Document:

Exhibit 10.41(b)

 

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.

 

	
  (Bilateral
  Form)

  	
   

  	
  (ISDA Agreements Subject to New York Law Only)

  

 

ISDA®

International Swaps and Derivatives Association, Inc.

 

CREDIT SUPPORT ANNEX

 

to the Schedule to the

 

1992 ISDA Master Agreement

 

dated as of June 30, 2008

 

	
  CITIGROUP ENERGY INC.

  	
   

  	
  NOBLE
  ENVIRONMENTAL POWER 2008 HOLD CO, LLC

  
	
   

  	
  between

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  and

  	
   

  
	
  (“Party A”)

  	
   

  	
  (“Party B”)

  

 

This
Annex supplements, forms part of, and is subject to, the above-referenced
Agreement, is part of its Schedule and is a Credit Support Document under this
Agreement with respect to each party.

 

Accordingly,
the parties agree as follows:—

 

Paragraph 1.
Interpretation

 

(a)                             Definitions
and Inconsistency.  Capitalized terms not otherwise defined herein
or elsewhere in this Agreement have the meanings specified pursuant to
Paragraph 12, and all references in this Annex to Paragraphs are
to Paragraphs of this Annex. In the event of any inconsistency between this
Annex and the other provisions of this Schedule, this Annex will prevail, and
in the event of any inconsistency between Paragraph 13 and the
other provisions of this Annex, Paragraph 13 will prevail.

 

(b)                            Secured
Party and Pledgor.  All
references in this Annex to the “Secured Party” will be to either party when
acting in that capacity and all corresponding references to the “Pledgor” will
be to the other party when acting in that capacity; provided, however, that if Other Posted
Support is held by a party to this Annex, all references herein to that party
as the Secured Party with respect to that Other Posted Support will be to that
party as the beneficiary thereof and will not subject that support or that
party as the beneficiary thereof to provisions of law generally relating to
security interests and secured parties.

 

Paragraph 2. Security
Interest

 

Each
party, as the Pledgor, hereby pledges to the other party, as the Secured Party,
as security for its Obligations, and grants to the Secured Party a first
priority continuing security interest in, lien on and right of Set-off against
all Posted Collateral Transferred to or received by the Secured Party
hereunder. Upon the Transfer by the Secured Party to the Pledgor of Posted
Collateral, the security interest and lien granted hereunder on that Posted
Collateral will be released immediately and, to the extent possible, without
any further action by either party.

 

Copyright ©
1994 by International Swaps and Derivatives Association, Inc.

 

 

Paragraph 3
.. Credit Support Obligations

 

(a)                                  Delivery
Amount.  Subject to
Paragraphs 4 and 5, upon a demand made by the Secured Party on or promptly
following a Valuation Date, if the Delivery Amount for that Valuation Date
equals or exceeds the Pledgor’s Minimum Transfer Amount, then the Pledgor will
Transfer to the Secured Party Eligible Credit Support, having a Value as of the
date of Transfer at least equal to the applicable Delivery Amount (rounded
pursuant to Paragraph 13). Unless otherwise specified in Paragraph 13, the “Delivery Amount”  applicable to the Pledgor for any
Valuation Date will equal the amount by which:

 

(i)  the Credit Support
Amount 

 

exceeds

 

(ii)  the Value as of that
Valuation Date of all Posted Credit Support held by the Secured Party.

 

(b)                                 Return
Amount.  Subject to
Paragraphs 4 and 5, upon a demand made by the Pledgor on or promptly following
a Valuation Date, if the Return Amount for that Valuation Date equals or
exceeds the Secured Party’s Minimum Transfer Amount, then the Secured Party
will Transfer to the Pledgor Posted Credit Support specified by the Pledgor in
that demand having a Value as of the date of Transfer as close as practicable
to the applicable Return Amount (rounded pursuant to Paragraph 13). Unless
otherwise specified in Paragraph 13, the  “Return Amount”
applicable to the Secured Party for any Valuation Date will equal the
amount by which:

 

(i)  the Value as of that Valuation
Date of all Posted Credit Support held by the Secured Party 

 

exceeds

 

(ii)  the Credit Support Amount.

 

“Credit Support Amount”  means, unless otherwise specified in Paragraph 13, for any Valuation Date
(i) the Secured Party’s Exposure for that Valuation Date plus (ii) the
aggregate of all Independent Amounts applicable to the Pledgor, if any, minus
(iii) all Independent Amounts applicable to the Secured Party, if any, minus
(iv) the Pledgor’s Threshold; provided,
however, that the
Credit Support Amount will be deemed to be zero whenever the calculation of
Credit Support Amount yields a number less than zero.

 

Paragraph 4.
Conditions Precedent, Transfer Timing, Calculations and Substitutions

 

(a)                                  Conditions
Precedent.  Each Transfer
obligation of the Pledgor under Paragraphs 3 and 5 and of the Secured Party
under Paragraphs 3, 4(d)(ii), 5 and 6(d) is subject to the conditions precedent
that:

 

(i) no Event of Default, Potential Event of Default or Specified Condition
has occurred and is continuing with respect to the other party; and

 

(ii) no Early Termination Date for which any unsatisfied payment
obligations exist has occurred or been designated as the result of an Event of
Default or Specified Condition with respect to the other party.

 

(b)                                 Transfer
Timing.  Subject to
Paragraphs 4(a) and 5 and unless otherwise specified, if a demand for the
Transfer of Eligible Credit Support or Posted Credit Support is made by the
Notification Time, then the relevant Transfer will be made not later than the
close of business on the next Local Business Day; if a demand is made after the
Notification Time, then the relevant Transfer will be made not later than the
close of business on the second Local Business Day thereafter.

 

(c)                                  Calculations.  All calculations of Value and Exposure for purposes
of Paragraphs 3 and 6(d) will be made by the Valuation Agent as of the
Valuation Time. The Valuation Agent will notify each party (or the other party,
if the Valuation Agent is a party) of its calculations not later than the
Notification Time on the Local Business Day following the applicable Valuation
Date (or in the case of Paragraph 6(d), following the date of calculation).

 

2

 

(d)                                 Substitutions.

 

(i) Unless otherwise specified in Paragraph 13, upon notice to the
Secured Party specifying the items of Posted Credit Support to be exchanged,
the Pledgor may, on any Local Business Day, Transfer to the Secured Party
substitute Eligible Credit Support (the “Substitute Credit Support”); and

 

(ii) subject to Paragraph 4(a), the Secured Party will Transfer to the
Pledgor the items of Posted Credit Support specified by the Pledgor in its
notice not later than the Local Business Day following the date on which the
Secured Party receives the Substitute Credit Support, unless otherwise
specified in Paragraph 13 (the “Substitution Date”); provided that the Secured Party will only be obligated to
Transfer Posted Credit Support with a Value as of the date of Transfer of that
Posted Credit Support equal to the Value as of that date of the Substitute
Credit Support.

 

Paragraph 5.
Dispute Resolution

 

If
a party (a “Disputing Party”) disputes (I) the Valuation Agent’s calculation of
a Delivery Amount or a Return Amount or (II) the Value of any Transfer of
Eligible Credit Support or Posted Credit Support, then (1) the Disputing Party
will notify the other party and the Valuation Agent (if the Valuation Agent is
not the other party) not later than the close of business on the Local Business
Day following (X) the date that the demand is made under Paragraph 3 in the
case of (I) above or (Y) the date of Transfer in the
case of (II) above, (2) subject to Paragraph 4(a), the appropriate
party will Transfer the undisputed amount to the other party not later than the
close of business on the Local Business Day following (X) the date that the
demand is made under Paragraph 3 in the case of (I) above or (Y) the date of
Transfer in the case of (II) above, (3) the parties will consult with each
other in an attempt to resolve the dispute and (4) if they fail to resolve the
dispute by the Resolution Time, then:

 

(i) In the case of a dispute involving a Delivery Amount or Return
Amount, unless otherwise specified in Paragraph 13, the Valuation Agent will
recalculate the Exposure and the Value as of the Recalculation Date by:

 

(A) utilizing any calculations of Exposure for the Transactions (or Swap
Transactions) that the parties have agreed are not in dispute;

 

(B) calculating the Exposure for the Transactions (or Swap Transactions)
in dispute by seeking four actual quotations at mid-market from Reference
Market-makers for purposes of calculating Market Quotation, and taking the
arithmetic average of those obtained; provided
that if four quotations are not available for a particular
Transaction (or Swap Transaction), then fewer than four quotations may be used
for that Transaction (or Swap Transaction); and if no quotations are available
for a particular Transaction (or Swap Transaction), then the Valuation Agent’s
original calculations will be used for that Transaction (or Swap Transaction);
and

 

(C) utilizing the procedures specified in Paragraph 13 for calculating
the Value, if disputed, of Posted Credit Support.

 

(ii) In the case of a dispute involving the Value of any
Transfer of Eligible Credit Support or Posted Credit Support, the Valuation
Agent will recalculate the Value as of the date of Transfer pursuant to
Paragraph 13.

 

Following
a recalculation pursuant to this Paragraph, the Valuation Agent will notify
each party (or the other party, if the Valuation Agent is a party) not later
than the Notification Time on the Local Business Day following the Resolution
Time. The appropriate party will, upon demand following that notice by the
Valuation Agent or a resolution pursuant to (3) above and subject to Paragraphs
4(a) and 4(b), make the appropriate Transfer.

 

3

 

Paragraph 6.
Holding and Using Posted Collateral

 

(a)                                  Care
of Posted Collateral.  Without
limiting the Secured Party’s rights under Paragraph 6(c), the Secured Party
will exercise reasonable care to assure the safe custody of all Posted
Collateral to the extent required by, applicable law, and in any event the
Secured Party will be deemed to have exercised reasonable care if it exercises
at least the same degree of care as it would exercise with respect to its own
property. Except as specified in the preceding sentence, the Secured Party will
have no duty with respect to Posted Collateral, including, without limitation,
any duty to collect any Distributions, or enforce or preserve any rights
pertaining thereto.

