Document:

Exhibit 10.18

 

SUBSCRIPTION AGREEMENT

 

OF

 

NOBLE ENVIRONMENTAL POWER, LLC

 

This Subscription Agreement (the “Subscription
Agreement”) dated as of the 29th day of February,
2008 is made by and among Noble Environmental Power, LLC, a Delaware limited
liability company (the “Company”),
and the undersigned (“Investor”).

 

WHEREAS, pursuant to the terms and conditions of this Subscription
Agreement, the Company desires to sell to the Investor and the Investor desires
to purchase from the Company, the number of Incentive Units and Performance
Units, at a price of $0.10 per Incentive Unit and $0.10 per Performance Unit,
set forth opposite the Investor’s name on the attached Schedule A.

 

In consideration of the Company’s issuance of the Incentive Units and
Performance Units in the Company to the Investor, upon the terms and conditions
set forth herein, the Investor hereby agrees and represents as follows:

 

Section 1.  Subscription.

 

(a)       The Investor hereby
subscribes for and agrees to purchase the number of Incentive Units and
Performance Units, at a price of $0.10 per Incentive Unit and $0.10 per
Performance Unit, set forth opposite the Investor’s name on the attached Exhibit A
(the “Membership Interest”).

 

(b)       The Investor shall pay
for the Membership Interest purchased by certified check to the Company on the
date hereof.

 

(c)       The Investor
acknowledges that the Investor will not be deemed a Member with respect to the
Membership Interest subscribed for by the Investor herein until the Company
accepts this Subscription Agreement and that the Company reserves the right to
accept or reject this Subscription Agreement. Upon the Company’s acceptance of
this Subscription Agreement, the Investor will become a Member with respect to
the Membership Interest subscribed for by the Investor herein and shall have
the rights and obligations as contained in the Second Amended and Restated
Limited Liability Company Operating Agreement of the Company dated December 21,
2007, as amended from time to time (the “Operating
Agreement”) and the Amended and Restated
Members’ Agreement of the Company dated December 21, 2007, as amended from
time to time (the “Members’ Agreement”)
with respect to the Membership Interest subscribed for by the Investor herein.

 

(d)       The Investor hereby
adopts, accepts and agrees to be bound by all the terms and conditions of the
Operating Agreement and the Members’ Agreement and to perform all obligations
therein imposed upon a Member with respect to the Membership Interest
subscribed for by the Investor herein.

 

Section 2.  Representations,
Warranties and Covenants.  The
Investor makes the following representations, warranties and covenants with the
intent that the same may be relied

 

 

upon
in determining the Investor’s suitability to become a Member of the Company
with respect to the Membership Interest subscribed for by the Investor herein
and with the understanding that the availability of exemptions from
registration of the offering may depend upon the accuracy of such
representations and warranties. The Investor represents, warrants and covenants
to the Company as follows:

 

(a)       Knowledge of Terms and Conditions. The
Investor and the Investor’s attorneys, accountants and advisors have had a
reasonable opportunity to ask questions of and receive answers from the Company
(or a person or persons acting on behalf of the Company) concerning the terms
and conditions of the offering of the Membership Interest and to obtain
information (to the extent possessed or obtainable by the Company without
unreasonable effort or expense) necessary to evaluate the merits of the
investment. All such questions have been answered to the full satisfaction of
the Investor. The Investor acknowledges that no oral representations have been
made or information furnished to the Investor or the Investor’s attorneys,
accountants or advisors in connection with the offering of the Membership
Interests that is in any way inconsistent with this Subscription Agreement.

 

(b)       Risk Factors. The Investor understands
that an investment in the Company involves significant risks. The Investor has
taken full cognizance of and understands all of the risks related to a
subscription to purchase the Membership Interest.

 

(c)       Not a Registered Offering.  The
Investor understands that, in reliance upon the Investor’s representations,
warranties and covenants, neither the offering nor the sale of the Membership
Interest has been registered under the Securities Act of 1933, as amended (the “Act”) or any applicable state
securities laws, and are being offered and sold pursuant to limited exemptions
provided in Section 3(b) and/or Section 4(2) of the Act and
all applicable state securities laws. The Investor understands that no
governmental agency has recommended or endorsed the Membership Interest or made
any finding or determination relating to the adequacy or accuracy of the
fairness for investment of the Membership Interest. The Investor was not
offered or sold the Membership Interest, directly or indirectly, by means of
any form of general solicitation or general advertising, including, without
limitation, the following: (i) any advertisement, article, notice or other
communication published in any newspaper, magazine or similar medium or
broadcast over television or radio; or (ii) any seminar or meeting whose
attendees had been invited by any general solicitation or general advertising.

