Document:

Exhibit 10.2(a)

 

Execution Version

 

FIRST LIEN
SENIOR SECURED PROMISSORY NOTE

 

	
  $460,000,000

  	
   

  	
  October 26, 2007

  

 

For value received, NEP EQUIPMENT FINANCE
CO., LLC, a Delaware limited liability company (the “Borrower”), hereby
unconditionally promises to pay to the order of HSH NORDBANK AG, NEW YORK
BRANCH, for the pro rata account of each financial institution party hereto as
a lender, (each individually, together with its successors and permitted
assigns, a “Lender” and collectively, the “Lenders”), the
principal amount of FOUR HUNDRED SIXTY MILLION DOLLARS ($460,000,000) (the “Note
Amount”) or such lesser principal amount as may be outstanding hereunder in
accordance with the terms hereof on the Maturity Date, as defined below, together
with all accrued and unpaid interest, fees and any other amounts due and
payable to the Agents and Lenders pursuant to the provisions of this First Lien
Senior Secured Promissory Note (this “Note”).

 

The Borrower promises to pay interest on the outstanding
principal amount of each Loan (as defined below) under this Note for the period
from and including the date of such Loan to, but excluding, the date such Loan
shall be repaid in full, in each case as and when required by Section 2(b) of
this Note.

 

All payments under this Note shall be made in
Dollars, in immediately available funds and without set-off, deduction or
counterclaim.  Any extension of time for
the repayment of the principal outstanding under this Note resulting from the
due date falling on a non-Business Day shall be included in the computation of
interest.

 

The Borrower hereby waives presentment,
notice of dishonor, protest and any other notice or formality with respect to
this Note except for such notice as provided herein.

 

1.             Definitions and Interpretation.

 

(a)           Definitions.  Unless otherwise
defined herein, all capitalized terms used in this Note shall have the
following meanings:

 

“Acceptable Alternative Funding Commitments” shall
mean one or more revolving credit facilities or other funding commitments
entered into by the Borrower on terms and conditions satisfactory to the
Super-Majority Lenders in their sole discretion, for purposes of paying the
Contract Price under one or more Turbine Supply Agreements.

 

“Account
Control Agreement” shall mean the Deposit Account Control Agreement,
dated as of October 26, 2007, by and among the Citizens Bank of
Connecticut, a Connecticut stock savings bank, the Borrower and the
Collateral Agent.

 

“Administrative Agent” shall mean HSH Nordbank AG, New
York Branch, in its capacity as administrative agent for the Lenders under this
Note, together with its successors and permitted assigns in such capacity.

 

 

“Affiliate” shall mean, as to any Person, any other
Person that directly or indirectly controls, or is under common control with,
or is controlled by, such Person.  As
used in this definition, “control” (including, with its correlative
meanings, “controlled by” and “under common control with”) shall
mean possession, directly or indirectly, of power to direct or cause the
direction of management or policies (whether through ownership of securities or
membership or other ownership interests, by contract or otherwise); provided,
however, that, in any event, any Person that owns directly or indirectly
30% or more of the securities having ordinary voting power for the election of
directors or other governing body of a corporation or 30% or more of the
membership or other ownership interests of any other Person (other than as a
limited partner of such other Person) will be deemed to control such
corporation or other Person.

 

“Agents” shall
mean the Administrative Agent, the Collateral Agent and the Syndication Agent.

 

“Altona Project”
shall mean the approximately 97.5 MW wind generation facility to be located in
the State of New York, near the town of Altona.

 

“Anti-Money Laundering Laws” shall
mean any laws or regulations relating to money laundering or terrorist
financing, including, without limitation, the Bank Secrecy Act, 31 U.S.C.
sections 5301 et seq.; the
Patriot Act; Laundering of Monetary Instruments, 18 U.S.C. section 1956;
Engaging in Monetary Transactions in Property Derived from Specified Unlawful
Activity, 18 U.S.C. section 1957; the Financial Recordkeeping and Reporting of
Currency and Foreign Transactions Regulations, 31 C.F.R. Part 103; and any
similar laws or regulations currently in force or hereafter enacted.

 

“Applicable
Lending Office” means, for each Lender and for each Type of Loan,
the “Lending Office” of such Lender (or of an affiliate of such Lender)
designated for such Type of Loan in Annex I to this Note or such other
office of such Lender (or of an affiliate of such Lender) as such Lender may
from time to time specify to the Administrative Agent and Borrower as the
office by which its Loans of such Type are to be made and maintained.

 

“Applicable Margin” shall mean (a) with
respect to any LIBO Rate Loans, 1.75% per annum and (b) with respect to
any Base Rate Loans, .75% per annum.

 

“Appraisal Procedure” shall have the
meaning given to such term in Exhibit C.

 

“Appraiser” shall mean DAI Management
Consultants, Inc.

 

“Availability Period” shall mean the
period commencing on the Closing Date and ending on the Maturity Date.

 

“Base Rate” shall mean, for any day, a
rate per annum equal the Prime Rate in effect on such day.  Any change in the Base Rate due to a change
in the Prime Rate shall be effective from and including the effective date of
such change in the Prime Rate.

 

“Base Rate Loans” shall mean Loans
that accrue interest at interest rates based upon the Base Rate.

 

2

 

“Basic Documents” shall mean this
Note, the Intercreditor Agreement, the Collateral Documents, the Fee Letter,
the Account Control Agreement and any other documents, agreements, or
instruments entered into by the Borrower, Holdco, any Holdco Secured Party, any
TSA Company and/or the owner of any Qualified Project Company, on the one hand,
and the Lenders and/or the Agents, as applicable, on the other hand, in connection
with any of the foregoing.

 

“Bellmont Project” shall mean the approximately 21.0
MW wind generation facility to be located in the State of New York, near the
town of Bellmont.

 

“Bookrunner” shall mean HSH Nordbank
AG, New York Branch.

 

“Borrower” shall have the meaning
given to such term in the first paragraph of this Note.

 

“Borrower Security Agreement” shall
have the meaning given to such term in Section 7(a)(ii).

 

“Borrowing Date” shall mean the date
of any Loan, including the Closing Date.

 

“Borrowing Notice” shall mean a
borrowing notice to be delivered by the Borrower to the Administrative Agent
with respect to each Loan, substantially in the form of Exhibit A
attached hereto.

 

“Business Day” shall mean any day on
which commercial banks are not authorized or required to close in New York, New
York.

 

“Chateaugay Project” shall mean the
approximately 106.5 MW wind generation facility to be located in the State of
New York, near the town of Chateaugay.

 

“Closing Date” shall mean the date
when the conditions precedent set forth in Section 3(a) are
satisfied, or waived by the Lenders, and the initial funding has occurred under
the Loans.  The Closing Date is the date
of this Agreement.

 

“Code” shall mean the Internal Revenue
Code of 1986, as amended, including any applicable Treasury Regulations.

 

“Collateral”
shall mean all assets which are subject or required to become subject to the
security interests or liens granted by the Borrower (or other Persons, as
applicable) under any of the Collateral Documents.

 

“Collateral Agent” shall mean HSH
Nordbank AG, New York Branch, in its capacity as collateral agent for the
Lenders and other secured parties under the Collateral Documents, together with
its successors and permitted assigns in such capacity.

 

“Collateral Documents” shall mean the
Borrower Security Agreement, the Holdco Pledge Agreement, the TSA Companies
Security Agreements, the Project Pledge Agreements, the Consents, and any other
security documents, financing statements and the like filed in connection with
the foregoing.

 

3

 

“Commercial Operation” has the meaning
given to such term in each Turbine Supply Agreement, as applicable.

 

“Commitments” shall mean the
commitment of the Lenders to make Loans to the Borrower under, and on the terms
and conditions of, this Note, up to the aggregate amount equal to the Note
Amount.

 

“Consents” shall mean, collectively,
the consents listed in Section 7(a)(v) by and among the
Borrower or the relevant TSA Company, the Collateral Agent and GE.

 

“Contract Price” shall have the
meaning given to such term in each Turbine Supply Agreement.

 

“Debt” of any Person at any date 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 other similar instruments, (c) all obligations of such Person to
pay the deferred purchase price of property or services, except trade accounts
payable arising in the ordinary course of business, (d) all obligations of
such Person under leases which are or should be, in accordance with GAAP,
recorded as capital leases in respect of which such Person is liable, (e) all
obligations of such Person to purchase securities (or other property) which
arise out of or in connection with the sale of the same or substantially
similar securities (or property), (f) all deferred obligations of such
Person to reimburse any bank or other Person in respect of amounts paid or
advanced under a letter of credit or other instrument, (g) all Debt of
others secured by a lien on any asset of such Person, whether or not such Debt
is assumed by such Person, (h) all Debt of others guaranteed directly or
indirectly by such Person or as to which such Person has an obligation substantially
the economic equivalent of a guaranty and (i) obligations of such Person
under any Interest Rate Agreements.

 

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

 

“Event of Default” shall have the meaning
given to such term in Section 6.

 

“Existing Turbine Supply Loans” shall
mean (i) the Loan Agreement, dated as of May 18, 2007, by and between
the Sponsor and CIT Capital USA Inc.; (ii) the Senior Secured Promissory
Note, dated as of June 22, 2007, by and between the 2006 TSA Company and
Paragon Noble LLC; and (iii) the Loan Agreement, dated as of December 4,
2006, by and between the 2007 TSA Company and CIT Capital USA Inc.

 

“Federal Funds Effective Rate”  shall
mean, for any day, the weighted average (rounded upwards, if necessary, to the
next 1/100 of 1%) of the rates on overnight Federal funds transactions with
members of the Federal Reserve System arranged by Federal funds brokers, as
published on the next succeeding Business Day by the Federal Reserve Bank of
New York, or, if such rate is not so published for any day that is a Business
Day, the average (rounded upwards, if necessary, to the next 1/100 of 1%) of
the quotations for such day for such transactions received by the
Administrative Agent from three Federal funds brokers of recognized standing
selected by it.

 

“Fee Letter” shall mean that certain
letter agreement, dated as of October 26, 2007, by and between HSH
Nordbank AG, New York Branch and the Sponsor.

 

4

 

“FERC” shall mean the Federal Energy
Regulatory Commission and its successors.

 

“GAAP”
shall mean generally accepted accounting principles in the United States of
America consistently applied.

 

“GE” shall mean General Electric Company, a New York
corporation.

 

“Great Plains I Project” shall mean the approximately 114.0 MW wind
generation facility to be located in the State of Texas, in the county of
Hansford, near the town of Gruver.

 

“Great Plains II Project” shall mean the approximately 126.0 MW wind
generation facility to be located in the State of Texas, in the county of
Hansford, near the town of Gruver.

 

“Governmental Authority” shall mean
any national, state, municipal, territorial, or local government, any political
subdivision thereof or any other governmental department, commission, board,
judicial, public, regulatory or statutory instrumentality, authority, body,
agency, bureau or entity, (including any zoning authority, FERC and the New
York State Public Service Commission), any of which has the authority to bind a
party at law or having jurisdiction over the Borrower, the TSA Companies and
the Relevant Qualified Project Companies.

 

“Governmental Rule” shall mean any
law, rule, regulation, ordinance, order, code, judgment, consent, decree,
directive, guideline, policy or similar form of decision of any Governmental
Authority only to the extent that such directive, guideline, policy or decision
has the force and effect of law.

 

“Holdco” shall mean NEP Equipment
Finance Hold Co., LLC, a Delaware limited liability company.

 

“Holdco Pledge Agreement” shall have
the meaning given to such term in Section 7(a)(i).

 

“Holdco Secured Party” shall mean each
secured party under the Second Lien Facility.

 

“Inchoate
Default” shall mean any event or circumstance which, with the lapse
of time, the giving of notice or both, would (if not cured or otherwise
remedied during such time) constitute an Event of Default.

 

“Independent Engineer” shall mean
Garrad Hassan America, Inc. or its successor appointed by the Majority
Lenders with the prior approval of the Borrower.

 

“Insurance Consultant” shall mean
Moore McNeil, LLC or its successor appointed by the Majority Lenders with the
prior approval of the Borrower.

 

5

 

“Intercreditor Agreement” shall mean
that certain Intercreditor Agreement, dated as of the Closing Date, by and
among the Borrower, the Collateral Agent and the relevant Holdco Secured Party,
substantially in the form attached hereto as Exhibit B.

 

“Interest Rate Agreements” shall have
the meaning given to such term in Section 2(j).

 

“Lead Arranger” shall mean KeyBank
National Association.

 

“Lender Committee” shall mean (i) HSH
Nordbank AG, New York Branch; (ii) KeyBank National Association; and (iii) one
additional Lender to be selected by the Administrative Agent and the Borrower
after the Closing Date.

 

“Lenders” shall have the meaning given
to such term in the first paragraph of this Note.

 

“Lending Office” means the office
designated as such beneath the name of each Lender set forth on Annex I
or such other office of such Lender as such Lender may specify in writing from
time to time to the Administrative Agent and the Borrower.

 

“LIBO Rate”
shall mean, for each LIBO Rate Interest Period, a rate of interest per annum, calculated
on the basis of a 360 day year, equal to the simple average (rounded upward, if
necessary, to the nearest whole multiple of 1/100 of one percent) of the rates
shown on the display referred to as the “Reuters Screen LIBOR01 Page” (or any
display substituted therefor) of the Reuters Domestic Money Service with
respect to the banks in the London interbank market named in the display as at
11:00 a.m. (London, England time) on the second Business Day prior to the
first day of the relevant LIBO Rate Interest Period, for a deposit period
comparable to the LIBO Rate Interest Period.

 

“LIBO Rate Interest Period” shall mean
any of the one, two, three or six month periods selected by the Borrower from
time to time with respect to the LIBO Rate Loans by delivery of a written
notice to the Administrative Agent, in form and substance satisfactory to the
Administrative Agent, at least three (3) Business Days prior to the
commencement of such LIBO Rate Interest Period; provided, however,
that (i) each LIBO Rate Interest Period ending on a day other than a
Business Day shall end on the next succeeding Business Day unless such next
succeeding Business Day occurs in the next following calendar month, in which
case such LIBO Rate Interest Period shall end on the next preceding Business
Day, (ii) any LIBO Rate Interest Period that would extend beyond the
Maturity Date for such Loan shall end on the relevant Maturity Date, and (iii) not
more than eight (8) LIBO Rate Interest Periods shall be outstanding at any
time.

 

“LIBO
Rate Loans” shall mean Loans that accrue interest at interest
rates based upon the LIBO Rate.

 

“Loan Maximum Outstandings”  shall mean the aggregate of (a) 80%
of the amount of the Contract Price under each Turbine Supply Agreement as of
the effective date thereof (excluding amounts solely attributable to
transportation costs for Turbine deliveries), as the Contract Price may be
adjusted from time to time pursuant to a TSA Option Approval or to give effect
to any reduction thereto associated with any appraisal conducted pursuant to and in 

 

6

 

accordance
with Section 3(b), 5(a)(xxiii) or 5(a)(xxvi)
(“80% Advance Rate”); provided, however, that, in the case
of this clause (a), in the event that any Turbine required to be delivered
under a Turbine Supply Agreement cannot be allocated to a Qualified Project or
Qualified Projects (including Turbines that were originally allocated to
proposed wind generating projects that when allocated were Qualified Projects,
but have subsequently lost their status as a Qualified Project as set forth
herein), the percentage specified above shall be reduced to 60% (“60%
Advance Rate”), subject to the Revised Advance Rate, with respect to the
portion of the Contract Price (as may be adjusted as described above)
applicable to each such Turbine, (b) all interest and fees (including, for
the avoidance of doubt, the arranger fee, administrative agent and collateral
agent fee and the up-front fee, all as described in and required to be paid
under and in accordance with the terms of the Fee Letter) payable under the
Basic Documents, and (c) 80% of the historic financing costs in respect of
the Turbines and the Turbine Supply Agreements financed under the Existing
Turbine Supply Loans in an aggregate amount not to exceed $18,200,000, all as
calculated by the Borrower, included in each Borrowing Notice delivered
pursuant to Section 2(c) and confirmed in writing by the
Administrative Agent.  For the avoidance
of doubt, the calculation of clause (a) above shall include any amounts
attributable to the Contract Price that consist of principal prepayment under
the Existing Turbine Supply Loans.

 

“Loan Minimum Availability” shall
mean, as of any date, the aggregate of: (a) (i) the aggregate amount
required as of such date to pay in full the then-remaining Contract Price due
under the Turbine Supply Agreements less (ii) the amount, if any,
available to the Borrower under Acceptable Alternative Funding Commitments (as
and to the extent then in effect and only for so long as no default has
occurred thereunder resulting in the acceleration of the Borrower’s obligations
thereunder prior to their regularly scheduled maturity) less (iii) payments
to be made at commissioning of the Turbines and thereafter in an amount equal
to 10% of the Contract Price; and (b) the estimated interest (using the
applicable LIBO Rate for any LIBO Rate Loans outstanding at such time to
calculate such estimated interest and, for all other amounts, using the then
applicable one-month LIBO Rate to estimate such interest) and fees projected to
be paid under the Basic Documents after the date of determination until the
Maturity Date, taking into account any reduction thereof that will occur on the
projected Take Out Dates in the case of this clause (b), as certified by the
Borrower and confirmed in writing by the Administrative Agent.

 

“Loans” shall mean, individually or
collectively, depending on the context, the initial loan made on the Closing
Date and the Subsequent Loans, in each case, in accordance with the terms and
conditions of this Note.

 

“Majority Lenders” shall mean, as of
any date, the Lenders having outstanding Loans and Commitments representing
greater than 50% of the aggregate amount of all outstanding Loans and
Commitments as of such date.

 

“Mandate Agreement” shall mean that
certain NEP Equipment Finance Co. First Lien Senior Secured Credit Facility
Mandate Letter, dated as of August 29, 2007, by and between HSH Nordbank
AG, New York Branch and the Sponsor.

 

“Mandated Lead Arranger” shall mean
HSH Nordbank AG, New York Branch, in its capacity as the lead arranger under
the Mandate Agreement.

 

7

 

“Material Adverse Effect” shall mean
any event or occurrence that could reasonably be expected to have a material
adverse effect on any of the following:  (a) the
business, operations, condition or prospects of the Borrower and the TSA
Companies, taken as a whole; (b) the ability of Holdco to fund and
maintain the Required Equity Portion as and when required under the applicable
Basic Documents; (c) the ability of the Borrower to repay the Loans as and
when required under the applicable Basic Documents; (d) the ability of the
Borrower, the Sponsor and the TSA companies, taken as a whole, on the one hand,
or GE, on the other hand, to perform any material obligation under each Turbine
Supply Agreement or each Basic Document to which it is party, or (e) the
priority and enforceability of the Lenders’ liens on the Collateral as provided
in the Collateral Documents.

 

“Maturity Date” shall mean the earlier
to occur of (a) the acceleration of the obligations of the Borrower
hereunder in accordance with the terms and conditions hereof following an Event
of Default, and (b) March 31, 2010.

 

“Non-Recourse Party” shall have the
meaning given to such term in Section 9.

 

“Note” shall have the meaning given to
such term in the introductory paragraph hereof.

 

“Obligations”
shall mean, with respect to the Sponsor, Holdco, Borrower, any TSA Company or
any owner of a Relevant Qualified Project Company (only to the extent of each
such Person’s respective obligations under any Basic Document to which it is a
party), all Loans and obligations of performance, howsoever arising (and
whether arising or incurred before or after any bankruptcy, insolvency,
reorganization or other similar proceeding), owed by the Borrower, Sponsor,
Holdco, any owner of a Relevant Qualified Project Company or any TSA Company
(only to the extent of each such Person’s respective obligations under any
Basic Document to which it is a party) to the Lenders (whether or not evidenced
by any note or instrument and whether or not for the payment of money), due or
to become due, now existing or hereafter arising, pursuant to the terms of this
Note or any of the other Basic Documents, including all principal, interest,
fees, charges, expenses, attorneys’ fees and accountants’ fees chargeable and
other amounts payable by the Borrower, Holdco, Sponsor, any owner of a Relevant
Qualified Project Company or any TSA Company (only to the extent of each such
Person’s respective obligations under any Basic Document to which it is a
party) under this Note or any of the other Basic Documents.

 

“OFAC”
shall mean the United States Department of Treasury Office of Foreign Assets
Control.