 

(b)                                 Eligibility
to Hold Posted Collateral; Custodians.

 

(i)  General.  Subject to the
satisfaction of any conditions specified in Paragraph 13 for holding Posted
Collateral, the Secured Party will be entitled to hold Posted Collateral or to
appoint an agent (a “Custodian”) to hold Posted Collateral for the Secured
Party. Upon notice by the Secured Party to the Pledgor of the appointment of a
Custodian, the Pledgor’s obligations to make any Transfer will be discharged by
making the Transfer to that Custodian. The holding of Posted Collateral by a
Custodian will be deemed to be the holding of that Posted Collateral by the Secured
Party for which the Custodian is acting.

 

(ii)  Failure to Satisfy Conditions.  If the Secured Party
or its Custodian fails to satisfy any conditions for holding Posted Collateral,
then upon a demand made by the Pledgor, the Secured Party will, not later than
five Local Business Days after the demand, Transfer or cause its Custodian to
Transfer all Posted Collateral held by it to a Custodian that satisfies those
conditions or to the  Secured
Party if it satisfies those conditions.

 

(iii)  Liability.  The Secured Party
will be liable for the acts or omissions of its Custodian to the same extent
that the Secured Party would be liable hereunder for its own acts or omissions.

 

(c)                                  Use
of Posted Collateral.  Unless
otherwise specified in Paragraph 13 and without limiting the rights and obligations
of the parties under Paragraphs 3, 4(d)(ii), 5, 6(d) and 8, if the Secured
Party is not a Defaulting Party or an Affected Party with respect to a
Specified Condition and no Early Termination Date has occurred or been designated
as the result of an Event of Default or Specified Condition with respect to the
Secured Party, then the Secured Party will, notwithstanding Section 9-207 of
the New York Uniform Commercial Code, have the right to:

 

(i)  sell, pledge, rehypothecate, assign,
invest, use, commingle or otherwise dispose of, or otherwise use in its
business any Posted Collateral it holds, free from any claim or right of any
nature whatsoever of the Pledgor, including any equity or right of redemption
by the Pledgor; and

 

(ii)  register any Posted
Collateral in the name of the Secured Party, its Custodian or a nominee for
either.

 

For
purposes of the obligation to Transfer Eligible Credit Support or Posted Credit
Support pursuant to Paragraphs 3 and 5 and any rights or remedies authorized
under this Agreement, the Secured Party will be deemed to continue to hold all
Posted Collateral and to receive Distributions made thereon, regardless of
whether the Secured Party has exercised any rights with respect to any Posted
Collateral pursuant to (i) or (ii) above.

 

(d)                                 Distributions
and Interest Amount.

 

(i)  Distributions.  Subject to Paragraph 4(a), if the Secured Party receives or
is deemed to receive Distributions on a Local Business Day, it will Transfer to
the Pledgor not later than the following Local Business Day any Distributions
it receives or is deemed to receive to the extent that a Delivery Amount would
not be created or increased by that Transfer, as calculated by the Valuation
Agent (and the date of calculation will be deemed to be a Valuation Date for
this purpose).

 

4

 

(ii) 
Interest Amount. Unless otherwise specified in Paragraph 13 and subject to Paragraph
4(a), in lieu of any interest, dividends or other amounts paid or deemed to
have been paid with respect to Posted Collateral in the form of Cash (all of
which may be retained by the Secured Party), the Secured Party will Transfer to
the Pledgor at the times specified in Paragraph 13 the Interest Amount to the
extent that a Delivery Amount would not be created or increased by that
Transfer, as calculated by the Valuation Agent (and the date of calculation
will be deemed to be a Valuation Date for this purpose). The Interest Amount or
portion thereof not Transferred pursuant to this Paragraph will constitute
Posted Collateral in the form of Cash and will be subject to the security
interest granted under Paragraph 2.

 

Paragraph 7. Events of Default

 

For purposes of Section 5(a)(iii)(1) of this
Agreement, an Event of Default will exist with respect to a party if:

 

(i)  that party fails (or fails to cause its
Custodian) to make, when due, any Transfer of Eligible Collateral, Posted
Collateral or the Interest Amount, as applicable, required to be made by it and
that failure continues for two Local Business Days after notice of that failure
is given to that party;

 

(ii)  that party fails to comply with any
restriction or prohibition specified in this Annex with respect to any of the
rights specified in Paragraph 6(c) and that failure continues for five Local
Business Days after notice of that failure is given to that party; or

 

(iii)  that party fails to comply with or perform any
agreement or obligation other than those specified in Paragraphs 7(i) and 7(ii)
and that failure continues for 30 days after notice of that failure is given to
that party.

 

Paragraph 8. Certain Rights and Remedies

 

(a)                                  Secured
Party’s Rights and Remedies. If at any time (1)
an Event of Default or Specified Condition with respect to the Pledgor has
occurred and is continuing or (2) an Early Termination Date has occurred or
been designated as the result of an Event of Default or Specified Condition
with respect to the Pledgor, then, unless the Pledgor has paid in full all of
its Obligations that are then due, the Secured Party may exercise one or more
of the following rights and remedies:

 

(i) all rights and remedies available to a
secured party under applicable law with respect to Posted Collateral held by
the Secured Party;

 

(ii) any other rights and remedies
available to the Secured Party under the terms of Other Posted Support, if any;

 

(iii) the right to Set-off any amounts
payable by the Pledgor with respect to any Obligations against any Posted
Collateral or the Cash equivalent of any Posted Collateral held by the Secured
Party (or any obligation of the Secured Party to Transfer that Posted
Collateral); and

 

(iv) the right to liquidate any Posted
Collateral held by the Secured Party through one or more public or private
sales or other dispositions with such notice, if any, as may be required under
applicable law, free from any claim or right of any nature whatsoever of the
Pledgor, including any equity or right of redemption by the Pledgor (with the
Secured Party having the right to purchase any or all of the Posted Collateral
to be sold) and to apply the proceeds (or the Cash equivalent thereof) from the
liquidation of the Posted Collateral to any  amounts payable by
the Pledgor with respect to any  Obligations in that order
as the Secured Party may elect.

 

Each party acknowledges and agrees that Posted
Collateral in the form of securities may decline speedily in value and is of a
type customarily sold on a recognized market, and, accordingly, the Pledgor is
not entitled to prior notice of any sale of that Posted Collateral by the
Secured Party, except any notice that is required under applicable law and
cannot be waived.

 

5

 

(b)           Pledgor’s
Rights and Remedies. If at any time an Early
Termination Date has occurred or been designated as the result of an Event of
Default or Specified Condition with respect to the Secured Party, then (except
in the case of an Early Termination Date relating to less than all Transactions
(or Swap Transactions) where the Secured Party has paid in full all of its
obligations that are then due under Section 6(e) of this Agreement):

 

(i) the Pledgor may exercise all rights and
remedies available to a pledgor under applicable law with respect to Posted
Collateral held by the Secured Party;

 

(ii) the Pledgor may exercise any other
rights and remedies available to the Pledgor under the
terms of Other Posted Support, if any;

 

(iii) the Secured Party will be obligated
immediately to Transfer all Posted Collateral and the Interest Amount to the Pledgor,
and

 

(iv) to the extent that Posted Collateral
or the Interest Amount is not so Transferred pursuant to (iii) above, the
Pledgor may:

 

(A)  Set-off
any amounts payable by the Pledgor with respect to any Obligations against any
Posted Collateral or the Cash equivalent of any Posted Collateral held by the
Secured Party (or any obligation of the Secured Party
to Transfer that Posted Collateral); and

 

(B)  to
the extent that the Pledgor does not Set-off under (iv)(A) above, withhold
payment of any remaining amounts payable by the Pledgor with respect to any
Obligations, up to. the Value of any remaining Posted Collateral held by the
Secured Party, until that Posted Collateral is Transferred to the Pledgor.

 

(c)                                  Deficiencies
and Excess Proceeds. The Secured Party will
Transfer to the Pledgor any proceeds and Posted Credit Support remaining after
liquidation, Set-off and/or application under Paragraphs 8(a) and 8(b) after
satisfaction in full of all amounts payable by the Pledgor with respect to any
Obligations; the Pledgor in all events will remain liable for any amounts
remaining unpaid after any liquidation, Set-off and/or application under
Paragraphs 8(a) and 8(b).

 

(d)                                 Final
Returns. When no amounts are or thereafter may
become payable by the Pledgor with respect to any Obligations (except for any
potential liability under Section 2(d) of this Agreement), the Secured Party
will Transfer to the Pledgor all Posted Credit Support and the Interest Amount,
if any.

 

Paragraph 9.
Representations

 

Each party represents to the other party (which
representations will be deemed to be repeated as of each date on which it, as
the Pledgor, Transfers Eligible Collateral) that:

 

(i)  it
has the power to grant a security interest in and lien on any Eligible
Collateral it Transfers as the Pledgor and has taken all necessary actions to
authorize the granting of that security interest and lien;

 

(ii) 
it is the  sole
owner of or otherwise has the right to Transfer all Eligible Collateral it
Transfers to the Secured Party hereunder, free and clear of any security
interest, lien, encumbrance or other restrictions other than the security
interest and lien granted under Paragraph 2;

 

(iii) 
upon the Transfer of any Eligible Collateral to the Secured Party under
the terms of this Annex, the Secured Party will have a valid and perfected
first priority security interest therein (assuming that any central clearing
corporation or any third-party financial intermediary or other entity not
within the control of the Pledgor involved in the Transfer of that Eligible
Collateral gives the notices and takes the action required of it under
applicable law for perfection of that interest); and

 

(iv) 
the performance by it of its obligations under this Annex will not
result in the creation of any security interest, lien or other encumbrance on
any Posted Collateral other than the security interest and lien granted under
Paragraph 2.

