Document:

Exhibit 10.5(b)

 

EXECUTION
VERSION

 

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

 

AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

 

OF

 

NOBLE ENVIRONMENTAL POWER 2006 HOLD CO, LLC

 

a Delaware Limited Liability Company

 

Dated as of May 13, 2008

 

 

TABLE OF CONTENTS

 

	
   

  	
  Page

  
	
   

  	
   

  
	
  ARTICLE 1.
  DEFINITIONS AND CONSTRUCTION 

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.01

  	
  Definitions

  	
  1

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  1.02

  	
  Construction

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2.
  ORGANIZATION

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.01

  	
  Formation

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.02

  	
  Name

  	
  26

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.03

  	
  Registered Office; Registered
  Agent; Principal Office

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.04

  	
  Purposes

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.05

  	
  Foreign Qualification

  	
  27

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.06

  	
  Term

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.07

  	
  No State-Law Partnership

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  2.08

  	
  Units; Certificates of
  Membership Interest; Applicability of Article 8 of UCC

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3.
  MEMBERSHIP; DISPOSITIONS OF INTERESTS

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.01

  	
  Members

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.02

  	
  Representations, Warranties and
  Covenants

  	
  28

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.03

  	
  Dispositions and Encumbrances of
  Membership Interests

  	
  34

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.04

  	
  Creation of Additional
  Membership Interest

  	
  43

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.05

  	
  Access to Information

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.06

  	
  Confidential Information

  	
  44

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.07

  	
  Liability to Third Parties

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  3.08

  	
  Withdrawal

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4.
  CAPITAL CONTRIBUTIONS

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.01

  	
  Capital Contributions

  	
  46

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.02

  	
  Additional Capital Contributions

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.03

  	
  Loans by Members or Affiliates

  	
  47

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.04

  	
  Return of Contributions

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  4.05

  	
  Capital Accounts

  	
  48

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5.
  DISTRIBUTIONS AND ALLOCATIONS

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.01

  	
  Allocations

  	
  49

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.02

  	
  Distributions

  	
  53

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.03

  	
  Adjustment of Post-Flip
  Allocations and Distributions

  	
  55

  

 

i

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.04

  	
  Intentionally Omitted

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.05

  	
  Intentionally Omitted

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.06

  	
  Calculation of Flip Point

  	
  56

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.07

  	
  Withholding

  	
  64

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.08

  	
  Intentionally Omitted

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.09

  	
  Certain Other Revenues

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  5.10

  	
  Maintenance Reserve

  	
  65

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 6.
  MANAGEMENT

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.01

  	
  Management by Managing Member

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.02

  	
  Delegation to Administrator

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.03

  	
  Affiliate Agreements; Conflicts
  of Interest

  	
  66

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.04

  	
  Consent Required for Certain
  Material Action

  	
  67

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.05

  	
  Limitations of Liability

  	
  71

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.06

  	
  Notice of Related Party; Notice
  of Power Sales Agreement

  	
  72

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.07

  	
  Approved Budgets

  	
  73

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.08

  	
  Removal or Resignation of the
  Managing Member

  	
  75

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.09

  	
  Consent for Certain Actions of
  the Managing Member

  	
  75

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.10

  	
  Environmental Health &
  Safety

  	
  75

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  6.11

  	
  Pending Appeal Proceedings

  	
  76

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 7.
  TAXES

  	
  77

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.01

  	
  Tax Returns

  	
  77

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.02

  	
  Tax Elections

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.03

  	
  Tax Matters Member

  	
  78

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  7.04

  	
  Other Tax Matters

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8.
  BOOKS, RECORDS, REPORTS, BANK ACCOUNTS AND COMPANY PROCEDURES

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.01

  	
  Maintenance of Books

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.02

  	
  Administrative Services; Other
  Services

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  8.03

  	
  Company Procedures

  	
  80

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9.
  SPECIAL EVENTS

  	
  81

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.01

  	
  Special Events

  	
  81

  

 

ii

 

	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.02

  	
  Certain Rights Following Special
  Event

  	
  82

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.03

  	
  Cure of Special Events

  	
  83

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  9.04

  	
  Satisfaction of Obligations for Special Events

  	
  84

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10.
  PURCHASE OPTION, ORGANIC TRANSACTIONS AND IMPASSES, AND BUYOUT EVENTS

  	
  85

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.01

  	
  Purchase Option Event

  	
  85

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.02

  	
  Organic Transaction and Impasses

  	
  86

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  10.03

  	
  Buyout Events

  	
  87

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 11.
  DISPUTE RESOLUTION  

  	
  89

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.01

  	
  Disputes

  	
  89

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.02

  	
  Negotiation to Resolve Disputes

  	
  90

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  11.03

  	
  Flip Point Dispute Resolution

  	
  90

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 12.
  DISSOLUTION, WINDING-UP AND TERMINATION

  	
  91

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.01

  	
  Dissolution

  	
  91

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.02

  	
  Winding-Up and Termination

  	
  91

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.03

  	
  Deficit Capital Accounts

  	
  93

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  12.04

  	
  Certificate of Cancellation

  	
  93

  
	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 13.
  GENERAL PROVISIONS

  	
  94

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.01

  	
  Offset

  	
  94

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.02

  	
  Indemnification

  	
  94

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.03

  	
  Cumulative Remedies; Specific
  Performance

  	
  94

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.04

  	
  Notices

  	
  95

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.05

  	
  Entire Agreement; Superseding
  Effect

  	
  95

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.06

  	
  Press Releases

  	
  96

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.07

  	
  Effect of Waiver or Consent

  	
  96

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.08

  	
  Amendment or Restatement

  	
  96

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.09

  	
  Binding Effect

  	
  96

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.10

  	
  Governing Law; Construction

  	
  96

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.11

  	
  Jurisdiction; Service of Process

  	
  97

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.12

  	
  Third Parties

  	
  97

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.13

  	
  Severability

  	
  97

  

 

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  13.14

  	
  Further Assurances

  	
  97

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  13.15

  	
  Execution in Counterparts

  	
  97

  

 

iv

 

EXHIBITS

 

	
  Schedule 1

  	
  -

  	
  Noble Affiliates

  
	
   

  	
   

  	
   

  
	
  Schedule 2

  	
   

  	
  Disqualified Transferees

  
	
   

  	
   

  	
   

  
	
  Schedule 3

  	
  -

  	
  Affiliate Agreements

  
	
   

  	
   

  	
   

  
	
  Exhibit A

  	
  -

  	
  Form of Certificate of Interest

  
	
   

  	
   

  	
   

  
	
  Exhibit B

  	
  -

  	
  Members & Capital Contributions

  
	
   

  	
   

  	
   

  
	
  Exhibit C

  	
  -

  	
  Principal Project Documents

  
	
   

  	
   

  	
   

  
	
  Exhibit D

  	
  -

  	
  Form of Array Loss Agreement

  
	
   

  	
   

  	
   

  
	
  Exhibit E

  	
  -

  	
  Form of Assignment and Assumption Agreement

  
	
   

  	
   

  	
   

  
	
  Exhibit F

  	
  -

  	
  Form of Tracking Model

  
	
   

  	
   

  	
   

  
	
  Exhibit G

  	
  -

  	
  Form of Notice of Power Sales Agreement

  
	
   

  	
   

  	
   

  
	
  Exhibit H

  	
  -

  	
  Initial Approved Budget

  
	
   

  	
   

  	
   

  
	
  Exhibit I

  	
  -

  	
  Dexia/GE Sideletter

  

 

i

 

EXECUTION VERSION

 

AMENDED AND
RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

OF

NOBLE ENVIRONMENTAL POWER 2006 HOLD CO, LLC

A DELAWARE LIMITED LIABILITY COMPANY

 

THIS AMENDED AND RESTATED
LIMITED LIABILITY COMPANY AGREEMENT (this “Agreement”)
OF NOBLE ENVIRONMENTAL POWER 2006 HOLD CO, LLC (the “Company”), dated as of May 13, 2008 (the “Effective Date”), is adopted, executed and
agreed to, for good and valuable consideration, by the Members.

 

RECITALS

 

1.             Following the formation of
the Company on the Formation Date, Sponsor executed the Limited Liability
Company Operating Agreement of Noble Environmental Power 2006 Hold Co, LLC,
dated as of April 10, 2006, as amended by that certain Amendment to
Limited Liability Company Operating Agreement, dated as of June 22 2007
(as amended, the “Original LLC Agreement”).  Sponsor subsequently contributed its interest
in the Company to the Initial Member pursuant to that certain Membership
Interests Power, dated June 22 2007.

 

2.             The Company, the Initial
Member and the Class A Equity Investors are parties to that certain
Membership Interest Purchase and Equity Capital Contribution Agreement, dated
as of June 22, 2007 (the “Contribution
Agreement”), pursuant to which, upon satisfaction of the conditions
set forth therein the Company has agreed, among other things, to issue and sell
to the Class A Equity Investors, and the Class A Equity Investors
have agreed to acquire Class A Units from the Company, in exchange for
their Equity Capital Contributions as set forth on Annex 1 thereto.  In
addition, the Company, the Initial Member and the Class A Equity Investors
are parties to the PAYG Agreement, pursuant to which the Class A Equity
Investors have agreed to make Capital Contributions to the Company on the terms
set forth therein.

 

3.             The conditions to the Class A
Equity Investors’ obligation to purchase the Class A Units and the
conditions to the Members’ obligations to make their respective Equity Capital
Contributions have been satisfied or waived and, accordingly, the Initial Member
and the Class A Equity Investors wish to adopt this Agreement with respect
to various matters relating to the Company and the Members hereby amend and
restate the Original LLC Agreement in its entirety to read as follows:

 

ARTICLE
1.

DEFINITIONS AND CONSTRUCTION

 

1.01        Definitions.  As used in this Agreement, the following
terms have the respective meanings set forth below or set forth in the Sections
referred to below.  Other terms defined
in this Agreement have the meanings so given them in this Agreement.

 

“Act” means the Delaware Limited Liability Company Act, Del.
Code Ann. tit. 6, §§18-101 et seq., as amended from time to time.

 

 

“Adjusted Capital Account Deficit”  means, with respect to any Member, the deficit balance, if
any, in such Member’s Capital Account as of the end of the relevant Allocation
Year, after giving effect to the following adjustments:

 

(a)           Credit to such Capital Account any amounts that such
Member is obligated to restore pursuant to Section 12.03 or deemed
to be obligated to restore pursuant to the penultimate sentences in Treasury
Regulation Sections 1.704-2(g)(1) and 1.704-2(i)(5), and

 

(b)           Debit to such Capital Account the items described in
Treasury Regulation Sections 1.704-1(b)(2)(ii)(d)(4),
1.704-1(b)(2)(ii)(d)(5), and 1.704-1(b)(2)(ii)(d)(6).

 

This definition of Adjusted
Capital Account Deficit is intended to comply with the provisions of Treasury Regulation Section 1.704-1(b)(2)(ii)(d)
and shall be interpreted consistently therewith.

 

“Administrative Agent” means the Person
acting in the capacity of “administrative agent,” or a similar capacity, under
the Debt Financing Documents.

 

“Administrator”  means
Noble Management Services, LLC, a Delaware limited liability company in its
capacity as administrator under the Management Services Agreements, its
successors and permitted assigns.

 

“Advisors”  has the
meaning set forth in Section 3.06(a).

 

“Affected
Wind Farms” means the Noble Clinton Wind Farm and the Noble
Ellenburg Wind Farm, and each of the foregoing is an “Affected
Wind Farm.”

 

“Affiliate”  means,
with respect to any specified Person, any other Person directly or indirectly
Controlling, Controlled by, or under common Control with such specified
Person.  For the avoidance of doubt, the
Affiliates of the Initial Member include, without limitation, those Persons
listed on Schedule 1, and all such Persons are Affiliates of each other
and are Controlled by Sponsor.

 

“Affiliate Array Loss Agreement” means any agreement or
arrangement entered into by or on behalf of any Project Company or the Company
with respect to any wind-energy facility upwind from any of the Wind Farms
developed, constructed or owned, directly or indirectly, or in whole or in
part, by any Affiliate of Sponsor or the Class B Member, to compensate for
array losses or wind turbulence effects suffered by any Wind Farm, which shall
in each case be in substantially the form attached hereto as Exhibit D.

 

“Agreement”  has
the meaning set forth in the introductory paragraph.

 

“Allocation Year” means (a) the period commencing on the
Effective Date and ending on the immediately succeeding December 31, (b) any
subsequent twelve (12) month period commencing on January 1 and ending on December 31,
or (c) any portion of the period described in preceding clause (a) or
(b) for which the Company is required to allocate Profits, Losses, and
other items of Company income, gain, loss, or deduction pursuant to Section 5.01
or Section 12.02(a).

 

2

 

“Ancillary
Border Parcels” means parcels
of land within a Wind Farm Site on which no improvements, roadways or
transmission equipment comprising any portion of a Wind Farm are located and
that are not required for a Wind Farm to comply with any set-back requirements
or other Applicable Laws.

 

“Appeal Proceeding” means the appeal pending before the
New York State Appellate Division, Third Department, filed on April 3,
2007, appealing the Decision and Order, dated March 8, 2007, issued by the
Clinton County Supreme Court with respect to the matter encaptioned Neighbors
for the Preservation of the North County, Inc. v. Town Board of the Town
of Altona, Clinton County, et. al (Supreme Court, Clinton County, Index No. 2006-001035).

 

“Applicable Laws” means, as to any Person, any treaty, constitution,
law, statute, ordinance, judgment, order, writ, injunction, decree, award,
rule, regulation or other directive which is legally binding and has been
enacted, issued or promulgated by any Governmental Authority, in each case,
applicable to or binding upon such Person or any of its property, or to which
such Person or any of its property is subject.

 

“Approved Budget” has the meaning set forth in Section 6.07.

 

“Approved Investor” means (a) an Institutional Investor
whose long-term senior unsecured indebtedness is rated “A-” or higher by
Standard & Poor’s Rating Services or “A3” or higher by Moody’s
Investors Service, Inc.; (b) an Institutional Investor lacking such
credit rating if, at such Institutional Investor’s option, (i) one of its
Affiliates which has the minimum credit rating set forth above has provided an
irrevocable and unconditional guarantee in favor of the Company of such
Institutional Investor’s pro rata share (based on the Class A Units to be
acquired by it) of the obligations under this Agreement, the Contribution
Agreement and the PAYG Agreement on behalf of such Institutional Investor, or (ii) a
letter of credit, or any other cash-collateralized financial instrument, has
been provided to the Company by an entity with the minimum credit rating set
forth above, (in each of the cases described in clauses (i) and (ii),
in form and substance reasonably acceptable to the Company and, so long as the
Company has any Debt Obligations, the Administrative Agent) on behalf of such
Institutional Investor to secure its obligations described in preceding
clause (i); or (c) an Institutional Investor that has deposited cash
in escrow (on terms and conditions reasonably acceptable to the Company and, so
long as the Company has any Debt Obligations, the Administrative Agent) to
secure its obligations described in clause (i) of preceding
clause (b).

 

“Assignee”  means
any Person that acquires a Membership Interest or any portion thereof through a
Disposition or a Permitted Disposition; provided, an Assignee shall have no
right to be admitted to the Company as a Member except in accordance with Section 3.03(b)(ii).

 

“Bankruptcy” or “Bankrupt”
means, with respect to any Person, that (a) such Person (i) makes
a general assignment for the benefit of creditors; (ii) files a voluntary
bankruptcy petition; (iii) becomes the subject of an order for relief or
is declared insolvent in any federal or state bankruptcy or insolvency
proceedings; (iv) files a petition or answer seeking for such Person a
reorganization, arrangement, composition, readjustment, liquidation,
dissolution, or similar relief under any Applicable Law; (v) files an
answer or other pleading admitting or 

 

3

 

failing
to contest the material allegations of a petition filed against such Person in
a proceeding of the type described in preceding clauses (i)–(iv); or (vi) seeks,
consents to, or acquiesces in the appointment of a trustee, receiver, or
liquidator of such Person or of all or substantially all of such Person’s
properties; or (b) a proceeding seeking reorganization, arrangement,
composition, readjustment, liquidation, dissolution, or similar relief under
any Applicable Law has been commenced against such Person, and ninety (90) Days
have expired without dismissal thereof or with respect to which, without such
Person’s consent or acquiescence, a trustee, receiver, or liquidator of such
Person or of all or substantially all of such Person’s properties has been
appointed and ninety (90) Days have expired without the appointment’s having
been vacated or stayed, or ninety (90) Days have expired after the date of
expiration of a stay, if the appointment has not previously been vacated.

 

“Base Case Model”  means
the financial projections with respect to the Wind Farms attached as Annex 6 to
the Contribution Agreement, as may be revised as required pursuant to the
Contribution Agreement.

 

“Bona Fide
Offer” means a good faith, written offer to purchase all, but not less than
all, of the Units in the Company for cash or other immediately available funds,
provided such offer is on commercially reasonable terms and conditions.

 

“Bona Fide Purchaser” means any Person (other than an Affiliate
of any Member) who has delivered a Bona Fide Offer and has the requisite financial
resources necessary to purchase and acquire all of the Units in the Company
pursuant to a  Bona Fide Offer.

 

“Business Day” means any day (a) other than a Saturday,
Sunday or other day on which banks are authorized to be closed in Paris, France
or New York, New York and (b) which is also a day on which dealings in
U.S. Dollar deposits are carried out in the London interbank market.

 

“Buyout Event”  has
the meaning set forth in Section 10.03(a).

 

“Buyout Member”  has
the meaning set forth in Section 10.03(a).

 

“Capital Account”  means
the account to be maintained by the Company for each Member in accordance with Section 4.05.

 

“Capital Contribution”  means,
with respect to any Member, the amount of money and the initial Gross Asset
Value of any Property (other than money) contributed to the Company with
respect to such Member’s Membership Interest, including any capital
contributions made by such Member pursuant to Sections 4.01 and 4.02
or by any Class A Member pursuant to the PAYG Agreement.  Any reference to the Capital Contribution of
a Member shall include the Capital Contribution of its predecessors in
interest.

 

“Cash Difference”  has
the meaning set forth in Section 5.06(b)(vi)(A).

 

“Cash Equivalents”  means
any of the following having a maturity of not greater than one year from the
date of issuance thereof: (a) readily marketable direct obligations of the
government of the United States of America or any agency or instrumentality
thereof or obligations unconditionally guaranteed by the full faith and credit
of the government of the 

 

4

 

United
States of America, (b) insured certificates of deposit of, or time
deposits with, any commercial bank that is a member of the Federal Reserve
System, which issues (or the parent of which issues) commercial paper rated as
described in clause (c), which is organized under the laws of the United
States or any State thereof and which has combined capital and surplus of at
least $1,000,000,000.00 or (c) commercial paper issued by any corporation
organized under the laws of any State of the United States and rated at least “Prime-1”
(or the then equivalent grade) by Moody’s Investor Service, Inc. (or any
successor thereto) or “A-1” (or the then equivalent grade) by Standard &
Poor’s Rating Group, a division of Standard & Poor’s Corporation (or
any successor thereto).

 

“Cash Flows”  has
the meaning set forth in Section 5.06(b)(iii).

 

“Cash Trigger Amount”  has
the meaning set forth in Section 5.06(b)(v)(A).

 

“Cause”  means the
commission by the Tax Matters Member, acting in its capacity as Tax Matters
Member, of fraud, willful misconduct or gross negligence or the breach of its
respective material obligations under this Agreement, the Principal Project
Documents or Applicable Laws.

 

“Certified Public Accountants”
means a firm of independent public accountants selected from time to
time by the Managing Member and approved by the Required Voting
Percentage.  The initial Certified Public
Accountants are Deloitte.

 

“Change of Member Control”  means
with respect to any Member, an event (such as a Disposition of voting
securities) that causes such Member to cease to be Controlled by such Member’s
Parent within the meaning of subsection (a) of the definition of “Control”;
provided, an event that causes such Member’s Parent to be Controlled by another
Person shall not constitute a Change of Member Control of such Member.

 

“Chateaugay/Bellmont  Array
Loss Agreement” means the Array Loss Agreement, dated as of June 22,
2007, by and among Noble Clinton, Noble Ellenburg, Noble Chateaugay and Noble
Bellmont.

 

“Class A Equity Investors”  means EFS Noble Holdings, and any successor or permitted
assignee thereof under the Contribution Agreement.

 

“Class A Members”  means
Members that hold Class A Units; provided, if a Member holds both Class A
Units and Class B Units, such Member is a Class A Member only to the
extent of the Class A Units held by such Member.  Initially, the Class A Members means the
Class A Equity Investors.

 

“Class A Membership Interest”  means with respect to any Class A Member, (a) that Class A
Member’s status as a Class A Member; (b) that Class A Member’s
share of the income, gain, loss, deduction and credits of, and the right to
receive distributions from, the Company with respect to Class A Units; (c) all
other rights, benefits and privileges enjoyed by that Class A Member
(under the Act, this Agreement, or otherwise) in its capacity as a Class A
Member, including that Class A Member’s rights to vote, consent and
approve and otherwise to participate in the management of the Company, to the
extent provided in this Agreement; and (d) all obligations, duties and
liabilities imposed on that Class A Member (under the Act, this 

 

5

 

Agreement
or otherwise) in its capacity as a Class A Member, including any
obligations to make Capital Contributions.

 

“Class A Units”  means
Units representing Class A Membership Interests in the Company having the
rights, preferences and designations provided for Class A Units herein.

 

“Class A
Yield” means the after tax yield of the Class A Members on
their investment directly or indirectly in the Company as set forth in the Base
Case Model and calculated in accordance with the applicable provisions of this
Agreement for a period of time from the Initial Equity Capital Contribution
Date until the end of the period covered by the Base Case Model.

 

“Class B Member”  means
a Member that holds Class B Units; provided, if a Member holds both Class A
Units and Class B Units, such Member is a Class B Member only to the
extent of the Class B Units held by such Member.  Initially, “Class B Member” means the
Initial Member.

 

“Class B Membership Interest”  means with respect to any Class B Member, (a) that Class B
Member’s status as a Class B Member; (b) that Class B Member’s
share of the income, gain, loss, deduction and credits of, and the right to
receive distributions from, the Company with respect to Class B Units; (c) all
other rights, benefits and privileges enjoyed by that Class B Member
(under the Act, this Agreement, or otherwise) in its capacity as a Class B
Member, including that Class B Member’s rights to vote, consent and
approve and otherwise to participate in the management of the Company, to the
extent provided in this Agreement; and (d) all obligations, duties and
liabilities imposed on that Class B Member (under the Act, this Agreement
or otherwise) in its capacity as a Class B Member, including any
obligations to make Capital Contributions.

 

“Class B Units”  means
Units representing Class B Membership Interests in the Company having the
rights, preferences and designations provided for Class B Units herein.

 

“Code”  means the
Internal Revenue Code of 1986, as amended, modified, or supplemented from time
to time (or any corresponding provision of succeeding law).

 

“Common Facilities Agreements” means (a) the Agreement Among
Co-Tenants, dated as of June 22, 2007, by and among Noble Clinton, Noble
Ellenburg and Noble
Management Services, LLC, and (b) the Co-Tenancy Agreement, dated as of May 13,
2008, by and among Noble Clinton, Noble Ellenburg,  Noble Management Services, LLC and Noble Wind Operations, LLC; and each of the agreements described in
clauses (a)–(b) is a “Common Facilities Agreement.”

 

“Company”  means
Noble Environmental Power 2006 Hold Co, LLC, a Delaware limited liability
company.

 

“Company Minimum Gain”  has
the same meaning as the term “partnership minimum gain” in Treasury Regulation
Sections 1.704-2(b)(2) and 1.704-2(d).

 

“Consistent Return” has the meaning set forth in Section 7.01.

 

6

 

“Consumer
Price Index” shall mean the Consumer Price Index for all Urban
Consumers, Northeast Region, as published by the United States Department of
Labor, Bureau of Labor Statistics, such successor index as may be published by
the United States Government, or such substitute index as may be mutually
agreed to by the Administrative Agent and the Company.

 

“Contribution Agreement” has the meaning set forth in second
recital.

 

“Control,”  “Controlled by”  or “under common Control
with”  means, except as
otherwise provided herein,  the
possession, directly or indirectly, of either of the following:

 

(a)           (i) in the case
of a corporation, more than 50% of the outstanding voting securities thereof; (ii) in
the case of a limited liability company, partnership, limited partnership or
joint venture, the right to more than 50% of the distributions (including
liquidating distributions) therefrom; (iii) in the case of a trust or
estate, including a business trust, more than 50% of the beneficial interest
therein; and (iv) in the case of any other entity, more than 50% of the
economic or beneficial interest therein; or

 

(b)           in the case of any
entity, the power to direct or cause the direction of management and policies
of such entity, whether through ownership of securities, partnership or other
ownership interests, by contract or otherwise.

 

“Corps Permit
Proceeding” has the meaning set forth in Section 6.11.

 

“Curative Flip Allocation”  means
the adjustment(s) described in Section 5.06(b)(vii).

 

“Cure” and “Cured”
have the meanings set forth in Section 9.03(a).

 

“Day”  means a
calendar day; provided, if any period of Days referred to in this Agreement
shall end on a Day that is not a Business Day, then the expiration of such
period shall be automatically extended until the end of the first succeeding
Business Day.

 

“Debt Financing Documents” means the Financing Agreement, dated
as of June 22, 2007, as amended, among the Company, Dexia Crédit Local,
New York Branch, HSH Nordbank AG, New York Branch, and the other lenders parties
thereto, together with all related intercreditor, security and collateral
documents.

 

“Debt Obligations” means “Obligations” as defined in the Debt
Financing Documents.

 

“Delaware Certificate” has the meaning set forth in Section 2.01.

 

“Depositary
Agreement” means the Depositary Agreement dated as of June 22,
2007, by and among the Company, Dexia Crédit Local, New York Branch and The
Bank of New York, a New York banking corporation.

 

“Depreciation” means for each Allocation Year, an amount equal
to the depreciation, amortization, or other cost recovery deduction allowable
with respect to an asset for such Allocation Year, except that if the Gross
Asset Value of an asset differs from its adjusted basis 

 

7

 

for
federal income tax purposes at the beginning of such Allocation Year,
Depreciation shall be an amount that bears the same ratio to such beginning
Gross Asset Value as the federal income tax depreciation, amortization, or
other cost recovery deduction for such Allocation Year bears to such beginning
adjusted tax basis, provided, if the adjusted basis for federal income tax
purposes of an asset at the beginning of such Allocation Year is zero,
Depreciation shall be determined with reference to such beginning Gross Asset
Value using any reasonable method selected by the Managing Member.

 

“Dexia/GE
Sideletter” means the Letter Agreement, dated as of May 13,
2008, by and among EFS Noble Holdings, the Initial Member and Dexia Crédit
Local, New York Branch, and attached hereto as Exhibit I.

 

“Dispose”,  “Disposing”
or  “Disposition”  means with respect to any asset (including any Unit or
Membership Interest or any portion thereof), any sale, assignment, transfer,
conveyance, gift, exchange or other disposition of such asset, whether such
disposition be voluntary, involuntary or by operation of Applicable Law,
including the following:  (a) in the
case of an asset owned by a natural person, a transfer of such asset upon the
death of its owner, whether by will, intestate succession or otherwise; and (b) in
the case of an asset owned by an entity, (i) a merger or consolidation of
such entity (other than where such entity is the survivor thereof), (ii) a
conversion of such entity into another type of entity to the extent that such
conversion would be treated as a sale or exchange of such asset for federal
income tax purposes, or (iii) a distribution of such asset, including in
connection with the dissolution, liquidation, winding-up or termination of such
entity (unless, in the case of dissolution, such entity’s business is continued
without the commencement of liquidation or winding-up).

 

“Dispute”  has the
meaning set forth in Section 11.01.

 

“Disputing Member” has the meaning set forth in Section 11.01.

 

“Disqualified Transferee” means, in connection with any
proposed Disposition, any Person, which is, or whose Affiliate is, then (a) a
party adverse in any pending or threatened action, suit or proceeding to the
Company, any Project Company, any Member or an Affiliate of any Member if such
Affiliate is an Active Person or a Passive Investor (as defined herein), unless
the Company, by the vote of the Required Voting Percentage, or such Member
shall have consented (in its sole and absolute discretion) to the Disposition
to such Person (provided that for purposes of this clause (a) an
Affiliate of the Class A Member means General Electric Capital Corporation
or any Person Controlled by General Electric Capital Corporation for so long as
General Electric Capital Corporation is the Parent of the Class A Member),
(b) a Related Party, (c) a Person listed on Schedule 2,
or (d) with respect to any Disposition of a Class A Membership
Interest, directly or indirectly engaged in managing, constructing, operating,
maintaining or developing facilities for the production of electricity
utilizing wind for sale to others (an “Active
Person”), except for an Affiliate of an Active Person where such
Affiliate of an Active Person is an entity regularly involved in making passive
investments in such facilities (a “Passive
Investor”) if such Passive Investor certifies in a manner reasonably
acceptable to the Class B Member(s) that it has in place procedures
to prevent its Affiliates which are Active Persons from acquiring confidential
information relating to such passive investments; provided, for the avoidance
of doubt, a Person will not be deemed to be an Active Person solely by virtue 

 

8

 

of
owning an interest in a facility similar to the ownership interest of the Class A
Members in the Company; provided further that if a Person listed on Schedule
2 is an Active Person at the time of a proposed Disposition, none of the
Affiliates of such Person shall be deemed to be Passive Person.

 

“Dissolution Event” has the meaning set forth in Section 12.01.

 

“Distributable Cash”  means
as of any date, all cash, cash equivalents and liquid investments held by the
Company as of such date which are distributable in accordance with the Company’s
senior debt financing documents (including the Debt Financing Documents as long
as such are in effect) less (a) all reasonable reserves that (i) were
expressly included in the Approved Budget, (ii) are necessary to prevent
or mitigate an emergency situation, (iii) are established with the prior
written consent of the Required Voting Percentage, (iv) are necessary to
allow the Company to meet expenses that are expected with reasonable certainty
to become due, and which are not included in the Approved Budget or (v) are
not otherwise described in preceding clauses (i)–(iv) and do not
exceed at any time $500,000 per Project Company, for an aggregate total of
$1,500,000 and (b) any Liquidation Proceeds.

 

“Distribution
Date” means in respect of any month, the last Business Day of the following
calendar month.

 

“Drag-Along Notice” has the meaning set forth in Section 3.03(e)(i).

 

“Effective Date”  has
the meaning set forth in the introductory paragraph.

 

“EFS Noble
Holdings” means EFS Noble Holdings, LLC, a Delaware limited
liability company.

 

“Encumber”, “Encumbering”, or “Encumbrance”  means the creation, or the existence, of a
lien (statutory or otherwise), mortgage, deed of trust, claim, option, lease,
easement, charge, pledge, security interest, hypothecation, assignment, use
restriction or other encumbrance of any kind or nature whatsoever, whether
voluntary or involuntary, choate or inchoate (including any agreement to give
any of the foregoing), and any conditional sale or other title retention
agreement.

 

“EPC Contractor” means Noble Constructors,
LLC, a Delaware limited liability company, its successors and permitted
assigns.

 

“EPC Contracts” means (a) the Engineering, Procurement and
Construction Agreement, dated as of June 22, 2007, by and between Noble
Bliss and the EPC Contractor, (b) the Engineering, Procurement and
Construction Agreement, dated as of June 22, 2007, by and between Noble
Clinton and the EPC Contractor, (c) the Engineering, Procurement and
Construction Agreement, dated as of June 22, 2007, by and between Noble Ellenburg
and the EPC Contractor, (d) the Common Facilities
Engineering, Procurement and Construction Agreement,
dated as of June 22, 2007, by and between Noble Clinton, Noble
Ellenberg and the EPC Contractor, and (e) the System Upgrade Facilities
Engineering, Procurement and Construction Agreement,
dated as of June 22, 2007, by and between Noble Clinton, Noble 

 

9

 

Ellenberg, Noble Altona Windpark, LLC, a Delaware
limited liability company, and the EPC Contractor;
and each of the agreements described in clauses (a)–(e) is an
“EPC Contract.”

 

“Equity Capital Contribution”
has the meaning set forth in the Contribution Agreement.

 

“Equity Capital Contribution Date”  has the meaning set forth in the Contribution Agreement.

 

“ERISA”  has the
meaning set forth in Section 3.02(a)(vi).

 

“Escrow”
has the meaning set forth in Section 9.03(c).

 

“Escrow Agent”  has the meaning set forth in
Section 9.03(c).

 

“Escrowed Funds”  has the meaning set forth in
Section 9.03(c)(i).

 

“Estoppels Event”  has the meaning set forth in
Section 3.02(d)(i).

 

“Fair Market Value” means the price at which property would
change hands between a willing buyer and a willing seller, neither being under
any compulsion to buy or sell, and both having reasonable knowledge of the
relevant facts; provided, Fair Market Value shall not take into account any
discount for lack of marketability or minority interest.  The determination of Fair Market Value shall
be determined in accordance with Section 3.03(e)(iii), Section 10.01(b),
Section 10.02(c), or Section 10.03(c), as applicable.

 

“FERC” means the Federal Energy Regulatory Commission, and any
successor thereto.

 

“Fiscal Year”  means
the annual accounting period of the Company ending December 31 of each
calendar year.

 

“Fixed Tax Assumptions”  has
the meaning set forth in Section 5.06(b)(iv)(A).

 

“Flip Point”  means
the earlier of:

 

(a)           the later of (i) the
tenth anniversary of the date that the Class A Member made its Capital
Contribution pursuant to Section 2.01 of the Contribution Agreement and (ii) the
point as of which the Class A Units are determined under the procedures
set forth in Section 5.06 (“Calculation
of Flip Point”) to first have realized the Flip Rate; and

 

(b)           the point as of which the Class A
Units are determined under the procedures set forth in Section 5.06
to first have realized the Flip Rate and the obligations under the Debt
Financing Agreement has been fully satisfied and/or the PAYG Agreement has been
terminated.

 

“Flip Rate”  means
an Internal Rate of Return of *** % per annum from the Initial Equity Capital
Contribution Date; provided, under the Contribution Agreement, such percentage
shall 

 

10

 

be
increased or decreased on the date which is two (2) Business Days prior to
the Initial Equity Capital Contribution Date (the “Flip Rate Determination Date”) by *** basis point for each
basis point increase or decrease, respectively, in the 10-year U.S. Dollar
fixed interest rate swap (vs. 90-day LIBOR) as determined by the Bloomberg
Screen IRSB18 (“Ask Rate”) closing value (currency identifier “USSW10”), or any
replacement successor screen (the “Yield Rate”),
in effect at 11:00am New York time on the Flip Rate Determination Date, as
compared to such Yield Rate in effect at the closing of business on April 10,
2006, which was 5.50%.

 

“FPA” means the Federal Power Act, as amended, 16 U.S.C. §§
791a et seq.

 

“Forbearance
Agreement” means the Forbearance Agreement, dated as of June 22,
2007, by and among the Company, the Class A Members and the Administrative
Agent.

 

“Formation Date”  has
the meaning set forth in Section 2.01.

 

“GAAP”  means U.S.
generally accepted accounting principles in effect on the date on which they
are to be applied pursuant to this Agreement, applied consistently throughout
the relevant periods.

 

“Governmental Approval”  means
all filings, certifications, determinations, permits, licenses, registrations,
approvals, authorizations or waivers of any Governmental Authority.

 

“Governmental Authority”  means
any national, state or local government (whether domestic or foreign), any
political subdivision thereof or any other governmental, quasi-governmental,
judicial, public or statutory instrumentality, authority, body, agency, bureau
or entity (including any zoning authority, FERC, the New York Public Service
Commission, the Department of Treasury, IRS, the Securities and Exchange
Commission, the FDIC, the Comptroller of the Currency or the Federal Reserve
Board, any central bank or any comparable authority).

 

“Gross Asset Value” means with respect to any asset (other than
money), the asset’s adjusted basis for federal income tax purposes, except as
follows:

 

(a)           The initial Gross Asset
Value of any asset contributed by a Member to the Company shall be the gross
fair market value of such asset, as agreed to by the Required Voting
Percentage; provided, the initial Gross Asset Values of the assets contributed
to the Company pursuant to Section 4.01 shall be as set forth on Exhibit B;

 

(b)           The Gross Asset Values of
all Company assets shall be adjusted to equal their respective gross fair
market values (taking Code Section 7701(g) into account), as agreed
to by the Required Voting Percentage, as of the following times:  (i) the acquisition of an additional
interest in the Company by any new or existing Member in exchange for more than
a de minimis Capital Contribution; (ii) the
distribution by the Company to a Member of more than a de minimis
amount of Company property as consideration for an interest in the Company; (iii) the
grant of an interest in the Company (other than a de minimis
interest) as consideration for the provision of services to or for the benefit
of the Company by an existing Member acting in a member capacity or by a new
Member acting in a member capacity or in anticipation of becoming a Member; and

 

11

 

(iv) the liquidation of the Company
within the meaning of Treasury Regulation Section 1.704-1(b)(2)(ii)(g);
provided, any adjustment described in preceding clauses (i), (ii) and
(iii) shall be made only if the Required Voting Percentage reasonably
determine that such adjustment is necessary or appropriate to reflect the
relative interests of the Members in the Company;

 

(c)           The Gross Asset Value of any
item of Company assets distributed to any Member shall be adjusted to equal the
gross fair market value (taking Code Section 7701(g) into account) of
such asset on the date of distribution, as agreed to by the Required Voting
Percentage; and

 

(d)           The Gross Asset Values of
Company assets shall be increased (or decreased) to reflect any adjustments to
the adjusted basis of such assets pursuant to Code Section 734(b) or Section 743(b),
but only to the extent that such adjustments are taken into account in
determining Capital Accounts pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(m)
and subsection (f) of the definition of Profits and Losses or Section 5.01(b)(vii);
provided, Gross Asset Values shall not be adjusted pursuant to this subsection (d) to
the extent that an adjustment pursuant to subsection (b) of this
definition in connection with a transaction that would otherwise result in an
adjustment pursuant to this subsection (d).

 

If the
Gross Asset Value of an asset has been determined or adjusted pursuant to
subsection (a), (b), or (d) of this definition, such Gross Asset
Value shall thereafter be adjusted by the Depreciation taken into account with
respect to such asset, for purposes of computing Profits and Losses.

 

“Hedge Facility Agreement” means the ISDA Master Agreement
(including related annexes, schedules and exhibits thereto), dated as of June 20,
2007, as amended, between the Hedge Facility Provider and the Company.

 

“Hedge Facility Documents” means the Hedge Facility Agreement
and the Hedge Security Documents, collectively.

 

“Hedge Facility Provider” means Credit Suisse Energy, LLC, a
Delaware limited liability company.

 

“Hedge Security Documents”  means
the documents which grant a security interest in any Project Company assets or
otherwise in favor of the Hedge Facility Provider or its collateral agent, any
letter of credit or guaranty issued pursuant to the Hedge Facility Agreement,
and any other document representing any alternative “security” as may be in
effect from time to time pursuant to the terms of the ISDA Credit Support Annex
of the Hedge Facility Agreement.

 

“Immaterial Variance” has the meaning set forth in Section 6.07.

 

“Impasse” has the meaning set forth in Section 10.02(a).

 

“Indemnitees” has the meaning set forth in Section 13.02(a).

 

12

 

“Independent Engineer”  means
Garrad Hassan America, Inc. or such other Person as shall be approved by
the Required Voting Percentage.

 

“Independent Expert” has the meaning set forth in Section 11.03.

 

“Initial
Equity Capital Contribution Date”  has the meaning set forth in the
Contribution Agreement.

 

“Initial Member”  means
Noble Environmental 2006 Hold Co. Prime, LLC, a Delaware limited liability
company.

 

“Institutional Investor” means an investor other than an
individual.

 

“Intent Notice”  has
the meaning set forth in Section 10.01(b)(i).

 

“Interconnection Agreements” means (a) the Interconnection
Agreement, dated as of March 19,
2008, by and among Noble Bliss,
NYISO and the Village of Arcade, New York, (b) the Interconnection
Agreement, dated as of April 2, 2008, by and among Noble Clinton, NYISO
and the New York Power Authority, and (c) the Interconnection Agreement, dated as of March 5, 2008, by and among Noble Ellenburg, NYISO
and the New York Power Authority; and each of the agreements described in
clauses (a)–(c) is an “Interconnection
Agreement.”

 

“Interested
Member” has the meaning set forth in Section 6.03(c).

 

“Internal Rate of Return”  means
the annual effective discount rate (calculated on a daily basis and compounded
daily) on the Effective Date which results in the sum of the net present values
of the Cash Flows with respect to a Class A Unit discounted to the
Effective Date to equal zero.

 

“Involuntary Bankruptcy” means, with respect to any Person,
without such Person’s application, approval, consent or acquiescence, a
proceeding seeking reorganization, arrangement, composition, readjustment,
liquidation, dissolution, or similar relief under any Applicable Law has been
commenced against such Person, such proceeding is being diligently contested by
such Person, and ninety (90) Days have expired without dismissal thereof or
with respect to which, a trustee, receiver, or liquidator of such Person or of
all or substantially all of such Person’s properties has been appointed and
ninety (90) Days have expired without the appointment’s having been vacated or
stayed, or ninety (90) Days have expired after the date of expiration of a
stay, if the appointment has not previously been vacated.

 

“IRS” means the U.S. Internal Revenue Service or any successor
agency.

 

“Knowledge”  has
the meaning set forth in the Contribution Agreement.

 

“Liabilities” has the meaning set forth in Section 13.02(a).

 

“Liquidation Date” means the date of the distribution of
Liquidation Proceeds pursuant to Section 12.02(a)(vi).

 

13

 

“Liquidation Proceeds” means all cash, cash equivalents, liquid
investments or other proceeds derived from or attributable to the disposition
of Property pursuant to Section 12.02(a)(iii).

 

“Losses” has the meaning set forth in the definition of Profits
and Losses.

 

“Maintenance Reserve” has the meaning set forth in Section 5.10.

 

“Majority of Class A Members” means Class A Members collectively
holding at least 50.1% of the then outstanding Class A Units.

 

“Majority of all Members”  means
both (a) a Majority of Class A Members and (b) Members
collectively holding at least 50.1% of all then outstanding Class B Units.

 

“Management Services Agreements” means (a) the Management Services Agreement, dated as of June 22, 2007, by and between Noble Bliss and the Administrator, (b) the
Management Services Agreement, dated as of June 22, 2007, by and between Noble Clinton and the Administrator and
(c) the Management Services Agreement, dated as of June 22, 2007, by and between Noble Ellenburg and the
Administrator; and each of the agreements described in clauses (a)–(c) is
a “Management Services Agreement.”

 

“Managing Member”  means
Noble Environmental Power 2006 Hold Co. Prime, LLC  (on and as of the Effective Date) or any subsequent
replacement or successor managing member of the Company in accordance with the
terms of this Agreement.

 

“Material Action” has the meaning set forth in Section 6.04.

 

“Material Adverse Effect”  means
a material adverse effect on (a) the overall status of the Wind Farms,
taken as a whole, (b) the PTCs attributable to any Wind Farm, if such
effect has a material adverse effect on the Company and the Project Companies
taken as a whole, (c) the assets, liabilities, results of operations, or
business or financial condition of the Company and the Project Companies, taken
as a whole, or (d) the ability of the Company or any Project Company to
perform its obligations under any Principal Project Document or Debt Financing
Document, if such effect has a material adverse effect on the Company and the
Project Companies taken as a whole.  For
the avoidance of doubt, for purposes of preceding clause (c) and
without limiting such clause, any declared event of default under any Debt
Financing Document resulting in the acceleration of the obligations thereunder
(taking into account any waivers thereof) or a payment default (taking into
account any waivers thereof) that is not cured within forty-five (45) Days
thereof shall be deemed to have a material adverse effect on the financial
condition of the Company and the Project Companies, taken as a whole.

 

“Member”  means any
Person executing this Agreement as of the date of this Agreement as a member or
hereafter admitted to the Company as a member as provided in this Agreement,
but such term does not include any Person who has ceased to be a member in the
Company.  Exhibit B hereto
sets forth certain particulars concerning the Members as of the Effective
Date.  The Managing Member shall amend,
or cause to be amended, Exhibit B from time to time to reflect
changes in the information set forth thereon, including the admission or
withdrawal of Members.

 

14

 

“Member Nonrecourse Debt”  has
the same meaning as the term “partner nonrecourse debt” in Treasury Regulation Section 1.704-2(b)(4).

 

“Member Nonrecourse Debt Minimum Gain” means an amount, with
respect to each Member Nonrecourse Debt, equal to the Company Minimum Gain that
would result if such Member Nonrecourse Debt were treated as a Nonrecourse
Liability, determined in accordance with Treasury Regulation Section 1.704-2(i)(3).

 

“Member Nonrecourse Deductions” has the same meaning as the
term “partner nonrecourse deductions” in Treasury Regulation
Sections 1.704-2(i)(1) and 1.704-2(i)(2).

 

“Membership Interest”  means
a Class A Membership Interest or a Class B Membership Interest. A
Member may hold both Class A Membership Interests and Class B
Membership Interests.

 

“Minority of Class A Members”  means Members collectively holding at least 20% of the then
outstanding Class A Units.

 

“Multi-Party
Sideletter” means the Letter Agreement, dated as of June 22, 2007, by and among the
Company, the Initial Member, EFS Noble Holdings and the other Class A
Members parties thereto.

 

“MW”  means
megawatt.

 

“NEP
Disposition” has the meaning set forth in Section 3.03(d)(ii).

 

“NEP
Disposition Notice” has the meaning set forth in Section 3.03(d)(ii).

 

“Noble Bellmont” means Noble Bellmont Windpark, LLC, a Delaware
limited liability company.

 

“Noble Bellmont Wind Farm” means the proposed wind-power
electric energy generation project under development by Noble Bellmont in the
vicinity of the Noble Ellenburg Wind Farm, as more specifically described in
the Chateaugay/Bellmont Array Loss Agreement.

 

“Noble Bliss” means Noble Bliss Windpark, LLC, a Delaware
limited liability company.

 

“Noble Bliss Wind Farm” means the wind-power electric energy
generation facility owned by Noble Bliss and located in the City of Bliss,
Wyoming County, New York and having up to sixty-seven (67) Wind Turbines with a
total nominal capacity of up to one hundred and one-half (100.5) MW, and all
related interconnection facilities and all other rights and assets necessary
for the ownership and operation thereof and sale of power therefrom.

 

“Noble Chateaugay” means Noble Chateaugay Windpark, LLC, a
Delaware limited liability company.

 

15

 

“Noble Chateaugay  Wind Farm”
means the proposed wind-power electric energy generation project under
development by Noble Chateaugay in the vicinity of the Noble Clinton Wind Farm,
as more specifically described in the Chateaugay/Bellmont Array Loss Agreement.

 

“Noble Clinton” means Noble Clinton Windpark I, LLC, a Delaware
limited liability company.

 

“Noble Clinton Wind Farm” means the wind-power electric energy
generation facility owned by Noble Clinton and located in the City of Clinton,
Clinton County, New York and having up to sixty-seven (67) Wind Turbines with a
total nominal capacity of up to one hundred and one-half (100.5) MW, and all
related interconnection facilities and all other rights and assets necessary
for the ownership and operation thereof and sale of power therefrom.

 

“Noble Ellenburg” means Noble Ellenburg Windpark, LLC, a
Delaware limited liability company.

 

“Noble Ellenburg Wind Farm” means the wind-power electric
energy generation facility owned by Noble Ellenburg and located in the City of
Ellenburg, Clinton County, New York and having up to fifty-four (54) Wind
Turbines with a total nominal capacity of up to eighty-one (81) MW, and all
related interconnection facilities and all other rights and assets necessary
for the ownership and operation thereof and sale of power therefrom.

 

“Non-Consenting Member”  means
a Class A Member voting against or failing to vote for a matter described
in Section 10.01(c) or (d).

 

“Nonrecourse Deduction”  has
the meaning set forth in Treasury Regulation Sections 1.704-2(b)(1) and
1.704-2(c).

 

“Nonrecourse Liability”  has
the meaning set forth in Treasury Regulation Section 1.704-2(b)(3).

 

“NYISO”  means the
New York Independent System Operator, Inc., a New York not-for-profit
corporation, and any successor thereto.

 

“NYSEG”
means New York State Electric & Gas Corporation.

 

“NYSERDA”
means the New York State Energy Research and Development Authority.

