Document:

Exhibit 10.40(a)

 

CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED FOR THE REDACTED PORTIONS OF THIS AGREEMENT. THE REDACTIONS ARE INDICATED WITH THREE ASTERISKS (“***”). A
COMPLETE VERSION OF THIS AGREEMENT HAS BEEN FILED SEPARATELY WITH THE
SECURITIES AND EXCHANGE COMMISSION.

 

MEMBERSHIP
INTEREST PURCHASE AND

EQUITY CAPITAL CONTRIBUTION AGREEMENT

 

by and
among

 

NOBLE
ENVIRONMENTAL POWER 2008 HOLD CO., LLC,

 

NOBLE
ENVIRONMENTAL POWER 2008 HOLD CO. PRIME, LLC,

 

EFS NOBLE
II, LLC,

 

GE
CAPITAL MARKETS, INC.

 

AND

 

ANY OTHER
CLASS A EQUITY

INVESTOR PARTY HERETO

 

dated as
of

 

June 30,
2008

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 1 DEFINITIONS
  AND PRINCIPLES OF INTERPRETATION

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.01.

  	
   

  	
  Definitions

  	
   

  	
  2

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  1.02.

  	
   

  	
  Rules of
  Interpretation

  	
   

  	
  21

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 2

  	
   

  	
  EQUITY CAPITAL CONTRIBUTION

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.01.

  	
   

  	
  Membership
  Interest Purchase and Equity Capital Contribution

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  2.02.

  	
   

  	
  Use of
  Proceeds

  	
   

  	
  24

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 3

  	
   

  	
  REPRESENTATIONS AND WARRANTIES OF
  NOBLE HOLDCO

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.01.

  	
   

  	
  Organization
  and Good Standing; Organizational Documents

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.02.

  	
   

  	
  Authorization,
  Execution and Enforceability

  	
   

  	
  25

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.03.

  	
   

  	
  No Violation

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.04.

  	
   

  	
  Ownership of
  Company and Project Companies

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.05.

  	
   

  	
  Contracts

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.06.

  	
   

  	
  Default

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.07.

  	
   

  	
  Governmental
  Approvals

  	
   

  	
  29

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.08.

  	
   

  	
  Site Plans

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.09.

  	
   

  	
  Legal
  Proceedings

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.10.

  	
   

  	
  Title to
  Assets; No Options

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.11.

  	
   

  	
  Financial
  Statements

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.12.

  	
   

  	
  Consents and
  Approvals

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.13.

  	
   

  	
  Compliance
  with Applicable Laws

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.14.

  	
   

  	
  Development

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.15.

  	
   

  	
  Insurance

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.16.

  	
   

  	
  Environmental
  Matters

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.17.

  	
   

  	
  Subsidies

  	
   

  	
  31

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.18.

  	
   

  	
  Information

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.19.

  	
   

  	
  No
  Subsidiaries; Non-Related Liabilities

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.20.

  	
   

  	
  Exempt Wholesale
  Generator

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.21.

  	
   

  	
  No Employees

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.22.

  	
   

  	
  Brokers

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.23.

  	
   

  	
  Public Utility
  Holding Company Act

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.24.

  	
   

  	
  Completion

  	
   

  	
  33

  

 

i

 

	
  3.25.

  	
   

  	
  Taxes

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.26.

  	
   

  	
  Real Property

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.27.

  	
   

  	
  Real Property
  Payments

  	
   

  	
  34

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.28.

  	
   

  	
  Condemnation

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.29.

  	
   

  	
  Status of
  Property

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.30.

  	
   

  	
  Affiliate
  Transactions

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.31.

  	
   

  	
  Class B
  Investment Intent; Unregistered Securities

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.32.

  	
   

  	
  Class B
  Accredited Investor

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.33.

  	
   

  	
  United States
  Person

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.34.

  	
   

  	
  No Other
  Representations

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.35.

  	
   

  	
  No Pre-1987
  Contracts

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  3.36.

  	
   

  	
  No Application
  for Private Letter Ruling

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 4

  	
   

  	
  CLASS A EQUITY INVESTOR
  REPRESENTATIONS AND WARRANTIES

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.01.

  	
   

  	
  Organization
  and Good Standing

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.02.

  	
   

  	
  Authorization,
  Execution and Enforceability

  	
   

  	
  36

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.03.

  	
   

  	
  Legal
  Proceedings

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.04.

  	
   

  	
  No Violation

  	
   

  	
  37

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.05.

  	
   

  	
  Governmental
  Approvals

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.06.

  	
   

  	
  Class A
  Investment Intent; Unregistered Securities

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.07.

  	
   

  	
  Accredited
  Investor

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.08.

  	
   

  	
  United States
  Person

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.09.

  	
   

  	
  No Other
  Representations

  	
   

  	
  38

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  4.10.

  	
   

  	
  Brokers

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 5

  	
   

  	
  CONDITIONS PRECEDENT

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.01.

  	
   

  	
  Commitment
  Conditions Precedent

  	
   

  	
  39

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.02.

  	
   

  	
  Equity Capital
  Contribution Conditions Precedent

  	
   

  	
  40

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.03.

  	
   

  	
  Obligations of
  the Equity Investors on each Equity Capital Contribution Date

  	
   

  	
  48

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.04.

  	
   

  	
  Site Access

  	
   

  	
  49

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  5.05.

  	
   

  	
  Equity
  Investors Consents; Opinions in Favor of Lenders

  	
   

  	
  49

  

 

ii

 

	
  ARTICLE 6

  	
   

  	
  GENERAL PROVISIONS

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.01.

  	
   

  	
  Notices

  	
   

  	
  50

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.02.

  	
   

  	
  Indemnification

  	
   

  	
  51

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.03.

  	
   

  	
  No Third Party
  Beneficiaries

  	
   

  	
  56

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.04.

  	
   

  	
  Amendment and
  Waiver

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.05.

  	
   

  	
  Binding
  Nature; Assignment; Consent to Assignment

  	
   

  	
  57

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.06.

  	
   

  	
  Governing Law

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.07.

  	
   

  	
  Jurisdiction;
  Service of Process

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.08.

  	
   

  	
  Counterparts

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.09.

  	
   

  	
  Headings

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.10.

  	
   

  	
  Severability

  	
   

  	
  58

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.11.

  	
   

  	
  Entire
  Agreement

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.12.

  	
   

  	
  Confidentiality

  	
   

  	
  59

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.13.

  	
   

  	
  Further
  Assurances

  	
   

  	
  60

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.14.

  	
   

  	
  LIMITATION OF
  LIABILITY

  	
   

  	
  60

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.15.

  	
   

  	
  Guaranty
  Payments

  	
   

  	
  60

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.16.

  	
   

  	
  WAIVER OF JURY
  TRIAL

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.17.

  	
   

  	
  Acknowledgment

  	
   

  	
  61

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  6.18.

