation, payment of principal, interest, fees, expenses and costs arising or
incurred under the Subordinated Agreement, direct or indirect, absolute or
contingent, due or to become due, now existing or hereafter arising by
operation of [Section [          ]
of] the Subordinated Agreement (for the purposes of this Agreement,
collectively referred to herein as the “Subordinated Obligation,” which
shall be considered Subordinated Debt), to all indebtedness or other
obligations of Borrower to Agent and the Lenders arising under the Financing
Agreement (herein called the “Obligations”) to the extent set forth in
this Agreement.

 

NOW THEREFORE, in consideration of the foregoing
premises and as an inducement to the Lenders to [continue to] grant financial
accommodations to Borrower and in consideration of the granting thereof, the
receipt and adequacy of which are hereby acknowledged, the parties to this
Agreement hereby agree as follows:

 

1.                                       Until all Obligations shall have been
paid and satisfied in full:

 

(a)                                  Borrower shall not, directly or indirectly,
make any payment of principal or interest or any other payment whatsoever on
account of, or transfer any collateral for the security of any part of, the
Subordinated Obligation until the Obligations have been indefeasible paid and
satisfied in full;

 

Exhibit M

 

1

 

(b)                                 Subordinated Creditor shall not sue for, or
demand or accept from Borrower or any other Person any such payment or
collateral, nor take any other action to enforce or collect upon any such
payment or to enforce its rights in respect of the Subordinated Obligation, nor
cancel, set off or otherwise discharge any part of the Subordinated Obligation;
and

 

(c)                                  Subordinated Creditor shall not otherwise
take any action prejudicial to or inconsistent with the Lenders’ priority
position over Subordinated Creditor created by this Agreement.

 

2.                                       The Subordinated Agreement and each
instrument evidencing the Subordinated Obligation shall bear a legend providing
that payment of the Subordinated Obligation and the priority of any lien
thereon has been subordinated to prior payment and satisfaction of the
Obligations in the manner and to the extent set forth in this Agreement, and a
copy of this Agreement shall be attached to each such instrument.

 

3.                                       Subordinated Creditor shall not commence
or join with any other creditor or creditors of Borrower in commencing any
bankruptcy, reorganization or insolvency proceedings against Borrower.  At any general meeting of creditors of
Borrower or in the event of any proceeding, voluntary or involuntary, for the
distribution, division or application of all or part of the assets of Borrower
or the proceeds thereof, whether such proceeding be for the liquidation,
dissolution or winding up of Borrower or its business, a receivership,
insolvency or bankruptcy proceeding, an assignment for the benefit of creditors
or proceeding by or against Borrower for position or extension or otherwise, if
all Obligations have not been paid and satisfied in full at the time, Agent is
hereby irrevocably authorized at any such meeting or in any such proceeding:

 

(a)                                  To enforce claims comprising the
Subordinated Obligation in the name of Subordinated Creditor, by proof of debt,
proof of claim, suit or otherwise;

 

(b)                                 To collect any assets of Borrower
distributed, divided or applied by way of dividend or payment, or such
securities issued, on account of the Subordinated Obligation and apply the
same, or the proceeds of any realization upon the same that Agent in its
discretion elects to effect, to the Obligations until all the Obligations shall
have been paid and satisfied in full (Agent hereby agreeing to render any
surplus to Subordinated Creditor);

 

(c)                                  To vote claims comprising the Subordinated
Obligation to accept or reject any plan of partial or complete liquidation,
reorganization, arrangement, composition or extension; and

 

(d)                                 To take generally any action in connection
with any such meeting or proceeding to assert, defend or support the position
of Subordinated Creditor.

 

After the
commencement of any such bankruptcy, insolvency or reorganization proceeding,
Subordinated Creditor may inquire of Agent in writing whether Agent intends to
exercise the foregoing rights with respect to the Subordinated Obligation.  Should Agent fail within a reasonable time
after receipt of such inquiry (but in any event, 

 

Exhibit M

 

2

 

no later than
thirty (30) days after receipt of such inquiry) either to file a proof of claim
with respect to the Subordinated Obligation and to furnish a copy thereof to
Subordinated Creditor, or to inform Subordinated Creditor in writing that Agent
intends to exercise its rights to assert the Subordinated Obligation in the
manner hereinabove provided, Subordinated Creditor may, but shall not be
required to, proceed to file a proof of claim with respect to the Subordinated
Obligation and take such further steps with respect thereto, not inconsistent
with this Agreement, as Subordinated Creditor may deem proper.

 

Subject to and
from and after the payment and satisfaction in full of all Obligations,
Subordinated Creditor shall be subrogated to the rights of the Lenders to
receive payments or distributions of cash, property or securities of Borrower
applicable to the Obligations until all amounts owing on the Subordinated
Obligation shall be paid in full, it being understood that the provisions of
this Agreement are and are intended solely for the purpose of defining the
relative rights of Subordinated Creditor and the Lenders.  Nothing contained in this Agreement is
intended to or shall impair, as between Borrower and its creditors other than
the Lenders and Subordinated Creditor, the obligation of Borrower, which is
absolute and unconditional, to pay to Subordinated Creditor the principal of
and the premium, if any, and the interest on the Subordinated Obligation as and
when the same shall become due and payable in accordance with its terms, or to
affect the relative rights of Subordinated Creditor and creditors of Borrower
other than the Lenders.

