Document:

Exhibit 10.1

 

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.

 

2009 OMNIBUS AGREEMENT

 

This
2009 OMNIBUS AGREEMENT (this “Agreement”), dated as of November 25, 2009, is
entered into by and among First Wind Energy, LLC (“FWE”), Niagara Wind Power,
LLC (“NWP”), New York Wind, LLC (“NYW”), First Wind Acquisition IV, LLC (“FW A
IV”), and First Wind Acquisition V, LLC (“FWA V”, and together with FWE, NWP,
NYW and FWA IV, collectively, or individually, as applicable, “First Wind”) on
the one hand, and Clipper Windpower, Inc. (“CWI”), Clipper Turbine Works, Inc.
(“CTW”), and Clipper Fleet Services, Inc. (“CFS” and, together with CWI and
CTW, “Clipper”) on the other hand. Each of First Wind and Clipper are sometimes
referred to hereafter as a “Party”, or collectively as the “Parties”.

 

WHEREAS,
First Wind Acquisition II, LLC entered into that certain Turbine Supply
Agreement (“Steel Winds TSA”) and Warranty Agreement (“Steel Winds Warranty
Agreement”) with CTW, each dated as of July 24, 2006, which Steel Winds TSA and
Steel Winds Warranty Agreement were assigned by First Wind Acquisition II, LLC
to Steel Winds Project LLC pursuant to that Assignment and Assumption Agreement
among First Wind Acquisition II, LLC, Steel
Winds Project LLC and CTW dated as of September 1, 2006, which Steel Winds TSA
and Steel Winds Warranty Agreement were further assigned by Steel Winds Project
LLC to NWP in connection with that certain letter dated June 1, 2007 from NWP
to Steel Winds Project LLC notifying Steel Winds Project LLC of NWP’s exercise
of its option to purchase development assets from Steel Winds Project LLC, and
CFS and First Wind O&M, LLC, as successor to UPC New York Wind O&M, LLC
(“First Wind O&M”), entered into that certain Turbine Operation,
Maintenance and Service Agreement dated as of July 24, 2006 (the “Steel Winds
O&M Agreement”, together with the Steel Winds TSA and the Steel Winds
Warranty Agreement, collectively referred to herein as the “Steel Winds Project
Documents”), all relating to the eight (8) Turbine wind project known as the “Steel
Winds Project”.

 

WHEREAS,
CTW and NYW (as successor to First Wind Acquisition III, LLC (“FWA III”)) are
parties to that certain Turbine Supply Agreement (“Cohocton TSA”) and Warranty
Agreement (“Cohocton Warranty”) relating to the fifty (50) Turbine wind project
known as the “Cohocton Project”.

 

WHEREAS,
CTW and FWA V entered into (i) that certain Turbine Supply
Agreement (“2009 TSA”) and Warranty Agreement (“2009 Warranty”) relating to the
purchase of thirty five (35) turbines, (ii) that certain Turbine Supply
Agreement (“2010 TSA”) and Warranty Agreement (“2010 Warranty”) relating to the
purchase of eighty (80) turbines, (iii) that certain Turbine Supply Agreement (“2011
TSA”) and Warranty Agreement (“2011 Warranty”) relating to the purchase of
forty (40) turbines, (iv) that certain Turbine Supply Agreement (“2012 TSA”)
and Warranty Agreement (“2012 Warranty”) relating to the purchase of fifty (50)
turbines and (v) that certain Turbine Supply Agreement (“2013 TSA”) and
Warranty Agreement (“2013 Warranty” and together with the Cohocton Warranty,
the 2009 Warranty, the 2010 Warranty, the 2011 Warranty and the 2012 Warranty,
the “Warranty Agreements”) relating to the purchase of sixty (60) turbines.

 

WHEREAS,
the Steel Winds Project Documents, the Cohocton TSA, the Warranty Agreements,
the 2009 TSA, the 2010 TSA, the 2011 TSA, the 2012 TSA, the 2013 TSA, each as
amended to date, shall be referred to herein as the “Project Documents”.

 

 

WHEREAS,
on December 31, 2007, Clipper and FWE, NWP, First Wind O&M, FWA III and FWA IV entered into that
certain Settlement and Release Agreement (the “December 2007 Agreement”), on March
24, 2008, Clipper and FWE, NWP, First Wind O&M, FWA III, FWA IV, FWA V,
Canandaigua Power Partners, LLC and Canadaigua Power Partners II, LLC entered
into that certain Agreement (the “March 2008 Agreement”), and on December 30,
2008, Clipper and FWE, NWP, FWA III, FWA IV and FWA V entered into that certain
Omnibus Agreement (the “2008 Omnibus Agreement”, and together with the December
2007 Agreement and the March 2008 Agreement, the “Settlement Agreements”).

 

WHEREAS,
the Parties desire to enter into the following agreements with respect to the
Settlement Agreements, the Project Documents and the Projects.

 

NOW,
THEREFORE, in consideration of the mutual covenants 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:

 

ARTICLE I

PAYMENTS

 

1.1           Agreements
Regarding 2009 TSA Payment Obligations.

 

(a)           2009 TSA (Hawaii
Turbines).  FWA V and CTW have been
in discussions with respect to twelve (12) Turbines (as defined in the 2009
TSA) contemplated to be delivered with respect to a First Wind project to be
located in Oahu, Hawaii (the “Hawaii Turbines”). As set forth in the new
Payment Schedule to the 2009 TSA attached hereto in Schedule I, FWA V shall,
subject to Section 3.1 herein with respect to the execution and delivery of the
***** (as defined below) into escrow, pay to CTW ***** ($*****)
on December 4, 2009 (the “Contingent Hawaii Turbine Payment”) which payment
shall be applied to the Hawaii Turbines only. Subject to Section 3.1 herein,
the balance of the payments owing with respect to the Hawaii Turbines after the
Contingent Hawaii Turbine Payment is made in the amount of ***** ($*****), plus
any amounts applicable to additional equipment options ordered by FWA V (the “Remaining
Hawaii Turbine Payments”) shall be due and payable to Clipper on March 15, 2010.

 

(b)           2009
TSA (Non-Hawaii Turbines).  With respect to
the other twenty-three (23) Turbines (as defined in the 2009 TSA) subject to
the 2009 TSA (the “Non-Hawaii Turbines”), as set forth in the new Payment
Schedule to the 2009 TSA attached hereto in Schedule I, FWA V’s next payment to
CTW in the amount of ***** ($*****) with respect to the Non-Hawaii Turbines,
shall be due on February 15, 2011.

 

1.2           2010 TSA.

 

(a)           In the event that
Clipper fails to refund to First Wind ***** ($*****) (the “Refund Amount”), if
required pursuant to Section 2.4(c) of the 2008 Omnibus Agreement, on or before
January 10, 2011 (the “Refund Default”), Clipper agrees that the Later Turbines
Payment shall be reduced by

 

2

 

the amount of the unpaid
Refund Amount, and, pursuant to Section 2.4(c) of the 2008 Omnibus Agreement,
the 2010 TSA shall terminate without any further action of the parties thereto.

 

(b)           The Payment Schedule to the 2010 TSA
is hereby amended and replaced with the new applicable Payment Schedule for the
2010 TSA as set forth in Schedule I. As set forth in
the new Payment Schedule to the 2010 TSA, FWA V’s next payment to CTW under the
2010 TSA in the amount of ***** ($*****) shall be due
on January 15, 2011.

 

1.3           Project Turbine
Availability Warranty Payments and Other Payments.

 

(a)           Steel Winds
Project.  The Parties agree that the
full amount of the Turbine Availability Warranty Payments payable by CTW to NWP
under the Steel Winds Warranty Agreement (i) for the Warranty Period Year ended
May 31, 2008 the remaining payment is ***** (the “Remaining
2008 Warranty Payment”, together with the Warranty Pre-Payment, the “2008
Warranty Payment”) and (ii) for the Warranty Period Year ended May 31, 2009 is
$***** (the “2009 Warranty Payment”). The Remaining 2008
Warranty Payment and the 2009 Warranty Payment shall be paid by CTW to NWP on March
10, 2010. In the event that such amounts are not paid by CTW to NWP, the
Parties agree that FWA V may offset such amounts against the amounts payable by
FWA V to CTW on March 15, 2010 set forth in the Payment Schedule to the 2009
TSA attached hereto in Schedule I. First Wind
acknowledges that it has received to date $***** (the “Warranty
Pre-Payment”) of the Turbine Availability Warranty Payment applicable to the
Warranty Period Year ended May 31, 2008. Furthermore, the Parties agree that
pursuant Section 1.3(b) of the 2008 Omnibus Agreement only $***** of the 2008
Warranty Payment shall be deemed to have been made for purposes of calculating
the limitations of liability with respect to the Turbine Availability Warranty
Payments and the aggregate amount of liquidated damages payable under Section 7.2
of the Steel Winds Warranty Agreement.

 

(b)           Cohocton Project.  The Parties agree that the full amount of the
Turbine Availability Warranty Payments payable by CTW to NYW under the Cohocton
Warranty for the first six months of the current Warranty Period Year is ***** ($*****) (the “First
Half Warranty Payments”). The First Half Warranty Payments, as well as any
undisputed additional Turbine Availability Warranty Payment amounts payable
under the Cohocton Warranty for the last six months of this current Warranty
Period Year, shall be paid by CTW to NYW on March 10, 2010. In the event that
such amounts are not paid by CTW to NYW, the Parties agree that FWA V may
offset such amounts against the amounts payable by FWA V to CTW on March 15, 2010
set forth in the Payment Schedule to the 2009 TSA attached hereto in Schedule I.

 

1.4           2011 TSA, 2012
TSA and 2013 TSA.

 

(a)           With respect to the ***** ($*****) in the
aggregate already paid through the date of this Agreement by FWA V under the
2011 TSA, the 2012 TSA and the 2013 TSA (the “Prior Payments”), the Parties
agree that such Prior Payments shall be re-allocated such that two-thirds of
the Prior Payments shall be allocated with respect to all forty (40) of the
Turbines under the 2011 TSA

 

3

 

and with respect to
thirty-five (35) of the Turbines under the 2012 TSA, on a pro rata basis. The
remaining one-third of the Prior Payments shall be allocated to fifteen (15)
Turbines under the 2012 TSA and to all sixty (60) Turbines under the 2013 TSA,
on pro rata basis. The Payment Schedules to the 2011 TSA, the 2012 TSA and the
2013 TSA are hereby amended and replaced with the new applicable Payment
Schedule reflecting the reallocation of payments described in this Section 1.4(a)
as set forth in Schedule I.

 

(b)           The Parties agree that upon request
from Clipper, the 2009 TSA, the 2010 TSA, the 2011 TSA, the 2012 TSA, the 2013 TSA
and the Turbine Supply Agreement relating to the sixteen (16) Turbine project
entered into between CTW and FWA IV (the “Sheffield TSA”), shall be amended (or
amended and restated, as may be agreed upon by the Parties) by removing the
commissioning and completion obligations of Clipper (and the corresponding
milestone payment obligations of First Wind) from such Project Documents and
separate commissioning services agreements, in form and substance reasonably
satisfactory to the Parties, shall be executed with respect to the applicable
Project Documents. The Purchase Price and Payment Schedules under each
applicable Project Document shall be adjusted accordingly and such prices and
payments shall be reflected in the commissioning services agreement entered
into with respect to such Project Document.

 

(c)           Subject to Section 1.2(a) above, on January
15, 2011, First Wind shall make a payment of ***** (the “Later Turbines Payment”)
to Clipper in respect of the 2011 TSA, the 2012 TSA and the 2013 TSA (collectively,
the “Later TSAs”). Such payment shall be applied pro rata to each such Project
Document as reflected in the Payment Schedules for each such Project Document
set forth in Schedule I such that two-thirds of the Later Turbines Payments
shall be allocated with respect to all forty (40) of the Turbines to be
delivered under the 2011 TSA and with respect to the first thirty-five (35) of
the Turbines under the 2012 TSA scheduled to be delivered, on a pro rata basis.
The remaining one-third of the Later Turbines Payments shall be allocated to
the last fifteen (15) Turbines to be delivered under the 2012 TSA and to all
sixty (60) Turbines to be delivered under the 2013 TSA, on a pro rata basis.

 

1.5           Turbine Payments.  Each Payment Schedule to the 2009 TSA, the 2010
TSA, the 2011 TSA, the 2012 TSA and the 2013 TSA is hereby amended and replaced
with the new applicable Payment Schedule for such Project Document set forth in
Schedule I. The payments contemplated in Schedule I are required to be made by
First Wind only upon the satisfaction of the relevant milestones and in
accordance with the terms and conditions set forth in each applicable Project
Document.

 

ARTICLE II

PROJECT DOCUMENT AND PROJECT OBLIGATIONS

 

2.1           ***** through December 31, 2010.
Notwithstanding the right of First Wind under the applicable Project Documents *****
pursuant to the terms of such Project Documents (e.g., pursuant to Section 14.6
of the 2009 TSA and Exhibit G thereto), First Wind agrees that it shall not
exercise any such rights under any Project Document on or before December 31,
2010; provided, that, the parties acknowledge and agree that this prohibition
on the exercise of rights under the applicable

 

4

 

***** provisions
under the Project Documents does not affect the parties’ remaining rights and
obligations under the applicable Project Documents.. After December 31, 2010,
First Wind shall have the right to exercise the ***** provisions set
forth in Section 14.6 or 14.7 (including the application of Exhibit G *****, as
applicable, in each applicable Project Document) taking into account the new
Delivery Schedule for the Turbines under each applicable Project Schedule set
forth in Schedule II.

 

2.2           2009 TSA.  The Delivery Schedule set forth in Exhibit L
to the 2009 TSA is hereby amended and replaced with the new Delivery Schedule
for the 2009 TSA set forth in Schedule II..

 

2.3           2010 TSA.  After December 31, 2010 and on or before January
15, 2011, First Wind shall have the right to ***** the purchase
of any Turbine pursuant to Section 14.6 
of the 2010 TSA, and no further ***** shall be
required in connection with an exercise of such *****.  In the event that First Wind does not
exercise its ***** pursuant to Section 14.6  of the 2010 TSA prior to January 15, 2011,
First Wind and Clipper shall agree upon the Delivery Schedule with respect to
the Turbines under the 2010 TSA based upon the delivery periods then available
as provided by Clipper.  Upon the
agreement between the Parties with respect to the Delivery Schedule for the
Turbines under the 2010 TSA, the milestone payment due dates in the Payment
Schedule for the 2010 TSA shall be adjusted accordingly, if required.

 

2.4           2011 TSA, 2012
TSA and 2013 TSA.

 

(a)           The Delivery
Schedule set forth in Exhibit L to each of the 2011 TSA, the 2012 TSA and the
2013 TSA is hereby amended and replaced with the new Delivery Schedule
applicable to each respective Project Document set forth in Schedule II.

 

(b)           The ***** set forth in Exhibit G to
each of the 2011 TSA, the 2012 TSA and the 2013 TSA is hereby, upon the payment
of the Later Turbines Payment (including payment of such amount taking into
account the reduction of the Refund Amount pursuant to Section 1.2(b)), amended
as follows: (i) no further ***** shall be required in connection with an
exercise of the ***** pursuant to Section 14.7 of
the applicable Later TSA up until twelve (12) months prior to the first date of
Delivery of the first Major Turbine Component (as compared to ***** for the period
between fifteen (15) and twelve (12) months prior to the first date of Delivery
of the first Major Turbine Component (as set forth in the ***** prior to this
amendment)) and (ii) no further ***** shall be required in connection with an
exercise of the ***** pursuant to Section 14.7 of
the 2011 TSA until January 15, 2011.

 

ARTICLE III

ADDITIONAL AGREEMENTS

 

3.1           Condition Precedent to Hawaii
Turbine Payments.  If a Strategic
Investment (as defined in Schedule III attached hereto) in Clipper has
not been announced by December 4, 2009, *****, CWI shall have deposited into
escrow with a

 

5

 

mutually acceptable escrow
agent (the “Escrow Agent”) the following: ***** For each day
after December 4, 2009 that the ***** has not been
placed into escrow, FWA V’s obligation *****. 
FWA V shall ***** on the day immediately following the day the ***** is placed in
escrow.  For the avoidance of doubt,
Clipper’s obligation to Deliver the Hawaii Turbines shall not be excused or
delayed as a result of Clipper’s delay in making an announcement of the
Strategic Investment or a delay in the delivery into escrow of the ***** *****, in each
case by December 4, 2009.

 

3.2           Release of *****.  The escrow agreement governing the
maintenance and release of ***** shall provide for the release of the *****
pursuant to the terms set forth on Schedule IV attached hereto (subject
to requirements of the Escrow Agent).

 

3.3           Termination of Agreement.  In the event that (a) the ***** is not
finalized and deposited with the Escrow Agent and (b) the ***** is not made, in
each case, on or before December 10, 2009, provided that Clipper has provided
written confirmation reasonably satisfactory to First Wind providing First Wind
(i) ***** and (ii) the right to defer the *****, in each
case, through December 17, 2009 (and with at least 7 days to ***** and defer *****
after the receipt of such written confirmation),*****

 

3.4           Payment Schedules and Delivery
Schedules.  The Parties agree that
the Payment Schedule and Delivery Schedule attached to this Agreement shall be
revised to be consistent with the format of such schedules (the “Revised
Schedules”) as previously set forth in the applicable Project Documents.  Clipper shall use commercially reasonable
efforts to provide to First Wind the Revised Schedules within 15 days after the
execution of this Agreement.

 

ARTICLE IV

REPRESENTATIONS AND WARRANTIES

 

4.1           Representations of all Parties.  Each Party represents and warrants to the
other Parties that (a) such Party is an organization duly organized, validly
existing and in good standing under the laws of the state of its organization
and is qualified to do business in each jurisdiction it is required to be by
applicable law, (b) the execution, delivery and performance of this Agreement
by such Party has been duly authorized by all necessary corporate or limited
liability company action, as applicable, on the part of such Party and does not
and will not require the consent of any trustee or holder of any indebtedness or
other obligation of such Party

 

6

 

or any other party to any
other agreement with such Party other than any consents already obtained, (c) this
Agreement has been duly executed and delivered by such Party and constitutes
the legal, valid and binding obligation of such Party enforceable against it in
accordance with its terms, except to the extent limited by bankruptcy,
insolvency or other similar laws relating to the rights of creditors, or by
general principles of equity, and (d) no governmental authorization, approval,
order, license, permit, franchise or consent, and no registration, declaration
or filing with any governmental authority is required on the part of such Party
in connection with the execution, delivery or performance of this Agreement.

 

ARTICLE V

MISCELLANEOUS

 

5.1           Entire Agreement; Defined Terms.  This Agreement contains the entire
understanding of the Parties relating to the subject matter hereof and
supersedes all prior written or oral and all contemporaneous oral agreements
and understandings relating to the subject matter hereof.  Any terms not otherwise defined in this
Agreement shall have the meaning as defined in the Project Documents.  Except as amended hereby, all the terms and
conditions in all Project Documents shall remain in full force and effect.  Each Party agrees to keep the terms and
provisions of this Agreement and all materials and information that each Party
receives pursuant hereto or in connection herewith in the
strictest confidence and not to disclose any of the foregoing to any party
other than the respective lenders, investors, potential lenders or investors,
attorneys, accountants, affiliates, officers and directors of each Party or as
such Party may be required by law, court order or in any litigation to
disclose.

 

5.2           No Third Party Beneficiary.  This Agreement is made for the sole benefit
of the Parties hereto and their respective successors, executors and permitted
assigns, and nothing contained herein, express or implied, is intended to or
shall confer upon any other person any third-party  beneficiary right or any other legal or
equitable rights, benefits or remedies of any nature whatsoever under or by
reason of this Agreement.

 

5.3           Governing Law.  This Agreement will be governed by and
construed and interpreted in accordance with the substantive laws of the State
of New York, without giving effect to any choice of law or conflicts of law
provision or rule that would cause the application of the laws of a jurisdiction
other than New York.

 

5.4           Neutral Construction.  The Parties hereto agree that this Agreement
was negotiated fairly between them at arms’ length and that the final terms of
this Agreement are the product of the Parties’ negotiations.  Each party represents and warrants that it
has sought and received legal counsel of its own choosing with regard to the
contents of this Agreement and the rights and obligations affected hereby.  The Parties hereto agree that this Agreement
shall be deemed to have been jointly and equally drafted by them, and that no
provisions of this Agreement should be construed against either party on the
grounds that such party drafted or was more responsible for drafting such
provision.

 

5.5           Severability.  In the event that any one or more of the
provisions or parts of a provision contained in this Agreement shall for any
reason be held to be invalid, illegal or unenforceable in any respect in any
jurisdiction, such invalidity, illegality or unenforceability

 

7

 

shall not affect any other
provision or part of a provision of this Agreement or any other jurisdiction,
but this Agreement shall be reformed and construed in any such jurisdiction as
if such invalid or illegal or unenforceable provision or part of a provision
had never been contained herein and such provision or part shall be reformed so
that it would be valid, legal and enforceable to the maximum extent permitted
in such jurisdiction, provided that any such reform or construction does
not affect the economic or legal substance of the transactions contemplated
hereby in a manner adverse to any party.

 

5.6           Heading; Construction.  The descriptive headings of the Articles and
Sections of this Agreement are inserted for convenience only and do not
constitute a part of this Agreement.

 

5.7           Expenses.  Each party shall be responsible for the
payment of its own costs and expenses (including reasonable attorneys’ fees) in
connection with the preparation, execution and delivery of this Agreement.  Nevertheless, in any action or proceeding to
enforce this Agreement, the prevailing party shall be entitled to payment of
its reasonable costs and expenses (including reasonable attorneys’ fees).

 

5.8           Counterparts.  This Agreement may be executed in one or more
counterparts for the convenience of the Parties hereto, each of which shall be
deemed an original and all of which together will constitute one and the same
instrument.  This Agreement shall be
effective upon delivery of original signature pages or facsimile or electronic
mail copies thereof.

 

5.9           Further Actions.  Upon the terms and subject to the conditions
set forth in this Agreement, the Parties hereto shall each use their respective
commercially reasonable efforts to take, or cause to be taken, all appropriate
action, and to do, or cause to be done, and to assist and cooperate with the
other Parties hereto in doing, all things necessary, proper or advisable under
applicable laws to consummate the transactions contemplated hereby.  First Wind and Clipper shall, from time to
time after the delivery and execution of this Agreement, at the request of
either Party, execute and deliver stand-alone agreements or amendments as the
requesting Party may reasonably request to evidence the agreement or agreements
made under this Agreement with respect to a particular Project Document or
particular Project Documents.  In
connection with, and promptly following the execution of, this Agreement, the
parties have agreed to execute the following stand-alone amendments: an
amendment to the Sheffield TSA and to the turbine supply agreement applicable
to the six turbines delivered for the Milford wind project and planned for
installation during 2010, to provide for separate commissioning obligations.

 

5.10         Dispute Resolution.  Any controversy, claim or dispute between the
Parties arising out of or related to this Agreement which cannot be settled
amicably by the Parties, shall be submitted for binding arbitration in
accordance with the provisions contained herein and in accordance with the
Commercial Arbitration Rules of the American Arbitration Association (“Rules”).
Judgment upon the award rendered by the arbitrator may be entered in any court
having jurisdiction.  The arbitrator
shall determine all questions of fact and law relating to any controversy,
claim or dispute hereunder, including but not limited to whether or not any
such controversy, claim or dispute is subject to the arbitration provisions
contained herein.  Any Party desiring
arbitration shall serve on the other Party and the New York Office of the
American Arbitration Association, in accordance with the Rules, its Notice of
Intent to Arbitrate (“Notice”). The Parties shall agree on an arbitrator, and
if the Parties cannot agree upon an

 

8

 

arbitrator within ten (10) days
after the date of the Notice, the arbitrator shall be selected in accordance
with the Rules. The arbitration proceedings are hereby declared to be
self-executing, and it shall not be necessary to petition a court to compel
arbitration. All arbitration proceedings shall be held in New York, New York.
The Parties agree to bear their own costs associated with any required travel
to and from New York. Notice of the demand for arbitration shall be filed in
writing with the other Party to this Agreement and with the American
Arbitration Association. The demand for arbitration shall be made within a
reasonable time after the controversy, claim or dispute has arisen, and in no
event shall it be made after the date when institution of legal or equitable
proceedings based on such claim, dispute or other matter in question would be
barred by the applicable statutes of limitations.

 

9

 

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

 

	
  CLIPPER TURBINE WORKS, INC.

  	
   

  	
  CLIPPER FLEET SERVICES, INC.

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Robert Gates

  	
   

  	
  By: 

  	
  /s/ Robert Gates

  
	
  Name: 

  	
  Robert Gates

  	
   

  	
  Name: 

  	
  Robert Gates

  
	
  Title: 

  	
  Senior Vice President

  	
   

  	
  Title: 

  	
  Senior Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  CLIPPER WINDPOWER, INC.

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Robert Gates

  	
   

  	
   

  	
   

  
	
  Name: 

  	
  Robert Gates

  	
   

  	
   

  	
   

  
	
  Title: 

  	
  Senior Vice President

  	
   

  	
   

  	
   

  

 

[Signature Page to Agreement]

 

 

	
  NEW YORK WIND, LLC

  	
   

  	
  FIRST WIND ACQUISITION IV,
  LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Michael Alvarez

  	
   

  	
  By: 

  	
  /s/ Michael Alvarez

  
	
  Name: 

  	
  Michael Alvarez

  	
   

  	
  Name: 

  	
  Michael Alvarez

  
	
  Title: 

  	
  Vice President

  	
   

  	
  Title: 

  	
  : Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  FIRST WIND ACQUISITION V, LLC

  	
   

  	
  FIRST WIND ENERGY, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By: 

  	
  /s/ Michael Alvarez

  	
   

  	
  By: 

  	
  /s/ Michael Alvarez

  
	
  Name: 

  	
  Michael Alvarez

  	
   

  	
  Name: 

  	
  Michael Alvarez

  
	
  Title: 

  	
  Vice President

  	
   

  	
  Title: 

  	
  Vice President

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  NIAGARA WIND POWER, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By: 

  	
  /s/ Michael Alvarez

  
	
   

  	
   

  	
   

  	
  Name: 

  	
  Michael Alvarez

  
	
   

  	
   

  	
   

  	
  Title: 

  	
  Vice President

  

 

[Signature Page to Agreement]

 

 

Schedule
I

 

PAYMENT
SCHEDULE

 

	
   

  	
   

  	
   

  	
   

  	
  Purchase Price

  	
   

  	
   

  	
   

  
	
  Project and Turbine Size

  	
   

  	
  # of Turbines

  	
   

  	
  (thousands)

  	
   

  	
  Notes

  	
   

  
	
  2009
  Hawaii Turbines - C96

  	
   

  	
  12

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
									

 

	
  Milestone

  	
   

  	
  Approximate

  Months prior to

  Delivery of first

  Major Turbine

  Component

  	
   

  	
  Payment Due Date

  	
   

  	
  % of

  Purchase

  Price

  	
   

  	
  Cumulative % of

  Purchase Price

  	
   

  	
  Payment Amount

  (thousands)

  	
   

  	
   

  	
   

  
	
  Down Payment

  	
   

  	
   

  	
   

  	
  December 31, 2007

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #1

  	
   

  	
   

  	
   

  	
  March 14, 2008

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #2

  	
   

  	
  12

  	
   

  	
  June 13, 2008

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #3

  	
   

  	
  6

  	
   

  	
  December 4, 2009

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #4

  	
   

  	
  6

  	
   

  	
  December 4, 2009

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Progress Payment #5

  	
   

  	
   

  	
   

  	
  March 15, 2010

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Calendar Date Payment per Section 1.1 (a) of 2009
  Omnibus Agreement

  	
   

  
	
  Progress Payment #6 - *****

  	
   

  	
   

  	
   

  	
  August 9, 2010

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due upon
  completion of milestone

  	
   

  
	
  Progress Payment #7 - *****

  	
   

  	
   

  	
   

  	
  July 5, 2010

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  *****

  	
   

  	
   

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  

 

Notes

*****

 

EXHIBIT
B2 

PAYMENT SCHEDULE

 

	
   

  	
   

  	
   

  	
   

  	
  Purchase Price

  	
   

  	
   

  	
   

  
	
  Project and Turbine Size

  	
   

  	
  # of Turbines

  	
   

  	
  (thousands)

  	
   

  	
  Notes

  	
   

  
	
  2009 Non-Hawaii Turbines - C96

  	
   

  	
  23

  	
   

  	
  $

  	
  *****

  	
   

  	
  Purchase
  Price to be adjusted by CCI as described in Exhibit B1

  	
   

  
									

 

	
  Milestone

  	
   

  	
  Approximate

  Months prior to

  Delivery of first

  Major Turbine

  Component

  	
   

  	
  Payment Due Date

  	
   

  	
  % of

  Purchase

  Price

  	
   

  	
  Cumulative % of

  Purchase Price

  	
   

  	
  Payment Amount

  (thousands)

  	
   

  	
   

  	
   

  
	
  Down Payment

  	
   

  	
   

  	
   

  	
  December 31, 2007

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #1

  	
   

  	
   

  	
   

  	
  March 14, 2008

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #2

  	
   

  	
   

  	
   

  	
  June 13, 2008

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #3 

  	
   

  	
   

  	
   

  	
  February 15, 2011 

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Calendar Date Payment per Section 1.1 (b) of
  2009 Omnibus Agreement 

  	
   

  
	
  Progress Payment #4 - *****

  	
   

  	
   

  	
   

  	
  September 19, 2011 

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone 

  	
   

  
	
  Progress Payment #5 - *****

  	
   

  	
   

  	
   

  	
  November 28, 2011 

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone 

  	
   

  
	
  Progress Payment #6 - *****

  	
   

  	
   

  	
   

  	
  January 2, 2012 

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  *****

  	
   

  	
   

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  

 

Notes

*****

 

 

PAYMENT
SCHEDULE

 

2010 TSA Turbines - C96

 

Deliveries shown in March of
following year for illustration purposes only;

Actual Delivery Schedule
subject to “*****” per Section 2.4 (b) of 2008 Omnibus Agreement:

2011A Turbines: ***** after “*****”

2012A Turbines: ***** after “*****”

2011A Turbines: ***** after “*****”

 

Delivery Schedule subject to
available Delivery periods as provided by Clipper per Section 2.3 of 2009
Omnibus Agreement; Payment Schedules to be shifted accordingly

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Purchase Price

  	
   

  	
   

  
	
  Project and Turbine Size

  	
   

  	
  # of Turbines

  	
   

  	
  (thousands)

  	
   

  	
  Notes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2011A Turbines - C96

  	
   

  	
  40

  	
   

  	
   $

  	
  *****

  	
   

  	
  Purchase Price to be adjusted by
  CCI as described in Exhibit B1

  
										

 

	
   

  	
   

  	
  Approximate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months prior to

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delivery of first

  	
   

  	
   

  	
   

  	
  % of

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Major Turbine

  	
   

  	
   

  	
   

  	
  Purchase

  	
   

  	
  Cumulative % of

  	
   

  	
  Payment Amount

  	
   

  	
   

  
	
  Milestone

  	
   

  	
  Component

  	
   

  	
  Payment Due Date

  	
   

  	
  Price

  	
   

  	
  Purchase Price

  	
   

  	
  (thousands)

  	
   

  	
   

  
	
  Down Payment

  	
   

  	
   

  	
   

  	
  Paid

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  
	
  Progress Payment #1

  	
   

  	
   

  	
   

  	
  Paid

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  
	
  Progress Payment #2

  	
   

  	
   

  	
   

  	
  Paid

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  
	
  Progress Payment #3

  	
   

  	
   

  	
   

  	
  Paid

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  
	
  Additional Credit

  	
   

  	
   

  	
   

  	
  Paid

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  
	
  Progress Payment #4

  	
   

  	
   

  	
   

  	
  January 15, 2011

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Calendar Date Payment per Section 1.2 (b) of
  2009 Omnibus Agreement

  
	
  Progress Payment #5

  	
   

  	
  6

  	
   

  	
  September 12, 2011

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due 6
  months prio to Delivery of first Major Turbine Component

  
	
  Progress Payment #6 - *****

  	
   

  	
   

  	
   

  	
  March 12, 2012 

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone; 

  Delivery of First Major Turbine Component ***** “*****” as per Section 2.4 (b) of
  2008 Omnibus Agreement 

  
	
  Progress Payment #7 - *****

  	
   

  	
   

  	
   

  	
  May 21, 2012

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone

  
	
  Progress Payment #8 - *****

  	
   

  	
   

  	
   

  	
  June 25, 2012

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  *****

  	
   

  	
   

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  

 

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  Purchase Price

  	
   

  	
   

  
	
  Project and Turbine Size

  	
   

  	
  # of Turbines

  	
   

  	
  (thousands)

  	
   

  	
  Notes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2012A Turbines - C96

  	
   

  	
  30

  	
   

  	
  $

  	
  *****

  	
   

  	
  Purchase Price to be adjusted by
  CCI as described in Exhibit B1

  
										

 

	
   

  	
   

  	
  Approximate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months prior to

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delivery of first

  	
   

  	
   

  	
   

  	
  % of

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Major Turbine

  	
   

  	
   

  	
   

  	
  Purchase

  	
   

  	
  Cumulative % of

  	
   

  	
  Payment Amount

  	
   

  	
   

  
	
  Milestone

  	
   

  	
  Component

  	
   

  	
  Payment Due Date

  	
   

  	
  Price

  	
   

  	
  Purchase Price

  	
   

  	
  (thousands)

  	
   

  	
   

  
	
  Down Payment

  	
   

  	
   

  	
   

  	
  Paid

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  
	
  Progress Payment #1

  	
   

  	
   

  	
   

  	
  Paid

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  
	
  Progress Payment #2

  	
   

  	
   

  	
   

  	
  Paid

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  
	
  Additional Credit

  	
   

  	
   

  	
   

  	
  Paid

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  
	
  Progress Payment #3

  	
   

  	
  12

  	
   

  	
  March 18, 2012

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due 12
  months prio to Delivery of first Major Turbine Component

  
	
  Progress Payment #4

  	
   

  	
  6

  	
   

  	
  September 18, 2012

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due 6
  months prio to Delivery of first Major Turbine Component

  
	
  Progress Payment #5 - *****

  	
   

  	
   

  	
   

  	
  March 18, 2013 

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone; 

  Delivery of First Major Turbine Component *****
  after “*****” as per Section 2.4 (b) of 2008 Omnibus Agreement 

  
	
  Progress Payment #7 - *****

  	
   

  	
   

  	
   

  	
  May 27, 2013

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone

  
	
  Progress Payment #7 - *****

  	
   

  	
   

  	
   

  	
  July 1, 2013

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  *****

  	
   

  	
   

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  

 

 

PAYMENT SCHEDULE

 

	
   

  	
   

  	
   

  	
   

  	
  Purchase
  Price

  	
   

  	
   

  	
   

  
	
  Project and Turbine Size

  	
   

  	
  # of Turbines

  	
   

  	
  (thousands)

  	
   

  	
  Notes

  	
   

  
	
  2013A Turbines - C96

  	
   

  	
  10

  	
   

  	
  $

  	
  *****

  	
   

  	
  Purchase
  Price to be adjusted by CCI as described in Exhibit B1

  	
   

  
									

 

	
  Milestone

  	
   

  	
  Approximate

  Months
  prior to

  Delivery
  of first

  Major
  Turbine

  Component

  	
   

  	
  Payment
  Due Date

  	
   

  	
  % of

  Purchase

  Price

  	
   

  	
  Cumulative
  % of

  Purchase
  Price

  	
   

  	
  Payment
  Amount

  (thousands)

  	
   

  	
   

  	
   

  
	
  Down Payment

  	
   

  	
   

  	
   

  	
  Paid

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #1

  	
   

  	
   

  	
   

  	
  Paid

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #2

  	
   

  	
   

  	
   

  	
  Paid

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #3 

  	
   

  	
  12

  	
   

  	
  March 17, 2013

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due 12
  months prior to Delivery of first Major Turbine Component

  	
   

  
	
  Progress Payment #4 

  	
   

  	
  6

  	
   

  	
  September 17, 2013

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due 6
  months prior to Delivery of first Major Turbine Component

  	
   

  
	
  Progress Payment #5 - *****

  	
   

  	
   

  	
   

  	
  March 17, 2014

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone; 

  Delivery of First Major Turbine Component *****
  after “*****” as per Section 2.4 (b) of 2008 Omnibus Agreement

  	
   

  
	
  Progress Payment #6 - *****

  	
   

  	
   

  	
   

  	
  May 26, 2014

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone

  	
   

  
	
  Progress Payment #7 - *****

  	
   

  	
   

  	
   

  	
  June 30, 2014

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  *****

  	
   

  	
   

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  

 

Notes

*****

 

PAYMENT SCHEDULE

 

	
   

  	
   

  	
   

  	
   

  	
  Purchase Price

  	
   

  	
   

  	
   

  
	
  Project
  and Turbine Size

  	
   

  	
  # of Turbines

  	
   

  	
  (thousands)

  	
   

  	
  Notes

  	
   

  
	
  2011 Turbines - C96

  	
   

  	
   

  	
   

  	
  10

  	
   

  	
  $

  	
  *****

  	
   

  	
  Purchase Price to be adjusted by CCI as described in
  Exhibit B1

  	
   

  
											

 

	
  Milestone

  	
   

  	
  Approximate

  Months
  prior to

  Delivery
  of first

  Major
  Turbine

  Component

  	
   

  	
  Payment
  Due Date

  	
   

  	
  % of

  Purchase

  Price

  	
   

  	
  Cumulative % of

  Purchase Price

  	
   

  	
  Payment Amount

  (thousands)

  	
   

  	
   

  	
   

  
	
  Down
  Payment

  	
   

  	
   

  	
   

  	
  Paid

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress
  Payment #1

  	
   

  	
   

  	
   

  	
  January 15,
  2011

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress
  Payment #2

  	
   

  	
   

  	
   

  	
  January 15,
  2011

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress
  Payment #3

  	
   

  	
  6

  	
   

  	
  February 28,
  2011

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress
  Payment #4 - *****

  	
   

  	
   

  	
   

  	
  August 29,
  2011

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone

  	
   

  
	
  Progress
  Payment #5 - *****

  	
   

  	
   

  	
   

  	
  November 7,
  2011

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone

  	
   

  
	
  Progress
  Payment #6 - *****

  	
   

  	
   

  	
   

  	
  December 12,
  2011

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  *****

  	
   

  	
   

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  

 

Notes

*****

 

 

	
   

  	
   

  	
   

  	
   

  	
  Purchase Price

  	
   

  	
   

  	
   

  
	
  Project and Turbine Size

  	
   

  	
  # of Turbines

  	
   

  	
  (thousands)

  	
   

  	
  Notes

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2012
  Turbines - C96

  	
   

  	
  20

  	
   

  	
  $

  	
  *****

  	
   

  	
  Purchase Price to be adjusted by
  CCI as described in Exhibit B1

  	
   

  
									

 

	
   

  	
   

  	
  Approximate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months prior to

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delivery of first

  	
   

  	
   

  	
   

  	
  % of

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Major Turbine

  	
   

  	
   

  	
   

  	
  Purchase

  	
   

  	
  Cumulative % of

  	
   

  	
  Payment Amount

  	
   

  	
   

  	
   

  
	
  Milestone

  	
   

  	
  Component

  	
   

  	
  Payment Due Date

  	
   

  	
  Price

  	
   

  	
  Purchase Price

  	
   

  	
  (thousands)

  	
   

  	
   

  	
   

  
	
  Down Payment

  	
   

  	
   

  	
   

  	
  Paid

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #1

  	
   

  	
   

  	
   

  	
  January 15, 2011

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #2

  	
   

  	
  12

  	
   

  	
  August 27, 2011

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #3

  	
   

  	
  6

  	
   

  	
  February 27, 2012

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #4 - *****

  	
   

  	
   

  	
   

  	
  August 27, 2012

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone

  	
   

  
	
  Progress Payment #5 - *****

  	
   

  	
   

  	
   

  	
  November 5, 2012

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due upon
  completion of milestone

  	
   

  
	
  Progress Payment #6 - *****

  	
   

  	
   

  	
   

  	
  December 10, 2012

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due upon
  completion of milestone

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  *****

  	
   

  	
   

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  

 

Notes

*****

*****

*****

PAYMENT SCHEDULE

 

	
   

  	
   