 

6

 

Paragraph
10. Expenses

 

(a)                                  General.
Except as otherwise provided in Paragraphs 10(b) and 10(c), each party
will pay its own costs and expenses in connection with performing its
obligations under this Annex and neither party will be liable for any costs and
expenses incurred by the other party in connection herewith.

 

(b)                                 Posted
Credit Support. The Pledger will promptly pay when due all taxes,
assessments or charges of any nature that are imposed with respect to Posted
Credit Support held by the Secured Party upon becoming aware of the same,
regardless of whether any portion of that Posted Credit Support is subsequently
disposed of under Paragraph 6(c), except for those taxes, assessments and
charges that result from the exercise of the Secured Party’s rights under
Paragraph 6(c).

 

(c)                                  Liquidation/Application
of Posted Credit Support. All reasonable costs and expenses incurred by
or on behalf of the Secured Party or the Pledgor in connection with the
liquidation and/or application of any Posted Credit Support under Paragraph 8,
will be payable, on demand and pursuant to the Expenses Section of this
Agreement, by the Defaulting Party or, if there is no Defaulting Party, equally
by the parties.

 

Paragraph
11. Miscellaneous

 

(a)                                  Default
Interest. A Secured Party that fails to make, when due, any
Transfer of Posted Collateral or the Interest Amount will be obligated to pay
the Pledgor (to the extent permitted under applicable law) an amount equal to
interest at the Default Rate multiplied by the Value of the items of property
that were required to be Transferred, from (and including) the date that Posted
Collateral or ,Interest Amount was required to be Transferred to
(but excluding) the date of Transfer of that Posted Collateral or Interest
Amount. This interest will be calculated on the basis of daily compounding and
the actual number of days elapsed.

 

(b)                                 Further
Assurances.  Promptly following a
demand made by a party, the other party will execute, deliver, file and record
any financing statement, specific assignment or other document and take any
other action that may be necessary or desirable and reasonably requested by
that party to create, preserve, perfect or validate any security interest or
lien granted under Paragraph 2, to enable that party to exercise or enforce its
rights under this Annex with respect to Posted Credit Support or an Interest
Amount or to effect or document a release of a security interest on Posted
Collateral or an Interest Amount.

 

(c)                                  Further
Protection.  The Pledgor will
promptly give notice to the Secured Party of, and defend against, any suit,
action, proceeding or lien that involves Posted Credit Support Transferred by
the Pledger or that could adversely affect the security interest and lien
granted by it under Paragraph 2, unless that suit, action, proceeding or lien
results from the exercise of the Secured Party’s rights under Paragraph 6(c).

 

(d)                                 Good
Faith and Commercially Reasonable Manner.  Performance
of all obligations under this Annex, including, but not limited to, all
calculations, valuations and determinations made by either party, will be made
in good faith and in a commercially reasonable manner.

 

(e)                                  Demands
and Notices. All demands and notices made by a party under this
Annex will be made as specified in the Notices Section of this Agreement,
except as otherwise provided in Paragraph 13.

 

(f)                                    Specifications
of Certain Matters. Anything referred to in this Annex as being
specified in Paragraph 13 also may be specified in one or more Confirmations or
other documents and this Annex will be construed accordingly.

 

7

 

Paragraph 12. Definitions

 

As used in this Annex:—

 

“Cash” means the lawful currency
of the United States of America.

 

“Credit Support Amount” has the
meaning specified in Paragraph 3.

 

“Custodian” has the meaning
specified in Paragraphs 6(b)(i) and 13.

 

“Delivery Amount” has the
meaning specified in Paragraph 3(a).

 

“Disputing Party” has the
meaning specified in Paragraph 5.

 

“Distributions” means with
respect to Posted Collateral other than Cash, all principal, interest and other
payments and distributions of cash or other property with respect thereto,
regardless of whether the Secured Party has disposed of that Posted Collateral
under Paragraph 6(c). Distributions will not include any item of property
acquired by the Secured Party upon any disposition or liquidation of Posted
Collateral or, with respect to any Posted Collateral in the form of Cash, any
distributions on that collateral, unless otherwise specified herein.

 

“Eligible  Collateral” means,  with
respect to a party, the items, if any, specified as such for that party in
Paragraph 13.

 

“Eligible Credit Support” means
Eligible Collateral and Other Eligible Support.

 

“Exposure” means for any
Valuation Date or other date for which Exposure is calculated and subject to
Paragraph 5 in the case of a dispute, the amount, if any, that would be payable
to a party that is the Secured Party by the other party (expressed as a
positive number) or by a party that is the Secured Party to the other party
(expressed as a negative number) pursuant to Section 6(e)(ii)(2)(A) of this
Agreement as if all Transactions (or Swap Transactions) were being terminated
as of the relevant Valuation Time; provided that Market Quotation will be determined by the Valuation Agent
using its estimates at mid-market of the amounts that would be paid for
Replacement Transactions (as that term is defined in the definition of “Market
Quotation”).

 

“Independent Amount” means, with
respect to a party, the amount specified as such for that party in Paragraph
13; if no amount is specified, zero.

 

“Interest Amount” means, with
respect to an Interest Period, the aggregate sum of the amounts of interest
calculated for each day in that Interest Period on the principal amount of
Posted Collateral in the form of Cash held by the Secured Party on that day,
determined by the Secured Party for each such day as follows:

 

(x)  the
amount of that Cash on that day; multiplied by

 

(y)  the
Interest Rate in effect for that day; divided by

 

(z)  360.

 

“Interest Period” means the
period from (and including) the last Local Business Day on which an Interest
Amount was Transferred (or, if no Interest Amount has yet been Transferred, the
Local Business Day on which Posted Collateral in the form of Cash was
Transferred to or received by the Secured Party) to (but excluding) the Local
Business Day on which the current Interest Amount is to be Transferred.

 

“Interest Rate” means the rate
specified in Paragraph 13.

 

“Local Business Day”, unless
otherwise specified in Paragraph 13, has the meaning specified in the
Definitions Section of this Agreement, except that references to a payment in
clause (b) thereof will be deemed to include a Transfer under this Annex.

 

8

 

“Minimum Transfer Amount” means,
with respect to a party, the amount specified as such for that party in
Paragraph 13; if no amount is specified, zero.

 

“Notification Time” has the
meaning specified in Paragraph 13.

 

“Obligations” means, with
respect to a party, all present and future obligations of that party under this
Agreement and any additional obligations specified for that party in Paragraph
13.

 

“Other Eligible Support” means, with respect
to a party, the items, if any, specified as such for that party in Paragraph
13.

 

“Other Posted Support” means all
Other Eligible Support Transferred to the Secured Party that remains in effect
for the benefit of that Secured Party.

 

“Pledgor” means either party,
when that party (i) receives a demand for or is required to Transfer Eligible
Credit Support under Paragraph 3(a) or (ii) has Transferred Eligible Credit
Support under Paragraph 3(a).

 

“Posted Collateral” means all
Eligible Collateral, other property, Distributions, and all proceeds thereof
that have been Transferred to or received by the Secured Party under this Annex
and not Transferred to the Pledgor pursuant to Paragraph 3(b), 4(d)(ii) or
6(d)(i) or released by the Secured Party under Paragraph 8. Any Interest Amount
or portion thereof not Transferred pursuant to Paragraph 6(d)(ii) will constitute
Posted Collateral in the form of Cash.

 

“Posted Credit Support” means Posted Collateral and Other Posted
Support.

 

“Recalculation Date” means the Valuation Date that gives rise to
the dispute under Paragraph 5; provided, however,  that if a subsequent Valuation Date occurs under Paragraph 3 prior
to the resolution of the dispute, then the “Recalculation Date” means the most
recent Valuation Date under Paragraph 3.

 

“Resolution Time” has the
meaning specified in Paragraph 13.

 

“Return Amount” has the meaning specified in
Paragraph 3(b).

 

“Secured Party” means either
party, when that party (i) makes a demand for or is entitled to receive
Eligible Credit Support under Paragraph 3(a) or (ii) holds or is deemed to hold
Posted Credit Support.

 

“Specified Condition” means,
with respect to a party, any event specified as such for that party in
Paragraph 13.

 

“Substitute Credit Support” has
the meaning specified in Paragraph 4(d)(i).

 

“Substitution Date” has the
meaning specified in Paragraph 4(d)(ii).

 

“Threshold” means, with respect
to a party, the amount specified as such for that party in Paragraph 13; if no
amount is specified, zero.

 

“Transfer” means, with respect
to any Eligible Credit Support, Posted Credit Support or Interest Amount, and
in accordance with the instructions of the Secured Party, Pledgor or Custodian,
as applicable:

 

	
   

  	
  (i)

  	
  in the case of Cash, payment or delivery by wire
  transfer into one or more bank accounts specified by the recipient;

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  in the case of certificated securities that cannot
  be paid or delivered by book-entry, payment or delivery in appropriate
  physical form to the recipient or its account accompanied by any duly
  executed instruments of transfer, assignments in blank, transfer tax stamps
  and any other documents necessary to constitute a legally valid transfer to
  the recipient;

  
	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  in the case of securities that can be paid or
  delivered by book-entry, the giving of written instructions to the relevant
  depository institution or other entity specified by the recipient, together
  with a written copy thereof to the recipient, sufficient if complied with to
  result in a legally effective transfer of the relevant interest to the
  recipient; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (iv)

  	
  in the case of Other Eligible Support or Other
  Posted Support, as specified in Paragraph 13.

  

 

9

 

“Valuation Agent” has the
meaning specified in. Paragraph 13.

 

“Valuation Date” means each date
specified in or otherwise determined pursuant to Paragraph 13.

 

“Valuation Percentage” means,
for any item of Eligible Collateral, the percentage specified in Paragraph 13.