 

4.                                       Should any payment on account of, or
transfer of any collateral as security for any part of, the Subordinated
Obligation be received by Subordinated Creditor in violation of this Agreement,
such payment or collateral shall be delivered forthwith to Agent by the
recipient for application to the Obligations, in the form received.  Agent is irrevocably authorized to supply any
required endorsement or assignment which may have been omitted.  Until so delivered, any such payment or
collateral shall be held by Subordinated Creditor in trust for the Lenders and
shall not be commingled with other funds or property of Subordinated Creditor.

 

5.                                       Subordinated Creditor is the lawful owner
of the Subordinated Obligation and no part thereof has been assigned to or
subordinated or subjected to any other security interest in favor of anyone
other than the Lenders.  Subordinated
Creditor may not assign all or any portion of the Subordinated Obligation
without the prior written consent of the Lenders and only upon the execution
and delivery to the Lenders of an agreement by any such assignee to be bound by
the terms of this Agreement (including the provisions relating to assignment),
in form and substance reasonably satisfactory to Agent.

 

6.                                       Agent is hereby authorized to demand
specific performance of this Agreement, whether or not Borrower shall have
complied with the provisions hereof applicable to it, at any time when
Subordinated Creditor shall have failed to comply with any provision hereof
applicable to it.  Subordinated Creditor
hereby irrevocably waives any defense based on the adequacy of a remedy at law
which might be asserted as a bar to the remedy of specific performance hereof
in any action brought therefor by Agent. 
Subordinated Creditor further waives presentment, notice and protest in
connection with all negotiable instruments evidencing the Obligations or the
Subordinated Obligation to which

 

Exhibit M

 

3

 

Subordinated
Creditor may be a party, notice of the acceptance of this Agreement by Agent,
notice of any loan made, extension granted or other action taken in reliance
hereon, and all demands and notices of every kind in connection with this
Agreement, the Obligations or time of payment of the Obligations or the
Subordinated Obligation, hereby assents to any renewal, extension of
postponement of the time of payment of the Obligations or any other indulgence
with respect thereto, to any increase in the amount of the Obligations, to any
substitution, exchange or release of collateral therefor and to the addition or
release of any Person primarily or secondarily liable thereon, and assents to
the provisions of any instrument, security or other writing evidencing the
Obligations.

 

7.                                       Borrower and Subordinated Creditor shall
execute and deliver to Agent such further instruments and shall take such
further action as Agent may at any time reasonably request in order to carry
out the provisions and intent of this Agreement.

 

8.                                       The rights granted to the Lenders
hereunder are solely for their protection and nothing herein contained shall
impose on Agent or the Lenders any duties with respect to any property Borrower
or Subordinated Creditor received hereunder. 
Neither Agent nor the Lenders shall have any duty to preserve rights
against prior parties in any property of any kind received hereunder.

 

9.                                       Notwithstanding any provisions to the
contrary herein, the parties to this Agreement acknowledge and agree that all
of the covenants, representations, waivers and other provisions by or relating
to Subordinated Creditor hereunder shall apply and be effective to and in
respect of the Subordinated Obligation only, and shall not apply or be
effective to or in respect of any other obligations, due or to become due, now
existing or hereafter arising, by Borrower to Subordinated Creditor.

 

10.                                 This Agreement may be executed in any
number of counterparts, but all such counterparts shall together constitute one
agreement.  In making proof of this
Agreement, it shall not be necessary to produce or account for more than one
counterpart signed by each of the parties hereto.

 

11.                                 This Agreement is intended to take effect
as a sealed instrument, shall be binding upon Borrower, Subordinated Creditor,
and their respective executors, administrators, other legal representatives,
successors and assigns, and shall inure to the benefit of the Lenders, their
respective successors and assigns and shall be governed by the laws of the
State of New York, without reference to conflicts of laws (other than Sections
5-1401 and 5-1402 of the New York General Obligations Law).

 

12.                                 Any provision of this Agreement which is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions hereof, and any such prohibition or
unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.

 

Exhibit M

 

4

 

13.                                 This Agreement shall terminate in its
entirety upon (a) the payment and satisfaction in full of all the
Obligations or (b) the termination or payment and satisfaction in full of
all the obligations under the Subordinated Agreement.

 

14.                                 The terms of subordination set forth in
this Agreement shall continue to be effective or be reinstated, as the case may
be, if at any time any payment of any of the Obligations is rescinded or must
otherwise be returned by any of the Lenders or the Agent upon the insolvency,
bankruptcy or reorganization of Borrower or otherwise, all as though such
payment had not been made.