  	
   

  	
   

  	
  Purchase Price

  	
   

  	
   

  	
   

  
	
  Project and Turbine Size

  	
   

  	
  # of Turbines

  	
   

  	
  (thousands)

  	
   

  	
  Notes

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2013 Turbines - C96

  	
   

  	
  20

  	
   

  	
  $

  	
  *****

  	
   

  	
  Purchase
  Price to be adjusted by CCI as described in Exhibit B1

  	
   

  
									

 

	
   

  	
   

  	
  Approximate

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Months prior to

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Delivery of first

  	
   

  	
   

  	
   

  	
  % of

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Major Turbine

  	
   

  	
   

  	
   

  	
  Purchase

  	
   

  	
  Cumulative % of

  	
   

  	
  Payment Amount

  	
   

  	
   

  	
   

  
	
  Milestone

  	
   

  	
  Component

  	
   

  	
  Payment Due Date

  	
   

  	
  Price

  	
   

  	
  Purchase Price

  	
   

  	
  (thousands)

  	
   

  	
   

  	
   

  
	
  Down Payment

  	
   

  	
   

  	
   

  	
  Paid

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #1

  	
   

  	
   

  	
   

  	
  January 15, 2011

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #2

  	
   

  	
  12

  	
   

  	
  September 2, 2012

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #3

  	
   

  	
  6

  	
   

  	
  March 2, 2013

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  
	
  Progress Payment #6 - *****

  	
   

  	
   

  	
   

  	
  September 2, 2013

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due
  upon completion of milestone

  	
   

  
	
  Progress Payment #7 - *****

  	
   

  	
   

  	
   

  	
  November 11, 2013 

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due upon
  completion of milestone 

  	
   

  
	
  Progress Payment #8 - *****

  	
   

  	
   

  	
   

  	
  December 16, 2013 

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  $

  	
  *****

  	
   

  	
  Payment Due Date is estimated, actual payment due upon
  completion of milestone 

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
  Total

  	
   

  	
  *****

  	
   

  	
   

  	
   

  	
  $

  	
  *****

  	
   

  	
   

  	
   

  

 

Notes

*****

*****

*****

 

 

Schedule
II

 

Schedules
below assume standard C96, 80m tower unless by modified by Change Order

 

First Wind - 2009 Hawaii Component Availability
Schedule - 12 Turbines

 

12 total: 3 per week, weeks
23 through week 26 of 2010

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Mar-10

  	
   

  	
  April

  	
   

  	
  May

  	
   

  	
  June

  	
   

  	
  July

  	
   

  	
  August

  	
   

  	
  September

  
	
  Week #

  	
   

  	
  10

  	
   

  	
  11

  	
   

  	
  12

  	
   

  	
  13

  	
   

  	
  14

  	
   

  	
  15

  	
   

  	
  16

  	
   

  	
  17

  	
   

  	
  18

  	
   

  	
  19

  	
   

  	
  20

  	
   

  	
  21

  	
   

  	
  22

  	
   

  	
  23

  	
   

  	
  24

  	
   

  	
  25

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  	
   

  	
  31

  	
   

  	
  32

  	
   

  	
  33

  	
   

  	
  34

  	
   

  	
  35

  	
   

  	
  36

  	
   

  	
  37

  	
   

  	
  38

  	
   

  	
  39

  	
   

  	
  40

  
	
  Date

  	
   

  	
  3/1

  	
   

  	
  3/8

  	
   

  	
  3/15

  	
   

  	
  3/22

  	
   

  	
  3/29

  	
   

  	
  4/5

  	
   

  	
  4/12

  	
   

  	
  4/19

  	
   

  	
  4/26

  	
   

  	
  5/3

  	
   

  	
  5/10

  	
   

  	
  5/17

  	
   

  	
  5/24

  	
   

  	
  5/31

  	
   

  	
  6/7

  	
   

  	
  6/14

  	
   

  	
  6/21

  	
   

  	
  6/28

  	
   

  	
  7/5

  	
   

  	
  7/12

  	
   

  	
  7/19

  	
   

  	
  7/26

  	
   

  	
  8/2

  	
   

  	
  8/9

  	
   

  	
  8/16

  	
   

  	
  8/23

  	
   

  	
  8/30

  	
   

  	
  9/6

  	
   

  	
  9/13

  	
   

  	
  9/20

  	
   

  	
  9/27

  
	
  Deliveries
  per Week

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
  3

  	
   

  	
  3

  	
   

  	
  3

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

First Wind - 2009 Non-Hawaii Component Availability
Schedule - 23 Turbines

 

23 total: 3 per week, weeks
36 through week 43 of 2011

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Jun-11

  	
   

  	
  Jul-11

  	
   

  	
  Aug-11

  	
   

  	
  Sep-11

  	
   

  	
  Oct-11

  	
   

  	
  Nov-11

  	
   

  	
  Dec-11

  
	
  Week #

  	
   

  	
  23

  	
   

  	
  24

  	
   

  	
  25

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  	
   

  	
  31

  	
   

  	
  32

  	
   

  	
  33

  	
   

  	
  34

  	
   

  	
  35

  	
   

  	
  36

  	
   

  	
  37

  	
   

  	
  38

  	
   

  	
  39

  	
   

  	
  40

  	
   

  	
  41

  	
   

  	
  42

  	
   

  	
  43

  	
   

  	
  44

  	
   

  	
  45

  	
   

  	
  46

  	
   

  	
  47

  	
   

  	
  48

  	
   

  	
  49

  	
   

  	
  50

  	
   

  	
  51

  	
   

  	
  52

  	
   

  	
  53

  
	
  Date

  	
   

  	
  5/30

  	
   

  	
  6/6

  	
   

  	
  6/13

  	
   

  	
  6/20

  	
   

  	
  6/27

  	
   

  	
  7/4

  	
   

  	
  7/11

  	
   

  	
  7/18

  	
   

  	
  7/25

  	
   

  	
  8/1

  	
   

  	
  8/8

  	
   

  	
  8/15

  	
   

  	
  8/22

  	
   

  	
  8/29

  	
   

  	
  9/5

  	
   

  	
  9/12

  	
   

  	
  9/19

  	
   

  	
  9/26

  	
   

  	
  10/3

  	
   

  	
  10/10

  	
   

  	
  10/17

  	
   

  	
  10/24

  	
   

  	
  10/31

  	
   

  	
  11/7

  	
   

  	
  11/14

  	
   

  	
  11/21

  	
   

  	
  11/28

  	
   

  	
  12/5

  	
   

  	
  12/12

  	
   

  	
  12/19

  	
   

  	
  12/26

  
	
  Deliveries
  per Week

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  3

  	
   

  	
  3

  	
   

  	
  3

  	
   

  	
  3

  	
   

  	
  3

  	
   

  	
  3

  	
   

  	
  3

  	
   

  	
  2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

First Wind - 2010 deferred to 2011-2013 Component
Availability Schedule (further described in 2.4 of 2008 Omnibus Agreement) - 80
Turbines

 

2011A  Turbines - 40 Total

Delivery of First Major Turbine Component *****” as per Section 2.4
(b) of 2008 Omnibus Agreement

Subject to available Delivery periods as provided by Clipper
per Section 2.3 of 2009 Omnibus Agreement

 

2012A  Turbines - 30 Total

Delivery of First Major Turbine Component *****” as per Section 2.4
(b) of 2008 Omnibus Agreement

Subject to available Delivery periods as provided by Clipper
per Section 2.3 of 2009 Omnibus Agreement

 

2013A  Turbines - 10 Total

Delivery of First Major Turbine Component *****” as per Section 2.4
(b) of 2008 Omnibus Agreement

Subject to available Delivery periods as provided by Clipper
per Section 2.3 of 2009 Omnibus Agreement

 

First Wind - 2011 Component Availability Schedule - 10
Turbines

 

10 total; 4 per week starting
week 36 through week 38 of 2011

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Jun-11

  	
   

  	
  Jul-11

  	
   

  	
  Aug-11

  	
   

  	
  Sep-11

  	
   

  	
  Oct-11

  	
   

  	
  Nov-11

  	
   

  	
  Dec-11

  
	
  Week #

  	
   

  	
  23

  	
   

  	
  24

  	
   

  	
  25

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  	
   

  	
  31

  	
   

  	
  32

  	
   

  	
  33

  	
   

  	
  34

  	
   

  	
  35

  	
   

  	
  36

  	
   

  	
  37

  	
   

  	
  38

  	
   

  	
  39

  	
   

  	
  40

  	
   

  	
  41

  	
   

  	
  42

  	
   

  	
  43

  	
   

  	
  44

  	
   

  	
  45

  	
   

  	
  46

  	
   

  	
  47

  	
   

  	
  48

  	
   

  	
  49

  	
   

  	
  50

  	
   

  	
  51

  	
   

  	
  52

  	
   

  	
  53

  
	
  Date

  	
   

  	
  5/30

  	
   

  	
  6/6

  	
   

  	
  6/13

  	
   

  	
  6/20

  	
   

  	
  6/27

  	
   

  	
  7/4

  	
   

  	
  7/11

  	
   

  	
  7/18

  	
   

  	
  7/25

  	
   

  	
  8/1

  	
   

  	
  8/8

  	
   

  	
  8/15

  	
   

  	
  8/22

  	
   

  	
  8/29

  	
   

  	
  9/5

  	
   

  	
  9/12

  	
   

  	
  9/19

  	
   

  	
  9/26

  	
   

  	
  10/3

  	
   

  	
  10/10

  	
   

  	
  10/17

  	
   

  	
  10/24

  	
   

  	
  10/31

  	
   

  	
  11/7

  	
   

  	
  11/14

  	
   

  	
  11/21

  	
   

  	
  11/28

  	
   

  	
  12/5

  	
   

  	
  12/12

  	
   

  	
  12/19

  	
   

  	
  12/26

  
	
  Deliveries
  per Week

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

First Wind - 2012 Component Availability Schedule - 20
Turbines

 

20 total; 4 per week starting
week 36 through week 40 of 2012

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Jun-12

  	
   

  	
  Jul-12

  	
   

  	
  Aug-12

  	
   

  	
  Sep-12

  	
   

  	
  Oct-12

  	
   

  	
  Nov-12

  	
   

  	
  Dec-12

  
	
  Week #

  	
   

  	
  23

  	
   

  	
  24

  	
   

  	
  25

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  	
   

  	
  31

  	
   

  	
  32

  	
   

  	
  33

  	
   

  	
  34

  	
   

  	
  35

  	
   

  	
  36

  	
   

  	
  37

  	
   

  	
  38

  	
   

  	
  39

  	
   

  	
  40

  	
   

  	
  41

  	
   

  	
  42

  	
   

  	
  43

  	
   

  	
  44

  	
   

  	
  45

  	
   

  	
  46

  	
   

  	
  47

  	
   

  	
  48

  	
   

  	
  49

  	
   

  	
  50

  	
   

  	
  51

  	
   

  	
  52

  	
   

  	
  53

  
	
  Date

  	
   

  	
  5/28

  	
   

  	
  6/4

  	
   

  	
  6/11

  	
   

  	
  6/18

  	
   

  	
  6/25

  	
   

  	
  7/2

  	
   

  	
  7/9

  	
   

  	
  7/16

  	
   

  	
  7/23

  	
   

  	
  7/30

  	
   

  	
  8/6

  	
   

  	
  8/13

  	
   

  	
  8/20

  	
   

  	
  8/27

  	
   

  	
  9/3

  	
   

  	
  9/10

  	
   

  	
  9/17

  	
   

  	
  9/24

  	
   

  	
  10/1

  	
   

  	
  10/8

  	
   

  	
  10/15

  	
   

  	
  10/22

  	
   

  	
  10/29

  	
   

  	
  11/5

  	
   

  	
  11/12

  	
   

  	
  11/19

  	
   

  	
  11/26

  	
   

  	
  12/3

  	
   

  	
  12/10

  	
   

  	
  12/17

  	
   

  	
  12/24

  
	
  Deliveries
  per Week

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

First Wind - 2013 Component Availability Schedule - 20
Turbines

 

20 total; 4 per week starting
week 36 until week 40 of 2013

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Jun-13

  	
   

  	
  Jul-13

  	
   

  	
  Aug-13

  	
   

  	
  Sep-13

  	
   

  	
  Oct-13

  	
   

  	
  Nov-13

  	
   

  	
  Dec-13

  
	
  Week #

  	
   

  	
  23

  	
   

  	
  24

  	
   

  	
  25

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  	
   

  	
  31

  	
   

  	
  32

  	
   

  	
  33

  	
   

  	
  34

  	
   

  	
  35

  	
   

  	
  36

  	
   

  	
  37

  	
   

  	
  38

  	
   

  	
  39

  	
   

  	
  40

  	
   

  	
  41

  	
   

  	
  42

  	
   

  	
  43

  	
   

  	
  44

  	
   

  	
  45

  	
   

  	
  46

  	
   

  	
  47

  	
   

  	
  48

  	
   

  	
  49

  	
   

  	
  50

  	
   

  	
  51

  	
   

  	
  52

  	
   

  	
  53

  
	
  Date

  	
   

  	
  6/3

  	
   

  	
  6/10

  	
   

  	
  6/17

  	
   

  	
  6/24

  	
   

  	
  7/1

  	
   

  	
  7/8

  	
   

  	
  7/15

  	
   

  	
  7/22

  	
   

  	
  7/29

  	
   

  	
  8/5

  	
   

  	
  8/12

  	
   

  	
  8/19

  	
   

  	
  8/26

  	
   

  	
  9/2

  	
   

  	
  9/9

  	
   

  	
  9/16

  	
   

  	
  9/23

  	
   

  	
  9/30

  	
   

  	
  10/7

  	
   

  	
  10/14

  	
   

  	
  10/21

  	
   

  	
  10/28

  	
   

  	
  11/4

  	
   

  	
  11/11

  	
   

  	
  11/18

  	
   

  	
  11/25

  	
   

  	
  12/2

  	
   

  	
  12/9

  	
   

  	
  12/16

  	
   

  	
  12/23

  	
   

  	
  12/30

  
	
  Deliveries
  per Week

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

First Wind - 2014 Component Availability Schedule - 50
Turbines

 

50 total; 4 per week starting
week 36 through week 48 of 2014

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Jun-14

  	
   

  	
  Jul-14

  	
   

  	
  Aug-14

  	
   

  	
  Sep-14

  	
   

  	
  Oct-14

  	
   

  	
  Nov-14

  	
   

  	
  Dec-14

  
	
  Week #

  	
   

  	
  23

  	
   

  	
  24

  	
   

  	
  25

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  	
   

  	
  31

  	
   

  	
  32

  	
   

  	
  33

  	
   

  	
  34

  	
   

  	
  35

  	
   

  	
  36

  	
   

  	
  37

  	
   

  	
  38

  	
   

  	
  39

  	
   

  	
  40

  	
   

  	
  41

  	
   

  	
  42

  	
   

  	
  43

  	
   

  	
  44

  	
   

  	
  45

  	
   

  	
  46

  	
   

  	
  47

  	
   

  	
  48

  	
   

  	
  49

  	
   

  	
  50

  	
   

  	
  51

  	
   

  	
  52

  	
   

  	
  53

  
	
  Date

  	
   

  	
  6/2

  	
   

  	
  6/9

  	
   

  	
  6/16

  	
   

  	
  6/23

  	
   

  	
  6/30

  	
   

  	
  7/7

  	
   

  	
  7/14

  	
   

  	
  7/21

  	
   

  	
  7/28

  	
   

  	
  8/4

  	
   

  	
  8/11

  	
   

  	
  8/18

  	
   

  	
  8/25

  	
   

  	
  9/1

  	
   

  	
  9/8

  	
   

  	
  9/15

  	
   

  	
  9/22

  	
   

  	
  9/29

  	
   

  	
  10/6

  	
   

  	
  10/13

  	
   

  	
  10/20

  	
   

  	
  10/27

  	
   

  	
  11/3

  	
   

  	
  11/10

  	
   

  	
  11/17

  	
   

  	
  11/24

  	
   

  	
  12/1

  	
   

  	
  12/8

  	
   

  	
  12/15

  	
   

  	
  12/22

  	
   

  	
  12/29

  
	
  Deliveries
  per Week

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

First Wind - 2015 Component Availability Schedule - 50
Turbines

 

50 total; 4 per week starting
week 36 until week 48 of 2015

	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Jun-15

  	
   

  	
  Jul-15

  	
   

  	
  Aug-15

  	
   

  	
  Sep-15

  	
   

  	
  Oct-15

  	
   

  	
  Nov-15

  	
   

  	
  Dec-15

  
	
  Week #

  	
   

  	
  23

  	
   

  	
  24

  	
   

  	
  25

  	
   

  	
  26

  	
   

  	
  27

  	
   

  	
  28

  	
   

  	
  29

  	
   

  	
  30

  	
   

  	
  31

  	
   

  	
  32

  	
   

  	
  33

  	
   

  	
  34

  	
   

  	
  35

  	
   

  	
  36

  	
   

  	
  37

  	
   

  	
  38

  	
   

  	
  39

  	
   

  	
  40

  	
   

  	
  41

  	
   

  	
  42

  	
   

  	
  43

  	
   

  	
  44

  	
   

  	
  45

  	
   

  	
  46

  	
   

  	
  47

  	
   

  	
  48

  	
   

  	
  49

  	
   

  	
  50

  	
   

  	
  51

  	
   

  	
  52

  	
   

  	
  53

  
	
  Date

  	
   

  	
  6/1

  	
   

  	
  6/8

  	
   

  	
  6/15

  	
   

  	
  6/22

  	
   

  	
  6/29

  	
   

  	
  7/6

  	
   

  	
  7/13

  	
   

  	
  7/20

  	
   

  	
  7/27

  	
   

  	
  8/3

  	
   

  	
  8/10

  	
   

  	
  8/17

  	
   

  	
  8/24

  	
   

  	
  8/31

  	
   

  	
  9/7

  	
   

  	
  9/14

  	
   

  	
  9/21

  	
   

  	
  9/28

  	
   

  	
  10/5

  	
   

  	
  10/12

  	
   

  	
  10/19

  	
   

  	
  10/26

  	
   

  	
  11/2

  	
   

  	
  11/9

  	
   

  	
  11/16

  	
   

  	
  11/23

  	
   

  	
  11/30

  	
   

  	
  12/7

  	
   

  	
  12/14

  	
   

  	
  12/21

  	
   

  	
  12/28

  
	
  Deliveries
  per Week

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  4

  	
   

  	
  2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

1

 

Schedule III

Strategic Investment

 

A
“Strategic Investment” shall include any of the following:

 

*****

 

 

Schedule IV

 

Escrow Instructions

 

1.
Upon the occurrence at any time of any one of the following (collectively, the
“Release Events”), the Escrow Agent shall release the ***** and the ***** to
Clipper:

 

(a)
receipt by the Escrow Agent of an announcement by Clipper of a Strategic
Investment, or

 

(b)
confirmation received by the Escrow Agent from Clipper of Clipper’s ***** to
First Wind of at least ***** Million Dollars, or at least ***** Million Dollars
if the ***** Turbine Payments have been paid by First Wind to Clipper, of paid
components or paid purchase orders for components, or work in progress with
respect to the ***** Turbines (such ***** to be in form and substance
reasonably satisfactory to First Wind, and to provide for the use by Clipper of
all such components in connection with Clipper’s Delivery to First Wind of the *****
Turbines), or

 

(c)
(i) the payment by Clipper to the Escrow Agent of the amount of the *****
Turbine Payment, and if paid by First Wind to Clipper, the ***** Turbine
Payments (for payment to First Wind upon ***** to Clipper), (ii) confirmation
received by the Escrow Agent from Clipper of Clipper’s agreement with First
Wind to pay to First Wind any and all other amounts paid by First Wind to
Clipper for the purchase of the ***** Turbines within thirty (30) days
following the release of the ***** to Clipper (and in the event that Clipper
does not pay to First Wind the amounts contemplated in this clause (c), First
Wind shall have the right to offset such amounts under clause (ii) not
paid by Clipper against any payment obligation under any *****), and (iii) confirmation
received by the Escrow Agent from Clipper of the release by Clipper of all
obligations of First Wind related to the purchase of the ***** Turbines under
the 2009 TSA, or

 

(d)
confirmation received by the Escrow Agent from Clipper of the issuance of a
guarantee, in form and substance reasonably satisfactory to First Wind, by a
company with a BBB- (S&P) or Baa3 (Moody’s) rating in favor of First Wind
that secures the delivery of the ***** Turbines no later than 60 days following
the last delivery date applicable to the ***** Turbines as set forth in the
applicable *****.

 

(e)
confirmation received by the Escrow Agent from Clipper of the Delivery of the *****
Turbines to First Wind, or

 

(f)
confirmation received by the Escrow Agent from Clipper that payment of the *****
Turbine Payment was not made by First Wind to Clipper within five (5) calendar
days following the date that the ***** was deposited into escrow.

 

2.
If one of the Release Events has not occurred on or before December 31,
2010, the Escrow Agent shall release the ***** to First Wind. *****.

 

3.
The escrow agreement shall allow for litigation as the means of dispute
resolution with respect to any disputes thereunder.

 

 

 

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 Copy

 

TURBINE SUPPLY AGREEMENT

 

BY AND BETWEEN

 

UPC WIND ACQUISITION V, LLC

 

AND

 

CLIPPER TURBINE WORKS, INC.

 

 

TABLE OF CONTENTS

 

	
  ARTICLE 1

  	
  DEFINITIONS AND RULES OF INTERPRETATION

  	
  1

  
	
  1.1

  	
  Definitions

  	
  1

  
	
  1.2

  	
  Rules of Interpretation

  	
  1

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
  SUPPLY AND OTHER OBLIGATIONS OF SUPPLIER

  	
  2

  
	
  2.1

  	
  Supply and Commissioning Obligations

  	
  2

  
	
  2.2

  	
  Permits; Governmental Requirements

  	
  3

  
	
  2.3

  	
  Purchaser’s Right to Inspect

  	
  3

  
	
  2.4

  	
  Subcontractors

  	
  3

  
	
  2.5

  	
  Safety

  	
  4

  
	
  2.6

  	
  Independent Contractor

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
  PURCHASE PRICE AND PAYMENT

  	
  4

  
	
  3.1

  	
  Purchase Price

  	
  4

  
	
  3.2

  	
  Taxes

  	
  4

  
	
  3.3

  	
  Progress Payments

  	
  4

  
	
  3.4

  	
  Punch List Retainage

  	
  5

  
	
  3.5

  	
  Purchaser’s Credit Support

  	
  5

  
	
  3.6

  	
  Warranty Agreement

  	
  5

  
	
  3.7

  	
  Operations and Maintenance Service Agreement

  	
  5

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
  DUTIES AND OBLIGATIONS OF PURCHASER

  	
  5

  
	
  4.1

  	
  Purchaser’s Obligations

  	
  5

  
	
  4.2

  	
  Cooperation with Supplier; Purchaser’s
  Representative

  	
  7

  
	
  4.3

  	
  Permits; Governmental Requirements

  	
  7

  
	
  4.4

  	
  Safety

  	
  7

  
	
  4.5

  	
  Intellectual Property Rights: Licenses and
  Obligations

  	
  7

  
	
  4.6

  	
  Transfer

  	
  9

  
	
  4.7

  	
  Access to Information

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
  COMMENCEMENT, DELIVERY AND SHIPMENT

  	
  9

  
	
  5.1

  	
  Commencement

  	
  9

  
	
  5.2

  	
  Shipping Arrangements

  	
  10

  
	
  5.3

  	
  Delivery Schedule

  	
  10

  
	
  5.4

  	
  Designated Delivery Locations

  	
  10

  
	
  5.5

  	
  Delay Delivery Damages

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6

  	
  FINAL ASSEMBLY WORK, INSTALLATION WORK,
  COMMISSIONING WORK AND PROJECT COMPLETION

  	
  11

  
	
  6.1

  	
  Final Assembly Work and Turbine Installation

  	
  11

  
	
  6.2

  	
  Commissioning

  	
  11

  
	
  6.3

  	
  Project Completion

  	
  12

  
	
  6.4

  	
  Purchaser Delays

  	
  12

  

 

i

 

TABLE OF CONTENTS

(continued)

 

	
  ARTICLE 7

  	
  FORCE MAJEURE EVENTS

  	
  12

  
	
  7.1

  	
  Excused Performance

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8

  	
  CHANGE ORDERS

  	
  13

  
	
  8.1

  	
  Change Order

  	
  13

  
	
  8.2

  	
  Change Order Process

  	
  13

  
	
  8.3

  	
  No Change

  	
  13

  
	
  8.4

  	
  Scope Changes Caused by a Force Majeure Event

  	
  14

  
	
  8.5

  	
  Scope Changes Caused by Events within the Control of
  Purchaser

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9

  	
  LIMITATION OF LIABILITY

  	
  14

  
	
  9.1

  	
  Supplier Not Responsible for Purchaser’s Work

  	
  14

  
	
  9.2

  	
  Overall Limitation of Liability

  	
  14

  
	
  9.3

  	
  Consequential Damages

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10

  	
  TITLE AND RISK OF LOSS; INSURANCE

  	
  15

  
	
  10.1

  	
  Title to Supply Items

  	
  15

  
	
  10.2

  	
  Risk of Loss

  	
  15

  
	
  10.3

  	
  Insurance

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11

  	
  REPRESENTATIONS AND WARRANTIES OF SUPPLIER

  	
  19

  
	
  11.1

  	
  Due Organization; Good Standing

  	
  19

  
	
  11.2

  	
  Due Authorization

  	
  19

  
	
  11.3

  	
  Execution and Delivery

  	
  19

  
	
  11.4

  	
  Governmental Approvals

  	
  19

  
	
  11.5

  	
  Supply Items; Services

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12

  	
  REPRESENTATIONS AND WARRANTIES OF PURCHASER

  	
  20

  
	
  12.1

  	
  Due Organization; Good Standing; Qualified To Do
  Business

  	
  20

  
	
  12.2

  	
  Due Authorization

  	
  20

  
	
  12.3

  	
  Execution and Delivery

  	
  20

  
	
  12.4

  	
  Governmental Approvals

  	
  20

  
	
  12.5

  	
  Project Site

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13

  	
  MUTUAL INDEMNITY

  	
  21

  
	
  13.1

  	
  Mutual Indemnity

  	
  21

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14

  	
  DEFAULT; CURE; REMEDIES

  	
  21

  
	
  14.1

  	
  Default by Supplier

  	
  21

  
	
  14.2

  	
  Purchaser’s Remedies

  	
  21

  
	
  14.3

  	
  Default by Purchaser

  	
  22

  
	
  14.4

  	
  Supplier’s Remedies

  	
  22

  
	
  14.5

  	
  Cancellation Due to a Force Majeure Event

  	
  22

  
	
  14.6

  	
  Surviving Obligations

  	
  23

  

 

ii

 

TABLE OF CONTENTS

(continued)

 

	
  ARTICLE 15

  	
  DISPUTE RESOLUTION

  	
  23

  
	
  15.1

  	
  Procedure

  	
  23

  
	
  15.2

  	
  Qualifications of Arbitrators; Expenses

  	
  26

  
	
  15.3

  	
  Performance During Dispute

  	
  26

  
	
  15.4

  	
  Consolidation

  	
  26

  
	
  15.5

  	
  Language

  	
  26

  
	
   

  	
   

  	
   

  
	
  ARTICLE 16

  	
  GENERAL PROVISIONS

  	
  26

  
	
  16.1

  	
  Waiver

  	
  26

  
	
  16.2

  	
  Successors and Assigns

  	
  26

  
	
  16.3

  	
  Permitted Assignments

  	
  26

  
	
  16.4

  	
  Notices

  	
  27

  
	
  16.5

  	
  Governing Law

  	
  28

  
	
  16.6

  	
  Amendments

  	
  28

  
	
  16.7

  	
  Attachments Incorporated

  	
  28

  
	
  16.8

  	
  Entire Agreement

  	
  28

  
	
  16.9

  	
  Confidentiality

  	
  28

  
	
  16.10

  	
  Counterparts

  	
  29

  
	
  16.11

  	
  English Language Documents

  	
  29

  
	
  16.12

  	
  Severability

  	
  29

  
	
  16.13

  	
  Headings

  	
  29

  
	
  16.14

  	
  Agreement Revisions

  	
  29

  

 

iii

 

Exhibits

 

	
  Appendix I

  	
   

  	
  Definitions

  
	
  Exhibit A

  	
   

  	
  Ancillary Parts and Equipment

  
	
  Exhibit B

  	
   

  	
  Payment Schedule

  
	
  Exhibit C

  	
   

  	
  Spare Parts

  
	
  Exhibit D

  	
   

  	
  Turbine Installation Manual

  
	
  Exhibit E

  	
   

  	
  Foundation Loads Document

  
	
  Exhibit F

  	
   

  	
  Turbine Component Storage Requirements

  
	
  Exhibit G

  	
   

  	
  Termination Schedule

  
	
  Exhibit H

  	
   

  	
  Supplier’s Major Turbine Component Suppliers

  
	
  Exhibit I

  	
   

  	
  Supplier Account

  
	
  Exhibit J

  	
   

  	
  Guaranty

  
	
  Exhibit K

  	
   

  	
  Transferee Agreement and Acknowledgment

  
	
  Exhibit L

  	
   

  	
  Delivery Schedule

  
	
  Exhibit M

  	
   

  	
  Commissioning Certificate

  
	
  Exhibit N

  	
   

  	
  Project Completion Certificate

  
	
  Exhibit O

  	
   

  	
  Commissioning and Start-Up Procedures

  
	
  Exhibit P

  	
   

  	
  Final Assembly Work

  
	
  Exhibit Q

  	
   

  	
  Project Site

  
	
  Exhibit R

  	
   

  	
  Supplier Permits

  
	
  Exhibit S

  	
   

  	
  Turbine Specifications

  
	
  Exhibit T

  	
   

  	
  Completion Schedule

  
	
  Exhibit U

  	
   

  	
  SCADA System Specifications

  
	
  Exhibit V

  	
   

  	
  SCADA System Installation Manual

  

 

i

 

TURBINE SUPPLY AGREEMENT

 

THIS TURBINE SUPPLY AGREEMENT (the “Agreement” or the “Supply Agreement”)
is made and entered into and effective as of December 31, 2007 by and
between CLIPPER TURBINE WORKS, INC., a Delaware corporation (“Supplier”), and
UPC WIND ACQUISITION V, LLC, a Delaware limited liability company with a place
of business c/o UPC Wind Management, LLC, 85 Wells Ave., Suite 305,
Newton, MA 02459 (“Purchaser”). Supplier and Purchaser are sometimes referred
to, individually, as a “Party” or, collectively, as the “Parties”.

 

RECITALS

 

WHEREAS, Purchaser desires to purchase, and Supplier desires to sell
thirty five (35) Clipper Windpower 2.5 MW “C-96” series wind turbine generators
(each a “Turbine” and collectively, the “Turbines”), each consisting of the
Major Turbine Components and Ancillary Parts and Equipment (as set forth in Exhibit A
hereto). Additionally, Purchaser, in connection with its purchase of the
Turbines, desires to purchase and Supplier desires to provide the Commissioning
Work (as defined in Appendix I hereto), all on the terms and subject to
the conditions set forth herein.

 

WHEREAS, Purchaser shall incorporate the Turbines into an 87.5 MW wind
power project being developed by Purchaser to be located at a single project
site within the state of Hawaii (the “Project”).

 

NOW, THEREFORE, for good and valuable consideration, the receipt and
adequacy of which is hereby acknowledged, Supplier and Purchaser, intending to
be legally bound, hereby agree as follows:

 

AGREEMENT

 

ARTICLE 1

 

DEFINITIONS
AND RULES OF INTERPRETATION

 

1.1       Definitions. For
purposes of the Turbine Supply Documents and all schedules, exhibits and
attachments thereto, and in addition to the definitions elsewhere in this
Agreement and the other Turbine Supply Documents, the terms listed in Appendix
I hereto shall have the respective meanings assigned to such terms in Appendix
I hereto, which is incorporated herein and made a part hereof.

 

1.2       Rules of
Interpretation. In this Agreement: (a) references to Sections and to
Exhibits are, unless otherwise indicated, to Sections of and Exhibits to this
Agreement; (b) the headings to Sections and Articles of this Agreement are
for ease of reference only and shall not in any way affect its construction or
interpretation; (c) the masculine gender shall include the feminine and
neuter and the singular number shall include the plural, and vice versa, and
references to persons shall include individuals, bodies corporate,
unincorporated associations, companies and partnerships; and

 

1

 

(d) references
to Parties in this Agreement shall be deemed to include references to their
successors and permitted assigns.

 

ARTICLE 2

 

SUPPLY AND
OTHER OBLIGATIONS OF SUPPLIER

 

2.1       Supply and
Commissioning Obligations. Purchaser hereby agrees to purchase and, subject
to the terms and provisions hereof, Supplier agrees to supply and Deliver as
provided in Subsections (a) and (b) below, the Supply Items and
related Services for the Turbines. With respect to the Supply Items and related
Services, following Purchaser’s submittal to Supplier of the Down Payment, and
subject to the compliance by Purchaser with the terms hereof, Supplier agrees
to do the following respecting the Supply Items and Services:

 

(a)         supply,
pack, and Deliver, in accordance with wind industry practice and commercially
reasonable shipping carrier requirements and in an economic manner consistent
with wind industry practices, all Supply Items, the SCADA System and all
related components and parts (other than foundations, foundation bolts, pad
mount transformers and collection lines, communication lines and related
equipment to be supplied by Purchaser) necessary to install and commission wind
turbine generators in the quantity set forth above that are capable of
performing to the Turbine Specifications (the “Supply Obligations”);

 

(b)        perform
the Commissioning Work, as described in Section 6.2 below.

 

2.1.1           Failure to
Timely Deliver Down Payment. If Purchaser fails to deliver to Supplier the
Down Payment on or before the Down Payment Date, then Purchaser’s right to
purchase and Supplier’s obligation to sell and Deliver the Supply Items and
related Services shall terminate at the option of Supplier and be of no further
force or effect, provided that Supplier shall first give Purchaser five (5) days
written notice to afford Purchaser the opportunity to correct its performance.

 

2.1.2           Spare Parts.

 

(a)         During
the Warranty Period, Supplier shall maintain an inventory of spare parts at
such location and consisting of such spare parts as Supplier, in its sole
discretion, shall determine necessary for the timely operation and maintenance
of the Turbines during the Warranty Period (the “Necessary Spare Parts
Inventory”). The list of spare parts proposed by Supplier is attached hereto as
Exhibit C. It is the intention of the parties that the Necessary
Spare Parts Inventory be used and maintained during the Warranty Period in
order for Supplier to fulfill its obligations under the OMS Agreement and the
Warranty Agreement.

 

(b)        Purchaser
may purchase such additional spare parts, at Purchaser’s sole expense, and
maintain such additional spare parts on the Project Site, at Purchaser’s sole
expense; provided that such spare parts are available from Supplier without
unreasonably impacting Supplier’s production of turbines.

 

2

 

(c)         Within
six (6) months of the date of final payment by Purchaser to Supplier of
the Purchase Price, Supplier shall place into escrow with an escrow agent to be
agreed upon between the parties, subject to an escrow agreement to be agreed
between the parties, drawings (the “Spare Parts Drawings”) necessary for
Purchaser to make or have made any spare parts for the Turbines whose
manufacture are subject to intellectual property rights of Supplier. Pursuant
to the terms of the agreed upon escrow agreement, Purchaser shall be provided
access to the Spare Parts Drawings only if and when Supplier is unable to
provide necessary spare parts for the Turbines to Purchaser due to a default
under Section 14.1(i), (ii), (iii) or (iv) under this
Agreement.

 

2.1.3           SCADA System.
Purchaser shall purchase the SCADA System from Supplier (exclusive of any fiber
optic lines or other communication lines) for an amount equal to ***** Dollars ($*****). The price of the SCADA System is included
in the Purchase Price.

 

2.1.4           [Intentionally
Left Blank].

 

2.1.5           Other Items.
Supplier has provided Purchaser with: the Turbine Installation Manual, a copy
of which is set forth on Exhibit D; the Foundation Loads Document,
a copy of which is set forth on Exhibit E; and the Turbine
Component Storage Requirements, a copy of which is set forth on Exhibit F.
No later than ten (10) days prior to the anticipated Commissioning of the
first Turbine, Supplier shall provide to Purchaser the OMS Manual. Concurrently
with the execution of this Agreement, Supplier and Purchaser shall deliver to
the other Party the Warranty Agreement and the OMS Agreement, duly executed by
each Party. At Purchaser’s request and at Purchaser’s cost, within twelve (12)
months of Commissioning of the last Turbine, Supplier shall provide to
Purchaser a location specific site suitability certificate from Germanischer
Lloyd.

 

2.2       Permits; Governmental
Requirements. Supplier shall secure and pay for all Supplier Permits
required for the Delivery of the Supply Items to the Designated Delivery
Location. Purchaser shall cooperate with Supplier in obtaining the Supplier
Permits. Supplier shall have no obligation to obtain any Purchaser Permit;
provided Supplier shall cooperate with Purchaser in Purchaser’s efforts to
obtain and comply with Purchaser Permits. Supplier shall comply with all
Governmental Requirements applicable to the performance of its obligations
hereunder.

 

2.3       Purchaser’s Right to
Inspect. Supplier shall permit Purchaser, upon ten (10) days prior
written notice to Supplier, to inspect the Turbines and to visit Supplier’s
Turbine manufacturing and assembly facilities for such purpose, subject in all
cases to Supplier’s confidentiality requirements and reasonable safety
precautions, and so long as such inspection and presence does not unreasonably
interfere with or delay the completion or Delivery of the Turbines or Supplier’s
performance of its obligations hereunder.

 

2.4       Subcontractors.
Supplier may retain such Subcontractors as in Supplier’s reasonable judgment
may be necessary to complete Supplier’s duties and obligations under this
Agreement. Supplier shall be solely responsible to pay its Subcontractors and
the use of any Subcontractor shall not limit Supplier’s obligations hereunder.
The list of Supplier’s Major Turbine Component suppliers is set forth on Exhibit H.
Supplier agrees that it will not use any Major Turbine

 

3

 

Components not listed on Exhibit H.
without Purchaser’s advance written consent, such consent not to be
unreasonably withheld, conditioned or delayed.

 

2.5       Safety. Until any Supply Item has
been Delivered, Supplier shall take reasonable steps to protect each Supply
Item against damage, destruction or theft, and shall ensure that all Supplier
Insurance covering the Turbines remains in full force and effect prior to
Delivery.

 

2.6       Independent Contractor. In
performing its duties and obligations under this Agreement, Supplier shall, at
all times, act in the capacity of an independent contractor, and shall not in
any respect be deemed (or act as) an agent of Purchaser for any purpose or
reason whatsoever. Supplier shall have no responsibility for any of Purchaser’s
Work hereunder.

 

ARTICLE 3

 

PURCHASE PRICE AND PAYMENT

 

3.1       Purchase Price. For the Supply
Items, SCADA System and Services, Purchaser shall pay to Supplier ***** Dollars ($*****) (the “Purchase Price”).
Purchaser shall pay to Supplier on the date of this Agreement (the “Down
Payment Date”) a non-refundable amount equal to ***** percent (*****%) of the
Purchase Price (the “Down Payment”). All payments to be made under this
Agreement by Purchaser to Supplier shall be made in immediately available funds
to the Supplier account set forth in Exhibit I. The Purchase Price
is subject to adjustment by Change Order as provided in this Agreement.

 

3.2       Taxes. Supplier shall be
responsible for (a) all federal and state income taxes payable by Supplier
in connection with its net income, (b) all taxes in connection with the
import of any Supply Item into the United States, and (c) any business
license or fees arising in connection with Supplier’s business in any State.
Purchaser shall be responsible for all sales and use tax and any other federal,
state or local taxes imposed on the sale or use of the Supply Items and any
services provided hereunder (collectively “Taxes”).

 

3.3       Progress Payments.

 

3.3.1           The remaining amount of the Purchase
Price shall be paid by the Purchaser to the Supplier pursuant to the Payment Schedule
set forth on Exhibit B attached hereto (the “Payment Schedule”).
Upon completion of each of the milestones for the Project set forth on Exhibit B
attached hereto, the corresponding portion of the Purchase Price shall be due
and payable to Supplier as set forth on Exhibit B attached hereto
(each, a “Progress Payment”).