 

“Valuation Time” has the meaning
specified in Paragraph 13.

 

“Value” means for any Valuation
Date or other date for which Value is calculated and subject to Paragraph 5 in
the case  of a dispute, with respect to:

 

(i) Eligible Collateral or Posted
Collateral that is:

 

(A) 
Cash, the amount thereof; and

 

(B)  a
security, the bid price obtained by the Valuation Agent multiplied by the
applicable Valuation Percentage, if any;

 

(ii) Posted Collateral that consists of
items that are not specified as Eligible Collateral, zero; and

 

(iii) Other Eligible Support and Other
Posted Support, as specified in Paragraph 13.

 

10

 

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 COMMISION.

 

Elections and Variables

to the ISDA Credit Support
Annex

dated as of June 30,
2008

between

 

	
  Citigroup
  Energy Inc.,

  	
   

  	
  and

  	
   

  	
  Noble
  Environmental Power 2008 Hold Co., LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  a corporation organized
  under the laws of the State of Delaware

  	
   

  	
   

  	
   

  	
  a limited liability
  company organized under the laws of the State of
  Delaware

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (“Party
  A”)

  	
   

  	
   

  	
   

  	
  (“Party
  B”)

  

 

 

This ISDA Credit Support Annex is being executed and
is effective and binding on June 27, 2008, but is dated as of June 30,
2008, for cross reference purposes in other documents and agreements that
contemplate the date hereof being June 30, 2008.

 

Paragraph 13.

 

(a)                   Security Interest for “Obligations”.

 

The term “Obligations”
as used in this Annex includes the following additional obligations:

 

With respect to Party A:  None.

 

With respect to Party B:  None.

 

(b)           Credit Support
Obligations.

 

(i)            Delivery Amount, Return Amount
and Credit Support Amount.

 

(A)          “Delivery Amount” has the meaning specified in Paragraph 3(a).

 

(B)           “Return Amount” has the meaning specified in Paragraph 3(b).

 

(C)           “Credit Support Amount” with respect to Party A as a
Pledgor, has the meaning specified in Paragraph 3.

 

(D)           “Credit Support Amount” with respect to Party B in
connection with the Designated Confirmation as a Pledgor, means:

 

(1)           from the Trade Date until the earlier of (i) the date that is
thirty (30) days following the Trade Date or (ii) the Closing Date, $***;

 

10

 

(2)           from and including the date that is thirty (30) days following the
Trade Date, until the Closing Date (if the Closing Date does not occur prior to
the date that is thirty (30) days following the Trade Date), the greater of (a) $***; and (b) Party
A’s Exposure;

 

(3)           from and including the Closing Date until the Term Conversion Date,
the greater of (a) the Initial LC Amount and (b) if Party B elects to
transfer Eligible Credit Support in accordance with Part 1(e) of the
Schedule, Party A’s Exposure;

 

(4)           from
and including the Term-Conversion Date until the Designated Confirmation
Termination Date, if Party B elects to transfer Eligible Credit Support in
accordance with Part 1(e) of the Schedule, Party A’s Exposure; and

 

(5)           on any date when payments are available pursuant to Section 4.1,
priority fourth, clause (c)(ii), of the
Intercreditor Agreement or Section 4.1, priority fifth,
clause (ii), of the Intercreditor Agreement, the full amount of such payments
that are available, not to exceed Party A’s Exposure.

 

(ii)           Eligible Collateral. 
On any date, the following items will qualify as “Eligible
Collateral” for each party:

 

	
   

  	
   

  	
  Valuation

  Percentage

  
	
   

  	
   

  	
   

  
	
  (A) Cash

  	
   

  	
  100%

  
	
   

  	
   

  	
   

  
	
  (B) In respect of a party, such other assets as the other party may,
  from time to time, specify in writing as qualifying as Eligible Collateral
  for the purpose of this Annex (provided that
  any such assets shall cease to qualify as Eligible Collateral if such other
  party subsequently specifies in writing that they shall no longer qualify as Eligible
  Collateral). For the avoidance of doubt there are no other assets which, as
  of the date of this Annex, qualify as Eligible Collateral for either party.

  	
   

  	
  Such percentage as shall, from time to time, be specified by the
  other party as applying to such Eligible Collateral

  

 

11

 

(iii)          Other Eligible Support. 
The following items will qualify as “Other Eligible Support” for the party
specified:

 

	
   

  	
   

  	
  Party A

  	
   

  	
  Party B

  	
   

  	
  Valuation Percentage

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (A) Letters of Credit
  (including, with respect to Party B, the Initial LC)

  	
   

  	
  x

  	
   

  	
  x

  	
   

  	
  The Valuation Percentage
  shall be 100% unless a Letter of Credit Default shall have occurred and be
  continuing, in which case the Valuation Percentage shall be zero

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (B) Acceptable
  Guaranty

  	
   

  	
  x

  	
   

  	
  x

  	
   

  	
  The Valuation Percentage
  shall be 100% unless a Guaranty Default shall have occurred with respect to
  such Acceptable Guaranty, in which case the Valuation Percentage shall be
  zero

  

 

For the avoidance of doubt, the Guarantee of Party
A’s Credit Support Provider, Collateral under the First Lien Collateral
Documents and the Second Lien Collateral Documents shall not constitute Other
Eligible Support.

 

(iv)          Thresholds.

 

(A)          “Independent Amount” means with respect to Party A:
Zero

 

“Independent Amount” means with respect to Party B: Zero

 

(B)       “Threshold”  means with respect to Party A, the amount
shown below appearing opposite the lower of the Credit Ratings assigned by
either S&P or Moody’s to such party; provided
that if a Benchmark Entity is specified in relation to Party A, then the
Threshold with respect to Party A shall be the amount appearing opposite the
lower of the relevant ratings assigned by either S&P or Moody’s to Party A’s
Benchmark Entity; provided, further
that if (i) Party A has no such ratings and no Benchmark Entity has been
specified for Party A, or (ii) an Event of Default with respect to Party A
has occurred and is continuing, then in either case Party A’s Threshold shall
be zero:

 

12

 

	
  S&P

  	
   

  	
  Moody’s

  	
   

  	
  Threshold

  
	
  Rating

  	
   

  	
  Rating

  	
   

  	
  Amount

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A- or higher

  	
   

  	
  A3 or higher

  	
   

  	
  $***or any
  higher amount expressed as the aggregate amount covered by a Guarantee
  provided by Citigroup Inc. to Party B

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BBB+

  	
   

  	
  Baa1

  	
   

  	
  $***

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BBB

  	
   

  	
  Baa2

  	
   

  	
  $***

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BBB-

  	
   

  	
  Baa3

  	
   

  	
  $***

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BB+

  	
   

  	
  Ba1

  	
   

  	
  ***

  

 

 

“Threshold” means with respect to Party
B:  Zero

 

For Party A, the
Benchmark Entity is:  Citigroup Inc.

 

For Party B, the Benchmark Entity is: None

 

(C)    “Minimum Transfer Amount” means with respect to Party A:
$250,000.

“Minimum Transfer Amount” means with respect to Party B:
$250,000.

 

(D)  Rounding. 
The Delivery Amount and the Return Amount will be rounded up and down,
respectively, to the nearest integral multiple of US$50,000.

 

(c)           Return Amount.  Paragraph 3(b) of the Annex is amended
by the addition of the following at the end thereof, “Notwithstanding anything
to the contrary in this Agreement, upon occurrence of the Designated
Confirmation Termination Date with respect to the Transaction, Party A shall
have no obligation to return Posted Support or release any lien granted in
connection herewith until such time as any amount owed to it by Party B with
respect to a negative balance in the Tracking Account has been fully and
finally paid.”.

 

13

 

(d)           Valuation and Timing.

 

(i)            “Valuation Agent” means the Calculation Agent.

 

(ii)           “Valuation Date” means, each Local Business Day.

 

(iii)          “Valuation Time” means the close of business in
the city of the Valuation Agent on the Local Business Day before the Valuation
Date or date of calculation, as applicable, provided that
the calculations of Value and Exposure will be made as of approximately the
same time on the same date.

 

(iv)          “Notification Time” means 10:00 a.m., New York
time, on a Local Business Day.

 

(v)           Notwithstanding Paragraph 4(b), (1) prior
to the Closing Date, demand for Transfer of Eligible Credit Support or Posted
Credit Support may only be made on the Trade Date and once during each week
thereafter, (2) on and after the Closing Date, demand for Transfer of
Eligible Credit Support or Posted Credit Support may only be made on the
Closing Date and once each month thereafter and (3) if such demand is made
by the Notification Time (and accompanied by the related Additional Collateral
Supporting Documentation (which Party B shall keep confidential in accordance
with the requirements of this Agreement)) on the day of such demand, then the
relevant Transfer shall be made by the close of business on the fifth Local
Business Day thereafter and, if any such demand is made after the Notification
Time, the relevant Transfer shall be made by the close of business on the sixth
Local Business Day thereafter.

 

(e)           Conditions Precedent and Secured Party’s Rights and
Remedies.

 

For the purposes of this Annex the following events
will each be a “Specified Condition” for the
party specified (that party being the Affected Party if the event occurs with
respect to that party):

 

	
   

  	
   

  	
  Party A

  	
   

  	
  Party B

  
	
  Illegality:

  	
   

  	
  x

  	
   

  	
  x

  
	
  Credit Event Upon Merger:

  	
   

  	
  x

  	
   

  	
  x

  
	
  Additional Termination Events(s):

  	
   

  	
  x

  	
   

  	
  x

  

 

(f)            Substitution

 

(i)     “Substitution Date” has the
meaning specified in Paragraph 4(d)(ii) of this Annex.

 

(ii)    Paragraph 4(d)(ii) is amended by deleting the phrase “not later
than the Local Business Day” in the second line thereof and replacing it with “promptly”.