 

“O&M Agreements” means (a) the Operations and
Maintenance Agreement for the Noble Bliss Wind Farm, dated as of June 22, 2007, by and between Noble Bliss
and the Operator, (b) the Operations and Maintenance Agreement for the
Noble Clinton Wind Farm, dated as of June 22,
2007, by and between Noble Clinton and the Operator, and (c) the
Operations and Maintenance Agreement for the Noble Ellenburg Wind Farm, dated
as of June 22, 2007, by and
between Noble Ellenburg and the Operator; and each of the agreements described
in clauses (a)–(c) is an “O&M
Agreement.”

 

“Operator” means Noble Wind Operations, LLC, a Delaware limited
liability company.

 

16

 

“Organic Transaction” means any transaction that results in a
change of Control of Sponsor,
including an initial public offering of
equity securities of Sponsor or its Parent or a purchase, merger or
consolidation of Sponsor or its Parent.

 

“Original LLC Agreement” has the meaning set forth in the first
recital.

 

“Outside Activities” has the meaning set forth in Section 6.03.

 

“Parent”  means,
with respect to a Person, any other Person that directly or indirectly Controls
such Person.

 

“Parent
Ownership Change” has the meaning set forth in Section 3.03(d)(i).

 

“Parties”  means
the Members executing this Agreement, and any other Person that becomes a
Member in accordance with the provisions hereof.

 

“PAYG Agreement” means the Pay-As-You-Go Capital Contribution
Agreement, dated as of June 22, 2007, between the Class A Members,
the Initial Member and the Company.

 

“Permitted Disposition”  means
a Disposition or Encumbrance of any Unit to or in favor of (a) an
Affiliate of the transferring Member, or any other Member (or its Affiliate)
holding Units of the same class as the Units Disposed of or Encumbered;
provided, (i) if such Disposition or Encumbrance is made by the Initial
Member to any of its Affiliates, the Sponsor Guaranty (or any replacement
guaranty permitted thereby) if then required to be in effect, remains in
effect, (ii) if such Disposition or Encumbrance is made by any other
Member, any guaranty then required to be in effect remains in effect, or (iii) such
Disposition or Encumbrance occurs subsequent to the date on which the Flip
Point occurs, (b) any creditor of the Company or a Member, or any
collateral agent for such creditor, to the extent that such Disposition or
Encumbrance constitutes security for the indebtedness of the Company or a
Member or its Affiliate to such creditor, and including the Disposition upon
foreclosure of such Encumbrance or in lieu of such foreclosure, so long as such
Encumbrance complies with the provisions of Section 3.03(c), and (c) any
Member pursuant to Article 10; provided, any Disposition to, or
Encumbrance in favor of, a Disqualified Transferee is not a Permitted
Disposition, and (d) any transferee of the Class B Member pursuant to
Section 3.03(b)(i)(B)(I).

 

“Permitted Encumbrances” means (a) Encumbrances for
inchoate mechanics’ and materialmen’s liens for construction in progress and
workmen’s, repairmen’s, warehousemen’s and carriers’ liens arising in the
ordinary course of business for amounts not yet due or that are being contested
in good faith by appropriate proceedings, (b) Encumbrances for Taxes not
yet payable or that are being contested in good faith by appropriate
proceedings, (c) the Encumbrances securing the Debt Obligations and/or
obligations under the Hedge Facility Documents, (d) Encumbrances created
by or pursuant to this Agreement, the Principal Project Documents or the IDA
Documents (as defined in the Debt Financing Documents), (e) Encumbrances
incurred in the ordinary course of business in connection with worker’s
compensation, unemployment insurance, social security and other governmental rules and
that do not in the aggregate materially impair the use of the property or
assets encumbered thereby or the value of such property or assets for the purposes
of such business, (f) Encumbrances arising out of judgments or awards so
long as an appeal or proceeding for review is being contested in 

 

17

 

good
faith by appropriate proceedings and for the payment of which cash reserves,
bonds or other security reasonably acceptable to Administrative Agent, in its
reasonable discretion, have been provided or are fully covered by insurance, (g) deposits
or pledges to secure mandatory statutory obligations or performance of bids,
tenders, contracts (other than for the repayment of borrowed money) or leases,
or for purposes of like general nature in the ordinary course of its business, (h) zoning,
entitlement, conservation restrictions and other land use and environmental
regulations by Governmental Authorities that do not materially interfere with
the operation and maintenance of the Wind Farms, (i) all Encumbrances that
appear as exceptions on the Lender’s Title Policy (as defined in the
Contribution Agreement), (j) any other Encumbrance approved by the Company
and the Equity Investors acting together in their reasonable discretion, (k) any
Encumbrance that is an exception to the Proforma Owner’s Policy delivered
pursuant to the Contribution Agreement, (l) Encumbrances for purchase
money obligations incurred in the ordinary course of business, (m) minor
defects, easements, rights-of-way, restrictions, and other similar Encumbrances
incurred in the ordinary course of business and Encumbrances, licenses,
restrictions on the use of property or minor imperfections in title, in each
case that do not materially interfere with the operation and maintenance of the
Wind Farms, and that, in the aggregate, could not reasonably be expected to
result in a Material Adverse Effect, (n) any other Encumbrances not in
excess of $1,000,000 in the aggregate, and (o) any other Encumbrance that
is a “Permitted Lien” under the Financing Agreement (as defined in the
Contribution Agreement).

 

“Person” means any individual, partnership, joint venture,
company, corporation, limited liability company, limited duration company,
limited life company, association, trust or other entity or organization,
including a Governmental Authority.

 

“Post-Contribution
Order” has the meaning set forth in Section 6.11.

 

“Power Sales Agreement”  means
any agreement or arrangement between (a) any Project Company and (b) any
third party that is not a Related Party providing for the sale by any Project
Company of electric capacity, energy, or ancillary services (all as defined
under the tariff of NYISO) to such third party or such third party’s Affiliate.

 

“Principal Project Documents”
means those agreements listed as Principal Project Documents on Exhibit C
hereto, any agreement entered into in replacement or substitution thereof and
any other agreement entered into by the Company or any Project Company after
the Effective Date having a term in excess of one (1) year, and providing
for annual payments by, or revenues in excess of, $500,000 for any one Project
Company or $1,500,000 for the Company which has, in each such case, received
the prior written approval of the Required Voting Percentage.

 

“Profits” and “Losses”
means, as applicable, for each Allocation Year, an amount equal to the Company’s
taxable income or loss for such Allocation Year, determined in accordance with
Code Section 703(a) (for this purpose, all items of income, gain,
loss, or deduction required to be stated separately pursuant to Code Section 703(a)(1) shall
be included in taxable income or loss), with the following adjustments (without
duplication):

 

18

 

(a)           Any income of the Company that is exempt from
federal income tax and not otherwise taken into account in computing Profits or
Losses pursuant to this definition of Profits and Losses shall be added to such
taxable income or loss;

 

(b)           Any expenditures of the Company described in Code Section 705(a)(2)(B) or
treated as Code Section 705(a)(2)(B) expenditures pursuant to
Treasury Regulation Section 1.704-1(b)(2)(iv)(i), and not otherwise taken
into account in computing Profits or Losses pursuant to this definition of
Profits and Losses, shall be subtracted from such taxable income or loss;

 

(c)           In the event the Gross Asset Value of any Company
asset is adjusted pursuant to subsections (b) or (c) of the
definition of Gross Asset Value, the amount of such adjustment shall be treated
as an item of gain (if the adjustment increases the Gross Asset Value of the
asset) or an item of loss (if the adjustment decreases the Gross Asset Value of
the asset) from the disposition of such asset and shall be taken into account
for purposes of computing Profits or Losses;

 

(d)           Gain or loss resulting from any disposition of
Property with respect to which gain or loss is recognized for federal income
tax purposes shall be computed by reference to the Gross Asset Value of the
Property disposed of, notwithstanding that the adjusted tax basis of such
Property differs from its Gross Asset Value;

 

(e)           In lieu of the depreciation, amortization, and other
cost recovery deductions taken into account in computing such taxable income or
loss, there shall be taken into account Depreciation for such Allocation Year,
computed in accordance with the definition of Depreciation;

 

(f)            To the extent an adjustment to the adjusted tax
basis of any Company asset pursuant to Code Section 734(b) is
required, pursuant to Treasury Regulation Section 1.704-(b)(2)(iv)(m)(4),
to be taken into account in determining Capital Accounts as a result of a
distribution other than in liquidation of a Member’s interest in the Company,
the amount of such adjustment shall be treated as an item of gain (if the
adjustment increases the basis of the asset) or loss (if the adjustment
decreases such basis) from the disposition of such asset and shall be taken
into account for purposes of computing Profits or Losses; and

 

(g)           Notwithstanding any other provision of this
definition of Profits and Losses, any items that are specially allocated
pursuant to Section 5.01(b), Section 5.01(c), Section 5.01(d),
or Section 12.02(a) shall not be taken into account in
computing Profits or Losses.

 

The amounts of the items of
Company income, gain, loss, or deduction available to be specially allocated
pursuant to Sections 5.01(b), 5.01(c), 5.01(d), and 12.02(a)
shall be determined by applying rules analogous to those set forth in
subsections (a)–(f) of this definition.

 

“Project Companies”  means
Noble Bliss, Noble Clinton and Noble Ellenburg; and each of them is a “Project Company”.

 

19

 

“Property” means all real and personal property acquired by the
Company, including cash, and any improvements thereto, and shall include both
tangible and intangible property.

 

“Pro Rata Share”  means
as to the holder of any class of Units, the number of Units of such class held
by such Member divided by the total number of Units of such class outstanding.

 

“Prudent Operator Standard” means those practices, methods, equipment, specifications
and standards of safety and performance, as the same may be changed from time
to time, as are generally used in the construction, operation and maintenance
of privately-owned wind generated electric power generation facilities similar
to the Winds Farms by Persons that sell the power generated therefrom at
market-based rates, which in the exercise of reasonable judgment and in light
of the facts known at the time the decision was made are considered good, safe
and prudent practice in connection with the construction, operation and
maintenance of wind generation facilities similar to the Wind Farms, and as are
in accordance with the applicable Governmental Approvals and generally accepted
national standards of professional care, skill, diligence and competence
applicable to construction, operation and maintenance practices in the wind
generated electric power generation industry.

 

“PTC”  means a
renewable electricity production credit within the meaning of Code Section 45
or any successor to such section.

 

“PTC Period”  means
the period from the date that the first Wind Turbine that is a component of any
Wind Farm has achieved Turbine Substantial Completion until the expiration of
the period during which PTCs are available in connection with the sale of
electricity from any Wind Turbine.

 

“Purchase Option Event”  has the meaning set forth in Section 10.01(a).

 

“Purchase Price”  has
the meaning set forth in Section 10.03(c).

 

“Purchasing Members” has the meaning set forth in Section 10.03(b).

 

“Qualified Appraiser”  means
a nationally recognized third-party appraiser which shall (a) be qualified
to appraise independent electric generating businesses, (b) have been
engaged in the appraisal or business valuation and consulting business for a
period of not less than five (5) years, and (c) not be associated
with any Member or any Affiliate thereof.

 

“Real Property Documents”  has
the meaning set forth in the Contribution Agreement.

 

“REC Contract Security” means (a) REC Letter of Credit
S904271 for $1,605,813, dated March 20, 2007, issued by Citizens Bank of
Connecticut, on behalf of Noble Bliss (as Applicant) for NYSERDA (as
Beneficiary), as amended by Amendment to REC Letter of Credit S904271,
increasing the amount by $802,906.56, dated January 9, 2008, issued by
Citizens Bank of Connecticut, on behalf of Noble Bliss (as Applicant) for
NYSERDA (as Beneficiary); (b) REC Letter of Credit S904270 for $1,655,995,
dated March 20, 2007, issued by Citizens Bank of Connecticut, on behalf of
Noble Clinton (as Applicant) for NYSERDA (as Beneficiary), as amended by
Amendment to REC Letter of Credit S904270, increasing the amount by
$827,997.39, dated January 9, 2008, issued by Citizens Bank of
Connecticut, on behalf of Noble 

 

20

 

Clinton
(as Applicant) for NYSERDA (as Beneficiary); and (c) REC Letter of Credit
S904273 for $1,375,127, dated March 20, 2007, issued by Citizens Bank of
Connecticut, on behalf of Noble Ellenburg (as Applicant) for NYSERDA (as
Beneficiary), as amended by Amendment to REC Letter of Credit S904273,
increasing the amount by $687,563.64, dated January 9, 2008, issued by
Citizens Bank of Connecticut, on behalf of Noble Ellenburg (as Applicant) for
NYSERDA (as Beneficiary).

 

“Regulated Holder”  means
any holder of the Company’s Securities that is (or that is a Subsidiary of a
bank holding company that is) subject to the various provisions of Regulation Y
of the Board of Governors of the Federal Reserve Systems, 12 C.F.R., Part 225
(or any successor to Regulation Y).

 

“Regulatory Affiliate” means, with respect to any specified
Person, any other Person directly or indirectly controlling, controlled by or
under common control with such Person. The
term “control” (including the terms “controlled by” or “under common control
with”) means the possession, directly or indirectly, of the power to direct or
cause the direction of the
management and policies of a Person, whether through ownership, by contract, or
otherwise.  Any Person shall be deemed a “Regulatory
Affiliate” of any specified Person if such Person directly or indirectly owns
or controls 5% or more of the voting securities of the specified Person, if the
specified Person directly or indirectly owns or controls 5% or more of the
voting securities of such Person, or if 5% or more of the voting securities of
the specified Person and such Person are under common ownership or control,
directly or indirectly.

 

“Regulatory Allocations” has the meaning set forth in Section 5.01(c).

 

“Regulatory Problem” means (a) any set of facts or
circumstances wherein it has been asserted by any Governmental Authority (or a
Member or the Managing Member reasonably believes based on advice of its
counsel or regulators that there is a significant risk of such assertion) that
such Person (or any bank holding company or other regulated bank entity that
controls such Person) is not entitled to hold, or exercise any material right
with respect to, all or any portion of the Securities of the Company which such
Person holds or (b) such Person and its Regulatory Affiliates does or
would own, control or have power (including voting rights) over a greater
quantity of Securities of the Company than is permitted under any Applicable
Law.

 

“Related Party”  means
at any time during the PTC Period, (a) any Person who is then purchasing
electricity generated by any of the Wind Farms or (b) any Person related
(within the meaning set forth in Code Section 45(e)(4) or any
successor to such Section) to any Person who is then purchasing electricity
generated by any of the Wind Farms; provided, any Person (or Person related to
such Person) whose sole purchases of electricity generated by any of the Wind
Farms are retail purchases from a Person other than the Company or any Project
Company shall not be a “Related Party.”

 

“Relevant Damages” means, with respect to any specified Person,
any damage, loss (including loss or disallowance of or failure to qualify for
PTCs), cost or expense suffered or incurred by such Person, but excluding
special, incidental, consequential and punitive damages.

 

21

 

“Renewable Energy Certificates” means Renewable Energy
Certificates issued by NYSERDA as mandated by the New York State 2004 Renewable
Portfolio Standard.

 

“Required Voting Percentage” means, prior to the Flip Point,
the Majority of all Members and, after the Flip Point, Members collectively
holding at least 50.1% of all then outstanding Class B Units, provided
such term shall continue to mean the Majority of all Members with respect to
the following actions:

 

(a)           a change in the U.S. federal tax classification of
the Company or any Project Company from a partnership or disregarded entity, as
applicable, to a corporation;

 

(b)           the sale, assignment, lease or other transfer of all
or substantially all of the assets of the Company or any Project Company to any
Person (other than to an Affiliate of the Sponsor or the Class B Member,
which transaction (if any) shall be governed solely by Section 6.03)
in any transaction or series of transactions; provided, the Consent of Class A
Member shall not be required if (i) a Majority of Class A Members or
the Class B Member request an appraisal of the Fair Market Value of such
assets (which request shall be made within thirty (30) Days of receipt of
notice of the proposed transaction), (ii) a Qualified Appraiser mutually
agreed upon by the Class B Member and the Class A Members determines
that the proposed sales price is within the range of the Fair Market Values of
such assets, or if not within such range, the Qualified Appraiser determines
the range of Fair Market Values of such assets (which determinations shall be
made within fifteen (15) Days following the appointment of the Qualified
Appraiser), and (iii) the purchaser agrees in writing to purchase such
assets for an amount within the range of the Fair Market Values determined by
the Qualified Appraiser; provided further, for the avoidance of doubt, the
Consent of Class A Member shall not be required for (A) sales of
energy, capacity or ancillary services, (B) the transfer of any related
environmental credits or (C) the transfer of an asset that is worn out,
obsolete, or no longer necessary or useful for the operation of the Wind Farms;

 

(c)           a recapitalization of the Company or any Project
Company, or the Company or any Project Company (i) entering into a joint
venture with, merging into or consolidating with any Person (other than with an
Affiliate of the Sponsor or the Class B Member, which transaction (if any)
shall be governed solely by Section 6.03), or (ii) acquiring
all or substantially all of the assets or stock of any class of any Person
(other than of an Affiliate of the Sponsor or the Class B Member, which
transaction (if any) shall be governed solely by Section 6.03), but
only if such recapitalization, joint venture, merger, consolidation or
acquisition would have a disproportionate adverse effect on the Class A
Members;

 

(d)           a change in the legal form of the Company or any
Project Company, or the liquidation (including any transaction or series of
related transactions resulting in a liquidation), wind-up or dissolution of the
Company or any Project Company, in each case except as permitted under this
Agreement;

 

(e)           the sale or issuance of any interest, or any option,
warrant or similar right to acquire any interest, of any kind in the Company
(other than issuances of additional 

 

22

 

Units pursuant to Section 3.04)
or any Project Company, but only if such sale or issuance would have a
disproportionate adverse effect on the Class A Members;

 

(f)            the settlement of any claim or action, or the
confession of any judgment, against the Company or any Project Company that
includes any admission of criminal liability or for which the Class A
Members are personally liable;

 

(g)           the amendment, modification, termination or
expiration of any Governmental Approval not otherwise in the ordinary course of
business required for the operation, ownership, management or maintenance of
any of the Wind Farms or the sale or transmission of power therefrom in a
manner that would have a Material Adverse Effect or puts the Wind Farms at risk
of foreclosure under the Debt Financing Documents;

 

(h)           the Company or any Project Company taking or filing
any action or instituting, or consenting to the institution of, any proceedings
in Bankruptcy against the Company or a Project Company; and

 

(i)            the Company or any Project Company taking any
actions or decisions that are reserved to the Class A Members after the
Flip Point under the terms of this Agreement (unless directed to do so by the
Members pursuant to this Agreement).

 

“SCADA” means supervisory control and data
acquisition, as that term is applied to both equipment and operational
practices under Appendix G to each Interconnection Agreement, and as referenced
in the tariff of NYISO and that certain Order of FERC in Docket No. ER06-506
(March 17, 2006).

 

“Securities”  means
with respect to any Person, such Person’s capital stock or limited liability
company interests or any options, warrants or other Securities which are
directly or indirectly convertible into, or exercisable or exchangeable for,
such Person’s capital stock or limited liability company interests (whether or
not such derivative Securities are issued by the Company).  Whenever a reference herein to Securities
refers to any derivative Securities, the rights of the Class A Equity
Investors shall apply to such derivative Securities and all underlying
Securities directly or indirectly issuable upon conversion, exchange or
exercise of such derivative Securities.

 

“Special Event” has the meaning set forth in Section 9.01.

 

“Specified Revenues” has the meaning set forth in Section 5.09.

 

“Specified Vicinity” means, with respect to any Wind Farm, any
area encompassed by a circle, the center of which is any Wind Turbine located
on such Wind Farm and the radius of which is equal to twenty (20) times the
diameter of the rotors of closest wind turbine which is part of any other
wind-power generation facility.

 

“Sponsor” means Noble Environmental Power, LLC, a Delaware
limited liability company.

 

23

 

“Sponsor Guaranty”  means
the guaranty, dated as of June 22, 2007, made by Sponsor in favor of each Class A
Member with respect to the obligations of the Initial Member under this
Agreement and the Contribution Agreement, or any replacement guaranty permitted
thereby or other replacement credit support approved by the Majority of Class A
Members.

 

“Subsidiary”  means
with respect to any Person, any other Person of which the securities having a
majority of the ordinary voting power in electing the board of directors (or
other governing body), at the time as of which any determination is being made,
are owned by such first Person either directly or through one or more of its
Subsidiaries.

 

“Tag-Along Notice” has the meaning set forth in Section 3.03(e)(ii).

 

“Tax Benefits”  means
those tax benefits contemplated by Section 5.06(b)(iv).

 

“Tax Cost/Benefit Trigger Amount” has the meaning set forth in Section 5.06(b)(v)(A).

 

“Tax Costs”  means
those tax costs contemplated by Section 5.06(b)(iv).

 

“Tax Exempt Person” means (a) the United States, any state
or political subdivision thereof, any possession of the United States, or any
agency or instrumentality of any of the foregoing, (b) any organization
which is exempt from tax imposed by the Code, (c) any Person who is not a “United
States person” within the meaning of Code Section 7701(a)(30), and (d) any
Indian tribal government described in Code Section 7701(a)(40).

 

“Tax Matters Member” has the meaning set forth in Section 7.03(a).

 

“Tax Payment Date”  has
the meaning set forth in Section 5.06(b)(iv)(C).

 

“Tax Return”  has
the meaning set forth in Section 7.01.

 

“Term”  has the
meaning set forth in Section 2.06.

 

“Terminated Member”  has
the meaning set forth in Section 10.03(e).

 

“Tracking
Account” has the meaning set forth in the Hedge Facility Agreement.

 

“Tracking Model”  has
the meaning set forth in Section 5.06(a)(ii).

 

“Transaction”  has
the meaning set forth in Section 3.06(f).

 

“Treasury Regulation”  means
the federal income tax regulation (including temporary regulations) promulgated
under the Code, as such regulation may be amended from time to time (including
corresponding provisions of successor Treasury Regulations).

 

“Trigger Percentage”  has
the meaning set forth in Section 5.06(b)(v)(A).

 

“Turbine  Substantial Completion”
means, with respect to each Wind Turbine, that (a) such Wind Turbine has
been physically completed and all components of such Wind Turbine necessary for
such Wind Turbine’s regular production and monitoring through the SCADA of 

 

24

 

electricity
have been installed, except “Punch List” items that do not interfere with safe
and proper operation and regular production of electricity, (b) such Wind
Turbine has successfully achieved “Mechanical Completion” as defined in the
applicable EPC Contract, and the EPC Contractor has issued, for such Wind
Turbine, the “Mechanical Completion Certificate” as set forth in the applicable
EPC Contract, and such certificate has been approved and countersigned by the
Independent Engineer, (c) the EPC Contractor has issued a “Certificate for
Readiness of Testing” (as defined in the applicable EPC Contract) for such Wind
Turbine and such certificate has been approved and countersigned by the
Independent Engineer, (d) such Wind Turbine has successfully passed the
testing requirements described in the applicable EPC Contract (including the “Acceptance
Tests” and “Reliability Tests” (each as defined in the applicable EPC
Contract)), has been synchronized to the grid, and is ready to produce energy
for sale in commercial quantities on a regular and continuous basis and in a
safe and lawful manner and more specifically as per the applicable Turbine
Supply Agreement, the “Commercial Operation Certificate” has been issued and countersigned
by the Independent Engineer, (e) interconnection agreements are validly in
force so as to permit such Wind Turbine (when combined with each other Wind
Turbine that has achieved Turbine Substantial Completion) to deliver all energy
from such Wind Turbine to the “point of interconnection” specified in the
applicable Interconnection Agreement, and such that the “In-Service Date” under
each applicable Interconnection Agreement has occurred, and (f) such Wind
Turbine has successfully achieved “Substantial Completion” (as defined in the
applicable EPC Contract), the EPC Contractor has issued for such Wind Turbine
the “Substantial Completion Certificate” (as defined in the applicable EPC
Contract), and such certificate has been approved and countersigned by the
Independent Engineer.

 

“Turbine Supply Agreements” has the meaning set forth in the Contribution Agreement.

 

“Uniform Commercial Code”  means
the Uniform Commercial Code as in effect from time to time in the State of New
York.

 

“Units”  means Class A
Units and Class B Units.  Units
shall be measured by reference to the Capital Accounts of each Member on the
Effective Date, with each Member owning one Unit of the relevant class for each
dollar in such Member’s Capital Account on the Effective Date.  Thereafter, the number of Units shall not
change unless an additional Capital Contribution is made by any Member,
whereupon such Member shall be entitled to one additional Unit for each
additional dollar of capital so contributed; provided, however, no Class A
Member shall be entitled to any additional Units for any Capital Contributions
made by such Member pursuant to the PAYG Agreement.  Upon a Disposition by any Member in
accordance with the provisions of this Agreement of any portion of such Member’s
Membership Interest, the assignee shall receive from the Disposing Member a
number of Units of the relevant class equal to the percentage of the Membership
Interest so Disposed multiplied by the total number of Units owned by the
Disposing Member immediately prior to the Disposition.

 

“Wind Farm Municipal Bonds” means (a) Financial Guarantee
Bond No. 6417507, dated February 22, 2007, among Noble Bliss, Safeco
Insurance Company of America and the Town of Eagle; (b) the bond, fund, or
letter of credit required by Section 6 of the License Agreement, dated as
of November 9, 2006, between the Town of Eagle and Noble Bliss; (c) the

 

25

 

financial
security required by Section X.E. of the Host Community Agreement, dated
as of August 21, 2006, between the Town of Clinton and Noble Clinton; (d) Road
Use Bond No. 6417479, dated as of November 21, 2006, among Noble
Clinton, Safeco Insurance Company of America and the Town of Clinton; (e) the
financial security required by Section X.E of the Host Community
Agreement, dated as of August 21, 2006, between Noble Ellenburg and the
Town of Ellenburg; and (f) Road Use Bond No. 6417480, dated as of November 21,
2006, among Noble Ellenburg, Safeco Insurance Company of America and the Town
of Ellenburg.

 

“Wind Farms”  means
the Noble Bliss Wind Farm, the Noble Clinton Wind Farm, and the Noble Ellenburg
Wind Farm; and each of them is a “Wind Farm.”

 

“Wind Farm Sites”  has
the meaning set forth in the Contribution Agreement.

 

“Wind Turbines”  means
the one hundred eighty-eight (188) General Electric 1.5 MW SLE wind turbine
generators contemplated to be sold to the Company pursuant to the Turbine
Supply Agreements and to be used in the construction of all of the Wind Farms;
and each of them is a “Wind Turbine.”

 

1.02        Construction.  Unless the context requires otherwise:  (a) the gender (or lack of gender) of
all words used in this Agreement includes the masculine, feminine, and neuter; (b) words
used or defined in the singular include the plural and vice versa; (c) references
to Articles and Sections refer to Articles and Sections of this Agreement; (d) references
to Exhibits refer to the Exhibits attached to this Agreement, each of which is
made a part hereof for all purposes; (e) references to Applicable Laws
refer to such laws as they may be amended from time to time, and references to
particular provisions of an Applicable Law include any corresponding provisions
of any succeeding Applicable Law; (f) terms defined in this Agreement are
used throughout this Agreement and in any Exhibits hereto as so defined; (g) references
to any agreement, contract or document shall mean such agreement, contract or
document as the same may be amended, supplemented or otherwise modified from
time to time in accordance with this Agreement; (h) the words “herein”, “hereof”
and “hereunder” shall refer to this Agreement as a whole and not to any
particular section or subsection of this Agreement; and (i) references to
money refer to legal currency of the United States of America.

 

ARTICLE
2.

ORGANIZATION

 

2.01        Formation.  The Initial Member formed the Company as a
Delaware limited liability company by the filing of a Certificate of Formation
of Noble Environmental Power 2006 Hold Co, LLC (the “Delaware
Certificate”), dated February 13, 2006 (the “Formation
Date”), with the Secretary of State of Delaware pursuant to the Act.  Pursuant to this Agreement, the Parties
hereto hereby provide for the admission to the Company of the Class A
Equity Investors, effective upon the execution and delivery of this Agreement
by all Parties.

 

2.02        Name.  The name of the Company is “Noble
Environmental Power 2006 Hold Co, LLC” and all Company business must be
conducted in that name or such other names that comply with Applicable Law as the
Managing Member may select; provided, in the event of a 

 

26

 

change
in name, the Managing Member shall notify the Members of such name change
promptly thereafter.

 

2.03        Registered Office; Registered Agent; Principal Office.  The address of the registered office of the
Company required by the Act to be maintained in the State of Delaware shall be
1209 Orange Street, Wilmington, Delaware 19801 or such other office (which need
not be a place of business of the Company) as the Managing Member may designate
in the manner provided by Applicable Law. 
The registered agent of the Company in the State of Delaware shall be
The Corporation Trust Company or such other Person or Persons as the Managing
Member may designate in the manner provided by Applicable Law.  The principal office of the Company in the
United States shall be at such place as the Managing Member may designate,
which need not be in the State of Delaware, and the Company shall maintain
records there or in such other place as the Managing Member shall designate.
The Managing Member shall give prompt notice to each Member of any election or
change in the principal office of the Company.

 

2.04        Purposes.

 

(a)           The purposes of the Company are limited to (i) being
the sole member of each of the Project Companies, (ii) owning or Disposing
of membership interests in any of the Project Companies, (iii) entering
into, complying with, performing its obligations and enforcing its rights
under, this Agreement, each Principal Project Document to which it is a party,
each Hedge Financing Document, each Debt Financing Document to which it is a
party, and any other agreements or contracts it has entered into with respect
to business of the Company, (iv) causing each Project Company to (A) engage
in the acquisition, construction, lease, ownership and sale, and the operation,
management, maintenance, financing and refinancing of its Wind Farm, and (B) enter,
into, comply with, and perform its obligations and enforce its right under,
each Principal Project Document to which it is a party, and any other
agreements and contracts it has entered into with respect to business of the
Project Companies, and to purchase, own, use, transmit, market and sell any
electricity output therefrom at wholesale, or any input, output or right
associated therewith for the purpose of generating a profit, and (iv) all
actions incidental, necessary or appropriate with respect to the matters
covered in preceding clauses (i)–(iv) that may be engaged in by a
limited liability company formed under the Act.

 

(b)           The Company shall exist for the purposes
and business specified in Section 2.04(a) and this Agreement
shall not be deemed to create a partnership, company, joint venture or other
arrangement among the Members with respect to any activities whatsoever other
than the purposes and business specified in Section 2.04(a) and
the activities related thereto.

 

2.05        Foreign Qualification.  Prior to the Company’s conducting business in
any jurisdiction other than Delaware, the Managing Member shall cause the
Company to comply, with all requirements necessary to qualify the Company as a
foreign limited liability company in that jurisdiction.  At the request of the Managing Member, each
Member shall execute, acknowledge, swear to, and deliver all certificates and
other instruments conforming with this Agreement that are necessary or
appropriate to qualify, continue, and terminate the Company as a foreign
limited liability company in all such jurisdictions in which the Company may
conduct business.

 

27

 

2.06        Term.  The period of existence of the Company (the “Term”) commenced on
the Formation Date and shall end fifty (50) years from such date unless the
Company is earlier dissolved in accordance with either the provisions of this
Agreement or the Act.

 

2.07        No State-Law Partnership.  The Members intend that the Company not be a
partnership (including a limited partnership) or joint venture, and that no
Member be a partner or joint venturer of any other Member, for any purposes
other than tax purposes, and this Agreement may not be construed to suggest
otherwise.

 

2.08        Units; Certificates of Membership Interest;
Applicability of Article 8 of UCC.  Membership Interests shall be represented by
Units, divided into Class A Units (in the case of Class A Membership
Interests) and Class B Units (in the case of Class B Membership
Interests).  Each Unit shall represent a
Capital Contribution in the amount of $1. 
The Membership Interests represented by Class A Units and Class B
Units shall have the respective rights, powers and preferences ascribed to Class A
Units and Class B Units in this Agreement. 
The class of Membership Interest of a Member shall be as provided in Exhibit B.  The Members hereby specify, acknowledge and
agree that all Units (and the Membership Interests represented thereby) are
securities governed by Article 8 and all other provisions of the Uniform
Commercial Code, and pursuant to the terms of Section 8-103(c) of the
Uniform Commercial Code, such interests shall be “securities” for all purposes
under such Article 8 and under all other provisions of the Uniform
Commercial Code.  All Units (and the
Membership Interests represented thereby) shall be represented by certificates
substantially in the form attached hereto as Exhibit A, shall be
recorded in a register thereof maintained by the Company, and shall be subject
to such rules for the issuance thereof in compliance with this Agreement,
as the Managing Member may from time to time determine.

 

ARTICLE
3.

MEMBERSHIP; DISPOSITIONS OF INTERESTS

 

3.01        Members.  As of the date of this Agreement (a) the
Class A Equity Investors listed on Exhibit B hereto are hereby
admitted as Members of the Company, with the class designation and number of
Units set forth on such Exhibit B; and (b) the Initial Member
listed on Exhibit B hereto shall have the class designation and
hold the Units set forth on such Exhibit B.

 

3.02        Representations, Warranties and Covenants.

 

(a)           Each Member severally but not jointly
hereby represents and warrants and, with respect to Section 3.02(a)(iv),
(v), (vii) and (viii), covenants to the Company and
each other Member with respect to itself only, that the following statements
are true and correct as of (x) with respect to the Class A Equity
Investors and the Initial Member, the Effective Date, (y) with respect to
any other Person hereafter admitted as a Member pursuant to this Agreement, the
date such Person is so admitted as a Member, and (z) with respect to Sections 3.02(a)(iv),
(v) and (vi), at all times that such Member is a Member:

 

(i)            such
Member is duly incorporated, organized or formed (as applicable), validly
existing, and (if applicable) in good standing under the Applicable Law of the
jurisdiction of its incorporation, organization or formation; 

 

28

 

if required
by Applicable Law, such Member is duly qualified and in good standing in the
jurisdiction of its principal place of business, if different from its
jurisdiction of incorporation, organization or formation; and such Member has
full power and authority to execute and deliver this Agreement and to perform
its obligations hereunder, and all necessary actions by the board of directors,
shareholders, managers, members, partners, trustees, beneficiaries, or other
applicable Persons necessary for the due authorization, execution, delivery,
and performance of this Agreement by such Member have been duly taken;

 

(ii)           such
Member has duly executed and delivered this Agreement and it constitutes the
legal, valid and binding obligation of such Member enforceable against it in
accordance with its terms (except as may be limited by bankruptcy, insolvency
or similar Applicable Laws of general application and by the effect of general
principles of equity, regardless of whether considered at law or in equity);

 

(iii)          such
Member’s authorization, execution, delivery, and performance of this Agreement
does not and will not (A) conflict with, or result in a breach, default or
violation of, the organizational documents of such Member; (B) violate in
any material respect, result in a material breach of, constitute (with due
notice or lapse of time or both) a material default or cause any material
obligation, material penalty, material premium, or any right of termination to
arise or accrue under, any Principal Project Document or other material
contract or agreement to which such Member is a party or is otherwise subject; (C) conflict
with, or result in a breach, default or violation of any material aspect of any
Applicable Law, order, judgment, decree, writ, injunction or arbitral award to
which such Member is subject; or (D) require any consent, approval or
authorization from, filing or registration with, or notice to, any Governmental
Authority or other Person, unless such requirement has already been satisfied,
except to the extent such failure to obtain such consent, approval or
authorization could not reasonably be expected to cause a Material Adverse
Effect;

 

(iv)          such
Member (or if such Member is a disregarded entity, such Member’s owner) is and
shall be a United States person not subject to withholding under Code Section 1446;

 

(v)           such
Member is not and shall not be a Related Party;

 

(vi)          that
either (i) no part of the aggregate Capital Contribution made by such
Member and used by such Member to acquire any Units or Membership Interest,
constitutes assets of any “employee benefit plan” within the meaning of Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended (“ERISA”), or other “benefit plan investor”
(as defined in U.S. Department of Labor Reg. §§2510.3-101 et seq., as modified
by ERISA) or assets allocated to any insurance company separate account or
general account in which any such employee benefit plan or benefit plan
investor (or related trust) has any interest or (ii) the source of the
funding used to pay the Capital Contribution made by such Member is an “insurance
company general account” within the meaning 

 

29

 

of
Department of Labor Prohibited Transaction Exemption 95-60, issued July 12,
1995, and there is no employee benefit plan, treating as a single plan all
plans maintained by the same employer or employee organization, with respect to
which the amount of the general account reserves and liabilities for all
contracts held by or on behalf of such plan exceeds ten percent (10%) of the
total reserves and liabilities of such general account (exclusive of separate
account liabilities) plus surplus, as set forth in the National Association of
Insurance Commissioners “Annual Statement” filed with such Member’s state of
domicile;

 

(vii)         such Member
shall provide the Managing Member with written notice not less than sixty (60)
Business Days prior to the effective date of any proposed direct or indirect
sale, assignment, transfer, conveyance, gift, exchange or other disposition of
all or part of the Membership Interests held by such Member, whether such
transaction is voluntary, involuntary or by operation of Applicable Law,
including by means of upstream mergers or acquisitions.  Such notice shall identify the Member or
Regulatory Affiliates of such Member seeking to directly or indirectly dispose
of any or all of its Membership Interests, any Person that would directly or
indirectly hold any Membership Interests as a result of the proposed
transaction, and the total Membership Interests that shall be held directly or
indirectly by such Person upon consummation of such proposed transaction.  Such notice shall include all the information
necessary to file with FERC an
application under Section 203 of the FPA in connection with such
transaction, if such application were required. 
Such Member, the Company and the Managing Member shall cooperate in
order to make any filings with FERC that are reasonably necessary in order to
ensure that the proposed transaction will not result in: (a) the Company
or any Project Company being in violation of the FPA or any regulation or order
of FERC under any of Sections 203, 204 or 205 thereof, or of the New York
Public Service Law or any regulation or order of the New York Public Service
Commission under Section 70 thereof, (b) the Company or any Project
Company being in violation of the terms and conditions of its market-based rate
authorization, or (c) the Company or any Project Company ceasing to be an “exempt
wholesale generator” as defined in the Public Utility Holding Company Act of
2005 and FERC’s implementing regulations; and

 

(viii)        such Member
shall provide written notice to the Managing Member promptly, and in any case,
within fifteen (15) Days of such Member taking any action or becoming aware of
any circumstance that would require any Project Company to make a report to
FERC pursuant to 18 C.F.R. § 35.27. 
Such Member, the Company, the Project Companies and the Managing Member
shall cooperate in order to make any filings required under FERC’s rules and
regulations to ensure that the Company and each of the Project Companies remain
in compliance with the terms and conditions of its market-based rate
authorization.

 

(b)           The Class B Member hereby further
represents, warrants and covenants to the Class A Members as follows:

 

30

 

(i)            the
Class B Member shall notify the Class A Members within five (5) Business
Days of becoming aware of a material breach by the Class B Member or the
Company or any of their respective Affiliates under the Contribution Agreement,
this Agreement, or any Principal Project Document;

 

(ii)           prior
to the Flip Point,  the Class B
Member will not develop, construct or own, and will not in any way participate
in (including directly or indirectly through the Company or an Affiliate of the
Class B Member or the Company) the development, construction or ownership
of, any other wind farm within the Specified Vicinity of any Wind Farm (other
than the Noble Chateaugay Wind Farm and the Noble Bellmont Wind Farm for so
long as the Chauteaugay/Bellmont Array Loss Agreement is in effect and otherwise
subject to the terms therein) if such other wind farm could reasonably be
expected to result in a 0.5% or greater reduction in net annual energy output
generated by the Wind Farms, as determined by the Independent Engineer, unless
the affected Project Company (or its designated payee) is compensated for such
reduction in accordance with the applicable Affiliate Array Loss Agreement;
provided, if the reduction in net annual energy output could reasonably be
expected to be 2% or greater, then the consent of the Majority of Class A
Members shall be required prior to such development, construction or ownership;
provided further, for the avoidance of doubt, (A) none of the Company, the
Project Companies or the Members shall be entitled to any compensation under
this Section 3.02(b)(ii) with respect to any reduction in net
annual energy output attributable to the Noble Chateaugay Wind Farm and the
Noble Bellmont Wind Farm to the extent the affected Project Companies (or their
designated payees) were compensated for such reduction pursuant to the
Chauteaugay/Bellmont Array Loss Agreement and (B) in determining whether
an affected Project Company is entitled to compensation under this Section 3.02(b)(ii) in
connection with any modification of the Noble Chateaugay Wind Farm or the Noble
Bellmont Wind Farm after the termination of the Chauteaugay/Bellmont Array Loss
Agreement, there shall be taken into account only the incremental reduction in
net annual energy output (if any) resulting from such modification and the amount
of such compensation shall be determined without reference to the immediately
preceding 0.5% threshold set forth in this Section 3.02(b)(ii).

 

(iii)          the
Class B Member is not and will not become a Tax Exempt Person.

 

(c)           Each Class A Member, other than EFS
Noble Holdings, hereby covenants to the Company and each other Member, that
prior to the termination or expiration of the PAYG Agreement, (i) it shall
qualify as an Approved Investor (as modified in this Section 3.02(c))
and (ii) if it fails to qualify as an Approved Investor (as modified in
this Section 3.02(c)) at any time during such period, it shall
provide within 15 Days a guarantee or other security that satisfies the
requirements set forth in the definition of Approved Investor; provided, for purposes
of the use of the term “Approved Investor” in this Section 3.02(c),
the credit ratings set forth in clause (a) of the definition of “Approved
Investor” shall be “BBB” for Standard & Poor’s and “Baa2” for Moody’s.

 

31

 

(d)           EFS Noble Holdings and the Initial Member
hereby further agree as follows:

 

(i)            From
and after the Effective Date, the Company shall notify EFS Noble Holdings
promptly after receiving Knowledge of (A) the occurrence of any event of default
by the Company or any Project Company under any Real Property Document relating
to any Wind Farm Site (other than those relating to Ancillary Border Parcels)
or (B) any dispute between any Project Company and any counterparty to any
such Real Property Document if the dispute could reasonably be expected to
materially adversely affect the production or delivery of energy from any Wind
Turbine (an “Estoppels Event”).  The Company shall promptly deliver to the Class B
Member and EFS Noble Holdings copies of all notices given or received by the
Company or any Project Company relating to any Estoppels Event and shall keep
EFS Noble Holdings apprised of the status of the prosecution, defense,
compromise or settlement of any Estoppels Event.

 

(ii)           If
EFS Noble Holdings obtains Knowledge of an Estoppels Event prior to the Equity
Capital Contribution Date relating to a Wind Turbine affected by the Estoppels
Event and the Estoppels Event results in an impairment of the net annual energy
output of the affected Wind Farm (whether in connection with a turbine, a
substation, a transmission line, or otherwise), then the rights, remedies and
obligations of the Company and the Members with respect to the Estoppels Event
shall be governed solely by the terms of the Contribution Agreement and not
this Agreement.

 

(iii)          If
EFS Noble Holdings obtains Knowledge of an Estoppels Event after the Equity
Capital Contribution Date relating to a Wind Turbine affected by the Estoppels
Event and (A) the facts giving rise to such Estoppels Event occurred prior
to such date and (B) the Estoppels Event results in an impairment of the
net annual energy output of the affected Wind Farm (whether in connection with
a turbine, a substation, a transmission line, or otherwise), then the Managing
Member shall calculate the Relevant Damages, if any, sustained by EFS Noble
Holdings as a result of such Estoppels Event. 
The amount of such Relevant Damages shall be calculated by running the
Base Case Model, and changing the assumptions solely to give effect to (X) the
projected changes in cash, revenue and expense, and PTCs reasonably expected to
be caused by the Estoppels Event, on a per turbine pro-rata basis for the
amount of time a particular turbine or transmission line is, or is reasonably
expected to be, shut down or negatively affected (as confirmed by the
Independent Engineer), (Y) the projected timing of any distributions
pursuant to Section 5.02(f), and (Z) any removal or relocation
costs of the Company with respect to any Wind Turbine, while maintaining the
Flip Date and the Class A Yield from the original Base Case Model.
Notwithstanding the foregoing, to the extent a Wind Turbine can be relocated or
an Estoppels Event otherwise can be resolved, the parties shall take such
relocation or resolution and the timing thereof into account when calculating
the Relevant Damages. Any Relevant Damages payable to EFS Noble Holdings
pursuant to this Section 3.02(d)(iii) shall be paid by a distribution
from the Company in priority to all other distributions pursuant to Section 5.02(f)
until the 

 

32

 

amount of
the Relevant Damages is paid in full.  If
there is a Dispute with respect to an Estoppels Event, the provisions of Section 9.04
relating to the escrow of distributions shall apply.

 

(e)           EFS Noble Holdings and the Initial Member
hereby further agree as follows:

 

(i)            From
and after the Effective Date, the Company shall notify EFS Noble Holdings
promptly after receiving Knowledge of any dispute between NYSEG and the Company
or any Project Company if the dispute could reasonably be expected to
materially adversely affect the production or delivery of energy from any Wind
Turbine (a “NYSEG Event”).  The Company shall promptly deliver to the Class B
Member and EFS Noble Holdings copies of all notices given or received by the
Company or any Project Company relating to any NYSEG Event and shall keep EFS
Noble Holdings apprised of the status of the prosecution, defense, compromise
or settlement of any NYSEG Event.

 

(ii)           If
EFS Noble Holdings obtains Knowledge of a NYSEG Event prior to the Equity
Capital Contribution Date relating to a Wind Turbine affected by the NYSEG
Event, and the NYSEG Event results in impairment of the net annual energy
output of the affected Wind Farm (whether in connection with a turbine, a
substation, a transmission line, or otherwise), then the rights, remedies and
obligations of the Company and the Members with respect to the NYSEG Event
shall be governed solely by the terms of the Contribution Agreement and not
this Agreement.

 

(iii)          If
EFS Noble Holdings obtains Knowledge of a NYSEG Event after the Equity Capital
Contribution Date relating to a Wind Turbine affected by the NYSEG Event, and
the NYSEG Event results in an impairment of the net annual energy output of the
affected Wind Farm (whether in connection with a turbine, a substation, a
transmission line or otherwise), then the Managing Member shall calculate the
Relevant Damages, if any, sustained by EFS Noble Holdings as a result of such
NYSEG Event.  The amount of such Relevant
Damages shall be calculated by running the Base Case Model, and changing the
assumptions solely to give effect to (X) the projected changes in cash,
revenue and expense, and PTCs reasonably expected to be caused by the NYSEG
Event, on a per turbine pro-rata basis for the amount of time a particular
turbine or transmission line is, or is reasonably expected to be, shut down or
negatively affected (as confirmed by the Independent Engineer), (Y) the
projected timing of any distributions pursuant to Section 5.02(f) and
(Z) any removal or relocation costs of the Company with respect to any
Wind Turbine or transmission line, while maintaining the Flip Date and the Class A
Yield from the original Base Case Model. 
Notwithstanding the foregoing, to the extent a Wind Turbine or
transmission line can be relocated or a NYSEG Event otherwise can be resolved,
the parties shall take such relocation or resolution and the timing thereof
into account when calculating the Relevant Damages.  Any Relevant Damages payable to EFS Noble
Holdings pursuant to this Section 3.02(e)(iii) shall be paid
by a distribution from the Company in priority to all other distributions
pursuant 

 

33

 

to Section 5.02(f) until
the amount of the Relevant Damages is paid in full.  If there is a Dispute with respect to a NYSEG
Event, the provisions of Section 9.04 relating to the escrow of
distributions shall apply.

 

(f)            It is expressly understood and agreed that
all representations and warranties set forth in this Section 3.02
shall terminate ninety (90) Days after the liquidation or dissolution of the
Company and shall inure to the benefit of the successors and assigns of each
Member; provided, however, that any representations and warranties that relate
to income taxes shall terminate ninety (90) Days after the expiration of the
applicable statute of limitations (as may be extended).