 

(d)       Accredited Investor. The Investor is
either an “Accredited Investor” within the meaning of Regulation D
promulgated under the Act or possesses sophistication, knowledge and experience
in financial matters. In making this representation and warranty, the Investor
acknowledges that he has received and carefully reviewed the definition of
Accredited Investor (as used in Regulation D), which is attached hereto as Schedule
B and incorporated herein by this reference.

 

(e)       Sophisticated Investor. The Investor
expressly represents that: (i) the Investor has such knowledge and
experience in financial and business matters in general, and in investments of
the type of an investment in the Company in particular, that the Investor is
capable of evaluating the merits and risks of the prospective investment; (ii) the
Investor’s financial condition is such that the Investor has no need for
liquidity with respect to the

 

2

 

Investor’s
investment in the Company to satisfy any existing or contemplated undertaking
or indebtedness; (iii) the Investor is able to bear the economic risk of
the Investor’s investment in the Company for an indefinite period of time,
including the risk of losing all of the Investor’s investment; (iv) the
Investor has no need for a current cash return with respect to the Investor’s
investment in the Company; and (v) by reason of the Investor’s knowledge
and experience in business and financial matters, the Investor has acquired the
capacity to protect his own interest in investments of this nature and is
capable of evaluating the risks, merits and other facets of this investment.

 

(f)        Purchase for Investment. The
Membership Interest is being purchased solely for the Investor’s own account
for investment purposes only and not for the account of any other person and
not for distribution, assignment or resale to others, and no other person has a
direct or indirect beneficial interest in such Membership Interest.

 

(g)       Restrictions on Transfer. The Investor
understands and agrees that because the offer and sale of the Membership
Interest subscribed for have not been registered under federal or state
securities laws, the Membership Interest acquired may not at any time be sold
or otherwise disposed of by the Investor unless it is registered under the Act
or there is applicable to such sale or other disposition one of the limited
exemptions from registration set forth in the Act, the rules and
regulations of the Securities and Exchange Commission thereunder, and under
applicable state law. The Investor further understands that the Company has no
obligation or present intention to register the Membership Interest or to
permit its sale other than in strict compliance with the Act, the Securities
and Exchange Commission rules and regulations thereunder and under
applicable state law. The Investor understands that he may not be able to sell
or dispose of the Membership Interest and that there will be no public market
for such Membership Interest.

 

(h)       Tax Consequences of Investment. The
Investor understands that the tax consequences of an investment in the
Membership Interest depends upon the individual circumstances of the owner of
such Membership Interest. The Investor further understands that there can be no
assurance that the Internal Revenue Code of 1986, as amended, or the Treasury
Regulations promulgated thereunder will not be amended or applied in such a
manner as to deprive the Investor of some or all of the tax benefits which the
Investor might otherwise expect to receive from investment in the Company.

 

(i)        Residence. The Investor, if an
individual, is a bona fide resident of the state set forth in the address under
his or her name on Schedule A.

 

(j)        Representations, Warranties and Covenants.
All of the representations, warranties and covenants set forth in this Section 2
and as set forth in the Operating Agreement are true, accurate and complete as
of the date hereof and shall be true, accurate and complete as of the date of
the acceptance hereof by the Company. If in any respect the representations,
warranties and covenants shall not be true, complete and accurate prior
thereto, the Investor will give written notice of that fact to the Company,
specifying which representations and warranties are not true and accurate and
the reasons therefor.

 

3

 

Section 3.  Indemnification.  The
Investor shall indemnify, defend and hold harmless the Company and its
officers, employees, managers, members and agents from and against all damages,
losses, liabilities, costs and expenses (including, without limitation,
reasonable attorneys’ fees) which they may incur by reason of the failure of
the Investor to fulfill any of the terms or conditions of this Subscription
Agreement, by reason of any misrepresentation made by the Investor or by reason
of any breach of any representation or warranty made by the Investor herein.