 

“OFAC Laws”
shall mean any laws, regulations, and Executive Orders relating to the economic
sanctions programs administered by OFAC, including without limitation, the
International Emergency Economic Powers Act, 50 U.S.C. sections 1701 et seq.; the Trading with the Enemy Act,
50 App. U.S.C. sections 1 et seq.;
and the Office of Foreign Assets Control, Department of the Treasury
Regulations, 31 C.F.R. Parts 500 et seq.
(implementing the economic sanctions programs administered by OFAC).

 

“OFAC SDN
List” shall mean the list of “Specially Designated Nationals and Blocked
Persons” maintained by OFAC.

 

8

 

“OFAC Violation” shall have the
meaning given to such term in Section 5(xxiv).

 

“Patriot Act” shall mean the Uniting
and Strengthening America by Providing Appropriate Tools Required to Intercept
and Obstruct Terrorism Act of 2001 (USA Patriot Act), Pub. L. 107-56 and all
other laws and regulations relating to money-laundering and terrorist activities.

 

“Permit” shall mean any approval,
consent, waiver, exemption, variance, franchise, permit, authorization,
registration, or license to, with or from a Governmental Authority.

 

“Permitted Debt” shall mean (a) the
Loans and the other Obligations; (b) subordinated debt provided by Holdco
in an amount not to exceed the contributed Required Equity Portion at any time
and subject to a subordination agreement in form and substance reasonably
satisfactory to the Administrative Agent; (c) any obligations incurred by
the Borrower or any TSA Company under any Turbine Supply Agreement; and (d) obligations
under Interest Rate Agreements; and (e) Acceptable Alternative Funding
Commitments.

 

“Permitted Liens” shall mean (a) any liens
created pursuant to the Basic Documents or the Turbine Supply Agreements; (b) liens
imposed by law for taxes that are not yet due or that are being contested in
good faith by the Borrower or the relevant TSA Company and for which adequate
reserves have been set aside therefor or that are secured by a bond reasonably
acceptable to the Administrative Agent; (c) liens arising solely by virtue
of any statutory or common law provision relating to banker’s liens, rights of
set-off or similar rights and remedies as to deposit accounts or other funds
maintained with a creditor depository institution; (d) other liens in
an aggregate amount not to exceed $1,000,000; and (e) liens on the
Collateral arising out of a Second Lien Facility, solely to the extent that
such liens are junior and subordinate in all respects to the Lenders’ liens in
the Collateral pursuant to the Intercreditor Agreement.

 

“Person” shall mean any individual,
corporation, company, limited liability company, voluntary association,
partnership, joint venture, trust, unincorporated organization or government
(or any agency, instrumentality or political subdivision thereof).

 

“Pledged
Equity Interests” shall mean (a) all the issued and outstanding
membership interests of each TSA Company, all such interests are owned by the
Borrower; (b) all of the issued and outstanding membership interests of
the Borrower, all such interests are owned by Holdco and (c) all of the
issued and outstanding membership interests of each Relevant Qualified Project
Company to which Turbines have been allocated.

 

“Prime
Rate” shall mean the rate of interest per annum publicly
announced from time to time by HSH Nordbank AG, New York Branch as such bank’s
prime rate with respect to extensions of credit made by it in the United
States; each change in the Prime Rate shall be effective from and including the
date such change is publicly announced as being effective.

 

“Project Pledge Agreements” shall have
the meaning given to such term in Section 7(a)(iii).

 

“Project Review” shall have the
meaning given to such term in Section 5(a)(xxii).

 

9

 

“Proportionate
Share” shall mean the percentage set forth opposite each Lender’s
name on Annex I, as such Annex I may be amended from time to
time, as such percentage may be modified from time to time as a result of
permitted transfers of Commitments or Loans by such Lender.

 

“PTC” shall mean production tax
credits under Section 45 of the Code.

 

“PTC Expiration Date” shall have the
meaning given to such term in Section 5(a)(xxii).

 

“Purchase Orders” shall mean,
collectively, (a) Purchase Order No. 1 and Purchase Order No. 2
with respect to the 2006 TSA, entered into by and between GE and the 2006 TSA
Company and (b) any additional purchase orders entered into under any
Turbine Supply Agreement by and between GE and the applicable TSA Company.

 

“Qualified Project” shall have the
meaning given to such term in Section 5(a)(xxii).  For the avoidance of doubt, based on Project
Reviews delivered to the Agents and Lenders prior to the Closing Date and
reviewed by the Agents and Lenders, the following are Qualified Projects as of
the Closing Date: (i) Altona Project; (ii) Bellmont Project; (iii) Chateaugay
Project; (iv) Great Plains I Project; (v) Great Plains II Project; (vi) Thumb
Huron Project and (vii) Wethersfield Project.

 

“Qualified Project Companies” shall
mean, collectively or individually, depending on the context, the
single-purpose companies that are Affiliates of the Borrower formed for the
development, financing, construction, acquisition, ownership, operation and/or
maintenance of a Qualified Project; provided, however, that in no event shall
the Borrower or an Affiliate of the Borrower own less than 80%, of the economic
and voting interests, of each such Qualified Project Company.

 

“Qualified Project Company Permitted Debt”
shall mean Debt provided on a commercial arms’-length basis to the Qualified
Project Company for the development of the related Qualified Project, solely to
the extent such loans do not exceed 50% of the relevant development costs
related to such Qualified Project; provided, however, that the
Borrower shall notify the Administrative Agent in writing on or prior to the
date that any Qualified Project Company enters into an agreement in respect of
Qualified Project Company Permitted Debt.

 

“Qualified Project Company Permitted Liens”
shall mean (a) any liens created pursuant to the Basic Documents or the
Turbine Supply Agreements; (b) liens imposed by law for taxes that are not
yet due or that are being contested in good faith by the Borrower, Holdco, the
Sponsor, any TSA Company or any Relevant Qualified Project Company and for
which adequate reserves have been set aside therefor or that are secured by a
bond reasonably acceptable to the Administrative Agent; (c) carriers’,
warehousemen’s, mechanics’, materialmen’s, repairmen’s and other like liens
imposed by law, arising in the ordinary course of business and securing
obligations either for amounts not yet due or that are being contested in good
faith by the Borrower, Holdco, the Sponsor, any TSA Company or any Relevant
Qualified Project Company and for which adequate reserves have been set aside
therefor or are secured by a bond reasonably acceptable to the Administrative
Agent; (d) pledges and deposits made in the ordinary course of business in
compliance with workers’ compensation, unemployment insurance and other social
security laws or regulations; (e) cash deposits to secure the 

 

10

 

performance of
bids, trade contracts, leases, statutory obligations, surety and appeal bonds,
performance bonds and other obligations of a like nature, in each case in the
ordinary course of business; (f) liens arising solely by virtue of any
statutory or common law provision relating to banker’s liens, rights of set-off
or similar rights and remedies as to deposit accounts or other funds maintained
with a creditor depository institution; (g) easements, rights-of-way,
restrictions, defects or other exceptions to title or other similar
encumbrances incurred in the ordinary course of business which are not incurred
to secure Debt, and which do not in any case materially detract from the value
of the property subject thereto or interfere with the ordinary conduct of the
Borrower’s business such that it could not reasonably be expected to have a
Material Adverse Effect; (h) any other liens, easements, zoning
restrictions, rights-of-way or similar encumbrances on real property imposed by
law or arising in the ordinary course of business but that could not reasonably
be expected to have a Material Adverse Effect; and (i) liens arising out
of judgments or awards that do not otherwise constitute an Event of Default so
long as an appeal or proceeding to review is being prosecuted in good faith and
for the payment of which adequate reserves have been set aside or are secured
by a bond reasonably acceptable to the Administrative Agent.

 

“Quarterly Date” shall mean the last
Business Day of each calendar quarter.

 

“Relevant Qualified Project Company”
shall mean any Qualified Project Company.

 

“Replaced Equity Interests” shall have
the meaning given to such term in Section 7(c).

 

“Required Equity Portion” shall have the
meaning given to such term in Section 5(a)(xxi).

 

“Required Turbine Equity Payment”
shall mean, with respect to each Turbine, (i) to the extent the 80%
Advance Rate is applicable to such Turbine at the time such calculation is
being made, 20% of the Contract Price allocated to such Turbine and (ii) to
the extent the 60% Advance Rate is applicable to such Turbine at the time such
calculation is being made, 40% of the Contract Price allocated to such Turbine,
in the case of clauses (i) and (ii), as calculated by the Borrower and
confirmed by the Administrative Agent.

 

“Revised Advance Rate” has the meaning
given to such term in Section 5(a)(xxvi).

 

“Second Lien Facility” shall mean a
financing facility entered into by and between Holdco and the Holdco Secured
Parties to provide financing to Holdco to enable Holdco to fund its Required
Equity Portion; provided, however, that any and all liens granted
to any Holdco Secured Party in the Collateral shall be junior and subordinate
to the Lenders’ liens in the Collateral and the relevant Holdco Secured Parties
shall duly execute and deliver the Intercreditor Agreement.

 

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

 

“Subsequent Loan” shall have the
meaning given to such term in Section 3(b).

 

11

 

“Substitutable Lender” shall have the
meaning given to such term in Section 2(i)(iv).

 

“Super-Majority Lenders” shall mean,
as of any date, the Lenders having outstanding Loans and Commitments
representing greater than 75% of the aggregate amount of all outstanding Loans
and Commitments as of such date.

 

“Syndication Agent” shall mean HSH
Nordbank AG, New York Branch.

 

“Take Out Dates” shall mean the
following: (i) with respect to each of the 2006 TSA Company, 2006 TSA, the
2007 TSA Company and the 2007 TSA, April 30, 2008; (ii) with respect
to the 2008 TSA Company and the 2008 TSA, October 31, 2008 and (iii) with
respect to the 2009 TSA Company and the 2009 TSA, October 31, 2009.

 

“Thumb Huron Project” shall mean the approximately 69 MW wind
generation facility to be located in the State of Michigan, near the town of
Thumb Huron.

 

“TSA Companies” or “TSA Company”
shall mean, individually or collectively, as the context requires, (i) the
2006 TSA Company; (ii) the 2007 TSA Company; (iii) the 2008 TSA
Company and (iv) once the conditions precedent set forth in Section 3(b)(x) are
satisfied or waived by the Majority Lenders, the 2009 TSA Company.

 

“TSA Companies Security Agreements”
shall have the meaning given to such term in Section 7(a)((iv)).

 

“TSA Options Approval” shall mean the
written consent of the Administrative Agent, acting on behalf of the Majority
Lenders and in consultation with the Independent Engineer, (such consent not to
be unreasonably withheld or delayed) to a request by the Borrower to supplement
a Turbine Supply Agreement to add, remove or modify any option listed in the
schedule of options to such Turbine Supply Agreement (e.g. windfarm management
systems, low voltage ride through, etc.; provided, however,
specifically excluding any transportation costs), along with a corresponding
price adjustment to the Contract Price provided for under such Turbine Supply
Agreement due to the exercise of such option.

 

“Turbine Reallocation Certificate”
shall mean a certificate substantially in the form of Exhibit D
attached hereto duly executed and delivered by the Borrower.

 

“Turbine Supply Agreements” shall
mean, collectively or individually, depending on the context, (i) the 2006
TSA; (ii) the 2007 TSA; (iii) the 2008 TSA and (iv) once the
conditions precedent set forth in Section 3(b)(x) have been
satisfied or waived by the Majority Lenders, the 2009 TSA.

 

“Turbines” shall mean the 1.5 MW SLE
wind turbines manufactured by GE that are the subject of the Turbine Supply
Agreements, together with the associated mechanical systems, electrical
systems, control systems, communications systems and towers.

 

“Type” shall mean LIBO Rate Loans or
Base Rate Loans, as applicable, each of which constitutes a Type of Loans.

 

12

 

“UCC” shall mean the Uniform
Commercial Code of the jurisdiction the law of which governs the document in
which such term is used or which governs the creation or perfection of the
liens granted thereunder.

 

“Wethersfield Project” shall mean the approximately 126.0 MW wind
generation facility to be located in the State of New York, near the town of
Wethersfield.

 

“2006 TSA” shall mean (i) that
certain purchase order No. 1 dated as of February 15, 2006, under
that certain Master Contract for the Sale of Power Generation Equipment and
Related Services, dated as of February 15, 2006 as amended by that certain
first amendment to Master Contract for the Sale of Power Generation Equipment
and Related Services, dated as of August 24, 2006 (the “Master Contract”),
as assigned by Noble Environmental Power 2006 Hold Co. LLC to the 2006 TSA
Company pursuant to that certain Turbine Assignment Agreement dated as of June 1,
2007 (the “Assignment Agreement”); and (ii) that certain purchase
order No.2 dated as of February 15, 2006, under the Master Contract, as
assigned by 2006 Hold Co to the Collateral Assignor pursuant to the Assignment
Agreement.

 

“2007 TSA” shall mean the Master
Contract for the Sale of Power Generation Equipment and Related Services, dated
as of October 17, 2006, by and between GE and the 2007 TSA Company, along
with the applicable Purchase Orders (solely excluding Purchase Order No. 1,
dated as of May 2, 2007 and issued under the 2007 TSA) and as amended by
that certain First Amendment to Master Contract for the Sale of Power
Generation Equipment and Related Services, dated June 4, 2007, by and
between GE and the 2007 TSA Company and as further amended, modified and
supplemented from time to time.

 

“2008 TSA” shall mean the Master
Contract for the Sale of Power Generation Equipment and Related Services, dated
as of October 17, 2006, by and between GE and the 2008 TSA Company, along
with the applicable Purchase Orders and as amended, modified and supplemented
from time to time.

 

“2009 TSA” shall mean the Master
Contract for the Sale of Power Generation Equipment and Related Services, dated
as of September 27, 2007, by and between GE and the 2009 TSA Company,
along with the applicable Purchase Orders and as amended, modified and
supplemented from time to time.

 

“2006 TSA Company” shall mean Noble
Environmental Power 2006 Equipment Co., LLC, a Delaware limited liability
company.

 

“2007 TSA Company” shall mean Noble
Environmental Power 2007 Equipment Co., LLC, a Delaware limited liability
company.

 

“2008 TSA Company” shall mean Noble
Environmental Power 2008 Equipment Co., LLC, a Delaware limited liability
company, f/k/a Noble Environmental Power 2008
Equipment Hold Co., LLC.

 

“2009 TSA Company” shall mean Noble
Environmental Power 2009 Equipment Co., LLC, a Delaware limited liability
company.

 

13

 

“2009 TSA Company Pledge Agreement”
shall mean the Pledge Agreement, dated as of the date hereof, by the Borrower
in favor of the lender under the Second Lien Facility.

 

“60% Advance Rate” shall have the
meaning given to such term in the definition of Loan Maximum Outstandings.

 

“80% Advance Rate” shall have the
meaning given to such term in the definition of Loan Maximum Outstandings.

 

(b)           Certain Rules of Interpretation. In this Note, unless otherwise indicated, the singular includes
the plural and the plural the singular; words importing any gender include the
other gender; references to statutes or regulations are to be construed as
including all statutory or regulatory provisions consolidating, amending or
replacing the statute or regulation referred to; references to “writing”
include printing, typing, lithography and other means of reproducing words in a
tangible visible form; the words “including,” “includes” and “include” shall be
deemed to be followed in each instance by the words “without limitation”;
references to articles, sections (or subdivisions of sections), exhibits,
annexes or schedules are to this Note; references to agreements and other
contractual instruments shall be deemed to include all subsequent amendments,
extensions and other modifications to such agreements or instruments (without,
however, limiting any prohibition on any such amendments, extensions and other
modifications by the terms of this Note); and references to Persons include
their respective successors and permitted assigns and, in the case of any
government authorities, Persons succeeding to their respective functions and
capacities.

 

2.             Loans; Commitments; Interest;
Repayment; Prepayment; Change in Circumstances; Yield Protection.

 

(a)       Loans and Commitments.  Subject to the terms and conditions set forth
herein, each Lender agrees to make Loans to the Borrower in Dollars from time
to time during the Availability Period (as requested in the relevant Borrowing
Notice), up to twice monthly (or more often with respect to any Loans made
under the last sentence of Section 2(b)(ii)), in an aggregate
principal amount (including any fees or interest capitalized hereunder) at any
one time outstanding not to exceed the aggregate Commitments and, in the case
of such Lender, its Proportionate Share of the aggregate Commitments.  Within such limit, the Borrower may from time
to time request Loans, prepay Loans in whole or in part pursuant to Section 2(e) and
re-borrow Loans under this Section 2(a), all on and subject to the
terms and conditions of this Note.  The
Obligations with respect to the Loans shall be secured by the Collateral.

 

(b)       Interest Provisions.

 

(i)    The
Borrower shall pay interest on the unpaid balance of each Loan from the date of
the funding of such Loan until the repayment or prepayment thereof, at its
option at the following rate per annum (A) with respect to LIBO Rate
Loans, the LIBO Rate (as in effect from time to time) plus the Applicable
Margin, or (B) with respect to Base Rate Loans, the Base Rate plus
the Applicable Margin.  Interest with
respect to LIBO Rate Loans shall be payable on the basis of a year of
360 days for the actual number of days elapsed, and interest with respect
to Base Rate Loans shall be payable on the basis of a year of 365 days for
the actual number of days elapsed.  

 

14

 

Following the receipt of notice from the
Administrative Agent of the occurrence of an Event of Default and as long as
such Event of Default is continuing, the interest payable by the Borrower on
all Loans then outstanding will be equal to the interest rate otherwise payable
with respect thereto pursuant to the first sentence of this Section 2(b)(i) plus
2.00% per annum.

 

(ii)   All
interest accrued pursuant to Section 2(b)(i) shall be due and
payable, subject to Section 2(e), (A) with respect to LIBO
Rate Loans: (1) at the end of each LIBO Rate Interest Period, and (2) on
the Maturity Date; and (B) with respect to Base Rate Loans: (1) on
each Quarterly Date, and (2) on the Maturity Date.  Except as otherwise provided in this Note,
the interest accrued pursuant to the immediately preceding sentence may be paid
from the proceeds of the Subsequent Loans, and such Subsequent Loans shall be
added to the aggregate principal amount of outstanding Loans under this Note; provided,
however, that Turbines are included in the Collateral at such time.

 

(iii)  The
Borrower shall have the right, upon delivery of a three (3) Business Days’
written notice thereof to the Administrative Agent, to convert Loans of one
Type into Loans of another Type or to continue Loans of the same Type; provided,
however, that, to the extent the Borrower converts Loans of one Type into
Loans of another Type, the Borrower shall pay any and all interest due in
respect of such Loan on the date of conversion; provided, further,
however, that upon the occurrence of an Event of Default, the
Administrative Agent may (and at the request of the Majority Lenders, shall)
suspend the Borrower’s right to borrow any LIBO Rate Loans, to convert any Base
Rate Loan into a LIBO Rate Loan and/or to continue any LIBO Rate Loans, and all
LIBO Rate Loans then outstanding shall be automatically converted (on the last
day of each respective LIBO Rate Interest Period) into Base Rate Loans.

 

(iv)  The
Borrower authorizes the Administrative Agent to record in an account or
accounts maintained by the Administrative Agent on its books (i) the
interest rates applicable to all Loans and the effective dates of all changes
thereto; (ii) the LIBO Rate Interest Period for each Loan that is a LIBO
Rate Loan; (iii) the date and amount of each principal and interest
payment on each Loan; and (iv) such other information as the
Administrative Agent may determine is necessary for the computation of interest
payable by the Borrower hereunder consistent with the basis hereof.  The Borrower agrees that all such
computations by the Administrative Agent of interest shall be conclusive in the
absence of manifest error.  The
Administrative Agent shall, at the request of Borrower, deliver to Borrower a
statement detailing such computations. 
All computations of interest on Loans hereunder shall include the first
day but exclude the last day of the period for which such interest is payable
and shall be based upon a year of (x) in the case of Base Rate Loans, 365
days and (y) in the case of LIBO Rate Loans, 360 days, in each case for
the actual days elapsed.

 

(c)       Loan Funding.

 

(i)            To
request a Loan, the Borrower shall submit to the Administrative Agent a
completed Borrowing Notice and all documents required as conditions precedent
pursuant to Section 3(a) or 3(b), as applicable, by
12:00 noon New York time at least (A) with respect to LIBO Rate
Loans, at least three (3) Business Days prior to the requested Borrowing
Date for such Loan and (B) with respect to Base Rate Loans, at least one (1) Business
Day prior to the requested Borrowing Date for such Loan, unless, in each such
case, a shorter period is otherwise agreed to by the Administrative Agent and
the Lenders.