 

3.03        Dispositions and Encumbrances of Membership Interests.

 

(a)           General Restriction.  A Member may not Dispose of or Encumber all
or any portion of its Units or Membership Interest except in strict accordance
with this Section 3.03. 
(References in this Agreement to Dispositions or Encumbrances of a “Membership
Interest” shall also refer to Dispositions or Encumbrances of the corresponding
Units or a portion of a Membership Interest or the corresponding Units.  References in this Agreement to Dispositions
or Encumbrances of “Units” shall also refer to Dispositions or Encumbrances of
the corresponding Membership Interest represented by such Units.) Any attempted
Disposition or Encumbrance of any Unit or Membership Interest, other than in
strict accordance with this Section 3.03, shall be, and is hereby
declared, null and void ab initio.  The Members agree that a breach of the
provisions of this Section 3.03 may cause irreparable injury to the
Company and to the other Members for which monetary damages (or other remedy at
law) are inadequate in view of (i) the complexities and uncertainties in
measuring the actual damages that would be sustained by reason of the failure
of a Member to comply with such provision and (ii) the uniqueness of the
Company’s business and the relationship among the Members.  Accordingly, the Members agree that the
provisions of this Section 3.03 may be enforced by specific
performance.

 

(b)           Dispositions of Membership
Interests.

 

(i)            General Provision.  A Member may not
Dispose of all or any portion of its Units except by complying with all of the
following requirements:

 

(A)          Prior to the Flip Point.  Prior to the
occurrence of the Flip Point, the following rules apply:

 

(I)            Disposition
of more than forty-nine percent (49%) of the Class B Units held by a Class B
Member (in one Disposition or cumulatively in a series of Dispositions after
the Effective Date) (a) may be effected only upon the consent of the
Majority of Class A Members and (b) may not be made to any
Disqualified Transferee;

 

(II)           Disposition
of up to forty-nine (49%) or less of the Class B Units held by a Class B
Member (in one Disposition or cumulatively in a series of Dispositions after
the Effective Date) (a) shall not require the consent of the Class A
Members and (b) may not be made to any Disqualified Transferee; and

 

34

 

(III)         Disposition of Class A Units (a) may not be
made to a Disqualified Transferee, and (b) shall be made to an Approved
Investor who has expressly assumed the duties and obligations of the Class A
Members under the PAYG Agreement in proportion to the Class A Units
Disposed to such Person.

 

(B)           After
the Flip Point.  After the occurrence of the Flip Point, the
following rules apply:

 

(I)            Disposition of Class B Units by a Class B
Member shall not be subject to the consent of the Class A Members; and

 

(II)           Disposition of Class A Units by any Class A
Member (a) may not be made to any Disqualified Transferee, and (b) shall
be made to a Person who has expressly assumed the duties and obligations of
such Class A Member, if any, under the PAYG Agreement in proportion to the
Class A Units Disposed to such Person.

 

(C)           Compliance
with Requirements.  Such
Disposition must comply with the requirements of Section 3.03(b)(iii) and,
if the Assignee is to be admitted as a Member, Section 3.03(b)(ii).

 

(D)          Permitted Disposition;
Certain Other Dispositions. 
Notwithstanding anything to the contrary in this Section 3.03,
(1) the provisions of Sections 3.03(a), 3.03(b)(i) (other
than with respect to this Section 3.03(b)(i)(D) and Section 3.03(b)(i)(C)),
and 3.03(b)(iv) shall not apply to any Permitted Disposition, and (2) at
any time following the PTC Period, where (a) the Flip Point shall not
theretofore have occurred, and (b) the sum of all distributions under Section 5.02
to all Members is less than the sum of all cash contributions made to the
Company by the Class A Members, Members holding Class A Units shall
have the right to dispose of such Class A Units without restriction or
application of the provisions of Sections 3.03(b)(i) (other
than with respect to this Section 3.03(b)(i)(D) and Section 3.03(b)(i)(C)),
3.03(b)(iii)(F) or 3.03(b)(iv), and  (3) the provisions of Sections 3.03(b)(i) (other
than with respect to this Section 3.03(b)(i)(D) and Section 3.03(b)(i)(C)),
3.03(b)(iii)(C)(I), and 3.03(b)(iv) shall
not apply to Dispositions pursuant to Section 3.03(b)(v); provided,
nothing in this Section 3.03(b)(i)(D) shall permit the
Disposition of a Member Interest to a Disqualified Transferee.

 

(ii)           Admission
of Assignee as a Member.  An Assignee
pursuant to a Permitted Disposition shall be admitted as a Member promptly upon
its compliance with Section 3.03(b)(iii).  Any other Assignee has the right to be
admitted to the Company as a Member, with the Membership Interest so
transferred to such Assignee, only if (A) the Disposing Member making the
Disposition has granted the Assignee the Disposing Member’s entire Membership
Interest, or, in the case of Disposition of a part of such Member’s Membership
Interest, the express right to be so admitted; and (B) such Disposition is
effected in strict compliance with this Section 3.03.  Any Assignee that has acquired 

 

35

 

Class B
Units from the Initial Member in connection with the Disposition of all (but
not less than all) Class B Units then held by the Initial Member and which
has the right to be admitted to the Company shall become the replacement
Managing Member; provided, such an Assignee may only become the replacement
Managing Member if approved by the Required Voting Percentage acting in their
reasonable discretion.  For the avoidance
of doubt, the Disposition of any of its Class B Units by the Managing
Member as permitted by Section 3.03(b)(i)(A)(I), Section 3.03(b)(i)(A)(II) or
Section 3.03(b)(i)(B)(I) shall not result in the replacement
of the Managing Member other than as set forth in the immediately preceding
sentence.

 

(iii)          Requirements
Applicable to All Dispositions and Admissions. 
In addition to the requirements set forth in Sections 3.03(b)(i) and
3.03(b)(ii), any Disposition of a Membership Interest and any admission
of an Assignee as a Member shall also be subject to the following requirements,
and such Disposition (and admission, if applicable) shall not be effective
unless such requirements are complied with:

 

(A)          Disposition
Documents.  The following documents must be delivered to
the Managing Member, and in the case of Section 3.03(b)(iii)(A)(I),
each other Member, and must be satisfactory, in form and substance, to the
Managing Member:

 

(I)            Notice. 
Written notice not less than fifteen (15) Business Days prior to the
effective date of such Disposition.

 

(II)           Disposition
Instrument.  An instrument implementing the Disposition in
substantially the form of Exhibit E hereto or such other form
reasonably acceptable to the Managing Member.

 

(III)         Ratification of
this Agreement.  An instrument, executed by the Disposing
Member and its Assignee, containing the following information and agreements,
to the extent they are not contained in the instrument described in Section 3.03(b)(iii)(A)(II):  (1) the notice address of the Assignee; (2) if
applicable, the Parent(s) of the Assignee and the guarantor of the
Assignee’s obligations; (3) the percentage ownership of each class of
Membership Interest of the Disposing Member after the Disposition by such
Disposing Member (based on the number of Class A Units and Class B
Units held by the Disposing Member after the Disposition as compared to all Class A
Units and Class B Units held by all Members after the Disposition), and
its Assignee (based on the number of Class A Units and Class B Units
held by the Assignee after the Disposition, but excluding any Membership
Interest already held by Assignee prior to the Disposition, as compared to all Class A
Units and Class B Units held by all Members after the Disposition) (which
percentage ownership of each class of Membership Interest of the Disposing
Member and Assignee after the Disposition must total the percentage ownership
of each class of Membership Interest of Disposing Member prior to the
Disposition); (4) the Assignee’s ratification of and 

 

36

 

agreement
to be bound by this Agreement and its confirmation that the representations and
warranties in Section 3.02 hereof are true and correct with respect
to it; (5) the Assignee’s ratification of the Company’s execution of the
Principal Project Documents or other applicable documents; and (6) representations
and warranties by the Disposing Member and its Assignee that (x) the
Disposition and admission is being made in accordance with all Applicable Laws,
and (y) the conditions set forth in Sections 3.03(b)(iii)(B) through
(I) are true and correct.

 

(B)           Securities
Laws.  Such Disposition does not violate any
provision of Applicable Laws governing securities.

 

(C)           Tax
Consequences.

 

(I)            Termination. 
If such Disposition would occur prior to the later of (1) the
occurrence of the Flip Point and (2) the end of the PTC Period, such
Disposition will not result in a termination of the Company within the meaning
of Code Section 708, or if such Disposition may result in such a
termination, the Disposing Member shall agree to indemnify the Company and the
other Members against any and all losses (including the cost, determined using
a 9.26% discount rate, of any resulting deferral of a tax deductions or other
tax benefit (e.g., depreciation)) in the event such Disposition results in the
Company’s termination within the meaning of Code Section 708 pursuant to a
written indemnification agreement in form and substance (including with respect
to the creditworthiness of the indemnifying Person) satisfactory to the
adversely affected Members.

 

(II)           Entity
Classification.  Such Disposition will not cause the Company
to be classified as an entity other than a partnership (or cause the Company to
be treated as a publicly traded partnership taxable as a corporation) for
purposes of the Code.

 

(III)         PTCs. 
If such Disposition would occur prior to the end of the PTC Period, such
Disposition will not result in the disallowance of the PTCs otherwise accruing
to the Company; provided, if the Minority of Class A Members delivers to
the Company not later than five (5) Business Days prior to the effective
date of the Disposition (which effective date is prior to the occurrence of the
end of the PTC Period), a written opinion of a nationally recognized law firm
that there is substantial authority that such Disposition would result in the
disallowance of the PTCs otherwise accruing to the Company, such Disposition
shall nevertheless not be effective.

 

(D)          Payment of Expenses. 
The Disposing Member and its Assignee shall pay, or reimburse the
Company and each Member for, all reasonable costs and expenses incurred by the
Company and the Members in connection with the Disposition and admission, on or
before the tenth (10th) Day 

 

37

 

after
the receipt by that Person of the Company’s or such Member’s invoice for the
amount due.

 

(E)           No
Release.  No Disposition of a Membership Interest shall
effect a release of the Disposing Member from any liabilities to the Company or
the other Members arising from events occurring prior to or in connection with
the Disposition.

 

(F)           Institutional
Investor.  The transferee of any Class A Units
pursuant to such Disposition shall be (x) an Institutional Investor or a
Person whose obligations under this Agreement are guaranteed by an
Institutional Investor and (y) prior to the expiration of the Forbearance
Term (as defined in the Forbearance Agreement), an Approved Investor.

 

(G)           No
Adverse Energy Regulatory Impact.  No
Disposition of a Membership Interest shall result in: (a) the Company or
any Project Company being in violation of Section 203 of the FPA or Section 70
of the New York Public Service Law; (b) any Project Company ceasing to be
authorized by FERC to make sales of energy, capacity and ancillary services at
market-based rates, being in violation of the terms and conditions of its
market-based rate authorization, ceasing to hold any regulatory waiver or blanket
authorization granted to it as part of its market-based rate authorization or
otherwise being in violation of Section 205 of the FPA; or (c) a
Project Company ceasing to be an “exempt wholesale generator” as defined in the
Public Utility Holding Company Act of 2005 and FERC’s implementing regulations.

 

(H)          Investment Company
Act.  Such Disposition does not require the Company
to register as an “investment company” under the Investment Company Act of
1940, as amended.

 

(I)            Permits. 
All permits, consents and licenses, including all necessary Governmental
Approvals, with respect to such Disposition shall have been obtained.

 

(iv)          Change of Member
Control.  Prior to the Flip Point, a Change of Member
Control must also comply with the requirements of this Section 3.03.  Upon any Change of Member Control of the Class B
Member, the Class B Member shall cause to be delivered to the Class A
Members a valid and enforceable replacement or substitute of the Sponsor
Guaranty (or other credit support from a Person that meets the requirements set
forth in clauses (x) and (y) of Section 3.03(b)(iii)(F)),
in substantially the same form as the original Sponsor Guaranty and from an
entity reasonably  satisfactory to
the Majority of Class A Members. 
Upon any Change of Member Control of a Class A Member, the Class A
Member shall cause to be delivered to the Class B Member a valid and
enforceable replacement or substitute of any guaranty in favor of the Company
of such Class A Member’s obligations then required to be in effect, in
substantially the same form as the then existing guaranty and from an entity
reasonably  

 

38

 

satisfactory
to the Class B Member, or other credit support from a Person that meets
the requirements set forth in clauses (x) and (y) of
Section 3.03(b)(iii)(F).

 

(v)           Regulatory
Compliance.

 

(A)          Regulatory
Compliance Cooperation.  In the event
that any Member or the Managing Member reasonably determines that such Member
or the Company has or may in the future have a Regulatory Problem, the Company
and the Managing Member agree at the sole cost and expense (including costs and
expenses incurred by the Company and the Managing Member in relation to the
resolution of the Regulatory Problem, to include the fees of attorneys or other
advisors retained by the Company and the Managing Member, as well as a
reasonable time and materials fee to cover the efforts of the staff of the
Company and Managing Member) of the Member with or causing such Regulatory
Problem to take all such actions as are reasonably requested by such Member or
Managing Member in order (I) to effectuate and facilitate any transfer of
any Securities of the Company then held by such Member to any Person designated
by such Member; provided, Section 3.03(b)(iii) shall be
complied with (other than Section 3.03(b)(iii)(C)(I)), (II) to
permit such Member (or any of its Affiliates) to exchange all or any portion of
the voting Securities then held by such Person on a share-for-share basis for
shares of a Class of non-voting Securities of the Company, which
non-voting Securities shall be identical in all respects to such voting
Securities, except that such new Securities shall be non-voting and shall be
convertible into voting Securities on such terms as are requested by such
Member and reasonably acceptable to the Managing Member in light of regulatory
considerations then prevailing, and (III) to continue and preserve the
respective allocation of the voting interests with respect to the Company
arising out of such Member’s ownership of voting Securities before the
transfers and amendments referred to above (including entering into such
additional agreements as are reasonably requested by such Member to permit any
Person(s) designated by such Member to exercise any voting power which is
relinquished by such Member upon any exchange of voting Securities for
nonvoting Securities of the Company); and at the sole cost and expense of such
Member, the Company shall enter into such additional agreements, adopt such
amendments to this Agreement and other relevant agreements and take such
additional actions, in each case as are reasonably requested by such Member in
order to effectuate the intent of the foregoing; provided, any such additional
agreements, amendments to this Agreement or other relevant agreements, or other
actions shall not have an adverse impact on the Company or any other
Member.  If any Member is, or elects to
transfer Securities of the Company in order to avoid a Regulatory Problem to, a
Regulated Holder, the Company and each of the Members agree at the request of
such Member that the provisions of this Section 3.03(b)(v) shall
be applicable to such Regulated Holder in order to assist such Regulated Holder
in complying with Applicable Laws and regulations to which it is subject.  To the extent necessary to comply with such
laws and regulations, such agreements may include restrictions on the
redemption, repurchase or retirement of Securities of the Company that would result
or be 

 

39

 

reasonably
expected to result in such Regulated Holder holding more voting securities or
total securities (equity and debt) than it is permitted to hold under such laws
and regulations.  In the event any Member
has the right to acquire any of the Company’s Securities from the Company or
any other Person (as the result of a preemptive offer, pro rata offer or
otherwise), and such Member reasonably determines that it has a Regulatory
Problem, at such Member’s request the Company at the sole cost and expense of
such Member will offer to sell to such Member non-voting Securities (or, if the
Company is not the proposed seller, will arrange for the exchange of any voting
securities for non-voting securities immediately prior to or simultaneous with
such sale) on the same terms as would have existed had such Member acquired the
Securities so offered and immediately requested their exchange for non-voting
Securities pursuant to this Section 3.03(b)(v)(A).

 

(B)           Related
Covenants.

 

(I)            The Company shall provide at least fifteen (15) Days
prior written notice to each Member of a proposal to distribute voting or
equity securities to any Member or to repurchase voting or equity securities
from any Member.

 

(II)           If, in connection with a Regulatory Problem, at any
time as a result of any repurchase, redemption or conversion of Company
Securities or otherwise, a Member shall hold in excess of 4.99% of any class of
voting Securities of the Company, the portion of such Member’s Securities of
each such class of Securities entitling such Member to in excess of 4.99% of
the voting power of such class shall, without further action on the part of the
Member or the Company, be deemed to be non-voting Securities.

 

(c)           Encumbrances of Membership
Interest.  A
Member may Encumber its Membership Interest if the instrument creating such
Encumbrance provides that any Disposition upon foreclosure of such Encumbrance
(or Disposition in lieu of such foreclosure) must comply with the requirements
of Section 3.03(b)(iii).  Any
such Encumbrance, and any Disposition upon foreclosure of such Encumbrance (or
Disposition in lieu of such foreclosure) that complies with such requirements
shall be a Permitted Disposition, subject to the proviso in the definition
thereof.

 

(d)           Changes in Parent Ownership.

 

(i)            Subject to Section 3.03(d)(ii), in the
case of a Member that is a partnership or disregarded entity for federal tax
purposes, if any direct or indirect Disposition of interests in such Member’s
Parent (a “Parent Ownership Change”) occurs
prior to the later of (A) the occurrence of the Flip Point and (B) the
end of the PTC Period, and such Parent Ownership Change results in the Company’s
termination within the meaning of Code Section 708(b)(1)(B), such Member
shall indemnify the Company and the other Members against any and all tax
losses resulting from such termination (including the cost, determined using a 

 

40

 

***%
discount rate, of any resulting deferral of a tax deductions or other tax
benefit (e.g., depreciation)).

 

(ii)           The Initial Member or Sponsor may notify the Company
and the Class A Members if the Sponsor reasonably contemplates any Parent
Ownership Change that will result in a “sale or exchange” (within the meaning
of Code Section 708(b)(1)(B)) of any Units or Membership Interests or any
portion thereof during the following twelve (12) month period (an “NEP Disposition”).  If
notice of an NEP Disposition is given pursuant to this Section 3.03(d)(ii) (an
“NEP Disposition Notice”), the Class A
Members and their Affiliates shall cooperate with the Initial Member, Sponsor
and their Affiliates to avoid making any direct or indirect Disposition of
their respective Units or Membership Interests or any portion thereof prior to
the NEP Disposition that, taking into account the NEP Disposition, would result
in a termination of the Company within the meaning of Code Section 708(b)(1)(B);
provided, such obligation to cooperate shall not require any Class A
Member and its Affiliates to refrain from making any direct or indirect
Disposition of its Units or Membership Interests or any portion thereof.  If subsequent to and within months (12)
months of an NEP Disposition Notice, (A) any Class A Members Dispose
of any Units or Membership Interest or any portion thereof prior to the NEP
Disposition or there is a Parent Ownership Change with respect to any Class A
Member that results in a “sale or exchange” of any Units or Membership
Interests or any portion thereof, (B) the NEP Disposition occurs within
the six (6) month period following such Disposition(s) by the Class A
Member(s), (C) the NEP Disposition occurs within twelve (12) months of the
NEP Disposition Notice, (D) the NEP Disposition results in a termination
of the Company within the meaning of Code Section 708(b)(1)(B), and (E) but
for the Disposition by the Class A Members, the NEP Disposition would not
have resulted in a termination of the Company within the meaning of Code Section 708(b)(1)(B),
then notwithstanding anything in this Agreement to the contrary, the Initial
Member and such Class A Member(s) shall indemnify the Company and the
other Members, severally and in proportion to the respective transferred
Membership Interests, against any and all losses resulting from such termination  (including the cost, determined using a ***%
discount rate, of any resulting deferral of a tax deductions or other tax
benefit (e.g., depreciation)); provided, notwithstanding the foregoing, any
Dispositions made by EFS Noble Hoildings within the one month period following
the Effective Date shall not be taken into account for purposes of applying
this Section 3.03(d)(ii) to any NEP Disposition.  If an NEP Disposition Notice is given, but
such NEP Disposition does not occur during the subsequent twelve (12) month
period, no additional notice of an NEP Disposition may be given pursuant to
this Section 3.03(d)(ii) until the date six (6) months
following the end of such twelve (12) month period.

 

(e)           Drag-Along and Tag-Along
Rights.

 

(i)            Notwithstanding anything to the contrary in this
Agreement, after the Flip Point, if (A) the Class B Member has
received a Bona Fide Offer from a Bona Fide Purchaser, (B) the Class B
Member proposes to make a Disposition of 

 

41

 

all,
but not less than all, of its Class B Units to such Bona Fide Purchaser
pursuant to the terms of the Bona Fide Offer, and (C) the purchase price
offered for the Class A Units is at least the lowest Fair Market Value
within the range of Fair Market Values as determined pursuant to Section 3.03(e)(iii),
the Class B Member may elect to require that all other Members Dispose of
their respective Units to such Bona Fide Purchaser for such Fair Market Value
pursuant to the terms of such Bona Fide Offer. 
If the Class B Member elects to require the other Members to
Dispose of their respective Units pursuant to this Section 3.03(e)(i),
the Class B Member shall provide written notice of such proposed
Disposition (the “Drag-Along Notice”)
to all other Members not less than sixty (60) Days in advance of the proposed
closing of such Disposition.  The
Drag-Along Notice shall (i) set forth in reasonable detail the material
terms and conditions of the proposed Disposition, including, without
limitation, the proposed purchase price of the Class A Units and closing
date, (ii) include a copy of the Bona Fide Offer, and (iii) include a
certification that the Bona Fide Purchaser is not an Affiliate of the Class B
Member or a Disqualified Transferee.  The other Members shall take any actions
reasonable requested in writing by the Class B Member in connection with
the consummation of the Disposition to the Bona Fide Purchaser pursuant to the
Bona Fide Offer.

 

(ii)           Notwithstanding
anything to the contrary in this Agreement, after the Flip Point, if (A) the
Class B Member has received a Bona Fide Offer from a Bona Fide Purchaser, (B) the
Class B Member proposes to make a Disposition of all, but not less than
all, of its Class B Units to such Bona Fide Purchaser pursuant to the
terms of the Bona Fide Offer, and (C) the purchase price offered for the Class A
Units is at least the lowest Fair Market Value within a range of Fair Market
Values as determined pursuant to Section 3.03(e)(iii), the Class A
Members may elect (by vote of the Majority of Class A Members) to require
that the Class B Member purchase, or cause the Bona Fide Purchaser to
purchase, all other Members’ respective Units pursuant to the terms of such
Bona Fide Offer or, at the election of the Class B Member, at such Fair
Market Value if such Fair Market Value is determined by the Qualified Appraiser
under Section 3.03(e)(iii) to be higher than the Bona Fide
Offer.   If the Class A Members make
such election pursuant to this Section 3.03(e)(ii), the Class A
Members shall provide written notice of such proposed Disposition (the “Tag-Along Notice”) to all other Members not
less than thirty (30) Days in advance of the proposed closing of such
Disposition.  Upon receipt of the
Tag-Along Notice, the Class B Member shall provide to all Members a reply
notice which shall (i) set forth in reasonable detail the material terms
and conditions of the proposed Disposition, including, without limitation, the
proposed purchase price of the Class A Units and closing date, (ii) include
a copy of the Bona Fide Offer, and (iii) include a certification that the
Bona Fide Purchaser is not an Affiliate of the Class B Member or a
Disqualified Transferee.  The
other Members shall take any actions reasonable requested in writing by the Class B
Member in connection with the consummation of the Disposition to the Bona Fide
Purchaser pursuant to the Bona Fide Offer.

 

42

 

(iii)          The
Fair Market Value of the Units of the other Members subject to the drag-along
and tag-along rights set forth in this Section 3.03(e) shall
be as determined by the Bona Fide Purchaser except as otherwise provided in
this Section 3.03(e)(iii). 
Following the receipt of a Drag-Along Notice or the Class B Member’s
reply notice required by Section 3.03(e)(ii), the other Members
shall have the right, exercisable within thirty (30) Days of receipt of the
applicable notice, to request an appraisal of the Fair Market Value of their
Units by a Qualified Appraiser to be mutually agreed upon by the Class B
Member and the other Members. Within fifteen (15) Days following the
appointment of the Qualified Appraiser, such appraiser shall determine
initially whether the purchase price offered by the Bona Fide Purchaser is
within the range of the Fair Market Values of the Units utilizing valuation
methods and practices commonly used in the independent electric generating
industry, and taking into account all of the facts and circumstances relating
to the Company, including any cash reserves that may be held by the Company;
and if the purchase price offered by the Bona Fide Purchaser is not within such
range, the Qualified Appraiser shall determine the range of Fair Market Values
of the Units.  The decision of the
Qualified Appraiser shall be binding and conclusive on the Parties absent
manifest error.  If the lowest Fair
Market Value of the range determined by the Qualified Appraiser is greater than
the purchase price offered by the Bona Fide Purchaser, the other Members shall
not be required to Dispose of their Units for less than such lowest Fair Market
Value.  The Class B Member, on the
one hand, and the other Members, on the other hand, shall each pay fifty
percent (50%) of the fees and expenses of the Qualified Appraiser.

 

3.04        Creation of Additional Membership Interest.  Membership Interests additional to those in
effect on the Effective Date may be created only with the prior written consent
of the Required Voting Percentage so long as the creation of such additional
Membership Interests does not disproportionately adversely impact the Class A
Members.  If such creation and issuance
has been so approved, such Membership Interest shall be issued to existing
Members or to other Persons in each case as specified in such consent, and such
other Persons may be admitted to the Company as Members at the time, and on
such terms and conditions as may be specified in such consent.  The terms of admission or issuance pursuant
to such written consent must specify the allocation of items of income, gain, loss,
deduction or credit applicable thereto and may provide for the creation of
different classes or groups of Members having different rights, powers, and
duties.  The Managing Member shall
reflect the creation of any such new class or group in an amendment to this
Agreement indicating the different rights, powers, and duties.  Any such admission is effective only after
the new Member has executed and delivered to the Members an instrument
containing the notice address of the new Member, the Assignee’s ratification of
this Agreement and agreement to be bound by it, and its confirmation that the
representations and warranties in Section 3.02 hereof are true and
correct with respect to it.  The
provisions of this Section 3.04 shall not apply to Dispositions of
Membership Interests or admissions of Assignees in connection therewith, such
matters being governed by Section 3.03.

 

3.05        Access to Information.  Each Member shall be entitled to receive any
information that it may reasonably request concerning the Company; provided,
this Section 3.05 shall not obligate the Company or the Managing
Member to create any information that does not 

 

43

 

already exist at the time of
such request (other than to convert existing information from one medium to
another, such as providing a printout of information that is stored in a
computer database).  Each Member shall
also have the right, upon reasonable notice, and at all reasonable times during
usual business hours to inspect the properties of the Company and to audit,
examine and make copies of the books of account and other records of the
Company.  Such right may be exercised
through any agent or employee of such Member designated in writing by it or by
an independent public accountant, engineer, attorney or other consultant so
designated.  The Member making the
request shall bear all costs and expenses incurred in any inspection,
examination or audit made on such Member’s behalf.  All information obtained pursuant to this Section 3.05
shall be subject to the provisions of Section 3.06.

 

3.06        Confidential
Information.

 

(a)           With
respect to each of the Company, the Project Companies, the Members and their
respective Affiliates, except to the extent necessary for the exercise of its
rights and remedies, and the performance of its obligations, under this
Agreement, no Member shall itself use or disclose (and will not permit the use
or disclosure by any of its Affiliates or its advisors, counsel and public
accountants (collectively, “Advisors”)),
directly or indirectly, any of the Principal Project Documents or information
furnished thereunder (as to the Class Members and their Affiliates only),
or the Contribution Agreement or this Agreement or any information furnished
under such agreements, or any notes, analyses or studies prepared by the
Company, the Project Companies or any Member, its Affiliates or its Advisors,
and shall keep such information confidential and not use it in any way other
than in connection with the transactions contemplated hereby; provided, (i) any
Member may disclose such information to its Affiliates, (ii) any Member,
its Affiliates and its Advisors may use, retain and disclose any such
information to its special counsel and public accountants or any Governmental
Authority; (iii) any Member, its Affiliates and its Advisors may use,
retain and disclose any such information that (A) is or becomes generally
available to the public other than as a result of a disclosure in violation of
this Agreement, (B) was within its possession prior to the commencement of
the transaction contemplated hereby (including any discussions, meetings or
exchanges prior to the Effective Date), or (C) becomes available from a
source other than the Company, a Project Company or another Member or a Person
acting on behalf of any of the foregoing Persons; (iv) to the extent that
any Member, its Affiliates or its Advisors may have received a subpoena or
other written demand under color of legal right for such information, such
Member or such Affiliate or Advisor may disclose such information, but such
Person shall (A) as soon as practicable upon receipt of such demand,
furnish a copy thereof to the Company and the other Members and, if practicable
and so long as such Person shall not be in violation of such subpoena or demand
or likely to become liable to any penalty or sanctions thereunder, afford the
Company and the other Members reasonable opportunity, at their own cost and
expense, to obtain a protective order or other reasonably satisfactory
assurance of confidential treatment for the information required to be
disclosed, (B) cooperate with the Company and other Members to obtain an
appropriate protective order or other reasonably satisfactory assurance of
confidential treatment, and (C) disclose only that portion of such
information that its counsel advises is legally required to be disclosed; (v) any
Member, its Affiliates and its Advisors may disclose such information to
lenders, potential lenders or other Persons providing financing to the Company,
or to any other Member or its Affiliates, or to potential purchasers of equity
interests in the Company, in each case, if such Persons have agreed to abide by
the terms 

 

44

 

of this Section 3.06;
(vi) any Member, its Affiliates and its Advisors may disclose any such
information, and make such filings, as may be required by this Agreement or the
Principal Project Documents; (vii) any Member, its Affiliates and its
Advisors may disclose information relating to the Wind Farms (but not
information relating to a Member’s equity investment in the Company) to
lenders, potential lenders or other Persons providing financing to any Person
developing or proposing to develop the remaining phases of the Wind Farms and
potential purchasers of equity interests in such Person, if such Persons have
agreed to abide by the terms of this Section 3.06; (viii) any
Advisor that is an insurance company or an Affiliate thereof may disclose such
information to the National Association of Insurance Commissioners and any
rating agency requiring access to its investment portfolio; and (ix) any
Member may disclose any such information to the IRS or such other taxing
authority in connection with an audit or examination by the IRS or such taxing
authority related to or involving the Project, the Company, any Membership
Interest or Unit, or any income, gain, deduction, loss, credits or other items
allocated to a Member by the Company and any subsequent administrative or
judicial proceeding; provided, such Member must inform the Managing Member of
such disclosure and provide the Managing Member with any written correspondence
related to such disclosure. 
Notwithstanding anything herein to the contrary, any Member may disclose
information to its Affiliates and other advisors in accordance with this
Agreement if such Persons have agreed to abide by the terms of this Section 3.06.

 

(b)           Intentionally
omitted.

 

(c)           The
Members agree that no adequate remedy at law exists for a breach or threatened
breach of any of the provisions of this Section 3.06, the
continuation of which unremedied will cause the Company and the other Members
to suffer irreparable harm.  Accordingly,
the Members agree that the Company and the other Members shall be entitled, in
addition to other remedies that may be available to them, to immediate
injunctive relief from any breach of any of the provisions of this Section 3.06
and to specific performance of their rights hereunder, as well as to any other
remedies available at law or in equity.

 

(d)           The
obligations of the Members under this Section 3.06 shall terminate
on the third anniversary of the end of the Term, except to the extent such
obligations relate to a breach of this Section 3.06 on or prior to
such date.

 

(e)           Each
Member shall be responsible for any breach of this Section 3.06 by
its Advisors or Affiliates.

 

(f)            Notwithstanding
anything to the contrary, the foregoing obligations shall not apply to the tax
treatment or tax structure of any transaction contemplated by the Contribution
Agreement or this Agreement (the “Transaction”)
and each party hereto (and any employee, representative, or agent of any party)
may disclose to any and all persons, without limitation of any kind, the tax
treatment and tax structure of the Transaction and all other materials of any
kind (including opinions or other tax analyses) that are provided to any party
hereto to the extent relating to such tax treatment and tax structure.  This Section 3.06(f) is
intended to prevent the Transaction, including an investment in the Company,
from being treated as a “reportable transaction” as a result of it being a
transaction offered to a taxpayer under conditions of confidentiality within
the meaning of Code Sections 6011, 6111 and 6112 (or any successor 

 

45

 

provision) and the
Treasury Regulations thereunder (as clarified by Notice 2004-80 and Notice
2005-22) and shall be construed in a manner consistent with such purpose.

 

3.07        Liability to Third Parties.  No Member shall be personally liable for the
debts, obligations or liabilities of the Company, whether arising in contract,
tort or otherwise, solely by reason of being a Member.

 

3.08        Withdrawal.  A Member may not withdraw or resign from the
Company except as permitted by this Agreement.

 

ARTICLE 4.

CAPITAL CONTRIBUTIONS

 

4.01        Capital
Contributions.

 

(a)           The
Initial Member made Capital Contributions prior to the Effective Date. On the
Effective Date, the Initial Member made an additional Capital Contribution in
the amount indicated on Exhibit B hereto.  The Capital Account balance of the Initial
Member as of the Effective Date after giving effect to the foregoing Capital
Contributions shall be as indicated on Exhibit B hereto.

 

(b)           On
the Effective Date, each Class A Equity Investor shall make, by wire
transfer of immediately available funds to the account of the Company, the
Capital Contribution described for that Member in Exhibit B
hereto.  Each Class A Equity
Investor’s Capital Account balance as of the Effective Date shall be equal to
such Class A Equity Investor’s Capital Contribution on the Effective Date,
as indicated on Exhibit B hereto. 
From and after the Effective Date, the Class A Members shall make
additional Capital Contributions on subsequent Equity Capital Contribution
Dates as provided in the Contribution Agreement and as required from time to
time pursuant to the PAYG Agreement, and Exhibit B hereto shall be
revised to reflect such additional Capital Contributions.

 

(c)           Concurrently
upon receipt of the Capital Contributions to be made on the Effective Date as
provided in

Sections 4.01(a) and (b),

 

(i)            the Company shall apply the proceeds as required under
Section 2.2 of the Contribution Agreement and the Flow of Funds Memorandum
(as defined therein);

 

(ii)           the Membership Interest of the Initial Member shall
automatically be exchanged for a Class B Membership Interest, and
the Initial Member shall hold that number of Class B
Units, with an initial Capital Account balance, set forth opposite its name on Exhibit B;
and

 

(iii)          the Membership Interest issued to the Class A
Equity Investors shall be a Class A Membership Interest, and each Class A
Equity Investor shall hold that number of Class A Units, with initial
Capital Account balance, set forth opposite its name on Exhibit B.

 

46

 

4.02        Additional Capital Contributions. 
Except as otherwise provided in Sections 4.01 and 12.03
hereof and as provided under the PAYG Agreement, no Member shall be required to
make any Capital Contributions to the Company. 
If the Managing Member determines that additional funds are required to
enable the Company to cause its assets or any Project Company’s assets to be
properly operated and maintained and to pay and perform its costs, expenses,
obligations and liabilities, the Class B Members shall have the right to
make such additional Capital Contributions to the Company as they shall deem
necessary, the proceeds of which contributions shall be contributed by the
Company to any Project Company.

 

4.03        Loans by Members or
Affiliates. 
No Member shall be required to make any loans or otherwise lend any
funds to the Company.  With the approval
of a Majority of all Members in their reasonable discretion, any Member or its
Affiliate may (but shall not be obligated to) at any time, loan money or
guarantee a loan to the Company to finance Company operations or maintenance,
to finance or refinance any assets of the Company, to pay the debts and
obligations of the Company, or for any other Company purpose; provided,
however, (a) if prior to the Flip Point the Company does not have
sufficient cash to finance its current operations or pay its current
liabilities, any Member may loan money to the Company for such purpose upon the
affirmative vote of the Required Voting Percentage or (b) if during the
PTC Period any Class A Member fails to make a Capital Contribution
required under the PAYG Agreement, any other Class A Member may loan money
to the Company for such purpose without the approval of any other Member, and (c) if
any other Class A Member does not make such a loan described in preceding
clause (b) when such Capital Contribution becomes due, any Class B
Member may loan money to the Company for such purpose without the approval of
any other Member.  If any Member or its
Affiliate lends funds or guarantees a loan of funds to the Company, (x) such
Member or Affiliate shall be entitled to receive interest on such loan, or a
fee for guaranteeing any such loan, at an interest rate or fee to be agreed
upon by such Member and a Majority of all Members; provided, however, that any
loan from the Class B Member that does not require approval of the Members
pursuant to this Section 4.03 shall bear interest at a rate of
prime plus four percent (4%), (y) any such loan shall be for a fixed term
and (z) any such loan shall be unsecured and subordinated to the Company’s
obligations under the Debt Financing Documents.

 

4.04        Return of Contributions.  Except as expressly provided herein, a Member
is not entitled to the return of any part of its Capital Contributions or to be
paid interest in respect of either its Capital Account or its Capital
Contributions.  An unrepaid Capital
Contribution is not a liability of the Company or of any Member.

 

4.05        Capital Accounts.

 

(a)           A
Capital Account shall be established and maintained for each Member in
accordance with the following provisions and the initial Capital Account
balance for each Member on the Effective Date (after giving effect to the
Capital Contributions on the Effective Date) shall be as set forth on Exhibit B:

 

(i)            To each Member’s Capital Account there shall be
credited (A) such Member’s Capital Contributions, (B) such Member’s
distributive share of Profits and any items in the nature of income or gain
that are specially allocated pursuant to Section 5.01(b), Section 5.01(c),
Section 5.01(d) or 

 

47

 

Section 12.02(a), and (C) the amount of any
Company liabilities assumed by such Member or that are secured by any Property
distributed to such Member.  The
principal amount of a promissory note that is not readily traded on an
established securities market and that is contributed to the Company by the
maker of the note (or a Member related to the maker of the note within the
meaning of Treasury Regulation Section 1.704-1(b)(2)(ii)(c)) shall not be
included in the Capital Account of any Member until the Company makes a taxable
disposition of the note or until (and to the extent) principal payments are
made on the note, all in accordance with Treasury Regulation Section 1.704-1(b)(2)(iv)(d)(2);

 

(ii)           To each Member’s Capital Account there shall be
debited (A) the amount of money and the Gross Asset Value of any Property
distributed to such Member pursuant to any provision of this Agreement
(including pursuant to Section 5.02 or Section 12.02(a)),
(B) such Member’s distributive share of Losses and any items in the nature
of deductions or losses that are specially allocated pursuant to Section 5.01(b),
Section 5.01(c), Section 5.01(d) or Section 12.02(a),
and (C) the amount of any liabilities of such Member assumed by the
Company or that are secured by any Property contributed by such Member to the
Company;

 

(iii)          In the event Units are Disposed of in accordance with
the terms of this Agreement, the transferee shall succeed to the Capital Account
of the transferor to the extent it relates to the Units so Disposed of; and

 

(iv)          In determining the amount of any liability for
purposes of Sections 4.05(a)(i) and (ii) there shall be
taken into account Code Section 752(c) and any other applicable provisions
of the Code and Treasury Regulation.

 

(b)           This
Section 4.05 and the other provisions of this Agreement relating to
the maintenance of Capital Accounts are intended to comply with Treasury
Regulation Section 1.704-1(b), and shall be interpreted and applied in a
manner consistent with such Treasury Regulation.  In the event the Managing Member shall
determine that it is prudent to modify the manner in which the Capital
Accounts, or any debits or credits thereto (including, without limitation,
debits or credits relating to liabilities that are secured by contributed or
distributed property or that are assumed by the Company or any Members), the
Managing Member may make such modification, provided that it is not likely to
have a material effect on the amounts distributed to any Person pursuant to Article 12
upon the dissolution of the Company.  The
Managing Member also shall (i) make any adjustments that are necessary or
appropriate to maintain equality between the Capital Accounts of the Members
and the amount of capital reflected on the Company’s balance sheet, as computed
for book purposes, in accordance with Treasury Regulation Section 1.704-1(b)(2)(iv)(q) and
(ii) make any appropriate modifications in the event unanticipated events
might otherwise cause this Agreement not to comply with Treasury Regulation Section 1.704-1(b).

 

(c)           As
a book keeping matter only, in the case of a Member that holds a Class A
Membership Interest and a Class B Membership Interest, the Capital Account
of such Member shall be maintained separately for its Class A Membership
Interest and its Class B Membership Interest, and all contributions,
allocations and distributions to such Member with respect to its 

 

48

 

Class A
Membership Interest and Class B Membership Interest shall be reflected
only in the Capital Account maintained with respect to its Class A
Membership Interest or Class B Membership Interest, as applicable.

 

ARTICLE 5.

DISTRIBUTIONS AND ALLOCATIONS

 

5.01        Allocations.

 

(a)           General.  After giving effect to the special
allocations set forth in Section 5.01(b) and the Regulatory
Allocations set forth in Section 5.01(c), and subject to Section 5.01(d),
Profits and Losses, any other items of income, gain, loss or deduction and
credits (including PTCs) for any Allocation Year shall be allocated to the
Members in the following order and priority:

 

(i)            First, prior to and until the Flip Point shall occur,
100% to the Class A Members in accordance with their Pro Rata Shares; and

 

(ii)           Second, subject to Section 5.03, after the
Flip Point shall occur, (A) 5.00% to the Class A Members in
accordance with their Pro Rata Shares and (B) 95.00% to the Class B
Members in accordance with their Pro Rata Shares, subject to adjustment of such
percentages to the extent required pursuant to Section 5.06(b)(vi)(C) or
Section 5.06(b)(vii)(B).

 

(b)           Special Allocations.  The following special allocations shall be
made in the following order:

 

(i)            Company
Minimum Gain Chargeback. 
Notwithstanding the other provisions of this Section 5.01,
except as provided in Treasury Regulation Section 1.704-2(f), if there is
a net decrease in Company Minimum Gain during any Allocation Year, each Member
shall be specially allocated items of Company income and gain for such
Allocation Year (and, if necessary subsequent Allocation Years) in an amount
equal to such Member’s share of the net decrease in Company Minimum Gain,
determined in accordance with Treasury Regulation Section 1.704-2(g).  Allocations pursuant to the previous sentence
shall be made in proportion to the respective amounts required to be allocated
to each Member pursuant thereto.  The
items to be so allocated shall be determined in accordance with Treasury
Regulation Sections 1.704-2(f)(6) and 1.704-2(j)(2).  This Section 5.01(b)(i) is
intended to comply with the minimum gain chargeback requirement in Treasury
Regulation Section 1.704-2(f) and shall be interpreted consistently
therewith.

 

(ii)           Chargeback
of Minimum Gain Attributable to Member Nonrecourse Debt. 
Notwithstanding the other provisions of this Section 5.01,
except as provided in Treasury Regulation Section 1.704-2(i)(4), if there
is a net decrease in Member Nonrecourse Debt Minimum Gain attributable to a
Member Nonrecourse Debt during any Allocation Year, each Member who has a share
of the Member 

 

49

 

Nonrecourse
Debt Minimum Gain attributable to such Member Nonrecourse Debt, determined in
accordance with Treasury Regulation Section 1.704-2(i)(5), shall be
specially allocated items of Company income and gain for such Allocation Year
(and, if necessary, subsequent Allocation Years) in an amount equal to such
Member’s share of the net decrease in Member Nonrecourse Debt, determined in
accordance with Treasury Regulation Section 1.704-2(i)(4).  Allocations pursuant to the previous sentence
shall be made in proportion to the respective amounts required to be allocated
to each Member pursuant thereto.  The
items to be so allocated shall be determined in accordance with Treasury
Regulation Sections 1.704-2(i)(4) and 1.704-2(j)(2).  This Section 5.01(b)(ii) is
intended to comply with the partner nonrecourse minimum gain chargeback
requirement in Treasury Regulation Section 1.704-2(i)(4) and shall be
interpreted consistently therewith.

 

(iii)          Qualified Income
Offset.  In the event any Member unexpectedly receives
any adjustments, allocations or distributions described in Treasury Regulation
Sections 1.704-1(b)(2)(ii)(d)(4), (5) or (6), items of Company income
and gain shall be specially allocated to such Member in an amount and manner
sufficient to eliminate, to the extent required by Treasury Regulations, the
Adjusted Capital Account Deficit of the Member as quickly as possible,
provided, an allocation pursuant to this Section 5.01(b)(iii) shall
be made only if and to the extent that such Member would have an Adjusted
Capital Account Deficit after all other allocations provided for in this Section 5.01
have been tentatively made as if this Section 5.01(b)(iii) were
not in this Agreement.

 

(iv)          Gross Income
Allocation.  In the event any Member has an Adjusted
Capital Account Deficit at the end of any Allocation Year, each such Member
shall be specially allocated items of Company income and gain in the amount of such
Adjusted Capital Account Deficit as quickly as possible; provided, an
allocation pursuant to this Section 5.01(b)(iv) shall be made
only if and to the extent that such Member would have an Adjusted Capital
Account Deficit after all other allocations provided for in this Section 5.01
have been made as if Section 5.01(b)(iii) and this Section 5.01(b)(iv) were
not in this Agreement.

 

(v)           Nonrecourse
Deductions.  Nonrecourse Deductions for any Allocation
Year shall be specially allocated to the Members in accordance with either Section 5.01(a)(i) or
Section 5.01(a)(ii), as in effect at the time the Nonrecourse
Deduction arises.

 

(vi)          Member Nonrecourse
Deductions.  Any Member Nonrecourse Deductions for any
Allocation Year shall be specially allocated to the Member who bears the
economic risk of loss with respect to the Member Nonrecourse Debt to which such
Member Nonrecourse Deductions are attributable in accordance with Treasury
Regulation Section 1.704-2(i)(1).

 

(vii)         Section 754
Adjustments.  To the extent an adjustment to the adjusted
tax basis of any Company asset pursuant to Code Section 734(b) or Section 743(b) is
required pursuant to Treasury Regulation Section 1.704-1(b)(2)(iv)(m)(2) 

 

50

 

or
Section 1.704-1(b)(2)(iv)(m)(4) to be taken into account in
determining Capital Accounts as the result of a distribution to a Member in
complete liquidation of such Member’s interest in the Company, the amount of
such adjustment to Capital Accounts shall be treated as an item of gain (if the
adjustment increases the basis of the asset) or loss (if the adjustment
decreases such basis) and such gain or loss shall be specially allocated to the
Members in accordance with either Section 5.01(a)(i) or Section 5.01(a)(ii),
as in effect at the time of the adjustment, in the event Treasury Regulation Section 1.704-1(b)(2)(iv)(m)(2) applies,
or to the Member to whom such distribution was made in the event Treasury
Regulation Section 1.704-1(b)(2)(iv)(m)(4) applies.

 

(viii)        Items in Connection
with Liquidation.  Profits and Losses, any
other items of income, gain, loss or deduction and credits (including PTCs) for
the Allocation Year in which there is a disposition of all or substantially all
of the assets of the Company pursuant to Section 12.02(a)(iii) shall
be specially allocated pursuant to Sections 12.02(a)(iv) and 12.02(a)(v).

 

(ix)           Certain
Supplemental Allocations.  If any
distributions are made to a Class A Member pursuant to Section 5.02(d)(ii) or
Section 5.02(e) for any Allocation Year, items of income and
gain for such Allocation Year in an amount equal to the aggregate amount of
such distributions that otherwise would have been allocated to the Class B
Members shall be specially allocated to such Class A Member.

 

(c)           Curative Allocations.  The allocations set forth in Sections 5.01(b)(i) through
(vii) and Section 5.01(d) (the “Regulatory
Allocations”) are intended to comply with certain
requirements of the Treasury Regulations. 
It is the intent of the Members that, to the extent possible, all
Regulatory Allocations shall be offset either with other Regulatory Allocations
or with special allocations of other items of Company income, gain, loss, or
deduction pursuant to this Section 5.01(c).  Therefore, notwithstanding any other
provisions of this Section 5.01, the Regulatory Allocations shall
be taken into account in allocating items of income, gain, loss, deduction and
credit among the Members such that, to the extent possible, the net amount of
allocations of such items and the Regulatory Allocations to each Member shall
be equal to the net amount that would have been allocated to each Member if the
Regulatory Allocations had not occurred and all Company items were allocated
pursuant to Sections 5.01(a), 5.01(b)(viii), 12.02(a)(iv) and
12.02(a)(v).

 

(d)           Loss Limitations.  Losses allocated pursuant to Section 5.01(a) and
any items of loss or deduction allocated pursuant to Section 5.01(b)(viii) and
Sections 12.02(a)(iv) and (v) shall not exceed the
maximum amount of Losses and other items of loss or deduction that can be
allocated without causing any Member to have an Adjusted Capital Account
Deficit at the end of any Allocation Year. 
In the event some but not all of the Members would have Adjusted Capital
Account Deficits as a consequence of an allocation of Losses pursuant to Section 5.01(a) or
any items of loss or deduction allocated pursuant to Section 5.01(b)(viii) or
Section 12.02(a)(iv) and (v), the limitation set forth in
this Section 5.01(d) shall be applied on a Member by Member
basis and Losses and items of loss or deduction not allocable to any Member as
a result of such limitation shall be allocated to the other Members pursuant to
Sections 5.01 and 12.02 to the 

 

51

 

extent such other
Member’s have positive balances in their Capital Accounts so as to allocate the
maximum permissible Losses to each Member under Treasury Regulation Section 1.704-1(b)(2)(ii)(d).