 

Section 4.  Nontransferability.  The
Investor may not transfer or assign this Subscription Agreement or any of the
Investor’s interest herein. Any transfer or assignment of the Membership
Interest acquired pursuant hereto shall be made only in accordance with all
applicable laws and the Operating Agreement and Members’ Agreement.

 

Section 5.  Irrevocability; Binding on
Successors and Assigns.  The Investor may not cancel,
terminate or revoke this Subscription Agreement or any agreement made by it
hereunder. This Subscription Agreement shall survive the bankruptcy or
dissolution of the Investor and shall be binding upon the Investor’s successors
and assigns. The Investor further acknowledges and agrees that the Company may,
in its sole discretion and for any reason whatsoever, reject the Investor’s
subscription to purchase the Membership Interest pursuant to the terms of this
Subscription Agreement.

 

Section 6.  Entire Agreement.  This
Subscription Agreement, the Operating Agreement and the Members’ Agreement,
including all exhibits thereto, constitute the entire agreement among the
parties hereto with respect to the subject matter hereof. This Subscription
Agreement may be amended only by a writing executed by the parties hereto.

 

Section 7.  Governing Law.  This
Subscription Agreement shall be enforced, governed and construed in all
respects in accordance with the laws of the State of Delaware without regard to
conflict of law principle.

 

Section 8.  Counterparts.  This
Subscription Agreement may be executed in any number of original or facsimile
counterparts, and each such counterpart hereof shall be deemed to be an
original instrument, but all such counterparts together shall constitute but
one agreement.

 

Section 9.  Expenses.  Notwithstanding
Section 35 of the Operating Agreement or Section 2.9 of the Members’
Agreement, the Investor shall be responsible for all of his or her expenses
including any fees, disbursements and other charges of counsel, incurred in
connection with the preparation, execution and delivery of this Subscription
Agreement and the consummation of the transactions contemplated hereby.

 

Section 10.  Consent of Spouses.  If
requested by the Company, the Investor shall cause his or her spouse to execute
and deliver a separate consent and agreement substantially in the form attached
as Schedule C hereto (a “Spousal Consent”). The signature of a
spouse on a Spousal Consent shall not be construed as making such spouse a
Member of the Company or a party to this Subscription Agreement, the Members’
Agreement or the Operating Agreement except as may otherwise be set forth in
such consent. Each Member who is an individual will certify his or her marital
status to the Company at the Company’s request.

 

4

 

Section 11.  Further Assurances.  Each party hereto shall
do and perform or cause to be done and performed all such further acts and
things and shall execute and deliver all such other agreements, certificates,
instruments, and documents as any other party hereto reasonably may request in
order to carry out the provisions of this Subscription Agreement and the
consummation of the transactions contemplated hereby.

 

[SIGNATURE PAGE TO FOLLOW]

 

5

 

The undersigned
has executed this Subscription Agreement as of the date first set forth above.

 

	
   

  	
   

  	
  /s/ Christopher Lowe

  
	
   

  	
   

  	
  Christopher Lowe

  

 

SUBSCRIPTION AGREEMENT ACCEPTED AND APPROVED:

 

NOBLE ENVIRONMENTAL POWER, LLC

 

	
  By:

  	
  /s/ Charles C. Hinckley

  	
   

  	
   

  
	
   

  	
  Charles C. Hinckley

  	
   

  	
   

  
	
   

  	
  Chief Executive Officer
  and Manager

  	
   

  	
   

  

 

[SIGNATURE PAGE — SUBSCRIPTION AGREEMENT]

 

 

SCHEDULE A

 

to Subscription Agreement

 

Schedule of Membership Interests
Purchased by the Investor

 

	
  Name 

  	
   

  	
  Number

  of

  Series A

  Incentive

  Units

  	
   

  	
  Capital

  Contribution for

  Series A Incentive

  Units

  	
   

  	
  Number of

  Series A

  Performance

  Units

  	
   

  	
  Capital

  Contribution

  for

  Series A

  Performance

  Units

  	
   

  	
  Total Capital

  Contribution for

  Units Purchased

  	
   

  
	
  Christopher Lowe

  	
   

  	
  10,775

  	
   

  	
  $

  	
  1,077.50

  	
   

  	
  8,725

  	
   

  	
  $

  	
  872.50

  	
   

