Document:

exv10w1

Exhibit 10.1

 

TERM LOAN AGREEMENT

Dated as of May 31, 2011

by and among

SOLAR TAX PARTNERS 2, LLC

1115 Orlando Avenue

Roseville, CA 95661-5247

as Borrower

and

EAST WEST BANK

Loan Servicing Department

9300 Flair Drive, 6th Floor

El Monte, CA 91731

as Lender

$4,500,000 Term Loan

 

SACRAMENTO COUNTY (AEROJET 2) SOLAR PROJECT

 

 

TABLE OF CONTENTS

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page	 
	ARTICLE I.
	DEFINED TERMS; RULES OF CONSTRUCTION
	 	1.1	 	 	Defined Terms

	 	 	1	 
	 	1.2	 	 	Rules of Construction

	 	 	1	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE II.
	CREDIT
	 	2.1	 	 	Commitment

	 	 	2	 
	 	2.2	 	 	Repayment of Term Loan

	 	 	2	 
	 	2.3	 	 	Prepayment of Term Loan

	 	 	2	 
	 	2.4	 	 	Application of Payments

	 	 	3	 
	 	2.5	 	 	Fees

	 	 	3	 
	 	2.6	 	 	Interest

	 	 	3	 
	 	2.7	 	 	Increased Costs

	 	 	3	 
	 	2.8	 	 	Taxes

	 	 	4	 
	 	2.9	 	 	Payments Generally

	 	 	4	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE III.
	REPRESENTATIONS AND WARRANTIES
	 	3.1	 	 	Organization; Equity Interests

	 	 	5	 
	 	3.2	 	 	Assumed Business Names

	 	 	5	 
	 	3.3	 	 	Authorization

	 	 	5	 
	 	3.4	 	 	Legal Effect

	 	 	5	 
	 	3.5	 	 	Financial Information

	 	 	5	 
	 	3.6	 	 	Litigation and Claims

	 	 	6	 
	 	3.7	 	 	Disclosure and Projections

	 	 	6	 
	 	3.8	 	 	Major Project Contracts

	 	 	6	 
	 	3.9	 	 	No Material Adverse Effect

	 	 	6	 
	 	3.10	 	 	Federal Reserve and Other Regulations No Brokers

	 	 	6	 
	 	3.11	 	 	Taxes

	 	 	7	 
	 	3.12	 	 	Compliance with Laws

	 	 	7	 
	 	3.13	 	 	Employee Matters

	 	 	8	 
	 	3.14	 	 	Solvency

	 	 	8	 
	 	3.15	 	 	Hazardous Materials

	 	 	8	 
	 	3.16	 	 	Single Purpose; Separateness

	 	 	8	 
	 	3.17	 	 	No Default

	 	 	9	 
	 	3.18	 	 	Collateral

	 	 	9	 
	 	3.19	 	 	Permits

	 	 	9	 
	 	3.20	 	 	Governmental Approvals

	 	 	9	 
	 	3.21	 	 	Title to Properties and Assets

	 	 	10	 
	 	3.22	 	 	Sufficiency of Assets

	 	 	10	 
	 	3.23	 	 	Utility Services

	 	 	10	 
	 	3.24	 	 	Intellectual Property

	 	 	10	 
	 	3.25	 	 	Flood Zones

	 	 	10	 
	 	3.26	 	 	Affiliate Transactions

	 	 	11	 
	 	3.27	 	 	Regulatory Matters

	 	 	11	 
	 	3.28	 	 	Anti-Terrorism Laws; Foreign Corrupt Practices Act

	 	 	11	 
	 	3.29	 	 	Cash Grant

	 	 	11	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE IV.
	CONDITIONS TO CLOSING
	 	4.1	 	 	Closing Conditions

	 	 	11	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE V.
	AFFIRMATIVE COVENANTS
	 	5.1	 	 	Use of Proceeds

	 	 	15	 
	 	5.2	 	 	Warranty of Title

	 	 	15	 
	 	5.3	 	 	Notices

	 	 	15	 
	 	5.4	 	 	Financial Statements; Financial Records

	 	 	15	 
	 	5.5	 	 	Annual Budgets; Annual Operating Reports; Compliance Certificates

	 	 	16	 
	 	5.6	 	 	Maintenance of Existence; Properties; Inspections

	 	 	16	 
	 	5.7	 	 	Separate Existence

	 	 	17	 
	 	5.8	 	 	Insurance

	 	 	17	 
	 	5.9	 	 	Taxes, Charges and Liens

	 	 	17	 
	 	5.10	 	 	Performance; Major Project Contracts

	 	 	18	 
	 	5.11	 	 	Operations

	 	 	18	 
	 	5.12	 	 	Compliance with Governmental Requirements; Necessary Project Permits

	 	 	18	 
	 	5.13	 	 	Environmental Compliance and Reports; Environmental Studies

	 	 	18	 
	 	5.14	 	 	U.S.A. Patriot Act

	 	 	19	 

ii

 

	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	Page	 
	 	5.15	 	 	Additional Assurances

	 	 	19	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VI.
	NEGATIVE COVENANTS
	 	6.1	 	 	Indebtedness and Contingent Liabilities

	 	 	19	 
	 	6.2	 	 	Liens

	 	 	19	 
	 	6.3	 	 	Restricted Payments

	 	 	19	 
	 	6.4	 	 	Sale of Assets

	 	 	19	 
	 	6.5	 	 	Business Activities

	 	 	19	 
	 	6.6	 	 	No Liquidation, Merger or Consolidation

	 	 	19	 
	 	6.7	 	 	Lease Transactions

	 	 	20	 
	 	6.8	 	 	Investments

	 	 	20	 
	 	6.9	 	 	Transactions with Affiliates

	 	 	20	 
	 	6.10	 	 	Regulations

	 	 	20	 
	 	6.11	 	 	Fiscal Year, Name, Location and EIN

	 	 	20	 
	 	6.12	 	 	Accounts

	 	 	20	 
	 	6.13	 	 	Hazardous Materials

	 	 	20	 
	 	6.14	 	 	Hedging Agreements

	 	 	20	 
	 	6.15	 	 	Amendments to and Termination of Certain Documents

	 	 	21	 
	 	6.16	 	 	Additional Major Project Contracts

	 	 	21	 
	 	6.17	 	 	O&M Contract

	 	 	21	 
	 	6.18	 	 	Capital Expenditures; Expansion

	 	 	21	 
	 	6.19	 	 	No Recapture Event

	 	 	21	 
	 	6.20	 	 	Tax Credits

	 	 	22	 
	 	6.21	 	 	Energy Regulatory Status

	 	 	22	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VII.
	EVENTS OF DEFAULT
	 	7.1	 	 	Events of Default

	 	 	22	 
	 	7.2	 	 	Remedies; Application of Proceeds

	 	 	25	 
	 	 	 	 	 
	 	 	 	 
	ARTICLE VIII.
	MISCELLANEOUS
	 	8.1	 	 	Amendments

	 	 	26	 
	 	8.2	 	 	Expenses; Indemnity

	 	 	26	 
	 	8.3	 	 	Right of Set-Off

	 	 	27	 
	 	8.4	 	 	Entire Agreement

	 	 	27	 
	 	8.5	 	 	Counterparts

	 	 	28	 
	 	8.6	 	 	Caption Headings

	 	 	28	 
	 	8.7	 	 	Consent to Loan Participation

	 	 	28	 
	 	8.8	 	 	Governing Law; Choice of Venue

	 	 	28	 
	 	8.9	 	 	Waiver of Jury Trial

	 	 	28	 
	 	8.10	 	 	No Waiver by Lender

	 	 	29	 
	 	8.11	 	 	Notices

	 	 	29	 
	 	8.12	 	 	Severability

	 	 	29	 
	 	8.13	 	 	Successors and Assigns

	 	 	29	 
	 	8.14	 	 	Survival of Representations, Warranties and Covenants

	 	 	30	 
	 	8.15	 	 	Interest Rate Limitation

	 	 	30	 
	 	8.16	 	 	Time is of the Essence

	 	 	30	 
	 	8.17	 	 	U.S.A. Patriot Act

	 	 	30	 

iii

 

Annex1 — Defined Terms

Schedules

Schedule 2.2 — Schedule of Payments

Schedule 3.6 — Litigation and Claims

Schedule 3.8 — Major Project Contracts

Schedule 3.15 — Hazardous Materials

Schedule 3.18 — Collateral Filings

Schedule 3.19 — Permits

Schedule 3.20 — Governmental Approvals

Schedule 3.22 — Sufficiency of Assets

Schedule 3.26 — Affiliate Transactions

Schedule 3.27 — Regulatory Matters

Schedule 5.8 — Insurance

Exhibits

EXHIBIT A — Form of Note

iv

 

          This TERM LOAN AGREEMENT, dated May 31, 2011 (this “Agreement”), is made and
executed by and among SOLAR TAX PARTNERS 2, LLC, a California limited liability company
(“Borrower”), and East West Bank (“Lender”).

Recitals

          A. Borrower is the owner of a 2.4 MW solar photovoltaic solar power generating facility (the
“Project”) located at Folsom Boulevard and Aerojet Road in Rancho Cordova, California.

          B. Borrower has financed the ownership, operation and maintenance of the facility in part with
a loan in the aggregate principal amount of $3,898,560 from Five Star Bank (the “Existing
Loan”).

          C. In order to refinance the Existing Loan and finance the ownership, operation and
maintenance of the Project, Borrower has requested Lender to extend, and Lender has agreed to
extend, on the terms and conditions set forth in this Agreement and the other Loan Documents, a
senior secured term loan facility in an aggregate principal amount of $4,500,000.

          D. Borrower has agreed to secure all of the Secured Obligations by granting to Lender a first
priority Lien on the Collateral owned by Borrower.

Agreement

          NOW, THEREFORE, Lender is willing to extend the credit described above to Borrower on the
terms and subject to the conditions set forth herein. Accordingly, the parties hereto agree as
follows:

ARTICLE I.

Defined Terms; Rules of Construction

          1.1 Defined Terms. Capitalized terms used in this Agreement shall have the meanings
specified in Annex 1 to this Agreement.

          1.2 Rules of Construction. Except as otherwise expressly provided, the following
rules of interpretation shall apply to this Agreement and the other Loan Documents: (a) the
definitions referred to in Section 1.1 shall apply equally to both the singular and plural
forms of the terms defined; (b) whenever the context may require, any pronoun shall include the
corresponding masculine, feminine and neuter forms; (c) the words “include,” “includes” and
“including” shall be deemed to be followed by the phrase “without limitation”; (d) all references
herein to Articles, Sections, Exhibits and Schedules shall be deemed references to Articles and
Sections of, and Exhibits and Schedules to, this Agreement unless the context shall otherwise
require; (e) except as otherwise expressly provided herein, any reference in this Agreement to any
agreement shall mean such agreement as amended, restated, supplemented or otherwise modified from
time to time; (f) the term “or” is not exclusive unless the context otherwise requires; (g) except
as otherwise expressly provided herein, all terms of an accounting or

1

 

financial nature shall be construed in accordance with GAAP, as in effect from time to time;
(h) any reference to any Person shall include its successors and permitted assigns in the capacity
indicated, and in the case of any Governmental Authority, any Person succeeding to its functions
and capacities; and (i) any reference to any Legal Requirements in any of the Loan Documents shall
include all references to such Legal Requirements as amended.

ARTICLE II.

Credit

          2.1 Commitment. Subject to the terms and conditions set forth herein, Lender agrees to
make a term loan (the “Term Loan”) to Borrower on the Closing Date in the amount of
$4,500,000. Amounts repaid or prepaid in respect of the Term Loan may not be re-borrowed.

          2.2 Repayment of Term Loan.

                    (a) Borrower hereby unconditionally promises to pay to Lender the then unpaid principal
amount of the Term Loan on or prior to the Maturity Date. Lender shall maintain in accordance with
its usual practice an account or accounts evidencing the indebtedness of Borrower to Lender
resulting from the Term Loan made by Lender, including the amounts of principal and interest
payable and paid to Lender from time to time hereunder. The entries made in the accounts
maintained pursuant to the preceding sentence shall be prima facie evidence of the existence and
amounts of the obligations recorded therein; provided, that the failure of Lender to maintain such
accounts or any error therein shall not in any manner affect the obligation of Borrower to repay
the Term Loan in accordance with the terms of this Agreement.

                    (b) On each Monthly Payment Date prior to the Maturity Date, commencing on June 1, 2011,
Borrower shall repay the principal amount of the Term Loan in the amount set forth in the schedule
of payments attached as Schedule 2.2 as well as all accrued and unpaid interest. Principal
payments under this Term Loan shall be fixed as provided on Schedule 2.2. Interest on the unpaid
principal amount of the Term Loan shall accrue at the Variable Interest Rate as provided in Section
2.6 below. To the extent not previously paid, the Term Loan shall be due and payable on the
Maturity Date.

                    (c) Payments set forth in subsections 2.2(a) and (b) above shall be made in accordance with
the Depository Agreement.

          2.3 Prepayment of Term Loan.

                    (a) Mandatory Prepayments. Borrower shall (i) cause all funds transferred pursuant to
the Depositary Agreement in respect of mandatory prepayments to be applied to the prepayment of
Term Loan in accordance with Section 2.4 and (ii) apply all funds disbursed from the
Mandatory Prepayment Account (as defined in the Depositary Agreement) pursuant to the Depositary
Agreement to the prepayment of Term Loan in accordance with Section 2.4.

                    (b) Prepayments of Term Loan. Borrower may prepay the Term Loan in whole prior to
the Maturity Date.

                         Notwithstanding any other provisions of this Section 2.3, Borrower shall consult with
Lender prior to making any prepayment when a Financial Contract has been executed between Borrower
and Lender in connection with this Term Loan.

2

 

          2.4 Application of Payments. Except as otherwise specified herein or in the Depositary
Agreement, mandatory prepayments of the Term Loan shall be applied pro rata to scheduled
amortization payments of the Term Loan in inverse order of maturity and the Commitment shall be
reduced in an amount corresponding to such mandatory prepayment. Scheduled amortization payments
shall be applied to the Term Loan in direct order of maturity and voluntary prepayments of the Term
Loan shall be applied to then outstanding Loans on a pro rata basis. Neither voluntary nor
mandatory prepayments of the Term Loan may be re-borrowed.

          2.5 Fees. On the Closing Date, Borrower agrees to pay to Lender in immediately
available funds a loan fee equal to $22,500. The loan fee shall be fully earned on the Closing
Date and non-refundable.

          2.6 Interest.

                    (a) Rate. Borrower shall pay interest on the unpaid principal amount of the
Term Loan at the Variable Interest Rate subject to the Interest Rate Floor, provided however that
the Interest Rate Floor shall not apply if a Financial Contract has been executed between Borrower
and Lender in connection with this Term Loan. The interest rate on the Term Loan will not be less
than 6.00% per annum (“Interest Rate Floor”). The Variable Interest Rate on this loan is subject
to change from time to time based on changes in an independent index which is the daily Wall Street
Journal Prime Rate, as quoted in the “Money Rates” column of The Wall Street Journal (Western
Edition), rounded to two decimal places, all as determined by Lender (the “Index”). The Index is
not necessarily the lowest rate charged by Lender on its loans. If the Index becomes unavailable
during the term of this loan, Lender may designate a substitute index after notifying Borrower.
Lender will inform Borrower of the current Index rate upon Borrower’s request. The interest rate
change will not occur more often than each day. Borrower understands that Lender may make loans
based on other rates as well. The Index currently is 3.250% per annum. Interest on the unpaid
principal balance of this loan will be calculated using a rate of 1.250 percentage point over the
Index, resulting in an initial rate of 4.500%.

                    (b) Default Interest. If an Event of Default occurs and so long as it is continuing,
Borrower shall pay interest on any outstanding principal of and interest on the Term Loan or any
outstanding fees or other amounts due and payable by Borrower at a rate equal to 11% per annum.

                    (c) Interest Generally. Accrued interest on the Term Loan shall be payable by
Borrower in arrears on each Monthly Payment Date and on the Maturity Date; provided, that (A)
interest accrued pursuant to clause (b) of this Section 2.6 shall be payable on demand, and
(B) in the event of any repayment or prepayment of the Term Loan, accrued interest on the principal
amount repaid or prepaid shall be payable on the date of such repayment or prepayment. All
interest hereunder shall be computed on the basis of a year of 360 days, and shall be payable for
the actual number of days elapsed (including the first day but excluding the last day).

          2.7 Increased Costs. If any Change in Law shall: (a) impose, modify or deem applicable
any reserve, special deposit or similar requirement against assets of, deposits with or for the
account of, or credit extended by, Lender, and the result of any of the foregoing shall be to
increase the cost to Lender of making or maintaining the Term Loan (or of maintaining its
obligation to make any such Loan) to Borrower or to reduce the amount of any sum received or
receivable by Lender hereunder (whether of principal, interest or otherwise) (except, in each case,
for Taxes), then Borrower will pay to Lender such additional amount or amounts as will compensate
Lender for such additional costs incurred or reduction suffered. If Lender determines that any
Change in

3

 

Law regarding capital requirements has or would have the effect of reducing the rate of return
on Lender’s capital or on the capital of Lender’s holding company, if any, as a consequence of this
Agreement or any of the Term Loan made by Lender to a level below that which Lender or Lender’s
holding company could have achieved but for such Change in Law (taking into consideration Lender’s
policies and the policies of Lender’s holding company with respect to capital adequacy), then from
time to time Borrower shall pay to Lender such additional amount or amounts as will compensate
Lender or Lender’s holding company for any such reduction suffered.

          2.8 Taxes. Any and all payments by or on account of any Obligation of Borrower
under any Loan Document shall be made free and clear of and without deduction or withholding for or
on account of any Taxes (other than income or franchise Taxes imposed on or measured by Lender’s
net income); provided, that, if by any Governmental Rule any Taxes are required to be deducted or
withheld from any such payment, then (i) the sum payable shall be increased as necessary so that
after making all required deductions and withholdings (including deductions and withholdings
applicable to Taxes payable under this Section) Lender or any other recipient receives an amount
equal to the sum it would have received had no such deductions and withholdings for Taxes been
made, (ii) Borrower shall make such deductions and withholdings and (iii) Borrower shall timely pay
or cause to be paid the full amount deducted or withheld to the relevant Governmental Authority in
accordance with applicable Governmental Rules. In addition, Borrower shall timely pay or cause to
be paid any and all present or future stamp or documentary Taxes or any other excise, property,
intangible or recording Taxes arising from any payment made hereunder or from the execution,
delivery or enforcement of, or otherwise with respect to, any Loan Document to the relevant
Governmental Authority in accordance with applicable Governmental Rules. Borrower shall indemnify
or cause to be indemnified Lender, within 10 days after written demand therefor, for the full
amount of any Taxes paid by Lender or any of its Affiliates on or with respect to any payment by or
on account of any Obligation of Borrower under any Loan Document (including Taxes imposed or
asserted on or attributable to amounts payable under this Section) and any reasonable expenses
arising therefrom or with respect thereto, whether or not such Taxes were correctly or legally
imposed or asserted by the relevant Governmental Authority.

          2.9 Payments Generally.

                    (a) Unless otherwise specified, Borrower shall make each payment required to be made by
it under any Loan Document (whether of principal, interest or fees or of amounts payable under
Section 2.7, Section 2.8, or otherwise) prior to 12:00 p.m., Pacific time, on the
date when due, in immediately available funds, without condition or deduction for any defense,
recoupment, set-off or counterclaim. Any amounts received after such time on any date may, in the
discretion of Lender, be deemed to have been received on the next succeeding Business Day for
purposes of calculating interest thereon. All such payments shall be made to Lender to the
applicable account designated to Borrower by Lender, except that payments pursuant to Section
2.7, Section 2.8 and Section 8.2 shall be made directly to the Persons entitled
thereto, in each case, subject to the terms of the Depositary Agreement. If any payment hereunder
shall be due on a day that is not a Business Day, the date for payment shall be extended to the
next succeeding Business Day, and, in the case of any payment accruing interest, interest thereon
shall be payable for the period of such extension. All payments hereunder of (i) principal

4

 

or interest in respect of the Term Loan or (ii) any other amount due hereunder or under any
other Loan Document shall be made in Dollars.

                    (b) If at any time insufficient funds are received by and available to Lender from Borrower to
pay fully all amounts of principal, interest and fees then due from Borrower under the Loan
Documents, such funds shall be applied (i) first, towards payment of interest and fees then due
from Borrower hereunder, and (ii) second, towards payment of principal then due from Borrower
hereunder.

ARTICLE III.

Representations and Warranties

          Borrower represents and warrants to Lender, as of the date of this Agreement, as of the date
of each disbursement of loan proceeds, as of the date of any renewal, extension or modification of
the Term Loan, and at all times any Obligations are outstanding:

          3.1 Organization; Equity Interests. Borrower is a limited liability company which is, and at
all times shall be, duly organized, validly existing, and in good standing under and by virtue of
the laws of the State of California. Borrower is duly authorized to transact business in all other
states in which Borrower is doing business, having obtained all necessary filings, governmental
licenses and approvals for each state in Borrower is doing business. Specifically, Borrower is,
and at all times shall be, duly qualified as a foreign limited liability company in all states in
which the failure to so qualify would have a Material Adverse Effect. Borrower has the full power
and authority to own its properties and to transact the business in which it is presently engaged
or presently proposes to engage. The Equity Interests in Borrower have been duly authorized and
validly issued. Except as set forth in the Borrower Operating Agreement, there is no existing
option, warrant, call, right, commitment or other agreement to which Borrower is a party requiring,
and there is no Equity Interest in Borrower outstanding which, upon conversion or exchange, would
require the issuance by Borrower of any additional Equity Interests in Borrower or other securities
convertible into, exchangeable for or evidencing the right to subscribe for or purchase an Equity
Interest in Borrower.