 

15

 

(ii)           Funding
of Loans.  All Loans shall be made on
a pro rata basis by the Lenders in accordance with their respective Proportionate
Shares, with the borrowing of Loans to be comprised of a Loan by each Lender
equal to such Lender’s Proportionate Share of such borrowing.  No later than 11:00 a.m., New York time,
on the date of the requested borrowing set forth in a timely delivered
Borrowing Notice and subject to the satisfaction or waiver of the conditions
precedent set forth in Section 3(a) or 3(b), as
applicable, each Lender shall make available the Loans requested in the
Borrowing Notice in Dollars and in immediately available funds, by transferring
such funds to the account of the Administrative Agent for further distribution
by the Administrative Agent to the account or accounts specified by the
Borrower in the Borrowing Notice; provided, however, that, if the
Collateral Agent does not then have a perfected lien on such account, any and
all payments in respect of the Contract Price being funded with the proceeds of
the Loans requested under such Borrowing Notice shall be distributed directly
to the account of GE specified in such Borrowing Notice.

 

(d)       Cancellation of
Commitments.  The Borrower may cancel
part or all of the outstanding Commitments without premium or penalty at any
time by giving written notice to the Administrative Agent and at such time the
Commitments shall automatically and permanently be reduced by the amount of the
requested cancellation.

 

(e)       Prepayments.

 

(i)    Optional
Prepayments.  The Borrower shall have
the right to make optional prepayments of the outstanding principal of the
Loans without premium or penalty at any time and in any amount; provided,
however, that (A) the Borrower shall give the Administrative Agent
notice of such optional prepayment by 12:00 noon New York time on the
Business Day prior to the date of such proposed prepayment (which date shall be
a Business Day), and (B) the amount of such prepayment shall be in a
minimum aggregate amount of $500,000 or such lesser amount of all outstanding
Loans; and provided, further, that in the case of any such
prepayment of LIBO Rate Loans, the Borrower shall be obligated to pay any and
all breakage costs incurred by the Lenders within ten (10) Business Days
after receiving a demand therefor from the affected Lender (accompanied by a
certificate from such Lender setting forth in reasonable detail such breakage
costs) absent manifest error.  Any such
prepayment of the Loans shall be accompanied by a payment in respect of
capitalized interest and fees, which payment shall be calculated in accordance
with the methodology set forth in Annex III.

 

(ii)       Mandatory
Prepayments.  To the extent the
Borrower elects its option under Section 7(c)(ii) (or is
otherwise required pursuant to the terms of this Agreement) to remove a Turbine
Supply Agreement or a Turbine from the Collateral, the Borrower shall, to the
extent that outstanding Loans exceed the Loan Maximum Outstandings, repay the
outstanding principal of the Loans (including any related capitalized fees or
interest) made hereunder in respect of the Contract Price attributable to such
Turbine Supply Agreement or Turbine, as applicable, as calculated by the
Borrower and confirmed in writing by the Administrative Agent, without premium
or penalty; provided, however, (A) the outstanding amount of the Loans following
such mandatory prepayment shall be in an aggregate amount equal to or less than
the Loan Maximum Outstandings and the remaining unused Commitments available
following such mandatory prepayment shall be in an aggregate amount greater
than or equal to the Loan Minimum Availability, in each case, as calculated by
the Borrower and confirmed in writing by the Administrative Agent; and (B) in
the case of any such prepayment of LIBO Rate 

 

16

 

Loans, the Borrower shall be obligated to pay any and all
breakage costs incurred by the Lenders within ten (10) Business Days after
receiving a demand therefor from the affected Lender (accompanied by a
certificate from such Lender setting forth in reasonable detail such breakage
costs) absent manifest error.  Further,
to the extent the Borrower is required to make a mandatory prepayment of Loans
required under Section 5(a)(xviii), Section 5(a)(xxiii),  Section 5(a)(xxvi) or Section 5(a)(xxvii),
(i) the Borrower shall be obligated to pay any and all breakage costs
incurred by the Lenders with respect to a LIBO Rate Loan immediately upon
receiving a demand therefor from the affected Lender (accompanied by a
certificate from such Lender setting forth in reasonable detail such breakage
costs) absent manifest error and (ii) the Borrower shall immediately
prepay the outstanding principal of the Loans (including any related
capitalized fees or interest) as required pursuant to the terms of such
sections.  Any such prepayment of the
Loans shall be accompanied by a payment in respect of capitalized interest and
fees, which payment shall be calculated in accordance with the methodology set
forth in Annex III.

 

(f)        Repayments.  The Borrower hereby unconditionally promises
to pay to the Administrative Agent for the account of each Lender the then
unpaid principal amount of each Loan, and all other Obligations on the Maturity
Date.  Any such prepayment of the Loans
shall be accompanied by a payment in respect of capitalized interest and fees,
which payment shall be calculated in accordance with the methodology set forth
in Annex III.

 

(g)       Other Payment Terms.

 

(i)    Borrower
shall make all payments due to the Administrative Agent hereunder at its
account identified in Annex I from time to time, in lawful money of
the United States and in immediately available funds not later than 1:00 p.m.,
New York time, on the date on which such payment is due.  Any payment made after such time on any day
shall be deemed received on the next Business Day after such payment is
received.  Upon receipt of any payment
hereunder on behalf of any Lender, the Administrative Agent shall remit such
payment to such Lender no later than 3:00 p.m., New York time, on the date
of receipt if received prior to 1:00 p.m., New York time, on such day, or
otherwise on the next Business Day.

 

(ii)   Unless
otherwise specified in this Note, whenever any payment due hereunder shall fall
due on a day other than a Business Day, such payment shall instead be due on
the next succeeding Business Day, and such extension of time shall be included
in the computation of interest or fees in respect of the Loans required to be
repaid.

 

(iii)  Except as
otherwise provided in this Note, payments made under this Note and the other
Basic Documents shall be applied first, to any fees, costs, charges or
expenses payable to the Agents hereunder or under the other Basic Documents, second,
to any fees, costs, charges or expenses payable to the Lenders hereunder or
under the other Basic Documents, third, to any accrued but unpaid
interest on the Loans, and fourth, to the outstanding principal of the
Loans.

 

(iv)  Except as
otherwise provided herein, (A) each borrowing consisting of Loans shall be
made or allocated among the Lenders pro rata
according to their respective Proportionate Shares and (B) each payment of
principal of and interest on Loans and fees payable pursuant to Section 2(h) shall
be made or shared among the Lenders holding such Loans pro rata according to the respective
unpaid principal amounts of such Loans held by such Lenders.  Not later than 11:00 a.m., New York
time, on the date of each borrowing, each Lender shall make available to the 

 

17

 

Administrative Agent at its account identified in Annex
I from time to time, in immediately available funds and in lawful money of
the United States, such Lender’s Proportionate Share of the Loans requested by
Borrower pursuant to the relevant Borrowing Notice (subject in each case to the
provisions of this Note, including the satisfaction or waiver of the conditions
precedent set forth in Section 3(a) and Section 3(b),
as applicable).  The failure of any
Lender to make its Proportionate Share of the Loans required to be made by it
on any Borrowing Date hereunder shall not relieve any other Lender from of its
obligation to make its Proportionate Share of Loans required hereunder; provided,
however, that neither any non-defaulting Lender nor any Agent shall be
responsible for the failure of any defaulting Lender to make any Loan as
required hereunder.  To the extent that
relevant conditions precedent in Section 3(a) and Section 3(b) have
been satisfied or waived, as required, as of the relevant Borrowing Date, the
Administrative Agent may assume that each Lender has made its Proportionate
Share of Loans available to the Administrative Agent pursuant to this Section 2(g)(iv) and
may, in reliance on such assumption (but shall not be required to), make the
amount thereof available to Borrower on such borrowing date, and if any Lender
has not made its Proportionate Share of Loans available to the Administrative
Agent as of such date, such Lender shall forthwith pay to the Administrative
Agent on demand such corresponding amount with interest thereon, for each day
from and including the date such amount is made available to Borrower to but
excluding the date of payment to the Administrative Agent, at the Federal Funds
Effective Rate plus 3% without any right to indemnification from Borrower in
respect of such interest.  If such defaulting
Lender does not pay such amount within three (3) Business Days after the
date of such borrowing, the Administrative Agent may make a demand therefor
from Borrower, and Borrower shall, on demand, repay to the Administrative Agent
the principal amount of Loans made by the Administrative Agent in lieu of such
Lender together with interest accruing thereon in accordance with the relevant
Borrowing Notice during the period commencing on the date such Loan was made by
the Administrative Agent and ending on the date when the Administrative Agent recovers
the principal amount of such Loan and interest accrued thereon from Borrower
(and the Borrower shall thereafter be entitled to recover such amount from such
defaulting Lender).  If any Lender shall
obtain any payment (whether voluntary, involuntary, through the exercise of any
right of setoff, or otherwise) on account of Loans (or interest thereon or fees
payable to such Lender pursuant to Section 2(h)) owed to it in
excess of its ratable share of payments on account of such Loans (or fees)
obtained by all Lenders entitled to such payments, such Lender shall, promptly
upon obtaining knowledge of such excess amount or receiving a notice thereof
from Administrative Agent, return such excess amount to Administrative Agent
who shall allocate such amount among other Lenders in accordance with their
Proportionate Shares; provided, however, that Borrower shall have
no liability to the Lenders under this Section 2(g) to the
extent that Borrower has made all payments to the Administrative Agent required
to be made by Borrower hereunder.

 

(h)   Fees.

 

(i)    Fee
Letter.  On the Closing Date and
thereafter, as applicable, the Borrower shall pay (or shall cause the Sponsor
to pay) to HSH Nordbank AG, New York Branch the fees set forth in the Fee
Letter.  Subject to the other terms and
conditions of this Note, the arranger fee, administrative agent and collateral
agent fee and the up-front fee, all as described in and required to be paid
under and in accordance with the terms of the Fee Letter, may be paid from the
proceeds of the Loans, and such amounts shall be added to the aggregate
principal amount of outstanding Loans under this Note; provided, however,
that Turbines are included in the Collateral at such time.

 

18

 

(ii)     Commitment
Fee.  On each Quarterly Date during
the Availability Period and on the Maturity Date, the Borrower shall pay to the
Administrative Agent for the account of each Lender (pro rata based on such
Lender’s Proportionate Share) a commitment fee in arrears for such quarter (or
portion thereof) in an aggregate amount equal to the product of 0.75% per annum
times (A) the daily average undrawn amount of the Lenders’
Commitments for such quarter (or portion thereof), including the first day of
such period but excluding the last day thereof, times (B) a
fraction, the numerator of which is the number of days in such quarter (or
portion thereof), including the first day of such quarter but excluding the
last day thereof, and the denominator of which is 365.  Except as otherwise provided in this Note, the
commitment fees accrued pursuant to this Section 2(h)(ii) may
be paid from the proceeds of the Loans, and such amounts shall be added to the
aggregate principal amount of outstanding Loans under this Note; provided,
however, that Turbines are included in the Collateral at such time.

 

(i)    Yield Protection.

 

(i)            If,
on or before the first day of any LIBO Rate Interest Period for any LIBO Rate
Loan, the Administrative Agent determines that (A) the LIBO Rate for such
LIBO Rate Interest Period cannot be adequately and reasonably determined due to
the unavailability of funds in, or other circumstances affecting, the London
interbank market, (B) the Majority Lenders shall advise the Administrative
Agent that as a result of events or circumstances affecting generally all
similarly situated financial institutions in the markets in which the Majority
Lenders operate the rates of interest for such Loans do not adequately and
fairly reflect the cost of making or maintaining the Loans to the Lenders, or (C) deposits
in Dollars in the London interbank market are not available to such Lenders in
the ordinary course of business in sufficient amounts to make such LIBO Rate
Loans, then, upon the delivery of a written notice describing such conditions
to the Borrower, the Borrower shall convert such Loans to Base Rate Loans on
the last day of the then current LIBO Rate Interest Period.

 

(ii)           If,
after the date that a Lender becomes party to this Note, the adoption or change
in any applicable law or a change in the application or requirements thereof
(whether such change occurs in accordance with the terms of such applicable law
or as a result of an amendment) makes it illegal or unlawful for such Lender to
make or maintain any LIBO Rate Loan, then, upon the delivery of a written
notice describing such conditions to the Borrower by the Administrative Agent, (A) the
Borrower’s right to request, and such Lender’s obligation to make, any LIBO
Loans shall be suspended for as long as such condition remains in effect, and (B) in
the event the Administrative Agent on behalf of such Lender notifies the
Borrower that such Lender may not lawfully continue to fund and maintain such
LIBO Loans, the Borrower shall, at the request of the Administrative Agent, at
the end of the then current LIBO Rate Interest Period, convert such Loans into
Base Rate Loans.

 

(iii)          If, after the date
that a Lender becomes party to this Note, any change in laws applicable to such
Lender (A) subjects such Lender to any tax, duty or other similar charges
with respect to Loans or changes the basis of taxation with respect to
repayment of the Loans (other than franchise taxes, minimum taxes, any branch
profit taxes imposed by the United States or any other jurisdiction, taxes,
duties or other charges or changes in the basis of taxation on the overall
income of such Lender and excluding any taxes covered by Section 8(b)), (B) imposes
any additional reserve, special deposit or other similar requirements for
reserves held by such Lender with respect to the Loans (without duplication of
any requirement under 

 

19

 

Section 2(i)(iii)(C)), (C) affects
the amount of capital required to be maintained by such Lender with respect to
the Loans or Commitments, or (D) otherwise increases the cost to such
Lender of making, renewing and maintaining any Loan or any Commitments, then
the Borrower shall, from time to time, upon demand of the Administrative Agent
(accompanied by a certificate from the affected Lender setting forth in
reasonable detail the incurred costs), absent manifest error, pay to such
Lender additional amounts sufficient to reimburse or compensate such Lender for
such additional costs.

 

(iv)          Should any Lender
fail to make a Loan due to an event occurring under this Section 2(i) or
be unable to make Loans bearing interest at the LIBO Rate due to an event
occurring under this Section 2(i) or claim increased costs
under this Section 2(i) (any such Lender, a “Substitutable
Lender”), the Administrative Agent shall (a) in its sole discretion
fund the Loan on behalf of the Substitutable Lender or (b) cooperate with
Borrower, the other Agents or any other Lender to find another Person that
shall be acceptable to the Borrower and the Administrative Agent and that shall
be willing to assume the Substitutable Lender’s obligations under this Note
(including the obligation to make the Loan which the Substitutable Lender
failed to make but without assuming any liability for damages for failing to have
made such Loan or any previously required Loan).  Subject to the provisions of the next
following sentence, such Person shall be substituted for the Substitutable
Lender hereunder upon execution and delivery to the Administrative Agent of an
agreement acceptable to the Borrower and the Administrative Agent by such
Person assuming the Substitutable Lender’s obligations under this Note, and all
principal, interest and fees which would otherwise have been payable to the
Substitutable Lender shall thereafter be payable to such Person.  Nothing in (and no action taken pursuant to)
this Section 2(i)(iv) shall relieve the Substitutable Lender
from any liability it might have to Borrower, to the Administrative Agent or to
the other Lenders as a result of its failure to make such Loan.

 

(j)                Interest Rate Protection.  The Borrower may enter into one or more
interest rate swap agreements on terms and conditions satisfactory to the
Administrative Agent and the Majority Lenders (collectively, the “Interest
Rate Agreements”) with one or more institutions that are Lenders or
Affiliates of Lenders as of the date such Interest Rate Agreement is entered
into with respect to all or any portion of the aggregate principal amount of
the Loans outstanding hereunder from time to time, on the terms and subject to
the conditions agreed by and between the relevant counterparty, the Borrower
and the Administrative Agent. The obligations of Borrower under each Interest
Rate Agreement shall be secured by the Collateral Documents and shall rank pari
passu with the Obligations of Borrower under the other Basic Documents.

 

3.             Conditions Precedent.

 

(a)           Initial Loans on
the Closing Date.

 

The obligation of
the Lenders to make the initial Loans to the Borrower on the Closing Date is
subject to the satisfaction by the Borrower, or waiver by the Lenders, of each
of the following conditions precedent on or before the Closing Date, in the
case of any documents or certificates described below, in form and substance
satisfactory to the Agents and the Lenders; provided, however,
that the initial Loan requested hereunder by the Borrower 

 

20

 

related to the payment of
any costs under the 2009 TSA shall be subject to the prior satisfaction by the
Borrower of the conditions precedent set forth in Section 3(b)(x):

 

(i)            receipt
by the Administrative Agent of this Note, which shall be duly authorized,
executed and delivered by the Borrower;

 

(ii)           receipt
by the Administrative Agent of a Borrowing Notice with respect to the initial
Loans duly executed and delivered by the Borrower;

 

(iii)          receipt
by the Administrative Agent of a certificate signed by an authorized officer of
the Borrower attaching its certificate of formation, other organizational
documents, incumbency certificate and good standing certificates, each as in
effect on the Closing Date, and resolutions regarding the authorization,
execution and delivery of each Basic Document to which it is a party;

 

(iv)          receipt
by the Administrative Agent of certificates signed by authorized officers of
each of Holdco, Sponsor, each TSA Company, and each relevant owner of each
Qualified Project Company (if any) in existence as of the Closing Date,
attaching the certificates of formation, other organizational documents, good
standing certificates and incumbency certificates of each such Person, each as
in effect on the Closing Date, and resolutions regarding the authorization,
execution and delivery of each Basic Document to which such Person is a party;

 

(v)           receipt
by the Administrative Agent of (A) the Borrower Security Agreement, the
Holdco Pledge Agreement, each TSA Company Security Agreement, each Project
Pledge Agreement, the Intercreditor Agreement, the Account Control Agreement
and the Consents fully executed by all of the Persons party thereto, and (B) executed
copies of each Turbine Supply Agreement (including the 2009 TSA), certified by
the Borrower as true, correct and complete and in form and substance reasonably
satisfactory to the Administrative Agent and the Lenders;

 

(vi)          each
Basic Document and each Turbine Supply Agreement delivered pursuant to Section 3(a)(v) to
which such Person is a party shall be in full force and effect and shall
constitute a legally valid and binding obligation of the Borrower, Holdco, the
Sponsor, each TSA Company and each relevant owner of a Relevant Qualified
Project Company, enforceable against such Person in accordance with its
respective terms, except to the extent that enforceability may be limited by
applicable bankruptcy, insolvency, moratorium, reorganization or other similar
laws affecting creditors’ rights generally and the application of general
principles of equity;

 

(vii)         receipt
by the Administrative Agent of the following opinions of counsel:  (A) in-house opinion for Holdco, the
Borrower, each TSA Company, and each relevant owner of each Relevant Qualified
Project Company (if any) with respect to the existence, due authorization and
absence of conflicts; (B) the opinion of Latham & Watkins LLP,
special counsel for the Borrower, Holdco, each TSA Company and each relevant
owner of each Relevant Qualified Project Company with respect to the
enforceability of the Basic Documents against each such Persons; and (C) the
opinion of in-house counsel for GE, regarding each Turbine Supply Agreement and
the related Consent and addressing such matters as the Administrative Agent may
request;

 

(viii)        receipt
by the Administrative Agent of the most recently available audited and
unaudited financial statements (to include a balance sheet and an income and
expense statement) of the Borrower and the Sponsor dated as of August 31,
2007 and August 31, 2007, respectively, in 

 

21

 

form and substance reasonably satisfactory to the
Administrative Agent and the Lenders and certified by an authorized officer of
the Borrower that such financial statements fairly present, in all material
respects, the financial position of the Borrower and the Sponsor as at the date
thereof;

 

(ix)           no
Material Adverse Effect shall have occurred and be continuing since the date of
this Note;

 

(x)            each
representation and warranty set forth in Section 4 shall be true
and correct in all material respects as of the Closing Date (or if such
representation and warranty relates solely to an earlier date, as of such
date);

 

(xi)           no
Event of Default or Inchoate Default shall have occurred and be continuing as
of the Closing Date;

 

(xii)          (A) the
fees described in Section 2(h)(i) that are due and payable on
the Closing Date shall have been paid to HSH Nordbank AG, New York Branch on or
prior to the Closing Date, in full, in immediately available funds and (B) the
fees described in Section 2(h)(ii) that are due and payable on the
Closing Date shall have been paid on or prior to the Closing Date, in full, in
immediately available funds (it being acknowledged and agreed that such amounts
under this clause (xii) are to be paid with the proceeds of Loans to be made on
the Closing Date and shall be allocated for purposes of repayment of
capitalized interest and fees, to the Turbines in accordance with the
methodology as set forth in Annex III);