 

14

 

(iii)   The following phrase shall be
inserted after the word “Support” and before the period at the end of Paragraph
4(d)(ii):  “and in an amount in excess of
the Secured Party’s Minimum Transfer Amount”.

 

(g)           Dispute Resolution.

 

(i)            “Resolution Time” means 10:00 a.m., New York
time, on the Local Business Day following the date on which the notice of the
dispute is given under Paragraph 5.

 

(ii)           Value. 
For the purpose of Paragraphs 5(i)(C) and 5(ii), on any date, the
Value of Posted Credit Support will be calculated as follows:

 

(A)          with respect to any Cash; the amount thereof; and

 

(B)           with respect to any Eligible Collateral other
than Cash; the fair market value of such Eligible Collateral on such date, as
determined in any reasonable manner chosen by the Valuation Agent, multiplied
by the applicable Valuation Percentage.

 

(iii)          Alternative. 
The provisions of Paragraph 5 will apply; provided
that if the difference (the “Difference”) between (i) the Delivery Amount,
Return Amount, or Value of any Eligible Credit Support or Posted Credit Support
(as the case maybe) calculated by the Valuation Agent and (ii) Delivery
Amount, Return Amount, or Value of any Eligible Credit Support or Posted Credit
Support (as the case maybe) calculated by the Disputing Party shall be less
than $1,000,000, subject to Paragraph 4(a), the appropriate party will Transfer
the undisputed amount plus one half of the Difference to the other party not later
than close of business on the second Local Business Day following the date that
the demand is made under Paragraph 3 by way of resolution of such dispute
without further resort to the provisions of Paragraph 5.

 

(h)           Holding and Using Posted Collateral.

 

(i)            Eligibility to Hold Posted
Collateral; Custodians:

 

Party A or its Custodian will be entitled to hold
Posted Collateral pursuant to Paragraph 6(b); provided that

 

(A)          if Party A is holding Posted Collateral, its
Credit Support Provider shall at all times either have a long term debt or
deposit rating of at least “BBB-” from S&P and at least “Baa3” from Moody’s
(or their respective successors), and if Party A’s Custodian is holding Posted
Collateral, such Custodian shall at all times either have a long term debt or
deposit rating of at least “A-” from S&P and at

 

15

 

least “A3” from Moody’s (or their respective
successors) or have net capital in excess of US$***; and

 

(B)           if it is Party A that is holding Posted Collateral, Party A is not a
Defaulting Party.

 

Initially, the Custodian for Party A is:  Not Applicable.

 

Party B or its Custodian will be entitled to hold
Posted Collateral pursuant to Paragraph 6(b); provided
that

 

(A)          if Party B is holding Posted Collateral,
Party B shall at all times either have a long term debt or deposit rating of at
least “BBB-” from S&P and at least “Baa3” from Moody’s (or their respective
successors) and if Party B’s Custodian is holding Posted Collateral, such
Custodian shall at all times either have a long term debt or deposit rating of
at least “A-” from S&P and at least “A3” from Moody’s (or their respective
successors) or have net capital in excess of US$***; and

 

(B)           if it is Party B that is holding Posted Collateral, Party B is not a
Defaulting Party;

 

Initially, the Custodian for Party B is:  Not Applicable.

 

(ii)           Use of Posted Collateral. 
The provisions of Section 6(c) will
apply to both parties; provided
that in the case of Party A, its  Credit Support Provider has a
long-term unsecured, unsubordinated debt rating of at least “Baa3/BBB-” as
determined by Moody’s and S&P, respectively, and in the case of Party B, its Credit Support Provider  has a long term senior unsecured
unsubordinated debt rating of at least “Baa3/BBB-” as determined by Moody’s and
S&P, respectively.

 

(i)            Distributions and Interest
Amount.

 

(i)            Interest Rate. 
The “Interest Rate” will be the overnight ask rate in effect for such day, as set forth opposite the
caption “O/N LIBOR” under the heading “USD” on Telerate Page 3750 or any
successor page thereto on or about 11:00 a.m., New York time, on such
day and if no successor page is quoted , as agreed by the parties.

 

(ii)           Transfer of Interest Amount.   The Transfer of the Interest Amount will be
made in arrears on
the last Local Business Day of each calendar month and on any Local Business Day on which all
Posted Collateral in the form of Cash is Transferred to the Pledgor pursuant to
Paragraph 3(b).

 

16

 

(iii)                               Alternative to Interest
Amount.  The provisions of Paragraph 6(d)(ii) will
apply and for the purposes of calculating the Interest Amount the amount of
interest calculated for each day of the Interest Period shall be compounded
daily.

 

(j)                                     Additional
Representation(s).  There are no additional
representations by either party.

 

(k)                                  Other Eligible Support and
Other Posted Support.

 

(i)            “Value” means (A) with respect to a Letter of Credit, an amount
equal to the product of the Valuation Percentage thereof and any undrawn
portion of any Letter of Credit maintained by the Pledgor (or its Credit
Support Provider) for the benefit of the Secured Party; and (B) with
respect to an Acceptable Guaranty, an amount equal to the product of the
Valuation Percentage thereof and the available face amount thereof.

 

(ii)           “Transfer” means:

 

With respect to a Letter of Credit:

 

(1) For purposes of Paragraph 3(a), delivery of
the Letter of Credit by the Pledgor or issuer of the Letter of Credit to the
Secured Party at the address of the Secured Party specified in the Notices Section of
this Agreement, or delivery of an executed amendment to such Letter of Credit
in form and substance reasonably satisfactory to the Secured Party (extending
the term or increasing the amount available to the Secured Party thereunder) by
the Pledgor or the issuer of the Letter of Credit to the Secured Party at the
address of the Secured Party specified in the Notices section of this
Agreement; and

 

(2) For purposes of Paragraph 3(b), return of
an outstanding Letter of Credit by the Secured Party to the Pledgor at the
address of the Pledgor specified in the Notices Section of this Agreement,
or delivery of an executed amendment to the Letter of Credit in form and
substance reasonably satisfactory to the Pledgor (reducing the amount available
to the Secured Party thereunder) by the Secured Party or the issuer of the
Letter of Credit to the Pledgor at the Pledgor’s address specified in the
Notices section of this Agreement.  If a
Transfer is to be effected by a reduction in the amount of an outstanding
Letter of Credit previously issued for the benefit of the Secured Party, the
Secured Party shall not unreasonably withhold its consent to a commensurate
reduction in the amount of such Letter of Credit and shall take such action as
is reasonably necessary to effectuate such reduction.

 

With respect to an Acceptable Guaranty:

 

(1) For purposes of Paragraph 3(a), delivery of
the Acceptable Guaranty by the Pledgor or the Acceptable Guarantor to the
Secured Party at the address of the Secured Party specified in the Notices Section of
this Agreement, or delivery of an executed amendment to such Acceptable
Guaranty in form and substance satisfactory to the Secured Party

 

17

 

(extending the term or increasing the amount
available to the Secured Party thereunder) by the Pledgor or the Acceptable
Guarantor to the Secured Party at the address of the Secured Party specified in
the Notices section of this Agreement; and

 

(2)  For purposes of Paragraph 3(b), return of
an outstanding Acceptable Guaranty by the Secured Party to the Pledgor at the
address of the Pledgor specified in the Notices Section of this Agreement,
or delivery of an executed amendment to the Acceptable Guaranty in form and
substance satisfactory to the Pledgor (reducing the amount available to the
Secured Party thereunder) by the Secured Party or the Acceptable Guarantor to
the Pledgor at the Pledgor’s address specified in the Notices section of this
Agreement.

 

(iii)          All Letters of Credit provided
under this Annex shall be subject to the provisions set forth in Schedule I
hereto, which is incorporated herein by reference.

 

(l)            Demands and Notices.  All demands, specifications and notices under
this Annex will be made pursuant to the Notices Section of this Agreement,
save that any demand, specification or notice:

 

(i)            shall
be given to or made at the following addresses:

 

If to Party A:

 

Citigroup
Energy Inc.

	
  Attention:

  	
   

  	
  Commodities
  Operations Group

  
	
  Address:

  	
   

  	
  2800 Post
  Oak Blvd., Suite 500

  
	
   

  	
   

  	
  Houston,
  Texas 77056

  
	
  Telephone
  No.:

  	
   

  	
  (713)
  752-5439

  
	
  Facsimile
  No.

  	
   

  	
  (713)
  481-9931

  
	
   

  	
   

  	
   

  
	
  Email:  citienergymargin@citi.com

  

 

If to Party B:

 

	
  Address:

  	
   

  	
  8 Railroad Avenue

  
	
   

  	
   

  	
  Suite 8, Second Floor

  
	
   

  	
   

  	
  Essex, CT 06426

  
	
   

  	
   

  	
   

  
	
  Telephone:

  	
   

  	
  (860) 581-5010

  
	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
  (860) 767-7198

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Tom Swank/Sidney Chang

  
					

 

18

 

or at such other address as the relevant party may
from time to time designate by giving notice (in accordance with the terms of
this paragraph) to the other party;

 

(ii)           shall (unless otherwise stated in this Annex) be deemed to be effective
at the time such notice is actually received unless such notice is received on
a day which is not a Local Business Day or after the Notification Time on any
Local Business Day in which event such notice shall be deemed to be effective
on the next succeeding Local Business Day.

 

(m)                               Address for Transfers.

 

Party A:  As
set forth above, unless Party A provides Party B with notice of a different
address.

 

Party B:  As
set forth above, unless Party B provides Party A with notice of a different
address.

 

(n)                                 Other Provisions.

 

(i)                                     Amendments to Definitions. 
Paragraph 12
of this Annex is hereby amended by adding or amending, as applicable, the
following defined terms

 

“Acceptable Guarantor” means any
guarantor that satisfies
the Credit Requirements.

