Document:

Exhibit

REDACTED EXHIBIT: This Exhibit contains certain identified information that has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed. Redacted information is identified by [*]. 

THIRD AMENDED AND RESTATED

LIMITED LIABILITY COMPANY AGREEMENT

OF

DIAMOND STATE GENERATION HOLDINGS, LLC

dated as of June 14, 2019

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TABLE OF CONTENTS
Page
Article I DEFINITIONS    2
Section 1.1Definitions    2
Article II CONTINUATION; OFFICES; TERM    2
Section 2.1Continuation of the Company    2
Section 2.2Name, Office and Registered Agent    2
Section 2.3Purpose    2
Section 2.4Term    3
Section 2.5Organizational and Fictitious Name Filings; Preservation of Limited Liability    3
Section 2.6No Partnership Intended    3
Article III RIGHTS AND OBLIGATIONS OF THE MEMBERS    3
Section 3.1Membership Interests    3
Section 3.2Actions by the Members    4
Section 3.3Management Rights    6
Section 3.4Other Activities    6
Section 3.5No Right to Withdraw    6
Section 3.6Limitation of Liability of Members    7
Section 3.7Liability for Deficits    8

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Section 3.8Company Property    9
Section 3.9Retirement, Resignation, Expulsion, Incompetency, Bankruptcy or Dissolution of a Member    9
Section 3.10Withdrawal of Capital    9
Section 3.11Representations and Warranties    9
Section 3.12Covenants    11
Section 3.13Deferred Obligations    13
Section 3.14Events of Default    13
Section 3.15Matters Pertaining to the Grant    13
Section 3.16Separateness    15
Article IV CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS    16
Section 4.1Capital Contributions    16
Section 4.2Capital Accounts    18
Section 4.3Equity Contributions to Project Company    19
Section 4.4Conditions Precedent to Equity Contributions by Company    20
Section 4.5Supplemental Buyout Capital Contribution    23
Section 4.6Member Loans    23
Article V ALLOCATIONS    24
Section 5.1Allocations    24

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Section 5.2Adjustments    25
Section 5.3Tax Allocations    26
Section 5.4Transfer or Change in Company Interest    27
Section 5.5Timing of Allocations    27
Article VI DISTRIBUTIONS    27
Section 6.1Distributions    27
Section 6.2Withholding Taxes    28
Section 6.3Limitation upon Distributions    29
Section 6.4No Return of Distributions    29
Section 6.5Calculation of Internal Rate of Return    29
Section 6.6Satisfaction of Recapture-Related Obligations of the Class A Members to the Class B Member    30
Section 6.7Satisfaction of Certain Recapture-Related Obligations of the Class B Member to the Class A Members    31
Section 6.8Satisfaction of Certain Recapture-Related Obligations of the Company or the Project Company    31
Section 6.9Class A Recapture Events Prior to Receipt of Grant    32
Section 6.10Repayment    32
Section 6.11Permitted Distributions    33
Section 6.12Repurchase Distributions    33
Article VII ACCOUNTING AND RECORDS    34

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Section 7.1Reports    34
Section 7.2Books and Records and Inspection    36
Section 7.3Bank Accounts, Notes and Drafts    37
Section 7.4Financial Statements    38
Section 7.5Partnership Status and Tax Elections    39
Section 7.6Company Tax Returns    40
Section 7.7Tax Audits    41
Section 7.8Cooperation    43
Section 7.9Fiscal Year    43
Article VIII MANAGEMENT    44
Section 8.1Management    44
Section 8.2Managing Member    45
Section 8.3Major Decisions    46
Section 8.4Investor Decisions    47
Section 8.5Insurance    47
Section 8.6Notice of Material Breach    48
Article IX TRANSFERS, CHANGES OF CONTROL AND INDEMNIFICATION    48
Section 9.1Prohibited Transfers    48

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Section 9.2Conditions to Transfers of Class A Membership Interests or Changes of Control of Managing Member    48
Section 9.3Conditions to Transfers of Class B Membership Interests    50
Section 9.4Conditions to Changes of Control of Upstream Entities    52
Section 9.5Certain Permitted Transfers    53
Section 9.6[Intentionally omitted]    54
Section 9.7Purchase Option    54
Section 9.8Sale Option    55
Section 9.9Regulatory and Other Authorizations and Consents    56
Section 9.10Admission    57
Section 9.11Security Interest Consent    57
Section 9.12Indemnification; Other Rights of the Members    57
Section 9.13Indemnification of Members by the Company    59
Section 9.14Direct Claims    59
Section 9.15Third Party Claims    59
Section 9.16No Duplication    61
Section 9.17Sole Remedy    61
Section 9.18Survival    61
Section 9.19Final Date for Assertion of Indemnity Claims    62
Section 9.20Reasonable Steps to Mitigate    62

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Section 9.21Net of Insurance Benefits    62
Section 9.22No Consequential Damages    62
Section 9.23Payment of Indemnification Claims    63
Section 9.24Repayment; Subrogation    63
Article X DISSOLUTION AND WINDING-UP    63
Section 10.1Events of Dissolution    63
Section 10.2Distribution of Assets    64
Section 10.3In-Kind Distributions    65
Section 10.4Certificate of Cancellation    65
Article XI MISCELLANEOUS    65
Section 11.1Notices    65
Section 11.2Amendment    66
Section 11.3Partition    66
Section 11.4Waivers and Modifications    66
Section 11.5Severability    66
Section 11.6Successors; No Third-Party Beneficiaries    67
Section 11.7Entire Agreement    67
Section 11.8Governing Law    67
Section 11.9Further Assurances    67

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Section 11.10Counterparts    68
Section 11.11Dispute Resolution    68
Section 11.12Confidentiality    70
Section 11.13Joint Efforts    71
Section 11.14Specific Performance    72
Section 11.15Survival    72
Section 11.16Effective Date    72
Section 11.17Recourse Only to Member    72

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	ANNEXES
	 

	Annex I
	Definitions

	Annex II
	Class B Membership Interests

	SCHEDULES
	 

	Schedule 4.2(b)
	Contributed Property

	Schedule 4.2(d)
	Capital Account Balance and Percentage Interest of each Member

	Schedule 8.2(f)
	Officers

	Schedule 8.5
	Insurance

	Schedule 9
	Transfer Representations and Warranties

	EXHIBITS
	 

	Exhibit A
	Form of Class A Membership Interests Certificate

	Exhibit B
	Form of Class B Membership Interests Certificate

	Exhibit C
	Reserved

	Exhibit D
	Form of Assignment Agreement

	Exhibit E
	Form of Equity Contribution Notice

	Exhibit F
	Form of Redemption Agreement

 

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THIRD AMENDED AND RESTATED 
LIMITED LIABILITY COMPANY AGREEMENT 
OF 
DIAMOND STATE GENERATION HOLDINGS, LLC
Third Amended and Restated Limited Liability Company Agreement of Diamond State Generation Holdings, LLC, a Delaware limited liability company (the “Company”), dated as of June 14, 2019 by and among Clean Technologies II, LLC, a Delaware limited liability company (“Clean Technologies”) and Mehetia Inc., a Delaware corporation (“Mehetia”).  
Preliminary Statements
WHEREAS, the Company was formed by virtue of its certificate of formation filed with the Secretary of State of the State of Delaware on July 20, 2011 (the “Certificate of Formation”), and, prior to March 20, 2013, had been governed by the Amended and Restated Limited Liability Company Agreement of the Company, dated as of April 13, 2012 (the “Original Date”), executed by Clean Technologies and Mehetia as the members of the Company (the “2012 Operating Agreement”);
WHEREAS, pursuant to the Equity Capital Contribution Agreement among the Company, the Project Company, Clean Technologies and Mehetia, dated as of March 16, 2012 (as amended, amended and restated, supplemented or modified, the “ECCA”), Clean Technologies made a capital contribution to the Company on or before the Initial Funding Date, and Mehetia made a capital contribution to the Company in return for the issuance of Class B Membership Interests in the Company on the Initial Funding Date, subject to the terms and conditions as provided therein;
WHEREAS, Clean Technologies and Mehetia entered into that certain Second Amended and Restated Limited Liability Company Agreement of the Company dated as of March 20, 2013, which was amended by Clean Technologies and Mehetia as of September 25, 2013 (as amended, the “2013 Operating Agreement”);
WHEREAS, immediately prior to the Effective Date, the Company owned 100% of the issued and outstanding membership interests in Diamond State Generation Partners, LLC (the “Project Company”), which owns a portfolio of Existing Systems at the Brookside Site and the Red Lion Site having an aggregate nameplate capacity of 30 MW operated in accordance with the Tariffs and the REPS Act (collectively, the “Portfolio” or the “Project”);
WHEREAS, Bloom desires to purchase from the Project Company up to all of the 30MW of Existing Systems pursuant to the terms and conditions of, inter alia, a Repurchase Agreement by and between the Project Company and Bloom (the “Repurchase Agreement”), and replace such Existing Systems with New Systems; and

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WHEREAS, Clean Technologies and Mehetia desire for the 2013 Operating Agreement to be amended and restated in its entirety as stated herein.
NOW, THEREFORE, in consideration of the mutual covenants and agreements contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree, notwithstanding any contrary provision of the 2013 Operating Agreement, effective as of the date hereof, that the 2013 Operating Agreement is amended and restated in its entirety as described herein.

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Article I 
DEFINITIONS

Section 1.1    DefinitionsCapitalized terms used but not otherwise defined in this Agreement have the meanings given to such terms in Annex I.

ARTICLE II     
CONTINUATION; OFFICES; TERM

Section 2.1    Continuation of the CompanyThe Members hereby acknowledge the continuation of the Company as a limited liability company pursuant to the Act, the Certificate of Formation and this Agreement.

Section 2.2    Name, Office and Registered Agent
(a)    The name of the Company will be “Diamond State Generation Holdings, LLC” or such other name or names as complies with law and may be determined by the Managing Member from time to time and notified to the Members.  The principal office of the Company shall be located at 4353 N. 1ST Street, San Jose, California 95134.  The Managing Member may change the location of the principal office of the Company to another location, provided that the Managing Member gives prompt written notice of any such change to the registered agent of the Company and all Members.
(b)    The registered office of the Company in the State of Delaware is located at c/o Corporation Service Company, 2711 Centerville Road, Suite 400, Wilmington, Delaware 19808.  The registered agent of the Company for service of process at such address is Corporation Service Company.  The registered office and registered agent may be changed by the Managing Member at any time in accordance with the Act, provided that the Managing Member gives prompt written notice of any such change to all Members.  The registered agent’s primary duty as such is to forward to the Company at its principal office and place of business any notice that is served on it as registered agent.

Section 2.3    PurposeThe nature of the business or purpose to be conducted or promoted by the Company is:  (i) to acquire, own, hold or dispose of the membership interests in the Project Company; (ii) to engage in the transactions contemplated by the Transaction Documents; (iii) to engage, through the Project Company, in the operation of the Systems, and the repurchase, removal and Shutdown of the Existing Systems, in each case in accordance with the Transaction Documents; (iv) to engage, through the Project Company, in the business of generating and delivering to the PJM Grid, electricity, capacity, ancillary services and environmental attributes from the Systems in accordance with the Transaction Documents; and (v) to engage in any lawful act or activity, enter into any agreement and to exercise any powers permitted to limited liability companies organized under the Act in each case that are incidental to or necessary, suitable or convenient for the accomplishment of the purposes specified above.

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Section 2.4    TermThe term of the Company commenced on July 20, 2011 and shall continue until the Company is dissolved in accordance with the terms hereof or as otherwise provided by law (the “LLC Agreement Termination Date”).

Section 2.5    Organizational and Fictitious Name Filings; Preservation of Limited LiabilityThe Managing Member shall cause the Company to register as a foreign limited liability company and file such fictitious or trade names, statements or certificates in such jurisdictions and offices as are necessary or appropriate for the conduct of the Company’s operation of its business.  The Managing Member may take any and all other actions as may be reasonably necessary or appropriate to perfect and maintain the status of the Company as a limited liability company or similar type of entity under the laws of Delaware and any other state or jurisdiction other than Delaware in which the Company engages in business and continue the Company as a limited liability company and to protect the limited liability of the Members as contemplated by the Act.

Section 2.6    No Partnership IntendedThe Members intend that the Company not be a partnership, limited partnership, joint venture or other arrangement other than for tax purposes under the Code, the applicable Treasury Regulations and any state, municipal or other income tax law or regulation, and this Agreement shall not be construed to suggest otherwise.

ARTICLE III     
RIGHTS AND OBLIGATIONS OF THE MEMBERS

Section 3.1    Membership Interests
(a)    The Membership Interests comprise 9,505 Class A Membership Interests, all of which are issued and held by Clean Technologies, and 495 Class B Membership Interests, all of which are issued and held by Mehetia.
(b)    The Class A Membership Interests and the Class B Membership Interests shall (i) have the rights and obligations ascribed to such Membership Interests in this Agreement and the Act; (ii) be evidenced solely by certificates in the forms annexed hereto as Exhibit A and Exhibit B, respectively, or such other form as may be prescribed from time to time by any Legal Requirements; provided, that certificates evidencing the Class A Membership Interests and the Class B Membership Interests which were issued in the forms annexed to the 2012 Operating Agreement or the 2013 Operating Agreement prior to the date hereof shall continue to be valid; (iii) be recorded in a register of Membership Interests, which register the Managing Member shall maintain; (iv) be transferable only on recordation of such Transfer in the register of Membership Interest, which recordation the Managing Member shall make, upon compliance with the provisions of Article IX hereof and upon presentation of the certificates duly endorsed for Transfer, or accompanied by assignment documentation in accordance with Article IX; (v) be “securities” governed by Article 8 of the UCC in any jurisdiction (x) that has adopted revisions to Article 8 of the UCC substantially consistent with the 1994 revisions to Article 8 adopted by 

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the American Law Institute and the National Conference of Commissioners on Uniform State Laws and (y) whose laws may be applicable, from time to time, to the issues of perfection, the effect of perfection or non-perfection, and the priority of a security interest in Membership Interests in the Company; and (vi) be personal property.
(c)    The Company shall be entitled to treat the registered holder of a Membership Interest, as shown in the register of Membership Interests referred to in Section 3.1(b), as the Member for all purposes of this Agreement, except that the Managing Member may record in the register of Membership Interest any security interest of a secured party pursuant to any security interest permitted by this Agreement.
(d)    If a Member transfers all of its Membership Interest to another Person pursuant to and in accordance with the terms in Article IX, the transferor shall automatically cease to be a Member.

Section 3.2    Actions by the Members
(a)    Except as otherwise permitted by this Agreement (including Section 3.2(e) below), all actions of the Members shall be taken at meetings of the Members which may be called by any Member for any reason and shall be called by the Managing Member within 10 days following the written request of a Member.  The Members may conduct any Company business at any such meeting that is permitted under the Act or this Agreement.  Meetings shall be at a reasonable time and place.  Accurate minutes of any meeting shall be taken and filed with the minute books of the Company.  Following each meeting, the minutes of the meeting shall be sent promptly to each Member.
(b)    Members may participate in any meeting of the Members by means of conference telephone or other communications equipment so that all persons participating in the meeting can hear each other or by any other means permitted by law.  Such participation shall constitute presence in person at such meeting.
(c)    The presence in person or by proxy of Members owning more than 50% of the aggregate Class A Membership Interests and more than 50% of the aggregate Class B Membership Interests shall constitute a quorum for purposes of transacting business at any meeting of the Members; provided that, in the event that a quorum is not present or otherwise represented at a meeting of the Members duly called in accordance with this Section 3.2, the Members present at such meeting shall have the power to adjourn such meeting and to call another meeting no fewer than 10 days nor more than 15 days from such meeting (and notice thereof shall be promptly provided to all Members by the Managing Member) and the Members present at such second meeting shall constitute a quorum.  For the avoidance of doubt, no Major Decision shall be agreed at any meeting, or otherwise taken, without a Class Majority Vote and no Investor Decision may be taken without the prior written consent of Mehetia or implemented without the direction of Mehetia, in each case pursuant to Section 8.4. 

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(d)    Written notice stating the place, day and hour of the meeting of the Members, and the purpose or purposes for which the meeting is called, shall be delivered by or at the direction of the Managing Member or of the Member calling such meeting, to each Member of record entitled to vote at such meeting not less than five Business Days nor more than 30 days prior to the meeting.  Notwithstanding the foregoing, meetings of the Members may be held without notice so long as all the Members are present in person or by proxy.
(e)    Any action may be taken by the Members without a meeting if such action is authorized or approved by the written consent of Members representing sufficient Membership Interests to authorize or approve such action pursuant to this Agreement.  The Members may conduct any Company business or take any action required of Members under this Agreement through written consent.  Where action is authorized by written consent, including any Investor Decision, no prior notice is required and no meeting of Members needs to be called or noticed.  A copy of any action taken by written consent must be sent promptly to all Members and all actions by written consent shall be filed with the minute books of the Company.
(f)    Each Class A Membership Interest and each Class B Membership Interest shall be entitled to one vote for purposes of any vote, consent or approval of Members required under this Company LLC Agreement or the Act.  With respect to those matters required or permitted to be voted upon by the Members, or for which a consent or approval of Members is required or permitted, the affirmative vote, consent or approval of Members owning more than 50% of the outstanding Membership Interests (the “Majority Vote”) shall be required to authorize or approve any such matter; provided that (i) for Major Decisions (such term being used as defined prior to, or following, the Flip Date, as the case may be) the affirmative vote, consent or approval of more than 50% of the outstanding Class A Membership Interests and of more than 50% of the outstanding Class B Membership Interests shall be required to authorize or approve such Major Decision in addition to any other approval required by this Agreement or the Act (a “Class Majority Vote”), and (ii) for Investor Decisions the affirmative vote, consent or approval of Mehetia shall be required to authorize or approve such Investor Decision.  Except as otherwise expressly provided in this Agreement, no separate vote, consent or approval of either Class A Members acting as a class, or Class B Members acting as a class, shall be required to authorize or approve any matter for which a vote, consent or approval of Members is required under this Agreement. 

Section 3.3    Management Rights(a)    Except with respect to Investor Decisions, no Member other than the Managing Member shall have any right, power or authority to take part in the management or control of the business of, or transact any business for, the Company, to sign for or on behalf of the Company or to bind the Company in any manner whatsoever; provided, however, the Managing Member hereby agrees and acknowledges that, with respect to any Investor Decision, subject to the requirements imposed upon the Company pursuant to or under the Project Company LLC Agreement,  the Managing Member shall perform all acts with respect to such Investor Decision in order to cause the Company, the Project Company, Bloom or any of their respective Affiliates to effectuate the Investor Decision.  

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Except as otherwise provided herein, the Managing Member shall not hold out or represent to any third party that any other Member has any such power or right or that any Member is anything other than a member in the Company.  A Member, other than a Member who is the Managing Member, shall not be deemed to be participating in the control of the business of the Company by virtue of its possessing or exercising any rights set forth in this Agreement (including Mehetia exercising its rights with respect to Major Decisions or Investor Decisions) or the Act or any other agreement relating to the Company, including any Transaction Document.
(b)    The Managing Member shall, without any further action or approval by any other Member, (i) accept distributions from the Project Company consisting of two distributions of up to $[*] each (each a “Tariff Indemnity Distribution” and collectively the “Tariff Indemnity Distributions”) and one distribution of up to $[*] (the “ITC Indemnity Distribution”) relating to the payment by Bloom under the Repurchase Agreement of the “First Subsequent Deposit”, “Second Subsequent Deposit” and “Third Subsequent Deposit” (as such terms are defined in the Repurchase Agreement), (ii) cause a banking institution of its selection to post letters of credit in favor of Southern pursuant to the terms of the Project Company LLC Agreement, with the Company as the account party, in the amount of the Tariff Indemnity Distributions (once received) (each a “Tariff Indemnity Letter of Credit” or, if more than one, the “Tariff Indemnity Letters of Credit”) to provide security for Bloom’s indemnification obligations for “Tariff Damages” as set forth in Section 7.1(c) of the New ECCA, and in the amount of the ITC Indemnity Distribution (the “ITC Indemnity Letter of Credit”) to provide security for Bloom’s indemnification of as set forth in Section 7.1(d) of the New ECCA, and to renew such letters of credit on an annual basis as long the indemnity obligations of Bloom exist under Section 7.1(c) and Section 7.1(d) of the New ECCA, and (iii) place the Tariff Indemnity Distributions and the ITC Indemnity Distributions into a bank account or accounts and to pledge such account or accounts to the issuer of letters of credit described in the preceding subsection (ii), with such amounts, if not used to satisfy draws under such letters of credit, to be distributed to Clean Technologies in accordance with Section 6.13 as and when, and to the extent, such amounts are no longer required as security for such letters of credit.  Any other provision of the Agreement notwithstanding, the Members hereby approve the use of the Tariff Indemnity Distributions and the ITC Indemnity Distribution as collateral for the indemnity obligations of Bloom under Section 7.1(c) and Section 7.1(d) of the New ECCA. The Members further agree that all fees and other costs associated with the posting and renewal of the Tariff Indemnity Letter(s) of Credit and the ITC Letter of Credit shall be borne by the Class A Member alone.

Section 3.4    Other ActivitiesNotwithstanding any duty otherwise existing at law or in equity, any Member or the Administrator may engage in or possess an interest in other business ventures of every nature and description, independently or with others, even if such activities compete directly with the business of the Company, and neither the Company nor any of the Members shall have any rights by virtue of this Agreement in and to such independent ventures or any income, profits or property derived from them.

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Section 3.5    No Right to WithdrawExcept in the case of Transfers in accordance with Article IX, no Member shall have any right to resign voluntarily or otherwise withdraw from the Company without the prior written consent of each of the remaining Members of the Company in their sole and absolute discretion.

Section 3.6    Limitation of Liability of MembersEach Member and its officers, directors, shareholders, Affiliates, employees and agents (each a “Member Party”) shall (i) have liability limited as described in the Act and other applicable Legal Requirements and (ii) be exculpated from liability for and defended, indemnified and held harmless by the Company from any and all judgments, awards, causes of action, lawsuits, suits, proceedings, governmental investigations or audits, losses (including amounts paid in settlement of claims), assessments, fines, penalties, administrative orders or injunctions (including any loss of profits, consequential, punitive, incidental or special damages recovered in connection with a Third Party Claim), including interest, penalties, reasonable attorney’s fees, disbursements and costs of investigations, deficiencies, levies, duties and imposts (“Claims”) arising out of the performance by such Member Party of its obligations under this Agreement so long as (A) the Member Party acted in good faith and in a manner reasonably believed by it to be in the best interest of or not opposed to the interest of the Company or the Project Company, as applicable, and (B) the Member Party’s actions did not constitute willful misconduct, fraud or gross negligence or willful breach of any of its covenants under the Transaction Documents. Notwithstanding the foregoing, if the applicable Member Party to be indemnified and exculpated is Clean Technologies, it shall not be entitled to such indemnification and exculpation if the losses arise from a CT Indemnifiable Claim.  Except as otherwise required by the Act, the debts, obligations and liabilities of the Company, whether arising in contract, tort or otherwise, shall be the debts, obligations and liabilities solely of the Company, and the Members of the Company shall not be obligated personally for any of such debts, obligations or liabilities solely by reason of being a Member of the Company.
(a)    Each of the Members shall be fully protected in relying in good faith upon the records of the Company and upon such information, opinions, reports or statements presented to the Company by any other Person who is a Member, the Administrator or any officer or employee of the Company, or by any other individual as to matters that such Member reasonably believes are within such other Person’s professional or expert competence, including information, opinions, reports or statements as to the value and amount of the assets, liabilities, profits or losses of the Company or any other facts pertinent to the existence and amount of assets from which distributions to the Members might properly be paid.
(b)    To the extent that, at law or in equity, a Member, in its capacity as a member or manager of the Company or otherwise, has duties (including fiduciary duties) and liabilities relating thereto to the Company or to any Member or other Person bound by this Agreement, such Member, acting under this Agreement shall not be liable to the Company or to any Member or other Person bound by this Agreement for its good faith reliance on the provisions of this Agreement; provided that this Section 3.6(c) shall not be construed to limit 

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obligations or liabilities therefor, in each case as expressly stated in this Agreement or any other Transaction Document.  The provisions of this Agreement, to the extent that they restrict the duties and liabilities of a Member, in its capacity as a member or manager of the Company, otherwise existing at law or in equity, are agreed by the Members to replace such other duties and liabilities of such Member.
(c)    Clean Technologies, in its capacity as Managing Member, shall not have any liability for breach of contract (except as provided in (i) and (ii) below) or breach of duties (including fiduciary duties) of a member or manager to the Company or to any Member or other Person that is a party to or is otherwise bound by this Agreement, in each case, to the fullest extent permitted by the Act; provided that (i) this Agreement shall not limit or eliminate liability for any (x) obligations expressly imposed on Clean Technologies, as Managing Member, pursuant to this Agreement or any other Transaction Document, including to indemnify Mehetia (y) act or omission that constitutes a bad faith violation of the implied contractual covenant of good faith and fair dealing or (z) act or omission arising from the gross negligence, willful misconduct or fraud of Clean Technologies and (ii) this Section 3.6(d) shall not limit or eliminate liabilities expressly stated in this Agreement or any other Transaction Document.
(d)    Except as otherwise provided in Section 6.1 of the ECCA or Section 9.12 hereof with respect to liability resulting from fraud or willful misconduct, or with respect to its failure to pay any amount due to Investor Indemnified Parties under the Transaction Documents, or with respect to a Third Party Claim for breach of any Transaction Document or for damages resulting from a CT Indemnifiable Claim, Clean Technologies, in its capacity as Managing Member, shall have no liability of any kind to the Members under this Agreement for monetary damages in an amount that would exceed its aggregate obligation to indemnify the Investor Indemnified Parties pursuant to Section 9.12.  
(e)    Except as otherwise provided herein with respect to a CT Indemnifiable Claim, Clean Technologies, in its capacity as a Member or Managing Member, shall not have any liability to the Company, any Class B Member or any other Person bound by this Agreement for damages resulting from a breach or breaches by (i) the Administrator resulting from or arising out of the Administrator’s performance of its obligations under the Administrative Services Agreement (including any predecessor administrative services agreement the Company was party to prior to the date hereof), (ii) the Operator of any of its obligations, covenants or agreements under the MOMA, except to the extent that Clean Technologies is the Managing Member and it is finally determined by a court of competent jurisdiction (not subject to appeal, or not appealed) that Clean Technologies, as Managing Member, has failed to perform its supervisory obligations hereunder with respect to the Administrative Services Agreement (including any predecessor administrative services agreement the Company was party to prior to the date hereof) or the MOMA in a manner consistent with the definition of “Prudent Operator Standard”.  

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Section 3.7    Liability for DeficitsNone of the Members shall be liable to the Company for any deficit in its Capital Account, nor shall such deficits be deemed assets of the Company, except to the extent otherwise provided by law with respect to third-party creditors of the Company.

Section 3.8    Company PropertyAll property owned by the Company, whether real or personal, tangible or intangible and wherever located, shall be deemed to be owned by the Company, and no Member, individually, shall have any ownership of such property.

Section 3.9    Retirement, Resignation, Expulsion, Incompetency, Bankruptcy or Dissolution of a MemberThe retirement, resignation, expulsion, Bankruptcy or dissolution of a Member shall not, in and of itself, dissolve the Company.  The successors in interest to the bankrupt Member shall, for the purpose of settling the estate, have all of the rights of such Member, including the same rights and subject to the same limitations that such Member would have had under the provisions of this Agreement to Transfer its Membership Interest.  A successor in interest to a Member shall not become a substituted Member except as provided in this Agreement.

Section 3.10    Withdrawal of CapitalNo Member shall have the right to withdraw capital from the Company or to receive or demand distributions (except distributions described in Article VI) or return of its Capital Contributions until the Company is dissolved in accordance with this Agreement and applicable provisions of the Act; provided, however, that in the event that a Capital Contribution has been made by a Class B Member, such Class B Member shall be entitled to a return of its Capital Contribution if such Capital Contribution has not been drawn upon in full by the Project Company in accordance with Sections 4.3 and 4.4 hereof within six months following the date of such Capital Contribution, unless otherwise agreed to in writing by such Class B Member.  No Member shall be entitled to demand or receive any interest on its Capital Contributions. Notwithstanding the foregoing and for the avoidance of doubt, this Section 3.10 shall not apply to any Repurchase Distributions, the Purchase Option or the Sale Option.

Section 3.11    Representations and Warranties
(a)    Each Member hereby represents and warrants to the Company and each other Member that the following statements are true and correct as of the date it becomes a Member (both immediately before and after it becomes a Member):
(i)    That the Member is duly incorporated, organized or formed (as applicable), validly existing, and (if applicable) in good standing under the law of the jurisdiction of its incorporation, organization of formation; if required by applicable law, that Member is duly qualified and in good standing in the jurisdiction of its principal place of business, if different from its jurisdiction of incorporation, organization or formation; and that the Member has full power and authority to execute and deliver this 

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Agreement and to perform its obligations hereunder, and all necessary actions by the board of directors, shareholders, managers, members, partners, trustees, beneficiaries, or other applicable Persons necessary for the due authorization, execution, delivery, and performance of this Agreement by that Member have been duly taken.
(ii)    That the Member has duly executed and delivered this Agreement and the other documents contemplated herein, and they constitute the legal, valid and binding obligation of that the Member enforceable against it in accordance with their terms (except as may be limited by Bankruptcy, insolvency or similar Applicable Laws of general application and by the effect of general principles of equity, regardless of whether considered at law or in equity).
(iii)    That the Member’s authorization, execution, delivery, and performance of this Agreement does not and will not (A) conflict with, or result in a breach, default or violation of, (I) the organizational documents of such Member, (II) any contract or agreement to which the Member is a party or is otherwise subject, or (III) any law, rule, regulation, order, judgment, decree, writ, injunction or arbitral award to which the Member is subject; or (B) require any consent, approval or authorization from, filing or registration with, or notice to, any Governmental Authority or other Person, except (w) for such consents, approvals, authorizations, registrations or notices that have already been received, delivered or filed, (x) for notices required to be delivered that (1) are regulatory or reporting in nature, (2) are not required to be delivered or filed until after the Initial Funding Date and (3) would not reasonably be expected to have a material adverse effect on the ability of such Member to perform its obligations under this Agreement, (y) that Credit Suisse AG, Cayman Islands Branch, of which Mehetia is a wholly owned indirect subsidiary as of the Initial Funding Date, may be required to file a report pursuant to 12 CFR 225.175(c)(2) with the Board of Governors of the Federal Reserve System, and (z) for such notices as any Member or its affiliates may be required to file with FERC pursuant to Section 205 of the Federal Power Act and notice filings required after acquiring an interest in the Company.
(iv)    That the Member is a “United States person,” as defined in Section 7701(a)(30) of the Code.
(b)    Each Member represents and warrants to the Company and each other Member that (i) the Member is an “Accredited Investor” as such term is defined in Regulation D under the Securities Act of 1933, (ii) the Member has had a reasonable opportunity to ask questions of and receive answers from the Company concerning, the Membership Interests and the Company and all such questions have been answered to the full satisfaction of that Member, (iii) the Member understands that the Membership Interests have not been registered under the Securities Act in reliance on an exemption therefrom, and that the Company is under no obligation to register the Membership Interests, (iv) the Member will not transfer the Membership Interests in violation of the Securities Act or any other applicable securities laws, 

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and (v) the Member is purchasing the Membership Interests for its own account and not for the account of any other Person and not with a view to distribution or resale to others.
(c)    Each Member represents and warrants to the Company and each other Member that the Member is not a Disqualified Person.
(d)    Each Member represents and warrants to the Company and each other Member that the Member is not a tax-exempt entity within the meaning of Section 168(h) of the Code.
(e)    Each Member represents and warrants to the Company and each other Member that it has not taken any action that would cause the assets of the Company or the Project Company to become subject to the alternative depreciation system within the meaning of Section 168(g) of the Code.

Section 3.12    Covenants
(a)    Each Member covenants to the Company and each other Member that it will be a “United States person,” as defined in Section 7701(a)(30) of the Code.
(b)    The Managing Member covenants to the Company and each other Member that (i) all electricity produced by the Systems will be through the use of qualified fuel cell property and (ii) no part of the assets of the Company or the Project Company is or will be used predominantly outside of the United States. 
(c)    The Managing Member covenants to cause the Company to cause the Project Company to elect a Grant (to the extent such election is available) with respect to the Existing Systems.  If the Grant is not available with respect to certain Existing Systems as determined in Section 7.5(b)(i), the Managing Member covenants to cause the Company to cause the Project Company to elect or claim under an Alternative Tax Program as described in Section 7.5(b)(i).
(d)    The Managing Member covenants to use commercially reasonable efforts, in Consultation with Class B Member, to structure the contracts and business affairs of the Project Company in a way that is intended to maximize the number of Existing Systems that qualify for the Grant or, if any Alternative Tax Program is elected pursuant to Section 7.5(b)(i), any Alternative Tax Program.
(e)    Each Member covenants to the Company and each other Member that it will not take any action that would cause the assets of the Company or the Project Company to become subject to the alternative depreciation system within the meaning of Section 168(g) of the Code.

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(f)    Each Member covenants to the Company and each other Member that the Member will not become a Disqualified Person.  Each Member further covenants that it will take no action or change its legal status in a manner that would give rise to a Class A Recapture Event or a Class B Recapture Event, as applicable.
(g)    The Managing Member shall be required to perform its duties and obligations hereunder in good faith and in a manner reasonably believed to be in the best interest of the Company.
(h)    The Managing Member covenants that it will not cause the Company or Project Company to claim an ITC with respect to Existing Systems for which an application for a Grant has been submitted or for which a Grant has been received.
(i)    The Managing Member will elect an Alternative Tax Program with respect to any System only in accordance with Section 7.5(b)(i).
(j)    The Managing Member covenants that, if there is any Project Company Distributable Cash, it will cause the Company, as managing member of the Project Company, to, not less than on a quarterly basis, cause the Project Company to distribute such Project Company Distributable Cash to the Company. 
(k)    The Managing Member covenants that it shall cause the Company and cause the Company to cause the Project Company to comply with the terms and conditions of the REPS Act and the Tariffs.
(l)    The Managing Member covenants that all of the Existing Systems will be Placed In Service prior to January 1, 2017 and that each System will be owned by the Project Company prior to each such System being Placed In Service.
(m)    The Class B Member covenants that it will not claim an ITC with respect to Existing Systems for which an application for a Grant has been submitted or for which a Grant has been received.
(n)    The Managing Member covenants that it shall cause the Project Company to enter into the Repurchase Agreement in a form approved by the Class B Member.
(o)    Upon the date in which the aggregate amount of all Repurchase Distributions and other Cash Distributions made by the Company to the Class B Member in accordance with the terms of this Agreement (including, for the avoidance of doubt, (i) the payment and distribution of the Supplemental Buyout Capital Contribution pursuant to Section 4.5, if applicable, and (ii) all disputed amounts being finally determined under Section 11.11(c)) reduces the Current Buyout Amount to zero, the Managing Member shall cause the Company to redeem 100% of the Class B Member’s Membership Interests at no additional cost pursuant to the execution and delivery of a redemption agreement in substantially the form attached hereto as 

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Exhibit F. For the avoidance of doubt, if the Supplemental Buyout Capital Contribution is required, and such amount is disputed under Section 11.11(c), the redemption of the Class B Member’s Membership Interests shall not occur until such amount is finally determined and paid in accordance with Section 11.11(c). Furthermore, notwithstanding anything in this Agreement to the contrary, if the amount of the Supplemental Buyout Capital Contribution is disputed under Section 11.11(c), and is subsequently paid by the Class A Member (and distributed 100% to the Class B Member) after March 31, 2020 but within thirty (30) days following the determination of the amount required pursuant to Section 11.11(c), then the Supplemental Buyout Capital Contribution shall be deemed, for all purposes hereunder (including Sections 4.5 and 6.12), to have been paid on March 31, 2020, shall be applied to the Current Buyout Amount and shall, upon payment by the Class A Member and distribution to the Class B Member, cause the full redemption of the Class B Member’s Membership Interest. 

Section 3.13    Deferred ObligationsThe obligations of Mehetia and Clean Technologies to pay their respective Funding Payments or CT Funding Amounts, respectively, are unconditional, except as provided herein and in the ECCA, and subject to full recourse.

Section 3.14    Events of DefaultAn event of default shall occur upon the occurrence of any of the following by a Member: (i) failure of a Class B Member to make any Funding Payment or failure of a Class A Member to make any payment of a CT Funding Amount, in each case, when due or perform any other obligation with respect to such payment and the same is not cured within five (5) Business Days after notice that the same is due, (ii) making an untrue material representation or warranty, or (iii) a material breach by such Member of any provision in this Agreement.  Without in any way limiting any other remedies available to the Class B Member or Clean Technologies hereunder, upon an event of default by the Class B Member or Clean Technologies, the other Member shall have the right to suspend performance of its obligations that are prevented by such default. 

Section 3.15    Matters Pertaining to the Grant
(a)    As soon as practicable but no later than 105 days after the Initial Funding Date and each Subsequent Funding Date, as applicable, the Managing Member shall:  (x) provide the Accounting Firm the information it requires to issue the Accountant’s Certificate with respect to the Existing Systems that have been Placed in Service during the quarterly period following such Funding Date or other period, as applicable, and will be included in a Grant Application and (y) use commercially reasonable efforts to cause the Company to cause the Project Company to complete and file a Grant Application with respect to such Existing Systems.  To the extent permitted by applicable law (and provided that it would not likely cause the Grant Application to be rejected or materially delayed), the Grant Application will request that the Grant be wired or otherwise sent directly to a control account.  The Members will cooperate to seek confirmation from the appropriate Governmental Authorities with respect to the ability to have such control account established in the name of the Company.  To provide for the possibility that the Grant will have to be funded to an account of the Project Company, promptly following the Execution 

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Date, the Managing Member shall use reasonable best efforts to cause the Company to cause the Project Company, at its cost, to cause the Project Company’s lenders to allow the Project Company to establish a control account in the name of the Project Company which would not be subject to any lien or security interest or restriction on distribution other than the hereinafter described Control Agreement.  Whether or not the control account is at the Project Company or Company level, the control account shall be subject to the Control Agreement in form and substance reasonably acceptable to the Class B Member, the control account agent and either the Project Company or the Company, as applicable, which shall provide that upon receipt of any funds in the control account, the control account agent will immediately distribute such funds to the Class B Member and the Class A Member, pro rata as provided in Section 6.1(a).  Any distribution made from the control account to the Members will be deemed to be a Company distribution for all purposes of this Agreement, including, without limitation, for purposes of maintaining Capital Accounts.
(b)    At least 10 days prior to filing a Grant Application, the Managing Member shall deliver to Class B Member a copy of the proposed Grant Application, which shall include the proposed filing date for the Grant Application.  Class B Member shall have the right to raise reasonable objections to the proposed Grant Application within five days after Class B Member’s receipt thereof.  If Class B Member raises any objection to the proposed Grant Application within such five-day period, the Managing Member and Class B Member shall use commercially reasonable efforts to resolve such objections.  In the event the Managing Member and Class B Member are unable to resolve any such objections within a reasonable period of time, either Member may invoke the dispute resolution provisions of Section 11.11(a).
(c)    To the Knowledge of the Managing Member, after due inquiry, all factual information and factual statements contained in the Grant Applications including amounts relating to the purchase price of the Existing Systems shall be true, correct and complete in all material respects.  For the avoidance of doubt, this Section 3.15(c) shall not be construed as a representation or warranty to any Member as to any legal matters or legal conclusions in the Grant Applications, although the Parties acknowledge that Clean Technologies has made representations and warranties in this Agreement and the ECCA, including representations and warranties relating to the eligibility of the Existing Systems for the Grant.
(d)    The Managing Member shall cause the Company to cause the Project Company to respond to all written requests from any Governmental Authority for additional or supplemental information relating to the Grant Application and shall make all required filings and responses in Consultation with Class B Member.
(e)    Upon receipt by the Project Company of Grant proceeds, the Managing Member shall, within two Business Days following the date on which Grant proceeds are received by the Project Company, provide Class B Member or cause Class B Member to be provided with a notice that sets forth the amount of the Grant received by the Project Company and a calculation of the appropriate amounts to be distributed to each of the Members.

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(f)    In the event that an Alternative Tax Program is elected pursuant to Section 7.5(b)(i), the above provisions shall be deemed to apply to any Alternative Tax Program (with modifications as necessary to account for the differences in such programs as compared to the Grant), and the Managing Member shall be required to comply with all such provisions of this Section 3.15 as if they applied to any Alternative Tax Program, as applicable.

Section 3.16    SeparatenessThe Members agree that the Company and the Project Company are separate and distinct entities and that the Company shall conduct, and cause the Project Company to conduct, their respective affairs in a manner intended to maintain such status, including without limitation adhering the following:
(a)    The Company has not formed, acquired or held and shall not form, acquire or hold any subsidiary, except for the Project Company;
(b)    The Company does not have, shall not have and at no time had any assets other than its membership interests in the Project Company and personal property necessary or incidental to its ownership of such membership interests; 
(c)    The Company has not engaged in, sought, consented or permitted to and shall not engage in, seek, consent to or permit any dissolution, winding up, liquidation, consolidation or merger or any sale or other transfer of all or substantially all of its assets or any sale of assets outside the ordinary course of its business, except in each case as permitted by (i) this Company LLC Agreement and, (ii) any transfer of the Company’s membership interests in connection with the transactions described in the ECCA;
(d)    The Company shall not incur any additional debt or contingent liabilities except as permitted by this Company LLC Agreement;
(e)    The Company shall not commingle assets with those of any other entity and shall hold its assets in its own name;
(f)    The Company shall conduct its own business in its own name;
(g)    The Company shall maintain bank accounts (if any), books, records and financial statements separate from any other person or entity;
(h)    The Company shall observe all formalities of the Company LLC Agreement;
(i)    The Company shall pay its own liabilities out of its own funds;
(j)    The Company shall maintain adequate capital in light of its contemplated business operations;

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(k)    The Company shall use separate stationery, invoices and checks; 
(l)    The Company shall pay the salaries of its own employees, if any;
(m)    The Company shall not guarantee or become obligated for the debts of any other entity or hold out its credit as being available to satisfy the obligations of others, in each case, other than the Project Company;
(n)    The Company shall not make any loans to any other person or entity other than in accordance with this Company LLC Agreement;
(o)    The Company shall allocate fairly and reasonably any overhead for shared office space;
(p)    The Company shall not pledge its assets for the benefit of any other entity, other than the Project Company or the Project; and
(q)    The Company shall hold itself out as a separate entity, with the exception that the Company shall not be considered a separate entity from the Project Company for federal, state, and local income tax purposes, and shall use commercially reasonable efforts to correct any known misunderstanding regarding its separate identity.

ARTICLE IV     
CAPITAL CONTRIBUTIONS; CAPITAL ACCOUNTS

Section 4.1    Capital Contributions
(a)    Subject to the terms of the ECCA, the Members will make Capital Contributions to the Company at the times and in the amounts required under the ECCA and if required under Section 4.5 hereof, at the time and in the amounts specified in Section 4.5.  The Members acknowledge that on or prior to the effective date of the 2012 Operating Agreement, the Class A Member made a Capital Contribution to the Company of all of its right, title and interest in and to the Project Company and the sum of $16,619,399.60 (in cash), and has agreed to make further Capital Contributions at the times and in the amounts required under the ECCA.  Except as provided in this Article IV of this Agreement, no Member will be required to make any Capital Contributions to the Company after the Subsequent Funding Termination Date.
(b)    The Company shall be entitled to enforce the obligations of each Member with respect to each Funding, and the Company shall have all remedies available at law or in equity in the event any such obligation is not met.
(i)    Each Member hereby (A) agrees that the remedy at law for damages resulting from any failure by it to make a Funding when required under the terms of the ECCA is inadequate because the funding of the Existing Systems requires 

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the timely availability of required capital contributions and (B) consents to the institution of an action for specific performance of its obligations in the event of such a default.  
(ii)    The Managing Member (or any other Member in the event that the Managing Member is the defaulting Member) may cause the Company to commence legal proceedings against the defaulting Member to collect the due and unpaid capital contribution plus interest (calculated from the date of the missed Funding) at a rate equal to the lesser of (x) 18% per annum, compounded daily and (y) the maximum rate allowable by law, as well as the expenses of collection including, without limitation, attorneys’ fees.  Amounts collected in excess of the defaulting Member’s due and unpaid capital contribution or loan advance shall be deemed for purposes of this Agreement to be income of, or a reimbursement to, the Company, as appropriate, and shall not be treated as a capital contribution by the defaulting Member.
(iii)    Such defaulting Member’s share of the future distributions and profits (but not losses) of the Company shall be reduced by up to 100% of that to which such defaulting Member would have been entitled based upon its Percentage Interest as measured immediately prior to the date of the missed Funding, based on a proportionate calculation of the shortfall of funds resulting from such defaulting Member’s failure to comply with its Funding obligation.  The share of future distributions and profits that are not allocated to the defaulting Member shall be apportioned among the other non-defaulting Members in proportion to their respective Percentage Interests until such time as the defaulting Member cures such default by paying such unpaid capital contribution plus interest (calculated from the date of the missed Funding) at a rate equal to the lesser of (x) 18% per annum, compounded daily and (y) the maximum rate allowable by law, as well as the expenses of collection including, without limitation, attorneys’ fees.
(c)    The Members acknowledge that an Affiliate of the Class A Member, Bloom, is entering into the Repurchase Agreement on the Effective Date and, pursuant to the Repurchase Agreement, Bloom is making a deposit in the aggregate amount of $72,321,380.05 (the “Deposit”) against the aggregate Purchase Price (as defined in the Repurchase Agreement) which will be used to repay the outstanding balance (together with accrued but unpaid interest, prepayment charges, make-whole amounts and related costs) owed to the Note Holders under the Credit Documents (such amount, the “Project Company Debt”). The Deposit shall be paid and the Managing Member shall cause the Company to cause the Project Company to immediately use the Deposit to repay the Project Company Debt and cause the release of all collateral securing such Project Company Debt and for the Project Company’s obligations to the Note Holders and all other parties to the Credit Documents to be satisfied in full.  The Members further acknowledge that had Bloom not made such Deposit under the Repurchase Agreement, the Class A Member would likely have needed to make an additional capital contribution hereunder in order to provide the Project Company funds to repay the Project Company Debt.  Therefore, the Members agree that, should Bloom fail to repurchase all of the Existing Systems pursuant to the terms and conditions of the Repurchase Agreement on or before March 31, 2020 

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(other than as a result of a breach by Bloom of the Repurchase Agreement), then a pro rata amount of the Deposit (based on the Existing Systems not repurchased under the Repurchase Agreement as of March 31, 2020) shall be credited to the Class A Member as an additional Capital Contribution hereunder; provided, however, the foregoing shall not relieve the Class A Member or Bloom from any obligation to make a Supplemental Buyout Capital Contribution pursuant to Section 4.5 hereof nor result in any offset or reduction of such obligation to make a Supplemental Buyout Capital Contribution pursuant to Section 4.5 hereof.