 

(e)           Other Allocation Rules.

 

(i)            For purposes of determining the Profits, Losses, or
any other items allocable to any period, Profits, Losses, and any such other
items shall be determined on a daily, monthly, or other basis, as determined by
the Managing Member using any permissible method under Code Section 706
and the Treasury Regulations thereunder.

 

(ii)           The Members are aware of the income tax consequences
of the allocations made by this Section 5.01 and Section 12.02(a) and
hereby agree to be bound by the provisions of this Section 5.01 and
Section 12.02(a) in reporting their shares of Company income
and loss for income tax purposes.

 

(iii)          Solely for purposes of determining a Member’s
proportionate share of the “excess nonrecourse liabilities” of the Company
within the meaning of Treasury Regulation Section 1.752-3(a)(3), the
Members’ interests in Company profits are in accordance with their
proportionate allocations under Section 5.01(a)(i) or Section 5.01(a)(ii),
as in effect at the time of the adjustment.

 

To the extent permitted by Treasury
Regulation Section 1.704-2(h)(3), the Managing Member shall endeavor to
treat distributions of Distributable Cash as having been made from the proceeds
of a Nonrecourse Liability or a Member Nonrecourse Debt only to the extent that
such distributions would cause or increase an Adjusted Capital Account Deficit
for any Member.

 

(f)            Income Tax
Allocations:  Code Section 704(c).  Except as otherwise provided in this Section 5.01(f),
each item of income, gain, loss, and deduction of the Company for federal
income tax purposes shall be allocated among the Members in the same manner as
such items are allocated for book purposes pursuant to this Section 5.01.  In accordance with Code Section 704(c) and
the Treasury Regulations thereunder, income, gain, loss, and deduction with respect
to any Property contributed to the capital of the Company shall, solely for tax
purposes, be allocated among the Members so as to take account of any variation
between the adjusted basis of such Property to the Company for federal income
tax purposes and its initial Gross Asset Value (computed in accordance with the
definition of Gross Asset Value) using the remedial allocation method permitted
by Treasury Regulation Section 1.704-3(d). 
In the event the Gross Asset Value of any Company asset is adjusted
pursuant to subsection (b) of the definition of Gross Asset Value,
subsequent allocations of income, gain, loss, and deduction with respect to
such asset shall take account of any variation between the adjusted basis of
such asset for federal income tax purposes and its Gross Asset Value in the
same manner as under Code Section 704(c) and the Treasury Regulations
thereunder.  Any elections or other
decisions relating to such allocations shall be made by the Managing Member in
any manner that reasonably reflects the purpose and intention of this
Agreement; provided, for the avoidance of doubt, any items of loss or deduction
attributable to property contributed by a Member shall, to the extent of an
amount equal to the excess of (A) the federal income tax basis of such
property at the time of its 

 

52

 

contribution over (B) the
Gross Asset Value of such property at such time, be allocated in its entirety
to such contributing Member and the tax basis of such property for purposes of
computing the amounts of all items allocated to any other Member (including a
transferee of the contributing Member) shall be equal to its Gross Asset Value
upon its contribution to the Company. 
Allocations pursuant to this Section 5.01(f) are solely
for purposes of federal, state, and local taxes and shall not affect, or in any
way be taken into account in computing, any Member’s Capital Account or share
of Profits, Losses, other items, or distributions pursuant to any provision of
this Agreement.

 

5.02        Distributions.  Subject to Sections 9.03(b) and
12.02(a)(vi), Distributable Cash shall be distributed to the Members on
each Distribution Date on which the Company has Distributable Cash, in the
following order and priority:

 

(a)           First,
subject to Section 5.02(f), 100% to the Class B Members in accordance with their Pro Rata Shares
until the earlier of (i) the sum of the aggregate amount of Distributable
Cash that has been distributed to such Class B Members equals the
aggregate amount of Capital Contributions made by the Class B Members with
respect to Class B Units and (ii) April 30, 2012;

 

(b)           Second,
100% to the Class A Members in accordance with their Pro Rata Shares until
the Flip Point shall occur; provided, however, if the point as of which the Class A
Units are determined under the procedures set forth in Section 5.06  to first have realized the Flip Rate has
occurred without reaching the Flip Point, the Managing Member shall cause 95%
of the Distributable Cash to be paid to the Lenders under the Debt Financing
Agreement until the obligations have been fully satisfied but only to the
extent that the Class A Members net after-tax cash flow with respect to
such 95% of Distributable Cash (assuming full realization of Tax Benefits and
Tax Costs under the Tax Assumptions) would not be less than zero in a fiscal
year in which such 95% of the Distributable Cash is paid to the Lenders under
the Debt Financing Agreement and the remaining 5% of Distributable Cash shall
be paid to the Class A Members in accordance with their Pro Rata Shares;
and

 

(c)           Third,
subject to Sections 5.02(d) and 5.03, 5.00% to the Class A
Members in accordance with their Pro Rata Shares and 95.00% to the Class B
Members in accordance with their Pro Rata Shares, subject to adjustment of such
percentages to the extent required pursuant to Section 5.06(b)(vi)(C) or
Section 5.06(b)(vii)(B).

 

(d)           Notwithstanding
Sections 5.02(c), if, after the Flip Point and after taking into
account any Capital Contributions made or required to be made by the Class A
Members pursuant to the PAYG Agreement and distributions made or required to be
made as a result of a recalculation under Section 5.06(b)(vii) and
changes in allocations described therein, the Class A Members’ Internal
Rate of Return is at any time or from time to time less than the Flip Rate,
then:

 

(i)            first, Distributable Cash that otherwise would be
distributed to the Class B Members pursuant Section 5.02(c) shall
instead be distributed to the Class A Members in accordance with their Pro
Rata Shares until the Class A Members’ Internal Rate of Return equals the
Flip Rate; provided, distributions to 

 

53

 

a
Class A Member pursuant to this Section 5.02(d)(i) shall
be made only to the extent that they do not cause that Class A Member to
have an Adjusted Capital Account Deficit; and

 

(ii)           second, if the Class A Members’ Internal Rate of
Return would still be less than the Flip Rate after giving effect to
distributions pursuant to Section 5.02(d)(i), then (A) Distributable
Cash that otherwise would be distributed to the Class B Members pursuant
to Section 5.02(c) shall instead be distributed to the Class A
Members in accordance with their Pro Rata Shares to the extent necessary and to
the greatest extent possible to cause the Class A Members’ Internal Rate
of Return to equal the Flip Rate; and (B) corresponding allocations of
income and gain shall be made pursuant to Section 5.01(b)(ix);
provided, however, any distribution to a Class A Member during an
Allocation Year pursuant to this Section 5.02(d)(ii) shall not
exceed the income and gain allocations to such Class A Member during such
Allocation Year pursuant to Section 5.01(b)(x), such that the
distribution pursuant to this Section 5.02(d)(ii) shall be
matched on a dollar for dollar basis by income and gain allocation pursuant to Section 5.01(b)(x) within
any Allocation Year.

 

(e)           Notwithstanding
Sections 5.02(a)–(d), Distributable Cash in an amount equal to any
payments received by the Company in connection with or as indemnification
pursuant to the terms of this Agreement or compensation or reimbursement to the
extent that the Company is compensated or reimbursed (e.g., business
interruption insurance proceeds) for the loss of the PTCs shall be distributed
as follows: (x) to the extent relating to the period prior to the Flip
Point, 100% to the Class A Members in accordance with their Pro Rata
Shares and (y) to the extent relating to the period after the Flip Point,
in accordance with the sharing ratios set forth in Section 5.02(c).

 

(f)            Notwithstanding
Section 5.02(a), Distributable Cash in an amount equal to the
Relevant Damages calculated under Section 3.02(d)(iii) or 3.02(e)(iii) shall
be distributed to EFS Noble Holdings or any successor to the Class A Units
held by EFS Noble Holdings on the Effective Date.  For the avoidance of doubt, any distribution
pursuant to this Section 5.02(f) shall have priority over, and
shall be senior to, any distributions pursuant to Section 5.02(a).

 

5.03        Adjustment of Post-Flip Allocations and Distributions.  Notwithstanding anything to the contrary set
forth in this Agreement, in the event that the Appeal Proceeding has been
perfected but (a) an order has not been issued by the New York State
Appellate Division, Third Department, dismissing the Appeal Proceeding or
otherwise resolving the Appeal Proceeding by maintaining the Governmental
Approvals necessary for the construction and operation of either or both of the
Affected Wind Farms or (b) an order has been issued by the New York State
Appellate Division, Third Department, remanding one or more of the issues
considered in the Appeal Proceeding or invalidating one or more of the
Governmental Approvals necessary for the construction or operation of either or
both of the Affected Wind Farms, and (1) the Company or the applicable
Project Companies do not fully satisfy all conditions of such order and obtain
modifications to the existing Governmental Approvals or new Governmental
Approvals, as applicable, in each case that are not materially adverse to the
construction or operation of either or both of the Affected Wind Farms, prior
to the relevant dates set forth in 

 

54

 

clause (i) or (ii) below,
and (2) in the case of clause (i) below, the Class A
Members have funded their respective Equity Capital Contributions on the
Initial Equity Capital Contribution Date notwithstanding that one or more
conditions to such Equity Capital Contributions may not be satisfied in
connection with such remand or invalidation, in either of case (a) or
(b) above (i) on or prior to the Initial Equity Capital Contribution
Date, the references in Sections 5.01(a)(ii), 5.02(c) and
12.02(a)(v)(D) to 5.00% and 95.00% shall be changed to 6.62% and
93.38%, respectively, or (ii) by the date that is six (6) months
after the Initial Equity Capital Contribution Date, the references in Sections 5.01(a)(ii),
5.02(c) and 12.02(a)(v)(D) to 5.00% and 95.00% shall be
changed to 8.23% and 91.77%, respectively; provided that the foregoing
clauses (i) and (ii) shall not apply if (x) an order has
been issued by the New York State Appellate Division, Third Department,
remanding one or more of the issues considered in the Appeal Proceeding or
invalidating one or more of the Governmental Approvals necessary for the
construction or operation of either or both of the Affected Wind Farms, and (y) the
Company or the applicable Project Companies fully satisfy all conditions of
such order and obtain modifications to the existing Governmental Approvals or
new Governmental Approvals, as applicable, in each case that are not materially
adverse to the construction or operation of either or both of the Affected Wind
Farms, prior to the relevant date referenced in the foregoing clause (i);
and provided further, that the foregoing clause (ii) shall not apply
if (x) an order has been issued by the New York State Appellate Division,
Third Department, remanding one or more of the issues considered in the Appeal
Proceeding or invalidating one or more of the Governmental Approvals necessary
for the construction or operation of either or both of the Affected Wind Farms
and the foregoing clause (i) applies in connection with such order
and (y) the Company or the applicable Project Companies fully satisfy all
conditions of such order and obtain modifications to the existing Governmental
Approvals or new Governmental Approvals, as applicable, in each case that are
not materially adverse to the construction or operation of either or both of
the Affected Wind Farms, after the date referenced in the foregoing
clause (i) but prior to the date referenced in the foregoing
clause (ii), in which case the references in Sections 5.01(a)(ii),
5.02(c) and 12.02(a)(v)(D) to 5.00% and 95.00% shall be
changed to 6.62% and 93.38%, respectively.

 

5.04        Intentionally Omitted.

 

5.05        Intentionally Omitted.

 

5.06        Calculation of Flip Point.

 

(a)           Monthly Calculation;
Liquidation Calculation.

 

(i)            After the end of each calendar month and prior to the
Distribution Date for such month, the Managing Member shall determine in good
faith whether a calculation as of such Distribution Date is necessary in order
for the Managing Member to conclude whether the Flip Point has occurred during
the preceding calendar month.  If the
Managing Member (i) determines that no calculation is necessary, or (ii) determines
after calculation in the manner described in this Section 5.06(a) that
the Flip Point has not occurred during such month, then on the Distribution
Date the Managing Member shall so notify the Members.

 

55

 

(ii)           If the Managing Member calculates, in the manner
provided in this Section 5.06, that the Flip Point has occurred
during a calendar month, then no less than thirty (30) Days prior to the
Distribution Date, the Managing Member shall provide such calculation to the Class A
Members in the form of the Tracking Model attached hereto as Exhibit F
(the “Tracking Model”) and
prepared in accordance with the calculation rules and conventions of this Section 5.06,
specifying the Flip Point, the portion of the Distributable Cash which is to be
distributed in accordance with Sections 5.02(a) and 5.02(b),
the portion of the Distributable Cash which is to be distributed in accordance
with Section 5.02(c), the portion of the tax attributes of the
Company which are to be allocated under Section 5.01(a)(i), and the
portion to be allocated under Section 5.01(a)(ii), as applicable

 

(iii)          Prior to making any liquidating distribution pursuant
to Section 12.02(a)(vi), the Managing Member shall make a
calculation, in the manner described in this Section 5.06, as to
whether the Flip Point will occur in connection with the liquidation of the
Company. No less than thirty (30) Days prior to making such distribution, the
Managing Member shall provide such calculation to the Class A Members in
the form of the Tracking Model attached hereto as Exhibit F and
prepared in accordance with the calculation rules and conventions of this Section 5.06,
specifying the Flip Point (or stating that the Managing Member has concluded
that it will not occur), the portion of the Liquidation Proceeds which is to be
distributed to each Member in accordance with Section 12.02(a)(vi),
and the proportions in which the tax attributes of the Company for the
Allocation Year in which the liquidation occurs are to be allocated in
accordance with Sections 12.02(a)(iv) and 12.02(a)(v).

 

(iv)          In the event that no objection to a calculation
provided to the Class A Members under Section 5.06(a)(ii) or Section 5.06(a)(iii) is
received by the Managing Member from the Majority of Class A Members at
least five (5) Days prior to the Distribution Date or the Liquidation
Date, as the case may be, then the Flip Point shall be deemed to have occurred
as specified in such calculation (subject to adjustment for the Curative Flip
Allocation under Section 5.06(b)(vii)) and the distribution of
Distributable Cash or Liquidation Proceeds, and the allocation of tax
attributes for the applicable taxable period, shall be made in the manner
specified in such calculation.  In the
event that such an objection is received by the Managing Member, then the
determination of the Flip Point and the making of the distribution (and all
subsequent distributions of Distributable Cash or Liquidation Proceeds) shall
be suspended until the Flip Point and the allocation of distributions and
allocation of tax attributes is finally determined under the dispute resolution
procedures set forth in Section 11.03.

 

(b)           Calculation Rules and
Conventions. 
The Managing Member shall employ the following calculation rules and
conventions in determining the Flip Point:

 

(i)            Per
Unit Basis.
The calculation shall be made on the basis of a Class A Unit.

 

56

 

(ii)           Continuity
of Ownership.
The Managing Member shall treat ownership of the Class A Units as being
continuous from the Effective Date to the Distribution Date as of which the
calculation is being made without regard to any change in ownership of any Class A
Units during such period.

 

(iii)          Cash Flows. 
For purposes of determining the Internal Rate of Return, the cash flows
to be taken into account with respect to each Class A Unit (the “Cash Flows”) shall consist solely of,
without duplication, (i) the Capital Contributions with respect to such Class A
Unit, (ii) pro rata distributions made with respect to such Class A
Units pursuant to Section 5.02(b) on any Distribution Date or
Liquidation Date, distributions made pursuant to Section 5.02(d) and
5.02(f), any tax distributions made to Class A Members that are
separately identified as tax distributions, and distributions to be made with
respect to such Class A Unit pursuant to Section 12.02(a)(vi) on
the Liquidation Date to the extent such Liquidation Date distributions are
attributable to pro rata allocations pursuant to Section 12.02(a)(v)(C) (or
to be made on the Distribution Date or Liquidation Date as of which the
Internal Rate of Return is being determined), and (iii) the net Tax Costs
or Tax Benefits determined in accordance with Section 5.06(b)(iv) to
be paid or received with respect to such Class A Unit on any Tax Payment
Date.  Any amount received by holders of Class A
Units, which is in the nature of a recovery or replacement of, or indemnity or compensation
for, and is the substantial economic equivalent of, an item which would
otherwise be taken into account in the preceding clauses (i)–(iii) of
this Section 5.06(b)(iii) (including, without limitation, the
deemed recognition of PTCs pursuant to Section 6.06(d), amounts
paid or distributed to the Class A Members pursuant to Section 9.03,
the Sponsor Guaranty or Article 12) shall be taken into account for
purposes of the calculation of the Internal Rate of Return on the date so
received by such holders.

 

(iv)          Tax Costs and Tax
Benefits.  Tax Costs and Tax Benefits shall be
determined as follows:

 

(A)          Tax Costs and Tax Benefits shall be calculated on the
basis of the following tax assumptions (consistent with the Base Case
Model):  (i) the applicable federal
income tax rate is 35% (and any state, local, foreign or other income taxes are
inapplicable), (ii) with respect to the Wind Turbines that are treated
(pursuant to Section 7.03(c)(ii)) as having been placed in service
on or before the Effective Date, the applicable depreciation periods, methods
and conventions are set forth in the Base Case Model, and with respect to any
Wind Turbines that are treated (pursuant to Section 7.03(c)(ii)) as
having been placed in service after the Effective Date, the applicable
depreciation periods set forth in the Base Case Model; provided, the
assumptions regarding such depreciation periods, methods and conventions, as
applicable, shall not include the following: (w) the amounts used for such
depreciation periods, methods and conventions, (x) the amounts allocated
to particular assets, (y) the date on which any Wind Turbines that are
treated (pursuant to Section 7.03(c)(ii)) as having been placed in
service after the Effective Date are placed in service, and (z) the methods
and conventions 

 

57

 

to
the extent determined as a result of the date on which such Wind Turbines that
are treated (pursuant to Section 7.03(c)(ii)) as having been placed
in service after the Effective Date are placed in service (it being understood
that the Tracking Model shall be adjusted to reflect the actual recognition by
the Company of the deduction for such depreciation amounts), and (iii) the
allocation of items of income, gain, loss, deduction and credit among the Class A
Members shall be respected for federal income tax purposes; provided, the
assumption in this clause (iii) shall only pertain to whether the
allocations will be respected under subchapter K of the Code and not the actual
amounts and times that items of income, gain, loss, deduction and credit arise
or occur; provided, further, the assumption in this clause (iii) shall
not apply to the extent that (x) prior to the Initial Equity Capital
Contribution Date, there is any administrative pronouncement, ruling or
guidance from the IRS or the U.S. Department of Treasury intended for taxpayers
generally on or relating to the allocation of items of income, gain, loss,
deduction or credit, (y) such pronouncement, ruling or guidance does not
constitute a “Change of Law” (as defined in the Contribution Agreement) and was
not taken into account in making adjustments to the Base Case Model pursuant to
Section 2.01(b) of the Contribution Agreement, and (z) subsequent
to the Initial Equity Capital Contribution Date, either the rules or
interpretations of law contained in such pronouncement, ruling or guidance
become a “Change of Law” (as defined in the Contribution Agreement) or the IRS
successfully asserts an adjustment to the Tax Return that differs from the
assumption in this clause (iii) and such adjustment is clearly based
on (whether or not explicitly cited as authority) the rules or
interpretations of law contained in such pronouncement, ruling or guidance, in
either case that negatively impacts the allocation of items of income, gain,
loss, deduction and credit to the Class A Members (the items referred to
in preceding clauses (i), (ii), and (iii) are referred to herein as
the “Fixed Tax Assumptions”).  Except as otherwise provided in this Section 5.06(b)(iv),
the Fixed Tax Assumptions shall apply without regard to any changes in law and
irrespective of any determination as to whether such assumptions were correct
when made or whether any assumed or resulting tax treatment is allowable on or
at any time after the Effective Date.  In
all other respects Tax Costs and Tax Benefits for any taxable period shall be
calculated based on the amounts actually realized or deemed to be realized
under this Section 5.06(b)(iv) in accordance with the federal
income tax accounting methods and tax elections actually used with respect to
such period by the Company in the preparation of its federal income tax reports
and returns, or as adjusted as a result of any amended return or federal income
tax audit or subsequent administrative or judicial proceeding; provided, the
tax cost attributable to any minimum gain chargeback shall be deemed to be
realized no later than immediately prior to the Flip Point (and thus shall be
taken into account in determining the Flip Point).  Notwithstanding anything herein to the
contrary, the calculation of Tax Costs and Tax Benefits shall not take into
account any detriment, deduction, credit, or other benefit that a Class A
Member may realize or that results from Code Section 199.

 

(B)           Any Company loss, deduction or credit (including PTCs
and any adjustments to such items from a period after the Effective Date) 

 

58

 

allocable
to a Class A Unit shall be deemed to produce Tax Benefits on the Tax
Payment Dates for the period in which such loss, deduction or credit arises (or
is deemed to arise) without regard to (i) any provision of law limiting,
restricting, deferring or disallowing such loss, deduction or credit that (A) is
applicable to a holder of a Class A Unit as opposed to the Company (other
than any limitation on the allowance of a loss or deduction to a Member under
Code Section 704(d), in which case any loss or deduction that is deferred
as a result of the application of Code Section 704(d) shall be deemed
to produce Tax Benefits when such loss or deduction actually produces Tax
Benefits to such Member), (B) is applicable to the Company in
circumstances where such a Company-level limitation, restriction, deferral or
disallowance of such loss, deduction or credit results from any action of the Class A
Member that is a holder of such Class A Unit that is not required by this
Agreement, the Contribution Agreement or the PAYG Agreement, or (C) for
the avoidance of doubt, is contrary to the Fixed Tax Assumptions, and (ii) whether
the holder of a Class A Unit has any income, gains, or tax liability
against which it is permitted to offset such loss, deduction or credit.  Any Company income or gain allocable to a Class A
Unit shall be deemed to produce Tax Costs on the Tax Payment Date for the
period in which such income or gain arises or is deemed to arise (including any
adjustment to Company items of income or gain from a period after the Effective
Date, for the avoidance of doubt, to the extent consistent with the Fixed Tax
Assumptions) without regard to both (i) any provision of law that is
applicable to a holder of a Class A Unit, as opposed to the Company, and (ii) whether
the holder of a Class A Unit has any losses, deductions or credits (for
the avoidance of doubt, to the extent consistent with the Fixed Tax
Assumptions), which would reduce, defer, or permit the holder of a Class A
Unit to obtain credit for, such Tax Cost.

 

(C)           With respect to any calendar year which has ended
prior to the Distribution Date or Liquidation Date as of which the calculation
is being made, the net Tax Costs or Tax Benefits, as the case may be, with
respect to the tax items allocable to a Class A Unit for such year shall
be allocated ratably to the estimated tax payment dates (the “Tax Payment Dates”) which apply to a
calendar year corporate taxpayer with respect to tax liability arising in such
year (under current law, April 15, June 15, September 15 and December 15)
and treated as having been paid or received, as the case may be, on such Tax
Payment Dates.

 

(D)          With respect to any Company taxable year which has not
ended prior to the Distribution Date or Liquidation Date as of which the
calculation is being made, the net Tax Costs or Tax Benefits, as the case may
be, with respect to the tax items allocable to a Class A Unit for the
portion of such year as has been completed (as of the end of the month
immediately preceding such Distribution Date or Liquidation Date) shall be
allocated ratably and treated as having been paid or received, as the case may
be, on the Tax Payment Dates for such Company taxable year, including Tax
Payment Dates which fall subsequent to the Distribution Date or Liquidation
Date.  In any case in which Tax Costs or
Tax Benefits are deemed to be received after the Distribution Date 

 

59

 

or
Liquidation Date, in calculating the present value of such items, the Flip Rate
shall be applied for the period between the Distribution Date or Liquidation
Date, as the case may be, and the Tax Payment Date.

 

(v)           Method
of Determining Flip Point; Pro Ration of Distributions.

 

(A)          If, as of any Distribution Date, the Managing Member
calculates that the Flip Point has occurred during the calendar month preceding
such Distribution Date (taking account of the distribution of the Distributable
Cash on such Distribution Date), the Managing Member will calculate the lowest
percentage (the “Trigger Percentage”)
which, when applied to the Tax Costs and Tax Benefits allocable to such
calendar month, on the one hand, and to such Distributable Cash, on the other
hand, will result in a Class A Unit receiving an amount of Tax Costs and
Tax Benefits allocable to such calendar month (such amount of such Tax Costs
and Tax Benefits calculated using such Trigger Percentage, the “Tax Cost/Benefit Trigger Amount”) and an
amount of cash under Section 5.02(b) (such amount of cash
calculated using such Trigger Percentage, the “Cash Trigger Amount”) which collectively will cause the Flip
Point to occur.  (For avoidance of doubt,
if the Distributable Cash is zero, then the Trigger Percentage shall be
calculated solely with respect to the Tax Costs and Tax Benefits.)  The Tax Cost/Benefit Trigger Amount shall be
deemed to precede the Flip Point and shall be allocated in accordance with Section 5.01(a)(i) and
the remainder of the tax attributes shall be deemed to succeed the Flip Point
and shall be allocated in accordance with Section 5.01(a)(ii).  Distributable Cash in an amount equal to the
Cash Trigger Amount, if any, shall be distributed to the holders of the Class A
Units under Section 5.02(a) or Section 5.02(b), as
applicable, and the remainder of such Distributable Cash shall be distributed
to the holders of Class A Units and Class B Units under Sections 5.02(c) and
5.02(d), as applicable.  In any
case in which the provisions of this Article 5 require a special or
curative allocation of tax attributes of the Company which causes such
allocation to be disproportionate to the sharing of cash under Section 5.02,
the calculations under this Section 5.06(b)(v)(A) shall be
done on an iterative basis taking account of such special or curative
allocation in such manner as to achieve as nearly as practicable the purposes
of such allocation.

 

(B)           If, prior to a distribution of Liquidation Proceeds,
the Managing Member calculates that the Flip Point will occur (taking into
account the expected distribution of Liquidation Proceeds), the Managing Member
will calculate, using an iterative process, the percentage of the Liquidation
Proceeds which, if distributed in accordance with Section 12.02(a)(vi),
will cause the sum of (i) the cash distributions to be made pursuant to Section 12.02(a)(vi) on
the Liquidation Date to the extent such Liquidation Date distributions are
attributable to pro rata allocations pursuant to Section 12.02(a)(v)(C) and
(ii) the Tax Benefits or Tax Costs arising from the allocation of tax
attributes of the Company for the taxable period in which the Liquidation Date
occurs as a result of such cash distribution, to cause the Flip Point to
occur.  Such calculation shall be taken
into account in making the allocations under Section 12.02(a)(v) in
such manner as to 

 

60

 

ensure
that, to the greatest extent feasible, the balances in the Capital Accounts of
the Members are expected to result in distributions pursuant to Section 12.02(a)(vi) in
accordance with the target liquidation distributions contemplated in Sections 12.02(a)(v)(A),
12.02(a)(v)(B), 12.02(a)(v)(C) and 12.02(a)(v)(D).

 

(vi)          End of Year True Up.

 

(A)          Prior to filing the Company’s Tax Return for the
taxable year which includes the Flip Point, the Managing Member shall compare
the Tax Benefits and Tax Costs for the portion of the taxable year through the
month in which the Flip Point was determined to have occurred, as taken into
account in the calculation of the Flip Point, with the Tax Benefits and Tax
Costs for such period as determined using the amounts reflected in the Tax
Return as proposed to be filed; provided, any difference in such calculation of
the Flip Point and such amounts reflected in the Tax Returns is not the result
of the inaccuracy of, or challenge to, the Fixed Tax Assumptions.  In the event of any difference (disregarding
de minimis amounts), the Managing Member shall re-calculate the Trigger
Percentage based upon the amounts reflected in such return, and shall (i) adjust
the Flip Point accordingly (including by advancing or retarding the Flip Point
to a prior or subsequent month), and (ii) determine the difference (the “Cash Difference”) between the actual cash
distribution to the Class A Members on the Distribution Date immediately
following the month in which the Flip Point was originally determined to have
occurred (and any subsequent Distribution Dates, if relevant) and the cash
distribution that would have been made on such Distribution Date(s) based
on the recalculated Trigger Percentage (it being acknowledged that any
difference between the tax attributes assumed to be allocable to the Class A
Units at the time the Flip Point was first determined and the amounts of such
tax attributes reflected in the allocations pursuant to the Tax Return actually
filed will have been reflected in the final determination of the Flip Point
under this Section 5.06(b)(vi)). 
For the avoidance of doubt, any distribution pursuant to Section 5.02(d) shall
not be excluded from the amount of the actual cash distribution and the amount
of the cash distribution that would have been made based on the recalculated
Trigger Percentage.

 

(B)           Provisions similar to those provided in Section 5.06(a)(ii) and
(iv) shall apply for purposes of (x) advance notification of
the Class A Members of the adjusted Flip Point and Cash Difference
calculations referred to in Section 5.06(b)(vi)(A), and (y) rights
of the Majority of Class A Members to challenge.

 

(C)           Upon becoming final pursuant to Section 5.06(b)(vi)(B),
the Managing Member shall apply the adjusted Flip Point for all purposes of this
Agreement. On the Distribution Date immediately following the calculation
becoming final, the sharing percentages set forth in Sections 5.01(a)(ii) and
5.02(c) shall be adjusted to the maximum extent necessary (subject
to the limit that the aggregate sharing percentages for the Class A
Members shall not be less 

 

61

 

than
five percent (5.00%)) so as to correct, on a present value basis calculated at
the Flip Rate, the Cash Difference.  Such
change in sharing percentages shall remain in effect until, and to the extent
necessary, so that the Cash Difference shall have been eliminated.  The change in sharing percentages is intended
to, and is limited in amount and duration to the change necessary to, eliminate
the Cash Difference.

 

(vii)         Curative Flip
Allocations.

 

(A)          The Managing Member’s determination that the Flip
Point has occurred, subject to the rights of the Class A Members to
dispute such determination in advance under the procedures set forth in Section 11.03
and subject to any adjustment provided for in Section 5.06(b)(vi),
shall become final on the Distribution Date or Liquidation Date as of which
such determination is made, in the absence of fraud or manifest mathematical
error.  Except as provided for in Section 5.06(b)(vi),
the occurrence of the Flip Point shall not be affected by any Tax Costs or Tax
Benefits, distribution or other event or circumstance arising at any time after
the Distribution Date or Liquidation Date as of which such determination is
made.  If, subsequent to the filing of
the Company’s Tax Return for the taxable year in which the Flip Point is deemed
to have occurred, there occurs an adjustment to the Tax Costs or Tax Benefits
taken into account in calculating the Flip Point as a result of a change in the
amount of any item of income, gain, deduction, loss or credit realized in any
period through the end of the calendar month immediately preceding the
Distribution Date for which such determination is made, such change shall give
rise to a Curative Flip Allocation under this Section 5.06(b)(vii)(A).  Except with respect to the Fixed Tax
Assumptions and other assumptions made under Section 5.06(b)(iv),
the adjustments taken into account under this Section 5.06(b)(vii)(A) shall
include a difference in the calculation of taxable income, gain, loss or credit
in the Tax Return as filed by the Company, and any amended return or as a
result of a federal income tax audit or subsequent administrative or judicial
proceeding.  No adjustment shall be taken
into account as a result of a change, subsequent to the Liquidation Date, in
the amount of any item of income, gain, deduction, loss or credit.

 

(B)           In the event a change described in Section 5.06(b)(vii)(A) gives
rise to a Curative Flip Allocation, the sharing percentages set forth in Sections 5.01(a)(ii) and
5.02(c) shall be adjusted to the maximum extent necessary (subject
to the limit that the aggregate sharing percentages for the Class A
Members shall not be less than five percent (5.00%)) so as to immediately
correct, on a present value basis calculated at the Flip Rate, the difference
between the Flip Rate assumed to have been realized by a holder of Class A
Units on the Distribution Date as of which the Flip Point was determined, and
the Internal Rate of Return actually realized by such a holder after accounting
for the adjustment referred to in Section 5.06(b)(vii)(A).  Such change in sharing percentages shall
remain in effect until, and to the extent necessary so that, the difference between
the Flip Rate and actual Internal Rates of Return shall have 

 

62

 

been
eliminated.  The change in sharing
percentages as a result of the Curative Flip Allocation is intended to, and is
limited in amount and duration to the change necessary to, cure the adjustment
to the Tax Costs or Tax Benefits taken into account in calculating the Flip
Point as a result in a change in the amount of any item of income, gain,
deduction, loss or credit realized in any period prior to the end of the
calendar month immediately preceding the Distribution Date for which such
determination is made.

 

(C)           Subsequent to a purchase or redemption of either (1) any
Class A Unit or (2) any Class B Unit pursuant to Article 10
hereof, if events that, in the absence of such purchase or redemption, would
have given rise to a Curative Flip Allocation under this subparagraph occur and
the economic equivalent of such Curative Flip Allocation was not taken into
account in establishing the Fair Market Value (in the case of Section 10.01),
Purchase Price (in the case of Section 10.03) or redemption amount
(in the case of Section 10.02), as applicable, with respect to a Class A
Unit under Section 10.02, or a Class A Unit or a Class B
Unit under Section 10.03(a), then, pursuant to the purchase or
redemption documentation for such purchase or redemption of such Class A
Unit or Class B Unit, respectively, the party that would have benefited
from such Curative Flip Allocation shall be paid by the party that would have
suffered the detriment of such Curative Flip Allocation (determined as provided
under this subparagraph as if the sale of such Class A Units or Class B
Units, respectively, had not occurred) a cash payment that is the economic
equivalent of such Curative Flip Allocation to such selling Class A
Members or Class B Members, as applicable.

 

(viii)        Annual Status
Reports.  Within one-hundred twenty (120) Days after
the end of each Fiscal Year, the Managing Member shall prepare and distribute
to each holder of Class A Units a status report consisting of a
calculation of the Internal Rate of Return as of the end of the Fiscal Year in
the form of the Tracking Model and prepared in accordance with the calculation rules and
conventions of this Section 5.06, and together with such exhibits
or supplemental information as is reasonably required to demonstrate the basis
of such calculation. The Managing Member shall make itself available at the
request of any Class A Member to discuss the basis for such calculation,
including the interpretation and application of the rules and procedures
of this Section 5.06(b)(viii). 
The Majority of Class A Members may initiate the dispute resolution
procedures of Section 11.03 to resolve any item or procedure which
is in dispute, and the conclusion of such dispute resolution procedures shall
apply for all subsequent periods to any substantially similar item or
procedure.

 

5.07        Withholding. 
Notwithstanding any other provision of this Agreement, the Company shall
comply with any withholding requirements under any law and shall remit amounts
withheld to, and file required forms with, applicable taxing authorities.  To the extent that the Company is required to
withhold and pay over any amounts to any taxing authority with respect to
distributions or allocations to any Member, the amount withheld shall be
treated as a distribution of cash to such Member in the amount of such
withholding.  It shall be the duty of 

 

63

 

the Tax Matters Member to cause
the Company to comply with such requirements and to take such actions.  In the event of any claimed over-withholding,
Members shall be limited to an action against the applicable taxing authority.  If an amount required to be withheld was not
withheld from an actual distribution, the Company may reduce subsequent
distributions by the amount of such required withholding and any penalties or
interest thereon.  Each Member agrees to
furnish to the Company such forms or other documentation as is necessary to
assist the Company in determining the extent of, and in fulfilling, its
withholding obligations.

 

5.08        Intentionally
Omitted.

 

5.09        Certain Other Revenues.  The Company and the Members hereby
acknowledge and agree that the Class B Member has not contributed any
receivable, right to receive, or other entitlement to any payment (a) in
connection with the sale of power generated from the Wind Farms during any
pre-Effective Date testing of a Wind Turbine, (b) of other pre-Effective
Date revenue, (c) from a Transmission Service Provider for repayment with
respect to network upgrades under the Interconnection Agreement, or (d) of collateral or security deposited in connection with the REC Contract
Security or the Wind Farm Municipal Bonds (collectively, the “Specified Revenues”), and such receivables,
rights to receive or other entitlements are not for federal tax purposes part
of the assets contributed to the Company. 
Accordingly, if the Company receives any payment for any Specified Revenues,
the Managing Member shall promptly remit associated available cash from such
payments to the Initial Member; any such cash shall not be considered “Distributable
Cash” distributed to the Initial Member pursuant to Section 5.02;
and such payment shall be deemed received by the Company as a nominee and shall
not be reported as income of the Company for federal income tax purposes to the
extent permitted under Applicable Law. 
Notwithstanding the forgoing, the Members acknowledge and agree that
this Section 5.09 is subject to Section 5.6 of the Depositary
Agreement and shall be governed by the terms therof to the extent applicable.

 

5.10        Maintenance Reserve.  If at any time
prior to the Flip Point, the Debt Obligations are no longer outstanding, the
Members agree that the Managing Member shall cause the Company to establish a
maintenance reserve (the “Maintenance Reserve”)
to be maintained until the Flip Point, in an amount determined by a Majority of
all Members.  Until a Majority of all
Members agree on the amount of the Maintenance Reserve, the Maintenance Reserve
shall be maintained by the Company in an amount equal to the balance in the
maintenance reserve required to be maintained by the Company under the Debt
Financing Documents immediately prior to the repayment of the Debt
Obligations.  If, prior to the Flip
Point, the balance in the Maintenance Reserve is less than the amount required
to be maintained under this Section 5.10, the Company shall make
deposits to the Maintenance Reserve to establish or replenish the Maintenance
Reserve prior to making any distributions to the Members.  The Managing Member may distribute the funds
in the Maintenance Reserve to the Class A Members at any time if such
distribution would cause the Flip Point to occur.

 

ARTICLE 6.

MANAGEMENT

 

6.01        Management by Managing Member.  Except
as otherwise expressly provided in this Agreement, including the provisions of Sections 6.02
and 6.04, the management of the 

 

64

 

Company is fully vested in the Managing Member, acting exclusively in
its membership capacity, who shall manage the Company in accordance with the
business purposes set forth in Section 2.04.  Subject to the provisions of this Agreement,
each Member agrees that it will not exercise its authority under the Act to
bind or commit the Company or any Project Company to agreements, transactions
or other arrangements, or to hold itself out as an agent of the Company or any
Project Company.  Decisions or actions
taken in accordance with the provisions of this Agreement shall constitute
decisions or actions by the Company and shall be binding on each Member,
representative and employee of the Company.

 

6.02        Delegation to Administrator.  The
Company has caused each Project Company to enter into the applicable Management
Services Agreement with the Administrator for the administration of such
Project Company, upon the terms and conditions set forth in the applicable
Management Services Agreement.  The
Management Services Agreements may only be terminated pursuant to the
provisions thereof (as modified by any related consent to assignment as
executed by the respective Project Company); and until the occurrence of the
Flip Point, and unless terminated pursuant to the provisions thereof, the Administrator
shall be Noble Asset Management, LLC for so long as the Initial Member shall own Class B
Units hereunder.  In the event any
Management Services Agreement is terminated in accordance with its terms, any
replacement administrator shall be approved by the Required Voting
Percentage.  Subject to Section 6.04,
with respect to duties discharged hereunder by the Managing Member, the
Managing Member may discharge such duties through the personnel of an Affiliate
of the Managing Member.  Except as specified
in the Management Services Agreements or in any other agreement with the
Company, neither the Managing Member nor its Affiliates shall be entitled to
compensation for services rendered pursuant to Section 6.01 or Section 6.02
other than the reimbursement of third-party expenses.

 

6.03        Affiliate
Agreements; Conflicts of Interest.

 

(a)           Subject
to Section 3.06 of this Agreement or any other agreement among the
Members (and their respective Affiliates, as applicable), a Member, or an
Affiliate of a Member, may engage in and possess interests in other business
ventures of any and every type and description, independently or with others,
including ones in competition with the Company and any Project Company, with no
obligation to offer to the Company, any Project Company, any other Member, or
any Affiliate of another Member, the right to participate therein.  The Company and each Project Company may
transact business with any Member or Affiliate thereof, provided the terms and
conditions of those transactions are (i) approved by the Managing Member
(or in the case of any transaction with an Affiliate of the Managing Member
involving payments in excess of $1,000,000  for
any single Project Company or in excess of  $1,800,000  for all Project Companies  per year, approved by a Majority of all
Members), or expressly contemplated in this Agreement or the Affiliate
agreements listed on Schedule 3, and (ii) no less favorable to
the Company or any Project Company than those that could be obtained from an
unrelated third party; provided, notwithstanding anything to the contrary in
this Agreement, the Majority of Class A Members shall be required for any
Project Company or the Company to enter into, modify, amend, waive any rights
under, or terminate any Affiliate Array Loss Agreement.

 

65

 

(b)           Subject
to the generality of Section 6.03(a), the Members recognize and
agree that they and their respective Affiliates currently engage in certain
activities involving the generation, transmission, distribution, marketing and
trading of electricity and other energy products (including futures, options,
swaps, exchanges of future positions for physical deliveries and commodity
trading), and the gathering, processing, storage and transportation of such
products, as well as other commercial and manufacturing activities related to
such products, and that these and other activities by Members and their
Affiliates (herein referred to as “Outside
Activities”) may be made possible or more profitable by reason of
the Company’s or any Project Company’s activities.  The Members agree that (A) no Member or
Affiliate of a Member shall be restricted in its right to conduct, individually
or jointly with others, for its own account any Outside Activities, except,
prior to the expiration of the PTC Period, any activity which would cause a
Member to become a Related Party, and (B) no Member or its Affiliates
shall have any duty or obligation, express or implied, to account to, or to
share the results or profits of such Outside Activities with, the Company, any
Project Company, any other Member or any Affiliate of any other Member, by
reason of such Outside Activities.

 

(c)           The
Company may, and may cause any Project Company to, initiate, manage or settle
any claim, suit, proceeding or action between (I) the Company or any
Project Company and (II) any Member or Affiliate of any Member (other than
the Company or Project Company) without the consent of such Member (the “Interested Member”), but only with the
consent of a Majority of all Members excluding Units held by the Interested
Member.

 

6.04        Consent Required for Certain Material Action.  Notwithstanding any other provision of this
Agreement to the contrary, without the prior written consent of the Required
Voting Percentage, the Managing Member shall not cause or permit, or take any
action which causes or permits the Company to cause or permit, any of the
actions set forth below (each, a “Material
Action”).  The Managing Member
shall notify the Members in writing of any proposed Material Action, and each
Member shall have ten (10) Days from the date of such notice to provide
its written consent or written objection to the proposed action, provided if a
Member fails to inform the Managing Member of its decision to consent or object
to such action within the prescribed time, such Member shall be deemed to
consent to such action:

 

(a)           any
Project Company to incur or assume any indebtedness, except for

 

(i)            indebtedness secured by Permitted Encumbrances;

 

(ii)           indebtedness consisting of obligations other than for
borrowed money unless otherwise permitted under this Section 6.04,
arising in the ordinary course of the business of any Project Company, and
obligations arising under this Agreement or the Principal Project Documents;

 

(iii)          indebtedness included in an Approved Budget; or

 

(iv)          other unsecured indebtedness of any Project Company so
long as the aggregate principal amount of such indebtedness for any single
Project Company does not exceed $1,000,000 at any time and for all of the
Project Companies collectively does not exceed $1,800,000 at any time;

 

66

 

(b)           except
as provided in Section 4.03 herein, the Company to incur or assume
any indebtedness, except (i) indebtedness secured by Permitted
Encumbrances and (ii) indebtedness incurred to refinance the balance in
the Tracking Account if (A) such refinancing would not delay the date on
which the Flip Point would be expected to occur if the Tracking Account balance
is not refinanced or (B) the Managing Member authorizes the Company to
distribute the proceeds from such refinancing to the Class A Members and such
distribution will cause the Flip Point to occur;

 

(c)           the
Company to Encumber the assets or rights of the Company, other than Permitted
Encumbrances;

 

(d)           any
Project Company to Encumber the assets or rights of any Project Company, other
than Permitted Encumbrances;

 

(e)           to
the extent not otherwise addressed in Section 6.04(i), the Company
or any Project Company to sell, assign, lease or otherwise transfer any asset
or related group of assets (other than sales of interests in any Project
Company, which are subject to Section 6.04(o) or pursuant to a
liquidation of the Company) other than, with respect to any Project Company, (i) sales
of energy, capacity or ancillary services, (ii) the transfer of any
related environmental credits and (iii) the transfer of an asset that is
worn out, obsolete, or no longer necessary or useful for the operation of the
Wind Farms;

 

(f)            the
Company or any Project Company to hire any employees, enter into or adopt any
bonus, profit sharing, thrift, compensation, option, pension, retirement,
savings, welfare, deferred compensation, employment, termination, severance or
other employee benefit plan, agreement, trust, fund, policy or arrangement for
the benefit or welfare of any directors, officers or employees of the Company
or any Project Company, as the case may be;

 

(g)           the
Company or any Project Company to (i) materially amend, modify,
supplement, restate, cancel, suspend, renew or terminate any Principal Project
Document, (ii) materially  amend,
modify, restate, cancel or terminate any environmental management policy or
similar requirement set forth in any Principal Project Document, (iii) assign,
release or relinquish the material rights or obligations of any party to, or
materially amend, any Principal Project Document or (iv) enter into a
replacement or additional Principal Project Document; provided, with respect to any replacement of
any Hedge Security Documents, such consent shall not be required if the
replacement letter of credit agreement or other related agreement (including
any security agreement) is on terms that, taken as a whole, are not materially
more burdensome to any Project Company or to the cure rights of the Members in
the Hedge Security Documents (as replaced hereunder) being replaced; provided
further, that any replacement Hedge Security Documents which would result in
any Encumbrance on the assets of any Project Company which would secure an
amount in excess of $25,000,000 shall in any event require such consent;

 

(h)           the
Company or any Project Company to (i) materially change its methods of
accounting as in effect on the Effective Date, except as required by GAAP, or
take any action, other than reasonable and usual actions in the ordinary course
of business or specifically contemplated under the Principal Project Documents
to which it is a party, with respect to 

 

67

 

accounting policies
or procedures, unless required by GAAP, or (ii) engage a Certified Public
Accountant in replacement of Deloitte;

 

(i)            the
Company or any Project Company to (i) enter into a joint venture with,
merge into or consolidate with any Person or acquire all or substantially all
of the assets or stock of any class of any Person, or (ii) change its
legal form, recapitalize or liquidate (including any transaction or series of
related transactions resulting in a liquidation), wind-up or dissolve (except
as permitted under this Agreement);

 

(j)            the
Company to change the purpose of the Company or engage in any business other
than the development, construction, ownership, financing, maintenance,
management and operation of the Wind Farms and the administration of their
affairs and sales of electricity at wholesale and renewable energy credits as
set forth in Section 2.04 or cause or permit any Project Company to
change the purpose of any Project Company or engage in any business other than
development, construction, ownership, financing, maintenance, management and
operation of its Wind Farm and the administration of its affairs and sales of electricity
and renewable energy credits;

 

(k)           (i) any
Project Company to make any capital expenditures, other than (A) as
contemplated by the Principal Project Documents, (B) as approved in the
applicable Approved Budget (subject to permitted Immaterial Variances), (C) expenditures
required by law or necessary to prevent or mitigate an emergency situation or
to preserve the value of the Wind Farms, or (D) acquisition or capital
lease of any asset or right with a value not in excess of $1,000,000 or (ii) the
Company to make any capital expenditures;

 

(l)            the
Company or any Project Company to approve, execute, deliver, amend, modify or
terminate any material contract (other than Principal Project Document, which
is subject to Section 6.04(g)), lease or agreement with an
Affiliate of any Member, except as otherwise permitted under this Agreement;
provided, approval of any such material contract, lease or agreement  or amendment, modification or termination
thereof shall not be unreasonably withheld or delayed;

 

(m)          any
Project Company to permit (i) possession of property of any Project
Company by any Member (unless such action is taken pursuant to the express
terms of any Principal Project Document), (ii) the assignment, transfer or
pledge of rights of any Project Company in specific property of such Project
Company for other than such Project Company’s purpose or other than for the
benefit of such Project Company, except for assignments, transfers or pledges
of rights under the IDA Documents (as defined in the Debt Financing Documents)
or the Common Facilities Agreements, or (iii) any commingling of the funds
of any Project Company with the funds of any other Person;

 

(n)           the
Company to, except as otherwise provided in the Contribution Agreement, or any
Project Company to (i) sell or issue any interest, or any option, warrant
or similar right to acquire any interest, of any kind in the Company or any
Project Company, including, with respect to the Company, any Membership
Interest, or, with respect to any Project Company, any membership interest,
except, with respect to the Company only, for issuances of additional Units
pursuant to Section 3.04, or (ii) except as otherwise
specified in this Agreement, (A) distribute 

 

68

 

any assets of the
Company or any Project Company or (B) redeem, purchase or otherwise
acquire any interest in the Company or any Project Company;

 

(o)           the
Company to be treated as other than a partnership for U.S. federal income tax
purposes (including by electing under Treasury Regulation Section 301.7701-3
to be classified as an association taxable as a corporation), or take any of
the following listed actions:

 

(i)            cause any Project Company to be treated as other than
a disregarded entity for U.S. federal income tax purposes (including by
electing under Treasury Regulation Section 301.7701-3 to be classified as
an association taxable as a corporation);

 

(ii)           cause the Company or any Project Company to receive
(or permit to be received) any grants, tax-exempt bonds, or subsidized energy
financing, each within the meaning of Code Section 45(b)(3), or to claim
(or be entitled to claim) any federal income tax credits other than the PTC;

 

(iii)          cause the Company to sell or grant (or permit to be
sold or granted) any ownership interest in the Wind Farms (for the avoidance of
doubt, Dispositions of Membership Interests shall be governed by the provisions
of Section 3.03 without regard to this Section 6.04(o)(iii));
or

 

(iv)          voluntarily and permanently remove any Wind Turbine
from service (other than a removal from service caused by a force majeure event
or casualty);

 

(p)           the
Company or any Project Company to settle any claim or action of or against the
Company or any Project Company, as applicable, or confess a judgment against
the Company or any Project Company, as applicable, with respect to claims, in
each case in excess of $1,500,000 or which includes consent to or award of an
injunction, specific performance or other equitable relief or any admission of criminal
liability;

 

(q)           any
Project Company to amend, modify, terminate or permit the expiration of any
Governmental Approval not otherwise in the ordinary course of business required
for the operation, ownership, management or maintenance of any of the Wind
Farms or the sale or transmission of power therefrom in a manner that would
have a Material Adverse Effect;

 

(r)            Intentionally
omitted.