 

“Acceptable Guaranty” means an
absolute and unconditional guaranty by an Acceptable Guarantor of the
obligations of Party B in favor of Party A, in form and substance
reasonably acceptable to Party A.

 

“Additional Collateral Supporting
Documentation” means ***.

 

“Credit Rating” shall mean with respect to a party (or its Credit Support Provider,
as the case may be) or entity, on any date of determination, the respective
ratings then assigned to such party’s (or its Credit Support Provider’s, as the
case may be) or entity’s unsecured, senior long-term debt or deposit
obligations (not supported by third party credit enhancement) by S&P, Moody’s
or any other specified rating agency or agencies.

 

“Credit Requirements” shall mean, with respect to any guarantor or any other Person in
any other capacity, the requirements that such Person shall (a) have a
Credit Rating of “A-” or better by Standard & Poor’s and “A3” or
better by Moody’s and (b) have combined capital and surplus of at least $10,000,000,000.

 

“Exposure” means with respect
to Party A, for any Valuation Date or other date for which Exposure is
calculated and subject to Paragraph 5 in the case of a
dispute, the sum of (1) (a) ***percent (***%) times the amount, if
any, that would be payable to Party A by Party B (expressed as a positive
number) or (b) the amount, if any, payable by Party A to Party B
(expressed as a negative number), in either case, pursuant to Section 6(e)(ii)(2)(A) of
this Agreement as if the Transaction was being terminated as of the

 

19

 

relevant Valuation Time; provided that
Market Quotation will be determined by the Valuation Agent using its
estimates at mid-market of the amounts that would be paid for a
Replacement Transaction (as that term is defined in the definition of “Market
Quotation”), and (2) without duplication, (a) in the event the
balance of the Tracking Account is negative on the applicable Valuation Date,
the absolute value of the balance of the Tracking Account, or (b) in the
event the balance of the Tracking Account is positive on the applicable
Valuation Date, negative one (-1) times such balance of the Tracking Account on
such Valuation Date.

 

“Exposure”
means with respect to Party B, for any Valuation Date or other date for which
Exposure is calculated and subject to Paragraph 5 in the
case of a dispute, the sum of (1) the amount, if any, that would be
payable to Party B by Party A (expressed as a positive number) or by Party
B to Party A (expressed as a negative number) pursuant to Section 6(e)(ii)(2)(A) of
this Agreement as if the Transaction was being terminated as of the relevant
Valuation Time; provided that Market Quotation
will be determined by the Valuation Agent using its estimates at
mid-market of the amounts that would be paid for a Replacement Transaction (as
that term is defined in the definition of “Market Quotation”), and (2) without
duplication, (a) in the event the balance of the Tracking Account is
positive on the applicable Valuation Date, the balance of the Tracking Account,
or (b) in the event the balance of the Tracking Account is negative on the
applicable Valuation Date, such negative balance of the Tracking Account on
such Valuation Date.

 

“Guaranty Default”
shall mean the occurrence of any of the following events: (i) the
Acceptable Guarantor of an Acceptable Guaranty shall fail to satisfy the Credit
Requirements; (ii) the Acceptable Guarantor of an Acceptable Guaranty
shall fail to comply with or perform its obligations under such Acceptable
Guaranty; (iii) the Acceptable Guarantor of an Acceptable Guaranty shall
disaffirm, disclaim, repudiate or reject, in whole or in part, or challenge the
validity of, such Acceptable Guaranty; (iv) an Acceptable Guaranty shall
expire or terminate, or shall fail and cease to be in full force and effect at
any time during the term of this Agreement, or fail to be renewed; (v) thirty
(30) or fewer Local Business Days remain prior to the expiration of such
Acceptable Guaranty or (vi) any event analogous to an event specified in Section ***
of this Agreement shall occur with respect to the Acceptable Guarantor of an
Acceptable Guaranty.

 

“Letter of Credit”
means an irrevocable, transferable, standby letter of credit, issued by a
Qualified Institution, in the form set forth in Exhibit A hereto and
subject to the provisions in Schedule I hereto, with such changes to the terms
in that form as the issuing bank may require and as may be acceptable to the
Secured Party in its reasonable discretion, which is delivered under the terms
of this Agreement and shall be held in accordance with the provisions of this
Annex.  Party B shall provide Party A
with no less than five (5) Local Business Days’ notice (or such shorter
applicable period, to the extent that a Letter of Credit is being provided
during a cure period to prevent an Event of

 

20

 

Default under the Agreement) of the relevant contact
information for Party B’s proposed issuing bank, including, without limitation,
the name, address of, and individual contact’s telephone number at, such bank.

 

“Letter of Credit Default”
shall mean with respect to an outstanding Letter of Credit, the occurrence of
any of the following events: (i) the issuer of such Letter of Credit shall
fail to satisfy the requirements set forth in the definition of Qualified
Institution; (ii) the issuer of the Letter of Credit shall fail to comply
with or perform its obligations under such Letter of Credit; (iii) the
issuer of such Letter of Credit shall disaffirm, disclaim, repudiate or reject,
in whole or in part, or challenge the validity of, such Letter of Credit; (iv) such
Letter of Credit shall expire or terminate, or shall fail and cease to be in
full force and effect at any time during the term of this Agreement, or fail to
be renewed; (v) 20 or fewer Local Business Days remain prior to the
expiration of such Letter of Credit or (vi) any event analogous to an
event specified in Section *** of this Agreement shall occur with respect
to the issuer of such Letter of Credit.

 

“Local Business Day”  means: (i) any day on which
commercial banks are open for business (including dealings in foreign exchange
and foreign currency deposits) in New York, and (ii) in relation to a
Transfer of Eligible Collateral, a day on which the clearance system agreed
between the parties for the delivery of Eligible Collateral is open for
acceptance and execution of settlement instructions (or in the case of a
Transfer of Cash or other Eligible Collateral for which delivery is
contemplated by other means, a day on which commercial banks are open for
business (including dealings for foreign exchange and foreign deposits) in New
York and such other places as the parties shall agree);

 

“Moody’s”  means Moody’s Investors Service, Inc.
or any successor.

 

“Qualified Institution”
means a major U.S. commercial bank or a foreign bank with a U.S. branch office
that, at the time of delivery of a Letter of Credit, satisfies the Credit
Requirements.  The parties agree that BNP
Paribas, New York Branch shall be an acceptable Qualified Institution in
respect of the Initial LC.

 

“S&P” means Standard & Poor’s
Ratings Group, a division of The McGraw-Hill Companies Inc., or any successor.

 

“Transaction” means that fixed for floating
financial swap entered into between Party A and Party B as of the date hereof,
and as set forth in the Designated Confirmation.

 

“Trade Date” means
the date that Party A and Party B enter into the Transaction.

 

(ii)                                  No Counterclaim.  A party’s rights to demand and receive the
Transfer of Eligible Collateral as provided hereunder and its rights as Secured
Party against the Posted Collateral or otherwise shall be absolute and subject
to no counterclaim, set off,

 

21

 

deduction or defense in favor of the Pledgor except
as contemplated in Sections 2 and 6 of the Agreement and Paragraph 8 of this
Annex.

 

(iii)          Actions Hereunder.  Either party may take any actions hereunder,
including liquidation rights, through its Custodian or other agent.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT
BLANK.]

 

22

 

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.

 

 

	
  CITIGROUP ENERGY INC.

  	
  NOBLE ENVIRONMENTAL POWER 2008

  HOLD CO., LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Victoria Sharp

  	
   

  	
  By:

  	
  /s/ Walter Howard

  
	
  Name:

  	
  Victoria Sharp

  	
  Name:

  	
  Walter Howard

  
	
  Title:

  	
  Managing Director

  Citigroup Energy Inc.

  	
  Title:

  	
  President

  
	
  Date: 

  	
  Date:

  
					

 

 

Schedule I

to Paragraph 13

of the

ISDA Credit Support Annex

 

LETTER OF CREDIT PROVISIONS

 

Other Eligible
Support provided by the Pledgor (“X”)
for the benefit of the Secured Party (“Y”) in the form of a Letter of
Credit shall be subject to the following provisions.

 

(a)           As one method of providing additional
Posted Credit Support, X may increase the amount of an outstanding Letter of
Credit or establish one or more additional Letters of Credit.

 

(b)           Upon or at any time after the
occurrence or deemed occurrence of either (i) an Early Termination Date or
(ii) or
the termination of a portion of the Designated Transaction pursuant to Part 1(j)(viii) of
the Agreement and, in each case, the failure of X to
make all payments due and owing to Y in accordance with the terms of this
Agreement, Y may, subject to the availability of such amounts for drawing, draw
on any outstanding Letter of Credit in an amount equal to such amounts owing to
it upon presentation to the bank issuing the Letter of Credit of one or more
certificates in accordance with the specific requirements of any such Letter of
Credit.  X shall remain obligated to Y
for any amounts owing to Y and remaining unpaid after the application of any
amounts so drawn by Y.

 

(c)           In all cases, the costs and expenses
(including but not limited to the reasonable costs, expenses, and attorneys’
fees of Y) of establishing, renewing, substituting, cancelling, and increasing
the amount of a Letter of Credit shall be borne by X.Exhibit 10.41(c)

 

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.

 

	
  To:

  	
   

  	
  Noble Environmental Power 2008 Hold Co.,
  LLC (“Noble” or “Party B”)

  
	
   

  	
   

  	
   

  
	
  From:

  	
   

  	
  Citigroup Energy Inc. (“Party A”)

  

 

Dear Sirs:

 

The purpose of this letter agreement (this “Confirmation”) is to confirm the
terms and conditions of the Transaction entered into between us on the Trade
Date referred to below (the “Transaction”).  This Confirmation constitutes a “Confirmation”
as referred to in the Agreement specified below.