 

(xiii)         the
Agents and the Lenders shall have been reimbursed for the reasonable
out-of-pocket costs, expenses and charges as set forth in Section 8(a);

 

(xiv)        receipt
by the Administrative Agent of a report by the Independent Engineer containing
a third-party market valuation study with respect to the Turbines, assessing
the wind turbine market and providing a technical review of the Turbines purchased
or to be purchased under the Turbine Supply Agreements, the form and substance
of which shall be satisfactory to the Administrative Agents and the Lenders;

 

(xv)         receipt
by the Administrative Agent of evidence reasonably satisfactory to it that all financing
statements necessary to be filed in accordance with the relevant Collateral
Documents with respect to the Borrower, Holdco, each TSA Company and each
relevant owner of each Relevant Qualified Project Company (if any) have been
filed or will be filed in connection with the funding of the Loans;

 

(xvi)        the
Borrower shall have delivered to the Collateral Agent the original
certificates, duly endorsed in blank, representing the Pledged Equity Interests
with respect to the Borrower, each TSA Company and each Relevant Qualified
Project Company (if any);

 

(xvii)       the
liens of the Collateral Documents shall have attached and shall constitute
valid and enforceable first-priority liens on the Collateral (subject to
Permitted Liens);

 

(xviii)      the
Administrative Agent shall have received UCC search reports of a recent date
before the Closing Date, satisfactory to it, for each of the jurisdictions in
which the UCC-1 financing statements are intended to be filed in respect of the
Collateral.  The Administrative Agent
shall have received litigation and docket search reports of a recent date
before the Closing Date, 

 

22

 

satisfactory to the Administrative Agent and the
Lenders, for each of the jurisdictions in which Borrower, Holdco, each TSA
Company and the owners of each Relevant Qualified Project Company (if any) have
a main place of business;

 

(xix)         insurance
complying with the requirements of Section 5(xix) shall be in full
force and effect and the Administrative Agent shall have received certified
copies of all policies evidencing such insurance (or a binder, commitment or
certificates signed by the insurer or a broker authorized to bind the insurer),
in form and substance satisfactory to the Administrative Agent and the Lenders;

 

(xx)          delivery
to the Administrative Agent of the Insurance Consultant’s certificate and the
Insurance Consultant’s report to the effect that all required insurance
policies are in full force and effect, are not subject to cancellation without
thirty (30) days’ prior notice and otherwise conform with the requirements set
forth in this Note and the Turbine Supply Agreements;

 

(xxi) delivery to
the Administrative Agent of all information of the Borrower, Holdco, the TSA
Companies and the Qualified Project Companies requested by the Lenders for the
Lenders to comply with the requirements of the Patriot Act;

 

(xxii)        [Intentionally
Omitted];

 

(xxiii)       Delivery
of satisfactory evidence to the Administrative Agent that Holdco has
contributed proceeds in an amount not less than $220,000,000 to the Borrower
and/or applied such amount to the prepayment of Existing Turbine Supply Loans;

 

(xxiv)       the
proposed amount of the initial Loan shall not exceed the Loan Maximum
Outstandings as of the Closing Date;

 

(xxv)        the
remaining Commitments available after the funding of the initial Loan shall be
at least equal to the Loan Minimum Availability as of the Closing Date; and

 

(xxvi)       delivery of satisfactory evidence to the
Administrative Agent that the Borrower has made its Required Turbine Equity
Payment to GE with respect to each Turbine for which a Loan has been requested
on the Closing Date;

 

(b)           Subsequent Loans.  After the occurrence of the Closing Date, the
obligation of the Lenders to make subsequent Loans to the Borrower (each such
Loan, a “Subsequent Loan”) is subject to the satisfaction by the
Borrower, or waiver by the Majority Lenders, of each of the following
conditions precedent on or before the relevant Borrowing Date:

 

(i)            receipt
by the Administrative Agent of a Borrowing Notice with respect to such
Subsequent Loan;

 

(ii)           each
representation and warranty set forth in Section 4 and in each
Collateral Document shall be true and correct in all material respects as if
made on the Borrowing Date requested for such Subsequent Loan (or of such
representation or warranty relates solely to an earlier date, as of such date);

 

23

 

(iii)          each
Basic Document and each Turbine Supply Agreement delivered pursuant to Sections
3(a)(v) or 3(b)(vix), as applicable, to which such Person is a
party shall be in full force and effect and shall constitute a legally valid
and binding obligation of such Person, enforceable against such Person in
accordance with its respective terms, except to the extent that enforceability
may be limited by applicable bankruptcy, insolvency, moratorium, reorganization
or other similar laws affecting creditors’ rights generally and the application
of general principles of equity;

 

(iv)          no
Event of Default or Inchoate Default shall have occurred and be continuing;

 

(v)           no
Material Adverse Effect shall have occurred and be continuing since the date of
this Note;

 

(vi)          delivery
of satisfactory evidence to the Administrative Agent that Holdco has funded its
Required Equity Portion (as then in effect) and that the Borrower has used or
will use the proceeds of the Required Equity Portion in compliance with Section 5(a)(xxi);

 

(vii)         the
proposed amount of the Subsequent Loan shall not exceed the Loan Maximum Outstandings
as of the Borrowing Date requested for such Subsequent Loan;

 

(viii)        the
remaining Commitments available after the funding of the requested Subsequent
Loan shall be at least equal to the Loan Minimum Availability as of the
Borrowing Date for such Subsequent Loan;

 

(ix)           with
respect to each initial Loan being requested hereunder under the 60% Advance
Rate, delivery of an appraisal in respect of the Turbines being allocated to
such Loan performed pursuant to the Appraisal Procedure (it being acknowledged
and agreed that no adjustment shall be made to the Contract Price for purposes
of calculating the Loan Maximum Outstandings unless the results of such
appraisal indicate that the value of such Turbines has decreased by more than
3.0% from the Contract Price allocated to such Turbines);

 

(x)            the following
conditions shall be satisfied prior to an initial Loan being funded under this Section 3(b) in
respect of the 2009 TSA (or under any Purchase Order issued thereunder) and
shall be, in the case of any documents or certificates described below,
in form and substance satisfactory to the Administrative Agent:

 

(A)    receipt by the Administrative Agent
of a certificate signed by an authorized officer of the 2009 TSA Company,
attaching its certificate of formation, other organizational documents, good
standing certificate and incumbency certificate, each as in effect on the date
of such requested initial Loan, resolutions regarding the authorization,
execution and delivery of each Basic Document to which the 2009 TSA Company is
a party and certifying that no entity other than a Holdco Secured Party has
previously been granted any security interest in the Collateral related to the
2009 TSA Company and the 2009 TSA;

 

(B)    receipt by
the Administrative Agent of the TSA Company Security Agreement, the relevant
Consent and an amendment to the Borrower Security Agreement, if necessary, in
each case, related to the 2009 TSA and the 2009 TSA Company, fully executed by
all of the Persons party thereto;

 

24

 

(C)    receipt by
the Administrative Agent of an executed copy of any amendments, modifications
or waivers to the 2009 TSA entered into after the Closing Date, certified by
the Borrower as true, correct and complete and, solely in the case of any
material amendments, modifications or waivers, in form and substance reasonably
satisfactory to the Majority Lenders;

 

(D)    receipt by
the Administrative Agent of the following opinions of counsel:  (1) in-house opinion for the 2009 TSA
Company with respect to the existence, due authorization and absence of
conflicts of the 2009 TSA Company; and (2) the opinion of Latham &
Watkins LLP, special counsel for the 2009 TSA Company with respect to the enforceability of the Basic
Documents against the 2009 TSA Company;

 

(E)     receipt
by the Administrative Agent of evidence reasonably satisfactory to it that all
financing statements necessary to be filed in accordance with the relevant
Collateral Documents with respect to the 2009 TSA and the 2009 TSA Company have
been filed or will be filed in connection with the funding of such requested
initial Loan;

 

(F)     the
Administrative Agent shall have received UCC search reports of a recent date
before the Closing Date, satisfactory to it, for each of the jurisdictions in
which the UCC-1 financing statements are intended to be filed in respect of the
Collateral related to the 2009 TSA and the 2009 TSA Company.  The Administrative Agent shall have received
litigation and docket search reports of a recent date before the Closing Date,
satisfactory to the Administrative Agent and the Lenders, for each of the
jurisdictions in which the 2009 TSA Company and each relevant owner of the
related Qualified Project Company (if any) have a main place of business;

 

(G)    the
Borrower shall have delivered to the Collateral Agent the original
certificates, duly endorsed in blank, representing the Pledged Equity Interests
with respect to the 2009 TSA Company;

 

(H)    delivery
of satisfactory evidence to the Administrative Agent that that the Borrower has made its Required
Turbine Equity Payment to GE with respect to the Turbines for which this
initial draw relates;

 

(I)      the
liens of the Collateral Documents related to the 2009 TSA and the 2009 TSA
Company shall have attached and shall constitute valid and enforceable
first-priority liens on the Collateral (subject to Permitted Liens, excluding,
solely for purposes of priority, the liens set forth in clause (e) of the
definition of Permitted Liens);

 

(xi)                   to the extent not previously delivered, delivery
of satisfactory evidence to the Administrative Agent that the Borrower has made
its Required Turbine Equity Payment to GE with respect to each Turbine for
which a Subsequent Loan has been requested after the Closing Date; and

 

(xii)                  if any portion of such Subsequent Loan is to be
applied to the payment of amounts owing under the 2009 TSA, unless the
then-current PTC Expiration Date shall have been extended beyond December 31,
2009 (with tax benefits similar to or better than the PTCs applicable
under the current December 31, 2008 PTC expiration date), the aggregate
principal amount of Loans advanced for purposes of such payments under the 2009
TSA shall 

 

25

 

not exceed
$150,000,000, after giving effect to such Subsequent Loan (provided that the
foregoing limitation shall not be considered for purposes of determining the
Borrower’s compliance with its obligations hereunder with respect to the Loan
Minimum Availability).

 

4.             Representations.

 

(a)           The Borrower
represents and warrants to the Agents and Lenders as of the date hereof, the
Closing Date and each Borrowing Date that:

 

(i)            It
is duly organized, validly existing and in good standing under the laws of the
jurisdiction of its organization, and has all requisite power and authority to
carry on its business as now conducted. 
It has all requisite limited liability company power and authority to (A) execute
and deliver each Basic Document and each Turbine Supply Agreement to which it
is a party; (B) grant to the Lender a first-priority security interest in
the Collateral subject to the Collateral Documents (subject to Permitted Liens)
to which it is a party; and (C) perform all of its obligations under each
Basic Document and each Turbine Supply Agreement to which it is a party.

 

(ii)           The
execution and delivery by the Borrower of each Basic Document and of each
Turbine Supply Agreement to which it is a party and the performance by it of
all of its obligations hereunder and thereunder:  (A) will not violate, be in conflict or
inconsistent with, result in a breach of, or constitute a default (with or
without the giving of notice or the passage of time or both) under, any term or
provision of any document, agreement or instrument to which the Borrower is a
party such that there could reasonably be expected to be a Material Adverse
Effect; (B) will not violate, be in conflict or inconsistent with, result
in a breach of, or constitute a default (with or without the giving of notice
or the passage of time or both) under, any term or provision of any
organizational document, of the Borrower; (C) to the knowledge of the
Borrower, will not violate any Governmental Rule applicable to or binding
on the Borrower or any of its properties; and (D) except as specifically
contemplated by the Basic Documents or the Turbine Supply Agreements, will not
result in the creation or imposition of any lien upon any of the assets and
properties of the Borrower.

 

(iii)          Each
of the Basic Documents and the Turbine Supply Agreements to which the Borrower
is a party constitutes a legal, valid and binding obligation of the Borrower,
enforceable against the Borrower in accordance with its respective terms and
provisions, except as such enforceability may be affected by applicable
bankruptcy, insolvency, moratorium or other similar laws affecting creditors
rights generally and the application of general principles of equity. Each such
Basic Document and Turbine Supply Agreement has been duly authorized, executed
and delivered by the Borrower.

 

(iv)          The
Borrower has filed, or has caused to be filed on behalf of itself, all federal,
state and local tax returns that it is required to file, and has paid, or has
caused to be paid, all material taxes that it is required to pay to the extent
due or, to the extent not so paid, has established adequate reserves for the
payment thereof as required by GAAP.

 

(v)           Neither
the Borrower nor any TSA Company is subject to, or is exempt from, regulation
as a “holding company” or as a “subsidiary company” of a “holding company”
under the Public Utility Holding Company Act of 2005 (“PUHCA”), except
with respect to regulation under Section 1265 of PUHCA.

 

26

 

(vi)             The Borrower has not engaged in any
business other than the purchasing, transporting, financing and/or ownership of
turbines to be utilized in the development, construction and operation of wind
energy generation projects (and business reasonably incidental thereto).  The Borrower is not a general partner or a
limited partner in any general or limited partnership, a joint venturer in any
joint venture or a member in any limited liability company, other than the Borrower
being the sole member of each TSA Company.

 

(vii)            The Borrower or the applicable TSA
Company has good title to, or the right to acquire title to, the Turbines, in
each case free and clear of all liens other than Permitted Liens.  The rights, title and interest of the
Borrower and each TSA Company under the Turbine Supply Agreements to which such
Person is a party are free and clear of all liens other than Permitted Liens.

 

(viii)           The Borrower is not an investment
company or a company controlled by an investment company within the meaning of
the Investment Company Act of 1940, as amended.

 

(ix)             The financial statements of each of
the Borrower and the Sponsor delivered pursuant to Section 5(a)(viii) fairly
present, in all material respects, its respective financial position, as of the
date thereof.

 

(x)              The Borrower is in compliance with all applicable
Governmental Rules applicable to it, except to the extent there could not
reasonably be expected to have a Material Adverse Effect.

 

(xi)             Neither the Borrower nor any TSA
Company is in violation of any
environmental law with respect to the relevant proposed project site for which
the Turbines may be delivered or has any liability under applicable
environmental law with respect to such relevant project site that could
reasonably be expected to have a Material Adverse Effect.  There are no claims or investigations
pending, or to the Borrower’s knowledge, threatened by any Governmental
Authority of or against the Borrower and/or any TSA Company under any applicable environmental law that
could reasonably be expected to have a Material Adverse Effect.  To the knowledge of the Borrower, none of the
Borrower and/or any TSA Company or any subcontractor of any such Person
has used, released, discharged, generated, manufactured, stored or disposed of
any hazardous substances in, on or under the relevant proposed project site for which the Turbines may be delivered
that that could reasonably be expected
to have a Material Adverse Effect.

 

(xii)            Neither the Borrower nor any TSA
Company is subject to regulation under the Employee Retirement Income Security
Act of 1974, as amended.

 

(xiii)           No Event of Default or Inchoate
Default has occurred and is continuing. 
Neither the Borrower nor any TSA Company is in default under any
provision of the Turbine Supply Agreement that could reasonably be expected to
have a Material Adverse Effect.

 

(xiv)           Each lien created and perfected under
the Collateral Documents in favor of the Collateral Agent, on behalf of the
Lenders, is and has been perfected as of each date this representation is made
or deemed made and shall constitute a valid and enforceable first-priority lien
on the Collateral that is subject to such lien (subject to Permitted
Liens).  All filings and recordings,
re-filings or re-recordings necessary to perfect and maintain the perfection
and priority 

 

27

 

of the interest, title or liens of the Collateral
Agent (acting on behalf of the Lenders), subject to Permitted Liens, have been
made as required by the Basic Documents.

 

(xv)            There are no actions, suits,
proceedings or investigations by or before any arbitrator or Governmental
Authority now pending against or, to the knowledge of the Borrower, threatened
against or affecting the Borrower, any TSA Company or any Relevant Qualified
Project Company that could reasonably be expected, individually or in the
aggregate, to have a Material Adverse Effect.

 

(xvi)           Each of the Borrower and each TSA
Company is in material compliance with all material Governmental Rules applicable
to it, except to the extent the failure to comply with such Governmental Rule could
not reasonably be expected to have a Material Adverse Effect.

 

(xvii)          All policies of insurance required to
be obtained by the Borrower or any TSA Company under the Basic Documents and
the Turbine Supply Agreements have been obtained and are in full force and
effect; all premiums due thereon have been paid and, except with respect to
policies that have been replaced with other policies in compliance with this
Note, no notice from any insurer or its representative as to any cancellation
or reduction or other change in coverage has been received by the Borrower or
any TSA Company.

 

(xviii)         All issued and outstanding ownership
interests in the Borrower are directly owned by Holdco.  All issued and outstanding ownership
interests in each TSA Company are directly owned by the Borrower.  At least 80% of the issued and outstanding
ownership and economic interests in each Relevant Qualified Project Company are
indirectly owned by the Sponsor; provided, however, that 100% of
the issued and outstanding ownership interests in each Relevant Qualified
Project Company have been pledged to the Collateral Agent pursuant to a Project
Pledge Agreement.

 

(xix)            Neither the Borrower nor any TSA
Company has conducted any business other than the business contemplated by the
Basic Documents and the Turbine Supply Agreements, they have no outstanding
Debt or other material liabilities other than pursuant to or allowed by the
Basic Documents and the Turbine Supply Agreements, and they are not a party to
or bound by any material contract other than the Basic Documents and the
Turbine Supply Agreements.

 

(xx)             The representations and warranties
of the Borrower and each TSA Company contained in the Basic Documents and the
Turbine Supply Agreements to which each such Person is a party other than this
Note are, as of the time made or deemed made thereunder, true and correct.

 

(xxi)            Neither Borrower, nor, to the
Borrower’s knowledge, any Person holding any legal or beneficial interest
whatsoever in Borrower (whether directly or indirectly) (a) appear on the
OFAC SDN List; (b) are included in, owned by, controlled by, acting for or
on behalf of, providing assistance, support, sponsorship, or services of any kind
to, or otherwise associated with any of the Persons referred to or described in
the OFAC SDN List; or (c) have conducted business with or engaged in any
transaction with any Person named on any of the OFAC SDN List or any Person
included in, owned by, controlled by, acting for or on behalf of, providing
assistance, support, sponsorship, or services of any kind to, or otherwise
associated with any of the Persons referred to or described in the OFAC SDN
List.

 

28

 

(xxii)           Neither this Note, any other Basic
Document, nor any certificate furnished to the Administrative Agent, by or, to
the knowledge of the Borrower, on behalf of Borrower in connection with the
transactions contemplated by this Note, the other Basic Documents or the
Turbine Supply Agreements, taking into account all other documentation
furnished to the Administrative Agent, the Independent Engineer or the
Insurance Consultant on or prior to the Closing Date or a Borrowing Date, as
applicable, contains any untrue statement of a material fact or omits to state
any material fact necessary to make the statements therein, in the light of the
circumstances under which they were made, not misleading as of the time signed
or delivered; provided, however, that no
representation or warranty is made with respect to any projections or other
forward looking statements provided by or on behalf of Borrower.

 

(xxiii)          All Qualified Project Company Permitted Debt, if any, has been
entered into pursuant to a commercial arms’-length transaction and is
being used by the applicable Qualified Project Company in a commercially
reasonable manner to further develop the applicable Qualified Project.

 

5.             Covenants.

 

(a)       The
Borrower hereby covenants and agrees that, as long as any Commitments or Loans
remain outstanding, it shall comply with each of the following:

 

(i)    Use of
Loan Proceeds.  The Borrower shall
not, and shall not allow any TSA Company or any Relevant Qualified Project
Company to, use the proceeds of the Loans for any purpose other than (A) for
the funding of the payments due and payable under the Turbine Supply Agreements
(including any increase in the Contract Price of a Turbine Supply Agreement in
connection with any TSA Options Approval) to GE in accordance with the relevant Turbine Supply Agreement
payment schedule; provided that any such Turbine Supply Agreement or
related Turbines in respect of the portion of the Contract Price for which a
Loan is requested (i) has not been removed pursuant to the terms of Section 5(a)(xxiii)
or (ii) is not subject to Section 5(a)(xxiii)(B); (B) to
the extent that the Required Equity Portion advanced by Holdco pursuant to the
terms of this Note exceeds the then applicable minimum Required Equity Portion
at the time of such requested Loan, the proceeds of such requested Loan may be
used to reimburse Holdco up to the applicable excess; (C) to repay
principal amounts owed by the Sponsor, the 2006 TSA Company and/or the 2007 TSA
Company, as applicable, to the lenders under the Existing Turbine Supply Loans;
(D) to reimburse the Sponsor, the Borrower or any TSA Company for amounts
previously funded under a Turbine Supply Agreement by such Person to GE prior
to the Closing Date and (E) for the payment of fees and interest
due and payable under this Note and the arranger fee, administrative agent and
collateral agent fee and the up-front fee due and payable in accordance with
the Fee Letter from time to time.