          3.2 Assumed Business Names. Borrower has filed or recorded all documents or filings required
by law relating to all assumed business names used by Borrower. Excluding the name of Borrower,
the following is a complete list of all assumed business names under which Borrower does business:
None.

          3.3 Authorization. Borrower’s execution, delivery, and performance of this Agreement and all other
Transaction Documents to which it is a party have been duly authorized by all necessary action by
Borrower and do not conflict with, result in a violation of, or constitute a default under (a) any
provision of (i) Borrower’s Organic Documents, or (ii) any agreement or other instrument binding
upon Borrower or (b) any law, governmental regulation, court decree, or order applicable to
Borrower or to Borrower’s properties.

          3.4 Legal Effect. This Agreement and the other Loan Documents constitute, and any
instrument or agreement Borrower is required to give under this Agreement, when delivered, will
constitute legal, valid, and binding obligations of Borrower enforceable against Borrower in
accordance with their respective terms, subject to (a) the effects of bankruptcy, insolvency,
moratorium, reorganization, fraudulent conveyance or other similar laws affecting creditors’ rights
generally, (b) general principles of equity (regardless of whether such enforceability is
considered in a proceeding in equity or at law) and (c) implied covenants of good faith and fair
dealing.

          3.5 Financial Information. Borrower’s financial statements supplied to Lender (including
the pro forma balance sheet of Borrower prepared giving effect to the transactions to occur on the
Closing Date) truly and completely disclose Borrower’s financial condition as of the date of the
statement, and

5

 

there has been no material adverse change in Borrower’s financial condition subsequent to the
date of the most recent financial statement supplied to Lender. Borrower has no any material
obligations, contingent or otherwise, except as disclosed in such financial statements and as
contemplated in connection with this transaction.

          3.6 Litigation and Claims. No litigation, claim, investigation, administrative proceeding or
similar action (including those for unpaid taxes) against Borrower or any of its business, property
or rights is pending or, to Borrower’s Knowledge, threatened, and no other event has occurred which
may materially adversely affect Borrower’s financial condition or properties, other than
litigation, claims, or other events, if any, that have been disclosed on Schedule 3.6.

          3.7 Disclosure and Projections. All written information (other than the Projections,
forward looking statements, budgets, estimates and information of a general economic nature) (the
“Information”) concerning Borrower or the Transactions prepared by, or as directed by,
Borrower or any of their respective representatives and made available to Lender in connection with
the Transactions was true and correct in all material respects, as of the date such Information was
furnished to Lender and, as of the Closing Date, did not contain any untrue statement of a material
fact as of any such date or omit to state a material fact necessary in order to make the statements
contained therein not materially misleading in light of the circumstances under which such
statements were made. As of the Closing Date, the Projections, forward looking statements,
budgets, estimates and information of a general economic nature prepared, or as directed by
Borrower or any of its representatives and that have been made available to Lender in connection
with the Transactions (a) have been prepared in good faith based upon assumptions believed by
Borrower to be reasonable as of the Closing Date and (b) as of the Closing Date, have not been
modified in any material respect by Borrower. As of the Closing Date, the Base Case Projections
and the initial Annual Operating Budget are based on reasonable assumptions, are made in good faith
and are consistent with the provisions of the Major Project Contracts.

          3.8 Major Project Contracts. As of the Closing Date, (a) copies of all Major Project
Contracts as currently in effect have been delivered to Lender by Borrower, (b) each Major Project
Contract entered into as of the date hereof is in full force and effect and, to Borrower’s
Knowledge, no material defaults have occurred and are continuing thereunder, and (c) except as has
been previously disclosed in writing to Lender, none of the Major Project Contracts entered into as
of the date hereof has been amended, modified or terminated. Schedule 3.8 sets forth each
Major Project Contract entered into or expected to be entered into before or after the Closing
Date.

          3.9 No Material Adverse Effect. As of the Closing Date, since the date of the latest
financial statements of Borrower delivered to Lender, there has been no event or occurrence that
has resulted in or could reasonably be expected to result in, individually or in the aggregate, any
Material Adverse Effect.

          3.10 Federal Reserve and Other Regulations No Brokers. Borrower is not engaged
principally in, nor does it have as one of its important activities, the business of extending
credit for the purpose of purchasing or carrying Margin Stock. No part of the proceeds of the Term
Loan will be used, whether directly or indirectly, and whether immediately, incidentally or
ultimately, (i) to purchase or carry Margin Stock or to extend credit to others for the purpose of
purchasing or carrying Margin Stock or to refund indebtedness originally incurred for such purpose,
or (ii) for any purpose that entails a

6

 

violation of, or that is inconsistent with, the provisions of the Regulations of the Federal
Reserve Board, including Regulation U or Regulation X. Borrower is not subject to regulation under
the Public Utility Holding Company Act of 1935, the Federal Power Act or the Investment Company Act
of 1940, each as amended. In addition, Borrower is not (i) an “investment company” registered or
required to be registered under the Investment Company Act of 1940, as amended, and is not
controlled by such a company, or (ii) a “holding company”, or a “subsidiary company” of a “holding
company”, or an “affiliate” of a “holding company” or of a “subsidiary” of a “holding company”,
within the meaning of the Public Utility Holding Company Act of 1935, as amended. Borrower has no
obligation to any Person in respect of any finder’s, broker’s or investment banking fee with
respect to the Loan Documents or the Transactions or under any other agreement, document or
instrument with any Person, other than fees payable under this Agreement.

          3.11 Taxes.

                    (a) Borrower (i) has timely filed or caused to be timely filed all federal and material
other Tax returns required to have been filed by or with respect to it and each such Tax return is
complete and accurate in all material respects and (ii) has timely paid or caused to be timely paid
all material Taxes shown thereon to be due and payable by it and all other material Taxes or
assessments, except Taxes or assessments that are being contested in accordance with Section
5.9.

                    (b) As of the Closing Date, (i) no Liens for Taxes (other than Liens for Taxes not yet
delinquent) have been filed with respect to the assets of Borrower, (ii) no unresolved claim has
been asserted in writing with respect to any Taxes of Borrower, (iii) no waiver or agreement by
Borrower is in force for the extension of time for the assessment or payment of any Tax, and (iv)
no request for any such extension or waiver is currently pending. As of the Closing Date, there is
no pending or, to Borrower’s Knowledge, threatened audit or investigation by any Governmental
Authority of Borrower with respect to Taxes.

                    (c) Borrower is not a party to or bound by any Tax sharing arrangement or similar agreement or
arrangement (whether or not written) pursuant to which it may have an obligation to make any
payments after the Closing Date.

                    (d) Borrower is, and has been since formation, a Pass-Through Entity. Borrower has not ever
been subject to entity-level Tax, for federal or applicable state or local income or franchise Tax
purposes or for purposes of any foreign income or franchise Tax imposed by any Governmental
Authority of or in a jurisdiction in which Borrower has any nexus or other taxable presence.
Borrower has not engaged in any “listed transaction” (as defined in Treasury Regulation section
1.6011-4) or made any disclosure under Treasury Regulation section 1.6011-4.

                    (e) Borrower has no nexus or other taxable presence outside the United States, any trade or
business or permanent establishment outside the United States or any other connection to a
jurisdiction outside the United States that could reasonably be expected to subject it to any
requirement to deduct or withhold any Tax with respect to any payment made pursuant to any Loan
Document.

          3.12 Compliance with Laws. Except for matters related to Environmental Laws and
Hazardous Materials which are addressed in Section 3.15, neither Borrower nor any of its
properties or assets is in violation of (nor will the continued operation of its material
properties and assets as currently conducted violate) any currently applicable Legal Requirements
(including any zoning, building, ordinance, code or approval or any

7

 

building permit), where such violation or default could reasonably be expected to have,
individually or in the aggregate, a Material Adverse Effect.

          3.13 Employee Matters. Borrower has no, nor will Borrower have any, employees.

          3.14 Solvency. Immediately after giving effect to the Transactions to occur on the
Closing Date, (a) the fair value of the assets of Borrower, at a fair valuation, will exceed the
debts and liabilities, direct, subordinated, contingent or otherwise, of Borrower, (b) the present
fair saleable value of the property of Borrower will be greater than the amount that will be
required to pay the probable liability of Borrower on its debts and other liabilities, direct,
subordinated, contingent or otherwise, as such debts and other liabilities become absolute and
matured, (c) Borrower will be able to pay its debts and liabilities, direct, subordinated,
contingent or otherwise, as such debts and liabilities become absolute and matured (after giving
effect to any guarantees and credit support), and (d) Borrower will not have unreasonably small
capital with which to conduct the business in which it is engaged as such business is now conducted
and is proposed to be conducted following the Closing Date.

          3.15 Hazardous Materials. Except as disclosed on Schedule 3.15, (a) during the
period of Borrower’s ownership of the Collateral, there has been no use, generation, manufacture,
storage, treatment, disposal, Release or threatened Release of any Hazardous Material by any person
acting on behalf of Borrower with respect to the Collateral; and (b) Borrower has no knowledge of,
or reason to believe that there has been (i) any breach or violation of any Environmental Law with
respect to the Collateral or Borrower, (ii) any use, generation, manufacture, storage, treatment,
disposal, release or threatened release of any Hazardous Material on, under, about or from the
Collateral by any prior owners or occupants of any of the Collateral, or (iii) any actual or
threatened litigation or claims of any kind by any person relating to such matters. Upon
reasonable notice from Lender, subject to the terms of the Major Project Contracts, Borrower
authorizes Lender and its agents to enter upon the Collateral at reasonable times to make such
inspections and tests as Lender may deem appropriate to determine compliance of the Collateral with
this section of the Agreement. Any inspections or tests made by Lender upon reasonable cause shall
be at Borrower’ expense and for Lender’s purposes only and shall not be construed to create any
responsibility or liability on the part of Lender to Borrower or to any other Person. To the
extent that any written reports of such tests or inspections are prepared, copies of such written
reports shall be delivered to Borrower within a reasonable time after Borrower’s request therefor.
The representations and warranties contained herein are based on Borrower’s due diligence in
investigating the Collateral for hazardous waste and Hazardous Materials.

          3.16 Single Purpose; Separateness. Borrower (a) has not conducted any business
other than the business contemplated by the Transaction Documents, has no outstanding Indebtedness
or other material liabilities other than Indebtedness or other material liabilities pursuant to or
allowed by the Transaction Documents and, as of the Closing Date, is not party to or bound by any
material contract other than the Transaction Documents to which it is a party; (b) is not a general
partner or a limited partner in any general or limited partnership or a joint venturer in any joint
venture; and (c) has no direct or indirect Subsidiaries. Borrower conducts its business solely in
its own name in a manner not misleading to other Persons as to its identity and does not

8

 

commingle its funds or accounts with those of any other entity which is an Affiliate of
Borrower.

          3.17 No Default. No Default or Event of Default has occurred and is continuing
which has not been disclosed in writing by Borrower to Lender.

          3.18 Collateral. (a) The Security Documents are effective to create, in favor of
Lender, legally valid and enforceable security interests in such right, title and interest Borrower
shall from time to time have in all personal property included in the Collateral, and (b) such
security interests are subject to no Liens other than Permitted Liens. Except to the extent that
possession of portions of the Collateral or any filing or recording is required for perfection, all
such action as is necessary has been taken to establish and perfect Lender’s rights in and to the
Collateral. As of the Closing Date, no filing, recordation, re-filing or re-recording other than
those listed on Schedule 3.18 is necessary to perfect and maintain the perfection of the
interest, title or Liens of the Security Documents. Borrower has (y) properly delivered or caused
to be delivered to Lender all Collateral that requires perfection of the security interests
described above by possession and (z) authorized the filings and recordings by Lender required for
the perfection of the security interests described above by filing or recording. Borrower
acknowledges and will not contest that it is the intention of the parties that none of the solar
panels or inverters that are part of the Project constitutes a real property fixture.

          3.19 Permits.

                    (a) There are no material Permits under existing Legal Requirements that are or will
become Necessary Project Permits other than the Permits listed on Schedule 3.19.

                    (b) Each Necessary Project Permit identified on Schedule 3.19 (i) is held by or on
behalf of Borrower and is in full force and effect in all material respects, (ii) is not subject to
either (A) any unsatisfied condition that would reasonably be expected to allow material
modification, expiration or revocation of such Permit or prevent such Permit from becoming
effective or (B) any pending or threatened appeals or other proceedings that, in each case, could
reasonably be expected to result in a Material Adverse Effect, and (iii) is not subject to any
restriction, condition, limitation or other provision that could reasonably be expected to have a
Material Adverse Effect. All applicable statutory appeal periods or waiting periods with respect
to such Necessary Project Permits have expired. Borrower is currently in compliance in all
material respects with all of the Necessary Project Permits held by it.

                    (c) There are no actions, suits, investigations or proceedings at law or in equity or by or on
behalf of any Governmental Authority, or by any other Person, or in arbitration now pending or
threatened against Borrower alleging any failure to comply with the Necessary Project Permits that
could reasonably be expected to have, individually or in the aggregate, a Material Adverse Effect.

          3.20 Governmental Approvals. No action, consent or approval of, registration or filing
with, Permit from, notice to, or any other action by, any Governmental Authority is or will be
required in connection with (a) the due execution, delivery and performance by Borrower of the Loan
Documents to which it is a party, (b) the consummation of the Transactions by Borrower or (c) the
grant by Borrower of the Liens granted by it under the Security Documents, or the validity,
perfection and enforceability thereof or for the exercise by Lender or Borrower, as applicable, of
its rights and remedies thereunder, except (i) the filing of UCC financing statements, (ii) such as
have been made or

9

 

obtained and are in full force and effect, (iii) any Permits that are not yet Necessary
Project Permits and (iv) as set forth on Schedule 3.20.

          3.21 Title to Properties and Assets.

                    (a) Borrower has a good and valid easement over all Site Property applicable to the
Project, and such interest is sufficient to conduct the business of the Project as currently
conducted and as contemplated to be conducted. Borrower has good and valid title to, or valid
leasehold, easement, or license interests in, all of its other material properties and assets
(including all Real Property), subject only to Permitted Liens. As of the Closing Date, no portion
of the Site Property has suffered any material damage by fire or other casualty loss that has not
heretofore been completely repaired and restored to its original condition to the extent required
by this Agreement and the Depositary Agreement.

                    (b) Borrower has not received any notice of, nor does Borrower have any Knowledge of, any
pending or contemplated condemnation proceeding affecting any material portion of the Site Property
or any sale or disposition thereof in lieu of condemnation.

                    (c) Borrower is not obligated under any right of first refusal, option or other contractual
right to sell, assign or otherwise dispose of any Site Property or any interest therein.

                    (d) Borrower has lawful rights of use and access to all Real Property necessary to conduct its
businesses substantially as presently conducted (or as to be conducted), subject only to Permitted
Liens.

                    (e) As of the Closing Date, no Major Project Contract Counterparty under any Site Agreement
has a mortgage or deed of trust Lien against such Major Project Contract Counterparty’s interest in
its Site Property.

          3.22 Sufficiency of Assets. Other than (a) services, materials, real property interests and
other rights that can be reasonably expected to be commercially available when and as required, (b)
the Major Project Contracts, Permits set forth on Schedule 3.19 and governmental
approvals set forth on Schedule 3.20, and (b) services, materials, real property interests
and other rights set forth on Schedule 3.21, the services to be performed, materials, real
property interests, easements and other property and rights owned by or otherwise granted to
Borrower comprise all of the material property interests necessary to secure any right material to
the development, construction, operation and maintenance of the Project in accordance with all
Legal Requirements, and are sufficient to enable the Project to be located on its site.

          3.23 Utility Services. All utility services necessary for the operation of the Project for
its intended purposes, are available at the Project’s site as and when required upon commercially
reasonable terms.

          3.24 Intellectual Property. Borrower owns or has the right to use all patents, trademarks,
service marks, trade names, domain names, copyrights, licenses and other rights which are necessary
for the ownership and operation of the Project in accordance with the Transaction Documents, in
each case, as to which the failure of Borrower to so own or have the right to use could reasonably
be expected to have a Material Adverse Effect. To Borrower’s Knowledge, no material product,
process, method, substance, part or other material presently contemplated to be sold or employed by
Borrower in connection with its business will infringe any patent, trademark, service mark, trade
name, domain name, copyright, license or other right owned by any other Person.

          3.25 Flood Zones. No portion of the Collateral is located or will be located in an area
designated by the Federal Emergency Management Agency as having special flood or mud slide hazards.

10

 

          3.26 Affiliate Transactions. Other than the transactions listed on Schedule
3.26, (a) there is no agreement or arrangement between (i) on the one hand, Borrower, and (ii)
on the other hand, any Affiliate of Borrower, director or employee of Borrower or any member of his
or her immediate family, (b) no shareholder, director, officer or employee of Borrower or any
member of his or her immediate family is indebted to Borrower, and (c) to Borrower’s Knowledge, no
shareholder, director, officer or employee of Borrower has any direct or indirect ownership
interest in any supplier, customer or competitor of Borrower, other than non-controlling interests
in the stock of publicly traded companies.

          3.27 Regulatory Matters. (a) The Project is a QF and shall maintain such status.
(b) The Project is an “independent solar energy producer” within the meaning of Section 2868 of the
California Public Utilities Code. (c) Borrower is not subject to, or is otherwise exempt from,
regulation (i) by FERC under the Federal Power Act with respect to rates, financial matters or
corporate organization or (ii) except as set forth on Schedule 3.27, under any state law or
regulation respecting the rates of electric utilities or the financial and organizational
regulation of electric utilities. (d) Neither Lender nor any of its “affiliates” (as defined in
PUHCA and applicable FERC regulations), solely by virtue of the execution, delivery and performance
of or the consummation of the transactions contemplated by Loan Documents, shall be or become
subject to, or not exempt from, regulation under PUHCA, the Federal Power Act or any Legal
Requirement with respect to the regulation under any state law or regulation respecting the rates
of electric utilities or the financial and organizational regulation of electric utilities;
provided, that this subsection does not apply in the case of any exercise of remedies under the
Loan Documents that results in the direct or indirect ownership of a Project by Lender or any of
its “affiliates” (as defined in PUHCA and applicable FERC regulations).

          3.28 Anti-Terrorism Laws; Foreign Corrupt Practices Act. Neither Borrower nor any
Affiliate of Borrower is in violation of any Anti-Terrorism Laws. The use of the proceeds of the
Term Loan by Borrower will not violate any Anti-Terrorism Laws. No part of the proceeds from the
Term Loan hereunder will be used, directly or indirectly, for any payments to any governmental
official or employee, political party, official of a political party, candidate for political
office, or anyone else acting in an official capacity, in order to obtain, retain or direct
business or obtain any improper advantage, in material violation of the United States Foreign
Corrupt Practices Act of 1977, as amended.

          3.29 Cash Grant. Borrower has filed the Cash Grant Application for a Cash Grant in
the amount of $3,346,338. Borrower has received the Cash Grant in the amount of $3,346,338. To
the extent such ownership would trigger a Recapture Event for the Project, neither Borrower, nor
any direct or indirect owner thereof, is a Disqualified Person.

ARTICLE IV.

Conditions to Closing

          4.1 Closing Conditions. The occurrence of the Closing Date is subject to the
satisfaction of the following conditions, in each case, as applicable:

                    (a) Governing Documents. Lender shall have received:

11

 

                              (i) a copy of the certificate of formation or other formation documents, including all
amendments thereto, of Borrower and Managing Member, certified as of a recent date by the Secretary
of State of the state of such Person’s organization, and a certificate as to the good standing of
such Person as of a recent date from such Secretary of State;

                              (ii) a certificate of a Responsible Officer of Borrower and Managing Member, dated the Closing
Date and certifying (A) that attached thereto is a true and complete copy of the limited liability
company operating agreement, by-laws or other governing document of such Person (which shall be in
form and substance reasonably satisfactory to Lender), as in effect on the Closing Date and at all
times since a date prior to the date of the resolutions described in clause (B) below, (B) that
attached thereto is a true and complete copy of resolutions duly adopted by the appropriate
governing entity or body of such Person, authorizing the execution, delivery and performance of the
Transaction Documents to which such Person is a party, the borrowings and guarantees hereunder and
the granting of the Liens contemplated to be granted by Borrower under the Security Documents, and
that such resolutions have not been modified, rescinded or amended and are in full force and
effect, (C) that the certificate of formation or other formation documents of such Person have not
been amended since the date of the last amendment thereto shown on the certificate of good standing
furnished pursuant to clause (i) above, (D) as to the incumbency and specimen signature of each
officer executing any Loan Document or any other document delivered in connection herewith on
behalf of such Person and (E) as to the absence of any pending proceeding for the dissolution or
liquidation of such Person or, to the knowledge of such Responsible Officer, threatening the
existence of such Person;

                              (iii) a certificate of another Responsible Officer of the Borrower and Managing Member as to
the incumbency and specimen signature of the Responsible Officer executing the certificate pursuant
to clause (ii) above; and

                              (iv) such other documents with respect to Borrower or Managing Member as Lender may reasonably
request.

                    (b) Loan Documents. Lender shall have received duly authorized and executed originals
of this Agreement and each other Loan Document, including a duly executed promissory note in the
form of Exhibit A, in each case, in form and substance satisfactory to Lender.