 

(a)       Purchaser shall pay the Down Payment and
each Progress Payment to Supplier in United States Dollars and in immediately
available funds to the account of Supplier, identified on Exhibit I.
Should Purchaser fail to make any Progress Payment when due, in addition any
other remedy available to Supplier under this Agreement, or otherwise, (i) Supplier
may enforce the Guaranty as set forth in Section 3.5 pursuant to
its terms; (ii) such overdue amount shall bear interest until paid in full
at the Default Rate, and (iii) Supplier may,

 

4

 

without prejudice to any
other rights or remedies it may have under this Agreement, stop its performance
hereunder until the overdue amount and interest thereon is paid in full.

 

(b)  Provided that Supplier has duly performed or
is reasonably performing its obligations hereunder and irrespective of any
other term of this Agreement, and provided that any delay in obtaining the
Project Completion Certificate within six (6) months after Delivery of the
last Major Turbine Component by Supplier for the Project is not caused solely
by Supplier or any of Supplier’s Affiliates or subcontractors, one hundred
percent (100%) of the Purchase Price, subject to the retention of the
applicable Punch List Retainage, shall be paid by Purchaser to Supplier no
later than six months after Delivery of the last Major Turbine Component by
Supplier for the Project.

 

3.4       Punch List Retainage. In
delivering the Project Completion Certificate as provided in Section 6.3
below hereunder, Supplier shall include an estimated cost to complete each item
of Punch List Work (200% of such estimated costs being the “Punch List
Retainage”). The Progress Payment corresponding to delivery of the Project
Completion Certificate shall be decreased by an amount, if any, which is equal
to the Punch List Retainage, and upon the completion of any item of Punch List
Work to the reasonable satisfaction of Purchaser, Purchaser shall immediately
pay Supplier the Punch List Retainage that was retained by Purchaser for such
item of Punch List Work.

 

3.5       Purchaser’s Credit Support.
Purchaser shall, concurrently with the delivery by Purchaser of the Down
Payment, deliver to Supplier a guaranty from its parent company (the “Guaranty”)
in substantially the form attached hereto as Exhibit J.

 

3.6       Warranty Agreement. The Parties
acknowledge that, concurrent with the execution of this Agreement, the Parties
shall enter into the Warranty Agreement. The cost of the first two (2) years
of warranty coverage under the Warranty Agreement is included in the Purchase
Price.

 

3.7       Operations and Maintenance Service
Agreement. Concurrent with the execution of this Agreement, Affiliates of
the Purchaser and Supplier shall execute an OMS Agreement whereby Supplier, an
Affiliate of Supplier, or a contractor designated by Supplier and approved by
Purchaser (the “Contractor”), shall provide operation and maintenance service
to the Project. Pursuant to the terms of the OMS Agreement, the cost for the
first two (2) years of OMS Services (other than Additional OMS Services)
is included in the Purchase Price.

 

ARTICLE 4

 

DUTIES AND OBLIGATIONS OF PURCHASER

 

4.1       Purchaser’s Obligations. Purchaser
agrees to perform the following, all on the terms and subject to the conditions
of this Agreement:

 

4.1.1           Payment. Purchaser shall make
the Down Payment, all Progress Payments and any other payments due Supplier
under this Agreement when due and shall be responsible for and promptly pay all
Taxes.

 

4.1.2           Purchaser’s Work. Purchaser
shall, at its sole cost and expense, be solely responsible for all work
necessary for the development, construction, completion and operation

 

5

 

of the Project (other
than the Delivery of Supply Items and the performance of the Services by
Supplier) and for the installation and operation of the Turbines, which work
(herein “Purchaser’s Work”) shall include the following:

 

(a)        Site Suitability and Access. Purchaser
shall ensure that the Project Site is suitable for installation of the Turbines
in accordance with the Turbine Specifications and Turbine Installation Manual
and shall ensure that Supplier has continuous unfettered physical access to the
Project Site during normal business hours during the performance of its
Commissioning Work;

 

(b)       Acceptance and Shipment of Supply
Items. Upon Supplier’s Delivery of any Supply Item to its respective
Designated Delivery Location, Purchaser shall, unless otherwise agreed by the
Parties, within five (5) days after notice from Supplier and at such date
and time set forth in Supplier’s notice, pick up the Supply Item at its
Designated Delivery Location, and ship, install or store such Supply Item at
the Project Site. Purchaser shall be responsible for any reasonable costs
incurred by Supplier due to Purchaser’s delay in promptly picking up and
transporting off site any Supply Item upon its Delivery within said five (5) day
period. Purchaser shall be solely responsible for shipment and insurance of
each Supply Item once picked up;

 

(c)        Storage. Purchaser shall ensure
that adequate staging, lay down and storage areas for the Supply Items are
available and maintained at the Project Site and shall store and maintain the
Supply Items pending installation in accordance with the Turbine Component
Storage Requirements set forth on Exhibit F;

 

(d)       Tower Foundations. Purchaser shall
investigate the Project Site and its soil conditions and shall design and
construct the Tower Foundations in accordance with Supplier’s Tower Foundation
Requirements;

 

(e)        Turbine and SCADA System Installation.
Purchaser shall perform the Turbine Installation Work and the installation of
the SCADA System, all in strict accordance with the Turbine Specifications, the
Turbine Installation Manual and the SCADA System Installation Manual; and shall
(i) notify Supplier of Purchaser’s proposed schedule for all such work; (ii) coordinate
such work with Supplier’s Commissioning Work for the Turbines; and (iii) complete
the Installation Work in such a manner so that a team of two technicians can
complete the Commissioning of each Turbine within a period not to exceed three
and a half (3 1/2) Business Days, without interruption or delay on a continuous
basis until all Turbines have been Commissioned;

 

(f)        Construction of Project.
Purchaser shall (i) perform the Final Assembly Work which is set forth in Exhibit P
hereto (ii) perform all civil works (including roads, grading, maintenance
facilities, meteorological towers and other items); (iii) perform all
electrical works (including collection lines, Electrical Infrastructure,
Transmission Facilities, Interconnection Facilities and other items); (iv) provide
and install a remote terminal unit and cabling to the Substation,
meteorological towers, and communications lines for the SCADA System to the
Substation; and (v) provide any other items required for the operation of
the Project; and

 

6

 

(g)       Commissioning Responsibilities.
Purchaser shall ensure that at all times during Commissioning Work, each
Turbine shall have a continuous supply of electricity from the grid, and that
Purchaser’s utility will accept electricity generated by such Turbine. During
Commissioning, Purchaser shall provide assistance, including equipment,
electricians and mechanics, as may be reasonably required by Supplier to
address any out of scope impacts on the completion of Commissioning. Purchaser
shall arrange for the provision of full grid power to each Turbine to ensure
completion of the Commissioning Work for each Turbine.

 

4.1.3           Other Items. On or before the
date that is thirty (30) days prior to the date of Delivery of the first Major
Turbine Component for the Project, Purchaser shall provide Supplier with
notification of the anticipated date that Purchaser will energize the
substation for the Project.

 

4.2       Cooperation with Supplier; Purchaser’s
Representative. Purchaser shall cooperate with Supplier and, if applicable,
shall cause its EPC Contractor and any other contractors engaged by Purchaser
with respect to the Project (herein, “Purchaser’s Contractors”), to cooperate
with Supplier, all in connection with Supplier’s performance of its obligations
hereunder. Purchaser shall promptly provide Supplier with a schedule of the
names and contact information for all of Purchaser’s Contractors and shall
update such schedule periodically. Purchaser designates Scott Rowland as its
representative (“Purchaser’s Representative”) in dealing with Supplier with
respect to this Agreement.

 

4.3       Permits; Governmental Requirements.
Purchaser shall secure and pay for all Purchaser Permits, including any permits
required for the delivery of Supply Items from the Designated Delivery Location
to the Project Site. Supplier shall cooperate with Purchaser in obtaining
Purchaser’s Permits. Purchaser shall have no obligation to obtain any Supplier
Permit; provided that, Purchaser shall cooperate with Supplier in Supplier’s
efforts to obtain Supplier Permits. Purchaser shall comply with all
Governmental Requirements applicable to the performance of Purchaser’s Work.

 

4.4       Safety. Upon Delivery of any
Supply Item to its Designated Delivery Location, Purchaser shall take
reasonable steps, and shall ensure that the EPC Contractor and the Purchaser’s
Contractors take reasonable steps, to protect any such Supply Item against
damage or theft.

 

4.5       Intellectual Property Rights: Licenses
and Obligations.

 

4.5.1           Patents. Supplier hereby
grants to Purchaser under Supplier’s patent rights, only the non-exclusive
right to use the Supply Items provided to Purchaser under this Agreement.
Supplier expressly reserves all other patent rights, including, without
limitation, the right to make, use, sell, offer for sale and import other
products identical to or similar to the Supply Items. Other than the rights
granted herein with respect to the Supply Items, Supplier expressly reserves
all other patent rights, and Purchaser shall not have the right under Supplier’s
patent rights to make, use, sell, offer for sale, or import any products or
methods that infringe Supplier’s patents or to sublicense any of the foregoing
rights.

 

7

 

4.5.2           Trade Secrets. Purchaser
acknowledges that the technical, operation and maintenance, and other
information it receives in connection with the Supply Items (including, without
limitation, any and all firmware, software, Turbine Specifications, SCADA
System Specifications, installation and operation and maintenance procedures,
know-how and similar items) constitute trade secret information that is
proprietary to Supplier. Supplier hereby grants to Purchaser under Supplier’s
trade secret rights, the non-exclusive right to use such trade secrets only in
the installation and operation and maintenance of the Supply Items. Supplier
further grants to Purchaser under Supplier’s trade secret rights, the
non-exclusive right to disclose such trade secrets to a third party only as
necessary for the financing, installation and operation and maintenance of the
Supply Items provided such third party executes a written agreement obligating
it to maintain the confidentiality of the trade secret information and to
return all copies of such trade secret information received and prohibiting
reverse engineering, disassembly, and decompilation of any of the trade secret
information. Other than the rights granted herein with respect to the Supply
Items, Supplier expressly reserves all other trade secret rights. Purchaser
agrees to maintain all such trade secret information in strict confidence and
shall not disclose such trade secret information to any third party except in
accordance with this Section 4.5.2. The obligations of
confidentiality herein shall survive termination or expiration of this
Agreement.

 

4.5.3           Copyrights. Purchaser
acknowledges that the technical, operation and maintenance, and other
information it receives in connection with the Supply Items (including, without
limitation, any and all firmware, software, Turbine Specifications, SCADA
System Specifications, installation and operation and maintenance procedures,
descriptions of know-how and similar written items) constitute copyrightable
material. Supplier hereby grants to Purchaser under Supplier’s copyrights, the
non-exclusive right to copy and use such copyrighted materials only in the
installation and operation and maintenance of the Supply Items. Supplier
further grants to Purchaser under Supplier’s copyrights, the non-exclusive
right to copy the copyrightable materials and distribute such to a third party
only as necessary for the installation and operation and maintenance of the
Supply Items, provided such third party executes a written agreement obligating
it to return all copies of such copyrightable materials received, prohibiting
any further copying or distribution of such copyrightable materials, and
prohibiting reverse engineering, disassembly and decompilation of any of the
copyrightable materials. Other than the rights granted herein with respect to
the Supply Items, Supplier expressly reserves all other copyright rights.
Purchaser shall not have the right to sublicense any of the Supplier’s
copyright rights or the right to create derivative works of any of the
copyrightable materials. Purchaser shall not reverse engineer, disassemble or
decompile any of the copyrightable materials.

 

4.5.4           Trademarks and Service Marks.
Purchaser shall not have any rights in any trademarks or service marks, whether
registered or not, that are owned or controlled by Supplier. Purchaser shall
not utilize any trademark or service mark that is substantially similar to any
trademarks or service marks owned or controlled by Supplier. Purchaser may
reference only those trademarks or service marks owned by Supplier in its
written materials; provided that, such reference clearly denotes that such is a
trademark or service mark and is owned by Supplier.

 

4.5.5           Transfer of Title in Supply Items.
Should Purchaser transfer title in any of the Supply Items to a third party,
the licenses provided in this Section 4.5 shall run with such
Supply Items, provided such third party executes a Transferee Agreement and
Acknowledgment, in the form attached hereto as Exhibit K,
acknowledging Supplier’s ownership in the respective

 

8

 

Intellectual Property
Rights and obligating itself to all of the same prohibitions and restrictions
with respect to Supplier’s Intellectual Property Rights described in this Section 4.5.
Purchaser acknowledges that the Supply Items may be subject to the export
control laws and regulations of the United States of America and agrees to
comply with all such laws and regulations regarding any export of any of the
Supply Items.

 

4.5.6           Ownership and Injunctive Relief.
All Intellectual Property Rights owned or controlled by Supplier shall remain
the exclusive property of Supplier and nothing herein shall be construed as a
sale, lease, loan, or transfer of any of such Intellectual Property Rights.
Purchaser shall derive no rights, title or interest therein except as expressly
set forth in this Agreement. Any technical information concerning the Supply
Items that Purchaser acquires or develops in connection with the ownership or
operation of the Turbines shall be the property of Supplier. Further, Purchaser
acknowledges that a breach of the confidentiality provisions in this Agreement
may cause Supplier irreparable harm and damage that may not be recoverable at
law and that Purchaser shall be entitled to obtain injunctive relief in
addition to any other rights or remedies Purchaser may have.

 

4.5.7           Government Rights. Any and all
computer software and related documentation provided as part of the Supply
Items are “commercial items” as that term is defined at 48 C.F.R. 2.01 (October 1995)
comprising “commercial computer software” and “commercial computer software
documentation” as used in 48 C.F.R. 12.212 (September 1995) and other
applicable acquisition regulations and are provided to the U.S. Government only
as a commercial item and subject to the terms and conditions and all
restrictions set forth in this Agreement as applicable to such computer
software and related documentation. Consistent with 48 C.F.R. 12.212 and 48
C.F.R. 227.7202 (June 1995), all U.S. Government users and licensees
acquire the software and its related documentation with only those rights
applicable to such software and related documentation as set forth in this Section 4.5.

 

4.6       Transfer. Purchaser covenants and
agrees that it will not sell, lease or otherwise transfer the Turbines or any
part thereof unless Purchaser first obtains and delivers to Supplier a
Transferee Agreement and Acknowledgment, executed by the proposed transferee.
Notwithstanding anything else contained herein, Purchaser may assign in whole
or in part its rights under this Agreement to an Affiliate upon notice to
Supplier.

 

4.7       Access to Information. From the
date of this Agreement through the end of the fifteenth (15th) year after
Project Completion, Purchaser shall provide to Supplier prompt access to all
technical, operational and maintenance and other information it receives or
collects in connection with its operating the Turbines. The collection of all
such data shall be at the reasonable expense of Supplier. All information provided
by Purchaser hereunder shall be subject to the provisions of Section 16.9.

 

ARTICLE 5

 

COMMENCEMENT, DELIVERY AND SHIPMENT

 

5.1       Commencement. Subject to Section 2.1.1,
Supplier shall commence performance of its obligations under this Agreement on
the Down Payment Date. In addition to Supplier’s other

 

9

 

rights and remedies
hereunder, if any payment due under this Agreement is not timely made by
Purchaser, the delinquent payment amount shall accrue interest at the Default
Rate.

 

5.2       Shipping Arrangements. All Supply
Items shall be delivered Ex Works at the Designated Delivery Locations. For
purposes of this Agreement, each individual Supply Item and the SCADA System
shall be deemed “Delivered” and Supplier shall have satisfied its delivery
arrangements with respect thereto, when Supplier makes available such Supply
Item and SCADA System at its Designated Delivery Location for pick up by
Purchaser, provided however, that Purchaser may not take custody and control of
the said Supply Item until the applicable Progress Payment has been made by
Purchaser and received by Supplier. Purchaser shall be responsible for all
loading and shipment of the Supply Items and SCADA System from their respective
Designated Delivery Locations to the Project Site and shall pay for all costs
and expenses incurred by Purchaser related thereto, including the costs of
maintaining insurance on such Supply Item and SCADA System during shipment of
such Supply Item and SCADA System from its respective Designated Delivery
Location to the Project Site.

 

5.3       Delivery Schedule. The Supply
Items shall be Delivered to their Designated Delivery Locations in accordance
with the Delivery Schedule attached as Exhibit L (the “Delivery
Schedule”); provided however, that Supplier shall use commercially reasonable
efforts to work with Purchaser to revise the Delivery Schedule as necessary
considering Supplier’s manufacturing schedules and Purchaser’s Project
requirements. Delivery dates in the Delivery Schedule will be deemed met so
long as the Supply Items are delivered to the Designated Delivery Locations on
or before the date for such delivery set forth in the Delivery Schedule;
provided that, Supplier shall have the right to Deliver the Supply Items up to
one (1) month earlier than provided for in the Delivery Schedule. The
SCADA System shall be delivered at a Designated Delivery Location mutually
agreed by the Parties following the installation of the first Turbine at the
Project Site by Purchaser.

 

5.4       Designated Delivery Locations.
Unless otherwise agreed in writing by the Parties, Supplier shall Deliver the
Supply Items as follows: (i) Turbine Nacelle, Turbine Controller, Turbine
hub and Ancillary Parts and Equipment at Supplier’s factory near Cedar Rapids,
Iowa, (ii) the Turbine Blades at such location or warehouse facility as
Supplier may direct near Houston, Texas, or at another mutually agreed upon
location, provided any costs associated with such other mutually agreed
location be borne by Purchaser, and (iii) the Towers at the manufacturing
facility located in Chattanooga, Tennessee, or at such other domestic location
as Supplier may specify at any point prior to three (3) months from the
Delivery date set forth in the Delivery Schedule. Each of the foregoing
locations is referred to herein as a “Designated Delivery Location.”

 

5.5       Delay Delivery Damages. The
Parties acknowledge that Purchaser will suffer damages that will be difficult
to ascertain if Purchaser fails to Deliver any Major Turbine Component within
thirty (30) days of the applicable date of Delivery set forth in the Delivery
Schedule. Consequently, the Parties agree that Supplier will pay Purchaser, if
any Major Turbine Component is Delivered thirty (30) days or more late and such
delay was not due to any Force Majeure Event or breach by Purchaser of any of
its obligations under this Agreement, the following amount as liquidated
damages: For each full day after the first thirty (30) days following the date
that the Delivery of such Major Turbine Component is delayed beyond the date
specified in the Delivery Schedule, an amount equal to $***** per Turbine per day for the first fifteen (15) days after

 

10

 

delay payments become
payable, an amount equal to $*****
per day for the next fifteen (15) days, and an amount equal to $***** per day thereafter (the “Delay
Delivery Damages”); provided that, in no event shall the aggregate Delay
Delivery Damages payable hereunder exceed ***** percent (*****%)
of the pro-rata portion of the Purchase Price applicable to the Turbine for
which such delayed Major Turbine Component is a component. It is understood and
acknowledged by the Parties that if more than one Major Turbine Component
applicable to a Turbine is delivered late, the liquidated damages applicable to
the Turbine will not exceed $*****
per day (for the first 15 days after delay payments become payable), $***** per day (for the next 15 days of
delay payments), and $***** per
day (for delay payments thereafter), as applicable. The Parties acknowledge and
agree that the Delay Delivery Damages set forth above are a reasonable estimate
of the damages Purchaser will suffer because of late Delivery of any Major
Turbine Component and that, therefore, the Delay Delivery Damages set forth
herein shall be Purchaser’s sole and exclusive remedy with respect to such
Delivery delays.

 

ARTICLE 6

 

FINAL ASSEMBLY WORK, INSTALLATION
WORK, 

COMMISSIONING WORK AND PROJECT COMPLETION

 

6.1       Final Assembly Work and Turbine Installation.
Purchaser shall complete the Final Assembly Work with respect to all Turbines
in conformance with the procedures and requirements set forth in Exhibit P,
and shall complete the Installation Work with respect to all Turbines in
accordance with the Installation Procedures and, subject to Section 5.3
above, within the period of time set forth on the Completion Schedule.

 

6.2       Commissioning. Commissioning of
the Turbines shall be conducted as follows:

 

6.2.1           Advance Completion Notice. No
less than thirty (30) days prior to the date Purchaser expects Supplier to
commence the Commissioning Work, Purchaser shall provide Supplier with written
notice (the “Advance Completion Notice”) of Purchaser’s anticipated completion
date of the Installation Work and the date on which Supplier shall commence the
Commissioning Work (which date shall be no later than the date that Supplier is
obligated to commence the Commissioning Work as set forth in the Completion
Schedule). Purchaser shall use commercially reasonable efforts to schedule
Turbine Installation for all Turbines in the Project so that Supplier can
complete the Commissioning of each Turbine without interruption or delay on a
continuous basis until all the Turbines have been Commissioned.

 

6.2.2           Turbine Installation Inspection.
Following completion of the Installation Work with respect to any Turbine,
Purchaser shall deliver a written notice of completion to Supplier (an “Installation
Completion Notice”) and Supplier shall examine each Turbine in accordance with
the Installation Procedures and the Turbine Installation Manual. If the Turbine
fails to conform to the standards contained in the installation inspection
procedures set forth in the Turbine Installation Manual, then it shall be
deemed not properly installed, and Supplier shall promptly so notify Purchaser.
Purchaser shall then promptly take all required action to complete the
Installation Work for all Turbine(s) failing the installation inspection
procedures.

 

11

 

6.2.3           Commissioning Work. Supplier
shall perform the Commissioning Work for the Turbines in accordance with the
Commissioning and Start-Up Procedures and the Completion Schedule, subject to
any adjustment in the completion of the Commissioning Work, pursuant to Section 5.3
hereof, due to Supplier’s early Delivery of the Supply Items (provided,
however, that Supplier’s obligation to Complete the Commissioning Work by such
time set forth on the Completion Schedule shall be extended to the extent of
Purchaser’s delay in completing the Installation Work). Upon completion of the
Commissioning of each Turbine, Supplier shall issue to Purchaser a
commissioning certificate for such Turbine in the form attached hereto as Exhibit M
(each a “Commissioning Certificate”). Within five (5) days after receipt
of a Commissioning Certificate, Purchaser shall either approve such
Commissioning Certificate or deliver to Supplier written notice of any work
remaining to be completed by Supplier (the “Punch List Work”). If Purchaser
fails to deliver such notice within such five (5) day period, the
Commissioning Certificate will be deemed approved by Purchaser.

 

6.3       Project Completion. Within five (5) days
after the delivery by Supplier to Purchaser of a Commissioning Certificate for
the Project’s final Turbine, Supplier shall also deliver to Purchaser a
completion certificate for all Turbines in the Project (the “Project Completion
Certificate”), in the form attached hereto as Exhibit N, together
with a list of any remaining Punch List Work on any Turbine, a schedule for
completing the Punch List Work and an estimate of the cost of each item of
Punch List Work. Supplier shall thereafter promptly complete all Punch List
Work.

 

6.4       Purchaser Delays. In the event
that any of the actions of Purchaser, the EPC Contractor or any of Purchaser’s
Contractors cause a delay in the performance by Supplier of the Commissioning
Work, Purchaser shall pay Supplier its actual documented costs directly
attributable to such delay, including wages, lodging and meals.

 

ARTICLE 7

 

FORCE
MAJEURE EVENTS

 

7.1       Excused Performance. If either
Party is rendered wholly or partially unable to perform its obligations (other
than payment obligations) under this Agreement due to the occurrence of a Force
Majeure Event, such Party will be excused from the affected performance
obligation (other than payment obligations), provided that:

 

(a)        the affected Party gives the other Party
notice describing the particulars of the occurrence, including an estimate of
its expected duration and probable impact on the affected Party’s obligations
hereunder, such notice shall be given promptly after becoming aware of the
occurrence of the Force Majeure Event, and, in no event more than seven (7) days
after the affected Party becomes aware or should reasonably have been aware of
such occurrence;

 

(b)       the affected Party shall continually
exercise all commercially reasonable efforts to mitigate the effect of such
Force Majeure Event, remedy its inability to perform, and limit damages to the
other Party and shall promptly resume its

 

12

 

performance when the
Force Majeure Event no longer impacts its ability to perform, and shall give
the other Party prompt notice of its intent to resume such performance;

 

(c)        the
suspension of a Party’s performance affected by the Force Majeure Event shall
be of no greater scope and of no longer duration than is reasonably required by
the Force Majeure Event;

 

(d)       no
liability of either Party which arose before the occurrence of the Force
Majeure Event shall be excused as a result of the occurrence thereof; and

 

(e)        no
Force Majeure Event shall relieve any Party from performing those of its
obligations that are not materially affected by the Force Majeure Event.

 

ARTICLE 8

 

CHANGE ORDERS

 

8.1       Change Order. The
term “Change Order” as used herein shall mean a written instrument signed by
Purchaser and Supplier, stating their mutual agreement upon any of the
following: (i) a change in the fabrication or features of the Turbines
(such as adding Federal Aviation Administration lighting or a cold weather
package); (ii) a change in the Delivery Schedule or Completion Schedule; (iii) a
change in the Commissioning Work; (iv) a change in the number of or
location of Project sites; or (v) an adjustment in the Purchase Price
(collectively “Scope Changes”).

 

8.2       Change Order Process.
Purchaser may request Scope Changes within the general scope of this Agreement
consisting of additions, deletions, or other revisions. If Purchaser so desires
to request Scope Changes, it shall submit a change request to Supplier in
writing. Within ten (10) Business Days after its receipt of any such
request, Supplier shall submit a detailed proposal to Purchaser stating (a) the
increase or decrease, if any, in the Purchase Price which would result from
such change, and (b) the effect, if any, upon the Delivery Schedule or
Completion Schedule by reason of such proposed change. Purchaser shall have
five (5) days from receipt of Supplier’s detailed proposal to accept or
reject in writing Supplier’s proposal in relation to the requested change. If
Purchaser agrees with Supplier’s proposal, Purchaser and Supplier shall execute
a Change Order reflecting the requested Scope Changes and proposed adjustments,
if any, in the Purchase Price and the Delivery Schedule or Completion Schedule.
In the event Purchaser disagrees with Supplier’s proposal, Purchaser shall
promptly so notify Supplier, following which the Parties shall negotiate in
good faith a solution which is satisfactory to both Purchaser and Supplier.
Should Purchaser fail to respond to Supplier in writing within the foregoing
five (5) day period, Purchaser shall be deemed to have withdrawn its
requested change.

 

8.3       No Change.
Notwithstanding anything to the contrary contained in this Agreement, Supplier
shall not be obligated to proceed with any Scope Changes requested by Purchaser
unless and until a Change Order is executed by the Parties in relation to such
change. Further, Supplier shall not be required to implement a requested Scope
Change by Purchaser if the implementation of such change would, in Supplier’s
reasonable opinion, likely impair Supplier’s ability to achieve any

 

13

 

of the performance
guarantees, warranties or covenants set forth in this Agreement, the OMS
Agreement, and/or the Warranty Agreement.

 

8.4       Scope Changes Caused by a Force
Majeure Event. If a Force Majeure Event occurs that materially adversely
affects Supplier’s performance of all or a portion of the sale and Delivery
obligations hereunder or if such a Force Majeure Event causes any of the
Commissioning Work to be temporarily or permanently prevented, Supplier shall
be entitled to a Change Order reflecting such impact of such Force Majeure
Event, including an extension in Supplier’s time for performance for such delay
to the extent Supplier’s performance is actually delayed. In the case of a
Force Majeure Event, Supplier must notify Purchaser of Supplier’s intent to
request a Change Order (the “Notice of Intention”) within thirty (30) Business
Days of the Force Majeure Event. Supplier shall submit to Purchaser a draft
Change Order outlining, with reasonable specificity, the requested Scope
Changes within ten (10) Business Days after the Notice of Intention is
delivered to Purchaser.

 

8.5       Scope Changes Caused by Events within
the Control of Purchaser. If Purchaser, EPC Contractor or any of Purchaser’s
Contractors causes an event that materially adversely affects Supplier’s performance
of all or a portion of the sale and Delivery obligations hereunder or if such
event causes the Commissioning Work to be temporarily or permanently prevented,
Supplier shall be entitled to a Change Order reflecting such impact of such
event, including (i) an extension in Supplier’s time for performance for
such delay to the extent Supplier’s performance is actually delayed, and (ii) an
increase in the Purchase Price with respect to such additional cost to the
extent such delay is caused solely by Purchaser, EPC Contractor or any of
Purchaser’s Contractors. In the case of such a Purchaser caused event, Supplier
must notify Purchaser of Supplier’s intent to request a Change Order (the “Notice
of Intention”) within thirty (30) Business Days of the Purchaser caused event.
Supplier shall submit to Purchaser a draft Change Order outlining, with
reasonable specificity, the requested Scope Changes within ten (10) Business
Days after the Notice of Intention is delivered to Purchaser.

 

ARTICLE 9

 

LIMITATION OF LIABILITY

 

9.1       Supplier Not Responsible for Purchaser’s
Work. Notwithstanding anything to the contrary set forth herein, Supplier
shall not have any responsibility for (a) Project Site selection,
permitting or Turbine siting within the Project Site; (b) the design,
supply or construction of Tower foundations; (c) the assembly, erection
and installation of the Turbines or the SCADA System; (d) the design,
assembly, erection and installation of any other element of the Project, (e) obtaining
rights required by the Project to sell or transmit its electrical output, or (f) any
other element of Purchaser’s Work, all of which are expressly the
responsibility of Purchaser.

 

9.2       Overall Limitation of Liability.
Notwithstanding anything to the contrary contained in this Agreement, in no
event shall Supplier, its parent company, Affiliates and agents be liable,
alone or in the aggregate, to Purchaser for any damages, claims, demands,
suits, causes of action, losses, costs, expenses and/or liabilities related in
any manner to this Agreement, the Warranty Agreement and the OMS Agreement in
excess of an amount equal to ***** percent (*****%) of the Purchase Price,
regardless of whether such liability arises out of breach of contract,
guarantee or warranty, tort, product liability, indemnity, contribution, strict
liability or any other legal theory;

 

14

 

provided, however, the
preceding limitation of liability shall not apply to, and no credit shall be
issued against such liability for, (a) Supplier’s indemnity obligations
set forth in Section 13.1 solely as they relate to claims by third
Parties for bodily injury or property damage, or (b) the fraud or willful
misconduct of Supplier.

 

9.3       Consequential Damages.
Notwithstanding anything to the contrary contained in this Agreement and except
as set forth in the last sentence of this Section, Purchaser and Supplier waive
all claims against each other (and against each other’s parent company,
Affiliates, contractors, subcontractors, consultants, vendors, suppliers and
agents) for any consequential, incidental, indirect, special, exemplary or
punitive damages (including, but not limited to, loss of actual or anticipated
profits, revenues or product; loss by reason of shutdown or non-operation;
increased expense of operation, borrowing or financing; loss of use or
productivity; or increased cost of capital), and regardless of whether any such
claim arises out of breach of contract or warranty, tort, product liability,
indemnity, contribution, strict liability or any other legal theory. Any
consequential, incidental, indirect, special, exemplary or punitive damages
incurred by Supplier or Purchaser in relation to a third Party shall, for all
purposes of this Agreement, be deemed consequential, incidental, indirect,
special, exemplary or punitive damages in relation to any claim brought by
Supplier or Purchaser against the other Party to this Agreement. Any liquidated
damages payable by Supplier under this Agreement shall not be deemed consequential,
incidental, indirect, or special damages for purposes of this Agreement.

 

ARTICLE 10

 

TITLE AND RISK OF LOSS; INSURANCE

 

10.1     Title to Supply Items. Title to any
Supply Item shall transfer to the Purchaser upon (i) the Delivery of such
Supply Item to its Designated Delivery Location and (ii) Purchaser’s
payment of and Supplier’s receipt of, the applicable Progress Payment.

 

10.2     Risk of Loss. Supplier shall bear
the risk of loss and damage with respect to any Supply Item (including each
individual Major Turbine Component) until Delivery of such Supply Item to its
Designated Delivery Location. In performing the Commissioning Work, Supplier
shall be deemed a contractor of Purchaser performing the Services on Supply
Items then owned by Purchaser. Upon the Delivery of any Supply Item to its
Designated Delivery Location, care, custody and control of, and risk of loss or
damage to, such Supply Item shall thereupon transfer to the Purchaser.

 

10.3     Insurance. Supplier and Purchaser
shall maintain the following insurance while this Agreement is in effect:

 

10.3.1         Supplier Insurance.

 

Supplier shall carry and
maintain or cause to be carried and maintained, at all times during the Term of
this Agreement, insurance coverage with limits as set forth in this Section (the
“Supplier Insurance”).

 

15

 

Marine
Cargo Insurance

 

All
property and interests of every kind and description (including materials,
equipment, machinery and spares) intended for the Project or subsequent
operations while in transit by land, air and/or sea. All Risks of physical loss
or damage from a cause not excluded but including war, strikes, riots and civil
commotions and terrorism while in transit, on a continuous open cover basis.
Increased cost of working - the additional expenditure necessarily and
reasonably incurred for the purpose of avoiding or reducing delay which,
without such expenditure would have taken place.

 

Property

 

At
all times the Supplier’s factory premises, plant, machinery, raw materials and
finished stocks all related to and comprising the Project under a property
insurance in an amount equal to the full replacement value of the above named
items for “all risks” of physical loss or damage including, but not limited to,
coverage for earth movement, flood, windstorm, earthquake, sabotage, terrorism,
riots, civil commotion, testing, boiler and machinery, transit and off-site
storage. The policy may contain separate sub limits and deductibles subject to
insurance company underwriting guidelines. Deductibles under the policy shall
not exceed $100,000 per occurrence, except for deductibles for natural
catastrophe peril, which shall not exceed five percent (5%) of the insured loss

 

Increased
cost of working - the additional expenditure necessarily and reasonably
incurred for the purpose of avoiding or reducing delay which, without such
expenditure would have taken place.

 

Workers Compensation

 

Coverage
shall comply with any statutory obligation imposed by Workers Compensation,
Occupational Disease Laws, or similar laws, including where applicable, the
United States Longshoremen’s and Harbor Workers’ Act, the Federal Employers’
Liability Act and the Jones Act. Employers’ Liability insurance shall have
limits of not less than $1,000,000 per accident, $1,000,000 disease-policy
limit and $1,000,000 disease-each employee.

 

Commercial General Liability

 

Insurance
providing coverage for bodily injury, property damage and personal/advertising
injury with a combined single limit of not less than $1,000,000 per occurrence
and $2,000,000 aggregate. The policy shall include contractual liability and
any testing operations coverage.

 

16

 

a.                          Automobile
Liability - Insurance for owned, non-owned and hired automobiles with a
limit of not less than $1,000,000 per occurrence.

 

b.                         Excess  liability -
Insurance with a minimum limit of $10,000,000 per occurrence and annual
aggregate.

 

c.                          Evidence and Scope of
Insurance - Supplier shall
provide Purchaser with a copy of insurance original certificates evidencing the
insurance coverages required and shall provide replacement certificates of
insurance within five (5) days of any renewal of the required insurance.

 

All
such insurance policies shall:

 

(i) name
Purchaser for their respective rights and interests in respect of the Project
as additional insured (except in the case of worker’s compensation insurance);

 

(ii) provide
Purchaser with 30 days’ prior written notice of non-renewal, cancellation of,
or significant modification to, any of such policies (except that such notice
period will be 10 days in case of non-payment of premiums); and

 

(iii) the
insurance certificates provided to Purchaser shall indicate that the insurance
policies have been endorsed as noted above. All policies shall be written by
one or more insurance companies authorized to do business in USA and be rated
BBB+ or higher by A.M. Best.

 

Term and Modification of Insurance

 

If
the designated coverage, or relatively comparable coverage, are unavailable on
reasonable commercial terms, Supplier will provide Purchaser detailed
information as to the maximum amount of available coverage that it is able to
purchase and will be required to obtain Purchaser’s consent as to the adequacy
of said coverage under the circumstances at the time, which consent shall not
be unreasonably withheld or delayed.

 

10.3.2          Purchaser Insurance.

 

Purchaser
shall carry and maintain or cause to be carried and maintained, at all times
during the Term of this Agreement, insurance coverage with limits as set forth
in this Section.

 

17

 

Builder’s
All Risk Insurance

 

At all times during
construction, the Purchaser’s Project will be under a builder’s all risk
insurance in an amount equal to the full replacement value of the Project for “all
risks” of physical loss or damage including, but not limited to, coverage for
earth movement, flood, windstorm, earthquake, sabotage, terrorism, riots, civil
commotion, testing, boiler and machinery, transit and off-site storage. The
policy may contain separate sub limits and deductibles subject to insurance
company underwriting guidelines. Deductibles under the policy shall not exceed $100,000
per occurrence, except for deductibles for natural catastrophe peril, which
shall not exceed five percent (5%) of the insured loss

 

Increased cost of working
- the additional expenditure necessarily and reasonably incurred for the
purpose of avoiding or reducing delay which, without such expenditure would
have taken place.

 

Workers
Compensation

 

Coverage shall comply
with any statutory obligation imposed by Workers Compensation, Occupational
Disease Laws, or similar laws, including where applicable, the United States
Longshoremen’s and Harbor Workers’ Act, the Federal Employers’ Liability Act
and the Jones Act. Employers’ Liability insurance shall have limits of not less
than $1,000,000 per accident, $1,000,000 disease-policy limit and $1,000,000 disease-each
employee.

 

Commercial
General Liability

 

Insurance providing
coverage for bodily injury, property damage and personal/advertising injury
with a combined single limit of not less than $1,000,000 per occurrence and
$2,000,000 aggregate. The policy shall include contractual liability and any
testing operations coverage.

 

a.          Automobile Liability - Insurance for owned,
non-owned and hired automobiles with a limit of not less than $1,000,000 per
occurrence.

 

b.         Excess liability - Insurance with a minimum
limit of $10,000,000 per occurrence and annual aggregate.

 

c.          Evidence and Scope of Insurance

 

Purchaser shall provide Supplier with a copy of insurance original
certificates evidencing the insurance coverages required and shall provide
replacement certificates of insurance within five (5) days of any renewal
of the required insurance.

 

All
such insurance policies shall:

 

18

 

(i)  name
Supplier for their respective rights and interests in respect of the Project as
additional insured (except in the case of worker’s compensation insurance);

 

(ii) provide Supplier with 30 days’ prior
written notice of non-renewal, cancellation of, or significant modification to,
any of such policies (except that such notice period will be 10 days in case of
non-payment of premiums); and

 

(iii) The insurance certificates provided to
Supplier shall indicate that the insurance policies have been endorsed as noted
above. All policies shall be written by one or more insurance companies
authorized to do business in USA and be rated BBB+ or higher by A.M. Best.

 

Term and Modification of Insurance

 

If
the designated coverage, or relatively comparable coverage, are unavailable on
reasonable commercial terms, Purchaser will provide Supplier detailed
information as to the maximum amount of available coverage that it is able to
purchase and will be required to obtain Supplier’s consent as to the adequacy
of said coverage under the circumstances at the time, which consent shall not
be unreasonably withheld or delayed.

 

ARTICLE 11

 

REPRESENTATIONS
AND WARRANTIES OF SUPPLIER

 

Supplier
hereby represents and warrants to Purchaser as follows:

 

11.1     Due Organization; Good
Standing. Supplier is a corporation duly organized, validly existing and in
good standing under the laws of the State of Delaware, and qualified to conduct
business in the states where it does business.

 

11.2     Due Authorization.
The execution, delivery and performance of this Agreement by Supplier have been
duly authorized by all necessary corporate action on the part of Supplier and
do not and will not require the consent of any trustee or holder of any
indebtedness or other obligation of Supplier or any other Party to any other
agreement with Supplier.

 

11.3     Execution and Delivery.
This Agreement has been duly executed and delivered by Supplier. This Agreement
constitutes the legal, valid and binding obligation of Supplier, enforceable
against Supplier in accordance with its terms, except to the extent that its
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the rights of creditors generally or
by principles of equity.

 

11.4     Governmental Approvals.
No governmental authorization, approval, order, license, permit, franchise or
consent, and no registration, declaration or filing with any Governmental
Authority is required on the part of Supplier in connection with the execution,
delivery and performance of this Agreement, except those which have already
been obtained or which Supplier anticipates will be timely obtained in the
ordinary course of performance of this Agreement.