 

(ii)   Notices
and Deliveries.  The Borrower shall
promptly, upon acquiring notice or giving notice, as the case may be give
written notice (and deliver the documents or reports, as applicable, that are
the subject of such notices) to the Administrative Agent of:

 

(A)          Any
litigation or proceeding pending or, to the knowledge of Borrower, threatened
against the Borrower, any TSA Company or any Relevant Qualified Project Company
if such litigation or proceeding could reasonably be expected to have a
Material Adverse Effect;

 

29

 

(B)           Any
notice of a material violation of any Governmental Rule issued by any
Governmental Authority to the Borrower, any TSA Company or any Relevant
Qualified Project Company for which Loans have been made;

 

(C)           Any
Event of Default or any Inchoate Default;

 

(D)          Any
casualty, damage or loss, whether or not insured, to the Turbines through fire,
theft, other hazard or casualty, if such casualty, damage or loss could
reasonably be expected to have a Material Adverse Effect; and

 

(E)           Any
notice of default or claim of force majeure under any Turbine Supply Agreement,
if such default or claim could reasonably be expected to have a Material
Adverse Effect.

 

(iii)          Amendments,
Waivers, Etc.  The Borrower shall
provide the Administrative Agent promptly after execution thereof by the
Borrower or any TSA Company (but no later than within thirty (30) days after
such execution), as applicable, with copies of any amendment or other
modification or waiver of compliance with any Turbine Supply Agreement.

 

(iv)          Compliance
with Governmental Rules and Permits. The Borrower shall, and shall
cause each TSA Company and each Relevant Qualified Project Company, to comply
with (A) all Governmental Rules, including all environmental laws,
applicable to the Borrower, each TSA Company or each Relevant Qualified Project
Company, and (B) all Permits applicable to the Borrower, each TSA Company
or each Relevant Qualified Project Company, unless, in any case, (A) or
(B), the failure to do so could not reasonably be expected to have a Material
Adverse Effect.  Each Qualified Project
Company shall obtain and maintain each Permit reasonably necessary for the
related Qualifying Project, unless the failure to do so could not reasonably be
expected to have a Material Adverse Effect.

 

(v)           Existence;
Conduct of Business.  Except as
otherwise expressly permitted under this Note or the other Basic Documents, the
Borrower shall (A) maintain and preserve its existence as a Delaware
limited liability company and shall cause each TSA Company and each Relevant
Qualified Project Company to maintain and preserve its existence as a limited
liability company in the jurisdiction of its organization; and (B) engage
only in the business of the purchasing, transporting, financing and/or
ownership of turbines to be utilized in the development, construction and
operation of wind energy generation projects (and business reasonably
incidental thereto), and cause each Relevant Qualified Project Company to
engage only in the business of the development, financing and/or ownership of
the relevant Qualified Project (and business reasonably incidental thereto).

 

(vi)          Performance
of Turbine Supply Agreements.  So
long as a Turbine Supply Agreement is included in the Collateral, the Borrower
shall (i) perform, and shall cause the relevant TSA Company to perform,
all of its respective material contractual obligations under such Turbine
Supply Agreement and (ii) maintain and preserve (and cause such TSA
Company to maintain and preserve)  all of
such Person’s material rights under such Turbine Supply Agreement.  The Borrower shall cause each Relevant
Qualified Project Company to pay and perform all of its respective material
contractual obligations, in each case, unless the failure to do so could not
reasonably be expected to have a Material Adverse Effect.

 

30

 

(vii)         Books,
Records, Access.  The Borrower shall
keep and maintain the books of account and the financial records for itself and
each TSA Company at its address identified on the signature pages to this
Note in accordance with GAAP. The Administrative Agent shall have the right, on
reasonable advance notice to the Borrower and at reasonable times during the
Borrower’s usual business hours, to audit, examine and make copies of the books
of account and other records of the Borrower and each TSA Company as
applicable, and to discuss the financial condition and business of the Borrower
or such other Person with its respective authorized representatives.  The Administrative Agent may exercise such
rights through any employee of the Administrative Agent or through any
independent public accountant, legal counsel, the Independent Engineer or any
other consultant acting on behalf of the Administrative Agent; provided,
that such Persons shall agree and comply with the confidentiality obligations
set forth in Section 13(j).

 

(viii)        Financial
Statements.

 

(i)      As soon as available and
in any event within forty-five (45) days after the end of each quarterly
fiscal period of each fiscal year of the Borrower and the Sponsor (except,
solely in respect of the Sponsor, for the fourth fiscal quarter of such fiscal
year), the Borrower shall deliver to the Administrative Agent unaudited
statements of income, members’ equity and cash flows of the Borrower and the Sponsor
for such period and for the period from the beginning of the respective fiscal
year to the end of such period, and the related balance sheet as at the end of
each such period, setting forth (to the extent applicable) in each case in
comparative form the corresponding figures for the corresponding period in the
preceding fiscal year, accompanied by a certificate of an authorized officer of
the Borrower, which certificate shall state that such financial statements
fairly present in all material respects the financial condition and (to the
extent applicable) results of operations of the Borrower in accordance with
GAAP, consistently applied, as at the end of, and for, such period (subject to
normal year-end audit adjustments).

 

(ii)     As soon as available and
in any event within ninety (90) days after the end of each fiscal year of
the Sponsor, the Borrower shall deliver to the Administrative Agent audited
statements of income, members’ equity and cash flows of the Sponsor for such
year and the related balance sheet as at of the end of such year, setting forth
in each case (to the extent applicable) in comparative form the corresponding
figures for the preceding fiscal year, accompanied by an opinion of independent
certified public accountants of recognized standing, which opinion shall state
that such financial statements fairly present in all material respects the
financial condition and results of operations of the Sponsor, as at the end of,
and for, such fiscal year in accordance with GAAP (subject to normal year-end
audit adjustments).

 

(ix)           Taxes. The Borrower shall pay,
and shall cause each TSA Company and each Relevant Qualified Project Company to
pay, all taxes that such Person is required to pay to the extent due; provided,
however, that the Borrower, each TSA Company or each Relevant Qualified
Project Company, as applicable, shall not be obligated to pay such taxes to the
extent any of them is contesting the validity or amount of any such tax by
appropriate proceedings as long as such Person has established adequate
reserves for the payment thereof as and to the extent required by GAAP.

 

31

 

(x)            Limitations on Debt. The
Borrower shall not incur (or permit any TSA Company to incur) any Debt except
for Permitted Debt.  The Borrower shall
not permit any Relevant Qualified Project Company to incur any Debt except for
Qualified Project Company Permitted Debt.

 

(xi)           Limitations on Liens.  The Borrower shall not incur, create or
suffer to exist (or permit any TSA Company to create, assume or suffer to
exist) any lien or other encumbrance on the Turbines or the Turbine Supply
Agreements, except for Permitted Liens. 
The Borrower shall not permit any Relevant Qualified Project Company to
incur, create or suffer to exist any lien or other encumbrance on the
applicable Qualified Project, except for Qualified Project Company Permitted
Liens.

 

(xii)          Sale
or Lease of Certain Assets.  Except
as provided in this Note (including Section 7(c)) or the other
Basic Documents, the Borrower shall not sell, lease, assign, transfer or
otherwise dispose of (or permit any TSA Company to sell, lease, assign or
dispose of) any Turbines or any of its rights or interests in or under any
Turbine Supply Agreement to any Person other than the Borrower or a TSA
Company.  In respect of the Collateral at any time, the
Borrower will not, and will not allow any TSA Company to, assign any part of
the Collateral to a Qualified Project Company unless such assignment or
transfer is in accordance with terms governing the replacement of the
Collateral described in Section 7(c), a prepayment of the Loans as
contemplated by Section 7(c)(ii) and Section 2(e)(ii) or
otherwise, with the prior written consent of the Majority Lenders.

 

(xiii)         Distributions.  The Borrower shall not make or declare any
distribution (in cash, property or obligation) on, or make any other payment on
account of, any equity interest in the Borrower unless (A) and to the
extent that, after giving effect to such distributions the Required Equity
Portion will continue to be funded as required by this Agreement and (B) no
Event of Default has occurred and is continuing.  The Borrower will cause each TSA Company to
make distributions as necessary for the Borrower to meet its obligations under
this Agreement.  Notwithstanding the
foregoing, the Borrower shall be permitted to distribute the proceeds of Loans
and the Required Equity Portion to Holdco or the Sponsor as may be necessary
for purposes of repaying the Existing Turbine Supply Loans on the Closing Date.

 

(xiv)        Name
and Location; Fiscal Year.  The
Borrower shall not (A) (nor shall it permit any TSA Company or any
Relevant Qualified Project Company to) change its name, its limited liability
company structure or its jurisdiction of organization without the Majority
Lender’s prior written consent, such consent not to be unreasonably withheld or
delayed or (B) change its fiscal year without the Majority Lender’s prior
written consent, such consent not to be unreasonably withheld or delayed.

 

(xv)         Dissolution.  Except as otherwise provided in Section 5(a)(xii),
the Borrower shall not liquidate or dissolve (or permit any TSA Company to
liquidate or dissolve) or combine, merge or consolidate (or permit any TSA
Company to combine, merge or consolidate) with or into any other entity, in the
case of any TSA Company, unless the Turbine Supply Agreement to which such TSA
Company is a party has been removed in accordance with Section 7(c).

 

(xvi)        Transfer
of Interests.  The Borrower shall not
cause, make, suffer to exist, permit or consent to any creation, sale,
assignment or transfer of (A) any direct or indirect ownership interests
of Holdco in the Borrower;  or (B) any
direct or indirect ownership interests of the Borrower in any TSA Company,
except, in each case, (A) and (B), with the Majority Lenders 

 

32

 

prior written consent (which consent shall not be
unreasonably withheld or delayed; provided, however, that, solely
with respect to the assignment or transfer set forth in sub-clause (A) above,
no consent of the Majority Lenders shall be required if (Y) Holdco is
transferring 25% or less of its ownership interests in the Borrower and (Z) the
transferee shall enter into a pledge agreement, substantially similar to the
Holdco Pledge Agreement, and such other documents as the Collateral Agent
determines are reasonably necessary to enable the Lenders to maintain their
first priority perfected lien on the Pledged Equity Interests; provided,
further, however, that irrespective of any transfer allowed
pursuant to this Section 5(a)(xvi), Holdco shall be required to
comply with its obligations set forth in Section 5(a)(xxi).

 

(xvii)       Amendments.  The Borrower shall not (nor shall it allow
any TSA Company to) cause, consent to, or permit, any amendment or other
modification of, or waiver of compliance with, any material terms or conditions
of any Turbine Supply Agreement without the prior written consent of the
Majority Lenders (such consent not to be unreasonably withheld or delayed).

 

(xviii)      Qualified Project
Status.  The Borrower shall, promptly
upon obtaining knowledge or notice thereof, but in no event later than five (5) Business
Days, provide the Administrative Agent with written notice of any delay in (or
the occurrence of any other event with respect to) a Qualified Project to the
extent such Qualified Project could no longer reasonably be expected to
complete construction at least sixty (60) days prior to the PTC Expiration Date
applicable to such Qualified Project. 
Additionally, the Borrower shall, promptly, but in no event later than
ten (10) Business Days, respond to inquiries by the Administrative Agent
as to the status of the development and construction schedule (including any
potential delays) of each Qualified Project. 
If the Administrative Agent is notified pursuant to this Section 5(a)(xviii),
or otherwise reasonably determines based on consultation with the Independent
Engineer, that any Qualified Project could no longer reasonably be expected to
achieve construction completion sixty (60) days prior to the PTC Expiration
Date applicable to such Qualified Project, such project will immediately cease
to be a “Qualified Project” hereunder; provide that, if the Borrower disagrees
with any determination by the Administrative Agent and/or the Independent
Engineer that a Qualified Project would no longer reasonably be expected to
achieve construction completion sixty (60) days prior to the PTC Expiration
Date, the parties hereby agree to submit the issue to R.W. Beck (or such other
third party engineering firm as the Borrower and Administrative Agent may
agree).  If R.W. Beck (or such other
third party engineering firm as the Borrower and the Administrative Agent may
agree) agrees with the determination of the Administrative Agent and/or the
Independent Engineer, such determination shall stand and the applicable project
shall no longer be a Qualified Project and the Borrower shall make a prepayment
of the Loans if and to the extent necessary in order to be in compliance with
the Loan Maximum Outstandings.  If R.W.
Beck (or such other third party engineering firm as the Borrower and the
Administrative Agent may agree) disagrees with the determination of the
Administrative Agent and/or the Independent Engineer, such determination shall
be overturned and the applicable project shall remain a Qualified Project.  Whatever determination is made by R.W. Beck
(or such other third party engineering firm as the Borrower and the Administrative
Agent may agree) shall be final and binding as to the parties’ respective
rights and obligations under this Section 5(a)(xviii).  R.W. Beck (or such other third party
engineering firm as the Borrower and the Administrative Agent may agree) shall
have thirty (30) days to make its determination as to whether the applicable
project is or is not a Qualified Project from the date R.W. Beck (or such other
third party engineering firm as the Borrower and the Administrative Agent may
agree) is retained to make such determination; provided, however,
that to the extent that R.W. Beck (or such other third party engineering firm
as the Borrower and the

 

33

 

Administrative
Agent may agree) is unable to make a determination as set forth in this Section 5(a)(xviii)
within such thirty (30) day period, the determination of the Administrative
Agent and/or the Independent Engineer shall stand and the applicable project
shall no longer be a Qualified Project and the Borrower shall make a prepayment
of the Loans if and to the extent necessary in order to be in compliance with
the Loan Maximum Outstandings.

 

(xix)         Insurance.  The Borrower shall comply, and shall cause
each TSA Company to comply, with all insurance requirements set forth on Annex
II.

 

(xx)          Turbines.  Following delivery at the
applicable project site, any Turbine that forms part of the Collateral, without
the prior written consent of the Majority Lenders, the Borrower shall not (i) erect
such Turbine or (ii) transport or take any other actions or fail to take
any action with respect to such Turbine that could reasonable be expected to
reduce the value or marketability of any such Turbine (including storage of
Turbines at the applicable project site in any manner or for any period that
would result in loss or diminishment of such Turbine’s warranty).

 

(xxi)         Required Equity Portion.  From time to time, the Borrower shall cause
Holdco to invest equity (by way of subscription for shares or a
shareholder subordinated loan; subject to a subordination agreement in form and
substance reasonably satisfactory to the Administrative Agent) in the Borrower
(to be used by the Borrower for purposes specified in Section 5(a)(i))
such that Holdco’s equity investment in the Borrower is at all times equal to
or greater than the aggregate of (A) 25% of the amount of the Loans
outstanding, other than Loans that have been applied to the payment of the
Contract Price and as to which the 60% Advance Rate is applicable, (B) 66.66%
of the principal amount of the Loans outstanding that have been applied to the
payment of the Contract Price and as to which the 60% Advance Rate is
applicable, and (C) the amount by which the Loan Maximum Outstandings is
reduced, if any, in connection with an appraisal conducted pursuant to and in accordance
with Sections 3(b), 5(a)(xxiii) or 5(a)(xxvi) (such amount, the “Required Equity
Portion”).  Such equity invested
pursuant to this Section 5(a)(xxi) must be used by the Borrower for
the purposes set forth in Section 5(a)(i) and/or for the payment
of transportation costs included in the Contract Price associated with the
Turbine Supply Agreements.

 

(xxii)        Project
Review.  Borrower shall provide “desktop,
fatal flaw” reviews (each a “Project Review”) to the Administrative
Agent from time to time and as and when the Borrower desires to designate a
Qualified Project, which such Project Review shall be in form and substance
satisfactory to the Lender Committee and the Administrative Agent and shall be
comprised of:

 

(A)          a
review by the Independent Engineer including, but not limited to, a
confirmation of the potential viability, from a wind and technology point of
view, of the wind electrical generating project proposed by the Borrower to be
a Qualified Project;

 

(B)           a
pro-forma cash flow forecast demonstrating to the Administrative Agent’s
reasonable satisfaction that such proposed wind electrical generating project
is economically viable;

 

(C)           a
detailed report setting forth the proposed real estate plan for the wind
electrical generating project proposed by the Borrower to be a Qualified
Project; and

 

(D)          a
detailed report as to the permitting and interconnection plan for the wind
electrical generating project proposed by the Borrower to be reviewed
hereunder.

 

34

 

If the
Lender Committee and the Administrative Agent (in consultation with the
Independent Engineer and the Lenders’ legal Counsel) determine that the Project
Review is satisfactory and acceptable, taking into account the likelihood of
such project obtaining permanent construction and term financing (such
satisfaction and acceptance not to be unreasonably withheld or delayed where
the Project Review demonstrates that such project could (x) reasonably
achieve construction completion and begin selling power at least sixty (60)
days prior to the then-current expiration date for PTCs under the Code (the “PTC
Expiration Date”) and (y) benefit from tax benefits similar to or
better than the PTCs applicable under the current December 31, 2008 PTC
expiration date), such project will be deemed a qualified project to the extent
that such Qualified Project is owned and operated by a Relevant Qualified
Project Company and that the owner of such Relevant Qualified Project Company
has complied with the obligations relating to a Relevant Qualified Project
Company set forth in Sections 3(a)(iv); 3(a)(vii)(A) and (B);
3(a)(xv); 3(a)(xvi); 3(a)(xvii); 3(a)(xviii); and 3(a)(xxi) (a “Qualified
Project”).

 

(xxiii)       Required Take
Out.  In the event that on the Take
Out Dates, applicable to any Turbines, any Loans advanced under the facility
with respect to such Turbines are then outstanding and the Administrative Agent
has received evidence to its reasonable satisfaction that the GE warranty
related to such Turbines will be in effect for twenty-four months after the
expected Commercial Operation date in respect of such Turbines and the related
Qualified Project, if applicable, the Administrative Agent and the Borrower
shall promptly commence the Appraisal Procedure in respect of such
Turbines.  No later than thirty (30) days
after the applicable Take Out Date for the Turbines which are the subject of
such Appraisal Procedure, the Borrower shall, to the extent that the results of
the appraisal indicate that the value of such Turbines has decreased by more
than 3.0% from the Contract Price allocated to such Turbines, prepay the Loans
in accordance with Section 2(e) to an amount equal to the
lesser of (i) the then outstanding amount of such Loan and (ii) (A) to
the extent the 80% Advance Rate is then in effect with respect to such
Turbines, 80% of the appraised value of such Turbines determined pursuant to
the Appraisal Procedure and applied solely in respect of the portion of the
Loans applicable to such Turbines or (B) to the extent the 60% Advance
Rate is then in effect with respect to such Turbines, 60% of the appraised
value of such Turbines determined pursuant to the Appraisal Procedure and, in
each case, applied solely in respect of the portion of the Loans applicable to
such Turbines, including, in each such case, any related capitalized
fees or interest.  The Appraisal Procedure
outlined above in this Section 5(a)(xxiii) shall repeat at four month
intervals, such four month interval beginning no later than thirty (30) days
after each applicable Take Out Date, until all Turbines for which the Appraisal
Procedure has been applied to have been removed from the Collateral; provided,
however, that at any time during the Appraisal Procedure process set
forth above if the Administrative Agent reasonably determines that the GE
warranty related to such Turbines will expire at any time prior to 24 months
after the expected Commercial Operation in respect of such Turbines and the
related Qualified Project, if applicable, the Borrower shall immediately prepay
any and all Loans outstanding related to such Turbines, in accordance with Section 2(e),
upon receiving written notice of such pending warranty expiration from the
Administrative Agent.  The appraisal
contemplated pursuant to this Section 5(a)(xxiii)(B) shall be
performed by the Appraiser in accordance with the Appraisal Procedure and shall
be delivered to the Administrative Agent no later than twenty (20) days after
applicable Take Out Date for which the appraisal is being performed (or the
applicable four month interval date).

 

(xxiv)       Compliance
with Anti-Money Laundering and OFAC Laws.