                    (c) Legal Opinions. Lender shall have received written opinions from counsel for
Borrower, and Managing Member, (i) in form and substance reasonably satisfactory to Lender and its
counsel, (ii) dated the Closing Date, (iii) addressed to Lender and (iv) covering such matters
relating to the Transaction Documents and the Project as Lender shall reasonably request and which
are customary for transactions of the type contemplated by the Transaction Documents.

                    (d) Personal Property Collateral; Filings and Recordings.

                              (i) Lender shall have been granted on the Closing Date first priority perfected Liens on the
Collateral (subject only to Permitted Liens).

                              (ii) Lender shall have received: (A) appropriately completed UCC financing statements (Form
UCC-1), naming Borrower as debtor and Lender as secured party, in form appropriate for filing as
may be necessary to perfect the security interests purported to be created by the Security
Documents covering the applicable Collateral; and (B) certified copies of requests for information
or copies, or equivalent reports, listing all effective financing statements that name Borrower as
debtor and that are filed in the applicable jurisdictions, together with copies of such other
financing statements (none of which shall cover the Collateral except to the extent evidencing
Permitted Liens).

                    (e) Major Project Contracts. Lender shall have received fully executed copies of each
Major Project Contract entered into as of the Closing Date, in each case, in form and substance

12

 

reasonably satisfactory to Lender, which Major Project Contracts shall be in full force and
effect and enforceable against each party thereto as of the Closing Date.

                    (f) Insurance. Insurance complying with Schedule 5.8 shall be in full force
and effect and Lender shall have received a certificate from Borrower’s insurance broker(s), dated
as of the Closing Date and identifying underwriters, type of insurance, insurance limits and policy
terms, describing the insurance obtained and stating that such insurance is in full force and
effect and that all premiums then due thereon have been paid.

                    (g) Independent Engineer Report. Lender shall have received the Independent Engineer
Report, together with a certificate of the Independent Engineer, in each case, in form and
substance satisfactory to Lender.

                    (h) Payment of Transaction Costs; Funds Flow Memorandum. Borrower shall pay, out of
the proceeds of the Term Loan, all closing costs and fees due on the Closing Date in accordance
with the Funds Flow Memorandum, which shall be delivered, and shall be in form and substance
reasonably satisfactory, to Lender.

                    (i) Financial Statements. Lender shall have received a correct and complete copy of
the pro forma balance sheet of Borrower.

                    (j) Base Case Projections. Lender shall have received the Base Case Projections,
which shall be in form and substance reasonably satisfactory to Lender.

                    (k) Real Property. (i) Borrower shall own all Real Property rights required for the
operation and maintenance of the Project (including access thereto) as of the Closing Date, free
and clear of all Liens (other than Permitted Liens) in a manner consistent with the Base Case
Projections, as certified by a Responsible Officer of Borrower. (ii) Lender shall have received
evidence satisfactory to Lender that (A) the Real Property on which the Project shall be located is
free of liens to which the Collateral could become subject and (B) it is the intent of all Major
Project Contract Counterparties to the Site Agreements that the solar panels, platforms,
improvements and other components constituting the Project are not fixtures. (iii) Lender shall
have received a copy of the Project’s Site Agreement, fully executed. (iv) Lender shall have
received a security interest in the Easement, in a form of a Deed of Trust satisfactory to Lender,
and delivered by Borrower to Lender, granting a lien on Borrower’s Real Property rights to Lender
(or a trustee for the benefit of Lender) as additional security for this Term Loan.

                    (l) Necessary Project Permits. Lender shall have received a copy of each Necessary
Project Permit, and each such Necessary Project Permit shall be in full force and effect.

                    (m) Establishment of Accounts. Each of the Project Accounts (as defined in the
Depositary Agreement) described in the Depositary Agreement shall have been established with Lender
in accordance with the Depositary Agreement.

                    (n) Instructions Regarding Lockbox. Lender shall have received evidence that SMUD and
Site Host have been instructed to send all payments with respect to the PBI Agreement and the PPA,
respectively, to the applicable lockbox held with Lender, as provided in the Depositary Agreement.

                    (o) U.S.A. Patriot Act. Lender shall have received, at least five Business Days prior
to the Closing Date, all documentation and other information required by bank regulatory
authorities under applicable “know your customer” laws and Anti-Terrorism Laws, including the
U.S.A. Patriot Act.

                    (p) Existing Loan. Borrower shall have prepaid in full the principal amount of the
Existing Loan outstanding, plus all accrued interest due and owing through the Closing Date and all
other

13

 

obligations of Borrower due and owing through such date to the lender under the documents
evidencing or securing the Existing Loan.

                    (q) Placed in Service Date; No Liens. Lender shall have received evidence
satisfactory to Lender that the Placed in Service Date shall have occurred with respect to the
Project, Borrower shall have paid Contractor all amounts due Contractor in connection with the
construction of the Project or that Borrower shall have been fully released from liability for such
amounts, and there shall not have been filed with or served upon Borrower or the Project (or any
part thereof) notice of any Lien, claim of Lien or attachment upon or claim affecting the right to
receive payment of any of the moneys payable to any of the Persons named on such request which has
not been released, other than Permitted Liens.

                    (r) Permits. Borrower shall have duly obtained or been assigned and there shall be in
full force and effect in the name of Borrower, and not subject to any current legal proceeding,
waiting period or appeal or to any unsatisfied condition that would reasonably be expected to allow
material modification, expiration or revocation of, and all applicable appeal periods shall have
expired with respect to, all Necessary Project Permits. Such Necessary Project Permits shall not
be subject to any restriction, condition, limitation or other provision that could reasonably be
expected to have a Material Adverse Effect or a Project Material Adverse Effect. With respect to
any of the Permits not yet obtained, no facts or circumstances shall exist which indicate that any
such Permit will not be timely obtainable without material difficulty, delay or expense prior to
the time that such Permit becomes a Necessary Project Permit. Borrower shall have caused to be
filed with FERC a self-certification of QF status with respect to the Project, and such
self-certification of QF status shall be in full force and effect, and the Project shall be a QF.

                    (s) Funding of Debt Service Reserve Account. The Debt Service Reserve Account shall
have been funded to an amount equal to or greater than the Required Debt Service Reserve Amount (as
defined in the Depositary Agreement).

                    (t) Representations and Warranties. The representations and warranties (i) set forth
in Article III and made by Borrower in each other Loan Document, shall be true and correct
in all material respects (except to the extent any such representation and warranty itself is
qualified by “materiality”, “Material Adverse Effect” or similar qualifier, in which case, it shall
be true and correct in all respects) on and as of the Closing Date, with the same effect as though
made on and as of such date, except to the extent such representations and warranties expressly
relate to an earlier date (in which case such representations and warranties shall be true and
correct in all material respects as of such earlier date).

                    (u) No Event of Default or Default. At the time of and immediately after the Closing
Date, no Event of Default or Default shall have occurred and be continuing.

                    (v) No Project Material Adverse Effect. At the time of and immediately after the
Closing Date, there shall have been no event or occurrence which has resulted in or could
reasonably be expected to result in, individually or in the aggregate, any Project Material Adverse
Effect.

                    (w) Easement. The Site Agreement shall be in full force and effect, the Site
Agreement shall have been amended, as may be reasonably required by Lender, and Lender shall have
received a copy of the executed Site Agreement, as so amended.

                    (x) Consents and Agreements of Major Project Contract Counterparties. Borrower shall
have obtained consents, assignments and agreements of the Major Project Contract Counterparties, in
form and substance satisfactory to Lender in its sole discretion, consenting to the Transactions
(including the granting of the Liens pursuant to the Security Documents), granting notice and cure
rights to Lender under the Major Project Contracts, and containing such other provisions as Lender
may require.

14

 

                    (y) Access to Site Property. Lender shall have been granted access by Borrower to the
Site Property, or shall have received such other guaranty of access to the Site Property as may be
satisfactory to Lender in its sole discretion.

ARTICLE V.

Affirmative Covenants

          Borrower covenants and agrees with Lender that, from the Closing Date through the Discharge
Date:

          5.1 Use of Proceeds. Borrower shall apply or cause to be applied (a) the proceeds of
the Term Loan solely to repay the outstanding amounts under the Existing Loan, and (b) all Project
Revenues, Insurance Proceeds, Condemnation Proceeds, and Project Damages, in each case, in
accordance with the Depositary Agreement.

          5.2 Warranty of Title. Borrower shall maintain good and valid title to all of
Borrower’s properties and assets (that are individually or in the aggregate material), subject only
to Permitted Liens, in each case, other than those properties and assets disposed of in accordance
with the Loan Documents.

          5.3 Notices. Borrower shall promptly inform Lender in writing of (a) all material
changes in Borrower’s financial condition, (b) all existing and all threatened litigation, claims,
investigations, administrative proceedings or similar actions affecting Borrower which could
materially affect the financial condition of Borrower, (c) any revocation, modification, failure to
renew or the like of any Necessary Project Permit or the imposition of additional material
conditions thereto, (d) any Default or Event of Default or any breach or default under any Major
Project Contract, (e) any casualty, damage or loss to the Project, whether or not insured, (e) any
early cancellation or material change in the terms, coverage or amounts of any insurance policies,
(f) any termination or material amendment of any Major Project Contract, any material event of
force majeure asserted under any Major Project Contract, (g) any condemnation, taking or seizure by
a Governmental Authority with respect to the Project or the Site Property, (h) any noncompliance
with Environmental Laws, (i) any change that could reasonably be expected to increase O&M Costs for
the Project in excess of 5% per year, (j) any failure of a Material Warranty, or (k) any Material
Adverse Effect.

          5.4 Financial Statements; Financial Records.

                    (a) Financial Statements. Borrower shall deliver or cause to be delivered to
Lender the following:

                              (i) Interim Statements. On a bi-annual basis, as soon as available, but in no event
later than 30 days after the period ending June 30th and the period ending December
31st, Borrower shall provide Lender with balance sheet, income and expense statements,
reconciliation of net worth and statement of cash flows, with notes thereto for the period ended,
prepared by Borrower and in form reasonably satisfactory to Lender.

                              (ii) Annual Statements. As soon as available, but in no event later than 90 days
after the end of each fiscal year, Borrower shall provide Lender with Borrower’s balance sheet,

15

 

income and expense statements, reconciliation of net worth and statement of cash flows, with
notes thereto for the year ended, prepared by Borrower and in form reasonably satisfactory to
Lender.

                    (b) Books and Records; GAAP. Borrower shall maintain its books and records in
accordance with GAAP, applied on a consistent basis, and permit Lender to examine and audit
Borrower’s books and records at all reasonable times. All financial reports required to be
provided under this Agreement shall be prepared in accordance with GAAP, applied on a consistent
basis, and certified by Borrower as being true and correct.

          5.5 Annual Budgets; Annual Operating Reports; Compliance Certificates.

                    (a) On or before the date that is 60 days prior to the end of any fiscal year of
Borrower, Borrower shall deliver to Lender copies of an operating plan and budget for such year
(or, in the case of the initial Annual Operating Budget, the period from the Closing Date to
December 31, 2011) with respect to the operation and maintenance of the Project, detailed by month,
of anticipated revenues, such budget to include debt service, maintenance, repair and operation
expenses under the relevant operation and maintenance contracts with respect to each such Project
(including reasonable allowance for contingencies), reimbursable management expenses and fees,
reserves and all projected O&M Costs for the Project for the period, to the conclusion of the
subsequent full fiscal year thereafter, and for the corresponding periods with respect to each
subsequent annual operating budget (each, an “Annual Operating Budget”), in customary form.
No Annual Operating Budget shall be adopted or implemented without the prior written consent of
Lender (which consent shall not be unreasonably withheld, delayed or conditioned).

                    (b) Borrower shall deliver to Lender, within 30 days after the end of each fiscal quarter, a
report with respect to such fiscal quarter, summarizing, with respect to the Project as of such
fiscal quarter-end, (i) any Project Contract entered into or terminated during such fiscal quarter
(whether by expiration in accordance with its terms or otherwise), (ii) revenue and operating data,
(iii) the actual level of production and operating hours of the Project and other operating and
performance data and (iv) the O&M Costs and the Capital Expenditures incurred during such fiscal
quarter with a comparison to budgeted amounts for such costs.

          5.6 Maintenance of Existence; Properties; Inspections.

                    (a) Except as otherwise expressly permitted under this Agreement, Borrower shall (i)
maintain and preserve (A) its existence as a California limited liability company and (B) all
material rights, privileges and franchises necessary or desirable in the normal conduct of its
business and (ii) engage only in the businesses permitted under Section 6.5.

                    (b) Borrower shall (i) perform and observe its obligations under the Project Contracts to
which Borrower is a party, and the applicable Necessary Project Permits in Borrower’s name and (ii)
preserve, protect and defend its rights, under such Project Contracts, and Necessary Project
Permits, including prosecution of suits to enforce any right of Borrower thereunder and enforcement
of any claims with respect thereto, except where failure to do so could not reasonably be expected
to have a Material Adverse Effect or a Project Material Adverse Effect.

                    (c) Borrower shall permit employees or agents of Lender at any reasonable time to inspect any
and all Collateral for the Loan (subject to the terms of the Major Project Contracts) and
Borrower’s other properties and to examine or audit Borrower’s books, accounts, and records and to
make copies and memoranda of such books, accounts, and records. If Borrower now or at any time
hereafter maintains any records (including without limitation computer generated records and
computer software programs for the generation of such records) in the possession of a third party,
Borrower, upon request of Lender, shall notify such party to permit Lender free access to such
records at all reasonable times and to provide Lender with copies of any records it may request,
all at Borrower’ expense.

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          5.7 Separate Existence. Borrower shall (a) maintain entity records and books of account
separate from those of any other entity which is an Affiliate of Borrower, (b) not commingle its
funds or assets with those of any other entity which is an Affiliate of Borrower, (c) file its own
Tax returns as may be required under applicable Governmental Rules and pay any Taxes required to be
paid under applicable Governmental Rules, (d) at all times conduct its business solely in its own
name in a manner not misleading to other Persons as to its identity and (e) provide that its board
of directors or other analogous governing body will hold all appropriate meetings to authorize and
approve Borrower’s actions, which meetings will be separate from those of other entities.

          5.8 Insurance.

                    (a) Borrower shall maintain fire and other risk insurance, public liability insurance,
and such other insurance as Lender may require with respect to Borrower’ properties and operations,
in form, amounts, coverages and with insurance companies acceptable to Lender, as further set forth
on Schedule 5.8 and apply any insurance proceeds received in accordance with the Depositary
Agreement. Borrower, upon request of Lender, will deliver to Lender from time to time the policies
or certificates of insurance in form satisfactory to Lender, including stipulations that coverages
will not be cancelled or diminished without at least 30 days’ (or 10 days’ in the event of a
failure to pay premiums) prior written notice to Lender. Each insurance policy also shall include
an endorsement providing that coverage in favor of Lender will not be impaired in any way by any
act, omission or default of Borrower or any other Person. In connection with all policies covering
assets in which Lender holds or is offered a security interest for the Term Loan, Borrower will
provide Lender with such lender’s loss payable or other endorsements as Lender may require.

                    (b) Borrower shall furnish to Lender, upon request of Lender, reports on each existing
insurance policy showing such information as Lender may reasonably request, including without
limitation the following: (i) the name of the insurer; (ii) the risks insured; (iii) the amount of
the policy; (iv) the properties insured; (v) the then current property values on the basis of which
insurance has been obtained, and the manner of determining those values; and (vi) the expiration
date of the policy. In addition, upon request of Lender (however not more often than annually),
Borrower will have an independent appraiser satisfactory to Lender determine, as applicable, the
actual cash value or replacement cost of any Collateral. The cost of such appraisal shall be paid
by Borrower.

          5.9 Taxes, Charges and Liens. Borrower shall pay and discharge when due all of its
indebtedness and obligations (and all utility and other charges incurred in the operation,
maintenance, use, occupancy and upkeep of the Project), including without limitation all Taxes of
every kind and nature, imposed upon Borrower or its properties, income, or profits, prior to the
date on which penalties would attach, and all lawful claims that, if unpaid, might become a lien or
charge upon Borrower’s properties, income, or profits; provided however, that Borrower will not be
required to pay and discharge any such Tax so long as (i) the legality of the same shall be
contested in good faith by appropriate proceedings, and (ii) Borrower shall have established on
Borrower’s books adequate reserves with respect to such contested Tax in accordance with GAAP.
Borrower is and shall remain a Pass-Through Entity. No Loan Party shall have any nexus or other
taxable presence outside the United States, any trade or business or permanent establishment
outside the United States or any other connection to a jurisdiction outside the United States that
could reasonably be expected to subject it

17

 

to any requirement to deduct or withhold any Tax with respect to any payment made pursuant to
any Loan Document.

          5.10 Performance; Major Project Contracts. Borrower shall perform and comply, in a
timely manner, with all terms, conditions, and provisions set forth in this Agreement and the other
Loan Documents, and in all other instruments and agreements between Borrower and Lender. Borrower
shall (i) comply in all material respects with Borrower’s obligations under the Major Project
Contracts to which it is a party and (ii) enforce all of Borrower’s rights and remedies under the
Major Project Contracts.

          5.11 Operations.

                    (a) Borrower shall (i) keep, operate and maintain the Project, or cause the same to be
kept, in good operating condition consistent in all material respects with the Loan Documents, all
applicable Project Contracts and Necessary Project Permits, Prudent Industry Practices, the
then-current Annual Operating Budget and Legal Requirements, and make or cause to be made all
repairs (ordinary wear and tear excepted) necessary to keep the Project in such condition.

                    (b) Borrower shall maintain executive and management personnel with substantially the same
qualifications and experience as the present executive and management personnel; provide written
notice to Lender of any change in executive and management personnel; and conduct its business
affairs in a reasonable and prudent manner.

          5.12 Compliance with Governmental Requirements; Necessary Project Permits. Borrower
shall comply with all Legal Requirements, now or hereafter in effect, of all Governmental
Authorities applicable to the conduct of Borrower’s properties, businesses and operations, and to
the use or occupancy of the Collateral, including, without limitation, obtaining, maintaining and
complying with all Necessary Project Permits in Borrower’s name. Borrower may contest in good
faith any such law, ordinance, or regulation and withhold compliance during any proceeding,
including appropriate appeals, so long as Borrower has notified Lender in writing prior to doing so
and so long as, in Lender’s sole opinion, Lender’s interests in the Collateral are not jeopardized.
Lender may require Borrower to post adequate security or a surety bond, reasonably satisfactory to
Lender, to protect Lender’s interest.

          5.13 Environmental Compliance and Reports; Environmental Studies.

                    (a) Borrower shall comply in all material respects with any and all Environmental Laws;
not cause or permit to exist, as a result of an intentional or unintentional action or omission on
Borrower’s part or on the part of any third party, on property owned and/or occupied by Borrower,
any environmental activity where damage may result to the environment, unless such environmental
activity is pursuant to and in compliance with the conditions of a permit issued by the appropriate
federal, state or local governmental authorities; shall furnish to Lender promptly and in any event
within 30 days after receipt thereof a copy of any notice, summons, lien, citation, directive,
letter or other communication from any governmental agency or instrumentality concerning any
intentional or unintentional action or omission on Borrower’s part in connection with any
environmental activity whether or not there is damage to the environment and/or other natural
resources.

                    (b) Borrower shall promptly conduct and complete, at Borrower’s expense, all such
investigations, studies, samplings and testings, to the extent permitted by law, as may be
reasonably requested by Lender or any governmental authority relative to any substance, or any
waste or by-product

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of any substance defined as a Hazardous Material under applicable federal, state, or local
law, rule, regulation, order or directive, at or affecting any property or any facility owned,
leased or used by Borrower.

          5.14 U.S.A. Patriot Act. Borrower shall provide Lender with all information regarding
Borrower, to the extent requested, required by Lender to comply with applicable “know your
customer” laws and Anti-Terrorism Laws, including the U.S.A. Patriot Act.

          5.15 Additional Assurances. Borrower shall make, execute and deliver to Lender such
promissory notes, mortgages, deeds of trust, security agreements, assignments, financing
statements, instruments, documents and other agreements as Lender or its attorneys may reasonably
request to evidence and secure the Term Loan and to perfect all Liens and shall furnish such
additional information and statements, as Lender may request from time to time.

ARTICLE VI.

Negative Covenants

          Borrower covenants and agrees with Lender that from the Closing Date through the Discharge
Date, Borrower shall abide by the following negative covenants:

          6.1 Indebtedness and Contingent Liabilities. Borrower shall not incur, create, assume or
permit to exist any Indebtedness, including, but not limited to, as surety, guarantor or
accommodation endorser for the obligation of any other Person, other than Permitted Debt.

          6.2 Liens. Borrower shall not create, assume or permit to exist any Lien on or with
respect to the Collateral other than Permitted Liens or (b) any Lien on Borrower’s Equity Interests
other than the Liens granted under the Loan Documents.

          6.3 Restricted Payments. Borrower shall not make any payments which are Restricted
Payments, other than as permitted in the Depositary Agreement.

          6.4 Sale of Assets. Other than pursuant to the terms of the Site Agreement,
Borrower shall not sell, lease, transfer of otherwise dispose of any of its assets or properties,
other than (a) the sale of Power or Environmental Attributes (but solely to the extent that such
Environmental Attributes are not necessary for the operation of the Project in accordance with
Prudent Industry Practices, Governmental Rules and the terms of any Project Contract); or (b) sales
or dispositions of materials and equipment that are worn out, obsolete or no longer useful.