 

19

 

11.5     Supply Items; Services.
The Supply Items and the SCADA System to be delivered hereunder shall be
designed and fit for the purpose of generating electric power when operated in
accordance with the Turbine Specifications, the OMS Manual, Prudent Electrical
Industry Practices and Prudent Wind Industry Practices. The Supply Items and
SCADA System shall be new and unused and shall be free from Defects and free
from defects in title. The Services shall be performed in a competent, diligent
manner in accordance with Prudent Wind Industry Practices, Supplier’s
manufacturers’ written requirements and applicable Governmental Requirements.

 

ARTICLE 12

 

REPRESENTATIONS
AND WARRANTIES OF PURCHASER

 

Purchaser
represents and warrants to Supplier as follows:

 

12.1     Due Organization; Good
Standing; Qualified To Do Business. Purchaser is a limited liability
company duly organized, validly existing and in good standing under the laws of
the State of Delaware, and qualified to conduct business in the states where it
does business.

 

12.2     Due Authorization.
The execution, delivery and performance of this Agreement by Purchaser have
been duly authorized by all necessary action on the part of Purchaser in
accordance with Purchaser’s organizational documents and do not and will not
require the consent of any trustee or holder of any indebtedness or other
obligation of Purchaser or any other Party to any other agreement with
Purchaser.

 

12.3     Execution and Delivery.
This Agreement has been duly executed and delivered by Purchaser. This
Agreement constitutes the legal, valid and binding obligation of Purchaser,
enforceable against Purchaser in accordance with its terms, except to the
extent that its enforceability may be limited by bankruptcy, insolvency,
reorganization, moratorium or other similar laws affecting the rights of
creditors generally or by principles of equity.

 

12.4     Governmental Approvals.
No governmental authorization, approval, order, license, permit, franchise or
consent, and no registration, declaration or filing with any Governmental
Authority is required on the part of Purchaser in connection with the
execution, delivery and performance of this Agreement, except those which have
already been obtained or which Purchaser anticipates will be timely obtained in
the ordinary course of performance of this Agreement.

 

12.5     Project Site. On or
prior to the date that Supplier is to provide any services relating to the
Project at the Project Site, Purchaser shall have obtained the right and
authority to have such work performed on the Project Site. To the knowledge of
Purchaser, after the completion of reasonable due diligence on the Project
Site, the Project Site is free of all hazardous or dangerous materials or
substances. All information concerning the Project Site and the wind flow
across the Project Site heretofore delivered to Supplier by Purchaser is true,
complete and correct in all material respects.

 

20

 

ARTICLE 13

 

MUTUAL
INDEMNITY

 

13.1       Mutual Indemnity.
Each of Supplier and Purchaser agree to defend, indemnify and hold each other,
and each other’s lenders, parent companies, Affiliates, officers, directors,
agents and employees, harmless from and against any claims, losses, damages and
liabilities (including, but not limited to, reasonable attorneys’ fees and
court costs, but excluding consequential damages) on account of any claim by a
third Party for bodily injury or property damage against the indemnified Party
to the extent caused by the negligent act or omission, or willful misconduct
of, or breach of this Agreement by, the indemnifying Party or the indemnifying
Party’s employees, contractors, subcontractors or agents, in connection with
the performance of their respective obligations under this Agreement.

 

ARTICLE 14

 

DEFAULT;
CURE; REMEDIES

 

14.1     Default by Supplier.
Supplier shall be in default under this Agreement should any one or more of the
following events or conditions arise or exist:

 

(i)            Supplier becomes
insolvent, or generally does not pay its debts as they become due, or admits in
writing its inability to pay its debts, or makes a general assignment for the
benefit of creditors; or

 

(ii)           Insolvency,
receivership, reorganization, or bankruptcy proceedings are commenced by or
against Supplier and, in the case of any such involuntary proceeding, that is
not dismissed or stayed within sixty (60) days after it is commenced; or

 

(iii)          Supplier fails, for
any reason, other than failure of Purchaser to make payments to Supplier when
obligated in accordance with this Agreement, to make any undisputed payments
required to be made by Supplier to Purchaser, which failure continues for ten (10) Business
Days after notice of such non-payment; or

 

(iv)          Supplier is in
material default of any term or provision of this Agreement or has materially
failed to perform its obligations under this Agreement, and such breach or failure
continues for thirty (30) Business Days following receipt of written notice
from Purchaser to cure such breach or failure; provided, however, if such
failure cannot with due diligence be remedied by Supplier within such thirty
(30) Business Days period, and Supplier shall have diligently prosecuted the
remedying of such failure within such thirty (30) Business Days, such period
shall be extended by such additional time period as may be reasonably required
by Supplier to cure such failure.

 

14.2     Purchaser’s Remedies.
In the event Supplier is in default pursuant to Section 14.1, and
said default is not timely cured within the time periods set forth above,
Purchaser, in addition to those rights and remedies that may be available to
Purchaser at law or in equity, and subject to Section 9.2 of this
Agreement, shall have the right to terminate this Agreement by written notice
to Supplier; provided however, that amounts applicable to Supply Items
delivered or services

 

21

 

performed by Supplier
through the date of termination of this Agreement shall be paid by Purchaser to
Supplier.

 

14.3     Default by Purchaser. Purchaser
shall be in default under this Agreement should any one or more of the
following events or conditions arise or exist:

 

(i)            Purchaser or Guarantor becomes
insolvent, or generally does not pay its debts as they become due, or admits in
writing its inability to pay its debts, or makes a general assignment for the
benefit of creditors; or

 

(ii)           Insolvency, receivership,
reorganization or bankruptcy proceedings are commenced by or against Purchaser
or Guarantor and, in the case of any such involuntary proceeding, that is not
dismissed or stayed within sixty (60) days after it is commenced; or

 

(iii)          Purchaser fails to timely pay to
Supplier any required payment under this Agreement when due, including failure
to timely provide any Down Payment or any Progress Payment, which failure
continues for ten (10) days after written notice of failure to make payment
has been received by Purchaser from Supplier; or

 

(iv)          Purchaser fails to perform any
material term or provision of this Agreement, including failure to timely
provide the Guaranty to Supplier, and such failure continues for thirty (30)
Business Days following receipt of written notice from Supplier to cure such
failure; provided, however, if such failure cannot with due diligence be
remedied by Purchaser within such thirty (30) Business Day period, and
Purchaser shall have diligently prosecuted the remedying of such failure within
such thirty (30) Business Days, such period shall be extended by such
additional time period as may be reasonably required by Purchaser to cure such
failure; or

 

(v)           The revocation or other termination
of the Guaranty by Guarantor, or the breach by Guarantor of any material term
or provision of the Guaranty, including any payment obligation thereunder,
which breach continues for a period of ten (10) days after written notice
of such breach has been received by Guarantor from Supplier.

 

14.4     Supplier’s Remedies. In the event
that Purchaser is in default pursuant to Section 14.3, and said
default is not timely cured within the time periods set forth above, Supplier,
in lieu of any rights and remedies that may be available to Supplier at law or
in equity, shall have the right to terminate this Agreement by written notice
to Purchaser, which termination shall be effective upon delivery of Supplier’s
notice to Purchaser. Within three (3) Business Days of the effective date
of such termination, Purchaser shall pay to Supplier the liquidated damages set
forth on the termination schedule attached hereto as Exhibit G (“Termination
Schedule”), which shall constitute Supplier’s exclusive remedy, and Supplier
shall have no right to damages or compensation for such termination other than
payment of the liquidated damages set forth on the Termination Schedule.

 

14.5     Cancellation Due to a Force Majeure
Event. If Supplier is entirely prevented from performing its obligations
hereunder for a period of one-hundred eighty (180) consecutive days as a result
of the occurrence of a Force Majeure Event suffered by Supplier, then Supplier
may cancel, without additional liability, any then remaining unperformed
portion of this Agreement, upon

 

22

 

not less than thirty (30)
Business Days’ prior written notice to the Purchaser; provided, however, that
nothing in this Section 14.5 shall relieve or excuse Supplier from
its obligations under Article 7 of this Agreement in respect of the
occurrence of a Force Majeure Event or relieve either Party from any payment
obligation that has accrued as of the date of cancellation or prior thereto;
provided further, however, that any payment obligations of Purchaser shall be
reduced by the amount of funds received by Supplier, if any, in connection with
the resale of any Turbines or Turbine components sold that are applicable to
such payment obligations of Purchaser, and, if following such reduction,
Purchaser is owed a refund of some portion of the Purchase Price from Supplier,
Supplier shall refund to Purchaser the applicable amount of Purchase Price
previously paid to Supplier within thirty (30) days of such termination.

 

14.6     Termination for Convenience. The
Purchaser shall have the right to terminate this Agreement for convenience with
respect to any Turbine until title to such Turbine has passed to Purchaser.
Such termination shall be effective upon the later to occur of (i) delivery
to Supplier of written notice of termination and (ii) receipt by Supplier
of liquidated damages in the amount on a per Turbine basis with respect to such
Turbine in accordance with the Termination Schedule attached to this Agreement
as Exhibit G.

 

14.7     Surviving Obligations. Cancellation
or expiration of all or any portion of this Agreement (a) shall not
relieve Purchaser of its obligations with respect to the confidentiality of
Supplier’s proprietary information as set forth in Section 4.5 of
this Agreement, or either Party of its confidentiality obligations as set forth
in Section 16.9 of this Agreement, (b) shall not relieve
either Party of any obligation hereunder which expressly or by implication
survives termination hereof, and (c) except as otherwise provided in any
provision of this Agreement expressly limiting the liability of either Party,
shall not relieve either Purchaser or Supplier of any obligations or
liabilities for loss or damage to the other Party arising out of or caused by
acts or omissions of such Party prior to the effectiveness of such termination
or arising out of such termination, and shall not relieve Supplier of its
obligations as to portions of the items supplied or other services hereunder
already supplied or performed or of obligations assumed by Supplier prior to
the date of termination. This Article shall survive the termination or
expiration of this Agreement.

 

ARTICLE 15

 

DISPUTE RESOLUTION

 

15.1     Procedure. In the event a dispute,
controversy or claim (herein, a “dispute”) arises between Purchaser and
Supplier relating to this Agreement, the aggrieved Party shall promptly provide
written notification of the dispute to the other Party within ten (10) days
after such dispute arises and the Parties shall resolve such dispute as
provided herein:

 

15.1.1         Executives Meeting. A meeting
shall be held between the Parties, attended by representatives of the Parties
with decision-making authority regarding the dispute, to attempt in good faith
to negotiate a resolution of the dispute. Such meeting shall be held in
Carpinteria, California within thirty (30) days after a notice of dispute has
been delivered under Section 15.1 above.

 

23

 

15.1.2         Independent Engineer’s Decision.
If the dispute involves a technical issue, within ten (10) days after such
meeting, the Parties have not resolved the dispute, either Party shall submit
the dispute to the Independent Engineer for a non-binding determination,
together with such information in support of their position as may be relevant,
which information will simultaneously be sent to the other Party. The
Independent Engineer may hold separate meetings with each Party or call a joint
meeting of the Parties, to be held in Carpinteria, California. The Independent
Engineer shall, within thirty (30) days after such request for a determination,
issue a non-binding decision. Any Party which does not wish to comply with such
decision shall promptly provide written notification of its intention to the
other Party within five (5) days of such decision. The Parties shall meet
in Chicago, Illinois within twenty (20) days of such notice to attempt, in good
faith, to negotiate a final resolution to the dispute. Any Party which does not
wish to comply with such decision shall within ten (10) days after the
date of such meeting submit the dispute to arbitration within twenty (20) days
after the date of such decision to arbitration in accordance with Section 15.1.3
below. The Parties shall share equally the costs of the Independent Engineer.

 

15.1.3         Arbitration.

 

(a)           If the Parties are not successful in
resolving a dispute, controversy or claim pursuant to Sections 15.1.1
and 15.1.2, above, then such dispute shall be resolved through binding
arbitration to take place in Chicago, Illinois. The Parties agree to conduct all
arbitration proceedings in accordance with the Commercial Arbitration Rules of
the American Arbitration Association. This Section 15.1.3 is
governed by the Federal Arbitration Act.

 

(b)           A Party desiring to submit to
arbitration any such dispute, controversy or claim shall furnish its demand for
arbitration in writing to the other Party or Parties thereto, which demand
shall contain a brief statement of the matter in controversy, as well as a list
containing the names of three (3) suggested arbitrators from the list of
arbitrators maintained by the American Arbitration Association (the “AAA List”)
from which list, or from other sources, all of the Parties shall choose one (1) mutually
acceptable arbitrator. If the Parties are unable to agree upon the identity of
a single arbitrator, within ten (10) days from the receipt of such demand,
the Purchaser and the Supplier shall each (collectively, the “Arbitrating
Parties”), within a period of five (5) additional days, name from the
AAA List one (1) arbitrator by written notice to the other Arbitrating Party or
Parties. Within ten (10) days after this notice, the two (2) arbitrators
so named shall choose a third arbitrator. If any Arbitrating Party fails to
name an arbitrator within the specified five (5) day period or if the two
arbitrators chosen by the Arbitrating Parties fail to select a third arbitrator
within the ten (10) day period, then either Arbitrating Party, on behalf of and
on notice to the other Arbitrating Party or Parties, may request appointment by
the American Arbitration Association in accordance with its rules then
prevailing of the required additional arbitrator or arbitrators so that there
shall be a panel of three (3) arbitrators. If the American Arbitration
Association should fail to appoint the necessary arbitrator or arbitrators
within fifteen (15) days after such request is made, then either Arbitrating
Party may apply, on notice to the other Arbitrating Party or Parties, to a
court of competent jurisdiction for the appointment of such necessary
additional arbitrators. Each of the arbitrator or arbitrators chosen or
appointed pursuant to

 

24

 

this Section 15.1.3(b) shall
be a person having at least ten (10) years experience in the United States
in the legal profession and shall not be a past or present officer, director or
employee of, or have any material interest in, any Arbitrating Party or any
Affiliate of an Arbitrating Party. All discovery, including the right to take
depositions and interrogatories, shall be permitted in the time and manner
provided by the then applicable Federal Rules of Civil Procedure. The
Arbitrating Parties shall be entitled to reasonable discovery prior to the
arbitration hearing, and the arbitrator or arbitrators, as the case may be,
shall have the power upon application of any Arbitrating Party to make all
appropriate orders for discovery from the other Arbitrating Party, including
discovery of documents, responses to interrogatories, and depositions. The
scope, time and manner of discovery, including all document discovery, are to
be in accordance with the U.S. Federal Rules of Civil Procedure.
Notwithstanding the foregoing, discovery allowed each of the Arbitrating
Parties shall not exceed: (i) five (5) party depositions; (ii) three (3) nonparty
depositions; (iii) three (3) depositions of any experts selected to
give opinions in the arbitration (as well as the production of any documents
relied upon by such experts); and (iv) fifteen (15) interrogatories (with
each subpart counted as a separate interrogatory). Discovery shall not include
requests for admissions. No deposition shall last more than two (2) days
in length. Further, all discovery must, without exception, be completed within
one hundred twenty (120) days from the date the arbitration panel is appointed.
Any documents that are not produced to the other Arbitrating Party prior to the
termination of this 120-day discovery period may not be offered into evidence
at the arbitration hearing unless such production shall not prejudice the
non-producing Arbitrating Party as determined by the arbitrator or arbitrators,
as the case may be. Likewise, any witnesses who have not been produced for
deposition, despite a request from the other side, may not testify or submit
affidavits at the arbitration hearing.

 

(c)           The arbitrator or arbitrators, as the
case may be, shall render his, her or their decision, in the latter case upon
the concurrence of at least two (2) of their number, as soon as possible
but no later than thirty (30) days after the conclusion of any hearings before
such arbitrator or arbitrators, as the case may be, unless such 30-day period
is extended by the arbitrator or arbitrators, as the case may be. The decision
and award shall in either case be in writing and counterpart copies of such
decision shall be delivered to each of the Arbitrating Parties. Such decision
shall be based solely upon the written arguments and contentions, evidence and
legal authorities, submitted by each Arbitrating Party. In rendering such
decision and award, the arbitrator shall not add to, subtract from or otherwise
modify the provisions of this Agreement. Any award rendered shall be final and
conclusive upon the parties and a judgment on any such award may be entered in
any court having jurisdiction, state or federal, having jurisdiction. No
arbitration proceeding shall be commenced after the date when institution of
legal or equitable proceedings based upon such subject matter would be barred
by the applicable statute of limitations. Notwithstanding anything to the
contrary contained in this section or elsewhere in this Agreement, provisional
injunctive or other provisional equitable relief may be sought by the parties
without first submitting the subject dispute to arbitration so long as
injunctive relief is otherwise warranted by applicable law.

 

25

 

15.2     Qualifications of Arbitrators; Expenses.

 

(a)           The arbitrators in the arbitration
proceeding provided for in this Article 15 shall be individuals
experienced in the energy construction industry and competent to pass on the
matter presented for arbitration.

 

(b)           Supplier, on the one hand, and
Purchaser, on the other, shall share equally the compensation and expenses of
the arbitrators as well as all fees imposed by the AAA. Supplier and Purchaser
shall be responsible for their own costs and legal fees, if any.
Notwithstanding the foregoing, a majority of the arbitrators shall be empowered
to award the prevailing Party its costs, expenses and/or legal fees.

 

15.3     Performance During Dispute. While
any controversy, dispute or claim arising out of or relating to this Agreement
is pending, Purchaser and Supplier shall continue to perform their obligations
hereunder notwithstanding such controversy, dispute or claim.

 

15.4     Consolidation. No arbitration
arising under this Agreement shall include, by consolidation, joinder or any
other manner, any person or entity not a Party to this Agreement, unless (a) such
person or entity is substantially involved in a common question of fact or law,
(b) the presence of such person or entity is required if complete relief
is to be accorded in the arbitration, and (c) such person or entity has
consented to such inclusion.

 

15.5     Language. All arbitration
proceedings shall be conducted in the English language.

 

ARTICLE 16

 

GENERAL PROVISIONS

 

16.1     Waiver. No delay or omission by the
Parties hereto in exercising any right or remedy provided for herein shall
constitute a waiver of such right or remedy nor shall it be construed as a bar
to or waiver of any such right or remedy on any future occasion.

 

16.2     Successors and Assigns. This
Agreement shall be binding upon and shall inure to the benefit of the
successors and permitted assigns of Supplier and Purchaser. Except as set forth
herein, neither Supplier nor Purchaser may assign, convey or transfer this
Agreement, in whole or in part, except upon the prior written consent of the
other Party hereto, which consent shall not be unreasonably withheld, and any
such purported transfer or assignment shall be null and void. Notwithstanding
any permitted assignment hereunder, the assignor shall remain liable to the
other Party for all duties and responsibilities hereunder unless affirmatively
recited by the other Party.

 

16.3     Permitted Assignments.
Notwithstanding Section 16.2 above, (i) either Party may
transfer or assign its rights, benefits and obligations under this Agreement to
an Affiliate; provided, that if requested by Purchaser, Supplier shall execute
and deliver a guaranty of the performance hereunder by such an assignee, (ii) Purchaser
may assign its rights, benefits and obligations under this Agreement to any
purchaser of the Project; provided, that Purchaser may not transfer or assign
this Agreement in whole or in part to a wind turbine design or manufacturing
competitor of Supplier without the prior written consent of Supplier, which
consent may be withheld in Supplier’s sole discretion and which may be
conditioned upon the creditworthiness of the purchaser, (iii) Supplier is

 

26

 

authorized to subcontract
any portion of its duties under this Agreement to a third party or to delegate
its obligations hereunder, in the ordinary course of its business, without
reducing the scope of Supplier’s undertakings, obligations, and commitments to
Purchaser, provided that Supplier agrees that it will not use any supplier for
any Major Turbine Components not listed on Exhibit H without
Purchaser’s advance written consent, such consent not to be unreasonably
withheld, conditioned or delayed, and (iv) a Party, without the consent of
the other Party, may assign its interest in this Agreement to a lender,
collateral trustee, security trustee or similar entity as collateral security
for any financing entered into by the assigning Party, including a lease
financing. The non-assigning Party shall, upon fifteen (15) days’ prior written
request from the assigning Party, execute a consent containing customary terms
and conditions, to any such collateral assignment. Further, notwithstanding Section 16.2
above, Purchaser shall have the right to assign no less than all of its rights,
duties and obligations under the Turbine Supply Documents to any third party,
subject to, and conditioned upon, the prior written consent of Supplier, which
shall not be unreasonably withheld, conditioned, or delayed; provided however
that any such assignment is conditioned upon the receipt of a guarantee for the
benefit of Supplier of the performance of the contract obligations, including
payment security, in a form acceptable to Supplier, in its sole and absolute
discretion. Any such assignment to a third party also shall be subject to the
following: (i) prior to the effectiveness of such assignment, the third
party assignee shall agree to revisions to the Turbine Supply Documents as
determined by Supplier to be reasonably necessary, to effect the purchase and
installation of the Turbines by the third party assignee at a project site to
be determined between Supplier and any such third party assignee, (ii) the
third party assignee shall assume all of the duties, obligations, restrictions
and covenants of Purchaser under the Turbine Supply Documents, as revised, (iii) any
monies or other consideration received by, or otherwise payable to, Purchaser
from the third party assignee in connection with such assignment, in excess of
the Down Payment and any Progress Payments actually paid by Purchaser to
Supplier, other than the reasonable actual documented expenses incurred by
Purchaser in connection with the assignment of the Turbine Supply Documents to
the third party, shall be paid to Supplier and (iv) Purchaser shall pay to
Supplier all of Supplier’s costs associated with such assignment from Purchaser
to the third party assignee, including but not limited to all of Supplier’s
costs (including reasonable legal fees) incurred in connection with the
revision of the Turbine Supply Documents, within thirty (30) days of receipt of
an applicable invoice from Supplier.

 

16.4     Notices.

 

(a)           Any notice required or authorized to
be given hereunder or any other communications between the Parties provided for
under the terms of this Agreement shall be in writing (unless otherwise
provided) and shall be served personally or by reputable express courier
service or by facsimile transmission addressed to the relevant Party at the
address stated below or at any other address notified by that Party to the
other as its address for service. Any notice so given personally shall be
deemed to have been served on delivery, any notice so given by express courier
service shall be deemed to have been served two (2) Business Days after
the same shall have been delivered to the relevant courier, and any notice so
given by facsimile transmission shall be deemed to have been served on
dispatch. As proof of such service it shall be sufficient to produce a receipt
showing personal service, the receipt of a reputable courier company showing
the correct address of the addressee or an activity report of the sender’s
facsimile

 

27

 

machine
showing the correct
facsimile number of the Party on whom notice is served and the correct number
of pages transmitted.

 

(b)          The Parties’ addresses for service are:

 

	
   

  	
  To Purchaser:

  	
   

  	
  UPC Wind Acquisition V,
  LLC

  
	
   

  	
   

  	
   

  	
  c/o UPC Wind
  Management, LLC

  
	
   

  	
   

  	
   

  	
  85 Wells Ave.,
  Suite 305

  
	
   

  	
   

  	
   

  	
  Newton, MA 02459

  
	
   

  	
  Attn:

  	
   

  	
  General Counsel

  
	
   

  	
   

  	
   

  	
  Facsimile:

  	
  (617) 964-3342

  
	
   

  	
   

  	
   

  	
  Telephone:

  	
  (617) 964 3340

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  To Supplier:

  	
   

  	
  Clipper Turbine
  Works, Inc.

  
	
   

  	
   

  	
   

  	
  6305 Carpinteria
  Avenue, Suite 300

  
	
   

  	
   

  	
   

  	
  Carpinteria, California
  93013

  
	
   

  	
   

  	
   

  	
  Attn:

  	
  General Counsel

  
	
   

  	
   

  	
   

  	
  Facsimile:

  	
  805.899.1115

  
	
   

  	
   

  	
   

  	
  Telephone:

  	
  805.690.3275

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  with a copy to:

  	
   

  	
  Chadbourne &
  Parke LLP

  
	
   

  	
   

  	
   

  	
  350 South Grand Avenue,
  Suite 3300

  
	
   

  	
   

  	
   

  	
  Los Angeles, CA 90071

  
	
   

  	
   

  	
   

  	
  Attn:

  	
  Edward W. Zaelke

  
	
   

  	
   

  	
   

  	
  Facsimile: 

  	
  213.622.9865

  
	
   

  	
   

  	
   

  	
  Telephone: 

  	
  213.892.1000

  

 

16.5     Governing Law. This
Agreement and all matters arising hereunder or in connection herewith shall be
governed by and construed in accordance with the laws of the State of New York,
without regard to conflicts of law principles.

 

16.6     Amendments. This
Agreement may be modified or amended only by an instrument in writing signed by
the Parties hereto.

 

16.7     Attachments
Incorporated. The preamble and recitals of this Agreement, and the Exhibits
attached hereto, are hereby incorporated into and made a part of this
Agreement.

 

16.8     Entire Agreement.
The terms and conditions set forth herein, together with those set forth on all
Exhibits attached hereto, constitute the complete statement of the agreement
between Supplier and Purchaser relating to the subject matter hereof. No prior
statement or correspondence shall modify or affect the terms and conditions
hereof. Prior representations, promises, warranties or statements by Supplier
or Purchaser, or by any agent or employee of Supplier or Purchaser, that differ
in any way from the terms and conditions hereof shall be given no effect.

 

16.9     Confidentiality.
Each Party agrees to keep the terms and provisions of this Agreement and all
materials and information that each receives pursuant hereto or in connection
herewith or in connection with the Project in the strictest confidence and not
to disclose any of the foregoing to any party other than the respective
lenders, investors, attorneys, accountants, Affiliates,

 

28

 

officers
and directors of each Party or as such Party may be required by law, court
order or in any litigation to disclose. This Section 16.9 shall
survive the termination of this Agreement. Notwithstanding the foregoing,
Supplier shall be entitled to announce by press release or other means that it
has agreed to furnish the Turbines for the Project. The Parties agree that,
with respect to press releases concerning the Project, they will endeavor to
cooperate and share information with one another so that the Parties are
identified, to the extent practicable in press releases regarding the Project.
Supplier and Purchaser will each provide copies of all press releases issued
regarding the Project to the other. Furthermore, the restrictions of this Section 16.9
shall not prohibit or restrict Supplier from using or disclosing the
availability and performance data from the Project in connection with its
sales, maintenance and other internal purposes; provided, however, that no
specific reference shall be made to the Project in connection with the
disclosure of such data.

 

16.10   Counterparts. This
Agreement may be executed by the Parties in one or more counterparts, all of
which taken together, shall constitute one and the same instrument. The
exchange of copies of this Agreement and of signature pages by facsimile
transmission shall constitute effective execution and delivery of this
Agreement as to the Parties and may be used in lieu of the original Agreement
for all purposes (and such signatures of the parties transmitted by facsimile
shall be deemed to be their original signatures for all purposes).

 

16.11   English Language
Documents. Any document, manual, certificate or notice required or
authorized to be given hereunder for the operation of the Project shall be
provided in the English language.

 

16.12   Severability. In
case any provision in this Agreement is held to be invalid, illegal or
unenforceable, the validity, legality and enforceability of the remaining
provisions shall not be affected.

 

16.13   Headings. The
headings and captions used in this Agreement are inserted for reference and
convenience only and the same shall not limit or construe the sections,
articles or paragraphs to which they apply or otherwise affect the
interpretation thereof.

 

16.14   Agreement Revisions.
Following the execution of this Agreement by the Parties, if either Party
requests a change to the Agreement in order to (i) correct any
inconsistency contained within the Agreement or among the Turbine Supply
Documents or (ii) clarify any ambiguities in the Agreement to reflect the
intent of the Parties, then the Parties agree to work in good faith to amend
the language of the Agreement to conform to any such requested change.

 

29

 

IN WITNESS WHEREOF, this Agreement has been executed and delivered by
the duly authorized representatives of Purchaser and Supplier as of the date
first written above.

 

 

	
   

  	
   

  	
  CLIPPER
  TURBINE WORKS, INC.,

  
	
   

  	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  UPC
  WIND ACQUISITION V, LLC, 

  a Delaware limited liability company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Paul Gaynor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Paul
  Gaynor

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  President

  

 

[Signature Page to Turbine 

Supply Agreement]

 

 

IN WITNESS WHEREOF, this Agreement has been executed and delivered by
the duly authorized representatives of Purchaser and Supplier as of the date
first written above.

 

	
   

  	
   

  	
  CLIPPER
  TURBINE WORKS, INC.,

  
	
   

  	
   

  	
  a
  Delaware corporation

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/
  Robert Gates

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Robert
  Gates

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
  Sr.
  Vice Pres

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  UPC
  WIND ACQUISITION V, LLC, 

  a Delaware limited liability company

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  

 

[Signature Page to Turbine 

Supply Agreement]

 

 

APPENDIX I

 

DEFINITIONS

 

“Additional Cost Event” means (a) an Emergency, (b) a Force
Majeure Event or an Operating Force Majeure Event, (c) damage caused by an
act or omission of the Owner or a third party (other than an Affiliate,
Subcontractor or other agents or designees of the Operator) which is required
to be repaired in order for the Turbines to be operated and maintained in
accordance with the standard set forth in this Agreement, or (d) the
receipt by the Operator of a written request from the Owner for the Operator’s
performance of Additional OMS Services.

 

“Affiliate” means, with respect to any Party, any Person or entity
which, directly or indirectly, is in control of, or is controlled by, or is
under common control with such Party or any Subsidiary of such Party. For the
purposes of this definition, control of a Party shall mean the power, direct or
indirect, (a) to vote in excess of fifty percent (50%) or more of the
securities having ordinary voting power for the election of directors, (b) to
direct or cause the direction of the management and policies of such Party,
whether by contract or otherwise.

 

“After Tax Value” means an amount equal to the sum of any payment,
credit or other original amount (the “Original Amount”) plus an amount that
will cause the recipient to retain a sum equal to the Original Amount after
federal income taxes at the highest marginal rate are or would be imposed on
the After Tax Value.

 

“Agreement” means the Supply Agreement, the Warranty Agreement or the
OMS Agreement, as the context requires.

 

“Ancillary Parts and Equipment” means those ancillary parts, materials
and equipment listed in Exhibit A to the Supply Agreement, which
are typically required, together with the Major Turbine Components, to form a
Turbine.

 

“Annual Windsystem Availability” or “AWA” has the meaning given in Exhibit A
to the Warranty Agreement.

 

“Availability” has the meaning given in Exhibit A to the
Warranty Agreement.

 

“Available Hours” has the meaning given in Exhibit A to the
Warranty Agreement.

 

“Average Nominal Measured Energy” or “ANME” has the meaning given in Exhibit C
to the Warranty Agreement.

 

“AWA Period Revenue” shall have the meaning given in Exhibit A
to the Warranty Agreement.

 

“Base Hours” has the meaning given in Exhibit A to the
Warranty Agreement.

 

“Business Days” means Monday through Friday of each week, except
holidays in which commercial banks in the United States are required or
permitted to close.

 

 

I-1

 

“Change in Law” means, after the date hereof, the enactment,
modification or repeal or any Governmental Requirements, or any change in the
interpretation of any Governmental Requirements by any Governmental Authority
or court of law, that materially affects Supplier’s schedule for performing any
of its obligations hereunder; provided a change in applicable tax law shall not
constitute a “Change in Law” hereunder.

 

“Commencement Date” means the date upon which the Supplier shall have
timely received the entirety of (a) the Down Payment, (b) the Parent
Guaranty, and such other fees as may be applicable.

 

“Commissioning” or “Commissioning Work” means the installation
inspection, field commissioning and acceptance testing, and controller power-up
test, and start-up work to be conducted by Supplier under the Supply Agreement,
for each Turbine, in accordance with the Commissioning and Start-Up Procedures.

 

“Commissioning and Start-Up Procedures” means the field commissioning
and acceptable testing and start-up test and inspection procedures set forth on
Exhibit O of the Supply Agreement.

 

“Commissioning Certificate” means a certificate issued by Supplier to
Purchaser, in the form attached as Exhibit M to the Supply
Agreement, following completion of Commissioning of each Turbine.

 

“Complete” or “Completion” shall mean, with respect to any Turbine, that
(i) all Turbine Components have been delivered to the Project Site and
installed in accordance with the Installation Procedures, (ii) Purchaser
has completed the necessary terminations and connections of the collection
lines and the SCADA communication lines into the controller in the base of the
Turbine Tower using the collection lines and SCADA communication lines supplied
by Purchaser, and (iii) the Turbine has been Commissioned.

 

“Completion Schedule” shall mean the schedule for the completion by
Supplier and Purchaser, as applicable, of Turbine installation and
Commissioning as set forth in Exhibit T to the Supply Agreement.

 

“CPI” shall mean the Consumer Price Index for the United States City
Average, All Urban Consumers (CPI-U), All Items (base index year
1982-1984=100), as published by the United States Department of Labor, Bureau
of Labor Statistics.

 

“Default Rate” means a per annum rate of interest equal to the lesser of
(a) the maximum rate permitted by law and (b) twelve percent (12%)
per annum.

 

“Defect” means a defect in any part or component of a Turbine covered
under the Standard Warranty that causes such part or component to fail during
the Warranty Period. A component is deemed to have “failed” only when it either
(i) breaks, or (ii) ceases to perform the operation for which it was
designed, intended or installed; provided, however, that normal wear and tear
shall not constitute failure.

 

I-2

 

“Delivery” or “Delivered” means when a Supply Item is made available by
Supplier for pickup by Purchaser at its respective Designated Delivery
Location, provided however, that Purchaser may not take custody and control of
the said Supply Item until the applicable Progress Payment has been made by
Purchaser and received by Supplier.

 

“Delivery Schedule” shall mean the schedule as set forth in Exhibit L
to the Supply Agreement for the Delivery by Supplier of the Supply Items to the
Designated Delivery Locations.

 

“Designated Delivery Location” shall have the meaning given in Section 5.4
of the Supply Agreement.

 

“Down Payment” shall have the meaning given in Section 3.1
of the Supply Agreement.

 

“Down Payment Date” shall have the meaning given in Section 3.1
of the Supply Agreement.

 

“Effective Date” shall mean the date of the Supply Agreement.

 

“Electrical Infrastructure” means the pad mounted transformers, feeder
lines, high voltage feeder lines, switches and all other related facilities
owned by Purchaser through which the electrical power generated by the Turbine
is transferred from the point of connection at the Turbine Controller to the
Interconnection Facilities.

 

“Emergency” means an event occurring at the Project Site, or the
Maintenance and Spare Parts Facility or any adjoining property that poses
actual or imminent risk of serious personal injury or material physical damage
to the Project, or parts thereof, requiring immediate preventative or remedial
action.

 

“Environmental Laws” means all laws, rules, regulations, codes,
ordinances, orders, decrees, judgments, injunctions, notices or binding
agreements issued, promulgated or entered into by any Governmental Authority,
relating in any way to the environment, preservation or reclamation of natural
resources, the management, environmental release or threatened environmental
release of any Hazardous Substance or to health and safety matters, including
the Comprehensive Environmental Response, Compensation, and Liability Act of
1980, 42 U.S.C. §§ 9601 et seq.; the Resource Conservation and Recovery Act, as
the same may be amended from time to time, 42 U.S.C. §§ 6901 et seq.; the
Federal Water Pollution Control Act, 33 U.S.C. §§ 1251 et seq.; the Toxic
Substances Control Act, 15 U.S.C. §§ 2601 et seq.; the Clean Air Act, 42 U.S.C.
§§ 7401 et seq.; the Safe Drinking Water Act, 42 U.S.C. §§ 3803 et seq.; the
Oil Pollution Act of 1990, 33 U.S.C. §§ 2701 et seq.; the Emergency Planning
and the Community Right-to-Know Act of 1986, 42 U.S.C. §§ 11001 et seq.; the
Hazardous Material Transportation Act, 49 U.S.C. §§ 1801 et seq. and the
Occupational Safety and Health Act, 29 U.S.C. §§ 651 et seq.; and any state and
local counterparts or equivalents, in each case as amended from time to time.

 

“EPC Contract” means that certain agreement(s), if any, by and between
Purchaser and EPC Contractor(s), for the erection of the Turbine and the
design, supply, construction, installation and commissioning of (i) crane
pads, laydown areas, temporary construction roads

 

I-3

 

and storage yards, (ii) permanent
roads, Turbine foundations and transformer foundations, (iii) the
Electrical Infrastructure, (iv) the SCADA System, including communication
lines, (v) any control and operation and maintenance buildings and
facilities (vi) and other civil and electrical elements and other work for
the Project.

 

“EPC Contractor(s)”
means such person or entity selected by Purchaser as principal contractor for
performing work under the EPC Contract.

 

“Escrow Agent”
means such party as agreed upon by Supplier and Purchaser to serve as the escrow
agent.

 

“FAA” means the
Federal Aviation Administration.

 

“Final Assembly
Work” shall mean the final assembly work for the completion of Turbine
component assembly, as set forth in Exhibit P to the Supply
Agreement, prior to the installation of the Turbine.

 

“Financing
Documents” means the financing agreement, by and among the Purchaser or one of
its Affiliates, and the lenders or other financial institutions from time to
time party thereto by which the Purchaser or one of its Affiliates intends to
raise capital to finance the construction of the Project.

 

“Force Majeure
Event” means any event beyond the reasonable control of the Party affected
which materially affects its performance hereunder, including, without
limitation: war, hostilities, insurrection, riot, vandalism or other public
disorder or civil disturbance; terrorism; perils at sea, acts of God, fire,
hurricanes, tornadoes (including tornado watches or warnings for the Project
Site issued by the National Weather Service), mudslides, hail, earthquakes,
lightning, other extreme weather conditions, and, during Commissioning or
repairs, wind in excess of fifteen (15) meters per second or that would make
necessary lifting unsafe, but only for so long as such winds persist;
expropriation or confiscation; strikes, lockouts or other labor disputes;
perils at sea; or unforeseen delays in transportation or shipping, including
with respect to roadways, harbors, ports and other transportation and shipping
infrastructure; any Change in Law; or damage to any part of Supplier’s
factories or assembly plants, or the factories or assembly plants of its
Subcontractors. Force Majeure Events shall include those Force Majeure Events
experienced by any of Supplier’s Subcontractors in circumstances where Supplier
is not able to reasonably reallocate the work of that Subcontractor to an
alternative vendor.

 

“Germanischer
Lloyd” means Germanischer Lloyd Windenergie GMBH.

 

“Germanischer
Lloyd Turbine Certification”, “GL Certificate” or “GL Certified” means a
certification of the Turbine to be issued by Germanischer Lloyd.

 

“Governmental
Authority” means the government or any federal, state, municipal or other
political subdivision in which the Project is located, or any other
governmental or political subdivision thereof exercising jurisdiction over the
Project or, with respect to their rights and obligations hereunder or, with
respect to the Project, the Parties, including all agencies and
instrumentalities of such governments and political subdivisions.

 

I-4

 

“Governmental
Requirements” means all laws, statutes, codes, rules, regulations, orders, and
decrees of any Governmental Authority in effect on the date hereof, including
all authorizations, consents, registrations, exemptions, Permits and licenses
with or from any Governmental Authority, applicable to the Project or, with
respect to their rights and obligations hereunder or with respect to the
Project, the Parties.

 

“Guarantor” means
UPC Wind Partners, LLC as guarantor under that certain Guaranty to be entered
into between Supplier and UPC Wind Partners, LLC.

 

“Hazardous
Substances” means all explosive or radioactive substances or wastes and all
hazardous or toxic substances, wastes or other pollutants, including petroleum
or petroleum distillates, asbestos or asbestos containing materials,
polychlorinated biphenyls, radon gas, infectious or medical wastes and all
other substances or wastes of any nature regulated pursuant to any
Environmental Law.

 

“Independent
Engineer” means Garrad Hassan, Germanischer Lloyd, the National Renewable
Energy Laboratory, or Global Energy Concepts, or such other independent
engineer as mutually agreed.

 

“Installation
Procedures” means the procedures for the proper (i) assembly, erection and
installation of the Towers on the Turbine foundations supplied by Purchaser, (ii) grouting
of the Turbines to the Tower foundations and tightening of all bolts using the
appropriate torque; (iii) assembly, erection and installation of the
Turbine Nacelles and Turbine Blades upon the Towers as specified in the Turbine
Specifications, Prudent Wind Industry Practices and Prudent Electrical Industry
Practices; (iv) installation and testing of the Turbine electrical cables,
communication cables, and control panels within the Turbine, and (v) connection
of the cables from each Turbine Nacelle to the main circuit breaker within the
ground controllers, all in accordance with the Turbine Installation Manual.