  	
  $

  	
  1,950.00

  	
   

  
															

 

Address:

 

	
  666 Greenwich Street,
  #521

  
	
  New York, NY 10014

  
	
   

  
	
  Telephone: 212 647 9875

  
	
  Facsimile: 212 647 9875

  

 

A-1

 

SCHEDULE
B

 

Definition of Accredited Investor

 

An accredited investor
means any person who comes within any of the following categories, or who the
Company reasonably believes comes within any of the following categories, at
the time of the sale of the securities to that person:

 

(1)         Any bank as defined in
section 3(a)(2) of the Act, or any savings and loan association or other
institution as defined in section 3(a)(5)(A) of the Act whether acting in
its individual or fiduciary capacity; any broker or dealer registered pursuant
to section 15 of the Securities Exchange Act of 1934; any insurance company as
defined in section 2(13) of the Act; any investment company registered under
the Investment Company Act of 1940 or a business development company as defined
in section 2(a)(48) of that Act; any Small Business Investment Company licensed
by the U.S. Small Business Administration under section 301(c) or (d) of
the Small Business Investment Act of 1958; any plan established and maintained
by a state, its political subdivisions, or any agency or instrumentality of a
state or its political subdivisions, for the benefit of its employees, if such
plan has total assets in excess of $5,000,000; any employee benefit plan within
the meaning of the Employee Retirement Income Security Act of 1974 if the
investment decision is made by a plan fiduciary, as defined in section 3(21) of
such act, which is either a bank, savings and loan association, insurance company,
or registered investment adviser, or if the employee benefit plan has total
assets in excess of $5,000,000 or, if a self-directed plan, with investment
decisions made solely by persons that are accredited investors;

 

(2)         Any private business
development company as defined in section 202(a)(22) of the Investment Advisers
Act of 1940, as amended;

 

(3)         Any organization
described in section 501(c)(3) of the Internal Revenue Code, corporation,
Massachusetts or similar business trust, or partnership, not formed for the
specific purpose of acquiring the Membership Interest offered, with total
assets in excess of $5,000,000;

 

(4)         Any director, executive
officer, or general partner of the Company, or any director, executive officer,
or general partner of a general partner of the Company;

 

(5)         Any natural person whose
individual net worth, or joint net worth with that person’s spouse, at the time
of his purchase exceeds $1,000,000;

 

(6)         Any natural person who
had an individual income in excess of $200,000 in each of the two most recent
years or joint income with that person’s spouse in excess of $300,000 in each
of those years and has a reasonable expectation of reaching the same income
level in the current year;

 

 

(7)         Any trust, with total
assets in excess of $5,000,000, not formed for the specific purpose of
acquiring the Membership Interest offered, whose purchase is directed by a
sophisticated person as described in 17 C.F.R. § 230.506(b)(2)(ii) and

 

(8)         Any entity in which all
of the equity owners are accredited investors.

 

 

SCHEDULE
C

 

SPOUSAL CONSENT

 

(attached
hereto)

 

 

SPOUSAL CONSENT

 

Dated February 24, 2008

 

Reference is hereby made to (a) the Amended and Restated Members’
Agreement, dated December 21, 2007 (as amended from time to time, the “Members’
Agreement”), among Noble Environmental Power, LLC, a Delaware limited
liability company (the “Company”) and the Unitholders identified therein
and (b) the Second Amended and Restated Limited Liability Company
Operating Agreement, dated December 21, 2007, among the Company and the
parties signatory thereto (as amended from time to time, the “Operating
Agreement”). Capitalized terms used herein but not otherwise defined shall
have the meaning ascribed thereto in the Members’ Agreement.

 

This Spousal Consent is being delivered pursuant to Section 4.10
of the Member’s Agreement and Section 31 of the Operating Agreement,
copies of which have been made available to the undersigned (“Spouse”).
Spouse, as the spouse of Christopher Lowe (the “Relevant Member”),
consents to all of the provisions of the Operating Agreement and the Members’
Agreement and to the extent that Spouse may lawfully do so, Spouse confirms
that the Relevant Member may act alone with respect to all matters in
connection with the Operating Agreement and the Members’ Agreement. Spouse also
confirms that the Relevant Member may enter into agreements pursuant to the
Operating Agreement and the Members’ Agreement and consent to and execute
amendments thereof, without further signature or consent of, or notice to,
Spouse. Spouse further agrees that he /she will not take any action to oppose
or otherwise hinder the operation of the provisions of the Operating Agreement
and the Members’ Agreement.