  	
   

  	
  Disclosure

  	
   

  	
  61

  

 

iii

 

Annexes

 

	
  Annex 1

  	
   

  	
  Equity Investors
  Capital Contribution Commitment, Class A Units and Class B Units,
  and Maximum Capital Contribution

  
	
  Annex 2

  	
   

  	
  Form of Amended
  and Restated Limited Liability Company Agreement of Company

  
	
  Annex 3-A

  	
   

  	
  Real Property Documents
  at Execution

  
	
  Annex 3-B

  	
   

  	
  Real Property Documents
  at each ECCD

  
	
  Annex 3-C

  	
   

  	
  Debt Financing
  Documents at Execution

  
	
  Annex 3-D

  	
   

  	
  Debt Financing
  Documents at each ECCD

  
	
  Annex 3-E

  	
   

  	
  General Contracts at
  Execution

  
	
  Annex 3-F

  	
   

  	
  General Contracts at
  each ECCD

  
	
  Annex 4-A

  	
   

  	
  Project Company
  Governmental Approvals

  
	
  Annex 4-B

  	
   

  	
  Transaction
  Governmental Approvals

  
	
  Annex 5

  	
   

  	
  Insurance Policies

  
	
  Annex 6

  	
   

  	
  Base Case Model

  
	
  Annex 7-A

  	
   

  	
  General Assumptions

  
	
  Annex 7-B

  	
   

  	
  Fixed Pricing
  Assumptions

  
	
  Annex 7-C

  	
   

  	
  Restricted Pricing
  Assumptions

  
	
  Annex 8-A

  	
   

  	
  Legal Description of
  Altona Wind Farm Site

  
	
  Annex 8-B

  	
   

  	
  Legal Description of
  Chateaugay Wind Farm Site

  
	
  Annex 8-C

  	
   

  	
  Legal Description of
  Wethersfield Wind Farm Site

  
	
  Annex 9

  	
   

  	
  Transaction Expenses

  
	
  Annex 10-A

  	
   

  	
  Form of Approved
  Investor Equity Contributions Guaranty

  
	
  Annex 10-B

  	
   

  	
  Form of Approved
  Investor Equity Indemnity Guaranty

  
	
  Annex 11-A

  	
   

  	
  Form of EPC
  Estoppel

  
	
  Annex 11-B

  	
   

  	
  Form of Guarantor
  Estoppel

  
	
  Annex 11-C

  	
   

  	
  Form of O&M
  Estoppel

  
	
  Annex 12

  	
   

  	
  Knowledgeable Persons
  of Initial Class A Equity Investor and GECM

  
	
  Annex 13

  	
   

  	
  Proforma Owner’s Policy

  
	
  Annex 14

  	
   

  	
  Consents and Approvals

  
	
  Annex 15-A

  	
   

  	
  Form of FERC
  Regulatory Opinion of Counsel to Project Companies

  
	
  Annex 15-B

  	
   

  	
  Form of State
  Energy Regulatory Opinion of Counsel to Project Companies

  
	
  Annex 15-C

  	
   

  	
  Form of Permitting
  Opinion of Counsel to Project Companies

  
	
  Annex 15-D

  	
   

  	
  Form of Corporate
  Opinion of Counsel to the Project Companies, the Company, Noble Holdco, EPC
  Contractor, Guarantor, O&M Contractor and Administrator

  
	
  Annex 15-E

  	
   

  	
  Form of Opinion of
  In-House Counsel to Project Companies, the Company, Noble Holdco, EPC
  Contractor, Guarantor, O&M Contractor and Administrator

  
	
  Annex 15-F

  	
   

  	
  Form of Opinion of
  In-House Counsel to Administrative Agent

  
	
  Annex 15-G

  	
   

  	
  Form of Opinion of
  Counsel to Administrative Agent

  
	
  Annex 15-H

  	
   

  	
  Form of Opinion of
  Counsel to each Class A Equity Investor and provider of a Class A
  Equity Guaranty

  
	
  Annex 16

  	
   

  	
  Knowledgeable Persons
  of Noble Holdco

  
	
  Annex 17

  	
   

  	
  Form of Consent to
  Assignment

  
	
  Annex 18

  	
   

  	
  Ownership of Wind Farms

  
	
  Annex 19

  	
   

  	
  Subsidiaries

  

 

iv

 

	
  Annex 20

  	
   

  	
  Disqualified
  Transferees

  
	
  Annex 21

  	
   

  	
  Legal Proceedings

  
	
  Annex 22

  	
   

  	
  Real Property

  
	
  Annex 23

  	
   

  	
  Form of Equity
  Support Member Pledge Agreement

  
	
  Annex 24

  	
   

  	
  Environmental
  Disclosure

  
	
  Annex 25

  	
   

  	
  Form of
  Substantial Completion Certificate

  
	
  Annex 26

  	
   

  	
  Form of Equity
  Guaranty

  
	
  Annex 27

  	
   

  	
  Form of Assignment
  and Assumption Agreement

  

 

v

 

MEMBERSHIP
INTEREST PURCHASE AND

EQUITY CAPITAL CONTRIBUTION AGREEMENT

 

This MEMBERSHIP INTEREST
PURCHASE AND EQUITY CAPITAL CONTRIBUTION AGREEMENT (this “Agreement”), dated as of June 30, 2008 (the “Execution Date”), is entered into by and among NOBLE ENVIRONMENTAL POWER 2008 HOLD CO., LLC,
a Delaware limited liability
company (the “Company”), NOBLE ENVIRONMENTAL
POWER 2008 HOLD CO. PRIME, LLC, a Delaware limited liability company (“Noble Holdco”), EFS NOBLE II, LLC, a Delaware limited
liability company  (“Initial Class A
Equity Investor”), GE Capital Markets, Inc., a Delaware
corporation (“GECM”), and any other Class A
Equity Investor party hereto.

 

RECITALS:

 

1.             The
Company was formed pursuant to the Delaware
Limited Liability Company Act on June 1, 2007.

 

2.             Immediately
prior to the execution and delivery of this Agreement and the LLC Agreement (as
defined below), Noble Holdco is the sole member and one hundred percent (100%)
owner of the Company.

 

3.             Immediately
prior to the execution and delivery of this Agreement, Noble Environmental
Power 2007 Hold Co., LLC (“Noble 2007 Holdco”)
is the sole member and one hundred percent (100%) owner of each Project Company
(as defined below).

 

4.             In
connection with the financing of certain wind turbines (including those
associated with the Wind Farms (as defined below)) (the “Turbine
Financing”), Noble 2007 Holdco pledged the membership interests in
each Project Company to various lenders (the “Turbine
Lenders”).

 

5.             Immediately
upon funding of the Debt Financing (defined below), those obligations under the
Turbine Financing relating to the wind turbines associated with the Project
Companies will be repaid, and the lenders will release their liens on the
membership interests of each Project Company.

 

6.             Immediately
upon the release of such liens, the interests in each Project Company will be
transferred from Noble 2007 Holdco to the Company (the “Transfer”).

 

7.             Upon
the Transfer, the Company shall be the sole member and one hundred percent
(100%) owner of each Project Company (as defined below).

 

8.             Noble
Altona (as defined below) owns all the rights and interests in a proposed
97.5 MW wind-powered generation facility located in Clinton County, New
York.

 

9.             Noble
Chateaugay (as defined below) owns all the rights and interests in a proposed
106.5 MW wind-powered generation facility located in Franklin County, New York,
and Clinton County, New York.

 

 

10.           Noble
Wethersfield (as defined below) owns all the rights and interests in a proposed
126 MW wind-powered generation facility located in Wyoming County, New York.

 

11.           The
Company is expecting to enter into a financing transaction (the “Debt Financing”) contemplated by that certain Financing
Agreement dated as of the date hereof (as the same may be amended, modified or
supplemented from time to time, the “Financing Agreement”),
by and among the Company, the financial institutions from time to time party
thereto as lenders (collectively, the “Lenders”),
Citibank, N.A., as collateral agent, and the other agents party thereto from
time to time, pursuant to which the construction and operation of the Wind
Farms (as defined below) will be financed.