 

(s)           except
as otherwise provided in the Approved Budget, the Company or any Project
Company to loan any funds of the Company or any Project Company to any Person
except for advance payments made in the ordinary course of business to
suppliers of goods and services or not in excess of $300,000 during the course
of any Fiscal Year;

 

(t)            Intentionally
omitted.

 

69

 

(u)           the
Company or any Project Company to take any actions or decisions that are
reserved to the Members under the terms of this Agreement (unless directed to
do so by the Members pursuant to this Agreement);

 

(v)           the
Company or any Project Company to guarantee, in the name or on behalf of the
Company or any Project Company, the payment of money or the performance of any
contract or other obligations of any Person except for guarantees of
obligations (1) properly incurred by the Administrator for any Project
Company pursuant to the applicable Management Services Agreement, (2) endorsements
and other similar guarantees in the ordinary course for proper Company or
Project Company purposes, or (3) as contemplated in the Principal Project
Documents;

 

(w)          the
Company or any Project Company to materially change, amend or substitute any of
insurance described on the insurance exhibit attached to any Management
Services Agreement as Exhibit A; and

 

(x)            the
Company or any Project Company to file any action or institute, or consent to
the institution of, any proceedings in Bankruptcy against the Company or a
Project Company.

 

6.05        Limitations
of Liability.

 

(a)           Anything
in this Agreement to the contrary notwithstanding, the Managing Member does not
guarantee the amount of PTCs or other Tax Benefits or any outcome or event
(including the results set forth in Base Case Model and the actual level of
wind resource available at the Wind Farms at any time) or that the Company or
any Project Company will in fact comply with any applicable legal or
contractual obligation, and the Managing Member shall only be required to
perform its duties and obligations hereunder (i) at all times in good
faith and in a manner reasonably believed to be in the best interest of the
Company and the Project Companies and (ii) in instances involving the
direct or indirect construction, operation and management of the Wind Farms
and/or the Company and/or the Project Companies, in accordance with the Prudent
Operator Standard.

 

(b)           In
respect of any specific matter or circumstance requiring interpretation,
application, or enforcement of any contract or agreement related to the
business of the Company and Project Companies, the Managing Member may rely
conclusively on the advice of legal counsel and/or qualified industry
consultants or other advisors engaged to advise the Managing Member, the
Company or any Project Company with respect to such matter or circumstance. The
Managing Member shall have no liability to the Company, any Project Company or
any Member in respect of any election made in good faith pursuant to Article 7.  The Managing Member, in its capacity as the Managing Member,
shall have no liability to the Company or to the other Members for particular
action taken, or decision not to act, taken with the written approval of the
Members required by this Agreement for such action (including actions under the
Approved Budget).

 

(c)           NO
MEMBER (INCLUDING THE MANAGING MEMBER) SHALL BE LIABLE (WHETHER IN CONTRACT,
TORT, STRICT LIABILITY EQUITY, OR OTHERWISE) FOR ANY SPECIAL, INDIRECT,
PUNITIVE, EXEMPLARY, INCIDENTAL 

 

70

 

OR CONSEQUENTIAL
DAMAGES, WHETHER OR NOT FORESEEABLE, INCLUDING LOST PROFITS AND ANY OTHER
DAMAGES WHICH CANNOT BE READILY ASCERTAINED AND QUANTIFIED, PROVIDED, TO THE
EXTENT THERE IS A LOSS OR DISALLOWANCE OF OR INABILITY TO CLAIM PTCs AS A
RESULT OF A BREACH OF A MEMBER’S DUTIES, REPRESENTATIONS OR COVENANTS SET FORTH
IN THIS AGREEMENT, THE VALUE OF SUCH LOST PTCs SHALL NOT CONSTITUTE
CONSEQUENTIAL DAMAGES, WHETHER OR NOT THE UNDERLYING LOSS OF PRODUCTION
CONSTITUTES CONSEQUENTIAL DAMAGES FOR WHICH NO RECOVERY HEREUNDER IS PERMITTED.

 

(d)           THE
OBLIGATIONS OF THE MEMBERS UNDER THIS AGREEMENT ARE OBLIGATIONS OF THE MEMBERS
ONLY, AND NO RECOURSE FOR BREACH OF A MEMBER’S OBLIGATIONS UNDER THIS AGREEMENT
SHALL BE AVAILABLE AGAINST ANY OFFICER, DIRECTOR, MANAGER, MEMBER, PARTNER, OR
AFFILIATE OF THE MEMBER EXCEPT TO THE EXTENT SUCH PERSON HAS GUARANTEED THE MEMBER’S
OBLIGATIONS HEREUNDER.

 

6.06        Notice
of Related Party; Notice of Power Sales Agreement.  It is agreed during the PTC Period as
follows:

 

(a)           Not
less than thirty (30) Days prior to causing any Project Company to enter into
any Power Sales Agreement, the Managing Member shall provide to the Members
notice of the proposal to enter into such Power Sales Agreement in the form of Exhibit G
which shall include the identity of the potential power purchaser.  If the Managing Member fails to comply with
its obligations to give notice to the Members hereunder, the Managing Member
and Company shall indemnify and hold harmless each Member from any Relevant
Damages suffered or incurred by such Members resulting from the Managing Member’s
failure to give such notice.

 

(b)           Within
ten (10) Days following its receipt of the notice required pursuant to Section 6.06(a) containing
the name of the proposed power purchaser, any Member that either would become a
Related Party or is unable to determine after reasonable due diligence whether
it would become a Related Party if the proposed Power Sales Agreement were
entered into shall provide a notice to the Managing Member that, in the case of
a Member that would become a Related Party, details the nature of the
relationship that would cause such Member to become a Related Party or, in the
case of a Member that is unable to determine whether it would become a Related
Party, sets forth the inquiries or other information such Member reasonably
requires to be able to make such determination. 
In the case of any Member that is unable to determine whether it would
become a Related Party, the Managing Member shall, upon receipt of the notice
described in the immediately preceding sentence, follow up with the proposed
power purchaser on behalf of such Member to make the inquiries and obtain the
other information reasonably requested by such Member.  If any Member would become a Related Party
or, after receiving responses to such inquiries and obtaining such other
information described in the immediately preceding sentence, any Member is not
reasonably satisfied that it would not become a Related Party, the Managing
Member shall not thereafter cause or permit any Project Company to enter into
such Power Sales Agreement without the prior written consent of the Required
Voting Percentage. Unless such consent of the Required Voting Percentage has
been obtained, any Member that fails to comply with its obligations pursuant to
this Section 6.06(b) 

 

71

 

shall indemnify and
hold harmless the Company, each Project Company and the other Members from any
Relevant Damages suffered or incurred by the Company, each Project Company and
the other Members resulting therefrom.

 

(c)           Upon
becoming or having knowledge that it or any of its Affiliates will become a
Related Party, the affected Member shall immediately notify the other Members
of the same.  To the extent the affected
Member does not take all actions necessary to cause it or its Affiliate, as the
case may be, to promptly cease to be a Related Party, or does not Dispose of
its Membership Interest to an Assignee that is not a Related Party or
Disqualified Transferee within thirty (30) Days following the date the Member
or its Affiliate, as the case may be, becomes a Related Party for purposes of
this Agreement, such Member shall immediately give notice to the other Members
and shall indemnify and hold harmless the Company, each Project Company and the
other Members from any Relevant Damages suffered or incurred by the Company,
each Project Company and the other Members resulting from such Member or its
Affiliate becoming a Related Party.

 

(d)           Notwithstanding
anything to the contrary in this Agreement, the PAYG Agreement or the
Contribution Agreement, and without limiting any other rights or remedies of
the Company or the Members, (i) in the event a Class A Member fails
to comply with its obligations under this Section 6.06 and the
Managing Member has complied with it obligations under this Section 6.06,
then the amount of Capital Contributions due under the PAYG Agreement by all of
the Class A Members, and the Flip Point calculations, shall be determined
as if the affected Class A Member or its Affiliate had not become a
Related Party; and (ii) if a Class A Member becomes a Related Party as a result
of the Managing Member failing to give the notice required by Section 6.06(a),
then the amount of Capital Contributions otherwise due from the Class A
Members (A) shall be automatically reduced on account of the failure to
qualify for PTCs due to such Class A Member becoming a Related Party under
the definition of Quarterly Contribution Amount in the PAYG Agreement and (B) shall
be further reduced by Relevant Damages suffered, but not yet paid to the Class A
Members or previously taken into account under
this clause (B) for a prior period, by the Class A Members as a result of such failure in
excess of the automatic reduction of Capital Contributions in clause (A); provided, the Class A Members shall be deemed to have
made Capital Contributions in the amount of any reduction pursuant to
clause (B).

 

6.07        Approved
Budgets.

 

(a)           The
initial operating budget of the Company and each Project Company for Fiscal
Year 2008(1) is attached as Exhibit H hereto.  The annual operating budgets of the Company
and the Project Companies for succeeding Fiscal Years shall be subject to the
approval of the Required Voting Percentage as provided in this Section 6.07.  Notwithstanding anything to the contrary in
this Section 6.07 or elsewhere in this Agreement, the Members
acknowledge and agree that while the Company has Debt Obligations outstanding,
the annual operating budgets of the Company and the Project Companies are
subject to the approval of the Administrative Agent 

 

72

 

under the Debt
Financing Documents.  In the event the
Administrative Agent does not approve the operating budgets approved by the
Members pursuant to this Section 6.07 for a Fiscal Year, then until
the Administrative Agent approves the operating budgets for such Fiscal Year,
the operating budgets of the Company and the Project Companies for such year
shall be as set forth in the Debt Financing Documents and, pending such
approval, such budgets shall be deemed to have been approved by the Required
Voting Percentage for purposes of this Agreement.  Each annual operating budget attached hereto
or approved or deemed approved pursuant to this Section 6.07 shall be  an
“Approved Budget.”

 

(b)           Commencing
with the 2009 Fiscal Year, the Managing Member shall prepare (or cause to be
prepared) an operating plan and budget for the Company and each Project Company
for each Fiscal Year, which sets forth the anticipated revenues and expenses of
such company and, so long as the Company has Debt Obligations outstanding,
includes such other detail and information required by the Debt Financing
Documents.  The Managing Member shall,
not later than October 1 of the current Fiscal Year (commencing in the
2008 Fiscal Year), submit its proposed operating budgets for the succeeding
Fiscal Year to the Members for their review and approval, and prior to the Flip
Point, to the Independent Engineer for its initial review of, and initial
comment on, the adequacy of such budgets. 
The initial review of the Independent Engineer shall be at the Company’s
and the relevant Project Company’s expense; provided, at the request of the
Required Voting Percentage, the Independent Engineer may undertake further
review at the requesting Members’ expense. 
If the proposed operating budgets (or any revised operating budgets
required to be prepared pursuant to this Section 6.07) are not
approved by the Required Voting Percentage, the Managing Member shall prepare
(or cause to be prepared) revised operating budgets, which shall be submitted
to the Members for their review and approval in accordance with this Section 6.07.  If the annual operating budgets are not
approved by the beginning of the applicable Fiscal Year (or, so long as the
Debt Obligations are outstanding, November 1 of the current Fiscal Year),
then the operating budgets for such Fiscal Year shall be the prior year’s
budgets plus the percentage increase in the Consumer Price Index over the prior
year plus 2% to each individual line item and, until operating budgets are
approved in accordance with this Section 6.07, shall be deemed to
have been approved by the Required Voting Percentage for purposes of this
Agreement; provided, notwithstanding
anything to the contrary in the Debt Financing Documents or Section 6.07(c),  no
line item may be further increased unless separately approved by the Members in
accordance with this Section 6.07. 
If the Approved Budgets for a Fiscal Year are not approved by the
Administrative Agent as required by the Debt Financing Documents, the Members
agree to cooperate to revise the Approved Budget to obtain such approval.

 

(c)           The Managing Member
may from time to time during a Fiscal Year amend the Approved Budget to
decrease expected expenditures, or to increase expected expenditures without
the further vote or consent of the Members, and as so amended, any such budget
shall be an Approved Budget for purposes of this Agreement; provided, subject to Section 6.07(b), no
individual line item in an Approved Budget may be increased by more than 10% of
the budgeted amount and the aggregate amount of all line items increased shall
not exceed 10% of the total budgeted expenditures for such year (an “Immaterial Variance”).  Any variances from an Approved Budget in excess of an
Immaterial Variance shall require notice to and the approval of the Required
Voting Percentage, and if so approved, each such variance shall (subject to the
approval of the Administrative Agent as provided in the Debt Financing
Documents so long as 

 

73

 

the Company has any Debt Obligations) be added to the
Approved Budget, which, as so amended, shall thereafter be the Approved Budget
for such Fiscal Year.

 

6.08        Removal or Resignation of the Managing Member.  The
Managing Member shall be removed from its capacity as Managing Member upon the
affirmative vote of the Required Voting Percentage or upon a vote of the
Majority of Class A Members pursuant to Section 9.02(b).  The Managing Member may resign from its
capacity as Managing Member at any time upon written notice to the
Members.  The appointment of a
replacement Managing Member (due to removal or resignation) shall require (a) the
consent of the Required Voting Percentage or (b) in the case of a removal
of the Managing Member pursuant to Section 9.02(b), the Majority of
Class A Members.  Any resigning
Managing Member shall remain in its capacity as Managing Member for a
reasonable period of time until a replacement Managing Member is appointed.

 

6.09        Consent for Certain Actions of the Managing Member.  Prior to the Flip Point, if the Managing
Member fails to (i) enforce rights of the Company under any material
contract, lease or agreement with any Affiliate of the Managing Member after a
material breach or (ii) cause the Administrator to renew or cause to be
renewed any insurance policies required to be maintained by the Company
pursuant to the Principal Project Documents within the provisions of the
Management Services Agreements, the Majority of Class A Members may, but
shall not be required to, directly enforce such rights or obtain such insurance
on behalf of the Company.

 

6.10        Environmental Health & Safety. 
The Managing Member shall or shall cause the Operator and the
Administrator to (without duplication) promptly notify the Members in writing
of any notice of violations or noncompliance issued by Governmental
Authorities, any pending administrative or judicial proceeding, any third party
lawsuit, any known material release of hazardous substances as defined under
Applicable Laws, or any claim or violation identified by the Managing Member,
to the extent any such notice, proceeding, lawsuit, release, claim or violation
relate to compliance by the Company or any Project Company with Applicable Laws
and could reasonably be expected to result in a fine, penalty, loss or damage
to the Company or any Project Company of $25,000 or more.  The Managing Member shall ensure that the
Operator and the Administrator comply with the various reporting requirements
set forth in the O&M Agreements and the Management Services Agreements,
respectively, and shall provide a copy of such reports to the Members promptly
upon receipt.

 

6.11        Pending
Appeal Proceedings. 
Notwithstanding anything to the contrary set forth in this Agreement, in
the event there is a court order pursuant to (a) the Appeal Proceeding or
any legal or arbitral proceeding relating thereto or (b) any legal or
arbitral proceeding involving or relating to the permits issued on April 24,
2007 by the United States Army Corps of Engineers, New York District, to the
Affected Wind Farms (a “Corps Permit Proceeding”)
that EFS Noble Holdings reasonably determines is materially adverse to the
interests of the Company and the applicable Project Companies and results in (x) the
invalidation of one or more of the Governmental Approvals necessary for the
construction or operation of the Affected Wind Farms or (y) the
determination of the issues considered in the Appeal Proceeding or such related
proceeding or any Corps Permit Proceeding being remanded for further
consideration (a “Post-Contribution Order”),
the Class B Member agrees that (A) the Company and the applicable 

 

74

 

Project Companies shall not
make or implement any major decision regarding the conduct of any further
appeal of, or other action in connection with a Post-Contribution Order and/or
the application for new Governmental Approvals and/or material modifications to
existing Governmental Approvals, in any of such cases as a result of such
Post-Contribution Order, without the prior written consent of EFS Noble
Holdings and (B) EFS Noble Holdings shall have the right to direct and
require the Company and the applicable Project Companies to take reasonable
actions to address the concerns of the Administrative Agent on behalf of the
lenders under the Debt Financing Documents, EFS Noble Holdings, and the
relevant Governmental Authorities in connection with the Appeal Proceeding or
such related proceeding or any Corps Permit Proceeding, as applicable, and the
Post-Contribution Order and in order to obtain new Governmental Approvals or
modify existing Governmental Approvals; provided, in each of clauses (A) and
(B) above, such rights shall be solely for the purposes of obtaining or
modifying the Governmental Approvals necessary to construct and operate the
Affected Wind Farms and shall be effective only until such time that such new
Governmental Approvals and/or such modifications to the existing Governmental
Approvals have been obtained by the Company and/or the applicable Project
Companies; and provided further, the rights of EFS Noble Holdings pursuant to
clauses (A) and (B) above shall not apply in connection with a
Post-Contribution Order if such Post-Contribution Order explicitly provides, or
EFS Noble Holdings reasonably determines, that final resolution of the issues
addressed in such Post-Contribution Order can be accomplished for less than
$1,000,000 per Affected Wind Farm, and the Company or the applicable Project
Companies use reasonable efforts to implement such resolution.  The foregoing rights of EFS Noble Holdings
under this Section 6.11 with respect to any applicable proceeding
shall terminate immediately upon the date that such new Governmental Approvals
or such modifications to the existing Governmental Approvals with respect to
such proceeding have been obtained by the Company and/or the applicable Project
Companies and all the rights and obligations of EFS Noble Holdings, the Company
and the Project Companies with respect to such proceeding shall thereafter be
governed by the terms of this Agreement without reference to this Section 6.11.  For the avoidance of doubt, notwithstanding
the fact that a proceeding and EFS Noble Holdings’ foregoing rights with
respect thereto have been terminated in accordance with the immediately
preceding sentence, this Section 6.11 shall remain in full force
and effect and EFS Noble Holdings’ rights set forth herein shall be applicable
but only with respect to any further proceeding referenced in clause (a) or
(b) of this Section 6.11 that meets the criteria set forth in
this Section 6.11, including any subsequent proceeding appealing
the issuance of such new or modified Governmental Approvals.

 

ARTICLE 7.

TAXES

 

7.01        Tax Returns. 
The Tax Matters Member shall prepare or cause to be prepared and timely
file (on behalf of the Company) all federal, state and local tax returns
required to be filed by the Company. 
Each Member shall furnish to the Tax Matters Member all pertinent
information in its possession relating to the Company’s operations that is
necessary to enable the Company’s tax returns to be timely prepared and
filed.  The Tax Matters Member shall
prepare or cause to be prepared the Company’s federal income tax return
(including Schedules K-1) (the “Tax Return”)
on a basis consistent with the tax assumptions contained in the Base Case
Model, subject to Applicable Law (a “Consistent
Return”).  The Tax Matters
Member shall use commercially reasonable efforts to (a) furnish to the
Members, by no later than March 15th of 

 

75

 

each year, preliminary drafts
of the Schedules K-1 proposed to be delivered to the Members and filed by the
Company with its Tax Return, and (b) furnish to the Members, by no later
than June 15th of each year, the Tax Return proposed to be filed by the
Company, which proposed Tax Return shall in any event be furnished to the
Members by the Tax Matters Member no less than forty-five (45) Days prior to
the date (as extended) on which the Tax Matters Member intends to file the Tax
Return.  In the event that the Tax
Matters Member anticipates furnishing to the Members a Tax Return that is not a
Consistent Return, the Tax Matters Member shall notify the Members in writing
no less than ten (10) Days prior to the date on which it intends to
furnish such Tax Return that such Tax Return will not be a Consistent Return
other than inconsistencies solely relating to variances in the productions of a
Wind Farm; provided, with respect to an inconsistency in a Tax Return that is
not a Consistent Return that is not objected to by a Minority of the Class A
Members, the Managing Member shall not have to give notice of such
inconsistency in advance of future Tax Returns. 
If a Tax Return is a Consistent Return, the consent of the Members shall
be deemed to have been given, subject to any objection by a Member on account
of a manifest mathematical error.  If
such Tax Return is not a Consistent Return, it will be deemed approved by the
Members unless (x) if such Tax Return relates to the period prior to and
including the year in which the Flip Point occurs, the Minority of Class A
Members or the Class B Member, or (y) in all other cases, the
Required Voting Percentage, notify the Tax Matters Member in writing of their
disapproval within twenty (20) Days of their receipt of such Tax Return.  If a Tax Return is timely disapproved by the
Members, the Tax Matters Member shall submit such Tax Return, together with
copies of all relevant workpapers used in preparation thereof, to a nationally
recognized firm (other than the Certified Public Accountant) of independent
public accountants reasonably satisfactory to the Majority of all Members, as
independent expert, for determination of any disputed matter raised by the
Members disapproving such Tax Return, and the completion of the final Tax
Return.  The determination of such
independent expert, and the Tax Return as completed by such expert, shall be
final and binding on the Members, and the Tax Matters Member shall cause such
final Tax Return to be filed.  The
Company shall bear the costs of the preparation and filing of its returns,
including the fees of the independent expert.

 

7.02        Tax
Elections.  The Company
shall make the following elections on the appropriate tax returns:

 

(a)           to
the extent permitted under Code Section 706, to adopt as the Company’s
Fiscal Year the calendar year;

 

(b)           to
adopt the accrual method of accounting;

 

(c)           if
a valid election to adjust the basis of the Company’s properties under Code Section 754
is not in effect and a transfer of Membership Interest as described in Code Section 743
occurs, on request by notice from any Member, to elect, at such Member’s cost,
pursuant to Code Section 754, to adjust the basis of the Company’s
properties;

 

(d)           if
a distribution of the Company’s property as described in Code Section 734
occurs, to elect pursuant to Code Section 754, to adjust the basis of the
Company’s properties to the extent that it will benefit the Members;

 

76

 

(e)           if
the Company is a small partnership that is not subject to the TEFRA unified
audit rules contained in Code Sections 6221 through 6234 (either on
the Effective Date or subsequently as a result of any Disposition of Units or Membership
Interest), to elect under Code Section 6231(a)(1)(B)(ii) to not be
treated as a small partnership and thereby have the TEFRA unified audit rules contained
in Code Sections 6221 through 6234 apply to the Company, which election
shall be made (on a protective basis, if the Company is a large partnership by
default) on the Company’s tax return for the taxable year that includes the
Effective Date and which election shall be made from time to time in the manner
and at the time required by Treasury Regulation Section 301.6231(a)(1)-1
so that the Company is subject to the TEFRA unified audit rules contained
in Code Sections 6221 through 6234 for all taxable years ending after the
Effective Date;

 

(f)            to
elect to amortize the organizational expenses of the Company ratably over a
period of 180 months as permitted by Code Section 709(b); and

 

(g)           if
approved in writing by the Required Voting Percentage, any other election the
Managing Member may deem appropriate.

 

Neither the Company nor any Member shall make
an election for the Company to be excluded from the application of the
provisions of subchapter K of chapter 1 of subtitle A of the Code or any
similar provisions of applicable state law and no provision of this Agreement
(including Section 2.07) shall be construed to sanction or approve
such an election.

 

7.03        Tax
Matters Member.

 

(a)           The
Managing Member shall be the “tax matters partner” of the Company pursuant to
Code Section 6231(a)(7) (the “Tax Matters
Member”).  At the request of any other Member, the Tax Matters Member
shall take such action as may be necessary to cause, to the extent possible,
such other Member to become a “notice partner” within the meaning of Code
Sections 6223 and 6231(a)(8).  The
Tax Matters Member shall provide the Members copies of all notices and other
written communications received by the Tax Matters Member from the IRS and any
written communications sent to the IRS by the Tax Matters Member, relating to
the Company.  The Tax Matters Member
shall provide the Members with an advance opportunity to review and comment on
any written communications to be sent to the IRS.  The Tax Matters Member shall provide Members
with prompt written notice of all meetings or conferences with the IRS and the
Members shall have the right to attend all such meetings and conferences at
their expense.  Prior to the Flip Point,
the Tax Matters Member shall be subject to removal for Cause upon the written
request of Members (other than the Tax Matters Member) holding the Required
Voting Percentage, and the
appointment of any replacement Tax Matters Member shall require the consent of
the Required Voting Percentage.

 

(b)           For
any issue or matter relating to the period prior to the Flip-Point, without the
approval of the Majority of all Members, the Tax Matters Member shall not (i) commence
a judicial action (including filing a petition as contemplated in Code Section 6226(a) or
6228) with respect to a federal income tax matter or appeal any adverse
determination of a judicial tribunal; (ii) enter into a settlement
agreement with the IRS; (iii) intervene in any action as contemplated by
Code Section 6226(b); (iv) file any request contemplated in Code Section 6227;
or (v) enter 

 

77

 

into an agreement
extending the period of limitations as contemplated in Code Section 6229(b)(1)(B).  The Tax Matters Member shall have the right
to defend against any proposed adjustment by all appropriate proceedings, which
proceedings will be promptly settled or prosecuted to a final determination,
and consistent with Code Sections 6221 through 6233, each Member will
allow any proposed adjustment with respect to any “partnership item” (as
defined in Code Section 6231(a)(3)) to be handled by the Tax Matters
Member.  If any Member intends to file,
pursuant to Code Section 6227, a request for an administrative adjustment
of any partnership item of the Company, or to file a petition under Code
Sections 6226, 6228 or other Sections of the Code with respect to any
partnership item or any other tax matter involving the Company, such Member
shall, at least thirty (30) Days prior to any such filing, notify the other
Members of such intent, which notification must include a reasonable
description of the contemplated action and the reasons for such action.  Any cost or expense incurred by the Tax
Matters Member in connection with its duties, including, if relevant, the
preparation for or pursuance of administrative or judicial proceedings, shall
be paid by the Company.

 

(c)           The Members acknowledge and agree that the
Company will report on its federal and applicable state income tax returns,
that (i) electrical production is tangible property produced by the
Company for purposes of Treasury Regulation Section 1.263A-1(a)(3)(ii), (ii) each
Wind Turbine is placed in service for purposes of Code Sections 45 and 168
upon the occurrence of Turbine Substantial Completion for, or with respect to,
such Wind Turbine, and (iii) the sale of the electricity by a
Project Company from a Wind Farm will be treated as a sale to an unrelated
person only to the extent the amount of electricity sold by such Project
Company exceeds the amount of electricity purchased by such Project Company for
use at such Wind Farm (such that PTCs will be claimed only on the amount of
electricity sales net of the amount of electricity purchased).  The Tax Matters Member shall at all times
maintain, on behalf of the Company and the Project Companies, all “Mechanical
Completion Certificates” as defined in the EPC Contracts.

 

(d)           The
provisions of this Article 7 will survive the termination of the
Company or the termination of any Member’s interest in the Company and will
remain binding on the Member for the period of time necessary to resolve with
the IRS or other federal tax agency any and all federal income tax matters
relating to the Company that are subject to Code Sections 6221 through
6233.

 

7.04        Other Tax Matters.  If during the period prior to the Flip Point,
any Governmental Authority makes any claim against the Company or any Project
Company with respect to Taxes (other than federal income taxes) and such claim,
if determined in a manner adverse to the Company or such Project Company, could
have a Material Adverse Effect, the Managing Member shall (a) provide the
Members with copies of all notices and other written communications received
from the relevant Governmental Authority by the Managing Member, the Company,
or such Project Company, as applicable, (b) provide the Members with an
advance opportunity to review and comment on any written communications to be
sent to the relevant Governmental Authority and provide the Members with copies
of all written communications sent to the relevant Governmental Authority, (c) advise
the Members of any other communications with the relevant Governmental
Authority, and (d) seek the approval of the Majority of the Members before
it decides to either contest or not contest such claim, or agrees to settle or
compromise any liability for such Taxes.

 

78

 

ARTICLE 8.

BOOKS, RECORDS, REPORTS, BANK ACCOUNTS

AND COMPANY PROCEDURES

 

8.01        Maintenance
of Books.

 

(a)           The
Managing Member shall keep or cause to be kept at the principal office of the
Company, at the office of the Administrator, or at such other location approved
by the Managing Member, complete and accurate books and records of the Company
in accordance with prudent business practices and minutes of the proceedings of
its Members and the Managing Member, and any other books and records that are
required to be maintained by Applicable Law.

 

(b)           The
books of account of the Company shall be (i) maintained on the basis of a
Fiscal Year, (ii) maintained on an accrual basis in accordance with GAAP,
and (iii) audited by the Certified Public Accountants at the end of each
calendar year.

 

8.02        Administrative Services; Other Services.  So long as the Initial Member is the Class B
Member, all administrative services, including preparing specified annual,
quarterly and monthly reports, and day-to-day management of the Company
initially shall be provided by Noble Asset Management, LLC pursuant to the
Management Services Agreements.

 

8.03        Company Procedures.  The Managing Member shall cause the Company
to maintain its existence separate and distinct from any other Person,
including, without the need to obtain approval of the Class A Members, by
taking the following actions:

 

(a)           maintaining
in full effect its existence, rights and franchises as a limited liability
company under the laws of the State of Delaware and obtaining and preserving
its qualification to do business in each jurisdiction in which such
qualification is or will be necessary to protect the validity and
enforceability of this Agreement and each other instrument or agreement
necessary or appropriate to properly administer this Agreement and permit and
effectuate the transactions contemplated in this Agreement;

 

(b)           conducting
its affairs separately from those of the Managing Member and its Affiliates and
maintaining accurate and separate books and records;

 

(c)           acting
solely in its own limited liability company name and not that of any other
Person, including the Managing Member or any of its Affiliates;

 

(d)           not
holding itself out as having agreed to pay, or as being liable for, the
obligations of the Managing Member or any of its Affiliates;

 

(e)           not
commingling its assets with those of any other Person;

 

(f)            observing
all limited liability company formalities required in this Agreement and by its
Certificate of Formation;

 

(g)           not
acquiring obligations of its Members, the Managing Member or any of their
respective Affiliates (other than the Company or the Project Companies);

 

79

 

(h)           holding
itself out as a separate entity; and

 

(i)            correcting
any known misunderstanding regarding its separate identity.

 

ARTICLE 9.

SPECIAL EVENTS

 

9.01        Special Events.  This Article 9 shall apply to any
of the following events occurring prior to the Flip Point to the extent not
caused by the willful misconduct or bad faith of the Class A Member (each
such event, a “Special Event”):

 

(a)           any
Project Company or the Company becomes Bankrupt, except for an Involuntary
Bankruptcy;

 

(b)           the
Class B Member becomes Bankrupt and such Bankruptcy has a Material Adverse
Effect;

 

(c)           the
Company, any Project Company or any of their respective Affiliates has failed
to comply with or is in default (after the expiration of any applicable cure
rights or grace period) of any term, covenant or provision applicable to it
contained in any Principal Project Document (other than a Debt Financing
Document, which is subject to Section 9.01(d)) to which such Person
is a party (except with respect to (i) renewal or replacement of insurance
policies for the Project, which is subject to Section 6.09 above or
(ii) such a default caused by the action or inaction of an unrelated third
party not controllable by the Company or such Project Company, a force majeure
event or forces of nature (e.g., less wind than expected) and such
non-compliance or default has a Material Adverse Effect;

 

(d)           the
Company, any Project Company or any of their respective Affiliates is declared
to be in default (after the expiration of any applicable cure rights or grace
periods in any Debt Financing Document) of any term, covenant or provision
applicable to it contained in any Debt Financing Document resulting in the
acceleration of the obligations thereunder (taking into account any waivers
thereof) or a payment default (taking into account any waivers thereof)that is
not cured within forty-five (45) Days thereof, except with respect to such a
default caused by the action or inaction of an unrelated third party not
controllable by the Company or such Project Company, a force majeure event or
forces of nature (e.g., less wind than expected);

 

(e)           the
Company shall fail to pay or make any distributions, to the extent permitted
under the Debt Financing Documents, to any Class A Member required to be
paid under this Agreement in the amounts so required to be paid following a
required payment date and such failure is not cured within thirty (30) Days
after written notice is provided by a Majority of Class A Members and
there is not a bona fide dispute as to such required payment;

 

(f)            a
Change of Member Control of the Class B Member or the Managing Member not
otherwise permitted hereunder shall occur;

 

(g)           any
violation of Applicable Laws caused by the action or inaction of the Class B
Member or Managing Member acting in any capacity which (i) has a Material
Adverse Effect or (ii) imposes any criminal liability on any of the
Company or any Project Company; r

 

80

 

(h)           the
Managing Member, the Class B Member or any of their respective Affiliates
commits any act of fraud, bad faith, willful misconduct or gross negligence
resulting in Relevant Damages to the Class A Members; or

 

(i)            the
Company or Initial Member fails to comply with Section 5 of the
Multi-Party Sideletter; provided, in the case of the Company, such failure is
not caused by the actions or failure to act of the Class A Members.

 

9.02        Certain Rights Following Special Event.  From and after the occurrence of a Special
Event, the Class A Members upon a decision of the Majority of Class A
Members may give written notice of the Special Event to the Company and the Class B
Member.  The Managing Member or the Class B
Member, as applicable, shall have a thirty (30) Days thereafter to Cure the
Special Event (or such other cure period as expressly set forth in Section 9.01
with respect to such Special Event) if such Special Event is amenable to
Cure.  If the Special Event is not Cured
to the Class A Members’ reasonable satisfaction within the applicable Cure
period (as determined by a Majority of the Class A Members), then the
following rights and remedies of the Class A Members shall immediately
apply, but shall no longer apply upon reaching the Flip Point with respect to
any Special Event other than those set forth in Sections 9.01(e), (g)(ii) and
(h), in addition to any other right available to it hereunder, at law or in
equity:

 

(a)           no
redemption of the Class B Member’s Membership Interest or distributions
from the Company to the Class B Member shall be made until each Class A
Member has recovered all Relevant Damages suffered by it as a consequence of
such Special Event;

 

(b)           the
Class A Members shall have the right, upon decision of the Majority of Class A
Members, to remove, appoint or become the substitute Managing Member in
accordance with Section 6.08;

 

(c)           the
Class A Members (or the substitute Managing Member appointed pursuant to Section 6.08)
shall have the right to cause the Company to take any action which would
otherwise require the consent or approval of the Class B Member, including
any vote by the Class B Member in connection with the unanimous approval
of all Members herein, other than other than the actions described in
subsections (a)–(i) of the definition of Required Voting Percentage
(substituting “Class B Member” for “Class A Member” where it appears
therein); or

 

(d)           in
the case of a Special Event described in Section 9.01(c), (g) or
(e), the Class A Members shall be granted an irrevocable power of
attorney for the purposes of handling all matters relating to the operation of
the business of the Company, any Project Company or any Wind Farm.

 

9.03        Cure of
Special Events.

 

(a)           For
purposes of this Agreement, “Cure”
of a Special Event shall be deemed to have occurred (and such Special Event to
have been “Cured”)
only if (a) all of the events and circumstances giving rise to the Special
Event shall have been cured by the Company, the Managing Member or the Class B
Member, as applicable, (b) the Company or the Class B Member shall
have indemnified the Class A Members from and against all Relevant Damages
incurred by the Class A Members caused by, arising from or in connection
with the Special 

 

81

 

Event or its Cure;
provided, for purposes of this Section 9.03(a), the amount of such
Relevant Damages shall be determined pursuant to Section 9.03(b) and
shall be reduced by any and all amounts paid to the Class A Members under Section 6.02
of the Contribution Agreement in connection with the breach of a covenant or
the inaccuracy of a representation or warranty thereunder that arose out of the
same events and circumstances that gave rise to the Special Event hereunder,
and (c) all such Relevant Damages incurred by the Class A Members as
a result of the Special Event shall have been fully paid to the Class A
Members.

 

(b)           The
Class A Members shall provide the Company and the Class B Member
written notice of the amount of Relevant Damages sustained by the Class A
Members as a result a Special Event, the amount of which shall be determined in
the reasonable discretion of the Certified Public Accountants.

 

9.04        Satisfaction of Obligations for Special Events.

 

(a)           If there is a Dispute with respect to a
Special Event, any distributions of the Class B Member (not to exceed the
amount determined by the Accountants under Section 9.03(b)) shall
be paid into an escrow (the “Escrow”) beginning after the period set forth in Sections 11.02(a) and
(b) and the Escrow shall be maintained at a commercial bank that is
a member of the Federal Reserve System organized under the laws of the United
States or any state thereof, that has a combined capital and surplus of at
least $1,000,000,000 and a rating of its long-term senior unsecured
indebtedness of at least “A-” from Standard & Poor’s or “A3” from
Moody’s Investor Service, Inc., and that is otherwise reasonably acceptable
to the Class B Member and the Class A Members (the “Escrow Agent”) pursuant to an escrow agreement in such
Escrow Agent’s customary form and providing as follows:

 

(i)            funds paid
into such Escrow shall be invested in Cash Equivalents (such escrowed funds
together with the earnings thereon being referred to herein as the “Escrowed Funds”);

 

(ii)           Escrowed
Funds shall be disbursed by the Escrow Agent as follows:

 

(A)          Upon the
Escrow Agent’s receipt of a written notice from the Class B Member and
the Class A Members, the Escrow Agent shall disburse Escrowed Funds to the
Party or Parties, and in the amount or amounts, specified in such joint written
notice; and

 

(B)           Upon
receipt by the Escrow Agent of a judgment or order of a court of competent
jurisdiction regarding all matters relating to the disputed Special Event
and/or Relevant Damages, as applicable, and if there exists a right of appeal
therefrom, the expiration of the time for appealing such judgment or order
without appeal of such judgment or order by any party, the Escrow Agent shall
disburse the Escrowed Funds as specified in or consistent with such judgment or
order.

 

(iii)          the Class B Member shall
pay the Escrow Agent’s fees and charges related to the Escrow unless the amount
finally determined to be payable 

 

82

 

to the Class A Members pursuant to
subsections (A) or (B) above is less than 75% of the amount of
the disputed Relevant Damages, in which case, the Class A Members shall
bear all of the Escrow Agent’s fees and charges.

 

(b)           Notwithstanding
anything to the contrary in this Agreement, no Class A Member shall be
considered to have sustained any Relevant Damages as a result of a Special
Event until the amount of such losses (together with any losses incurred under Section 6.02
of the Contribution Agreement, any provision of this Agreement and Article 10
of each of the Management Services Agreements) exceeds $100,000.

 

(c)           Any
undisputed portion of the Relevant Damages, as shall be reduced by any and all
amounts paid to the Class A Members under Section 6.02 of the
Contribution Agreement in connection with the breach of a covenant or the
inaccuracy of a representation or warranty thereunder that arose out of the
same events and circumstances that gave rise to the Special Event hereunder,
shall be paid as and when due.

 

ARTICLE 10.

PURCHASE OPTION, ORGANIC TRANSACTIONS AND IMPASSES, AND BUYOUT EVENTS

 

10.01      Purchase
Option Event.

 

(a)           Except
as otherwise provided in Section 10.02, this Article 10
and the provisions of Article 3 shall apply upon the occurrence of
the Purchase Option Event.  A “Purchase
Option Event” shall be any of the following:

 

(i)            the later to occur of:

 

(A)          the Distribution Date first succeeding the Flip Point,
or

 

(B)           the tenth anniversary of the Effective Date; or

 

(ii)           the fifth anniversary of the later of the dates
specified in Section 10.01(a)(i).

 

The Managing Member shall notify the Members promptly, but not more
than five (5) Days, following the occurrence of a Purchase Option Event
described in clause (i) of this Section 10.01(a),
specifying the Purchase Option Event that has occurred and the latest date on
which the Class B Member may deliver the Intent Notice (as defined below)
in accordance with Section 10.01(b).

 

(b)           Upon
the occurrence of a Purchase Option Event, the Class B Member shall have
the option to acquire all (but not less than all) of the Class A Units for
Fair Market Value in accordance with procedures that are substantively
equivalent to those set forth in Section 3.03(b)(iii).  Such option may be exercised in the following
manner:

 

(i)            Upon the occurrence of a Purchase Option Event, the Class B
Member shall have sixty (60) Days to give notice of its intent to exercise its 

 

83

 

option
hereunder (the “Intent Notice”) to
each Class A Member and the Company. 
Once the Class B Member has received an Intent Notice, the Class A
Members and the Class B Member shall attempt to agree upon the Fair Market
Value of the Class A Units.

 

(ii)           If no agreement regarding the Fair Market Value of the
Class A Units has been reached by the Class B Member and the Class A
Members within thirty (30) Days following receipt by the Class A Members
and the Company of the Intent Notice, the Class B Member shall, by notice
given to the Class A Members within ten (10) Days after the
expiration of such thirty (30) Day period, designate one Qualified Appraiser,
and the Class A Members shall, by notice to the Class B Member within
such ten (10) Day period, designate a Qualified Appraiser.  The two Qualified Appraisers shall thereupon
promptly endeavor to agree upon the Fair Market Value of the Class A
Units.  If within thirty (30) Days, the
two Qualified Appraisers do not agree upon such Fair Market Value, they shall,
within twenty (20) Days jointly designate a third Qualified Appraiser.  Within thirty (30) Days following the
appointment of the third Qualified Appraiser, the three appraisers shall
determine the Fair Market Value of the Class A Units by taking the average
of the two appraisals having the least difference between them.  The Class B Member shall pay the fees
and expenses of each Qualified Appraiser.

 

(iii)          Upon receipt of the Qualified Appraisers’ decision, if
the Class B Member desires to exercise its option to purchase the Class A
Units, the Class B Member shall, within thirty (30) Days following receipt
of the Qualified Appraisers’ decision, notify the Class A Members of its
election to purchase the Class A Units at the price specified in the
decision of the Qualified Appraisers determined under Section 10.01(b)(ii).

 

(c)           If
the Class B Member exercises the option to purchase the Class A Units
in accordance with the provisions of Section 10.01(b) and
subject to Section 5.06(b)(vii)(C), the closing of the purchase
shall occur no later than sixty (60) Days after either (i) the Members
agree on the Fair Market Value pursuant to Section 10.01(b)(i) or
(ii) the receipt of the Class B Member’s notification of its election
to purchase the Class A Units delivered pursuant to Section 10.01(b)(iii),
as applicable; provided, however,
in no event shall the closing occur earlier than the fifth (5th)
Business Day after the receipt of all applicable Governmental Approvals to the
purchase.

 

10.02      Organic
Transaction and Impasses.

 

(a)           If
(i) an Organic Transaction is expected to occur after the fifth (5th)
anniversary of the Effective Date, or at any time (A) after the fifth (5th)
anniversary of the Effective Date, any Class A Member objects to any proposed
Material Action under Section 6.04 resulting in a deadlock that
reasonably could be expected to have a Material Adverse Effect or (B) after
the Flip Point any Class A Member objects to any action set forth in
subsections (a)–(i) of the definition of Required Voting Percentage,
and the Members in either case have not been able to resolve such objection
pursuant to the negotiations mandated by Article 11 and any Class A

 

84

 

Member is then
entitled to take such objection to litigation in accordance with Section 11.02(c) (an
“Impasse”), and (ii) the
Class B Member or the Company elects to proceed with the Organic
Transaction or such proposed action, as applicable, without the prior written
consent of the Class A Members as required hereunder, then the Class B
Member shall give notice of such election to the Class A Members as
required under Section 10.02(b) and thereafter shall have the
right to make an additional Capital Contribution to the Company in an amount
sufficient to enable the Company to redeem all outstanding Class A Units
in the case of an Organic Transaction, or the objecting Class A Member’s Class A
Units in the case of an Impasse, and the Company shall redeem such Class A
Units, all in accordance with the provisions of this Section 10.02.

 

(b)           In
the case of an Organic Transaction expected to occur after the fifth (5th)
anniversary of the Effective Date, the Class B Member shall at any time
within one-hundred eighty-five (185) Days of the anticipated closing date of
the Organic Transaction give notice to each Class A Member of its election
to cause the redemption of the outstanding Class A Units on the terms and
conditions set forth in Section 10.02(c).  In the case of an Impasse, the Class B Member
shall at any time within thirty (30) Days of the date that the objecting Class A
Member is entitled to take its objection to litigation under Section 11.02(c),
give notice to each Class A Member of its election to cause the redemption
of the objecting Class A Member’s Class A Units on the terms and
conditions set forth in Section 10.02(c).

 

(c)           If, prior to the Flip Point, the Class B Member
proceeds with the redemption of the Class A Units under Sections 10.02(a) and
(b) in the case of an Organic Transaction
or the Class B Member elects to exercise the redemption right under Section 10.02(b) in
the case of an Impasse, the Class B
Member shall contribute cash to the Company in an amount no less than the
amount necessary to enable the Company to (i) redeem the Class A
Units of the Class A Member(s) for cash in an amount (the “redemption
amount”) equal to, at the option of the Class A Member, either the Fair
Market Value of the Class A Units or the amount that results in the
redeemed Class A Member(s) to be deemed to have realized an Internal
Rate of Return of ***% per annum from the Initial Equity Capital Contribution
Date, taking into account all prior distributions, Tax Costs (including any
minimum gain chargeback) and Tax Benefits, and (ii) pay in full any loans
made or deemed made by the redeemed Class A Member(s).  If, after the Flip Point, the Class B Member proceeds with the
redemption of the Class A Units under Sections 10.02(a) and
(b) in the case of an Organic Transaction or the Class B
Member elects to exercise the redemption right under Section 10.02(b) in
the case of an Impasse, the Class B Member shall contribute cash to the
Company in an amount no less than the
amount necessary to enable the Company to redeem the Class A Units of the Class A
Member(s) for cash in an amount (the “redemption amount”) equal to the
Fair Market Value of the Class A Units.  The procedure for determining Fair Market Value for
purposes of the foregoing shall be as set forth in Section 10.01(b)(ii) and
(iii).  Unless
otherwise agreed among the Company, the Class B Member and the redeemed Class A
Member(s), the redemption payment shall be paid by or on behalf of the Company by wire transfer of immediately available
funds on the closing date to an account(s) designated by the Class A
Member(s).  The closing of such
redemption shall occur (i) in the case of an Organic Transaction, on the closing date of the Organic Transaction; and
(ii) in the case of an Impasse, on the
date thirty (30) Days from the date on which the Class B Member gives
notice of its election to cause the redemption of the objecting Class A
Member’s 

 

85

 

Class A Units
(or, in either case, if later, the fifth (5th) Business Day after
the receipt of all applicable Governmental Approvals of such purchase).