 

To the extent of any property interest that Spouse may have in the
Units of the Company held by the Relevant Member, Spouse consents to be bound
by the terms of the Operating Agreement and the Members’ Agreement, including,
without limitation, restrictions on transfer and obligations to sell set forth
therein.

 

	
   

  	
   

  	
  /s/ Bonnie S. Datt

  
	
   

  	
   

  	
  Name of Spouse:Exhibit 10.19

 

UNIT

SUBSCRIPTION AGREEMENT

 

March 7 , 2008

 

The undersigned, JPMP NOBLE WIND ENERGY,
LLC (the “Subscriber”), hereby agrees that it has subscribed
for and purchased from NOBLE ENVIRONMENTAL POWER,
LLC, a Delaware limited liability company (the “Company”),
and the Company hereby agrees that it has sold and issued to the Subscriber,
the number of Series B Preferred Units (the “Preferred Units”) of
the Company set forth on the Subscriber’s signature page hereto (such Preferred
Units to be issued, the “Purchased Units”) in consideration of the
payment to the Company of $100.00 per Purchased Unit (the “Subscription
Price”), the sufficiency of which is hereby acknowledged.  The parties agree that the Purchased Units
were issued pursuant and subject to the terms of the Second Amended and
Restated Limited Liability Company Operating Agreement (the “Operating
Agreement”) of the Company, as amended from time to time.

 

Each of the Subscriber and the Company acknowledge that: (i) on February 6,
2008, the Subscriber deposited $15,000,000 of the Subscription Price into an
account identified to the Subscriber by the Company (the “Deposit Account”)
by wire transfer; (ii) on February 22, 2008, the Subscriber deposited
$10,000,000 of the Subscription Price into the Deposit Account by wire
transfer; and (iii) on February 29, 2008, the Subscriber deposited
$15,000,000 of the Subscription Price into the Deposit Account by wire transfer.  In each instance in the previous sentence
when the portion of the Subscription Price was received in the Deposit Account,
the Company immediately issued the Purchased Units to the Subscriber without
further action.

 

The
Company represents and warrants that the Purchased Units, when issued, were
duly authorized, validly issued and fully paid.

 

The Subscriber
represents and warrants to the Company that the representations and warranties of
the Subscriber set forth in Section 8 of the Operating Agreement of
the Company were true and correct in all material respects on and as of the
date that the Purchased Units were issued to the Subscriber as if made by the
Subscriber on and as of such date (except to the extent expressly made as of an
earlier date, in which case such representations shall be true and correct in
all material respects as of such earlier date, and except to the extent such
representations and warranties are qualified by materiality, in which case such
representations shall have been be true and correct).

 

As
evidence of the restrictions on transfer, the following legends will be placed
on the certificates, if any, evidencing the Purchased Units:

 

“THE SECURITIES
REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT AND HAVE NOT
BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS AMENDED, OR
ANY STATE SECURITIES OR BLUE SKY LAWS. 
THESE SECURITIES MAY NOT BE SOLD OR TRANSFERRED IN THE ABSENCE OF
SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT OR LAWS.”

 

[SIGNATURE
PAGE FOLLOWS]

 

 

IN
WITNESS WHEREOF, the undersigned have executed this Unit
Subscription Agreement as of the date first written above.

 

	
   

  	
  JPMP NOBLE WIND ENERGY, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher Behrens

  
	
   

  	
   

  	
  Name:

  	
  Christopher Behrens

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  
	
   

  	
   

  
	
   

  	
  NOBLE ENVIRONMENTAL POWER, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher Lowe

  
	
   

  	
   

  	
  Name:

  	
  Christopher Lowe

  
	
   

  	
   

  	
  Title:

  	
  Chief Financial Officer

  

 

 

Number of Series B Preferred Units subscribed for on February 6,
2008: 150,000

 

Number of Series B Preferred Units subscribed for on February 22,
2008: 100,000

 

Number of Series B Preferred Units subscribed for on February 29,
2008: 150,000

 

 

[Noble – March JPMP Subscription Agreement to
memorialize February contributions and issuances]

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