 

“Installation Work”
means the work required pursuant to the Installation Procedures to assemble,
erect and install the Turbines.

 

“Intellectual
Property Rights” means and refers to all patents, copyrights, trademarks,
service marks, trade secrets and all similar and related intellectual property
rights protected under any statutes, laws, codes, rules or regulations and
any licenses and other rights obtained by Supplier or its Affiliates from third
parties.

 

“Interconnection
Facilities” means all the land rights, materials, equipment and facilities to
be installed by Purchaser for the purpose of interconnecting the Turbines to
the Project’s substation so as to permit the delivery of electrical energy
generated by the Turbines to the interconnection point within the Project’s
substation, which shall include, but shall not be limited to, electrical interconnection,
switching, metering, relaying, communication and safety equipment.

 

“Lenders” shall
mean those lenders providing financing for the Project.

 

“Maintenance and
Spare Parts Facility” means the location from which Operator will perform the
OMS Services.

 

I-5

 

“Major Turbine
Components” means the Turbine Nacelle, Turbine Controller, Turbine hub, Turbine
Blades and Tower for each Turbine, as such items are more particularly
described in the Turbine Specifications.

 

“Nominal Expected
Energy” or “NEE” has the meaning given in Exhibit C of the Warranty
Agreement.

 

“Nominal Measured
Energy” or “NME” has the meaning given in Exhibit C of the Warranty
Agreement.

 

“OMS Agreement”
means that certain Operation and Maintenance Service Agreement, executed or to
be executed between Supplier (or an Affiliate of Supplier) and Purchaser (or an
Affiliate of Purchaser) of even date herewith, pursuant to which Supplier (or
an Affiliate of Supplier) will operate, maintain and service the Turbines.

 

“OMS Manual” means
the detailed operations, and maintenance service manual for the Turbines
supplied to Purchaser by Supplier, together with any future updates and
supplements thereto provided by Supplier.

 

“Operating Force
Majeure Events” means any event beyond the reasonable control of Supplier or
Operator, as applicable, including, without limitation, (i) war,
hostilities, insurrection, riot, vandalism or other public disorder or civil
disturbance; acts of God, fires, hurricanes, thunder storms (including thunder
storm watches or warnings declared for the area including the Project Site by
the National Weather Service), tornadoes (including tornado watches or warnings
declared for the area including the Project Site by the National Weather
Service), mudslides, hail, earthquakes, lightning (including lightning blade
strikes), or explosions; expropriation or confiscation, strikes, lockouts or
other labor disputes, a Change in Law; epidemic or quarantine; damage or
obstruction to any part of the Project caused by persons other than Supplier,
its Affiliates or their respective Subcontractors; a condition at the Site that
would not reasonably have been discovered by a project supplier comparable in
experience to Supplier conducting a competent and diligent visual inspection, (ii) wind
velocity at a constant speed or in gusts such that a reasonably prudent
professional qualified operator engaged in the business of performing routine
maintenance on wind energy generation facilities comparable to the Project
owned by it, acting for the advancement and protection of its own economic
interests, would not make the required repair at such time due to risks to
persons or property, (iii) with respect to the Turbines, any conditions at
the Project Site that are either outside the operating parameters or standards
for an IEC Class IIB wind turbine, as published as of the Effective Date
by the IEC, or outside the operating parameters or standards for the Turbine,
as set forth in the Turbine Specifications, which operating parameters or
standards may include, without limitation, conditions involving ambient
temperatures or wind speed and/or turbulence at the air density at the Project
Site, (iv) delays caused by inclement weather within the vicinity of the
Project Site and affecting the operation of the Project to the extent that such
inclement weather is materially greater than that normally experienced for the
time of year and locality and (v) unavailability of the grid for any
reason not caused by Supplier. The failure to provide Interconnection
Facilities that are energized and operational in a manner that will permit the
transmission and sale of

 

I-6

 

power from a Turbine and
related Electrical Infrastructure shall be deemed an Operating Force Majeure
Event with respect to such Turbine until such time as the Interconnection
Facilities are provided and sufficiently operational with respect to each such
Turbine.

 

“Operator” shall
mean the person or entity hired by Project Manager to operate the Project
pursuant to the OMS Agreement.

 

“Party” and “Parties”
has the meaning given in the Preamble to the Supply Agreement.

 

“Permit” means any
valid waiver, exemption, variance, franchise, permit, authorization, license or
similar order, of or from any federal, state, county, municipal, local,
regional, or other governmental body, instrumentality, agency, authority, court
or other body having jurisdiction over the matter in question.

 

“Power Curve”
means the energy values produced by the Turbines at the various wind speed
bands set forth in Exhibit C-2 of the Warranty Agreement.

 

“Power Curve
Warranty Buydown” means any payment made pursuant to Section 3.3(c) of
the Warranty Agreement.

 

“Progress Payment”
shall have the meaning given in Section 3.3 of the Supply
Agreement.

 

“Project” has the
meaning given in the Recitals of the Supply Agreement.

 

“Project
Completion” shall occur upon the Completion of the Turbines.

 

“Project
Completion Certificate” shall mean a certificate, in the form attached as Exhibit N
to the Supply Agreement, delivered by Supplier to Purchaser following
Completion of Commissioning of the Turbines.

 

“Project Site”
means the site described in Exhibit O of the Supply Agreement.

 

“Proven Power Curve
Percentage” or “PPCP” shall have the meaning given in Exhibit B to
the Warranty Agreement.

 

“Prudent
Electrical Industry Practices” means those practices, methods, standards and
acts (including those engaged in or approved by a significant portion of the
power industry for similar facilities in the United States) that at a
particular time in the exercise of good judgment would have been expected to
comply with Governmental Requirements, and to promote safety, environmental
protection, economy and expedition.

 

“Prudent Wind
Industry Practices” means standards and practices that are widely accepted by
the wind energy industry for wind projects of this size and that are prudently
applied and reasonably anticipated and intended to maximize output and productivity
of the Turbines, consistent with their intended design lives.

 

I-7

 

“PTC Benefits”
means the tax credits that Purchaser may be eligible to claim for the
production of renewable energy by the Project in accordance with Section 45
of the United States Internal Revenue Code, as in effect as of the date of this
Agreement.

 

“Purchaser”
includes the named Purchaser identified in the Preamble to the Supply Agreement
and its successors and permitted assigns.

 

“Purchaser Permits”
mean all Permits required in connection with the development, construction,
ownership and operation of the Project, other than the Supplier Permits.

 

“SCADA System”
means a supervisory control and data acquisition system, including a central
computer and related software, whether supplied and installed by Supplier or by
a third party, as more particularly described in the SCADA System
Specifications.

 

“SCADA System
Installation Manual” means the manual attached to the Supply Agreement as Exhibit V.

 

“SCADA System
Specifications” means those specifications set forth on Exhibit U
to the Supply Agreement, pertaining to the SCADA System.

 

“Services” shall
mean the Commissioning Work.

 

“Site Agreements”
means any agreement between Purchaser, Project Manager, Supplier or Operator,
and any third party, with respect to the operation or maintenance of the
Project.

 

“Subcontractors”
means such subcontractors, consultants or suppliers which in the Supplier’s
reasonable judgment may be necessary to complete Supplier’s duties and
obligations under the Supply Agreement.

 

“Supplier”
includes the named Supplier identified in the Preamble to the Supply Agreement
and its successors and permitted assigns.

 

“Supplier Permits”
means the Supplier Permits listed on Exhibit R to the Supply
Agreement.

 

“Supply Agreement”
means the Turbine Supply Agreement dated as of December 31, 2007 by and
between Supplier and Purchaser and any amendments thereto.

 

“Supply Items”
means, collectively, the Major Turbine Components and Ancillary Parts and
Equipment.

 

“Supply
Obligations” means Supplier’s obligations under the Supply Agreement to (i) supply
Purchaser the Supply Items and (ii) provide Purchaser certain services in
connection with the Supply Items, including (a) supplying, packing,
shipping and Delivering all Supply Items to their Designated Delivery
Locations; (b) at Purchaser’s request, providing a technical adviser to be
present at the Project Site during Turbine Installation; and (c) performing
the Commissioning Work.

 

I-8

 

“Testing Engineer”
means Garrad Hassan Germanischer Lloyd, the National Renewable Energy
Laboratory, or Global Energy Concepts, or such other independent engineer as
mutually agreed.

 

“Tower” means each
77.4 meter steel tubular tower component of a Turbine having a hub height of
approximately eighty meters (80 m) (measured from the base of such tower to the
center of the Turbine hub) upon which a Turbine Nacelle shall be mounted,
including all ladders, platforms, internal lighting, safety equipment, and all
parts and assemblies necessary for a complete turbine tower, all as further
described in the Turbine Specifications.

 

“Tower Foundation
Requirements” means Supplier’s requirements for the foundation upon which the
Towers are to be erected (which shall specify foundation loads, bolt
configuration, cable configuration and grounding requirements).

 

“Transferee
Agreement and Acknowledgement” means the Agreement and Acknowledgement executed
by Owner and delivered to Supplier in the form attached hereto as Exhibit K
to this Agreement.

 

“Transmission
Facilities” mean the underground and/or overhead distribution, collection and
transmission lines; underground and/or overhead control, communications and
radio relay systems and telecommunications equipment; energy storage
facilities; interconnection and/or switching facilities, circuit breakers,
transformers; cables, wires, fiber, conduit, footings, foundations, towers,
poles, crossarms, guy lines and anchors, and any related or associated
improvements, fixtures, facilities, appliances, machinery and equipment.

 

“Turbine” has the
meaning given in the Recitals to the Supply Agreement.

 

“Turbine Blade”
means a turbine blade component of a Turbine (each Turbine shall have three (3) Turbine
Blades).

 

“Turbine Component
Storage Requirements” means Supplier’s standard requirements for storage and
maintenance of Turbine Components pending installation.

 

“Turbine
Controller” means the circuit breaker and controller equipment for each Turbine
as further described in the Turbine Specifications.

 

“Turbine
Installation Manual” means Supplier’s detailed manual for the Installation
Work.

 

“Turbine Nacelle”
means the turbine nacelle component of a Turbine, including gearbox, generators,
blade pitch controls, brakes, hydraulic systems, lightning protection system,
and nacelle yaw controls, and associated control and ancillary equipment.

 

“Turbine
Specifications” means those specifications set forth in Exhibit S
to the Supply Agreement pertaining to the Turbines.

 

“Turbine Supply
Documents” means, collectively, the Supply Agreement, the Warranty Agreement,
the OMS Agreement and all other agreements, documents or other instrument

 

I-9

 

executed and delivered by
the Parties hereto in connection with the supply, installation (if applicable)
and maintenance of the Turbines.

 

“Warranted Power
Curve Percentage” or “WPCP” has the meaning given in Exhibit B to
the Warranty Agreement.

 

“Warranties” means
the Standard Warranty, the Availability Warranty, the Power Curve Warranty, the
Sound Warranty, and the IP Warranty given hereunder.

 

“Warranty
Agreement” means that certain warranty agreement by and between Supplier and
Purchaser of even date herewith, pursuant to which Supplier makes certain
covenants and warranties to Purchaser with respect to the Major Turbine
Components supplied pursuant to this Agreement.

 

“Warranty Period
Year” means, for the Turbines, the period beginning on the earlier of (a) the
date of Project Completion, or (b) six (6) months after the last
Major Turbine Component is Delivered to Purchaser, and ending exactly twelve
(12) months thereafter, and each of the following four (4) twelve (12)
month periods thereafter; provided, however that the last of such periods shall
not extend beyond the end of the Warranty Period.

 

I-10

 

EXHIBIT J

 

Guaranty

 

This GUARANTY (this “Guaranty”)
is made as of
              
2007, by UPC WIND PARTNERS, LLC, a Delaware limited liability company having a
primary place of business at c/o UPC Wind Management, LLC, 85 Wells Avenue, Suite 305,
Newton, MA 02459 (“Guarantor”), and CLIPPER TURBINE WORKS, INC., a Delaware
corporation having a primary place of business at 6305 Carpinteria Avenue,
Carpinteria, California 93103 (“Seller”). Guarantor and Seller are referred to
herein collectively as the “Parties” and individually as a “Party”. Unless
otherwise defined in this Guaranty, all capitalized terms used in this Guaranty
shall have the meanings ascribed thereto in the Contract (as defined below).

 

RECITALS:

 

WHEREAS,
UPC Wind Acquisition V, LLC (“Buyer”) and Seller entered into that certain
Turbine Supply Agreement dated as of December 31, 2007 (the “Contract”), for
the delivery of thirty five (35) wind turbines, ancillary equipment and certain
related services;

 

WHEREAS,
Guarantor is the owner of all the membership interests of Buyer and Guarantor
is willing to enter into this Guaranty to satisfy Purchaser’s obligation to
deliver a Guaranty required pursuant to the Contract on the terms and
conditions set forth below; and

 

WHEREAS,
Seller is willing to accept this Guaranty in satisfaction of Buyer’s obligation
to deliver a Guaranty required pursuant to the Contract on the terms and
conditions set forth below.

 

NOW,
THEREFORE, in consideration of the premises and mutual
covenants set forth herein and other good and valuable consideration, the
receipt and sufficiency of which is hereby acknowledged, the Parties hereto
agree as follows:

 

1.        Pursuant to the terms and conditions of
this Guaranty, Guarantor, as a primary obligor and not merely as a surety,
hereby unconditionally and irrevocably guarantees to Seller the prompt payment
in full of each Payment (as defined below). If (a) Buyer receives from
Seller an invoice for a payment (each, a “Payment”) pursuant to the Contract
and; (b) Buyer fails to pay such Payment to Seller in full when due in
accordance with the requirements of the Contract; and (c) Seller makes
written demand upon Guarantor for payment of the amount of such Payment not so
paid by Buyer; Guarantor hereby agrees that it shall pay, or cause to be paid,
to Seller on or prior to the date that is five (5) Business Days following
Guarantor’s receipt of such demand (such date, the “Last Payment Date”) the
balance of such Payment that has not been paid by Buyer to Seller. Guarantor
shall have sufficient funds on or prior to the Last Payment Date to satisfy
Guarantor’s obligations under this Guaranty. If Guarantor pays to Seller any
amount of such Payment due and payable pursuant to the terms and conditions of
this Guaranty, Buyer’s payment obligations with respect to such Payment arising
under the Contract (such obligations, the “Obligations”) shall be deemed satisfied
to the extent of the amount of any such payment, and Buyer shall have no
further obligations to Seller pursuant to the Contract with respect to the
payment of such amount of such Payment. All payments made by Guarantor pursuant
to this Guaranty shall be made without any deduction, offset, counterclaim or
setoff of any kind. All existing and future indebtedness of, or other
obligations owed by, Buyer to Guarantor is hereby subordinated to all
obligations of Buyer to Seller under the Contract. Guarantor hereby
unconditionally and irrevocably waives and relinquishes, to the maximum extent
permitted by

 

J-1

 

applicable law, all
rights and remedies accorded to sureties or guarantors and agrees not to assert
or take advantage of such rights or remedies.

 

2.        Seller acknowledges and agrees that the
current maximum amount of all Payments that may be payable under the Contract
(which may only be increased pursuant to a Change Order) (and the maximum
amount of Guarantor’s obligations in connection with and/or arising under this
Guaranty) is equal to ***** Dollars ($*****).

 

3.        This Guaranty shall terminate and be of
no further effect upon the earliest of (a) payment in full of the
Obligations under the Contract; and (b) the mutual agreement of Guarantor
and Seller.

 

4.        This Guaranty shall be binding upon, and
shall inure to the benefit of, the Parties hereto and their respective
successors and permitted assigns; provided, however, that neither Party may
pledge, assign or otherwise transfer any of its rights or obligations under
this Guaranty without the prior written consent of the other Party, and any
such attempted pledge, assignment or transfer shall be null and void ab initio.

 

5.        THIS GUARANTY SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK, UNITED STATES
OF AMERICA, WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THEREOF (OTHER
THAN SECTION 5-1401 OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW
YORK).

 

[Signature Page Follows]

 

J-2

 

IN WITNESS
WHEREOF, the Parties hereto have caused this Guaranty to be executed by their
respective authorized representatives as of the date first written above.

 

	
  UPC
  WIND PARTNERS, LLC

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
	
   

  	
   

  
	
  CLIPPER TURBINE WORKS,
  INC.

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  
					

 

J-3Exhibit 10.7

 

EXECUTION VERSION

 

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.

 

ENERGY MANAGEMENT SERVICES AGREEMENT

 

BY AND AMONG

 

EVERGREEN WIND POWER, LLC

 

AND

 

NEW BRUNSWICK POWER GENERATION CORPORATION

 

 

	
  ARTICLE
  1. DEFINITIONS

  	
   

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
  1.0

  	
  Definitions

  	
   

  	
  1

  
	
  1.1

  	
  Other
  Defined Terms

  	
   

  	
  8

  
	
  1.2

  	
  Rules of
  Construction

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  2. CONDITIONS PRECEDENT; TERM

  	
   

  	
  10

  
	
   

  	
   

  	
   

  	
   

  
	
  2.0

  	
  Conditions
  Precedent of Buyer

  	
   

  	
  10

  
	
  2.1

  	
  Conditions
  Precedent of Seller

  	
   

  	
  10

  
	
  2.2

  	
  Closing

  	
   

  	
  11

  
	
  2.3

  	
  Term

  	
   

  	
  11

  
	
  2.4

  	
  Commercial
  Operation Date

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  3. PURCHASE OF ENERGY BY BUYER

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  
	
  3.0

  	
  Sale
  and Purchase Obligations

  	
   

  	
  12

  
	
  3.1

  	
  Deliveries

  	
   

  	
  12

  
	
  3.2

  	
  Delivered
  Electricity Price

  	
   

  	
  12

  
	
  3.3

  	
  Test
  Energy Price

  	
   

  	
  12

  
	
  3.4

  	
  Delivery
  Costs

  	
   

  	
  12

  
	
  3.5

  	
  Delivery
  Minimum

  	
   

  	
  13

  
	
  3.6

  	
  NERC
  Tags

  	
   

  	
  13

  
	
  3.7

  	
  Delivery
  to ISO-NE

  	
   

  	
  13

  
	
  3.8

  	
  Scheduling
  Fee

  	
   

  	
  14

  
	
  3.9

  	
  RECs

  	
   

  	
  14

  
	
  3.10 

  	
  Capacity
  Value

  	
   

  	
  14

  
	
  3.11 

  	
  Rates
  and Charges Not Subject to Review

  	
   

  	
  14

  
	
  3.12 

  	
  Costs
  and Charges

  	
   

  	
  14

  
	
  3.13

  	
  Title
  and Risk of Loss

  	
   

  	
  15

  
	
  3.14 

  	
  Standard
  of Operation

  	
   

  	
  15

  
	
  3.15 

  	
  Operating
  Procedures

  	
   

  	
  15

  
	
  3.16 

  	
  Outages

  	
   

  	
  16

  
	
  3.17 

  	
  Electricity
  Output Communications

  	
   

  	
  16

  
	
  3.18 

  	
  Power

  	
   

  	
  16

  
	
  3.19 

  	
  Taxes

  	
   

  	
  16

  
	
  3.20 

  	
  Exclusive
  Nature of Agreement

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  4. REPRESENTATIONS AND WARRANTIES

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  
	
  4.0

  	
  Representations
  and Warranties

  	
   

  	
  17

  
	
  4.1

  	
  Specified
  Authorizations

  	
   

  	
  18

  
	
  4.2 

  	
  No
  Immunity

  	
   

  	
  18

  
	
  4.3

  	
  No
  Other Representations and Warranties

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE
  5. EVENTS OF DEFAULT AND termination; REMEDIES and early TERMINATION

  	
   

  	
  18

  

 

i

 

	
  5.0

  	
  Events of Default

  	
   

  	
  18

  
	
  5.1

  	
  Events of Termination

  	
   

  	
  20

  
	
  5.2

  	
  Early Termination

  	
   

  	
  20

  
	
  5.3

  	
  Survival

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6. BILLING AND PAYMENT; RECORDS

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  
	
  6.0

  	
  Billing and Payment

  	
   

  	
  22

  
	
  6.1

  	
  Interest on Late Payments

  	
   

  	
  22

  
	
  6.2

  	
  Disputed Amounts

  	
   

  	
  22

  
	
  6.3

  	
  Records

  	
   

  	
  22

  
	
  6.4

  	
  Currency

  	
   

  	
  22

  
	
  6.5

  	
  Audit

  	
   

  	
  23

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7. ASSIGNMENT; BINDING EFFECT

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  7.0 

  	
  Assignment

  	
   

  	
  24

  
	
  7.1

  	
  Binding Effect

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8. FORCE MAJEURE; INDEMNITY; LIMITATION OF LIABILITY

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  
	
  8.0 

  	
  Force Majeure

  	
   

  	
  24

  
	
  8.1

  	
  Indemnification

  	
   

  	
  25

  
	
  8.2

  	
  Limitations of Remedies, Liability and Damages

  	
   

  	
  25

  
	
  8.3

  	
  Duty to Mitigate

  	
   

  	
  25

  
	
  8.4

  	
  Interruption

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9. FINANCIAL ASSURANCES

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  9.0

  	
  Credit Support

  	
   

  	
  26

  
	
  9.1

  	
  Increases or Reductions in Credit Support

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10. CONFIDENTIALITY

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  10.0 

  	
  Confidentiality

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 11. NOTICES AND ADDRESS FOR PAYMENT 

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  11.0 

  	
  Notices

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 12. DISAGREEMENTS

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  
	
  12.0 

  	
  Negotiations

  	
   

  	
  31

  
	
  12.1 

  	
  Arbitration

  	
   

  	
  31

  
	
  12.2 

  	
  Settlement Discussions

  	
   

  	
  32

  
	
  12.3 

  	
  Preliminary Injunctive Relief

  	
   

  	
  33

  
	
  12.4 

  	
  Confidential Proceedings

  	
   

  	
  33

  
	
  12.5 

  	
  Submission to Jurisdiction

  	
   

  	
  33

  

 

ii

 

	
  ARTICLE 13. MISCELLANEOUS

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  
	
  13.0

  	
  Entirety

  	
   

  	
  33

  
	
  13.1

  	
  Choice of Law

  	
   

  	
  33

  
	
  13.2

  	
  Non-Waiver

  	
   

  	
  33

  
	
  13.3

  	
  Headings; Attachments

  	
   

  	
  34

  
	
  13.4

  	
  Counterparts

  	
   

  	
  34

  
	
  13.5

  	
  Forward Contract

  	
   

  	
  34

  
	
  13.6

  	
  Other

  	
   

  	
  34

  

 

	
  SCHEDULES

  	
   

  
	
   

  	
   

  
	
  SCHEDULE A 

  	
  Delivered Electricity Price

  
	
  SCHEDULE B 

  	
  Minimum Delivered Electricity Amount 

  
	
  SCHEDULE C 

  	
  Scheduling Fee

  
	
  SCHEDULE D 

  	
  Exposure Amount Calculation

  
	
  SCHEDULE E

  	
  Initial Mass Hub Index

  
	
   

  	
   

  
	
  EXHIBITS

  	
   

  
	
   

  	
   

  
	
  EXHIBIT A 

  	
  Operating Procedures

  
	
  EXHIBIT B 

  	
  Form of Initial Seller LC

  
	
  EXHIBIT C 

  	
  Form of Initial Buyer LC

  
	
  EXHIBIT D

  	
  Form of Assignment Agreement

  

 

iii

 

ENERGY MANAGEMENT SERVICES AGREEMENT

 

This Energy Management Services Agreement is entered into as of the
31st day of July, 2006, by and between Evergreen Wind Power, LLC, a Delaware
limited liability company with principal offices located c/o UPC Wind
Management, LLC, 100 Wells Ave., Suite 201, Newton, MA, USA (“Seller”),
and New Brunswick Power Generation Corporation, a corporation created under the
Business Corporations Act of New Brunswick, having its head office at 515 King
Street, P.O. Box 2040, Fredericton, New Brunswick, Canada (“Buyer”).

 

RECITALS

 

1.             Seller
is the operator of a wind generation facility that is located on the Premises
(as defined below) owned by Seller.

 

2.             Buyer
wishes to purchase and Seller wishes to sell electric energy from the Facility
delivered to the Delivery Point (as defined below) in accordance with the terms
herein.

 

3.             Buyer
wishes to transfer energy produced by the Seller to the New England market.

 

AGREEMENT

 

NOW THEREFORE, in consideration of the mutual promises contained herein
and other good and valuable consideration, Buyer and Seller agree as follows:

 

ARTICLE 1.

 DEFINITIONS

 

1.0          Definitions.  As used in this Agreement, the following terms
shall have the respective meanings set forth below.

 

“Acceptable
Financial Institution” means a United States commercial bank or
foreign commercial bank with a United States office, with a minimum of one
billion U.S. dollars capital and surplus, in each case with a credit rating of
at least A- by S&P or A3 by Moody’s.

 

“Affiliate”
means any Person that directly or indirectly Controls, is Controlled by, or is
under common Control with the Person in question.

 

“Agreement”
means this Energy Management Services Agreement, including all Schedules and
Exhibits attached hereto.

 

“Affected
Party” means the party declaring a Force Majeure event as set forth
in Section 8.0.

 

 

“Business
Day” means a day on
which Federal Reserve member banks in New York, New York are open for business.

 

“Buyer
Credit Support” means
the Initial Buyer LC or any replacement credit support provided by Buyer pursuant
to Article 9, as such Initial Buyer LC or replacement credit support is
reduced or increased pursuant to Article 9.

 

“Buyer
Electricity Index”
shall mean the ***** used to calculate the Buyer Exposure Amount pursuant to
Schedule D attached hereto. An example of the Buyer Electricity Index is
included as Schedule D attached hereto.

 

“Buyer
Exposure Amount”
means, at any given time, the amount determined in accordance with Part I
of Schedule D attached hereto. A sample calculation of the Buyer Exposure
Amount is also set forth in Part I of Schedule D.

 

“Capacity
Value” shall mean all
credits or value associated to the forced or unforced capacity of the Facility.

 

“COD
Deadline” shall mean July 31,
2007, except that the COD Deadline shall be extended day for day for any
extension of the Scheduled Commercial Operation Date pursuant to the definition
thereof.

 

“Commercial
Operation Date” means
2 days after the Seller provides written notice to the Buyer that all of the
following conditions have been satisfied: (i) the Interconnection
Agreement has been executed and delivered, (ii) all Turbines at the
Facility have been installed and are able to generate Excess Electricity, and (iii) a
third party engineer has certified that the Facility is complete and ready for
commercial operation and all related facilities and rights have been completed
or obtained, including such facilities and rights contemplated by the
Interconnection Agreement, to allow regular operation.

 

“Construction
Delay Damages” means,
for any given calculation period from the Scheduled Commercial Operation Date
until the Commercial Operation Date, *****. For the avoidance of doubt, for any
given calculation period from the Scheduled Commercial Operation Date until the
Commercial Operation Date, *****.

 

“Control” means the possession or ownership, directly
or indirectly, of the following: (a) in the case of (i) a
corporation, 50% or more of the outstanding voting securities thereof, (ii) a
limited liability company, partnership, limited partnership or joint venture,
the right to 50% or more of the distributions therefrom (including liquidating
distributions), (iii) a trust or estate, 50% or more of the beneficial
interest therein or (iv) any other entity, 50% or more of the

 

2

 

economic or beneficial interest therein; and (b) the
power or authority, through the ownership of voting securities, by agreement or
otherwise, to direct the management, activities or policies of the applicable
Person. The terms “Controlled by” and “under common Control with” have correlative meanings.

 

“Costs” means any brokerage fees,
commissions and other transactional costs and expenses reasonably incurred by a
party either as a result of terminating any hedges, forward energy or attribute
sales or other risk management agreements and/or entering into new arrangements
to replace this Agreement (following the early termination thereof) or the
deliveries of electricity that were to have been made hereunder, and, in the
case of an Event of Default, reasonable legal costs incurred by the
Non-Defaulting Party in enforcing its rights under this Agreement.

 

“Credit Support” means Buyer Credit Support and/or Seller
Credit Support.

 

“Credit Support Calculation Date” means the last Business Day of any calendar
quarter and, if applicable, any interim Margin Call Date or interim Credit
Support Reduction Date occurring during any calendar quarter, whether such
Margin Call Date or Credit Support Reduction Date, as the case may be, is declared
by the Seller or the Buyer pursuant to the
applicable definitions thereof.

 

“Credit Support Reduction Date” means any Business Day on which (a) the
sum of the Baseline Buyer Credit Support Amount plus the applicable Seller Exposure Amount on such
Business Day is less than the Buyer Credit Support posted on such Business Day
by $***** or more or (b) the sum of the Baseline
Seller Credit Support Amount plus the
applicable Buyer Exposure Amount on such Business Day is less than the Seller
Credit Support posted on such Business Day by $***** or more.

 

“Creditworthy Affiliate” means an affiliate of a party with an
Investment Grade credit rating.

 

“Current Mass Hub Index” means the Mass Hub Index determined on any
given Credit Support Calculation Date.

 

“Defaulting Party” means, in the case of an Event of Default,
the party that is in default under Section 5.0.

 

“Default Rate” means the lesser of (a) Interest Rate plus three percent (3%) or (b) the
maximum rate permitted by applicable law.

 

“Deficient Electricity” means, commencing on the Commercial
Operation Date, the difference between actual Delivered Electricity during a
calendar quarter and the Minimum Delivered Electricity Amount for that calendar
quarter, if the amount of Delivered Electricity during a calendar quarter is
less than the Minimum Delivered Electricity Amount for that calendar quarter.

 

“Deficient Electricity Price” shall mean, during any calendar quarter, the
arithmetic average of the FHMC Prices during such calendar quarter as posted on
the NBSO’s Website,

 

3

 

which such value shall then be converted into US Dollars using the
arithmetic average of the daily exchange rates during such quarter (as posted
by on the NBSO’s Website).

 

“Delivered
Electricity” means all of the Excess Electricity delivered to the
Delivery Point over the System. The Delivered Electricity amount shall not
exceed the Nameplate Capacity of the Facility less losses to the Delivery
Point.

 

“Delivery
Point” means any point where the MPS and New Brunswick Power
Transmission Corporation high-voltage transmission facilities interconnect on
the Maine – New Brunswick border.

 

“Evergreen”
means Evergreen Wind Power, LLC, a Delaware limited liability company, its
successors and assigns.

 

“Excess
Electricity” means all of the electricity generated at the Facility
by means of wind generation other than that needed for the operation of the
Facility.

 

“Exposure
Amount” means the Buyer Exposure Amount or the Seller Exposure
Amount.

 

“Facility”
means the wind electric generation facility owned by Seller and located at the
Premises.

 

“FERC”
means the Federal Energy Regulatory Commission and its predecessor and
successor agencies.

 

“FHMC
Price” means the “Final Hourly Marginal Cost,” as published on the
NBSO Website.

 

“Force
Majeure” means an event not anticipated as of the Effective Date,
which is not within the reasonable control of the party affected thereby, and
which by the exercise of due diligence the affected party is unable to overcome
or obtain or cause to be obtained a commercially reasonable substitute
therefore. Force Majeure includes, but is not restricted to: failure of
transmission facilities; acts of God; fire; explosion; civil disturbance;
sabotage; action or restraint by court order or public or government authority,
so long as the affected party has not applied for or assisted in the
application for, and has opposed where and to the extent reasonable, such
government action; provided that none of the following shall constitute an
event of Force Majeure: (a) the loss of Buyer’s markets nor Buyer’s
inability economically to use or resell energy purchased hereunder; (b) the
Buyer’s inability economically to procure necessary transmission capacity; (c) the
loss or failure of Seller’s ability to sell energy to a market at a more
advantageous price; or (d) the Seller’s inability economically to procure
necessary transmission capacity. A Force Majeure as defined in this Agreement
that affects a contractor or supplier to a party, with the effect that the party cannot perform
its obligations hereunder, shall be deemed to be a Force Majeure for the
affected party hereunder.

 

“Forced
Outage” shall mean an unplanned component failure or other condition
that requires the Facility (or portion thereof) to be removed from service
immediately, within six hours, or before the end of the next weekend.

 

4

 

“Initial Mass Hub Index” means the series of electricity prices set
forth in Schedule E attached hereto.

 

“Interconnection Agreement” means the FERC large generator
interconnection agreement executed by MPS and Evergreen, dated as of April 14,
2006.

 

“Interconnection Facilities” means all the facilities installed for the
purpose of interconnecting the Facility to the System and owned by Seller,
including, but not limited to all transformers and associated equipment, relay
and switching equipment, and safety equipment.

 

“Interest Rate” means, on any date, the lesser of (a) the per annum rate of
interest equal to the prime lending rate as may from time to time be published
in the Wall Street Journal under “Money Rates,” or (b) the maximum rate
permitted by applicable law.

 

“Investment Grade” means, with respect to any Person, a credit rating (i.e., the rating assigned to an entity’s unsecured, senior long-term debt
obligations) by S&P or Moody’s of at least BBB- by S&P or Baa3 by Moody’s.

 

“ISA”
means the Northern Maine Independent System Administrator, or its successor. 

 

“ISO-NE” means the New England Independent System Operator.

 

“LMP”
means locational marginal price.

 

“Maine Zone” means the load zone for the area in Maine included in ISO-NE as
further defined by Market Rule 1 of the ISO-NE tariff.

 

“Maintenance Outage” means the removal of the Facility from service to perform work on
specific components that can be deferred beyond the end of the next weekend,
but requires the Facility to be removed from service before the next Planned
Outage. Maintenance Outages may occur any time during the year, have flexible
start dates, and may or may not have predetermined durations.

 

“Margin Call Date” means any Business Day on which (a) the sum of the Baseline Buyer
Credit Support Amount plus the applicable Seller Exposure Amount on such
Business Day exceeds by $***** or more the Buyer Credit Support posted on
such Business Day or (b) the sum of the Baseline Seller Credit Support
Amount plus the applicable Buyer Exposure Amount on such
Business Day exceeds by $***** or more the Seller Credit Support posted on
such Business Day.

 

“Market Delivery Point” means the delivery point at which Buyer
sells or transfers title to Delivered Electricity to an Affiliate or third
party.

 

“Mass Hub” means the specific set of pre-defined nodes in Massachusetts for which
an LMP is calculated by ISO-NE, as further defined in Market Rule 1 of the
ISO-NE tariff.

 

“Mass Hub Index” means the forward flat (around-the-clock) day-ahead LMP prices for
NEPOOL for the remainder of the Term as provided by ICAP Energy LLC or any
successor or

 

5

 

replacement thereto agreed to by the Parties.
An example of the NEPOOL Index is shown in Schedule E attached hereto.

 

“MEPCO” means the Maine Electric Power
Company, its successors and assigns. 

 

“Month” means one calendar month.

 

“Moody’s” means Moody’s Investors
Service, Inc.

 

“MPS” means Maine Public Service
Company, its successors and assigns.

 

“MW” means megawatt.

 

“MWh” means megawatt hour.

 

“Nameplate Capacity Rating” of the
Facility shall be up to 42.0 MW.

 

“NBP” means the New Brunswick Power
Generation Corporation, its successors and assigns.

 

“NBSO” means the New Brunswick System
Operator, its successors and assigns.

 

“NBSO Website” means http://www.nbso.ca/en/,
or any replacement website used by the NBSO.

 

“NEPOOL” means the New England Power
Pool.

 

“NERC Tags” means certificates
evidencing delivery of electricity pursuant to the standards set forth by the
North American Electric Reliability Council, as such may be amended from time
to time.

 

“Non-Affected Party” means, in the
case of a Force Majeure, the party that is not declaring such Force Majeure.

 

“Non-Defaulting Party” means, in the
case of an Event of Default, the party that is not the Defaulting Party.

 

“Person” shall mean any individual,
entity, corporation, general or limited partnership, limited liability company,
joint venture, estate, trust, association or other entity or governmental
authority.

 

“Planned Outage” means the removal of
the Facility from service to perform work on specific components that is
scheduled well in advance and has a predetermined start date and duration
(e.g., annual overhaul, inspections or testing).

 

“PPSA” means the Personal Property
Security Act of New Brunswick.

 

“Premises” shall mean the real
property where the Facility is located in, Mars Hill, Aroostook County, Maine.

 

6

 

“Prudent
Utility Practice” means any of the practices, methods and acts required or
approved by the ISA or engaged in or approved by a significant portion of the
electric utility industry in the same general geographic location as the
Facility during the relevant time period, or any of the practices, methods and
acts which, in the exercise of reasonable judgment in light of the facts known
at the time the decision was made, could have been expected to accomplish the
desired result at a reasonable cost consistent with good business practices,
reliability, safety and expedition.  “Prudent
Utility Practice” is not intended to be limited to the optimum practice, method
or act to the exclusion of all others, but rather to be acceptable practices,
methods or acts generally accepted in the general geographic location of the
Facility.

 

“RECs”
means Renewable Energy Certificates.

 

“Renewable Energy Certificates” means any credits, credit
certificates or similar environmental or “green” energy attributes such as
those for greenhouse gas reduction, or the generation of green power or
renewable energy, created by any governmental agency and/or independent
certification board or group generally recognized in the electric power
generation industry, and generated by or associated with the Facility, but
specifically excluding any and all state and federal production tax credits,
investment tax credits and any other tax credits which are or will be generated
by the Facility.

 

“Requirement of Law” means any federal, state, provincial and
local law, statute, regulation, rule, code or ordinance enacted, adopted,
issued or promulgated by any federal, state, provincial, local or other
governmental authority or regulatory body (including those pertaining to
electrical, building, zoning, environmental and occupational safety and health
requirements).

 

“Scheduled Commercial Operation Date” means March 31, 2007,
except that the Scheduled Commercial Operation Date shall be extended to the
extent necessary to compensate for any delay in the occurrence of the
Commercial Operation Date caused by (a) a Force Majeure event or (b) an
act, error or omission of Buyer.

 

“Seller Credit Support” means the Initial Seller LC or any
replacement credit support provided by Seller pursuant to Article 9, as
such Initial Seller LC or replacement credit support is reduced or increased
pursuant to Article 9.

 

“Seller Electricity Index” shall mean the ***** used to calculate the Seller Exposure Amount pursuant to Schedule D
attached hereto.  An example of the Seller
Electricity Index is included as Schedule D attached hereto.

 

“Seller Exposure Amount” means, at any given time, the amount
determined in accordance with Part II of Schedule D attached hereto.  A sample calculation of the Seller Exposure
Amount is also set forth in Part II of Schedule D.

 

“S&P”
means Standard and Poor’s Corporation.

 

“Specified Authorizations” means, collectively: (i) authorization
from FERC to make wholesale sales of energy, capacity and ancillary services at
market-based rates pursuant to Section 205 of the Federal Power Act; and (ii) authorization
from the United States Department

 

7

 

of
Energy to transmit electric energy from the United States to Canada pursuant to
Section 202(e) of the Federal Power Act.

 

“Specified Notices” mean, collectively, the following notices to
FERC: (i) a Notice of Self-Certification of Exempt Wholesale Generator
Status; and (ii) a Notice of Self-Certification of Status as a Qualifying
Small Power Production Facility.

 

“System” means the electric transmission system owned by MPS, or
its successor, and administered by the ISA, or its successor.

 

“Terminating Party” means the party, subject to Section 5.2(a) or
5.2(b), that declares an event of early termination upon either an Event of
Default or an Event of Termination.  In
the case of an Event of Default, the Non-Defaulting Party is the Terminating
Party.  In the case of an Event of
Termination with a single Affected Party, the Non-Affected Party is the Terminating
Party.  In the case of an Event of
Termination with two Affected Parties, either Party may be the Terminating
Party.

 

“Threshold Amount” means USD $*****.

 

“Transaction Documents” means, collectively, the Agreement, the
Assignment Agreement, the Buyer Credit Support and the Seller Credit Support.

 

“Turbines” means the General Electric 1.5 MW wind turbine
generators at the Facility.

 

“UCC” means the Uniform Commercial Code as in effect in the
State of New York.

 

“Unsatisfactory” means, with respect to any Person, a credit
rating (i.e., the rating assigned to an entity’s unsecured,
senior long-term debt obligations) below Investment Grade, or a lack of credit
rating for such Person by S&P or Moody’s.