 

(A)          The Borrower shall comply at all times
with the requirements of all 

 

35

 

Anti-Money
Laundering Laws.

 

(B)           The Borrower shall provide the
Administrative Agent any information regarding Borrower, its Affiliates, and
its subsidiaries necessary for the Lenders to comply with all Anti-Money
Laundering Laws.

 

(C)           The Borrower shall comply at all
times with the requirements of all OFAC Laws.

 

(D)          The Borrower shall not, and shall
cause its Affiliates and subsidiaries and any persons or entities holding any
legal or beneficial interest whatsoever therein (whether directly or
indirectly) not to, conduct business with or engage in any transaction with any
person or entity named in the OFAC SDN List or any person or entity included
in, owned by, controlled by, acting for or on behalf of, providing assistance,
support, sponsorship, or services of any kind to, or otherwise associated with
any of the persons or entities referred to or described in the OFAC SDN List.

 

(E)           If the Borrower obtains actual
knowledge or receives any written notice that Borrower, any Affiliate,
subsidiary or any Person holding any legal or beneficial interest whatsoever
therein (whether directly or indirectly) is named on the OFAC SDN List (such
occurrence, an “OFAC Violation”), the Borrower shall immediately (i) give
written notice to the Administrative Agent of such OFAC Violation, and (ii) comply
with all applicable laws with respect to such OFAC Violation (regardless of
whether the party included on the OFAC SDN List is located within the
jurisdiction of the United States of America), including the OFAC Laws, and the
Borrower hereby authorizes and consents to the Administrative Agent and the
Lenders’ taking any and all steps such Person deems necessary, in its sole
discretion, to comply with all applicable laws with respect to any such OFAC
Violation, including the requirements of the OFAC Laws (including the “freezing”
and/or “blocking” of assets and reporting such action to OFAC).

 

(F)           Upon the Administrative Agent’s
request from time to time, Borrower shall deliver a certification confirming
its compliance with the covenants set forth in this Section 5(a)(xxiv).

 

(xxv)                 Project Review Updates.
With respect to each Qualified Project, the Borrower shall deliver to the
Administrative Agent in March and September of each calendar year an
update to the Project Review for such Qualified Project, noting any material
changes with respect to any information previously provided for purposes of the
applicable Project Review or any prior update thereof.

 

(xxvi)                Periodic
Appraisals.  With respect to each
Turbine for which Loans have been made at the 60% Advance Rate in respect of
the 2009 TSA, the Borrower shall deliver to the Administrative Agent on every March 31st
and September 30th of each calendar year, an appraisal in
respect of each such Turbine, performed in accordance with the Appraisal Procedure.  To the extent 

 

36

 

that the results of the appraisal indicate that the
value of any such Turbine has decreased by more than 3.0% from the Contract
Price allocated to such Turbine, then the Lenders shall have no obligation to
make any additional Loans in respect of such Turbine in excess of 60% of the
appraised value of the Turbine determined in accordance with the Appraisal
Procedure less the amount of the Loans already allocated to such Turbine
as of such date (the “Revised Advance Rate”); provided, however,
that, to the extent the Loans outstanding in respect of such Turbine which are
in excess of the Revised Advance Rate at the time the above calculation is
required to be made, the Borrower shall immediately prepay any and all
Loans outstanding related to such Turbine which are in excess of the Revised
Advance Rate, in accordance with Section 2(e) (excluding any
related capitalized fees or interest).

 

(xxvii)               Minimum Loan
Availability.  The Borrower shall take any
and all action to cause itself to be in compliance with the Loan Minimum
Availability calculation as applicable from time to time, including immediately
prepaying any and all Loans outstanding, obtaining Acceptable Alternative
Funding Commitments, or obtaining additional equity contributions from Holdco,
in each case, as necessary to ensure that the Borrower is in compliance of the
Loan Minimum Availability calculation, in accordance with Section 2(e).

 

(xxviii)              Interest Rate
Agreements.  The Borrower shall perform
each of its obligations under Interest Rate Agreements to which it is a party,
except to the extent that any failure to so perform could not reasonably be
expected to cause a Material Adverse Effect.

 

6.             Events of Default.

 

(a)           The occurrence of
any of the following events, conditions or circumstances shall constitute an
event of default under this Note (each, an “Event of Default”):

 

(i)      Failure
to Make Payments.  The Borrower shall
fail to pay (A) any portion of the principal of this Note on the date when
such portion of the principal becomes due and payable (including any mandatory
prepayment required pursuant to Section 2(e)(ii)); (B) any
interest accrued hereunder on the Loans within three (3) Business Days
after the date when such interest becomes due and payable hereunder; (C) any
fees payable under this Note within three (3) Business Days after the date
when such fees become due and payable and notice thereof is given to the
Borrower; or (D) any other amount payable by the Borrower under this Note
or under any Basic Document within ten (10) days after any such other
amount becomes due and payable and notice thereof is given to the Borrower;

 

(ii)     Judgments.  A final judgment or judgments shall be
entered by a court of relevant jurisdiction against the Borrower, any TSA
Company or any Relevant Qualified Project Company, in the aggregate amount of
$1,500,000 or more (net of insurance proceeds) which remains unstayed or
unsatisfied or for which no bond is posted in the amount of such judgment;

 

(iii)    Representations
and Warranties.  Any representation
or warranty made by the Borrower, Holdco, any TSA Company or the owner of any
Relevant Qualified Project Company under this Note or any other Basic Document
to which such Person is a party shall prove to have been incorrect in any
respect as of the time made or deemed made (unless such representation or
warranty expressly relates only to an earlier date) could reasonably be
expected to have a Material Adverse Effect, and the adverse effect of such
incorrect misrepresentation or warranty (if any) is not 

 

37

 

cured or addressed to the reasonable satisfaction of
the Administrative Agent and the Majority Lenders within thirty (30) days
after receipt of notice thereof by such Person;

 

(iv)   Bankruptcy;
Insolvency.  Any of the Borrower,
Holdco, any TSA Company, the owner of any Relevant Qualified Project Company or
any Relevant Qualified Project Company shall (A) admit in writing its inability to pay
its debts as its debts become due; (B) make a general assignment for the
benefit of creditors, or petition or apply to any tribunal for the appointment
of a custodian, receiver or trustee for its or a substantial part of its
assets; (C) commence any proceeding under any bankruptcy, reorganization,
arrangement, readjustment of debt, dissolution or liquidation; (D) have
had any such petition filed, or any such proceeding shall have been commenced
against it, in which an adjudication is made or order for relief is entered or
which remains undismissed for a period of seventy-five (75) days; (E) have
had a receiver, custodian or trustee appointed for all or a substantial part of
its property; or (F) take any action effectuating, approving or consenting
to any of the events described in clauses (A) through (E);

 

(v)    Breach
of a Turbine Supply Agreement. Borrower, any TSA Company or any other party
thereto shall breach or be in default under any Turbine Supply Agreement and
the Administrative Agent or Lenders shall have determined that the effect of
such breach or default could reasonably be expected to have a Material Adverse
Effect and such breach or default shall continue unremedied for 30 days after
notice from the Administrative Agent or Lenders to the Borrower.

 

(vi)   Loss of
a Turbine Supply Agreement.  Any
Turbine Supply Agreement shall cease for any reason to be in full force and
effect.

 

(vii)  Breach
of Covenants.

 

(A)              The Borrower
shall fail to perform or observe any covenant set forth in Sections 5(a)(i),
5(a)(v)(A), 5(a)(xi), 5(a)(xii), 5(a)(xiii), 5(a)(xv)-5(a)(xvii),
5(a)(xx), or 5(a)(xxiii);

 

(B)               The
Borrower shall fail to perform or observe any covenant set forth in Sections
5(a)(x) or 5(a)(xxi) and such failure shall continue unremedied
for a period of ten (10) Business Days; or

 

(C)               The Borrower, Holdco, any TSA
Company or the relevant owner of any Relevant Qualified Project Company shall
fail to perform or observe any other covenants set forth in this Note or any
other Basic Document to which it is a Party that is not listed in Section 6(a)(vii)(A) or
Section 6(a)(vii)(B) and such failure shall continue
unremedied for a period of thirty (30) days after receipt of notice of
such failure (or if such failure cannot be cured within such thirty (30) day period
with the use of commercially reasonable diligent efforts by the Borrower,
Holdco, any TSA Company or the relevant owner of any Relevant Qualified Project
Company (as applicable), such longer period not to exceed an additional
forty-five (45) days as may be necessary with the use of diligent efforts
to remedy such failure);

 

(viii)        Basic
Documents; Collateral.  Unless as a
result of the acts or omissions of any Lender or Agent, (A) any of the
Basic Documents (including any Collateral Documents), once executed and
delivered, shall cease to be in full force and effect; (B) any Collateral
Document 

 

38

 

(other than any Consent) shall fail to provide the
Lenders with the security interests in and to the Collateral intended to be
created thereby, or is declared null and void or otherwise ceases to be in full
force and effect; provided, however, that, to the extent that
such failure is reasonably susceptible of cure, such failure shall not
constitute an Event of Default to the extent that the Borrower, Holdco or any
TSA Company, as applicable, takes such action as the Collateral Agent may
reasonably request within no more than five (5) days after receiving the
Administrative Agent’s request therefor; or (C) the validity or
enforceability of any Collateral Document is contested in a legal proceeding by
the Borrower, Holdco or any TSA Company which is a party thereto, as
applicable; or

 

(ix)           Loss
of Permits.  Any Permit required to
be obtained or maintained by the Borrower or any TSA Company under any Turbine
Supply Agreement shall be revoked or cancelled by the issuing  Governmental Authority having jurisdiction,
or any such Permit shall otherwise fail to be in full force and effect, or the
Borrower or any TSA Company shall fail to comply with any such Permit, in each
case, which revocation, cancellation or failure could reasonably be expected to
have a Material Adverse Effect, and in each case, if any adverse effect of such
revocation, cancellation or failure is not remedied to the reasonable
satisfaction of the Lenders within sixty (60) days after receipt of notice
thereof by such Person.

 

(x)            Cross-Default.  Either (A) an event of default shall
have occurred and be continuing in respect of the payment of principal or
interest under the Second Lien Facility and any applicable grace period in
respect thereof shall have lapsed or (B) any other event of default shall
have occurred under the Second Lien Facility and all obligations of Holdco for
the payment of principal and interest thereunder shall have been accelerated
prior to their regularly scheduled maturity as a result of such event of
default.

 

(xi)           Transfer
of Interests.  The Sponsor shall fail
to directly own all of the issued and outstanding membership interests in
Holdco.

 

(b)       Upon the occurrence and
during the continuation of an Event of Default, the Administrative Agent may,
or, upon the request of the Majority Lenders shall, upon a notice thereof to
the Borrower (but without any further notice of exercise of remedies,
presentment, demand for payment, protest or other notices or demands of any
kind):

 

(i)            Cancel
all Commitments and/or refuse to make any Loans;

 

(ii)           Declare
and make any or all sums of accrued and outstanding principal of Loans and
accrued but unpaid interest remaining under this Note, together with all unpaid
fees, costs and amounts due hereunder or under any other Basic Document
immediately due and payable; provided, however, that, in the
event of a Event of Default occurring under Section 6(a)(iv), all
such amounts shall become immediately due and payable without further act of
any Lender, any Agent or other Person; or

 

(iii)          Exercise
any and all rights and remedies available to the Lenders under any of the Basic
Documents, including judicial or non-judicial foreclosure or public or private
sale of any of the Collateral (including the Pledged Equity Interests) pursuant
to the Collateral Documents for the entire amount of the unpaid principal
amount of the Loans then outstanding under this Note, along with all accrued
interest, fees and other amounts then due and payable with respect thereto.

 

39

 

(c)       Notwithstanding the other provisions of
this Section 6, and subject to Section 7(b), to the
extent that an Event of Default has occurred solely with respect to a
particular Qualified Project, a particular Turbine, a particular Turbine Supply
Agreement or a particular Relevant Qualified Project Company, the Borrower may
cure such Event of Default by repaying all Loans then outstanding with respect
to such Turbine or the Turbines funded hereunder and allocated to such
Qualified Project or purchased under such Turbine Supply Agreement, as
applicable, together with any interest, fees and other amounts accrued thereon;
provided that if such Event of Default relates solely to a Qualified
Project or Relevant Qualified Project Company, the Borrower may cure such Event
of Default by repaying such Loans as may be necessary to ensure that the
Borrower remains in compliance with its obligations hereunder after giving
effect to any reduction in the Loan Maximum Outstandings as a result of the
Contract Price for any Turbines allocated to such Qualified Project or Relevant
Qualified Project Company, as applicable, being subject to the 60% Advance
Rate. The Borrower shall make any such payment on or prior to the later of (i) ten
(10) days after the occurrence of the Inchoate Default that would give (or
has given) rise to the applicable Event of Default or (ii) the expiration
of the cure period applicable to the Inchoate Default that would give rise to
the applicable Event of Default after the expiration of such cure period.

 

7.             Collateral.

 

(a)             Collateral.  The Obligations shall be secured by the
following, and the Borrower shall deliver or cause to be delivered the
following (each in form and substance satisfactory to the Agents) to the Agents
at the times required pursuant to Section 3:

 

(i)            A
Pledge Agreement, duly executed by Holdco, in favor of the Collateral Agent
(the “Holdco Pledge Agreement”);

 

(ii)           A
Pledge and Security Agreement, duly executed by the Borrower, in favor of the
Collateral Agent (the “Borrower Security Agreement”);

 

(iii)          A
Pledge and Security Agreement, duly executed by each owner of the all of the
issued and outstanding membership interests in a Relevant Qualified Project
Company, whether owned by the Borrower, an Affiliate of the Borrower, or an unrelated
third party (each individually, a “Project Pledge Agreement”, and
collectively, the “Project Pledge Agreements);

 

(iv)          A
Guaranty and Security Agreement, duly executed by each TSA Company, in favor of
the Collateral Agent (each individually, a “TSA Company Security Agreement”,
and collectively, the “TSA Companies Security Agreements );

 

(v)           The
Consents from GE in respect of each Turbine Supply Agreement, in favor of the
Collateral Agent (the “Consents”); and

 

(vi)          Such
other Collateral Documents as are necessary to grant to the Lenders
first-priority liens in the Collateral subject to the foregoing Collateral
Documents.

 

(b)             Release of Collateral.  Upon
the repayment in full of the Obligations on the Maturity Date (or earlier to
the extent the Borrower elects to transfer or dispose of any Collateral in
accordance with the terms hereof or to cancel the Commitments pursuant to Section 2(d)),
the Collateral Agent and the Lenders shall release all of their liens on the 

 

40

 

Collateral (in the
case of any disposition or transfer only to the extent of the Collateral so
disposed of or transferred).  The
obligations of the Borrower pursuant to this Agreement shall continue to
be effective or automatically reinstated, as the case may be, if at any time
payment of any of the Obligations is rescinded or otherwise must be restored or
returned by any Lender upon the insolvency, bankruptcy, dissolution,
liquidation or reorganization of the Borrower or any other obligor or
otherwise, all as though such payment had not been made.

 

(c)       Removal of a
Qualified Project Company, a Turbine or a Turbine Supply Agreement.

 

(i)        Notwithstanding any
provision to the contrary in this Note, at any time, at the option of the Borrower,
the Borrower may replace a pledge of the outstanding membership interests in a
Qualified Project Company evidenced by a Project Pledge Agreement (each a “Replaced
Equity Interest”) with a pledge of all of the outstanding membership
interests in one or more replacement Qualified Project Companies which own one
or more Qualified Projects; provided that such owner of the proposed
replacement Qualified Project Company shall duly execute and deliver a
replacement Project Pledge Agreement, in form and substance reasonably
satisfactory to the Collateral Agent; provided, further, that,
following such replacement, the Collateral Agent will have a substantially
equivalent lien in respect of the relevant Qualified Project Companies that
will accommodate the same or a greater number of Turbines as the Qualified
Project Companies (including the Replaced Equity Interests) that form part of
the Collateral before such replacement, as determined by the Collateral Agent.

 

(ii)       Notwithstanding any provision to
the contrary in this Note and subject to the Borrower’s compliance with Section 2(e)(ii),
at any
time, the Borrower may (or shall as required pursuant to Section 5(a)(xviii),
Section 5(a)(xxiii) or Section 5(a)(xxvi)) remove one or
more Turbines, Turbine Supply Agreements or TSA Companies from the Collateral
(together with the pledge in the Qualified Project Companies, granted pursuant
to a Project Pledge Agreement, corresponding to the number of megawatts of
Turbines removed).

 

8.         Expenses; Indemnification; Net of Taxes.

 

(a)       Expenses.  The Borrower agrees hereby to reimburse the
Agents and the Lenders within thirty (30) days following demand for all
reasonable out-of-pocket costs, expenses and charges (including, without
limitation, reasonable and properly documented fees and charges of legal
counsel, consultants and advisors to the Agents and Lenders) incurred in
connection with the preparation, execution and delivery of this Note and the
other Basic Documents, any amendment or waiver of this Note or the other Basic Document,
any enforcement (including in any workout, restructuring or bankruptcy
proceeding) of this Note or any other Basic Document or the defense or
prosecution of any rights of the Agents and Lenders hereunder.

 

(b)       Indemnification.  The Borrower agrees hereby to indemnify and
hold the Agents and Lenders, together with their directors, officers,
employees, agents and consultants harmless from and against all claims,
damages, losses, liabilities, costs, deficiencies and expenses of third
parties, including, without limitation, investigative costs, settlement costs
and reasonable legal, accounting or other expenses of such third parties for
investigating or defending against any actions or threatened actions
(collectively, the “Losses”), arising out of 

 

41

 

or in connection
with (i) the execution or delivery of each Basic Document, including this
Note, and the performance by the Borrower, Holdco, any TSA Company or the
relevant owner of any Relevant Qualified Project Company of its obligations
under each such Basic Document to which it is a party, (ii) the making of
the Loans, and (iii) the use of the proceeds of any Loans and any
prospective claim, litigation, investigation or proceeding related to any of
the foregoing, but excluding, in each case, any such Losses incurred by reason
of the bad faith, gross negligence or willful misconduct of any Person
indemnified hereunder.  Except as
otherwise provided in Section 8(c), the Borrower agrees hereby to
indemnify and hold the Agents and the Lenders harmless for the full amount of
taxes (excluding taxes (including franchise taxes and minimum taxes) imposed on
or measured by the income or capital of the Agents and the Lenders, or any
branch profits taxes imposed by the United States or any other jurisdiction)
arising from the execution, delivery or performance of its obligations or from
receiving a payment under any Basic Document, or enforcing this Note, or any
liability (including penalties, interest and expenses) arising therefrom or
with respect thereto, whether or not such taxes have been correctly assessed by
the applicable governmental agency; provided, however, that the
Borrower shall not be required to indemnify any such Person for any penalties,
interest or expenses relating to taxes arising from the Agents’ or any Lender’s
bad faith, gross negligence, willful misconduct or unexcused breach of this
Note.  The Administrative Agent shall
promptly notify the Borrower of any claim under this Section 8.  The Borrower may elect to assume the defense
of any action, proceeding or dispute with a third party in respect of which a
claim is to be made under this Section 8(b); provided, however,
that if the Borrower assumes control of the defense of any such action, proceeding
or dispute, the Borrower shall not agree or conclude any settlement that
affects any Agent or any Lender in any material respect without the prior
written approval of such affected Agent or Lender (such approval not to be
unreasonably withheld or delayed).  In
the event the Borrower assumes control of the defense of any such action,
proceeding or dispute, the Borrower shall not be liable to such Agent and/or
Lender, as applicable for any legal fees and expenses of additional counsel
incurred by such Agent and/or Lender in connection with such defense; provided,
however, that such Agent and/or Lender shall (at its own expense) have
the right to employ its own counsel whose reasonable legal fees and expenses
shall be indemnified by the Borrower if (A) there is or could reasonably
be expected to be a conflict of interest between such Agent and/or Lender, as
applicable, and the Borrower in connection with the defense of such action,
proceeding or dispute, or (B) there is a specific defense available to
such Agent and/or Lender which is different from or additional to those
available to the Borrower.  Each Lender,
if such Lender determines in its sole discretion that it has received a refund
of any taxes as to which it has received an indemnification, or with respect to
which the Borrower has paid additional amounts, agrees to repay to the Borrower
any such refund, net of any out of pocket costs incurred by the Administrative
Agent or the applicable Lender, as the case may be, in connection therewith and
without interest (other than any net after tax interest paid by the relevant
Governmental Authority with respect to such refund), as soon as commercially
practicable after receipt of such refund. 
Whenever any taxes are payable by the Borrower pursuant to this Section 8,
as promptly as possible thereafter, the Borrower shall send to the Lender a
certified copy of an original receipt (if reasonably available) received by the
Borrower showing payment thereof.