 

[SIGNATURES FOLLOW]

 

Exhibit M

 

5

 

IN
WITNESS WHEREOF, the parties hereto have caused this Subordination Agreement to
be duly executed as of the date first above written.

 

	
   

  	
  [SUBORDINATED CREDITOR],

  
	
   

  	
  a
  [                        ]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  BNP PARIBAS,
  as Agent

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Exhibit M

 

6

 

	
   

  	
  STETSON HOLDINGS, LLC,

  
	
   

  	
  a Delaware limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Exhibit M

 

7

 

EXHIBIT
N

 

to
Financing Agreement

 

FORM OF ASSIGNMENT AND ASSUMPTION AGREEMENT

 

This
ASSIGNMENT AND ASSUMPTION AGREEMENT, dated as of
[              ],
2009, is hereby entered into by and among
[                                            ],
a [                                  ],
as a Lender under the Financing Agreement (the “Assignor”),
[                                            ]
([the “Assignee)”] [collectively, the “Assignees)”]), and
consented to and acknowledged by Agent and Borrower (as amended, amended and
restated, supplemented or otherwise modified from time to time, this “Assignment
Agreement”).

 

W I T N E S S E T H:

 

A.    The
Assignor is party to that certain the Financing Agreement, dated as of December [    ],
2009 (the “Financing Agreement”), by and among, Stetson Holdings LLC (“Borrower”),
 BNP Paribas as Joint Lead
Arranger, Joint Bookrunner, Administrative Agent, Security Agent,
and Issuing Bank, and HSH Nordbank AG, New York Branch as Joint Lead
Arranger, Joint Bookrunner, Co-Syndication Agent and the
certain lenders (“Lenders”) party thereto.

 

B.    Pursuant to
and in accordance with Section 12.15 of the Financing Agreement, the
Assignor wishes to sell, assign and transfer to the Assignee[s], and the
Assignee[s] wish[es] to purchase and assume from the Assignor, a portion of the
Assignor’s Commitments and Loans and /or LC Commitment made thereunder under
the Financing Agreement, all on the terms and conditions of this Assignment
Agreement.

 

In consideration
of the foregoing and the mutual agreements contained herein, and for other good
and valuable consideration, the receipt and sufficiency of which are hereby
acknowledged, the parties hereto agree as follows:

 

1.                                       Definitions. 
Each capitalized term used but not defined herein shall have the meaning
assigned to that term in Exhibit A to the Financing Agreement (and the
principles of interpretation set forth Exhibit A to the Financing
Agreement shall apply to such definition and to this Assignment Agreement as if
set forth in this Assignment Agreement). 
In addition, as used herein, the following terms have the following
respective meanings:

 

Exhibit N

 

1

 

“Effective
Date” shall mean the date on which all the conditions to effectiveness set
forth in Section 4 shall have been satisfied.

 

2.                                       Assignment.

 

(a)                                  On the terms and conditions set forth
herein, and in accordance with the requirements set forth in Section 12.15
of the Financing Agreement, the Assignor hereby sells, assigns and transfers to
the Assignee[s], and the Assignee[s] hereby purchase[s] and assume[s] from the
Assignor, such interests in Assignor’s rights and obligations under the
Financing Agreement (including, without limitation, the Loans and/or LC
Commitment which are outstanding on the Effective Date) as shall be necessary
in order to give effect to the reallocations of the Commitments (and Loans
and/or LC Commitment made thereunder) (as applicable), as set forth in Schedule
I attached hereto after giving effect to the other assignments executed as
of the date hereof.  Such sale,
assignment and transfer is without recourse and, except as expressly provided
in this Assignment Agreement, without representation or warranty.

 

(b)                                 The Assignor sells, assigns and transfers
to the Assignee[s], and the Assignee[s] hereby purchase[s] and assume[s] from
the Assignor the same percentage amount of its Proportionate Shares for each of
its Commitments (and Loans and/or LC Commitment made thereunder) and [each of]
the Assignee’s percentage level of its Proportionate Shares with respect to
each of the sold, assigned or transferred Commitments (and Loans and/or LC
Commitment made thereunder) shall be the same amount.

 

(c)                                  From and after the Effective Date, (a) [each
of] the Assignee[s] shall be a party to the Financing Agreement as a “Lender”
and shall have the rights and obligations of a Lender thereunder and [each of]
the Assignee[s] agrees, for the benefit of the Assignor and Borrower, that such
Assignee will, from and after the Effective Date, perform, observe and be bound
by all of the obligations applicable to a Lender under the Financing Agreement
in respect of the interests assigned and (b) the Assignor shall, to the
extent of the interests assigned and obligations assumed hereby, relinquish its
rights and be released from its obligations under the Financing Agreement and
the other Financing Documents.