 

12.           It
is a condition to the Financial Closing Date (as defined in the Financing
Agreement) under the Financing Agreement that this Agreement has been executed
and delivered by the Parties hereto and, accordingly, in consideration of the
mutual agreements, covenants, representations and warranties set forth herein,
and intending to be legally bound hereby, the Parties agree as follows:

 

ARTICLE 1

DEFINITIONS AND PRINCIPLES OF INTERPRETATION

 

1.01.               Definitions.  As used in this Agreement, the following
terms have the respective meanings set forth below or set forth in the Sections
referred to below:

 

“ACCA” means
that certain Additional Capital Contribution Agreement by and among the Class A
Equity Investors, the Company and Noble Holdco, dated as of the date hereof.

 

“Administrative Agent”
means the Person acting in the capacity of “administrative agent”, or a similar
capacity, under the Debt Financing Documents.

 

“Administrator”
means Noble Management Services, LLC, a Delaware limited liability company, in
its capacity as administrator under the Project Administration Agreements.

 

“Advisors” has
the meaning set forth in Section 6.12(a).

 

“Affiliate”
means, as to any specified Person, any other Person directly or indirectly
controlling, controlled by, or under common control with such specified
Person.  As used in this definition, “control” (including the terms “controlled
by” and “under common control with”)
shall mean the possession, directly or indirectly, of the power to direct or
cause the direction of management and policies of a Person (whether through
ownership of securities or partnership or other ownership interests, by
contract or otherwise); provided that in any event, any Person that owns
directly or indirectly fifty percent (50%) or more of the securities having
ordinary voting power for the election of directors or other governing body of
a corporation or fifty percent (50%) or more of the partnership or other
ownership interests of any other Person (other than as a limited partner of
such other Person) will be deemed to control such corporation or other Person;
provided that, the defined term “Affiliate” herein which arises out of any
obligation, requirement, regulation or order of FERC shall mean the foregoing
replacing the phrase “fifty percent (50%)” wherever it appears with the phrase
“ten percent (10%).”

 

2

 

“After-Tax Payout”
means an effective after income tax internal rate of return of *** percent
(***%) as of the tenth (10th) anniversary of the Initial Equity Capital
Contribution Date, based on the Assumptions, as may be amended pursuant to Section 2.01;
provided that such percentage shall be increased or decreased on the date which
is two (2) Business Days prior to the Initial Equity Capital Contribution
Date (the “determination date”) by *** (***) of a basis point for each basis
point increase or decrease, respectively, in the 10-year U.S. Dollar fixed
interest rate swap (vs. 90-day LIBOR) as determined by the Bloomberg closing
value (currency identifier “USSW10”), or any replacement successor screen (the
“yield rate”), in effect at 11:00 am New York time on the determination date
compared to such yield rate in effect at the closing of business on January 8,
2008, which was four and four-tenths percent (4.4055%); and provided, further,
that such percentage may be increased and such term extended as set forth in
the *** and as provided in the Assumptions.

 

“Agreement”
means this Membership Interest Purchase and Equity Capital Contribution
Agreement.

 

“ALTA Survey”
means an ALTA survey of the real property interests in each Wind Farm Site
other than the Border Parcels (the “Premises”),
current within ninety (90) days prior to the applicable date, certified to the
Title Company, the Company and each of the Equity Investors, in a form
reasonably acceptable to all such parties, showing: (a) the location of
the perimeter of the Premises by metes and bounds or in rectangular survey
format, (b) any additional easements, rights-of-way, and utility lines
referred to in the Title Policy which actually service or cross the Premises to
the extent the easements and rights-of-way are locatable from the description
contained in the easement or right-of-way document or to the extent the utility
lines are located above ground or are designated by monuments or markers or
that are otherwise visible above ground, (c) the lines of the public streets
abutting the Premises showing access to the Premises from a public right of
way, and any established building and setback lines, if applicable, (d) encroachments
and the extent thereof upon or off of the Premises and of any Wind Farm
improvements upon any established building, setback and street lines, (e) such
Wind Farm’s improvements to the extent constructed and the relationship of such
Wind Farm improvements (other than roadways) by distances to the perimeter of
the Premises, established building, setback, street lines, and, if any Wind
Farm improvements encroach upon or violate any established building, setback or
street lines, the relationship of such Wind Farm improvements by distances to
the perimeter of the Border Parcels, (f) the location of the Border
Parcels, (g) all flood zone designations in respect of the Premises, (h) any
gaps, gores or overlaps between real property interests which comprise the
Premises and whether such real property interests are contiguous, and (i) such
other matters and details as may reasonably be requested by such parties;
provided that, notwithstanding any of the foregoing, the survey may be based on
aerial photograph of the Premises and, accordingly, may not satisfy the
standards for accuracy of an ALTA survey with respect to precision of
measurement.

 

“Ancillary Border Parcels”
means Border Parcels that are not required for a Wind Farm to comply with any
set-back requirements or other Applicable Laws. 

 

“Applicable Laws”
means, as to any Person, any treaty, constitution, law, statute, ordinance,
judgment, order, writ, injunction, decree, award, rule, regulation or other
directive which is legally binding and has been enacted, issued or promulgated
by any Governmental 

 

3

 

Authority, in each case,
applicable to or binding upon such Person or any of its property, or to which
such Person or any of its property is subject, including any Hazardous
Substances Law.

 

“Approved Investor”
means (a) an Institutional Investor whose long-term senior unsecured
indebtedness is rated “A-” or higher by Standard & Poor’s Rating
Services or “A3” or higher by Moody’s Investors Service, Inc.; (b) an
Institutional Investor lacking such credit rating if, at such Institutional
Investor’s option, (i) one of its Affiliates which has the minimum credit
rating set forth above has provided (A) an irrevocable and unconditional
guaranty in favor of the Company of such Institutional Investor’s pro rata
share (based on the Class A Units to be acquired by it) of the obligations
to the Company under this Agreement, the LLC Agreement and the ACCA and (B) an
irrevocable and unconditional guaranty in favor of the Class B Equity
Investor of such Institutional Investor’s pro rata share (based on the Class A
Units to be acquired by it) of its obligations to the Class B Equity
Investor under this Agreement, the LLC Agreement and the ACCA, or (ii) such
Institutional Investor has provided a letter of credit issued by an entity
which has the minimum credit rating set forth above or any other
cash-collateralized financial instrument (in each of the case, in
form and substance reasonably acceptable to the Company, and, so long as the
Company has any Debt Obligations, the Administrative Agent) securing the
Institutional Investor’s obligations described in the preceding clause (i); or (c) an
Institutional Investor that has deposited cash in escrow (on terms and
conditions reasonably acceptable to the Company and, so long as the Company has
any Debt Obligations, the Administrative Agent) to secure its obligations
described in clause (i) of the preceding clause (b).

 

“Assets” means,
with respect to any Person, all right, title and interest of such Person in
land, properties, buildings, improvements, fixtures, foundations, assets and
rights of any kind, whether tangible or intangible, real, personal or mixed,
including contracts, equipment, systems, books and records, proprietary rights,
intellectual property, Governmental Approvals, rights under or pursuant to all
warranties, representations and guarantees, cash, accounts receivable, deposits
and prepaid expenses.

 

“Assumptions”
means the assumptions and other inputs used in the Base Case Model (including
those set forth in Annex 7-A, the Fixed Pricing Assumptions and the
Restricted Pricing Assumptions), as such assumptions and other inputs (other
than Fixed Pricing Assumptions) are subject to adjustment pursuant to Section 2.01.  For the avoidance of doubt, none of the Fixed
Pricing Assumptions set forth on Annex 7-B shall be subject to any
such adjustment pursuant to Section 2.01, or otherwise in
accordance with the terms hereof and the Restricted Pricing Assumptions set
forth on Annex 7-C shall only be subject to adjustment pursuant to Section 2.01
or otherwise within the ranges specified on Annex 7-C.