Section 4.2    Capital Accounts
(a)    A Capital Account will be established and maintained for each Member in the manner required by the Treasury Regulations under Section 704(b) of the Code.  If there is more than one Member in a class, then each of the Members in that class will have a separate Capital Account.
(b)    A Member’s Capital Account will be increased by (i) the amount of money the Member contributes to the Company, (ii) the Gross Asset Value of any property the Member contributes to the Company (net of liabilities secured by the property that the Company is considered to assume or take subject to under Section 752 of the Code; the Gross Asset Value of any property contributed by a Member will be set forth in Schedule 4.2(b)), (iii) the income and gain (or items thereof) that the Member is allocated by the Company, including any income and gain exempted from tax (e.g., income allocated in respect of the Grant) and gain described in Section 4.2(c) and (iv) an amount equal to an allocation of upward basis adjustment to such Member in the event of a recapture of the Grant or ITC as described in Treasury Regulation Section 1.704-1(b)(2)(iv)(j).  A Member’s Capital Account will be decreased by (v) the amount of money distributed to the Member by the Company (including any proceeds from the Grant distributed to such Member), (vi) the Gross Asset Value of any property distributed to the Member by the Company (net of liabilities secured by the property that the Member is considered to assume or take subject to under Section 752 of the Code), (vii) any expenditures of the Company described in Section 705(a)(2)(B) of the Code (i.e., expenditures that cannot be capitalized or deducted in computing taxable income) that are allocated to the Member; and (viii) losses and deductions (or items thereof) that are allocated by the Company to the Member, including losses described in Section 4.2(c), but the Capital Account will not be reduced again under this clause (viii) for expenditures that already reduced it under clause (vii) and (ix) an amount equal to an allocation of downward basis adjustment to such Member to take into account the Grant or ITC as described in Treasury Regulation Section 1.704-1(b)(2)(iv)(j).
(c)    The Gross Asset Values of all the Company assets will be adjusted to equal their respective Gross Fair Market Values upon the occurrence of any of the following events: (i) if any new or existing Member contributes more than a de minimis amount of money or property, provided that, for the avoidance of doubt, no adjustment will be made to Gross Asset Values in connection with any Capital Contributions described in Section 4.2(b) or (c), (ii) if more than a de minimis amount of money or other property is distributed by the Company to a 

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Member to redeem its Membership Interest, or (iii) if the Company is liquidated within the meaning of Treasury Regulations Section 1.704-1(b)(2)(ii)(g).  Following the occurrence of an event in clauses (i) and (ii) the Managing Member will make an adjustment to Gross Asset Value only if it reasonably determines, after Consultation with the other Members, that the adjustments are necessary or appropriate to reflect the relative economic interests of the Members in the Company.  In addition, the Gross Asset Value of any Company asset that is distributed to a Member will be adjusted to equal the Gross Fair Market Value of the asset on the Distribution Date.  In the event the Gross Asset Value of any item of the Company’s property is adjusted as described in this Section 4.2(c), then the amount of the adjustment will be treated as an item of gain (if the adjustment increases the Gross Asset Value) or an item of loss (if the adjustment decreases the Gross Asset Value) from the disposition of such property.
(d)    As of the Original Date, the initial Capital Account balance and Percentage Interest of each Member is shown in Schedule 4.2(d).  Contributions made by the Members on Subsequent Fundings will be considered contributions of such amounts to the Company.  The Managing Member will update Schedule 4.2(d) after each Subsequent Funding and from time to time as necessary to reflect accurately the information therein; provided, however, that, notwithstanding anything in this Company LLC Agreement or the ECCA to the contrary, failure to update Schedule 4.2(d) in accordance with this Section 4.2(d) shall not impact the actual amounts considered Capital Contributions hereunder, all of which shall be deemed made on the date actually contributed.  Any such updating will be consistent with how this Article IV requires that the Capital Accounts be maintained.  Any reference in this Agreement to Schedule 4.2(d) will be treated as a reference to Schedule 4.2(d) as amended and in effect from time to time.
(e)    If all or a portion of a Membership Interest in the Company is Transferred in accordance with the terms of this Agreement, then the transferee will succeed to the Capital Account of the transferor to the extent it relates to the Membership Interest so Transferred.
(f)    The provisions of this Agreement relating to maintenance of Capital Accounts are intended to comply with Treasury Regulation Sections 1.704-1(b) and 1.704-2, and will be interpreted and applied in a manner consistent with such Treasury Regulations or any successor provisions.

Section 4.3    Equity Contributions to Project Company
(a)    Subject to the terms and conditions of this Agreement and the satisfaction of the conditions precedent in Section 4.4 hereof, the Company shall contribute funds to the Project Company (each such contribution, an “Equity Contribution”) for further application by the Project Company towards payment of the purchase price for the Existing Systems and other related costs.  Within five (5) Business Days of receipt of a notice in the form of Exhibit E (the “Equity Contribution Notice”) and the satisfaction or waiver of the conditions precedent in Section 4.4 (such date, the “Equity Contribution Date”), the Company shall transfer the 

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appropriate amount of funds from the Company’s account to a Project Company account as specified by the Project Company in such notice.  
(b)    Each of the Initial Funding Payment of Class B Member and the CT Funding Amount of Class A Member made on the Initial Funding Date has been or shall be applied for further contribution to the Project Company to pay the 25% Progress Payments for Existing Systems to be deployed in the two quarters immediately following the Initial Funding Date.
(c)    All CT Funding Amounts made by Class A Member and all Subsequent Funding Payments made by Class B Member (subject to the satisfaction or waiver by the Class B Member of the conditions precedent in Section 4.4) will be contributed to the Project Company and used for the purchase and installation of the Existing Systems and related costs.  All CT Funding Amounts and all Subsequent Funding Payments will be deposited into an account established in the Project Company’s name with a financial institution reasonably acceptable to Class B Member (the “Capital Contributions Account”) and will be maintained in the Capital Contributions Account until such time as such amounts are used by the Project Company to pay for the costs or expenses for which such funds were requested, to distribute such funds to the Members as expressly permitted hereunder or for such other uses as are agreed to by the Members.  Upon establishment of the Capital Contributions Account any portion of the Capital Contributions made by the Members on the Initial Funding Date that was projected to pay for the purchase price of Existing Systems that has not yet been used for such purpose shall be deposited into the Capital Contributions Account and maintained there until used in accordance with the preceding sentence.

Section 4.4    Conditions Precedent to Equity Contributions by CompanyThe obligation of the Company to make an Equity Contribution to the Project Company (except in the case of the portion of any Equity Contribution used to pay any 25% Progress Payments for Existing Systems to be deployed in the subsequent quarter which shall be subject to the conditions precedent hereinafter expressly provided) will be subject to the fulfillment by the Project Company, on or before the applicable Equity Contribution Date, of each of the following conditions (and upon satisfaction of such conditions, as applicable, the Managing Member shall so notify in writing the Administrator and the Members):
(a)    the Project Company shall have delivered to the Company and each of the Company’s members an Equity Contribution Notice, in the form attached to this Agreement as Exhibit E;
(b)    Managing Member’s Capital Contribution to the Company of $16,619,399.60 shall have been further contributed by the Company to the Project Company and used by Project Company to incur Project costs in an amount equal to at least 5% of the cost of all Existing Systems;

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(c)    the Project Company shall deliver to the Company and each of the Company’s members all necessary Governmental Approvals from the applicable Governmental Authority to the extent not previously delivered;
(d)    each of the representations and warranties of Clean Technologies in Section 3.2 of the ECCA relating to the Existing Systems funded by such Equity Contribution is (i) true and correct in all material respects as of such Equity Contribution Date except to the extent that any such representation or warranty shall have been expressly made only as of an earlier date in which case such representation and warranty was true and correct in all material respects as of such earlier date and (ii) if and to the extent such representations and warranties are qualified by the words “material,” “Material Adverse Effect” or similar qualification, true and correct, as qualified, as of the such Equity Contribution Date (or such earlier date, as applicable); 
(e)    No material ongoing breach exists by Bloom, Clean Technologies, the Company, the Project Company, the Managing Member, DPL or PJM under the ECCA, the Project Company LLC Agreement, the MESPA, the MOMA, the Administrative Services Agreement, the Credit Documents, the DPL Agreements, the PJM Agreements, this Agreement or any other Transaction Document or Material Contract, as applicable; 
(f)    the Project Company is solvent and no event of Bankruptcy has occurred with respect to the Project Company;
(g)    confirmation that (i) all conditions precedent in Section 2.5 and Section 2.7 of the ECCA (other than Section 2.5(aa)) remain satisfied; provided that Clean Technologies and Company shall not be required to update any due diligence reports, legal opinions, appraisals or other third party documents previously delivered to Class B Member unless any of such previously delivered documents has been withdrawn or specific circumstances have materially changed in connection with the Existing Systems to be funded from this Equity Contribution by Company to Project Company such that the previously delivered document is inapplicable or is materially incorrect with respect to such Existing Systems; and (ii) there have been no material adverse changes from the circumstances addressed in the due diligence reports delivered under Sections 2.5(a) and (b) of the ECCA;
(h)    the information on each invoice from Bloom to Project Company for payments under the MESPA regarding the Existing Systems to be paid for with proceeds of the applicable Equity Contribution will include the following: (i) the location of the installation of each such System, (ii) the serial number for each such System, (iii) the price for each such System as determined pursuant to the MESPA, (iv) all amounts previously paid as a deposit on each such System and (v) all amounts remaining due and payable on each such System; 
(i)    the Initial Funding Payment, any prior Subsequent Funding Payments and any prior CT Funding Amounts, as applicable, shall have been contributed in full to the Project Company in accordance with Section 4.3 and Section 4.4 hereof, with respect to any Subsequent 

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Funding Payment and any CT Funding Amount, the Capital Contributions Account shall have been established and maintained in accordance with the provisions of Section 4.3(c), the Project Company does not retain at such time in the Capital Contributions Account more than an amount equal to (i) $20,000,000 minus (ii) the amount of cash held by the Company at such time, and the Project Company shall have used such payments to make payments under the MESPA;
(j)    there are no material defaults under the MOMA relating to Systems previously installed, purchased and paid for by Project Company;
(k)    in the case of the portion of any Subsequent Funding Payment used to pay any 75% Progress Payments, Commencement of Operations (as defined under the MESPA) has occurred for the Systems for which there is a request for a Capital Contribution of the amounts of the 75% Progress Payment for such System;
(l)    in the case of the portion of any Subsequent Funding Payment or any CT Funding Amount used to pay any 75% Progress Payments, the Members have received confirmation that the Note Proceeds have either been disbursed from the Construction Escrow Account or will be available for disbursement from the Construction Escrow Account contemporaneous with Project Company’s drawdown of such Progress Contribution from the Company (as may be evidenced by, among other things, delivery to the Members of a copy of the Account Withdrawal Instruction applicable to such proceeds which has been countersigned by the Collateral Agent and delivered to the Depositary) or the Required Holders have in writing confirmed to the Members that all conditions precedent to such disbursement from the Construction Escrow Account have been satisfied or waived and the Required Holders are prepared to permit such disbursement contemporaneous with Project Company’s drawdown of such Progress Contribution from the Company; and 
(m)    in the case of the portion of any Subsequent Funding Payment or any CT Funding Amount used to pay any 75% Progress Payments, the Members have received written certification from the Independent Engineer (as defined in the MESPA) addressed to Project Company certifying, without any qualification, that such System’s commissioning has been successfully completed, that such System is available for full commercial operation, and that Bloom has installed all BOF Work (as defined in the MESPA) necessary for the operation of that System.
Notwithstanding the foregoing, with respect to the portion of any Equity Contribution used to pay any of the 25% Progress Payments for Systems to be deployed in the subsequent quarter, the fulfillment by the Project Company, on or before the applicable Equity Contribution Date, of each of the conditions set forth in Sections 4.4(a), (e), (f), (h)(i) and (h)(iii) must be satisfied.
To the extent that an Equity Contribution Notice has been delivered to the Company for which all of the applicable conditions precedent set forth above have been satisfied, the Company may make a capital contribution to Project Company related to all of the Systems for which all of the 

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applicable conditions precedent have been satisfied.  With respect to those Systems for which all conditions precedent had not been previously satisfied, but which are later satisfied, the Company may make a subsequent capital contribution to Project Company for the amounts requested in connection with that later qualifying System.

Section 4.5    Supplemental Buyout Capital ContributionIn the event that prior to March 31, 2020, the Current Buyout Amount has not been reduced to zero, then on or before March 31, 2020, the Class A Member shall make a capital contribution to the Company equal to the Current Buyout Amount at the time of such capital contribution (such capital contribution, the “Supplemental Buyout Capital Contribution”), whereupon the Company shall make (no later than March 31, 2020) a special distribution of the amount of the Supplemental Buyout Capital Contribution to the Class B Member in accordance with Section 6.12 below, which distribution shall be deemed to be a Repurchase Distribution for purposes of Section 6.12 and this Agreement.Member Loans
(a)    The Class B Members are entitled to effect cures of defaults under the Credit Documents to the extent set forth in the Interparty Agreement.  Amounts expended in effecting such cures shall be deemed Member Loans, with each Class B Member contributing ratably in proportion to its holding of all then outstanding Class B Membership Interests; provided that, if any Class B Member does not wish to advance or loan its proportionate share of any such advance or loan, an amount equal to such proportionate share may instead be advanced by the remaining Class B Members (each such remaining Class B Member contributing ratably (or as otherwise agreed amongst such remaining Class B Members) in proportion to its holding of all then outstanding Class B Membership Interests (excluding in such determination of outstanding Class B Membership Interests all then outstanding Class B Membership Interests of any Class B Member that does not wish to advance or loan such proportionate share).
(b)    Any loan or advance made by any Class B Member pursuant to this Section 4.6 shall bear interest, unless otherwise agreed by such Class B Member in its sole discretion, at the Prime Rate. 
(c)    Notwithstanding anything to the contrary in this Agreement, the Company shall borrow and accept, and the Managing Member shall cause the Company to borrow and accept, such loans or advances from the lending Members.  The Company shall immediately advance, and the Managing Member shall cause the Company to immediately advance, such loans or advances from the lending Members to the Project Company.  The incurrence of indebtedness by the Company pursuant to any loan or advance made by any Member pursuant to this Section 4.6 shall not require the consent of the Managing Member or the Class A Member. The Company shall apply all Company Distributable Cash to the payment of the principal of all outstanding advances or loans (together with accrued interest thereon) made under this Section 4.6 and, unless and until the outstanding principal amount of all such advances and loans is repaid in full together with all interest thereon and all other amounts due in respect thereof, there 

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shall be no distributions to the Class A Members under this Agreement pursuant to Article VI or otherwise.
(d)    An advance or loan by any Member described in this Section 4.6 constitutes a loan from such Member to the Company and is not a Capital Contribution.

ARTICLE V     
ALLOCATIONS

Section 5.1    Allocations
(a)    Prior to the Effective Date, after giving effect to the allocations in Section 5.2 and except as provided in Section 10.2(c) and Section 10.2(d) for purposes of maintaining Capital Accounts, all items of Company income, loss, gain, deduction and credit for any Fiscal Year will be allocated among the Members as follows:
(i)    Except for items relating to any Grant, for the period beginning on April 13, 2012 and running through the Flip Date, 99% in the aggregate to the Class B Members, allocated among them in proportion to their Pro Rata Shares, and 1% in the aggregate to the Class A Members, allocated among them in proportion to their Pro Rata Shares; and (ii) for the period beginning after the Flip Date, 5% in the aggregate to the Class B Members, allocated among them in proportion to their Pro Rata Shares, and 95% in the aggregate to the Class A Members, allocated among them in proportion to their Pro Rata Shares.
(ii)    With respect to any items relating to any Grant, 99% in the aggregate to the Class B Members, allocated among them in proportion to their Pro Rata Shares, and 1% in the aggregate to the Class A Members, allocated among them in proportion to their Pro Rata Shares.
(b)    From and after the Effective Date, after giving effect to the allocations in Section 5.2 and except as provided in Section 10.2(c) and Section 10.2(d) for purposes of maintaining Capital Accounts, all items of Company income, loss, gain, deduction and credit for any Fiscal Year will be allocated among the Members (i) if all of the Existing Systems have been repurchased from the Project Company pursuant to the terms and conditions of the Repurchase Agreement by March 15, 2020, 0% in the aggregate to the Class B Members, allocated among them in proportion to their Pro Rata Shares, and 100% in the aggregate to the Class A Members, allocated among them in proportion to their Pro Rata Shares, and (ii) if not all of the Existing Systems have been repurchased from the Project Company pursuant to the terms and conditions of the Repurchase Agreement by March 15, 2020, 5% in the aggregate to the Class B Members, allocated among them in proportion to their Pro Rata Shares, and 95% in the aggregate to the Class A Members, allocated among them in proportion to their Pro Rata Shares. 

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(c)    No losses or deductions may be allocated to a Member pursuant to this Section 5.1 to the extent the allocation would lead to a deficit in such Member’s Adjusted Capital Account.  Losses or deductions that a Member cannot be allocated by reason of this Section 5.1(b) will be allocated to the other Members.

Section 5.2    AdjustmentsThe following adjustments will be made in the allocations in Section 5.1 to comply with Treasury Regulation Section 1.704-1(b):
(a)    In any Fiscal Year in which there is a net decrease in Company Minimum Gain, income and gain in the amount of the net decrease will be allocated to Members in the ratio required by Treasury Regulation Section 1.704-2.  This provision is intended to comply with the minimum gain chargeback requirement in Treasury Regulation Section 1.704-2(f) and will be interpreted consistently therewith.
(b)    In any Fiscal Year in which there is a net decrease in Minimum Gain Attributable to Member Nonrecourse Debt, then income and gain in the amount of the net decrease will be allocated to each Member who was considered to have had a share of such minimum gain at the beginning of the Fiscal Year in the ratio required by Treasury Regulation Sections 1.704-2(i)(4) and 1.704-2(j)(2)(ii).  This provision is intended to comply with the partner nonrecourse debt minimum gain chargeback requirement in Treasury Regulation Section 1.704-2(i)(4) and will be interpreted consistently therewith.
(c)    In the event any Member unexpectedly receives any adjustments, allocations or distributions described in Treasury Regulation Sections 1.704-1(b)(2)(ii)(d)(4), (5) or (6), gross income will be specially allocated to each such Member in an amount and manner sufficient to eliminate, to the extent required by the Treasury Regulations, any deficit in the Member’s Adjusted Capital Account as quickly as possible.  However, an allocation will be made under this Section 5.2(c) only if and to the extent that the Member would have a deficit in its Adjusted Capital Account after all other allocations provided for in Sections 5.1 and 5.2 have been tentatively made as if this Section 5.2(c) were not in this Agreement.
(d)    In the event that any Member has a deficit in its Adjusted Capital Account at the end of any Fiscal Year after all the other allocations in Section 5.1 and 5.2 have been taken into account, then the Member will be specially allocated items of Company income and gain as quickly as possible to eliminate the deficit.
(e)    Nonrecourse Deductions for any Fiscal Year will be allocated to the Members in the same ratio as other income and loss under Section 5.1 or Sections 10.2(c) and (d), as applicable.
(f)    Any Member Nonrecourse Deductions for any Fiscal Year will be allocated to the Member who bears the economic risk of loss with respect to the Member 

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Nonrecourse Debt to which the Member Nonrecourse Deductions are attributable in accordance with Treasury Regulation Section 1.704-2(i)(1).
(g)    If the Company distributes property to a Member in liquidation of the Membership Interest of the Member and there is an adjustment in the adjusted tax basis of Company property under Section 734(b) of the Code, there will be a corresponding adjustment to the Capital Account of the Member receiving the distribution.  If the Company distributes cash to a Member in excess of its outside basis in its Membership Interest, leading to an adjustment in the inside basis of the Company property under Section 734(b) of the Code, solely for purposes of adjusting Capital Accounts of the Members, the adjustment in the inside basis will be treated as gain or loss and be allocated among the Members in the same ratio as other gain or loss for the Fiscal Year in which the adjustment occurs.  This provision is intended to comply with Treasury Regulation Sections 1.704-1(b)(2)(iv)(m)(2) and (4) and will be interpreted consistently therewith.
(h)    The allocations in this Section 5.2 are required to comply with the Treasury Regulations.  To the extent the Company can do so consistently with the Treasury Regulations, the net amount of the allocations under this Article V and Section 10.2 to each Member will be the net amount that would have been allocated to each Member if this Agreement did not have this Section 5.2.

Section 5.3    Tax Allocations
(a)    All allocations of tax items of Company income, gain, deductions and losses for each Fiscal Year will be allocated in the same proportions as the allocations of book items of Company income, gain, deductions and losses were made for such Fiscal Year pursuant to Sections 5.1 and 5.2.
(b)    Notwithstanding Section 5.3(a), if, as a result of contributions of property by a Member to the Company or an adjustment to the Gross Asset Value of Company assets pursuant to this Company LLC Agreement, there exists a variation between the adjusted basis of an item of Company property for United States federal income tax purposes and as determined under the definition of Gross Asset Value, allocations of income, gain, loss, and deduction will be allocated among the Members so as to take into account any variation between the adjusted basis of such property to the Company for United States federal income tax purposes and its initial Gross Asset Value using the traditional method with curative allocations pursuant to Treasury Regulation Section 1.704-3(c).  To the extent the “ceiling rule” in Treasury Regulation Section 1.704-3(b) prevents the noncontributing Members from receiving an amount of tax depreciation in any year equal to the Members’ share of Depreciation for the year, then the shortfall will be made up in succeeding years as quickly as possible out of any tax depreciation that would otherwise have been allocated to the contributing Member.

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(c)    Allocations pursuant to this Section 5.3 are solely for purposes of federal, state and local taxes and will not affect, or in any way be taken into account in computing, any Member’s Capital Account or share of income, gain, deductions or losses or distributions pursuant to any other provision of this Agreement.
(d)    To the extent that an adjustment to the adjusted tax basis of any Company asset is made pursuant to Section 743(b) of the Code as the result of a purchase of a Membership Interest in the Company, any adjustment to the depreciation, amortization, gain or loss resulting from such adjustment will affect the transferee only and will not affect the Capital Account of the transferor or transferee.  In such case, the transferee will be required to agree to provide to the Company (i) information about the allocation of any step-up or step-down in basis to the Company’s assets and (ii) the depreciation or amortization method for any step-up in basis to the Company’s assets.
(e)    Solely for purposes of determining a Member’s proportionate share of the “excess non-recourse liabilities” of the Company within the meaning of Treasury Regulation Section 1.752-3(a)(3), each Member’s share of such liability shall be consistent with the profit sharing percentages then in effect pursuant to Section 5.1(a).

Section 5.4    Transfer or Change in Company InterestIf the respective Membership Interests or allocation ratios described in this Article V of the existing Members in the Company change or if a Membership Interest is Transferred in compliance with this Agreement to any other Person, then, for the Fiscal Year in which the change or Transfer occurs, all income, gains, losses, deductions, credits and other tax incidents resulting from the operations of the Company shall be allocated, as between the Members for the Fiscal Year in which the change occurs or between the transferor and transferee, by taking into account their varying interests using the interim closing method permitted by Treasury Regulation Section 1.706.

Section 5.5    Timing of AllocationsItems of income, gain, loss, deduction and credit will be allocated to the Members pursuant to this Article V as of the last day of each Fiscal Year; provided that such items shall also be allocated at such times as the Gross Asset Values of the Company’s assets are adjusted pursuant to Section 4.2(c).

ARTICLE VI     
DISTRIBUTIONS

Section 6.1    DistributionsExcept as provided otherwise in Sections 6.6, 6.7, 6.9, 6.11, 6.12 or 10.2, Company Distributable Cash will be distributed to the Members on each Distribution Date in the manner described in this Section 6.1.
(a)    First, the proceeds of any Grant (or, if any Alternative Tax Program is elected pursuant to Section 7.5(b)(i), any Alternative Tax Program other than the ITC) received by the Project Company in connection with the Existing Systems included in the Portfolio (as 

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opposed to future capital expenditures) will be distributed, promptly upon receipt, in full to the Company by the Project Company and then distributed 99% to the Class B Members, distributed among them in proportion to their Pro Rata Shares, and 1% to the Class A Members, distributed among them in proportion to their Pro Rata Shares; provided, that any Grant proceeds received by the Project Company in connection with the Existing Systems included in the Portfolio (as opposed to future capital expenditures) in excess of an aggregate amount for all such Grant proceeds of $76,731,525 will be distributed, promptly upon receipt, in full to the Company and then distributed by the Company 100% to the Class A Members, distributed among them in proportion to their Pro Rata Shares; 
(b)    Second, any remaining Company Distributable Cash, other than cash from any Repurchase Distributions (which will be specially distributed pursuant to the provisions of Section 6.12 below), will be distributed (i) from April 13, 2012 to and through the Flip Date, 99% to the Class B Members, distributed pro rata in proportion to the Percentage Interest held by each Class B Member, and 1% to the Class A Members, distributed pro rata in proportion to the Percentage Interest held by each Class A Member, and (ii) after the Flip Date, 5% to the Class B Members, distributed pro rata in proportion to the Percentage Interest held by each Class B Member, and 95% to the Class A Members, distributed pro rata in proportion to the Percentage Interest held by each Class A Member; and
(c)    Notwithstanding anything to the contrary in this Article VI or in any other Transaction Document, in the event that any 25% Progress Payments or 75% Progress Payments are refunded from Bloom to Project Company under the MESPA, whether or not such refunded 25% Progress Payments or 75% Progress Payments are deposited into a separate control account with the Company as the secured party, following the receipt by the Company of such refunded 25% Progress Payments or 75% Progress Payments, such refunded 25% Progress Payments or 75% Progress Payments will be distributed 100% to the Class B Members and among them in proportion to their Pro Rata Shares.

Section 6.2    Withholding Taxes.  If the Company is required to withhold taxes with respect to any allocation or distribution to any Member pursuant to any applicable federal, state or local tax laws, the Company may, after first notifying the Member and permitting the Member, if legally permitted, to contest the applicability of such taxes, withhold such amounts and make such payments to taxing authorities as are necessary to ensure compliance with such tax laws.  Any funds withheld by reason of this Section 6.2 shall nonetheless be deemed distributed to the Member in question for all purposes under this Agreement.  If the Company fails to withhold from actual distributions any amounts it was required to withhold, the Company may, at its option, (a) require the Member to which the withholding was credited to reimburse the Company for such withholding, or (b) reduce any subsequent distributions by the amount of such withholding.  This obligation of a Member to reimburse the Company for taxes that were required to be withheld shall continue after such Member Transfers its Membership Interests in the Company.  Each Member agrees to furnish the Company with any representations and forms 

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as shall reasonably be requested by the Company to assist it in determining the extent of, and in fulfilling, any withholding obligations it may have.

Section 6.3    Limitation upon Distributions.  No distribution of Company Distributable Cash will be made if the distribution would violate any contract or agreement to which the Company is then a party or any Legal Requirement then applicable to the Company.

Section 6.4    No Return of Distributions.  Any distribution of Company Distributable Cash or property pursuant to this Agreement shall be treated as a compromise within the meaning of Section 18-502(b) of the Act and, to the full extent permitted by law, any Member receiving the payment of any such money or distribution of any such property shall not be required to return any such money or property to any Person, the Company or any creditor of the Company.  However, if any court of competent jurisdiction holds that, notwithstanding the provisions of this Agreement, any Member is obligated to return such money or property, such obligation shall be the obligation of such Member and not of the other Members.  Without limiting the generality of the foregoing, a deficit Capital Account of a Member shall not be deemed to be a liability of such Member nor an asset or property of the Company.

Section 6.5    Calculation of Internal Rate of Return.  
(a)    Tracking Progress.  The Managing Member will calculate at least annually whether the Class B Member has reached the Target IRR and will send the Class B Member, within 120 days after the end of each Fiscal Year in which the Target IRR was not achieved, a report in the form of the Tracking Model showing where it believes the Class B Member is in relation to the Target IRR.  If the report suggests that the Target IRR will be reached during the next two Fiscal Years, then the Managing Member will calculate and report whether the Class B Member has reached the Target IRR at least quarterly thereafter.  The Managing Member will make its advisers available to answer any questions about its calculations.  The Class B Member may invoke the dispute resolution procedures in Section 11.11(b) to resolve any item or procedure that is in dispute, and the conclusion of such dispute resolution procedures will apply in all subsequent periods to any identical item or procedure.
(b)    Notice of Date.  The Managing Member will notify the Class B Member in writing at least 10 Business Days before the Distribution Date following the month in which it believes the Class B Member achieved the Target IRR or at least 30 days before making any liquidating distributions, in connection with a liquidation of the Company pursuant to Section 10.1, if it believes the Class B Member will achieve the Target IRR as a consequence of the liquidating distributions.  The notice will include the Tracking Model showing the Managing Member’s calculations and, in the case of a notice delivered in connection with a liquidation, the allocations and distributions that the Managing Member proposes to make to the Class B Member under Section 10.2 in light of the calculations.  The Managing Member will make its advisers available to answer any questions about its calculations.  If the Class B Member wishes to invoke the dispute resolution procedures in Section 11.11(b) to resolve any disagreements, 

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then they must give notice to that effect to the Managing Member before the Distribution Date, in a case not involving liquidation of the Company, and within 30 days after receipt of notice from the Managing Member in a case involving liquidation.
(c)    Notwithstanding the foregoing, if there is a Class A Recapture Event after a final determination has been made that Class B Member has achieved the Target IRR, the Internal Rate of Return shall be recalculated at the time of such Class A Recapture Event in accordance with the terms of Section 6.5, taking into account the consequences of any recapture.  If, as a result of the Class A Recapture Event, the Class B Member’s Internal Rate of Return is below the Target IRR, the sharing percentages set forth in Section 5.1 and Section 6.1 shall be adjusted to the maximum extent necessary so as to correct, on a present value basis calculated at the Target IRR, the difference between the Target IRR assumed to have been realized by a holder of Class B Membership Interests on the Distribution Date as of which the Target IRR was determined to have been achieved, and the Internal Rate of Return realized by such a holder after adjusting solely for the Class A Recapture Event.  Such change in sharing percentages shall remain in effect until, and to the extent necessary so that, the difference between the Target IRR and actual Internal Rate of Return shall have been eliminated.

Section 6.6    Satisfaction of Recapture-Related Obligations of the Class A Members to the Class B Member.  
(a)    Notwithstanding the provisions of Section 6.1, if the Class B Member shall suffer any Recapture Damages, as a result of a Class A Recapture Event, then the Class B Member shall be entitled to collect Recapture Damages from the Class A Member in accordance with this Section 6.6.
(b)    Within 60 days after they become aware that they have incurred Recapture Damages, the Class B Member shall notify the Company and the Class A Members in writing of their Recapture Claim for such Recapture Damages, specifying in reasonable detail the cause of such Recapture Damages and the Class B Member’s calculation of the amount thereof if reasonably determinable by the Class B Member, or, if not reasonably determinable, an estimate of the range of such Recapture Damages.  Within 30 days following receipt of notice of a Recapture Claim, the Class A Members shall notify each of the Class B Members and the Company in writing whether it agrees with or disputes all or a portion of the Recapture Claim, specifying the amount, if any, so agreed to.  If the Class A Members shall not deliver such notice within the time specified, it shall be deemed to have delivered a notice on the 30th day disputing the entire amount of such Recapture Claim.  The Class B Member shall have all rights and remedies available at law or in equity to the Class B Member to collect any Recapture Damages from the Class A Members.

Section 6.7    Satisfaction of Certain Recapture-Related Obligations of the Class B Member to the Class A Members.

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(a)    Notwithstanding the provisions of Section 6.1, if the Class A Member shall suffer Recapture Damages as a result of a Class B Recapture Event, the Class A Member shall be entitled to collect such Recapture Damages from the Class B Member in accordance with this Section 6.7.
(b)    Within 60 days after they become aware that they have incurred Recapture Damages, the Class A Members shall deliver to the Company and the Class B Member a Recapture Claim notice for such Recapture Damages, specifying in reasonable detail the cause of such Recapture Damages and the Class A Member’s calculation of the amount thereof if reasonably determinable by the Class A Member, or, if not reasonably determinable, an estimate of the range of such Recapture Damages.  Within 30 days following receipt of notice of a Recapture Claim, the Class B Member shall notify each of the Class A Members and the Company in writing whether it agrees with or disputes all or a portion of the Recapture Claim, specifying the amount, if any, so agreed to.  If the Class B Member shall not deliver such notice within the time specified, it shall be deemed to have delivered a notice on the 30th day disputing the entire amount of such Recapture Claim.  The Class A Members shall have all rights and remedies available at law or in equity to the Class A Members to collect any Recapture Damages from the Class B Member.

Section 6.8    Satisfaction of Certain Recapture-Related Obligations of the Company or the Project Company.
(a)    Notwithstanding the provisions of Section 6.1, if the Company or Project Company is required to make any payment to the United States of America (or any agency or instrumentality thereof), as applicable, resulting from a Recapture Event (i) as a result of a Class A Recapture Event, then the Class A Member will be required to pay the amount of such payment (x) to the United States of America (or any agency or instrumentality thereof) on behalf of the Company or Project Company, as applicable, or (y) in the event that the Company or the Project Company has already made such payment, to the Company or Project Company, as applicable, in accordance with this Section 6.8 or (ii) as a result of a Class B Recapture Event, then the Class B Member will be required to pay the amount of such payment (x) to the United States of America (or any agency or instrumentality thereof) on behalf of the Company or Project Company, as applicable, or (y) in the event that the Company or the Project Company has already made such payment, to the Company or Project Company, as applicable, in accordance with this Section 6.8.
(b)    Within 60 days after the Company or Project Company becomes aware that a Recapture Event has occurred that requires the Company or Project Company to make a payment as a result of such Recapture Event, the Company or Project Company, as applicable, shall deliver to the Members a written notice, specifying in reasonable detail the cause of such Recapture Event, including whether caused by a Class A Recapture Event or Class B Recapture Event, and the Company or Project Company’s calculation of the amount of any such payment as a result of such Recapture Event, if reasonably determinable by the Company or the Project 

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Company, or, if not reasonably determinable, an estimate of the range of such payment.  Within 30 days following receipt of notice, each Member shall notify the Company or Project Company, as applicable, in writing whether it agrees with or disputes all or a portion of the amount specified in the notice, specifying the amount, if any, so agreed to.  The Company and Project Company shall have all rights and remedies available at law or in equity to the Members to collect any payment required to be paid by the Company or the Project Company as a result of a Class A Recapture Event or Class B Recapture Event from the responsible Members.

Section 6.9    Class A Recapture Events Prior to Receipt of Grant.  
(a)    If, prior to a Grant being received by the Project Company, there is a Recapture Event resulting in a denial of all or a portion of such Grant with respect to the Company or Project Company as a result of a Class A Recapture Event, the Class A Member will be required to pay the Class B Member 99% of the amount that equals the difference between the Grant amount set forth in the Grant Application and the actual Grant amount received.
(b)    Within 60 days after a Recapture Event resulting in a denial of all or a portion of the Grant as a result of a Class A Recapture Event, the Class A Member shall have the right to cause the Company or Project Company to appeal, contest or discuss such denial (i) in any formal or informal discussions with Treasury or any other Governmental Authority, (ii) in any formal or informal administrative proceeding before the relevant Governmental Authority and/or (iii) by commencing litigation in any forum appropriate for such appeal or contest.  The Class A Member shall have the right to direct such appeal, contest, or discussions.  The Class A Member shall keep, or cause the Company or Project Company to keep, the Class B Member reasonably apprised of all developments with respect to any such appeal, contest, or discussions and shall consult with the Class B Member with respect to its strategy for such appeal, contest or discussion prior to beginning any such appeal, contest or discussion.  

Section 6.10    Repayment.  If the amount of any Recapture Damages paid under Sections 6.6, 6.7, or 6.8 or any payments made under Section 6.9, are reduced or recovered by the Indemnified Party at any time after the making of such payments by the Indemnifying Party, the amount of such reduction or recovery, less any costs or expenses incurred in connection therewith, must promptly be repaid by the Indemnified Party to the Indemnifying Party net of any Taxes imposed upon the Indemnified Party in respect of such amounts, but taking into account any Tax benefit the Indemnified Party actually realizes as a result of such repayment.

Section 6.11    Permitted DistributionsOn or promptly following the execution date of the Note Purchase Agreement, the Project Company will distribute an amount equal to the Permitted Distribution from the proceeds received by the Project Company from the sale of the notes thereunder to the Company.  On or promptly following the Final Completion Date, the Project Company will distribute an amount equal to the amounts remaining on deposit in the Construction Escrow Account, upon the occurrence of the Final Completion Date (such amount, the “Aggregate Final Completion Distribution”) to the Company.  The Members acknowledge 

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and agree that, notwithstanding anything to the contrary contained in this Agreement, (i) the proceeds of the Permitted Distribution shall be distributed to the Members on April 30, 2013 or such earlier date as may be agreed upon by the Members and (ii) the proceeds of the Aggregate Final Completion Distribution shall be distributed 100% to the Class B Members, distributed among them in proportion to their Pro Rata Shares, on the Distribution Date immediately succeeding the Final Completion Date.

Section 6.12    Repurchase DistributionsNotwithstanding anything to the contrary in this Agreement, from the Effective Date through the date the Current Buyout Amount is repaid in full, which shall be on or prior to March 31, 2020, the Managing Member shall cause the Company to cause the Project Company, promptly following the receipt of funds with respect to any Payment Date Amount under the Repurchase Agreement (on each Payment Date thereunder), to distribute to the Company an amount equal to 100% of such funds associated with all Payment Date Amounts received by the Project Company from the repurchase of the Existing Systems pursuant to the Repurchase Agreement (“Repurchase Distributions”), and promptly thereafter, the Managing Member shall cause the Company to distribute the Repurchase Distributions 100% to the Class B Member, which distribution (so long as made on or prior to March 31, 2020) shall reduce the Current Buyout Amount, including if a Supplemental Buyout Capital Contribution is required to be made by the Class A Member pursuant to Section 4.5 above, the amount of such Supplemental Buyout Capital Contribution, up to the then existing Current Buyout Amount, shall be distributed by the Company to the Class B Member.  Further, in the event that (A) the Class A Member or an Affiliate otherwise elects, in its sole discretion, to contribute any funds to the Class B Member on or prior to March 31, 2020, (B) any Payment Date Amount is paid directly to Mehetia pursuant to the terms of the Repurchase Agreement, or (C) a Supplemental Buyout Capital Contribution from the Class A Member is required to be made pursuant to Section 4.5 above, each will be distributed to the Class B Member pursuant to the requirements of this Section 6.12, and, in each case, any such amounts shall be deemed to constitute “Repurchase Distributions” and shall reduce the Current Buyout Amount to the extent of such contribution/payment (so long as made on or prior to March 31, 2020).  Notwithstanding the foregoing or anything to the contrary contained herein, in no event will any Repurchase Distributions distributed to the Class B Member after March 31, 2020 reduce the Current Buyout Amount or otherwise result in any redemption of the Class B Member’s Membership Interests pursuant to Section 3.12(o) (unless otherwise agreed in writing by the Class B Member in its sole discretion), but any such Repurchase Distributions shall be considered in the calculation of the Target IRR.  For the avoidance of doubt, with respect to any Payment Date that occurs after March 31, 2020 or any repurchase of an Existing System under the Repurchase Agreement that occurs after March 31, 2020: (i) the funds from the Payment Date Amount shall be distributed from the Project Company to the Company and, in turn, 100% of such funds distributed to Mehetia, but such amounts shall not decrease the Current Buyout Amount; and (ii) to the extent that such Repurchase Distributions result in the achievement of the Target IRR or result in the Flip Date occurring, Mehetia shall continue to remain a member of the Company entitled to all rights hereunder (including any rights to receive any distributions 

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hereunder) unless and until the Class A Member exercises its Purchase Option or Mehetia exercises its Sale Option (unless otherwise agreed in writing by the Class B Member in its sole discretion to permit such distributions to result in a redemption of the Class B Member’s Membership Interests pursuant to Section 3.12(o)).  Notwithstanding anything else in this Agreement or the Repurchase Agreement or any other Transaction Document to the contrary, the Members agree to treat the Repurchase Distributions as a distribution of money for purposes of Section 731 of the Code.  In addition, any payment for indemnification, reimbursement of costs or expenses, payments for non revenue-related damages or other non revenue-related compensatory distribution (each a “Compensatory Distribution”) made to the Company (or directly to Mehetia) hereunder or pursuant to or in connection with any Transaction Document (excluding any warranty or production guarantee payments actually received by Mehetia (including by way of distribution from the Company)) and allocated to Mehetia (whether such payment is distributed only to Mehetia or to both Mehetia and the Class A Member) pursuant hereto or pursuant to any such Transaction Document, other than payments that are intended to provide compensation for lost generation or lost Company or Project Company revenue shall not be considered a “Repurchase Distribution”, and shall not be credited against the Current Buyout Amount or achievement of the Target IRR (it being understood and agreed that if any payment for a Compensatory Distribution is made to the Project Company or the Company pursuant to or in connection with any Transaction Document, then the Managing Member shall the cause the Company (and the Company shall cause the Project Company, as applicable) to promptly distribute such amounts of any Compensatory Distribution to the Company and then further promptly distribute such amounts 100% to Mehetia).
Section 6.13.    Distribution of Funds Provided as Security for the Tariff Indemnity Letters of Credit and ITC Indemnity Letter of Credit.
Each of the Tariff Indemnity Distributions and the ITC Indemnity Distribution which are provided as security for the issuance of the Tariff Indemnity Letters of Credit or the ITC Indemnity Letter of Credit, and any funds contributed by the Class A Member for such purpose, and which are subsequently released from the lien of the issuer of the Tariff Indemnity Letters of Credit or the ITC Indemnity Letter of Credit, as applicable, upon release of such lien, shall be immediately removed from the accounts holding such funds by the Managing Member and distributed by the Managing Member to the Class A Member.

ARTICLE VII     
ACCOUNTING AND RECORDS

Section 7.1    Reports.  
(a)    The Managing Member shall cause the Administrator to prepare and deliver to each Member as soon as practical but in no event later than the 20th day after the end of each month, a written report (each, an “Operations Report”), in the same form as previously delivered under the 2013 Operating Agreement, that will include a summary of the kilowatt 

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hours produced and sold by the Project Company during such month, information regarding the Systems’ availability during such month, notice of material  events, including but not limited to, defaults under Material Contracts, any Material Adverse Effect that has occurred at the Project Company, any FERC or Grant-related filings, periodic reports on the status of the System sales, periodic financial statements of the Company and the Project Company and such other relevant operational information as may from time to time be reasonably requested, prior to the Flip Date, by Class B Members owning more than 50% of the Class B Membership Interests by Percentage Interest.
(b)    No later than 60 calendar days before the start of each Fiscal Year, the Managing Member shall cause the Administrator to prepare or cause to be prepared, and shall submit to each Member, an annual capital and operating budget for the Project Company before the end of the previous Fiscal Year (the “Annual Budget”).  
(c)    The Managing Member shall cause the Administrator to prepare and deliver to each Member on or before the 20th day of each calendar month, a report showing the calculation of Repurchase Distributions, Cash Distributions, Compensatory Distributions and any other distributions for such prior calendar month determined in accordance with Article VI, for both distributions from the Project Company to the Company and the Company to the Members or any Member. 
(d)    The Managing Member shall cause the Administrator to (i) calculate at least annually whether the Class B Member has reached the Target IRR; provided, however, that if the calculation in a year suggests that the Target IRR will be reached during the next two Fiscal Years, then the Managing Member will calculate whether the Class B Member has reached the Target IRR at least quarterly thereafter; and (ii) send the Class B Member, within 120 days after the end of each Fiscal Year in which the Target IRR was not achieved, a report showing where it believes the Class B Member is in relation to the Target IRR and a similar report within 30 Business Days after the end of each Quarter during any period when quarterly reports are required.
(e)    The Managing Member shall cause the Administrator to notify the Class B Member in writing at least 30 days before the Distribution Date following the month in which it believes the Class B Member achieved the Target IRR or at least 30 days before making any liquidating distributions, in connection with a liquidation of the Company pursuant to Section 10.1, if it believes the Class B Member will achieve the Internal Rate of Return as a consequence of the liquidating distributions (the “Target IRR Notice”).  The Target IRR Notice will include the Managing Member’s Internal Rate of Return calculations and, in the case of a notice delivered in connection with a liquidation, the allocations and distributions that the Managing Member proposes to make to the Class B Member under Section 10.2 in light of the calculations.

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(f)    With respect to any Repurchase Distribution, or any other distribution to Mehetia under Article VI except for Compensatory Distributions (each a “Cash Distribution”), at least five (5) Business Days prior to each Repurchase Distribution or Cash Distribution (including the Supplemental Buyout Capital Contribution, if applicable), the Managing Member or the Administrator will notify Mehetia in writing of (i) its intent to make such distribution, (ii) the amount of such Repurchase Distribution or Cash Distribution (as applicable), and (iii) the Current Buyout Amount (and calculation thereof) (including, for the avoidance of doubt the amount of the Supplemental Buyout Capital Contribution). In addition to the foregoing, the Managing Member shall prepare and deliver to the Class B Member on or before the 20th day after the end of each calendar month, a report showing (i) the calculation of Repurchase Distributions and any Cash Distributions and the corresponding Current Buyout Amount (and calculation thereof) as of the end of such prior calendar month, (ii) the total number of Existing Systems repurchased under the Repurchase Agreement for such month and the applicable System Capacity, and (iii) the total number of Existing Systems that have not been repurchased under the Repurchase Agreement and their applicable System Capacity.
(g)    The Managing Member shall deliver to each Member: (i) concurrent with the delivery to the members of the Project Company, a copy of all reports or notices provided by the Company to the members of the Project Company pursuant to the Project Company LLC Agreement and (ii) promptly following the receipt by the Company or the Project Company (and in any event within 5 Business Days), a copy of all notices received by the Company or the Project Company under the Project Company LLC Agreement or any other Transaction Documents.

Section 7.2    Books and Records and Inspection.  
(a)    The Managing Member shall cause the Company to keep and shall maintain, full and accurate books of account, financial records and supporting documents that reflect, completely, accurately and in reasonable detail in all material respects, each transaction of the Company and such other matters as are usually entered into the records or maintained by Persons engaged in a business of like character or as are required by law, and all other documents and writings of the Company and all statements and documents required by the Guidance (including, but not limited to, energy production information and financial and accounting records sufficient to demonstrate that the Grant was properly obtained in accordance with the Guidance and any other documents needed to comply with the Guidance maintenance and access to records, requirements and documents needed for the completion of annual project performance reports (including information regarding annual energy production and number of jobs retained) and recapture certification) and as required by this Agreement and the Repurchase Agreement.  The books of account, financial records, and supporting documents and the other documents and writings of the Company shall be kept and maintained by the Managing Member at the principal office of the Company.  The financial records and reports of the Company and the Project Company shall be kept on an accrual basis and kept in accordance with GAAP.

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(b)    In addition to and without limiting the generality of Section 7.2(a), the Managing Member shall cause the Company to keep and shall maintain at the Company’s principal office:
(i)    true and full information regarding the status of the financial condition of the Company, including any financial statements until the applicable statute of limitations expires with respect to the Company tax year to which such information and financial statements relate;
(ii)    promptly after becoming available, a copy of the Company’s and, if applicable, the Project Company’s federal, state, and local income Tax Returns for each year;
(iii)    minutes of the proceedings of the Members;
(iv)    a current list of the name and last known business, residence or mailing address of each Member and the Administrator;
(v)    a copy of this Agreement and the Company’s Certificate of Formation, and all amendments thereto, the Project Company’s operating agreement and all amendments thereto, together with executed copies of any written powers of attorney pursuant to which this Agreement and such Certificate of Formation and all amendments thereto which have been executed and copies of written consents of Members;
(vi)    true and full information regarding the amount of cash and a description and statement of the agreed value of any other property and services contributed by each Member, and the date upon which each became a Member;
(vii)    copies of records that would enable a Member to determine the Member’s relative shares of the Company’s distributions and the Member’s relative voting rights; and
(viii)    all records related to the production and sale of electricity by the Project Company.
(c)    Upon receiving reasonable prior notice to the Managing Member, all books and records of the Company and the Project Company shall be open to inspection and copying by any of the Members or their Representatives during business hours and at such Member’s expense, for any purpose reasonably related to such Member’s interest in the Company, provided that any such inspection or copying is conducted in a manner which does not unreasonably interfere with the Company’s business.