          6.5 Business Activities. Borrower shall not engage in activities other than (a) the
ownership, development, construction, operation, financing and leasing of the Project and any
activities incidental to the foregoing, (b) the other activities contemplated by the Transaction
Documents, and (c) activities incidental to the foregoing. Borrower shall not (y) create, form or
acquire any subsidiary or (z) enter into any partnership or joint venture.

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          6.6 No Liquidation, Merger or Consolidation. Other than pursuant to the terms of
the Site Agreement, Borrower shall not liquidate, wind-up or dissolve, or sell, lease or otherwise
transfer or dispose of all or substantially all of its property, assets or business or combine,
merge or consolidate with or into any other entity, or change its legal form, or make any election
to be treated as other than a Pass-Through Entity or implement any material acquisition or purchase
of assets consisting of a business or line of business from any Person, or change the nature of its
business.

          6.7 Lease Transactions. Borrower shall not enter into any transaction for the lease
of any assets, whether operating leases, capital leases or otherwise, other than any lease
constituting Permitted Debt.

          6.8 Investments. Borrower shall not make any investment of funds (whether by
purchase of stocks, bonds, notes or other securities, loan, extension of credit, advance or
otherwise) other than (a) Permitted Investments of funds in Borrower Accounts in accordance with
the Depositary Agreement and (b) Capital Expenditures permitted under Section 6.18.

          6.9 Transactions with Affiliates. Borrower shall not directly or indirectly enter
into any transaction or series of transactions with or for the benefit of an Affiliate, other than
(a) transactions pursuant to and in connection with the Major Project Contracts, (b) transactions
in the ordinary course of business of Borrower on terms no less favorable to Borrower than those
which would be included in an arm’s-length transaction with a non-Affiliate and disclosed to Lender
in writing, and (c) the payment of Restricted Payments expressly permitted under Section
6.3.

          6.10 Regulations. Borrower shall not directly or indirectly apply any part of the
proceeds of the Term Loan or other extensions of credit hereunder or other revenues to the
purchasing or carrying of any Margin Stock.

          6.11 Fiscal Year, Name, Location and EIN. Borrower shall not change (a) Borrower’s
fiscal year, name or federal employer identification number without Lender’s consent (which consent
shall not be unreasonably withheld, delayed or conditioned) or (b) the location of Borrower’s
principal place of business without 30 days prior written notice to Lender.

          6.12 Accounts. Borrower shall not maintain any accounts other than the Borrower
Accounts.

          6.13 Hazardous Materials. Borrower shall not treat, store, use or Release any
Hazardous Material in, on or at any of the properties or facilities owned or leased by Borrower
(except for inventories of substances that are used or are to be used in the ordinary course of
business of Borrower (which inventories have been stored and used and wastes disposed of in
material compliance with all applicable Permits and Environmental Laws)), except as could not
reasonably be expected to expose Lender or Borrower to material liability. In the event of any
such Release, Borrower shall conduct and complete any investigation, study, sampling and testing,
and undertake any

20

 

corrective, cleanup, removal, response, remedial or other action necessary to identify,
report, remove and remediate all Hazardous Material Released at, on, in, under or from the Project
or applicable Real Property, to the extent required by and in accordance in all material respects
with the requirements of all Environmental Laws.

          6.14 Hedging Agreements. Borrower shall not enter into or become a party to any
Hedging Agreement.

          6.15 Amendments to and Termination of Certain Documents. Borrower shall not:

                    (a) cancel or terminate any Major Project Contract to which Borrower is a party or
consent to or accept any cancellation or termination thereof, amend or otherwise modify any Major
Project Contract to which Borrower is a party or give any consent, waiver or approval thereunder
(other than any amendments, modifications, consents, waivers or approvals of an administrative
nature or otherwise immaterial), waive any material default under or material breach of any Major
Project Contract to which Borrower is a party, or agree in any manner to any other amendment,
modification or change of any term or condition of any Major Project Contract to which Borrower is
a party; provided, that: (i) the extension of the term of a Major Project Contract on substantially
the same terms and conditions then in effect (or on more favorable terms and conditions to
Borrower, taken as a whole), taken as a whole, shall be deemed to not violate this Section
6.15; and (ii) no such cancellation, termination, waiver, approval or consent of or under a
Major Project Contract shall constitute a Default or an Event of Default if Borrower enters into a
Replacement Major Project Contract within 30 days thereafter; or

                    (b) permit the amendment, supplement, modification or waiver of any provision of the Organic
Documents of Borrower in any material respect.

          6.16 Additional Major Project Contracts. Without the written consent of Lender, Borrower
shall not enter into, become a party to, or become liable under any Additional Major Project
Contract (with any series of related Major Project Contracts or other Project Contracts entered
into as part of a single transaction or series of related transactions to be considered as one
Additional Major Project Contract for purposes of this Section 6.16).

          6.17 O&M Contract.

                    (a) Borrower
shall not amend the O&M Contract unless Lender shall have provided
prior written consent thereto (which consent shall not be unreasonably withheld, delayed or
conditioned).

                    (b) Borrower shall not consent, without Lender’s prior written approval (which approval shall
not be unreasonably withheld, delayed or conditioned), to any settlement or waiver by the
Contractor of any claim, proceeding, warranty, damages or guaranty which could reasonably be
expected to materially adversely affect the rights or interests of Borrower.

          6.18 Capital Expenditures; Expansion. Borrower shall not make any Capital Expenditures
other than any (a) Capital Expenditures to the extent paid solely with the proceeds of Voluntary
Equity Contributions or the proceeds distributed pursuant to the Depositary Agreement, (b)
Necessary Capital Expenditures and (c) Capital Expenditures set forth in the applicable Annual
Operating Budget, not in excess by more than 105% of the amounts set forth in such Annual Operating
Budget for Capital Expenditures. Borrower shall not expand, repower or otherwise increase the
capacity of the Project beyond the levels generally contemplated by the Base Case Projections, or

21

 

undertake any activities in furtherance thereof, enter into any contract, commitment or other
binding arrangement in respect thereof, apply for, modify or seek modification of any Permit with
respect thereto, or expend any money in furtherance of any of the foregoing, in each case, without
the written consent of Lender (which consent shall not be unreasonably withheld, delayed or
conditioned).

          6.19 No Recapture Event. Borrower shall not take any action or fail to take an
action that would cause any Cash Grant to be subject to a Recapture Event, including the issuance,
sale, assignment or transfer of any direct or indirect Equity Interest in Borrower to any
Disqualified Person.

          6.20 Tax Credits. Unless (a) Lender shall have consented in writing (which consent
shall not be unreasonably withheld, delayed or conditioned) and (b) there shall be no material
adverse effect on the interests of Lender in respect of the Transactions resulting therefrom or
reasonably expected to result therefrom, Borrower shall not claim, or permit or cause to be
claimed, any federal tax credit (including under Section 45 or Section 48 of the Code) (the
“Tax Credits”) with respect to any portion of the Project constituting qualifying energy
property for purposes of the Cash Grant or any property described in the Cash Grant Application.

          6.21 Energy Regulatory Status. Without the consent of Lender, the Project shall
retain status as a QF so long as necessary to be eligible for the exemptions from regulation
available to QFs and the owners of QFs under PUHCA and the FPA.

ARTICLE VII.

Events of Default

          7.1 Events of Default. The occurrence of any of the following events shall constitute an
event of default hereunder (each, an “Event of Default”):

                    (a) Misrepresentations. Any representation or warranty made or deemed made by
Borrower in any Loan Document, or any representation, warranty, statement or information contained
in any report, certificate, financial statement or other document furnished by or on behalf of
Borrower in connection with or pursuant to any Loan Document, shall prove to have been false or
misleading in any material respect when so made, deemed made or furnished by Borrower.

                    (b) Principal Payment Default. Default shall be made in the payment of any principal
of the Term Loan when and as the same shall become due and payable, whether at the due date thereof
or at a date fixed for prepayment thereof or by acceleration thereof.

                    (c) Interest and Fee Payment Default. Default shall be made in the payment of any
interest on the Term Loan or in the payment of any fee or any other amount (other than an amount
referred to in (b) above) due under any Loan Document, when and as the same shall become due.

                    (d) Immediate Covenant Default. Default shall be made in the due observance or
performance by Borrower of any covenant, condition or agreement contained in Section 5.1
(Use of Proceeds), Section 5.3(d) (Notices — Defaults and Events of Default), Section
5.4(a) (Financial Statements), Section 5.6(a) (Maintenance of Existence), Section
5.8 (Insurance), Section 5.14 (U.S.A. Patriot Act); and Article VI (Negative
Covenants).

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                    (e) Covenant Defaults with Cure. Default shall be made in the due observance or
performance by Borrower of any other covenant, condition or agreement under the Loan Documents
(other than those listed in paragraphs (b), (c) and (d) above) and such default shall continue
unremedied for a period of 30 days after notice thereof from Lender to Borrower; provided, that, if
(1) such breach or default cannot be cured within such 30-day period (or such lesser period of
time, as the case may be), (2) such breach or default is reasonably susceptible of cure within 90
days after such breach or default, (3) Borrower is proceeding with its best efforts to cure such
breach or default, and (4) Lender shall have received a certificate of a Responsible Officer of
Borrower to the effect of clauses (1), (2), and (3) above and stating what action Borrower is
taking to cure such breach or default, then such 30-day cure period (or such lesser period of time,
as the case may be) shall be extended to such date, not to exceed a total of 90 days, as shall be
necessary for Borrower diligently to cure such breach or default.

                    (f) Non-Payment; Cross-Acceleration. (i) A default shall occur in the payment when
due and all applicable grace periods shall have expired, whether by acceleration or otherwise, of
any Indebtedness (other than the Term Loan) of Borrower in an aggregate principal amount or
agreement value exceeding $50,000, or (ii) a default shall occur in the performance or observance
of any obligation or condition with respect to such Indebtedness if the effect of such default is
to accelerate the maturity of such Indebtedness or terminate such Indebtedness.

                    (g) Involuntary Bankruptcy. An involuntary proceeding shall be commenced or an
involuntary petition shall be filed in a court of competent jurisdiction seeking (i) relief in
respect of Borrower, or of a substantial part of the property or assets of Borrower, under the U.S.
Bankruptcy Code, as now constituted or hereafter amended, or any other federal, state or foreign
bankruptcy, insolvency, receivership or similar law, (ii) the appointment of a receiver, trustee,
custodian, sequestrator, conservator or similar official for Borrower for a substantial part of the
property or assets of Borrower, or (iii) the winding-up or liquidation of Borrower, and, in each
case, such proceeding or petition shall continue undismissed for 60 days or an order or decree
approving or ordering any of the foregoing shall be entered.

                    (h) Voluntary Bankruptcy. Borrower shall (i) voluntarily commence any proceeding or
file any petition seeking relief under the U.S. Bankruptcy Code, as now constituted or hereafter
amended, or any other federal, state or foreign bankruptcy, insolvency, receivership or similar
law, (ii) consent to the institution of, or fail to contest in a timely and appropriate manner, any
proceeding or the filing of any petition described in paragraph (g) above, (iii) apply for, request
or consent to the appointment of a receiver, trustee, custodian, sequestrator, conservator or
similar official for Borrower or for a substantial part of the property or assets of Borrower,
respectively, (iv) file an answer admitting the material allegations of a petition filed against it
in any such proceeding, (v) make a general assignment for the benefit of creditors or (vi) become
unable, admit in writing its inability or fail generally to pay its debts as they become due.

                    (i) Judgments. One or more judgments or orders for the payment of money in excess of
$50,000 (inclusive of any judgment in favor of the United States Treasury Department arising from
the occurrence of a Recapture Event but exclusive of judgment amounts covered by insurance) shall
be rendered against Borrower and either (i) enforcement proceedings shall have been commenced by
any creditor upon such judgment or order and shall have continued for a period of 60 consecutive
days without a stay of enforcement or (ii) there shall be any period of 60 consecutive days during
which a stay of enforcement of such judgment or order, by reason of a pending appeal or otherwise,
shall not be in effect with respect to Borrower, as applicable.

                    (j) ERISA. One or more ERISA Events shall have occurred that, individually or in the
aggregate, could reasonably be expected to result in liability to Borrower or its ERISA Affiliates
in excess of $50,000.

                    (k) Loan Documents. (i) Any Loan Document shall cease to be in full force and effect
or shall be declared void by a Governmental Authority, or any party thereto (other than Lender)
shall claim such unenforceability or invalidity or (ii) any security interest in the Collateral
purported to be

23

 

created by any Security Document shall fail or cease to be, or shall be asserted in writing by
Borrower not to be, a valid and perfected security interest (having the priority required by this
Agreement and the relevant Security Document) in the securities, assets or properties covered
thereby.

                    (l) Loss of QF Status. The Project shall cease to be a QF and such event has, or
could reasonably be expected to have, a Material Adverse Effect.

                    (m) Abandonment of Projects; Loss Events. (i) The operation of the Project shall have
been abandoned for a period of at least 30 consecutive days (provided, that suspension of the
operation of a Project resulting from (1) scheduled maintenance of a Project, (2) repairs to a
Project, whether or not scheduled or (3) a forced outage or scheduled outage of a Project shall not
constitute abandonment of a Project so long as Borrower is diligently attempting to end such
suspension) or (ii) any material portion of Borrower’s property is damaged, seized or appropriated
without fair value being paid therefor such as to allow replacement of such property and/or
prepayment of the Obligations in accordance with the Depositary Agreement and to allow Borrower to
continue satisfying its obligations hereunder and under the other Transaction Documents, after
giving effect to any Voluntary Equity Contributions made by or on behalf of Borrower after the
Closing Date and applied to such replacement and/or prepayment and applicable insurance coverage
for such event.

                    (n) Major Project Contracts. 

                              (i) Borrower Breach. Borrower shall be in material breach of, or in material default
under, a Major Project Contract and such breach or default shall continue unremedied for the lesser
of (A) a period of 30 days from the time Borrower obtains Knowledge of such breach or default and
(B) such period of time under such Major Project Contract which Borrower has available to it in
which to remedy such breach or default; provided, that, if (1) such breach or default cannot be
cured within such 30-day period (or such lesser period of time, as the case may be), (2) such
breach or default is reasonably susceptible of cure within 90 days after such breach or default,
(3) Borrower is proceeding with diligence and in good faith to cure such breach or default, (4) the
existence of such breach or default has not had and could not, after considering the nature of the
cure, be reasonably expected to give rise to termination by any counterparty to such Major Project
Contract or to otherwise have a Material Adverse Effect or a Project Material Adverse Effect with
respect to the Project and (5) Lender shall have received a certificate of a Responsible Officer of
Borrower to the effect of clauses (1), (2), (3) and (4) above and stating what action Borrower is
taking to cure such breach or default, then such 30-day cure period (or such lesser period of time,
as the case may be) shall be extended to such date, not to exceed a total of 90 days, as shall be
necessary for Borrower diligently to cure such breach or default.

                              (ii) Third Party Breach. Any Person other than Borrower shall be in material breach
of, or in material default under, a Major Project Contract and such breach or default shall
continue unremedied for a period of 30 days from the time Borrower obtains Knowledge of such breach
or default; provided, that, if (A) such breach or default cannot be cured within such 30-day
period, (B) such breach or default is reasonably susceptible of cure within 90 days or Borrower can
reasonably enter into a Replacement Major Contract within 90 days, (C) the breaching Person is
proceeding with diligence and in good faith to cure such breach or default, and (D) the existence
of such breach or default has not had and could not, after considering the nature of the cure, be
reasonably expected to result in a Material Adverse Effect, then such 30-day cure period shall be
extended to such date, not to exceed a total of 90 days, as shall be necessary for such breaching
Person diligently to cure such breach or default or for Borrower to enter into a Replacement Major
Contract.

                              (iii) Termination. (A) Any Major Project Contract shall terminate or shall be
declared null and void (other than any termination (1) upon fulfillment of such party’s obligations
thereunder, (2) upon the scheduled expiration of the term of such Major Project Contract or (3)
permitted under Section 6.15(a)), or (B) any provision in any Major Project Contract shall
for any reason cease to be valid and binding on any party thereto (other than Borrower), other than
any such failure to be valid and binding which could not reasonably be expected to have a Material
Adverse Effect and except, in the

24

 

case of either of clause (A) or (B) above, to the extent that Borrower enters into a
Replacement Major Project Contract in accordance with Section 6.15(a).

                    (o) Change of Control. A Change of Control shall have occurred and be continuing.

                    (p) Recapture Liabilities. Any Recapture Liabilities shall have been assessed against
Borrower or otherwise in respect of the Project, and Borrower shall have failed to pay, or cause to
be paid, such Recapture Liabilities or other amounts in full on or prior to the deadline for
payment thereof (as set forth in any notice or demand of the United States Treasury Department, if
applicable), unless such Recapture Liabilities are being contested in good faith (without payment
and a claim for a refund unless funded by a Person other than Borrower in a manner reasonably
acceptable to Lender) by appropriate proceedings and for which appropriate reserves have been made
in accordance with GAAP.

          7.2 Remedies; Application of Proceeds.

                    (a) Upon the occurrence and during the continuation of an Event of Default and at any time
thereafter during the continuation of such Event of Default Lender shall, by notice to Borrower,
take any or all of the following actions, at the same or different times:

                              (i) terminate forthwith the Commitment;

                              (ii) declare the Term Loan then outstanding to be forthwith due and payable in whole or in
part, whereupon the principal of the Term Loan so declared to be due and payable, together with
accrued interest thereon and any unpaid accrued fees and all other liabilities of Borrower accrued
hereunder and under any other Loan Document, shall become forthwith due and payable, without
presentment, demand, protest or any other notice of any kind, all of which are hereby expressly
waived by Borrower, anything contained herein or in any other Loan Document to the contrary
notwithstanding;

                              (iii) exercise the rights and remedies under the Security Documents;

                              (iv) without any obligation to do so, make disbursements of the Term Loan to or on behalf of
Borrower to cure any Event of Default hereunder and to cure any default and render any performance
under any Project Contracts (provided that access to the Project is pursuant to the Site Agreement)
as Lender, in its sole discretion, may consider necessary or appropriate, whether to preserve and
protect the Collateral or Lender’s interests therein or for any other reason, and all sums so
expended, together with interest on such total amount at the rate provided in the second sentence
of Section 2.6, shall be repaid by Borrower to Lender on demand and shall be secured by the
Loan Documents;

                              (v) exercise all other rights and remedies available to a secured creditor under the UCC and
other applicable Governmental Rules; provided, that, notwithstanding anything contained herein or
in any other Loan Document to the contrary, in the case of (A) any event with respect to Borrower
described in paragraph (g) or (h) of Section 7.1 or (B) any event described in paragraph
(k) of Section 7.1, the Commitment shall automatically terminate, the principal of the Term
Loan then outstanding, together with accrued interest thereon and any unpaid accrued fees and all
other liabilities of Borrower accrued hereunder and under any other Loan Document, shall
automatically become due and payable without presentment, demand, protest or any other notice of
any kind, all of which are hereby expressly waived by Borrower;

                              (vi) without any obligation to do so, to take any and all action and to render any performance
or cause any performance to be rendered under any Project Contracts and to otherwise continue the
operations of the Project as Lender in its sole discretion may consider necessary or appropriate,
in which case Borrower shall provide unfettered access to the Project to permit Lender from taking
such action as Lender in its sole discretion may consider necessary or appropriate to continue the
operations of the Project.

25

 

                    (b) Upon the occurrence and during the continuance of an Event of Default, all “proceeds” (as
defined in the UCC) (net of the costs and expenses reasonably incurred in connection with the
realization of the Collateral and any taxes, assessments or permitted prior Liens with respect to
the Collateral) received by Lender under this Agreement shall be applied in the following order:

                              (i) First, to reimburse Lender for all fees, expenses and indemnities and other amounts
payable to Lender in accordance with this Agreement and the other Loan Documents;

                              (ii) Second, to the payment of that portion of the Obligations constituting fees and usual and
customary expenses owed to Lender;

                              (iii) Third, to the payment of accrued interest on the Term Loan due and owing Lender;

                              (iv) Fourth, to the payment of principal in respect of the Term Loan;

                              (v) Fifth, to the payment of all remaining outstanding Obligations (including indemnities and
other amounts), to be applied by Lender; and

                              (vi) Sixth, to the extent that any “proceeds” (as defined in the UCC) remain after the full
payment in cash of amounts set forth in clauses (i) through (v) above, to Borrower or as required
by applicable Governmental Rules.

ARTICLE VIII.

Miscellaneous

          8.1 Amendments. This Agreement, together with any Related Documents, constitutes the
entire understanding and agreement of the parties as to the matters set forth in this Agreement.
No alteration of or amendment to this Agreement shall be effective unless given in writing and
signed by the party or parties sought to be charged or bound by the alteration or amendment.

          8.2 Expenses; Indemnity.

                    (a) Borrower agrees to pay all reasonable and documented out-of-pocket expenses incurred
by (i) Lender in connection with the preparation of this Agreement and the other Loan Documents,
the administration of this Agreement and the other Loan Documents (including expenses incurred in
connection with due diligence and initial and ongoing Collateral examination and the reasonable
fees, disbursements and the charges for counsel in each jurisdiction where Collateral is located)
or in connection with any amendments, modifications or waivers of the provisions hereof or thereof
(whether or not the Transactions hereby contemplated shall be consummated) or (ii) Lender in
connection with the enforcement or protection of its rights in connection with this Agreement and
the other Loan Documents, in connection with the Term Loan made hereunder, including the reasonable
fees, charges and disbursements of the Independent Consultants, and attorneys for Lender.