 

“Base Case Model”
means the financial projections with respect to the Wind Farms attached hereto
as Annex 6, as may be revised pursuant to the terms hereof.

 

“Border Parcels”
means parcels of land within a Wind Farm Site on which no improvements,
roadways or transmission equipment comprising any portion of a Wind Farm are
located.

 

“Business Day”
means any day other than a Saturday, a Sunday or any other day on which banks
are authorized to be closed in New York, New York.

 

4

 

“Change of Law”
means (i) any amendment or change enacted into the Code, (ii) any
amendment or change to the Treasury Regulations (including the issuance or
promulgation of temporary regulations), (iii) any legally binding
administrative pronouncement or other ruling or guidance (including guidance
from the IRS or the U.S. Department of Treasury), (iv) any legally binding
executive order, or (v) any decision of a federal court that has not been
reversed by a higher federal court.

 

“Charter Documents”
means, with respect to any Person (other than an individual), (a) if a
corporation, the articles or certificate of incorporation and the bylaws; (b) if
a general partnership, the partnership agreement and any statement of
partnership; (c) if a limited partnership, 
the limited partnership agreement and the certificate of limited
partnership; (d) if a limited liability company, the articles of
organization and operating agreement; (e) if another type of Person, any
other charter or similar document adopted or filed in connection with the
creation, formation or organization of the Person; and (f) any amendment
or supplement to any of the foregoing.

 

“Class A Capital
Commitment” means the commitment of each Class A Equity
Investor to contribute capital to the Company in the amount set forth in Annex 1
as its “Class A Capital Commitment;” provided that such amount shall not
include the amounts contributed under the ACCA.

 

“Class A Engineer”
means Sigma Energy Solutions.

 

“Class A Equity
Contributions Guaranty” means, with respect to any Approved Investor
meeting such definition only by means of subclause (b)(i) of such
definition, a guaranty in favor of the Company in substantially the form
attached hereto as Annex 10-A, relating to the obligations of such
Approved Investor to the Company under this Agreement, the LLC Agreement and
the ACCA.

 

“Class A Equity
Guarantees” means the Class A Equity Contributions Guaranty and
the Class A Equity Indemnity Guaranty; and each of them is a “Class A Equity Guaranty.”

 

“Class A Equity
Indemnity Guaranty” means, with respect to any Approved Investor
meeting such definition only by means of subclause (b)(i) of such
definition, a guaranty in favor of the Class B Equity Investor in
substantially the form attached hereto as Annex 10-B, relating to the
obligations of such Approved Investor to the Class B Equity Investor under
this Agreement, the LLC Agreement and the ACCA.

 

“Class A Equity
Investors” means the Equity Investors who purchase Class A
Units.

 

“Class A Indemnified
Party” has the meaning set forth in Section 6.02(a).

 

“Class A Indemnifying
Party” has the meaning set forth in Section 6.02(b).

 

“Class A Unit”
means a unit representing a membership interest in the Company having the rights,
preferences and designations provided for such class in the LLC Agreement.

 

5

 

“Class B Equity
Investor” means Noble Holdco.

 

“Class B Unit”
means a unit representing a membership interest in the Company having the
rights, preferences and designations provided for such class in the LLC
Agreement.

 

“Code” means the
Internal Revenue Code of 1986, as amended.

 

“Collateral Documents”
means the documents that are listed in Sections I, J and K of Annex 3-C.

 

“Company” means Noble Environmental Power 2008 Hold Co., LLC,
a Delaware limited liability
company.

 

“Company Pledge Agreement”
means that certain Pledge Agreement, dated as of the date hereof, by Noble
Holdco in favor of the Administrative Agent, concerning the membership
interests of Noble Holdco in the Company as required by the Financing
Agreement.

 

“Consent to Assignment”
has the meaning set forth in Section 5.06.

 

“Contractors”
means TSA Contractor, EPC Contractor, and O&M Contractor.

 

“Debt Financing”
has the meaning set forth in the recitals to this Agreement.

 

“Debt Financing Documents”
means the documents that are listed in Annex 3-C.

 

“Debt Obligations”
has the meaning assigned to the term “Obligations” in the Financing Agreement.

 

“Disqualified Transferee”
means any of the Persons listed on Annex 20.

 

“Encumbrance”
means any lien (statutory or otherwise), mortgage, deed of trust, claim,
option, lease, easement, right of way, charge, pledge, security interest,
hypothecation, assignment, use restriction, reservation, or other encumbrance
of any kind or nature whatsoever, whether voluntary or involuntary, choate or
inchoate (including any agreement to give any of the foregoing, and any
conditional sale or other title retention agreement).

 

“Environmental Claim”
means any and all obligations, liabilities, losses, administrative, regulatory
or judicial actions, suits, demands, decrees, claims, liens, judgments, warning
notices, notices of noncompliance or violation, investigations, proceedings,
removal or remedial actions or orders, or damages (foreseeable and
unforeseeable, including consequential and punitive damages), penalties, fees,
out-of-pocket costs, expenses, disbursements, attorneys’ or consultants’ fees,
relating in any way to any Hazardous Substances Law or any permit issued under
or authorization obtained pursuant to any such Hazardous Substances Law
(hereafter “claims”), including (a) any and all claims by any Person for
enforcement, cleanup, removal, response, remedial or other actions or damages
or injunctive relief pursuant to any applicable Hazardous Substances Law, and (b) any
and all claims by any third party seeking damages, contribution,
indemnification, cost recovery, compensation or injunctive relief, pursuant to
applicable Hazardous Substances Law, resulting either from the release of or
exposure to 

 

6

 

Hazardous Substances or
from alleged injury or threat of injury to health, safety or the environment.

 

“Environmental
Consultant”  means Ecology
and Environment, Inc..

 

“Environmental Reports”
means the Phase I Environmental Site Assessments for each of the Wind Farm
Sites (other than the Ancillary Border Parcels).

 

“EPC Contractor”
means Noble Constructors, LLC.

 

“EPC Contracts”
means (a) the Noble Altona EPC Contract, (b) the Noble Chateaugay EPC
Contract, and (c) the Noble Wethersfield EPC Contract; and each of them is
an “EPC Contract.”

 

“EPC Subcontractor”
means each subcontractor directly performing services for the EPC Contractor
with respect to services due from the EPC Contractor pursuant to the EPC
Contracts.

 

“Equity Capital
Contribution” means, with respect to an Equity Investor, the Initial
Equity Capital Contribution or the Second Equity Capital Contribution made by
such Equity Investor pursuant to Section 2.01.

 

“Equity Capital
Contribution Conditions Precedent” has the meaning set forth in Section 5.02.

 

“Equity Capital
Contribution Date” means the Initial Equity Capital Contribution
Date or the Second Equity Capital Contribution Date.

 

“Equity Guaranty”
means the guaranty of Guarantor in favor of the Company in substantially the
form attached hereto as Annex 26, dated as of the Initial Equity Capital
Contribution Date, relating to the obligation of Noble Holdco to make the ETL Capital
Contribution (as defined in Annex 2).

 

“Equity Investors”
means the Class B Equity Investor, the Initial Class A Equity
Investor, GECM and any additional Class A Equity Investor to whom the
Initial Class A Equity Investor or GECM assigns a portion of its rights
and obligations hereunder pursuant to Section 6.05.

 

“Equity Support Member
Pledge Agreement” means an Equity Support Member Pledge Agreement,
made by a Class A Equity Investor in favor of the Administrative Agent in
substantially the form attached hereto as Annex 23.

 

“Execution Date”
has the meaning set forth in the preamble hereto.