Section 7.3    Bank Accounts, Notes and Drafts.  

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(a)    All funds not required for the immediate needs of the Company shall be placed in Permitted Investments, which investments shall have a maturity appropriate for the anticipated cash flow needs of the Company.  All Company funds shall be deposited and held in accounts which are separate from all other accounts maintained by the Members and the Administrator, and the Company’s funds shall not be commingled with any funds of any other Person, including the Project Company, any Administrator, any Member or any Affiliate of an Administrator or a Member.
(b)    The Members acknowledge that the Company may maintain Company funds in accounts, money market funds, certificates of deposit, other liquid assets in excess of the insurance provided by the Federal Deposit Insurance Corporation, or other depository insurance institutions and that neither the Managing Member nor the Administrator nor the Company shall be accountable or liable for any loss of such funds resulting from failure or insolvency of the depository institution, so long as any such maintenance of funds is in compliance with the first sentence of Section 7.3(a).
(c)    Checks, notes, drafts and other orders for the payment of money shall be signed by such officers of the Company, or the Managing Member, as the Company from time to time may authorize.  When the Company so authorizes, the signature of any such Person may be a facsimile.

Section 7.4    Financial Statements.  
(a)    As soon as practicable after the end of each Quarter, but in any event within 60 calendar days after the end of each Quarter, the Managing Member shall furnish to each Member unaudited financial statements with respect to such Quarter for the Company and the Project Company prepared in accordance with GAAP and consisting of (i) a balance sheet showing the Company’s and the Project Company’s financial position as of the end of such Quarter, (ii) profit and loss statements for the Company and the Project Company for such Quarter, and (iii) a statement of cash flows for the Company and the Project Company for such Quarter.  Such statements shall include a statement of Members’ equity based on hypothetical liquidation at book value (HLBV) accounting.
(b)    By the following April 30 after the end of each Fiscal Year, the Managing Member shall furnish to each Member consolidated financial statements with respect to such Fiscal Year for the Company that are audited and certified by an Accounting Firm and prepared in accordance with GAAP, consisting of (i) a balance sheet showing the Company’s financial position as of the end of such Fiscal Year, (ii) profit and loss statements for the Company for such Fiscal Year, (iii) a statement of cash flows for the Company for such Fiscal Year and (iv) related footnotes.  Such statements shall include a statement of Members’ equity based on hypothetical liquidation at book value (HLBV) accounting.

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(c)    By the following February 15 after the end of each Fiscal Year, the Managing Member shall furnish to each Member unaudited financial statements with respect to such Fiscal Year for the Company and the Project Company prepared in accordance with GAAP and consisting of (i) a balance sheet showing the Company’s and the Project Company’s financial position as of the end of such Fiscal Year, (ii) profit and loss statements for the Company and the Project Company for such Fiscal Year, (iii) a statement of cash flows for the Company and the Project Company for such Fiscal Year.  Such statements shall include a statement of Members’ equity based on hypothetical liquidation at book value (HLBV) accounting.

Section 7.5    Partnership Status and Tax Elections.  
(a)    The Members intend that the Company will be taxed as a partnership for United States federal, state and local income tax purposes.  The Members agree not to elect to be excluded from the application of Subchapter K of Chapter 1 of Subtitle A of the Code or any similar state statute and agree not to elect for the Company to be treated as a corporation, or an association taxable as a corporation, under the Code or any similar state statute.
(b)    The Company will make the following elections on the appropriate Tax Returns:
(i)    any election necessary to qualify for the Grant and prevent a Class A Recapture Event as it relates to the Grant, or if the Grant is determined by the Members (by a Class Majority Vote) to not be available, any election or claim of any Alternative Tax Program that the Members have decided to elect or claim pursuant to a Class Majority Vote; provided that if the Company and the Project Company seek to claim the ITC, the Members agree to negotiate in good faith and execute any amendments to any of the Transaction Documents, enter into any additional agreements and take all such additional actions as may be reasonably required to effect such an election;
(ii)    to the extent permitted under Section 706 of the Code, to adopt as the Company’s fiscal year the calendar year;
(iii)    to adopt the accrual method of accounting;
(iv)    if a distribution of the Company’s property as described in Section 734 of the Code occurs or a transfer of Membership Interest as described in Section 743 of the Code occurs, to elect pursuant to Section 754 of the Code to adjust the basis of the Company’s properties;
(v)    to elect to amortize the organizational expenses of the Company ratably over a period of 180 months as permitted by Section 709(b) of the Code; 

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(vi)    to elect out of additional first year depreciation pursuant to Section 168(k)(2)(D)(iii) of the Code, unless, after consultation with the Class B Member, the Class B Member requests in writing that this election not be made; and
(vii)    if approved in writing by Members representing a Class Majority Vote, any other election the Managing Member may deem appropriate.
(c)    For Tax years beginning prior to January 1, 2018, the Company shall file an election under Section 6231(a)(1)(B)(ii) of the Code and the Treasury Regulation thereunder to treat the Company as a partnership to which the provisions of Sections 6221 through 6234 of the Code, inclusive, apply. 

Section 7.6    Company Tax Returns.  The United States federal income Tax Returns for the Company and all other Tax Returns of the Company shall be prepared as directed by the Managing Member in Consultation with the other Members.  If a Member notifies the Managing Member that any real property Taxes with respect to the Systems were assessed against or invoiced to such Member, then the Managing Member will cause the Company to pay such Taxes in full and in a timely manner, provided, further, that with respect to each Tax Year ending on the last Friday of November, the Managing Member will cause the Company to prepare preliminary Tax Returns and issue preliminary K-1’s to the Members no later than February 1 of the following Tax Year.  The Managing Member, in Consultation with the other Members, may extend the time for filing any such Tax Returns as provided for under applicable statutes; provided that, in the event of any such extension, the Managing Member shall provide the other Members with an estimate of the Taxes owed within 20 days of the filing of such extension.  At the Company’s expense, the Managing Member shall cause the Company to retain an Accounting Firm to prepare or review and sign the necessary federal and state income Tax Returns and information returns for the Company.  Each Member shall provide such information, if any, as may be reasonably needed by the Company for purposes of preparing such Tax Returns, provided that such information is readily available from regularly maintained accounting records.  At least 30 days prior to filing the federal and state income Tax Returns other than information returns, the Managing Member shall deliver to the other Members for their review a copy of the Company’s federal and state income Tax Returns, excluding information returns, in the form proposed to be filed for each Fiscal Year together with a notice of any inconsistencies with the Base Case Model, and shall incorporate all reasonable changes or comments to such proposed Tax Returns requested by the other Members (who shall be required to make all reasonable efforts to provide such changes or comments in a reasonable amount of time) at least 10 days prior to the filing date for such returns.  The dispute provisions under Section 11.11 may be invoked if Class B Members owning more than 50% of the Class B Membership Interests disagree with a position taken on any Tax Return; provided that the Accounting Firm preparing the Tax Return still must be able to sign the Tax Return consistent with the resolution of the dispute; provided, further that if the dispute process would not be completed by the date that the Tax Return must be filed under this Section 7.6, then the Managing Member will cause the Company to file the Tax Return as originally prepared by the 

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required date, but the Managing Member may be required to cause the Company to amend the Tax Return after a conclusion is reached in the dispute process; and provided still further that in the event such challenge confirms the original position in question, the challenging Class B Member shall promptly pay all of the Accounting Firm’s reasonable fees and expenses incurred in connection with such challenge.  After taking into account any such requested changes, the Managing Member shall cause the Company to timely file, taking into account any applicable extensions, such Tax Returns.  Within 20 days after filing such federal and state income Tax Returns and information returns, the Managing Member shall cause the Company to deliver to each Member a copy of the Company’s federal and state income Tax Returns and information returns as filed for each Fiscal Year, together with any additional tax-related information in the possession of the Company that such Member may reasonably and timely request in order to properly prepare its own income Tax Returns.

Section 7.7    Tax Audits.  
(a)    Clean Technologies is hereby designated as the initial “tax matters partner,” as that term is defined in Section 6231(a)(7) of the Pre-2018 Code (the “Tax Matters Partner”) (for Tax years beginning prior to January 1, 2018), of the Company, with all of the rights, duties and powers provided for in Sections 6221 through 6234 of the Pre-2018 Code, inclusive, and the “partnership representative,” as that term is described in Section 6223 of the Code (the “Partnership Representative”), with all of the rights, duties and powers of such position provided for in the Code.  Each other Member may provide the Secretary of Treasury with notice that it is a “notice partner” under Section 6223 of the Pre-2018 Code.  Clean Technologies is hereby directed and authorized to take whatever steps Clean Technologies, in its reasonable discretion, deems necessary or desirable to perfect such designation as the Tax Matters Partner or Partnership Representative, as the case may be, including filing any forms or documents with the IRS, taking such other action as may from time to time be required under the Treasury Regulations and directing Bloom to take any of the foregoing actions.  Clean Technologies shall remain as the Tax Matters Partner or Partnership Representative, as the case may be, so long as it remains the Managing Member and retains any ownership interests in the Company unless Clean Technologies requests that it not serve as Tax Matters Partner or Partnership Representative, as the case may be,  and such request is approved by (i) a Class Majority Vote, if such request is made prior to the Flip Date or (ii) a Majority Vote, if such request is made after the Flip Date, or if Members collectively holding more than 50% of the Class B Membership Interests reasonably determine to remove the Tax Matters Partner, or Partnership Representative, as the case may be, for fraud or willful misconduct and appoint a replacement.
(b)    For Tax years beginning prior to January 1, 2018, the Tax Matters Partner, in Consultation with the other Members, shall direct the defense of any claims made by the IRS to the extent that such claims relate to the adjustment of Company items at the Company level, except that the strategy to be taken in connection with any such defense and the selection of counsel shall be approved by (i) a Class Majority Vote, if the claims relate to periods before the 

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Flip Date, (ii) a Majority Vote, if such claims relate to periods after the Flip Date or (iii) a unanimous vote of the Class B Members, if such claims relate to the Grant.  For Tax years beginning prior to January 1, 2018, the Tax Matters Partner shall cause the Company to retain and to pay the fees and expenses of counsel approved as described in the preceding sentence and to pay the fees and expenses of other advisors chosen by the Tax Matters Partner in Consultation with the other Members.  For Tax years beginning prior to January 1, 2018, the Tax Matters Partner shall promptly deliver to each Member a copy of all notices, communications, reports and writings received from the IRS by the Company relating to or potentially resulting in an adjustment of Company items, shall promptly advise each Member of the substance of any conversations with the IRS in connection therewith and shall keep the Members advised of all developments with respect to any proposed adjustments that come to its or the Administrator’s, as the case may be, attention.  In addition, for Tax years beginning prior to January 1, 2018,  the Tax Matters Partner shall (A) provide each Member with a draft copy of any correspondence or filing to be submitted by the Company in connection with any administrative or judicial proceedings relating to the determination of Company items at the Company level reasonably in advance of such submission, (B) incorporate all reasonable changes or comments to such correspondence or filing, approved or recommended by Members collectively holding more than 50% of the Class B Membership Interests timely requested by any Member and (C) provide each Member with a final copy of correspondence or filing.  For Tax years beginning prior to January 1, 2018, the Tax Matters Partner will provide each Member with notice reasonably in advance of any meetings or conferences with respect to any administrative or judicial proceedings relating to the determination of Company items at the Company level (including any meetings or conferences with counsel or advisors to the Company with respect to such proceedings) and each Member shall have the right to participate, at its sole cost and expense, in any such meetings or conferences. For Tax years beginning on or after January 1, 2018, the Partnership Representative shall keep all Members fully and timely informed by written notice, within one week of receiving notice of any audit, administrative or judicial proceedings, meetings or conferences with the IRS or other similar matters that come to its attention in its capacity as Partnership Representative, and all Members shall have the right to review and comment on any submissions to the IRS, and attend and jointly participate in any meetings or conferences with the IRS at its own expense.  For Tax years beginning on or after January 1, 2018, each Member shall furnish any information reasonably requested by the Partnership Representative in connection with carrying out its duties, and the Partnership Representative shall not, without the consent of all Members and otherwise in accordance with this Agreement: (1) take or not take any action in respect of an audit contest or other tax matter or proceeding; (2) file a petition under Section 6234 of the Code; (3) file a request for an administrative judgment under Section 6227 of the Code; or (4) make any waiver under Code Section 6232(c)(2) of the Code.  
(c)    For any issue or matter relating to the period prior to the Flip Date without the approval of Members collectively holding more than 50% of the Class B Membership Interests, the Tax Matters Partner or the Partnership Representative, as the case may be,  shall not (i) commence a judicial action (including filing a petition as contemplated in Section 6226(a) or 

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Section 6228 of the Pre-2018 Code) with respect to a federal income tax matter or appeal any adverse determination of a judicial tribunal; (ii) intervene in any action as contemplated by Section 6226(b) of the Pre-2018 Code; (iii) file any request contemplated in Section 6227(b) of the Pre-2018 Code; or (iv) enter into an agreement extending the period of limitations as contemplated in Section 6229(b)(1)(B) of the Pre-2018 Code or otherwise extend or agree to extend the period of limitations of the Company.  For any issue or matter relating to the period prior to the Flip Date without the approval of each of the other Members, the Tax Matters Partner or the Partnership Representative, as the case may be, shall not enter into a settlement agreement with the IRS or otherwise take any action with respect to Taxes which purports to bind the Members.  The Tax Matters Partner or Partnership Representative, as the case may be, shall not file any election pursuant to Section 6221(b) of the Code to have the provisions of Subchapter C of Chapter 63 not apply to the Company.  Any cost or expense incurred by the Tax Matters Partner or the Partnership Representative, as the case may be, in connection with its duties as Tax Matters Partner or the Partnership Representative, as the case may be, shall be paid by the Company.  If the Grant is determined to be unavailable in accordance with the procedures set forth in Section 7.5(b)(i), the Tax Matters Partner or the Partnership Representative, as the case may be, shall elect or claim an Alternative Tax Program only in accordance with Section 7.5(b)(i).
(d)    If, for Tax years beginning prior to January 1, 2018, for any reason the IRS disregards the election made by the Company pursuant to Section 7.5(c) and commences any audit or proceeding with respect to a Tax year beginning prior to January 1, 2018 in which it makes a claim, or proposes to make a claim, against any Member that could reasonably be expected to result in the disallowance or adjustment of any items of income, gain, loss, deduction or credit allocated to such Member by the Company, then such Member shall promptly advise the other Members of the same, and such Member, in Consultation with the other Members, shall use commercially reasonable efforts to convert the portion of such audit or proceeding that relates to such items into a Company level proceeding consistent with the Company’s election pursuant to Section 7.5(c).
(e)    If any Member intends to file, pursuant to Section 6227 of the Pre-2018 Code, a request for an administrative adjustment of any such partnership item of the Company, or to file a petition under Sections 6226, 6228 or other Sections of the Pre-2018 Code with respect to any such partnership item or any other tax matter involving the Company, such Member shall, at least thirty (30) days prior to any such filing, notify the other Members of such intent, which notification must include a reasonable description of the contemplated action and the reasons for such action; provided, however, that this Section 7.7(e) shall not relieve such Member’s obligation to use all commercially reasonable efforts to convert a Member level proceeding into a Company level proceeding as provided in Section 7.7(d).

Section 7.8    Cooperation.  Subject to the provisions of this Article VII, each Member shall provide the other Members with such assistance as may reasonably be requested by such other Members in connection with the preparation of any Tax Return, any audit or other 

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examination by any taxing authority, or any judicial or administrative proceedings relating to the liability for any Taxes with respect to the operations of the Company and the Project Company or a Class A Recapture Event.

Section 7.9    Fiscal Year.  The fiscal year of the Company (the “Fiscal Year”) shall be the same as the taxable year of the Company.  The taxable year of the Company will be a year that ends on the last Friday of each November, or such other year as may be required by applicable federal income tax law.

ARTICLE VIII     
MANAGEMENT

Section 8.1    Management.  Each of the Members acknowledges and agrees that, from and after the Effective Date, the Managing Member shall have responsibility to perform all Administrative Services for and on behalf of the Company. Additionally, the Managing Member shall have all other authority, powers and responsibilities as provided herein; provided that neither the Administrator nor the Managing Member shall (x) take or permit any action that would be a Major Decision hereunder without the prior occurrence of a Class Majority Vote approving such action, or, subject to the requirements imposed upon the Company pursuant to or under the Project Company LLC Agreement,  refrain from taking any action that has been approved as a Major Decision hereunder, or (y)  subject to the requirements imposed upon the Company pursuant to or under the Project Company LLC Agreement, either (1) take or permit any action that would be an Investor Decision hereunder without the prior consent and direction of Mehetia, or (2) refrain from taking any action directed by Mehetia as an Investor Decision hereunder; provided, that should the Administrator or Managing Member take any such action at the direction of Mehetia as an Investor Decision, and such action results in any claim by a third party (it being understood that any Member or any Affiliate of a Member shall not be deemed to be a third party, but that any Non-Bloom Affiliate Member of the Project Company shall be a third party) against, or damages or liability of the Company, the Project Company (or any of its members), the Administrator and/or the Managing Member owed to any third party (it being understood that any Member or any Affiliate of a Member shall not be deemed to be a third party, but that any Non-Bloom Affiliate Member of the Project Company shall be a third party), Mehetia shall indemnify, defend and hold harmless the Company, the Project Company (or the applicable member(s)), the Administrator and/or the Managing Member, as applicable, against any such claim, damages and liability; further, provided, that Mehetia shall not have any indemnification obligations with respect to any such Investor Decisions if (i) the Managing Member submitted the Investor Decision to Mehetia pursuant to Section 8.4(c), or pursuant to Section 8.3 as a Major Decision for approval and such Major Decision for which approval is requested by the Managing Member is an Investor Decision (ii) to the extent that  the claim, damages or liabilities, were a result of the negligence, bad faith, willful misconduct, fraud of or breach by the Administrator, the Managing Member, the Company, the Project Company (or its members), or any Person acting on their behalf (as applicable), or (iii) to the extent that the Project Company or the Company receives any indemnification, insurance or similar payments 

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from a third party with respect to such claim, damages or liabilities. Notwithstanding the foregoing, in no event shall Mehetia have any indemnification obligation with respect to an Investor Decision for any type of claim (including counter-claim) brought by Bloom or any of its Affiliates as a result of, in connection with or in reaction to the Investor Decision. In each instance in which the Administrator is acting pursuant to its authority hereunder in regards to any Transaction Document, including with respect to any Major Decision or Investor Decision, it shall be deemed a “manager” of the Company under the Act. Except (a) for Major Decisions, (b) for Investor Decisions, and (c) as otherwise required by applicable Legal Requirements or this Agreement, the powers of the Company shall be exercised by or under the authority of, and the business and affairs of the Company shall be managed under the direction of the Managing Member.  In addition, the Members may by Class Majority Vote vest in the Managing Member or the Administrator the authority to take actions for and on behalf of the Company not otherwise provided for in this Agreement, including with respect to any specific Transaction Document.  

Section 8.2    Managing Member.  
(a)    The Managing Member shall be the Member designated to act as such hereunder from time to time in accordance with the provisions of this Section 8.2 (the “Managing Member”).  The initial Managing Member shall be Clean Technologies. The Managing Member hereby covenants that, commencing on the Effective Date, it shall perform all Administrative Services for and on behalf of the Company. In addition to the foregoing, subject to Section 8.4, the Managing Member shall cause the Company to cause the Project Company, to enforce the Administrative Services Agreement and the MOMA (and any other Material Contracts, including any with Affiliates of Bloom or Clean Technologies) on behalf of the Company and the Project Company; provided, however, that, in the event that the Administrative Services Agreement is terminated and is not replaced, the Managing Member shall perform the work, or engage a third party to perform such work, previously performed by the Administrator prior to the termination of such Administrative Services Agreement in accordance with the Prudent Operator Standard, or if not in accordance with such standard, if approved in advance or ratified by Mehetia.  
(b)    Upon the termination of the MOMA, the Managing Member shall cause the Company to replace the MOMA in accordance with Section 8.3 and the definition of “Major Decisions” and, to the extent such replacement MOMA is not with an Affiliate of Clean Technologies, the operator (or an Affiliate thereof, if the operator’s obligations thereunder are being guaranteed by such Affiliate) under such replacement MOMA shall have substantial experience operating and maintaining comparable equipment. 
(c)    The Managing Member hereby covenants to cause the Company to, and to cause the Company to cause the Project Company to, implement any Major Decisions approved under this Company LLC Agreement, and not to take any Major Decisions (or comparable decision at the Project Company level) without a Class Majority Vote.

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(d)    The Managing Member hereby covenants, subject to the requirements imposed upon the Company pursuant to or under the Project Company LLC Agreement, to cause the Company to, and to cause the Company to cause the Project Company (or such other Person as applicable) to, implement any Investor Decisions approved or directed by Mehetia under this Company LLC Agreement, and not to take any Investor Decisions (or comparable decision at the Project Company level) without Mehetia’s prior written approval or direction.
(e)    Clean Technologies may resign as Managing Member with any such resignation to become effective upon the appointment of a successor Managing Member under this paragraph that is recognized nationally as having substantial experience managing and operating fuel cell facilities.  The Members, by a Class Majority Vote prior to the Flip Date and by a Majority Vote thereafter, may at any time (i) remove a Managing Member (x) upon their reasonable determination that there is Cause for removal, or (y) following any Bankruptcy of the Managing Member or foreclosure or involuntary transfer of the Class A Membership Interests held by the Managing Member (or any Bankruptcy of any Person that Controls the Managing Member), and (ii) fill any vacancy as Managing Member caused by removal, resignation or otherwise.  The Managing Member may not participate in, and any Membership Interests owned by Clean Technologies or an Affiliate thereof shall be excluded from, any vote to remove or replace a Managing Member under this Section 8.2(e) if the basis alleged for removal of the Managing Member is for Cause.
(f)    The Managing Member may, from time to time, designate one or more officers with such titles as may be designated by the Managing Member to act in the name of the Company with such authority as is delegated to the Managing Member hereunder and as may be delegated to such officer(s) by the Managing Member.  The current officers are the persons listed on Schedule 8.2(f).

Section 8.3    Major Decisions. 
(a)    In addition to any other approval required by applicable Legal Requirements or this Agreement, Major Decisions are reserved to the Members, and none of the Company, the Managing Member, the Administrator, or any officer thereof shall do or take or make or approve any Major Decisions with respect to the Company or the Project Company without a Class Majority Vote.
(b)    The Managing Member will submit proposed Major Decisions to the Class B Member in writing in accordance with Section 11.1 for their approval, with each submission setting forth in reasonable detail the Major Decision proposed and the basis for the Managing Member’s recommendation.  Upon receipt of the written submission, the Class B Members will have ten (10) Business Days therefrom to approve or reject the proposal by Class B Members owning a majority of the Class B Membership Interests.  If the proposed Major Decision is not approved or rejected by Class B Members owning a majority of the Class B Membership Interests in writing within such period, such proposed Major Decision will be deemed rejected.

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Section 8.4    Investor Decisions.
(a)    In addition to any other approval required by applicable Legal Requirements or this Agreement, Investor Decisions are reserved to Mehetia, and none of the Company, the Managing Member, Clean Technologies, the Administrator, or any officer thereof shall do or take or make or approve any Investor Decisions with respect to the Company or, the Project Company, without Mehetia’s prior written consent or direction.
(b)    Mehetia may submit to the Managing Member an Investor Decision in writing in accordance with Section 11.1 setting forth in reasonable detail the Investor Decision proposed and the actions that, subject to the requirements imposed upon the Company pursuant to or under the Project Company LLC Agreement, the Managing Member shall take or allow Mehetia to take, or that the Managing Member will cause the Company to take or cause the Project Company to take (subject to the requirements of the Project Company LLC Agreement).  Subject to the requirements imposed upon the Company pursuant to or under the Project Company LLC Agreement, the Managing Member hereby agrees to take all such actions or allow Mehetia to take such actions to effectuate the Investor Decision.
(c)    In addition to Section 8.4(b), the Managing Member may submit a proposed Investor Decision to Mehetia in writing in accordance with Section 11.1 for its approval, or direction with respect to such Investor Decision, with each submission setting forth in reasonable detail the Investor Decision proposed or implicated and the basis for the Managing Member’s request and recommended action.  Upon receipt of the written submission, Mehetia will have ten (10) Business Days therefrom to approve or reject the proposal; provided, however, Mehetia may provide its own direction to the Managing Member at any time with respect to such Investor Decision.  If the proposed Investor Decision is not approved or rejected by Mehetia in writing within such period, such proposed Major Decision will be deemed rejected subject to the proviso in the immediately preceding sentence.

Section 8.5    Insurance.  The Managing Member shall cause the Company to acquire and maintain (including making changes to coverage and carriers) the casualty, general liability (including product liability), property damage and/or other types of insurance set forth in Schedule 8.5 and the Insurance Report; provided that if any such insurance is not available on commercially reasonable terms, only such insurance shall then be required to be carried pursuant to this Section 8.5 as is then available on commercially reasonable terms.  The Class B Members shall be added to such insurance as additional insured and loss payee as their interests may appear, with a waiver of subrogation permitted in their favor (where legally permitted or insurance market practice permits).  Such insurance shall require that the Class B Members be provided with 30 days written notice of cancellation (10 days for non-payment of premium).  The Managing Member shall cause to be delivered to each Class B Member, promptly after it becomes a Member, certificates from a reputable insurance broker evidencing the maintenance of the insurance required by this Section 8.5, which certificates shall be replaced or updated to 

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reflect any replacement, renewal or other change to the insurance evidenced thereby, or the addition of any policy not then reflected on the most recently delivered certificates.

Section 8.6    Notice of Material Breach.  The Managing Member shall promptly notify the Class B Member (but in no event more than within five Business Days of obtaining actual knowledge) of any (a) notice of default delivered by a party to a Material Contract to the Project Company, the Administrator or the Managing Member or (b) default by a party to a Material Contract (other than a Project Company, the Administrator or any Affiliate thereof) under such Material Contract, in the case of either (a) or (b), which default could reasonably be expected to cause material harm to the Company or any Project Company.

ARTICLE IX     
TRANSFERS, CHANGES OF CONTROL AND INDEMNIFICATION

Section 9.1    Prohibited Transfers.  No Member shall sell, transfer, assign, convey, pledge, mortgage, encumber, hypothecate or otherwise dispose of all or any part of its Membership Interests or any interest, rights or obligations with respect thereto, or permit a Change of Control of any entity subject to a restriction on Change of Control under this Article IX (any such action, a “Transfer”), except as provided in this Article IX.  Prior to the end of the Recapture Period with respect to any System, no Transfer of a Person that directly or indirectly owns an interest in a Member will be permitted if the transfer would cause the Company or Project Company to become a Disqualified Person or cause the Systems, or any portion thereof, to be classified as “tax-exempt use property” for purposes of Section 168 of the Code.  After the Recapture Period has ended, the limitations pursuant to this Article IX on Change of Control of any Member shall apply only to such Member directly and shall not apply to any Person that directly or indirectly owns an interest in such Member.  Any attempted Transfer of a Membership Interest that does not comply with this Article IX shall be null and void and not recognized by the Company for any purpose.

Section 9.2    Conditions to Transfers of Class A Membership Interests or Changes of Control of Managing Member.  Except as otherwise provided in this Article IX, all Transfers of Class A Membership Interests and all Transfers by Bloom of its interests in Clean Technologies must satisfy the following conditions:  
(a)    The transferring Member must give written notice of the proposed Transfer to each of the Members not less than 10 days prior to the effective date of the proposed Transfer.
(b)    The transferring Member and the prospective transferee must each execute, acknowledge and deliver to the Company (as applicable) an assignment agreement substantially in the form of Exhibit D and such other instruments as the other Members may reasonably deem necessary or appropriate to confirm the transferor’s intention that the transferee become a Member in its place and the transferee’s undertaking to be bound by the terms of this 

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Agreement and to assume the obligations of the transferor under this Agreement and, to the extent the transferor is to be released from such obligations, the ECCA.  The prospective transferee shall make the representations and warranties and be bound by the covenants in Sections 3.11 and 3.12 as of the date of such Transfer; provided that, unless the transferee becomes the Managing Member the covenants in Sections 3.12(b), (c), (d), (g) and (h) shall not apply;
(c)    The Transfer will not violate any securities laws or any other applicable federal or state laws rules or regulations, or the order of any court or administrative body having jurisdiction over the Company or the Project Company or any of their assets or any material contract, lease, security, indenture or agreement binding on the Company or the Project Company or their respective assets;
(d)    The Transfer will not result in a termination of the Company or the Project Company under Section 708(b)(1)(B) of the Code, unless the transferor has indemnified the other Members against any adverse tax effects in a manner reasonably acceptable to the other Members;
(e)    The Transfer will not cause the Company or Project Company to become a Disqualified Person or cause the Systems, or any portion thereof, to be classified as “tax-exempt use property” for purposes of Section 168 of the Code;
(f)    The Transfer will not cause there to be more than two Class A Members;
(g)    The transferring Member and the prospective transferee shall pay any out-of-pocket expenses of the Company, the Project Company or the other Members resulting from the Transfer;
(h)    The transferring Member and the prospective transferee shall have all permits and consents required for such Transfer;
(i)    The Transfer will not affect the status of the Project Company as an Exempt Wholesale Generator nor will it cause a disqualification under the REPS Act or any of the Tariffs;
(j)    The Transfer will not require the Company to register as an investment company under the 1940 Investment Company Act;
(k)    If the Transfer would occur prior to the end of the Recapture Period with respect to any of the Existing Systems, the Transfer will not be effective unless the transferring Member delivers a written opinion of a nationally-recognized law firm, in form and substance satisfactory to the non-transferring Members, that the Transfer will not cause a Class A Recapture Event;

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(l)    The transferee must be recognized nationally as having substantial experience managing and operating fuel cell facilities, unless otherwise approved by Class B Members owning the majority of Class B Membership Interests; 
(m)    The Transfer must not cause any adverse tax consequences to the Company, any other Member or the Project Company, in the written opinion of tax counsel reasonably acceptable to the Class B Member; 
(n)    Prior to the Flip Date, the Transferee must be a Qualified Transferee and the Class B Member shall have consented to such Transfer, such consent not to be unreasonably withheld; and
(o)    The Transfer will not cause a breach of, or a default under, the Credit Documents.

Section 9.3    Conditions to Transfers of Class B Membership Interests.  Except as otherwise provided in this Article IX, all Transfers of Class B Membership Interests must satisfy the following conditions:
(a)    The transferring Member must give written notice of the proposed Transfer to each of the Members not less than 10 days prior to the effective date of the proposed Transfer;
(b)    The transferring Member and the prospective transferee must each execute, acknowledge and deliver to the Company (as applicable) an assignment agreement substantially in the form of Exhibit D and such other instruments as the Managing Member may reasonably deem necessary or appropriate to confirm the transferor’s intention that the transferee become a Member in its place and the transferee’s undertaking to be bound by the terms of this Agreement and to assume the obligations of the transferor under this Agreement and, to the extent the transferor is to be released from such obligations, the ECCA;
(c)    The Transfer will not violate any securities laws or any other applicable federal or state laws rules or regulations, or the order of any court or administrative body having jurisdiction over the Company or the Project Company or any of their assets or any material contract, lease, security, indenture or agreement binding on the Company or the Project Company or their respective assets;
(d)    The Transfer will not result in a termination of the Company or the Project Company under Section 708(b)(1)(B) of the Code, unless the transferor has indemnified the other Members against any adverse tax effects in a manner reasonably acceptable to the other Members;

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(e)    The Transfer will not cause the Company or Project Company to become a Disqualified Person or cause the Portfolio, or any portion thereof, to be classified as “tax-exempt use property” for purposes of Section 168 of the Code;
(f)    The Transfer will not cause there to be more than three Class B Members; provided that, solely for purposes of making such determination in respect of this paragraph, any Class B Member and any other Class B Member that is an Affiliate of such Class B Member shall be deemed to be a single Class B Member;
(g)    The transferring Member and the prospective transferee shall pay any out-of-pocket expenses of the Company, the Project Company or the other Members resulting from the Transfer;
(h)    The transferring Member and the prospective transferee shall have all permits and consents required for such Transfer;
(i)    The Transfer will not affect the status of any Project Company as an Exempt Wholesale Generator nor will it cause a disqualification under the REPS Act or any of the Tariffs;
(j)    The Transfer will not require the Company to register as an investment company under the 1940 Investment Company Act;
(k)    If the Transfer would occur prior to the end of the Recapture Period for any of the Existing Systems, the Transfer will not be effective unless the transferring Member delivers a written opinion of a nationally-recognized law firm, in form and substance satisfactory to the non-transferring Members, that the Transfer will not cause a Class B Recapture Event;
(l)    Transferee shall be reasonably acceptable to the Class A Members.  
(m)    Such Transfer by a Class B Member, other than a Transfer to an Affiliate of the transferor or a Transfer to an existing Class B Member, shall not be a Transfer of less than an amount equal to the lesser of (i) 30% of the total Class B Membership Interests or (ii) such Member’s entire Class B Membership Interest;
(n)    For Transfers prior to the earlier of (i) the contribution by the Class B Member to the Company of 100% of its Equity Commitment Amount or (ii) the Subsequent Funding Termination Date, the transferee must carry an investment grade senior unsecured rating of at least A3 / A- or the Credit Suisse Guaranty must be in full force and effect;  
(o)    Except for transfers described in Section 9.5 below, the transferee of a Class B Membership Interest must be a passive institutional investor or (i) is not a competitor of Clean Technologies or its affiliates, (ii) is not in litigation or other material dispute with the 

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Clean Technologies, and (iii) makes substantially the same representations, warranties, and covenants as Class B Members made pursuant to this Agreement;
(p)    Transfer must not cause any adverse tax consequences to the Company, any other Member or the Project Company, in the written opinion of tax counsel reasonably acceptable to the Managing Member; 
(q)    The costs of such Transfer must be borne by the transferee; and
(r)    The Transfer will not cause a breach of, or a default under, the Credit Documents.

Section 9.4    Conditions to Changes of Control of Upstream Entities.  With respect to any Transfer that is a Change of Control of a Member:
(a)    The Transfer will not violate any securities laws or any other applicable federal or state laws rules or regulations, or the order of any court or administrative body having jurisdiction over the Company or the Project Company or any of their assets or any material contract, lease, security, indenture or agreement binding on the Company or the Project Company or their respective assets;
(b)    The Transfer will not result in a termination of the Company or the Project Company under Section 708(b)(1)(B) of the Code, unless the transferor has indemnified the other Members against any adverse tax effects in the manner set forth in Section 9.4(h);
(c)    The Transfer will not cause the Company or Project Company to become a Disqualified Person or cause the Portfolio, or any portion thereof, to be classified as “tax-exempt use property” for purposes of Section 168 of the Code;
(d)    The transferring Person and the prospective transferee shall pay any out-of-pocket expenses of the Company, the Project Company or the other Members resulting from the Transfer;
(e)    The transferring entity and the prospective transferee shall have all permits and consents required for such Transfer as they apply to the Company and the Project Company;
(f)    The Transfer will not affect the status of any Project Company as an Exempt Wholesale Generator nor will it cause a disqualification under the REPS Act or any of the Tariffs;
(g)    The Transfer will not require the Company to register as an investment company under the 1940 Investment Company Act; and

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(h)    With respect to any Transfer that would result in the termination of the Company or the Project Company as set forth in Section 9.4(b), the transferring Member shall indemnify the Company and the other Members against any adverse effects in a manner reasonably acceptable to the other Members.  In connection with such Transfer, the transferring Member shall (i) deliver to each non-transferring Member a guaranty (A) from an entity acceptable to the non-transferring Members having the Required Ratings on the effective date of such Transfer, (B) in an amount not less than the aggregate estimated adverse tax effects with respect to such Transfer and (C) in form and substance satisfactory to the non-transferring Members, or (ii) post collateral in the form of (A) cash, (B) a letter of credit from an Acceptable Credit Party, or (C) liquid securities acceptable to the non-transferring Members, in an amount not less than the aggregate estimated adverse tax effects with respect to such Transfer and in each case in form and substance acceptable to the non-transferring Members.

Section 9.5    Certain Permitted Transfers.  Except as otherwise provided in Section 9.1 and this Section 9.5, notwithstanding the provisions set forth in Sections 9.2 and 9.3, the following Transfers (the “Permitted Transfers”) may be made at any time and from time to time, without restriction and without notice to, approval of, filing with, consent by, or other action of or by, any Member or other Person:
(a)    The issuance of Class B Membership Interests to Mehetia pursuant to the ECCA;
(b)    (i) The grant of any security interest in any Class A Membership Interest or any Class B Membership Interest pursuant to any security agreement any Class A Member or Class B Member, as applicable, may enter into with lenders; provided that the requirements in Sections 9.2(a), (c), (d) and (e) shall be satisfied in respect of any such grant of a security interest in Class A Membership Interests, and Sections 9.3(a), (c), (d) and (e) shall be satisfied in respect of a grant of a security interest in a Class B Membership Interest, and (ii) any Transfer in connection with any foreclosure or other exercise of remedies in respect of any Class A Membership Interest or Class B Membership Interest subject to a security interest referred to in this Section 9.5(b)(i); provided, however, that the requirements in Sections 9.2(a), (b), (c), (d), (e), (f), (h), (i), (j), (k), (l) and (m) shall be satisfied in respect of any such Transfer of Class A Membership Interests and the requirements in Sections 9.3(a), (b), (c), (d), (e), (f), (h), (i), (j), (k), (l) and (m) shall be satisfied in respect of any such Transfer of Class B Membership Interests; and provided, further that the provisions of Section 9.2(f) (with respect to Class A Membership Interests) and Section 9.3(f) (with respect to Class B Membership Interests) shall not apply to any Transfer resulting from foreclosure upon, or subsequent transfer of, such Membership Interests;
(c)    The Transfer of any Membership Interest solely to an Affiliate of a Member; provided, the requirements set forth in Sections 9.2(a), (b), (c), (d), (e), (f), (g), (h), (i), (j), (k), (l) and (m) shall be satisfied in respect to such Transfer of Class A Membership Interests, and, in the case of a Transfer by a Class B Member, the requirements set forth in Sections 9.3, 

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except the requirement in Section 9.3(a), which requirement shall be deemed satisfied upon a three day notice, and except the requirements in Sections 9.3(b), (g), (k), (l), (n), (p) and (q), shall be satisfied with respect to such Transfer of Class B Membership Interests (though the requirement in Section 9.3(k) must be met if the transferee is an entity other than an association taxable as a corporation for federal income tax purposes); and
(d)    Any Transfer in accordance with Section 9.7 (Purchase Option) or Section 9.8 (Sale Option); provided, however, that the requirements in Sections 9.3(b) and (c) shall be satisfied in respect of any such Transfer, and solely with respect to a Transfer pursuant to Section 9.4, Sections 9.3(c), (d), (e), (g), (i), (j) and (k), shall be satisfied in respect of any such Transfer.

Section 9.6    [Intentionally omitted].  

Section 9.7    Purchase Option.  
(a)    The Class A Member shall have the right, but not the obligation (the “Purchase Option”), at the election of the Class A Member on either the Flip Date or the eleventh anniversary of the Initial Funding Date (the “Purchase Option Date”), upon giving the Company and all other Members 60 days’ written notice, to purchase all (but not less than all) of the outstanding Class B Interests from all of the Class B Members by exercise of the Purchase Option (the “Purchase Option Exercise Notice”).
(b)    The consideration for the Transfer of the Class B Membership Interests to the Class A Member pursuant to the Purchase Option shall be an amount (payable in United States dollars) equal to the Purchase Option Price.  
(c)    If the Purchase Option is exercised, the closing of such Transfer shall occur on the Business Day that is (i) 60 days after the applicable Purchase Option Exercise Notice is given or (ii) such later date as may be required to obtain either a determination of the Purchase Option Price or any applicable consents or approvals or satisfy any reporting or waiting period under any applicable Legal Requirements.
(d)    If the Purchase Option is exercised, at the closing of the Transfer, (1) each Class A Member which has given a Purchase Option Exercise Notice shall pay (by wire transfer of immediately available United States dollars to such United States bank accounts as Class B Members may designate in a written notice to the Company and Class A Members no later than five Business Days prior to the closing date for the Transfer pursuant to the Purchase Option) an amount equal to the Purchase Option Price (determined in accordance with Section 9.7(b)), and (2) each Class B Member shall take the following actions:  (i) such Class B Member shall Transfer to the applicable Class A Member all right, title and interest in and to the Class B Membership Interests, free and clear of all Encumbrances other than Permitted Encumbrances; (ii) such Class B Member shall be required to make the representations on Schedule 9 attached 

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hereto to the applicable Class A Member and the Company; and (iii) such Class B Member shall take all such further actions and execute, acknowledge and deliver all such further documents that are necessary to effectuate the Transfer of the Class B Membership Interests contemplated by this section.  Upon the closing of such Transfer, (1) all of such Class B Member’s obligations and liabilities associated with the Class B Membership Interests which are the subject of such Transfer will terminate except those obligations and liabilities accrued through the date of such closing, (2) such Class B Member shall have no further rights as a Member, and (3) all the rights, obligations and liabilities associated with the Class B Membership Interests which are the subject of such Transfer shall become the rights, obligations and liabilities of each Person acquiring such Class B Membership Interests.

Section 9.8    Sale Option.  
(a)    The Class B Member shall have the right, but not the obligation (the “Sale Option”), on the tenth anniversary of the Original Date (the “Sale Option Date”), upon giving the Company and all other Members at least 60 days’ advance written notice, to sell all (and not less than all) of its Class B Membership Interests to the Class A Member by exercise of the Sale Option (the “Sale Notice”).  
(b)    The consideration for the Transfer of the Class B Membership Interests to the Class A Member pursuant to the Sale Option shall be an amount (payable in United States dollars) equal to the Sale Price.  
(c)    If the Sale Option is exercised, the closing of such Transfer shall occur on (i) the tenth anniversary of the Execution Date (or, if not a Business Day, the Business Day immediately preceding the tenth anniversary of the Execution Date) or (ii) such later date as may be required to obtain either a determination of the Sale Price or any applicable consents or approvals or satisfy any reporting or waiting period under any applicable Legal Requirements.
(d)    If the Sale Option is exercised, at the closing of the Transfer, (1) each Class A Member which has received a Sale Notice shall pay (by wire transfer of immediately available United States dollars to such United States bank accounts as a Class B Member selling its respective Class B Interests may designate in a written notice to the Company and Class A Members no later than five Business Days prior to the closing date for the Transfer pursuant to the Sale Option) an amount equal to the Sale Price (determined in accordance with Section 9.8(b)), and (2) such Class B Member shall take the following actions:  (i) such Class B Member shall Transfer to the applicable Class A Member all right, title and interest in and to the Class B Membership Interests, free and clear of all Encumbrances other than Permitted Encumbrances; (ii) such Class B Member shall be required to make the representations on Schedule 9 attached hereto to the applicable Class A Member and the Company; and (iii) such Class B Member shall take all such further actions and execute, acknowledge and deliver all such further documents that are necessary to effectuate the Transfer of the Class B Membership Interests contemplated by this section.  Upon the closing of such Transfer, (A) all of such Class B 

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Member’s obligations and liabilities associated with the Class B Membership Interests which are the subject of such Transfer will terminate except those obligations and liabilities accrued through the date of such closing, (B) such Class B Member shall have no further rights as a Member, and (C) all the rights, obligations and liabilities associated with the Class B Membership Interests which are the subject of such Transfer shall become the rights, obligations and liabilities of each Person acquiring such Class B Membership Interests.

Section 9.9    Regulatory and Other Authorizations and Consents.  
(a)    In connection with any Transfer pursuant to Sections 9.7 or 9.8 (the “Designated Transfers”), each Member involved shall use all commercially reasonable efforts to obtain all authorizations, consents, orders and approvals of, give all notices to and make all filings with, all Governmental Authorities and third parties that may be or become necessary for the Designated Transfers, its execution and delivery of, and the performance of its obligations under, this Agreement or other Transaction Documents in connection with any such Designated Transfer and will cooperate fully with the other Members in promptly seeking to obtain all such authorizations, consents, orders and approvals, giving such notices and making such filings, including the provision to such third parties and Governmental Authorities of such financial statements and other publicly available financial information with respect to such Member or, if applicable, such Member’s guarantor, as the case may be, as such third parties or Governmental Authorities may reasonably request; provided, however, that no Member involved shall have any obligation to pay any consideration to obtain any such consents.  In addition, the Members involved shall keep each other reasonably apprised of their efforts to obtain necessary consents and waivers from third parties or Governmental Authorities and the responses of such third parties and Governmental Authorities to requests to provide such consents and waivers.
(b)    Without limiting the generality of Section 9.9(a), each Member shall make such filings as may be required under the HSR Act, the Federal Power Act, or any state Legal Requirements relating to the ownership or control of the Systems.
(i)    To the extent required by the HSR Act, each Member involved in a Designated Transfer shall (i) file or cause to be filed, as promptly as practicable but in no event later than the fifteenth Business Day after the delivery of any Purchase Option Exercise Notice, as applicable, with the Federal Trade Commission and the United States Department of Justice, all reports and other documents required to be filed by such Member under the HSR Act concerning the Designated Transfer and (ii) promptly comply with or cause to be complied with any requests by the Federal Trade Commission or the United States Department of Justice for additional information concerning the Designated Transfer, in each case so that the initial thirty day waiting period applicable under the HSR Act shall expire as soon as practicable.  Each Member involved in a Designated Transfer agrees to request, and to cooperate with the other Members involved in requesting, early termination of any applicable waiting period under the HSR Act.  Each of the Class A Members involved in a Designated Transfer shall be responsible for 

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the filing fees incurred by all Members involved in the Designated Transfer in connection with the initial filings required by the HSR Act in connection with the Designated Transfers (pro rata in proportion to the percentage of Class B Membership Interests each such Class A Member will acquire in connection with the Designated Transfer).  Except as expressly provided in the prior sentence with respect to filing fees, each Member involved in a Designated Transfer will be responsible for its own fees and expenses, including any fees and expenses of counsel, accountants or other professional advisors.
(ii)    To the extent required by the Federal Power Act, each Member involved in a Designated Transfer shall (i) file or cause to be filed, as promptly as practicable but in no event later than the twenty-first Business Day after the delivery of any Purchase Option Exercise Notice, as applicable, an application for approval of the Designated Transfer pursuant to Section 203 of the Federal Power Act, and (ii) as promptly as practicable but in no event later than the tenth Business Day after the delivery of any Purchase Option Exercise Notice, as applicable, provide to the Company and the Managing Member information needed for the Company to file an application for approval of the Designated Transfer under Section 203 of the Federal Power Act.

Section 9.10    Admission.  Any transferee of all or part of any Membership Interests pursuant to a Transfer made in accordance with this Agreement shall be admitted to the Company as a substitute Member upon its execution of a counterpart to this Agreement.

Section 9.11    Security Interest Consent.  If any Member grants a security interest in any Membership Interest, upon request by such Member, each other Member will execute and deliver to any person holding such security interest (for itself and/or for the benefit of other lenders) such acknowledgments, consents or other instruments as such person may reasonably request to confirm that such grant and any foreclosure or other exercise of remedies in respect of such Membership constitutes a Permitted Transfer under this Agreement.