                    (b) Borrower agrees to indemnify Lender and its respective directors, trustees, officers,
employees, affiliates, investment advisors and agents (each such Person being called an
“Indemnitee”) against, and to hold each Indemnitee harmless from, any and all losses,
claims, damages, liabilities and related expenses, including reasonable counsel fees, charges and
disbursements, incurred by or asserted against any Indemnitee arising out of, in any way connected
with, or as a result of (i) the execution or delivery of this Agreement or any other Loan Document
or any agreement or instrument contemplated hereby or thereby, the performance by the parties
hereto and thereto of their respective obligations hereunder or thereunder or the consummation of
the Transactions and the other transactions contemplated hereby, (ii) the use of the proceeds of
the Term Loan or (iii) any claim, litigation,

26

 

investigation or proceeding relating to any of the foregoing, whether or not any Indemnitee is
a party thereto; provided, that such indemnity shall not, as to any Indemnitee, be available to the
extent that such losses, claims, damages, liabilities or related expenses result (x) primarily from
the gross negligence or willful misconduct of such Indemnitee, as determined by the final judgment
of a court of competent jurisdiction or (y) from a claim brought by Borrower or any Affiliate
against an Indemnitee for breach in bad faith of such Indemnitee’s obligations hereunder or under
any other Loan Document, if Borrower or such other Person has obtained a final and nonappealable
judgment in its favor on such claim as determined by a court of competent jurisdiction. Subject to
and without limiting the generality of the foregoing sentence, Borrower agrees to indemnify each
Indemnitee against, and hold each Indemnitee harmless from, any and all losses, claims, damages,
liabilities and related expenses, including reasonable and documented counsel or consultant fees,
charges and disbursements, incurred by or asserted against any Indemnitee arising out of, in any
way connected with, or as a result of (A) any Environmental Claim to the extent related in any way
to Borrower, or (B) any actual or alleged presence, Release or threatened Release of Hazardous
Materials at, under, on or from any Real Property, any property owned, leased or operated by any
predecessor of Borrower, or, to the extent related in any way to Borrower, any property at which
Borrower has sent Hazardous Materials for treatment, storage or disposal; provided, that such
indemnity shall not, as to any Indemnitee, be available to the extent that such losses, claims,
damages, liabilities or related expenses result from the gross negligence or willful misconduct of
such Indemnitee or any of its Related Parties, as determined by the final judgment of a court of
competent jurisdiction. The provisions of this Section shall remain operative and in full force
and effect regardless of the expiration of the term of this Agreement, the consummation of the
transactions contemplated hereby, the repayment of any of the Obligations, the invalidity or
unenforceability of any term or provision of this Agreement or any other Loan Document, or any
investigation made by or on behalf of any Lender Party. All amounts due under this Section shall
be payable on written demand therefor accompanied by reasonable documentation with respect to any
reimbursement, indemnification or other amount requested. No Indemnitee shall be liable for, and
Borrower hereby agrees not to assert any claim against any Indemnitee, on any theory of liability,
for consequential, incidental, indirect, punitive or special damages arising out of or otherwise
relating to the Loan Documents, the Transactions, any of the transactions contemplated in the Loan
Documents or the actual or proposed use of the proceeds of the Term Loan.

          8.3 Right of Set-Off. If an Event of Default shall have occurred and be continuing,
Lender is hereby authorized at any time and from time to time, to the fullest extent permitted by
law, to set off and apply any and all deposits (general or special, time or demand, provisional or
final) at any time held and other indebtedness at any time owing Lender to or for the credit or the
account of Borrower, against any and all obligations of Borrower, now or hereafter existing under
this Agreement or any other Loan Document held by Lender, irrespective of whether or not Lender
shall have made any demand under this Agreement or such other Loan Document and although the
obligations may be unmatured. The rights of Lender under this Section are in addition to other
rights and remedies (including other rights of set-off) that Lender may have.

          8.4 Entire Agreement. This Agreement and the other Loan Documents constitute the
entire contract between the parties relative to the subject matter hereof. Any previous agreement
among or representations from the parties or their Affiliates with respect to the subject matter
hereof is superseded by this Agreement and the other Loan Documents. Nothing in this Agreement or
in the other Loan Documents, expressed or implied, is intended to confer upon any party other than
the parties hereto and thereto any rights, remedies, obligations or liabilities under or by reason
of this Agreement or the other Loan Documents.

27

 

          8.5 Counterparts. This Agreement may be executed in two or more counterparts, each
of which shall constitute an original but all of which, when taken together, shall constitute but
one contract. Delivery of an executed counterpart to this Agreement by facsimile transmission or
electric transmission in “.PDF” or comparable format shall be as effective as delivery of a
manually signed original.

          8.6 Caption Headings. Caption headings in this Agreement are for convenience
purposes only and are not to be used to interpret or define the provisions of this Agreement.

          8.7 Consent to Loan Participation. Borrower agrees and consents to Lender’s sale or
transfer, whether now or later, of one or more participation interests in the Loan to one or more
purchasers, whether related or unrelated to Lender. Lender may provide, without any limitation
whatsoever, to any one or more purchasers, or potential purchasers, any information or knowledge
Lender may have about Borrower or about any other matter relating to the Loan, and Borrower hereby
waives any rights to privacy Borrower may have with respect to such matters. Borrower additionally
waives any and all notices of sale of participation interests, as well as all notices of any
repurchase of such participation interests. Borrower also agrees that the purchasers of any such
participation interests will be considered as the absolute owners of such interests in the Loan and
will have all the rights granted under the participation agreement or agreements governing the sale
of such participation interests. Borrower further waives all rights of offset or counterclaim that
it may have now or later against Lender or against any purchaser of such a participation interest
and unconditionally agrees that either Lender or such purchaser may enforce Borrower’s obligation
under the Loan irrespective of the failure or insolvency of any holder of any interest in the Loan.
Borrower further agrees that the purchaser of any such participation interests may enforce its
interests irrespective of any personal claims or defenses that Borrower may have against Lender.

          8.8 Governing Law; Choice of Venue. THIS AGREEMENT WILL BE GOVERNED BY FEDERAL LAW
APPLICABLE TO LENDER AND, TO THE EXTENT NOT PREEMPTED BY FEDERAL LAW, THE LAWS OF THE STATE OF
CALIFORNIA WITHOUT REGARD TO ITS CONFLICTS OF LAW PROVISIONS. THIS AGREEMENT HAS BEEN ACCEPTED BY
LENDER IN THE STATE OF CALIFORNIA. IF THERE IS A LAWSUIT, BORROWER AGREES UPON LENDER’S REQUEST TO
SUBMIT TO THE JURISDICTION OF THE COURTS OF THE COURTS OF LOS ANGELES COUNTY, STATE OF CALIFORNIA.

          8.9 Waiver of Jury Trial. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION
DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT OR ANY OF THE
OTHER LOAN DOCUMENTS. EACH PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF
ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF LITIGATION, SEEK TO

28

 

ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE
BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND THE OTHER LOAN DOCUMENTS, AS APPLICABLE, BY, AMONG
OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

          8.10 No Waiver by Lender. Lender shall not be deemed to have waived any rights
under this Agreement unless such waiver is given in writing and signed by Lender. No delay or
omission on the part of Lender in exercising any right shall operate as a waiver of such right or
any other right. A waiver by Lender of a provision of this Agreement shall not prejudice or
constitute a waiver of Lender’s right otherwise to demand strict compliance with that provision or
any other provision of this Agreement. No prior waiver by Lender, nor any course of dealing
between Lender and Borrower, shall constitute a waiver of any of Lender’s rights or of Borrower’s
obligations as to any future transactions. Whenever the consent of Lender is required under this
Agreement, the granting of such consent by Lender in any instance shall not constitute continuing
consent to subsequent instances where such consent is required and in all cases such consent may be
granted or withheld in the sole discretion of Lender.

          8.11 Notices. Any notice required to be given under this Agreement shall be given
in writing, and shall be effective when actually delivered, when actually received by facsimile
(unless otherwise required by law), one (1) business day after deposit with a nationally recognized
overnight courier, or, if mailed, three (3) business days after deposit in the United States mail,
as first class, certified or registered mail postage prepaid, directed to the addresses shown near
the beginning of this Agreement. Any party may change its address for notices under this Agreement
by giving formal written notice to the other parties, specifying that the purpose of the notice is
to change the party’s address. For notice purposes, Borrower agrees to keep Lender informed at all
times of Borrower’s current address.

          8.12 Severability. If a court of competent jurisdiction finds any provision of this
Agreement to be illegal, invalid, or unenforceable as to any circumstance, that finding shall not
make the offending provision illegal, invalid, or unenforceable as to any other circumstance. If
feasible, the offending provision shall be considered modified so that it becomes legal, valid and
enforceable. If the offending provision cannot be so modified, it shall be considered deleted from
this Agreement. Unless otherwise required by law, the illegality, invalidity, or unenforceability
of any provision of this Agreement shall not affect the legality, validity or enforceability of any
other provision of this Agreement.

          8.13 Successors and Assigns. All covenants and agreements by or on behalf of any
party to this Agreement or any other Loan Documents shall bind such party’s successors and assigns
and shall inure to the benefit of the successors and assigns of the other parties hereto. Borrower
shall not, however, have the right to assign Borrower’s rights under this Agreement or any interest
therein, without the prior written consent of Lender, and any attempted assignment or transfer by
Borrower without such consent shall be null and void.

29

 

          8.14 Survival of Representations, Warranties and Covenants. Borrower understands
and agrees that in making the Term Loan, Lender is relying on all representations, warranties, and
covenants made by Borrower in this Agreement or in any certificate or other instrument delivered by
Borrower to Lender under this Agreement or the Loan Documents. Borrower further agrees that
regardless of any investigation made by Lender, all such representations, warranties and covenants
will survive the making of the Term Loan and delivery to Lender of the Loan Documents, shall be
continuing in nature, and shall remain in full force and effect until such time as Borrower’s
Indebtedness shall be paid in full, or until this Agreement shall be terminated in the manner
provided above, whichever is the last to occur; provided, that the expense reimbursement and
indemnification obligations Borrower contained herein shall survive the payment in full of the
principal and interest and all other Obligations hereunder and the termination of this Agreement.

          8.15 Interest Rate Limitation. Notwithstanding anything herein to the contrary, if
at any time the applicable interest rate, together with all fees and charges that are treated as
interest under applicable law (collectively, the “Charges”), as provided for herein or in
any other document executed in connection herewith, or otherwise contracted for, charged, received,
taken or reserved by Lender, shall exceed the maximum lawful rate (the “Maximum Rate”) that
may be contracted for, charged, taken, received or reserved by Lender in accordance with applicable
law, the rate of interest payable hereunder, together with all Charges payable to Lender, shall be
limited to the Maximum Rate, provided, that such excess amount shall be paid to such Lender on
subsequent payment dates to the extent not exceeding the legal limitation.

          8.16 Time is of the Essence. Time is of the essence in the performance of this
Agreement.

          8.17 U.S.A. Patriot Act. Lender hereby notifies Borrower that, pursuant to the
requirements of the U.S.A. Patriot Act, it is required to obtain, verify and record information
that identifies Borrower, which information includes the name and address of Borrower and other
information that will allow Lender to identify Borrower in accordance with the U.S.A. Patriot Act.

[Remainder of page intentionally blank; signature page follows this page]

30

 

          BORROWER ACKNOWLEDGES HAVING READ ALL THE PROVISIONS OF THIS TERM LOAN AGREEMENT AND BORROWER
AGREES TO ITS TERMS AS OF THE DATE FIRST SET FORTH ABOVE.

	 	 	 	 	 

	 	 	BORROWER:
	 
	 	 	 	 
	 	 	SOLAR TAX PARTNERS 2, LLC

a California limited liability company
	 
	 	 	 	 
	 

	 	By:
	 	Solar Power, Inc.
	 	 	a California corporation
	 	 	its Manager
	 
	 	 	 	 
	 

	 	By:	 	/s/ Jeffrey G. Winzeler
	 

	 	 	 	 
	 

	 	 	 	Jeffrey G. Winzeler, CFO
	 
	 	 	 	 
	 	 	LENDER:
	 
	 	 	 	 
	 	 	EAST WEST BANK
	 
	 	 	 	 
	 

	 	By:	 	/s/ Jacky To
	 

	 	 	 	 
	 

	 	 	 	Authorized Signer

[Signature Page to Term Loan Agreement]

 

 

Annex 1

Defined Terms

          “Additional Major Project Contract” shall mean each Major Project Contract or other
Project Contract entered into by, or assigned to, Borrower subsequent to the Closing Date.

          “Affiliate” shall mean, when used with respect to a specified Person, another Person
that directly, or indirectly through one or more intermediaries, Controls or is Controlled by or is
under common Control with the Person specified.

          “Agreement” shall have the meaning assigned to such term in the introductory paragraph
of this agreement.

          “Annual Operating Budget” shall have the meaning assigned to such term in Section
5.5(a).

          “Anti-Terrorism Laws” shall mean (a) the U.S.A. Patriot Act, (b) any of the foreign
assets control regulations of the United States Treasury Department (31 C.F.R., Subtitle B, Chapter
V, as amended) or any enabling legislation or executive order relating thereto, and (c) any other
laws relating to terrorism or money laundering.

          “Base Case Projections” shall mean the projections of Borrower’s operating results for
the Project (over a period ending no sooner than the date that is nine (9) years after the Placed
in Service Date) delivered to Lender on the Closing Date.

          “Board” shall mean the Board of Governors of the Federal Reserve System of the United
States of America.

          “Borrower” shall have the meaning assigned to such term in the introductory paragraph
of this Agreement.

          “Borrower Accounts” shall have the meaning assigned to such term in the Depositary
Agreement.

          “Borrower Operating Agreement” shall mean the Limited Liability Company Operating
Agreement of Borrower, as amended from time to time.

          “Business Day” shall mean any day that is not a Saturday, Sunday or other day on which
commercial banks in San Diego, California are authorized or required by law to remain closed.

          “Capital Expenditures” shall mean expenditures (including the aggregate amount of
Capital Lease Obligations) made by Borrower to acquire or construct fixed assets, plant and
equipment (including renewals, improvements and replacements, but excluding any such expenditures
that are paid out of Insurance Proceeds).

          “Capital Lease Obligations” of any Person shall mean the obligations of such Person to
pay rent or other amounts under any lease of (or other arrangement conveying the right to use) real
or personal property, or a combination thereof, which obligations are required to be classified and
accounted for as capital leases on a balance sheet of such Person under GAAP and, for purposes
hereof, the amount of such obligations at any time shall be the capitalized amount thereof at such
time determined in accordance with GAAP.

          “Cash Grant” shall mean, with respect to the Project, a United States Treasury
Department cash grant in lieu of the available renewable energy tax credits pursuant to Section 48
of the Internal Revenue Code under the terms of Section 1603 of the American Recovery and
Reinvestment Act of 2009 and the Cash Grant Guidance.

          “Cash Grant Application” shall mean the complete application of Borrower for the Cash
Grant with respect to the Project, together with any exhibits, schedules, attachments, reports or
other documents filed with such application, and any supplemental information and filings and
associated required registrations.

          “Cash Grant Guidance” shall mean Section 1603 of the American Recovery and
Reinvestment Act of 2009 and the United States Treasury Department’s program guidance publication
entitled “Payments for Specific Energy Property in Lieu of Tax Credits under the American Recovery
and Reinvestment Act of 2009,” dated July 2009 and revised in March of 2010, as the same may be
amended

A-1

 

or supplemented, and any other guidance, instructions or terms and conditions published or
issued by the United States Treasury Department in respect of the subject cash grants or any
application therefor.

          “Change in Law” shall mean (a) the adoption of any law, rule, treaty or regulation by
any Governmental Authority after the Closing Date, (b) any change in law, rule, treaty or
regulation or in the interpretation or application thereof by any Governmental Authority after the
Closing Date or (c) compliance by any Lender (or by any lending office of such Lender or by such
Lender’s holding company, if any) with any written request, guideline or directive (whether or not
having the force of law but if not having the force of law, then being one with which the relevant
party would customarily comply) of any Governmental Authority made or issued after the Closing
Date.

          “Change of Control” shall mean the occurrence of any of the following: at any time,
(a) the failure of Managing Member to directly own 100% of the outstanding Equity Interests in
Borrower or (b) the failure of the Managing Member to be the “Managing Member” of Borrower.

          “Charges” shall have the meaning assigned to such term in Section 8.15.

          “Closing Date” shall mean the date on which the conditions set forth in Section
4.1 shall have been satisfied or waived by Lender.

          “Code” shall mean the Internal Revenue Code of 1986, as amended from time to time.

          “Collateral” shall mean all collateral pledged, or in respect of which a Lien is
granted, pursuant to the Security Documents.

          “Commitment” shall mean the commitment of Lender to make the Term Loan.

          “Condemnation Proceeds” shall have the meaning assigned to such term in the Depositary
Agreement.

          “Contractor” shall mean Solar Power, Inc., a California corporation.

          “Control” shall mean the possession, directly or indirectly, of the power to direct or
cause the direction of the management or policies of a Person, whether through the ownership of
voting securities, by contract or otherwise, and “Controlling” and “Controlled”
shall have meanings correlative thereto.

          “Debt Service” shall mean, for any period, the sum of all scheduled interest,
scheduled principal, premiums (if any) and fees payable to any Lender Party during such period in
respect of all Indebtedness of Borrower.

          “Debt Service Reserve Account” shall have the meaning assigned to such term in the
Depositary Agreement.

          “Deed of Trust” shall mean the Easement Deed of Trust, Assignment of Rents, Security
Agreement and Fixture Filing, dated as of the Closing Date, made by Borrower in favor of Lender.

          “Default” shall mean any event or condition that upon notice, lapse of time or both
would constitute an Event of Default.

          “Depositary Agreement” shall mean the Depositary Agreement, dated as of the Closing
Date, by and among Borrower and Lender.

          “Discharge Date” shall mean the date on which this Agreement shall have terminated
(other than those provisions which shall survive such termination under Section 8.15), the
Commitment shall have been terminated or fully utilized and the principal of and interest on the
Loan, all Fees and all other expenses or amounts payable under any Loan Document shall have been
paid in full in cash (other than unasserted contingent payment obligations that by their nature
survive termination of the Loan Documents).

          “Disqualified Person” shall mean (a) any Federal, State, or local government (or any
political subdivision, agency, or instrumentality thereof); (b) any organization described in
Section 501(c) of the Code and exempt from tax under Section 501(a) of the Code; (c) any entity
referred to in paragraph (4) of section 54(j) of the Code; (d) any Person who is not a “United
States person” as defined in Section 7701(a)(30) of the Code (other than a foreign partnership or
foreign pass-through entity), unless such Person is a foreign person or entity that is subject to
United States federal income tax on more than 50% of the gross income for the taxable year derived
by such Person from Borrower; and (e) any partnership

A-2

 

or other Pass-Through Entity (including a single-member disregarded entity) other than a real
estate investment trust as defined in Section 856(a) of the Code or a cooperative organization
described in Section 1381(a) of the Code, any partner (or other holder of an equity or profits
interest) of which is a Disqualified Person; provided, that, if, and to the extent, the definition
of Disqualified Person under Section 1603(g) of the American Recovery and Reinvestment Act of 2009
or the Cash Grant Guidance is changed after the Closing Date, this definition of Disqualified
Person shall be interpreted to conform to such change, as of the effective date of such change.

          “Distribution Conditions” shall have the meaning assigned to such term in the
Depositary Agreement.

          “Dollars” or “$” shall mean lawful money of the United States of America.

          “Environment” shall mean ambient and indoor air, surface water and groundwater
(including potable water, navigable water and wetlands), the land surface or subsurface strata or
sediment, natural resources such as flora and fauna or as otherwise defined in any Environmental
Law.

          “Environmental Attributes” shall mean any and all, emissions reduction credits,
emission offsets, and tradeable emission allowances, howsoever entitled, under any present or
future federal, state or local law, regulation or bill or international or foreign emissions
trading program, directly attributable to the generation from the Projects and arising out of: (a)
any avoided emissions of pollutants to the air, soil or water such as sulfur dioxide (SO2),
nitrogen oxides (NOx), carbon monoxide (CO) and other pollutants; (b) any avoided emissions of
carbon dioxide (CO2), methane (CH4) and other greenhouse gases (GHGs) that have been determined by
the United Nations Intergovernmental Panel on Climate Change to contribute to the actual or
potential threat of altering the Earth’s climate by trapping heat in the atmosphere; (c) the
reporting rights to these avoided emissions such as Green Tag Reporting Rights accruing under
Section 1605(b) of The Energy Policy Act of 1992; and (d) any similar credits, offsets, allowances
and reporting rights; provided, that in no event shall the term “Environmental Attributes”
include the Cash Grants.

          “Environmental Claim” shall mean any and all actions, suits, demands, demand letters,
claims, Liens, notices of non-compliance or violation, notices of liability or potential liability,
investigations, proceedings, consent orders or consent agreements relating in any way to any
Environmental Law or the release of or human exposure to any Hazardous Material.

          “Environmental Indemnity” shall mean the Hazardous Materials Indemnification Agreement
dated as of the Closing Date made by Borrower in favor of Lender.