 

“Exempt Wholesale Generator”
or “EWG” means an “exempt
wholesale generator” as defined in 18 C.F.R. §366.1.

 

7

 

“FERC” means the
Federal Energy Regulatory Commission, and any successor thereto.

 

“Final Completion”
means, with respect to each Wind Farm, “Final Acceptance” under the applicable
EPC Contract and final acceptance of such work (including acceptance by the Company,
the applicable Project Company, and the Independent Engineer, and completion of
all Punch List items) shall have occurred and that completion of all such work
shall have been materially in accordance with the terms of the Plans and
Specifications (as defined in the Financing Agreement) and the requirements of
all Governmental Approvals.

 

“Final Equity Capital
Contribution Date” means the earlier of (i) the Equity Capital
Contribution Date on, or the last Equity Capital Contribution Date prior to, June 30,
2009, and (ii) the Equity Capital Contribution Date on which, when
combined with the Wind Turbines funded on any prior Equity Capital Contribution
Date, two hundred twenty (220) Wind Turbines have achieved Substantial
Completion and have been (or will be upon such Equity Capital Contribution
Date) the subject of a completed Equity Capital Contribution.

 

“Financial Statements”
means (a) with respect to the Company, the consolidated and consolidating
income statement, balance sheet, and statement of cash flows of the Company and
its subsidiaries, and (b) with respect to each Project Company, the income
statement, balance sheet, and statement of cash flows of such Project Company,
in each of cases (a) and (b) above, (i) prepared in accordance
with GAAP for each Fiscal Quarter of the relevant Person, and (ii) prepared
and audited (either individually or as part of a consolidated group including
only the Company and Project Companies) in accordance with GAAP for each Fiscal
Year of the relevant Person.

 

“Financing Agreement”
has the meaning set forth in the recitals to this Agreement.

 

“Fiscal Quarter”
means any quarterly accounting period of the Company or any Project Company
during any Fiscal Year.

 

“Fiscal Year”
means the annual accounting period of the Company or any Project Company ending
December 31 of any calendar year.

 

“Fixed Pricing Assumptions”
means those items set forth in Annex 7-B.

 

“Flow of Funds Memorandum”
means a funding memorandum dated as of an Equity Capital Contribution Date, setting forth in detail,
among other things, all the costs and expenses of the Wind Farms including the
exact amounts to be paid on such date and the Persons (and the account
information related thereto) to whom such amounts are to be paid, which funding
memorandum shall be reasonably satisfactory to the Equity Investors.

 

“FPA” means the
Federal Power Act, as amended, 16 U.S.C. §§ 791a et seq.

 

“GAAP” means
U.S. generally accepted accounting principles in effect on the date on which
they are to be applied pursuant to this Agreement, applied consistently
throughout the relevant periods.

 

8

 

“GECM” means GE
Capital Markets, Inc., a Delaware corporation.

 

“Governmental Approval”
means all filings, certifications, determinations, permits, licenses,
registrations, approvals, and authorizations of or with, and any written waiver
from, any Governmental Authority.

 

“Governmental Authority”
means any national, state or local government (whether domestic or foreign),
any political subdivision thereof or any other governmental,
quasi-governmental, judicial, public or statutory instrumentality, authority,
body, agency, bureau or entity (including any zoning authority, FERC, the U.S.
Department of Treasury, IRS, the Securities and Exchange Commission, the FDIC,
the Comptroller of the Currency or the Federal Reserve Board, any central bank
or any comparable authority).

 

“Guarantor”
means Noble Environmental Power, LLC, a Delaware limited liability company.

 

“Hazardous
Substances” means (statutory acronyms and abbreviations having the
meaning given them in the definition of “Hazardous Substances Laws”) substances
defined as “hazardous substances,” “pollutants” or “contaminants” in Section 101
of the CERCLA; those substances defined as “hazardous waste,” “hazardous
materials” or “regulated substances” by the RCRA; those substances designated
as a “hazardous substance” pursuant to Section 311 of the CWA; those
substances defined as “hazardous materials” in Section 103 of the HMTA;
those substances regulated as a hazardous chemical substance or mixture or as
an imminently hazardous chemical substance or mixture pursuant to
Sections 6 or 7 of the TSCA; those substances defined as “contaminants” by
Section 1401 of the SDWA, if present in excess of permissible levels;
those substances regulated by the Oil Pollution Act; those substances defined
as a pesticide pursuant to Section 2(u) of the FIFRA; those
substances defined as a source, special nuclear or by-product material by Section 11
of the AEA; those substances defined as “residual radioactive material” by Section 101
of the UMTRCA; those substances defined as “toxic materials” or “harmful
physical agents” pursuant to Section 6 of the OSHA; those substances
defined as hazardous wastes in 40 C.F.R. Part 261.3; those substances
defined as hazardous waste constituents in 40 C.F.R.  Part 260.10, specifically including
Appendix VII and VIII of Subpart D of 40 C.F.R. Part 261; those
substances designated as hazardous substances in 40 C.F.R. Parts 116.4 and
302.4; those substances defined as hazardous substances or hazardous materials
in 49 C.F.R. Part 171.8; those substances regulated as hazardous
materials, hazardous substances, or toxic substances in 40 C.F.R. Part 1910;
any substance or material that is prohibited, regulated or defined as
“hazardous” or any other term of similar import under, or for which liability
is imposed pursuant to, any Hazardous Substances Law, including without
limitation, pollutants, contaminants, wastes, toxic substances, toxic mold,
noise emissions, radon gas, oil, petroleum, petroleum derivatives, asbestos,
PCBs, VOCs, SVOCs, or in the regulations adopted and publications promulgated
pursuant to any Hazardous Substances Laws, whether or not such regulations or
publications are specifically referenced herein. Hazardous Substances also
include the foregoing substances as defined in any state or local counterparts
or equivalent to any of the above-cited federal references.

 

“Hazardous Substances Law”
means any of: (a) the Comprehensive Environmental Response, Compensation,
and Liability Act of 1980, as amended (42 U.S.C. 

 

9

 

Section 9601 et seq.) (“CERCLA”); (b) the Federal Water Pollution
Control Act (33 U.S.C. Section 1251 et seq.)
(“Clean Water Act” or “CWA”); (c) the Resource Conservation and Recovery
Act (42 U.S.C. Section 6901 et seq.)
(“RCRA”); (d) the Atomic Energy Act of 1954 (42 U.S.C. Section 2011 et seq.) (“AEA”); (e) the Clean Air Act (42 U.S.C. Section 7401
et seq.) (“CAA”); (f) the Emergency
Planning and Community Right to Know Act (42 U.S.C. Section 11001 et seq.) (“EPCRA”); (g) the Federal Insecticide,
Fungicide, and Rodenticide Act (7 U.S.C. Section 136 et seq.)
(“FIFRA”); (h) the Oil Pollution Act of 1990 (P.L. 101-380, 104 Stat.
486); (i) the Safe Drinking Water Act (42 U.S.C. Sections 300f et seq.) (“SDWA”); (j) the Toxic Substances Control Act
(15 U.S.C. Section 2601 et seq.)
(“TSCA”); (k) the Hazardous Materials Transportation Act (49 U.S.C. Section 1801
et seq.) (“HMTA”); (l) the Uranium
Mill Tailings Radiation Control Act of 1978 (42 U.S.C. Section 7901 et seq.) (“UMTRCA”); (m) the Occupational Safety and
Health Act (29 U.S.C. Section 651 et seq.)
(“OSHA”); (n) the National Environmental Policy Act (42 U.S.C. Sections
4321 et seq.); (o) the Endangered
Species Act (16 U.S.C. Section 1531 et seq.); (p) the
National Historic Preservation Act (16 U.S.C. Section 470 et seq.); (q) the Rivers and Harbors Act (33 U.S.C. Section 401
et seq.); (r) the State Environmental
Quality Review Act (NY ECL Sections 8-0101 et seq.);
(s) any other state or local counterpart or equivalent to any of the
above-cited federal references; and (t) all other Applicable Law now or
hereafter in effect that relates to pollution, management, protection or
cleanup of the environment, including the protection of endangered species and
migratory birds and the preservation of cultural resources, or to (i) any
release or (ii) the use, treatment, storage, disposal, handling,
manufacturing, transportation or shipment of Hazardous Substances or otherwise
governs Hazardous Substances, including all duties, standards of conduct or
responsibility pursuant to common law.