Section 9.12    Indemnification; Other Rights of the Members.  
(a)    Beginning on the Original Date (or, with respect to any additional Member that becomes a Member after the Original Date, on the first date on which such Person becomes a Member hereunder) and continuing thereafter, Clean Technologies agrees to indemnify, defend and hold harmless the Investor Indemnified Parties from and against any and all Investor Indemnified Costs; provided, however, that in no event will Clean Technologies’ aggregate obligation (including any prior indemnity payments by Clean Technologies under this Agreement or under the ECCA) to indemnify the Investor Indemnified Parties hereunder exceed 100% of the Funding Payments of the Class B Member made to date except with respect to Investor Indemnified Costs (r) resulting from any payment for indemnification, reimbursement of costs or expenses, payments for damages or other compensatory payments made by the Company pursuant to or in connection with the Project Company LLC Agreement or the New ECCA, (s) resulting from fraud or willful misconduct, (t) resulting from failure to pay any amount due to 

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Investor Indemnified Parties under the Transaction Documents, (u) resulting from a Third Party Claim, (v) resulting from the failure to enforce a Material Contract with an Affiliate of the Indemnifying Party, (w) resulting from Project Company (or any of the Systems) not qualifying for (or becoming disqualified under) the REPS Act or the Tariffs as a result of any act or omission by Bloom or any Affiliate of Bloom (including, without limitation, (i) Bloom failing to achieve commercial operation (as defined in the QFCP-RC Tariff) of 5 MW of Systems by March 31, 2013 (unless such date has been extended in accordance with the QFCP-RC Tariff), (ii) Bloom failing to achieve commercial operation (as defined in the QFCP-RC Tariff) of 30 MW of Systems, of which at least 20 MW of Systems were actually manufactured by Bloom in the State of Delaware by September 30, 2014 (unless such date has been extended in accordance with the QFCP-RC Tariff), (iii) Bloom failing to be manufacturing fuel cells capable of being powered by renewable fuels from a permanent manufacturing facility located in the State of Delaware as of the date of Commencement of Operations (as defined in the MESPA) of the full nameplate capacity of the Portfolio, or (iv) any of the acts or omissions set forth in Section 4.3 of the MESPA), (x) resulting from Bloom failing to be in compliance with the Letter Agreement (including, if so required by the State of Delaware, posting the security referred to in the Letter Agreement upon or prior to the Commencement of Operation of the first System), (y) resulting from any surcharges pursuant to the Tariffs being deemed a tax under Delaware law, or (z) resulting from any fees, costs, expenses or liabilities relating to the Tariff Indemnity Letters of Credit or ITC Indemnity Letter of Credit. Notwithstanding anything to the contrary, Clean Technologies agrees to indemnify, defend and hold harmless the Investor Indemnified Parties for all damages, losses, claims, liabilities, demands, charges, suits, Taxes, penalties, costs, and reasonable expenses (including court costs and reasonable attorneys’ fees and expenses of one law firm for all Investor Indemnified Parties) related to or arising out of a CT Indemnifiable Claim.
(b)    Beginning on the Original Date (or, with respect to any additional Member that becomes a Member after the Original Date, on the first date on which such Person becomes a Member hereunder) and continuing thereafter, the Class B Member agrees to indemnify, defend and hold harmless the Clean Technologies Indemnified Parties from and against any and all Clean Technologies Indemnified Costs; provided, however, except with respect to Clean Technologies Indemnified Costs (w) resulting from fraud or willful misconduct, (x) resulting from failure to pay any amount due to Clean Technologies Indemnified Parties under the Transaction Documents, (y) resulting from a Third Party Claim, or any CT Indemnifiable Claim, or (z) resulting from the failure to enforce a Material Contract with an Affiliate of the Indemnifying Party, in no event will the Class B Member’s aggregate obligation (including any prior indemnity payments by the Class B Member under this Agreement or under the ECCA) to indemnify the Clean Technologies Indemnified Parties hereunder exceed 100% of the Funding Payments of the Class B Member made to date.
(c)    Other than with respect to Indemnified Costs resulting from Third Party Claims, no claim for indemnification may be made with respect to any Indemnified Costs (other than fraud, willful misconduct, or failure to pay any amount due to Indemnified Parties under 

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any Transaction Document) until the aggregate amount of such costs for which indemnification is (or previously has been) sought by the Indemnified Party under all Transaction Documents exceeds $175,000 and once such threshold amount of claims has been reached, the relevant Indemnified Party and its Affiliates shall have the right to be indemnified only to the extent the amount of Indemnified Costs claimed exceed such threshold amount.  Claims for indemnification under this Company LLC Agreement and the other Transaction Documents shall not be duplicative of one another and shall not allow for duplicative recoveries.

Section 9.13    Indemnification of Members by the Company.  Except as otherwise set forth in this Agreement, each Member and any Affiliate of a Member, and each of their respective officers, directors, shareholders, employees and agents (each, a “Member Party”) shall be exculpated from liability for and defended, indemnified and held harmless by the Company from all Claims arising out of the performance by such Member Party of its obligations under this Company LLC Agreement so long as such Member Party acted in good faith and in a manner reasonably believed by it to be in the best interest of or not opposed to the interest of the Company; provided, however, that no Member Party shall be shall be exculpated from liability for and defended, indemnified and held harmless or entitled to the payment of an indemnity claim under this Article IX.

Section 9.14    Direct Claims.  In any case in which an Indemnified Party seeks indemnification under Section 9.12 that is not subject to Section 9.15 because no Third Party Claim is involved, the Indemnified Party shall promptly notify the Indemnifying Party in writing of any amounts that the Indemnified Party claims are subject to indemnification under the terms of this Article IX.  The failure of the Indemnified Party to exercise promptness in such notification shall not amount to a waiver of such claim, except to the extent the resulting delay materially and adversely prejudices the position of the Indemnifying Party with respect to such claim.

Section 9.15    Third Party Claims.  An Indemnified Party shall give written notice to the Indemnifying Party within 10 days after it has actual knowledge of commencement or assertion of any Third Party Claim in respect of which the Indemnified Party may seek indemnification under Section 9.12.  Such notice shall state the nature and basis of such Third Party Claim and the events and the amounts thereof to the extent known.  Any failure to so notify the Indemnifying Party shall not relieve the Indemnifying Party from any liability that the Indemnifying Party may have to the Indemnified Party under this Article IX, except to the extent the failure to give such notice materially and adversely prejudices the Indemnifying Party.  In case any such action, proceeding or claim is brought against an Indemnified Party, so long as it has acknowledged in writing to the Indemnified Party that it is liable for such Third Party Claim pursuant to this Section 9.15, the Indemnifying Party shall be entitled to participate in and, unless in the reasonable judgment of the Indemnified Party a conflict of interests between it and the Indemnifying Party may exist in respect of such Third Party Claim or such Third Party Claim entails a material risk of criminal penalties or civil fines or non monetary sanctions being imposed on the Indemnified Party or a risk of materially adversely affecting the Indemnified 

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Party’s business (a “Third Party Penalty Claim”), to assume the defense thereof, with counsel selected by the Indemnifying Party and reasonably satisfactory to the Indemnified Party, and after notice from the Indemnifying Party to the Indemnified Party of its election so to assume the defense thereof, the Indemnifying Party shall not be liable to the Indemnified Party for any legal or other expenses subsequently incurred by the latter in connection with the defense thereof other than reasonable costs of investigation or defending such portion of such Third Party Penalty Claim; provided nothing contained herein shall permit Clean Technologies to control or participate in any Tax contest or dispute involving a Class B Member or any Affiliate of a Class B Member, or permit a Class B Member to control or participate in any Tax contest or dispute involving any Affiliate of Clean Technologies other than the Company and the Project Company; and, provided, further, the Parties agree that the handling of any Tax contests involving the Company will be governed by Section 7.7.  In the event that (i) the Indemnifying Party advises an Indemnified Party that the Indemnifying Party will not contest a claim for indemnification hereunder, (ii) the Indemnifying Party fails, within 30 days of receipt of any indemnification notice to notify, in writing, such Indemnified Party of its election, to defend, settle or compromise, at its sole cost and expense, any such Third Party Claim (or discontinues its defense at any time after it commences such defense) or (iii) in the reasonable judgment of the Indemnified Party, a conflict of interests between it and the Indemnifying Party exists in respect of such Third Party Claim or the action or claim is a Third Party Penalty Claim, then the Indemnified Party may, at its option, defend, settle or otherwise compromise or pay such action or claim or Third Party Claim in each case, at the sole cost and expense of the Indemnifying Party.  In any event, unless and until the Indemnifying Party elects in writing to assume and does so assume the defense of any such claim, proceeding or action, the Indemnifying Party shall be liable for the Indemnified Party’s reasonable costs and expenses arising out of the defense, settlement or compromise of any such action, claim or proceeding.  The Indemnified Party shall cooperate to the extent commercially reasonable with the Indemnifying Party in connection with any negotiation or defense of any such action or claim by the Indemnifying Party.  The Indemnifying Party shall keep the Indemnified Party fully apprised at all times as to the status of the defense or any settlement negotiations with respect thereto.  If the Indemnifying Party elects to defend any such action or claim, then the Indemnified Party shall be entitled to participate in such defense with counsel of its choice at its sole cost and expense unless otherwise specified herein; provided that any such participation of the Indemnified Party shall be at the Indemnifying Party’s sole cost and expense to the extent such participation relates to a Third Party Penalty Claim.  If the Indemnifying Party does not assume such defense, the Indemnified Party shall keep the Indemnifying Party apprised at all times as to the status of the defense; provided, however, that the failure to keep the Indemnifying Party so informed shall not affect the obligations of the Indemnifying Party hereunder.  The Indemnifying Party shall not be liable for any settlement of any action, claim or proceeding effected without its written consent; provided, however, that the Indemnifying Party shall not unreasonably withhold, delay or condition any such consent.  Notwithstanding anything in this Section 9.15 to the contrary, the Indemnifying Party shall not, without the Indemnified Party’s prior written consent, (i) settle or compromise any claim or consent to entry of judgment in respect thereof which involves any condition other 

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than payment of money by the Indemnified Party, (ii) settle or compromise any claim or consent to entry of judgment in respect thereof without first demonstrating to Indemnified Party the ability to pay such claim or judgment, or (iii) settle or compromise any claim or consent to entry of judgment in respect thereof that does not include, as an unconditional term thereof, the giving by the claimant or the plaintiff to the Indemnified Party, a full and complete release from all liability in respect of such claim.

Section 9.16    No Duplication.  Any liability for indemnification under this Article IX shall be determined without duplication of recovery.  Without limiting the generality of the prior sentence, if a statement of facts, condition or event constitutes a breach of more than one representation, warranty, covenant or agreement which is subject to the indemnification obligation in Section 9.12, only one recovery of Indemnified Costs per Indemnified Party shall be allowed.

Section 9.17    Sole Remedy.  Except in the case of fraud, willful misconduct or failure to pay and except for claims brought under Article 6 of the ECCA, the enforcement of the claims of the Parties under Section 6.6, Section 6.7, Section 6.8, Section 6.9 or Article IX of this Agreement, or the enforcement of claims of the Project Company under the Repurchase Agreement,  are the sole and exclusive remedies that a Party shall have under this Agreement for the recovery of Indemnified Costs; provided, however, that notwithstanding anything to the contrary in this Agreement, each Party hereby reserves all equitable remedies.

Section 9.18    Survival.  All representations, warranties, covenants and obligations made or undertaken by a Party in this Agreement or in any other Transaction Document are material, have been relied upon by the other Parties and, except as otherwise provided in Section 9.18 or elsewhere in this Agreement (or, with respect to any representations, warranties, covenants and obligations made or undertaken in any other Transaction Document, in such Transaction Document), shall continue in full force and effect, together with the associated rights of indemnification, indefinitely.

Section 9.19    Final Date for Assertion of Indemnity Claims.  All claims by an Indemnified Party for indemnification pursuant to this Article IX resulting from breaches of representations or warranties in Article III of this Agreement shall be forever barred unless the other Party is notified within eighteen (18) months after the date such representation or warranty is made; provided that if written notice of a claim for indemnification has been given by an Indemnified Party on or prior to the last day of the respective foregoing period, then the obligation of the other Party to indemnify such Indemnified Party pursuant to this Article IX shall survive with respect to such claim until such claim is finally resolved.

Section 9.20    Reasonable Steps to Mitigate.  Each Indemnified Party will take, at the Indemnifying Party’s own reasonable cost and expense, all reasonable commercial steps identified by Indemnifying Party to the Indemnified Parties to mitigate all Indemnified Costs (other than any such Indemnified Costs that are Taxes), which steps may include availing itself 

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of any defenses, limitations, rights of contribution, claims against third Persons and other rights at law or equity.  The Indemnified Parties will provide such evidence and documentation of the nature and extent of the Indemnified Costs as may be reasonably requested by the Indemnifying Party.

Section 9.21    Net of Insurance Benefits.  All Indemnified Costs shall be net of insurance recoveries from insurance policies of the Project Company (including under the existing title policies) to the extent that any proceeds of such policies, less any costs, expenses or premiums incurred by the Project Company in connection therewith, are distributed by the Project Company to the Company and are in turn distributed by the Company to the Indemnified Party; provided, however, such amount shall account for any costs or expenses incurred by the Indemnified Party in connection with obtaining insurance proceeds with respect to any breach or nonperformance hereunder.

Section 9.22    No Consequential Damages.  Indemnified Costs shall not include, and an Indemnifying Party shall have no obligation to indemnify any Indemnified Party for or in respect of, any punitive, consequential or exemplary damages of any nature including but not limited to damages for lost profits or revenues or the loss or use of such profits or revenue, loss by reason of plant shutdown or inability to operate at rated capacity, increased operating expenses of plant or equipment, increased costs of purchasing or providing equipment, materials, labor, services, costs of replacement, power or capital, debt service fees or penalties, inventory or use charges, damages to reputation, damages for lost opportunities, or claims of the Project Company’s customers, members or affiliates, regardless of whether said claim is based upon contract, warranty, tort (including negligence and strict liability) or other theory of law unless payable by such Indemnified Party as part of a Third Party Claim; provided, however, that the lost profits or revenues (and the loss or use thereof) language set forth in this Section 9.22 shall not be interpreted to exclude from Indemnified Costs any damages, losses, claims, liabilities, demands charges, suits, Taxes, penalties, costs or expenses that would otherwise be included within the definition of Indemnified Costs because they result from a reduction in the profits of the Project Company, the Company, or both.

Section 9.23    Payment of Indemnification Claims.  All claims for indemnification shall be paid by Indemnifying Party in immediately available funds in U.S. dollars.  Any undisputed portion of an indemnification claim shall be paid promptly by the Indemnifying Party to the Indemnified Parties involved.  An Indemnifying Party may dispute any portion of an indemnification claim, provided, however, that such disputed indemnification claim shall be paid promptly by the Indemnifying Party to the Indemnified Party together with interest at a market rate upon the final determination of the payable amount of the claim (if any) by a court of competent jurisdiction.  

Section 9.24    Repayment; Subrogation.  If the amount of any Indemnified Costs, at any time after the making of an indemnity payment in respect thereof, is reduced by recovery, settlement or otherwise under any insurance coverage (excluding any proceeds from self 

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insurance or flow through insurance policies) or under any claim, recovery, settlement or payment by or against any other entity, the amount of such reduction, less any costs, expenses or premiums incurred in connection therewith, must promptly be repaid by the Indemnified Party to the Indemnifying Party net of any Taxes imposed upon the Indemnified Party in respect of such amounts, but taking into account any Tax benefit the Indemnified Party receives as a result of such repayment.  Upon making any indemnity payment (other than any indemnity payment relating to Taxes), the Indemnifying Party will, to the extent of such indemnity payment, be subrogated to all rights of the Indemnified Party against any third party, except third parties that provide insurance coverage to the Indemnified Party or its Affiliates, in respect of the Indemnified Costs to which the indemnity payment relates.  Without limiting the generality or effect of any other provision hereof, each such Indemnified Party and the Indemnifying Party shall duly execute upon request all instruments reasonably necessary to evidence and perfect the above described subrogation rights, and otherwise cooperate in the prosecution of such claims at the direction of the Indemnifying Party.  Nothing in this Section 9.24 will be construed to require any Party to obtain or maintain any insurance coverage.

ARTICLE X     
DISSOLUTION AND WINDING-UP

Section 10.1    Events of Dissolution.  The Company shall be dissolved and its affairs shall be wound up upon the first to occur of any of the following:
(a)    the written consent of the Members representing a Class Majority Vote to dissolve and terminate the Company after the final Recapture Period;
(b)    the entry of a decree of judicial dissolution under Section 18-802 of the Act;
(c)    the occurrence of the LLC Agreement Termination Date;
(d)    the disposition of all or substantially all of the Company’s business and assets after the final Recapture Period;
(e)    the issuance of a final, nonappealable court order which makes it unlawful for the business of the Company to be carried on; or
(f)    at any time there are no members of the Company unless the business of the Company is continued in accordance with the Act.

Section 10.2    Distribution of Assets.  
(a)    The Members hereby appoint the Managing Member to act as the liquidator upon the occurrence of one of the events in Section 10.1.  Upon the occurrence of such an event, the liquidator will proceed diligently to wind up the affairs of the Company and make 

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final distributions as provided herein and in the Act.  The liquidator may sell, and will use commercially reasonable efforts to obtain the best possible price for, any or all Company property, including to Members.  In no event, without the approval of Members by a Class Majority Vote, will a sale to a Member be for an amount that is less than fair market value (determined by the Appraisal Method if the Members (by a Class Majority Vote) are unable to agree on the fair market value).
(b)    The liquidator will first pay, satisfy or discharge from Company funds all of the debts, liabilities and obligations of the Company (including all expenses incurred in liquidation) or otherwise make adequate provision for payment and discharge thereof (including the establishment of a cash escrow fund for contingent, conditional or unmatured liabilities in such amount and for such term as the liquidator may reasonably determine) in the order of priority as provided by law.
(c)    All assets of the Company will be treated as if sold, and the gain treated as realized on those assets will be allocated first to Members with deficits in their Capital Accounts (in the ratio of the deficits if more than one Member’s Capital Account is in deficit) in order to eliminate the deficits.
(d)    Remaining gain or loss will be allocated next to the Class B Member in an effort to set the Capital Account of the Class B Member at a level that would allow it to reach the Target IRR out of the liquidating distributions if the Target IRR has not already been achieved, and thereafter in the ratio in Section 5.1(a)(ii), provided that no allocation will increase a deficit in the Capital Account of a Class B Member.
(e)    After the allocations in clauses (c) and (d) have been made, then cash and property will be distributed pro rata to the Members in the amount of the positive balances in their Capital Accounts by the end of the taxable year during which the liquidation occurs (or, if later, within 90 days after the date of such liquidation).
(f)    The distribution of cash and property to a Member under this Section 10.2 constitutes a complete return to the Member of its Capital Contributions and a complete distribution to the Member on its Membership Interests in the Company of all the Company’s property and constitutes a compromise to which all Members have consented within the meaning of Section 18-502(b) of the Act.  If the assets of the Company remaining after the payment or discharge of the debts and liabilities of the Company are insufficient to return Capital Contributions of each Member, such Member shall have no recourse against the Company or any other Member.

Section 10.3    In-Kind Distributions.  There shall be no distribution of assets of the Company in kind without a prior Class Majority Vote.

Section 10.4    Certificate of Cancellation.  

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(a)    When all debts, liabilities and obligations have been paid and discharged or adequate provisions have been made therefor and all of the remaining property and assets have been distributed to the Members, a certificate of cancellation shall be executed and filed by the liquidator with the Secretary of State of the State of Delaware, which certificate shall set forth the information required by Section 18-203 of the Act.
(b)    Upon the filing of the certificate of cancellation, the existence of the Company shall cease.
(c)    All costs and expenses in fulfilling the obligations under this Section 10.4 shall be borne by the Company.

ARTICLE XI     
MISCELLANEOUS

Section 11.1    Notices.  Unless otherwise provided herein, any offer, acceptance, election, approval, consent, certification, request, waiver, notice or other communication required or permitted to be given hereunder (collectively referred to as a “Notice”), shall be in writing and delivered (a) in person, (b) by registered or certified mail with postage prepaid and return receipt requested, (c) by recognized overnight courier service with charges prepaid, (d) by facsimile transmission, or (e) by e-mail directed to the intended recipient at the address of such Member on Schedule 4.2(d) or at such other address as any Member hereafter may designate to the others in accordance with a Notice under this Section 11.1.  A Notice or other communication will be deemed delivered on the earliest to occur of (i) its actual receipt when delivered in person, (ii) the fifth Business Day following its deposit in registered or certified mail, with postage prepaid, and return receipt requested, (iii) the second Business Day following its deposit with a recognized overnight courier service, (iv) the date of receipt of a facsimile, except if such date of receipt is not a Business Day, then the next Business Day following such date of receipt, provided the sender can and does provide evidence of successful transmission, or (v) the date of transmission of an e-mail, except if such date of transmission is not a Business Day, then the next Business Day following such date of transmission; provided no delivery failure message is received by the sender.  Any Notice or other communication received on a day that is not a Business Day or later than 5:00 p.m. on a Business Day shall be deemed to be received on the next Business Day.

Section 11.2    Amendment.  Except for an amendment of Schedule 4.2(d), an amendment of Annex II to reflect the issuance of additional Class B Membership Interests or a Transfer of Class B Membership Interests, or an amendment in connection with the admission of a new Member, in each case in accordance with the terms of this Agreement, this Agreement may be changed, modified or amended only by an instrument in writing duly executed by all Members.

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Section 11.3    Partition.  Each of the Members hereby irrevocably waives, to the extent it may lawfully do so, any right that such Member may have to maintain any action for partition with respect to the Company property.

Section 11.4    Waivers and Modifications.  Any waiver or consent, express, implied or deemed, to or of any breach or default by any Person in the performance by that Person of its obligations with respect to the Company or any action inconsistent with this Agreement is not a consent or waiver to or of any other breach or default in the performance by that Person of the same or any other obligations of that Person with respect to the Company or any other such action.  Failure on the part of a Person to insist in any one or more instances upon strict performance of any provisions of this Agreement, to take advantage of any of its rights hereunder, or to declare any Person in default with respect to the Company, irrespective of how long that failure continues, does not constitute a waiver by that Person of its rights with respect to that Person or its rights with respect to that default until the applicable statute of limitations period has lapsed.  All waivers and consents hereunder shall be in writing duly executed by all Members affected by such waiver or consent and shall be delivered to the other Members in the manner described in Section 11.1.

Section 11.5    Severability.  Except as otherwise provided in the succeeding sentence, every term and provision of this Agreement is intended to be severable, and if any term or provision of this Agreement is illegal or invalid for any reason whatsoever, such illegality or invalidity shall not affect the legality or validity of the remainder of this Agreement.  The preceding sentence shall be of no force or effect if the consequence of enforcing the remainder of this Agreement without such illegal or invalid terms or provision would be to cause any Party to lose the benefit of its economic bargain.

Section 11.6    Successors; No Third-Party Beneficiaries.  This Agreement is binding on and inures to the benefit of the Members and their respective heirs, legal representatives, successors and permitted assigns.  Nothing in this Agreement shall provide any benefit to any third party or entitle any third party to any claim, cause of action, remedy or right of any kind, it being the intent of the Members that this Agreement shall not be construed as a third-party beneficiary contract.  To the full extent permitted by law, no creditor or other third party having dealings with the Company shall have the right to pursue any other right or remedy hereunder or at law or in equity, it being understood and agreed that the provisions of this Agreement shall be solely for the benefit of, and may be enforced solely by, the parties hereto and their respective successors and permitted assigns.  None of the rights of the Members herein set forth to make Capital Contributions or loans to the Company shall be deemed an asset of the Company for any purpose by any creditor or other third party, nor may such rights or obligations be sold, transferred or assigned by the Company or pledged or encumbered by the Company to secure any debt or other obligation of the Company or of any of the Members.

Section 11.7    Entire Agreement.  This Agreement, including the Annexes, Exhibits, and Schedules attached hereto (which are hereby incorporated by reference) or the 

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other agreements, and exhibits, annexes or schedules thereto expressly incorporated herein by reference, constitute the entire agreement of the Members with respect to the matters covered herein.  This Agreement supersedes all prior agreements and oral understandings among the parties hereto with respect to such matters, including, for the avoidance of doubt, the 2012 Operating Agreement, and the 2013 Operating Agreement.

Section 11.8    Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware, excluding any conflict of laws rule or principle that might refer the governance or construction of this Agreement to the law of another jurisdiction.

Section 11.9    Further Assurances.  In connection with this Agreement and the transactions contemplated hereby, each Member shall execute and deliver any additional documents and instruments and perform any additional acts that may be reasonably required or useful to carry out the intent and purpose of this Agreement and as are not inconsistent with the terms hereof.

Section 11.10    Counterparts.  This Agreement may be executed in any number of counterparts, each of which shall be an original but all of which together will constitute one instrument, binding upon all parties hereto, notwithstanding that all of such parties may not have executed the same counterpart. Signatures delivered by facsimile, portable document format (.PDF) or other electronic means (including services such as DocuSign) will be considered original signatures.  

Section 11.11    Dispute Resolution.  
(a)    Except as provided in Section 11.11(b) and Section 11.11(c), in the event a dispute, controversy or claim arises hereunder, the aggrieved party will promptly provide written notification of the dispute to the other party within 10 days after such dispute arises.  A meeting will be held promptly between the parties, attended by representatives of the parties with decision-making authority regarding the dispute, to attempt in good faith to negotiate a resolution of the dispute.  If the parties are not successful in resolving a dispute within 21 days, the parties will thereafter be entitled to pursue all such remedies as may be available to them; provided that the parties hereby irrevocably submit to the exclusive jurisdiction of any state or federal court in New York county, New York or any state of federal court in the State of Delaware with respect to any action or proceeding arising out of or relating to this Agreement.  For the avoidance of doubt, no Member waives its right to maintain a legal action or proceeding in the courts of the State of Delaware with respect to matters relating to the organization or internal affairs of the Company.
(b)    If any Class B Member disputes the determination that the Flip Date has occurred (including based on any item or procedure or calculation that affects such determination contained in any notice or report delivered to such Class B Member), such Class B Member shall 

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notify the other Members not more than 20 days after such Class B Member has received written notice from the Managing Member that the Flip Date was determined to have occurred.  In such event, the Members shall consider the issues raised or in dispute and discuss such issues with each other and attempt to reach a mutually satisfactory agreement.  If notice of dispute is not given by any Class B Member within such period, the determination that the Flip Date has occurred, and the items, procedures and calculations described above relating thereto, will be final and binding on the Members.  If the dispute as to the Managing Member’s calculations is not promptly resolved within ten Business Days of such notification of the dispute, the Class B Member and the Managing Member shall each promptly present their interpretations to an Independent Accounting Firm, and shall instruct the Independent Accounting Firm to determine the correct amount of the calculations in dispute (if applicable, in accordance with the methodology in Sections 6.5 or 7.1) and to resolve the dispute promptly, but in no event more than twenty Business Days after having the dispute submitted to it.  The Independent Accounting Firm will make a determination as to each of the items in dispute, which must be (i) in writing, (ii) furnished to each Member and (iii) made in accordance with this Agreement, and which determination, absent manifest error, will be conclusive and binding on all Members, taking into account Sections 6.5(b) and (c).  Each Member shall use reasonable efforts to cause the Independent Accounting Firm to render its decision as soon as reasonably practicable, including by promptly complying with all reasonable requests by the Independent Accounting Firm for information, books, records and similar items.  In the event the Independent Accounting Firm determines that any of the calculations in dispute was incorrect in any material respect, the fees and expenses of the Independent Accounting Firm shall be borne by Class A Members (pro rata in proportion to their Percentage Interests).  In all other cases the fees and expenses of the Independent Accounting Firm shall be borne by the Class B Member disputing any of the calculations (if more than one, pro rata in proportion to their Percentage Interests).  This Section 11.11(b) shall apply to any dispute brought under Section 7.6 hereof, mutatis mutandis.
(c)    If Mehetia disputes the amount or determination of any Repurchase Distributions, the Supplemental Buyout Capital Contribution, Cash Distributions, or Compensatory Distributions (including based on any item or procedure or calculation that affects such determination contained in any notice or report delivered to Mehetia, including the calculation and determination of the Current Buyout Amount (including the amount of the Supplemental Buyout Capital Contribution)),  Mehetia shall notify the other Members in writing not more than 20 days after Mehetia has received written notice from the Managing Member, setting forth its objections thereto (an “Objections Notice”), which statement will identify in reasonable detail those items and amounts to which Mehetia objects (the “Disputed Amounts”). After the delivery of an Objections Notice, a meeting shall be held promptly between Mehetia and the Managing Member, attended by representatives of each of them with decision-making authority regarding the dispute, to attempt in good faith to negotiate a resolution of the dispute and each Disputed Amount. If Mehetia and the Managing Member do not reach a final resolution within 20 days after the delivery of the Objections Notice Mehetia and the Managing Member will submit any unresolved Disputed Amounts to the Independent Accounting Firm. In such an 

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event, each of Mehetia and the Managing Member will submit their calculations and their position in the applicable report in which was originally delivered to Mehetia with the Disputed Amounts, with respect to the unresolved Disputed Amounts (but not, for the avoidance of doubt, with respect to any other items), provided that each such report shall not be more favorable to the submitting party as was the initial report delivered to Mehetia or the Objections Notice (as applicable) together with such supporting documentation as it deems appropriate, to the Independent Accounting Firm within 20 days after the date on which such unresolved Disputed Amounts were submitted to the Independent Accounting Firm for resolution, it being agreed that each of Mehetia and the Managing Member will make their respective submission contemporaneously, and with a copy to the other.  Each of Mehetia and the Managing Member will use their respective commercially reasonable efforts to cause the Independent Accounting Firm to resolve all Disputed Amounts submitted to it as soon as practicable, but in any event within 30 days after the date on which the Independent Accounting Firm is referred the dispute.  The Independent Accounting Firm will resolve such dispute by choosing, in its entirety, the report and calculations proposed by either Mehetia or the Managing Member, and will make no other resolution of such dispute.  The report and calculations selected by the Independent Accounting Firm will be final, binding and non appealable by Mehetia or the Managing Member.  Each of Mehetia and the Managing Member will bear its own costs and expenses in connection with the resolution of such dispute by the Independent Accounting Firm.  The costs and expenses of the Independent Accounting Firm will be paid by the party whose report and calculations is not chosen by the Independent Accounting Firm in its resolution of the dispute.  For the avoidance of doubt, if any amount or calculation can be disputed pursuant to this Section 11.11(c) and under Section 2.3(b) of the Repurchase Agreement, Mehetia may only cause a dispute to be brought under the Repurchase Agreement or under this Agreement; provided, for clarity, if Mehetia causes the Managing Member to cause the Project Company to dispute an amount under the Repurchase Agreement, but such amount does not fully resolve or is inconsistent with a Disputed Amount, Mehetia may bring such dispute hereunder.

Section 11.12    Confidentiality.  
(a)    The Members (other than Clean Technologies) shall, and shall cause their Affiliates and their respective stockholders, members, subsidiaries and Representatives to, hold confidential all information they may have or obtain concerning Clean Technologies, Bloom, the Company and their respective assets, business, operations or prospects or this Agreement (the “Confidential Information”); provided, however, such Confidential Information shall not include information that (i) becomes generally available to the public other than as a result of a disclosure by a Member or any of its Representatives, (ii) becomes available to a Member or any of its Representatives on a nonconfidential basis prior to its disclosure by the Company or its Representatives, (iii) is required or requested to be disclosed by a Member or any of its Affiliates or their respective stockholders, members, subsidiaries or Representatives as a result of any applicable Legal Requirement or rule or regulation of any stock exchange, the Financial Industry Regulatory Authority, Inc. or other regulatory authority or self-regulatory authority having jurisdiction over such Member, (iv) is required or requested by the IRS in connection with the 

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Existing Systems or a Grant, including in connection with a request for any private letter ruling, any determination letter or any audit, or (v) is independently developed by a Member or any of its Representatives; provided that with respect to clauses (iii) and (iv), if such Confidential Information remains or is reasonably believed to remain generally unavailable to the public, such information will remain Confidential Information in all other respects and for all other purposes.  If such party becomes compelled by legal or administrative process to disclose any Confidential Information, such party will provide the other Members with prompt Notice so that the other Members may seek a protective order or other appropriate remedy or waive compliance with the non-disclosure provisions of this Section 11.12(a) with respect to the information required to be disclosed.  If such protective order or other remedy is not obtained, or such other Members waive compliance with the non-disclosure provisions of this Section 11.12(a) with respect to the information required to be disclosed, the first party will furnish only that portion of such information that it is advised, by opinion of counsel, is legally required to be furnished and will exercise reasonable efforts, at the other Members’ expense, to obtain reliable assurance that confidential treatment will be accorded such information, including, in the case of disclosures to the IRS described in clause (iv) above, to obtain reliable assurance that, to the maximum extent permitted by applicable Legal Requirements, such information will not be made available for public inspection pursuant to Section 6110 of the Code.
(b)    Except to the extent necessary for the exercise of its rights and remedies and the performance of its obligations under this Agreement (including without limitation, the ownership, operation and administration of the Company and the Project Company), Clean Technologies and its Affiliates will hold confidential and not disclose directly or indirectly, any of the economic terms particular to this Agreement and the ECCA, including the amount of any Class B Member’s Capital Contribution, economic returns thereon or the identity of any Class B Member other than with respect to the disclosures of the type described in clause (a)(i) through (v) above or in clause (c) below that are permitted for the other Members and their respective Affiliates.  The foregoing shall not restrict Clean Technologies (or any Affiliate) from using project data related to the Systems in connection with the development of other fuel cells by Clean Technologies (or any Affiliate).
(c)    Nothing in Section 11.12(a) and (b) shall be construed as prohibiting a party hereunder from using such Confidential Information in connection with (i) any claim against another Member, the Managing Member or the Administrator hereunder, (ii) any exercise by a party hereunder of any of its rights hereunder (including without limitation, the ownership, operation and administration of the Company and the Project Company) and (iii) a disposition by a Member of all or a portion of its Membership Interest or a disposition of an equity interest in such Member or its Affiliates, provided that such potential purchaser shall have entered into a confidentiality agreement with respect to Confidential Information on customary terms used in confidentiality agreements in connection with corporate acquisitions before any such information may be disclosed.  In addition, each Member hereby acknowledges that the United States federal securities laws and applicable European securities laws, among other things, prohibit certain persons in possession of material, non-public information concerning companies or securities 

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from buying or selling securities issued by those companies or disclosing that material, non-public information to others who buy or sell those securities while in possession of that information (or disclose that information to others who buy or sell).  Notwithstanding anything herein to the contrary, the Parties and their respective Representatives may disclose to any and all persons, without limitation of any kind, the U.S. federal income tax treatment and tax structure of the transaction and all materials of any kind (including opinions and other tax analyses) that are provided to such party relating to such tax treatment and tax structure, except where confidentiality is reasonably necessary to comply with securities laws.  For this purpose, “tax structure” is limited to facts relevant to the U.S. federal income tax treatment of the transaction and does not include information relating to the identity of the Parties, their affiliates, agents or advisors.

Section 11.13    Joint Efforts.  To the full extent permitted by applicable Legal Requirements, neither this Agreement nor any ambiguity or uncertainty herein will be construed against any of the parties hereto, whether under any rule of construction or otherwise.  On the contrary, this Agreement has been prepared by the joint efforts of the respective attorneys for, and has been reviewed by, each of the parties hereto.

Section 11.14    Specific Performance.  The Members agree that irreparable damage will result if this Agreement is not performed in accordance with its terms, and the Members agree that any damages available at law for a breach of this Agreement would not be an adequate remedy.  Therefore, to the full extent permitted by law, the provisions hereof and the obligations of the Members hereunder shall be enforceable in a court of equity, or other tribunal with jurisdiction, by a decree of specific performance, and appropriate injunctive relief may be applied for and granted in connection therewith.  Such remedies and all other remedies provided for in this Agreement shall, however, be cumulative and not exclusive and shall be in addition to any other remedies that a Member may have under this Agreement, at law or in equity.

Section 11.15    Survival.  All indemnities and reimbursement obligations made pursuant to this Agreement shall survive dissolution and liquidation of the Company until expiration of the longest applicable statute of limitations (including extensions and waivers) with respect to the matter for which a Person would be entitled to be indemnified or reimbursed, as the case may be. 

Section 11.16    Effective Date.  This Agreement shall be effective as of the date hereof (the “Effective Date”).  This Agreement amends, restates and supersedes in its entirety the 2013 Operating Agreement.

Section 11.17    Recourse Only to Member.  The sole recourse of the Company for performance of the obligations of any Member hereunder shall be against such Member and its assets and not against any assets or property of any present or future stockholder, partner, member, officer, employee, servant, executive, director, agent, authorized representative or 

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Affiliate of such Member; provided, however, the foregoing shall not apply to recourse, directly or indirectly, against Bloom under the Bloom Guaranty.
[Remainder of this page left intentionally blank.]

IN WITNESS WHEREOF, each Member has caused this Third Amended and Restated Limited Liability Company Agreement to be signed by a duly authorized officer as of the date first above written.
	
		
	CLEAN TECHNOLOGIES II, LLC

	By:    

	 
	Name:

	 
	Title:

	
		
	MEHETIA INC.

	By:    

	 
	Name:

	 
	Title:

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Annex I 
 
DEFINITIONS
[See attached]

Annex I - 1
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ANNEX II     
 
CLASS B MEMBERSHIP INTERESTS
	
			
	Class B Member
	Number of Class B Membership Interests Owned
	Percentage of Class B Membership Interests Owned

	Mehetia Inc.
	495
	100%

Annex II - 1
DM_US 159585344-17.085887.0029

SCHEDULE 4.2(b) 
 
CONTRIBUTED PROPERTY
	
		
	Member
	Contributed Value

	Clean Technologies II, LLC
	$[*]

	Mehetia Inc.
	$[*]

Schedule 4.2(b) - 1
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SCHEDULE 4.2(d) 
 
CAPITAL ACCOUNT BALANCE AND PERCENTAGE INTEREST
	
			
	Member Name and Address
	Capital Account Balance
	Percentage Interest

	Clean Technologies II, LLC
c/o Bloom Energy Corporation
4353 N. 1st Street
San Jose, California 95134
Attn: [*]
Email: [*]
Fax: [*]

	$[*]
	100% of the Class A

	Mehetia Inc.
Eleven Madison Avenue
New York, New York 10010
Attn: [*]
Email: [*]
Fax: [*]

with a copy of any notice sent, which will not constitute notice, to:

Credit Suisse Securities (USA) LLC 
Eleven Madison Avenue 
New York, New York 10010 
Attn: [*]
and with a copy of any notice sent, which will not constitute notice, to:

McDermott Will & Emery LLP
340 Madison Avenue
New York, New York 10173
Attn: [*]
Email: [*]
Fax: [*] 

	$[*]
	100% of the Class B

Schedule 4.2(d) - 1
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SCHEDULE 8.2(f) 
 
OFFICERS
	
		
	Mark Mesler
	Vice President

	Timothy Gray
	Vice President

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SCHEDULE 8.5 
 
INSURANCE

The Managing Member shall cause the Company to acquire and maintain (including making changes to coverage and carriers) the casualty, general liability (including product liability), property damage and/or other types of insurance on the terms set forth in this Schedule.
In each case the policies must be with insurance carriers with a rating of at least A- and a financial size category of at least X by A.M. Best or A by S&P or otherwise reasonably acceptable to Class B Members.
The policies specified in Appendix 1 of this Schedule shall be in full force and effect at all times on and after the Original Date until the LLC Agreement Termination Date subject to renewal no more frequently than annually.
At no time shall there be any gap in cover.
The policy limits and cover of the insurances required in this Schedule shall be sufficient to satisfy the requirements set forth in the Company LLC Agreement, but in no event less than the limits and coverage provisions set forth in Appendix 1 herein.  The obligation to verify that the insurance meets the requirements of the Company LLC Agreement shall rest solely with the Company.
The Managing Member shall not violate or permit to be violated any condition, provision or requirement of any insurance policy required by this Schedule, and the Managing Member shall cause Company to perform, satisfy, and comply with all conditions, provisions and requirements of all insurance policies.
The Managing Member hereby waives any and every claim for recovery against Class B Members or their directors, officers and employees and agents for any and all loss or damage covered by any insurance policies to be maintained under this Schedule to the extent such loss or damage is recovered under any such policy.
All policies of insurance required to be maintained pursuant to this Schedule, other than cover required by law, shall be endorsed such that if at any time they are cancelled, lapsed, terminated or suspended (by any party including the insuring parties), such cancellation, lapse, termination or suspension shall not become effective until at least 30 days after receipt by Class B Members from such insurer of such cancellation, lapse, termination or suspension, except for non-payment of premium for which the required written notice shall be 10 days.  In addition to this requirement, the Managing Member shall inform the Class B Members as soon as reasonably possible if it becomes aware of any such cancellation, lapse, termination or suspension or of any reasonable prospect of such and shall further require the Company’s broker to do the same.

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	•
	All policies of insurance required to be maintained pursuant to this Schedule, except workers compensation and employers liability, shall provide: Additional Insured status for Class B Members and their respective affiliates, directors, officers and employees and agents (collectively, the “Additional Insureds”).  This requirement shall not apply to any professional indemnity policy.

		
	•
	Waivers of subrogation from the insurers in favor of the Additional Insureds.

		
	•
	Policies either (a) non-cancellable except for non-payment of premium with at least 10 days written notice of such to the Class B Members; or (b) cancellation/non-payment provisions in accordance with the provisions of this Schedule.

		
	•
	Class B Members will have the right but not the obligation to pay premiums on behalf of the Company in case of non-payment.

		
	•
	Policies shall be unaffected by any bankruptcy or foreclosure relating to the Managing Member, the Company or the Project Company.

		
	•
	Insurance shall be primary and not excess to or contributing with any other insurance or self-insurance maintained by the Managing Member, the Company, or the Additional Insureds.  However, policies can act in excess of such project-specific policies provided by contractors in accordance with the requirements of this Schedule.

		
	•
	Insurer shall not permit the Managing Member to reduce limits or cover or degrade terms and conditions without the prior written approval of the Class B Members.

		
	•
	The Additional Insureds shall have no obligations whatsoever including, but not limited to, no obligation to pay premiums and no obligation to pay deductibles.

		
	•
	Policy limits shall act in excess of deductibles including the indemnity period for time element insurance shall act in excess of the delay deductible for such insurance.

		
	•
	Insurer costs and expenses including any associated with claims including claims adjustment are for the account of the relevant insurer and further will not be deducted from policy limits or sublimits.

In addition, all property policies including marine cargo (if applicable) and further including any time element insurance shall provide:
		
	•
	That Class B Members shall be loss payee of any amounts payable under the policies in relation to the Managing Member, the Company or the Project Company.

		
	•
	Non vitiation in accordance with a multiple insured clause acceptable to the Class B Members or equivalent protection.

		
	•
	Replacement cost, new for old, with no deduction of any kind including no coinsurance provision or a waiver thereof and no allowance for depreciation (accounting or otherwise), obsolescence or loss of value over time other than in a total constructive loss or other scenario where repair/replacement does not follow loss.

		
	•
	An advance or partial payment endorsement.

		
	•
	A clause requiring the insurer to make final payment on any claim within thirty days after the submission of proof of loss and its acceptance by the insurer.

		
	•
	Except for marine transit policies, a LEG2 exclusion or similar endorsement with no sublimit applied.

In addition, all liability policies except workers compensation and employers liability shall provide:
		
	•
	Severability.

		
	•
	Cross liability with no exclusions.

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The above requirements shall be referred to as the “Required Provisions”.  The Required Provisions can be provided either as endorsements to or in the main body of the relevant policy.  All policies that replace or renew policies shall contain provisions, including limits, sublimits, deductibles, exclusions and the Required Provisions, that are, mutatis mutandis, in all material regards at least the same as those in place at the Original Date or, if later, the date of first inception of such policy cover, except in relation to risks where exposure no longer exists or where a better level of cover is provided or which would be required in accordance with the provisions of this Schedule.
The Managing Member shall provide Class B Members as soon as reasonably possible prior to the Initial Funding Date, and at least 10 days prior to any subsequent policy inception or renewal, a certificate of pre-agreed format from:
		
	•
	Each placing broker confirming:

		
	o
	Summary policy terms in the pre-agreed format.

		
	o
	That all policies required by this Schedule are in full force and effect.

		
	o
	All insurance premiums that are due and payable have been paid in full with no premium overdue.

There shall be appended to such certificate or letter of undertaking certificates from insurers for each policy required by this Schedule listing the major sublimits (to be agreed) and confirming that all Required Provisions that apply to such policy are in place.
		
	•
	The Insurance Consultant (as defined in the Note Purchase Agreement) confirming that:

		
	o
	The insurance provided complies with the requirements of this Schedule and further complies with the requirements of the Managing Member in the Transaction Documents.

		
	o
	That the undertakings made by each placing broker conform to the requirements of prudent industry practice.

The insurance provided by the Company shall be at least that evidenced in any certificates or other evidence provided by the Company or the Project Company.
Any of the requirements of this Schedule can be satisfied by single or by combined policies.  However, as would be deemed necessary in accordance with prudent industry practice, a joint loss agreement will be required and included as part of the respective policies (for example, if there were separate marine transit and builders all-risk policies, then a 50:50 clause would be required).
If in the opinion of the Managing Member, acting reasonably, any insurance, including the terms and conditions, Required Provisions and limits or deductibles thereof, hereby required by this Schedule to be maintained, other than insurance required to be maintained by law which shall be maintained at all times, shall not be available on commercially reasonable terms in the commercial insurance market, the Managing Member shall promptly inform the Class B Members of such purported unavailability and the Managing Member shall seek a waiver from Class B Members in relation to such purported unavailability in which case the Class B Members, acting after consultation with the Insurance Consultant, shall not unreasonably withhold agreement to waive such requirement to the extent the maintenance thereof is not so available.  The granting by Class B Members of any such waiver is conditional on:  (i) the Managing Member first requesting such waiver in writing, which request shall be accompanied by written reports prepared by the Company 

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and its placing broker certifying that such insurance is not available on commercially reasonable terms in the commercial insurance market for projects of similar type and capacity and, in any case where the required amount is not so available, certifying as to the maximum amount which is so available, and explaining in detail the basis for such conclusions and the form and substance of such reports to be reasonably acceptable to the Class B Members after consultation with the Insurance Consultant;  (ii) at any time after the granting of any such waiver, the Class B Members may request, and the Managing Member furnish to the Class B Members within fifteen (15) days after such request, supplemental reports reasonably acceptable to the Class B Members updating the prior reports and reaffirming such conclusion;  (iii) any such waiver granted by the Class B Members can amend, to the extent reasonably required to mitigate any increased risks created by the absence of insurance cover that is the subject of the waiver, any of the terms of this Schedule;  (iv) the Class B Members may require the Company to obtain the best available insurance comparable to the requirements of this Schedule on commercially reasonable terms then available in the commercial insurance market (as determined by the Insurance Consultant);  and (v) such waiver shall be effective only so long as such insurance shall not be available on commercially reasonable terms in the commercial insurance market (as determined by the Insurance Consultant) it being understood that the failure of the Managing Member to furnish any supplemental reports shall be deemed to be conclusive evidence that such waiver is no longer effective because such condition no longer exists, but that such failure is not the only way to establish such non-existence.
The policy teams actually provided in accordance with the provisions of this Schedule shall be at least those evidenced to the Company.
Any failure on the part of Class B Members to pursue or obtain the evidence of insurance required by this Schedule from the Managing Member and/or failure to point out any noncompliance of such evidence of insurance shall not constitute a waiver of any of the insurance requirements in this Schedule.
Each liability insurance policy required pursuant to this Schedule that is permitted to be written on a “claims made” basis shall provide (a) a retroactive date (as such term is specified in each of such policies) that is no later than the Original Date and (b) each time any policy written on a “claims made” basis is not renewed or the retroactive date of such policy is to be changed, the Company shall obtain and maintain, or cause to be obtained or maintained, for each such policy or policies the broadest extended reporting period coverage, or “tail”, reasonably available in the commercial insurance market for each such policy or policies but in no case less than three (3) years.  The Company may satisfy the requirements of this Schedule by obtaining “prior acts” coverage from a subsequent insurance carrier on terms acceptable to the Class B Members, acting reasonably.
All property insurance including marine cargo and any time element insurance shall not include any annual or term aggregate limits or sublimits except for the perils of windstorm, flood, earth movement and land and water decontamination but only to the extent permitted in Appendix 1 to this Schedule.  Liability policies may have general aggregate limits in accordance with prudent insurance market practice.