 

1.1             Other
Defined Terms. The
following terms shall have the meanings defined for such terms in the Sections
set forth below:

 

	
  Defined Term

  	
   

  	
  Section

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  “Alternate”

  	
   

  	
  Exhibit A

  	
   

  
	
  “Assignment
  Agreement”

  	
   

  	
  2.1(d)

  	
   

  
	
  “Authorized
  Representative”

  	
   

  	
  Exhibit A

  	
   

  
	
  “Bankruptcy
  Code”

  	
   

  	
  13.5(a)

  	
   

  
	
  “Baseline
  Buyer Credit Support Amount”

  	
   

  	
  9.0(b)

  	
   

  
	
  “Baseline
  Seller Credit Support Amount”

  	
   

  	
  9.0(a)

  	
   

  
	
  “Buyer”

  	
   

  	
  Preamble

  	
   

  
	
  “Canadian
  Bankruptcy Act”

  	
   

  	
  13.5(b)

  	
   

  
	
  “Closing”

  	
   

  	
  2.2

  	
   

  
	
  “Confidential
  Business Information”

  	
   

  	
  10.0

  	
   

  
	
  “Daily
  Production Schedule”

  	
   

  	
  Exhibit A

  	
   

  
	
  “Delivery
  Costs”

  	
   

  	
  3.4

  	
   

  
	
  “Delivered
  Electricity Price”

  	
   

  	
  3.2

  	
   

  

 

8

 

	
  “Effective Date”

  	
   

  	
  2.3

  	
   

  
	
  “Event of Default”

  	
   

  	
  5.0

  	
   

  
	
  “Initial Buyer LC”

  	
   

  	
  9.0(b)

  	
   

  
	
  “Initial Seller LC”

  	
   

  	
  9.0(a)

  	
   

  
	
  “Liabilities”

  	
   

  	
  8.1(a)

  	
   

  
	
  “Minimum Delivered Electricity Amount”

  	
   

  	
  3.5(a)

  	
   

  
	
  “Operating Procedures”

  	
   

  	
  3.15

  	
   

  
	
  “Scheduling Deadline”

  	
   

  	
  Exhibit A

  	
   

  
	
  “Scheduling Fee”

  	
   

  	
  3.8

  	
   

  
	
  “Seller”

  	
   

  	
  Preamble

  	
   

  
	
  “Term”

  	
   

  	
  2.3

  	
   

  
	
  “Termination Amount”

  	
   

  	
  5.2(c)

  	
   

  
	
  “Transmission Curtailment Event”

  	
   

  	
  8.4

  	
   

  

 

1.2           Rules of Construction. Unless the context otherwise requires:

 

(a)           Words
singular and plural in number shall be deemed to include the other and pronouns
having masculine or feminine gender shall be deemed to include the other.

 

(b)           Any
reference in this Agreement to any Person includes its successors and assigns
and, in the case of any government authority, any Person succeeding to its
functions and capacities.

 

(c)           Unless
otherwise indicated, any reference in this Agreement to any Article, Section,
Schedule or Exhibit means and refers to the Article or Section contained
in, or Scheduled or Exhibit attached to, this Agreement.

 

(d)           Other
grammatical forms of defined words or phrases have corresponding meanings.

 

(e)           Unless
otherwise indicated, a reference to a document or agreement, including this
Agreement, includes a reference to that document or agreement as novated,
amended, supplemented or restated from time to time.

 

(f)            Unless
otherwise indicated, a reference to a Requirement of Law includes a reference
to that Requirement of Law as amended, modified, supplemented, extended or
restated from time to time.

 

(g)           The
terms “include,” “includes” and “including” shall be deemed to be followed by
the words “without limitation.”

 

(h)           The
words “hereof,” “herein,” and “hereunder” and words of similar import when used
in this Agreement shall refer to this Agreement as a whole and not to any
particular provision of this Agreement.

 

9

 

ARTICLE 2.

 

CONDITIONS PRECEDENT; TERM

 

2.0           Conditions Precedent of Buyer. Buyer’s
obligations under this Agreement shall be conditioned upon the satisfaction, at
the Closing, of each of the following conditions:

 

(a)           Agreement.  Buyer shall have received this Agreement,
executed and delivered by one or more duly authorized officers of Seller;

 

(b)           Closing Certificate.  Buyer shall have received a closing
certificate, executed and delivered by one or more duly authorized officers of
Seller, certifying that all representations and warranties made by Seller in
the Transaction Documents are true and correct in all material respects on and
as of the date hereof, except for representations and warranties expressly
stated to relate to a specific earlier date, in which case such representations
and warranties were true and correct in all material respects as of such
earlier date; and

 

(c)           Initial Seller LC.  The Initial Seller LC in substantially the
form of Exhibit B hereto shall have been issued to the Buyer.

 

Seller shall use commercially
reasonable efforts to cause the conditions described in this Section 2.0
to be satisfied as promptly as practicable and in no event later than five (5) Business
Days after the date of this Agreement.

 

2.1           Conditions Precedent of
Seller. Seller’s obligations under this Agreement shall be
conditioned upon the satisfaction, at the Closing, of each of the following
conditions:

 

(a)             Agreement.  Seller shall have received this Agreement,
executed and delivered by one or more duly authorized officers of Buyer;

 

(b)             Closing
Certificate.  Seller shall have received
a closing certificate, executed and delivered by one or more duly authorized
officers of Buyer, certifying that all representations and warranties of Buyer
made in the Transaction Documents are true and correct in all material respects
on and as of the date hereof, except for representations and warranties
expressly stated to relate to a specific earlier date, in which case such
representations and warranties were true and correct in all material respects
as of such earlier date;

 

(c)             Initial Buyer LC.  The Initial Buyer LC in substantially the
form of Exhibit C hereto shall have been issued to the Seller;

 

(d)             Assignment
Agreement.  One or more duly
authorized officers of Buyer shall have executed and delivered an assignment
agreement in favor of Seller, substantially in the form of Exhibit D
hereto, pursuant to which Buyer assigns to Seller certain transmission rights
over the transmission facilities that NBSO controls (the “Assignment
Agreement”);

 

(e)             Filings,
Registrations and Recordings.  The
Seller shall ensure that each document (including, without limitation, any UCC
financing statement or PPSA financing statement) required by the Assignment
Agreement or otherwise reasonably requested by the Seller to be filed,
registered or recorded in order to create in favor of the Seller a perfected
security interest on the collateral described therein, prior and superior in
right to any other Person, shall be in proper form for filing, registration or
recordation;

 

10

 

(f)            Legal Opinion.  Buyer
shall have delivered to Seller a customary opinion of counsel relating, among
other things, to the enforceability of the security interests created pursuant
to the Assignment Agreement, and otherwise in a form reasonably acceptable to
Seller and its counsel; and

 

(g)           Notice to NBSO.  At
the time of Closing, Buyer shall have provided the NBSO with a copy of the
executed Assignment Agreement and shall have received an acknowledgement from
the NBSO of its receipt of the Assignment Agreement and its concurrence with
its terms.  Buyer shall have provided
such acknowledgement to Seller, in such form as shall be reasonably requested
by Seller.

 

Buyer shall use commercially
reasonable efforts to cause the conditions described in this Section 2.1
(other than subsection (e) hereof) to be satisfied as promptly as
practicable and in no event later than five (5) Business Days after the
date of this Agreement.

 

2.2           Closing. The closing of the transactions
contemplated by this Agreement (the “Closing”) shall be held on the
Effective Date.

 

2.3           Term. The term of this Agreement
(the “Term”) shall begin on the date (the “Effective Date”) upon which the parties shall have
caused (or waived) the conditions precedent in Sections 2.0 and 2.1 to be
satisfied and shall, unless sooner terminated as provided herein, end at 11:59 p.m.
on December 31, 2011.  The
termination of this Agreement shall be without prejudice to all rights and
obligations of the parties accrued under this Agreement prior to such
termination.  Notwithstanding the
foregoing or anything to the contrary set forth herein, the terms and
conditions of Section 2.0, Section 2.1, the first sentence of Section 9.0(a) and
the first sentence of Section 9.0(b), in each case, shall become fully
effective and binding on the parties (as applicable) on the date of this
Agreement.

 

2.4           Commercial Operation Date. Seller shall
take all commercially reasonable steps to ensure that the Commercial Operation
Date is no later than the Scheduled Commercial Operation Date.  If the Commercial Operation Date does not
occur until after the Scheduled Commercial Operation Date, the Seller shall pay
to Buyer Construction Delay Damages for each day that the Commercial Operation
Date is delayed beyond the Scheduled Commercial Operation Date.  In no event will the aggregate amount of
Construction Delay Damages paid by the Seller to Buyer exceed ***** dollars (US$*****).  In the event that the Commercial Operation
Date does not occur by the COD Deadline, Buyer shall be entitled to terminate
this Agreement by giving Seller prior written notice of ten (10) Business
Days.  Payment of Construction Delay
Damages shall be Buyer’s sole and exclusive remedy for any failure to achieve
the Commercial Operation Date by the Scheduled Commercial Operation Date, and
the right to terminate (as set forth in this Section 2.4) shall be Buyer’s
sole and exclusive remedy for any failure to achieve the Commercial Operation
Date by the COD Deadline.  THE
PARTIES AGREE THAT BUYER MAY BE SUBSTANTIALLY DAMAGED IN AMOUNTS THAT MAY BE
DIFFICULT OR IMPOSSIBLE TO DETERMINE IN THE EVENT THAT SELLER FAILS TO ACHIEVE
THE COMMERCIAL OPERATION DATE BY THE SCHEDULED COMMERCIAL OPERATION DATE.
THEREFORE, THE PARTIES HAVE AGREED ON SUMS THAT THE PARTIES AGREE ARE
REASONABLE AS LIQUIDATED DAMAGES FOR THE DAMAGE IDENTIFIED IN THE PRECEDING

 

11

 

SENTENCE,
AND IT IS FURTHER UNDERSTOOD AND AGREED THAT PAYMENT OF SUCH SUMS IS IN LIEU OF
ACTUAL DAMAGES FOR SUCH FAILURE. SELLER HEREBY WAIVES, TO THE EXTENT PERMITTED
BY APPLICABLE LAW, ANY DEFENSE AS TO THE VALIDITY OF ANY LIQUIDATED DAMAGES IN
THIS AGREEMENT ON THE GROUNDS THAT SUCH LIQUIDATED DAMAGES ARE VOID AS
PENALTIES.

 

ARTICLE 3.

PURCHASE OF ENERGY BY BUYER

 

3.0           Sale and Purchase
Obligations. Commencing on the Commercial Operation Date and for the
remainder of the Term and subject to the provisions hereof, Seller shall sell
and deliver, or cause to be delivered, and Buyer shall purchase and receive, or
cause to be received, all Delivered Electricity.  Buyer shall be under no obligation to
purchase any Delivered Electricity generated by means other than the Facility
(other than balancing power purchased by the Seller from the NBSO).

 

3.1           Deliveries. Delivery of all
energy sold and purchased hereunder shall be made at the Delivery Point.

 

3.2           Delivered Electricity Price. For all
Delivered Electricity delivered to the Delivery Point on and after the
Commercial Operation Date, Buyer shall pay the Seller a price for all Delivered
Electricity (and all balancing
power purchased by the Seller from the NBSO) (the “Delivered Electricity Price”). 
The Delivered Electricity Price is set forth in Schedule A
attached hereto.  Seller shall also pay
Buyer a Scheduling Fee as set forth in Section 3.8 below.

 

3.3           Test Energy Price. For all
Delivered Electricity delivered to the Delivery Point before the Commercial
Operation Date, the Buyer shall pay the Seller a price equal to the product of (a) ***** multiplied by (b) the
Keswick real-time LMP as determined by ISO-NE for the same hours.  Seller shall also pay Buyer a Scheduling Fee
as set forth in Section 3.8 below.

 

3.4           Delivery Costs. Buyer shall be
responsible for all transmission arrangements associated with moving Delivered
Electricity from the Delivery Point to the location where the Buyer ultimately
sells or transfers ownership of the Delivered Electricity, and Buyer shall be
responsible for all associated Delivery Costs. 
The term “Delivery Costs”
shall include actual tariff and related direct costs associated with moving
Delivered Electricity from the Delivery Point to the location where the Buyer
ultimately sells or transfers ownership of the Delivered Electricity.  The applicable tariffs and related costs
shall include, without limitation, the NBSO tariff, MEPCO tariff, ISO-NE
tariff, and Transenergie tariff (Quebec). 
The applicable tariff and related direct costs include, but are not
limited to, transmission tariff rates, losses, and ISA administrative charges,
but will not include administrative, labor, or other costs.  Delivery Costs shall not include MPS tariff
or ISA tariff costs which will be the responsibility of the Seller.  Delivery Costs shall not include energy
imbalance costs assessed by NBSO which will be the responsibility of the Seller.  Buyer shall document and record all Delivery
Costs and make available to Seller upon request.

 

12

 

3.5             Delivery Minimum.

 

(a)           Beginning on the Commercial Operation Date, other
than for events of Force Majeure or Transmission Curtailment Events, in the
event the Delivered Electricity amount is less than the applicable volumes
shown in Schedule B (the “Minimum
Delivered Electricity Amount”) in any calendar quarter, Seller will reimburse Buyer
an amount equal to the product of the Deficient Electricity amount and the Deficient
Electricity Price.

 

(b)           Notwithstanding the above, the maximum aggregate
amount Seller shall reimburse Buyer for Deficient Electricity during any
calendar quarter shall be ***** dollars (US $*****).

 

(c)           Payment of the amounts set forth in this Section 3.5
shall be Buyer’s sole and exclusive remedy for any failure by Seller to produce
and deliver the Minimum Delivered Electricity Amount in any calendar quarter.  THE PARTIES AGREE THAT BUYER MAY BE SUBSTANTIALLY
DAMAGED IN AMOUNTS THAT MAY BE DIFFICULT OR IMPOSSIBLE TO DETERMINE IN THE
EVENT THAT SELLER FAILS TO DELIVER THE MINIMUM DELIVERED ELECTRICITY AMOUNT IN
ANY CALENDAR QUARTER. THEREFORE, THE PARTIES HAVE AGREED ON SUMS THAT THE
PARTIES AGREE ARE REASONABLE AS LIQUIDATED DAMAGES FOR THE DAMAGE IDENTIFIED IN
THE PRECEDING SENTENCE, AND IT IS FURTHER UNDERSTOOD AND AGREED THAT PAYMENT OF
SUCH SUMS IS IN LIEU OF ACTUAL DAMAGES FOR SUCH FAILURE. SELLER HEREBY WAIVES, TO
THE EXTENT PERMITTED BY APPLICABLE LAW, ANY DEFENSE AS TO THE VALIDITY OF ANY
LIQUIDATED DAMAGES IN THIS AGREEMENT ON THE GROUNDS THAT SUCH LIQUIDATED
DAMAGES ARE VOID AS PENALTIES.

 

3.6             NERC Tags. Buyer agrees to
generate and/or transfer all NERC Tags necessary for and associated with the
delivery of the Delivered Electricity into ISO-NE. Any NERC Tags and associated
rights shall remain the property of the Seller at all times, and Seller shall
have the right to sell, assign or transfer such NERC Tags and associated rights
at Seller’s sole discretion.

 

3.7             Delivery to ISO-NE.

 

(a)           Buyer shall deliver any Delivered Electricity into
ISO-NE (unless otherwise directed by Seller and approved by Buyer), including
Delivered Electricity produced prior to the Commercial Operation Date.  If Buyer fails to deliver any Delivered
Electricity to ISO-NE for any reason (other than as a result of a Transmission
Curtailment Event), then Buyer shall indemnify and reimburse Seller for any
direct costs, damages and/or alternative compliance payments, including
electrical energy, REC and/or Capacity Value lost revenue.  Other than a Transmission Curtailment Event,
lack of available transmission capacity shall not excuse performance under this
Section.  Upon request, Seller shall provide
Buyer with a reasonable estimate (if prior to such non-delivery) or written
evidence (if subsequent to such non-delivery) of any damages, costs, payments,
credits, or lost electrical energy, REC and/or Capacity Value revenue to be
reimbursed hereunder.  Buyer shall
reimburse Seller for all such amounts in the Month following the non-delivery,
upon written request from Seller.

 

13

 

(b)           Buyer shall ensure that
no other energy deliveries to ISO-NE scheduled by Buyer are treated under more
favorable terms.

 

3.8           Scheduling Fee.
The Buyer shall deduct from amounts otherwise due Seller hereunder an amount as
set forth in Schedule C for each MWh of Delivered Electricity (the “Scheduling
Fee”).  Subject to a pro rata
reduction in the case of a Force Majeure occurring during the applicable
calendar quarter, the Minimum Scheduling Fee for each calendar quarter of the
year will be US$*****.  Partial periods
will be pro-rated.  Notwithstanding the
foregoing, if a Transmission Curtailment Event precludes Buyer from delivering
Delivered Electricity through New Brunswick to ISO-NE, then for the duration of
the Transmission Curtailment Event, Buyer shall not be entitled to a Scheduling
Fee and the Minimum Scheduling Fee shall be reduced pro rata to reflect the
duration of the Transmission Curtailment Event(s) during the applicable
calendar quarter.

 

3.9           RECs. All RECs generated by the
Facility shall remain the property of the Seller and are specifically excluded
from the scope of Buyers’ purchase obligations hereunder.  Seller shall have the right to sell, assign
or transfer such RECs at Seller’s sole discretion.  Buyer agrees to use all commercially
reasonable efforts to assist Seller in demonstrating delivery of Delivered Electricity
to ISO-NE for the purpose of creating associated RECs, including, but not
limited to, producing relevant reports, certifications and releasing data.

 

3.10         Capacity Value. All Capacity Value available in
connection with the Facility shall remain the property of the Seller and is
specifically excluded from the scope of Buyer’s purchase obligations hereunder.  Seller shall have the right to sell, assign
or transfer such Capacity Value at Seller’s sole discretion.

 

3.11         Rates and Charges Not Subject to Review. The rates and
charges for services specified in this Agreement shall remain in effect for the
Term, and shall not be subject to change for any reason, including regulatory
review, absent agreement of the parties. 
Absent the agreement of both parties to any proposed change of rates,
the standard of review for changes to any section of this Agreement specifying
the rate(s) or other material economic terms and conditions agreed to by
the parties herein, whether proposed by a party, a non-party or FERC acting
sua sponte, shall be the “public interest” standard of review set forth in United
Gas Pipe Line Co., v. Mobile Gas Service Corp., 350 U.S. 332 (1956) and Federal
Power Commission v. Sierra Pacific Power Co., 350 U.S. 348 (1956).  The parties, for themselves and their
successors and assigns, (i) agree that this “public interest” standard
shall apply to any proposed changes in any other documents, instruments and
other agreements executed or entered into by the parties in connection with
this Agreement and (ii) hereby expressly and irrevocably waive any rights
they can or may have to the application of any other standard of review,
including the “just and reasonable” standard.

 

3.12         Costs and Charges. Seller shall be responsible for all costs
or charges imposed in connection with the delivery of Excess Electricity to the
Delivery Point, subject to Section 3.4. 
Buyer shall be responsible for all costs or charges imposed in
connection with the Delivered Electricity delivered under this Article 3
at and from the Delivery Point, subject to Section 3.4

 

14

 

3.13       Title and Risk of Loss. Seller shall be
deemed to be in exclusive control of, and responsible for, any damage or injury
caused by, Delivered Electricity delivered under this Article 3 prior to
delivery at the Delivery Point; and Buyer shall be deemed to be in exclusive
control of, and responsible for, any damages or injury caused by, Delivered
Electricity delivered hereunder at and from the Delivery Point.  Seller shall have exclusive right, title and
interest in the Delivered Electricity sold to Buyer and warrants that it will
deliver Delivered Electricity to Buyer under this Article 3 free and clear
of all liens, claims and encumbrances.  Title
to and risk of loss of all Delivered Electricity delivered under this Article 3
shall transfer from Seller to Buyer upon delivery of the Delivered Electricity
to Buyer at the Delivery Point.

 

3.14       Standard of Operation. Seller shall
operate the Facility in accordance with (i) the applicable practices,
methods, acts, guidelines, standards and criteria of FERC and the ISA and any
successors to the functions thereof; (ii) all applicable Requirements of
Law; and (iii) Prudent Utility Practice. 
Seller will obtain all certifications, permits, licenses and approvals
necessary to construct, operate and maintain the Facility and to perform its
obligations under this Agreement during the Term.  Seller will be responsible for the
coordination and synchronization of the Facility’s equipment with the System,
and shall be solely responsible for any damage that may occur as a direct
result of Seller’s improper coordination or synchronization of such equipment
with the System.

 

3.15       Operating Procedures. The operating
procedures attached hereto as Exhibit A (the “Operating Procedures”)
establish the protocols under which the parties will perform their respective
obligations under this Agreement and include procedures concerning the
following: (1) the method of day-to-day communications; (2) the
method of providing output forecasts and scheduling, both day ahead and
intraday; (3) key personnel lists for Seller and Buyer; (4) Forced
Outage and Planned Outage reporting; (5) optimization for Seller of
Delivered Energy sales; and (6) assessing changes in the New Brunswick and
New England energy markets.  Buyer and
Seller agree to amend and update the Operating Procedures from time to time to
reflect the actual operation of the Facility.

 

15

 

3.16           Outages.

 

(a)           Maintenance Outages.  If
during the Term Seller needs to schedule a Maintenance Outage of the Facility
which will effect more then *****
of the Nameplate Capacity Rating, Seller shall, at least 3 days prior to such
outage, notify Buyer of such proposed Maintenance Outage and the parties shall
plan such outage of capacity to mutually accommodate the reasonable
requirements of Seller and service obligations of Buyer.  Notice of a proposed Maintenance Outage shall
include the expected start date of the outage, the amount of capacity of the
Facility that will not be available and the expected completion date of the
outage, and shall be given to Buyer at the time the need for the Maintenance
Outage is determined by Seller.  Buyer
shall promptly respond to such notice and may request reasonable modifications
in the schedule for the outage.  Seller
shall use all reasonable commercial efforts to comply with such a request to
reschedule a Maintenance Outage.  Seller
shall notify Buyer of any subsequent changes in such capacity not available to
Buyer or any subsequent changes in such Maintenance Outage completion date.  As soon as practicable, any such
notifications given orally shall be confirmed in writing.

 

(b)           Planned Outages.  The
Buyer and Seller agree that Seller will use commercially reasonable efforts to
ensure that no Planned Outages occur between the dates of December 1st and February 28th during the Term.  Seller shall notify Buyer quarterly of its
Planned Outage schedule.

 

(c)           Forced Outages.  Seller
shall promptly provide to Buyer an oral report of a Forced Outage which has
effected more then ***** of the
Nameplate Capacity Rating of the Facility, which report shall include the
amount of the capacity of the Facility that will not be available because of
such Forced Outage and the expected return date of such capacity, and shall
update such report as necessary to advise Buyer of changed circumstances.  As soon as practicable, all such oral reports
shall be confirmed in writing.

 

3.17           Electricity Output
Communications. Seller will provide telemetering equipment and
facilities capable of transmitting the following information with respect to
the Facility to Buyer and to the control center of Buyer and will operate such
equipment when requested by Buyer:

 

(i)            Excess Electricity;
and

 

(ii)           Delivered Electricity.

 

3.18         Power.  All Delivered Electricity
delivered by Seller to the Delivery Point (a) shall be in the form of
three-phase alternating current having a nominal frequency of sixty cycles per
second and a harmonic content consistent with the requirements of the Institute
of Electrical and Electronic Engineers Standard No. 519 and a voltage content
consistent with guidelines with respect to the System, and (b) shall be in
material compliance with all requirements in the Interconnection Agreement.

 

3.19           Taxes. Seller shall be responsible
for all existing and any new sales, use, excise, ad valorem, and any other
similar taxes, imposed or levied by any federal, state, provincial or local
governmental agency on the Delivered Electricity sold and delivered under this Article 3

 

16

 

before the delivery of such
Delivered Electricity to the Delivery Point. 
Buyer shall be responsible for all existing and any new sales, use,
excise, ad valorem, and any other similar taxes, imposed or levied by any
federal, state, provincial or local government agency on the Delivered
Electricity sold and delivered under this Article 3 upon and after the
delivery of such Delivered Electricity to the Delivery Point.  For the avoidance of doubt Buyer shall be
responsible for any harmonized sales tax and any goods and services tax.  Each party shall indemnify, release, defend
and hold harmless the other party from and against any and all liability for
taxes imposed or assessed by any taxing authority with respect to the Delivered
Electricity sold, delivered and received hereunder that are the responsibility
of the first party pursuant to this Section 3.19.

 

3.20           Exclusive Nature of
Agreement. The relationship between the Buyer and Seller with respect
to energy produced by the Facility for the Term of this Agreement is exclusive.  As long as Buyer is not in default of this
Agreement and as long as there is not a Force Majeure or Transmission
Curtailment Event that impacts a party’s ability to perform under this
Agreement, the Seller shall not sell or make energy available from the Facility
to any other Person (except for balancing power that is sold to the NBSO).  If Buyer is in default of this Agreement or
if there is a Force Majeure or Transmission Curtailment Event that impacts a
party’s ability to perform under this Agreement, Seller shall be entitled to
sell or make energy available from the Facility to any other Person.

 

ARTICLE 4.

 

REPRESENTATIONS AND WARRANTIES

 

4.0             Representations and
Warranties. As a material inducement to execution of this Agreement,
each party hereby represents and warrants to the other party that:

 

(a)           It is duly organized,
validly existing and in good standing under the laws of the jurisdiction of its
formation, and is qualified to conduct its business in all jurisdictions
necessary to perform its obligations hereunder;

 

(b)           The execution, delivery
and performance of this Agreement are within its powers, have been duly
authorized by all necessary action and do not violate any of the terms or
conditions in its governing documents or any agreement to which it is a party,
or any law, rule, regulation, order, writ, judgment, decree or other legal or
regulatory determination applicable to such party;

 

(c)           This Agreement
constitutes a legal, valid and binding obligation of such party, enforceable
against it in accordance with its terms, subject to bankruptcy, insolvency,
reorganization and other laws affecting creditor’s rights generally, and with
regard to equitable remedies, to the discretion of the court before which
proceedings to obtain same may be pending;

 

(d)           There are no
bankruptcy, insolvency, reorganization, receivership or other arrangement
proceedings pending or being contemplated by it, or to its knowledge threatened
against it;

 

17

 

(e)                                  To such party’s
knowledge, there are no actions, proceedings, judgments, rulings or orders,
issued by or pending before any court or other governmental body that would
materially adversely affect its ability to perform this Agreement; and

 

(f)                                    Except for the
Specified Authorizations and the Specified Notices in the case of Seller, no
consent, approval or authorization of, or registration, filing or declaration
with, any federal, provincial or state governmental authority or other
regulatory agency (which has not been received, waived or satisfied as of the
date hereof), as the case may be, or other person is required for the valid
execution and delivery by such party of this Agreement, the consummation by
such party of the transactions contemplated thereby or compliance by such party
with the terms and provisions thereof.

 

4.1                                 Specified Authorizations.
Seller will obtain, at its sole cost and expense, the Specified
Authorizations and issue the Specified Notices, in each case, on or before the
Commercial Operation Date. Upon procuring the Specified Authorizations and
providing the Specified Notices, Seller will promptly notify Buyer.

 

4.2                                 No Immunity. Buyer warrants and covenants that
with respect to its contractual obligations hereunder and performance thereof,
it will not claim immunity on the grounds of sovereignty or similar grounds
with respect to itself or its revenues or assets from (a) suit, (b) jurisdiction
of any arbitral panel or court (including an arbitral panel or court located
outside the jurisdiction of its organization), (c) relief by way of
injunction, order for specific performance or recovery of property, (d) attachment of assets, or (e) execution
or enforcement of any judgment.

 

4.3                                 No Other Representations and
Warranties. Each party acknowledges that it has entered into this
Agreement in reliance upon only the representations and warranties set forth in
this Agreement, and that no other representations or warranties have been made
by the other party with respect to the subject matter hereof.

 

ARTICLE
5.

 

EVENTS
OF DEFAULT AND TERMINATION; REMEDIES AND EARLY TERMINATION

 

5.0                                 Events of Default. The following
occurrences shall constitute “Events
of Default” (except to the extent caused by a Force Majeure or a
Transmission Curtailment Event):

 

(a)                                  Failure by a party to
make any payment required hereunder or under any other Transaction Document
when due if such failure is not remedied within ten (10) Business Days
after receipt by the Defaulting Party of written notice of such failure,
provided that if the payment in question is the subject of a good faith
dispute, such payment may be paid into an independent
escrow account pursuant to Section 6.2 (pending resolution of such
dispute);

 

(b)                                 Failure by a party to
perform any other material obligation hereunder or under any other Transaction
Document and such failure is not remedied within thirty (30) days after receipt
by the Defaulting Party of written notice of such failure by the Non-Defaulting
Party; provided that, with written notice from such Defaulting Party such
thirty (30) day period shall be extended by an additional ninety (90) days as
shall be necessary for the Defaulting Party

 

18

 

to
cure such failure and as long as (i) such default is subject to cure
within such additional period, (ii) the Defaulting Party commences such
cure within the thirty day period after receipt of the written notice by the
Non-Defaulting Party and is at all times thereafter diligently and continuously
proceeding to cure such failure and (iii) if the Buyer is the Defaulting
Party, the security interests granted pursuant to the Assignment Agreement
would not be impaired by such an extension;

 

(c)                                  Any representation or warranty made by a
party pursuant to Article 4 or in any other Transaction Document shall
have been false in any material respect when made;

 

(d)                                 The Buyer’s acts or omissions cause the
security interest created under the Assignment Agreement to cease to be
enforceable and of the same effect and priority purported to be created
thereunder;

 

(e)                                  A party:

 

(i)                                     commences a voluntary case or proceeding
under any applicable bankruptcy, insolvency, reorganization or other similar
law or consents to the filing of a petition to such effect or to the appointment
of or taking possession by a custodian, receiver or similar official of such
party of all or substantially all its property or assets, or admits in writing
its inability to pay its debts generally as they become due, or takes corporate
action in furtherance of any such action, or is the subject of an entry by a
court having jurisdiction of a decree or order for relief in an involuntary
case or proceeding under any such law or a decree or order making such an
appointment; or

 

(ii)                                  takes advantage of any law or governmental
regulation relating to bankruptcy or insolvency in any jurisdiction; or

 

(iii)                               has a receiver or receiver manager or a court
appointed official appointed for all or substantially all of its property or
assets; or

 

(iv)                              makes an assignment or attempted
assignment  for the benefit of its creditors, subject to
a party’s rights to make a permitted assignment pursuant to Section 7.0 or

 

(v)                                 institutes any proceedings for the cessation
of its business or corporate existence; or

 

(vi)                              consolidates, reorganizes, reincorporates or
reconstitutes into or as, amalgamates with, or merges into or with, or transfers substantially all of its assets to another entity and either

 

a.                                       the resulting or surviving entity fails to
assume all of such party’s obligations hereunder by operation of law or
pursuant to an agreement reasonably satisfactory to the other party; or

 

b.                                      the resulting or surviving entity’s
creditworthiness is, in the reasonable opinion of the Non-Defaulting Party,
materially weaker than that of the transferring entity immediately prior to
such action;

 

19

 

(vii)                           has any governmental authority or other third
party seize, expropriate or confiscate all or a substantial part of its
property or assets.

 

5.1                                 Events of Termination. The following occurrence shall constitute an
Event of Termination: failure of either party to substantially perform its
obligations under this Agreement on account of Force Majeure for a period
exceeding 180 days.

 

5.2                                 Early Termination.

 

(a)                                  Upon the occurrence of, and during the
continuation of, an Event of Default, the Non-Defaulting Party (as the
Terminating Party) may terminate this Agreement by written notice to the other
party designating the date of early termination and delivered to the Defaulting
Party no less than ten (10) days before such early termination date.

 

(b)                                 Upon the occurrence of, and during the
continuation of, an Event of Termination,

 

(i)                                     Either

 

a.                                       in the event of one Affected Party, the
Non-Affected Party (as the Terminating Party), or

 

b.                                      in the event of two Affected Parties, either
party (as the Terminating Party), 

 

in either case, may terminate this Agreement by notice to the other
party designating the date of early termination and delivered to the other
party no less than ten (10) days before such early termination date.

 

(c)                                  In the event of an early termination of this
Agreement pursuant to Section 5.2(b), no Termination Amount shall be
payable by either party. In the event of an early termination of this Agreement
pursuant to Section 5.2(a), the applicable Terminating Party shall
calculate in good faith an amount (if any) to be received by it as a result of
the termination of this Agreement (the “Termination Amount”) equal to:

 

(i)                                     If the Buyer is the Terminating Party, the
then-applicable Buyer Exposure Amount plus any Costs
incurred by the Buyer; and

 

(ii)                                  If the Seller is the Terminating Party, the
then-applicable Seller Exposure Amount plus any  Costs incurred by the Seller.

 

(d)                                 The other Party shall pay the Terminating
Party an amount equal to the applicable Termination Amount, together with
interest at the Default Rate from the early termination date until the date of
payment. The Terminating Party shall calculate such amount as of the early termination
date or promptly thereafter, and promptly notify the other party of the
Termination Amount showing in reasonable detail how such amount was calculated.
The owing party shall pay the Terminating Party the required amount within 30
Business Days of notification of the Termination Amount. For the avoidance of
doubt, in the event of an early

 

20

 

termination of this Agreement pursuant to
Section 5.2(a), the Defaulting Party shall not be entitled to receive any
Termination Amount.

 

(e)                                  In the event of an early termination of this
Agreement pursuant to Section 5.2(a), the Terminating Party may exercise
and enforce each and all of the rights and remedies available to it under this
Agreement and, in accordance with Article 9, the applicable Credit Support provided by the other party. In addition, in the event of an early termination of this Agreement
pursuant to Section 5.2(a), if the Terminating Party is the Seller, Seller
may exercise and enforce, in any order, (i) each and all of the rights and
remedies available to a secured party under the UCC, the PPSA or other
applicable law and (ii) each and all of the rights and remedies available
to it under the Assignment Agreement.

 

(f)                                    In the event of a termination of this
Agreement, the parties’ respective obligations under this Agreement shall
terminate (other than those obligations which expressly are to be
performed after termination or which survive termination pursuant to
Section 5.3 hereof).

 

(g)                                 (i) In the event of a termination of this Agreement, each party shall pay to the other all
amounts due the other under this Agreement for all periods prior to
termination.

 

(ii)                                  The amounts due pursuant to subsection
(i) shall be paid within thirty (30) days of the billing date for such
charges plus interest thereon from the date of early termination until the date
paid. Interest shall be calculated at,

 

a.                                       in the case of an Event of Default, the
Default Rate, or

 

b.                                      in the case of an Event of Termination, the
Interest Rate

 

(iii)                               The amounts payable under this
Section 5.2 shall constitute the only amounts due upon the termination of
this Agreement by either party, and no party shall be required to pay any
amounts upon termination in excess of the amounts specified in this
Section 5.2. The right to terminate this Agreement and recover the amounts
and exercise the rights specified in this Section 5.2 shall constitute the
sole and exclusive remedies of the parties in the event of an early termination
of this Agreement as a result of an Event of Default or Event of Termination.

 

(h)                                 THE PARTIES AGREE THAT THE
NON-DEFAULTING PARTY MAY BE SUBSTANTIALLY DAMAGED IN AMOUNTS THAT MAY BE
DIFFICULT OR IMPOSSIBLE TO DETERMINE IN THE EVENT THAT THIS AGREEMENT IS
TERMINATED AS A RESULT OF AN EVENT OF DEFAULT PRIOR TO THE END OF THE SCHEDULED
TERM. THEREFORE, THROUGH THE CALCULATION OF THE TERMINATION AMOUNT AS SET FORTH
HEREIN, THE PARTIES HAVE AGREED ON SUMS THAT THE PARTIES AGREE ARE REASONABLE
AS LIQUIDATED DAMAGES FOR THE DAMAGE IDENTIFIED IN THE PRECEDING SENTENCE, AND
IT IS FURTHER UNDERSTOOD AND AGREED THAT PAYMENT OF SUCH SUMS IS IN LIEU OF
ACTUAL DAMAGES FOR SUCH FAILURE. EACH PARTY HEREBY WAIVES, TO THE EXTENT
PERMITTED BY APPLICABLE LAW, ANY DEFENSE AS TO THE VALIDITY OF ANY TERMINATION
AMOUNT IN THIS

 

21

 

AGREEMENT ON THE GROUNDS THAT SUCH
LIQUIDATED DAMAGES ARE VOID AS PENALTIES.

 

5.3                                 Survival.  The expiration or termination of this Agreement shall be without
prejudice to all rights and obligations of the parties accrued under this
Agreement prior to the date of such expiration or termination. The provisions
of Sections 3.12, 3.19, 4.2, 4.3, 5.2, 6.2, 6.3, 6.4, 6.5, 8.1, 8.2, 8.3, 8.4,
9.1(f) and Articles 10, 12 and 13 shall survive the termination of this
Agreement.

 

ARTICLE
6.

 

BILLING
AND PAYMENT; RECORDS

 

6.0                                 Billing and Payment. Each Month during the Term, Buyer shall send
to Seller a statement setting forth the total amount due for Delivered
Electricity delivered to Buyer during the immediately preceding Month, the
quantity of Delivered Electricity that was delivered to Buyer during such
Month, and any other amounts due to Seller or to Buyer under this Agreement. In
the event that Buyer fails to send Seller such a statement in any given Month,
Seller shall be entitled to prepare such statement and deliver it to Buyer.
Payments pursuant to invoices due from either party shall be due on or before
the latter of the twentieth (20th) day of each Month, or tenth (10th) day after
receipt of the invoice or, if such day is not a Business Day, then on the next
Business Day. Payment shall be made by wire transfer to the other party’s
account.

 

6.1                                 Interest on Late Payments. Amounts not paid when due shall accrue
interest from, and including, the due date to, and excluding, the date of
payment at the Default Rate.

 

6.2                                 Disputed Amounts. If either party, in good faith, disputes any
amount due pursuant to a statement rendered hereunder, such party shall (i) notify
the other party of the specific basis for the dispute, (ii) pay that
portion of the statement that is undisputed on or before the due date and (iii) pay
into an independent escrow account (in accordance with escrow arrangements
reasonably acceptable to the parties) the portion of the statement in dispute,
pending resolution of such dispute. Any dispute notice shall be provided within
one year of the date of the invoice in which the error first occurred. If any
amount disputed by such party is determined to be due the other party through
arbitration in accordance with Section 12.1, or if the parties resolve the
payment dispute, the amount due shall be paid out of escrow within five (5) days
of such determination or resolution, along with interest accrued at the Default
Rate from the date due until the date paid.

 

6.3                                 Records. Each party shall keep and maintain all
records as may be necessary or useful in performing or verifying any
calculations made pursuant to this Agreement, or in verifying such party’s
performance hereunder. All such records shall be retained by each party for at
least three calendar years following the calendar year in which such records
were created.

 

6.4                                 Currency. All amounts set forth in this Agreement are
denominated in US dollars, and all payments under this Agreement shall be made
in US dollars.

 

22

 

6.5                                 Audit.

 

(a)                                  Each party, through
an internationally-recognized accounting firm (reasonably acceptable to the
other party), shall have the right, at its sole expense and during normal
business hours, to examine and copy the records of the other party to the
extent reasonably necessary to verify the accuracy of any statement, charge or
computation made hereunder or to verify the other party’s performance of its
obligations hereunder. Upon request, each party shall provide to the other
party statements evidencing the quantities of energy delivered at the Delivery
Point and delivered to ISO-NE (or other Market Delivery Point). If any
statement is found to be inaccurate, a corrected statement shall be issued and
any amount due thereunder will be promptly paid and shall bear interest
calculated at the Default Rate from the date of the overpayment or underpayment
to the date of receipt of the reconciling payment. Notwithstanding the above,
no adjustment shall be made with respect to any statement or payment hereunder
unless a party questions the accuracy of such payment or statement within one
year after the date of such statement or payment.

 

(b)                                 In addition, Seller
will provide to Buyer from time to time the following information with respect
to the Facility:

 

(i)                                     The manufacturers’
guidelines and recommendations for maintenance of the Facility equipment;

 

(ii)                                  A report
summarizing the results of maintenance performed during each Planned Outage and
any Forced Outage, and upon request of Buyer any of the technical data obtained
in connection with such maintenance; and

 

(iii)                               From the start of
construction of the Facility but before the Commercial Operation Date, a
monthly progress report stating the percentage completion of the Facility and a
brief summary of construction activity during the prior Month.