 

3.                                       Payments.  The Assignor
and the Assignee[s] agree that (a) the Assignor shall be entitled to any
payments of principal with respect to the assigned interests in Loans and/or LC
Commitment made prior to the Effective Date, together with any interest and
fees with respect to such assigned interests accruing prior to the Effective
Date, (b) the Assignee[s] shall be entitled to any payments of principal
with respect to the assigned interests made from and after the Effective Date,
together with any interest and fees with respect to the assigned interests
accruing from and after the Effective Date and (c) the Agent is authorized
and instructed to allocate payments received by it in respect of any such
principal, interest or fees for account of the Assignor and the Assignee[s] as
provided in 

 

Exhibit N

 

2

 

the foregoing clauses. 
Each party hereto agrees that it will hold any principal, interest, fees
or other amounts that it may receive to which an other party hereto shall be
entitled pursuant to the preceding sentence in trust and for account of such
other party and will pay, in like money and funds, any such amounts that it may
receive to such other party promptly upon receipt.

 

4.                                       Conditions to Effectiveness of Assignment. 
The effectiveness of the sale, assignment and transfer contemplated
pursuant to Section 2 is subject to (i) the due execution and
delivery of this Assignment Agreement by the Assignor and the Assignee[s] and (ii) receipt
by Assignor of payment from Assignee[s] of all amounts due in consideration for
the transfer and assignment provided herein.

 

5.                                       Representations, Warranties and
Disclaimers of the Assignor.

 

(a)                                  The Assignor represents and warrants to
[each of] the Assignee[s], as of the Effective Date, as follows:

 

(i)                                   the Assignor has full power and
authority, and has taken all action necessary, to execute and deliver this
Assignment Agreement and any and all other documents required or permitted to
be executed or delivered by it in connection with this Assignment Agreement and
to fulfill its obligations under, and to consummate the transactions
contemplated by, this Assignment Agreement;

 

(ii)                                this Assignment Agreement constitutes the
legal, valid and binding obligations of the Assignor enforceable against the
Assignor in accordance with its terms;

 

(iii)                             the making and performance by the
Assignor of this Assignment Agreement and any other documents required or
permitted to be executed or delivered by it in connection with this Assignment
Agreement do not and will not violate any law or regulation of the jurisdiction
of its organization or any other law or regulation applicable to it, any
provision of its charter or by-laws (or comparable constituent documents) or
any order of any court or regulatory body and will not result in the breach of,
or constitute a default, or require any consent, under any agreement,
instrument or document to which it is a party or by which it or any of its
property may be bound or affected;

 

(iv)                            all authorizations, consents, approvals,
and licenses of, all filings or registrations with and all actions by any Governmental
Authority necessary for the validity or enforceability of the obligations of
the Assignor under this Assignment Agreement have been obtained and no other
approvals or other authorizations are required in connection herewith; and

 

(v)                               the Assignor has good title to, and is
the sole legal and beneficial owner of, the interests assigned under this
Assignment Agreement, free and clear 

 

Exhibit N

 

3

 

of all adverse claims, interests, participations or other charges or
encumbrances of any nature whatsoever.

 

(b)                                 Except as expressly provided in Section 5(a),
the Assignor makes no representation or warranty as to, and shall have no
responsibility to the Assignee[s] for:

 

(i)                                   the due authorization, execution or
delivery of the Financing Agreement or any other Financing Document by Borrower
or any other Person;

 

(ii)                                the legality, validity, binding effect or
enforceability of the Financing Agreement or any other Financing Document or
any of the terms, covenants or conditions contained therein or the existence,
value, perfection or priority of any collateral security for any extension of
credit thereunder;

 

(iii)                             any representation or warranty made by,
or the accuracy, completeness, currentness or sufficiency of any information
(or the validity, completeness or adequate disclosure of assumptions underlying
any estimates, forecasts or projections contained in such information) provided
(directly or indirectly through the Assignor) by Borrower or any other Person;

 

(iv)                            the performance or observance by Borrower
or any other Person other than the Assignor (at any time, whether prior to or
after the Effective Date) of any of the provisions of the Financing Agreement
or any other Financing Document (or any of Borrower’s or such other Person’s
other obligations in connection therewith);

 

(v)                               the financial or other condition of
Borrower or any other obligor or guarantor under the Financing Agreement or any
other Financing Document (including any Affiliates); or

 

(vi)                            (except as otherwise expressly provided
herein) any other matter relating to Borrower or any other Person, the assigned
interests, the Financing Agreement or any other Financing Document.

 

6.                                       Representations, Warranties and
Agreements of the Assignee[s].

 

(a)                                  [Each of the / The] Assignee[s] hereby
represents and warrants to the Assignor, as of the Effective Date, that:

 

(i)                                   it has full power and authority, and has
taken all action necessary, to execute and deliver this Assignment Agreement
and any and all other documents required or permitted to be executed or
delivered by it in connection with this Assignment Agreement and to fulfill its
obligations under, and to consummate the transactions contemplated by, this
Assignment Agreement;

 

Exhibit N

 

4

 

(ii)                                this Assignment Agreement constitutes the
legal, valid and binding obligations of such Assignee enforceable against the
Assignee in accordance with its terms;

 