          “Environmental Law” shall mean all federal, state, local or foreign laws, including
common law, ordinances, regulations, rules, codes, orders, judgments or other requirements or rules
of law that relate to (a) the prevention, abatement or elimination of pollution, or the protection
of the Environment, natural resources or human health (to the extent relating to exposure to
Hazardous Materials), or natural resource damages, and (b) the use, generation, handling,
treatment, storage, Release, transportation or regulation of, or exposure to, Hazardous Materials,
including the Comprehensive Environmental Response Compensation and Liability Act, 42 U.S.C. §§
9601 et seq., the Endangered Species Act, 16 U.S.C. §§ 1531 et seq., the Solid Waste Disposal Act,
as amended by the Resource Conservation and Recovery Act, 42 U.S.C. §§ 6901 et seq., the Clean Air
Act, 42 U.S.C. §§ 7401 et seq., the Clean Water Act, 33 U.S.C. §§ 1251 et seq., the Toxic
Substances Control Act, 15 U.S.C. §§ 2601 et seq., the Emergency Planning and Community Right to
Know Act, 42 U.S.C. §§ 11001 et seq., each as amended, and their foreign, state or local
counterparts or equivalents.

          “Equity Interests” in any Person shall mean any and all shares, interests, rights to
purchase, warrants, options, participation or other equivalents of or interests in (however
designated) equity of such Person, including any preferred stock, any limited or general
partnership interest and any limited liability company membership interest.

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

          “ERISA Affiliate” shall mean any trade or business (whether or not incorporated) that,
together with Borrower, is treated as a single employer under Section 414(b) or (c) of the Code,
or, solely for

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purposes of Section 302 of ERISA and Section 412 of the Code, is treated as a single employer
under Section 414(b), (c), (m) or (o) of the Code.

          “ERISA Event” shall mean (a) the occurrence of any “reportable event” as defined in
Section 4043(c) of ERISA or the regulations issued thereunder, other than those events as to which
the 30-day notice period has been waived, with respect to a Plan; (b) any failure by any Plan to
satisfy the applicable minimum funding standards under Section 412 or 430 of the Code or Section
302 or 303 of ERISA, whether or not waived; (c) the filing pursuant to Section 412(c) of the Code
or Section 302(c) of ERISA of an application for a waiver of the minimum funding standard with
respect to any Plan, the failure to make by its due date a required installment under Section
430(j) of the Code with respect to any Plan or the failure to make any required contribution to a
Multiemployer Plan; (d) a determination that any Plan is, or is expected to be, in “at risk” status
(as defined in Section 303(i)(4) of ERISA or Section 430(i)(4) of the Code); (e) the incurrence by
Borrower or any ERISA Affiliate of any liability under Title IV of ERISA with respect to the
termination of any Plan; (f) the receipt by Borrower or any ERISA Affiliate from the PBGC or a plan
administrator of any notice relating to an intention to terminate any Plan or to appoint a trustee
to administer any Plan, or the occurrence of any event or condition which could reasonably be
expected to constitute grounds under ERISA for the termination of, or the appointment of a trustee
to administer, any Plan; (g) the incurrence by Borrower or any ERISA Affiliates of any liability
with respect to the withdrawal or partial withdrawal from any Plan or Multiemployer Plan; (h) the
receipt by Borrower or any ERISA Affiliate of any notice, or the receipt by any Multiemployer Plan
from Borrower or any ERISA Affiliate of any notice, concerning the imposition of Withdrawal
Liability or a determination that a Multiemployer Plan is, or is expected to be, in critical or
endangered status, within the meaning of Section 305 of ERISA; (i) the occurrence of a nonexempt
prohibited transaction (within the meaning of Section 4975 of the Code or Section 406 of ERISA)
which could reasonably be expected to result in material liability Borrower; or (j) the occurrence
of any other event or condition with respect to a Plan or a Multiemployer Plan with respect to
which Borrower is likely to incur material liability other than in the ordinary course.

          “Event of Default” shall have the meaning assigned to such term in Section
7.1.

          “Federal Power Act” shall mean the Federal Power Act, as amended, and FERC’s
implementing regulations related thereto.

          “FERC” shall mean the Federal Energy Regulatory Commission, or its successor.

          “Financial Contract” shall mean (1) an agreement (including terms and conditions
incorporated by reference therein) which is a rate swap agreement, basis swap, forward rate
agreement, commodity swap, commodity option, equity or equity index swap, bond option, interest
rate option, foreign exchange agreement, rate cap agreement, rate floor agreement, rate collar
agreement, currency swap agreement, cross-currency rate swap agreement, currency option, any other
similar agreement (including any option to enter into any of the foregoing); or (2) any combination
of the foregoing.”

          “Financial Officer” of any Person shall mean the Chief Financial Officer, principal
accounting officer, Treasurer, Assistant Treasurer or Controller of such Person.

          “Funds Flow Memorandum” shall mean the memorandum, dated _______________, 20__
delivered by Borrower to Lender with respect to the disbursement of funds on the Closing Date.

          “GAAP” shall mean generally accepted accounting principles in effect from time to time
in the United States, applied on a consistent basis.

          “Governmental Authority” shall mean any federal, state, local or foreign court or
governmental agency, authority, instrumentality or regulatory or legislative body.

          “Governmental Rule” shall mean, with respect to any Person, any law, rule, regulation,
ordinance, order, code, treaty, judgment, decree, directive, guideline, policy or similar form of
decision of any Governmental Authority binding on such Person.

          “Hazardous Materials” shall mean any substance that is regulated or could reasonably
be expected to lead to liability under any Environmental Law, including, but not limited to, all
pollutants, contaminants, chemicals, hazardous or toxic wastes, materials or substances and
constituents, explosive or radioactive substances, petroleum or petroleum distillates, asbestos in
any form that is or could

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reasonably be expected to become friable or asbestos containing
materials, polychlorinated biphenyls or radon gas, of any nature, all as defined or regulated under
any applicable Environmental Law.

          “Hedging Agreement” shall mean any prepaid Power purchase or sale agreement, or any
other agreement with respect to any swap, forward, future or derivative transaction or option or
similar agreement involving, or settled by reference to, one or more rates, currencies,
commodities, equity or debt instruments or securities, or economic, financial or pricing indices or
measures of economic, financial or pricing risk or value or any similar transaction or any
combination of these transactions.

          “Indebtedness” of any Person shall mean, without duplication, (a) all obligations of
such Person for borrowed money, (b) all obligations of such Person evidenced by bonds, debentures,
notes or similar instruments, (c) all obligations of such Person under conditional sale or other
title retention agreements relating to property or assets purchased by such Person, (d) all
obligations of such Person issued or assumed as the deferred purchase price of property or services
(other than trade liabilities and intercompany liabilities incurred in the ordinary course of
business and maturing within 90 days after the incurrence thereof), (e) any obligation, contingent
or otherwise, guaranteeing or having the economic effect of guaranteeing any Indebtedness of any
other Person by such Person, (f) all Capital Lease Obligations of such Person, (g) all outstanding
Hedging Agreements, and (h) the principal component of all obligations, contingent or otherwise, of
such Person (i) as an account party in respect of letters of credit, surety bonds or similar
arrangements and (ii) in respect of bankers’ acceptances. The Indebtedness of any Person shall
include the Indebtedness of any partnership in which such Person is a general partner, other than
to the extent that the instrument or agreement evidencing such Indebtedness expressly limits the
liability of such Person in respect thereof.

          “Indemnitee” shall have the meaning assigned to such term in Section 8.2(b).

          “Independent Consultants” shall mean the Independent Engineer, and the Insurance
Consultant.

          “Independent Engineer” shall mean a nationally recognized engineering consultant
approved by Lender and, so long as no Event of Default shall have occurred and is continuing,
reasonably satisfactory to Borrower.

          “Independent Engineer Report” shall mean the series of reports for the Project,
delivered by the Independent Engineer and including all exhibits, appendices and any other
attachments thereto.

          “Information” shall have the meaning assigned to such term in Section 3.5.

          “Insurance Consultant” shall mean a nationally recognized insurance consultant
selected Lender and, so long as no Event of Default shall have occurred and is continuing,
reasonably satisfactory to Borrower.

          “Insurance Proceeds” shall have the meaning assigned to such term in the Depositary
Agreement.

          “Interconnection Agreement” shall mean the interconnection agreement executed May 26,
2010 by and between Borrower and Site Host.

          “Interest Rate Derivative Documentation” shall mean each trade confirmation, and the
international swaps and derivative association master and schedule agreements executed in
connection with the Indebtedness”

          “Interest Rate Floor” shall have the meaning assigned to such term in Section 2.6(a).

          “Knowledge” or “Borrower’s Knowledge” shall mean the actual knowledge of any
member, manager, officer or director of Borrower or Managing Member, or any replacement member,
manager, officer or employee Borrower, Managing Member, or any of their Affiliates with a similar
scope of duties with respect to the Projects.

          “Legal Requirements” shall mean, as to any Person, any requirement under a Permit, and
any Governmental Rules, in each case, applicable to or binding upon such Person or any of its
properties or to which such Person or any of its properties is subject.

          “Lender” shall have the meaning assigned to such term in the introductory paragraph of
this Agreement.

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          “Lien” shall mean, with respect to any asset, (a) any mortgage, deed of trust, lien,
hypothecation, pledge, encumbrance, charge or security interest in or on such asset, (b) the
interest of a vendor or a lessor under any conditional sale agreement, capital lease or title
retention agreement (or any financing
lease having substantially the same economic effect as any of the foregoing) relating to such
asset and (c) in the case of securities, any purchase option, call or similar right of a third
party with respect to such securities.

          “Loan Documents” shall mean this Agreement, the Security Documents, the promissory
note issued pursuant to Article II, the Environmental Indemnity and any other agreement,
letter agreement or similar document entered into by or for the benefit of Lender, on the one hand,
and Borrower or one or more Affiliates of Borrower, on the other hand, in connection with the
transactions expressly contemplated by this Agreement.

          “MW” shall mean megawatts.

          “Major Project Contract Counterparty” shall mean any counterparty to Borrower under a
Major Project Contract.

          “Major Project Contracts” shall mean the following: (a) the PPA; (b) the Site
Agreement; (c) the O&M Contract; (d) the Interconnection Agreement, (e) the PBI Agreement, and (f)
each Additional Major Project Contract of substantially the same type and materiality as the Major
Project Contracts specified in any of clauses (a) through (e) above (including any Replacement
Major Project Contract for any Major Project Contract specified in clauses (a) through (e) above)
executed after the Closing Date.

          “Managing Member” shall refer to Solar Power, Inc., a California corporation.

          “Margin Stock” shall have the meaning assigned to such term in Regulation U.

          “Material Adverse Effect” shall mean a material adverse effect on (a) the business,
operations, properties, assets or condition (financial or otherwise) of Borrower, (b) the ability
of Borrower to fully and timely perform its respective material obligations under the Loan
Documents, (c) the legality, validity, binding effect or enforceability of the Loan Documents
against Borrower party thereto, or (d) the material rights and remedies available to, or conferred
upon, Lender under any Loan Documents.

          “Material Warranty” shall mean a warranty with respect to a material component
comprising, or a material service performed with respect to, the Project.

          “Maturity Date” shall mean the ninth anniversary of the Closing Date.

          “Maximum Rate” shall have the meaning assigned to such term in Section 8.15.

          “Monthly Payment Date” shall mean the first day of each calendar month.

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

          “Multiemployer Plan” shall mean a multiemployer plan as defined in Section 4001(a)(3)
of ERISA subject to the provisions of Title IV of ERISA and in respect of which Borrower or any
ERISA Affiliate is an “employer” as defined in Section 3(5) of ERISA.

          “Necessary Capital Expenditures” shall mean all Capital Expenditures certified in
writing by Borrower (and, if in excess of $25,000 for any Capital Expenditures or series of related
Capital Expenditures, confirmed in writing by the Independent Engineer) to be reasonably necessary
to permit Borrower to maintain and operate its respective assets and properties (including the
Project) in accordance with Legal Requirements and Prudent Industry Practices (but only such
Capital Expenditures as are required to satisfy such Legal Requirements and Prudent Industry
Practices).

          “Necessary Project Permit” shall mean, as of any date of determination, with respect
to the Project, any Permit (including any environmental, regulatory or other permit or approval)
that is (a) necessary to be obtained by or on behalf of Borrower at such time in light of the stage
of development, construction, expansion or operation of the Project to enable Borrower to
construct, test, operate, maintain, repair, own its interest in, or use the Project as contemplated
by the Transaction Documents, sell Power from such Project, enter into any Transaction Document or
consummate and/or perform any of the Transactions or any obligation contemplated hereby or thereby,
or (b) listed as such on Schedule 3.20.

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          “O&M Contract” shall mean that certain Operations and Maintenance Agreement dated as
of December 11, 2009, between Borrower and Contractor as amended by the Amendment to Operations and
Maintenance Agreement dated as of May 31, 2011, including any amendments thereto in accordance with
this Agreement.

          “O&M Costs” shall mean all actual cash operation and maintenance costs relating to the
Project or any applicable Necessary Project Permit held by Borrower, or required by any Legal
Requirement (but only such costs as are required to satisfy such Legal Requirement), incurred and
paid by Borrower for the Project in any particular calendar or fiscal year or other period to which
said term is applicable. Notwithstanding the foregoing “O&M Costs” shall not include (i)
distributions of any kind to any Affiliate of Borrower, (ii) non-cash charges, including
depreciation or obsolescence charges or reserves therefor, amortization of intangibles or other
bookkeeping entries of a similar nature, (iii) Capital Expenditures, (iv) payments for restoration
or repair of the Projects following a Casualty/Condemnation Event in accordance with the terms of
the Depositary Agreement, and (v) interest charges and charges for the payment or amortization of
principal of Indebtedness of Borrower.

          “Obligations” shall mean all amounts owing to Lender pursuant to the terms of this
Agreement or any other Loan Document, including but not limited to all collection costs and legal
expenses related thereto permitted by law, attorneys’ fees, arising from any and all debts,
liabilities and obligations of every nature or form, now existing or hereafter arising or acquired,
any present or future judgments against Borrower or any Guarantor, future advances, Term Loan or
transactions that renew, extend, modify, refinance, consolidate or substitute these debts,
liabilities and obligations whether: voluntarily or involuntarily incurred; due or to become due by
their terms or acceleration; absolute or contingent; liquidated or unliquidated; determined or
undetermined; direct or indirect; primary or secondary in nature or arising from a guaranty or
surety; secured or unsecured; joint or several or joint and several; evidenced by a negotiable or
non-negotiable instrument or writing; originated by Lender or another or others; barred or
unenforceable against Borrower or any guarantor for any reason whatsoever; for any transactions
that may be voidable for any reason); and originated then reduced or extinguished and then
afterwards increased or reinstated.

          “Organic Documents” shall mean, with respect to any Person, as applicable, its
certificate of incorporation, bylaws, certificate of partnership, partnership agreement,
certificate of formation, limited liability agreement and all shareholder agreements, voting trusts
and similar arrangements applicable to any such Person’s partnership interests, limited liability
company interests or authorized shares of capital stock.

          “Pass-Through Entity” shall mean an entity that is properly treated for U.S. federal
and applicable state, local and foreign income and franchise Tax purposes as (a) disregarded as an
entity separate from its owner or (b) a partnership.

          “PBGC” shall mean the Pension Benefit Guaranty Corporation referred to and defined in
ERISA.

          “PBI Agreement” shall mean the SMUD Solar Initiative Reservation Request with a
preparation date of February 5, 2010 with reference to Reservation Number CP-00467, SMUD Solar
Initiative Claim Form with a preparation date of May 25, 2010 with reference to Reservation Number
CP-00467, executed by Aerojet, Solar Power Inc., SMUD and Solar Tax Partners 2, LLC; and the SMUD
Solar Initiative Claim form dated May 25, 2010 with reference to Reservation Number CP-00467.

          “PBI Payments” mean the payments to be made to Borrower by SMUD pursuant to the PBI
Agreement.

          “Permits” shall mean any and all franchises, licenses, leases, permits, approvals,
notifications, certifications, registrations, authorizations, exemptions, qualifications,
easements, rights of way, Liens and other rights, privileges and approvals required to be obtained
from a Governmental Authority under any Governmental Rule (including those required to interconnect
the Project to the applicable transmission grid).

          “Permitted Debt” shall mean, with respect to Borrower: (a) Indebtedness not exceeding
$50,000 in the aggregate at any time outstanding; (b) trade or other similar Indebtedness incurred
in the ordinary course of business (but not for borrowed money) that is (i) not more than 90 days
past due or (ii) being

A-7

 

contested in good faith and by appropriate proceedings; (c) contingent
liabilities permitted pursuant to Section 6.1; and (d) Indebtedness incurred under the Loan
Documents.

          “Permitted Investments” shall mean: (a) direct obligations of the United States of
America or any agency thereof or obligations guaranteed by the United States of America or any
agency thereof, in each case with maturities not exceeding one year; (b) time deposit accounts,
certificates of deposit and money
market deposits maturing within 90 days of the date of acquisition thereof issued by a bank or
trust company that is organized under the laws of the United States of America, or any state
thereof having capital, surplus and undivided profits in excess of $1,000,000,000 and whose
long-term debt, or whose parent holding company’s long-term debt, is rated A (or such similar
equivalent rating or higher) by at least one nationally recognized statistical rating organization
(as defined in Rule 436 under the Securities Act); (c) fully secured repurchase obligations with a
term of not more than 90 days for underlying securities of the types described in clause (a) above
entered into with a bank meeting the qualifications described in clause (b) above; (d) commercial
paper, maturing not more than one year after the date of creation, issued by a corporation (other
than an Affiliate of Borrower) organized and in existence under the laws of the United States of
America with a rating at the time as of which any investment therein is made of P-1 (or higher)
according to Moody’s or A-1 (or higher) according to S&P; (e) shares of mutual funds whose
investment guidelines restrict 95% of such funds’ investments to those satisfying the provisions of
clauses (a) through (d) above; (f) money market funds that (i) comply with the criteria set forth
in Rule 2a-7 under the Investment Company Act of 1940, (ii) are rated AAA by S&P and Aaa by Moody’s
and (iii) have portfolio assets of at least $1,000,000,000; and (g) cash.

          “Permitted Liens” shall mean: (a) materialmen’s, mechanics’, workers’, repairmen’s,
employees’ or other like Liens, arising in the ordinary course of business or in connection with
the construction, operation and maintenance of the Project, so long as such Liens (i) (A) do not in
the aggregate materially detract from the value of the property or assets to which they are
attached or materially impair the construction or use thereof or (B) are for amounts not yet due or
which are being contested in good faith by appropriate proceedings and for which appropriate
reserves have been made in accordance with GAAP, and (ii) do not involve any substantial danger of
the sale, forfeiture or loss of the Project, title thereto or any interest therein; (b) easements,
rights-of-way, restrictions (including zoning restrictions), trackage rights, minor defects or
irregularities in title, restrictions on use of real property and other similar encumbrances or
liens that, in the aggregate, are not substantial in amount and do not materially interfere with
the value or use, or are useful to the operation, of the Real Property to which such Lien is
attached; (c) rights reserved for or vested in any municipality or Governmental Authority to
control or regulate the use of the Real Property or to use the Real Property in any manner,
including zoning and land use regulations; (d) Liens in connection with or evidenced by Permitted
Debt described in clause (b) in the definition thereof (to the extent such Liens attach only to the
assets subject to the respective capital lease); (e) Liens created pursuant to the Security
Documents; (vi) Liens for any Tax to the extent the requirements of Section 5.9 are
satisfied with respect to such Tax; (f) Liens, deposits or pledges to secure statutory obligations
or performance of bids, tenders, contracts (other than for the repayment of borrowed money) or
leases, or for purposes of like general nature in the ordinary course of its business, not to
exceed $25,000 in the aggregate for Borrower at any time outstanding; (g) involuntary Liens as
contemplated by the Transaction Documents (including a lien of an attachment, judgment or
execution) securing a charge or obligation on Borrower’s property, either real or personal, whether
now or hereafter owned (i) in the aggregate sum of less than $25,000 in the aggregate for Borrower
at any time outstanding or (ii) which are being contested in good faith by appropriate proceedings
and for which appropriate reserves have been made in accordance with GAAP; (h) Liens arising by
virtue of any statutory or common law provisions relating to bankers’ liens, rights of set-off or
similar rights and (i) all Liens of record as of the Closing Date.

          “Person” shall mean any natural person, corporation, business trust, joint venture,
association, company, partnership, limited liability company or government, individual or family
trusts, or any agency or political subdivision thereof.

          “Placed in Service Date” shall mean the date on which the Project is treated as
“placed in service” under and in accordance with the Cash Grant Guidance.

          “Plan” shall mean any employee pension benefit plan (other than a Multiemployer Plan)
subject to the provisions of Title IV of ERISA or Section 412 of the Code or Section 302 of ERISA
and in respect of

A-8

 

which Borrower or any ERISA Affiliate is (or if such plan were terminated would
under Section 4069 of ERISA be deemed to be) an “employer” as defined in Section 3(5) of ERISA.

          “Power” shall mean electric energy and related products, including capacity and
ancillary services; provided however, that the term “Power” shall specifically exclude any items
included in the definition of Environmental Attributes.

          “PPA” shall mean that certain Power Purchase Agreement dated November 10, 2009 between
Borrower (as assignee of Solar Power, Inc.) and Site Host, as amended.

          “Prime Rate” shall mean the rate of interest published from time to time by The Wall
Street Journal as the “prime rate”.

          “Project” shall mean the approximately 2.4 MW solar photovoltaic project located in
Rancho Cordova, California and owned by Borrower.

          “Project Contracts” shall mean, with respect to the Project, the Major Project
Contracts and each other contract or agreement related to the development, construction,
acquisition, operation, maintenance, management, administration, ownership or use of the Project,
the sale of Power or Environmental Attributes therefrom, the provision of services therefor and
Real Property rights and interests relating to the Project, in each case, entered into by, or
assigned to, Borrower or any other Person.