 

1.                                       This Confirmation supplements, forms part of, and is subject to, the
1992 ISDA Master Agreement dated as of the date hereof, including the Schedule
and Credit Support Annex (as amended and supplemented from time to time, the “Agreement”), between you and us. All
provisions contained in the Agreement govern this Confirmation except as
expressly modified below.  In the event
of any inconsistency between the Agreement and this Confirmation, this
Confirmation will prevail for the purposes of this Transaction only.  All terms used but not otherwise defined
herein shall have the respective meanings assigned to such terms in the
Agreement.

 

Party A and Noble each represents to the
other that it has entered into this Transaction in reliance upon such tax,
accounting, regulatory, legal, and financial advice as it deems necessary and
not upon any view expressed by the other.

 

2.               The
terms of the particular Transaction to which this Confirmation relates are as
follows:

 

	
  Trade Date:

  	
   

  	
  June 30, 2008

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  This Confirmation is being executed and is
  effective and binding on June 27, 2008, but is dated as of June 30,
  2008, for cross reference purposes in other documents and agreements that
  contemplate the date hereof being June 30, 2008.

  
	
   

  	
   

  	
   

  
	
  Commodity:

  	
   

  	
  As per Commodity Reference Price

  
	
   

  	
   

  	
   

  
	
  Transaction Type:

  	
   

  	
  Fixed-for-Floating financial swap of
  energy, financially settled against the ***price
  as detailed 

  

 

 

	
   

  	
   

  	
  below. This Transaction is a financial
  transaction, and Party A shall have no liability hereunder for any costs
  and/or charges associated with the actual physical delivery, or generation of
  electricity, including, but not limited to, charges and/or costs relating to
  fuel, operations and maintenance, transmission or congestion, or any other
  obligation other than what is specifically provided herein.

  
	
   

  	
   

  	
   

  
	
  Notional Quantity:

  	
   

  	
  The amount of MWhs specified as the “Hedge
  Volume” in Schedule 1 attached hereto, for each Calculation Period.

  
	
   

  	
   

  	
   

  
	
  Effective Date:

  	
   

  	
  HE 0100 EPT beginning April 1, 2009,
  subject to the “Early COD” provision in Section 5 hereof.

  
	
   

  	
   

  	
   

  
	
  Termination Date:

  	
   

  	
  HE 2400 EPT ending on March 31, 2019.

  
	
   

  	
   

  	
   

  
	
  Calculation Periods:

  	
   

  	
  Each calendar month during the term of the
  Transaction, commencing HE 0100 EPT on the first calendar day of such
  calendar month, and ending HE 2400 EPT on the last calendar day of such
  calendar month.

  
	
   

  	
   

  	
   

  
	
  Time Block:

  	
   

  	
  7 x 24 (i.e., around the clock) for each hour of each day
  in each Calculation Period, including Saturdays, Sundays and NERC Holidays.

  
	
   

  	
   

  	
   

  
	
  Settlement
  Amounts:

  	
   

  	
  [Notional
  Quantity * (Fixed Price – Floating Price)] – Tracking Account Adjustment
  Amount

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Where:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tracking Account Adjustment Amount =

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a) If Mismatch is positive, then an
  amount equal to the lesser of (i) the Mismatch or (ii) the
  difference of the Tracking Account Cap and Prior Tracking Account Balance

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b) if Mismatch is zero, then an
  amount equal to zero

  

 

2

 

	
   

  	
   

  	
  (c) if Mismatch is negative, then an
  amount equal to the Mismatch

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Mismatch =***

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Mismatch Volume = ***

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Tracking Account Balance = Prior Tracking
  Account Balance + Tracking Account Adjustment Amount, expressed in dollars,
  and subject to the “Delay in COD” provision and the “No Production”
  provision, each in Section 5 hereof.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Prior Tracking Account Balance = Tracking
  Account Balance for the immediately preceding Calculation Period + Tracking
  Account Interest, expressed in dollars, except that with respect to the first
  Calculation Period, the Prior Tracking Account Balance shall be deemed to be
  zero dollars

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If the
  Settlement Amount is negative, then Noble shall pay Party A the absolute
  value of such amount, subject to the “Delay in COD” provision and the “No
  Production” provision, each in Section 5 hereof.  If the Settlement Amount is positive, then
  Party A shall pay Noble such amount, subject to the “Delay in COD” provision
  and the “No Production” provision, each in Section 5 hereof.

  
	
   

  	
   

  	
   

  
	
  Payment
  Date(s):

  	
   

  	
  Twenty (20)
  Local Business Days following the end of each Calculation Period, subject to
  adjustment in accordance with the Following Business Day Convention.

  
	
   

  	
   

  	
   

  
	
  Calculation Agent:

  	
   

  	
  Party A

  
	
   

  	
   

  	
   

  
	
  Fixed Amounts:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Fixed Price Payer:

  	
   

  	
  Party A

  
	
   

  	
   

  	
   

  
	
  Fixed Price:

  	
   

  	
  USD 63.05 per MWh, subject to the “Early
  COD” provision in Section 5 hereof

  
	
   

  	
   

  	
   

  
	
  Floating Amounts:

  	
   

  	
   

  

 

3

 

	
  Floating Price Payer:

  	
   

  	
  Noble

  
	
   

  	
   

  	
   

  
	
  Commodity Reference Price:

  	
   

  	
  ***.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  If the relevant Commodity Reference Price
  used or to be used by the Calculation Agent to determine the Floating Price
  is not published for a certain hour (the “Unpublished
  Hour”), the alternate Commodity Reference Price for the
  Unpublished Hour shall be the Commodity Reference Price for the hour
  preceding the Unpublished Hour; provided however, if no Commodity Reference
  Price has been published for the hour preceding the Unpublished Hour, then
  the alternate Commodity Reference Price for the Unpublished Hour shall be the
  Commodity Reference Price for the hour closest in time to the Unpublished
  Hour for which a Commodity Reference Price has been published.

  
	
   

  	
   

  	
   

  
	
  Floating Price:

  	
   

  	
  Total Diurnal Revenue, divided by Total
  Diurnal Volume.

  
	
   

  	
   

  	
   

  
	
  Realized Price:

  	
   

  	
  The sum of the Monthly PTID Revenues for
  each PTID Node, divided by the Total PTID
  Volume, provided however that if the Total PTID Volume for any Calculation
  Period is zero, then the Realized Price for that Calculation Period shall be
  equal to the Floating Price.

  
	
   

  	
   

  	
   

  
	
  Specified Price:

  	
   

  	
  For each PTID Node, the Commodity
  Reference Price associated with such PTID Node.

  
	
   

  	
   

  	
   

  
	
  PTID Nodes:

  	
   

  	
  Means, each of the Altona Project
  Node,  Chateaugay Project Node and
  Wethersfield Project Node, each as set forth below.

  
	
   

  	
   

  	
   

  
	
  Monthly Diurnal Revenue:

  	
   

  	
  For each PTID Node, the sum of the Hourly
  Diurnal Volume times the Hourly PTID Price, for all hours in the Calculation
  Period.

  
	
   

  	
   

  	
   

  
	
  Total Diurnal Revenue:

  	
   

  	
  The sum of the Monthly Diurnal Revenue
  for each PTID node.

  

 

4

 

	
  Monthly PTID Revenue:

  	
   

  	
  For each PTID Node, sum of the Hourly
  PTID Volume times the Hourly PTID Price,
  for each hour in the Calculation Period.

  
	
   

  	
   

  	
   

  
	
  Hourly PTID Price:

  	
   

  	
  For each PTID Node, the Specified Price
  for such PTID Node, for each hour in the Calculation Period.

  
	
   

  	
   

  	
   

  
	
  Hourly PTID Volume:

  	
   

  	
  For each PTID Node, the amount of energy
  produced and delivered to the relevant PTID Node for each hour in the
  Calculation Period; provided, however, that Hourly PTID Volume with respect
  to any Project for which COD has not yet occurred, or for which there has
  been no energy produced during such Calculation Period, shall be zero.

  
	
   

  	
   

  	
   

  
	
  Total PTID Volume:

  	
   

  	
  For each Calculation Period, the sum of
  all Hourly PTID Volumes for all PTID Nodes, expressed in MWhs

  
	
   

  	
   

  	
   

  
	
  Hourly Diurnal Volume:

  	
   

  	
  For each PTID Node, the amount of energy
  for the applicable hour at each PTID Node as set forth in the relevant
  diurnal table attached as Schedule 2 hereto.

  
	
   

  	
   

  	
   

  
	
  Total Diurnal Volume:

  	
   

  	
  For each Calculation Period, the sum of
  all Hourly Diurnal Volumes for all PTID Nodes.

  
	
   

  	
   

  	
   

  
	
  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 for the prior day (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”)  If real-time data is readily accessible to
  Party B, Party B shall use reasonable efforts to provide such data to Party A
  on a real-time basis.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)  Party
  B shall provide Party A within ten Local Business 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 Hourly PTID Volume
  for each

  

 

5

 

	
   

  	
   

  	
  PTID Node and
  the Total PTID Volume 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 (or, if such data is unavailable, based on good faith
  estimates) 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
  under the Agreement (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 below).

  
	
   

  	
   

  	
   

  
	
  Data used to Calculate

  Floating Price and

  	
   

  	
   

  
	
  Settlement Amounts:

  	
   

  	
  For any Calculation Period, the
  Calculation Agent shall determine Hourly PTID Volume in accordance with the
  following:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (a)  first, using the Hourly PTID
  Volume set forth in the NY ISO Data.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (b)  if Party B has not provided the
  NY ISO Data by the 15th Local Business Day following such
  Calculation Period (the “Data Deadline”),
  then using the Monthly Noble
  Production Data.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (c)  if Party B has not provided the
  NY ISO Data or the Monthly Noble Production Data by the Data Deadline, then using the Daily Noble Production Data.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  (d)  If Party B has not provided the
  Daily Noble Production Data for a PTID Node for any hour during such Calculation
  Period, then using the

  

 

6

 

	
   

  	
   

  	
  table attached hereto as Schedule 2 (the
  “Diurnal Table”) for any such PTID
  Node and any such hour.