 

(iv)                              A report
summarizing the operating results from the Facility.

 

(v)                                 A report detailing
the upcoming Maintenance and Planned Outages.

 

(c)                                  Upon reasonable
prior notice (in light of the circumstances) and subject to the safety rules and
regulations of Seller, Seller will provide Buyer and its authorized agents,
employees and inspectors with reasonable access to the Premises and the
Facility: (i) for the purpose of reading or testing metering equipment, (ii) in
connection with the operation and maintenance of the Interconnection
Facilities, (iii) to provide tours of the Facility to customers and other
guests of Buyer, and (iv) for other reasonable purposes at the reasonable
request of Buyer.

 

23

 

ARTICLE
7.

 

ASSIGNMENT;
BINDING EFFECT

 

7.0                                 Assignment.

 

(a)                                  Neither party shall
assign this Agreement or any of its rights or obligations hereunder without the
prior written consent of the other party, which consent shall not be
unreasonably withheld or delayed. Notwithstanding the foregoing, Seller may,
without the consent of Buyer, assign this Agreement or the accounts, revenues
or proceeds hereof in connection with any financing or other financial
arrangements in accordance with subsection (b) below.

 

(b)                                 Seller may assign,
pledge or mortgage its rights hereunder for security of any indebtedness and (i) upon
giving notice to the Buyer of such assignment, pledge or mortgage, (A) the
assignee, pledgee or mortgagee shall be entitled to exercise all rights and
remedies it may have with respect to this Agreement without the further consent
of the Buyer, to receive a copy of any notice given by the Buyer or the Seller
pursuant to the terms hereof, and to deliver any notice permitted under this
Agreement on the Seller’s behalf, and (B) the Buyer shall be entitled to
assume the due authority of the assignee, pledgee or mortgagee in taking any
action or authorizing any notice without the necessity of independently
reviewing the assignment, pledge, mortgage, or other security instrument
delivered by the Seller to the assignee, pledgee or mortgagee and to accept
performance by the assignee, pledgee or mortgagee of any duty or obligation of
the Seller hereunder, and (ii) upon giving the Buyer a copy of a trustee’s
deed, deed in lieu of foreclosure, or other instrument pursuant to which the
assignee, pledgee, mortgagee, or other party acquires legal title to this
Agreement, (A) the assignee, pledgee, mortgagee, or other party shall
assume the Seller’s duties and obligations hereunder, provided that the
liability of any such assignee, pledgee or mortgagee under this Agreement
following such assumption shall be limited to its interests under the
Agreement, and (B) Buyer shall accept the assignee, pledgee, mortgagee, or
other party as the successor to the Seller under the Agreement. At the request
of Seller, Buyer agrees to execute and deliver a consent in a form reasonably
acceptable to the party(ies) providing financing to the Seller.

 

7.1                                 Binding Effect. This Agreement shall inure to the benefit
of and be binding upon the parties and their respective successors and
permitted assigns.

 

ARTICLE
8.

 

FORCE
MAJEURE; INDEMNITY; LIMITATION OF LIABILITY

 

8.0                                 Force Majeure. If either party
is rendered unable by Force Majeure to carry out, in whole or in part, its
obligations under this Agreement, then, during the pendency of such event of
Force Majeure, but for no longer period, the obligations of the Affected Party
(other than the obligation to make payments hereunder when due) shall be
suspended to the extent required. The Affected Party shall (a) endeavor to
give the other Party oral notice as soon as reasonably practicable following
such event of Force Majeure and, in any case, give the other Party written
notice within 48 hours of the commencement of the Force Majeure event, with
details to be

 

24

 

supplied within 3 Business Days after the commencement of the Force
Majeure event further describing the particulars of the occurrence of the Force
Majeure event, and (b) take all reasonable steps to remedy the cause of
the Force Majeure with all reasonable dispatch; provided, however, that this
provision shall not require Seller to deliver, or Buyer to receive, Delivered
Electricity at points other than the Delivery Point. Notwithstanding the
foregoing, in no event will any Force Majeure event extend this Agreement
beyond its Term.

 

8.1                                 Indemnification.

 

(a)                                  Each party shall
indemnify and hold harmless the other party and its officers, directors, agents
and employees from and against any and all claims, demands, actions, losses,
liabilities, expenses (including reasonable legal fees and expenses), suits and
proceedings of any nature whatsoever for personal injury, death or property
damage to each other’s property or facilities or personal injury, death or
property damage to third parties (collectively “Liabilities”) caused by the breach or gross negligence
or willful misconduct of the indemnifying party that arise out of or are in any
manner connected with the performance of this Agreement except to the extent
such injury or damage is attributable to the gross negligence or willful
misconduct or breach of this Agreement by the party seeking indemnification
hereunder.

 

(b)                                 Without limiting the
foregoing, Buyer shall indemnify Seller from all Liabilities related to
Delivered Electricity once sold and delivered to Buyer at the Delivery Point
and Seller shall indemnify Buyer for all Liabilities related to Delivered
Electricity prior to its delivery by Seller at the Delivery Point.

 

(c)                                  Any fines, penalties
or other costs incurred by either party or such party’s agents, employees or
subcontractors for non-compliance by such party, its agents, employees or
subcontractors with the Requirements of Law will not be reimbursed by the other
party but will be the sole responsibility of such non-complying party.

 

8.2                                 Limitations of Remedies,
Liability and Damages. The parties agree that the remedies
and measures of damages provided in this Agreement satisfy the essential
purposes hereof and, where this Agreement expressly provides for an exclusive
remedy in favor of any party for breach, default or failure to perform
hereunder, such remedy shall constitute the sole and exclusive remedy of the
non-breaching party for the liabilities of such breaching party arising out of
or in connection with this Agreement, notwithstanding any remedy otherwise available
at law or in equity. If no measure of damages or other remedy is expressly
provided herein, the obligor’s liability shall be limited to direct actual
damages only, which direct actual damages shall be the sole and exclusive
remedy and all other remedies or damages at law or in equity are waived. Except
where this Agreement provides for an exclusive remedy, neither party shall be
liable for consequential, incidental, punitive, exemplary or indirect damages,
lost profits or other business interruption damages, whether such damages are
allowed or provided by statute, in tort, under this Agreement, under any indemnity provision or otherwise.

 

8.3                                 Duty to Mitigate. Each party
agrees that it has a duty to mitigate damages and covenants that it will use
commercially reasonable efforts to minimize any damages it may incur as a
result of the other party’s default or non-performance of this Agreement.

 

25

 

8.4                                 Interruption. MPS, ISA, NBSO, or MEPCO may physically interrupt
or curtail the physical flow of energy from the Facility to the Delivery Point or from the Delivery Point to
Market Delivery Point (individually a “Transmission Curtailment Event”),
provided, however, that a
Transmission Curtailment Event shall not be deemed to occur (a) with
respect to the flow of energy between the Facility and the Delivery Point if
the interruption or curtailment arose from or was attributable to Seller’s
acts, errors or omissions, and (b) with respect to the flow of energy
between the Delivery Point and the Market Delivery Point if the interruption or curtailment arose from or was
attributable to Buyer’s acts, errors or omissions. Each Party shall use
commercially reasonable efforts to limit the negative impact of any such
Transmission Curtailment Event on the other Party. The Parties shall convene a
meeting within 5 Business Days to review their actions. In the event any such
Transmission Curtailment Event presents an opportunity to maximize the value of
sales of Delivered Electricity, each party shall use commercially reasonable
efforts to take advantage of any such opportunity.

 

ARTICLE 9.

 

FINANCIAL ASSURANCES

 

9.0                                 Credit Support.

 

(a)                                  On or before the date that is five (5) Business
Days after the date of this Agreement, Seller shall provide to Buyer or arrange
for the provision of, in the form of Exhibit B, an irrevocable letter of
credit from an Acceptable Financial Institution (the “Initial Seller LC”) in an amount equal to $***** (the “Baseline Seller Credit
Support Amount”). The Baseline
Seller Credit Support Amount assumes an amount of Costs equal to $***** but is based on a Buyer Exposure Amount equal to zero (0). Except as
otherwise provided in this Article 9, Seller shall maintain or arrange for
the maintenance of the Initial Seller LC in effect for the remainder of the
Term, provided that at any time Seller may replace or cause to be replaced the
Initial Seller LC (or any subsequent Seller Credit Support) with (i) cash,
(ii) a replacement irrevocable letter of credit from an Acceptable
Financial Institution in substantially the form of the Initial Seller LC, (iii) a
guarantee from a Creditworthy Affiliate in form and substance reasonably
satisfactory to Buyer, or (iv) some combination of the foregoing, in each
case, for a value equivalent to the Seller Credit Support being replaced.

 

(b)                                 On or before the date that is five (5) Business
Days after the date of this Agreement, Buyer shall provide to Seller, in the
form of Exhibit C, an irrevocable letter of credit from an Acceptable
Financial Institution (the “Initial Buyer LC”) in an amount equal to $***** (the “Baseline Buyer Credit Support Amount”). The Baseline Buyer Credit Support Amount
assumes an amount of Costs equal to $***** but is based on a
Seller Exposure Amount equal to zero (0). Except as otherwise provided in this Article 9,
Buyer shall maintain the Initial Buyer LC in effect for the remainder of the
Term, provided that at any time Buyer may replace the Initial Buyer LC (or any
subsequent Buyer Credit Support) with (i) cash, (ii) a replacement
irrevocable letter of credit from an Acceptable Financial Institution in
substantially the form of the Initial Buyer LC, (iii) a guarantee from a
Creditworthy Affiliate in form and substance reasonably satisfactory to Seller,
or (iv) some combination of the foregoing, in each case, for a value
equivalent to the Buyer Credit Support being replaced.

 

26

 

(c)           The Credit Support posted or caused to be
posted by a party may be drawn by the other party if the party posting the
Credit Support has (i) failed to pay any undisputed amounts due under this
Agreement (or failed to pay disputed amounts into an independent escrow account
as required by Section 6.2, pending resolution of the dispute) within ten (10) days
after such amounts are due or (ii) failed to pay any amount disputed and
found to be due under Article 12 within ten (10) days after such
party’s receipt of notice resolving such dispute. If the Credit Support posted
or caused to be posted by either party is drawn pursuant to this Section 9.0(c),
the party posting or causing the posting of such Credit Support shall have the
obligation to replenish or arrange the replenishment of the Credit Support to
the amount required pursuant to Section 9.1 within ten (10) days
after receipt of notice that the Credit Support has been drawn.

 

(d)           In the event that the Credit Support posted
or caused to be posted by a party is in the form of a letter of credit, such
letter of credit may be drawn by the beneficiary if such letter of credit is
due to expire within thirty (30) days and the
party providing such letter of credit has failed to deliver or cause to be
delivered to the other party an extended or replacement letter of credit (or
alternative replacement Credit Support in the form specified in Sections 9.0(a) or
9.0(b), as the case may be) meeting the requirements of this Agreement. In the
event that the Credit Support posted or caused to be posted by a party is drawn
pursuant to this Section 9.0(d), the party drawing on such Credit Support
shall hold such amounts in trust as cash collateral and may use such cash
collateral, or any portion thereof, for the purposes described in Section 9.0(c);
provided, however, that if the other party shall thereafter replace or cause to
be replaced such cash collateral with replacement Credit Support meeting the
requirements of this Agreement, the party holding such cash collateral shall
return the cash collateral, or any remaining portion thereof, to the other
party as soon as practicable.

 

9.1           Increases or Reductions in Credit Support.

 

(a)           On each Credit Support Calculation Date, each
party shall review (i) the credit rating of the other party (if any), and (ii) the
amount of the Credit Support posted by the other party as compared to the
applicable Exposure Amount as of such Credit Support Calculation Date.

 

(b)           If on any Credit Support Calculation Date,
Buyer determines, acting reasonably, Seller’s creditworthiness to be
Unsatisfactory, then Buyer may continue to require that Seller Credit Support
be provided, and Seller agrees to provide such Seller Credit Support, in an
amount equal to the applicable Baseline Seller Credit Support Amount plus the applicable
Buyer Exposure Amount. If on any Credit Support Calculation Date, Seller
determines, acting reasonably, Buyer’s creditworthiness to be Unsatisfactory,
then Seller may continue to require that Buyer Credit Support be provided, and
Buyer agrees to provide such Buyer Credit Support, in an amount equal to the
Baseline Buyer Credit Support Amount plus the applicable Seller Exposure Amount.
However, if either party’s credit rating is determined to be Investment Grade,
then the other party shall return any undrawn Credit Support to such party
within five (5) Business Days after such determination.

 

(c)           If on any Credit Support Calculation Date, (i) the
sum of the applicable Baseline Seller Credit Support Amount plus the applicable
Buyer Exposure Amount is greater

 

27

 

than the amount of Seller Credit Support and
the amount of such difference exceeds the Threshold Amount, then Buyer may by
written notice require that, within five (5) Business Days, Seller
increase the amount of Seller Credit Support provided, and Seller agrees to
provide such increased Seller Credit Support, by the amount the applicable
Baseline Seller Credit Support Amount plus
the applicable Buyer
Exposure Amount exceeds the amount of Seller Credit Support then-posted. Any
incremental Seller Credit Support required from Seller may be in the form of (i) cash,
(ii) an irrevocable letter of credit from an Acceptable Financial
Institution in substantially the
form of the Initial Seller LC, (iii) a guarantee from a Creditworthy
Affiliate in form and substance reasonably satisfactory to Buyer, or (iv) some
combination of the foregoing, in each case, for a value equivalent to the
Seller Credit Support being provided. Alternatively, if on any Credit Support
Calculation Date, the sum of the applicable Baseline Seller Credit Support
Amount plus the
applicable Buyer Exposure Amount is less than the amount of Seller Credit
Support (by more than the Threshold Amount), then Seller shall be entitled to
reduce the amount of Seller Credit Support provided by the amount such Seller
Credit Support exceeds the sum of the applicable Baseline Seller Credit Support
Amount plus the
applicable Buyer Exposure Amount, and Buyer shall cooperate with Seller as
necessary to return or modify the undrawn Seller Credit Support no longer
required within five (5) Business Days.

 

(d)           If on any Credit Support Calculation Date, (i) the sum of the
applicable Baseline Buyer Credit Support Amount plus
the applicable Seller
Exposure Amount is greater than the amount of Buyer Credit Support and the
amount of such difference exceeds the Threshold Amount, then Seller may by
written notice require that, within five (5) Business Days, Buyer increase
the amount of Buyer Credit Support provided, and Buyer agrees to provide such
increased Buyer Credit Support, by the amount the applicable Baseline Buyer
Credit Support Amount plus the applicable Seller Exposure Amount exceeds
the amount of Buyer Credit Support then-posted. Any incremental Buyer Credit
Support required from Buyer may be in the form of (i) cash, (ii) an
irrevocable letter of credit from an Acceptable Financial Institution in
substantially the form of the Initial Buyer LC, (iii) a guarantee from a
Creditworthy Affiliate in form and substance reasonably satisfactory to Seller,
or (iv) some combination of the foregoing, in each case, for a value
equivalent to the Buyer Credit Support being provided. Alternatively, if on any
Credit Support Calculation Date, the sum of the applicable Baseline Buyer
Credit Support Amount plus the applicable Seller Exposure Amount is less
than the amount of Buyer Credit Support (by more than the Threshold Amount),
then Buyer shall be entitled to reduce the amount of Buyer Credit Support provided
by the amount such Buyer Credit Support exceeds the sum of the applicable
Baseline Buyer Credit Support Amount plus the applicable Seller Exposure Amount, and
Seller shall cooperate with Buyer  as necessary  to return or modify the undrawn  Buyer Credit Support no longer required within five (5) Business Days.

 

(e)           If at any time, the credit rating of a financial institution providing
Credit Support in the form of a letter of credit no longer qualifies as an
Acceptable Financial Institution or the credit rating of an Affiliate providing
Credit Support in the form of a guarantee no longer qualifies as a Creditworthy
Affiliate, then in either case the party posting such Credit Support shall
provide replacement Credit Support in the form specified in Sections 9.0(a) or
9.0(b), as the case may be.

 

(f)            Each party shall return to the other party,
as applicable, any undrawn Credit Support on or before the date that is the
later of (i) thirty (30) days after the date of

 

28

 

termination
of this Agreement, and (ii) five (5) Business Days after the date on
which the party providing the Credit Support has paid the other party all
amounts owed to such party under this Agreement.

 

ARTICLE 10.

 

CONFIDENTIALITY

 

10.0         Confidentiality.  The parties agree that the
parties’ proposals and negotiations prior to the date hereof concerning this Agreement, the terms of this Agreement, and the actual charges billed to
Buyer or Seller under this Agreement, constitute the confidential business
information (“Confidential Business Information”) of both parties. Except as set forth herein,
Seller and Buyer each agree to hold such Confidential Business Information
wholly confidential. Such Confidential Business Information may only be used by
the parties for purposes related to the approval, administration or enforcement
of this Agreement and for no other purpose.

 

Each party agrees not to disclose
Confidential Business Information to any other person (other than its
Affiliates, counsel, consultants, lenders (including prospective lenders),
equity investors (including potential equity investors), employees, officers
and directors), without the prior written consent of the other party, provided
that either party may disclose Confidential Business Information, if such
disclosure is required by law or pursuant to an order of a court or regulatory
agency or in order to enforce this Agreement or to seek approval of this
Agreement. In the event a party is required by law or by a court or regulatory agency
to disclose Confidential Business Information, such party shall to the extent
possible notify the other party at least three (3) Business Days in
advance of such disclosure.

 

Each party agrees that violation of the terms
of Article 10 constitutes irreparable harm to the other, and that the
harmed party may seek any and all remedies available to it at law or in equity,
including but not limited to injunctive relief.

 

ARTICLE 11.

 

NOTICES AND ADDRESS FOR PAYMENT

 

11.0         Notices.  All notices, requests, statements or payments shall be made
to the addresses set out below. Notices required to be in writing shall be
delivered by letter, facsimile or other documentary form. Notice by facsimile
or hand delivery shall be deemed to have been received by the close of the
Business Day during which the notice is received or hand delivered. Notice by
overnight mail or courier shall be deemed to have been received upon delivery
as evidenced by the delivery receipt. A party may change its address by
providing notice of same in accordance herewith:

 

	
  To Buyer:

  	
   

  	
  515 King Street

  
	
   

  	
   

  	
  P. O. Box 2040

  
	
   

  	
   

  	
  Fredericton, New Brunswick

  
	
   

  	
   

  	
  Canada

  
	
   

  	
   

  	
  E3B 5G4

  
	
   

  	
   

  	
  Attn: Rick McGivney

  

 

29

 

	
  to Seller:

  	
   

  	
  Evergreen Wind Power, LLC

  
	
   

  	
   

  	
  c/o UPC Wind Management, LLC

  
	
   

  	
   

  	
  100 Wells Ave., Suite 201

  
	
   

  	
   

  	
  Newton, MA 02459

  

 

(a)           All
amounts due Seller under this Agreement must be sent via United States mail to
the address specified below:

 

	
   

  	
   

  	
  Evergreen Wind Power, LLC

  
	
   

  	
   

  	
  c/o UPC Wind Management, LLC

  
	
   

  	
   

  	
  100 Wells Ave., Suite 201

  
	
   

  	
   

  	
  Newton, MA 02459

  

 

or (ii) wire transfer to the following Account:

 

	
   

  	
   

  	
  Maine Wind Partners, LLC

  
	
   

  	
   

  	
  Bank of America

  
	
   

  	
   

  	
  ABA:

  	
  026 009 593

  
	
   

  	
   

  	
  Account:

  	
  0046 0490 2995

  

 

(b)           All
amounts due Buyer under this Agreement must be sent via United States mail to
the address specified below:

 

	
   

  	
   

  	
  515 King Street

  
	
   

  	
   

  	
  P. O. Box 2040

  
	
   

  	
   

  	
  Fredericton, New Brunswick

  
	
   

  	
   

  	
  Canada

  
	
   

  	
   

  	
  E3B 5G4

  
	
   

  	
   

  	
  Attn: Rick McGivney

  

 

or (ii) wire transfer to the following Account:

 

	
   

  	
   

  	
  DESTINATION:

  	
  CHASUS33

  
	
   

  	
   

  	
  (IBK)

  	
  JP Morgan Chase

  
	
   

  	
   

  	
   

  	
  NEW YORK, NY

  
	
   

  	
   

  	
   

  	
  ABA 021000021

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  PAY TO BANK:

  	
  ROYCCAT2

  
	
   

  	
   

  	
  (BBK)

  	
  ROYAL BANK OF

  
	
   

  	
   

  	
   

  	
  CANADA

  
	
   

  	
   

  	
   

  	
  TORONTO, ONTARIO

  
	
   

  	
   

  	
   

  	
  UID 055253

  

 

30

 

	
   

  	
   

  	
  BENEFICIARY:

  	
  00884 4001178

  
	
   

  	
   

  	
  (BNF)

  	
  NEW BRUNSWICK

  
	
   

  	
   

  	
   

  	
  POWER

  
	
   

  	
   

  	
   

  	
  CORPORATION

  
	
   

  	
   

  	
   

  	
  ATTENTION:

  
	
   

  	
   

  	
   

  	
  GENERATION

  

 

(c)           The
address or addressee to which notices or invoices shall be mailed may be
changed from time to time by either party by notice served as hereinabove
provided.

 

ARTICLE 12.

 

DISAGREEMENTS

 

12.0         Negotiations.  The
parties shall attempt in good faith to resolve all disputes arising out of or
related to or in connection with this Agreement promptly by negotiation, as
follows. Any party may give the other party written notice of any dispute not
resolved in the normal course of business. Executives of both parties at levels
one level above the personnel who have previously been involved in the dispute
shall meet at a mutually acceptable time and place within ten (10) days
after delivery of such notice, and thereafter as often as they reasonably deem
necessary, to exchange relevant information and to attempt to resolve the
dispute. If the matter has not been resolved within thirty (30) days from the
referral of the dispute to senior executives, or if no meeting of senior
executives has taken place within fifteen (15) days after such referral, either
party may initiate arbitration as provided hereinafter. All negotiations
pursuant to this clause are confidential.

 

12.1         Arbitration.

 

(a)           If the negotiation
process provided for in Section 12.0 has not resolved the dispute, the
dispute shall be decided by binding arbitration in the City of New York, New
York in accordance with the Commercial Arbitration Rules of the American
Arbitration Association (except as expressly provided otherwise herein). The
arbitration shall be governed by the United States Arbitration Act (9 U.S.C. §
1 et  seq.), and judgment upon the award rendered by the
arbitrator(s) may be entered in any court having jurisdiction thereof.
This agreement to arbitrate and any other agreement or consent to arbitrate
entered into in accordance herewith will be specifically enforceable under the
prevailing arbitration law of any court having jurisdiction. Notice of demand
for arbitration must be filed in writing with the other party to this
Agreement. The demand must be made within a reasonable time after dispute has
arisen. In no event may the demand for arbitration be made if the institution
of legal or equitable proceedings based on such dispute is barred by the applicable
statute of limitations. Any arbitration may be consolidated with any other
arbitration proceedings between the parties commenced under this Section 12.1.
The results of the arbitration shall be binding, and the award of the
arbitrator shall be specifically enforceable in a court of competent
jurisdiction.

 

31

 

(b)           Either party may commence the arbitration by giving to the other
written notice in sufficient detail of the existence and nature of any dispute
proposed to be arbitrated. The parties shall attempt to agree on a person with
respect to the matter at issue to serve as arbitrator. If the parties cannot
agree on an arbitrator within ten (10) days of such notice, each shall
then appoint one individual to serve as an arbitrator within 30 days of such
notice and the two (2) thus appointed shall select a third arbitrator to
serve as chairman of the panel of arbitrators; and such three (3) arbitrators
shall determine all matters by majority vote; provided however, if the two (2) arbitrators
appointed by the parties are unable to agree upon the appointment of the third
arbitrator within ten (10) days after their appointment, both shall give
written notice of such failure to agree to the parties, and, if the parties
fail to agree upon the selection of such third arbitrator within five (5) days
of such notice, then either of the parties upon written notice to the other may
require such appointment from, and pursuant to the rules of, the American
Arbitration Association for commercial arbitration. Any arbitrator appointed
shall be a present or former executive of an electric utility, or private power
company, or an attorney, in each case with substantial experience in electric
power purchase agreements. Prior to appointment, each arbitrator shall agree to
conduct such arbitration in accordance with the terms of this Agreement.

 

(c)           The parties shall have sixty (60) calendar days after appointment of
all arbitrators to perform discovery and present evidence and argument to the
arbitrators. During that period, the arbitrators shall be available to receive
and consider all such evidence as is relevant and, within reasonable limits due
to the restricted time period, to hear as much argument as is feasible, giving
a fair allocation of time to each party to the arbitration. The arbitrators
shall use all reasonable means to expedite discovery and to sanction
noncompliance with reasonable discovery requests or any discovery order. The
arbitrators shall not consider any evidence or argument not presented during
such period and shall not extend such period except by the written consent of
both parties. At the conclusion of such period, the arbitrators shall have
forty-five (45) calendar days to reach a determination.

 

(d)           The arbitrators shall have the right only to interpret and apply the
terms and conditions of this Agreement and to order any remedy allowed by this
Agreement, but may not change any term or condition of this Agreement, deprive
either party of any right or remedy expressly provided hereunder, or provide
any right or remedy that has been excluded hereunder.

 

(e)           The arbitrators shall give a written decision to the parties stating
their findings of fact, conclusions of law and order, and shall furnish to each
party a copy thereof signed by them within five (5) calendar days from the
date of their determination. Each party shall pay the cost of the arbitrator or
arbitrators, with respect to those issues as to which they do not prevail, as
determined by the arbitrator or arbitrators.

 

12.2         Settlement
Discussions.  The
parties agree that no statements of position or offers of settlement made in
the course of the dispute process described in this Article 12 above will
be offered into evidence for any purpose in any litigation or arbitration
between the parties, nor will any such statements or offers of settlement be
used in any manner against either party in any such litigation or arbitration.
Further, no such statements or offers of settlement shall constitute an admission
or waiver of rights by either party in connection with any such litigation

 

32

 

or arbitration. At the request of either party, any such statements and
offers of settlement, and all copies thereof, shall be promptly returned to the
party providing the same.

 

12.3         Preliminary Injunctive
Relief.  Nothing in this Article 12 shall preclude,
or be construed to preclude, the resort by either party to a court of competent
jurisdiction solely for the purposes of securing a temporary or preliminary
injunction to preserve the status quo or avoid irreparable harm pending
arbitration pursuant to this Article 12.

 

12.4         Confidential Proceedings.  The
fact that either party has invoked the provisions of this Article 12, the
arbitration proceedings and related communications, and the decision of the
arbitrators shall all be considered Confidential Business Information subject
to Article 10 hereof, and the arbitrators shall make no disclosure of any
confidential information that would not be permitted by a party under Article 10.

 

12.5         Submission to Jurisdiction.  Each
party hereby irrevocably consents to the non-exclusive jurisdiction of the
United States District Court of the Southern District of New York and the
courts of New York State sitting in the Borough of Manhattan in New York City,
in each case, for any action or proceeding filed by the other party (a) to
enforce any award or decision of any arbitration panel duly appointed under
this Agreement to resolve any dispute between the parties, and (b) regarding
any matter or issue that an arbitration panel declines to hear, and each party
waives any objection which it may now or hereafter have regarding the choice of
such forum, whether based on personal jurisdiction, venue, forum non conveniens
or on any other grounds. Buyer and Seller irrevocably consent to the service of
process outside of the territorial jurisdiction of such courts by mailing
copies thereof
by registered or certified mail, postage prepaid, to Buyer’s or Seller’s,
as the case may be, last known address as shown in this Agreement with the same
effect as if such party were a resident of the State of New York and had been
lawfully served in such State. Nothing in this Agreement shall affect the right
to service of process in any other manner permitted by law. THE PARTIES HEREBY
WAIVE ALL RIGHTS TO A TRIAL BY JURY WITH RESPECT TO ANY CONTROVERSY, DISPUTE OR
CLAIM UNDER THIS AGREEMENT.

 

ARTICLE 13.

 

MISCELLANEOUS

 

13.0         Entirety.  This
Agreement and the Schedules and Exhibits hereto constitute the entire agreement
between the parties and supersede any prior or contemporaneous agreements or
representations of the parties affecting the same subject matter.

 

13.1         Choice of Law.  This
Agreement shall be governed by and construed in accordance with the laws of the
State of New York, without giving effect to any principles of conflicts of law
other than Section 5-1401 of the New York General  Obligations
Law.

 

13.2         Non-Waiver.  No
waiver by either party hereto of any one or more defaults by the other party in
the performance of any of the provisions of this Agreement shall be construed
as a waiver of any other default or defaults whether of a like kind or
different nature.

 

33

 

13.3         Headings; Attachments.  The headings used for the
sections and articles herein are for convenience and reference purposes only
and shall in no way affect the meaning or interpretation of the provisions of
this Agreement. Any and all attachments referred to in this Agreement are, by
such reference, incorporated herein and made a part hereof for all purposes.

 

13.4         Counterparts.  This Agreement may be executed in
two counterparts, each of which is an original and all of which constitute one
and the same instrument.

 

13.5         Forward Contract.

 

(a)           Without limiting the applicability of any other provision of Title 11
of the United States Code (as amended, the “Bankruptcy Code”),
the Parties acknowledge and agree that (i) this Agreement constitutes a “forward
contract” as defined in Section 101 (25) of the Bankruptcy Code; (ii) Purchaser
and Seller are “forward contract merchants” within the meaning of Section 101
(26) of the Bankruptcy Code; (iii) that the rights of the Parties under
the termination provisions of this Agreement will constitute contractual rights
to liquidate transactions hereunder; (iv) that any payment related thereto
will constitute a “settlement payment” as defined in Section 101 (51A) of
the Bankruptcy Code; and (v) that the Parties are entitled to the rights
under, and protections afforded by, Sections 362, 546, 556, and 560 of the
Bankruptcy Code.

 

(b)           Without limiting the applicability of any other provision of the
Bankruptcy and Insolvency Act (Canada) (as amended, the “Canadian Bankruptcy Act”), the Parties acknowledge and agree that (i) this Agreement
constitutes an “eligible financial contract” as defined in Section 65.1(8) of
the Canadian Bankruptcy Act; (ii) that the rights of the Parties under the
termination provisions of this Agreement may be used to calculate the net
termination value within the meaning of Section 65.1(8) of the
Canadian Bankruptcy Act; and (iii) that the Parties are entitled to the
rights under, and protections afforded by Section 65.1 of the Canadian
Bankruptcy Act.

 

13.6         Other.  This Agreement (i) shall not be altered
or amended except by an instrument in writing executed by authorized
representatives of the parties; (ii) does not confer any rights upon any
person other than the parties and their respective successors and permitted
assigns; and (iii) may be performed by Seller through the use of agents
and subcontractors (but such use  shall not relieve Seller of any obligation hereunder). Any provision of
this Agreement which is prohibited or unenforceable in a specific situation in
any jurisdiction shall not affect the validity or enforceability of (a) that
provision in another situation or in any other jurisdiction, or (b) the
other provisions of this Agreement if such other provisions could then continue
to conform with the purposes of this Agreement and the terms and requirements
of applicable law. The parties shall execute and deliver all documents and
perform all further acts that may be reasonably necessary to effectuate the
provisions of this Agreement.

 

* * Signature Page to Follow * *

 

34

 

IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first
set out above. This Agreement shall not become effective as to either party
unless and until executed  by both parties.

 

 

	
   

  	
   

  	
  EVERGREEN WIND POWER,

  
	
   

  	
   

  	
  LLC, as SELLER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Paul Gaynor

  
	
   

  	
   

  	
  Name:

  	
  PAUL GAYNOR

  
	
   

  	
   

  	
  Title:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NEW BRUNSWICK POWER

  
	
   

  	
   

  	
  GENERATION CORPORATION,

  
	
   

  	
   

  	
  as BUYER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Daryl Bishop

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  /s/ Michael Gorman

  
	
   

  	
   

  	
  Name:

  	
  MICHAEL GORMAN

  
	
   

  	
   

  	
  Title:

  	
  VP.—Legal

  
							

 

Signature
Page to Energy Management Services Agreement

 

 

SCHEDULE A

 

DELIVERED ELECTRICITY PRICE

 

	
  Delivery Year

  	
   

  	
  Delivered Electricity Price (US$ /MWh)

  	
   

  
	
  2006

  	
   

  	
  *****

  	
   

  
	
  2007

  	
   

  	
  *****

  	
   

  
	
  2008

  	
   

  	
  *****

  	
   

  
	
  2009

  	
   

  	
  *****

  	
   

  
	
  2010

  	
   

  	
  *****

  	
   

  
	
  2011

  	
   

  	
  *****

  	
   

  

 

 

SCHEDULE B

 

MINIMUM
DELIVERED ELECTRICITY AMOUNT

 

	
  Calendar Quarter

  	
   

  	
  Minimum Delivered Electricity Amount

  	
   

  
	
  January-March

  	
   

  	
  *****
  MWh

  	
   

  
	
  April-June

  	
   

  	
  *****
  MWh

  	
   

  
	
  July-September

  	
   

  	
  *****
  MWh

  	
   

  
	
  October-December

  	
   

  	
  *****
  MWh

  	
   

  
	
  Annual Total

  	
   

  	
  *****
  MWh

  	
   

  

 

 

SCHEDULE C

 

SCHEDULING FEE

 

	
  Delivery Year

  	
   

  	
  Scheduling Fee (US$ /MWh)

  	
   

  
	
  2006

  	
   

  	
  *****

  	
   

  
	
  2007

  	
   

  	
  *****

  	
   

  
	
  2008

  	
   

  	
  *****

  	
   

  
	
  2009

  	
   

  	
  *****

  	
   

  
	
  2010

  	
   

  	
  *****

  	
   

  
	
  2011

  	
   

  	
  *****

  	
   

  

 

 

SCHEDULE D

 

EXPOSURE AMOUNT CALCULATION

 

Part I

 

Determination of the Buyer Exposure Amount

 

The
Buyer Exposure Amount shall be calculated as the product of (a) the difference
between the ***** starting in the second quarter of calendar year 2007 and for
the remainder of the Term. The resulting amount shall be rounded upwards for
any fractional amount to the next $10,000. If the Buyer Exposure Amount is
determined to be a negative number, the Buyer Exposure Amount shall be deemed
to be zero (0).

 

Sample Calculation of the Buyer Exposure
Amount

 

For
example, if there are eight calendar quarters remaining in the Term, and the
Initial Mass Hub Index and the current Mass Hub Index are:

 

	
   

  	
   

  	
   

  	
   

  	
  A

  	
   

  	
   

  	
   

  	
  B

  	
   

  	
  B–A

  	
   

  	
   

  	
   

  
	
  Quarter

  	
   

  	
  Initial

  Mass Hub

  Index

  ($ /MWh)

  	
   

  	
  Initial

  Mass Hub

  Index less

  *****%

  ($ /MWh)

  	
   

  	
  Current

  Mass Hub

  Index

  ($ /MWh)

  	
   

  	
  Buyer

  Electricity

  Index

  ($ /MWh)

  	
   

  	
  Difference

  ($ /MWh)

  	
   

  	
  Minimum

  Delivered

  Electricity

  Amount

  (MWh)

  	
   

  
	
  Q110

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  Q210

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  Q310

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  Q410

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  Q111

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  Q211

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  Q311

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  Q411

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  

 

Then the Buyer Exposure Amount
shall be calculated as:

 

(***** * *****) + (***** * *****)
+ (***** * *****) + (***** * *****) + (***** * *****) + (***** * *****) + (*****
* *****) + (***** * *****) = US$*****,

 

which is then rounded to US$*****.

 

 

Part II

 

Determination of Seller Exposure Amount

 

The Seller Exposure Amount shall be calculated as the product of (a) the
difference between *****
starting in the second quarter of calendar year 2007 and for the remainder of
the Term. The resulting amount shall be rounded upwards for any fractional
amount to the next $10,000. If the Seller Exposure Amount is determined to be a
negative number, the Seller Exposure Amount shall be deemed to be zero (0).

 

Sample Calculation of the Seller Exposure Amount

 

For example, if there are eight calendar quarters remaining in the
Term, and the current Mass Hub Index is:

 

	
   

  	
   

  	
  C

  	
   

  	
   

  	
   

  	
  D

  	
   

  	
  C-D

  	
   

  	
   

  	
   

  
	
  Quarter

  	
   

  	
  Delivered

  Electricity

  Price

  ($/MWh)

  	
   

  	
  Current

  Mass Hub

  Index

  ($/MWh)

  	
   

  	
  Seller

  Electricity

  Index

  ($/MWh)

  	
   

  	
  Difference

  ($/MWh)

  	
   

  	
  Minimum

  Delivered

  Electricity

  Amount

  (MWh)

  	
   

  
	
  Q110

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  Q210

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  Q310

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  Q410

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  Q111

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  Q211

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  Q311

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  Q411

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  

 

Then the Seller Exposure Amount shall be calculated as:

 

(***** * *****) + (***** * *****) + (***** * *****) + (***** * *****) +
(***** * *****) + (***** * *****) + (***** * *****) + (***** * *****) =
US$*****,

 

which is then rounded to US$*****

 

 

SCHEDULE E

 

INITIAL MASS HUB INDEX

 

	
  Calendar Quarter

  	
   

  	
  Price (US$/MWh)

  	
   

  
	
  Q207

  	
   

  	
  *****

  	
   

  
	
  Q307

  	
   

  	
  *****

  	
   

  
	
  Q407

  	
   

  	
  *****

  	
   

  
	
  Q108

  	
   

  	
  *****

  	
   

  
	
  Q208

  	
   

  	
  *****

  	
   

  
	
  Q308

  	
   

  	
  *****

  	
   

  
	
  Q408

  	
   

  	
  *****

  	
   

  
	
  Q109

  	
   

  	
  *****

  	
   

  
	
  Q209

  	
   

  	
  *****

  	
   

  
	
  Q309

  	
   

  	
  *****

  	
   

  
	
  Q409

  	
   

  	
  *****

  	
   

  
	
  Q110

  	
   

  	
  *****

  	
   

  
	
  Q210

  	
   

  	
  *****

  	
   

  
	
  Q310

  	
   

  	
  *****

  	
   

  
	
  Q410

  	
   

  	
  *****

  	
   

  
	
  Q111

  	
   

  	
  *****

  	
   

  
	
  Q211

  	
   

  	
  *****

  	
   

  
	
  Q311

  	
   

  	
  *****

  	
   

  
	
  Q411

  	
   

  	
  *****

  	
   

  

 

For the remainder of the Term, when
calculating exposure amounts, quarterly prices shall be determined by the
hourly-weighted average of daily prices, if available, or if daily prices are
not available, monthly prices, in either case of both peak and off-peak
mid-market prices as appropriate. Mid-market prices shall be the arithmetic
average of offer and bid prices. For example, if the appropriate
broker-provided prices are:

 

	
  Month

  	
   

  	
  Peak/Off-

  Peak

  	
   

  	
  Hours in

  Period

  	
   

  	
  Bid Price

  ($/MWh)

  	
   

  	
  Offer Price

  ($/MWh)

  	
   

  	
  Mid-Price

  ($/MWh)

  	
   

  
	
  January

  	
   

  	
  Peak

  	
   

  	
  336

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  January

  	
   

  	
  Off-Peak

  	
   

  	
  408

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  February

  	
   

  	
  Peak

  	
   

  	
  320

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  February

  	
   

  	
  Off-Peak

  	
   

  	
  352

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  March

  	
   

  	
  Peak

  	
   

  	
  368

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
  March

  	
   

  	
  Off-Peak

  	
   

  	
  376

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  	
  *****

  	
   

  
	
   

  	
   

  	
  Total Hours

  	
   

  	
  2160

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Then
the price to be used for this quarter shall be calculated as: *****

 

 

EXHIBIT A

 

OPERATING PROCEDURES

 

1.                                       For
each Day during the Term, Seller shall advise Buyer in writing by fax or
electronic mail or internet posting of the anticipated Delivered Electricity by
the Facility for each hour of each such Day based upon the Seller’s good faith
estimates (the “Daily Production
Schedule”) on or before 10:00 o’clock a.m. Atlantic Prevailing
Time on the day preceding such Day. The Seller authorizes the Buyer to schedule
transmission service with transmission providers (either utilizing the firm
transmission capacity reserved by the Buyer, or, if such capacity has not been
reserved or is insufficient, interruptible transmission service obtained by the
Buyer) between the Delivery Point and the Market Delivery Point and to re-sell
the Delivered Electricity purchased under this Agreement into ISO-NE at the
Market Delivery Point based on the Seller’s Daily Production Schedules.