          “Project Damages” shall have the meaning assigned to such term in the Depositary
Agreement.

          “Project Material Adverse Effect” shall mean a material adverse effect on the
business, operations, properties, assets or condition (financial or otherwise) of the Project.

          “Project Revenues” shall mean all revenues, payments, cash and proceeds from whatever
source received by or on behalf of Borrower, including (without duplication) payments received
pursuant to any Project Contract, excluding (i) Insurance Proceeds (other than business
interruption insurance proceeds and delayed start insurance proceeds), (ii) Condemnation Proceeds,
(iii) Project Damages, (iv) Loan proceeds, and (v) any other non-recurring receipts properly
classified as such on the balance sheet of Borrower in conformity with GAAP.

          “Projections” shall mean the projections, budgets or estimates and any forward-looking
statements (including the Base Case Projections and each Annual Operating Budget) furnished to
Lender by, or as directed by, Borrower prior to the Closing Date.

          “Prudent Industry Practices” shall mean, with respect to the Project, those practices,
methods and acts, as they may change from time to time, that (a) are commonly used to own, manage,
operate and maintain distributed solar energy generating facilities and associated facilities of
the type that are similar to the Project, safely, reliably and efficiently and in compliance with
applicable Legal Requirements, manufacturers’ warranties and manufacturers’ recommendations and (b)
are consistent with the exercise of the reasonable judgment, skill, diligence, foresight and care
expected of a distributed solar energy generating facility operator in order to efficiently
accomplish the desired result consistent with safety standards, applicable Legal Requirements,
manufacturers’ warranties, manufacturers’ recommendations and the Project Contracts, in each case,
taking into account the location of the Project, including climatic, environmental and general
conditions.

          “PUHCA” shall mean the Public Utility Holding Company Act of 2005, as amended, and
FERC’s implementing regulations related thereto.

          “PURPA” shall mean Public Utility Regulatory Policies Act of 1978, as amended, and
FERC’s implementing regulations related thereto.

          “QF” shall mean a “qualifying small power production facility” (as such term is
defined under PURPA).

          “Real Property” shall mean all right, title and interest of Borrower in and to any and
all parcels of real property owned, leased, licensed or operated by Borrower, including Borrower’s
easement interest in the Site Property, together with all of Borrower’s interests in all
improvements and appurtenant fixtures, easements and other property and rights incidental to the
ownership, lease or operation thereof.

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          “Recapture Event” shall mean any recapture, reduction, loss, disallowance or
requirement to repay any Cash Grant.

          “Recapture Liabilities” shall mean, with respect to a Recapture Event, liabilities
associated with such Recapture Event or other amounts assessed by the United States Treasury
Department in respect thereof.

          “Recapture Period” shall mean, with respect to each Project, the period commencing on
the Placed in Service Date for such Project and ending on the fifth anniversary thereof.

          “Regulation U” shall mean Regulation U of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

          “Regulation X” shall mean Regulation X of the Board as from time to time in effect and
all official rulings and interpretations thereunder or thereof.

          “Related Parties” shall mean, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents and advisors of such Person
and such Person’s Affiliates.

          “Release” shall mean any placing, spilling, leaking, seepage, pumping, pouring,
emitting, emptying, discharging, injecting, escaping, leaching, dumping, disposing, depositing or
migrating in, into or onto or through the Environment.

          “Replacement Major Project Contract” shall mean any Additional Major Project Contract
entered into in replacement of a Major Project Contract, as certified to Lender by a Responsible
Officer of Borrower, (a) which has economic terms which are, taken as a whole, substantially
similar to or more favorable to Borrower and substantially similar or more favorable non-economic
terms, taken as a whole, as the Major Project Contract being replaced, and (b) with a counterparty
(or a guarantor of such counterparty’s obligations) having substantially similar or better
creditworthiness and experience as the Major Project Contract Counterparty being replaced.

          “Required Debt Service Reserve Amount” shall have the meaning ascribed to such term in
the Depositary Agreement.

          “Responsible Officer” of any Person shall mean any executive officer or Financial
Officer of such Person and any other officer or similar official thereof responsible for the
administration of the obligations of such Person in respect of this Agreement.

          “Restricted Payment” shall mean any dividend or other distribution (whether in cash,
securities or other property) with respect to any Equity Interests in, or subordinated Indebtedness
of Borrower or any payment (whether in cash, securities or other property), including any sinking
fund or similar deposit, on account of the purchase, redemption, defeasance, retirement,
acquisition, cancellation or termination of any Equity Interests in, or subordinated Indebtedness
of, Borrower or any option, warrant or other right to acquire any such Equity Interest in, or
subordinated Indebtedness of, Borrower.

          “S&P” shall mean Standard & Poor’s Ratings Group, Inc.

          “Secured Obligations” shall mean, without duplication: (a) all Indebtedness, loans,
advances, debts, liabilities and all other obligations (including the Obligations), howsoever
arising, owed by Borrower to Lender of every kind and description (whether or not evidenced by any
note or instrument and whether or not for the payment of money), direct or indirect, absolute or
contingent, due or to become due, now existing or hereafter arising, pursuant to the terms of the
Loan Documents, including all interest, fees (loan fees), charges, expenses, attorneys’ fees and
accountants fees chargeable to Borrower or payable by Borrower thereunder or hereunder; (b) any and
all sums advanced by Lender in order to preserve the Collateral or preserve its security interest
in the Collateral; and (c) in the event of any proceeding for the collection or enforcement of the
obligations described in clause (a) and (b) above, after an Event of Default shall have occurred
and be continuing and unwaived, the expenses of retaking, holding, preparing for sale or lease,
selling or otherwise disposing of or realizing on the Collateral, or of any exercise by Lender of
its rights under the Security Documents, together with any necessary attorneys’ fees and court
costs.

          “Securities Act” shall mean the Securities Act of 1933, as amended.

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          “Security Agreement” shall mean the Security Agreement, dated as of the Closing Date,
among Borrower and Lender.

          “Security Documents” shall mean the Security Agreement, the Deed of Trust, the
Depositary Agreement, and each of the security agreements and other instruments and documents
executed and delivered pursuant to any of the foregoing.

          “Site Agreement” shall mean that certain Easement Agreement dated as of November 10,
2009, made by and between Site Host and Borrower related to an easement in gross covering certain
real property in connection with the Project, as evidenced by that certain Amended and Restated
Memorandum of Easement dated May 25, 2010, as the same may be amended from time to time in
accordance with this Agreement.

          “Site Host” shall mean Aerojet-General Corporation, an Ohio corporation.

          “Site Property” shall mean the Real Property upon which the Project is located and all
other Real Property to which access is required for the operation and maintenance of the Project.

          “SMUD” shall mean Sacramento Municipal Utility District.

          “Subsidiary” shall mean, with respect to any Person, any corporation, partnership,
limited liability company, association or other business entity of which securities or other
ownership interests representing more than 50% of the equity or more than 50% of the ordinary
voting power or more than 50% of the general partnership interests are, at the time any
determination is being made, directly or indirectly, owned, Controlled or held by such Person.

          “Tax Credits” shall have the meaning assigned to such term in Section 6.20.

          “Taxes” shall mean any and all present or future taxes, levies, imposts, fees, duties
(including stamp duties), deductions, charges (including ad valorem charges) or withholdings
imposed, levied, withheld, collected or assessed by any Governmental Authority and any and all
interest, penalties, fines and additions related thereto.

          “Term Loan” shall have the meaning assigned to such term in Section 2.1.

          “Transaction Documents” shall mean the Loan Documents and the Major Project Contracts.

          “Transactions” shall mean (a) the execution, delivery and performance by Borrower of
the Loan Documents to which it is a party, (b) the borrowings and guarantees under the Loan
Documents and the use of proceeds of such borrowings, (c) the granting of the Liens pursuant to the
Security Documents, and (d) any other transactions entered into by Borrower in connection with the
foregoing, to the extent permitted under the Loan Documents.

          “U.S. Bankruptcy Code” shall mean Title 11 of the United States Code, as amended, or
any similar federal or state law for the relief of debtors.

          “U.S.A. Patriot Act” shall mean the Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism Act of 2001, Public Law 107-56
(signed into law on October 26, 2001).

          “UCC” shall mean the Uniform Commercial Code as the same may, from time to time, be in
effect in the State of California; provided however, in the event that, by reason of mandatory
provisions of law, any or all of the attachment, perfection or priority of the security interest in
any Collateral is governed by the Uniform Commercial Code as in effect in a jurisdiction other than
the State of California, the term “UCC” shall mean the Uniform Commercial Code as in effect
in such other jurisdiction for purposes of the provisions hereof relating to such attachment,
perfection or priority and for purposes of definitions related to such provisions.

          “Variable Interest Rate” shall have the meaning assigned to such term in 2.6(a).

          “Voluntary Equity Contributions” shall mean any documented voluntary, unconditional
cash equity contributions made by the Managing Member (or any direct or indirect Subsidiary of the
Managing Member) to Borrower, which shall include any amount available for distribution by Borrower
in accordance with this Agreement and the Depositary Agreement that such Person causes to be
applied as a voluntary, unconditional cash equity contribution to Borrower (and documents such
contribution).

A-11

 

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

A-12

 

Schedule 2.2

Schedule of Payments

Borrower shall make fixed principal payments as provided in this Schedule 2.2. Interest on this
Term Loan is variable and based on the Prime Rate plus 1.25% as provided in the Loan Agreement.

East West Bank

Trade Reference: 8247564

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Payment	 	Payment	 	 	 	 	 	Amort
	Begin	 	End	 	Notional	 	Amt
	6/1/2011
	 	 	7/1/2011	 	 	 	4,500,000.00	 	 	 	31,517.00	 
	7/1/2011
	 	 	8/1/2011	 	 	 	4,468,483.00	 	 	 	31,517.00	 
	8/1/2011
	 	 	9/1/2011	 	 	 	4,436,966.00	 	 	 	31,517.00	 
	9/1/2011
	 	 	10/1/2011	 	 	 	4,405,449.00	 	 	 	31,517.00	 
	10/1/2011
	 	 	11/1/2011	 	 	 	4,373,932.00	 	 	 	31,517.00	 
	11/1/2011
	 	 	12/1/2011	 	 	 	4,342,415.00	 	 	 	31,517.00	 
	12/1/2011
	 	 	1/1/2012	 	 	 	4,310,898.00	 	 	 	31,517.00	 
	1/1/2012
	 	 	2/1/2012	 	 	 	4,279,381.00	 	 	 	31,517.00	 
	2/1/2012
	 	 	3/1/2012	 	 	 	4,247,864.00	 	 	 	31,517.00	 
	3/1/2012
	 	 	4/1/2012	 	 	 	4,216,347.00	 	 	 	31,517.00	 
	4/1/2012
	 	 	5/1/2012	 	 	 	4,184,830.00	 	 	 	31,517.00	 
	5/1/2012
	 	 	6/1/2012	 	 	 	4,153,313.00	 	 	 	31,517.00	 
	6/1/2012
	 	 	7/1/2012	 	 	 	4,121,796.00	 	 	 	33,892.00	 
	7/1/2012
	 	 	8/1/2012	 	 	 	4,087,904.00	 	 	 	33,892.00	 
	8/1/2012
	 	 	9/1/2012	 	 	 	4,054,012.00	 	 	 	33,892.00	 
	9/1/2012
	 	 	10/1/2012	 	 	 	4,020,120.00	 	 	 	33,892.00	 
	10/1/2012
	 	 	11/1/2012	 	 	 	3,986,228.00	 	 	 	33,892.00	 
	11/1/2012
	 	 	12/1/2012	 	 	 	3,952,336.00	 	 	 	33,892.00	 
	12/1/2012
	 	 	1/1/2013	 	 	 	3,918,444.00	 	 	 	33,892.00	 
	1/1/2013
	 	 	2/1/2013	 	 	 	3,884,552.00	 	 	 	33,892.00	 
	2/1/2013
	 	 	3/1/2013	 	 	 	3,850,660.00	 	 	 	33,892.00	 
	3/1/2013
	 	 	4/1/2013	 	 	 	3,816,768.00	 	 	 	33,892.00	 
	4/1/2013
	 	 	5/1/2013	 	 	 	3,782,876.00	 	 	 	33,892.00	 
	5/1/2013
	 	 	6/1/2013	 	 	 	3,748,984.00	 	 	 	33,892.00	 
	6/1/2013
	 	 	7/1/2013	 	 	 	3,715,092.00	 	 	 	36,150.00	 
	7/1/2013
	 	 	8/1/2013	 	 	 	3,678,942.00	 	 	 	36,150.00	 
	8/1/2013
	 	 	9/1/2013	 	 	 	3,642,792.00	 	 	 	36,150.00	 
	9/1/2013
	 	 	10/1/2013	 	 	 	3,606,642.00	 	 	 	36,150.00	 
	10/1/2013
	 	 	11/1/2013	 	 	 	3,570,492.00	 	 	 	36,150.00	 
	11/1/2013
	 	 	12/1/2013	 	 	 	3,534,342.00	 	 	 	36,150.00	 
	12/1/2013
	 	 	1/1/2014	 	 	 	3,498,192.00	 	 	 	36,150.00	 
	1/1/2014
	 	 	2/1/2014	 	 	 	3,462,042.00	 	 	 	36,150.00	 

Schedule 2.2

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Payment	 	Payment	 	 	 	 	 	Amort
	Begin	 	End	 	Notional	 	Amt
	2/1/2014
	 	 	3/1/2014	 	 	 	3,425,892.00	 	 	 	36,150.00	 
	3/1/2014
	 	 	4/1/2014	 	 	 	3,389,742.00	 	 	 	36,150.00	 
	4/1/2014
	 	 	5/1/2014	 	 	 	3,353,592.00	 	 	 	36,150.00	 
	5/1/2014
	 	 	6/1/2014	 	 	 	3,317,442.00	 	 	 	36,150.00	 
	6/1/2014
	 	 	7/1/2014	 	 	 	3,281,292.00	 	 	 	38,515.00	 
	7/1/2014
	 	 	8/1/2014	 	 	 	3,242,777.00	 	 	 	38,515.00	 
	8/1/2014
	 	 	9/1/2014	 	 	 	3,204,262.00	 	 	 	38,515.00	 
	9/1/2014
	 	 	10/1/2014	 	 	 	3,165,747.00	 	 	 	38,515.00	 
	10/1/2014
	 	 	11/1/2014	 	 	 	3,127,232.00	 	 	 	38,515.00	 
	11/1/2014
	 	 	12/1/2014	 	 	 	3,088,717.00	 	 	 	38,515.00	 
	12/1/2014
	 	 	1/1/2015	 	 	 	3,050,202.00	 	 	 	38,515.00	 
	1/1/2015
	 	 	2/1/2015	 	 	 	3,011,687.00	 	 	 	38,515.00	 
	2/1/2015
	 	 	3/1/2015	 	 	 	2,973,172.00	 	 	 	38,515.00	 
	3/1/2015
	 	 	4/1/2015	 	 	 	2,934,657.00	 	 	 	38,515.00	 
	4/1/2015
	 	 	5/1/2015	 	 	 	2,896,142.00	 	 	 	38,515.00	 
	5/1/2015
	 	 	6/1/2015	 	 	 	2,857,627.00	 	 	 	38,515.00	 
	6/1/2015
	 	 	7/1/2015	 	 	 	2,819,112.00	 	 	 	41,064.00	 
	7/1/2015
	 	 	8/1/2015	 	 	 	2,778,048.00	 	 	 	41,064.00	 
	8/1/2015
	 	 	9/1/2015	 	 	 	2,736,984.00	 	 	 	41,064.00	 
	9/1/2015
	 	 	10/1/2015	 	 	 	2,695,920.00	 	 	 	41,064.00	 
	10/1/2015
	 	 	11/1/2015	 	 	 	2,654,856.00	 	 	 	41,064.00	 
	11/1/2015
	 	 	12/1/2015	 	 	 	2,613,792.00	 	 	 	41,064.00	 
	12/1/2015
	 	 	1/1/2016	 	 	 	2,572,728.00	 	 	 	41,064.00	 
	1/1/2016
	 	 	2/1/2016	 	 	 	2,531,664.00	 	 	 	41,064.00	 
	2/1/2016
	 	 	3/1/2016	 	 	 	2,490,600.00	 	 	 	41,064.00	 
	3/1/2016
	 	 	4/1/2016	 	 	 	2,449,536.00	 	 	 	41,064.00	 
	4/1/2016
	 	 	5/1/2016	 	 	 	2,408,472.00	 	 	 	41,064.00	 
	5/1/2016
	 	 	6/1/2016	 	 	 	2,367,408.00	 	 	 	41,064.00	 
	6/1/2016
	 	 	7/1/2016	 	 	 	2,326,344.00	 	 	 	43,853.00	 
	7/1/2016
	 	 	8/1/2016	 	 	 	2,282,491.00	 	 	 	43,853.00	 
	8/1/2016
	 	 	9/1/2016	 	 	 	2,238,638.00	 	 	 	43,853.00	 
	9/1/2016
	 	 	10/1/2016	 	 	 	2,194,785.00	 	 	 	43,853.00	 
	10/1/2016
	 	 	11/1/2016	 	 	 	2,150,932.00	 	 	 	43,853.00	 
	11/1/2016
	 	 	12/1/2016	 	 	 	2,107,079.00	 	 	 	43,853.00	 
	12/1/2016
	 	 	1/1/2017	 	 	 	2,063,226.00	 	 	 	43,853.00	 
	1/1/2017
	 	 	2/1/2017	 	 	 	2,019,373.00	 	 	 	43,853.00	 
	2/1/2017
	 	 	3/1/2017	 	 	 	1,975,520.00	 	 	 	43,853.00	 
	3/1/2017
	 	 	4/1/2017	 	 	 	1,931,667.00	 	 	 	43,853.00	 
	4/1/2017
	 	 	5/1/2017	 	 	 	1,887,814.00	 	 	 	43,853.00	 
	5/1/2017
	 	 	6/1/2017	 	 	 	1,843,961.00	 	 	 	43,853.00	 
	6/1/2017
	 	 	7/1/2017	 	 	 	1,800,108.00	 	 	 	46,755.00	 

Schedule 2.2

 

	 	 	 	 	 	 	 	 	 	 	 	 	 
	Payment	 	Payment	 	 	 	 	 	Amort
	Begin	 	End	 	Notional	 	Amt
	7/1/2017
	 	 	8/1/2017	 	 	 	1,753,353.00	 	 	 	46,755.00	 
	8/1/2017
	 	 	9/1/2017	 	 	 	1,706,598.00	 	 	 	46,755.00	 
	9/1/2017
	 	 	10/1/2017	 	 	 	1,659,843.00	 	 	 	46,755.00	 
	10/1/2017
	 	 	11/1/2017	 	 	 	1,613,088.00	 	 	 	46,755.00	 
	11/1/2017
	 	 	12/1/2017	 	 	 	1,566,333.00	 	 	 	46,755.00	 
	12/1/2017
	 	 	1/1/2018	 	 	 	1,519,578.00	 	 	 	46,755.00	 
	1/1/2018
	 	 	2/1/2018	 	 	 	1,472,823.00	 	 	 	46,755.00	 
	2/1/2018
	 	 	3/1/2018	 	 	 	1,426,068.00	 	 	 	46,755.00	 
	3/1/2018
	 	 	4/1/2018	 	 	 	1,379,313.00	 	 	 	46,755.00	 
	4/1/2018
	 	 	5/1/2018	 	 	 	1,332,558.00	 	 	 	46,755.00	 
	5/1/2018
	 	 	6/1/2018	 	 	 	1,285,803.00	 	 	 	46,755.00	 
	6/1/2018
	 	 	7/1/2018	 	 	 	1,239,048.00	 	 	 	49,960.00	 
	7/1/2018
	 	 	8/1/2018	 	 	 	1,189,088.00	 	 	 	49,960.00	 
	8/1/2018
	 	 	9/1/2018	 	 	 	1,139,128.00	 	 	 	49,960.00	 
	9/1/2018
	 	 	10/1/2018	 	 	 	1,089,168.00	 	 	 	49,960.00	 
	10/1/2018
	 	 	11/1/2018	 	 	 	1,039,208.00	 	 	 	49,960.00	 
	11/1/2018
	 	 	12/1/2018	 	 	 	989,248.00	 	 	 	49,960.00	 
	12/1/2018
	 	 	1/1/2019	 	 	 	939,288.00	 	 	 	49,960.00	 
	1/1/2019
	 	 	2/1/2019	 	 	 	889,328.00	 	 	 	49,960.00	 
	2/1/2019
	 	 	3/1/2019	 	 	 	839,368.00	 	 	 	49,960.00	 
	3/1/2019
	 	 	4/1/2019	 	 	 	789,408.00	 	 	 	49,960.00	 
	4/1/2019
	 	 	5/1/2019	 	 	 	739,448.00	 	 	 	49,960.00	 
	5/1/2019
	 	 	6/1/2019	 	 	 	689,488.00	 	 	 	49,960.00	 
	6/1/2019
	 	 	7/1/2019	 	 	 	639,528.00	 	 	 	53,293.00	 
	7/1/2019
	 	 	8/1/2019	 	 	 	586,235.00	 	 	 	53,293.00	 
	8/1/2019
	 	 	9/1/2019	 	 	 	532,942.00	 	 	 	53,293.00	 
	9/1/2019
	 	 	10/1/2019	 	 	 	479,649.00	 	 	 	53,293.00	 
	10/1/2019
	 	 	11/1/2019	 	 	 	426,356.00	 	 	 	53,293.00	 
	11/1/2019
	 	 	12/1/2019	 	 	 	373,063.00	 	 	 	53,293.00	 
	12/1/2019
	 	 	1/1/2020	 	 	 	319,770.00	 	 	 	53,293.00	 
	1/1/2020
	 	 	2/1/2020	 	 	 	266,477.00	 	 	 	53,293.00	 
	2/1/2020
	 	 	3/1/2020	 	 	 	213,184.00	 	 	 	53,293.00	 
	3/1/2020
	 	 	4/1/2020	 	 	 	159,891.00	 	 	 	53,293.00	 
	4/1/2020
	 	 	5/1/2020	 	 	 	106,598.00	 	 	 	53,293.00	 
	5/1/2020
	 	 	6/1/2020	 	 	 	53,305.00	 	 	 	53,305.00	 

Schedule 2.2

 

Schedule 3.6

Litigation and Claims

None

Schedule 3.6

 

 

Schedule 3.8

Major Project Contracts

PPA

Site Agreement

O&M Contract

Interconnection Agreement

PBI Agreement

Schedule 3.8

 

 

Schedule 3.15

Hazardous Materials

All matters disclosed in that (i) certain letter from the United States Environmental Protection
Agency dated April 30, 2009, addressed to Aerojet, regarding Aerojet Partial Consent Decree,
Paragraph 11(E) Notice, (2) that certain Partial Consent Decree affecting Aerojet General
Corporation’s Sacramento facility, entered on June 23, 1989, in consolidated actions United States
v. Aerojet-General Corporation and State of California v. Aerojet-General Corporation, Case Numbers
CIVS 86-0063-EJG and CIVS 86-0064-EJG, in the United States District Court, Eastern District,
California, as amended from time to time, and (3) that certain Stipulation and Order Modifying
Partial Consent Decree, filed on April 15, 2002, in consolidated actions United States v.
Aerojet-General Corporation and State of California v. Aerojet-General Corporation, Case Numbers
CIVS 86-0063-EJG and CIVS 86-0064-EJG, in the United States District Court, Eastern District,
California, as amended from time to time.