 

“Hedge Agreement”
means the ISDA Master Agreement, the ISDA Credit Support Annex and the
Confirmation (in each case, including related annexes, schedules and exhibits
thereto), dated as of the date hereof, between the Hedge Provider and the
Company.

 

“Hedge Company Pledge
Agreement” means that certain Second Lien Pledge Agreement, dated as
of the date hereof, by Noble Holdco in favor of the Hedge Provider, concerning
the membership interests of Noble Holdco in the Company as required by the
Hedge Agreement.

 

“Hedge Provider”
means Citigroup Energy Inc., a Delaware corporation.

 

“Hedge Provider Forbearance
Agreement” means that certain Forbearance Agreement among the
Initial Class A Equity Investor, GECM, the Company  and
the Hedge Provider, dated as of the date hereof.

 

“IDA Documents”
means the documents that are listed in Section H of  Annex 3-A.

 

“Indemnified Parties”
means the Noble Indemnified Parties or the Class A Indemnified Parties, as
applicable.

 

“Indemnified Party”
means a Noble Indemnified Party or a Class A Indemnified Party, as
applicable.

 

10

 

“Indemnifying Parties”
means the Noble Indemnifying Parties or the Class A Indemnifying Parties,
as applicable.

 

“Indemnifying Party”
means a Noble Indemnifying Party or a Class A Indemnifying Party, as
applicable.

 

“Independent Engineer”
means Garrad Hassan America, Inc.

 

“Independent Engineer
Report” means a report of the Independent Engineer, in form and
substance satisfactory to, and agreed to and accepted by, the Class A
Engineer.

 

“Independent Wind Engineer” means Garrad
Hassan America, Inc..

 

“Initial Class A
Equity Investor” means EFS Noble II, LLC, a Delaware limited
liability company.

 

“Initial Equity Capital
Contribution” means, with respect to an Equity Investor, a capital
contribution made by such Equity Investor on the Initial Equity Capital
Contribution Date pursuant to Section 2.01.

 

“Initial Equity Capital
Contribution Date” means the first Business Day on which the
satisfaction or waiver of all of the Equity Capital Contribution Conditions
Precedent with respect to the Initial Equity Capital Contribution occurs.

 

“Institutional Accredited
Investor” mean any “accredited investor” of the type referred to in
subparagraphs (1), (2), (3) or (7) of Rule 501(a)  under
the Securities Act.

 

“Institutional Investor”
means an investor other than an individual.

 

“Insurance Consultant”
means Moore McNeil, LLC.

 

“Insurance Report”
means a report of the Insurance Consultant which confirms that the insurance
coverages in place during the construction and operation periods of the Wind
Farms comply with the insurance policies set forth in Annex 5.

 

“Interconnection Agreements”
means the Noble Altona Interconnection Agreement, the Noble Chateaugay
Interconnection Agreement, and the Noble Wethersfield Interconnection
Agreement; and each of them is an “Interconnection Agreement.”

 

“Interconnection Line”
means the interconnection or transmission line(s) over which the
electrical power generated at each Wind Farm will be transmitted and delivered
pursuant to the applicable Interconnection Agreement from each Wind Farm Site
to the Point(s) of Interconnection (as defined in each relevant
Interconnection Agreement).

 

“IRS” means the
U.S. Internal Revenue Service, and any successor thereto.

 

“Knowledge”
means (a) with respect to Noble Holdco, the actual knowledge of any
individual holding the title and job responsibilities described in Annex 16,
(b) with respect to 

 

11

 

the Initial Class A
Equity Investor and GECM, the actual knowledge of any individual holding the
title and job responsibilities described in Annex 12, and (c) as
to any Person other than Noble Holdco, the Initial Class A Equity Investor
or GECM (including all officers, directors, managers and employees thereof),
the actual knowledge of the Person, or if the Person is not a natural person,
the actual knowledge of the officers, directors or managers of such Person.

 

“Lenders” has
the meaning ascribed thereto in the recitals to this Agreement and shall
include any Person to which the Company has any Debt Obligations.

 

“Lender’s Title Policy”
means the Lender’s Policy of Title Insurance issued to the Lenders concurrently
with the closing of the Debt Financing.

 

“LLC Agreement”
means the Amended and Restated Limited Liability Company Agreement of the Company
to be duly authorized, executed and delivered by the Equity Investors on the
Initial Equity Capital Contribution Date, in substantially the form attached
hereto as Annex 2.

 

“Losses” means
any and all claims, liabilities, losses, damages, costs, and expenses.

 

 “Major Project Contracts” means (a) as of the Execution
Date, the documents listed in Annex 3-C and Annex 3-E, and (b) as
of each Equity Capital Contribution Date, the documents listed in Annex 3-C,
Annex 3-D, Annex 3-E and Annex 3-F.

 

“Market Consultant”
means Ventyx Inc.

 

“Material Adverse Effect”
means a material adverse change in the status of the business, results of
operations or financial condition of Noble Holdco, Guarantor, the Company, and
the Project Companies, taken as a whole, in each case excluding any effect
resulting from (a) any general change in industry, market, or financial
conditions of the United States national economy or the northeastern United
States regional economy (including changes in either such economy as a whole,
the electric generating, transmission or distribution industry, the wholesale
or retail markets for electricity, the general state of the energy industry,
including natural gas and natural gas liquid prices, the electricity
transmission system, interest rates, political conditions, outbreak of
hostilities, terrorist activities or war), (b) any change in applicable
law or regulatory policy of general application and not specific to any
Governmental Approval required for the development, ownership, construction,
operation or maintenance of the Wind Farms, or (c) strikes, work stoppages or
other labor disturbances not specific to the Wind Farms.

 

“Modified
PTC Extension” means an amendment, renewal, modification or
change to Code Section 45 (or any successor provision if Code Section 45
is redesignated) that (a) is enacted before January 1, 2010, (b) changes
the date specified in Code Section 45(d)(1) (as in effect on the
Execution Date) before which a facility using wind to produce electricity must
be originally placed in service in order to constitute a “qualified facility”
(within the meaning of Code Sections 45(d)(1) and 45(a)(2)(A)(ii) or
any successor provision if Code Section 45 is redesignated), from January 1,
2009, to January 1, 2010, or some later date and (c) changes one or
more of the following in the manner specified:  (1) the tax credit
rate specified in Code Section 45(a)(1) (as in effect on the
Execution Date) is changed to a different amount (whether 

 

12

 

such amount is higher or
lower), (2) the tax credit period specified in Code Section 45(a)(2)(A)(ii) (as
in effect on the Execution Date) is changed to a period of a different duration
(e.g., 10 years is changed to 5 years), (3) the inflation adjustment
specified in Code Section 45(b)(2) (as in effect on the Execution
Date) is eliminated or changed to a different inflation adjustment, (4) the
total amount of PTCs is capped to a percentage of the eligible basis of the
qualified facility, or (5) any other change in Code Section 45 (as in
effect on the Execution Date) (or any successor provision if Code Section 45
is redesignated) that extends or renews the availability of PTCs for a wind
facility originally placed in service after December 31, 2008, that is not
a PTC Extension, that is quantifiable and that can be incorporated in the Base
Case Model in order to compute the Cash Recoupment Amount and the Modified Cash
Flip Trigger Date (as such terms are defined in Annex 2); provided,
however, for the avoidance of doubt, with respect to clauses (1) through (5) of
this definition, (i) such amendment, renewal, modification or change makes
no other changes to Code Section 45 that will have an impact on the
availability of PTCs to the Class A Equity Investors (or any successor
provision if Code Section 45 is redesignated) and (ii) the amount and
timing of PTCs under such amendment, renewal, modification or change can be
determined by making no other assumptions other than with respect to the “GDP
implicit price deflator” (within the meaning of Code Section 45(e)(2)(B) as
in effect on the Execution Date).