(iii)                             the making and performance by it of this
Assignment Agreement and any other documents required or permitted to be
executed or delivered by it in connection with this Assignment Agreement do not
and will not violate any law or regulation of the jurisdiction of its
organization or any other law or regulation applicable to it, any provision of
its charter or by-laws (or comparable constituent documents) or any order of
any court or regulatory body and will not result in the breach of, or
constitute a default, or require any consent, under any agreement, instrument
or document to which it is a party or by which it or any of its property may be
bound or affected;

 

(iv)                            all authorizations, consents, approvals,
and licenses of, all filings or registrations with and all actions by any
Governmental Authority necessary for the validity or enforceability of the
obligations of such Assignee under this Assignment Agreement have been obtained
and no other approvals or other authorizations are required in connection
herewith; and

 

(v)                               it has fully reviewed the terms of the
Financing Agreement and the other Financing Documents and has independently and
without reliance upon the Assignor or the Agent and based on such documents and
information as such Assignee has deemed appropriate made its own credit
analysis and decision to enter into this Assignment Agreement.

 

(b)                                 [Each of the / The] Assignee[s]:

 

(i)                                   agrees that it will, independently and
without reliance upon the Assignor or the Agent and based on such documents and
information as it shall deem appropriate at the time, continue to make its own
credit analysis and decisions in taking or not taking action under the
Financing Agreement and any other instruments or documents furnished pursuant
thereto;

 

(ii)                                appoints and authorizes the Agent on its
behalf and to exercise such powers under the Financing Agreement and other
instruments and documents furnished pursuant thereto as are delegated to the
Agent by the terms thereof, together with such powers as are reasonably
incidental thereto;

 

(iii)                             agrees to be bound by the confidentiality
provisions contained in Section 14.19 of the Financing Agreement; and

 

(iv)                            agrees that it will perform, in
accordance with the terms of the Financing Agreement, all of the obligations
that by the terms of the Financing Agreement are required to be performed by it
as a Lender.

 

Exhibit N

 

5

 

7.                                       Further Assurances. 
The Assignor and the Assignee[s] hereby agree to execute and deliver
such other instruments, and take such other action, as either party may
reasonably request in connection with the transactions contemplated by this
Assignment Agreement.

 

8.                                       Expenses.  Each party
hereto shall bear its own expenses in connection with the execution, delivery
and performance of this Assignment Agreement.

 

9.                                       Existing Note and New Notes. 
Pursuant to Section 12.15 of the Financing Agreement, Borrower
shall deliver to the Assignee[s] and the Assignor duly authorized and executed
new Notes for [each of] the Assignee[s] and the Assignor, in each case in
principal amounts reflecting their Loans and/or LC Commitment as set forth in
the “Resulting Interest” column in Schedule I, and, promptly after the
delivery by Borrower of such new Notes and the occurrence of the Effective
Date, the Assignor shall deliver to Borrower the superseded Note of the
Assignor marked “cancelled and replaced.”

 

10.                                 Miscellaneous.

 

(a)                                  Notices.  All notices
and other communications provided for herein (including, without limitation,
any modifications of, or waivers or requests under, this Assignment Agreement)
shall be given or made in writing (including, without limitation, by facsimile)
to the addresses specified in Exhibit A attached hereto or at such
other address as shall be designated by any party to this Assignment Agreement
in a written notice to the other parties hereto.

 

(b)                                 Entire Agreement. 
This Assignment Agreement and any agreement, document or instrument
attached hereto or referred to herein integrate all the terms and conditions
mentioned herein or incidental hereto and supersede all oral negotiations and
prior writings in respect to the subject matter hereof.  In the event of any conflict between the
terms, conditions and provisions of this Assignment Agreement and any such
agreement, document or instrument, the terms, conditions and provisions of this
Assignment Agreement shall prevail.

 

(c)                                  Successors and Assigns. 
This Assignment Agreement shall be binding upon and inure to the benefit
of the parties hereto and their respective successors and permitted
assigns.  The representations and
warranties and agreements made herein by the Assignee[s] are also made for the
benefit of the Agent and Borrower, and the Assignee[s] agree[s] that the Agent
and Borrower are entitled to rely upon such representations and warranties.

 

(d)                                 Amendments; Assignments. 
No party to this Assignment Agreement may amend or assign any of its
rights or obligations hereunder without the prior written consent of the other
parties hereto.

 

(e)                                  Captions.  The captions
and section headings appearing herein are included solely for convenience of
reference and are not intended to affect the interpretation of any provision of
this Assignment Agreement.

 

Exhibit N

 

6

 

(f)                                    Counterparts. 
This Assignment Agreement may be executed in any number of counterparts,
each of which shall constitute an original, but all of which, taken together,
shall constitute one and the same instrument, and each of the parties hereto
may execute this Assignment Agreement by signing any such counterpart.