 

10.03      Buyout
Events.

 

(a)           This
Section 10.03 shall apply to any of the following events (each a “Buyout
Event”):

 

(i)            a Member becomes Bankrupt;

 

(ii)           prior to the earlier to occur of the end of the PTC
Period or the Flip Point, (A) a Class A Member fails to qualify as an
Approved Investor; provided, for purposes of the use of the term “Approved
Investor” in this clause, the credit ratings set forth in clause (a) of
the definition of “Approved Investor” shall be “BBB” for Standard &
Poor’s and “Baa2” for Moody’s, (B) the Managing Member shall have notified
such Class A Member of such failure to qualify, and (C) such failure
continues for ninety (90) days after delivery of such notice to such Class A
Member; or

 

(iii)          there occurs an event that makes it unlawful for the
Member to continue to be a Member.

 

In each case,
the Member with respect to whom a Buyout Event has occurred is referred to
herein as the “Buyout Member.”

 

(b)           If
(i) a Buyout Event occurs and the Buyout Member is a Class A Member,
then the other Class A Members shall first have the option to acquire the
Membership Interest of the Buyout Member (or to cause it to be acquired by a
third party designated by the such other 
Members) and, if such other Class A Members within fifteen (15)
Days do not elect such option, then any other Member may elect such option, or (ii) a
Buyout Event occurs and the Buyout Member is a Class B Member, then each
of the other Members shall have the option to acquire the Membership Interest
of the Buyout Member (or to cause it to be acquired by a third party designated
by the such other  Members), in each case
in accordance with procedures and requirements that are substantively equivalent
to those set forth in Section 3.03(b)(iii) (and with the
Members exercising such preferential right also being referred to herein as “Purchasing
Members”).

 

(c)           The
purchase price (the “Purchase Price”)
for a Membership Interest being purchased pursuant to this Section 10.03
shall be the Fair Market Value of such Membership Interest determined in the
following manner:

 

(i)            Within thirty (30) Days following the occurrence of
the Buyout Event, the Buyout Members and the Purchasing Members shall appoint a
Qualified Appraiser. Within thirty (30) Days following the appointment of the
Qualified Appraiser, such appraiser shall determine the Fair Market Value of
the applicable Membership Interest utilizing valuation methods and practices
commonly used in the independent electric generating industry, and taking into
account all of the facts and circumstances relating to the Company, including
any 

 

86

 

cash
reserves that may be held by the Company, but excluding cash withheld from
distribution to the Buyout Member pursuant to Section 10.03(b).  The decision of the Qualified Appraiser shall
be binding and conclusive on the Parties absent manifest error.  The Buyout Member on the one hand, and the
Purchasing Members, on the other hand, shall each pay fifty percent (50%) of
the fees and expenses of the Qualified Appraiser (other than a Buyout Event
specified in Section 10.03(a)(ii) not caused by the action or
inaction of the Buyout Member).

 

(ii)           The Parties acknowledge and agree that the provisions
of this Section 10.03(c) are fair and reasonable and are a
material inducement to their entering into this Agreement.

 

(d)           If
an option to purchase is exercised in accordance with the provisions of this Section 10.03,
the closing of such purchase shall occur on the thirtieth (30th) Day
after the determination of the Fair Market Value pursuant to Section 10.03(c) (or,
if later, the fifth (5th) Business Day after the receipt of all
applicable Governmental Approvals of such purchase), and shall comply in all
material respects with the requirements set forth in Section 3.03(b)(iii).  Unless otherwise agreed among the Buyout
Member and the Purchasing Members, the Purchase Price shall be paid in cash at
such closing.

 

(e)           Upon
the occurrence of a closing under Section 10.03(d), the following
provisions shall apply to the Buyout Member (now a “Terminated
Member”):

 

(i)            The Terminated Member shall cease to be a Member
immediately upon the occurrence of the closing.

 

(ii)           The Terminated Member shall no longer be entitled to receive
any distributions (including liquidating distributions) or allocations from the
Company, and it shall not be entitled to exercise any voting or consent rights
or to receive any further information (or access to information) from the
Company (other than any required tax information).

 

(iii)          The Terminated Member must pay to the Company all
amounts owed to the Company by such Terminated Member.

 

(iv)          The Terminated Member shall remain obligated for all
liabilities it may have under this Agreement or otherwise with respect to the
Company that accrue prior to the closing.

 

(v)           The Membership Interest, including the Capital Account
balance attributable thereto, of the Terminated Member shall be allocated among
the Purchasing Members in the proportion of the total Purchase Price paid by
each Purchasing Member.

 

87

 

ARTICLE 11.

DISPUTE RESOLUTION

 

11.01      Disputes.  This Article 11 shall apply to
any dispute arising under or related to this Agreement (whether arising in
contract, tort or otherwise, and whether arising at law or in equity),
including (a) any dispute regarding the construction, interpretation,
performance, validity or enforceability of any provision of this Agreement or
whether any Person is in compliance with, or breach of, any provisions of this
Agreement, and (b) the applicability of this Article 11 to a
particular dispute.  Notwithstanding the
foregoing, this Article 11 shall not apply to any matters that,
pursuant to the provisions of this Agreement, are to be resolved by a vote of
the Members (including through the Managing Member).  Any dispute to which this Article 11
applies is referred to herein as a “Dispute.”  With respect to a particular Dispute, each
Member that is a party to such Dispute is referred to herein as a “Disputing Member.”

 

11.02      Negotiation
to Resolve Disputes.  If a
Dispute arises, the Disputing Members shall attempt to resolve such Dispute
through the following procedure:

 

(a)           first,
the representatives of each of the Disputing Members shall promptly meet
(whether by phone or in person) in a good faith attempt to resolve the Dispute;

 

(b)           second,
if the Dispute is still unresolved after twenty (20) Days following the
commencement of the negotiations described in Section 11.02(a),
then a designated executive officer of each Disputing Member shall meet
(whether by phone or in person) in a good faith attempt to resolve the Dispute;
and

 

(c)           third,
if the Dispute is still unresolved after ten (10) Days following the
commencement of the negotiations described in Section 11.02(b),
then any Disputing Party may take such Dispute to litigation.

 

11.03      Flip
Point Dispute Resolution. 
If Class A Members constituting a Majority of Class A Members
shall dispute any item or procedure or calculation of, or which affects, the
Flip Point contained in any notice or report delivered to such Class A
Member, such disputing Class A Members shall notify the Managing Member
within ten (10) Days following receipt of the notice or report disputed,
setting forth in reasonable detail such disputing Class A Members’
objections to such calculation, and the Parties shall attempt in good faith to
promptly resolve any differences as to the calculation so disputed.  If the Parties are unable to resolve any such
differences within ten (10) Days after the date of the disputing Class A
Members’ notice, then the actual calculation shall be finally referred to a
partner of the Certified Public Accountant acting as an independent expert (the
“Independent Expert”), designated
by such firm upon the request of either the disputing Class A Members or
the Managing Member. The disputing Class A Members and the Managing Member
shall submit the Tracking Model and all other data necessary for the
Independent Expert to make his determination, including any additional data
requested by the Independent Expert. The Independent Expert shall keep
confidential all information submitted to him in connection with his resolution
of the dispute(s) hereunder.  The
Independent Expert shall be requested to render his determination as promptly
as possible after he receives all necessary data.  The determination of the Independent Expert
resolving a dispute pursuant to this Section 11.03 shall be final
and binding upon the disputing Parties absent manifest error, and such
determination shall apply for all subsequent periods to any item or procedure
substantially similar to that determined hereunder.  The Company shall pay the fees of the
Independent Expert incurred for such determination.

 

88

 

ARTICLE 12.

DISSOLUTION, WINDING-UP AND TERMINATION

 

12.01      Dissolution.  The Company shall dissolve and its affairs
shall be wound up on the first to occur of the following events (each a “Dissolution Event”):

 

(a)           the
expiration of the term specified in Section 2.06 of this Agreement;

 

(b)           the
unanimous consent of the Members to dissolve the Company;

 

(c)           the
disposition of all or substantially all of the Company’s business and assets;
or

 

(d)           an
event that makes it unlawful for the business of the Company to be carried on.

 

12.02      Winding-Up
and Termination.

 

(a)           On
the occurrence of a Dissolution Event, the Managing Member shall act as
liquidator.  The liquidator shall proceed
diligently to wind up the affairs of the Company and make final distributions as
provided herein and in the Act.  The
costs of winding up shall be borne as a Company expense.  Until final distribution, the liquidator
shall continue to operate the Company properties with all of the power and
authority of the Members.  The steps to
be accomplished by the liquidator are as follows:

 

(i)            as promptly as possible after dissolution and again
after final winding up, the liquidator shall cause a proper accounting to be
made by the Certified Public Accountants of the Company’s assets, liabilities,
and operations through the last calendar day of the month in which the
dissolution occurs or the final winding up is completed, as applicable;

 

(ii)           the liquidator shall discharge from Company funds all
of the indebtedness and other debts, liabilities and obligations of the Company
or otherwise make adequate provision for payment and discharge thereof
(including the establishment of a cash escrow fund for contingent liabilities
in such amount and for such term as the liquidator may reasonably determine);
and

 

(iii)          with respect to the remaining assets of the Company:

 

(A)          the liquidator shall use all commercially reasonable
efforts to obtain the best possible price and may sell any or all Company
property, including to Members at such price, but in no event lower than the
fair market value thereof; and

 

(B)           with respect to all Company property that has not been
sold, the Gross Asset Values of such property shall be determined pursuant to
subsection (b) of the definition of Gross Asset Value; and

 

(iv)          items of income and gain (including any income and
gain attributable to the disposition of Property pursuant to Section 12.02(a)(iii))
for the 

 

89

 

Allocation
Year during which the Dissolution Event occurs and thereafter shall first be
allocated to each Member having a deficit balance in its Capital Account, in
the proportion that such deficit balance bears to the total deficit balances in
the Capital Accounts of all Members, until each Member has been allocated items
of gross income and gain equal to any such deficit balance in its Capital
Account and such deficit balance has thereby been eliminated; provided, during
the PTC Period any allocations required to be made under this Section 12.02(a)(iv) shall
be made by giving the Class A Members a priority allocation of gross
income from the production and sale of electricity that generates PTCs (and
thus the Class A Members shall be allocated the PTCs);

 

(v)           any remaining items of income, gain, loss and deduction
(including any items attributable to the disposition of Property pursuant to Section 12.02(a)(iii))
for the Allocation Year during which the Liquidation Date occurs shall be
allocated among the Members in such manner as to ensure that, to the greatest
extent feasible, following these allocations, the balances in the Capital
Accounts of the Members are expected to result in distributions pursuant to Section 12.02(a)(vi) in
accordance with the following target liquidation distributions:

 

(A)          First, 100% to EFS Noble Holdings or any successor to the Class A
Units held by EFS Noble Holdings on the Effective Date in an amount equal to
the excess, if any, of (1) the Relevant Damages calculated under Section 3.02(d)(iii) or
3.02(e)(iii) over (2) the aggregate distributions made
pursuant to Section 5.02(f).

 

(B)           Second, 100% to the Class B Member
in accordance with its Pro Rata Share until the sum of the aggregate
amount of Distributable Cash and Liquidation Proceeds distributed and
distributable to the Class B Member equals the aggregate amount of Capital
Contributions made by the Class B Member with respect to Class B
Units; provided, no allocation under this Section 12.02(a)(v)(B) to
achieve the target liquidation distribution to the Class B Member shall
create or increase a deficit balance in the Capital Account of any Class A
Member;

 

(C)           Third, 100% to the Class A Members in accordance with
their Pro Rata Shares until the Flip Point shall occur (for the avoidance of
doubt, using the calculation rules and conventions of Section 5.06(b)(i) through
(iv)); and

 

(D)          Fourth, subject to Section 5.03, 5.00% to the Class A
Members in accordance with their Pro Rata Shares and 95.00% to the Class B
Member in accordance with its Pro Rata Share; and

 

(vi)          After giving effect to all allocations (including
those under Section 5.01 and Sections 12.02(a)(iv) and (v)),
all distributions (including those under Section 5.02) and all
contributions (including those under Sections 4.01 and 

 

90

 

4.02 and pursuant to the PAYG Agreement)
for all periods, all remaining cash and property (including any Distributable
Cash and Liquidation Proceeds) shall be distributed to the Members in
accordance with the positive balances in their Capital Accounts.

 

(vii)         Any distribution to the Members in respect of their
Capital Accounts pursuant to this Section 12.02 shall be made by
the end of the Company taxable year in which the Dissolution Event occurs (or
if later, within ninety (90) Days after the date of such Dissolution Event).

 

(b)           The
distribution of cash or property to a Member in accordance with the provisions
of this Section 12.02 constitutes a complete return to the Member
of its Capital Contributions and a complete distribution to the Member on
account of its Membership Interest and all the Company’s property and
constitutes a compromise to which all Members have consented pursuant to Section

18-502(b) of the Act.

 

12.03      Deficit
Capital Accounts.  In the
event the Company is “liquidated” within the meaning of Treasury Regulation Section 1.704-1(b)(2)(ii)(g),
distributions shall be made pursuant to this Article 12 to the
Members who have positive Capital Accounts in compliance with Treasury
Regulation Section 1.704-1(b)(2)(ii)(b)(2).  After giving effect to all allocations
(including those under Section 5.01 and Sections 12.02(a)(iv) and
(v)), all distributions (including those under Section 5.02)
and all contributions (including those under Sections 4.01 and 4.02
and pursuant to the PAYG Agreement) for all periods, if any Member has a
deficit Capital Account balance, such Member shall be obligated to contribute
cash to the Company in an amount equal to such deficit balance by the end of
the taxable year of the Company during which the liquidation of the Company
occurs, or if later, within ninety (90) Days after the date of such
liquidation; provided, however, the restoration obligation
of all Class A Members in the aggregate shall not be more than $0 and any deficit in excess of such
amount shall not be considered a debt owed to the Company or to any other
Person for any purpose whatsoever; provided further, that each Class A
Member shall be required to contribute its Pro Rata Share of such restoration
obligation.  The Class A Members
shall have the right at their option to increase the amount of the restoration
obligation in this Section 12.03.

 

12.04      Certificate
of Cancellation.  On
completion of the distribution of Company assets as provided herein, the
Members (or such other Person or Persons as the Act may require or permit)
shall file a certificate of cancellation with the Secretary of State of
Delaware, cancel any other filings made pursuant to Section 2.05,
and take such other actions as may be necessary to terminate the existence of
the Company.  Upon the filing of such
certificate of cancellation, the existence of the Company shall terminate (and
the Term shall end), except as may be otherwise provided by the Act or other
Applicable Law.  All costs and expenses
in fulfilling the obligations under this Section 12.04 shall be
borne by the Company.

 

91

 

ARTICLE 13.

GENERAL PROVISIONS

 

13.01      Offset.  Whenever the Company (or any Person on behalf
of the Company) is to pay any sum to any Member, any uncontested amounts then
owed by that Member to the Company may be deducted from such sum before
payment.

 

13.02      Indemnification.

 

(a)           Except
as otherwise provided in this Agreement, the Company shall indemnify and hold
harmless each of the Managing Member, the Members, officers, employees, agents,
representatives and Affiliates of the Company and the Project Companies (the “Indemnitees”)
to the full extent permitted by law from and against any and all losses,
claims, demands, costs, damages, liabilities, expenses of any nature (including
reasonable attorneys’ fees and disbursements), judgments, fines, settlements
and other amounts (collectively, “Liabilities”)
arising from any and all claims, demands, actions, suits or proceedings,
whether civil, criminal, administrative or investigative, relating to the
performance or nonperformance of any act by the Company or by the Indemnitee in
the course of its service or duties to the Company and in which the Indemnitee
is involved or named as a party, or threatened to be involved or named as a
party by reason of its relationship to the Company; provided, no Indemnitee
shall be entitled to any indemnification hereunder for such Liabilities to the
extent arising from or caused by the gross negligence, fraud, willful misconduct
or bad faith of such Indemnitee.

 

(b)           Liabilities
incurred in defending or responding to any pending or threatened civil,
criminal or administrative action, proceeding, suit or investigation described
herein shall be reimbursed by the Company to the Indemnitee who is the subject
thereof in advance of the final disposition of such claim, action, proceeding
or investigation, upon receipt of (i) substantiation of such Liabilities
and (ii) an undertaking by the Indemnitee seeking such reimbursement to
repay such amount if it shall ultimately be determined that it is not entitled
to be indemnified pursuant to this Article 13.

 

(c)           Any
indemnification pursuant to Section 13.02 shall be satisfied solely
out of the assets of the Company, as an expense of the Company.  No Member shall be subject to personal
liability by reason of these indemnification provisions.  The provisions of this Section 13.02(c) are
for the benefit of the Indemnitees and shall not be deemed to create any rights
for the benefit of any other Person.

 

13.03      Cumulative
Remedies; Specific Performance.

 

(a)           The exercise of any remedy provided for in
this Agreement, including without limitation any remedy afforded in Section 9.02
or in Section 13.02, shall not be construed as a waiver or release by
any Member or Indemnitee of any rights or remedies available to it under any
Applicable Laws.  The rights of
indemnification provided for in Section 13.02 or in Section 9.02
are not exclusive but shall be cumulative with any other right that any Member or
an Indemnitee may have or may hereafter acquire under any Applicable Law, any
provision of this Agreement, any provision of any other agreement or otherwise
and shall continue as to any Member or an Indemnitee who has ceased to serve in
such capacity and shall inure to the benefit of the heirs, successors,
assignees and administrators of such Member or Indemnitee.  In no event shall the exercise of remedies by
a Member or Indemnitee under any Applicable Law, hereunder or under any
provision of any other agreement or otherwise result in such Member or 

 

92

 

Indemnitee recovering
duplicative damages in respect of the same breach or injury.  No assertion of any right to indemnity
hereunder shall be construed or interpreted as an election of remedies by any
Member or an Indemnitee.

 

(b)           Each
Member agrees that irreparable damages will result if this Agreement is not
performed in accordance with its terms, and each Member agrees that any damages
available at law for a breach of this Agreement would not be an adequate
remedy.  Therefore, to the full extent
permitted by Applicable Law, the provisions hereof and the obligations of the
Members and the Managing Member hereunder shall be enforceable in a court of
equity, or other tribunal with jurisdiction, by a decree of specific
performance, and appropriate injunctive relief may be applied for and granted
in connection therewith.

 

(c)           Any
recovery of Relevant Damages shall be subject to the floor set forth in Section 9.04(b).

 

13.04      Notices.  Except as expressly set forth to the contrary
in this Agreement, all notices, requests or consents provided for or permitted
to be given under this Agreement must be in writing and must be delivered to
the recipient in person, by courier or certified mail, return receipt
requested, or by facsimile or other electronic transmission.  A notice, request or consent given under this
Agreement is effective on receipt by the Member to receive it; provided, a
facsimile or other electronic transmission that is transmitted after the normal
business hours of the recipient shall be deemed effective on the next Business
Day.  All notices, requests and consents
to be sent to a Member must be sent to or made at the addresses given for that
Member on Exhibit B, as amended from time to time.  A copy of any notice, request or consent to
the Company must be given to all of the Members.  Whenever any notice is required to be given
by Applicable Law, the Delaware Certificate or this Agreement, a written waiver
thereof, signed by the Person entitled to notice, whether before or after the
time stated therein, shall be deemed equivalent to the giving of such notice.

 

13.05      Entire
Agreement; Superseding Effect. 
This Agreement, the Contribution Agreement and the PAYG Agreement
constitutes the entire agreement of the Members and their Affiliates relating
to the Company and the transactions contemplated hereby and supersedes all
provisions and concepts contained in all prior contracts or agreements between
the Members or any of their Affiliates with respect to the Company and the
transactions contemplated hereby, whether oral or written; provided, the
Members acknowledge and agree that certain provisions of this Agreement are the
subject of the Dexia/GE Sideletter and shall be applied or given effect to the
extent provided therein.

 

13.06      Press
Releases.  Subject to Section 3.06,
each Member agrees that it shall not (and shall cause its Affiliates not to),
without the consent of the Required Voting Percentage, issue a press release or
have any contact with or respond to the news media about the Wind Farm, except
as required by securities or similar laws or stock exchange regulations
applicable to a Member and its Affiliates, and except for press releases by the
Class B Member or its Affiliates relating to the Wind Farms (but not
containing information identifying any Member or such Members’ equity
investment in the Company).  Any such
press release by a Member or its Affiliates shall be subject to review by the
Members, and, if approval is required, the approval of the Members as provided
in the preceding sentence.

 

93

 

13.07      Effect
of Waiver or Consent. 
Except as otherwise provided in this Agreement, a waiver or consent,
express or implied, to or of any breach or default by any Member in the
performance by that Member of its obligations with respect to the Company is
not a consent or waiver to or of any other breach or default in the performance
by that Member of the same or any other obligations of that Member with respect
to the Company.  Except as otherwise
provided in this Agreement, failure on the part of a Member to complain of any
act of any Member or to declare any Member in default with respect to the
Company, irrespective of how long that failure continues, does not constitute a
waiver by that Member of its rights with respect to that default until the
applicable statute-of-limitations period has run.

 

13.08      Amendment or Restatement.  This Agreement or the Delaware Certificate
may be amended or restated only by a written instrument executed (or, in the
case of the Delaware Certificate, approved) by all of the Members.

 

13.09      Binding Effect.  Subject to the restrictions on Dispositions
set forth in this Agreement, this Agreement is binding on and shall inure to
the benefit of the Members and their respective successors and permitted
assigns.

 

13.10      Governing Law; Construction.  This Agreement is governed by and shall be
construed in accordance with the law of the State of Delaware, excluding any
conflict-of-laws rule or principle that might refer the governance or the
construction of this Agreement to the law of another jurisdiction.  In the event of a direct conflict between the
provisions of this Agreement and any mandatory, non-waivable provision of the
Act, such provision of the Act shall control.

 

13.11      Jurisdiction; Service of Process.  Each of the Parties hereto hereby irrevocably
consents to the non-exclusive jurisdiction of the courts of the State of
Delaware, and of any federal court located therein in connection with any suit,
action or other proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby; agrees to waive any objection to venue in the
State of Delaware; and agrees that, to the extent permitted by law, service of
process in connection with any such proceeding may be effected by mailing same
in the manner provided in Section 13.03.  Each of the Parties hereto waives any right
it may have to a jury trial in any action related to this Agreement or the
transactions contemplated hereby.

 

13.12      Third Parties.  The provisions of this Agreement are intended
solely to benefit the Members and, to the fullest extent permitted by
applicable law, should not be construed as conferring any benefit upon any
creditor of the Company (and no such creditor shall be a third-party
beneficiary of this Agreement) and no Member shall have any duty or obligation
to any creditor of the Company to make any additional contributions to the Company.

 

13.13      Severability. 
If one or more of the provisions of this Agreement are held by a proper
court to be unenforceable under applicable law, portions of such provisions, or
such provisions in their entirety, to the extent necessary and permitted by law,
shall be severed herefrom, and the balance of this Agreement shall be
enforceable in accordance with its terms.

 

13.14      Further Assurances.  In connection with this Agreement and the
transactions contemplated hereby, each Member shall execute and deliver, at the
Company’s cost and expense, any additional documents and instruments and
perform, at the Company’s cost and 

 

94

 

expense, any additional acts
that may be necessary or appropriate to effectuate and perform the provisions
of this Agreement and the transactions contemplated herein.

 

13.15      Execution in Counterparts.  This Agreement may be executed in
counterparts, each of which shall be an original, but each of which, when taken
together, shall constitute but one and the same instrument.  Facsimile signatures shall be accepted as
original signatures for purposes of this Agreement.

 

[The rest of this page intentionally
left blank.]

 

95

 

EXECUTED as of the date first written above.

 

	
   

  	
  NOBLE ENVIRONMENTAL POWER HOLD CO.

  PRIME, LLC, a Delaware limited liability company

  
	
   

  
	
   

  	
  By:

  	
      /s/
  Charles C. Hinckley

  
	
   

  	
  Name:
  Charles C. Hinckley

  
	
   

  	
  Title:
    Vice President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  EFS NOBLE HOLDINGS, LLC, a Delaware 

  limited liability company

  
	
   

  
	
   

  	
  By: Aircraft Services Corporation, a Delaware 

  corporation, its managing member

  
	
   

  
	
   

  	
  By:

  	
      /s/
  Jerry G. Polacek

  
	
   

  	
  Name:  Jerry
  G. Polacek

  
	
   

  	
  Title:
     Vice President

  
						

 

96

 

SCHEDULE 1

 

NOBLE
AFFILIATES

 

1.                                       Noble
Environmental Power, LLC

 

2.                                       Noble
Altona Windpark, LLC

 

3.                                       Noble
Chateaugay Windpark, LLC

 

4.                                       Noble
Bliss Windpark II, LLC

 

5.                                       Noble
Bellmont Windpark, LLC

 

6.                                       Noble
Wethersfield Windpark, LLC

 

7.                                       Noble
Environmental Power 2007 Hold Co., LLC

 

8.                                       Noble
Environmental Power Hold Co. Prime, LLC

 

9.                                       Noble
Environmental Power Hold Co, LLC

 

10.                                 Noble
Wind Operations, LLC

 

11.                                 Noble
Equipment Resources, LLC

 

12.                                 Noble
Management Services, LLC

 

13.                                 Noble
Constructors, LLC

 

14.                                 Noble
Services, Inc.

 

15.                                 Noble
Environmental Power 2006 Equipment Co., LLC

 

16.                                 Noble
Environmental Power 2007 Equipment Co., LLC

 

17.                                 Noble
Environmental Power 2008 Equipment Hold Co., LLC

 

18.                                 Noble
Transmission, LLC

 

19.                                 Noble
Thumb Windpark Transmission, LLC

 

20.                                 Noble
Farmersville Windpark, LLC

 

21.                                 Coos
County Transmission, LLC

 

22.                                 Allegany
Flight Center, LLC

 

23.                                 Blue
Hill Windpark, LLC

 

A-1

 

24.                                 Granite
Reliable Power, LLC

 

25.                                 Noble
Thumb Windpark III, LLC

 

26.                                 Noble
Thumb Windpark IV, LLC

 

27.                                 Noble
Thumb Windpark I, LLC

 

28.                                 Noble
Thumb Windpark, LLC

 

29.                                 Noble
Thumb Windpark II, LLC

 

30.                                 Grandpa’s
Knob Windpark, LLC

 

31.                                 Paris
Generation, LLC

 

32.                                 Noble
Malone Windpark, LLC

 

33.                                 Noble
Allegany Windpark, LLC

 

34.                                 Noble
Development, LLC

 

35.                                 Noble
Ball Hill Windpark, LLC

 

36.                                 Noble
Arkwright Windpark, LLC

 

37.                                 Noble
Thumb Huron Windpark, LLC

 

38.                                 Noble
Thumb Sanilac Windpark, LLC

 

39.                                 Polo
Ranch Windpark, LLC

 

40.                                 Noble
Environmental Power 2008 Hold Co., LLC

 

41.                                 Noble
Great Plains Acquisition, LLC

 

42.                                 Noble
Environmental Power 2009 Equipment Co., LLC

 

43.                                 NEP
Equipment Finance Hold Co., LLC

 

44.                                 NEP
Equipment Finance Co., LLC

 

45.                                 Noble
Superior Windpark, LLC

 

46.                                 Noble
Chateaugay Windpark II, LLC

 

47.                                 Noble
Burke Windpark, LLC

 

48.                                 Noble
Passadumkeag Windpark, LLC

 

A-2

 

49.                                 Noble
Mitchell County Windpark, LLC

 

50.                                 North
Texas Wind Center, LLC

 

51.                                 Noble
Credit Funding, LLC

 

52.                                 Noble
Flat Hill Windpark I, LLC

 

53.                                 Noble
Flat Hill Windpark II, LLC

 

54.                                 Noble
Granite Reliable Hold Co., LLC

 

55.                                 Noble
Great Plains Windpark, LLC

 

56.                                 Noble
Environmental Power 2008 Hold Co. Prime, LLC

 

57.                                 Noble
Red Bank Windpark, LLC

 

58.                                 Noble
Laredo Windpark, LLC

 

59.                                 Noble
Environmental Power 2008 Texas Hold Co., LLC

 

60.                                 Noble
Great Plains Windpark II, LLC

 

A-3

 

SCHEDULE 2

 

DISQUALIFIED
TRANSFEREES

 

1.             ***

 

2.             ***

 

3.             ***

 

4.             ***

 

5.             ***

 

6.             ***

 

A-4

 

SCHEDULE 3

 

AFFILIATE
AGREEMENTS

 

1.             Common
Facilities Agreements

 

2.             O&M
Agreements

 

3.             EPC
Contracts

 

4.             Management
Services Agreements

 

5.                                       Contractual
Parts Supply Agreement, dated as of June 22, 2007, between Noble Equipment
Resources, LLC and Noble Bliss

 

6.                                       Contractual
Parts Supply Agreement, dated as of June 22, 2007, between Noble Equipment
Resources, LLC and Noble Clinton

 

7.                                       Contractual
Parts Supply Agreement, dated as of June 22, 2007, between Noble Equipment
Resources, LLC and Noble Ellenburg

 

8.                                       Chateaugay/Bellmont
Array Loss Agreement

 

A-1Exhibit 10.6(a)

 

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

 

(Multicurrency – Cross
Border)

ISDA®

International
Swap Dealers Association, Inc.

 

MASTER
AGREEMENT

 

dated as of June 20, 2007

 

	
  CREDIT SUISSE ENERGY LLC

  	
  and

  	
  NOBLE ENVIRONMENTAL POWER 2006
  HOLD CO, LLC

  

 

have entered and/or anticipate entering into one of
more transactions (each a “Transaction”) that are or will be governed by this
Master Agreement, which includes the schedule (the “Schedule”), and the
documents and other confirming evidence (each a “Confirmation”) exchanged
between the parties confirming those Transactions.

 

Accordingly, the parties agree as follows: —

 

1.           Interpretation

 

(a)          Definitions.  The terms defined in Section 14 and
in the Schedule will have the meanings therein specified for the purpose of
this Master Agreement.

 

(b)          Inconsistency.  In the event of any inconsistency between the
provisions of the Schedule and the other provisions of this Master Agreement,
the Schedule will prevail. In the event of any inconsistency between the
provisions of any Confirmation and this Master Agreement (including the
Schedule), such Confirmation will prevail for the purpose of the relevant
Transaction.

 

(c)          Single Agreement.  All Transactions are entered into in reliance
on the fact that this Master Agreement and all Confirmations form a single
agreement between the parties (collectively referred to as this “Agreement”),
and the parties would not otherwise enter into any Transactions.

 

2.           Obligations

 

(a)          General Conditions.

 

(i)            Each
party will make each payment or delivery specified in each Confirmation to be
made by it, subject to the other provisions of this Agreement.

 

(ii)           Payments
under this Agreement will be made on the due date for value on that date in the
place of the account specified in the relevant Confirmation or otherwise
pursuant to this Agreement, in freely transferable funds and in the manner
customary for payments in the required currency. Where settlement is by
delivery (that is, other than by payment), such delivery will be made for
receipt on the due date in the manner customary for the relevant obligation
unless otherwise specified in the relevant Confirmation or elsewhere in this
Agreement.

 

(iii)          Each
obligation of each party under Section 2(a)(i) is subject to (1) the
condition precedent that no Event of Default or Potential Event of Default with
respect to the other party has occurred and is continuing, (2) the
condition precedent that no Early Termination Date in respect of the relevant
Transaction has occurred or been effectively designated and (3) each other
applicable condition precedent specified in this Agreement.

 

Copyright © 1992
by International Swap Dealers Association, Inc.

 

 

(b)          Change of Account.  Either party may change its account for
receiving a payment or delivery by giving notice to the other party at least
five Local Business Days prior to the scheduled date for the payment or
delivery to which such change applies unless such other party gives timely
notice of a reasonable objection to such change.

 

(c)          Netting.  If on any date amounts would otherwise be
payable: —

 

(i)            in
the same currency; and

 

(ii)           in
respect of the same Transaction,

 

by each party to the other. then, on such date, each
party’s obligation to make payment of any such amount will be automatically
satisfied and discharged and, if the aggregate amount that would otherwise have
been payable by one party exceeds the aggregate amount that would otherwise
have been payable by the other party, replaced by an obligation upon the party
by whom the larger aggregate amount would have been payable to pay to the other
party the excess of the larger aggregate amount over the smaller aggregate
amount.

 

The parties may elect in respect of two or more
Transactions that a net amount will be determined in respect of all amounts
payable on the same date in the same currency in respect of such Transactions,
regardless of whether such amounts are payable in respect of the same
Transaction. The election may be made in the Schedule or a Confirmation by
specifying that subparagraph (ii) above will not apply to the Transactions
identified as being subject to the election, together with the starting date
(in which case subparagraph (ii) above will not, or will cease to, apply
to such Transactions from such date). This election may be made separately for
different groups of Transactions and will apply separately to each pairing of
Offices through which the parties make and receive payments or deliveries.

 

(d)          Deduction or Withholding
for Tax.

 

(i)            Gross-Up.  All
payments under this Agreement will be made without any deduction or withholding
for or on account of any Tax unless such deduction or withholding is required
by any applicable law, as modified by the practice of any relevant governmental
revenue authority, then in effect.  If a
party is so required to deduct or withhold, then that party (“X”) will: —

 

(1)           promptly notify the
other party (“Y”) of such requirement;

 

(2)           pay to the relevant
authorities the full amount required to be deducted or withheld (including the
full amount required to be deducted or withheld from any additional amount paid
by X to Y under this Section 2(d)) promptly upon the earlier of
determining that such deduction or withholding is required or receiving notice
that such amount has been assessed against Y;

 

(3)           promptly forward to
Y an official receipt (or a certified copy), or other documentation reasonably
acceptable to Y, evidencing such payment to such authorities; and

 

(4)           if such Tax is an
Indemnifiable Tax, pay to Y, in addition to the payment to which Y is otherwise
entitled under this Agreement, such additional amount as is necessary to ensure
that the net amount actually received by Y (free and clear of Indemnifiable
Taxes. whether assessed against X or Y) will equal the full amount Y would have
received had no such deduction or withholding been required. However, X will
not be required to pay any additional amount to Y to the extent that it would
not be required to be paid but for: —

 

(A)          the failure by Y to
comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or
4(d); or

 

(B)           the failure of a
representation made by Y pursuant to Section 3(f) to be accurate and
true unless such failure would not have occurred but for (I) any action
taken by a taxing authority, or brought in a court of competent jurisdiction,
on or after the date on which a Transaction is entered into (regardless of
whether such action is taken or brought with respect to a party to this
Agreement) or (II) a Change in Tax Law.

 

2

 

(ii)           Liability.  If: —

 

(1)           X is required by any
applicable law, as modified by the practice of any relevant governmental
revenue authority, to make any deduction or withholding in respect of which X
would not be required to pay an additional amount to Y under Section 2(d)(i)(4);

 

(2)           X does not so deduct
or withhold; and

 

(3)           a liability
resulting from such Tax is assessed directly against X,

 

then, except to the extent Y has satisfied or then satisfies the
liability resulting from such Tax, Y will promptly pay to X the amount of such
liability (including any related liability for interest, but including any
related liability for penalties only if Y has failed to comply with or perform
any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d)).

 

(e)          Default Interest; Other
Amounts.  Prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant
Transaction, a party that defaults in the performance of any payment obligation
will, to the extent permitted by law and subject to Section 6(c), be
required to pay interest (before as well as after judgment) on the overdue
amount to the other party on demand in the same currency as such overdue
amount, for the period from (and including) the original due date for payment
to (but excluding) the date of actual payment, at the Default Rate.  Such interest will be calculated on the basis
of daily compounding and the actual number of days elapsed.  If, prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant
Transaction, a party defaults in the performance of any obligation required to
be settled by delivery, it will compensate the other party on demand if and to
the extent provided for in the relevant Confirmation or elsewhere in this Agreement.

 

3.           Representations

 

Each party represents to the other party (which
representations will be deemed to be repeated by each party on each date on
which a Transaction is entered into and, in the case of the representations in Section 3(f),
at all times until the termination of this Agreement) that: —

 

(a)          Basic Representations.

 

(i)            Status.  It is duly
organised and validly existing under the laws of the jurisdiction of its
organisation or incorporation and, if relevant under such laws, in good standing;

 

(ii)           Powers.  It has the
power to execute this Agreement and any other documentation relating to this
Agreement to which it is a party, to deliver this Agreement and any other
documentation relating to this Agreement that it is required by this Agreement
to deliver and to perform its obligations under this Agreement and any
obligations it has under any Credit Support Document to which it is a party and
has taken all necessary action to authorise such execution, delivery and
performance;

 

(iii)          No Violation or Conflict. 
Such execution, delivery and performance do not violate or conflict with
any law applicable to it, any provision of its constitutional documents, any
order or judgment of any court or other agency of government applicable to it
or any of its assets or any contractual restriction binding on or affecting it
or any of its assets;

 

(iv)          Consents.  All
governmental and other consents that are required to have been obtained by it
with respect to this Agreement or any Credit Support Document to which it is a
party have been obtained and are in full force and effect and all conditions of
any such consents have been complied with; and

 

(v)           Obligations Binding. 
Its obligations under this Agreement and any Credit Support Document to
which it is a party constitute its legal, valid and binding obligations,
enforceable in accordance with their respective terms (subject to applicable
bankruptcy, reorganisation, insolvency, moratorium or similar laws affecting
creditors’ rights generally and subject, as to enforceability, to equitable
principles of general application (regardless of whether enforcement is sought
in a proceeding in equity or at law)).

 

3

 

(b)          Absence of Certain Events.  No Event of Default or Potential Event of
Default or, to its knowledge, Termination Event with respect to it has occurred
and is continuing and no such event or circumstance would occur as a result of
its entering into or performing its obligations under this Agreement or any Credit
Support Document to which it is a party.

 

(c)          Absence of Litigation.  There is not pending or, to its knowledge,
threatened against it or any of its Affiliates any action, suit or proceeding
at law or in equity or before any court, tribunal, governmental body, agency or
official or any arbitrator that is likely to affect the legality, validity or
enforceability against it of this Agreement or any Credit Support Document to
which it is a party or its ability to perform its obligations under this Agreement
or such Credit Support Document.

 

(d)          Accuracy of Specified
Information.  All
applicable information that is furnished in writing by or on behalf of it to
the other party and is identified for the purpose of this Section 3(d) in
the Schedule is, as of the date of the information, true, accurate and complete
in every material respect.

 

(e)          Payer Tax Representation.  Each representation specified in the Schedule
as being made by it for the purpose of this Section 3(e) is accurate
and true.

 

(f)           Payee Tax Representations.  Each representation specified in the Schedule
as being made by it for the purpose of this Section 3(f) is accurate
and true.

 

4.           Agreements

 

Each party agrees with the other that, so long as
either party has or may have any obligation under this Agreement or under any
Credit Support Document to which it is a party: —

 

(a)          Furnish Specified
Information.  It will
deliver to the other party or, in certain cases under subparagraph (iii) below,
to such government or taxing authority as the other party reasonably directs: —

 

(i)            any
forms, documents or certificates relating to taxation specified in the Schedule
or any Confirmation;

 

(ii)           any
other documents specified in the Schedule of any Confirmation; and

 

(iii)          upon
reasonable demand by such other party, any form or document that may be
required or reasonably requested in writing in order to allow such other party
or its Credit Support Provider to make a payment under this Agreement or any
applicable Credit Support Document without any deduction or withholding for or
on account of any Tax or with such deduction or withholding at a reduced rate
(so long as the completion, execution or submission of such form or document
would not materially prejudice the legal or commercial position of the party in
receipt of such demand), with any such form or document to be accurate and
completed in a manner reasonably satisfactory to such other party and to be
executed and to be delivered with any reasonably required certification,

 

in each case by the date specified in the Schedule or
such Confirmation or, if none is specified, as soon as reasonably practicable.

 

(b)          Maintain Authorisations.  It will use all reasonable efforts to
maintain in full force and effect all consents of any governmental or other
authority that are required to be obtained by it with respect to this Agreement
or any Credit Support Document to which it is a party and will use all
reasonable efforts to obtain any that may become necessary in the future.

 

(c)          Comply with Laws.  It will comply in all material respects with
all applicable laws and orders to which it may be subject if failure so to
comply would materially impair its ability to perform its obligations under
this Agreement or any Credit Support Document to which it is a party.

 

(d)          Tax Agreement.  It will give notice of any failure of a
representation made by it under Section 3(f) to be accurate and true
promptly upon learning of such failure.

 

(e)          Payment of Stamp Tax.  Subject to Section 11, it will pay any
Stamp Tax levied or imposed upon it or in respect of its execution or
performance of this Agreement by a jurisdiction in which it is incorporated,

 

4

 

organised, managed and controlled or considered to
have its seat, or in which a branch or office through which it is acting for
the purpose of this Agreement is located (“Stamp Tax Jurisdiction”) and will
indemnify the other party against any Stamp Tax levied or imposed upon the
other party or in respect of the other party’s execution or performance of this
Agreement by any such Stamp Tax Jurisdiction which is not also a Stamp Tax
Jurisdiction with respect to the other party.

 

5.           Events of Default and Termination
Events

 

(a)          Events of Default.  The occurrence at any time with respect to a
party or, if applicable, any Credit Support Provider of such party or any
Specified Entity of such party of any of the following events constitutes an
event of default (an “Event of Default”) with respect to such party: —

 

(i)            Failure to Pay or Deliver. 
Failure by the party to make, when due, any payment under this Agreement
or delivery under Section 2(a)(i) or 2(e) required to be made by
it if such failure is not remedied on or before the third Local Business Day
after notice of such failure is given to the party;

 

(ii)           Breach of Agreement. 
Failure by the party to comply with or perform any agreement or
obligation (other than an obligation to make any payment under this Agreement
or delivery under Section 2(a)(i) or 2(e) or to give notice of a
Termination Event or any agreement or obligation under Section 4(a)(i),
4(a)(iii) or 4(d)) to be complied with or performed by the party in
accordance with this Agreement if such failure is not remedied on or before the
thirtieth day after notice of such failure is given to the party;

 

(iii)          Credit Support Default.

 

(1)           Failure by the party
or any Credit Support Provider of such party to comply with or perform any
agreement or obligation to be complied with or performed by it in accordance
with any Credit Support Document if such failure is continuing after any
applicable grace period has elapsed;

 

(2)           the expiration or
termination of such Credit Support Document or the failing or ceasing of such
Credit Support Document to be in full force and effect for the purpose of this
Agreement (in either case other than in accordance with its terms) prior to the
satisfaction of all obligations of such party under each Transaction to which
such Credit Support Document relates without the written consent of the other
party; or

 

(3)           the party or such
Credit Support Provider disaffirms, disclaims, repudiates or rejects, in whole
or in part, or challenges the validity of, such Credit Support Document;

 

(iv)          Misrepresentation.  A
representation (other than a representation under Section 3(e) or
(f)) made or repeated or deemed to have been made or repeated by the party or
any Credit Support Provider of such party in this Agreement or any Credit
Support Document proves to have been incorrect or misleading in any material
respect when made or repeated or deemed to have been made or repeated;

 

(v)           Default under Specified Transaction.  The party, any Credit Support Provider of
such party or any applicable Specified Entity of such party (1) defaults
under a Specified Transaction and, after giving effect to any applicable notice
requirement or grace period, there occurs a liquidation of, an acceleration of
obligations under, or an early termination of, that Specified Transaction, (2) defaults,
after giving effect to any applicable notice requirement or grace period, in
making any payment or delivery due on the last payment, delivery or exchange
date of, or any payment on early termination of, a Specified Transaction (or
such default continues for at least three Local Business Days if there is no
applicable notice requirement or grace period) or (3) disaffirms,
disclaims, repudiates or rejects, in whole or in part, a Specified Transaction
(or such action is taken by any person or entity appointed or empowered to
operate it or act on its behalf);

 

(vi)          Cross
Default.  If “Cross Default”
is specified in the Schedule as applying to the party, the occurrence or
existence of (1) a default, event of default or other similar condition or
event (however

 

5

 

described) in respect of such party, any Credit Support Provider of
such party or any applicable Specified Entity of such party under one or more
agreements or instruments relating to Specified Indebtedness of any of them
(individually or collectively) in an aggregate amount of not less than the
applicable Threshold Amount (as specified in the Schedule) which has resulted
in such Specified Indebtedness becoming, or becoming capable at such time of
being declared, due and payable under such agreements or instruments, before it
would otherwise have been due and payable or (2) a default by such party,
such Credit Support Provider or such Specified Entity (individually or
collectively) in making one or more payments on the due date thereof in an
aggregate amount of not less than the applicable Threshold Amount under such
agreements or instruments (after giving effect to any applicable notice
requirement or grace period);

 

(vii)         Bankruptcy.  The
party, any Credit Support Provider of such party or any applicable Specified
Entity of such party:–

 

(1) is dissolved (other than pursuant to a consolidation,
amalgamation or merger); (2) becomes insolvent or is unable to pay its
debts or fails or admits in writing its inability generally to pay its debts as
they become due; (3) makes a general assignment, arrangement or
composition with or for the benefit of its creditors; (4) institutes or
has instituted against it a proceeding seeking a judgment of insolvency or
bankruptcy or any other relief under any bankruptcy or insolvency law or other
similar law affecting creditors’ rights, or a petition is presented for its
winding-up or liquidation, and, in the case of any such proceeding or petition
instituted or presented against it, such proceeding or petition (A) results
in a judgment of insolvency or bankruptcy or the entry of an order for relief
or the making of an order for its winding-up or liquidation or (B) is not
dismissed, discharged, stayed or restrained in each case within 30 days of the
institution or presentation thereof, (5) has a resolution passed for its
winding-up, official management or liquidation (other than pursuant to a
consolidation, amalgamation or merger); (6) seeks or becomes subject to
the appointment of an administrator, provisional liquidator, conservator,
receiver, trustee, custodian or other similar official for it or for all or
substantially all its assets; (7) has a secured party take possession of
all or substantially all its assets or has a distress, execution, attachment,
sequestration or other legal process levied, enforced or sued on or against all
or substantially all its assets and such secured party maintains possession, or
any such process is not dismissed, discharged, stayed or restrained, in each
case within 30 days thereafter; (8) causes or is subject to any event with
respect to it which. under the applicable laws of any jurisdiction, has an
analogous effect to any of the events specified in clauses (1) to (7) (inclusive);
or (9) takes any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any of the foregoing acts; or

 

(viii)        Merger Without Assumption. 
The party or any Credit Support Provider of such party consolidates or
amalgamates with, or merges with or into, or transfers all or substantially all
its assets to, another entity and, at the time of such consolidation,
amalgamation, merger or transfer: –

 

(1)           the resulting,
surviving or transferee entity fails to assume all the obligations of such
party or such Credit Support Provider under this Agreement or any Credit
Support Document to which it or its predecessor was a party by operation of law
or pursuant to an agreement reasonably satisfactory to the other party to this
Agreement; or

 

(2)           the benefits of any
Credit Support Document fail to extend (without the consent of the other party)
to the performance by such resulting, surviving or transferee entity of its
obligations under this Agreement.