  
	
   

  	
   

  	
   

  
	
  3.      Contact
  Information

  	
   

  	
  Party A

  	
   

  
	
   

  	
   

  	
  Lindsey Nelsen

  	
  (713) 693-6640

  (646) 291-3383

  
	
   

  	
   

  	
  CEIconfirms@citigroup.com

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Noble

  
	
   

  	
   

  	
  Tom Swank

  	
  (860) 581-5105

  
	
   

  	
   

  	
  Sidney Chang

  	
  (860) 581-5060

  
	
   

  	
   

  	
  Fax:

  	
  (860) 767-7198

  
	
   

  	
   

  	
   

  
	
  4.      Account
  Details:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Payments (USD) to
  Party A:

  	
   

  	
   

  
	
   

  	
   

  	
  As notified by Party A

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Payments (USD) to Noble:

  	
   

  	
  Operating
  Account

  
	
   

  	
   

  	
   

  
	
  5.      Additional Terms:

  	
   

  	
   

  

 

Definitions:

 

“Altona
Project” means Noble Altona Windpark, LLC, owner of the
anticipated 97.5 MW Altona facility in NYISO Zone D.

 

“Altona
Project Node” means PTID Node #323606.

 

“Chateaugay
Project” means Noble Chateaugay Windpark I, LLC, owner of the
anticipated 106.5 MW Chateaugay facility in NYISO Zone D.

 

“Chateaugay
Project Node” means the PTID Node number assigned to the
Chateaugay Project by the NYISO.

 

“LIBOR”
means the three month “LIBO Rate” as such term is defined in the Financing
Agreement in effect from time to time as determined by an affiliate of Party A.

 

“Project”
means each of the Altona Project, Chateaugay Project and Wethersfield Project
and “Projects” means all such Projects
together.

 

“Wethersfield
Project” means Noble Wethersfield Windpark, LLC, owner of the
anticipated 126 MW Wethersfield facility in NYISO Zone A.

 

7

 

“Wethersfield
Project Node” means the PTID Node number assigned to the
Wethersfield Project by the NYISO.

 

Tracking
Account:

 

A notional account and not a
physical deposit account (the “Tracking Account”)
will be maintained by the Calculation Agent and used for the purposes set forth
below.  A positive Tracking Account
balance indicates that amounts in the Tracking Account are owed by Party A to
Noble.  A negative Tracking Account
balance indicates that amounts (in absolute value terms) in the Tracking
Account are owed by Noble to Party A. 
Either Party may, in its sole discretion, make payments to the other
Party in excess of those required herein for the purpose of adjusting the
Tracking Account.  Such payments shall,
on a dollar-for-dollar basis, decrease (if payment is made by Party A to
Noble), or increase (if payment is made by Noble to Party A), the Tracking
Account balance immediately upon either Party’s receipt of such payment.  The Calculation Agent shall maintain and make
all calculations and adjustments relating to the notional value of the Tracking
Account balance.

 

Early
COD:

 

If COD occurs more than one
month prior to the Effective Date set forth above, then at the request of Party
B, Party A shall enter into an amendment to this Confirmation drafted by Party
A and otherwise reasonably satisfactory to Party A to change the Effective Date
to the first day of the month following the month during which COD occurs with
the fixed price for the added Calculation Period(s) to be reflective of
market at the time of the amendment, as mutually agreed between the Parties.

 

Delay in
COD:

 

If COD occurs after the
Effective Date, until COD occurs, the party owing the Settlement Amount may, ***.  To the extent applicable, within ***
Local Business Days following COD, Party A shall pay to Party B any excess of
the Tracking Account balance over the Tracking Account Cap.

 

No
Production:

 

Following COD, if no Project
produces energy during a Calculation Period, the party owing the Settlement
Amount may, in lieu of payment of the Settlement Amount, have all or a portion
of such Settlement Amount applied to increase the Tracking Account balance, if
the Settlement Amount is owed by Party A to Party B, or decrease the Tracking
Account balance, if the Settlement Amount is owed by Party B to Party A,
provided that such application does not cause the Tracking Account balance to
be greater than Tracking Account Cap.

 

8

 

Tracking
Account Adjustments:

 

The Tracking Account Balance
shall be adjusted each month by the Tracking Account Adjustment Amount.

 

Tracking Account Interest:

 

Tracking Account balances, positive or
negative, shall accrue interest equal to LIBOR plus *** basis points per annum (or, during any period when the Tracking
Account balance is more negative than an amount equal to -1 times the Energy
Hedge Provider First Lien Cap, then at LIBOR plus
*** basis points), calculated and compounded monthly, with accrued
interest on a negative balance serving to make more negative the Tracking
Account balance, and accrued interest on a positive balance serving to increase
the Tracking Account balance.

 

Tracking Account Cap:

 

There shall be a cap on the positive balance
of the Tracking Account equal to $*** (the “Tracking Account Cap”); provided
that such cap shall not apply to the extent described in “Delay in COD” above.

 

Tracking Account Treatment at Hedge Expiration:

 

Upon the Termination Date:

 

(i)            if
there is a positive balance in the Tracking Account, then Party A shall pay to
Noble such balance (the “Party A Tracking Account Balance”)
within 10 Local Business Days of the Termination Date.  In the event Party A does not pay Noble the
Party A Tracking Account Balance when due, such failure shall constitute an
Event of Default under this Agreement, and Noble shall have the right to
immediately exercise all remedies available to it and all unpaid amounts owing
to Noble shall accrue interest at the Default Rate.

 

(ii)           If
there is a negative balance in the Tracking Account, then Noble shall pay to
Party A the absolute value of such balance (the “Noble
Tracking Account Balance”) either (a) within 10 Local
Business Days of the Termination Date; or (b) upon written notice to Party
A prior to the Termination Date, over time with interest as follows:

 

(1)           Interest
shall accrue on the outstanding Noble Tracking Account Balance at a per annum
rate equal to the overnight LIBOR in effect on the date that is two Local
Business Days prior to the Termination Date plus 1%,
compounded monthly.

 

(2)           Party
B shall pay to Party A quarterly payments due on or before the last day of each
calendar quarter following the Termination Date in an amount equal to the
amount necessary to effect complete repayment of the Noble Tracking Account
Balance plus interest thereon using a mortgage style quarterly amortization
schedule with a final maturity date that is five (5) years following the
Termination Date.  These quarterly
payments shall be applied first to accrued but unpaid interest on the Noble
Tracking Account Balance with the remainder applied to the outstanding amount
thereof.  Party A shall provide a
schedule for these quarterly payments within 10 Local Business Days after the
Termination Date.

 

9

 

(3)           In
addition to such quarterly payments, Noble shall be required to prepay the
outstanding Noble Tracking Account Balance in the amount of funds available for
such prepayment from time to time after the Termination Date in accordance with
Section 5.2(a)(ix) and 5.2(a)(xvi) of the Depositary Agreement (or,
if the Depositary Agreement is no longer in effect, on each date when such
quarterly payments are due, in an amount equal to 50% of any
positive difference between (i) the revenues of Party B received for the
preceding calendar quarter, less (ii) the operating expenses (including
expenses with respect to state and local taxes, but not, for the purpose of
clarity, expenses with respect to principal, interest, federal income taxes,
depreciation or amortization or other noncash items) of Party B for the
preceding calendar quarter), such prepayments to be applied to any payments due
on the outstanding Noble Tracking Account Balance in the inverse order of
maturity.

 

(4)           Noble
may elect to prepay the Noble Tracking Account Balance, in whole or in part, at
any time, with no prepayment penalty.

 

(5)           Notwithstanding
the occurrence of the Termination Date, this Confirmation shall remain in place
(and in full force and effect as part of the Agreement) until the Designated
Confirmation Termination Date.

 

Tracking Account Treatment upon Early Termination Date:

 

For the avoidance of doubt, upon any Early
Termination Date or other termination and liquidation of this Confirmation
prior to the Termination Date, the calculation of the Early Termination Payment
pursuant to Section 6(e) of the Schedule shall account for the
balance, if any, negative or positive, of the Tracking Account.

 

10

 

Please confirm that the foregoing correctly
sets forth the terms of our agreement by signing and returning this
Confirmation.

 

 

	
   

  	
  Yours faithfully,

  
	
   

  	
   

  
	
   

  	
  CITIGROUP ENERGY INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Stephanie Sever

  
	
   

  	
  Name:

  	
  Stephanie Sever

  
	
   

  	
  Title:

  	
  Vice President

  

 

 

Confirmed as of the date first written above:

 

NOBLE ENVIRONMENTAL POWER 2008 HOLD CO., LLC

 

 

	
  By:

  	
  /s/ Walter Howard

  	
   

  
	
  Name:

  	
  Walter Howard

  	
   

  
	
  Title:

  	
  President

  	
   

  

 

 

Schedule 1

 

	
   

  	
   

  	
  Hedge Volume

  	
   

  
	
   

  	
   

  	
  MWh per Calculation Period

  	
   

  
	
  January

  	
   

  	
  ***

  	
   

  
	
  February

  	
   

  	
  ***

  	
   

  
	
  March

  	
   

  	
  ***

  	
   

  
	
  April

  	
   

  	
  ***

  	
   

  
	
  May

  	
   

  	
  ***

  	
   

  
	
  June

  	
   

  	
  ***

  	
   

  
	
  July

  	
   

  	
  ***

  	
   

  
	
  August

  	
   

  	
  ***

  	
   

  
	
  September

  	
   

  	
  ***

  	
   

  
	
  October

  	
   

  	
  ***

  	
   

  
	
  November

  	
   

  	
  ***

  	
   

  
	
  December

  	
   

  	
  ***

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Annual Volume

  	
   

  	
  ***

  	
   

  

 

2

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