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All insurance policies required to be maintained pursuant to this Schedule shall contain terms and conditions reasonably acceptable to the Class B Members following consultation with the Insurance Consultant.
In the event that at any time the insurance as herein provided or as evidenced shall be reduced or cease to be maintained, then the Class B Members, upon ten (10) Business Days’ prior written notice (unless such insurance coverage would lapse within such period, in which event notice should be given as soon as reasonably possible) to the Company of any such failure, may (but shall not be obligated to) take out the required policies of insurance and pay the premiums on the same.  All amounts so advanced for such purpose shall become an additional obligation of the Company to the Class B Members and the Company shall forthwith pay such amounts (as provided in the Company LLC Agreement, if any).
The Class B Members can, acting reasonably, require such additional cover to be provided as is required to confirm to prudent industry practice.
The Class B Members shall have the option to be present and/or to send representatives during meetings and/or negotiations with insurers of any loss settlement in relation to the Company or the Project regarding (a) total constructive loss or any scenario in which repair/replacement will not follow loss, (b) any circumstance involving a claim in relation to an event or series of events which has or could be reasonably expected to lead to a default under any Transaction Documents or material contracts.  Neither the Managing Member nor any of its Affiliates shall be permitted to settle any such claim with an insurer without the approval of the Class B Members to the agreed settlement.
The Class B Members may, pursuant to its rights and obligations under this Schedule, consult with the Insurance Consultant and require reports, compliance certificates and other work product from the Insurance Consultant.
Terms used in this Schedule, unless otherwise specifically defined herein or in the Company LLC Agreement, shall have the meaning normally ascribed to them in accordance with prudent industry practice in relation to a project similar in type and jurisdiction as the Project.

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Appendix 1

Construction Phase Property Policy
From the Initial Funding Date, evidence shall be provided that is reasonably acceptable to the Class B Members that adequate property insurances are in place sufficient to cover the value of (a) the largest transit shipment and offsite storage; and (b) aggregate assets at the Project site prior to the All Risk Property and Business Interruption Insurance being in full force and effect.  Furthermore, the Class B Members will be added as additional insured to the construction general liability policy which shall have limits and terms adequate to cover their exposure.
All Risk Property and Business Interruption Insurance
From the Initial Funding Date, “All Risk Property” insurance shall be provided for all property, equipment and construction and erection activities associated with the Project on an “all risk” basis insuring the Company, Project Company and the Additional Insureds, as their interests may appear, including but not limited to coverage for the perils of earth movement (including but not limited to earthquake, landslide, subsidence, sink hole and volcanic eruption), flood, named windstorm.  There shall be no requirement for machinery breakdown coverage subject to the agreement of the Class B Members, acting reasonably, that such risks are adequately covered by the Power Performance Warranty.
The policy limit shall be an amount not less than the aggregate full replacement cost of the Project such amount also being referred to as the “full policy limit”.  Full insurable value shall mean the full replacement cost value of the Project on a “new for old” basis, including but not limited any new or existing buildings or structures, any improvements to new or existing property, equipment, mechanical plant, electrical plant, spare parts, and supplies and temporary works.
Per occurrence sublimits shall be at least as follows:
	
		
	•  Debris removal 
physical “loss”
	25% of the amount payable for the direct

	•  Architects and engineers fees
	$2m

	•  Expediting expense 
	$1m

	•  Blueprints, drawings, etc.
	$1m or less

	•  On site pollution
	$100,000

An annual aggregate sublimit shall be permitted for flood of $10M.  An annual aggregate sublimit shall be permitted for earth movement of $25M subject to confirmation from the Independent 

Schedule 8.5 - 1
DM_US 159585344-17.085887.0029

Engineer and accepted by the Class B Members, acting reasonably, that any such damage is likely to be within this limit.  Limits for windstorm shall be full policy limits on a per occurrence basis.
The All Risk Property policy shall include (i) a seventy-two (72) hour flood/named windstorm/earthquake clause, (ii) an unintentional errors and omissions clause.  There shall be no serial loss clause.
Business Interruption coverage insuring the loss of expected gross revenues for the largest single Project for a period of not less than the greater of (a) 12 months; and, (b) the longest lead time for replacement as determined by the Class B Members in consultation with the Independent Engineer as a result of physical loss or damage by perils required to be insured under the All Risk Property policy, including all sections preceding this section, which cause a reduction in output.
Contingent business interruption insurance covering loss of gross revenues less non-continuing expenses for:
		
	•
	Power Suppliers and Public Utilities Extension — loss, including delay, caused by interference/interruption of power/other utility including export substation — full cover.

		
	•
	Prevention of Ingress/Egress 90 days

		
	•
	Damage to an export substation cover for loss of expected gross revenues less non-recurrent costs for a six month indemnity period.

Some or all of the requirements for contingent business interruption can be reduced or eliminated subject to the agreement of the Class B Members that such risks or proportions of such risks are adequately covered by the Tariff.
Deductibles shall be the best commercially available in accordance with prudent industry practice not exceeding 2% for earthquake.
Marine Cargo and Marine Business Interruption Insurance
To the extent a material exposure exists, transit coverage, either included in a property policy or under a separate policy (including air, land and ocean cargo, as applicable) on an “all-risk” basis and a “warehouse to warehouse” basis with a per occurrence limit equal to not less than 110% of the value including transit and insurance of such shipment involving the Project to or from any storage site or the Project site at all times for which the Project Company has accepted risk of loss or has responsibility for providing insurance.  Coverage shall include loading and unloading, temporary storage (as applicable) and a 50/50 clause (if applicable).  Coverage shall be maintained in accordance with prudent industry practice in all regards with per occurrence deductibles of not more than $100,000 for physical damage and other terms and conditions acceptable to the Class B Members.
Marine Business Interruption insurance shall be attached to the Marine Cargo policy providing equivalent cover, mutatis mutandis, to the Business Interruption cover attached to the All Risk Property policy in accordance with the terms of this Schedule.

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General Liability
A limit of $1,000,000 per occurrence and in the aggregate shall be provided for:
		
	•
	Property damage, death and injury (including mental injury).

		
	•
	Broad form property damage.

		
	•
	Blanket contractual.

		
	•
	Products/completed operations

		
	•
	Advertising injury

		
	•
	XCU

Deductibles shall be the best commercially available in accordance with prudent industry practice.
Automobile Liability
Automobile liability insurance, to the extent exposure exists, including coverage for owned, non-owned and hired automobiles for both bodily injury and property damage and containing appropriate no-fault insurance provisions or other endorsements in accordance with state legal requirements, with a combined single limit of no less than $1,000,000 per accident with respect to bodily injury, property damage or death.  Deductibles shall be the best commercially available in accordance with prudent industry practice.
Workers’ Compensation and Employers Liability  
If Project Company or the Company has employees, workers’ compensation insurance in compliance with statutory requirements and employers liability insurance, to the extent exposure exists, with a limit of not less than $1,000,000 per accident, per employee and per disease including such other forms of insurance that the Project Company or the Company is required by law to provide for the Project, all other states’ endorsement and, to the extent any exposure exists, coverage with respect to the USL&H Act and Jones Act, covering loss resulting from bodily injury, sickness, disability or death of the employees of the Project Company or the Company.  Deductibles shall be the best commercially available in accordance with prudent industry practice.
Pollution Liability
Pollution liability insurance for liability arising out of property damage or bodily injury to third parties as a result of sudden and accidental pollution including the cost of on-site and off-site clean up in an amount not less than $1,000,000 per occurrence and in the aggregate.  Deductibles shall be the best commercially available in accordance with prudent industry practice.
Umbrella Liability Insurance
An aggregate limit of $15,000,000 (or $20,000,000, if so required by any Transaction Document or material contract) shall be attached and in excess of the underlying general liability, automobile liability, employers liability policies on a following form basis with drop down provisions.

- 3 -
DM_US 159585344-17.085887.0029

Errors and Omissions Liability
Errors and omissions insurance for liability arising out of property damage or bodily injury to third parties as a result of prototype manufacturing errors and omissions liability $1,000,000 per glitch and in the aggregate.  Deductibles shall be the best commercially available in accordance with prudent industry practice.
Directors & Officers Insurance 
Unless directors and officers are indemnified by the Company to the reasonable satisfaction of the Company, Directors & Officers insurance, including Employment Practices (if employees) in an amount not less than $10,000,000 on industry standard policy forms subject to a retention not to exceed $50,000.

- 4 -
DM_US 159585344-17.085887.0029

SCHEDULE 9 
 
TRANSFER REPRESENTATIONS AND WARRANTIES
[The Class B Member] is a [        ] duly organized, validly existing and in good standing under the laws of [         ] and has all requisite [          ] power and authority to reconvey the Class B Membership Interests as contemplated by the Agreement.
(a)    [The Class B Member] owns directly 100% of the Company’s outstanding Class B Membership Interests to the extent that is what it was sold under the [ECCA] [other transfer documentation].
(b)    [The Class B Member] has absolute record and beneficial ownership and title to the Membership Interests held by [the Class B Member] to the extent that is what it was sold under the [ECCA] [other transfer documentation], free and clear of any Encumbrances except Permitted Encumbrances.
(c)    The assignment agreement effecting the Transfer of the Class B Membership Interests from [the Class B Member] to [the Class A Member] has been duly and validly executed and delivered by [the Class B Member] and constitutes [the Class B Member’s] legal, valid and binding obligation, enforceable against it in accordance with its terms (subject, however, to the effects of bankruptcy, insolvency, reorganization, moratorium and similar laws from time to time in effect relating to the rights and remedies of creditors as well as to general principles of equity whether considered at law or in equity).
(d)    Neither the execution, delivery and performance by [the Class B Member] of the assignment agreement effecting the Transfer of the Class B Membership Interests from [the Class B Member] to [the Class A Member] nor the consummation of the transactions contemplated thereby will (i) conflict with or result in any breach of any provision of the organizational documents of [the Class B Member], (ii) violate or conflict with (or give rise to any right of termination, cancellation or acceleration under) any of the terms, conditions or provisions of any contract or other instrument or obligation that [the Class B Member] is a party to or by which [the Class B Member] is bound; or (iii) violate any Legal Requirement or any material license, franchise, permit or other authorization applicable to or affecting [the Class B Member] or any of its respective assets. 
(e)    All consents, approvals and filings required to be obtained or made by the [Class B Member] to execute, deliver and perform the assignment agreement effecting the Transfer of the Class B Membership Interests from [the Class B Member] to [the Class A Member] or the consummation by any such Person of the transactions contemplated thereby shall have been obtained or made and shall be in full force and effect as of the date hereof.

Schedule 9 - 1
DM_US 159585344-17.085887.0029

Exhibit A 
 
FORM OF CERTIFICATE FOR CLASS A MEMBERSHIP INTEREST
THE INTERESTS REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR ANY STATE SECURITIES LAWS.  ACCORDINGLY, SUCH INTERESTS MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF WITHOUT COMPLIANCE WITH SUCH ACT AND SUCH STATE SECURITIES LAWS, AND DIAMOND STATE GENERATION HOLDINGS, LLC MAY REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO IT THAT NO VIOLATION OF SUCH ACT AND SUCH STATE SECURITIES LAWS WILL RESULT FROM ANY PROPOSED SALE, TRANSFER OR OTHER DISPOSITION OF SUCH INTERESTS.
THIS CERTIFICATE EVIDENCES AN INTEREST IN DIAMOND STATE GENERATION HOLDINGS, LLC AND SHALL BE A SECURITY FOR THE PURPOSES OF ARTICLE 8 OF THE UNIFORM COMMERCIAL CODE AS IN EFFECT IN THE STATE OF NEW YORK.
No. [__]    Class A Membership Interests
Diamond State Generation Holdings, LLC 
a Delaware Limited Liability Company 
Certificate of Interest
This certifies that [___________________] is the owner of [_____] Class A Membership Interests in Diamond State Generation Holdings, LLC (the “Company”), which membership interests are subject to the terms of the Third Amended and Restated Limited Liability Company Agreement of Diamond State Generation Holdings, LLC, dated as of June 14, 2019 as the same may be further amended, restated, supplemented or otherwise modified from time to time in accordance with the terms thereof (the “Limited Liability Company Agreement”).
This Certificate of Interest may be transferred by the lawful holders hereof only in accordance with the provisions of the Limited Liability Company Agreement.

Exhibit A - 1
DM_US 159585344-17.085887.0029

IN WITNESS WHEREOF, the said Company has caused this Certificate of Interest to be signed by its duly authorized officer this [__] day of [_______], 20[__].
	
			
	DIAMOND STATE GENERATION HOLDINGS, LLC

	 

	By:   

	 
	Name:

	 
	Title:

	 
	 

	 

	 
	 

	 
	 

Exhibit A - 2
DM_US 159585344-17.085887.0029

[Reverse] 
 
 
INSTRUMENT OF TRANSFER OF 
MEMBERSHIP INTEREST IN 
Diamond State Generation Holdings, LLC
FOR VALUE RECEIVED, the undersigned does hereby sell, assign and transfer unto _______________________________________________ 
 
(print or type name of assignee)
the membership interest evidenced by and within the Certificate of Interest herewith, and does hereby irrevocably constitute and appoint __________________ as attorney to transfer said interest on the books of Diamond State Generation Holdings, LLC with full power of substitution in the premises.
Dated as of:  
	
			
	[____________________]
	 

	By:   

	 
	Name:   

	 
	Title:   

	 
	 

	 

	 
	 

	 
	 

Exhibit A - 3
DM_US 159585344-17.085887.0029

EXHIBIT B     
 
FORM OF CERTIFICATE FOR CLASS B MEMBERSHIP INTEREST
THE INTERESTS REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE “ACT”) OR ANY STATE SECURITIES LAWS.  ACCORDINGLY, SUCH INTERESTS MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF WITHOUT COMPLIANCE WITH SUCH ACT AND SUCH STATE SECURITIES LAWS, AND DIAMOND STATE GENERATION HOLDINGS, LLC MAY REQUIRE AN OPINION OF COUNSEL SATISFACTORY TO IT THAT NO VIOLATION OF SUCH ACT AND SUCH STATE SECURITIES LAWS WILL RESULT FROM ANY PROPOSED SALE, TRANSFER OR OTHER DISPOSITION OF SUCH INTERESTS.
THIS CERTIFICATE EVIDENCES AN INTEREST IN DIAMOND STATE GENERATION HOLDINGS, LLC AND SHALL BE A SECURITY FOR THE PURPOSES OF ARTICLE 8 OF THE UNIFORM COMMERCIAL CODE AS IN EFFECT IN THE STATE OF NEW YORK.
No. [__]    Class B Membership Interests
Diamond State Generation Holdings, LLC 
a Delaware Limited Liability Company 
Certificate of Interest
This certifies that [_____________________] is the owner of [___] Class B Membership Interests in Diamond State Generation Holdings, LLC (the “Company”), which membership interests are subject to the terms of the Third Amended and Restated Limited Liability Company Agreement of Diamond State Generation Holdings, LLC, dated as of June 14, 2019, as the same may be further amended, restated, supplemented or otherwise modified from time to time in accordance with the terms thereof (the “Limited Liability Company Agreement”).
This Certificate of Interest may be transferred by the lawful holders hereof only in accordance with the provisions of the Limited Liability Company Agreement.

Exhibit B - 1
DM_US 159585344-17.085887.0029

IN WITNESS WHEREOF, the said Company has caused this Certificate of Interest to be signed by its duly authorized officer this [___] day of [______], 20[__].
	
			
	DIAMOND STATE GENERATION HOLDINGS, LLC

	 

	By:   

	 
	Name:

	 
	Title:

	 
	 

	 

	 
	 

	 
	 

Exhibit B - 2
DM_US 159585344-17.085887.0029

[Reverse] 
 
 
INSTRUMENT OF TRANSFER OF 
MEMBERSHIP INTEREST IN 
Diamond State Generation Holdings, LLC
FOR VALUE RECEIVED, the undersigned does hereby sell, assign and transfer unto _______________________________________________ 
 
(print or type name of assignee)
the membership interest evidenced by and within the Certificate of Interest herewith, and does hereby irrevocably constitute and appoint __________________ as attorney to transfer said interest on the books of Diamond State Generation Holdings, LLC, with full power of substitution in the premises.
Dated as of:
	
			
	[____________________]
	 

	By:   

	 
	Name:   

	 
	Title:   

	 
	 

Exhibit B - 3
DM_US 159585344-17.085887.0029

EXHIBIT C     
 
RESERVED

Exhibit C - 1
DM_US 159585344-17.085887.0029

EXHIBIT D     
 
FORM OF ASSIGNMENT AGREEMENT
This ASSIGNMENT OF MEMBERSHIP INTERESTS, dated as of [_________] [__], 20[__] (this “Assignment Agreement”), is by and between [____________________], a [___________] (the “Assignor”) and [____________________], a [___________] (the “Assignee”).
W I T N E S S E T H :
WHEREAS, Diamond State Generation Holdings, LLC, a Delaware limited liability company (the “Company”) was formed by virtue of its Certificate of Formation filed with the Secretary of State of the State of Delaware on [___________], and is governed by the Third Amended and Restated Limited Liability Company Agreement of the Company, dated as of June 14, 2019, executed by the Assignor and [_______________], a [_________], with all amendments thereto (the “LLC Agreement”); 
WHEREAS, the Assignor is currently a [Class A Member][Class B Member] of the Company;
WHEREAS, pursuant to the LLC Agreement, the Assignor has agreed to transfer to Assignee and Assignee has agreed to accept from the Assignor, on the terms and subject to the conditions set forth in the LLC Agreement, [Class A] [Class B] Membership Interests of the Company;
WHEREAS, pursuant to the LLC Agreement, the parties thereto have agreed to admit the Assignee as a [Class A][Class B] Member of the Company; and
NOW, THEREFORE, in consideration of the mutual covenants and agreements and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the undersigned do hereby agree as follows:
1.Defined Terms.  All capitalized terms not defined herein are used herein as defined in the LLC Agreement.
2.    Instructions to Transfer to Assignee.  As of the date hereof, the Assignor hereby assigns and transfers unto Assignee complete record and beneficial ownership of [__] [Class A][Class B] Membership Interests in the Company, together with all rights and benefits associated therewith and the Assignee hereby assumes from Assignor complete record and beneficial ownership of [__] [Class A][Class B] Membership Interests in the Company, together with all rights and benefits associated therewith.  The Assignor hereby irrevocably instructs the Company to register on the books of the Company the transfer to Assignee of complete record and beneficial ownership of [__][Class A][Class B] Membership Interests in the Company previously owned by Assignor.

Exhibit D - 1
DM_US 159585344-17.085887.0029

3.    Further Assurances.  Subject to the terms and conditions of the LLC Agreement, at any time, or from time to time after the date hereof, the Assignor and Assignee shall, at the other’s reasonable request, and at the requesting party’s expense, execute and deliver such instruments of transfer, conveyance, assignment and assumption, in addition to this Assignment Agreement, and take such other action as either of them may reasonably request in order to evidence the transfer effected hereby. 
4.    Successors and Assigns.  This Assignment Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.  
5.    Counterparts.  This Assignment Agreement may be signed in any number of counterparts, each of which shall be deemed an original, with the same effect as if the signatures hereto were upon the same instrument.  This Assignment Agreement shall become effective when each party hereto shall have received a counterpart hereof signed by the other party.  
6.    Governing Law.  This Assignment Agreement shall be governed by, and construed and enforced in accordance with, the laws of the State of New York applicable to contracts performed in that State.
[Remainder of page intentionally left blank.  Signature page to follow.]

Exhibit D - 2
DM_US 159585344-17.085887.0029

IN WITNESS WHEREOF, each party hereto has caused this Assignment of Membership Interests to be signed on its behalf as of the date first written above.
	
			
	[______________________] 
as the Assignor
	 

	By:     

	 
	Name:

	 
	Title:

	
			
	[_____________________] 
as the Assignee
	 

	By:     

	 
	Name:

	 
	Title:

Exhibit D - 3
DM_US 159585344-17.085887.0029

EXHIBIT E     
 
FORM OF EQUITY CONTRIBUTION NOTICE
[_______], 20[__]
Diamond State Generation Holdings, LLC 
4353 N. 1st Street 
San Jose, CA 95134 
Attn: [*]
Re:    Equity Contribution Notice
Ladies and Gentlemen:
Reference is made to that certain Third Amended and Restated Limited Liability Company Agreement (the “Company LLC Agreement”) for Diamond State Generation Holdings, LLC (the “Company”), dated June 14, 2019, by and between Clean Technologies II, LLC, a Delaware limited liability company (“Clean Technologies”) and Mehetia Inc., a Delaware corporation (“Mehetia” or “Class B Member”).  All capitalized terms, unless otherwise defined herein, shall have the meanings ascribed to them in the Company LLC Agreement.
Pursuant to Section 4.4(a) of the Company LLC Agreement, Diamond State Generation Partners, LLC (the “Project Company”) hereby delivers to the Company with a copy to Clean Technologies and Class B Members this notice and certifies to such entities as follows as of the Equity Contribution Date:

(1)attached hereto as Exhibit [A] is a schedule which sets forth (a) the Existing Systems expected to be Placed in Service and expected to achieve Commencement of Operations (as such term is defined in the MESPA) in the 2nd quarter following the quarter in which this notice is delivered (or sooner) for which this notice requests Capital Contribution of the balance of the amounts of the 25% Progress Payment for such System contemplated by the MESPA as provided in such schedule, (b) the Existing Systems which have been Placed in Service and have achieved Commencement of Operations for which this notice requests Capital Contribution of the amounts to be used by Project Company to make (with Note Proceeds) the 75% Progress Payment for such System contemplated by the MESPA as provided in such schedule, (c) an update of the status for all Existing Systems for which a Capital Contribution has been requested in a prior Equity Contribution Notice (“Prior Draw Existing Systems”, and together with the Existing Systems referred to in the preceding clauses (a) and (b), the “Subject Systems”); 

(2)    the Managing Member’s Capital Contribution to the Company of $16,619,399.60 was further contributed by the Company to the Project Company and used by 

Exhibit E - 1
DM_US 159585344-17.085887.0029

Project Company to incur Project costs in an amount equal to at least 5% of the cost of all Existing Systems;

(3)    attached hereto as Exhibits [B-__] are (a) invoices from Bloom to the Project Company for payments under the MESPA for Subject Systems for which a prior Equity Contribution Notice had requested a Capital Contribution in order to make such payment, which invoice specifies: (i) the customer location of the installation of each Subject System, (ii) the serial number or purchase order number for each Subject System, (iii) the price for each Subject System as determined pursuant to the MESPA, (iv) all amounts previously paid as a deposit on each Subject System and (v) all amounts remaining due and payable on each Subject System, (b) evidence of the payment of such invoices by the Project Company, (c) with respect to Prior Draw Existing Systems for which the 75% Progress Payment has been made under the MESPA, a Bill of Sale for such Prior Draw Existing Systems;

(4)    the DPL Agreements have terms that in the aggregate provide to Project Company equal or more favorable economics than set forth in the Base Case Model;

(5)    No material ongoing breach exists by Bloom, Clean Technologies, the Company, the Project Company, the Managing Member, DPL or PJM under the ECCA, the Project Company LLC Agreement, the MESPA, the MOMA, the Administrative Services Agreement, the Credit Documents, the DPL Agreements, the PJM Agreements, the Company LLC Agreement or any other Transaction Document or Material Contract, as applicable;

(6)    the Project Company is solvent and no event of Bankruptcy has occurred with respect to the Project Company;

(7)    each of the representations and warranties of Clean Technologies in Section 3.2 of the ECCA relating to the Existing Systems funded by such Equity Contribution is (i) true and correct in all material respects as of such Equity Contribution Date except to the extent that any such representation or warranty shall have been expressly made only as of an earlier date in which case such representation or warranty was true and correct in all material respects as of such earlier date and (ii) if and to the extent such representations and warranties are qualified by the words “material,” “Material Adverse Effect” or similar qualification, true and correct, as qualified, as of the Equity Contribution Date (or such earlier date, as applicable);
 
(8)    (i) all conditions precedent in Section 2.5 and Section 2.7 of the ECCA (other than Section 2.5(aa)) continue to be satisfied and (ii) there have been no material adverse changes from the circumstances addressed in the due diligence reports delivered to Class B Member under Sections 2.5(a) and (b) of the ECCA;

(9)    [after the first funding notice:] the prior Equity Contributions have been drawn in accordance with Section 4.3 and Section 4.4 of the Company LLC Agreement, the 

Exhibit E - 2
DM_US 159585344-17.085887.0029

Project Company currently has a remaining cash balance from such funds of $[______], such remaining funds are in the Capital Contributions Account, and the Project Company has used any funds from such Equity Contributions not retained in the Capital Contributions Account to make payments under the MESPA;

(10)    the information on each invoice from Bloom to Project Company for payments under the MESPA regarding the Existing Systems to be paid for with proceeds of the Equity Contribution include the following: (i) the location of the installation of each such System, (ii) the serial number for each such System, (iii) the price for each such System as determined pursuant to the MESPA, (iv) all amounts previously paid as a deposit on each such System and (v) all amounts remaining due and payable on each such System;

(11)    all material Governmental Approvals required to be obtained by Bloom, Clean Technologies, the Company and the Project Company for the construction and installation of the Subject Systems and the sale of electric energy and sale of RECs from the Subject Systems have been obtained, except for any such Governmental Approvals not yet required to be obtained but which can reasonably be expected to be obtained when needed as specified on Exhibit [C]; 

(12)    Commencement of Operations (as defined under the MESPA) has occurred for the Existing Systems for which this notice requests Capital Contribution of the amounts to be used by Project Company (with Note Proceeds) to make the 75% Progress Payment for such System;

(13)    with respect to the Existing Systems for which this notice requests Capital Contribution of the amounts to be used by Project Company (with Note Proceeds) to make the 75% Progress Payment for such System, the Members have received confirmation that the Note Proceeds have either been disbursed from the Construction Escrow Account or will be available for disbursement from the Construction Escrow Account contemporaneous with Project Company’s drawdown of such Progress Contribution from the Company (as may be evidenced by, among other things, delivery to the Members of a copy of the Account Withdrawal Instruction applicable to such proceeds which has been countersigned by the Collateral Agent and delivered to the Depositary) or the Required Holders have in writing confirmed to the Members that all conditions precedent to such disbursement from the Construction Escrow Account have been satisfied or waived and the Required Holders are prepared to permit such disbursement contemporaneous with Project Company’s drawdown of such Progress Contribution from the Company; and

(14)    with respect to the Existing Systems for which this notice requests Capital Contribution of the amounts to be used by Project Company to make (with Note Proceeds) the 75% Progress Payment for such System, the Members have received written certification from the Independent Engineer (as defined in the MESPA) addressed to Project Company certifying, 

Exhibit E - 3
DM_US 159585344-17.085887.0029

without any qualification, that such System’s commissioning has been successfully completed, that such System is available for full commercial operation, and that Bloom has installed all BOF Work (as defined in the MESPA) necessary for the operation of that System.

In accordance with Section 4.4 of the Company LLC Agreement, the Company is hereby requested to make an Equity Contribution on [____________, 20___] in the amount of $[__________] to the Project Company and to transfer such funds to the following account of the Project Company as set forth below:

	
		
	Holder Name:
	Diamond State Generation Partners, LLC

	Bank Name:
	 

	Account Number:
	 

	ABA Number:
	 

Exhibit E - 4
DM_US 159585344-17.085887.0029

Sincerely,
DIAMOND STATE GENERATION HOLDINGS, LLC, as Manager of Diamond State Generation Partners, LLC

By:___________________________
Name:
Title:

Cc: 
Clean Technologies II, LLC 
c/o Bloom Energy Corporation 
4353 N. 1st Street 
San Jose, CA 95134 
Attn: [*]
Mehetia Inc.
Eleven Madison Avenue
New York, New York 10010
Attn: [*]

Exhibit E - 5
DM_US 159585344-17.085887.0029

Exhibit [__]

[TO BE REVISED AS NEEDED FOR EACH EQUITY CONTRIBUTION]

Exhibit E - 6
DM_US 159585344-17.085887.0029

EXHIBIT F     
 
FORM OF REDEMPTION AGREEMENT
[See attached]

Exhibit F - 1
DM_US 159585344-17.085887.0029Exhibit

EXECUTION VERSION
[*]

..

     
REDACTED EXHIBIT: This Exhibit contains certain identified information that has been excluded because it is both (i) not material and (ii) would be competitively harmful if publicly disclosed. Redacted information is identified by [*]. 

FUEL CELL SYSTEM SUPPLY AND INSTALLATION AGREEMENT
between
BLOOM ENERGY CORPORATION,
as Seller
and
DIAMOND STATE GENERATION PARTNERS, LLC,
as Buyer
dated as of June 14, 2019

	
			
	SA#7369564_22.docx
	 
	 

TABLE OF CONTENTS

Page

 
 

	
			
	 
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EXECUTION VERSION
[*]

		
	 DEFINITIONS
	1

Section 1.1Definitions.    1
Section 1.2Other Definitional Provisions.    15
		
	 PURCHASE AND SALE
	16

Section 2.1Appointment of Seller.    16
Section 2.2Conceptual Design.    16
Section 2.3Purchase Orders.    16
Section 2.4Invoicing of Purchase Price    17
Section 2.5Payment of Purchase Price.    18
Section 2.6Purchase and Sale of New Systems.    20
Section 2.7Purchase Price Adjustments.    20
		
	 DELIVERY AND INSTALLATION OF NEW SYSTEMS AND NEW BALANCE OF FACILITIES
	22

Section 3.1Access to Site.    22
Section 3.2Delivery; Title; Risk of Loss.    22
Section 3.3Installation Services.    22
Section 3.4Commissioning Date Deadline.    24
Section 3.5Insurance.    24
Section 3.6Disposal; Right of First Refusal.    24
Section 3.7Third Party Warranties.    25
Section 3.8Access; Cooperation.    25

	
			
	 
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Section 3.9Performance Standards.    25
Section 3.10Coordination of Relationship.    26
		
	 WARRANTIES
	26

Section 4.1Pre-Commissioning Equipment Warranty; Manufacturer’s Warranty.    26
Section 4.2Exclusions.    27
Section 4.3Disclaimers.    28
Section 4.4Title.    28
		
	 RECORDS AND AUDITS
	29

Section 5.1Record-Keeping Documentation; Audit Rights.    29
Section 5.2Reports; Other Information.    30
		
	 REPRESENTATIONS AND WARRANTIES OF SELLER
	30

Section 6.1Representations and Warranties of Seller.    30
Section 6.2Survival Period.    35
		
	 REPRESENTATIONS AND WARRANTIES OF BUYER
	35

Section 7.1Representations and Warranties of Buyer.    35
Section 7.2Survival Period.    37
		
	 CONFIDENTIALITY
	37

Section 8.1Confidential Information.    37
Section 8.2Restricted Access. Subject to Section 10.9:    37
Section 8.3Permitted Disclosures.    38

	
			
	 
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	 LICENSE AND OWNERSHIP; SOFTWARE
	40

Section 9.1IP License to Use.    40
Section 9.2Grant of Third Party Software License.    40
Section 9.3Effect on Licenses.    41
Section 9.4No Software Warranty.    41
Section 9.5IP Related Covenants.    42
Section 9.6Representations and Warranties.    42
		
	 EVENTS OF DEFAULT AND TERMINATION
	42

Section 10.1Seller Default.    42
Section 10.2Buyer Default.    43
Section 10.3Buyer’s Remedies Upon Occurrence of a Seller Default.    43
Section 10.4Seller’s Remedies Upon Occurrence of a Buyer Default.    44
Section 10.5Preservation of Rights.    44
Section 10.6Force Majeure.    44
Section 10.7No Duplication of Claims; Cumulative Limitation of Liability Caps.    45
Section 10.8Actions to Facilitate Continued Operations After a Buyer Termination.    45
		
	 INDEMNIFICATION
	46

Section 11.1IP Indemnity.    46
Section 11.2Indemnification of Seller by Buyer.    47
Section 11.3Indemnification of Buyer by Seller.    48

	
			
	 
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Section 11.4Indemnification of Buyer by Seller.    49
Section 11.5Limitation of Liability.    49
Section 11.6Survival.    50
		
	 MISCELLANEOUS PROVISIONS
	50

Section 12.1Amendment and Modification.    50
Section 12.2Waiver of Compliance; Consents.    50
Section 12.3Notices.    50
Section 12.4Assignment.    51
Section 12.5Dispute Resolution; Service of Process.    52
Section 12.6Governing Law, Jurisdiction, Venue.    53
Section 12.7Counterparts.    53
Section 12.8Interpretation.    53
Section 12.9Entire Agreement.    53
Section 12.10Construction of Agreement.    54
Section 12.11Severability.    54
Section 12.12Further Assurances.    54
Section 12.13Independent Contractor.    54
Section 12.14Service Providers.    54
Section 12.15Rights to Deliverables.    55
Section 12.16Limitation on Export.    55
Section 12.17Time of Essence.    55
Section 12.18No Rights in Third Parties.    55

	
			
	 
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Section 12.19No Modification or Alteration of DSGP Operating Agreement.    56

	
			
	 
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ANNEXES
Annex A    Conceptual Design
Annex B    Insurance 

EXHIBITS
Exhibit A    Specifications for New Systems
Exhibit B    Form of Bill of Sale
Exhibit C    Seller Deliverables
Exhibit D    Form of Payment Notice
Exhibit E    Form of Purchase Order
Exhibit F    Intentionally Omitted
Exhibit G    Form of Seller’s Certificate of Delivery Milestone Completion
Exhibit H    Form of Seller’s Certificate of Commissioning
Exhibit     I    Form of Conditional Lien Waiver and Final Lien Waiver
Exhibit J    Seller Corporate Safety Plan
Exhibit K    Subcontractor Quality Plan
Exhibit L    Parties’ Managers

    
SCHEDULES

Schedule 3.3(a)(ii)        Commissioning Procedures
Schedule 12.14        Approved Major Service Providers

	
			
	 
	6
	 

 

FUEL CELL SYSTEM SUPPLY AND INSTALLATION AGREEMENT
This Fuel Cell System Supply and Installation Agreement (this “Agreement”), dated as of June 14, 2019 (the “Agreement Date”), is entered into by and between BLOOM ENERGY CORPORATION, a Delaware corporation (“Seller”), and DIAMOND STATE GENERATION PARTNERS, LLC, a Delaware limited liability company (“Buyer”).  Seller and Buyer are referred to in this Agreement individually, as a “Party” and, collectively, as the “Parties.”
RECITALS
WHEREAS, Seller is in the business of designing, engineering, constructing, commissioning, operating, and maintaining solid oxide fuel cell power generating facilities; 
WHEREAS, Buyer owns all assets comprising (i) a fuel cell generation project comprised of Bloom Systems (as defined below) purchased pursuant to that certain Master Energy Server Purchase Agreement, by and between Buyer and Seller, dated April 13, 2012 and BOF (as defined below) with a Nameplate Capacity of three megawatts (3 MW) located at 512 E. Chestnut Hill Road, Newark, DE 19713 (the “Brookside Facility”); and (ii) a fuel cell generation project comprised of Bloom Systems and BOF with a Nameplate Capacity of twenty-seven megawatts (27 MW) located at 1493 River Road, New Castle, DE 19720 (the “Red Lion Facility” and, together with the Brookside Facility, the “Project”) (such Bloom Systems, the “Existing Systems”);  
WHEREAS, pursuant to the Existing System Repurchase Agreement (as defined below), Seller shall purchase from Buyer, and Buyer shall sell to Seller, in phases, each of the Existing Systems installed in the Project; and
WHEREAS, pursuant to this Agreement, Buyer desires to purchase, and Seller desires to sell, New Systems (as defined below), together with any associated New BOF (as defined below), all to be supplied, installed, and commissioned by Seller in the Project on a phased basis following the decommissioning and removal of the Existing Systems pursuant to the Existing System Repurchase Agreement, all on a turnkey basis pursuant to the terms and conditions of this Agreement.
NOW, THEREFORE, in consideration of the mutual covenants, representations, warranties and agreements hereinafter set forth, and intending to be legally bound hereby, the Parties agree as follows:
AGREEMENT

ARTICLE I. 
DEFINITIONS

Section 1.1    Definitions.  As used in this Agreement, capitalized terms not otherwise defined shall have the meanings set forth below:
“A&R Administrative Services Agreement” means that certain First Amended and Restated Administrative Services Agreement, amended and restated as of even date herewith, by and between Seller, as “Administrator,” and Buyer, as “Project Company.” 
“A&R MOMA” means that certain Amended and Restated Master Operations and Maintenance Agreement, dated as of even date herewith, by and between Seller, as “Operator,” and Buyer as “Owner.”
“A&R PUMA” means that certain Third Amended and Restated Purchase, Use and Maintenance Agreement, by and between 2016 ESA Project Company, LLC and Bloom Energy Corporation, dated September 26, 2018, as amended.
“Affiliate” of any Person means a Person that directly, or indirectly through one or more intermediaries, controls, or is controlled by, or is under common control with, the Person specified, provided that notwithstanding anything in this Agreement to the contrary, Seller is not an Affiliate of Buyer.  For purposes of this Agreement, the direct or indirect ownership of over fifty percent (50%) of the outstanding voting securities of an entity, or the right to receive over fifty percent (50%) of the profits or earnings of an entity shall be deemed to constitute control.  Such other relationships as in fact results in actual control over the management, business and affairs of an entity, shall also be deemed to constitute control.  
“Aggregate Purchase Price” means the aggregate Purchase Price under this Agreement plus the aggregate Purchase Price (as defined in the A&R PUMA), including any Purchase Price Adders (as defined in the A&R PUMA), under the A&R PUMA plus any Taxes or other fees or expenses paid by Buyer or an Affiliate of Buyer to Seller (as defined under this Agreement and the A&R PUMA), including any payment by Buyer or an Affiliate of Buyer of transaction costs incurred by Seller or an Affiliate of Seller and required to be paid by Buyer or an Affiliate of Buyer pursuant to the ECCA. 
“Agreement” is defined in the preamble.
“Agreement Date” is defined in the preamble.
“Appraisal Procedure” means within fifteen (15) days of a Party invoking the procedure described in this definition Buyer and Seller shall engage a Qualified Appraiser, mutually acceptable to them, to conclusively determine within fifteen (15) days after appointment the Fair Market Value of a New System.
“Bankruptcy” as to any Person means (a) such Person admits in writing its inability to pay its debts generally as they become due; (b) such Person files a petition or answer seeking reorganization or arrangement under the federal bankruptcy laws or any other Legal 

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Requirements of the United States of America or any State, district or territory thereof; (c) such Person makes an assignment for the benefit of creditors; (d) such Person consents to the appointment of a receiver of the whole or any substantial part of its assets; (e) such Person has a petition in bankruptcy filed against it, and such petition is not dismissed within sixty (60) days after the filing thereof; (f) a court of competent jurisdiction enters an order, judgment, or decree appointing a receiver of the whole or any substantial part of such Person’s assets, and such order, judgment or decree is not vacated or set aside or stayed within sixty (60) days from the date of entry thereof; or (g) under the provisions of any other law for the relief or aid of debtors, any court of competent jurisdiction shall assume custody or control of the whole or any substantial part of such Person’s assets and such custody or control is not terminated or stayed within sixty (60) days from the date of assumption of such custody or control. 
“Bankruptcy Laws” is defined in Section 9.3. 
“Base Case Model” means the economic model titled “Project Leone Model_Southern Power (6.12.2019) – Base Case.xslm,” posted to the Electronic Data Room on June 12, 2019.
“Bill of Sale” means a bill of sale substantially in the form set forth in Exhibit B.
“Bloom System” means a solid oxide fuel cell power generating system, capable of being powered by natural gas, which is designed, constructed and installed by Bloom Energy Corporation. For the avoidance of doubt, each Existing System and each New System constitutes a “Bloom System” for purposes of this Agreement.
“Bloom System Meter” means, with respect to a Bloom System, the internal electricity generation meter located within such Bloom System, which is designed to measure the actual electricity output in kWh produced by such Bloom System and which has the specifications listed on Exhibit A.
“BOF” means, for each Site, the (a) existing balance of facility items included in each Facility as of the Agreement Date, including, as applicable, Electrical Interconnection Facilities, the natural gas supply facilities, the water supply facilities, the data communications facilities, the foundations for the Existing Systems and any other facilities and equipment ancillary to the Existing Systems and installed in connection with the Facility at each Site and all other things ancillary to the Facility and required on or in the vicinity of the Site which are necessary for operation of the Existing Systems or which are otherwise required by the Tariff or Site Lease for such Site (“Existing BOF”), and (b) any new balance of facility items installed in a Facility after the Agreement Date, including, as applicable, any new components in respect of Electrical Interconnection Facilities, the natural gas supply facilities, the water supply facilities, or the data communications facilities, the foundations for the New Systems and any other facilities and equipment ancillary to the New Systems and installed in connection with the Facility at each Site and all other things ancillary to the Facility and required on or in the vicinity of the Site which are necessary to achieve Commissioning with respect to any New System at each such Site or which are otherwise 

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required by the Tariff or Site Lease for any New System or Site (“New BOF”).  For clarity, “BOF” excludes any Existing BOF item that is removed from a Facility as part of the Installation Services as of the date of such removal.
“Brookside Facility” is defined in the Recitals.
“BTUs” means British Thermal Units.
“Business Day” means a day other than a Saturday, Sunday or other day on which banks in New York, New York, or San Francisco, California, are authorized or required to close.
“Buyer” is defined in the preamble.
“Buyer Default” is defined in Section 10.2. 
“Buyer Indemnitee” is defined in Section 11.3(a). 
“Buyer Manager” is defined in Section 3.10(a).
“Calendar Quarter” means each period of three months ending on March 31, June 30, September 30 and December 31.
“Claiming Party” is defined in Section 10.6.
“Code” means the Internal Revenue Code of 1986, as amended.
“Commissioning” means, with respect to any New System, the completion and the performance of all of the following activities:
(a)    such New System has been installed at the applicable Facility specified in the Purchase Order, and has been Placed in Service; 
(b)    (i) such New System, based on a [*] period of operation, (A) is producing power at [*] of the System Capacity of such New System, as measured by the Bloom System Meter and (B) is operating at or above the Minimum Efficiency Level and (ii) Seller has provided Buyer with evidence reasonably satisfactory to Buyer of each of the foregoing;
(c)    Seller has (i) performed and successfully completed all necessary acts required under the applicable Interconnection Agreement (e.g., performance testing), if any, and (ii) obtained any required permission from the applicable Person granting Buyer permission to interconnect such New System with the distribution or transmission facilities of such applicable Person;
(d)    Seller shall have delivered Seller’s Certificate of Commissioning to Buyer; and

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(e)    Seller shall have delivered to Buyer each of the Seller Deliverables indicated on Exhibit C as items for delivery prior to or at Commissioning.
“Commissioning Date Deadline” means March 19, 2020.    
“Commissioning Milestone” means, with respect to any New System, the completion of the requirements of Commissioning. 
“Confidential Information” is defined in Section 8.1.
“Construction Report” is defined in Section 5.1(a)(iii).
“DDP (Incoterms 2010)” means Delivered Duty Paid (DDP) as such term is used in the International Rules for the Interpretation of Trade Terms (identified as “INCOTERMS® 2010”) as prepared by the International Chamber of Commerce.
“Delivery” means the physical delivery of a New System or New BOF materials or equipment to the applicable Site.  Upon achievement of Delivery, such New System or New BOF materials shall have been “Delivered.”
“Delivery Date” means for each New System, the date upon which the Delivery Milestone is achieved for such New System, as set forth in Seller’s Certificate of Delivery Milestone Completion.  
“Delivery Milestone” means, with respect to any New System, the completion of the following activities: 
(a)    such New System has been Delivered; 
(b)    such New System has been placed upon its applicable concrete pad in an approved location pursuant to the applicable Site Lease and is available for installation, startup, and Commissioning; 
(c)    if required by the applicable Site Lease, Buyer has received approval of the Site plans and/or single line drawings from the applicable Site Landlord in respect of the New Systems and New BOF to be installed, and Existing BOF to be reconfigured,  at such Site; and
(d)    Seller shall have delivered Seller’s Certificate of Delivery Milestone Completion to Buyer.
“Deposit” is defined in Section 2.4(a)(i). 
“Documentation” means New System documentation for a Facility, including testing, engineering, specifications, and operations and maintenance manuals, Training Materials, drawings, reports, standards, schematics, directions, samples and patterns, including any such Documentation required to be delivered prior to Commissioning under Section 3.3(a)(v).

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“DPL” means Delmarva Power & Light Company, d/b/a Delmarva Power, an investor owned utility company regulated by the Delaware Public Service Commission. 
“DPL Agreements” means the service applications between Buyer and DPL with respect to the REPS Act, the Tariff and the Gas Tariff, whereby DPL shall (a) serve as the agent for collection of amounts due from Buyer (if any) and for disbursement of amounts due to Buyer under the Tariff and (b) sell to Buyer natural gas under the Gas Tariff.
“DSGP Operating Agreement” means that certain Third Amended and Restated Limited Liability Company Agreement of Diamond State Generation Partners, LLC, as amended and restated as of even date herewith, among SP Diamond State Class B Holdings, LLC, and Diamond State Generation Holdings, LLC.
“ECCA” means that certain Equity Capital Contribution Agreement, dated as of the date hereof, among Owner, Diamond State Generation Holdings, LLC, SP Diamond State Class B Holdings, LLC, and Operator.
“Efficiency” means, with respect to a New System, the quotient of F/E, where (a) F = the fuel consumed by such Bloom System measured in BTUs on a higher heating value basis, as measured by the mass flow controller, which has the specifications listed on Exhibit A and which is included in such New System, and (b) E = the electricity produced by such Bloom System, measured in kWh, as measured by the Bloom System Meter.
“Electrical Interconnection Facilities” means the equipment and facilities required to safely and reliably interconnect a Facility to the transmission system of DPL or distribution system of PJM pursuant to the Interconnection Agreement for such Facility, including the collection system between each New System, transformers and all switching, metering, communications, control and safety equipment, including the facilities described in any applicable Interconnection Agreement.
“Electronic Data Room” means the electronic dataroom known as “Project Leone Dataroom” established by the Seller and made available to the Investor.
“Environmental Law” means any Legal Requirement which pertains to health, safety, any Hazardous Material, or the environment (including ground or air or water or noise pollution or contamination, and underground or above ground tanks) and shall include without limitation, the Solid Waste Disposal Act, 42 U.S.C. § 6901 et seq.; the Comprehensive Environmental Response, Compensation and Liability Act of 1980, 42 U.S.C. § 9601 et seq., as amended by the Superfund Amendments and Reauthorization Act of 1986; the Hazardous Materials Transportation Act, 49 U.S.C. § 1801 et seq.; the Federal Water Pollution Control Act, 33 U.S.C. § 1251 et seq.; the Clean Air Act, 42 U.S.C. § 7401 et seq.; the Toxic Substances Control Act, 15 U.S.C. § 2601 et seq.; the Safe Drinking Water Act, 42 U.S.C. § 300f et seq.; and any other state or federal environmental statutes, and all rules, regulations, orders and decrees now or hereafter promulgated under any of the foregoing, as any of the foregoing now exist or may be changed or amended or come into effect in the future.