 

(g)                                 GOVERNING LAW; SUBMISSION TO JURISDICTION. 
THIS ASSIGNMENT AGREEMENT, AND ANY INSTRUMENT OR AGREEMENT REQUIRED
HEREUNDER (TO THE EXTENT NOT EXPRESSLY PROVIDED FOR THEREIN), 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 SUCH STATE AND WITHOUT
REFERENCE TO CONFLICTS OF LAWS RULES THEREOF (OTHER THAN SECTIONS 5-1401 AND
5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

(h)                                 WAIVER OF JURY TRIAL. 
EACH OF THE PARTIES HERETO HEREBY KNOWINGLY, VOLUNTARILY, AND
INTENTIONALLY WAIVE, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, 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 ASSIGNMENT
AGREEMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR ANY OTHER FINANCING
DOCUMENT, OPERATIVE DOCUMENT, OR ANY COURSE OF CONDUCT, COURSE OF DEALING,
STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF THE AGENT, BORROWER OR
THE PARTIES HERETO.  THIS PROVISION IS A
MATERIAL INDUCEMENT FOR THE ASSIGNOR AND ASSIGNEE[S] TO ENTER INTO THIS
ASSIGNMENT AGREEMENT.

 

(i)                                     Consent to Jurisdiction. 
The parties hereto agree that any legal action or proceeding by or
against Borrower or with respect to or arising out of this Assignment
Agreement, the Notes or any other Financing Document may be brought in or
removed to the courts of competent jurisdiction of the State of New York
sitting in The City of New York in New York County and of the United States of
America in and for the Southern District of New York, as the Agent may
elect.  By execution and delivery of the
Assignment Agreement, the parties hereto accept, for themselves and in respect
of their property, generally and unconditionally, the jurisdiction of the
aforesaid courts.  The parties hereto
irrevocably consent to the service of process out of any of the aforementioned
courts in any such action or proceeding by the mailing of copies thereof by
registered or certified airmail, postage prepaid, to the Assignor or
Assignee[s], as the case may be, at their respective addresses for notices as
specified herein and that such service shall be effective five (5) Business
Days after such mailing.  Nothing herein
shall affect the right to serve process in any other manner permitted by law or
the right of the Assignor or [any / the] Assignee to bring legal action or
proceedings in any other competent jurisdiction, including judicial or
non-judicial foreclosure of the Mortgage Documents.  The parties hereto further agree that the
aforesaid courts of the State of New York and of the United States 

 

Exhibit N

 

7

 

of America shall have exclusive jurisdiction with
respect to any claim or counterclaim of Borrower based upon the assertion that
the rate of interest charged by the Assignor and Assignee[s] on or under this
Assignment Agreement, the Loans, the LC Commitment (if applicable) and/or the
other Financing Documents is usurious. 
The parties hereto hereby waive any right to stay or dismiss any action
or proceeding under or in connection with any or all of the Project, this
Assignment Agreement or any other Financing Document brought before the
foregoing courts on the basis of forum non-conveniens.

 

(j)                                     Severability. 
Any provision of this Assignment Agreement held to be invalid, illegal
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such invalidity, illegality or unenforceability
without affecting the validity, legality and enforceability of the remaining
provisions hereof; and the invalidity of a particular provision in a particular
jurisdiction shall not invalidate such provision in any other jurisdiction.

 

[SIGNATURES TO FOLLOW]

 

Exhibit N

 

8

 

IN WITNESS WHEREOF, the
parties hereto have caused this Assignment Agreement to be executed and
delivered by their duly authorized representatives as of the date first above
written.

 

	
   

  	
  [                                              ], as Assignor

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Exhibit N

 

9

 

	
   

  	
  [                                                        ],

  
	
   

  	
  as Assignee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  [                                                        ],

  
	
   

  	
  as Assignee

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Exhibit N

 

10

 

	
  CONSENTED
  TO AND ACKNOWLEDGED BY:

  	
   

  
	
   

  	
   

  
	
  BNP PARIBAS,

  	
   

  
	
  as Administrative Agent
  and Security Agent

  	
   

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Exhibit N

 

11

 

	
  STETSON HOLDINGS, LLC,

  	
   

  
	
  a Delaware limited
  liability company

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Exhibit N

 

12

 

SCHEDULE
I

to Assignment Agreement

 

	
   

  	
   

  	
  Previous Interests:

  	
   

  	
  Resulting Interests:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [ASSIGNOR]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  LC Commitment

  	
   

  	
  $

  	
  [                  ]

  	
   

  	
  $

  	
  [                  ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Term Loan
  Commitment

  	
   

  	
  $

  	
  [                  ]

  	
   

  	
  $

  	
  [                  ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Term Loans

  	
   

  	
  $

  	
  [                  ]

  	
   

  	
  $

  	
  [                  ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [ASSIGNEE]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  LC Commitment

  	
   

  	
  $

  	
  [                  ]

  	
   

  	
  $

  	
  [                  ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Term Loan
  Commitment

  	
   

  	
  $

  	
  [                  ]

  	
   

  	
  $

  	
  [                  ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Term Loans

  	
   

  	
  $

  	
  [                  ]

  	
   

  	
  $

  	
  [                  ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Bridge
  Loan Commitment

  	
   