 

“MW” means
megawatt.

 

“Noble 2007 Holdco”
has the meaning set forth in the Recitals hereto.

 

“Noble Altona”
means Noble Altona Windpark, LLC, a Delaware limited liability company.

 

“Noble Altona EPC Contract”
means that certain Engineering, Procurement and Construction Agreement, dated
as of the date hereof, between Noble Altona and the EPC Contractor.

 

“Noble Altona
Interconnection Agreement” means that certain Interconnection
Agreement  among Noble Altona, NYISO and NYPA.

 

“Noble Altona O&M
Agreement” means that certain Operations and Maintenance Agreement
for the Noble Altona Wind Farm, dated as of the date hereof, by and between
Noble Altona and the O&M Contractor.

 

“Noble Altona Project
Administration Agreement” means that certain Management Services
Agreement, dated as of the date hereof, between Noble Altona and the
Administrator.

 

“Noble Altona Wind Farm”
means the wind-power electric energy generation facility owned by Noble Altona
and located in the Town of Altona, Clinton County, New York and having up to
sixty-five (65) Wind Turbines with a total nominal capacity of up to 97.5 MW,
and all related interconnection facilities and all other rights and assets necessary
for the ownership and operation thereof and sale of power therefrom.

 

13

 

“Noble Altona Wind Farm
Site” means the real property described in Annex 8-A hereto.

 

“Noble Chateaugay”
means Noble Chateaugay Windpark, LLC, a Delaware limited liability company.

 

“Noble Chateaugay EPC
Contract” means that certain Engineering, Procurement and
Construction Agreement, dated as of  the
date hereof, between Noble Chateaugay and the EPC Contractor.

 

“Noble Chateaugay
Interconnection Agreement” means that certain Interconnection
Agreement among Noble Chateaugay, NYISO and NYPA.

 

“Noble Chateaugay O&M
Agreement” means that certain Operations and Maintenance Agreement
for the Noble Chateaugay Wind Farm, dated as of the date hereof, by and between
Noble Chateaugay and the O&M Contractor.

 

“Noble Chateaugay Project
Administration Agreement” means that certain Management Services
Agreement, dated as of the date hereof, between Noble Chateaugay and the
Administrator.

 

“Noble Chateaugay Wind Farm”
means the wind-power electric energy generation facility owned by Noble
Chateaugay and located in the Town of Chateaugay, Franklin County, New York and
in the Town of Clinton, Clinton County, New York, having up to seventy-one (71)
Wind Turbines with a total nominal capacity of up to 106.5 MW, and all related
interconnection facilities and all other rights and assets necessary for the
ownership and operation thereof and sale of power therefrom.

 

“Noble Chateaugay Wind Farm
Site” means the real property described in Annex 8-B hereto.

 

“Noble Guaranty”
means the guaranty of Guarantor in favor of the Class A Equity Investors, dated as of the date hereof.

 

“Noble Holdco”
means Noble Environmental Power 2008 Hold Co. Prime, LLC, a Delaware limited
liability company.

 

“Noble Indemnified Party”
has the meaning set forth in Section 6.02(b).

 

“Noble Indemnifying Party”
has the meaning set forth in Section 6.02(a).

 

“Noble Wethersfield”
means Noble Wethersfield Windpark, LLC, a Delaware limited liability company.

 

“Noble Wethersfield EPC
Contract” means that certain Engineering, Procurement and
Construction Agreement, dated as of the date hereof, between Noble Wethersfield
and the EPC Contractor.

 

14

 

“Noble Wethersfield
Interconnection Agreement” means that certain Interconnection
Agreement  among Noble Wethersfield, NYISO and
NYPA.

 

“Noble Wethersfield O&M
Agreement” means that certain Operations and Maintenance Agreement
for the Noble Wethersfield Wind Farm, dated as of the date hereof, by and
between Noble Wethersfield and the O&M Contractor.

 

“Noble Wethersfield Project
Administration Agreement” means that certain Management Services
Agreement, dated as of the date hereof, between Noble Wethersfield and the
Administrator.

 

“Noble Wethersfield Wind
Farm” means the wind-power electric energy generation facility owned
by Noble Wethersfield and located in the Towns of Wethersfield, Orangeville and
Eagle, Wyoming County, New York and having up to eighty-four (84) Wind Turbines
with a total nominal capacity of up to 126 MW, and all related interconnection
facilities and all other rights and assets necessary for the ownership and
operation thereof and sale of power therefrom.

 

“Noble Wethersfield Wind
Farm Site” means the real property described in Annex 8-C
hereto.

 

“NYISO” means
the New York Independent System Operator, Inc.

 

“NYPA” means the
New York Power Authority.

 

“NYPSC” means
the New York Public Service Commission.

 

“NYSEG” means
the New York State Electric & Gas Corporation.

 

“O&M Contractor”
means Noble Wind Operations, LLC, a Delaware limited liability company.

 

“O&M Contracts”
means the Noble Altona O&M Agreement, the Noble Chateaugay O&M
Agreement, and the Noble Wethersfield O&M Agreement; and each of them is an
“O&M Contract.”

 

“Original Limited Liability
Company Agreement” means the original Limited Liability Company
Agreement of the Company, dated as of June 6, 2008, with the Class B
Equity Investor as the sole member.

 

“Party” means
each of the parties to this Agreement.

 

“Permitted Encumbrances”
means (a) Encumbrances for inchoate mechanics’ and materialmen’s liens for
construction in progress and workmen’s, repairmen’s, warehousemen’s and
carriers’ liens arising in the ordinary course of business for amounts (in all
cases that, individually or in the aggregate, are not material) not yet due or
that are being contested in good faith by appropriate proceedings, (b) Encumbrances
for Taxes not yet payable or that are being contested in good faith by
appropriate proceedings, (c) the Encumbrances 

 