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“Environmental Requirements” means any Environmental Law, agreement or restriction (including any condition or requirement imposed by any insurance or surety company), as the same now exists or may be changed or amended or come into effect in the future, which pertains to health, safety, any Hazardous Material, or the environment.
“Existing BOF” has the meaning set forth in the definition of “BOF.”
“Existing System Repurchase Agreement” means that certain Repurchase Agreement, dated as of even date herewith, by and between Seller, as “Buyer,” and Buyer, as “Seller.”
“Existing Systems” is defined in the Recitals.
“Facility” means, with respect to each of the Brookside Facility and the Red Lion Facility, the Existing Systems, the New Systems, and the BOF at such Site, as may at any point in time share a single Interconnection Point and be operated as a unified whole.
“Facility Services” has the meaning afforded to such term in the A&R MOMA.
“Fair Market Value” means, with respect to any New System, the price at which such asset would change hands between a willing buyer and a willing seller, neither being under any compulsion to buy or to sell, and both having reasonable knowledge of the relevant facts, and specifically with respect to a New System or any portion thereof, as determined consistently with Section 4.05 of Revenue Procedure 2007-65.  
“FERC” means the Federal Energy Regulatory Commission and any successor.
“Force Majeure Event” means any event or circumstance that (a) prevents a Party from performing its obligations under this Agreement; (b) was not reasonably foreseeable by such Party; (c) was not within the reasonable control of, or the result of the negligence of such Party or a breach of this Agreement by such Party; and (d) such Party is unable to reasonably mitigate, avoid or cause to be avoided with the exercise of due diligence.  “Force Majeure Event” may include, provided that the conditions in (a) through (d) in the foregoing sentence are met, a failure or interruption of performance due to an act of God, civil or military authority, war, civil disturbances, terrorist activities, fire, explosions, the external power delivery system (a/k/a the grid) being out of the required specifications or totally failing (a/k/a brownout or blackout), or electric grid curtailment.  Notwithstanding the foregoing, Force Majeure Event does not include the lack of economic resources of a Party.  
“Fundamental Representation” means the representations provided in Section 6.1(b), Section 6.1(h), Section 6.1(k), Section 6.1(o), and Section 6.1(s). 
“GAAP” means United States generally accepted accounting principles consistently applied.
“Gas Supply Agreement” means, with respect to (a) the Brookside Facility, that certain Large Volume Gas Qualified Fuel Cell Provider – Renewable Capable Service Agreement, dated as of June 19, 2012, by and between DPL and Buyer; and (b) the Red Lion Facility, that 

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certain Large Volume Gas Qualified Fuel Cell Provider – Renewable Capable Service Agreement, dated as of December 12, 2012, by and between DPL and Buyer.
“Gas Tariff” means DPL’s Service Classification “LVG-QFCP-RC” filed for gas service applicable to REPS Qualified Fuel Cell Provider Projects and approved by the DPSC in Order no. 8062 dated October 18, 2011, as adopted and supplemented by DPSC’s Findings, Opinion and Order No. 8079, dated December 1, 2011.
“Governmental Approvals” means (a) any authorizations, consents, approvals, licenses, rulings, permits, tariffs, rates, certifications, variances, orders, judgments, decrees by or with a relevant Governmental Authority and (b) any required notice to, any declaration of, or with, or any registration or filing by, or with, any relevant Governmental Authority.
“Governmental Authority” means any foreign, federal, state, local or other governmental, regulatory or administrative agency, court, commission, department, board, or other governmental subdivision, legislature, rulemaking board, court, tribunal, arbitrating body or other governmental authority, or the applicable Regional Transmission Organization or Independent System Operator subject to the jurisdiction of FERC (i.e., PJM as of the Agreement Date).
“Hazardous Material” means and includes those elements or compounds which are contained or regulated as a hazardous substance, toxic pollutant, pesticide, air pollutant, or as defined in any Environmental Law, order or decree of any Governmental Authority for the protection of human health, water, safety or the environment or is otherwise included in the definition of “Hazardous Materials,” “Hazardous Substance” or a similar term in a Site Lease.
“Indemnifiable Loss” means any claim, demand, suit, loss, liability, damage (including any losses arising as a result of the loss or recapture of any ITC), obligation, payment, fine, cost or expense (including the cost and expense of any investigation, action, suit, proceeding, assessment, judgment, settlement or compromise relating thereto and reasonable attorneys’ fees and reasonable disbursements in connection therewith).
“Indemnified Party” is defined in Section 11.4. 
“Indemnifying Party” is defined in Section 11.4.
“Installation Services” is defined in Section 3.3(a).
“Intellectual Property” shall mean any or all of the following and all rights therein, whether arising under the laws of the United States or any other jurisdiction (a) all patents and patent applications (and all reissues, divisions, re-examinations, renewals, extensions, provisionals, continuations and continuations-in-part thereof), patent disclosures and  inventions (whether patentable or not); (b) all trade secrets, know-how and confidential and proprietary information; (c) all copyrights and copyrightable works (including computer programs) and registrations and applications therefor and any renewals, modifications and extensions thereof; (d) all moral and economic rights of authors and inventors, however denominated, throughout the world; (e) unregistered and registered design rights and any registrations and 

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applications for registration thereof; (f) trademarks, service marks, trade names, service names, brand names, trade dress, logos, slogans, corporate names, trade styles, domain names and other source or business identifiers, whether registered or not, together with all applications therefor and all extensions and renewals thereof and all goodwill associated therewith; (g) semiconductor chip “mask” works, and registrations and applications for registration thereof; (h) database rights; (i) all other forms of intellectual property, including waivable or assignable rights of publicity or moral rights; and (j) any similar, corresponding or equivalent rights to any of the foregoing anywhere in the world.
[*]
“Interconnection Agreement” means, with respect to (a) the Brookside Facility, that certain Standard Agreement for Interconnection and Parallel Operation of Generation Facilities, dated as of March 27, 2012, by and between DPL and Buyer, with respect to PJM Generation Interconnection Request Queue Position X2-083; and (b) the Red Lion Facility, that certain Interconnection Service Agreement, dated as of June 19, 2012, by and among PJM Interconnection, L.L.C., Buyer, and DPL, with respect to PJM Generation Interconnection Request Queue Position X1-097.
“Interconnection Point” means, with respect to (a) the Brookside Facility, the “Point of Interconnection” specified in the Interconnection Agreement for such Facility; and (b) the Red Lion Facility, the “Point of Interconnection” specified in the Interconnection Agreement for such Facility.  
“Investor” means Southern Power Company.
“Invoice Due Date” means the date specified on a Payment Notice duly delivered by Seller to Buyer for the applicable New Systems in a given calendar month.
“IP License” is defined in Section 9.1.
“IRS” means the Internal Revenue Service.
“ITC” means an investment tax credit pursuant to Code Sections 38(b)(1), 46 and 48(a).
“Knowledge” means (a) as to any Person other than a natural person, the actual knowledge (including any knowledge which would reasonably have been obtained after due inquiry) of such Person and its managers, directors officers and employees who have responsibility for the transactions contemplated by this Agreement, and (b) in respect of any Person who is a natural Person, the actual knowledge (including any knowledge which would reasonably have been obtained after due inquiry) of such Person. 
“kW” means kilowatt.
“kWh” means kilowatt-hour.

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“Legal Requirement” means any law, statute, act, decree, ordinance, rule, directive (to the extent having the force of law), tariff, order, treaty, code or regulation or any interpretation of any of the foregoing, as enacted, issued or promulgated by any Governmental Authority, NERC, any Person that NERC has delegated its authority to under the Federal Power Act or any Person that operates an interstate electric transmission system, including all amendments, modifications, extensions, replacements or re-enactments thereof, in each case applicable to or binding upon such Person or any of its properties or to which such Person or any of its property is subject.
“Liens” means any lien, security interest, mortgage, hypothecation, encumbrance or other restriction on title or property interest.
“Major Service Provider” is defined in Section 12.14.
“Managers” means Seller Manager and Buyer Manager.
“Manufacturer’s Warranty” is defined in Section 4.1(b).
“Manufacturer’s Warranty Period” means, for (a) each New System, the period beginning on the Commissioning Date of such New System and ending on the first (1st) anniversary thereof, and (b) the New BOF at a Facility, the period beginning on the date that installation and commissioning of such BOF has been completed and ending on the first (1st) anniversary of the Commissioning Date of last New System Commissioned at such Facility.
“Material Adverse Effect” means, for any Person or any Facility, as applicable, any change, effect or occurrence that, individually or in the aggregate, is or could reasonably be expected to be materially adverse to (a) the business, earnings, assets, results of operations, property or condition (financial or otherwise) of such Person or any Facility, as applicable, (b) the validity or enforceability of the Tariff, any Transaction Document, any Site Lease or the transactions contemplated by this Agreement, or (c) any Person’s ability to perform its obligations under any Transaction Document or any Site Landlord’s ability to perform its obligations under the applicable Site Lease.
“Maximum Aggregate Southern Portfolio Purchase Price” means [*].
“Maximum Liability” means, with respect to each Party, [*].
“Milestone(s)” means each of the (a) Delivery Milestone, and (b) the Commissioning Milestone.
“Minimum Efficiency Level” means an Efficiency equal to 7,550 BTU/kWh.
“MW” means megawatt.
“Nameplate Capacity” means the maximum electrical output of a generator as rated by the manufacturer determined at the normal operating conditions designated by the manufacturer.

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“NERC” means the North American Electric Reliability Corporation or any successor. 
“New BOF” has the meaning set forth in the definition of “BOF.”
“New System” means a new solid oxide fuel cell power generating system, capable of being powered by natural gas, that is designed, constructed and installed by Seller at the applicable Site to replace one or more Existing Systems repurchased and removed by Seller pursuant to the Existing System Repurchase Agreement.
“Party” and “Parties” have the meanings set forth in the preamble.
“Payment Notice” means a notice delivered from Seller to Buyer pursuant to Section 2.5(c) substantially in the form set forth in Exhibit D.
“Performance Standards” is defined in Section 3.9.
“Permits” means all Governmental Approvals that are necessary under applicable Legal Requirements or this Agreement to have been obtained at such time in light of the stage of development of the Project to perform the Installation Services for the New Systems as contemplated in this Agreement or for a Party to enter into this Agreement or to consummate any transaction contemplated hereby, in each case in accordance with all applicable Legal Requirements.
“Permitted Liens” means any (a) Liens that are released or otherwise terminated at or prior to the date of achievement of the Delivery Milestone of the encumbered assets; (b) obligations or duties to any Governmental Authority arising in the ordinary course of business (including under licenses and Permits held by Buyer and under all Legal Requirements); (c) obligations or duties under easements, leases or other property rights; and (d) any other Liens agreed to in writing by Seller and Buyer.
“Person” means any individual, partnership, limited liability company, joint venture, corporation, trust, unincorporated organization, or governmental entity or any department or agency thereof.
“PJM” means PJM Interconnection, LLC.
“PJM Agreements” is defined in the Tariff.
“PJM Market Rules” means (a) the rules and obligations set forth in Section C (Sales of Energy, Capacity, Other Available Product) of the Tariff, and (b) the provisions of all applicable PJM rules and procedures pertaining to generation and transmission, including the rules and procedures concerning the dispatch of generation or scheduling transmission set forth in the applicable PJM tariff, the PJM operating agreement, and applicable PJM manuals.
“Placed in Service” means, with respect to any New System, the completion and performance of all of the following activities: (a) obtaining the necessary licenses and Permits (if any) 

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for the operation of such New System and the sale of power generated by the New System in accordance with clause (d) of this definition, (b) satisfactory completion of all tests necessary for the proper operation of such Facility in accordance with clause (d) of this definition, (c) if necessary, synchronization of such New System onto the electric distribution and transmission system of DPL or PJM, as applicable, and (d) the commencement of regular, continuous, daily operation of such New System.
“Pre-Commissioning Equipment Warranty” is defined in Section 4.1(a).
“Pre-Commissioning Equipment Warranty Period” is defined in Section 4.1(a).
“Project” is defined in the Recitals.
“Project Model” means the economic model incorporating a number of facts, including the availability and amount of tax credits and other incentives, to be delivered from Seller to Buyer from time to time pursuant to Section 2.7.
“Prudent Electrical Practices” means those practices, methods, equipment, specifications and standards of safety and performance, as the same may change from time to time, as are commonly used by a significant portion of the grid-tied fuel cell electrical generation industry operating in the United States and/or approved or recommended by the NERC as good, safe and prudent engineering practices in connection with the design, construction, operation, maintenance, repair and use of electrical and other equipment, facilities and improvements of electrical generating facilities, including any applicable practices, methods, acts, guidelines, standards and criteria of FERC and all applicable Legal Requirements.
“Purchase Date” means, with respect to a New System, the date that the conditions set forth in Section 2.6(b) (as such conditions may be waived by Buyer in its sole discretion) are satisfied with respect to such New System, as such date is evidenced in the Bill of Sale for such New System.
“Purchase Order” means Buyer’s purchase order for a New System or New Systems to be purchased by Buyer in substantially the form of Exhibit E.
“Purchase Price” means a price for the design, installation and purchase of each New System, determined pursuant to Section 2.7. The Purchase Price for the period between the Agreement Date and the first adjustment thereto pursuant to Section 2.7 shall be calculated at the rate designated for such period in the Base Case Model plus any Taxes for the account of Buyer under Section 2.4(d) in respect of such New System; provided, however, that Taxes shall not be included in the calculation of the Purchase Price for invoices issued pursuant to Section 2.4(a)(i).
“Qualified Appraiser” means a nationally recognized third-party appraiser reasonably acceptable to Buyer and Seller which shall (a) be qualified to appraise power systems similar to the New Systems, and experienced in such businesses in the general geographic region of the relevant Facility, and (b) not be associated with either Buyer or Seller or any Affiliate thereof.  If the Parties cannot agree on a third-party appraiser within fifteen (15) days of a 

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Party invoking the Appraisal Procedure, then Marshall & Stevens Incorporated shall act as the Qualified Appraiser.
“Qualified Fuel Cell Provider” shall have the meaning afforded such term in Section 352(16) of the Renewable Energy Portfolio Standards Act, as amended by S.B. 124, enacted July 10, 2011 (Title 26, Chap. 1, section 351 et seq. of the Code of the State of Delaware). 
“Qualified Fuel Cell Provider Project” shall have the meaning afforded such term in Section 352(17) of the Renewable Energy Portfolio Standards Act, as amended by S.B. 124, enacted July 10, 2011 (Title 26, Chap. 1, section 351 et seq. of the Code of the State of Delaware). 
“Red Lion Facility” is defined in the Recitals.
“Representatives” of a Party means such Party’s authorized representatives, including its professional and financial advisors.
“REPS Act” means the Renewable Energy Portfolio Standards Act, as amended by S.B.124, enacted July 10, 2011 (Title 26, Chap. 1, section 351 et seq. of the Code of the State of Delaware).
“Repurchase Amount” means, with respect to any New System, the sum of (a) the applicable Repurchase Value, (b) one hundred percent (100%) of the Taxes, if any, which were paid by or on behalf of Buyer pursuant to Section 2.4(d) for such New System, and (c) one hundred percent (100%) of any Taxes, if any, that are required to be paid by Seller in connection with the return and repurchase of such New System.
“Repurchase Value” means, with respect to any New System, the greater of (a) the Fair Market Value of such New System (as determined under the Appraisal Procedure if Buyer and Seller cannot agree as to that Fair Market Value within ten (10) days), and (b) 100% of the Purchase Price for such New System until the first anniversary of Commissioning, declining by [*] on such first anniversary and on each anniversary of such date thereafter (for example, on the fourth anniversary of Commissioning, the Repurchase Value will decline to [*] of the Purchase Price), in each case as calculated as of the date that Seller becomes obligated to pay such amount to Buyer.  
“SCADA” means the supervisory control and data acquisition systems.
“Seller” is defined in the preamble.
“Seller Default” is defined in Section 10.1.
“Seller Deliverables” means, with respect to each New System, the items listed in Exhibit C.
“Seller Indemnitee” is defined in Section 11.2.

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“Seller Personnel” means any Person who is performing any Installation Services at the direction (or on behalf) of Seller, including the Seller Manager, any subcontractors (at any tier), Service Providers (including Major Service Providers), Representatives, or agents (irrespective if such Person is employed or engaged by Seller, Buyer, an Affiliate of Seller or any other Person).
“Seller’s Certificate of Commissioning” means a certificate, substantially in the form set forth in Exhibit H, issued by Seller to Buyer pursuant to paragraph (d) of the definition of Commissioning.
“Seller’s Certificate of Delivery Milestone Completion” means a certificate, substantially in the form set forth in Exhibit G, issued by Seller to Buyer pursuant to paragraph (d) of the definition of Delivery Milestone.
“Seller’s Intellectual Property” is defined in Section 9.1.
“Seller Manager” is defined in Section 3.10(a).
“Service Provider” means an installation contractor appointed by Seller and, if required, approved by Buyer pursuant to Section 12.14.
“Shipment” means for each New System, shipment of such New System from Seller’s manufacturing facility to the Site.
“Site” means, with respect to the Brookside Facility and the Red Lion Facility, the real property leased to Buyer for the use of such Facility pursuant to the Site Lease for such Facility.
“Site Landlord” means the applicable landlord under a Site Lease.
“Site Lease” means, with respect to (a) the Brookside Facility, that certain Lease Agreement, dated as of April 19, 2012, by and between the Delaware Department of Transportation and Buyer; and (b) the Red Lion Facility, that certain Amended and Restated Lease Agreement, dated as of June 26, 2012, by and between DPL and Buyer.
“Software” shall mean all computer software that is necessary for Buyer to own and operate the New Systems in compliance with the terms of this Agreement, the Tariff, PJM Market Rules, the PJM Agreements, the DPL Agreements, the DSGP Operating Agreement, and the Site Leases.  
“Software License” is defined in Section 9.2(a).
“Specifications” means the specifications for the New Systems, as applicable, as set forth in Exhibit A. 
“Southern Portfolio” means all [*].

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“System Capacity” means, with respect to a New System, the “System Capacity” set forth on the applicable specification sheet provided by the manufacturer of such New System.
“Tariff” means Service Classification “QFCP-RC” as administered by DPL, as approved by the DPSC in Order no. 8062 dated October 18, 2011, as adopted and supplemented by DPSC’s Findings, Opinion and Order No. 8079, dated December 1, 2011.
“Tax” (and, with correlative meaning, “Taxes”) means:
(a)    any taxes, customs, duties, charges, fees, levies, penalties or other assessments imposed by any federal, state, local or foreign taxing authority, including income, gross receipts, windfall profit, severance, property, production, sales, use, license, excise, franchise, net worth, employment, occupation, payroll, withholding, social security, alternative or add-on minimum, ad valorem, transfer, stamp, or environmental tax, or any other tax, custom, duty, fee, levy or other like assessment or charge of any kind whatsoever, together with any interest, penalty, addition to tax, or additional amount attributable thereto; and
(b)    any liability for the payment of amounts with respect to payment of a type described in clause (a), including as a result of being a member of an affiliated, consolidated, combined or unitary group, as a result of succeeding to such liability as a result of merger, conversion or asset transfer or as a result of any obligation under any tax sharing arrangement or tax indemnity agreement.
“Term” means the period which (a) shall commence on the Agreement Date and (b) shall, unless terminated earlier under ARTICLE X of this Agreement or unless extended by mutual agreement of the Parties, terminate on the date on which the last New System in the Project achieves Commissioning.
“Third Party Claim” means any claim, action, or proceeding made or brought by any Person who is not (a) a Party to this Agreement, or (b) an Affiliate of a Party to this Agreement.
“Third Party Warranty” is defined in Section 3.7.
“Training Materials” is defined in Section 12.15.
“Transaction Documents” means the ECCA, DSGP Operating Agreement, the A&R MOMA, this Agreement, the A&R Administrative Services Agreement, and the Existing System Repurchase Agreement.

Section 1.2    Other Definitional Provisions.
(a)    All exhibits, annexes, and schedules attached to this Agreement are incorporated herein by this reference and made a part hereof for all purposes.  References to sections, exhibits, annexes and schedules are, unless otherwise indicated, references to sections, exhibits, annexes and schedules to this Agreement. References to a section shall mean the referenced section and all sub-sections thereof. 

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(b)    As used in this Agreement and in any certificate or other documents made or delivered pursuant hereto or thereto, financial and accounting terms not defined in this Agreement or in any such certificate or other document, and financial and accounting terms partly defined in this Agreement or in any such certificate or other document to the extent not defined, will have the respective meanings given to them under GAAP.  To the extent that the definitions of financial and accounting terms in this Agreement or in any such certificate or other document are inconsistent with the meanings of such terms under GAAP, the definitions contained in this Agreement or in any such certificate or other document will control.
(c)    The words “hereof,” “herein,” “hereunder,” and words of similar import when used in this Agreement will refer to this Agreement as a whole and not to any particular provision of this Agreement.  The terms “including” and “includes” mean “including without limitation” and “includes without limitation,” respectively.
(d)    The definitions contained in this Agreement are applicable to the singular as well as the plural forms of such terms and to the masculine as well as to the feminine and neuter genders of such terms.
(e)    Any agreement or instrument defined or referred to herein or in any instrument or certificate delivered in connection herewith means (unless otherwise indicated herein) such agreement or instrument as from time to time amended, amended and restated, modified or supplemented and includes (in the case of agreements or instruments) references to all attachments thereto and instruments incorporated therein.
(f)    Any references to a Person are also to its permitted successors and assigns.
(g)    References to any statute, code or statutory provision are to be construed as a reference to the same as it exists as of the Agreement Date or Purchase Date, as applicable, and include references to all bylaws, instruments, orders and regulations for the time being made thereunder or deriving validity therefrom unless the context otherwise requires.

ARTICLE II.     
PURCHASE AND SALE

Section 2.1    Appointment of Seller.  Subject to Section 12.13, Buyer hereby appoints Seller to act as Buyer’s provider of New Systems and Installation Services, and Seller hereby accepts such appointment and agrees to provide all such New Systems and Installation Services, inclusive of all labor, equipment, materials, supplies, and tests therefor, in accordance with the terms and conditions set forth in this Agreement.  Seller’s entire consideration for supplying the New Systems, the associated BOF therefor, and the Installation Services for such New Systems shall be the Purchase Price for such New System. Seller shall bear the financial risk regarding any cost overruns, claims for subcontractors or other liabilities in respect of the New Systems and the associated Installation Services.

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Section 2.2    Conceptual Design.  Each New System and BOF to be installed hereunder shall be installed in accordance with the conceptual design for the Project, as set forth hereto as Annex A.  Unless Buyer in its sole discretion agrees otherwise in writing, all New Systems and BOF to be installed hereunder shall be installed at the Red Lion Facility and not the Brookside Facility.

Section 2.3    Purchase Orders. 
(a)    In connection with the Agreement Date and thereafter not later than ten (10) Business Days prior the first date of each calendar month, Seller will provide to Buyer a draft Purchase Order from Buyer for the New Systems that Seller expects will be Delivered in the applicable calendar month.  So long as no Seller Default has occurred and is continuing hereunder, Buyer will, within five (5) Business Days of such notice, submit to Seller an executed Purchase Order for such New Systems.  So long as no Buyer Default has occurred and is continuing hereunder, Seller shall promptly accept each such Purchase Order by countersigning and returning it to Buyer; provided that the failure of Seller to countersign or return to Buyer a Purchase Order shall not invalidate such Purchase Order and Seller shall be obligated to deliver such New System under such Purchase Order as contemplated by this Agreement. 
(b)    Notwithstanding anything to the contrary set forth in this Agreement, the Parties acknowledge and agree that, unless mutually agreed in writing by the Parties, in no event shall the Aggregate Purchase Price exceed the Maximum Aggregate Southern Portfolio Purchase Price.  Accordingly, in furtherance and not in limitation of the foregoing, Seller shall not provide Buyer with a Payment Notice for, and Buyer shall have no obligation to issue a Purchase Order or otherwise pay any portion of the Purchase Price in connection with, any New System(s) which, upon Commissioning with respect to such New System(s), would result (or be reasonably likely to result) in the Aggregate Purchase Price exceeding the Maximum Aggregate Southern Portfolio Purchase Price, unless mutually agreed in writing by the Parties. 

Section 2.4    Invoicing of Purchase Price.  
(a)    Seller shall invoice Buyer hereunder as follows: 
(i)    on the Agreement Date, a Deposit for all New Systems to be purchased hereunder in the amount of [*] (the “Deposit”); and
(ii)    upon Commissioning for each New System, the remainder of the Purchase Price, if any, not previously paid (calculated, and adjusted from time to time, in accordance with this Agreement), for such New System, plus one hundred percent (100%) of the Taxes to be paid by Buyer pursuant to Section 2.4(d) for such New System.   
(b)    Each invoice issued pursuant to Section 2.4(a)(ii) shall:
(i)    include the following information for each applicable New System:

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(1)    Buyer’s Purchase Order number;
(2)    the Facility and location (e.g., the Bloom “Site ID”) within such Facility in which such New System is installed;
(3)    the serial number and System Capacity of each New System;
(4)    the Purchase Price, including details of (x) all amounts previously paid towards or credited against the Purchase Price, and (y) all amounts remaining due and payable on the Purchase Price;
(5)    the Delivery Date; 
(6)    the Purchase Date; 
(7)    Seller wiring instructions/ACH instructions and contact information for a Seller Representative or Seller’s bank to confirm the validity of such instructions; and
(8)    the date of achievement of Commissioning.
(ii)    include a final waiver and release of Liens for such New System, conditioned only upon final payment of the Purchase Price for such New System, executed by Seller in substantially the form set forth in Exhibit I.  
(c)    Buyer shall, promptly following receipt of an invoice and reasonable supporting documentation thereof, remit to Seller all deposits, performance assurance, or amounts otherwise posted or provided by Seller in connection in connection with any Government Approvals, or interconnection applications, in each case with respect to a New System and to the extent that such amounts are returned by such counterparty to Buyer and not Seller.
(d)    Buyer shall pay all state and local sales, use or other transfer Taxes required to be paid by Buyer and attributable to the transfer of the New System to Buyer, except that Seller shall be responsible for and pay any Taxes arising as a result of any components of such New System or any New System being acquired from a source outside of the United States.
(e)    Seller shall consider in good faith any requests made by Buyer following the  Agreement Date to include additional information related to any New Systems to be purchased hereunder in connection with invoices issued with respect to New Systems that have been Commissioned.

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Section 2.5    Payment of Purchase Price.  
(a)    Buyer shall pay the Deposit on the Agreement Date and shall pay all other outstanding Purchase Price invoices on a monthly basis in accordance with the terms of this Section 2.5.
(b)    Not less than eight (8) Business Days prior to the Invoice Due Date for all invoices to be paid by Buyer for the applicable calendar month, Seller shall deliver to Buyer: 
(i)    A draft Payment Notice, setting forth the anticipated aggregate Purchase Price for all New Systems to be paid in such month; and
(ii)    Seller’s Certificates of Commissioning evidencing the achievement of the Commissioning Milestone achieved by the applicable New Systems prior to the date of such draft Payment Notice.
(c)    Not less than four (4) Business Days prior to the applicable Invoice Due Date for all invoices issued pursuant to Section 2.4(a)(ii) that are to be paid by Buyer for such calendar month, Seller shall deliver to Buyer:
(i)    an executed Payment Notice, setting forth the actual aggregate Purchase Price for all New Systems to be paid by Buyer in such month, which amount shall in no event exceed the amount notified by Seller to Buyer in the applicable draft Payment Notice except to the extent of any adjustment to such amount resulting from Section 2.7; 
(ii)    Seller’s Certificates of Commissioning, to the extent not previously delivered, evidencing the achievement of the Commissioning Milestones achieved as of such date by the applicable New Systems between the date on which the draft Payment Notice and accompanying Seller’s Certificates of Commissioning were delivered and the date on which the executed Payment Notice was delivered.
(d)    Buyer shall, on the applicable Invoice Due Date indicated in the executed Payment Notice delivered by Seller pursuant to Section 2.5(c), make Purchase Price payments for each New System included in such Payment Notice for which Seller has issued invoices pursuant to Section 2.4(a)(ii) and delivered Seller’s Certificates of Commissioning evidencing the satisfaction of the Commissioning Milestone. 
(e)    If Buyer defaults in any payment when due for any New System (other than with respect to amounts being disputed in good faith), Seller may, on not less than five (5) Business Days prior notice to Buyer, at its option and without prejudice to its other remedies, require that (until all such outstanding payment defaults have been cured) the payment of the portion of the Purchase Price for future New Systems required under Section 2.4(a)(ii) above be made immediately prior to the Shipment of the applicable New Systems.

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(f)    Seller shall promptly pay all subcontractors working on the New Systems delivered and installed under this Agreement (including, for clarification, subcontractors working off-Site), and shall, at the time of each payment made to any such subcontractor, obtain a partial or final Lien waiver, as applicable, in a form approved by Buyer, and promptly provide Buyer with a copy of each such Lien waiver for any payments made to (i) a subcontractor in excess of [*] for any invoice or [*] in the aggregate or (ii) a Major Service Provider. Seller shall discharge any Liens by such subcontractors within thirty (30) days of receiving notice thereof.  Seller shall release all Liens in favor of Seller on each Facility upon final payment of the Purchase Price for the final New System installed at such Facility.  Upon the failure of Seller to discharge a Lien required to be discharged under this Section 2.5, or else promptly to provide a bond in an amount and from a surety acceptable to Buyer to protect against such Lien, in each case, within thirty (30) days after Seller is aware of the existence thereof, Buyer may, but shall not be obligated to, pay, discharge or obtain a bond or security for such Lien and, upon such payment, discharge or posting of security therefor, shall be entitled immediately to recover from Seller the amount thereof, together with all reasonable and necessary expenses actually incurred by Buyer in connection with such payment or discharge, or to set off all such amounts against any amounts owed by Buyer to Seller hereunder or under the A&R MOMA.  
(g)    With respect to any payment due from one party to the other pursuant to this Agreement, unless being contested in good faith, interest shall accrue daily at the lesser of a monthly rate of one and five-tenths percent (1.5%) or the highest rate permissible by law on the unpaid balance.
(h)    Buyer at its sole option is hereby authorized to setoff any undisputed amounts owed Buyer under the A&R MOMA or this Agreement, as applicable, and which are past due against any amounts owed by Buyer to Seller under the A&R MOMA or this Agreement. The rights provided by this paragraph are in addition to and not in limitation of any other right or remedy (including any right to set-off, counterclaim, or otherwise withhold payment) to which Buyer may be entitled (whether by operation of law, contract or otherwise).  

Section 2.6    Purchase and Sale of New Systems.  
(a)    Upon the satisfaction of the conditions set forth in Section 2.6(b) (as may be waived by Buyer in its sole discretion) with respect to a New System, Seller shall sell, assign, convey, transfer and deliver to Buyer, and Buyer shall purchase, assume and acquire from Seller, all of Seller’s right, title and interest in and to such New System, effective as of the Purchase Date.
(b)    Conditions Precedent to the Purchase Date.  Buyer’s obligation to purchase, assume, and acquire a New System from Seller shall be subject to Seller’s satisfaction of the following conditions precedent (as may be waived by Buyer in its sole discretion):
(i)    such New System has not been Placed in Service; 

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(ii)    Seller has delivered Seller’s Certificate of Delivery Milestone Completion for such New System to Buyer; 
(iii)    Seller has delivered a Bill of Sale for such New System to Buyer, dated as of the date set forth in Seller’s Certificate of Delivery Milestone Completion for such New System; and
(iv)    each representation and warranty made by Seller on such Purchase Date is true and correct as of such Purchase Date; and
(v)    each of the Transaction Documents remains in full force and effect.

Section 2.7    Purchase Price Adjustments. 
(a)    Not later than ten (10) Business Days (i) prior to the end of each Calendar Quarter and (ii) after the final day of the calendar month in which the final New System is purchased hereunder, Seller shall deliver to Buyer a revised Project Model, reflecting the Base Case Model updated solely to reflect (1) with respect to each New System that has achieved the Commissioning Milestone, (A) the dates on which Buyer paid each portion of the Purchase Price for such New System and the amount of such payments, (B) the date on which such New System achieved the Commissioning Milestone, and (C) if applicable, any reduction of ITC resulting from a failure of Seller to achieve the Commissioning Milestone in respect of such New System by the Commissioning Date Deadline for any reason, including a Force Majeure Event, and (2) with respect to each New System that Seller reasonably expects to achieve the Commissioning Milestone following the delivery of such revised Project Model, (A) the dates on which Buyer has paid, or is expected to pay, each portion of the Purchase Price for such New System and the amount of such payments, (B) the date on which Seller reasonably expects such New System to achieve the Commissioning Milestone and (C) any reduction of ITC expected to result from a failure of Seller to achieve the Commissioning Milestone in respect of such New System by the Commissioning Date Deadline for any reason, including a Force Majeure Event.
(b)    Notwithstanding anything to the contrary set forth in Section 2.7(a),
(i)    In the event that the calculation performed pursuant to Section 2.7(a) as of any date would, if applied to all New Systems that are reasonably expected to achieve Commissioning after such date (each, a “[*]”), result (or be reasonably likely to result) in the Aggregate Purchase Price exceeding the Maximum Aggregate Southern Portfolio Purchase Price, the Purchase Price for each such Post-Calculation New System shall instead be that amount that would result in the Aggregate Purchase Price equaling the Maximum Aggregate Southern Portfolio Purchase Price. 
(ii)    For the avoidance of doubt and notwithstading anything to the contrary set forth in this Section 2.7, in no event shall any adjustment to the Purchase Price result (or be reasonably likely to result) in the Aggregate Purchase Price 

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exceeding the Maximum Aggregate Southern Portfolio Purchase Price, unless mutually agreed in writing by the Parties.
(c)     Parties will mutually agree on an adjusted Purchase Price for the New Systems within five (5) Business Days of Buyer’s receipt of the revised Project Model pursuant to Section 2.7(a), which shall be used as (i) the final Purchase Price for all New Systems invoiced and paid in the current Calendar Quarter (or, in the case of the final Project Model adjustment, the applicable month), and (ii) the Purchase Price for purposes of all invoices delivered in the following Calendar Quarter (until the date of the next adjustment made pursuant to this Section 2.7).  Within five (5) Business Days of the Parties’ agreement on such adjusted Purchase Price, Buyer shall amend and reissue each invoice previously delivered by Seller to Buyer for the current Calendar Quarter (or, in the case of the final Project Model adjustment, the applicable month) to reflect the Purchase Price determined pursuant to this Section 2.7(c).  For the avoidance of doubt, no adjustments shall be made hereunder with respect to any payments from Buyer to Seller made in any Calendar Quarter prior to the current Calendar Quarter.  Without in any way limiting the provisions of Section 6.1(k), Seller makes no representation, warranty or guaranty regarding Buyer’s expected rate of return as a result of the purchase of the New Systems hereunder. 
(d)    Following the reissuance of invoices pursuant to Section 2.7(c), if Buyer has made any over-payments or under-payments in respect of such invoices, Seller shall apply such over-payments or under-payments as a credit against, or addition to, the amount owed by Buyer with respect to the invoices to be paid on the final Invoice Due Date of the current Calendar Quarter (or, in the case of the final Project Model adjustment, the applicable month); provided, however, that if such adjustment results in Buyer owing no payments to Seller with respect to such invoices but fails to fully compensate Buyer for prior over-payments, Seller shall remit the remaining balance of any over-payments to Buyer within thirty (30) days following the applicable Invoice Due Date.

ARTICLE III.     
DELIVERY AND INSTALLATION OF NEW SYSTEMS AND NEW BALANCE OF FACILITIES

Section 3.1    Access to Site.  Seller shall be responsible for ascertainment of the suitability of the Facilities, the environment around the Facilities, the Facilities’ soil condition and other ground conditions for installation of the New Systems.  Buyer shall provide Seller with access to the Facilities as necessary to permit Seller to deliver each New System to the applicable Site and to install and Commission such New System in the applicable Project in accordance with the applicable Site Lease.

Section 3.2    Delivery; Title; Risk of Loss.  Delivery of each New System shall be DDP (Incoterms 2010) to its Site, in accordance with the Uniform Commercial Code then in effect.  Title to each New System and to any related New BOF (to the extent the Cost Segregation Report reflects that such New BOF is part of the “fuel cell power plant” of such New System within the meaning of Section 48(c)(1)(C) of the Code) shall pass to Buyer upon the Purchase Date of such New System, 

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and such title shall be good and marketable and free of all Liens, except for Permitted Liens.  From and after the Purchase Date of each New System all risk of loss or damage to such New System and such related New BOF shall be borne by Buyer.  Title and risk of loss or damage to all other New BOF at a Facility that is not part of the “fuel cell power plant” of any New System at such Facility within the meaning of Section 48(c)(1)(C) of the Code shall pass to Buyer on the date that installation and commissioning of such New BOF has been completed, and such title shall be good and marketable and free of all Liens, except for Permitted Liens.

Section 3.3    Installation Services.  
(a)    Seller shall perform all development, design, engineering, procurement, construction, and commissioning services necessary in connection with the installation, interconnection, testing, start-up, and commissioning the New Systems to achieve Commissioning (collectively, “Installation Services”), including the following activities:
(i)    Seller shall be solely responsible for the means, methods, techniques, sequences, and procedures employed for execution and completion of the engineering, procuring, constructing, installing, and commissioning any New BOF and for reconfiguring any Existing BOF required for New Systems to achieve Commissioning, and Seller shall cause each New System to achieve Commissioning without any compensation or reimbursement by Buyer, other than the Purchase Price under this Agreement; 
(ii)    Within thirty (30) days following Commissioning of the last New System Purchased hereunder and installed at a Facility, Seller shall remove and dispose of any Existing BOF that is unnecessary for operation of the New Systems at a Facility; provided, that Seller may leave in place any properly stubbed and undamaged natural gas, water and/or electrical stub-ups and any undamaged concrete pads if such items in the condition that Seller leaves them are permitted to be so left in place under the applicable Site Lease, Prudent Electrical Practices, and applicable Legal Requirements;  
(iii)    Seller shall obtain and maintain, or cause to be obtained and maintained (where required, in the name of Buyer), all Permits necessary to design, install, commission, construct, occupy, and operate each New System at each Site; 
(iv)    Seller shall cause to be performed any and all studies, reports and applications (in the name of Buyer) that are necessary for interconnection to the distribution and transmission facilities of DPL or PJM, as applicable to the particular Facility;
(v)    Seller shall perform all commissioning work in accordance with the provisions of Schedule 3.3(a)(iii).
(vi)    If requested by Buyer, Seller shall provide operator training and associated training materials to personnel and Representatives of Buyer sufficient 

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to instruct Buyer on operation of such New System in connection with safety requirements and in conformance with Prudent Electrical Practices; 
(vii)    Commissioning. Promptly following achievement of the Delivery Milestone for each New System, Seller shall provide installation, inspection, commissioning and start-up for such New System in accordance with the installation manuals provided for such New System and the applicable Site Lease, and shall make best efforts to cause such New System to achieve Commissioning within sixty (60) days of the date of achievement of the Delivery Milestone for such New System, as set forth in Seller’s Certificate of Delivery Milestone Completion for such New System.  Without limitation of the foregoing, each New System shall be connected by Seller to the applicable natural gas source, water source, SCADA, and Electrical Interconnection Facilities;
(viii)    Seller shall deliver to Buyer each of the Seller Deliverables set forth on Exhibit C in accordance with the timing for each such item as set forth on such Exhibit C;
(ix)    Following Commissioning of all New Systems to be installed in a Facility, Seller shall promptly remove all waste materials and rubbish from and around the Site as well as all of its tools, construction equipment, machinery, and surplus materials as reasonably necessary to restore each Site to a condition reasonably satisfactory to the applicable Site Landlord or as otherwise required by the applicable Site Lease; 
(x)    Seller’s supply of the New Systems hereunder, and performance of the Installation Services therefor, shall be fully comprehensive of all services, labor, and equipment necessary to complete installation of a fully commissioned and operating New System in accordance with this Agreement, the applicable Interconnection Agreement, and the applicable Site Lease;
(xi)    Seller shall, and shall cause each of its subcontractors to, install the New Systems at each Site using items that are new, and undamaged at the time of such use or installation; and
(xii)    Seller shall pay all amounts owed to its subcontractors and vendors in connection with the performance of the Installation Services on a timely basis and shall hold Buyer harmless against any claims asserted by such subcontractors and vendors.
(b)    Seller shall be responsible, at its sole cost and expense, for maintaining and complying with all Permits required to perform the Installation Services under this Agreement.  Buyer agrees to cooperate with and assist Seller in obtaining such Permits.
(c)    Seller shall cause all Installation Services to be performed in a good and workmanlike manner, free from defective materials, and in accordance with the Performance Standards, free and clear of all Liens other than Permitted Liens.

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Section 3.4    Commissioning Date Deadline. Provided that Buyer has waived the Maximum Aggregate Southern Portfolio Purchase Price restrictions set forth in Section 2.3(b) and Section 2.7(b) no later than November 15, 2019, Seller shall supply all New Systems and perform, or cause to be performed, all Installation Services in a timely manner to achieve Commissioning of all 27.5MW of New Systems by the Commissioning Date Deadline; provided, however, that if the Maximum Aggregate Southern Portfolio Purchase Price restrictions set forth in Section 2.3(b) and Section 2.7(b) are not waived, then Seller shall supply all New Systems and perform, or cause to be performed, all Installation Services in a timely manner to achieve Commissioning by the Commissioning Date Deadline of the greatest number of such New Systems as can be Commissioned consistent with the limitations of Section 2.3(b) and Section 2.7(b). 

Section 3.5    Insurance.  Seller shall maintain the insurance described in Annex B.

Section 3.6    Disposal; Right of First Refusal.
(a)    Except as set forth in Section 12.4, Section 11.9 of the MOMA, or in connection with a repurchase of an Existing System pursuant to the Existing System Repurchase Agreement, in the event that Buyer decides to scrap, abandon or otherwise dispose of any Bloom System, Buyer shall notify Seller and Seller shall have the right but not the obligation to obtain title to the Bloom System and remove the Bloom System at Seller’s cost; provided, however, that Seller will not be responsible for remediation of the Site in which the Bloom System was located.   
(b)    Except as set forth in Section 12.4 or in connection with a repurchase of an Existing System pursuant to the Existing System Repurchase Agreement, in the event that Buyer or its Affiliates desire to sell or otherwise transfer title to any Bloom System to a transferee other than an Affiliate of Buyer, Buyer shall notify Seller and Seller shall have the right of first refusal to purchase or acquire the Bloom System on the same terms and conditions of such sale.  In the event that Seller exercises such right of first refusal, Seller shall, promptly following payment of the purchase price of such Bloom System, remove the Bloom System at Seller’s cost, including the remediation of the Site in which the Bloom System was located in accordance with the terms of the applicable Site Lease.  

Section 3.7    Third Party Warranties.  If any express or implied warranties, indemnities, guaranties, remedies, covenants and other rights which any subcontractor or supplier has made to Seller with respect to any good, service, or other deliverable furnished under this Agreement in respect of a New System or New BOF (each a “Third Party Warranty”) would provide an additional rights to Buyer beyond the warranties under ARTICLE IV, then (a) such Third Party Warranty providing additional rights will be for the benefit of and passed through to Buyer to the fullest extent possible, (b) Seller transfers and assigns to Buyer all of Seller’s right, title and interest under such Third Party Warranty to exercise such additional rights, and (c) Seller hereby appoints Buyer as attorney-in-fact coupled with an interest to exercise and enforce all such additional rights in the name of either Buyer or Seller.  Nothing in this Section 3.7 will limit Seller’s obligations to Buyer under ARTICLE IV.

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Section 3.8    Access; Cooperation.  Seller shall provide to Buyer such other information that is in the possession of Seller or its Affiliates or is reasonably available to Seller regarding the permitting, engineering, construction, or operations of Seller, its subcontractors or the Facilities, and other data concerning Seller, its subcontractors or the Facilities that Buyer may, from time to time, reasonably request in writing, subject to Seller’s obligations of confidentiality to third parties with respect to such information. Seller shall not knowingly take any action or omit to take any action as would cause Buyer in any material respect to violate any Legal Requirements, and to the extent that Seller has knowledge of any such existing or prospective violation take, or cause to be taken, commercially reasonable actions, to redress or mitigate any such violation, which action shall be at Seller’s sole expense if Seller is obligated to perform such action as part of this Agreement, and otherwise shall be at Buyer’s sole expense. For the avoidance of doubt, Seller shall not be excused from any indemnification obligations, claims for damages or Indemnifiable Losses suffered by Buyer to the extent caused by Seller’s violation of Legal Requirements or Buyer’s violation of Legal Requirements to the extent relating to, resulting from or arising out of or in connection with any act or omission by Seller, Seller Affiliate or any Seller Personnel in respect of Installation Services or any Operator Personnel in respect of Facility Services that Seller is obligated to perform on behalf of Buyer.  Seller shall give to Buyer prompt written notice of any material disputes with Governmental Authorities.  Seller shall furnish, or cause to be furnished, to Buyer copies of all material documents furnished to Seller by any Governmental Authority in respect of Buyer or any New System.

Section 3.9    Performance Standards.  For the purpose of this Agreement, Seller shall perform under this Agreement in accordance and consistent with each of the following to the extent applicable to the sale of the New Systems and New BOF and the performance of the Installation Services (unless the context requires otherwise): (A) plans and specifications subject to Permits under Legal Requirements and applicable to each New System; (B) the manufacturer’s recommendations with respect to all equipment and all maintenance and operating manuals or service agreements, whenever furnished or entered into, including any subsequent amendments or replacements thereof, issued by the manufacturer, provided they are consistent with generally accepted practices in the fuel cell industry; (C) the requirements of all applicable insurance policies; (D) preserving all rights to any incentive payments, warranties, indemnities or other rights or remedies, and enforcing or assisting with the enforcement of the applicable warranties, making or assisting in making all claims with respect to all insurance policies; (E) the Tariff, the PJM Market Rules, the DPL Agreements and the PJM Agreements; (F) all Legal Requirements and Permits/Governmental Approvals; (G) any applicable provisions of the Site Leases; (H) Prudent Electrical Practices; (I) the relevant provisions of each Interconnection Agreement; (J) the Seller Corporate Safety Plan provided in Exhibit J (as updated by Seller from time to time, with a copy provided promptly to Buyer); (K) the Seller Subcontractor Quality Plan provided in Exhibit K (as updated by Seller from time to time, with a copy provided promptly to Buyer); and (L) all Environmental Requirements (collectively, the “Performance Standards”); provided, however, that meeting the Performance Standards shall not relieve Seller of its other obligations under this Agreement.  

Section 3.10    Coordination of Relationship.
(a)    Managers.  Seller will appoint an individual to serve as its primary contact person with regard to this Agreement (the “Seller Manager”), and Buyer will appoint an 

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individual to serve as its primary contact person with regard to this Agreement (the “Buyer Manager”).  Seller’s initial Seller Manager and Buyer’s initial Buyer Manager are each set forth on Exhibit L.  Each Party may, from time to time, designate another individual as a proposed replacement for its respective Manager by notice to the other Party. 
(b)    Manager Meetings.  The Buyer Manager and the Seller Manager will serve as each Party’s main contact to, and for, the other Party with regard to day-to-day matters affecting the Parties’ relationship in relation to Installation Services.  The Buyer Manager and the Seller Manager (or their designees) will meet, by phone or in person, as often as they feel necessary to monitor and manage such day-to-day activities.  Such managers shall operate by consensus to the extent practicable but shall have no authority to amend or waive compliance with the terms and conditions of this Agreement, or to approve actions of the Parties that are inconsistent with this Agreement.  Any such waivers or amendments shall be implemented only as described in Section 12.1 or Section 12.2, as the case may be. 