  	
  $

  	
  [                  ]

  	
   

  	
  $

  	
  [                  ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [ASSIGNEE]

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  LC Commitment

  	
   

  	
  $

  	
  [                  ]

  	
   

  	
  $

  	
  [                  ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Term Loan
  Commitment

  	
   

  	
  $

  	
  [                  ]

  	
   

  	
  $

  	
  [                  ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Term Loans

  	
   

  	
  $

  	
  [                  ]

  	
   

  	
  $

  	
  [                  ]

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total Bridge
  Loan Commitment

  	
   

  	
  $

  	
  [                  ]

  	
   

  	
  $

  	
  [                  ]

  	
   

  

 

Exhibit N

 

13

 

EXHIBIT A

to Assignment Agreement

 

ADDRESS FOR NOTICES

 

[ASSIGNOR]

[ADDRESS]

Tel:
[                        ]

Fax:
[                        ]

Attn: 
[                        ]

 

 

[ASSIGNEE]

[ADDRESS]

Tel:
[                        ]

Fax:
[                        ]

Attn:  [                        ]

 

 

[ASSIGNEE]

[ADDRESS]

Tel:
[                        ]

Fax:
[                        ]

Attn: 
[                        ]

 

Exhibit N

 

14

 

EXHIBIT
O

to
Financing Agreement

 

FORM OF
O&M LC

 

(See
Tab      )

 

Exhibit O

 

1

 

EXHIBIT P

to
Financing Agreement

 

FORM OF
DEBT SERVICE RESERVE LC

 

(See
Tab      )

 

Exhibit P

 

1

 

EXHIBIT
Q-1

 

FORM OF
ENERGY HEDGE LC

 

(See
Tab      )

 

Exhibit Q-1

 

1

 

EXHIBIT
Q-2

 

FORM OF
REC CONTRACT LC

 

(See
Tab      )

 

Exhibit Q-2

 

1

 

EXHIBIT R

 

FORM OF
WORKING CAPITAL LC

 

(See
Tab      )

 

Exhibit R

 

1

 

EXHIBIT S

 

FORM OF
NOTICE OF LC ACTIVITY LC

 

 

BNP Paribas

Trade Finance Services

787 7th Avenue

Equitable Building

New York, NY  10022

(201) 850-6573: (201) 850-4021  e-mail: NYTFSTANDBY@americas.bnpparibas.com       Standby
no.         (For Bank Use)

 

APPLICATION
FOR IRREVOCABLE STANDBY LETTER OF CREDIT (Page 1 of 104)

 

If using
this form electronically, you should tab between fields or DOUBLE-click
them with your mouse.  Check boxes can be
marked by hitting your space bar.  Please
see guidelines for completing this application on page 2.

 

Subject to our
Continuing Letter of Credit Agreement, Reimbursement Agreement or other
document in connection with the reimbursement of standby letters of credit, as
the same may be amended, supplemented or otherwise modified from time to time
in accordance with its terms, (the “Agreement”) with you, please issue an
Irrevocable Standby Letter of Credit (the “Standby”) substantially as set forth
below, and:

 

                    o send
the original Standby directly to the Beneficiary

                    o send
the original Standby to the Advising Bank/Foreign Bank indicated below (for
delivery to the Beneficiary) (2)

 

by       o
cable (SWIFT/telex/cablegram)          o courier             o other:

 

o      (Local Guarantee)
Please issue your Standby in an acceptable format(3) (as
a counter guarantee) in favor of the Foreign Bank indicated below (or your
affiliated office or correspondent bank, if none indicated) and request that
they issue a local guarantee/bond/standby substantially as set forth below
and/or in the attached specimen  .  We recognize and agree that we will pay all
charges imposed by this Foreign Bank for the local guarantee/bond/standby in
addition to your own charges for the Standby that you issue even if such bank
is chosen by you and even if such bank is an affiliated office of yours.

 

Please make the Standby
subject to: o Uniform Customs and Practices for
Documentary Credits (UCP)

                                                           o
the International Standby Practices (ISP)

 

	
  Advising Bank / Foreign
  Bank (full name, address and swift address)

  	
   

  	
  Applicant
  (name & address to appear in Standby) (4)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Beneficiary (full name
  and address) of Standby or Local Guarantee(5)

  	
   

  	
  Amount, in words (U.S.
  dollars unless otherwise indicated and approved by BNP Paribas)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Expiry Date of your
  Standby (month in words, day, year)

   

  Place of Expiry of your
  Standby, if not our offices:

  
	
   

  	
   

  	
   

  
	
  Attn:

  	
   

  	
  Expiry date of Local
  Guarantee/Bond/Standby(6)  

  

 

Exhibit S

 

1

 

	
   

  	
   

  	
  (applicable only
  if Local Guarantee is required)

  

 

[Per
regulatory requirements, please provide below a general description of the
underlying transaction to enable proper classification of the Standby. This is
for bank use only and will not be part of the Standby text.]