Schedule 3.15

 

 

Schedule 3.18

Collateral Filings

	1.	 	Filing of UCC1 Financing Statement naming Borrower as Debtor and Lender as Secured
Party with the office of the California Secretary of State.
	 
	2.	 	Recording of Deed of Trust.

Schedule 3.18

 

 

Schedule 3.19

Permits

Schedule 3.19

 

 

Schedule 3.20

Governmental Approvals

None.

Schedule 3.21

 

 

Schedule 3.22

Sufficiency of Assets

None.

Schedule 3.23

 

 

Schedule 3.26

Affiliate Transactions

None.

Schedule 3.26

 

 

Schedule 3.27

Regulatory Matters

None.

Schedule 3.27

 

 

Schedule 5.8

Insurance

BORROWER

	1.	 	Commercial General Liability Insurance — includes bodily injury, property damage and
personal injury coverage in the amount not less than $1,000,000 per occurrence/$2,000,000
general aggregate, on a per project aggregate basis, with a maximum deductible of $10,000. In
addition, an Umbrella/Excess Liability Policy is required in the amount of $5,000,000.
	 
	2.	 	Property Insurance — “All Risk” Property Insurance in an amount equal or exceeding the
greater of (i) the coverage required by the Borrower Operating Agreement and (ii) the
capitalized tax basis of the Project that includes an agreed-value clause or no-coinsurance
provision, and Business Income/Rent Loss Coverage in an amount equal to actual loss sustained
or minimum 12 months’ gross income/rents. Maximum deductible of $25,000 per location, $10,000
for any one “loss”.

REQUIRED FORMAT:

	•	 	Insurance coverage must be evidenced by certificates of insurance, on either ACORD Form 27
for property insurance and ACORD Form 25 for liability, or form ACORD 75s for combined
property and liability insurance. Copies of the insurance policies must follow within 90 days
of closing.
	 
	•	 	Policies must be written with an A.M. Best rated company of “A VIII” or better
	 
	•	 	Cancellation clause should state the policy will not be cancelled or non-renewed without 30
days prior written notice to the certificate holders (may be 10 days prior written notice for
non-payment of premium only)
	 
	•	 	Policy coverage amounts, deductibles and policy expiration dates (term cannot be less than
one year) for each type of insurance must be shown on the certificate
	 
	•	 	Provide annual premium amount and/or evidence of premium payment
	 
	 	 	Certificates must name East West Bank as additional insured and loss payee.

Schedule 5.8

 

 

EXHIBIT A

Form of Note

PROMISSORY NOTE

			
	 	 	 
	$4,500,000.00 
	 	May 31, 2011

          FOR VALUE RECEIVED, the undersigned, SOLAR TAX PARTNERS 2, LLC, a California limited liability
company (“Borrower”), hereby unconditionally promises to pay to EAST WEST BANK
(“Lender”) or its registered assigns at the office specified in the Loan Agreement (as
hereinafter defined) in lawful money of the United States and in immediately available funds the
principal amount of Four Million Five Hundred Thousand and No/100 Dollars ($4,500,000.00).
Borrower further agrees to pay interest in like money at such office specified in the Loan
Agreement on the unpaid principal amount hereof from time to time outstanding at the rates and on
the dates specified in the Loan Agreement.

          This note (a) is the “Note” referred to in Term Loan Agreement, dated as of May 31, 2011 (as
amended, amended and restated, supplemented or otherwise modified from time to time, the “Loan
Agreement”), by and among Borrower and Lender, (b) is subject to the provisions of the Loan
Agreement and (c) is subject to optional and mandatory prepayment in whole or in part as provided
in the Loan Agreement. Unless otherwise defined herein, terms defined in the Loan Agreement and
used herein shall have the meanings given to them in the Loan Agreement.

          Borrower shall make all payments of principal and interest required by the Loan Agreement.

          All sums due under this Note, both principal and interest, if not sooner paid, shall be due
and payable on the Maturity Date.

          The interest rate on this Note will not be less than 6.00% per annum (“Interest Rate Floor”).
Notwithstanding the foregoing, if the Borrower and Lender now or hereafter enter into a rate swap
agreement in connection with this Note, then for the duration of such Financial Contract, the
Interest Rate Floor will not apply to so much of the principal balance of this Note as is equal to
the notional amount of such Financial Contract. The interest rate on this Note will not be more
than the maximum rate allowed by applicable law.

          The interest rate on this Note is subject to change from time to time based on changes in an
independent index which is the daily Wall Street Journal Prime Rate, as quoted in the “Money Rates”
column of The Wall Street Journal (Western Edition), rounded to two decimal places, all as
determined by Lender (the “Index”). The Index is not necessarily the lowest rate charged by Lender
on its loans. If the Index becomes unavailable during the term of this loan, Lender may designate
a substitute index after notifying Borrower. Lender will inform Borrower of the current Index rate
upon Borrower’s request. The interest rate change will not occur more often than each day.

          This note is secured as provided in the Loan Documents. Reference is hereby made to the Loan
Documents for a description of the properties and assets in which a security interest has been
granted, the nature and extent of the security, the terms and conditions upon which the security
interests were granted and the rights of the holder of this note in respect thereof.

          Upon the occurrence of any one or more Events of Default, all principal and accrued interest
then remaining unpaid on this note shall become, or may be declared to be, immediately due and
payable, all as provided in the Loan Agreement.

          All parties now and hereafter liable with respect to this note, whether maker, principal,
surety, guarantor, endorser or otherwise, hereby waive presentment, demand, protest and all other
notices of any kind, except as expressly set forth in the Loan Agreement.

Exhibit A-1 

 

          NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN OR IN THE LOAN AGREEMENT, THIS NOTE
MAY NOT BE TRANSFERRED EXCEPT PURSUANT TO AND IN ACCORDANCE WITH THE PROVISIONS OF THE LOAN
AGREEMENT.

          THIS NOTE SHALL BE GOVERNED BY, AND CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAW OF
THE STATE OF CALIFORNIA.

[SIGNATURE PAGE FOLLOWS THIS PAGE]

Exhibit A-2 

 

	 	 	 	 	 
	 	SOLAR TAX PARTNERS 2, LLC

a California limited liability company

 	 
	 	By:  	Solar Power, Inc.
 	 
	 	 	a California corporation 	 
	 	 	its Manager 	 
	 
	 	 	 
	 	 	By:  	
 	 
	 	 	 	Jeffrey G. Winzeler, CFO 	 
	 	 	 	 
	 

Exhibit A-3exv10w1

Exhibit 10.1

EXECUTION COPY

AMENDMENT NO. 5 TO RECEIVABLES PURCHASE AGREEMENT

          This AMENDMENT NO. 5 to Receivables Purchase Agreement, dated as of May 31, 2011 (this
“Amendment”), is entered into by and among:

          (a) RPM Funding Corporation, a Delaware corporation (“Seller”),

          (b) RPM International Inc., a Delaware corporation, as initial Servicer,

          (c) Fifth Third Bank (“Fifth Third”), and Wells Fargo Bank, National Association, successor by
merger to Wachovia Bank, National Association (“Wells Fargo” and each of Fifth Third and Wells
Fargo, a “Purchaser” and, collectively, the “Purchasers”), and

          (d) Wells Fargo Bank, National Association, successor by merger to Wachovia Bank, National
Association, in its capacity as administrative agent for the Purchasers (in such capacity, together
with its successors and assigns, the “Administrative Agent”),

and pertains to that certain Receivables Purchase Agreement dated as of April 7, 2009 among the
parties hereto or their predecessors (as heretofore and hereby amended, the “Agreement”). Unless
defined elsewhere herein, capitalized terms used in this Amendment shall have the meanings assigned
to such terms in the Agreement.

PRELIMINARY STATEMENT

Seller wishes to amend the Agreement as hereinafter set forth, and the Administrative Agent
and the Purchasers are willing to agree to such amendments on the terms and subject to the
conditions set forth in this Amendment.

          Section 1. Amendments.

          (a) A new Section 5.1(y) is hereby added to the Agreement to read as follows:

“Anti-Terrorism Law Compliance. None of the Seller Parties is subject to or in violation of
any law, regulation, or list of any government agency (including, without limitation, the
U.S. Office of Foreign Asset Control list, Executive Order No. 13224 or the USA PATRIOT
Act) that prohibits or limits the conduct of business with or the receiving of funds, goods
or services to or for the benefit of certain Persons specified therein or that prohibits or
limits any Purchaser from making any Incremental Purchase or from otherwise conducting
business with any of the Seller Parties.”

          (b) Section 7.1(b)(ii) of the Agreement is hereby amended to delete
“$40,000,000” where it appears and to substitute in lieu thereof “$50,000,000”.

          (c) A new Section 7.2(j) is hereby added to the Agreement to read as follows:

“Anti-Terrorism Laws. None of the Seller Parties shall be in violation of any law or
regulation or appear on any list of any government agency (including, without limitation,
the U.S. Office of Foreign Asset Control list, Executive Order No. 13224 or the USA

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PATRIOT Act) that prohibits or limits the conduct of business with or the receiving of
funds, goods, or services to or for the benefit of certain Persons specified therein or
that prohibits or limits any Purchaser from making any Incremental Purchase.”

          (d) Section 9.1(j) of the Agreement is hereby amended to delete
“$40,000,000” where it appears and to substitute in lieu thereof “$50,000,000”.

          (e) Section 9.1 (n) of the Agreement is hereby amended and restated in its entirety to read as
follows.

“(n) RPM-Delaware shall permit the Indebtedness of RPM-Delaware and its
Subsidiaries, determined on a consolidated basis, to exceed 60% of the sum of such
Indebtedness and consolidated shareholders’ equity of RPM-Delaware and its
consolidated Subsidiaries, as calculated on the last day of each fiscal quarter;
provided that for purposes of calculating consolidated shareholders’ equity,
non-cash charges related to the writedown or impairment of goodwill or other
intangibles shall be included in such calculation.”

          (f) Section 9.1(p) of the Receivables Purchase Agreement is hereby deleted in its entirety.

          (g) Clause (vii) of the definition of “Adjusted Eligible Receivables” contained in Exhibit I
of the Receivables Purchase Agreement is hereby amended to delete “67-91” where it appears and to
substitute in lieu thereof “70-91”.

          (h) Clause (iv) of the definition of “Eligible Receivables” contained in Exhibit I of the
Receivables Purchase Agreement is hereby amended and restated in its entirety to read as follows:

“(iv) which is not owing from an Obligor as to which more than 50% of the aggregate
Outstanding Balance of all Receivables owing from such Obligor are Defaulted
Receivables,”

          (i) The last sentence of the definition of “Concentration Limit” contained in Exhibit I of the
Receivables Purchase Agreement is hereby amended and restated in its entirety to read as follows:

“As of the date hereof, (x) as long as The Home Depot, Inc. has debt ratings of
BBB-/Baa3/BBB- or above, the Special Concentration Limit for The Home Depot, Inc.
and its Affiliates is 25% of Adjusted Eligible Receivables; (y) the Special
Concentration Limit for Ace Hardware and its Affiliates is 4% of Adjusted Eligible
Receivables, and (z) as long as Lowe’s Companies, Inc. has debt ratings of
BBB-/Baa3/BBB- or above, the Special Concentration Limit for Lowe’s Companies, Inc.
and its Affiliates is 15% of Adjusted Eligible Receivables.”

          (j) The following definitions contained in Exhibit I of the Receivables Purchase Agreement are
hereby amended and restated, each in its entirety, to read as follows:

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          ““Applicable Margin” means, for so long as the Servicer has debt ratings of
BB+/Ba1/BB+ or above from any two of (i) S&P, (ii) Moody’s, or (iii) Fitch Ratings 1.00%,
otherwise, 1.25%.

          “Dilution Horizon Ratio” means, as of any Cut-off Date, a ratio (expressed as a
decimal), computed by dividing (a) the aggregate sales (excluding Excluded Government
Receivables) generated by the Originators during the three Calculation Periods ending on
such Cut-Off Date by (b) the Net Receivables Balance as of such Cut-Off Date.

          “EBITDA” shall mean, for any period of four consecutive fiscal quarters, determined
on a consolidated basis for RPM-Delaware and its consolidated Subsidiaries, (i) the sum of
(A) net income of RPM-Delaware and its consolidated Subsidiaries (calculated before
provision for income taxes, Interest Expense, extraordinary items, non-recurring gains or
losses in connection with asset dispositions, income attributable to equity in affiliates,
all amounts attributable to depreciation and amortization and non-cash charges associated
with asbestos liabilities) for such period, (B) all non-cash charges related to the
writedown or impairment of goodwill and other intangibles for such period, (C) non-cash
charges or losses related to or resulting from the bankruptcy filing of any Excluded
Subsidiary for such period, (D) non-recurring expenses related to the acquisition of all
or substantially all of the assets or capital stock (including by merger or amalgamation)
of another Person (or, in the case of assets of a business unit of a Person), not to
exceed $10,000,000 in the aggregate for such period of four consecutive fiscal quarters,
plus (E) non-cash charges in addition to those provided for in clauses (B) and (C) above,
up to an aggregate amount of not more than $25,000,000 incurred during such period, minus
(ii) the sum of (A) cash payments made by RPM-Delaware or any of its consolidated
Subsidiaries in
respect of asbestos liabilities (which liabilities include, without limitation,
defense costs and indemnification liabilities incurred in connection with asbestos
liabilities) during such period and (B) non-cash gains for such period.

          “Facility Termination Date” means the earlier of (i) May 30, 2014, and (ii) the
Amortization Date.

          “Interest Expense” means, for any period, the sum (determined without duplication) of
the aggregate amount of interest accruing during such period on Indebtedness of
RPM-Delaware and its consolidated Subsidiaries (on a consolidated basis), including the
interest portion of payments under Capital Lease Obligations and any capitalized interest,
and excluding amortization of debt discount and expense and any non-cash interest expense
associated with accretive type debt instruments.

          “Material Indebtedness” means (a) with respect to the Performance
Guarantor and its Subsidiaries (other than the Originators),
Indebtedness in excess of $50 million in aggregate principal amount and (b) with

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          respect to any Originator, Indebtedness in excess of $20 million in aggregate
principal amount.

          “RPM Credit Agreement” means that certain Credit Agreement dated as of January
5, 2011, as amended, restated or replaced from time to time, among RPM-Delaware and
certain of its Affiliates, the lenders and other financial institutions from time
to time party thereto, and PNC Bank, National Association as administrative agent.

          “Stress Factor” means, for so long as the Servicer has debt ratings of
BBB-/Baa3/BBB- from any two of (i) S&P, (ii) Moody’s, or (iii) Fitch Ratings,
2.00%, otherwise, 2.25%.

          “Yield Reserve” means for any Calculation Period, the product (expressed as a
percentage) of (i) the product of 1.5 times the Alternate Base Rate as of the
immediately preceding Cut-Off Date times (ii) a fraction, the numerator of which is
the highest Days Sales Outstanding for the most recent 12 Calculation Periods and
the denominator of which is 360.”

          (k) The definitions of “Capital Expenditures,” “Dividends,” “Equity Interest,” “Fixed Charge
Coverage Ratio” and “US Indebtedness” are hereby deleted from exhibit I of the Receivables Purchase
Agreement.

          (l) Schedule A of the Receivables Purchase Agreement is hereby amended and restated in its
entirety to read as set forth in Annex A hereto.

          Section 2. Representations and Warranties. In order to induce the Administrative Agent and the
Purchasers to enter into this Amendment, Seller hereby represents and warrants to the
Administrative Agent and the Purchasers, as of the date hereof, that (a) the execution and delivery
by Seller of this Amendment are within its corporate powers and authority and have been duly
authorized by all necessary corporate action on its part, (b) this Amendment has been duly executed
and delivered by Seller, (c) after giving effect to this Amendment, no event has occurred and is
continuing that will constitute an Amortization Event or a Potential Amortization Event, and (d)
each of Seller’s representations and warranties set forth in Section 5.1 of the Agreement (other
than Section 5.1(m) thereof) is true and correct on and as of the date hereof as though made on and
as of the date hereof.

          Section 3. Effectiveness. This Amendment shall become effective as of the date hereof upon
satisfaction of each of the following conditions precedent:

          (a) receipt by the Administrative Agent of counterparts hereof, duly executed by each of the
parties hereto; and

          (b) payment of all fees due on the date hereof, including legal
fees.

          Section 4. CHOICE OF LAW. THIS AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH
THE LAWS OF THE STATE OF NEW YORK (WITHOUT GIVING EFFECT TO THE CONFLICT OF LAWS

4

 

PRINCIPLES THEREOF OTHER THAN SECTIONS 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW
WHICH SHALL APPLY HERETO).

          Section 5. WAIVER OF JURY TRIAL. EACH PARTY HERETO HEREBY WAIVES TRIAL BY JURY IN ANY JUDICIAL
PROCEEDING INVOLVING, DIRECTLY OR INDIRECTLY, ANY MATTER (WHETHER SOUNDING IN TORT, CONTRACT OR
OTHERWISE) IN ANY WAY ARISING OUT OF, RELATED TO, OR CONNECTED WITH THIS AMENDMENT OR THE OTHER
TRANSACTION DOCUMENTS OR THE RELATIONSHIP ESTABLISHED HEREUNDER OR THEREUNDER.

          Section 6. Binding Effect. This Amendment shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and permitted assigns (including any trustee in
bankruptcy).

          Section 7. Counterparts. This Amendment may be executed in any number of counterparts and by
different parties hereto in separate counterparts, each of which when so executed shall be deemed to be an original and all of which when taken together
shall constitute one and the same agreement. Delivery of an executed counterpart hereof via
facsimile or electronic mail of an executed .pdf copy thereof shall, to the fullest extent
permitted by applicable law, have the same force and effect and delivery of an originally executed
counterpart hereof.

<Signature pages follow>

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     IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be executed and delivered
by their duly authorized officers as of the date hereof.

RPM FUNDING CORPORATION, as Seller

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Keith R. Smiley
 	 
	 	 	Name:  	Keith R. Smiley 	 
	 	 	Title:  	Vice President and Treasurer 	 
	 

RPM INTERNATIONAL INC., as Servicer

	 	 	 	 	 
	 	 	 
	 	By:  	/s/ Edward W. Moore
 	 
	 	 	Name:  	Edward W. Moore 	 
	 	 	Title:  	Vice President, General Counsel

and Secretary 	 
	 

Signature Page to Amendment No. 5 to Receivables Purchase Agreement

 

 

	 	 	 	 	 
	 	FIFTH THIRD BANK, as Purchaser

 	 
	 	By:  	/s/ Andrew D. Jones
 	 
	 	 	Name:  	Andrew D. Jones 	 
	 	 	Title:  	Vice President 	 
	 

Signature Page to Amendment No. 5 to Receivables Purchase Agreement

 

 

WELLS FARGO BANK, NATIONAL ASSOCIATION,  As Purchaser And Administrative Agent 

	 	 	 	 	 
	 	 	 
	 	By:  	Michael J. Landry
 	 
	 	 	Name:  	Michael J. Landry 	 
	 	 	Title:  	Vice President 	 

Signature Page to Amendment No. 5 to Receivables Purchase Agreement

 

 

ANNEX A

SCHEDULE A

COMMITMENTS OF THE PURCHASERS

	 	 	 
	PURCHASER	 	Commitment
	Fifth Third Bank
	 	$67,500,000
	Wachovia Bank, National Association
	 	$82,500,000

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