 

2.                                       The
Seller may request changes to a Daily Production Schedule after it is delivered
to the Buyer. Provided such request is made at least 120 minutes prior to the
deadline for the Buyer to adjust its nominations and schedules with
transmission providers, ISO-NE and other system operators based on the then
prevailing market rules, policies, tariffs, procedures and protocols of such
entities (the “Scheduling Deadline”),
the Buyer will revise such nominations and schedules in accordance with the
Seller’s request and the Daily Production Schedule shall be adjusted
accordingly.

 

3.                                       If
the Seller’s request to change its Daily Production Schedule is made less than
90 minutes prior to the Scheduling Deadline, the Buyer will use reasonable
efforts in the circumstances to adjust its nominations and schedules with
Transmission Providers, ISO-NE and other system operators and if it is able to
do so, the Daily Production Schedule shall be adjusted accordingly

 

4.                                       Authorized Representatives. As a means of
securing effective cooperation and interchanges of information and of providing
consultation on a prompt and orderly basis between the parties in connection
with various administrative, commercial and technical issues which may arise
during the performance of this Agreement, the Operating Procedures also provide
that both parties appoint an authorized representative (with respect to each
party, the “Authorized Representative”)
and may appoint an alternate (with respect to each party, the “Alternate”) to act in its
Authorized Representative’s absence. The Authorized Representatives and
Alternates shall be managers well-experienced with regard to matters relating
to the implementation of the parties’ rights and obligations under this
Agreement with full authority to act for and on behalf of the parties
appointing them. Each party will notify the other in writing of its Authorized
Representative and Alternate and these appointments will remain in full force
and effect until written notice of substitution is delivered to the other
party.

 

 

The
Authorized Representatives (and/or the Alternates) shall meet on a regular
basis, but no more frequently than semi-annually during the Term. Such meetings
may be conducted in person or via telephone or other electronic means, as the
Parties may agree. During these meetings, the Parties shall specifically
discuss any changes in the New Brunswick and New England energy markets that
may impact the calculation of damages and costs payable under Section 3.7
of this Agreement in the case of a non-delivery of Delivered Electricity into
1SO-NE.

 

5.                                       Scheduling and Settlement.

 

a.                             Since the scheduling of energy is required by
NBSO, ISA, MPS, NBP, MEPCO, Transenergie (Quebec), and ISO-NE, (i) the
Seller will provide to the Buyer a forecast, day ahead and at regular intraday
intervals pursuant to these Operating Procedures, as well as provide metering
information pursuant to Article 3 of this Agreement, (ii) each
party shall designate Authorized Representatives to communicate hereunder with
regard to scheduling and related matters, and (iii) Buyer will be
responsible for arranging for the scheduling of Delivered Electricity to be
sold and delivered. The Buyer will schedule the Delivered Electricity pursuant
to the tariff, market rules and the operating procedures of each transmission
provider(s)/administrator(s) and/or market administrator(s), as applicable.
Each party shall comply with the applicable operating policies, criteria and/or
guidelines of FERC and any regional or subregional reliability council.

 

b.                            Buyer shall indemnify and make whole Seller
for any increased costs or loss of revenue, including but not limited to
imbalancing costs incurred by Seller or loss of electrical energy, REC and/or
Capacity Value revenue caused by Buyer’s scheduling errors.

 

c.                             Buyer shall use commercially reasonable
efforts to transfer any and all ISO-NE settlement account data or other data
necessary to create RECs in the NEPOOL GIS system for the Seller’s account for
all Delivered Electricity delivered to ISO-NE. From time to time, a third party
may be necessary to transfer such settlement account data or other data. At
Seller’s reasonable request, Buyer shall enter into an agreement with such
third party in order to create RECs in the NEPOOL GIS system for the Seller’s
account for all Delivered Electricity delivered to ISO-NE. During the Term,
Buyer agrees to take any further reasonable action involving ISO-NE or the
NEPOOL GIS or otherwise to ensure that the entire amount of RECs which Seller receives or is credited (or
should receive or be credited)
through generation at the Facility and/or as owner of the Facility will be
deposited into Seller’s NEPOOL GIS account and, in no event, shall Buyer take
any action which would or could cause such RECs to be issued to any other party
or transferred to any account other than Seller’s account within the NEPOOL
GIS, except in accordance with the foregoing provisions of this paragraph.

 

 

EXHIBIT B

 

FORM OF INITIAL SELLER LC

 

 

230 Park Avenue

New York, New York 10169-0005

Telephone: (212) 407-6000

Telecopy: (212) 407-6133

 

	
  Irrevocable Standby Letter of Credit No.:

  	
   

  	
  [SB             ]

  	
   

  	
   

  
	
  Date of Issue:

  	
   

  	
  [        ,
  2006]

  
	
  Currency and Amount:

  	
   

  	
  [                  ]

  
	
  Expiration Date:

  	
   

  	
  [                  ]

  
	
  Place of Expiry:

  	
   

  	
  At our office

  

 

	
  BENEFICIARY: New Brunswick Power 

  Generation Corporation

  	
   

  	
  APPLICANT: UPC Wind Partners, LLC

  

 

Dear Madam or Sir:

 

We hereby establish for the account of UPC Wind
Partners, LLC, a Delaware limited liability company (“Applicant”), our
Irrevocable Standby Letter of Credit (this “Letter of Credit”) in your
favor for an amount of [USD $[           ]
([             
dollars,
United States currency). Applicant has advised us that this Letter of Credit is
issued in connection with that certain Energy Management Services Agreement
dated as of [              ,
2006]
by and among New Brunswick Power Generation Corporation, a corporation created
under the Business Corporations Act of New Brunswick (“Beneficiary”) and
Evergreen Wind Power, LLC, a Delaware limited liability company and
wholly-owned subsidiary of Applicant (as amended or restated from time to time,
the “Agreement”). This Letter of Credit (i) shall become effective
immediately for the term of one (1) year and shall expire at our counters
in New York on
[           , 2007] at
[               a.m./p.m.]
(the “Expiration Date”), and (ii) is subject to the following:

 

1.                                       Funds under this
Letter of Credit shall be made available to Beneficiary against its draft drawn
on us in the form of Annex I hereto, dated the date of presentation,
accompanied by (a) a certificate in the form of Annex 2 hereto,
appropriately completed and purporting to be signed by an authorized officer of
Beneficiary, and (b) the original of this Letter of Credit (the “Accompanying
Documents”) and presented at our office located at 230 Park Avenue, New
York, New York 10169, Attention: Loan Operations (or at any other office which
may be designated by us by written notice delivered to you). A presentation
under this Letter of Credit may be made only on a day, and during hours of 9:00
AM and 5:00 PM, New York time in which such office is open for business (a “Business
Day”). If we receive your draft and the Accompanying Documents at such
office on any Business Day, all in strict conformity with the terms and
conditions of this Letter of Credit, we will honor the same by making payment
in accordance with your payment instructions on the third succeeding Business
Day after presentation. If the amount of the drawing, together with all
previous drawings pursuant to this Letter of Credit, is less than the aggregate
amount of this Letter of Credit, we will return this Letter of Credit to you
with a notation of the remaining amount available hereunder.

 

 

2.                                  Absent occurrence
of events (i), (ii) and (iii) of Clause 3 below, the Expiration Date
of this Letter of Credit may be extended without amendment for periods of one
(1) year from its present Expiration Date, or any future Expiration Date,
if Applicant provides us with a written request for renewal at least ninety
(90) days prior to any Expiration Date unless at least sixty (60) days prior to
any Expiration Date we send Applicant and you notice by registered mail, return
receipt requested, or courier service or hand delivery at your above address
that we elect not to consider the Expiration Date of this Letter of Credit
extended for any such additional period. In no event shall the Expiration Date
extend beyond [                 ].

 

3.                                  This Letter of
Credit terminates upon the earliest to occur of (i) our receipt of a
notice in the form of Annex 3 hereto purporting to be signed by an authorized
officer of Beneficiary, accompanied by this Letter of Credit for cancellation,
(ii) our honoring of one or more drafts presented hereunder in an
aggregate amount equal to the amount of this Letter of Credit, and
(iii) our close of business at our aforesaid office on the Expiration
Date, or if the Expiration Date is not a Business Day, then on the preceding
Business Day, this Letter of Credit shall be surrendered to us by you.

 

4.                                  This Letter of
Credit is not transferable and, except as otherwise expressly stated herein, is
subject to the Uniform Customs and Practice for Documentary Credits (1993
revision), International Chamber of Commerce Publication No. 500.

 

5.                                  This Letter of
Credit sets forth in full our undertaking, and such undertaking shall not in
any way be modified, amended, amplified, or limited by reference to any
document, instrument, or agreement referred to herein, except for Annexes 1, 2
and 3 hereto and the notices referred to herein; and any such reference shall
not be deemed to incorporate herein by reference any document, instrument, or
agreement except as provided in this paragraph 5.

 

6.                                  Communications with
respect to this Letter of Credit shall be in writing and shall be addressed to
us at the address referred to in paragraph 1 above, and shall specifically
refer to this Letter of Credit No. [SB              ].

 

Very truly yours,

HSH NORDBANK AG, NEW YORK BRANCH

 

 

	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Name:

  	
  Name:

  
	
  Title:

  	
  Title:

  

 

 

ANNEX 1

TO LETTER
OF CREDIT NO. [SB                  ]

 

Draft under Irrevocable Standby Letter of
Credit No. [SB                   ]
(“Letter of Credit”)

 

[ Month,
Day, Year ]

 

On [third business day next succeeding
date of presentation]

 

Pay  to New Brunswick Power Generation
Corporation, having its head office in the City of Fredrickton, New Brunswick,
Canada USD $                           
[not to exceed amount available to be drawn]

 

[insert any
wire instructions]

 

For value received and charge to account of
Letter of Credit No. [SB                      ]
of HSH Nordbank AG, New York Branch, 230 Park Avenue, New York, New York
10169-0005.

 

 

	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

ANNEX 2

TO LETTER
OF CREDIT NO. [SB                  ]

 

Drawing under Irrevocable Standby Letter of
Credit No. [SB                   ]

 

The undersigned, a duly authorized officer of New
Brunswick Power Generation Corporation (“Beneficiary”), hereby certifies
on behalf of Beneficiary to HSH Nordbank AG, New York Branch with reference to
the Irrevocable Standby Letter of Credit No. [SB               
] (the “Letter of Credit”) issued for the account of UPC Wind
Partners, LLC (“Applicant”), that:

 

1)                                     CHOOSE ONE

 

(a)                            pursuant to Section 9.0(c)(i) of
that certain Energy Management Services Agreement dated as of [              ,
2006] by and among Beneficiary and Evergreen Wind Power, LLC (“Evergreen”),
a wholly-owned subsidiary of Applicant (as amended or restated from time to
time, the “Agreement”), Beneficiary is entitled to draw under the Letter
of Credit due to the fact that Evergreen has failed to pay an undisputed amount
due under the Agreement within ten (10) days after such amount was due;

 

(b)                           pursuant to
Sections 6.2 and 9.0(c)(i) of the Agreement, Beneficiary is entitled to
draw under the Letter of Credit due to the fact that Evergreen has failed to
pay a disputed amount into an independent escrow account, pending resolution of
the dispute, within ten (10) days after such amount was due;

 

(c)                            pursuant to Section 9.0(c)(ii)
of the Agreement, Beneficiary is entitled to draw under the Letter of Credit
due to the fact that Evergreen has failed to pay an amount disputed and found
to be due under Article 12 of the Agreement within ten (10) days
after Evergreen’s receipt of notice resolving such dispute;

 

(d)                           pursuant to Section 9.0(d),
the Credit Support posted by Applicant is due to expire within thirty (30) days
and the Applicant has failed to deliver or cause to be delivered to Beneficiary
an alternative replacement Credit Support as specified in Sections 9.0(a) or
9.0(b); or

 

(e)                            the Expiration Date
of the Letter of Credit will occur no more than thirty (30) days after the date
of this certificate, and the Applicant has not provided a replacement letter of
credit in form and substance as required by the Agreement in an amount required
pursuant to the Agreement.

 

2)                                     by presenting this
certificate and the accompanying sight draft, Beneficiary is requesting that
payment in the amount of $                     
as specified on said draft, be made under the Letter of Credit by wire transfer
or deposit of funds into the account specified on said draft;

 

 

3)                                     the amount specified on the sight draft
accompanying this certificate does not exceed the amount to which Beneficiary
is entitled to draft under said Section [9.0(c)(i)/ 9.0(c)(ii)] of the
Agreement;

 

4)                                     Beneficiary, on or prior to the date hereof,
has transmitted by facsimile (with receipt confirmed) a copy of this
certificate to Applicant, to the attention of President at facsimile number
(617) 964-3342 or such number as has been designated by Applicant in a written
notice delivered to us, and has deposited, postage-prepaid, another copy hereof
with a reputable overnight delivery courier service for delivery overnight to
Applicant at the following address:

 

UPC
Wind Partners, LLC

c/o
UPC Wind Management, LLC

100
Wells Avenue, Suite 201

Newton,
MA 02459

Attn:
President

 

All
capitalized terms used herein which are defined in the above-referenced Letter
of Credit have the same meanings when used herein.

 

In
witness whereof, Beneficiary has caused this certificate to be duly executed
and delivered by its duly authorized officer as of the date and year written
below.

 

 

	
  Date:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
   

  

 

 

ANNEX 3

TO LETTER OF CREDIT NO. [SB                  ]

 

Notice of surrender of Irrevocable Standby Letter of
Credit No. [SB                   ]

 

	
  Date: 

  	
   

  	
   

  	
   

  

 

HSH Nordbank AG, New York Branch 

230 Park Avenue

New York, New York 10169

Attention: Loan Administration

 

Re:    Letter of Credit No. [SB                   ]
issued for the account of UPC Wind Partners, LLC (“Applicant”).

 

 

Ladies and Gentlemen: 

 

We refer to your above-mentioned Irrevocable Standby
Letter of Credit (the “Letter of Credit”). The undersigned hereby
surrenders the Letter of Credit to you for cancellation as of the date hereof.
No payment is demanded of you under this Letter of Credit in connection with
this surrender.

 

Very truly yours,

 

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
					

 

 

EXHIBIT C

 

FORM OF INITIAL BUYER LC

 

 

ISSUING BANK: ROYAL BANK OF CANADA, NEW YORK, N.Y.

 

	
  Irrevocable Standby Letter of Credit No.:

  	
   

  	
   

  
	
  Date of issue:

  	
   

  	
   

  
	
  Expiration Date:

  	
   

  	
  1 year from issue date 

  
	
  Place of Expiry:

  	
   

  	
  At our office specified below

  
	
   

  	
   

  	
   

  
	
  Beneficiary:

  	
   

  	
   

  
	
  Evergreen Wind Power, LLC

  	
   

  	
   

  
	
  c/o
  UPC Wind Management, LLC

  	
   

  	
   

  
	
  100 Wells
  Ave., Suite 201

  	
   

  	
   

  
	
  Newton,
  MA 02459

  	
   

  	
   

  

 

We hereby issue this Irrevocable Standby Letter of Credit
(this “Letter of Credit”) for the account of and on behalf of NEW BRUNSWICK
POWER GENERATION CORPORATION, 515 KING STREET, P.O. BOX 2040 , FREDERICTON
, NEW BRUNSWICK, CANADA , E3B 5G4, ( the “Applicant” ) in favour of EVERGREEN
WIND POWER LLC , (“the Beneficiary”) in an amount equal to USD [                          
(
                     
U.S. dollars only ), available against presentation of the following document(s):

 

1.              The original
of this Letter of Credit.

 

2.              Beneficiary’s certificate
purportedly signed by an authorized signing officer representing Evergreen Wind
Power, LLC specifying the amount claimed and certifying the Beneficiary is
entitled to draw under this Letter of Credit pursuant to the terms and
conditions set forth in that certain Energy Management Services Agreement
entered into as of the                   
day of July, 2006, by and between the Beneficiary and the Applicant.

 

Partial drawing(s) permitted.

 

If presentation of a drawing is made in compliance with the
terms and conditions hereof on a Business Day at our counters at or before
10:00 a.m., New York, New York time, we shall honor such drawing on the
same Business Day. If a demand is presented in compliance with the terms and
conditions hereof at our counters after 10:00 a.m., New York, New York,
time, we shall honor such drawing on the next Business Day. For the purposes of
this section, Business Day means a day, other than a Saturday or Sunday, on
which commercial banks are not authorized or required to be closed in New York,
New York.

 

The following additional terms and conditions apply:

 

This Letter of Credit shall expire with our close of business
at 5:00 p.m., New York, New York time, on ( 1 year from issue date) ,
unless extended as hereinafter provided.

 

 

ASSIGNMENT OF TRANSMISSION RIGHTS

 

THIS ASSIGNMENT OF TRANSMISSION RIGHTS (as amended, modified, supplemented, restated
or replaced from time to time, this “Assignment Agreement”), dated as of                        ,
2006, made by NEW BRUNSWICK POWER GENERATION CORPORATION, a corporation under
the laws of the Province of New Brunswick (the “Assignor”), in favour of EVERGREEN WIND POWER, LLC, a
Delaware limited liability company (the “Assignee”) (together with any successor(s) thereto).

 

W I T N E S S E T H:

 

WHEREAS:

 

A.                                   Assignee is developing, financing,
constructing, owning and operating a wind generation facility (the “Facility”)
located on Mars Hill Mountain and the surrounding areas of Mars Hill, Aroostook
County, Maine;

 

B.                                     Assignor has transmission rights in the form
of long-term firm point-to-point transmission service from the New Brunswick
System Operator (“NBSO”) to allow the transmission of electric power
over the transmission facilities that NBSO controls (the “Grid”) from
New Brunswick to the point of interconnection between the NBSO controlled Grid
and the transmission facilities that the Maine Electric Power Company (“MEPCO”) controls (the “Interconnection
Point”);

 

C.                                     Assignor and Assignee have entered into that
certain Energy Management Services Agreement, dated as of the date hereof (as
amended, amended and restated, supplemented or otherwise modified from time to
time in accordance with its terms, the “EMSA”), pursuant to which, among
other things, Assignor has agreed to purchase electric energy from Assignee at
the EMSA Delivery Point and transmit such energy through the Interconnection
Point and into the ISO-NE system; and

 

D.                                    As a condition precedent to Assignee entering
into its obligations under the EMSA, Assignee requires that Assignor shall have
executed and delivered this Assignment Agreement as security for Assignor’s
obligations pursuant to the EMSA and to ensure in the event of an Event of Default
that Assignee shall have access to electricity transmission rights sufficient
to allow Assignee to deliver electricity from the Facility to the Interconnection Point (and ultimately,
pursuant to separate contractual arrangements, to ISO-NE) as contemplated by
the EMSA;

 

NOW THEREFORE for good and valuable consideration the
receipt of which is hereby acknowledged, and in order to induce the Assignee to
enter into the EMSA, the Assignor agrees, for the benefit of the Assignee, as
follows:

 

 

ARTICLE 1 -  DEFINITIONS

 

1.01                           Certain Terms. The following terms when used in this Assignment Agreement, including its preamble and recitals, shall
have the following meanings
(such definitions to be equally
applicable to the singular and plural forms thereof):

 

(a)                                  “Assignee” has the meaning given in
the preamble to this Assignment Agreement.

 

(b)                                 “Assignor” has the meaning given in
the preamble to this Assignment Agreement.

 

(c)                                  “EMSA” has the meaning given in the recitals
to this Assignment Agreement.

 

(d)                                 “EMSA Delivery Point” means the
delivery point at which Assignor takes title and risk of loss to the power sold
from Assignee to Assignor as specified in the EMSA.

 

(e)                                  “Event of Default” means any event of
default described in Article 5 of the EMSA in respect of which the
Assignor is the Defaulting Party.

 

(f)                                    “Grid” has the meaning given in the recitals
to this Assignment Agreement.

 

(g)                                 “Interconnection Point” has the
meaning given in the recitals to this Assignment Agreement.

 

(h)                                 “MEPCO” has the meaning given in the recitals
to this Assignment Agreement.

 

(i)                                     “NBSO” has the meaning given in the recitals
to this Assignment Agreement.

 

(j)                                     “OATT” means the Open Access
Transmission Tariff issued by the NBSO effective May 1, 2005 as the same
may be amended, modified, supplemented, restated or replaced from time to time.

 

(k)                                  “Transmission Rights” means rights
given by the Transmission Service Agreement as described in Schedule “A” hereto
(a true copy of which is annexed hereto as Schedule A-1) as the same may be amended,
supplemented, restated or replaced from time to time and all rights and
benefits related thereto as described in Section 2.01.

 

(l)                                     “Transmission Service Agreement” means
that certain Long-Term Firm Point-to-Point Transmission Service Agreement dated
as of July 21, 2006 by and between the NBSO and the Assignor (a true copy
of which is annexed hereto as Schedule A-1).

 

 

1.02                          EMSA
Definitions. Unless otherwise
defined herein or the context otherwise requires, capitalized terms used in
this Assignment Agreement, including its preamble and recitals, have the
meanings ascribed thereto in the EMSA.

 

1.03                          PPSA
Definitions. Unless otherwise
defined herein or in the EMSA or the context otherwise requires, terms for
which meanings are provided in the Personal Property Security Act (New Brunswick) are used in this Assignment Agreement,
including its preamble and recitals, with such meanings.

 

ARTICLE 2 -  ASSIGNMENT

 

2.01                          Assignment. Upon and subject to the terms, conditions
and provisions herein contained, the Assignor hereby unconditionally and
irrevocably grants a security interest in and assigns, transfers and sets over
to and in favour of the Assignee, as collateral security for its benefit, as
and by way of a fixed and specific assignment and security interest in all of
its right, title, estate and interest in, to, under and in respect of:

 

(a)                                 the Transmission Rights, and all benefits,
powers and advantages of the Assignor to be derived therefrom and all
covenants, obligations and agreements of the parties thereunder and otherwise
to enforce the rights of the Assignor thereunder in the name of the Assignor;

 

(b)                                all instruments, documents, writings, papers,
books, books of account and other records relating to the Transmission Rights;
and

 

(c)                                 all revenues and other moneys now due and
payable or hereafter to become due and payable to the Assignor thereunder or in
connection therewith by the other parties to the Transmission Rights or
receivable by the Assignor pursuant to or in connection with the Transmission
Rights,

 

to
be held by the Assignee for the benefit of the Assignee as general and
continuing security for the performance payment and satisfaction of all
obligations of the Assignor under the EMSA.

 

2.02                          Notice
to NBSO. The Assignor and Assignee
mutually agree to execute and deliver to the NBSO the Notice of Assignment of
Transmission Rights in the form annexed hereto as Schedule “B” promptly after
execution of this Assignment
Agreement by both parties and to execute such further notices, documents or
assurances as may be necessary
or desirable under the OATT.

 

2.03                          Consents. The Assignor agrees that it will, upon the
request of the Assignee, use all commercially reasonable efforts to obtain and
provide any additional consent or acknowledgement required to permit the
Transmission Rights to be assigned hereunder.

 

2.04                          Performance
of Obligations. Until notice is
given to the NBSO following an Event of Default, the Assignor covenants to
observe and enforce the terms,

 

 

covenants, conditions and obligations to be observed
and enforced by the Assignor pursuant to the Transmission Service Agreement
which grants the Transmission Rights.

 

2.05                          No Liability. Nothing herein
contained shall render the Assignee, its respective agents, directors,
officers, employees or any other Persons for whom the Assignee is at law
responsible, liable to any Person for the fulfilment or non-fulfilment of the
obligations, covenants and agreements, including but not limited to the payment
of any moneys thereunder or in respect thereto, of the Assignor under the
Transmission Service Agreement which grants the Transmission Rights.
Notwithstanding the foregoing, the Assignor hereby indemnifies and agrees to
save and hold harmless the Assignee and its respective directors, officers and
employees from and against any and all claims, demands, actions, causes of
action, losses, suits, damages and costs whatsoever of any Person arising
directly or indirectly from or out of the Transmission Service Agreement which
grants the Transmission Rights.

 

2.06                           Notice:
Registration. Upon the occurrence of an Event of Default, the Assignee shall have the
right to advise the NBSO of the Assignee’s exercise of its rights under this
Assignment Agreement or give notice thereof to the NBSO. The Assignee shall
also have the right at any time and without notice to the Assignor to cause
this Assignment Agreement or notice thereof to be registered or filed in any
place or office where the Assignee or its counsel deem advisable or necessary.

 

2.07                          Performance Until
Default and Attorney of the Assignor. The Assignor hereby irrevocably appoints
the Assignee the Assignor’s attorney-in-fact, with effect following the
occurrence of an Event of Default, with full authority in the place and stead
of the Assignor and in the name of the Assignor or otherwise, from time to time
in the Assignee’s discretion, to take any action and to execute any instrument
which the Assignee may reasonably deem necessary or advisable to accomplish the
purposes of this Agreement, including without limitation, (i) to exercise
any of the rights, powers, authority and discretions which, under the terms of
the Transmission Service Agreement which grants the Transmission Rights, could
be exercised by the Assignor with respect thereto, (ii) to ask, demand,
collect, sue for, recover, compromise, receive and give acquittance and
receipts for moneys due and to become due under or in respect of any of the
Transmission Rights, (iii) to receive, endorse, and collect any drafts or
other instruments, documents and chattel paper, in connection with clause (ii),
and (iv) to file any claims or take any action or institute any
proceedings which the Assignee may deem necessary or desirable for the exercise
of the Transmission Rights or otherwise to enforce the rights of the Assignor
with respect to any of the Transmission Rights, all of which is consented to by
the Assignor. The Assignor hereby acknowledges, consents and agrees that the
power of attorney granted pursuant to this Section is irrevocable and
coupled with an interest.

 

2.08                          Dealing with the
Transmission Rights. Until the occurrence of an Event of Default, the
Assignor shall be entitled to deal with the Transmission Rights and

 

 

collect
and receive all monies payable to the Assignor under or in connection with the
Transmission Rights in the ordinary course of its business and to enforce all
of the benefits, advantages and powers thereunder as though this Agreement had
not been made.

 

2.09                          Termination,
Surrender, Alteration, Etc. Without
the prior written consent of the Assignee, which consent shall not be
unreasonably withheld or delayed, the Assignor covenants and agrees that it
shall not nor shall it agree at any time to (a) terminate, forfeit or
cancel the Transmission Rights, (b) amend or modify the Transmission
Rights in any material respect, (c) waive any failure of any party thereto
to perform any material obligation thereunder or (d) suffer or permit
anything allowing any party to terminate the Transmission Rights or any of
them.

 

2.10                          Notice
of Default. The Assignor shall
cause notice to be given to the Assignee of any material default by the
Assignor in any way relating to the Transmission Rights promptly upon becoming
aware of the occurrence of such default, but in all events, if the Assignor is
aware of any default that could give rise to the right of NBSO to terminate
such Transmission Service Agreement, in sufficient time to afford the Assignee
a reasonable opportunity to cure any such default before NBSO has any right to
terminate the Transmission Rights by reason of such default; but nothing herein
shall obligate the Assignee to cure any such default.

 

ARTICLE 3 -  REPRESENTATIONS AND
COVENANTS

 

3.01                          Representations. The Assignor represents and warrants to the
Assignee that:

 

(a)                                 the Assignor has provided the Assignee with a
true and complete copy of the Transmission Service Agreement which grants the
Transmission Rights;

 

(b)                                the Transmission Service Agreement is a valid
and subsisting agreement, in full force and effect and unmodified and there are
no defaults thereunder by the Assignor or any other party thereto;

 

(c)                                 as at the date hereof the Transmission
Service Agreement constitutes the entire agreement between the Assignor and
NBSO in respect of the Transmission Rights;

 

(d)                                it is organized, validly existing and in good
standing under the laws of New Brunswick and has the right, power and authority
to enter into the Transmission Service Agreement and this Assignment Agreement
and to perform its obligations thereunder and hereunder;

 

(e)                                 every notice, authorization, approval, order
and consent necessary for the execution, delivery and performance by it of this
Assignment Agreement and the assignment of Transmission Rights hereunder has
been obtained and is in full force and effect, unamended, at the date hereof;

 

 

(f)                                   each of the Transmission Service Agreement
and this Assignment Agreement has been duly executed and delivered by it and is
a valid and binding obligation of it enforceable against it in accordance with
its terms, subject to applicable bankruptcy, insolvency and other laws of
general application limiting the enforceability of creditors’ rights generally and
to the fact that specific performance, injunction and other equitable remedies
are available only in the discretion of the court; and

 

(g)                                it has not granted to any other Person rights
in respect of the Transmission Rights which are to the same effect as any of
the rights granted herein.

 

3.02                          Further
Assurances. The Assignor hereby
covenants and agrees with the Assignee that it shall from time to time and at
all times hereafter upon written request so to do, make, do, execute and
deliver or cause to be made, done, executed and delivered all such further
acts, deeds, assurances and things as may be reasonably required by the
Assignee for more effectually implementing and carrying out the true intent and
meaning of this Agreement. The Assignor will ensure that the representations
and warranties set forth in Section 3.01 will be true and correct at all
times.

 

3.03                          Opinion. The Assignor agrees to provide to the
Assignee at the time of execution of this Assignment of Agreement a legal
opinion of its counsel, duly authorized to practice in New Brunswick opining as
to the matters set out in section 3.01 (d), (e) and (f).

 

ARTICLE 4 -  DEFAULT

 

4.01                          Rights
of Assignee Upon a Default.
Whenever an Event of Default shall have occurred that has not been waived under
the EMSA, without limiting the rights of the Assignee under or pursuant to this
Assignment Agreement, the EMSA, or otherwise provided by applicable law, the
Assignee shall be entitled and shall have the authority:

 

(a)                                 to renew, amend or otherwise deal with the
Transmission Rights on such terms as it may deem appropriate;

 

(b)                                to perform, at the Assignor’s expense any and
all obligations or covenants of the Assignor and take all benefit of the
Assignor under the Transmission Service Agreement which grants the Transmission
Rights;

 

(c)                                 without limiting the generality of Section 4.01(a) hereof,
to deal with the Transmission Rights to the same extent as the Assignor could
do;

 

(d)                                to take possession of and collect the
revenues and other moneys of all kinds payable to the Assignor in respect of
the Transmission Rights and pay therefrom all reasonable expenses and charges,
the payment of which may be necessary to preserve and protect the Transmission
Rights; and

 

 

(e)                                 to exercise any other or additional rights or
remedies in respect of the Transmission Rights granted to Assignee under any
other provision of this Assignment Agreement or any related agreement, or
exercisable by a secured party under the Personal Property Security Act (New Brunswick) or under any other applicable law.

 

4.02                          Exercise of Powers.
Where any discretionary powers hereunder are vested in the Assignee, the same
may be exercised by an officer or manager.

 

ARTICLE 5 -  GENERAL

 

5.01                          No Release. This Assignment
Agreement shall remain in full force and effect without regard to, and the
obligations of the Assignor shall not be affected or impaired by:

 

(a)                                 any amendment, modification, replacement of
or addition or supplement to the EMSA or the Transmission Service Agreement; or

 

(b)                                any exercise or non-exercise of any right,
remedy, power or privilege in respect of this Assignment Agreement, the
Transmission Service Agreement or the EMSA; or

 

(c)                                 any waiver, consent, extension, indulgence or
other action, inaction or admission under or in respect of this Assignment
Agreement, the Transmission Service Agreement or the EMSA; or

 

(d)                                any default by the Assignor under, or any
invalidity or unenforceability of, or any limitation of the liability of the
Assignor or on the method or terms of payment under, or
any irregularity or other defect in the EMSA or the Transmission Service
Agreement; or

 

(e)                                 any merger, consolidation or amalgamation of
the Assignor into or with any other Person; or

 

(f)                                   any insolvency, bankruptcy, liquidation,
reorganization, arrangement, composition, winding-up, dissolution or similar
proceeding involving or affecting the Assignor.

 

5.02                          No Partnership.
Nothing herein contained shall be deemed or construed by the parties hereto or
by any third party as creating the relationship of partnership or of joint
venture among the Assignor and the Assignee it being understood and agreed that
none of the provisions herein contained or any acts of any of the Assignee or
of the Assignor, shall be deemed to create any relationship between any of the
Assignee and the Assignor other than the relationship of assignee and assignor.

 

5.03                          Time of Essence.
Time shall be of the essence of this Assignment Agreement.

 

 

5.04                          Waiver. No consent or waiver, express or implied, by the Assignee to
or of any breach or default by the Assignor in performance of its obligations
hereunder shall be deemed or construed to be a consent or waiver to or of any
other breach or default in the performance by the Assignor hereunder. Failure
on the part of the Assignee to complain of any act or failure to act of the
Assignor or to declare the Assignor in default, irrespective of how long such
failure continues, shall not, by itself, constitute a waiver by such Assignee
of its rights hereunder.

 

5.05                          Counterparts. This Assignment Agreement may be
executed in any number of separate counterparts, each of which shall be deemed
an original and all of said counterparts taken together shall be deemed to
constitute one and the same instrument.

 

5.06                          Enforcement. Assignor agrees to pay on demand to Assignee all costs and
expenses incurred by Assignee (including the fees and disbursements of counsel)
in connection with Assignee’s enforcement, protection or preservation of any of
its rights or claims under this Assignment Agreement, in the manner prescribed
herein and in the EMSA.

 

ARTICLE 6 -  MISCELLANEOUS PROVISIONS

 

6.01                          Document. This Assignment Agreement is executed pursuant to the EMSA and
shall (unless otherwise expressly indicated herein) be construed, administered
and applied in accordance with the terms and provisions thereof.

 

6.02                          Amendments, etc. No amendment to or waiver of any
provision of this Assignment Agreement nor consent to any departure by the
Assignor herefrom shall in any event be effective unless the same shall be in writing
and signed by the Assignee, and then such waiver or consent shall be effective
only in the specific instance and for the specific purpose for which it is
given.

 

6.03                          Addresses for Notices. Any notice or communication to be
given under this Assignment Agreement to the Assignee or the Assignor shall be
effective if given in accordance with the provisions of the EMSA as to the
giving of notice to each, and the Assignee and the Assignor may change their
respective address for notices in accordance with the said provisions.

 

6.04                          Section Captions. Section captions used in this
Assignment Agreement are for convenience of reference only, and shall not
affect the construction of this Agreement.

 

6.05                          Severability.
Wherever possible, each provision of this Assignment Agreement shall be
interpreted in such manner as to be effective and valid under applicable law,
but if any provision of this Assignment Agreement shall be prohibited by or
invalid under such law, such provision shall be ineffective to the extent of
such prohibition or invalidity, without invalidating the remainder of such
provision or the remaining provisions of this Agreement.

 

 

6.06                          Conflicts. In the
event of any conflict between the provisions hereunder and the provisions of
the EMSA then, notwithstanding anything contained herein, the provisions
contained in the EMSA shall prevail and the provisions of this agreement will
be deemed to be amended to the extent necessary to eliminate such conflict. If
any act or omission of the Assignor is expressly permitted under the EMSA but
is expressly prohibited hereunder, such act or omission shall be permitted. If
any act or omission is expressly prohibited hereunder, but the EMSA does not
expressly permit such act or omission, or if any act is expressly required to
be performed hereunder but the EMSA does not expressly relieve the Assignor
from such performance, such fact shall not constitute a conflict between the
applicable provisions hereunder and the provisions of the EMSA.

 

6.07                          Assignment. Neither party shall assign this Assignment Agreement or any of its
rights or obligations hereunder without the prior written consent of the other
party, which consent shall not be unreasonably withheld or delayed.
Notwithstanding the foregoing, Assignee may, without the consent of Assignor,
assign this Assignment Agreement or any of its rights or interest hereunder in
connection with any financing or other financial arrangements as follows:
Assignee may assign, pledge or mortgage its rights hereunder for security of
any indebtedness and (i) upon giving notice to the Assignor of such
assignment, pledge and mortgage, (A) the assignee, pledgee or mortgagee
shall be entitled to exercise all rights and remedies it may have with respect
to this Assignment Agreement without the further consent of the Assignor, to
receive a copy of any notice given by the Assignor or the Assignee pursuant to
the terms hereof, and to deliver any notice permitted under this Assignment
Agreement on the Assignee’s behalf, and (B) the
Assignor shall be entitled to assume the due authority of the assignee, pledgee
or mortgagee in taking any action or authorizing any notice without the
necessity of independently reviewing the assignment, pledge, mortgage, or other
security instrument delivered by the Assignee to the assignee, pledgee or
mortgagee and to accept performance by the assignee, pledgee or mortgagee of
any duty or obligation of the Assignee, and (ii) upon giving the Assignor
a copy of a trustee’s deed, deed in lieu of foreclosure, or other instrument
pursuant to which the assignee, pledgee, mortgagee, or other party acquires
legal title to this Assignment Agreement, (A) the assignee, pledgee,
mortgagee, or other party shall assume the Assignee’s duties and obligations
hereunder, provided that the liability of any such assignee, pledgee or
mortgagee under this Assignment Agreement following such assumption shall be
limited to its interests under the Assignment Agreement, and (B) Assignor
shall accept the assignee, pledgee, mortgagee, or other party as the successor
to the Assignee under the Assignment Agreement. At the request of the Assignee,
the Assignor agrees to execute and deliver a consent in a form reasonably
acceptable to the party(ies) providing financing to the Assignee.

 

 

6.08                          Governing
Law. This Assignment Agreement
shall be governed by and construed in accordance with the internal laws of the
Province of New Brunswick and the federal laws of Canada applicable therein.

 

IN WITNESS WHEREOF the parties hereto have duly executed this
Assignment Agreement on the date first written above.

 

 

	
   

  	
   

  	
   

  	
  NEW BRUNSWICK POWER

  
	
   

  	
   

  	
   

  	
  GENERATION CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  EVERGREEN WIND POWER, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  

 

 

SCHEDULE A

 

TRANSMISSION RIGHTS

 

Forty-two (42) megawatts of long-term firm point-to-point transmission
service available under the Transmission Service Agreement.

 

 

SCHEDULE A-1

 

TRUE COPY OF TRANSMISSION SERVICE AGREEMENT

 

See
attached.

 

 

SCHEDULE B

 

NOTICE OF ASSIGNMENT OF TRANSMISSION RIGHTS

 

[DATE]

 

New
Brunswick System Operator

77
Canada Street

Fredericton,
New Brunswick E3B 5G4

 

Attention:
Kevin Roherty, Secretary & General Counsel

 

Dear
Mr. Roherry:

 

Re:                              Notice of Assignment of Transmission Service
under that certain Service Agreement dated as of July 21, 2006 by and
between NBSO and NBPGC covering 60 megawatts of long-term firm point-to-point
transmission service from New Brunswick to the Maine Electric Power Company
(“MEPCO”) Interface (the “Service Agreement”)

 

New
Brunswick Power Generation Corporation (“NBPGC”) and Evergreen Wind Power, LLC
(“Assignee”) hereby notify the New Brunswick System Operator (the “NBSO”) of
the assignment of 42 megawatts of transmission service covered by the Service
Agreement from NBPGC to Assignee, as collateral security for obligations
pursuant to an Energy Management Services Agreement dated the         day
of               ,
2006 (the “EMSA”), in accordance with Section 23 of the New Brunswick
System Operator Open Access Transmission Tariff (“OATT”).

 

Upon
delivery to the NBSO of a Notice of Default by Assignee in respect of NBPGC’s
duties or obligations under the EMSA, the Assignee will assume the obligations
including scheduling and payment obligations from NBPGC for this assigned
transmission.

 

This
notice is given pursuant to Section 23.1 of OATT.

 

	
  EXECUTED:

  	
   

  	
  EXECUTED:

  
	
   

  	
   

  	
   

  
	
  NEW BRUNSWICK POWER

  	
   

  	
  EVERGREEN WIND POWER, LLC

  
	
  GENERATION CORPORATION

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  
	
  (Print/Type)

  	
   

  	
  (Print/Type)

  
	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  	
  Date

  	
   

  
	
   

  	
   

  	
   

  
	
  ACCEPTED:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  NEW BRUNSWICK SYSTEM OPERATOR

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00179-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00179-of-00352.parquet"}]]