ARTICLE IV.     
WARRANTIES

Section 4.1    Pre-Commissioning Equipment Warranty; Manufacturer’s Warranty.  
(a)    Subject to Section 4.2 and Section 11.5(a), Seller warrants to Buyer that, during the period commencing on the achievement of the Delivery Milestone and continuing until achievement of Commissioning for a New System (the “Pre-Commissioning Equipment Warranty Period”), (i) such New System shall conform to the Specifications for New Systems set forth on Exhibit A, and (ii) such New System and any associated New BOF shall be free from defects in design, materials and workmanship that would prevent such New System for achieving Commissioning (collectively, the “Pre-Commissioning Equipment Warranty”).
(b)    Subject to Section 4.2 and Section 11.5(a), Seller warrants to Buyer that, during the Manufacturer’s Warranty Period, (i) each New System shall conform to the Specifications for New Systems set forth on Exhibit A, and (ii) each New System, any New BOF, and any Existing BOF that was reconfigured as part of the Installation Services shall be free from defects in design, materials and workmanship (collectively, the “Manufacturer’s Warranty”).
(c)    Seller shall correct (including, in Seller’s sole discretion, through replacement thereof), as promptly as reasonably practical (and in any case within thirty (30) days), at Seller’s sole expense, all New Systems or BOF provided, or Installation Services performed, by it or its subcontractors under this Agreement which proves to be (i) in breach of the Pre-Commissioning Equipment Warranty during the Pre-Commissioning Equipment Warranty Period for such New System, or (ii) in breach of the Manufacturer’s Warranty during the Manufacturer’s Warranty Period.  WITHOUT LIMITING (I) SELLER’S OBLIGATION TO INDEMNIFY BUYER PURSUANT TO (A) SECTION 11.3(A) (II) IN RESPECT OF A BREACH OF A SITE LICENSE OR 

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INTERCONNECTION AGREEMENT ATTRIBUTABLE TO DEFECTIVE NEW SYSTEMS, BOF, OR INSTALLATION SERVICES AS STATED ABOVE, AND/OR (B) WITH RESPECT TO THIRD PARTY CLAIMS PURSUANT TO SECTION 11.3, AND/OR (C) ANY OTHER EXPRESS REMEDY SET FORTH IN THIS AGREEMENT THAT MAY BE AVAILABLE IN CONNECTION WITH A SELLER FAILURE TO TIMELY CORRECT DEFECTIVE NEW SYSTEMS, BOF, OR INSTALLATION SERVICES (INCLUDING A SELLER OBLIGATION TO REMOVE OR REPURCHASE A DEFECTIVE NEW SYSTEM, IF APPLICABLE), BUYER’S SOLE REMEDY FOR A BREACH OF THE PRE-COMMISSIONING EQUIPMENT WARRANTY SHALL BE THE CORRECTION OF DEFECTIVE NEW SYSTEM PURSUANT TO THIS SECTION 4.1(C). 
(d)    The Pre-Commissioning Equipment Warranty and Manufacturer’s Warranty is not transferable to any third person, including any Person who buys a New System from Buyer, without Seller’s prior written consent (which shall not unreasonably be withheld).
(e)    Any period of time in which the Pre-Commissioning Equipment Warranty or Manufacturer’s Warranty is in breach for a New System shall not extend the Pre-Commissioning Equipment Warranty Period or Manufacturer’s Warranty Period for such New System.

Section 4.2    Exclusions.  The Pre-Commissioning Equipment Warranty and Manufacturer’s Warranty, as applicable, shall not cover any obligations on the part of Seller to the extent caused by or arising from (a) the New Systems or New BOF being affected by vandalism or other third-party’s actions or omissions occurring after Commissioning (other than to the extent that Seller, Seller Affiliate, the Service Provider or a subcontractor thereof fails to properly protect the New Systems or New BOF and Seller was required to do so under the A&R MOMA); (b) any interruption in the supply of natural gas or interconnection services, or a failure of the natural gas or interconnection services supplied to the applicable Facility to comply with Seller’s specifications (unless caused by Seller, Seller Affiliate, the Service Provider or a subcontractor thereof); (c) the removal of any safety device by Buyer or its Representatives (as opposed to removal by Seller, Seller Affiliate, the Service Provider or a subcontractor thereof); (d) any conditions caused by unforeseeable movement in the environment in which the New Systems are installed (provided that normal soil settlement, shifting, subsidence or cracking will not constitute ‘unforeseeable movement’); (e) accidents, abuse, improper third party testing (unless caused by Seller, Seller Affiliate, the Service Provider or a subcontractor thereof) or Force Majeure Events; or (f) installation, operation, repair or modification of the New Systems or BOF by anyone other than Seller or Seller’s authorized agents.  SELLER SHALL HAVE NO OBLIGATION UNDER THE PRE-COMMISSIONING EQUIPMENT WARRANTY NOR THE MANUFACTURER’S WARRANTY AND MAKES NO REPRESENTATION AS TO NEW SYSTEMS OR BOF WHICH HAVE BEEN OPENED OR MODIFIED BY ANYONE OTHER THAN SELLER, SELLER’S AFFILIATE, A SERVICE PROVIDER OR A SUBCONTRACTOR THEREOF, OR ANY OF SUCH PERSON’S REPRESENTATIVES, IN EACH CASE TO THE EXTENT OF ANY DAMAGE OR OTHER NEGATIVE CONSEQUENCE OF SUCH OPENING OR MODIFICATION.  

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Section 4.3    Disclaimers.  EXCEPT FOR THE REPRESENTATIONS AND WARRANTIES SET FORTH IN THIS ARTICLE IV AND ARTICLE VI, THE NEW SYSTEMS ARE TRANSFERRED “AS IS, WHERE IS,” AND SELLER EXPRESSLY DISCLAIMS ANY REPRESENTATIONS OR WARRANTIES OF ANY KIND OR NATURE, EXPRESS OR IMPLIED, AS TO LIABILITIES, OPERATIONS OF THE FACILITIES, VALUE OR QUALITY OF THE FACILITIES OR THE PROSPECTS (FINANCIAL AND OTHERWISE), RISKS AND OTHER INCIDENTS OF THE FACILITIES, AND SPECIFICALLY DISCLAIMS ANY REPRESENTATION OR WARRANTY OF MERCHANTABILITY, USAGE, SUITABILITY OR FITNESS FOR ANY PARTICULAR PURPOSE WITH RESPECT TO THE FACILITIES, OR ANY PART THEREOF.  NO PERSON IS AUTHORIZED TO MAKE ANY OTHER WARRANTY OR REPRESENTATION CONCERNING THE PERFORMANCE OF THE FACILITIES (PROVIDED, THAT THE FOREGOING DISCLAIMER SHALL NOT NEGATE OR DISCLAIM ANY REPRESENTATIONS OR WARRANTIES PROVIDED UNDER ANY OF THE OTHER TRANSACTION DOCUMENTS).  

Section 4.4    Title.  Title to all replacement items, parts, materials and equipment supplied under or pursuant to the Pre-Commissioning Equipment Warranty shall transfer to Buyer upon transfer of title of the affected New System or New BOF pursuant to Section 3.2.  Title to all replacement items, parts, materials and equipment supplied under or pursuant to the Manufacturer’s Warranty shall transfer to Buyer upon installation or inclusion in a New System or in the BOF for the applicable Facility.  Upon replacement of an item or part as part of the Pre-Commissioning Equipment Warranty or Manufacturer’s Warranty provided hereunder, Seller shall remove such item or part and shall have the right to dispose of such replaced property in any manner that it chooses in its sole discretion.

ARTICLE V.     
RECORDS AND AUDITS

Section 5.1    Record-Keeping Documentation; Audit Rights.
(a)    Seller shall ensure that records concerning Seller’s Installation Services activities hereunder are properly created and maintained at all times in accordance with all Legal Requirements, including FERC requirements regarding record retention for Holding Companies in 18 C.F.R. Part 368 and any successor regulations to the extent applicable to Seller.  Such records shall include the following:
(i)    records and documentation in respect of each New System’s satisfaction of each Milestone, including records and documentation regarding the Delivery of New Systems, the achievement of Commissioning, and the fact and date(s) such New System has achieved each of the four separate criteria set forth the definition of “Placed in Service”;
(ii)    any other records, reports, or other documentation reasonably requested by Buyer to support an ITC eligibility determination with respect to a New System.  Seller agrees to use commercially reasonable efforts to promptly provide 

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such documentation to Buyer, and shall provide a reasonable explanation for any inability to provide such documentation; and
(iii)    until the date of achievement of Commissioning of the final New System for the Project, a “Construction Report” delivered in connection with the Payment Notice corresponding to each invoice delivered pursuant to Section 2.4(a)(ii), specifying for each New System individually (A) the forecasted commencement of construction, Delivery Date, and date of Commissioning of such New System projected to be included in the Project, (B) the actual commencement of construction, Delivery Date and date of Commissioning of such New System included in the Project as of the date of such Construction Report, and (C) a summary narrative regarding the source of any delays in the achievement of any of the foregoing milestones as compared to the dates forecasted in the immediately prior Construction Report; and
(iv)    subject to Operator’s reasonable concerns regarding protection of highly confidential information and/or trade secrets any other records, reports, or other documentation reasonably requested by Buyer. Seller agrees to use commercially reasonable efforts to promptly provide such documentation to Buyer, and shall provide a reasonable explanation for any inability to provide such documentation.
(b)    All such records required to be created and maintained pursuant to Section 5.1(a) shall (i) be kept available at Seller’s office and made available for Buyer’s inspection upon request at all reasonable times, and (ii) be retained for the relevant retention period provided in 18 C.F.R. § 368.3 or any successor regulation as amended from time, to the extent applicable to Seller, or any longer period required under the Tariff, or by DPL or PJM.  Any documentation prepared by Seller during the Term for the purposes of this Agreement shall be directly prepared for Buyer’s benefit and immediately become Buyer’s property.  Any such documentation shall be stored by Seller on behalf of Buyer until its final delivery to Buyer.  Seller may retain a copy of all records related to each Facility for future analysis.
(c)    Buyer shall have the right no more than once during any calendar year and going back no more than two (2) calendar years preceding the calendar year in which an audit takes place, upon reasonable prior written notice, including using an independent public accounting firm reasonably acceptable to Seller, to examine such records during regular business hours in the location(s) where such records are maintained by Seller for the purposes of verifying Buyer’s compliance with its obligations hereunder; provided, however, that such records may be audited only once under this Section 5.1(c).  Buyer shall pay its own cost and the costs of any third party consultants engaged by Buyer in connection with the audit unless such audit reveals that inaccuracies in Seller’s records have resulted in an overpayment by Buyer of two and one-half percent or more (2.5%) than the amount that would have otherwise been payable by Buyer during the period being audited, in which case Seller shall pay all of Buyer’s costs and the costs of any third party consultants engaged by Buyer in connection with such audit.  

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Section 5.2    Reports; Other Information.  Without in any way limiting Seller’s other reporting, notification, and other similar obligations under this Agreement, during the Term, Seller shall furnish to Buyer the following reports, notices, and other information regarding the New Systems and Installation Services (which may be effected by e-mail communication to the Buyer Manager or other appropriate Buyer Representative):
(a)    Promptly upon Seller’s knowledge of the occurrence of any damage to any New System or Site, notice of such damage in reasonable detail; 
(b)    Details of any event or circumstance which could reasonably be expected to prevent Buyer from being able to fully benefit from the Tariff, promptly upon either (i) Seller’s receipt of any written notice or communication from DPL or any other Governmental Authority notifying Seller, including a copy of such notice or communication, or (ii) upon the Knowledge of the Seller Manager, any Vice President of Project Finance, or C-Level officer of Seller, or any individual listed on Schedule 5.2(b); and
(c)    Subject to Operator’s reasonable concerns regarding protection of highly confidential information and/or trade secrets, any information Buyer may reasonably request in connection with any claim filed by Buyer under any insurance maintained with respect to the Facilities, and any information such insurance providers may reasonably request in connection with such claim.

ARTICLE VI.     
REPRESENTATIONS AND WARRANTIES OF SELLER

Section 6.1    Representations and Warranties of Seller.  Seller represents and warrants to Buyer as of the Agreement Date and as of each Purchase Date as follows:
(a)    Incorporation; Qualification.  Seller is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware and has all requisite corporate power and authority to own, lease, and operate its business as currently conducted.  Seller is duly qualified to do business as a foreign corporation and is in good standing under the laws of each jurisdiction that its business, as currently being conducted, shall require it to be so qualified, except where the failure to be so qualified would not have a Material Adverse Effect on Seller or its ability to perform its obligations hereunder.
(b)    Authority.  Seller has full corporate power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby.  The execution and delivery by Seller of the Transaction Documents to which it is a party and the consummation by Seller of the transactions contemplated thereby have been duly and validly authorized by all necessary corporate action required on the part of Seller, and the Transaction Documents to which it is a party have been duly and validly executed and delivered by Seller.  Each of the Transaction Documents to which Seller is a party and the [*] constitute the legal, valid and binding agreement of Seller, enforceable against 

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Seller in accordance with its terms, except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of equity (regardless of whether considered in a proceeding in equity or at law).
(c)    Consents and Approvals; No Violation.  Neither the execution, delivery and performance of this Agreement nor the other Transaction Documents to which it is a party nor the consummation by Seller of the transactions contemplated hereby and thereby will (i) conflict with or result in any breach of any provision of the certificate of incorporation or bylaws of Seller, (ii) with or without the giving of notice or lapse of time or both, conflict with, result in any violation or breach of, constitute a default under, result in any right to accelerate, result in the creation of any Lien (other than Permitted Liens) on Seller’s assets, or create any right of termination under the conditions or provisions of any note, bond, mortgage, indenture, any material agreement or other instrument or obligation to which Seller is a party or by which it, or any material part of its assets may be bound, in each case that would individually or in the aggregate result in a Material Adverse Effect on Seller or its ability to perform its obligations hereunder or (iii) constitute violations of any law, regulation, order, judgment or decree applicable to Seller, which violations, individually or in the aggregate, would result in a Material Adverse Effect on Seller or its ability to perform its obligations hereunder.
(d)    Legal Proceedings.  There are no pending or, to Seller’s Knowledge, threatened claims, disputes, governmental investigations, suits, actions (including non-judicial real or personal property foreclosure actions), arbitrations, legal, administrative or other proceedings of any nature, domestic or foreign, criminal or civil, at law or in equity, against Seller that challenge the enforceability of this Agreement or any of the other Transaction Documents to which Seller is a party or the ability of Seller to consummate the transactions contemplated hereby or thereby, in each case, that could reasonably be expected to result in a Material Adverse Effect on Seller or its ability to perform its obligations hereunder.
(e)    U.S. Person.  Seller is not a “foreign person” within the meaning of Section 1445(b)(2) of the Code and has provided a Certificate of Non-Foreign Status in the form and substance required by Section 1445 of the Code and the regulations thereunder.
(f)    Purchase Price of New System.  The Purchase Price paid for each New System does not exceed an amount that is equal to the Fair Market Value of each New System, as determined on an arm’s length basis.   
(g)    Title; Liens.  As of each date title is required to pass to Buyer hereunder with respect to any assets comprising a New System, Seller has and will convey good and marketable title to such assets to be sold to Buyer on such date and all such assets are free and clear of all Liens other than Permitted Liens.  Except to the extent arising by law, neither Seller nor any of its subcontractors have placed any Liens on the Sites or the Facilities other than Permitted Liens. To the extent that Seller has actual knowledge that 

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any of its subcontractors has placed any Lien on a New System or Site, then Seller shall cause such Liens to be discharged, or shall provide a bond in an amount and from a surety acceptable to Buyer to protect against such Lien, in each case, within thirty (30) days after Seller is aware of the existence thereof.  Seller shall indemnify Buyer against any such Lien claim, provided that if the applicable Site Lease requires additional or more stringent action, Seller shall also indemnify Buyer for the costs and expenses of such actions.
(h)    Intellectual Property. To Seller’s Knowledge, no New System and no other product or service marketed or sold (or proposed to be marketed or sold) by Seller hereunder violates or will violate any license or infringes or will infringe any Intellectual Property rights of any other Person.  Seller has received no written communications alleging that such Seller has violated, or by conducting its business, would violate any of the patents, trademarks, service marks, tradenames, copyrights, trade secrets, mask works or other proprietary rights or processes of any other Person.
(i)    Consents and Approvals. Seller has received all material third party consents which are required as of such date for the consummation and performance of the transactions contemplated hereunder.
(j)    Real Property. The real property referred to in each Site Lease is all the real property that is necessary for the construction, installation, operation and maintenance of the Facilities other than those real property interests that can be reasonably expected to be available on commercially reasonable terms as and to the extent required.  Each Site has been licensed to Buyer pursuant to the terms of the applicable Site Lease.  For clarity, no Site has been leased to Buyer.
(k)    Tax Representations.
(i)    Each New System is a fuel cell power plant that has a Nameplate Capacity of at least 0.5 kilowatts of electricity using an electrochemical process and has an electricity-only generation efficiency greater than 30 percent.  Each Facility will function independently of each other Facility in the Project to generate electricity for transmission and sale and is an integrated system comprised of a fuel cell stack assembly and associated balance of plant components that has all the necessary components to convert a fuel into electricity using electrochemical means.
(ii)    As of Purchase Date for each New System, no federal, state, or local Tax credit (including the ITC) has been claimed with respect to any property that is part of such New System.  
(iii)    No application has been submitted for a grant provided under Section 1603 of the American Recovery and Reinvestment Tax Act of 2009, as amended by the Tax Relief, Unemployment Insurance Reauthorization and Job Creation Act of 2010, with respect to any property that is part of any New System.

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(iv)    No private letter ruling has been obtained for the transactions contemplated hereunder from the IRS.
(v)    As of the Purchase Date of each New System, such New System was not originally Placed in Service and, specifically, clauses (c) and (d) of the definition of the term “Placed in Service” have not been met with respect to such New System.
(vi)    As of the Purchase Date, the cost of the New System that is energy property for purposes of Section 48 of the Code is accurately listed in the Base Case Model.
(vii)    No New System is comprised of any property that (A) is “used predominately outside of the United States” within the meaning of Code Section 168(g), (B) is imported property of the kind described in Code Section 168(g)(6), (C) except due to the status  of any member of Buyer, is “tax-exempt use property” within the meaning of Code Section 168(h), or (D) except due to the status  of any member of Buyer, is property described in Code Section 50(b).
(viii)    Other than de minimis property, material or parts, each Facility consists of property, materials or parts not used by any Person prior to having been first placed in a state of readiness and availability for their specific design function as part of the Facility.
(ix)    No portion of the basis of the New System is attributable to “qualified rehabilitation expenditures” within the meaning of Section 47(c)(2)(A) of the Code.
(x)    No grants (for purposes of this paragraph, “grants” shall not include any credits, benefits, emissions reductions, offsets or allowances, howsoever entitled, attributable to the generation from the Facilities, and its respective avoided emission of pollutants) have been provided by the United States, a state, a political subdivision of a state, or any other Governmental Authority for use in constructing or financing any New System or with respect to which Seller is the beneficiary.  No proceeds of any issue of state or local government obligations have been used to provide financing for any New System the interest on which is exempt from tax under Code Section 103.  No subsidized energy financing (within the meaning of Code Section 45(b)(3)) has been provided, directly or indirectly, under a federal, state, or local program provided in connection with any New System.
(xi)    Seller is not related to DPL within the meaning of Code Section 267 or Code Section 707.
(l)    Bankruptcy. No event of Bankruptcy has occurred with respect to Seller.
(m)    [Reserved].

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(n)    Material Adverse Effect.  
(i)    As of the Agreement Date, no Material Adverse Effect has occurred with respect to Seller or, to the Knowledge of Seller, PJM, DPL, or any Site Landlord. 
(ii)    As of each Purchase Date, no Material Adverse Effect has occurred between the Agreement Date and the applicable Purchase Date (A) with respect to the applicable Facility in which the New System would be installed and Commissioned, (B) with respect to Seller, or (C) to the Knowledge of Seller, with respect to PJM, DPL, or the Site Landlord for the applicable Facility in which the New System would be installed and Commissioned.
(o)    Governmental Approvals.  Seller, as applicable on behalf of Buyer, has obtained all Governmental Approvals required as of Delivery Date to install and Commission the applicable New System(s) in compliance with Applicable Law.  As of each of the dates each New System is Placed in Service and achieves Commissioning, Seller, as applicable on behalf of Buyer, shall have obtained all Governmental Approvals required for such operation of such New System and each of the Governmental Approvals obtained as of such date is validly issued, final and in full force and effect and is not subject to any current legal proceeding or to any unsatisfied condition.  On each of such dates, Seller, as applicable on behalf of Buyer, shall be in compliance in all material respects with all applicable Governmental Approvals and has not received any written notice from a Governmental Authority of an actual or potential violation of any such Governmental Approval, and none of the persons referenced in Section 5.2(b)(ii) has received any other communication from a Governmental Authority of an actual or potential violation of any such Governmental Approval.
(p)    Compliance.  Seller has performed in all respects all obligations, and complied in all material respects with the agreements and covenants, required to be performed by or complied with by Seller hereunder.
(q)    No Breaches.  As of the Agreement Date, each Interconnection Agreement, Gas Supply Agreement, and Site Lease is a legal, valid, binding and enforceable obligation of Buyer and, to Seller’s Knowledge, of each other party thereto, and each Interconnection Agreement, Gas Supply Agreement, and Site Lease is in full force and effect.  To Seller’s Knowledge, neither Buyer nor any other Person party thereto is in material breach or violation of any Interconnection Agreement, Gas Supply Agreement, or Site Lease, and no event has occurred, is pending or is threatened, which, after the giving of notice, with lapse of time, or otherwise, would constitute any such breach or default by Buyer or any other party thereto.
(r)    Insurance.  Seller has obtained the insurance described in Annex B, all such policies remain in full force and effect, and all insurance premiums that are due and payable have been paid in full with no premium overdue.

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(s)    QFCP-RC Tariff.  During the term of this Agreement, the Portfolio shall not fail to receive full payment and service under the Tariff for any of the following reasons:
(i)    Seller shall not be a Qualified Fuel Cell Provider throughout the original term of the Tariff due to any action or inaction of Operator in violation of this Agreement; or
(ii)    Seller shall take any action in violation of the A&R MOMA or this Agreement which causes: (A) Buyer not to qualify (or lose qualification) for service under the Tariff or (B) the Portfolio not to qualify (or lose qualification) as a Qualified Fuel Cell Provider Project.

Section 6.2    Survival Period. All claims by Buyer hereunder relating to breaches of representations and warranties contained in ARTICLE VI with respect to a New System shall be forever barred unless the Seller is notified in writing within twelve (12) months following the date of achievement of Commissioning for such New System, except for breaches and warranties contained in (a) Section 6.1(a), Section 6.1(b), Section 6.1(c), Section 6.1(g), and Section 6.1(o), which shall survive indefinitely, and (b) Section 6.1(k) and Section 6.1(h), which will survive until six (6) months following the expiration of the applicable statute of limitations.  For the avoidance of doubt, the Parties hereby agree and acknowledge that the foregoing survival periods are a contractual statute of limitations and any claims based upon a breach of representations and warranties in ARTICLE VI must be brought or filed prior to the expiration of such survival period.

ARTICLE VII.     
REPRESENTATIONS AND WARRANTIES OF BUYER

Section 7.1    Representations and Warranties of Buyer.  Buyer represents and warrants to Seller as of the Agreement Date and as of each Purchase Date, as follows.
(a)    Organization.  Buyer is a limited liability company duly formed, validly existing and in good standing under the laws of the State of Delaware and has all requisite limited liability company power and authority to own, lease, and operate its business as currently conducted.
(b)    Authority.  Buyer has full limited liability company power and authority to execute and deliver this Agreement and the other Transaction Documents to which it is a party and to consummate the transactions contemplated hereby and thereby.  The execution and delivery by Buyer of this Agreement and the other Transaction Documents to which it is a party and the consummation by Buyer of the transactions contemplated hereby and thereby have been duly and validly authorized by all necessary corporate action required on the part of Buyer and the Transaction Documents to which Buyer is a party have been duly and validly executed and delivered by Buyer.  Each of the Transaction Documents to which Buyer is a party constitutes the legal, valid and binding agreement of Buyer, enforceable against Buyer in accordance with its terms, except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, 

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moratorium or similar laws affecting creditors’ rights generally and by general principles of equity (regardless of whether considered in a proceeding in equity or at law).
(c)    Consents and Approvals; No Violation.  Neither the execution, delivery and performance of this Agreement nor the other Transaction Documents to which Buyer is a party nor the consummation by Buyer of the transactions contemplated hereby and thereby will (i) conflict with or result in any breach of any provision of the articles of formation of Buyer nor Buyer’s limited liability company agreement, (ii) with or without the giving of notice or lapse of time or both, conflict with, result in any violation or breach of, constitute a default under, result in any right to accelerate, result in the creation of any Lien on Buyer’s assets, or create any right of termination under the conditions or provisions of any note, bond, mortgage, indenture, material agreement or other instrument or obligation to which Buyer is a party or by which it, or any material part of its assets may be bound, in each case that would individually or in the aggregate result in a Material Adverse Effect on Buyer or its ability to perform its obligations hereunder or (iii) constitute violations of any law, regulation, order, judgment or decree applicable to Buyer, which violations, individually or in the aggregate, would result in a Material Adverse Effect on Buyer or its ability to perform its obligations hereunder.
(d)    Legal Proceedings.  There are no pending or, to Buyer’s Knowledge, threatened claims, disputes, governmental investigations, suits, actions (including non-judicial real or personal property foreclosure actions), arbitrations, legal, administrative or other proceedings of any nature, domestic or foreign, criminal or civil, at law or in equity, by or against Buyer that challenge the enforceability of this Agreement or the other Transaction Documents to which Buyer is a party or the ability of Buyer to consummate the transactions contemplated hereby or thereby, in each case, that could reasonably be expected to result in a Material Adverse Effect on Buyer or its ability to perform its obligations hereunder.
(e)    Consents and Approvals. Buyer has received all material third party consents which are required as of such date for the consummation and performance of the transactions contemplated hereunder.
(f)    Bankruptcy. No event of Bankruptcy has occurred with respect to Buyer.
(g)    No Other Representations.  Buyer is not relying on any representations or warranties whatsoever, express, implied, at common law, statutory or otherwise, except for the representations or warranties expressly set out in the Transaction Documents.

Section 7.2    Survival Period. All claims by Seller hereunder relating to breaches of representations and warranties contained in ARTICLE VII with respect to a New System shall be forever barred unless the Seller is notified in writing within twelve (12) months following the date of achievement of Commissioning for such New System, except for breaches and warranties contained in Section 7.1(a), Section 7.1(b), Section 7.1(c), which shall survive indefinitely.  For the avoidance of doubt, the Parties hereby agree and acknowledge that the foregoing survival periods 

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are a contractual statute of limitations and any claims based upon a breach of representations and warranties in ARTICLE VII must be brought or filed prior to the expiration of such survival period.

ARTICLE VIII.     
CONFIDENTIALITY

Section 8.1    Confidential Information.  Subject to the other terms of this ARTICLE VIII each Party shall, and shall cause its Affiliates and its respective stockholders, members, subsidiaries and Representatives to, hold confidential the terms of this Agreement and all information it has obtained or obtains from the other Party in connection with this Agreement concerning Seller and Buyer and their respective assets, business, operations or prospects (the “Confidential Information”), including all materials and information furnished by Seller in performance of this Agreement, regardless of form conveyed or whether financial or technical in nature, including any trade secrets and proprietary know how and Software whether such information bears a marking indicating that they are proprietary or confidential or not; provided, however, that Confidential Information shall not include (a) the fact that the Parties have entered into this Agreement, (b) the nature of the transactions contemplated by this Agreement, (c) the Buyer’s capital expenditures or financing plans related to the transactions contemplated by this Agreement, or (d) information that (i) is or becomes generally available to the public other than as a result of any fault, act or omission by a Party or any of its Representatives, (ii) is or becomes available to a Party or any of its Representatives on a non-confidential basis from a source other than the other Party or its Representatives, provided that such source was not and is not bound by any contractual, legal or fiduciary obligation of confidentiality with respect to such information or (iii) was or is independently developed or conceived by a Party or its Representatives without use of or reliance upon the Confidential Information of the other Party, as evidenced by sufficient written record.

Section 8.2    Restricted Access. Subject to Section 10.9:
(a)    Buyer agrees that the New Systems themselves contain Seller’s valuable trade secrets.  Buyer agrees (i) to restrict the use of such information to matters relating to the Facilities, and such other purposes, if any, expressly provided herein, and (ii) to restrict access to such information as provided in Section 8.3(b).
(b)    Seller’s Confidential Information will not be reproduced without Seller’s prior written consent, and following termination of this Agreement all copies of such written information will be returned to Seller upon written request (not to be made while materials are still of use to the operation of a New System and no Buyer Default has occurred and is continuing) or shall be certified by Buyer as having been destroyed, unless otherwise agreed by the Parties.  Buyer’s Confidential Information will not be reproduced by Seller without Buyer’s prior written consent, and following termination of this Agreement all copies of such written information will be returned to Buyer upon written request or shall be certified by Seller as having been destroyed.  Notwithstanding the foregoing, each Party and its Representatives may each retain archival copies of any Confidential Information to the extent required by law, regulation or professional standards or copies of Confidential Information created pursuant to the automatic backing-up of electronic files where the delivery or destruction of such files would cause 

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undue hardship to the receiving Party, so long as any such archival or electronic file back-up copies are accessible only to legal or information technology personnel, provided that such Confidential Information will continue to be subject to the terms of this Agreement.
(c)    Subject to ARTICLE IX, Section 8.2(a), and Section 8.2(b), the New Systems are offered for sale and are sold by Seller subject to the condition that such sale does not convey any license, expressly or by implication, to manufacture, reverse engineer, duplicate or otherwise copy or reproduce any part of the Facilities, documentation or Software without Seller’s express advance written permission. Subject to ARTICLE IX hereof, Buyer agrees not to remove the covering of any New System, not to access the interior or to reverse engineer, or cause or knowingly allow any third party to open, access the interior or reverse engineer any New System or Software provided by Seller.  Subject to ARTICLE IX hereof, and anything contemplated pursuant to this Agreement, only Seller or its Representatives may open or access the interior of a New System. 

Section 8.3    Permitted Disclosures.
(a)    Legally Compelled Disclosure.  Confidential Information may be disclosed (i) as required or requested to be disclosed by a Party or any of its Affiliates or their respective stockholders, members, subsidiaries or Representatives as a result of any applicable Legal Requirement or rule or regulation of any stock exchange, the Financial Industry Regulatory Authority, Inc. or other regulatory authority or self-regulatory authority having jurisdiction over such Party, (ii) as required or requested by the IRS, the Department of Justice or the Office of the Inspector General in connection with a New System, cash grant, or tax credits relating thereto, including in connection with a request for any private letter ruling, any determination letter or any audit or (iii) as required under any Interconnection Agreement or any of the other Transaction Documents.  If a Party becomes compelled by legal or administrative process to disclose any Confidential Information, such Party shall, to the extent permitted by Legal Requirements, provide the other Party with prompt notice so that the other Party may seek a protective order or other appropriate remedy or waive compliance with the non-disclosure provisions of this Section 8.3 with respect to the information required to be disclosed.  If such protective order or other remedy is not obtained, or such other Party waives compliance with the non-disclosure provisions of this Section 8.3 with respect to the information required to be disclosed, the first Party shall furnish only that portion of such information that it is advised by counsel is legally required to be furnished and shall exercise reasonable efforts, at the expense of the Party whose Confidential Information is being disclosed, to obtain reliable assurance that confidential treatment will be accorded such information, including, in the case of disclosures to the IRS described in clause (ii) above, to obtain reliable assurance that, to the maximum extent permitted by applicable Legal Requirements, such information will not be made available for public inspection pursuant to Section 6110 of the Code.
(b)    Disclosure to Representatives.  Notwithstanding the foregoing, and subject always to the restrictions in Section 8.2, a Party may disclose Confidential Information received by it to its and its Affiliates’ actual or potential investors or financing parties 

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and its and their employees, consultants, legal counsel or agents who have a need to know such information; provided that such Party informs each such Person who has access to the Confidential Information of the confidential nature of such Confidential Information, the terms of this Agreement, and that such terms apply to them.  The Parties shall use commercially reasonable efforts to ensure that each such Person complies with the terms of this Agreement and that any Confidential Information received by such Person is kept confidential.
(c)    Securities Filings.  A Party may file this Agreement as an exhibit to any relevant filing with the Securities Exchange Commission (or equivalent foreign agency) in accordance with Legal Requirements only after complying with the procedure set forth in this Section 8.3(c).  In such event, the Party seeking such disclosure shall prepare a draft confidential treatment request and proposed redacted version of this Agreement to request confidential treatment for this Agreement, and the other Party agrees to promptly (and in any event, no less than fourteen (14) days after receipt of such confidential treatment request and proposed redactions) give its input in a reasonable manner in order to allow the Party seeking disclosure to file its request within the time lines prescribed by Legal Requirements.  The Party seeking such disclosure shall exercise commercially reasonable efforts to obtain confidential treatment of the Agreement from the Securities Exchange Commission (or equivalent foreign agency) as represented by the redacted version reviewed by the other Party. Each Party shall bear its own costs in connection with such efforts.
(d)    Other Permitted Disclosures.  Nothing herein shall be construed as prohibiting a Party hereunder from using such Confidential Information in connection with (i) any claim against the other Party, (ii) any exercise by a Party hereunder of any of its rights hereunder, (iii) a financing or proposed financing by Seller or Buyer or their respective Affiliates, (iv) a disposition or proposed disposition by any direct or indirect Affiliate of Buyer of all or a portion of such Person’s equity interests in Buyer, (v) a disposition or proposed disposition by Buyer of any New System, or (vi) any disclosure required to be made pursuant to the Tariff, an Interconnection Agreement, a Gas Supply Agreement, or a Site Lease, provided that, in the case of items (iii), (iv) and (v), the potential financing party or purchaser has entered into a confidentiality agreement with respect to Confidential Information on customary terms used in confidentiality agreements in connection with corporate financings or acquisitions before any such information may be disclosed and a copy of such confidentiality agreement has been provided to the non-disclosing party for informational purposes, which copy of such confidentiality agreement may contain redactions of confidential information relating to the potential financing source or purchaser.  No disclosures of Confidential Information shall be made by Buyer in exercise of its rights under this Section 8.3(d) until Seller has first had the opportunity to exercise its right to take or purchase the New System in question, if applicable. 

ARTICLE IX.     
LICENSE AND OWNERSHIP; SOFTWARE

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Section 9.1    IP License to Use.  Subject to Section 9.2, Seller grants to Buyer a limited (as described herein), non-exclusive, royalty-free, irrevocable (except as described in ARTICLE X hereof), non-transferable (except as described herein) license to use the Intellectual Property, including Seller’s proprietary Software, contained in the Documentation and the New Systems purchased hereunder (collectively, “Seller’s Intellectual Property”) in conjunction with the purchase, use, operation, maintenance, repair and sale of the New Systems and in conjunction with each New System in accordance with the terms hereof, the Tariff, and each Interconnection Agreement (the “IP License”); provided, that (a) such license may be transferred or sub-licensed upon a transfer of a New System to any Person who acquires such New System, subject to Buyer’s compliance with provisions of the A&R MOMA applicable to such transfer, (b) such license may be transferred or sub-licensed by Buyer to any third party Buyer is entitled to engage to maintain any New System pursuant to Section 8.2(c), (c) such license may be transferred by Buyer to any successor or assign of Buyer permitted pursuant to Section 12.4, and (d) in the event of a voluntary or involuntary Bankruptcy of Buyer, Seller hereby expressly consents to the assumption and assignment of the IP License by Buyer as necessary to allow Buyer’s continued use of each New System and/or Facility in accordance with the terms hereof and, as applicable, the Tariff and each Interconnection Agreement.  Seller shall retain all right, title and ownership of any and all Intellectual Property licensed by Seller hereunder.  No right, title or interest in any such Intellectual Property is granted, transferred or otherwise conveyed to Buyer under this Agreement except as otherwise expressly set forth herein.  Buyer shall not, except as otherwise provided herein, modify, network, rent, lease, loan, sell, distribute or create derivative works based upon Seller’s Intellectual Property in whole or part, or cause or knowingly allow any third party to do so.  

Section 9.2    Grant of Third Party Software License.
(a)    Seller grants to Buyer a limited (as described herein), non-exclusive, royalty-free, irrevocable (except as described in ARTICLE X hereof), non-transferable (except as described herein) license to use the third party Software (the “Software License”); provided, that (i) such license may be transferred or sub-licensed upon a transfer of a New System to any Person who acquires such New System, (ii) such license may be transferred or sub-licensed by Buyer to any third party Buyer is entitled to engage to maintain any New System pursuant to Section 8.2(c), and (iii) such license may be transferred by Buyer to any successor or assign of Buyer permitted pursuant to Section 12.4.  No right, title or interest in any Software provided to Buyer (including all copyrights, patents, trade secrets or other intellectual or intangible property rights of any kind contained therein) is granted, transferred, or otherwise conveyed to Buyer under this Agreement except as expressly set forth herein.  Buyer agrees not to reverse engineer or decompile the Software or otherwise use the Software for any purpose other than in connection with the use of the Facilities.  Further, Buyer shall not modify, network, rent, lease, loan, sell, distribute or create derivative works based upon the Software in whole or part, or cause or knowingly allow any third party to do so.
(b)    All data collected on the Facilities by Seller using the Software and data collected on the Facilities using Seller’s internal proprietary Software are the sole property of Seller to be used by Seller in accordance with Legal Requirements, and Seller hereby grants to Buyer a limited, non-exclusive, irrevocable (except as set forth in ARTICLE X 

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hereof), royalty-free license to use the data collected on the Facilities using such Software or Seller’s internal proprietary software only for purposes of using such Facilities and administering the Transaction Documents or as required pursuant to the terms of the Tariff, any Site Lease or Interconnection Agreement, provided the provisions of ARTICLE VIII on confidentiality are maintained.

Section 9.3    Effect on Licenses.  All rights and licenses granted under or pursuant to this Agreement by Seller are, and shall otherwise be deemed to be, for purposes of Section 365(n) of the U.S. Bankruptcy Code and of any similar provisions of applicable laws under any other jurisdiction (collectively, the “Bankruptcy Laws”), licenses of rights to “intellectual property” as defined under the Bankruptcy Laws.  If a case is commenced by or against Seller under the Bankruptcy Laws (excluding a reorganization proceeding under Chapter 11 of the U.S. Bankruptcy Code if Seller is continuing to perform all of its obligations under this Agreement), Seller (in any capacity, including debtor-in-possession) and its successors and assigns (including a trustee under the Bankruptcy Laws) shall, as Buyer may elect in a written request, immediately upon such request:
(a)    perform all of the obligations provided in this Agreement to be performed by Seller including, where applicable, providing to Buyer portions of such intellectual property (including embodiments thereof) held by Seller and such successors and assigns or otherwise available to them and to which Buyer is entitled to have access under this Agreement; and
(b)    not interfere with the rights of Buyer under this Agreement, or the other Transaction Documents, to such intellectual property (including such embodiments), including any right to obtain such intellectual property (or such embodiments) from another entity, to the extent provided in the Bankruptcy Laws.

Section 9.4    No Software Warranty.   Buyer acknowledges and agrees that the use of the Software is at Buyer’s sole risk.  The Software and related documentation are provided “AS IS” and without any warranty of any kind and Seller EXPRESSLY DISCLAIMS ALL WARRANTIES, EXPRESS OR IMPLIED, INCLUDING THE IMPLIED WARRANTIES OF MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.

Section 9.5    IP Related Covenants.  If Seller grants, bargains, sells, conveys, mortgages, assigns, pledges, warrants or transfers any Intellectual Property or Software that is required (a) for Seller or its Affiliates to perform their respective obligations under the Transaction Documents or (b) for the continued maintenance and operation of the Facilities without a material decrease in performance of the Facilities, Seller shall cause such act or transaction to be subject to the grant of the IP License and Software License under this Agreement.

Section 9.6    Representations and Warranties.  Seller represents and warrants to Buyer as of the Agreement Date and as of each Commissioning Date as follows with respect to all Intellectual Property that is required (i) for Seller or its Affiliates to perform their respective obligations under this Agreement and each other Transaction Document, and (ii) for the continued operation of the New Systems in accordance with the A&R MOMA, the Tariff, and the Interconnection Agreements without a material decrease in performance of the New Systems:

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(a)    Seller owns or has the right to use and to authorize Buyer to use all such Intellectual Property and Software;  
(b)    Seller and its Affiliates are not infringing on any Intellectual Property of any third party with respect to the actions described in subsection (i) and (ii) of Section 9.6 and the New Systems do not infringe on any Intellectual Property of any third party;
(c)    the [*] is a legal, valid, binding and enforceable obligation of Seller (except as enforcement may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and by general principles of equity (regardless of whether considered in a proceeding in equity or at law)), and to Seller’s Knowledge, of each other party thereto, and such agreement is in full force and effect; and
(d)    Seller is not in material breach or violation of the [*], and, to Seller’s Knowledge, no event has occurred, is pending or is threatened, which, after the giving of notice, with lapse of time, or otherwise, would constitute any such breach or default by Seller.

ARTICLE X.     
EVENTS OF DEFAULT AND TERMINATION

Section 10.1    Seller Default.  The occurrence at any time of any of the following events shall constitute a “Seller Default”:
(a)    Failure to Pay.  The failure of Seller to pay any undisputed amounts owing to Buyer on or before the day following the date on which such amounts are due and payable under the terms of this Agreement or the A&R MOMA and Seller’s failure to cure each such failure within ten (10) Business Days after Seller receives written notice from Buyer of each such failure;
(b)    Failure to Perform Other Obligations.  Unless due to a Force Majeure Event, the failure of Seller to perform or cause to be performed any other material obligation required to be performed by Seller under this Agreement or the A&R MOMA, or the failure of any representation and warranty set forth herein or therein to be true and correct as and when made; provided, however, that if such failure by its nature can be cured, then Seller shall have a period of thirty (30) days after receipt of written notice of such failure to cure the same and a Seller Default shall not be deemed to exist during such period; provided, further, that if Seller commences to cure such failure during such period and is diligently and in good faith attempting to effect such cure, said period shall be extended for sixty (60) additional days; notwithstanding the foregoing, the cure period set forth above will in no event exceed (and will be deemed modified as necessary to match) the cure period applicable to any particular failure or breach under the Tariff or the applicable Interconnection Agreement, if any;

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(c)    Failure to Remedy Injunction.  The failure of Seller to remedy any injunction that prohibits Buyer’s use of any New System as contemplated by Section 11.1 within sixty (60) days of Seller’s receipt of written notice of Buyer being enjoined therefrom;
(d)    Bankruptcy.  If Seller is subject to a Bankruptcy; or
(e)    Failure to Achieve Full Deployment. Unless due to a Force Majeure Event, Seller’s breach of Section 3.4.

Section 10.2    Buyer Default.  The occurrence at any time of the following events with respect to Buyer shall constitute a “Buyer Default”:
(a)    Failure to Pay.  The failure of Buyer to pay any undisputed amounts owing to Seller on or before the day following the date on which such amounts are due and payable under the terms of this Agreement and Buyer’s failure to cure each such failure within ten (10) Business Days after Buyer receives written notice of each such failure; 
(b)    Failure to Perform Other Obligations.  Unless due to a Force Majeure Event, the failure of Buyer to perform or cause to be performed any material obligation required to be performed by Buyer under this Agreement or the failure of any representation and warranty set forth herein to be true and correct as and when made; provided, however, that if such failure by its nature can be cured, then Buyer shall have a period of thirty (30) days after receipt of written notice of such failure to cure the same and a Buyer Default shall not be deemed to exist during such period; provided, further, that if Buyer commences to cure such failure during such period and is diligently and in good faith attempting to effect such cure, said period shall be extended for sixty (60) additional days; or
(c)    Bankruptcy.  If Buyer is subject to a Bankruptcy.

Section 10.3    Buyer’s Remedies Upon Occurrence of a Seller Default.  If a Seller Default has occurred under Section 10.1(d), Buyer may terminate this Agreement by written notice, and assert all rights and remedies available to Buyer under Legal Requirements subject to the limitations of liability set forth in Section 11.5. If a Seller Default has occurred under Section 10.1(a), Section 10.1(b) or Section 10.1(c), Buyer may terminate this Agreement only with respect to those New Systems for which such Seller Default has occurred by written notice, and (i) assert all rights and remedies available to Buyer under Legal Requirements with respect to those New Systems for which a Seller Default has occurred, subject to the limitations of liability set forth in Section 11.5, or (ii) require Seller and, if so required, Seller shall repurchase the relevant New System in respect of which this Agreement is being terminated from Buyer on an AS IS basis by paying the Repurchase Amount in respect of any such New System, calculated as of the date of such payment, in which case Seller shall take title to such New System upon paying the Repurchase Amount, and such New System shall no longer constitute a portion of the Project. If a Seller Default has occurred under Section 10.1(e), Buyer may terminate this Agreement by written notice, and assert all rights and remedies available to Buyer under this Agreement or Legal Requirements subject to the limitations of liability set forth in Section 11.5; provided, that termination of this Agreement in connection 

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with a Seller Default under Section 10.1(e) shall not excuse Buyer from its obligations to take title to and make payment for any New System that has been Commissioned on or prior to the Commissioning Date Deadline; provided further, that unless otherwise consented to in writing by Buyer, Seller shall stop performing Installation Services in respect of any New System that has not been Commissioned on or prior to the Commissioning Date Deadline. If a New System will be removed pursuant to this Section 10.3, Seller shall at its sole cost and expense remove the New System and any other ancillary equipment (including the concrete pad and any other improvements to the applicable Site to the extent required under the applicable Site Lease) from the applicable Site, restoring the relevant portion of the Site to its condition before the installation, including closing all utility connections and properly sealing any Site penetrations in the manner required by all Legal Requirements and the applicable Site Lease.

Section 10.4    Seller’s Remedies Upon Occurrence of a Buyer Default. If a Buyer Default has occurred Seller may terminate this Agreement by written notice only with respect to those New Systems for which a Buyer Default has occurred and remains uncured, and assert all rights and remedies available to Seller under Legal Requirements with respect to those New Systems for which a Buyer Default has occurred, subject to the limitations of liability set forth in Section 11.5, including retaining any prior payments with respect to such New Systems and selling such New Systems to another buyer. 

Section 10.5    Preservation of Rights.  Termination of this Agreement shall not affect any rights or obligations as between the Parties which may have accrued prior to such termination or which expressly or by implication are intended to survive termination whether resulting from the event giving rise to termination or otherwise, including Section 3.6, Section 3.7, Section 3.8, ARTICLE V, ARTICLE VI, ARTICLE VII, ARTICLE VIII, ARTICLE IX, and ARTICLE XI, and ARTICLE XII.  The list of the Knowledge persons referenced in Section 5.2(b)(ii), and any Seller or Seller Affiliate successor employees to such persons in such capacities, shall survive the termination or expiration of this Agreement for purposes of the A&R MOMA until the expiration or termination of the A&R MOMA.