 

(c)       Withholding
Certificates.  Any and all payments
to or for the benefit of the Lenders under this Note or the other Basic
Documents shall be made free and clear of, and without deduction, setoff or
counterclaim of any kind whatsoever and in such amounts as may 

 

42

 

be necessary in
order that all such payments, after deduction for or on account of, any present
or future taxes, levies, imposts, charges or withholdings imposed by the United
States of America or any political subdivision thereof, arising or relating to
the relevant Lender’s Commitments or Loans hereunder, as applicable (excluding
taxes (including franchise taxes and minimum taxes) imposed on or measured by
the income or capital of the Agents and the Lenders or any branch profits taxes
imposed by the United States or any other jurisdiction) shall not be less than
the amounts otherwise due and payable under this Note.  The Borrower shall not be required to pay any
additional amount to (or indemnify) any Agent or any Lender under this Section 8
to the extent that the obligation to withhold or pay such amount with respect
to indemnified taxes existed on the date that such Agent or Lender became a
party to this Note (or, in the case of a transferee that is a participation
holder, on the date such a participation holder became a transferee hereunder)
except, in each case, to the extent the transferor was entitled to additional
payments or indemnification hereunder. 
Each Agent and each Lender (upon becoming a Lender hereunder) and any
Person to which any Lender grants a participation (or otherwise transfers its
interest in this Note) as permitted by this Note agrees that on the date such
Lender or Person becomes a party to this Note it will deliver to each of the
Borrower and the Administrative Agent either (A) if such Lender or Person
is a United States person as defined in the Code, two duly and appropriately
completed copies of a United States Internal Revenue Service Form W-9 or
any successor applicable form or (B) if such Lender or Person is not a
United States person as defined in the Code, two duly and appropriately
completed copies of United States Internal Revenue Service Form W-8IMY,
W-8ECI or W-8BEN (in the case of any Lender claiming an exemption under the
so-called portfolio interest exemption rules, together with an exemption
certificate reasonably satisfactory to the Borrower and the Administrative
Agent) or successor applicable form, as the case may be, and, if reasonably
requested by the Borrower or the Administrative Agent, any additional statements
and forms so requested from time to time and including a U.S. taxpayer
identification number if required by such form or otherwise necessary to obtain
any benefit claimed therein.  Each Lender
required to deliver to the Borrower and the Administrative Agent a form, or
certificate pursuant to the preceding sentence shall deliver such form or
certificate as follows:  (x) each
Lender which is a party hereto on the Closing Date shall deliver such form or
certificate at least five (5) Business Days prior to the first date on
which any payment hereunder or under any other Basic Document is payable by the
Borrower hereunder for the account of such entity; and (y) each assignee
or participant shall deliver such form at least five (5) Business Days
before the effective date of such assignment or participation.  Each Lender which is required to deliver to
the Borrower and the Administrative Agent a Form W-9, W-8IMY, W-8ECI or
W-8BEN or other form or statement pursuant to the preceding sentence further
undertakes to deliver to the Borrower and the Administrative Agent further
copies of the Form W-9, W-8IMY, W-8ECI or W-8BEN, or successor applicable
form or other form or certificate, or other manner of certification or
procedure, as the case may be, at least ten (10) days before any such form
or certificate expires or becomes obsolete (which date shall be notified by the
Borrower or the Administrative Agent) or within a reasonable time (not to
exceed sixty (60) days) after gaining knowledge of the occurrence of any event
requiring a change in the most recent forms or certificates previously
delivered by it to the Borrower and the Administrative Agent, unless in any
such cases an event has occurred prior to the date on which any such delivery
would otherwise be required which renders all such forms inapplicable or which
would prevent a Lender from duly completing and delivering any such form with
respect to it.  The Borrower shall not be
obligated to pay any additional amounts pursuant to this Section 8
(or make an indemnification payment pursuant to this Section 8) to 

 

43

 

any Lender or
Person (including any Person to which any Lender sells, assigns, grants a
participation in, or otherwise transfers, its rights under this Agreement) to
the extent the obligation to pay such additional amounts (or such
indemnification) would not have arisen but for a failure of such Lender or
Person to comply with its obligations under this Section 8(c).
Notwithstanding the foregoing or anything else to the contrary in this Note, no
Lender or other Person shall be obligated to deliver any form, certificate or
document which it cannot deliver as a matter of law.

 

(d)       Upon a change of law
with respect to any Lender following delivery of the documentation set forth in
Section 8(c) above, the Borrower shall gross up any payments
due to such Lender hereunder that become subject to withholding tax to mitigate
the effect to such Lender of the change of law; provided, however,
that such Lender shall use commercially reasonable efforts to mitigate the
effects of such change of law, and if such Lender is unsuccessful in its
efforts, such Lender shall assign its Loans and Commitments and the related
rights and obligations to a new lender identified by the Borrower, as set forth
in a written request by the Borrower (and pursuant to assignment documentation
acceptable to such Lender); and provided, further, that such
Lender shall not be obligated to assign its Loans and Commitments for the
lesser of their face value or their fair market value.

 

9.             No Recourse.

 

No Agent or Lender shall have claims of any
kind or nature (other than for fraud, willful misconduct or express
indemnities) with respect to the transactions contemplated by this Note and the
other Basic Documents against Holdco, the Sponsor or any Affiliate thereof
(except for the Borrower and each TSA Company), or the stockholders, members or
other owners, officers, directors or employees of any of such Person (each, a “Non-Recourse
Party”), except to the extent of any obligations of a Non-Recourse Party
specifically provided in the Basic Documents to which such Non-Recourse Party
is a party.  Subject to the exception at
the end of the foregoing sentence, if (a) any Event of Default shall have
occurred and is continuing, or (b) any claim by the Administrative Agent
or the Lenders against the Borrower or any alleged liability of the Borrower to
the Agents or the Lenders shall be asserted under any of the Basic Documents,
in each case, the Administrative Agent and the Lenders agrees that it shall not
have the right to proceed against any of the Non-Recourse Parties or against
their respective properties and assets for the satisfaction of any such claim
or liability or for any deficiency judgment (other than for fraud, willful
misconduct or express indemnities).

 

10.          Governing Law; Submission to
Jurisdiction.  This
Note shall be governed by, and construed in accordance with, the laws of the
State of New York (without regard to conflict of laws provisions thereof other
than Section 5-1401 of the New York General Obligations Law). The Borrower
agrees that any legal action or proceeding arising out of or relating to this
Note or any other Basic Document, or any legal action or proceeding to execute
or otherwise enforce any judgment obtained against the Borrower, for breach
hereof or thereof, or against any of its properties, may be brought in the
courts of the State of New York or the United States District Court for the
Southern District of New York by the Agents and Lenders or on behalf of the
Agents and Lenders, as the they may elect. 
The Borrower hereby irrevocably and unconditionally submits to the
non-exclusive jurisdiction of such courts for purposes of any such legal action
or proceeding.  Service of process by the
Agents and Lenders in any such dispute shall be binding on the Borrower if sent
to the Borrower by registered or certified mail, at 

 

44

 

the address specified on the signature page of this Note.  The Borrower agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in any
other jurisdiction.

 

THE BORROWER
WAIVES ANY RIGHT IT MAY HAVE TO JURY TRIAL IN ANY ACTION RELATED TO THIS
NOTE, ANY OTHER BASIC DOCUMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY OR
THEREBY.

 

NO CLAIM SHALL BE MADE BY ANY PARTY HERETO OR ANY OF
ITS AFFILIATES, DIRECTORS, EMPLOYEES, ATTORNEYS OR AGENTS AGAINST ANY OTHER
PARTY HERETO OR ANY OF ITS AFFILIATES, DIRECTORS, EMPLOYEES, ATTORNEYS OR
AGENTS FOR ANY SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES (WHETHER OR
NOT THE CLAIM THEREFOR IS BASED ON CONTRACT, TORT, DUTY IMPOSED BY LAW OR
OTHERWISE), IN CONNECTION WITH, ARISING OUT OF OR IN ANY WAY RELATED TO THE
TRANSACTIONS CONTEMPLATED BY THIS NOTE OR THE OTHER BASIC DOCUMENTS OR ANY ACT
OR OMISSION OR EVENT OCCURRING IN CONNECTION THEREWITH; AND EACH PARTY HEREBY
WAIVES, RELEASES AND AGREES NOT TO SUE UPON ANY SUCH CLAIM FOR ANY SUCH
SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES, WHETHER OR NOT ACCRUED
AND WHETHER OR NOT KNOWN OR SUSPECTED TO EXIST IN ITS FAVOR.

 

11.          Assignment.  This Note shall be binding on, and shall inure to the benefit of, the
Borrower, the Agents, the Lenders and their respective successors and permitted
assigns; provided, however, that (a) the Borrower may not
assign or transfer its rights or obligations under this Note without the prior
written consent of the Lenders, and (b) no Lender may assign or transfer
its rights or obligations under this Note or sell or grant any voting
participations under this Note to any other Person without the prior written
consent of the Borrower, which consent shall not be unreasonably withheld or
delayed except that no consent of the Borrower shall be required upon the occurrence
and during the continuance of an Event of Default.  Upon such assignment or transfer, the
Administrative Agent shall provide to the Borrower the name, address and
contact information of the permitted assignee or transferee.  The Mandated Lead Arranger shall arrange and
conduct a syndication of the Loans and Commitments as described in the Mandate
Letter.

 

12.          Administrative Agent; Collateral Agent.

 

(a)           Appointment,
Powers and Immunities.

 

(i)            Each Lender hereby appoints and authorizes the
Administrative Agent to act as the Administrative Agent hereunder and under the
other Basic Documents with such powers as are expressly delegated to the
Administrative Agent by the terms of this Note and the other Basic Documents,
together with such other powers as are reasonably incidental thereto.  Each Lender hereby appoints and authorizes
the Collateral Agent to act as the Collateral Agent hereunder and under the
other Basic Documents with such powers as are expressly delegated to the
Collateral Agent by the terms of this Note and the other Basic Documents,
together with such other powers as are reasonably incidental thereto.  None of the Agents shall have any duties or
responsibilities except those expressly set forth in this Note or in any other
Basic Document, and none of the Agents shall be a trustee for, or fiduciary of,
any Lender.  Notwithstanding anything to
the contrary 

 

45

 

contained herein, none of the Agents shall be required
to take any action which is contrary to this Note or any other Basic Documents
or any Governmental Rule or exposes such Agent to any liability (other
than breach by such Agent of this Note or the other Basic Documents).  None of the Agents or their respective
Affiliates shall be responsible to any other Lender for any recitals,
statements, representations or warranties made by Borrower contained in this
Note or any other Basic Document or in any certificate or other document
referred to or provided for in, or received by any Agent or any Lender under
this Note or any other Basic Document, for the value, validity, effectiveness,
genuineness, enforceability or sufficiency of this Note, any other Basic
Document or any other document referred to or provided for herein or for any
failure by Borrower to perform its obligations hereunder or thereunder.  Each Agent may employ other agents and
attorneys-in-fact and shall not be responsible for the negligence or misconduct
of any such agents or attorneys-in-fact selected by it with reasonable care.

 

(ii)     Powers, Obligations and Immunities of the Agents.  None of the Agents or their respective
directors, officers, employees or agents shall be responsible for any action
taken or omitted to be taken by it or them hereunder or under any other Basic
Document or in connection herewith or therewith, except for its or their own
gross negligence or willful misconduct or breach of this Note or the other
Basic Documents.  Without limiting the
generality of the foregoing, each Agent (i) may treat the payee of any
Loan as the holder thereof until the Administrative Agent receives written
notice of the assignment or transfer thereof signed by such payee and in form
and substance satisfactory to the Administrative Agent; (ii) may consult
with legal counsel (including counsel for Borrower), independent public
accountants and other experts selected by it and shall not be liable for any
action taken or omitted to be taken in good faith by them in accordance with
the advice of such counsel, accountants or experts; (iii) makes no
warranty or representation to any Lender for any statements, warranties or
representations made in or in connection with any Turbine Supply Agreement or
Basic Document; (iv) shall not have any duty to ascertain or to inquire as
to the performance or observance of any of the terms, covenants or conditions
of any Basic Document or Turbine Supply Agreement on the part of any party
thereto or to inspect the property (including the books and records) of
Borrower or any other Person; and (v) shall not be responsible to any
Lender for the due execution, legality, validity, enforceability, genuineness,
sufficiency or value of any Basic Documents, Turbine Supply Agreement or any
other instrument or document furnished pursuant hereto or thereto.  Except as otherwise provided under this Note,
each Agent shall take such action or refrain from taking such action with
respect to the Basic Documents as shall be directed by the Lenders or the
Majority Lenders, as applicable.  Each
Agent shall deliver to the other Agents and the Lenders, without duplication,
the notices, certificates, reports, opinions, agreements and other documents it
receives under this Note, any Turbine Supply Agreement and the other Basic
Documents in its capacity as Agent hereunder.

 

(b)           Reliance by the
Agents.  Each Agent shall be entitled
to rely upon any certificate, notice or other document (including any cable or
telecopy) believed by it to be genuine and correct and to have been signed or
sent by or on behalf of the proper Person or Persons, and upon advice and
statements of legal counsel, independent accountants and other experts selected
by such Agent, as applicable.  As to any
other matters not expressly provided for by this Note, none of the Agents shall
be required to take any action or exercise any discretion, but shall be
required to act or to refrain from acting upon instructions of the Lenders or,
where expressly provided, the Majority Lenders (except that no Agent shall be
required to take any action which exposes such Agent to personal liability or
which is contrary to this Note, any other Basic Document or any Governmental
Rule) and shall in all cases be fully 

 

46

 

protected in
acting, or in refraining from acting, hereunder or under any other Basic
Document in accordance with the instructions of the Lenders (or, where so
expressly stated, the Majority Lenders), and such instructions of the Lenders
(or Majority Lenders, where applicable) and any action taken or failure to act
pursuant thereto shall be binding on all of the Lenders.

 

(c)           Non-Reliance.  Each Lender represents that it has,
independently and without reliance on the Administrative Agent, the other
Agents or any other Lender, and based on such documents and information as it
has deemed appropriate, made its own appraisal of the financial condition and
affairs of Borrower and decision to enter into this Note and agrees that it
shall, independently and without reliance upon the Administrative Agent, the
other Agents or any other Lender, and based on such documents and information
as it shall deem appropriate at the time, continue to make its own appraisals
and decisions in taking or not taking action under this Note.  None of the Administrative Agent, the
Collateral Agent, or any Lenders shall be required to keep informed as to the
performance or observance by Borrower under this Note or any other document
referred to or provided for herein or to make inquiry of, or to inspect the
properties or books of Borrower.

 

(d)           Default.  Neither the Administrative Agent nor the
Collateral Agent (each acting in its capacity as the Administrative Agent or
the Collateral Agent, as applicable, and not in any other capacity) shall be
deemed to have knowledge or notice of the occurrence of any Event of Default
unless the Administrative Agent or the Collateral Agent has received a written
notice from a Lender or Borrower, referring to this Note, describing such Event
of Default and indicating that such notice is a “notice of default.”  If the Administrative Agent or the Collateral
Agent receives such a notice of the occurrence of an Event of Default, the
Administrative Agent shall give notice thereof to the Lenders.  The Administrative Agent or the Collateral
Agent, as applicable, shall take such action with respect to such Event of
Default as is provided in Section 6 or if not provided for in Section 6,
as the Administrative Agent or the Collateral Agent, as applicable, shall be
reasonably directed by the Lenders; provided, however, that
unless and until the Administrative Agent or the Collateral Agent, as
applicable, shall have received such directions, the Administrative Agent or
the Collateral Agent, as applicable, may (but shall not be obligated to) take
such action, or refrain from taking such action, with respect to such Event of
Default as it shall deem advisable in the best interest of the Lenders.

 

(e)           Indemnification.  Without limiting the obligations (including
the Obligations) of Borrower hereunder, each Lender agrees to indemnify the Administrative
Agent, and the Collateral Agent ratably in accordance with such Lender’s
Proportionate Share for any and all liabilities, obligations, losses, damages,
penalties, actions, judgments, suits, costs, expenses or disbursements of any
kind or nature whatsoever which may at any time be imposed on, incurred by or
asserted against the Administrative Agent or the Collateral Agent in any way
relating to or arising out of this Note or any documents contemplated by or
referred to herein or therein or the transactions contemplated hereby or
thereby or the enforcement of any of the terms hereof or thereof or of any such
other documents; provided, however, that no Lender shall be
liable for any of the foregoing to the extent they arise solely from the
relevant Agent’s gross negligence or willful misconduct as determined by a
final non-appealable judgment of a court of competent jurisdiction.  Any Agent shall be fully justified in
refusing to take or to continuing to take any action hereunder unless it shall
first be indemnified to its satisfaction by the Lenders against any and all
liability and expense which may be incurred by 

 

47

 

it by reason of
taking or continuing to take any such action. 
Without limitation of the foregoing, each Lender agrees to reimburse the
relevant Agent promptly upon demand for such Lender’s Proportionate Share of
any out-of-pocket expenses (including counsel fees) incurred by such Agent in
connection with the preparation, execution, administration or enforcement of,
or legal advice in respect of rights or responsibilities under, the Basic
Documents or the Turbine Supply Agreement, to the extent that such Agent is not
reimbursed promptly for such expenses by Borrower.

 

(f)            Successor to the
Administrative Agent or the Collateral Agent.  Each of the Administrative Agent and the
Collateral Agent acknowledges that its current intention is to remain the
Administrative Agent or the Collateral Agent, as applicable, hereunder.  Nevertheless, the Administrative Agent or the
Collateral Agent, as applicable, may resign at any time by giving written
notice thereof to the Lenders and Borrower, such resignation to be effective
only upon the acceptance of the appointment of a successor for the Administrative
Agent or the Collateral Agent, as applicable. 
Furthermore, the Administrative Agent or the Collateral Agent, as
applicable, may assign its duties and rights as the Administrative Agent or the
Collateral Agent, as applicable, to any affiliate of HSH Nordbank AG, New York
Branch satisfying the requirements set forth below upon sixty (60) days’ prior
written notice to the Lenders and Borrower. 
Upon the occurrence of such assignment, all rights and obligations of
HSH Nordbank AG, New York Branch as the Administrative Agent or the Collateral
Agent, as applicable, under the Basic Documents shall be transferred to such
assignee, and the parties hereto shall execute in conjunction therewith
assignment documentation and such other documentation as shall be necessary or
desirable to preserve the transactions contemplated hereby and to preserve the
respective security interests of the Administrative Agent or the Collateral
Agent, as applicable, in the Collateral, all as shall be reasonably
satisfactory to such assignee.  The
Administrative Agent or the Collateral Agent may be removed involuntarily only
for a material breach of its duties and obligations hereunder or under the
other Basic Documents or for gross negligence or willful misconduct as
determined by a final non-appealable judgment of a court of competent
jurisdiction in connection with the performance of its duties hereunder or
under the other Basic Documents and then only upon the affirmative vote of the
Majority Lenders (excluding the Administrative Agent or the Collateral Agent,
as applicable, from such vote and the Proportionate Share of the Loans
attributable to the Administrative Agent, Collateral Agent or their Affiliates
from the amounts used to determine the portion of the Loans necessary to constitute
the required Proportionate Share of the remaining Lenders).  Upon any such resignation or removal, the
Majority Lenders shall have the right to appoint a successor to the
Administrative Agent or the Collateral Agent with the consent of Borrower
(unless an Event of Default shall have occurred and be continuing), which
consent shall not be unreasonably withheld or delayed.  If no successor to the Administrative Agent
or the Collateral Agent, as applicable, shall have been so appointed by the
Majority Lenders, and shall have accepted such appointment, within thirty (30)
days after the retiring Administrative Agent or the retiring Collateral Agent,
as applicable, has delivered its notice of resignation or the Lenders’ removal
of the retiring Administrative Agent or the retiring Collateral Agent, the
retiring Administrative Agent or Collateral Agent may, on behalf of the
Lenders, appoint a successor Administrative Agent or Collateral Agent, as
applicable, which shall be a Lender, if any Lender shall be willing to serve,
and otherwise shall be a financial institution having a combined capital and
surplus of at least $500,000,000 and acceptable to the Lenders and (unless a
Event of Default shall have occurred and be continuing) reasonably acceptable
to Borrower.  Upon the acceptance of any
appointment as the Administrative Agent 

 

48

 

or the Collateral
Agent, as applicable, under the Basic Documents by a successor Agent, such
successor Administrative Agent or successor Collateral Agent shall thereupon
succeed to and become vested with all the rights, powers, privileges and duties
of the retiring Administrative Agent or the retiring Collateral Agent, as
applicable, and the retiring Administrative Agent or the retiring Collateral
Agent shall be discharged from its duties and obligations as the Administrative
Agent or the Collateral Agent, as applicable, only under the Basic
Documents.  After the resignation or
removal of any retiring Administrative Agent or the Collateral Agent hereunder,
the provisions of this Section 12 shall inure to its benefit as to
any actions taken or omitted to be taken by it while it was the Administrative
Agent or the Collateral Agent under the Basic Documents.