 

The
purpose of this Standby is:

 

 

o      Format of Standby, documents required and other
instructions to be substantially per attachment(s), which form an integral part
of this application. (Note: All attachments should also be signed by the
Applicant.)

 

Payment to be
available to the Beneficiary against presentation of:

 

o  Beneficiary’s
signed and dated statement stating the amount claimed and reading as follows:

 

 

Other documents
(if any), specify issuer(s) and data content:

 

 

o                                    (Evergreen
/ auto-extension clause)  Please
include language in the Standby which causes the Expiry Date to automatically,
without amendment/notification, be extended for additional periods of                                 
( number of months) at a time unless you notify the Beneficiary (or Foreign
Bank) at least            
days prior to the then-current Expiry Date of your election not to allow
further automatic extensions.  Please
include an ultimate/final expiry date of                                               ,
and if such date is not scheduled to be the last day of any such additional
period, then unless you have given notice of your election not to allow any
further automatic extensions the final such additional period shall be for the
stub period shorter than the other additional periods and ending on such
ultimate/final expiry date (optional).

 

II.                                     ADDITIONAL CONDITIONS:

 

o Partial drawings are prohibited
(permitted if not marked)

 

o Multiple drawings are prohibited
(permitted if not marked)

 

o The Standby should be made transferable
(not transferable if not marked)

 

o All bank charges other than those of the
issuing bank are for the account of the Beneficiary (for Applicant if not
marked)

 

o Other

 

Confirmation of the
Standby:

o
not requested

o
requested

o
authorized if requested by Beneficiary

 

Original Standby to be delivered to (provide name,
address and attention party, if other than Beneficiary)(2):

 

 

Attn:

 

Exhibit S

 

2

 

We
hereby request BNP Paribas to issue and process the Standby subject to the
terms and provisions of this Application. 
We hereby confirm that all of the representations and warranties
contained in the Agreement are true and correct on the date hereof, and will be
true and correct on the date of the issuance of the Standby requested hereby,
and that no default or event of default under the Agreement has occurred or
will have occurred and be continuing on such date.  If BNP Paribas agrees that the Standby be
subject to local law in the country or state of the Beneficiary (other subject
to the laws of any other jurisdiction other than New York), then, in addition
to (and not as a limitation of) our other obligations to BNP Paribas in respect
to the Standby, we agree (in addition to our reimbursement obligations and
indemnities under the Agreement) to further reimburse you, indemnify you, and
hold you harmless from and against any and all liabilities, claims, losses,
obligations, costs or expenses (including attorney’s fees and court costs) (the
foregoing amounts are collectively referred to as “Losses”) that arise or that
you incur in connection with such choice of law, including all Losses
associated with an obligation to make payment after the stated Expiry Date of
the Standby and/or the local guarantee. 
In the event we request and you agree that the Standby, or any part
thereof, be issued in a foreign language, then we agree to indemnify you from
any and all Losses associated with errors in translation of the Standby or any
documents presented thereunder. We agree that a fax of a signed Application
shall be as binding upon us as delivery of a signed original Application.

 

 

	
  Applicant’s Name:

  	
   

  	
   

  
	
  (party
  against whose Agreement the Standby is to be issued / the obligor)(4)

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  Authorized Signature                                                  Date

  	
   

  
	
  Name (in print)

  	
   

  
	
  Phone No.:                                             Fax
  No.:

  	
   

  

 

Instructions/Notes:

(1)          If the proper arrangements have been made,
applications and inquiries may be submitted by fax or e-mail to the addresses
listed.

(2)          Once issued, a standby letter of credit cannot be
cancelled without the agreement of the Beneficiary.

(3)          If the standby letter of credit requested is to act as
a counter-guarantee in favor of another bank with a request for that bank to
issue their local guarantee/bond/standby, the counter-guarantee standby may be
payable solely against the Foreign Bank’s simple demand stating that they have
been drawn upon by the ultimate Beneficiary under the local
guarantee/bond/standby that they issued.

(4)          If permitted by
BNP Paribas, the party referred to as “Applicant” in the Standby does not have
to be the party actually applying for the Standby.  The party signing the application for the
Standby must be the party who executed the Agreement and who is responsible for
reimbursing BNP Paribas for payments. 
For the Beneficiary’s reference, someone else may be called the “Applicant”
in the Standby. Where the party to be referred to as “Applicant” in the Standby
is not the party actually applying for the Standby, please furnish to BNP
Paribas a signed consent acceptable to BNP Paribas from such party consenting
to its being referred to in the Standby as “Applicant”.

(5)          To avoid delay
in delivery to the appropriate party and enable delivery by courier/messenger,
please provide the street address of the Beneficiary and an attention
party.  If you do not wish this
information to appear in the Standby or if delivery is to be to a different
address from that in the Standby, provide delivery instructions below the
Additional Conditions section.

(6)          The expiry date
of the local guarantee/bond/standby must be at least 15 days earlier than the expiry
of the counter-guarantee Standby. Circumstances vary and longer periods may be
required in certain countries.

 

Exhibit S

 

3

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