Section 10.6    Force Majeure. If either Party is rendered wholly or partially unable to perform any of its obligations under this Agreement by reason of a Force Majeure Event, that Party (the “Claiming Party”) will be excused from whatever performance is affected by the Force Majeure Event to the extent so affected; provided, however, that (a) the Claiming Party, within a reasonable time after the occurrence of such Force Majeure Event gives the other Party notice describing the particulars of the occurrence; (b) the suspension of performance shall be of no greater scope and of no longer duration than is reasonably required by the Force Majeure Event; (c) no liability of either Party for an event that arose before the occurrence of the Force Majeure Event shall be excused as a result of the Force Majeure Event; (d) the Claiming Party shall exercise commercially reasonable efforts to correct or cure the event or condition excusing performance and resume performance of all its obligations; and (e) when the Claiming Party is able to resume performance of its obligations under this Agreement, the Claiming Party shall promptly give the other Party notice to that effect and shall promptly resume performance.

Section 10.7    No Duplication of Claims; Cumulative Limitation of Liability Caps.  Notwithstanding anything to the contrary in this Agreement, (a) the Parties acknowledge and agree 

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that no claiming or indemnified party shall be entitled to a double recovery for the same monetary loss or damage under the provisions of this Agreement and the provisions of any other Transaction Document; (b) to the extent that all or any portion of the Pre-Commissioning Equipment Warranty, Manufacturer’s Warranty or any other warranty, guarantee or indemnification provision set forth herein is duplicative of any warranty, guarantee or indemnification coverage provided under the A&R MOMA, the Parties acknowledge and agree that Buyer shall be entitled to pursue recovery for money damages in respect of a single event or circumstance, at its sole option, under either this Agreement or the A&R MOMA, as applicable, and that limitation of liability caps set forth in each such agreement are to be calculated on an aggregate basis taking into account all claims for indemnification, warranty or otherwise (if any) made under this Agreement or the A&R MOMA, and (c) if an “Indemnifiable Loss” or other amount paid for any event(s) or circumstance(s) under this Agreement or the A&R MOMA, as the case may be, would be taken into account for purposes of calculating the “Maximum Liability” under such agreement, then such amount will also be taken into account for purposes of calculating the “Maximum Liability” under the other such agreement.  For the avoidance of doubt, the provisions of subsections (b) and (c) of this Section 10.7 shall not limit Seller’s liability under any other Transaction Document with respect to any Existing System.

Section 10.1    Actions to Facilitate Continued Operations After a Buyer Termination.  Notwithstanding anything else herein to the contrary, and without limitation of the rights set forth in this ARTICLE X hereof, if any New System is no longer covered by the A&R MOMA or another agreement between Buyer and Seller (or any Affiliate of Seller) regarding the operation and maintenance of such Facility as a result of the termination of the A&R MOMA with respect to such New System (A) in connection with a Seller Default or (B) in connection with the expiration of the Extended Warranty Period (as defined in the A&R MOMA), Buyer shall be entitled to maintain, or cause a third party to maintain, such New System (each such maintainer, a “Third Party Operator”), including replacing consumables and components as needed or desired, including, if applicable, electricity sales pursuant to the Tariff; provided that:
(a)    No less than thirty (30) calendar days prior to the event of such termination pursuant to subsection (B) above, to the extent Buyer requires any maintenance services for such New System following such termination, Buyer shall notify Seller of such requirements in writing.  If Seller desires to perform such maintenance services, Seller shall provide within five (5) Business Days to Buyer the material terms and conditions (including the scope of services offered, the price(s) quoted for such services, and the terms of any performance warranties to be provided in connection with such services) pursuant to which it is willing to provide such maintenance services for such New System, which shall be no less favorable to Buyer than Seller’s standard rates, terms and warranties as of such date.  If Buyer declines to engage Seller to perform such services, or the Parties are unable to execute appropriate documentation to reflect such services, Buyer may (subject to Section 10.8(b)) seek to engage a Third Party Operator to perform such services, provided that, prior to engaging any such Third Party Operator to maintain such New System, Buyer shall provide written notice to Seller of the material terms and conditions on which such third party has offered to provide such service (including (X) the scope of services offered, (Y) the price(s) quoted for such services, and (Z) the terms of any performance warranties to be provided in connection with such services). Seller shall have ten (10) Business Days to notify Buyer if Seller will agree to perform the 

46

applicable services for a price not to exceed the quoted amount and otherwise on terms no less favorable to Buyer than those included in the notice required hereunder. If Seller agrees to provide such services, the Parties will negotiate in good faith regarding appropriate documentation to reflect such services. If Seller declines to provide such services, Buyer may engage a Third Party Operator on terms no more favorable to such Third Party Operator than those provided in the notice to Seller.
(b)    Without in any way limiting the provisions of the foregoing Section 10.8(a), Buyer shall in all events use commercially reasonable efforts to engage a Third Party Operator to provide such maintenance that is not a competitor of Seller or its Affiliates and is not in litigation or other material dispute with Seller. 

ARTICLE XI.     
INDEMNIFICATION

Section 11.1    IP Indemnity.
(a)    Except as expressly limited below, Seller agrees to indemnify, defend and hold Buyer, its members, and their Affiliates and their respective managers, officers, directors, employees and agents harmless from and against any and all Third Party Claims and Indemnifiable Losses (including in connection with obtaining any Intellectual Property necessary for continuation of completion, operation and maintenance of New Systems purchased by Buyer from Seller), arising from or in connection with any alleged infringement, conflict, violation or misuse of any patents, copyrights, trade secrets or other third party Intellectual Property rights by New Systems purchased by Buyer from Seller (or the use, operation or maintenance thereof) or the exercise of the IP License or the Software License granted pursuant to Section 9.1 and Section 9.2 hereunder.  Buyer shall give Seller prompt notice of any such claims.  Seller shall be entitled to participate in, and, unless in the opinion of counsel for Seller a conflict of interest between the Parties may exist with respect to such claim, assume control of the defense of such claim with counsel reasonably acceptable to Buyer.  Buyer authorizes Seller to settle or defend such claims in its sole discretion on Buyer’s behalf, without imposing any monetary or other obligation or liability on Buyer and subject to Buyer’s participation rights set forth in this Section 11.1.  Buyer shall assist Seller upon reasonable request by Seller and, at Seller’s reasonable expense, in defending any such claim. If Seller does not assume the defense of such claim, or if a conflict precludes Seller from assuming the defense, then Seller shall reimburse Buyer on a monthly basis for Buyer’s reasonable defense expenses of such claim through separate counsel of Buyer’s choice reasonably acceptable to Seller. Even if Seller assumes the defense of such claim, Buyer may, at its sole option, participate in the defense, at Buyer’s expense, without relieving Seller of any of its obligations hereunder.  Should Buyer be enjoined from selling or using any New System as a result of such claim, Seller will, at its sole option and discretion, either (i) procure or otherwise obtain for Buyer the right to use or sell the New System; (ii) modify the New System so that it becomes non-infringing but still substantially meets the original functional specifications of the New System (in which event, for the avoidance of doubt, all warranties hereunder shall continue to apply unmodified); (iii) upon return of the New 

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System to Seller, as directed by Seller, provide to Buyer a non-infringing New System meeting the functional specifications of the New System, or (iv) when and if none of the first three options is reasonably available to Seller, authorize the return of the New System to Seller and, upon receipt thereof, return to Buyer all monies paid by Buyer to Seller for the cost of the New Systems and BOF, net of any monies paid by Seller to Buyer pursuant to the New System Portfolio Output Warranty, Efficiency Guaranty and/or Output Guaranty to the extent such Seller payments are allocable to such New System; provided that Seller shall not elect the option in the preceding clause (i) without Buyer’s written consent if such election could reasonably be expected to materially decrease Buyer’s revenues or materially increase Buyer’s operating expenses.
(b)    THIS INDEMNITY SHALL NOT COVER ANY CLAIM:
(i)    for Intellectual Property infringement, conflict, violation or misuse arising from or in connection with any combination made by Buyer of any New System with any other product or products or modifications made by or on behalf of Buyer to any part of the New System, unless (A) such combination or modification is in accordance with Seller’s specifications for the New System, (B) such combination or modification is made by or on behalf of or at the written request of Seller where Seller has requested the specific combination or modification giving rise to the claim by Buyer, or (C) such other product or products would not infringe the Intellectual Property rights of a third party but for the combination with any part of the New System; or
(ii)    for infringement of any Intellectual Property rights arising in whole or in part from any aspect of the New System which was designed by or requested by Buyer on a custom basis.

Section 11.2    Indemnification of Seller by Buyer.  Buyer shall indemnify, defend and hold harmless Seller, its officers, directors, employees, shareholders, Affiliates and agents (each, a “Seller Indemnitee”) from and against any and all Indemnifiable Losses asserted against or suffered by any Seller Indemnitee arising out of a Third Party Claim (other than a claim for a Seller Indemnitee’s breach of any contract to which a Seller Indemnitee is a party) and in any way relating to, resulting from or arising out of or in connection with any Third Party Claims against a Seller Indemnitee to the extent arising out of or in connection with (a) (1) the negligent or intentional acts or omissions of Buyer or its subcontractors, agents or employees or others under Buyer’s control (excluding any act or omission by Seller, any Seller Indemnitee or any Seller Personnel), (2) breach by Buyer of its representations, warranties or obligations under this Agreement (except to the extent caused by any Seller Indemnitee or Seller Personnel), or (3) any breach of a Site Lease or Interconnection Agreement, except to the extent relating to, resulting from or arising out of or in connection with any act or omission by Seller, any Seller Indemnitee or any Seller Personnel, or (b) the operation of New Systems by any Person other than Seller or an Affiliate or subcontractor of Seller after such New Systems have been Purchased by Buyer pursuant to this Agreement (but subject to Seller’s warranties, covenants and indemnities under this Agreement and any other Transaction Document to which Seller is a party); provided that Buyer shall have no obligation to indemnify Seller to the extent caused by or arising out of any (i) negligence, fraud or willful misconduct of any Seller 

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Indemnitee or the breach by Seller or any Seller Indemnitee of its covenants, representations and warranties under this Agreement or in any Seller’s Certificate of Commissioning or (ii) operation of Bloom Systems by a party outside of Buyer’s control or direction (including any Seller Personnel) or by a party taking such action despite Buyer’s reasonable efforts to prevent the same.

Section 11.3    Indemnification of Buyer by Seller.
(a)    Seller shall indemnify, defend and hold harmless Buyer, its members, managers, officers, directors, employees, Affiliates and agents (each, a “Buyer Indemnitee”) from and against any and all Indemnifiable Losses (other than Indemnifiable Losses addressed in Section 11.1) asserted against or suffered by any Buyer Indemnitee arising out of a Third Party Claim, and in any way relating to, resulting from or arising out of or in connection with any Third Party Claims against a Buyer Indemnitee to the extent arising out of or in connection with (i) the negligent or intentional acts or omissions of Seller or any Seller Personnel (other than matters addressed separately in Section 11.1, which shall be governed by the terms thereof), (ii) a breach by Seller of its representations, warranties or obligations under this Agreement or in any Seller’s Certificate of Commissioning, or any breach of a Site Lease or Interconnection Agreement, to the extent relating to, resulting from or arising out of or in connection with any act or omission by Seller or any Seller Personnel, or (iii) any injury, death, or damage to property caused by a defect in a New System; provided that, Seller shall have no obligation to indemnify Buyer to the extent caused by or arising out of (x) any negligence, fraud or willful misconduct of a Buyer Indemnitee, except to the extent caused by any Seller Personnel, (y) the breach by Buyer or any Buyer Indemnitee of its covenants, representations and warranties under this Agreement or any Site Lease or Interconnection Agreement, except to the extent such a breach is caused by Seller’s (or any Seller Personnel’s) breach of this Agreement (including any failure to perform obligations on behalf of Buyer in accordance with the terms of this Agreement), or (z) the inability of Buyer to ultimately utilize any tax benefits.
(b)    Except as otherwise set forth in this Agreement, in the event that Buyer incurs any liability, cost, loss or expense to a Site Landlord (including relating to a breach of a Site Lease) in relation to the repurchase by or return to Seller of any New System under this Agreement, Seller shall indemnify and hold Buyer harmless for any such liability, cost, loss or expense incurred by Buyer.
(c)    Seller acknowledges and agrees that each Site Landlord is an intended third party beneficiary of Seller’s indemnification obligations in favor of the Buyer Indemnitees and that Buyer may, with Seller’s reasonable consent following cooperative discussions between the Parties regarding the least disruptive manner of resolving the applicable Site Landlord claim, elect to assign to a Site Landlord the right to seek indemnification directly from Seller in the event that Buyer owes to such Site Landlord any indemnification obligations arising out of or in connection with any breach of a Site Lease arising out of any actions or inactions of Seller under this Agreement that give rise to an indemnification obligation of Seller in favor of any Buyer Indemnitee.

49

Section 11.1    Indemnification of Buyer by Seller.  Except as otherwise provided in Section 11.1, if any indemnifiable claim is brought against a Party (the “Indemnified Party”), then the other Party (the “Indemnifying Party”) shall be entitled to participate in, and, unless in the reasonable opinion of counsel for the Indemnifying Party a conflict of interest between the Parties may exist with respect to such claim, assume the defense of such claim, with counsel reasonably acceptable to the Indemnifying Party.  If the Indemnifying Party does not assume the defense of the Indemnified Party or if a conflict precludes the Indemnifying Party from assuming the defense, then the Indemnifying Party shall reimburse the Indemnified Party on a monthly basis for the Indemnified Party’s reasonable defense expenses through separate counsel of the Indemnified Party’s choice.  Even if the Indemnifying Party assumes the defense of the Indemnified Party with acceptable counsel, the Indemnifying Party, at its sole option, may participate in the defense, at its own expense, with counsel of its own choice without relieving the Indemnifying Party of any of its obligations hereunder.

Section 11.2    Limitation of Liability.
(a)    Notwithstanding anything to the contrary in this Agreement, in no event shall a Party be liable to the other Party for an amount in excess of the Maximum Liability unless and to the extent such liability is the result of (A) fraud, willful default, willful misconduct, or gross negligence of a Party or that Party’s employees, agents, subcontractors (except that for the purposes of this provision, Seller and any applicable Seller Personnel will not be deemed to be employees, agents or subcontractors of Buyer), (B) a Third Party Claim, (C) a claim of Seller against Buyer for Buyer’s failure to pay the Purchase Price for any Facility (which amounts shall not be included in calculating Buyer’s Maximum Liability), (D) a claim with respect to injury to or death of any individual, (E) Seller’s abandonment to the extent constituting a repudiation of this Agreement in respect of all or any part of the Facilities, (F) events or circumstances in respect of which insurance proceeds are available or that would have been available but for a failure by Seller to maintain, or comply with the terms of, insurance that it is required to obtain and maintain under this Agreement, and any amounts so received will not be included when calculating Seller’s Maximum Liability, (G) a claim of Buyer against Seller for Seller’s breach of a Fundamental Representation, or (H) any purchase price adjustment pursuant to Section 2.7.  Subject always to the Maximum Liability limitations set forth in the preceding sentence, except for damages or amounts specifically provided for in this Agreement or in connection with the indemnification for damages awarded to a third party under a Third Party Claim, damages hereunder are limited to direct damages, and in no event shall a Party be liable to the other Party, and the Parties hereby waive claims, for indirect, punitive, special or consequential damages or loss of profits; provided, however, that the loss of profits language set forth in this Section 11.5(a) shall not be interpreted to exclude from Indemnifiable Losses (X) any losses arising as a result of the loss or recapture of any ITC or (Y) recovery for any losses merely because such losses would result in a reduction in the profits of Buyer, Diamond State Generation Holdings, LLC, SP Diamond State Class B Holdings, LLC, or any or all of such Persons.  Notwithstanding anything to the contrary set forth herein, in no event shall the limitation of liability set forth above as it pertains to Seller limit Seller’s obligations to Buyer for any payments owed by Seller to Buyer regarding (i) the Repurchase Amount in respect 

50

of any New Systems, or (ii) Indemnifiable Losses arising from the loss or recapture of any ITC.  Any amounts paid or payable by Seller to Buyer as described in the preceding sentence will not be included when calculating Seller’s Maximum Liability.
(b)    Each Party hereby agrees that any claim for damages against the other Party under this ARTICLE XI shall be reduced to the extent of any related insurance proceeds actually received by such claiming Party.

Section 11.3    Survival.  The Parties’ respective rights and obligations under this ARTICLE XI shall survive any total or partial termination of this Agreement. 

ARTICLE XII.     
MISCELLANEOUS PROVISIONS

Section 12.1    Amendment and Modification.  This Agreement may be amended, modified or supplemented only by written agreement of Buyer and Seller.

Section 12.2    Waiver of Compliance; Consents.  Except as otherwise provided in this Agreement, any failure of any of the Parties to comply with any obligation, covenant, agreement or condition herein may be waived by the Party entitled to the benefits thereof only by a written instrument signed by the Party granting such waiver, but any such waiver of such obligation, covenant, agreement or condition shall not operate as a waiver of, or estoppel with respect to, any subsequent failure to comply therewith.

Section 12.3    Notices.  All notices, provisions of Documentation, reports, certifications, or other documentation, and other communications hereunder shall be in writing and shall be deemed given when received if delivered personally or by facsimile transmission with completed transmission acknowledgment or by electronic mail, or when delivered if mailed by overnight delivery via a nationally recognized courier or registered or certified first class mail (return receipt requested), postage prepaid, to the recipient Party at its below address (or at such other address or facsimile number for a Party as shall be specified by like notice; provided, however, that notices of a change of address shall be effective only upon receipt thereof and that any notice provided by electronic mail will be followed promptly by another form of notice consistent with this Section 12.3 and will be effective when such follow-up notice is deemed effective):

51

	
			
	To Seller:
	Bloom Energy Corporation
4353 N. 1st Street
San Jose, CA 95134 
Attention:  [*] 
Email:  [*]
and to:
Bloom Energy Corporation
4353 N. 1st Street
San Jose, CA 95134 
Attention:  General Counsel
	 

	To Buyer:
	Diamond State Generation Partners, LLC
c/o SP Diamond State Class B Holdings, LLC
30 Ivan Allen Jr. Blvd.
Atlanta, GA 30308
Attention: General Counsel and Corporate Secretary

	 

	 
	with a copy to (which copy shall not constitute notice):
Smith, Anderson, Blount, Dorsett, Mitchell & Jernigan, L.L.P.
150 Fayetteville Street, Suite 2300
Raleigh, NC 27601
Attention: [*]
Telephone: [*] 
Email: [*]

Section 12.4    Assignment.  

(a)    This Agreement and all of the provisions hereof shall be binding upon and inure to the benefit of the Parties and their respective successors and permitted assigns (including by operation of law), but neither this Agreement nor any of the rights, interests or obligations hereunder shall be assigned by any Party without the prior written consent of the other Party (to be granted in the other Party’s sole discretion), provided that (i) Buyer may assign its indemnification rights to Site Landlord as set forth in Section 11.3(c) upon notice to Seller, (ii) Buyer may assign all of its right, title and interest in and to this Agreement to an Affiliate wholly owned (directly or indirectly) by The Southern Company without the prior consent of Seller (provided that such assignee Affiliate shall assign this Agreement back to the Buyer at any future date that such assignee is no longer an Affiliate of the Buyer), (iii) Buyer may make such an assignment without Seller’s consent to a successor to substantially all of Buyer’s business, whether in a merger, sale of stock, sale of membership interests, sale of assets or other transaction (other than a transaction with an entity that is a competitor of Seller or its Affiliates, unless consented to under the provisions of Section 12.4(b)), and (iv) Seller shall be entitled to subcontract any of its obligations under this Agreement without consent (except as set forth in Section 12.14) or to assign its obligations under this Agreement to an Affiliate under common ownership with Seller, provided further that (X) such assignment or subcontracting shall 

52

not excuse Seller from the obligation to competently perform any subcontracted or assigned obligations or any of its other obligations under the Agreement and (Y) nothing in this Agreement shall be deemed to require the consent of any Party with respect to any change in control, merger or sale of all or substantially all of the assets of Southern Power Company or Seller.  Any purported assignment or delegation in violation of this Section shall be null and void.
(b)    In the event of an assignment by Buyer or other transaction described in clause (iii) of Section 12.4(a), Buyer shall notify Seller of the identity of the proposed assignee or successor in writing, and Seller shall have the right to consent to such assignment or transaction in the event that Seller reasonably believes such proposed assignee to be a competitor of Seller. Seller shall notify Buyer of its determination within ten (10) Business Days of receipt of notice from Buyer hereunder. If Seller notifies Buyer that it has determined that the proposed assignee is a competitor of Seller and that Seller is electing to withhold consent, then Buyer shall be prohibited from consummating the proposed transaction unless it has been finally determined that such proposed assignee is not a competitor of Seller.
(c)    Any disputes regarding Seller’s determination of a proposed assignee as a competitor to Seller shall be resolved as follows:
(i)    Buyer will promptly provide written notification of the dispute to Seller within five (5) Business Days after notice by Seller that it has determined the proposed assignee to be a competitor and that it is withholding its consent.  Thereafter, a meeting shall be held promptly between the Parties, attended by Seller’s Chief Financial Officer and Buyer’s Chief Financial Officer, to attempt in good faith to negotiate a resolution of the dispute, provided, that either Party may elect to escalate the dispute to the Parties’ respective Chief Executive Officer at any time.  
(ii)    If the Parties are not successful in resolving a dispute within ten (10) Business Days of the meeting called for above, the dispute shall be submitted, within ten (10) Business Days thereafter, to a mediator with energy industry experience.  The Parties shall cooperate with and provide such documents, information and other assistance as is requested by the mediator to assist in efforts to resolve the dispute.  The costs of the mediator shall be borne equally by the Parties.
(iii)    If efforts to mediate are not successful within thirty (30) days of submitting the dispute to the mediator, both Parties will retain all legal remedies available to them.

Section 12.5    Dispute Resolution; Service of Process.
(a)    Except as provided in Section 12.4(c), in the event a dispute, controversy or claim arises hereunder, including any claim whether in contract, tort (including negligence), strict product liability or otherwise, the aggrieved Party will promptly provide written notification of the dispute to the other Party within ten (10) days after 

53

such dispute arises.  Thereafter, a meeting shall be held promptly between the Parties, attended by Representatives of the Parties with decision-making authority regarding the dispute, to attempt in good faith to negotiate a resolution of the dispute.  If the Parties are not successful in resolving a dispute within twenty-one (21) days of such meeting, then, subject to the limitations on remedies set forth in Section 10.3 and Section 10.4 and ARTICLE XI, either Party may pursue whatever rights it has available under this Agreement, at law or in equity in accordance with Section 12.6 herein.  
(b)    In the event of any dispute arising out of or relating to this Agreement, each Party hereby consents to service of process made to the addressees set forth in Section 12.3 herein either by overnight delivery by a nationally recognized courier or by certified first class mail, return receipt requested, and hereby acknowledges that service by such means shall constitute valid and lawful service of process against the Party being served.

Section 12.6    Governing Law, Jurisdiction, Venue.  THIS AGREEMENT SHALL BE GOVERNED BY AND INTERPRETED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, WITHOUT GIVING EFFECT TO ANY CONFLICTS OF LAW OR OTHER PRINCIPLES THEREOF THAT WOULD RESULT IN THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). THE PARTIES HEREBY IRREVOCABLY SUBMIT TO THE NON-EXCLUSIVE JURISDICTION OF THE COURTS OF THE STATE OF NEW YORK AND OF THE UNITED STATES DISTRICT COURT FOR THE SOUTHERN DISTRICT OF NEW YORK WITH RESPECT TO ANY DISPUTE ARISING OUT OF OR RELATING TO THIS AGREEMENT.  EACH PARTY IRREVOCABLY AND UNCONDITIONALLY WAIVES TRIAL BY JURY IN ANY ACTION, SUIT OR PROCEEDING RELATING TO ANY SUCH DISPUTE AND FOR ANY COUNTERCLAIM WITH RESPECT THERETO. 

Section 12.7    Counterparts.  This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Signatures delivered by facsimile, portable document format or other electronic means (including services such as DocuSign) will be considered original signatures, and each Party shall thereafter promptly deliver original signatures to the other Party.  

Section 12.8    Interpretation.  The article, section and schedule headings contained in this Agreement are solely for the purpose of reference, are not part of the agreement of the Parties and shall not in any way affect the meaning or interpretation of this Agreement.

Section 12.9    Entire Agreement.  This Agreement, the other Transaction Documents, the [*], and the exhibits, schedules, documents, certificates and instruments referred to therein, embody the entire agreement and understanding of the Parties in respect of the transactions contemplated by this Agreement. Each Party acknowledges that, in agreeing to enter into this Agreement, it has not relied on any representation, warranty, collateral contract or other assurance (except those in this Agreement or any other agreement entered into on the date of this Agreement between the Parties) made by or on behalf of any other Party at any time before the signature of this Agreement.  Each Party waives all rights and remedies which, but for the immediately preceding sentence, might 

54

otherwise be available to it in respect of any such representation, warranty, collateral contract or other assurance.

Section 12.10    Construction of Agreement.  The terms and provisions of this Agreement represent the results of negotiations between Buyer and Seller, each of which has been represented by counsel of its own choosing, and neither of which has acted under duress or compulsion, whether legal, economic or otherwise.  Accordingly, the terms and provisions of this Agreement shall be interpreted and construed in accordance with their usual and customary meanings, and Buyer and Seller hereby waive the application in connection with the interpretation and construction of this Agreement of any rule of law to the effect that ambiguous or conflicting terms or provisions contained in this Agreement shall be interpreted or construed against the Party whose attorney prepared the executed draft or any earlier draft of this Agreement.

Section 12.11    Severability.  If any term or other provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of law or public policy, all other conditions and provisions of this Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby is not affected in any manner materially adverse to any Party.

Section 12.12    Further Assurances.  Each Party agrees to execute and deliver such additional documents and instruments and to perform such additional acts as may be necessary or appropriate to effectuate, carry out and perform all of the terms, provisions, and conditions of this Agreement and the transactions contemplated by this Agreement.

Section 12.13    Independent Contractor.  Seller shall perform the Installation Services and act at all times as an independent contractor, and shall be solely responsible for the means, methods, techniques, sequences, and procedures employed for execution and completion of the Installation Services.  Nothing in this Agreement shall be interpreted or applied so as to make the relationship of any of the Parties that of partners, joint venturers or anything other than the relationship of customer and independent contractor.  Notwithstanding anything to the contrary herein, including Seller’s obligation to perform on behalf of Buyer certain of Buyer’s obligations under the Tariff, Interconnection Agreements, and Site Leases, neither Seller nor any of its employees, agents, subcontractors or Representatives shall be considered an employee, agent, subcontractor or Representative of, nor under the control of, Buyer under this Agreement.  Seller shall at all times maintain supervision, direction and control over its employees, agents, subcontractors and Representatives as is consistent with and necessary to preserve its independent contractor status, and Seller shall be responsible to Buyer for the acts and omissions of each such employee or subcontractor.   

Section 12.14    Service Providers.  Seller may appoint one or more unrelated third party(ies), who is appropriately qualified, licensed, and financially responsible, to perform Installations Services throughout the Term.  Seller shall submit such appointment of any Major Service Provider to Buyer for its prior written approval, which approval shall not be unreasonably withheld or delayed.  No such appointment nor the approval thereof by Buyer, however, shall relieve Seller of any liability, obligation, or responsibility resulting from a breach of this Agreement.  “Major Service Provider” means any Service Provider that Seller proposes to engage to perform any Installations Services 

55

for which the aggregate compensation to such Service Provider in respect of Installation Services is expected to be greater than ten percent (10%) of Seller’s budgeted amounts for all Installation Services for all the New Systems pursuant to this Agreement.  The Parties agree that each of the Major Service Providers set forth on Schedule 12.14 hereof are approved for all purposes by Buyer as of the Agreement Date. Each subcontractor (of any tier, Service Providers, Major Service Providers, and Service Technicians) must be a reputable, qualified firm with an established record of successful performance in its trade, and shall obtain and maintain such insurance coverages having such terms as set forth in Annex B to the extent applicable to the work to be performed by such subcontractor.  Seller shall not be relieved from its obligation to provide any services hereunder if a subcontractor agrees to provide any or all of such services.  No subcontractor is intended to be or will be deemed a third-party beneficiary of this Agreement.  Nothing contained herein shall create any contractual relationship between any subcontractor and Buyer or obligate Buyer to pay or cause the payment of any amounts to any subcontractor, including any payment due to any third party.  Seller shall not permit any subcontractor to assert any Lien against any New System or Bloom System, or attach any Lien other than a Permitted Lien.  None of Seller’s employees, subcontractors or any such subcontractor’s employees will be or will be considered to be employees of Buyer. To the extent that any Site Landlord has the right to request removal of any Seller or subcontractor personnel under a Site Lease, Seller shall cooperate with Buyer in complying with the terms and conditions of such Site Lease including by, upon written notification by Buyer that the performance, conduct or behavior of any Person employed by Seller or one of its subcontractors is unacceptable to the applicable Site Landlord, promptly stopping such Person from performing any obligations hereunder and/or removing such Person from the applicable Site. Additionally, Buyer may bring to Seller’s attention any concerns regarding the performance, conduct or behavior of any Person employed by Seller or one of its subcontractors, which concerns Seller shall consider in good faith and thereafter take such action as Seller deems appropriate under the circumstances.  Seller will be fully responsible for the payment of all wages, salaries, benefits and other compensation to its employees and for payment of any Taxes due because of its work hereunder.

Section 12.15    Rights to Deliverables.  Buyer agrees that Seller shall, except as expressly set forth herein, retain all rights, title and interest, including Intellectual Property rights, in any Training Materials provided to Buyer in connection with the services performed hereunder.  “Training Materials” means any and all materials, documentation, notebooks, forms, diagrams, manuals and other written materials and tangible objects, describing how to operate and maintain the Facilities or perform any of the Installation Services and/or Facility Services (if applicable), including any corrections, improvements and enhancements which are delivered by Seller to Buyer, but excluding any Documentation or other data and reports delivered to Buyer in respect of any Facilities.

Section 12.16    Limitation on Export.  Buyer agrees that it will not export, re-export, resell, ship or divert directly or indirectly any Facility or any part thereof in any form or technical data or Software furnished hereunder to any country prohibited by the United States Government or any other Governmental Authority, or for which an export license or other Governmental Approval is required, without first obtaining such license or approval.

Section 12.17    Time of Essence.  Time is of the essence with respect to all matters contained in this Agreement.

56

Section 12.18    No Rights in Third Parties.  Except as otherwise specified herein, (a) nothing in this Agreement nor any action taken hereunder shall be construed to create any duty, liability or standard of care to any Person that is not a Party, (b) no Person that is not a Party shall have any rights or interest, direct or indirect, in this Agreement or the services to be provided hereunder and (c) this Agreement is intended solely for the benefit of the Parties, and the Parties expressly disclaim any intent to create any rights in any third party as a third-party beneficiary to this Agreement or the services to be provided hereunder. 

Section 12.19    No Modification or Alteration of DSGP Operating Agreement.  Notwithstanding anything to the contrary herein and for the avoidance of doubt, (a) nothing in this Agreement shall affect or modify the rights or obligations of the members of Buyer under the DSGP Operating Agreement, and (b) no Buyer Manager shall have authority to take any action or agree to take any action that would violate the DSGP Operating Agreement or that would require the consent or approval of any member or the managing member of Buyer under the DSGP Operating Agreement (unless such consent or approval is first obtained).
[remainder of page intentionally left blank]

IN WITNESS WHEREOF, Buyer and Seller have caused this Fuel Cell System Supply and Installation Agreement to be signed by their respective duly authorized officers as of the Agreement Date.

	
		
	BUYER:
	SELLER:

	DIAMOND STATE GENERATION PARTNERS, LLC 
a Delaware limited liability company
	BLOOM ENERGY CORPORATION 
a Delaware corporation

	 
	 

	By:   ____________________________
	By:    ____________________________

	Name:
	Name:

	Title:
	Title:

57

 

Annex A
Conceptual Design

ANNEX A-1

Annex B
Insurance
Insurance.  At all times during the Term, without cost to Buyer, Seller shall maintain in force and effect the following insurance, which insurance shall not be subject to cancellation, termination or other material adverse changes unless the insurer delivers to Buyer written notice of the cancellation, termination or change at least thirty (30) days in advance of the effective date of the cancellation, termination or material adverse change or if notice from the insurer to Buyer of material adverse change is not available on commercially reasonable terms then Seller shall provide Buyer with such notice as soon as reasonably possible after becoming aware of such change: 
(a)Worker's Compensation Insurance as required by the laws of the state in which Operator’s employees are manufacturing New Systems or performing Installation Services;
(b)Employer's liability insurance with limits at policy inception not less than One Million Dollars ($1,000,000.00) per occurrence;
(c)Commercial General Liability Insurance, including bodily injury and property damage liability (arising from premises, operations, contractual liability endorsements, products liability, or completed operations) with limits not less than One Million Dollars ($1,000,000.00) per occurrence and Two Million Dollars ($2,000,000.00) annual aggregate limit at policy inception;
(d)If there is exposure, automobile liability insurance in accordance with prudent industry practice with a limit of not less than One Million Dollars ($1,000,000.00), combined single limit per occurrence; 
(e)Umbrella liability insurance acting in excess of underlying employer’s liability, commercial general liability and automobile liability policies with limits not less than [*] per occurrence, except that any subcontractors shall be required to maintain such insurance with limits of not less than [*]; 
(f)Professional errors and omission insurance with a limit of not less than One Million Dollars ($1,000,000.00) per occurrence;
(g)Environmental/pollution liability insurance with a limit of not less than One Million Dollars ($1,000,000.00) per claim;
(h)Builder’s Risk/Installation Coverage for each New System, with replacement costs and a delay in startup component (for avoidance of doubt, this requirement is only 

ANNEX B-1

applicable, with respect to each New System, until the date of Commissioning of such New System); and
(i)Marine Cargo - Transit coverage (including air, land and ocean cargo, as applicable) on an “all-risk” basis and a “warehouse to warehouse” basis with a per occurrence limit equal to not less than 110% of the value including transit and insurance of such shipment involving the Facility at all times for which the Seller bears or has accepted risk of loss or has responsibility for providing insurance.  Coverage shall include loading, unloading and temporary storage (as applicable). Coverage shall be maintained in accordance with prudent industry practice in all regards with per occurrence deductibles of not more than $50,000 for physical damage and other terms and conditions acceptable to the Buyer. For avoidance of doubt, (i) this requirement is only applicable during installation and is not required to be maintained with respect to any New System after the date of Commissioning of such New System, and (ii) this requirement shall not apply to any subcontractor except those engaged to transport materials owned by Seller during such transit.
Seller shall cause Buyer to be included as additional insured to all insurance policies required in accordance with the provisions of this Agreement except for worker’s compensation.  The required insurance must be written as a primary policy not contributing to or in excess of any policies carried by Buyer, and each must contain a waiver of subrogation in favor of Buyer.
Additionally, Seller shall procure and maintain any insurance coverages (if any) with respect to commercial general liability and excess liability required to be carried by Buyer’s contractors and service providers pursuant to a Site Lease pursuant to policies that comply with all requirements set forth in such Site Lease.
Additional Insurance. To the extent that a Material Contract (as defined in the ECCA) requires Seller to maintain additional insurance coverage, higher limits or any other insurance requirement because of Seller’s undertakings pursuant to this Agreement (“Required Insurance”), Seller shall obtain and maintain the Required Insurance for as long as required under such Material Contract.
Seller shall provide Buyer with evidence of compliance with these insurance requirements when requested by Buyer from time to time on a reasonable basis.

Exhibit A-2

Exhibit A
Specifications for New Systems
NEW SYSTEM SPECIFICATIONS
System Capacity: 200kW or 250kW 
Electrical Connection: 480 V, 3-phase, 60 Hz

Fuels: Natural Gas
Input Fuel Pressure: 10-18 psig (15 psig nominal)
Water: None during normal operation following Commissioning
    
NOx: < 0.01 lbs/MWh
Sox: Negligible
CO: <0.05 lbs/MWh
VOCs: < 0.02 lbs/MWh

Weight: 14.3 tons
Dimensions (variable layouts): 14'9" x 8'9" x 7' or 29'6" x 4'5" x 7'5"
    
Temperature Range: -20° to 45° C
Humidity: 0% to 100%

Location: Outdoor 
Noise: < 70 dBA @ 6 feet 
BLOOM SYSTEM METER SPECIFICATIONS
Voltage: +/- 1.0%
Current: +/- 1.5% 
Power: +/- 2.0% 
Bloom System Meter specifications reflect nominal ratings and 25o C ambient

MASS FLOW CONTROLLER SPECIFICATIONS
Fuel Scale Range (N2): 250SLM
Accuracy: +/- 1.0% S.P (>/= 35% F.S.); +/- 0.35% (<35% F.S.)
Linearity: +/- 0.5% F.S.
Repeatability: +/- 0.2% F.S.
Response Time: </= 2sec
Temperature Range: -20° to 70° C

Exhibit A-1

Exhibit B
Form of Bill of Sale

BILL OF SALE
This BILL OF SALE, dated as of __________ __, 20_ is made by BLOOM ENERGY CORPORATION, a Delaware corporation (“Seller”), to DIAMOND STATE GENERATION PARTNERS, LLC, a Delaware limited liability company (“Buyer”), and is delivered pursuant to the Fuel Cell System Supply and Installation Agreement, dated as of June 14, 2019 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “CapEx Agreement”), between Seller and Buyer, in connection with the transfer of the assets described on Exhibit A attached hereto (the “Purchased System”).  
Seller hereby assigns, conveys, sells, delivers, sets over and transfers to Buyer, for the consideration, and on the terms and conditions, set forth in the CapEx Agreement, all of Seller’s rights, title and interest in, under and to the Purchased System, and Buyer hereby accepts such assignment .
This Bill of Sale shall inure to the benefit of and be binding upon the parties hereto and their respective successors and assigns.  
This Bill of Sale shall be governed by, and construed in accordance with, the laws of the State of New York.
This Bill of Sale may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.  Signatures delivered by facsimile, portable document format or other electronic means (including services such as DocuSign) will be considered original signatures.
[Signature Page Follows]

	
			
	 
	 
	 

Exhibit B-1

IN WITNESS WHEREOF, the parties hereto have caused this Bill of Sale to be signed by their respective duly authorized officers as of the date first written above.
SELLER:
BLOOM ENERGY CORPORATION

By:  __________________________
Name:  
Title:      

BUYER:
DIAMOND STATE GENERATION PARTNERS, LLC

By:  __________________________
Name:     
Title:     

	
			
	 
	 
	 

Exhibit B-2

Attachment A to Bill of Sale

Purchased Systems

    

	
			
	 
	 
	 

Exhibit B-3

Exhibit C
Seller Deliverables
The Parties acknowledge that Seller has provided a detailed commissioning plan within the seven (7) days preceding the Agreement Date.
Seller shall submit the items listed below prior to and as a condition of the Commissioning of each New System, all in form and substance reasonably acceptable to Buyer:
		
	1.
	Example screenshot to be delivered by Seller, with details on sample shown below:

		
	2.
	Seller’s properly completed Commissioning checklist in Excel format and in the form Seller previously delivered to Buyer via email.

		
	3.
	Seller’s current site plan and layout drawing showing the location and “Site ID” of each New System at its installed location within the Facility.

Seller shall submit the items listed below on or before sixty (60) days following the Commissioning of the final New System to achieve such milestone hereunder at each Facility, all in form and substance reasonably acceptable to Buyer: 
		
	1.
	Final OSHA 300Log (not required to be organized by Site)

		
	2.
	Final Incident Reports (to include First Aid logs, Final Root Cause Analysis Reports, and Final Near Miss Reports) 

		
	3.
	Quality Documentation for Construction activities (if applicable)

	
			
	 
	 
	 

Exhibit C-1

		
	4.
	Permitting documentation (if applicable)

		
	5.
	An as-built package reflecting all New System installation details in AutoCAD.

	
			
	 
	 
	 

Exhibit C-2

Exhibit D

Form of Payment Notice

To:     DIAMOND STATE GENERATION PARTNERS, LLC (“Buyer”)
This Payment Notice, dated ________, 20_, is given pursuant to Section 2.4(c) of the Fuel Cell System Supply and Installation Agreement between the BLOOM ENERGY CORPORATION (“Seller”) and Buyer dated June 14, 2019 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “CapEx Agreement”). Terms defined in the CapEx Agreement have the same meaning where used in this Payment Notice.
Seller hereby notifies Buyer that, in connection with the Invoice Due Date occurring on ___________, 20__, Buyer shall be obligated to make Purchase Price payments to Bloom for all invoices issued pursuant to Section 2.4(a)(ii) of the CapEx Agreement in the aggregate amount of $__________. 

The Purchase Price to be paid by Buyer on the above-mentioned Invoice Due Date is comprised of the Purchase Price payments in connection with the Commissioning of New Systems with aggregate System Capacity of ___kW, which amount represents, the remainder of the Purchase Price for such New Systems not previously paid by Buyer, plus one hundred percent (100%) of the Taxes to be paid by Buyer pursuant to Section 2.4(c) of the CapEx Agreement for such New Systems.
Included with this Payment Notice is the applicable Seller’s Certificate of Commissioning evidencing the achievement of all of the Commissioning Milestones achieved by the New Systems referenced above.
Seller hereby certifies that each of the representations and warranties of Seller in the CapEx Agreement is true and correct in all respects as of the date of this Payment Notice.
This Payment Notice may be relied upon by Buyer.
Signed for and on behalf of BLOOM ENERGY CORPORATION
	
	
	 

	By:    __________________________

	Name:    __________________________

	Title:    __________________________

	
			
	 
	 
	 

Exhibit D-1

Exhibit E

Form of Purchase Order

	
			
	 
	 
	 

Exhibit E-1

Exhibit F
Intentionally Omitted

	
			
	 
	 
	 

Exhibit F-1

Exhibit G
Form of Seller’s Certificate of Delivery Milestone Completion
To:     DIAMOND STATE GENERATION PARTNERS, LLC (“Buyer”)
This Certificate is given pursuant to paragraph (d) of the definition of Delivery Milestone in the Fuel Cell System Supply and Installation Agreement between the BLOOM ENERGY CORPORATION (“Seller”) and Buyer dated June 14, 2019 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “CapEx Agreement”). Terms defined in the CapEx Agreement have the same meaning where used in this Certificate.
This certificate is provided in respect of the New Systems set forth on Attachment 1 hereto.
Seller hereby certifies, in respect of each such New System:
(a)    such New System has been Delivered; and 
(b)    such New System has been placed upon such concrete pad and is available for installation, startup, and commissioning. 

Signed for and on behalf of BLOOM ENERGY CORPORATION
	
	
	By:    ........................................................................

	Name:..........................................................................

	Title:............................................................................

	
			
	 
	 
	 

Exhibit G-1

Attachment 1 to Seller’s Certificate of Delivery Milestone Completion

	
				
	Serial Number
	Project
	System Capacity
	Delivery Date

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

	
			
	 
	 
	 

Exhibit G-2

Exhibit H
Form of Seller’s Certificate of Commissioning
To:     DIAMOND STATE GENERATION PARTNERS, LLC (“Buyer”)
This Certificate is given pursuant to paragraph (d) of the definition of Commissioning in the Fuel Cell System Supply and Installation Agreement between the BLOOM ENERGY CORPORATION (“Seller”) and Buyer dated June 14, 2019 (as amended, amended and restated, supplemented or otherwise modified from time to time, the “CapEx Agreement”). Terms defined in the CapEx Agreement have the same meaning where used in this Certificate.
This certificate is provided in respect of the New Systems set forth on Attachment 1 hereto.
Seller hereby certifies, in respect of each such New System:
(a)    such New System has been installed at the applicable Facility specified in the Purchase Order, and has been Placed in Service; and 
(b)    such New System (A) has been installed in the applicable Facility, and (B) is producing power at one hundred percent (100%) of such New System’s System Capacity. 
Signed for and on behalf of BLOOM ENERGY CORPORATION
	
	
	By:    ........................................................................

	Name:..........................................................................

	Title:............................................................................

	
			
	 
	 
	 

Exhibit H-1

Attachment 1 to Seller’s Certificate of Commissioning

	
					
	Serial Number
	Project
	System Capacity
	Delivery Date
	Commissioning Date

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

	 
	 
	 
	 
	 

(i)    

	
			
	 
	 
	 

Exhibit H-2

Exhibit I
Forms of Conditional Lien Waiver and Final Lien Waiver

	
			
	 
	 
	 

Exhibit I-1

Exhibit J

Seller Corporate Safety Plan

At all times during the Term, Seller shall maintain at Seller’s corporate headquarters and adhere to Seller’s written corporate safety programs, which shall include the following programs:

	
	
	§    Contractor Environmental Health & Safety Program 

	§    Injury and Illness Prevention Program 

	§    Heat Illness Prevention Program 

	§    Emergency Action and Fire Prevention Plan 

	§    Hazard Communication Program 

	§    Corporate Electrical Standard – Specific Electrical Safe Work Practices 

	§    Electrical Safety Awareness 

	§    Lockout/Tagout 

	§    Fall Protection Program (Working at Heights) 

	§    Ladder Safety Program 

	§    Powered Industrial Trucks (PIT) 

	§    Hoist Safety Program 

	§    Personal Protective Equipment (PPE) 

	§    Respiratory Protection Program 

	§    Hearing Conservation Program 

	§    Hand and/or Powered Tools Safety Program 

	§    Hot Work Process 

	§    First Aid / CPR Program 

(the foregoing, collectively, the “Seller Corporate Safety Plan”).

    

	
	
	 

Exhibit J-1

Exhibit K

Subcontractor Quality Plan

Seller will adhere to the following standards and processes as applicable when engaging subcontractors for performance under this Agreement. 

		
	▪
	General contractors will be subject to the terms and conditions set forth in The American Institute of Architects Document A107 – 2007 as amended in certain cases

		
	▪
	General contractors are required to complete a Bloom Energy Contractor Qualification Training Program

		
	▪
	General contractor superintendents and foremen must be certified and qualified by Seller to be on site

		
	▪
	Standard safety protocols will be observed at all times: 

		
	§
	Site superintendents are OSHA30 certified

		
	§
	Seller superintendents ensure general contractors follow all local and state OSHA and owner requirements 

		
	§
	Confirmation of “Injury and Illness Prevention Program”

		
	§
	Seller included in the ISN program – 3rd party safety evaluation

		
	▪
	A project superintendent assigned by Seller will review subcontractor work according to a standard site verification check list

		
	▪
	Contractors will submit Contractor Quality Guarantees for each site providing written verification of points of assurance including torques per site, Megger testing and line flushing

		
	▪
	Prestart verification conducted for all sites to review and confirm the quality of subcontractor work

		
	▪
	Prior to Commissioning, Seller conducts an “OK to Start” meeting during which subcontractor quality of work is reviewed and confirmed as resolved

		
	▪
	All incidents are logged in a database and reviewed on an ongoing basis by Seller quality management as well as at the OK to Start meeting

		
	▪
	Quarterly business reviews conducted with general contractors to formally review incident data and mitigate process and workmanship issues.

	
	
	 

Exhibit K-1

Exhibit L

Parties’ Managers

Seller: [*]
Buyer: [*]

    

	
	
	 

Exhibit L-1

SCHEDULE 3.3(A)(II)

COMMISSIONING PROCEDURES

Seller will perform the following activities in connection with the commissioning of each New System, to the extent necessary to cause such New System to achieve Commissioning:

		
	§
	[*]

SCHEDULE 5.2(B)

SECTION 5.2(B) KNOWLEDGE PARTIES

[*]

Schedule 3.3(a)(ii)-1

SCHEDULE 12.14

APPROVED MAJOR SERVICE PROVIDERS

[*]
[*]
[*]

Schedule 12.14 -1

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