 

(g)           Authorization.  The Administrative Agent is hereby authorized
by the Lenders to execute, deliver and perform each of the Basic Documents to
which the Administrative Agent is or is intended to be a party and each Lender
agrees to be bound by all of the agreements of the Administrative Agent
contained in the Basic Documents.  The
Collateral Agent is hereby authorized by the Secured Parties to execute,
deliver and perform each of the Basic Documents to which the Collateral Agent
is or is intended to be a party and each Lender agrees to be bound by all of
the agreements of the Collateral Agent contained in the Basic Documents.

 

(h)           Other Rights and
Powers of the Administrative Agent and Collateral Agent.  With respect to its Commitments and the Loans
made by it, any Lender acting as an Agent hereunder shall have the same rights
and powers under the Basic Documents and Turbine Supply Agreement as any other
Lender and may exercise the same as though it were not an Agent hereunder.  The term “Lender,” or “Lenders,” shall,
unless otherwise expressly indicated, include any Lender acting as an Agent
hereunder in its individual capacity. 
Any Lender acting as an Agent hereunder and its Affiliates may accept
deposits from, lend money to, act as trustee under indentures of, and generally
engage in any kind of business with Borrower or any other Person, without any
duty to account therefor to the Lenders.

 

(i)            Amendments.  Subject to the provisions of this Section 12,
the Majority Lenders (or the Administrative Agent with the consent in writing
of the Majority Lenders) and Borrower may enter into agreements supplemental
hereto for the purpose of adding or modifying any provisions to the Basic
Documents or changing in any manner the rights of the Lenders or Borrower
hereunder or waiving any term or condition hereof; provided, however,
that no such supplemental agreement shall, without the consent of each affected
Lender:

 

(i)            Extend
the maturity of any Loan or this Note or reduce the principal amount thereof or
hereof, or reduce the rate or change the time of payment of interest due on any
Loan or under this Notes; or

 

(ii)           Modify
Sections 12(a) or 11; or

 

(iii)          Reduce
the amount or extend the payment date for any amount due under Section 2;
or

 

(iv)          Increase
the amount of the Commitments of any Lender hereunder; or

 

49

 

(v)           Reduce
or change the time or amount of payment of any fee payable to the Lenders
hereunder or under any other Basic Document; or

 

(vi)          Reduce
the percentage specified in the definition of Majority Lenders; or

 

(vii)         Amend
this Section 12(i); or

 

(viii)        Release
(prior to the date when all Obligations of Borrower under this Note and the
other Basic Documents have been paid in full in immediately available funds and
no Commitments remain outstanding) all or substantially all of the Collateral
from the lien of any of the Collateral Documents.

 

Notwithstanding anything to the contrary in this Section 12,
no amendment of any provision of this Note relating to any Agent shall be
effective without the written consent of such Agent.

 

(j)      Withholding Tax.

 

(i)           The
Administrative Agent may withhold from any interest payment to any Lender an
amount equivalent to any applicable withholding tax.  If the forms or other documentation required
by Section 8(c) are not delivered to the Administrative Agent,
then the Administrative Agent may withhold from any interest payment to any
Lender not providing such forms or other documentation, an amount equivalent to
the applicable withholding tax.

 

(ii)          If
the Internal Revenue Service or any authority of the United States or other
jurisdiction asserts a claim that the Administrative Agent did not properly
withhold tax from amounts paid to or for the account of any Lender (because the
appropriate form was not delivered, was not properly executed, or because such
Lender failed to notify the Administrative Agent or any other Person of a
change in circumstances which rendered the exemption from, or reduction of,
withholding tax ineffective, or for any other reason, other than gross
negligence or willful misconduct) such Lender shall indemnify promptly the
Administrative Agent and/or Borrower, as applicable, fully for all amounts
paid, directly or indirectly, by such Person as tax or otherwise, including
penalties, additions to tax and interest, together with all expenses incurred,
including legal expenses, allocated staff costs, and any out of pocket
expenses.

 

(iii)         If
any Lender sells, assigns, grants participations in, or otherwise transfers its
rights under this Note, the participant shall comply and be bound by the terms
of Section 8(c) and this Section 12(j) as
though it were such Lender.

 

(k)      Laws.  Notwithstanding the foregoing provisions of
this Section 12, no sale, assignment, transfer, negotiation or
other disposition of the interests of any Lender hereunder or under the other
Basic Documents shall be allowed if it would require registration under the
Securities Act of 1933, as amended, any other federal securities laws or
regulations or the securities laws or regulations of any applicable
jurisdiction.

 

(l)       Assignability to
Federal Reserve Bank. 
Notwithstanding any other provision contained in this Note or any other
Basic Document to the contrary, any Lender may assign all or any portion of the
Loans held by it to any Federal Reserve Bank or the United States Treasury as
collateral security pursuant to Regulation A of the Board of Governors of 

 

50

 

the Federal
Reserve System and any Operating Circular issued by such Federal Reserve Bank, provided
that any payment in respect of such assigned Loans made by Borrower to or for
the account of the assigning and/or pledging Lender in accordance with the
terms of this Note shall satisfy Borrower’s obligations hereunder in respect to
such assigned Loans or Notes to the extent of such payment.  No such assignment shall release the
assigning Lender from its obligations hereunder.

 

(m)          Exercise of
Discretion.  To the extent that the
Administrative Agent or the Collateral Agent, as applicable, has the right to
exercise discretion, make determinations or take actions pursuant to provisions
of this Note and the other Basic Documents, the Administrative Agent or the
Collateral Agent, as applicable, hereby agrees that if, in any specific instance
of exercising such discretion, making such determinations or taking such
action, the Administrative Agent or the Collateral Agent, as applicable,
receives written instructions from the Majority Lenders, the Administrative
Agent or the Collateral Agent, as applicable, will exercise such discretion,
make such determinations and take such actions in accordance with the written
instructions from the Majority Lenders in such instance with respect to the
exercising of such discretion or the making of such determination.  Notwithstanding the foregoing, each Lender
agrees that until the Administrative Agent or the Collateral Agent, as
applicable, receives written instructions from the Majority Lenders, the
Administrative Agent or the Collateral Agent may reasonably exercise
discretion, make determinations and take actions and that the Administrative
Agent or the Collateral Agent shall have no obligation to seek any such written
instructions.

 

13.          Miscellaneous.

 

(a)           The
provisions of this Note are intended to be severable.  If for any reason any provisions of this Note
shall be held invalid or unenforceable in whole or in part in any jurisdiction,
such provision shall, as to such jurisdiction, be ineffective to the extent of
such invalidity or unenforceability without in any manner affecting the
validity or enforceability thereof in any other jurisdiction or the remaining
provisions thereof in any jurisdiction.

 

(b)           No
amendment, modification or supplement to any provision of this Note shall be
effective unless the same shall be in writing and signed by the Borrower, the
Agents and the requisite amount of Lenders as required pursuant to Section 12(i).

 

(c)           The
waiver of any breach of any of the provisions of this Note shall not be
construed to be a waiver of any subsequent breach or default of the same or
other provisions.  No failure on the part
of the Agents or Lenders to exercise, and no delay in exercising, any right
hereunder shall operate as a waiver thereof or preclude any other or further
exercise thereof or the exercise of any other right.

 

(d)           The
remedies herein provided are cumulative and not exclusive of any remedies
provided by law.

 

(e)           Unless
otherwise agreed in writing, notices shall be given to the Agents, Lenders and
the Borrower at their respective addresses set forth on the signature pages to
this Note.  Notices under this Note shall
be effective (i) when personally delivered to a party hereto, upon receipt
as shown by messenger receipt, (ii) when mailed to such addressee, upon 

 

51

 

receipt of a signed confirmation from such addressee, or (iii) when
sent to such addressee by facsimile, upon receipt of the addressor’s facsimile
machine confirmation or other verifiable electronic receipt.

 

(f)            The provisions of Sections 8
and 10 shall survive the repayment of the Obligations and all other
amounts due and payable with respect thereto; provided, however,
that the provisions of Sections 8(a) and (b) only shall
survive for a period of one (1) year after the date on which the
Loans have been repaid in full and the Commitments have expired or have been
terminated or cancelled.

 

(g)           This Note and any
amendment, waivers, consents or supplements hereto or in connection herewith
may be executed in one or more counterparts, each of which when executed and
delivered shall be deemed an original, but all such counterparts together shall
constitute but one and the same instrument.

 

(h)           This
Note and any agreement, document or instrument attached hereto or referred to
herein integrate all the terms and conditions mentioned herein or incidental
hereto and supersede all oral negotiations and prior writings with respect to
the subject matter hereof.

 

(i)            The Agents and the
Lenders agrees to keep confidential, in accordance with their customary
procedures for handling confidential
information of this nature, any confidential information supplied to it by the
Borrower, Holdco, the Sponsor, any TSA Company and any Relevant Qualified
Project Company; provided, however, that such information does
not include information that (A) was publicly known or otherwise known to
it prior to the time of such disclosure and (B) subsequently becomes
publicly known through no act or omission by it or any Person acting on its
behalf; and provided, further, that nothing in this Section 13(j) shall
require the Agents or Lenders to obtain any consent of the Borrower, the
Sponsor, Holdco, any TSA Company or any Relevant Qualified Project Company in
connection with: (i) exercising any of the Agents’ and Lenders’ rights
under the Basic Documents, including those exercisable upon the occurrence of
an Event of Default; (ii) any situation in which any Agent or any Lender
is required by any Governmental Rule or 
any Governmental Authority to disclose information (if such Agent
or  Lender informs such Governmental
Authority of the confidential nature of such information and requests that it
be kept confidential to the fullest extent of the applicable law); (iii) providing
information to counsel or other consultants of the Agents and Lenders in
connection with the transactions contemplated by any of the Basic Documents (if
such Agent and Lender, as applicable, informs such counsel or consultants of
the confidential nature of such information and requires that it be kept
confidential except as permitted herein); or (iv) providing such
information to independent auditors of the Agents and Lenders (if the Agent and
Lender, as applicable, informs such auditors of the confidential nature of such
information and requires that it be kept confidential except as permitted
herein).  Notwithstanding the foregoing,
the parties hereto and their officers, directors, employees thereof are
authorized to disclose to any and all persons, without limitation of any kind,
the structure and tax aspects of this transaction (as defined in Treasury
Regulation Section 1.6011-4) and all materials of any kind which are
related to such structure and tax aspects.

 

[Signature page follows]

 

52

 

IN WITNESS
WHEREOF, the undersigned hereby executes this Note on the date first set forth
above.

 

	
   

  	
  NEP EQUIPMENT FINANCE CO., a Delaware

  limited liability company

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Christopher Lowe

  
	
   

  	
   

  	
  Name:     Christopher Lowe

  
	
   

  	
   

  	
  Title:       Vice President and Treasurer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Address for Notices:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NEP Equipment
  Finance Co.

  
	
   

  	
   

  	
  c/o Noble
  Environmental Power, LLC

  
	
   

  	
   

  	
  8 Railroad Avenue

  
	
   

  	
   

  	
  Second Floor, Suite 8

  
	
   

  	
   

  	
  Essex, CT 06426

  
	
   

  	
   

  	
  Attention:

  
	
   

  	
   

  	
  Facsimile No.:  (860) 767-7041

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  With a copy to:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  LATHAM & WATKINS LLP

  
	
   

  	
   

  	
  555 Eleventh Street, N.W.

  
	
   

  	
   

  	
  Washington, D.C. 20004

  
	
   

  	
   

  	
  Attention:  John L. Sachs

  
	
   

  	
   

  	
  Facsimile No.: (202) 637-2201

  

 

 

	
   

  	
  HSH
  NORDBANK AG, NEW YORK BRANCH,

  in its capacities as the Administrative Agent,

  Collateral Agent, Syndicated Agent, Bookrunner,

  Mandated Lead Arranger and Lender

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Tony K. Muoser

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
  Tony K. Muoser

  
	
   

  	
   

  	
  Title:

  	
  Senior Vice President 

  HSH Nordbank AG,

  
	
   

  	
   

  	
   

  	
  New York Branch

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Matthew Meares

  
	
   

  	
   

  	
  Name:

  	
  Matthew Meares

  
	
   

  	
   

  	
  Title:

  	
  Associate

  HSH Nordbank AG,

  
	
   

  	
   

  	
   

  	
  New York Branch

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  
	
   

  	
   

  
	
   

  	
  HSH Nordbank AG

  
	
   

  	
  230 Park Avenue, 33rd Floor

  
	
   

  	
  New York, New York 10169

  
	
   

  	
  Telephone:

  	
  (212) 407-6024

  
	
   

  	
  Telecopy:

  	
  (212)
  407-6807

  
	
   

  	
  Attention:

  	
  Loan
  Administration

  
					

 

 

	
   

  	
  KEYBANK NATIONAL ASSOCIATION, as Lead

  Arranger and Lender

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Paul
  J. Pace

  
	
   

  	
   

  	
  Name:     Paul
  J. Pace

  
	
   

  	
   

  	
  Title:       Vice
  President

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Address for Notices:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  127 Public Square

  	
   

  
	
   

  	
  OH-01-27-1207

  	
   

  
	
   

  	
  Cleveland OH 44114

  	
   

  
	
   

  	
  Telephone: (216) 689-4358

  	
   

  
	
   

  	
  Telecopy: (216) 689-5962

  	
   

  
	
   

  	
  Attention: Yvette Dyson-OwensExhibit
10.2(b)

 

EXECUTION VERSION

 

FIRST AMENDMENT TO
FIRST LIEN SENIOR SECURED PROMISSORY NOTE

 

This FIRST
AMENDMENT TO FIRST LIEN SENIOR SECURED PROMISSORY NOTE, dated as of February 13,
2008 (“Agreement”), by and among NEP EQUIPMENT FINANCE CO., LLC, a
Delaware limited liability company (“Borrower”), the financial
institutions party hereto as Lenders and 
HSH NORDBANK AG, NEW YORK BRANCH, as the Collateral Agent and the
Administrative Agent for the Lenders (in such capacities, together with its
successors in such capacities, the  “Agent”).

 

RECITALS

 

A.            Lenders,
Agent, and Borrower (collectively, the “Parties”) entered into the First
Lien Senior Secured Promissory Note, dated as of October 26, 2007 (as
amended, supplemented or modified from time to time, the “Turbine Supply
Loan Agreement”; capitalized terms used but not defined in this Agreement
have the meanings ascribed to them in the Turbine Supply Loan Agreement).

 

B.            The
Parties wish to provide for an amendment in respect of  certain provisions of the Turbine Supply Loan
Agreement, all on the terms and conditions set forth in this Agreement.

 

NOW, THEREFORE, in
consideration of the premises set forth above, and for other good and valuable
consideration, the receipt and adequacy of which are hereby acknowledged, the
Parties hereto hereby agree as follows:

 

1.     CERTAIN
AMENDMENTS

 

1.1     The
Parties hereby agree to amend the Turbine Supply Loan Agreement as follows:

 

The definition of “Applicable Margin” set forth in the Turbine Supply
Loan Agreement is hereby deleted in its entirety and replaced with the
following:

 

“              “Applicable
Margin” shall mean (a) with respect to any LIBO Rate Loans, 2.25% per
annum and (b) with respect to any Base Rate Loans, 1.25% per annum.”

 

1.2            The foregoing amendment is limited in effect
and, except as specifically set forth in this Section 1, shall
apply only as expressly set forth in this Agreement and shall not constitute a
waiver, modification or amendment of any other provision of the Turbine Supply
Loan Agreement or any other Basic Document. 
The Turbine Supply Loan Agreement is modified only by the express
provisions of this Agreement, and shall as so modified remain in full force and
effect and is hereby ratified and confirmed by the Borrower in all respects.

 

 

2.     MISCELLANEOUS

 

2.1   Effectiveness.  This Agreement shall become effective upon
the execution and delivery thereof by the Agent, the Majority Lenders and the
Borrower.

 

2.2   Headings Descriptive.  The headings of the several Sections and
subsections of this Agreement are inserted for convenience only and shall not
in any way affect the meaning or construction of any provision of this
Agreement.

 

2.3   Successors and Assigns.  This Agreement shall be binding upon and
inure to the benefit of the parties hereto and their respective successors and
assigns.

 

2.4   Counterparts.  This Agreement may be executed in any number
of counterparts and by the different parties hereto on separate counterparts,
each of which when so executed and delivered shall be an original, but all of
which shall together constitute one and the same instrument.

 

2.5   Governing Law.  THIS AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED AND INTERPRETED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK
(EXCLUDING ANY CONFLICT-OF-LAW OR CHOICE-OF-LAW RULES WHICH MIGHT LEAD TO THE
APPLICATION OF THE INTERNAL LAWS OF ANOTHER JURISDICTION).

 

[Signature page follows]

 

 

IN WITNESS
WHEREOF, the Parties to this Agreement have caused this Agreement to be
executed by their duly authorized representatives as of the day and year first
above written.

 

 

	
   

  	
  NEP EQUIPMENT FINANCE CO., LLC, a 

  Delaware  limited
  liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Christopher Lowe

  
	
   

  	
   

  	
  Name:     Christopher Lowe

  
	
   

  	
   

  	
  Title:       Vice President

  

 

 

	
  HSH NORDBANK AG, NEW YORK BRANCH, as
  Administrative Agent, Collateral Agent, Syndication Agent, Bookrunner,
  Mandated Lead Arranger and a Lender

  	
  KEYBANK NATIONAL ASSOCIATION, as 

  Lead Arranger and a Lender

  
	
   

  	
  By:

  	
  /s/
  Lawrence A. Mack

  
	
   

  	
  Name:     Lawrence A. Mack

  
	
   

  	
  Title:       Executive Vice President

  
	
  By:

  	
  /s/
  Tony K. Muoser

  	
   

  	
   

  	
   

  
	
  Name:     Tony K. Muoser

  	
   

  	
   

  
	
  Title:       Senior Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  S. Hancock

  	
   

  	
   

  	
   

  
	
  Name:     S. Hancock

  	
   

  	
   

  
	
  Title:       Senior Vice President

  	
   

  	
   

  

 

 

	
  DEXIA CRÉDIT  LOCAL, NEW YORK 

  BRANCH,  as a Lender

  	
  ALLIED IRISH BANKS, P.L.C.,

  as a Lender

  
	
   

  	
   

  
	
  By:

  	
  /s/
  Guy Cirincione

  	
   

  	
   

  	
   

  
	
  Name:     Guy Cirincione

  	
  By:

  	
  /s/
  Aidan Lanigan

  
	
  Title:       Deputy General Manager

  	
  Name:     Aidan Lanigan

  
	
   

  	
  Title:       Vice President

  
	
  By:

  	
  /s/
  Kevin Soucy

  	
   

  	
   

  	
   

  
	
  Name:     Kevin Soucy

  	
  By:

  	
  /s/
  Vaughn Buck

  
	
  Title:       Director

  	
  Name:     Vaughn Buck

  
	
   

  	
  Title:       Director

  

 

 

COMMERZBANK AG, NEW YORK AND GRAND CAYMAN BRANCHES,
as a Lender

 

 

	
  By:

  	
  /s/
  Andrew Campbell

  	
   

  	
   

  	
   

  
	
  Name:     Andrew Campbell

  	
   

  	
   

  
	
  Title:       Senior Vice President

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Janet Berry

  	
   

  	
   

  	
   

  
	
  Name:     Janet Berry

  	
   

  	
   

  
	
  Title:       Assistant Treasurer

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