 

(b)          Termination Events.  The occurrence at any time with respect to a
party or, if applicable, any Credit Support Provider of such party or any
Specified Entity of such party of any event specified below constitutes an
Illegality if the event is specified in (i) below, a Tax Event if the
event is specified in (ii) below or a Tax Event Upon Merger if the event
is specified in (iii) below, and, if specified to be applicable, a Credit
Event

 

6

 

Upon Merger if the event is specified pursuant to (iv) below
or an Additional Termination Event if the event is specified pursuant to (v) below:—

 

(i)            Illegality.  Due to
the adoption of, or any change in, any applicable law after the date on which a
Transaction is entered into, or due to the promulgation of, or any change in,
the interpretation by any court, tribunal or regulatory authority with
competent jurisdiction of any applicable law after such date. it becomes
unlawful (other than as a result of a breach by the party of Section 4(b))
for such party (which will be the Affected Party):—

 

(1)           to perform any
absolute or contingent obligation to make a payment or delivery or to receive a
payment or delivery in respect of such Transaction or to comply with any other
material provision of this Agreement relating to such Transaction; or

 

(2)           to perform, or for
any Credit Support Provider of such party to perform, any contingent or other
obligation which the party (or such Credit Support Provider) has under any
Credit Support Document relating to such Transaction;

 

(ii)           Tax Event.  Due to (x) any
action taken by a taxing authority, or brought in a court of competent
jurisdiction, on or after the date on which a Transaction is entered into
(regardless of whether such action is taken or brought with respect to a party
to this Agreement) or (y) a Change in Tax Law, the party (which will be
the Affected Party) will, or there is a substantial likelihood that it will, on
the next succeeding Scheduled Payment Date (1) be required to pay to the
other party an additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except
in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive
a payment from which an amount is required to be deducted or withheld for or on
account of a Tax (except in respect of interest under Section 2(e), 6(d)(ii) or
6(e)) and no additional amount is required to be paid in respect of such Tax
under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or
(B));

 

(iii)          Tax Event Upon Merger. 
The party (the “Burdened Party”) on the next succeeding Scheduled
Payment Date will either (1) be required to pay an additional amount in
respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except in
respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive
a payment from which an amount has been deducted or withheld for or on account
of any Indemnifiable Tax in respect of which the other party is not required to
pay an additional amount (other than by reason of Section 2(d)(i)(4)(A) or
(B)), in either case as a result of a party consolidating or amalgamating with,
or merging with or into, or transferring all or substantially all its assets
to, another entity (which will be the Affected Party) where such action does
not constitute an event described in Section 5(a)(viii);

 

(iv)          Credit Event Upon Merger. 
If “Credit Event Upon Merger” is specified in the Schedule as applying
to the party, such party (“X”), any Credit Support Provider of X or any
applicable Specified Entity of X consolidates or amalgamates with, or merges
with or into, or transfers all or substantially all its assets to, another
entity and such action does not constitute an event described in Section 5(a)(viii) but
the creditworthiness of the resulting, surviving or transferee entity is
materially weaker than that of X, such Credit Support Provider or such
Specified Entity, as the case may be, immediately prior to such action (and, in
such event, X or its successor or transferee, as appropriate, will be the
Affected Party); or

 

(v)           Additional Termination Event.  If any “Additional Termination Event” is specified
in the Schedule or any Confirmation as applying. the occurrence of such event
(and, in such event. the Affected Party or Affected Parties shall be as
specified for such Additional Termination Event in the Schedule or such
Confirmation).

 

(c)          Event of Default and
Illegality.  If an event
or circumstance which would otherwise constitute or give rise to an Event of
Default also constitutes an Illegality, it will be treated as an Illegality and
will not constitute an Event of Default.

 

7

 

6.           Early Termination

 

(a)          Right to Terminate
Following Event of Default. 
If at any time an Event of Default with respect to a party (the “Defaulting
Party”) has occurred and is then continuing, the other party (the “Non-defaulting
Party”) may, by not more than 20 days notice to the Defaulting Party specifying
the relevant Event of Default, designate a day not earlier than the day such
notice is effective as an Early Termination Date in respect of all outstanding
Transactions. If, however, “Automatic Early Termination” is specified in the
Schedule as applying to a party, then an Early Termination Date in respect of
all outstanding Transactions will occur immediately upon the occurrence with
respect to such party of an Event of Default specified in Section 5(a)(vii)(l),
(3), (5), (6) or, to the extent analogous thereto, (8), and as of the time
immediately preceding the institution of the relevant proceeding or the
presentation of the relevant petition upon the occurrence with respect to such
party of an Event of Default specified in Section 5(a)(vii)(4) or, to
the extent analogous thereto, (8).

 

(b)          Right to Terminate
Following Termination Event.

 

(i)            Notice.  If a
Termination Event occurs, an Affected Party will, promptly upon becoming aware
of it, notify the other party, specifying the nature of that Termination Event
and each Affected Transaction and will also give such other information about
that Termination Event as the other party may reasonably require.

 

(ii)           Transfer to Avoid Termination Event.  If either an Illegality under Section 5(b)(i)(1) or
a Tax Event occurs and there is only one Affected Party, or if a Tax Event Upon
Merger occurs and the Burdened Party is the Affected Party, the Affected Party
will, as a condition to its right to designate an Early Termination Date under Section 6(b)(iv),
use all reasonable efforts (which will not require such party to incur a loss,
excluding immaterial, incidental expenses) to transfer within 20 days after it
gives notice under Section 6(b)(i) all its rights and obligations
under this Agreement in respect of the Affected Transactions to another of its
Offices or Affiliates so that such Termination Event ceases to exist.

 

If the Affected Party is not able to make such a transfer it will give
notice to the other party to that effect within such 20 day period, whereupon
the other party may effect such a transfer within 30 days after the notice is
given under Section 6(b)(i).

 

Any such transfer by a party under this Section 6(b)(ii) will
be subject to and conditional upon the prior written consent of the other
party, which consent will not be withheld if such other party’s policies in
effect at such time would permit it to enter into transactions with the
transferee on the terms proposed.

 

(iii)          Two Affected Parties. 
If an Illegality under Section 5(b)(i)(1) or a Tax Event
occurs and there are two Affected Parties, each party will use all reasonable
efforts to reach agreement within 30 days after notice thereof is given under Section 6(b)(i) on
action to avoid that Termination Event.

 

(iv)          Right to Terminate. 
If:—

 

(1)           a transfer under Section 6(b)(ii) or
an agreement under Section 6(b)(iii), as the case may be, has not been
effected with respect to all Affected Transactions within 30 days after an
Affected Party gives notice under Section 6(b)(i); or

 

(2)           an Illegality under Section 5(b)(i)(2),
a Credit Event Upon Merger or an Additional Termination Event occurs, or a Tax
Event Upon Merger occurs and the Burdened Party is not the Affected Party,

 

either party in the case of an Illegality, the Burdened Party in the
case of a Tax Event Upon Merger, any Affected Party in the case of a Tax Event
or an Additional Termination Event if there is more than one Affected Party, or the party which is not the
Affected Party in the case of a Credit Event Upon Merger or  an Additional Termination Event if there is only
one Affected Party may, by not more than 20 days notice to the other
party and provided that the relevant Termination Event is then

 

8

 

continuing, designate a day not earlier than the day such notice is
effective as an Early Termination Date in respect of all Affected Transactions.

 

(c)          Effect of Designation.

 

(i)            If
notice designating an Early Termination Date is given under Section 6(a) or
(b), the Early Termination Date will occur on the date so designated, whether
or not the relevant Event of Default or Termination Event is then continuing.

 

(ii)           Upon
the occurrence or effective designation of an Early Termination Date, no
further payments or deliveries under Section 2(a)(i) or 2(e) in
respect of the Terminated Transactions will be required to be made, but without
prejudice to the other provisions of this Agreement. The amount, if any, payable
in respect of an Early Termination Date shall be determined pursuant to Section 6(e).

 

(d)          Calculations.

 

(i)            Statement.  On or as
soon as reasonably practicable following the occurrence of an Early Termination
Date, each party will make the calculations on its part, if any, contemplated
by Section 6(e) and will provide to the other party a statement (1) showing,
in reasonable detail, such calculations (including all relevant quotations and
specifying any amount payable under Section 6(e)) and (2) giving
details of the relevant account to which any amount payable to it is to be
paid. In the absence of written confirmation from the source of a quotation
obtained in determining a Market Quotation, the records of the party obtaining
such quotation will be conclusive evidence of the existence and accuracy of
such quotation.

 

(ii)           Payment Date.  An
amount calculated as being due in respect of any Early Termination Date under Section 6(e) will
be payable on the day that notice of the amount payable is effective (in the
case of an Early Termination Date which is designated or occurs as a result of
an Event of Default) and on the day which is two Local Business Days after the
day on which notice of the amount payable is effective (in the case of an Early
Termination Date which is designated as a result of a Termination Event). Such
amount will be paid together with (to the extent permitted under applicable
law) interest thereon (before as well as after judgment) in the Termination
Currency, from (and including) the relevant Early Termination Date to (but
excluding) the date such amount is paid, at the Applicable Rate. Such interest
will be calculated on the basis of daily compounding and the actual number of
days elapsed.

 

(e)          Payments on Early
Termination.  If an Early
Termination Date occurs, the following provisions shall apply based on the
parties’ election in the Schedule of a payment measure, either “Market
Quotation” or “Loss”, and a payment method, either the “First Method” or the “Second
Method”.  If the parties fail to
designate a payment measure or payment method in the Schedule, it will be
deemed that “Market Quotation” or the “Second Method”, as the case may be,
shall apply.  The amount, if any, payable
in respect of an Early Termination Date and determined pursuant to this Section will
be subject to any Set-off.

 

(i)            Events of Default.  If
the Early Termination Date results from an Event of Default:—

 

(1)           First Method
and Market Quotation.  If the
First Method and Market Quotation apply, the Defaulting Party will pay to the
Non-defaulting Party the excess, if a positive number, of (A) the sum of
the Settlement Amount (determined by the Non-defaulting Party) in respect of
the Terminated Transactions and the Termination Currency Equivalent of the
Unpaid Amounts owing to the Non-defaulting Party over (B) the Termination
Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party.

 

(2)           First Method
and Loss.  If the First Method
and Loss apply, the Defaulting Party will pay to the Non-defaulting Party, if a
positive number, the Non-defaulting Party’s Loss in respect of this Agreement.

 

(3)           Second
Method and Market Quotation. 
If the Second Method and Market Quotation apply, an amount will be payable equal to (A) the sum of the
Settlement Amount (determined by the

 

9

 

Non-defaulting Party) in respect of the Terminated Transactions and the
Termination Currency Equivalent of the Unpaid Amounts owing to the
Non-defaulting Party less (B) the Termination Currency Equivalent of the
Unpaid Amounts owing to the Defaulting Party. If that amount is a positive
number, the Defaulting Party will pay it to the Non-defaulting Party; if it is
a negative number, the Non-defaulting Party will pay the absolute value of that
amount to the Defaulting Party.

 

(4)           Second
Method and Loss.  If the
Second Method and Loss apply, an amount will be payable equal to the
Non-defaulting Party’s Loss in respect of this Agreement. If that amount is a
positive number, the Defaulting Party will pay it to the Non-defaulting Party;
if it is a negative number, the Non-defaulting Party will pay the absolute
value of that amount to the Defaulting Party.

 

(ii)           Termination Events. 
If the Early Termination Date results from a Termination Event:—

 

(1)           One Affected
Party.  If there is one
Affected Party, the amount payable will be determined in accordance with Section 6(e)(i)(3),
if Market Quotation applies, or Section 6(e)(i)(4), if Loss applies,
except that, in either case, references to the Defaulting Party and to the
Non-defaulting Party will be deemed to be references to the Affected Party and
the party which is not the Affected Party, respectively, and, if Loss applies
and fewer than all the Transactions are being terminated, Loss shall be calculated
in respect of all Terminated Transactions.

 

(2)           Two Affected
Parties.  If there are two
Affected Parties:—

 

(A)          if Market Quotation
applies, each party will determine a Settlement Amount in respect of the
Terminated Transactions, and an amount will be payable equal to (I) the
sum of (a) one-half of the difference between the Settlement Amount of the
party with the higher Settlement Amount (“X”) and the Settlement Amount of the
party with the lower Settlement Amount (“Y”) and (b) the Termination
Currency Equivalent of the Unpaid Amounts owing to X less (II) the
Termination Currency Equivalent of the Unpaid Amounts owing to Y; and

 

(B)           if Loss applies,
each party will determine its Loss in respect of this Agreement (or, if fewer
than all the Transactions are being terminated, in respect of all Terminated
Transactions) and an amount will be payable equal to one-half of the difference
between the Loss of the party with the higher Loss (“X”) and the Loss of the
party with the lower Loss (“Y”).

 

If the amount payable is a positive number, Y will pay it to X; if it
is a negative number, X will pay the absolute value of that amount to Y.

 

(iii)          Adjustment for Bankruptcy. 
In circumstances where an Early Termination Date occurs because “Automatic
Early Termination” applies in respect of a party, the amount determined under
this Section 6(e) will be subject to such adjustments as are
appropriate and permitted by law to reflect any payments or deliveries made by
one party to the other under this Agreement (and retained by such other party)
during the period from the relevant Early Termination Date to the date for
payment determined under Section 6(d)(ii).

 

(iv)          Pre-Estimate.  The
parties agree that if Market Quotation applies an amount recoverable under this
Section 6(e) is a reasonable pre-estimate of loss and not a penalty.
Such amount is payable for the loss of bargain and the loss of protection
against future risks and except as otherwise provided in this Agreement neither
party will be entitled to recover any additional damages as a consequence of
such losses.

 

10

 

7.            Transfer

 

Subject to Section 6(b)(ii), neither this
Agreement nor any interest or obligation in or under this Agreement may be
transferred (whether by way of security or otherwise) by either party without
the prior written consent of the other party, except that:—

 

(a)           a
party may make such a transfer of this Agreement pursuant to a consolidation or
amalgamation with, or merger with or into, or transfer of all or substantially
all its assets to, another entity (but without prejudice to any other right or
remedy under this Agreement); and

 

(b)           a
party may make such a transfer of all or any part of its interest in any amount
payable to it from a Defaulting Party under Section 6(e).

 

Any purported transfer that is not in compliance with
this Section will be void.

 

8.            Contractual Currency

 

(a)           Payment in the Contractual Currency.  Each payment under this Agreement will be
made in the relevant currency specified in this Agreement for that payment (the
“Contractual Currency”). To the extent permitted by applicable law, any
obligation to make payments under this Agreement in the Contractual Currency
will not be discharged or satisfied by any tender in any currency other than
the Contractual Currency, except to the extent such tender results in the
actual receipt by the party to which payment is owed, acting in a reasonable
manner and in good faith in converting the currency so tendered into the
Contractual Currency, of the full amount in the Contractual Currency of all
amounts payable in respect of this Agreement. If for any reason the amount in
the Contractual Currency so received falls short of the amount in the
Contractual Currency payable in respect of this Agreement, the party required
to make the payment will, to the extent permitted by applicable law, immediately
pay such additional amount in the Contractual Currency as may be necessary to
compensate for the shortfall. If for any reason the amount in the Contractual
Currency so received exceeds the amount in the Contractual Currency payable in
respect of this Agreement, the party receiving the payment will refund promptly
the amount of such excess.

 

(b)           Judgments.  To the extent permitted by applicable law, if
any judgment or order expressed in a currency other than the Contractual
Currency is rendered (i) for the payment of any amount owing in respect of
this Agreement, (ii) for the payment of any amount relating to any early
termination in respect of this Agreement or (iii) in respect of a judgment
or order of another court for the payment of any amount described in (i) or
(ii) above, the party seeking recovery, after recovery in full of the
aggregate amount to which such party is entitled pursuant to the judgment or
order, will be entitled to receive immediately from the other party the amount
of any shortfall of the Contractual Currency received by such party as a
consequence of sums paid in such other currency and will refund promptly to the
other party any excess of the Contractual Currency received by such party as a
consequence of sums paid in such other currency if such shortfall or such
excess arises or results from any variation between the rate of exchange at
which the Contractual Currency is converted into the currency of the judgment
or order for the purposes of such judgment or order and the rate of exchange at
which such party is able, acting in a reasonable manner and in good faith in
converting the currency received into the Contractual Currency, to purchase the
Contractual Currency with the amount of the currency of the judgment or order
actually received by such party. The term “rate of exchange” includes, without
limitation, any premiums and costs of exchange payable in connection with the
purchase of or conversion into the Contractual Currency.

 

(c)           Separate Indemnities.  To the extent permitted by applicable law,
these indemnities constitute separate and independent obligations from the
other obligations in this Agreement, will be enforceable as separate and
independent causes of action, will apply notwithstanding any indulgence granted
by the party to which any payment is owed and will not be affected by judgment
being obtained or claim or proof being made for any other sums payable in
respect of this Agreement.

 

(d)           Evidence of Loss.  For the purpose of this Section 8, it
will be sufficient for a party to demonstrate that it would have suffered a
loss had an actual exchange or purchase been made.

 

11

 

9.           Miscellaneous

 

(a)          Entire Agreement.  This Agreement constitutes the entire
agreement and understanding of the parties with respect to its subject matter
and supersedes all oral communication and prior writings with respect thereto.

 

(b)          Amendments.  No amendment, modification or waiver in
respect of this Agreement will be effective unless in writing (including a
writing evidenced by a facsimile transmission) and executed by each of the
parties or confirmed by an exchange of telexes or electronic messages on an
electronic messaging system.

 

(c)          Survival of Obligations.  Without prejudice to Sections 2(a)(iii) and
6(c)(ii), the obligations of the parties under this Agreement will survive the
termination of any Transaction.

 

(d)          Remedies Cumulative.  Except as provided in this Agreement, the
rights, powers, remedies and privileges provided in this Agreement are
cumulative and not exclusive of any rights, powers, remedies and privileges
provided by law.

 

(e)          Counterparts and
Confirmations.

 

(i)            This
Agreement (and each amendment, modification and waiver in respect of it) may be
executed and delivered in counterparts (including by facsimile transmission),
each of which will be deemed an original.

 

(ii)           The
parties intend that they are legally bound by the terms of each Transaction
from the moment they agree to those terms (whether orally or otherwise). A
Confirmation shall be entered into as soon as practicable and may be executed
and delivered in counterparts (including by facsimile transmission) or be
created by an exchange of telexes or by an exchange of electronic messages on
an electronic messaging system, which in each case will be sufficient for all
purposes to evidence a binding supplement to this Agreement.  The parties will specify therein or through
another effective means that any such counterpart, telex or electronic message
constitutes a Confirmation.

 

(f)           No Waiver of Rights.  A failure or delay in exercising any right,
power or privilege in respect of this Agreement will not be presumed to operate
as a waiver, and a single or partial exercise of any right, power or privilege
will not be presumed to preclude any subsequent or further exercise, of that
right, power or privilege or the exercise of any other right, power or
privilege.

 

(g)          Headings.  The headings used in this Agreement are for
convenience of reference only and are not to affect the construction of or to
be taken into consideration in interpreting this Agreement.

 

10.         Offices; Multibranch Parties

 

(a)          If Section 10(a) is
specified in the Schedule as applying, each party that enters into a
Transaction through an Office other than its head or home office represents to
the other party that, notwithstanding the place of booking office or
jurisdiction of incorporation or organisation of such party, the obligations of
such party are the same as if it had entered into the Transaction through its
head or home office.  This representation
will be deemed to be repeated by such party on each date on which a Transaction
is entered into.

 

(b)          Neither party may change the Office
through which it makes and receives payments or deliveries for the purpose of a
Transaction without the prior written consent of the other party.

 

(c)          If a party is specified as a
Multibranch Party in the Schedule, such Multibranch Party may make and receive
payments or deliveries under any Transaction through any Office listed in the
Schedule, and the Office through which it makes and receives payments or
deliveries with respect to a Transaction will be specified in the relevant
Confirmation.

 

11.         Expenses

 

A Defaulting Party will, on demand, indemnify and hold
harmless the other party for and against all reasonable out-of-pocket expenses,
including legal fees and Stamp Tax, incurred by such other party by reason of
the enforcement and protection of its rights under this Agreement or any Credit
Support Document

 

12

 

to which the Defaulting Party is a party or by reason
of the early termination of any Transaction, including, but not limited to,
costs of collection.

 

12.         Notices

 

(a)          Effectiveness. Any
notice or other communication in respect of this Agreement may be given in any
manner set forth below (except that a notice or other communication under Section 5
or 6 may not be given by facsimile transmission or electronic messaging system)
to the address or number or in accordance with the electronic messaging system
details provided (see the Schedule) and will be deemed effective as indicated:—

 

(i)            if
in writing and delivered in person or by courier, on the date it is delivered;

 

(ii)           if
sent by telex, on the date the recipient’s answerback is received;

 

(iii)          if
sent by facsimile transmission, on the date that transmission is received by a
responsible employee of the recipient in legible form (it being agreed that the
burden of proving receipt will be on the sender and will not be met by a
transmission report generated by the sender’s facsimile machine);

 

(iv)          if
sent by certified or registered mail (airmail, if overseas) or the equivalent
(return receipt requested), on the date that mail is delivered or its delivery
is attempted; or

 

(v)           if
sent by electronic messaging system, on the date that electronic message is
received,

 

unless the date of that delivery (or attempted
delivery) or that receipt as applicable, is not a Local Business Day or that
communication is delivered (or attempted) or received, as applicable, after the
close of business on a Local Business Day, in which case that communication
shall be deemed given and effective on the first following day that is a Local
Business Day.

 

(b)          Change of Addresses.
Either party may by notice to the other change the address, telex or facsimile
number or electronic messaging system details at which notices or other
communications are to be given to all

 

13.         Governing Law and Jurisdiction

 

(a)          Governing Law.
This Agreement will be governed by and construed in accordance with the law
specified in the Schedule.

 

(b)          Jurisdiction.
With respect to any suit, action or proceedings relating to this Agreement (“Proceedings”),
each party irrevocably:—

 

(i)            submits
to the jurisdiction of the English courts, if this Agreement is expressed to be
governed by English law, or to the non-exclusive jurisdiction of the courts of
the State of New York and the United States District Court located in the
Borough of Manhattan in New York City, if this Agreement is expressed to be
governed by the laws of the State of New York; and

 

(ii)           waives
any objection which it may have at any time to the laying of venue of any
Proceedings brought in any such court, waives any claim that such Proceedings
have been brought in an inconvenient forum and further waives the right to
object, with respect to such Proceedings, that such court does not have any
jurisdiction over such party.

 

Nothing in this Agreement precludes either party from
bringing Proceedings in any other jurisdiction (outside, if this Agreement is
expressed to be governed by English law, the Contracting States, as defined in Section 1(3) of
the Civil Jurisdiction and Judgments Act 1982 or any modification, extension or
re-enactment thereof for the time being in force) nor will the bringing of
Proceedings in any one or more jurisdictions preclude the bringing of
Proceedings in any other jurisdiction.

 

(c)          Service of Process.
Each party irrevocably appoints the Process Agent (if any) specified opposite
its name in the Schedule to receive, for it and on its behalf, service of
process in any Proceedings. If for any

 

13

 

reason any party’s Process Agent is unable to act as
such, such party will promptly notify the other party and within 30 days
appoint a substitute process agent acceptable to the other party. The parties
irrevocably consent to service of process given in the manner provided for
notices in Section 12. Nothing in this Agreement will affect the right of
either party to serve process in any other manner permitted by law.

 

(d)          Waiver of Immunities.
Each party irrevocably waives, to the fullest extent permitted by applicable
law, with respect to itself and its revenues and assets (irrespective of their
use or intended use), all immunity on the grounds of sovereignty or other
similar grounds from (i) suit, (ii) jurisdiction of any court, (iii) relief
by way of injunction, order for specific performance or for recovery of
property, (iv) attachment of its assets (whether before or after judgment)
and (v) execution or enforcement of any judgment to which it or its
revenues or assets might otherwise be entitled in any Proceedings in the courts
of any jurisdiction and irrevocably agrees, to the extent permitted by applicable
law, that it will not claim any such immunity in any Proceedings.

 

14.         Definitions

 

As used in this Agreement: —

 

“Additional Termination
Event” has the meaning specified in Section 5(b).

 

“Affected Party”
has the meaning specified in Section 5(b).

 

“Affected Transactions”
means (a) with respect to any Termination Event consisting of an
Illegality, Tax Event or Tax Event Upon Merger, all Transactions affected by
the occurrence of such Termination Event and (b) with respect to any other
Termination Event, all Transactions.

 

“Affiliate”
means, subject to the Schedule, in relation to any person, any entity
controlled, directly or indirectly, by the person, any entity that controls,
directly or indirectly, the person or any entity directly or indirectly under
common control with the person. For this purpose, “control” of any entity or
person means ownership of a majority of the voting power of the entity or
person.

 

“Applicable Rate”
means: —

 

(a)           in
respect of obligations payable or deliverable (or which would have been but for
Section 2(a)(iii)) by a Defaulting Party, the Default Rate;

 

(b)           in
respect of an obligation to pay an amount under Section 6(e) of
either party from and after the date (determined in accordance with Section 6(d)(ii))
on which that amount is payable, the Default Rate;

 

(c)           in
respect of all other obligations payable or deliverable (or which would have
been but for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default
Rate; and

 

(d)           in
all other cases, the Termination Rate.

 

“Burdened Party”
has the meaning specified in Section 5(b).

 

“Change in Tax Law”
means the enactment, promulgation, execution or ratification of, or any change
in or amendment to, any law (or in the application or official interpretation
of any law) that occurs on or after the date on which the relevant Transaction
is entered into.

 

“consent”
includes a consent, approval, action, authorisation, exemption, notice, filing,
registration or exchange control consent.

 

“Credit Event Upon Merger”
has the meaning specified in Section 5(b).

 

“Credit Support Document”
means any agreement or instrument that is specified as such in this Agreement.

 

“Credit Support Provider”
has the meaning specified in the Schedule.

 

“Default Rate”
means a rate per annum equal to the cost (without proof or evidence of any
actual cost) to the relevant payee (as certified by it) if it were to fund or
of funding the relevant amount plus 1% per annum.

 

14

 

“Defaulting Party”
has the meaning specified in Section 6(a).

 

“Early Termination Date”
means the date determined in accordance with Section 6(a) or
6(b)(iv).

 

“Event of Default”
has the meaning specified in Section 5(a) and, if applicable, in the
Schedule.

 

“Illegality” has
the meaning specified in Section 5(b).

 

“Indemnifiable Tax”
means any Tax other than a Tax that would not be imposed in respect of a
payment under this Agreement but for a present or former connection between the
jurisdiction of the government or taxation authority imposing such Tax and the
recipient of such payment or a person related to such recipient (including,
without limitation, a connection arising from such recipient or related person
being or having been a citizen or resident of such jurisdiction, or being or having
been organised, present or engaged in a trade or business in such jurisdiction,
or having or having had a permanent establishment or fixed place of business in
such jurisdiction, but excluding a connection arising solely from such
recipient or related person having executed, delivered, performed its
obligations or received a payment under, or enforced, this Agreement or a
Credit Support Document).

 

“law” includes
any treaty, law, rule or regulation (as modified, in the case of tax
matters, by the practice of any relevant governmental revenue authority) and “lawful”
and “unlawful” will be construed accordingly.

 

“Local Business Day”
means, subject to the Schedule, a day on which commercial banks are open for
business (including dealings in foreign exchange and foreign currency deposits)
(a) in relation to any obligation under Section 2(a)(i), in the place(s) specified
in the relevant Confirmation or, if not so specified, as otherwise agreed by
the parties in writing or determined pursuant to provisions contained, or
incorporated by reference, in this Agreement, (b) in relation to any other
payment, in the place where the relevant account is located and, if different.
in the principal financial centre, if any, of the currency of such payment, (c) in
relation to any notice or other communication, including notice contemplated
under Section 5(a)(i), in the city specified in the address for notice
provided by the recipient and, in the case of a notice contemplated by Section 2(b),
in the place where the relevant new account is to be located and (d) in
relation to Section 5(a)(v)(2), in the relevant locations for performance
with respect to such Specified Transaction.

 

“Loss” means,
with respect to this Agreement or one or more Terminated Transactions, as the
case may be, and a party, the Termination Currency Equivalent of an amount that
party reasonably determines in good faith to be its total losses and costs (or
gain, in which case expressed as a negative number) in connection with this
Agreement or that Terminated Transaction or group of Terminated Transactions,
as the case may be, including any loss of bargain, cost of funding or, at the
election of such party but without duplication, loss or cost incurred as a
result of its terminating, liquidating, obtaining or reestablishing any hedge
or related trading position (or any gain resulting from any of them). Loss
includes losses and costs (or gains) in respect of any payment or delivery
required to have been made (assuming satisfaction of each applicable condition
precedent) on or before the relevant Early Termination Date and not made,
except, so as to avoid duplication, if Section 6(c)(i)(1) or (3) or
6(e)(ii)(2)(A) applies. Loss does not include a party’s legal fees and
out-of-pocket expenses referred to under Section 11. A party will
determine its Loss as of the relevant Early Termination Date, or, if that is
not reasonably practicable, as of the earliest date thereafter as is reasonably
practicable. A party may (but need not) determine its Loss by reference to quotations
of relevant rates or prices from one or more leading dealers in the relevant
markets.

 

“Market
Quotation” means, with respect to
one or more Terminated Transactions and a party making the determination, an
amount determined on the basis of quotations from Reference Market-makers. Each
quotation will be for an amount, if any, that would be paid to such party
(expressed as a negative number) or by such party (expressed as a positive
number) in consideration of an agreement between such party (taking into
account any existing Credit Support Document with respect to the obligations of
such party) and the quoting Reference Market-maker to enter into a transaction
(the “Replacement Transaction”) that would have the effect of preserving for
such party the economic equivalent of any payment or delivery (whether the
underlying obligation was absolute or contingent and assuming the satisfaction
of each applicable condition precedent) by the parties under Section 2(a)(i) in
respect of such Terminated Transaction or group of Terminated Transactions that
would, but for the occurrence of the relevant Early Termination Date, have

 

15

 

been required after that date. For this purpose,
Unpaid Amounts in respect of the Terminated Transaction or group of Terminated
Transactions are to be excluded but, without limitation, any payment or
delivery that would, but for the relevant Early Termination Date, have been
required (assuming satisfaction of each applicable condition precedent) after
that Early Termination Date is to be included. The Replacement Transaction
would be subject to such documentation as such party and the Reference
Market-maker may, in good faith, agree. The party making the determination (or
its agent) will request each Reference Market-maker to provide its quotation to
the extent reasonably practicable as of the same day and time (without regard
to different time zones) on or as soon as reasonably practicable after the
relevant Early Termination Date. The day and time as of which those quotations
are to be obtained will be selected in good faith by the party obliged to make
a determination under Section 6(e), and, if each party is so obliged,
after consultation with the other. If more than three quotations are provided,
the Market Quotation will be the arithmetic mean of the quotations, without
regard to the quotations having the highest and lowest values, If exactly three
such quotations are provided, the Market Quotation will be the quotation
remaining after disregarding the highest and lowest quotations. For this
purpose, if more than one quotation has the same highest value or lowest value,
then one of such quotations shall be disregarded. If fewer than three
quotations are provided, it will be deemed that the Market Quotation in respect
of such Terminated Transaction or group of Terminated Transactions cannot be
determined.

 

“Non-default Rate”
means a rate per annum equal to the cost (without proof or evidence of any
actual cost) to the Non-defaulting Party (as certified by it) if it were to
fund the relevant amount.

 

“Non-defaulting Party”
has the meaning specified in Section 6(a).

 

“Office” means a
branch or office of a party, which may be such party’s head or home office.

 

“Potential Event of Default”
means any event which, with the giving of notice or the lapse of time or both,
would constitute an Event of Default.

 

“Reference Market-makers”
means four leading dealers in the relevant market selected by the party
determining a Market Quotation in good faith (a) from among dealers of the
highest credit standing which satisfy all the criteria that such party applies
generally at the time in deciding whether to offer or to make an extension of
credit and (b) to the extent practicable, from among such dealers having
an office in the same city.

 

“Relevant Jurisdiction”
means, with respect to a party, the jurisdictions (a) in which the party
is incorporated, organised, managed and controlled or considered to have its
seat, (b) where an Office through which the party is acting for purposes
of this Agreement is located, (c) in which the party executes this
Agreement and (d) in relation to any payment, from or through which such
payment is made.

 

“Scheduled Payment Date”
means a date on which a payment or delivery is to be made under Section 2(a)(i) with
respect to a Transaction.

 

“Set-off”  means set-off, offset, combination of accounts, right of
retention or withholding or similar right or requirement to which the payer of
an amount under Section 6 is entitled or subject (whether arising under
this Agreement, another contract, applicable law or otherwise) that is
exercised by, or imposed on, such payer.

 

“Settlement Amount”
means, with respect to a party and any Early Termination Date, the sum of.-

 

(a)           the
Termination Currency Equivalent of the Market Quotations (whether positive or
negative) for each Terminated Transaction or group of Terminated Transactions
for which a Market Quotation is determined; and

 

(b)           such
party’s Loss (whether positive or negative and without reference to any Unpaid
Amounts) for each Terminated Transaction or group of Terminated Transactions
for which a Market Quotation cannot be determined or would not (in the
reasonable belief of the party making the determination) produce a commercially
reasonable result.

 

“Specified Entity”
has the meaning specified in the Schedule.

 

16

 

“Specified Indebtedness”
means, subject to the Schedule, any obligation (whether present or future,
contingent or otherwise, as principal or surety or otherwise) in respect of
borrowed money.

 

“Specified Transaction”
means, subject to the Schedule, (a) any transaction (including an
agreement with respect thereto) now existing or hereafter entered into between
one party to this Agreement (or any Credit Support Provider of such party or
any applicable Specified Entity of such party) and the other party to this
Agreement (or any Credit Support Provider of such other party or any applicable
Specified Entity of such other party) which is a rate swap transaction, basis
swap, forward rate transaction, commodity swap, commodity option, equity or
equity index swap, equity or equity index option, bond option, interest rate
option, foreign exchange transaction, cap transaction, floor transaction,
collar transaction, currency swap transaction, cross-currency rate swap
transaction, currency option or any other similar transaction (including any
option with respect to any of these transactions), (b) any combination of
these transactions and (c) any other transaction identified as a Specified
Transaction in this Agreement or the relevant confirmation.

 

“Stamp Tax”
means any stamp, registration, documentation or similar tax.

 

“Tax” means any
present or future tax, levy, impost, duty, charge, assessment or fee of any
nature (including interest, penalties and additions thereto) that is imposed by
any government or other taxing authority in respect of any payment under this
Agreement other than a stamp, registration, documentation or similar tax.

 

“Tax Event” has
the meaning specified in Section 5(b).

 

“Tax Event Upon Merger”
has the meaning specified in Section 5(b).

 

“Terminated Transactions”
means with respect to any Early Termination Date (a) if resulting from a
Termination Event, all Affected Transactions and (b) if resulting from an
Event of Default, all Transactions (in either case) in effect immediately
before the effectiveness of the notice designating that Early Termination Date
(or, if “Automatic Early Termination” applies, immediately before that Early
Termination Date).

 

“Termination Currency”
has the meaning specified in the Schedule.

 

“Termination Currency
Equivalent” means, in respect of any amount denominated in the
Termination Currency, such Termination Currency amount and, in respect of any
amount denominated in a currency other than the Termination Currency (the “Other
Currency”), the amount in the Termination Currency determined by the party
making the relevant determination as being required to purchase such amount of
such Other Currency as at the relevant Early Termination Date, or, if the
relevant Market Quotation or Loss (as the case may be), is determined as of a
later date, that later date, with the Termination Currency at the rate equal to
the spot exchange rate of the foreign exchange agent (selected as provided
below) for the purchase of such Other Currency with the Termination Currency at
or about 11:00 a.m. (in the city in which such foreign exchange agent is
located) on such date as would be customary for the determination of such a
rate for the purchase of such Other Currency for value on the relevant Early
Termination Date or that later date. The foreign exchange agent will, if only
one party is obliged to make a determination under Section 6(e), be
selected in good faith by that party and otherwise will be agreed by the
parties

 

“Termination Event”
means an Illegality, a Tax Event or a Tax Event Upon Merger or, if specified to
be applicable, a Credit Event Upon Merger or an Additional Termination Event.

 

“Termination Rate”
means a rate per annum equal to the arithmetic mean of the cost (without proof
or evidence of any actual cost) to each party (as certified by such party) if
it were to fund or of funding such amounts.

 

“Unpaid
Amounts” owing to any party means,
with respect to an Early Termination Date, the aggregate of (a) in respect
of all Terminated Transactions, the amounts that became payable (or that would
have become payable but for Section 2(a)(iii)) to such party under Section 2(a)(i) on
or prior to such Early Termination Date and which remain unpaid as at such
Early Termination Date and (b) in respect of each Terminated Transaction.
for each obligation under Section 2(a)(i) which was (or would have
been but for Section 2(a)(iii)) required to be settled by delivery to such
party on or prior to such Early Termination Date and which has not been so
settled as at such Early Termination Date, an amount equal to the fair market

 

17

 

value of that which was (or would have been) required
to be delivered as of the originally scheduled date for delivery, in each case
together with (to the extent permitted under applicable law) interest, in the
currency of such amounts, from (and including) the date such amounts or
obligations were or would have been required to have been paid or performed to
(but excluding) such Early Termination Date, at the Applicable Rate. Such
amounts of interest will be calculated on the basis of daily compounding and
the actual number of days elapsed. The fair market value of any obligation
referred to in clause (b) above shall be reasonably determined by the
party obliged to make the determination under Section 6(e) or, if
each party is so obliged, it shall be the average of the Termination Currency
Equivalents of the fair market values reasonably determined by both parties.

 

IN WITNESS WHEREOF the parties have executed this
document on the respective dates specified below with effect from the date
specified on the first page of this document.

 

 

	
   

  	
  CREDIT SUISSE ENERGY LLC

  	
   

  	
   

  	
  NOBLE ENVIRONMENTAL POWER

  
	
   

  	
   

  	
   

  	
   

  	
  2006 HOLD CO, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marisa Scauzillo

  	
   

  	
  By: 

  	
  /s/ Thomas F. Swank

  
	
   

  	
   

  	
  Name:

  	
   Marisa Scauzillo

  	
   

  	
   

  	
  Name:

  	
   Thomas F. Swank

  
	
   

  	
   

  	
  Title:

  	
   Authorized Signatory

  	
   

  	
   

  	
  Title:

  	
   Vice President

  

 

18

 

[Execution Version]

 

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

 

Schedule

to
the

1992 ISDA Master Agreement

 

dated
as of June 20, 2007

 

between

 

	
  Credit Suisse Energy LLC,

  a limited liability
  company organized under the

  laws of the State of Delaware

  (“Party
  A”)

  	
   

  	
  and

  	
   

  	
  Noble Environmental Power 2006 Hold
  Co, LLC

   

  a limited liability
  company organized

  under the laws of the State of Delaware

  (“Party B”)

  

 

Part 1

Termination Provisions

 

(a)          Specified Entity.  “Specified Entity” means in relation to Party A for the purpose of:

 

	
  Section 5(a)(v):

  	
  Not
  Applicable

  
	
  Section 5(a)(vi):

  	
  Not
  Applicable

  
	
  Section 5(a)(vii):

  	
  Not
  Applicable

  
	
  Section 5(b)(iv):

  	
  Not
  Applicable

  
	
   

  	
   

  
	
  in
  relation to Party B for the purpose of:

  
	
   

  	
   

  
	
  Section 5(a)(v):

  	
  Not
  Applicable

  
	
  Section 5(a)(vi):

  	
  Not
  Applicable

  
	
  Section 5(a)(vii):

  	
  Not
  Applicable

  
	
  Section 5(b)(iv):

  	
  Not
  Applicable

  

 

(b)          Specified
Transaction.  Specified Transaction will have
the meaning specified in Section 14 of this Agreement, except that such
term is amended on line 8 after the words “currency option” by adding a comma
and the words “agreement for the purchase, sale or transfer of any commodity or
any other commodity trading transaction.” 
For this purpose, “commodity” means any tangible or intangible commodity
of any type or description, including, without limitation, electricity, natural
gas, petroleum, coal, emissions allowances, the products and by-products
thereof, and weather derivatives.

 

(c)          Cross
Default.  The “Cross Default” provision (Section 5(a)(vi)),
will apply to Party A and Party B; provided that (i) the phrase “or becoming
capable at such time of being declared” shall be deleted from clause (1) of
such Section 5(a)(vi) and (ii) the following shall be added at
the end of such Section 5(a)(vi): “provided that
notwithstanding anything to the contrary contained in this Section 5(a)(vi) with
respect to Party B, an Event of Default under this Section 5(a)(vi) shall
not be deemed to exist or have occurred in respect of Party B if (x) a ***
has not occurred under the *** and (y) the only remedies exercised by the
Senior Lenders in 

 

 

connection
with any event of default under the Loan Documents are limited to those
contemplated under***”.

 

“Specified Indebtedness” will have the meaning
specified in Section 14 of the Agreement.

 

“Threshold Amount” means $***.

 

(d)         Additional Events of
Default.  Section 5(a) is further amended by
adding the following additional Events of Default, which shall apply with
respect to Party B only, with Party B being deemed the Defaulting Party upon
the occurrence of the following events and the failure to cure within the
applicable cure period:

 

“(ix)                        Failure of Security Interest.  The
occurrence of any event or circumstance on or after the Closing Date that
results in Party A’s security interest in and lien on the Junior Collateral
failing or ceasing to be a second priority security interest and lien thereon,
subject and junior only to Permitted Liens and the security interests and liens
created by and granted under the First Lien Collateral Documents, or otherwise
having been materially impaired, including, without limitation, pursuant to a
refinancing, restructuring, substitution, extension, replacement, modification
or termination of the Financing Agreement, the Loan Documents or the First Lien
Collateral Documents, not otherwise permitted pursuant to paragraph (m)(i) of
Part 5 below, and such occurrence, event or circumstance is not cured
within *** Local Business Days following Party B’s obtaining Actual
Knowledge thereof;

 

(x)                                 ***

 

(xi)                              ***

 

(xii)                           ***

 

***

 

20

 

(e)          Posting Additional
Credit Support to Forestall Certain Events of Default.  Party A and Party B agree that no Event of
Default shall occur with respect to Party B under Section *** of the Agreement (each, a “Specified Event of Default”) above
if Party B or its designee Transfers Eligible
Collateral or Other Eligible Support to
Party A in accordance with the Credit Support Annex such that Party A holds
Posted Credit Support with a Value equal to or greater than its
Total Exposure at all times during the related Additional Collateral
Period.

 

(f)            Additional Amendments to Events
of Default and Termination Events.

 

(1)                                The Credit Support Default in Section 5(a)(iii) of
the Agreement is amended by restating clause (2) thereof to read as
follows:

 

“(2)                           the expiration or termination of such Credit
Support Document or the failing or ceasing of such Credit Support Document to
be in full force and effect for the purpose of this Agreement (in either case
other than in accordance with its terms) prior to the satisfaction of all
obligations of such party under each Transaction to which such Credit Support
Document relates without the written consent of the other party, provided that such event shall not result in an Event of
Default under this clause (2) if a replacement agreement (on substantially
the same terms as the document being replaced) is executed and delivered to the
other party within three Local Business Days of such event; or”

 

(2)                                The Misrepresentation Default in Section 5(a)(iv) of
the Agreement is amended by adding the following proviso at the end thereof:

 

“; provided that, if any such misrepresentation or the adverse
effect thereof is capable of being remedied, the party may remedy such
misrepresentation or adverse effect by (1) notifying the other party
promptly upon obtaining Actual Knowledge of such misrepresentation, (2) taking
diligent action to cure such misrepresentation or adverse effect within such
period and (3) curing such misrepresentation or adverse effect thereof
(including adverse effects on the other party) within 30 days of obtaining
Actual Knowledge thereof.”

 

(3)                                The Bankruptcy Default in Section 5(a)(vii) of
the Agreement is deleted in its entirety and replaced with the following:

 

“Bankruptcy.  The party or any Credit
Support Provider of such party:–

 

(1) is
dissolved (other than pursuant to a consolidation, amalgamation or merger); (2) becomes
insolvent or is unable to pay its debts or fails or admits in writing its
inability generally to pay its debts as they become due; (3) makes a
general assignment, arrangement or composition with or for the benefit of its
creditors; (4) institutes or has instituted against it a proceeding
seeking a judgment of insolvency or bankruptcy or any other relief under any
bankruptcy or insolvency law or other similar law affecting creditors’ rights,
or a petition is presented for its winding-up or liquidation, and, in the case
of any such proceeding or petition instituted or presented against it, such
proceeding or petition (A) results in a judgment of insolvency or
bankruptcy or the entry of an order for relief or the making of an order for
its winding-up or liquidation or (B) is not dismissed, discharged, stayed
or restrained in each case within *** days of the institution or presentation
thereof, (5) has a resolution passed for its winding-up, official 

 

21

 

management or
liquidation (other than pursuant to a consolidation, amalgamation or merger); (6) seeks
or becomes subject to the appointment of an administrator, provisional
liquidator, conservator, receiver, trustee, custodian or other similar official
for it or for all or substantially all its assets and, in the case of any such
involuntary appointment, such appointment is not vacated within *** days (provided that such *** day grace period will not apply
unless the other party is given prompt (and, in any event, within *** Local
Business Days) written notice of such appointment and the party subject to such
appointment is diligently pursuing the vacation thereof); (7) has a
secured party take possession of all or substantially all its assets or has a
distress, execution, attachment, sequestration or other legal process levied,
enforced or sued on or against all or substantially all its assets and such
secured party maintains possession, or any such process is not dismissed,
discharged, stayed or restrained, in each case within *** days thereafter; (8) causes
or is subject to any event with respect to it which. under the applicable laws
of any jurisdiction, has an analogous effect to any of the events specified in
clauses (1) to (7) (inclusive); or (9) consents to, approves of,
or acquiesces in, any of the acts referred to in the foregoing clauses (4), (6) or
(7); or”

 

(4)                                  The Illegality Termination Event in Section 5(b)(i) of
the Agreement is amended by restating clause (2) thereof, by adding a
clause (3) thereto and by adding a proviso following clauses (1), (2) and
(3) thereof, in each case, to read as follows:

 

“(2)                            to perform any contingent or other material
obligation which the party has under any Credit Support Document relating to
such Transaction; or

 

(3)                                  for any Credit Support Provider of such party
to perform any contingent or other material obligation which such Credit Support
Provider has under any Credit Support Document relating to such Transaction;

 

provided
that, with respect to
clauses (2) and (3) above, such party shall have *** Local Business Days to cure such failure to
perform by providing a replacement Credit Support Document (and if such failure
is not cured within such ***
Local Business Day period, the Termination Event pursuant to this Section 5(b)(i) shall
occur on such *** day).”

 

(5)                                  The
Tax Event in Section 5(b)(ii) of the Agreement is amended by adding a
proviso following at the end thereof reading as follows:

 

“, provided that, if the Affected Party is Party A, the matters
referred to in this Section 5(b)(ii) shall not constitute a
Termination Event if, within ten Local Business Days of any such event, Party B
provides Party A with an indemnity (in a form reasonably acceptable to Party A)
for all amounts that Party A would otherwise be required to pay under Section 5(b)(ii)(1) and
for all amounts that otherwise would be deducted or withheld from payments to Party
A under Section 5(b)(ii)(2) (and, if such failure is not cured within
such ten Local Business Day period, the Termination Event pursuant to this Section 5(b)(ii) shall
occur on such tenth day).”

 

(6)                                  The
Tax Event Upon Merger in Section 5(b)(iii) of the Agreement is
amended by adding a proviso following at the end thereof reading as follows:

 

“, provided that, if the Burdened Party is Party A, the matters
referred to in this Section 5(b)(iii) shall not constitute a
Termination Event if, within ten Local Business Days of 

 

22

 

any such
event, Party B provides Party A with an indemnity (in a form reasonably
acceptable to Party A) for all amounts that Party A would otherwise be required
to pay under Section 5(b)(iii)(1) and for all amounts that otherwise
would be deducted or withheld from payments to Party A under Section 5(b)(iii)(2) (and, if such indemnity is not provided
within such ten Local Business Day period, the Termination Event pursuant to
this Section 5(b)(iii) shall occur on such tenth day).”

 

(g)         Credit Event
Upon Merger.  The “Credit Event Upon Merger”
provision (Section 5(b)(iv)) will apply to Party A and Party B.

 

(h)         Automatic
Early Termination.  The “Automatic Early Termination”
provisions of Section 6(a) of
this Agreement will not apply to Party A and will not apply to Party B.

 

(i)            Payments on
Early Termination.  For the purpose of Section 6(e),
Loss and the Second Method will apply.

 

(j)            Termination
Currency.  “Termination
Currency” means United States Dollars.

 

(k)        Additional
Termination Event.  Additional Termination Event
will not apply to Party A or Party B.

 

Part 2

Tax Representations

 

(a)         Payer Tax
Representations.  For the purpose of Section 3(e),
Party A and Party B each makes the following representation:

 

It is not required by any applicable law, as modified
by the practice of any relevant governmental revenue authority, of any Relevant
Jurisdiction to make any deduction or withholding for or on account of any Tax
from any payment (other than interest under Section 2(e), 6(d)(ii) or
6(e)) to be made by it to the other party under this Agreement.  In making this representation, it may rely
on:

 

(i)             The accuracy of any
representation made by the other party pursuant to Section 3(f);

 

(ii)          The satisfaction of the
agreement of the other party contained in Section 4(a)(i) or 4(a)(iii) and
the accuracy and effectiveness of any document provided by the other party
pursuant to Section 4(a)(i) or 4(a)(iii); and

 

(iii)       The satisfaction of the
agreement of the other party contained in Section 4(d);

 

provided that it shall not be a breach of this representation
where reliance is placed on clause (ii), and the other party does not deliver a
form or document under Section 4(a)(iii) by reason of material
prejudice to its legal or commercial position.

 

(b)         Payee Tax
Representations.  For the purpose of Section 3(f):

 

(i)             Party A makes no Payee
Tax Representations.

 

(ii)          Party B makes no Payee
Tax Representations.

 

23

 

Part 3

Agreement to Deliver
Documents

 

Each party agrees to
deliver the following documents as applicable:

 

(a)          For the purpose of Section 4(a)(i),
tax forms, documents or certificates to be delivered are:

 

	
  Party required to

  deliver document

  	
   

  	
  Form/Document/Certificate

  	
   

  	
  Date by which

  to be delivered

  
	
  Party A

  &

  Party B

  	
   

  	
  United States Internal Revenue Service
  Form W-9, or any successor form, or any other document required or
  reasonably requested to allow the other party to make payments under this
  Agreement without any deduction or withholding form or on account of any Tax
  or with such deduction or withholding at a reduced rate.

  	
   

  	
  (i) On a date which is before the first
  Scheduled Payment Date under this Agreement,

  (ii) promptly upon reasonable demand by the other party and

  (iii) promptly upon learning that any such form previously provided by
  such party has become obsolete, incorrect, or ineffective.

  

 

(b)          For the purpose of Section 4(a)(ii),
other documents to be delivered are:

 

	
  Party required to

  deliver document

  	
   

  	
  Form/Document/Certificate

  	
   

  	
  Date by which

  to be delivered

  	
   

  	
  Covered by

  Section 3(d)

  Representation

  
	
  (1)

  	
   

  	
  Party
  A

  &

  Party B

  	
   

  	
  Evidence
  reasonably satisfactory to the other party as to the names, true signatures
  and authority of the officers or officials (a) signing this Agreement or
  any Confirmation on its behalf, and (b) signing the respective Credit
  Support Document referred to in Part 4(e) of this Schedule.

  	
   

  	
  Upon
  execution of this Agreement and, if requested upon execution of any
  Confirmation.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  Party
  B

  	
   

  	
  A
  copy of the audited annual report of NEP and the unaudited annual financial
  statements of the Project Companies.

  	
   

  	
  Upon
  request, as soon as available.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  Party
  A

  	
   

  	
  A
  copy of the audited annual report of the Credit Support Provider for Party A.

  	
   

  	
  Upon
  request, as soon as publicly available.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  Party
  A & Party B

  	
   

  	
  A
  duly signed copy of each respective

  	
   

  	
  Upon execution of

  	
   

  	
  Yes

  

 

24

 

	
   

  	
   

  	
   

  	
   

  	
  Credit
  Support Document referred to in Part 4(e) of this Schedule.

  	
   

  	
  this Agreement.

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (5)

  	
   

  	
  Party
  A & Party B

  	
   

  	
  Certified resolutions
  evidencing necessary corporate authority and approvals with respect to the
  execution, delivery and performance by Party A and Party B of this Agreement
  and any Confirmation delivered thereunder on behalf of Party A or Party B.

  	
   

  	
  Upon execution of this
  Agreement.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (6)

  	
   

  	
  Party
  A & Party B

  	
   

  	
  Certified resolutions
  evidencing necessary corporate authority and approvals with respect to the
  execution, delivery and performance by the Credit Support Provider of any
  applicable Credit Support Document.

  	
   

  	
  Upon execution of this
  Agreement.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (7)

  	
   

  	
  Party
  B

  	
   

  	
  (i) All documents
  (e.g., security agreements, mortgages, deeds of trust etc.) that evidence and
  are necessary to validly grant the Second Lien and (ii) the
  Subordination Agreement.

  	
   

  	
  Upon execution of this
  Agreement.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (8)

  	
   

  	
  Party
  B

  	
   

  	
  Executed copies of the
  Loan Documents, the First Lien Collateral Documents, the Project Documents
  (other than the Additional Project Documents), the CS/GE Forbearance
  Agreement and the Dexia/GE Forbearance Agreement.

  	
   

  	
  Upon execution of this
  Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (9)

  	
   

  	
  Party
  B

  	
   

  	
  Executed copies of
  Additional Project Documents

  	
   

  	
  Within 30 days following
  execution thereof

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (10)

  	
   

  	
  Party
  B

  	
   

  	
  A Letter of Credit (the “Initial
  LC”) in an amount equal to the Initial LC Amount.

  	
   

  	
  Upon execution of this
  Agreement

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (11)

  	
   

  	
  Party
  B

  	
   

  	
  An opinion of counsel to
  Party B in form and substance satisfactory to Party A.

  	
   

  	
  Upon execution of this
  Agreement

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (12)

  	
   

  	
  Party
  A and Party B

  	
   

  	
  ***

  	
   

  	
  Upon execution of this
  Agreement

  	
   

  	
  No

  

 

25

 

	
  (13)

  	
   

  	
  Party
  B

  	
   

  	
  Notice of each event of
  default under the Financing Agreement

  	
   

  	
  Promptly after the
  occurrence thereof

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (14)

  	
   

  	
  Party
  B

  	
   

  	
  Copies of each waiver of
  an event of default under the Financing Agreement

  	
   

  	
  Promptly after the
  execution thereof

  	
   

  	
  No

  

 

Part 4

Miscellaneous

 

(a)          Addresses
for Notices.  For the purpose of Section 12(a):

 

Notwithstanding Section 12(a) of the
Agreement all notices including those to be given under Section 5 or 6 may
be given by facsimile transmission or electronic messaging system (excluding
e-mail).

 

(i)                                     Party A:

 

(A)  Address for notices or communications to
Party A:

 

11 Madison Avenue

New York, NY 10010

Attention:(I) Head of Credit Risk Management;

 

(I)  Head of Credit Risk Management;

 

(II)  Head of OTC Operations – Operations
Department;

 

(III)  Head of Documentation Group – Securities
Division Legal and Compliance Department

 

(B)  For the purpose of facsimile notices or
communications under this Agreement

 

(I) Facsimile: +1 (917) 326-7930

 

Attention: Head of Documentation Group – Securities
Division Legal and Compliance Department

 

(II)  Facsimile: +1 (212) 325-8170

 

Attention: 
Head of Credit Risk Management

 

(III)  Facsimile (including for invoices and
Confirmations): +(212) 951-8823

 

Attention: 
Head of OTC Operations - Operations Department.

 

Electronic Messaging System details:  None unless mutually agreed otherwise.

 

26

 

(ii)          Party B

 

Address
for  notices or communications to Party B:

 

Noble Environmental Power 2006 Hold Co, LLC

8 Railroad Avenue

Suite 8, Second Floor

Essex, CT 06426

 

Attention:  Thomas
Swank and Sidney Chang

Telephone:  +1
(860) 581-5010 / (860) 581-5060

Facsimile:  +1 (860) 767-7198

 

(For all purposes.)

 

(iii)       Class A Member

 

Address
for  notices or communications to the Class A
Member:

 

EFS Noble Holdings, LLC

c/o GE Financial Services

c/o General Electric Capital Corporation

120 Long Ridge Road

Stamford, Connecticut 06927

 

(For receipt of notice of Termination Events and Events
of Default as to which Party B is the Affected Party or Defaulting Party, as
applicable.)

 

(iv)      Senior Lenders

 

Address for notices or communications to the Senior
Lenders:

 

Dexia Crédit Local, New York Branch

445 Park Avenue, 7th Floor

New York, New York 10022 

Tel:  +1 (212) 515-7000

Fax:  +1 (212)
753-5522

Attn: Portfolio Management

 

(For receipt of notice of Termination Events and Events
of Default as to which Party B is the Affected Party or Defaulting Party, as
applicable.)

 

(b)         Offices.  The provisions of Section 10(a) will
apply to this Agreement.

 

(c)          Multibranch
Party.
For the purpose of Section 10(c):

 

Party A
is not a Multibranch Party.

 

Party B
is not a Multibranch Party.

 

(d)         Calculation
Agent.  The
Calculation Agent is Party A unless otherwise specified in a Confirmation in
relation to the relevant Transaction; provided, however, that if an Event of Default has occurred and is
continuing with respect to Party A, the Calculation Agent shall be a designated
third party mutually agreed to by the parties until such time as Party A is no
longer a Defaulting Party.  The failure
of a party to perform its obligations as a Calculation Agent hereunder shall
not be construed as an Event

 

27

 

of
Default or Termination Event.  If a
calculation or determination is disputed by the party not acting as Calculation
Agent then the parties shall first endeavor to resolve such dispute, but if
they are unable to do so within a commercially reasonable time, then they shall
mutually select a dealer to act as Calculation Agent, whose fees and expenses
shall be met equally by both parties; provided that
if they can not mutually agree upon such a substitute Calculation Agent then
they shall each select an independent dealer and such dealers shall mutually
select another dealer to serve as substitute Calculation Agent.

 

(e)          Credit
Support Document.  Details of any Credit Support
Document:

 

In
relation to Party A and Party B:  The
ISDA Credit Support Annex.

 

In relation to Party A:  The guarantee made by Credit Suisse (USA), Inc.,
dated the date hereof, attached hereto as Exhibit I.

 

In relation to Party B: The Second Lien Collateral Documents.

 

(f)            Credit
Support Provider.  Credit Support Provider
means:

 

In relation to Party A:                                                     Credit Suisse (USA), Inc.

 

In relation to Party B:                                                       The Project Companies.

 

(g)         Governing
Law and Jurisdiction.  THIS AGREEMENT
WILL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF
NEW YORK (WITHOUT REGARD TO CONFLICTS OF LAW PROVISIONS THEREOF
OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).  SECTION 13(B) IS HEREBY AMENDED BY:
(I) DELETING IN THE SECOND LINE OF SUBPARAGRAPH (I) THEREOF THE WORD,
“NON-”; (II) ADDING IN THE THIRD LINE BEFORE THE COMMA, “AND EACH PARTY
IRREVOCABLY AGREES TO DESIGNATE ANY PROCEEDINGS BROUGHT IN THE COURTS OF THE
STATE OF NEW YORK AS ‘COMMERCIAL’ ON THE REQUEST FOR JUDICIAL INTERVENTION
SEEKING ASSIGNMENT TO THE COMMERCIAL DIVISION OF THE SUPREME COURT”; AND (III) INSERTING
“IN ORDER TO ENFORCE ANY JUDGMENT OBTAINED IN ANY PROCEEDINGS REFERRED TO IN
THE PRECEDING SENTENCE” IMMEDIATELY AFTER THE WORD, “JURISDICTION” THE FIRST
TIME IT APPEARS IN THE SECOND SENTENCE AND DELETING THE REMAINDER.  EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES AND AGREES NOT TO
PLEAD, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY OBJECTION THAT THEY MAY NOW
OR HEREAFTER HAVE TO THE LAYING OF VENUE OR THE CONVENIENCE OF THE FORUM OF ANY
PROCEEDING WITH RESPECT TO THIS AGREEMENT AND THE TRANSACTIONS CONTEMPLATED
HEREBY, IN THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW
YORK AND THE COURTS OF THE STATE OF NEW YORK LOCATED IN NEW YORK COUNTY.  EACH PARTY AGREES THAT A FINAL JUDGMENT,
SUBJECT TO APPEAL RIGHTS, IN ANY PROCEEDING SO BROUGHT SHALL BE CONCLUSIVE AND MAY BE
ENFORCED BY SUIT ON THE JUDGMENT IN ANY COURT OR IN ANY OTHER MANNER PROVIDED
BY LAW OR IN EQUITY.

 

(h)        Affiliate.  Affiliate
will have the meaning specified in Section 14.

 

28

 

(i)            Netting
of Payments. 
Subparagraph (ii) of Section 2(c) will not apply to
Transactions.

 

Part 5

Other Provisions

 

(a)          Scope
of Agreement.  Any
Specified Transaction (whether now existing or hereafter entered into) between
the parties, the confirmation of which fails by its terms  expressly
to exclude application of this Agreement, shall be governed by and be subject
to this Agreement.  Any such confirmation
shall be a “Confirmation”, and any such Specified Transaction shall be a “Transaction”,
for all purposes of this Agreement.

 

(b)         ISDA Definitions.  Unless otherwise specified in a Confirmation (and subject to Section 5(v) hereof),
each Transaction between the parties shall be subject to the 2000 ISDA
Definitions and the 1993 ISDA Commodity Derivatives Definitions and
the 2000 Supplement thereto, as published by
the International Swaps and Derivatives Association, Inc.  (collectively, the “2000 Definitions”), and
will be governed in all relevant respects by the provisions of the 2000
Definitions, without regard to amendments subsequent to the date thereof.  The provisions of the 2000 Definitions are
incorporated by reference in and shall be deemed a part of this Agreement
except that references in the 2000 Definitions to a “Swap Transaction” shall be
deemed references to a “Transaction” for purposes of this Agreement.

 

(c)          Confirmations.  Section 9(e)(ii) of
the Master Agreement is hereby amended and restated in its entirety to read as
follows:

 

(ii)  The parties
intend that they are legally bound by the terms of each Transaction from the
moment they agree to those in a written Confirmation executed by both parties,
which written Confirmation may be executed and delivered in counterparts
(including by facsimile transmission), which will be sufficient for all
purposes to evidence a binding supplement to this Agreement.  The parties will specify in such written
document that such document constitutes a Confirmation.  Other than
in respect of a particular Transaction to which it relates, under no
circumstance shall a Confirmation amend, or be deemed to amend, the
general terms of this Agreement.

 

(d)         Confirmation Procedures.  For each Transaction that Party A and Party B enter into hereunder,
Party A shall promptly send to Party B a Confirmation setting forth the terms
of such Transaction.  Party B shall
execute and return the Confirmation to Party A, request correction, or send to
Party A its own Confirmation, within five (5) Local Business Days of
receipt and, if the terms contained in Party B’s Confirmation are consistent
with those contained in the Confirmation sent by Party A, the terms of Party A’s
Confirmation shall be deemed to be affirmed and accepted by Party B, absent
manifest error.  If (i) Party B
disputes the terms of Party A’s Confirmation, or (ii) Party B’s
Confirmation, as received by Party A, contains terms which conflict with those
sent by Party A, then the parties shall promptly resolve such terms and, if
upon such resolution correction to the original Confirmation sent by
Party A is required, Party A shall correct and resend its original Confirmation
to Party B.  Upon such resolution, Party
B shall promptly execute and return Party A’s Confirmation.

 

(e)          Accuracy of Specified Information. 
Section 3(d) of the Master Agreement is hereby amended by
adding in the third line thereof after the word “respect” and before the period
the words “or, in the case of audited or unaudited financial statements, a presentation
of the financial condition of the relevant party in accordance with generally
accepted accounting principles, consistently applied.”

 

29

 

(f)            Relationship Between Parties.  The parties agree to amend Section 3 of
this Agreement by the addition of the following provision at the end thereof and
marked as subsection (g).

 

“(g)                           Relationship Between Parties.  Each party will
be deemed to represent to the other party on the date on which it enters into a
Transaction that (absent a written agreement between the parties that expressly
imposes affirmative obligations to the contrary for that Transaction):

 

“(i)                              Non-Reliance.  It is acting
for its own account, and it has made its own independent decisions to enter
into that Transaction and as to whether that Transaction is appropriate or
proper for it based upon its own judgment and upon advice from such advisers as
it has deemed necessary.  It is not
relying on any communication (written or oral) of the other party as investment
advice or as a recommendation to enter into that Transaction; it being understood
that information and explanations related to the terms and conditions of a
Transaction shall not be considered investment advice or a recommendation to
enter into that Transaction.  No
communication (written or oral) received from the other party shall be deemed
to be an assurance or guarantee as to the expected results of that Transaction.

 

“(ii)                          Assessment
and Understanding.  It is capable
of assessing the merits of and understanding (on its own behalf or through
independent professional advice), and understands and accepts, the terms,
conditions and risks of that Transaction. 
It is also capable of assuming, and assumes, the risks of that
Transaction.

 

“(iii)                       Status
of Parties.  The other
party is not acting as a fiduciary for or an adviser to it in respect of that
Transaction.

 

“(iv)                       No
Agency.  It is entering into this
Agreement, including each Transaction, as principal and not as agent of any
person or entity.”

 

(g)         Change of Account.  Section 2(b) of this Agreement is
hereby amended by the addition of the following after the word “delivery” in
the first line thereof:

 

“to
another account in the same legal and tax jurisdiction as the original account”

 

(h)         Set-off.  Without affecting the provisions of this
Agreement requiring the calculation of certain net payment amounts, all
payments under this Agreement will be made without set-off or counterclaim; provided, however, that
upon the designation of any Early Termination Date, in addition to and not in
limitation of any other right or remedy (including any right to set-off,
counterclaim, or otherwise withhold payment) under applicable law:

 

the
Non-defaulting Party or the party that is not the Affected Party (in either
case, “X”) may, without prior notice to any person, set off any sum or
obligation (whether or not arising under this Agreement, whether matured or
unmatured and irrespective of the currency, place of payment or booking office
of the sum or obligation) owed by the Defaulting Party or Affected Party (in
either case, “Y”) to X or to any Affiliate of X, against any sum or obligation
(whether or not arising under this Agreement, whether matured or unmatured and
irrespective of the currency, place of payment or booking office of the sum or
obligation) owed by X or any Affiliate of X to Y, and, for this purpose, may
convert one currency into another.  If
any sum or obligation is unascertained, X may in good faith estimate that sum
or obligation and set off in

 

30

 

respect
of that estimate, subject to X or Y, as the case may be, accounting to the
other party when such sum or obligation is ascertained.

 

Nothing in this Part 5(h) shall
be effective or deemed to create any charge or other security interest.

 

In addition, notwithstanding any
provision to the contrary contained in this Agreement, the Non-defaulting Party
or party that is not the Affected Party (the “Non-affected Party”), as
the case may be, shall not be required to pay to the Defaulting Party or
Affected Party any amount under Section 6(e) until the Non-defaulting
Party or Non-affected Party receives confirmation satisfactory to it in its
reasonable discretion (which may include an opinion of its counsel) that all
other sums and obligations of any kind whatsoever (whether pursuant to Specified
Indebtedness as defined herein or otherwise) of the Defaulting Party or
Affected Party to make any payments to the Non-defaulting Party or Non-affected
Party or any of its Affiliates under this Agreement, or any other contract or
agreement, which are due and payable as of the Early Termination Date hereof
have been fully and finally performed.

 

(i)            Recording of Conversation.  Each
party to this Agreement acknowledges and agrees to the tape recording of
conversations between the parties to this Agreement whether by one or other or
both of the parties and each party hereby consents to such recordings being
used as evidence in Proceedings.

 

(j)            Commodity
Exchange Act.  Each party
represents to the other party on and as of the date hereof and on each date on
which a Transaction is entered into among them that:

 

(i)                       Such party is an “eligible
contract participant” as defined in the U.S. Commodity Exchange Act, as amended
(the “CEA”).

 

(ii)                    Such party is an “eligible
commercial entity” as defined in the CEA.

 

(iii)                 Such party is entering into each Transaction
in connection with its business or a line of business and the terms of this
Agreement and each Transaction have been individually tailored and negotiate.

 

(iv)                The economic terms of this Agreement and each
Transaction have been individually tailored and negotiated by it; it has
received and reviewed financial information concerning the other party and has
had a reasonable opportunity to ask questions of and receive answers and
information from the other party concerning such other party, this Agreement
and such Transaction; the creditworthiness of the other party was a material
consideration in its entering into or determining the terms of this Agreement
and such Transaction; and the transferability of this Agreement and such
Transaction is restricted as provided herein and therein

 

(k)  Waiver of Right to
Trial by Jury.  EACH PARTY
IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY
RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, CLAIM,
COUNTERCLAIM, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY CREDIT SUPPORT DOCUMENT.  THE
PARTIES FURTHER HEREBY IRREVOCABLY WAIVE ANY RIGHT TO SUE FOR, PURSUE, OBTAIN,
OR COLLECT PUNITIVE, CONSEQUENTIAL, INCIDENTAL, INDIRECT OR MULTIPLE DAMAGES
WITH RESPECT TO ANY CLAIM, COUNTERCLAIM OR ACTION ARISING OUT OF OR RELATING TO
THIS AGREEMENT,.  IF AND TO THE EXTENT
ANY PAYMENT REQUIRED TO BE MADE PURSUANT TO THIS AGREEMENT IS DEEMED TO
CONSTITUTE LIQUIDATED DAMAGES, THE PARTIES ACKNOWLEDGE AND AGREE THAT SUCH
DAMAGES ARE DIFFICULT TO OR

 

31

 

IMPOSSIBLE TO DETERMINE AND
THAT SUCH PAYMENT IS INTENDED TO BE A REASONABLE APPROXIMATION OF THE AMOUNT OF
SUCH DAMAGES AND NOT A PENALTY. EACH PARTY (I) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY OR ANY CREDIT SUPPORT
PROVIDER HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD
NOT, IN THE EVENT OF SUCH A SUIT, ACTION OR PROCEEDING, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (II) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND PROVIDE FOR ANY CREDIT SUPPORT
DOCUMENT, AS APPLICABLE BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND
CERTIFICATIONS IN THIS SECTION.

 

(l)   Transfer.  In addition
to transfers under Sections 7(a) and 7(b), for the purpose of any
financing, Party B may, without the consent of Party A, collaterally assign to
or otherwise create a security interest in favor of lenders or their designee(s),
or any other person providing any financing, in or of Party B’s rights and
interests in, under or pursuant to this Agreement and the revenues deriving
from any of the rights or assets of Party B. 
Party A will cooperate with Party B and any lenders; provided that Party A shall not be required to take any
action, or enter into any documents, that Party A in good faith believes
materially increases Party A’s obligations or that materially restricts Party A’s
rights or remedies in a greater manner than the agreements relating to the
Designated Confirmation immediately prior to such refinancing.  Such cooperation shall include entering into
consent agreements and subordination agreements with such lenders concerning
such financing(s) (in forms substantially similar to the Consent to
Assignment and the Subordination Agreement, as applicable).  In addition to the foregoing, Party B may
transfer this Agreement and the Designated Confirmation to a Person that is, at
the time of such transfer, an Acceptable Counterparty.

 

(m)   Additional Covenants of Party B. 
The following additional covenants of Party B shall apply to
this Agreement, a violation of which shall be deemed an Event of Default under
the Agreement as set forth in Part 1(d) above.

 

(i)                                   Amendment
of Financing Agreement. 
As long as any Second Lien Hedge Obligation exists hereunder, Party B
shall not, without the prior consent of Party A (which shall not be
unreasonably withheld) amend, modify, terminate or replace the Financing Agreement,
any Loan Document, the Dexia/GE Forbearance Agreement or any First Lien
Collateral Document, or enter into a new loan facility secured by a lien senior
to or pari passu with Party A on the Junior Collateral, if such amendment,
modification, termination, replacement or new loan facility could reasonably be
expected to result in
any of the following:  (1) a
material release or material impairment of any security constituted by any of
the Second Lien Collateral Documents; (2) a change in the order of
disbursements from Party B’s operating account, such that the payment of any
Settlement Amounts under the Designated Transaction occur after any repayment
of principal, interest or fees under the First Lien Credit Facilities; (3) an
increase in indebtedness secured by a lien on Junior Collateral that is senior
to the liens in favor of Party A (whether under the First Lien Credit
Facilities, new loan facilities or otherwise) above the First Lien Cap; (4)***;

 

32

 

(5) an
event of default materially different than that set forth in Section 8.15
[transfer of interests] of the Financing Agreement (including all related
defined terms).  Party
B will provide Party A with draft copies of all proposed amendments,
modifications, terminations or replacements to the Financing Agreement, the
Loan Documents, the Dexia/GE Forbearance Agreement and the First Lien
Collateral Documents or proposed new loan facilities no later than *** Local
Business Days prior to the execution thereof (and executed versions of any such
agreements as soon as is reasonably practicable following such execution).

 

(ii)                                Sale
or Disposition of Assets. Other than any sale or other
disposition not prohibited by either the Loan Documents or the Collateral
Documents, Party B shall not engage in any sale or other disposition of any
Junior Collateral if such sale or other disposition will, when taken as a whole
with all other assets and property of Party B, have a material adverse effect
on (A) the ability of Party B to perform its obligations to
Party A hereunder, (B) the value and nature of the Junior Collateral
securing Party B’s obligations to Party A hereunder, or (C) Party A’s
rights hereunder, rights and liens under the Second Lien Collateral Documents
or the Subordination Agreement, or rights to the Junior Collateral.

 

(iii)                             Terms
of Loan Documents. Party B agrees that the Loan
Documents shall be structured in a manner such that:

 

(1)                                  if
there is no default under the Loan Documents, the payment of all Settlement
Amounts to Party A shall be made pro rata with
or prior to all payments under the Interest Rate Agreements (other than
Interest Fix Fees thereunder, as such term is defined in the Financing
Agreement) and shall have priority to all interest and principal payments owed
to the Senior Lenders;

 

(2)                                  (x) upon
the occurrence and during the continuation of an Event of Default or
Termination Event in which Party B is an Affected Party or the Defaulting
Party, as applicable, or (y) following the termination of this Agreement
by Party A and until all obligations owing to Party A under this Agreement have
been satisfied (unless the amount of such unsatisfied obligations is less than
the undrawn face amount of any Posted Credit Support having drawing conditions
substantially similar to the Initial LC), no payments are made on or in respect
of any equity interests in Party B (including, without limitation, the Class A
Membership Interests and the Class B Membership Interests) while any
obligations are outstanding to Party A hereunder;

 

(3)                                  (x) upon
the occurrence and during the continuation of an Event of Default or
Termination Event in which Party B is an Affected Party or the Defaulting
Party, as applicable, or (y) following the termination of this Agreement
by Party A and until all obligations owing to Party A under this Agreement have
been satisfied (unless the amount of such unsatisfied obligations is less than
the undrawn face amount of any Posted Credit Support having drawing conditions
substantially similar to the Initial LC),*** entered into after the date on
which *** while any obligations are outstanding to Party A hereunder;

 

33

 

(4)                                 (x) upon
the occurrence and during the continuation of an Event of Default or
Termination Event in which Party B is an Affected Party or the Defaulting
Party, as applicable, or (y) following the termination of this Agreement
by Party A and until all obligations owing to Party A under this Agreement have
been satisfied (unless the amount of such unsatisfied obligations is less than
the undrawn face amount of any Posted Credit Support having drawing conditions
substantially similar to the Initial LC), ***, other than *** in respect of
clause (i) of the definition of “***” under the Dexia/GE Forbearance
Agreement;

 

(5)                                 ***; and

 

(6)                                 ***;

 

provided
that, in case of clauses (4), (5) and (6), nothing shall be
construed as altering any of the provisions of the Depositary Agreement.

 

(iv)                              Security
Interest; Collateral; No Second Lien on Ancillary Agreements.  Notwithstanding anything to the contrary set
forth in this Agreement, upon execution of this Agreement (which shall occur at
the same time as the financial closing of the Financing Agreement (such date
being referred to herein as the “Closing Date”), Party B shall grant,
and cause to be granted, in favor of Party A, a second priority security
interest in and lien on the Junior Collateral (the “Second Lien”),
subject and junior to the security interests and liens created by and granted
under the First Lien Collateral Documents (including any Permitted Liens that
are senior to the Second Lien), which Second Lien shall secure and cover all of
Party B’s obligations (whether matured, contingent or otherwise) under this
Agreement in effect from time to time (the “Second Lien Hedge Obligations”),
and Party B agrees that it shall not modify the terms of the Second Lien and
any Second Lien Collateral Documents without Party A’s consent, and that any
such modification shall be deemed null and void.  Party B shall not grant, or cause to be
granted, or permit to exist any lien on the Junior Collateral in favor of any
counterparty to an Ancillary Agreement.

 

(v)                                 Further
Assurances.  Party B
shall preserve, protect and defend the liens and security interests granted under
the Second Lien Collateral Documents and, from time to time, take such actions
as may be reasonably necessary to maintain under all applicable laws 

 

34

 

the rights, liens and
priorities of Party A with respect to all Junior Collateral, in each case in
such form and at such times as shall be reasonably satisfactory to Party A, provided that:

 

(1)                                 if Party B is
obligated to take actions under this clause (v), and at such time as Party B is
also obligated to take equivalent or analogous action under the Loan Documents,
then Party B shall be required to comply with its obligations under this clause
(v) by no later than the time by which it is required to comply with its
obligations under the Loan Documents with respect to such actions and to keep
Party A informed of its progress in the same manner and to the same extent as
Party B is required to inform the Administrative Agent and the Senior Lenders;
and

 

(2)                                 if Party B is
obligated to take actions under this clause (v), and at such time Party B is
not obligated to take equivalent or analogous action under the Loan Documents,
then Party B shall be required to comply with its obligations under this clause
(v) within 30 days of the request by Party A, provided
that such 30 day cure period will be available only if (x) the collateral
deficiencies can be cured, (y) Party B notifies Party A of the actions
being taken to cure such deficiency; and (z) Party B takes diligent steps
to cure such deficiency.

 

For the avoidance of doubt,
this clause (v) shall not prohibit Party B from incurring or permitting
Permitted Liens.

 

(vi)                              No Liens.  Party B shall not create, incur, assume,
suffer to exist or permit any lien upon or with respect to any of its
properties or the Junior Collateral without the consent of Party A other than (x) the
security interests and liens created by and granted under the First Lien
Collateral Documents, which such liens, together with any Permitted Lien
relating to debt for borrowed money, shall, so long as any Second Lien Hedge
Obligations (whether matured, contingent or otherwise) are outstanding, not
exceed the First Lien Cap, and (y) Permitted Liens (other than Permitted
Liens relating to debt for borrowed money); provided that:

 

(1)                                 if (a) a
lien is imposed on property of Party B in violation of the foregoing provisions
of this clause (vi), (b) such lien is senior to the Loans under the
Financing Agreement, (c) such lien is imposed prior to any foreclosure by
the Administrative Agent on the Class B Membership Interests or the Class A
Membership Interests and (d) the Administrative Agent and the Senior
Lenders have not consented to such lien and have not affirmatively waived
compliance with the lien covenants in the Financing Agreement with respect to
such lien, then no Event of Default will arise under this clause (vi) in
respect of such lien for so long as Party B or the Administrative Agent is
using commercially reasonable efforts to remove such lien; and

 

(2)                                 if (a) a
lien is imposed on property of Party B in violation of the foregoing provisions
of this clause (vi), (b) such lien is senior to the Loans under the
Financing Agreement, and (c) the Administrative Agent, one or more of the
Senior Lenders or one or more of their designees has taken (through foreclosure
or otherwise) the Class B Membership Interests or the Class A
Membership Interests prior to the imposition of such lien, then  an Event of Default will occur

 

35

 

under this clause (vi) in
respect of such lien  if either (I) such
lien is the result of action taken by the Administrative Agent or any one or
more Senior Lenders or (II) the lien secures claims aggregating $*** or
more (unless consented to by Party A in writing).

 

(vii)                           Reports.

 

(a)                                  Within 24 hours
of the end of each day, Party B shall provide Party A with hourly energy
production data at each of the Projects (which data shall be provided either by
granting Party A website access to such data or providing an email to Party A
detailing such data) (such information, “Daily  Noble
Production Data”).

 

(b)                                 Party B shall
provide Party A within ten days of the end of each calendar month (or as soon
as reasonably practicable thereafter) a report, based on statements from the
New York ISO, detailing the total and hourly MWh production for each PTID Node
and an aggregate production report for the Projects (such information, “NY  ISO Data”).  If the New York ISO fails to provide to Party
B the relevant statements by the 15th Local Business Day following
the end of any Calculation Period (each, a “Late
Statement Period”), Party B shall provide Party A a report based on
data from its own production software system for such period (“Monthly Noble Production Data”).  Upon receipt of statements from the New York
ISO relating to any Late Statement Period, Party B shall provide Party A with a
true-up report.  Failure by Party B to
deliver or cause to be delivered the information set forth in this paragraph (b) or
in paragraph (a) above shall not constitute an Event of Default by Party B
hereunder (and Party A shall calculate the Settlement Amounts related to any
Calculation Period in which Daily Noble Production Data is not delivered in
accordance with the “Data Used to
Calculate Floating Price and Settlement Amounts” provision of the Designated
Confirmation).

 

(c)                                  Upon request, Party B shall provide Party A with all information
reasonably necessary to confirm the Hourly PTID Volumes and Total PTID Volumes
referred to in the Designated Confirmation for any applicable Calculation
Period.  In the event that Party A
exercises such right to confirm such volumes and determines that such volumes
for any Calculation Period were incorrectly reported by Party B, then, absent
manifest error, to the extent such incorrect reporting resulted in either a
reduced payment by Party B to Party A (a “Reduced Payment”) or an increased
payment by Party A to Party B (an “Increased Payment”), in each case as
compared to the amounts which would have been payable based on the figures verified
by the audit, Party B shall pay to Party A promptly (and in any event within
two Local Business Days) following demand (and without limitation of the
provisions of Section 2(e) of the Agreement) (i) in the case of
a Reduced Payment, the excess of the corrected amount over the Reduced Payment
together with interest thereon from (and including) the date of payment of such
Reduced Payment to (but excluding) the date of payment hereunder at the federal
funds effective rate in effect on such date of demand plus 300 basis points
(the “Audit Adjustment Rate”) and (ii) in the case of an Increased
Payment, the excess of such Increased Payment over the corrected amount plus
interest thereon from (and including) the date of payment of such Increased
Payment through (but excluding) the date of payment hereunder at the Audit
Adjustment Rate.  To the extent that the
Tracking Account Balance would

 

36

 

have
been adjusted had the volumes described above been correctly reported, the
Tracking Account shall be adjusted based on the figures verified by the audit
(including any increase or decrease thereof relating to interest at the Audit
Adjustment Rate).

 

(d)                                 ***.

 

(viii)                      ***.

 

(ix)                              ***.

 

37

 

(n)   Severability.  If any
provision of this Agreement is held to be illegal, invalid or unenforceable,
such provision shall be fully severable; this Agreement shall be construed and
enforced as if such illegal, invalid or unenforceable provision had never
comprised a part of this Agreement; and the remaining provisions of this
Agreement shall remain in full force and effect and shall not be affected by
the illegal, invalid or unenforceable provision or by its severance from this
Agreement.  Furthermore, in lieu of such
illegal, invalid or unenforceable provision, there shall be added automatically
as a part of this Agreement a provision as similar in its terms to such
illegal, invalid or unenforceable provision as may be possible and be legal,
valid and enforceable.

 

(o)  Confidentiality.  The contents of this
Agreement and all other documents relating to this Agreement, and any
information made available by one party to the other party with respect to this
Agreement is confidential and shall not be disclosed to any third party (nor
shall any public announcement relating to this Agreement be made by either
party), except for such information (i) as may become generally available
to the public, (ii) as may be required or appropriate in response to any
summons, subpoena, or otherwise in connection with any litigation or to comply
with any applicable law, order, regulation, ruling, or accounting disclosure rule or
standard, (iii) as may be obtained from a non-confidential source that
disclosed such information in a manner that did not violate its obligations to
the non-disclosing party in making such disclosure, or (iv) as may be
furnished to the disclosing party’s Affiliates, and to each of such person’s
auditors, attorneys, advisors, actual or potential lenders or actual or
potential equity investors which are required to keep the information that is
disclosed in confidence  With respect to
information provided with respect to a Transaction, this obligation shall
survive for a period of one (1) year following the expiration or
termination of such Transaction.  With
respect to information provided with respect to this Agreement, this obligation
shall survive for a period of one (1) year following the expiration or
termination of this Agreement.

 

(p)  Reference
Market-makers.  The definition
of “Reference Market-makers” in Section 14 of this Agreement is hereby
amended by: (i) deleting “(a)” from the second line thereof; (ii) deleting
in the fourth line thereof after the word “credit” the words “and (b) to
the extent practicable, from among such dealers having an office in the same
city”; (iii) replacing such words with the words “or to enter into
transactions similar in nature to Transactions”; and (iv) adding the
following sentence to the end of the definition: “The leading dealers selected
by a party shall not be parties to this Agreement or Affiliates of a party to
this Agreement.”

 

(q)   Limitation of Rate. 
Notwithstanding any provision to the contrary contained in this
Agreement, in no event shall the Default Rate, Non-default Rate, or Termination
Rate exceed the Highest Lawful Rate.  For
purposes hereof, “Highest Lawful Rate” shall mean, with respect to each party,
the maximum non-usurious interest rate, if any, that at any time or from time
to time may be contracted for, taken, reserved, charged, or received on the
subject indebtedness under the law applicable to such party.

 

(r)  Potential Event of
Default.  Section 2(a)(iii) of
this Agreement is hereby amended to delete the phrase “or Potential Event of
Default”.  Section 3(b) of this
Agreement is hereby amended to delete the phrase “or Potential Event of Default”.  Section 14 of this Agreement is hereby
amended to delete the term “Potential Event of Default” and its corresponding
definition.

 

(s)  Default Rate.  The “Default Rate” in this Agreement means,
in respect of amounts owing to Party A, a rate per annum equal to the “Default
Rate” under and as defined in the Financing Agreement with respect to the
Energy Hedge LC Loan, as such rate is in effect from time to time.

 

38

 

(t)  Notice of Termination
Events and Events of Default.  Party A shall provide to Party B, the Class B
Member, the Class A Member and to the Administrative Agent notice of any
Termination Event or Event of Default in which Party B is the Affected Party or
Defaulting Party, as applicable (and, calculations of Party A’s exposure
related thereto).

 

(u)   ***.

 

(v) 
Definitions:

 

For the purpose of this Agreement, the
following capitalized terms shall have the meanings set forth below.  Capitalized
terms used in this Agreement and not otherwise defined herein shall have the
meanings ascribed such terms in the Financing Agreement, the Credit Support
Annex and the Designated Confirmation, as applicable.  In the event of any inconsistency in the
definitions among the following documents, the definition in relevant document
first listed hereinafter shall govern (i) the Designated Confirmation, (ii) Paragraph
13- Elections and Variables to the ISDA Credit Support Annex, (iii) this
Schedule, (v) the 2000 ISDA Definitions and the 1993 ISDA Commodity
Derivatives Definitions, (v) the
printed forms of the 1992 ISDA Master Agreement and 1994 ISDA Credit Support
Annex (Bilateral Form, New York law) and (vi) the Financing Agreement.

 

“Acceptable Counterparty” means (a) in
connection with a transfer, novation or replacement of this Agreement pursuant
to Section 2(d), 3(e) or 4(b) of the Consent to Assignment (and Part 5(l) of
this Schedule in connection with a foreclosure by the Administrative Agent), an
Acceptable Operator that meets the CS Counterparty Requirements; and (b) in
all other cases, a Person that meets the CS Counterparty Requirements and is
reasonably acceptable to Party A.

 

“Acceptable Operator” means an
entity that is, or is directly or indirectly controlled by an entity that is,
experienced in the ownership or operation of commercial wind farm projects and
which has (or is directly or indirectly controlled by an entity which has) a
Credit Rating of “A-” or better by Standard & Poor’s and “A3” or
better by Moody’s.

 

“Actual Knowledge” by a party
means, with respect to an event or circumstance (1) the actual knowledge
thereof by any officer, director or employee of such party (or any other person
holding an analogous office or capacity); or (2) such party has received
notice thereof from the other party.

 

“Administrative Agent”
has the meaning set forth in the definition of Financing Agreement.

 

“Ancillary Agreement”
has the meaning set forth in the definition of Commodity Hedge Agreement.

 

“Class A Member”
means EFS Noble Holdings, LLC.

 

“Class A Membership
Interests” has the meaning specified in the Dexia/GE Forbearance
Agreement.

 

“Class B Member”
means Noble Environmental Power Hold Co, Prime, LLC, a Delaware limited
liability company.

 

39

 

“Class B Membership
Interests” has the meaning specified in the Dexia/GE Forbearance
Agreement.

 

“Closing Date”
has the meaning specified in Part 5(m)(iv).

 

“Collateral”
has the meaning set forth in the Financing Agreement and, for the avoidance of
doubt, upon the Closing Date shall include any and all security and other
collateral granted and/or pledged to the Administrative Agent acting on behalf
of the Senior Lenders pursuant to the Loan Documents.

 

“Collateral Documents”
means, collectively, the First Lien Collateral Documents and the Second Lien
Collateral Documents.

 

“Commodity Hedge Agreement” means any
agreement (including each confirmation entered into pursuant to any master
agreement) providing for swaps, caps, collars, puts, calls, floors, futures,
options, spots, forwards, power purchase or sale agreements (including Power
Purchase Agreements), fuel purchase or sale agreements, emissions credit
purchase or sales agreements, power transmission agreements, fuel transportation
agreements, fuel storage agreements, netting agreements, commercial or trading
agreements, each with respect to, or involving the purchase, transmission,
distribution, sale, lease or hedge of, any energy, generation capacity or fuel,
or any other energy related commodity or service, price or price indices for
any such commodities or services or any other similar derivative agreements,
and any other similar agreements, entered into in the ordinary course of
business in order to manage fluctuations in the price or availability of any
commodity. ***.

 

“Consent to Assignment”
means the Consent to Assignment of Energy Hedge Agreement, dated as of the date
hereof, among Party A, Party B and the Administrative Agent.

 

“Credit Rating”
means, with respect to any entity, the rating then assigned to such entity’s
unsecured, senior long-term debt obligations.

 

“Credit Support Annex”
means the Credit Support Annex attached hereto as Exhibit III.

 

“CS Counterparty
Requirements” means, with respect to any guarantor, any letter
of credit issuer or any other Person in any other capacity, the requirements
that such Person is reasonably acceptable to Party A based solely on Party A’s
customary credit and internal policies with respect to customer exposure limits
and with Party A’s then-current internal compliance standards, policies and
procedures (i.e., Party A’s

 

40

 

policies relating to suitability, “know-your-customer,”
anti-money laundering rules and regulations, and other similar and related
client identification policies and procedures).

 

“CS/GE Forbearance
Agreement” means the Forbearance Agreement, dated as of the
Closing Date, between Party A and the Class A Member.

 

“Designated Confirmation”
means the Confirmation attached hereto as Exhibit II.

 

“Dexia/GE Forbearance
Agreement” means the Forbearance Agreement, dated as of the
Closing Date, among the Class A Member, Party B and the Administrative
Agent.

 

“Financing Agreement”
means the Financing Agreement, dated as of the Closing Date, among Party B, the
financial institutions from time to time party thereto, Dexia Crédit Local, New
York Branch, as Administrative Agent (the “Administrative Agent”),
as Lead Arranger, Joint Bookrunner, Technical and Documentation Agent, Co-Syndication
Agent, and LC Fronting Bank, and HSH Nordbank AG, New York Branch, as Lead
Arranger, Joint Bookrunner and Co-Syndication Agent (as the same may be
amended, modified or supplemented from time to time in accordance with the
terms of this Agreement).

 

“First Lien Cap”
means:

 

(1)                                On any date
prior to the Term Conversion Date, the sum of:

 

(a)                                  $***; plus

 

(b)                                 $***; plus

 

(c)                                  up to $*** in
advances extended by one or more of the Senior Lenders which are determined by
the Administrative Agent in its reasonable discretion to be protective
advances; plus

 

(d)                                 $***; plus

 

(e)                                  the aggregate
amount of interest that would accrue on the Equity Bridge Loans and the
Construction Loans during the period from such date through the six-month
anniversary thereof (determined using interest rates in effect on such date and
the principal amount of the Equity Bridge Loans and the Construction Loans  expected to be outstanding during such
period); and

 

(2)                                On any date on
and after the Term Conversion Date, the sum of:

 

(a)                                  ***; plus

 

41

 

(b)                                 The lesser of (x) $***
minus the amount referred to in clause (a) on the Term Conversion Date
(after giving effect to Term Conversion) and (y) $***; plus

 

(c)                                  up to $*** in
advances extended by one or more of the Senior Lenders which are determined by
the Administrative Agent in its reasonable discretion to be protective
advances; plus

 

(d)                                 $***; plus

 

(e)                                  the aggregate
amount of interest that would accrue on the Term Loans during the period from
such date through the six-month anniversary thereof (determined using interest
rates in effect on such date and the principal amount of the Term Loans
expected to be outstanding during such period); plus

 

(f)                                    the obligations
of Party B under Interest Rate Agreements.

 

“First Lien Collateral
Documents” means the Collateral Documents (as defined in the
Financing Agreement).

 

“Forbearance Default”
has the meaning specified in the Dexia/GE Forbearance Agreement.

 

“Initial LC”
has the meaning specified in clause (b) of Part 3.

 

“Initial LC Amount”
means $***.

 

“Junior Collateral”
has the meaning specified in the Subordination Agreement.

 

“Loan Documents”
means the Financing Documents.

 

“Permitted Liens”
means (a) “Permitted Liens” as defined in the Financing Agreement and (b) other
liens that, at the date of determination, have not resulted in an Event of
Default as set forth in the proviso to Part 5(m)(vi) of this
Agreement.

 

“Proceeding”
shall mean any action, order, writ, injunction, judgment, determination or
decree or any claim, suit, litigation, proceeding, appeal, arbitration,
mediation, tax audit or governmental investigation of any kind involving any
person, or its business or assets.

 

“PTID Node”
means, for each Project, the interconnect location point assigned to such
Project, as more fully set forth in Appendix 1 attached hereto.

 

“Second Lien”
has the meaning specified in paragraph (m)(iv) of Part 5.

 

“Second Lien Collateral
Documents” means the collateral documents securing the Second
Lien Hedge Obligations.

 

“Second Lien Hedge
Obligations” has the meaning specified in paragraph (m)(iv) of
Part 5.

 

“Senior Lenders”
means the Secured Parties under the Loan Documents.

 

“Senior Loans”
means the loans made by the Senior Lenders under the Financing Agreement.

 

42

 

“Specified Event of Default”
has the meaning specified in paragraph (e) of Part 1.

 

“Subordination Agreement”
means the Subordination Agreement, dated as of the date hereof, between Party A
and the Administrative Agent.

 

43

 

Part 6

ADDITIONAL
PROVISIONS FOR

COMMODITY DERIVATIVE TRANSACTIONS

 

(a)   Amendments to ISDA Commodity Definitions

 

(i)  Section 7.3
of the Commodity Definitions is amended to read as follows:

 

Section 7.3.  Corrections to Published
Prices.  For purposes of
determining the Relevant Price for any day, if the price published or announced
on a given day and used or to be used by the Calculation Agent to determine a
Relevant Price is subsequently corrected and the correction is published or
announced by the person responsible for that publication or announcement within
two years of the date of the original publication or announcement, either party
may notify the other party of (i) that correction and (ii) the amount
(if any) that is payable as a result of that correction.  If, not later that thirty (30) calendar days
after the publication or announcement of that correction, a party gives notice
that an amount is so payable, the party that originally received or retained
such amount will, no later than three (3) Local Business Days after the
effectiveness of that notice, pay, subject to any applicable conditions
precedent, to the other party that amount, together with interest on that
amount at the Non-Default Rate for the period from and including the day on
which a payment originally was (or was not) made to but excluding the day of
payment of the refund or payment resulting from that correction.

 

(ii)                                “Additional
Market Disruption Events” shall not apply.

 

(iii)                             The following “Disruption Fallbacks” specified in Section 7.5(c) of
the Commodity Definitions shall apply, in the following order, except as
otherwise specified in the relevant Confirmation:

 

1.                                      “Fallback
Reference Price” (if the relevant parties have specified an
alternate Commodity Reference Price in the Confirmation);

 

2.                                      “Negotiated Fallback”;

 

3.                                      “Postponement” with three (3) Commodity
Business Days as the Maximum Days of Disruption;

 

4.                                      “Fallback
Reference Dealers”.

 

44

 

IN WITNESS WHEREOF, the parties have executed this
document on the respective dates specified below with effect from the date
specified on the first page of this document.

 

	
   CREDIT
  SUISSE ENERGY LLC

  	
   

  	
  NOBLE ENVIRONMENTAL POWER 2006

  HOLD CO, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
    /s/
  Marisa Scauzillo

  	
   

  	
  By:

  	
    /s/
  Thomas Swank

  
	
  Name:

  	
    Marisa
  Scauzillo

  	
   

  	
  Name:

  	
    Thomas
  Swank

  
	
  Title:

  	
    Authorized
  Signatory

  	
   

  	
  Title:

  	
    Vice
  President

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
    June 20,
  2007

  

 

45

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