15

 

securing the Debt
Financing and/or the Hedge Agreement, (d) Encumbrances created by or
pursuant to this Agreement, any Principal Project Documents or the IDA
Documents, (e) Encumbrances incurred in the ordinary course of business in
connection with worker’s compensation, unemployment insurance, social security
and other governmental rules and that do not in the aggregate materially
impair the use of the property or assets encumbered thereby or the value of
such property or assets for the purposes of such business, (f) Encumbrances
arising out of judgments or awards so long as an appeal or proceeding for
review is being contested in good faith by appropriate proceedings and for the
payment of which cash reserves, bonds or other security acceptable to
Administrative Agent, in its reasonable discretion, have been provided or are
fully covered by insurance, (g) deposits or pledges to secure mandatory
statutory obligations or performance of bids, tenders, contracts (other than
for the repayment of borrowed money) or leases, or for purposes of like general
nature in the ordinary course of its business, (h) zoning, entitlement,
conservation restrictions and other land use and environmental regulations by
Governmental Authorities that do not materially interfere with the development,
construction, operation and maintenance of the Wind Farms, (i) liens and
security interests to be subordinated to the Financing Agreement, but only to
the extent such liens and security interest are released no later than the
Initial Equity Capital Contribution Date, (j) all Encumbrances that appear
as exceptions on the Lender’s Title Policy, (k) any other Encumbrance
approved by the Company and the Equity Investors acting together in their
reasonable discretion, (l) any Encumbrance that is an exception to the
Proforma Owner’s Policy delivered pursuant to Section 5.01(i), (m) Encumbrances
for purchase money obligations incurred in the ordinary course of business, (n) defects,
easements, rights-of-way, restrictions, and other similar Encumbrances incurred
in the ordinary course of business and Encumbrances, licenses, restrictions on
the use of property or imperfections in title, in each case that do not
materially interfere with the development, construction, operation and
maintenance of the Wind Farms, and that, in the aggregate, would not reasonably
be expected to result in a Material Adverse Effect, (o) any other
Encumbrances not in excess of five million dollars ($5,000,000) in the
aggregate, and (p) any other Encumbrance that is a “Permitted Lien” under
the Financing Agreement.

 

“Person” means
any individual, partnership, joint venture, company, corporation, limited
liability company, limited duration company, limited life company, association,
trust or other entity or organization, including a Governmental Authority.

 

“Policy Limit”
means $ 142,370,699.

 

“Principal Project
Documents” means, as of any date, the Real Property Documents and
the Major Project Contracts.

 

“Proforma Owner’s Policy”
means the Proforma Owner’s Policy in the form attached hereto as Annex 13.

 

“Project Administration
Agreements” means the Noble Altona Project Administration Agreement,
the Noble Chateaugay Project Administration Agreement, and the Noble
Wethersfield Project Administration Agreement; and each of them is a “Project Administration Agreement.”

 

16

 

“Project Companies”
means Noble Altona, Noble Chateaugay, and Noble Wethersfield; and each of them
is a “Project Company.”

 

“PTC” means a
renewable electricity production credit within the meaning of Code Section 45
or any successor to such section.

 

“PTC Extension”
means an amendment, renewal, modification or change to Code Section 45
that (a) is enacted before January 1, 2010, (b) changes the date
specified in Code Section 45(a)(1) (as in effect on the Execution
Date) before which a facility using wind to produce electricity must be
originally placed in service in order to constitute a “qualified facility”
(within the meaning of Code Sections 45(d)(1) and 45(a)(2)(A)(ii) (as
in effect on the Execution Date)), from January 1, 2009, to January 1,
2010, or some later date and (c) allows PTCs beginning on the date such
wind facility is originally placed in service (rather than the effective date
of such amendment, modification or change, if such effective date is later);
provided, such amendment, modification or change makes no other changes that
would adversely affect (as determined in the reasonable discretion of the
Initial Class A Equity Investor and the Class B Equity Investor) the
availability or amount of PTCs, such that PTCs will be allowed with respect to
a wind facility placed in service after December 31, 2008, and before January 1,
2010, on the same terms (including, for example, the tax credit rate specified
in Code Section 45(a)(1) (as in effect on the Execution Date), the
tax credit period specified in Code Section 45(a)(2)(A)(ii) (as in
effect on the Execution Date), and the inflation adjustment specified in Code Section 45(b)(2) (as
in effect on the Execution Date)) as under Code Section 45 (as in effect
on the Execution Date) for wind turbines placed in service before January 1,
2009.

 

“PUHCA” means the
Public Utility Holding Company Act of 2005, and the regulations thereunder.

 

“Punch List” for
each Wind Farm has the meaning set forth in the applicable EPC Contract.

 

“QIB” mean a
“Qualified Institutional Buyer” as defined in Rule 144A under the Securities
Act.

 

“Real Property Documents”
means (a) as of the Execution Date, the documents listed in Annex 3-A,
and (b) as of each Equity Capital Contribution Date, the documents listed
in Annex 3-A and Annex 3-B.

 

“Related Party”
means, at any time during the PTC Period (as defined in Annex 2), any
Person (a) then purchasing electricity generated by any of the Wind Farms
or (b) related (within the meaning set forth in Code Section 45(e)(4) or
any successor to such Section) to any Person then purchasing electricity
generated by any of the Wind Farms; provided that any Person (or Person related
to such Person) whose sole purchases of electricity generated by any of the
Wind Farms are retail purchases from a Person other than the Company or any
Project Company shall not be a “Related Party.”

 

“Renewable Energy
Certificates” means Renewable Energy Certificates issued by the New
York State Energy Research and Development Authority as mandated by the New
York State 2004 Renewable Portfolio Standard.

 

17

 

“Reports” means
the Environmental Report, the Wind Energy and Resource Assessment Report, the
Independent Engineer Report, and the Insurance Report.

 

“Restricted Pricing Assumptions” means those items set forth
in Annex 7-C.

 

“SCADA” means supervisory control and data acquisition, as
that term is applied to both equipment and operational practices under Appendix
G to each Interconnection Agreement, and as referenced in the tariff of NYISO
and that certain Order of FERC in Docket No. ER06-506 (March 17,
2006).

 

“Second Equity Capital
Contribution” means, with respect to an Equity Investor, a capital
contribution made by such Equity Investor on the Second Equity Capital
Contribution Date pursuant to Section 2.01.

 

“Second Equity Capital
Contribution Adjustments” has the meaning set forth in Section 2.01.

 

“Second Equity Capital
Contribution Date” means a Business Day following the Initial Equity
Capital Contribution Date on which the satisfaction or waiver of all of the
Equity Capital Contribution Conditions Precedent with respect to the Second
Equity Capital Contribution occurs.

 

“Second Lien Collateral Documents” means the documents that
are listed in Sections L, M and N of Annex 3.

 

“Securities Act” means the Securities Act of 1933, as
amended.

 

“Senior Lender Forbearance
Agreement” means that certain Forbearance Agreement among the Class A
Equity Investors, the Administrative Agent, and the Company, dated as of the
date hereof.

 

“Site Plan”
means a site plan with respect to each Wind Farm Site (including the Border
Parcels and Interconnection Lines) prepared by the mapping department of
Guarantor and dated June 11, 2008, as amended from time to time, provided
that any material amendment thereto shall be subject to the prior written
consent of the Initial Class A Equity Investor (which consent shall not be
unreasonably withheld).

 

  “Substantial Completion”
means,  with respect to each Wind
Turbine, that (a) such Wind Turbine has been physically completed and all
components of such Wind Turbine necessary for such Wind Turbine’s regular
production and monitoring through the SCADA of electricity have been installed,
except “Punch List” items that do not interfere with safe and proper operation
and regular production of electricity, (b) such Wind Turbine has
successfully achieved “Mechanical Completion” as defined in the applicable EPC
Contract, and the EPC Contractor has issued, for such Wind Turbine, the
“Mechanical Completion Certificate” as set forth in the applicable EPC Contract,
(c) the EPC Contractor has issued a “Certificate for Readiness of Testing”
(as defined in the applicable EPC Contract) for such Wind Turbine, (d) such
Wind Turbine has successfully passed the applicable testing requirements
described in the applicable EPC Contract, has been synchronized to the grid,
and is ready to produce energy for 

 

18

 

sale in commercial
quantities on a regular and continuous basis and in a safe and lawful manner
and more specifically as per the applicable Turbine Supply Agreement, the
“Commercial Operation Certificate” has been issued, (e) interconnection
agreements are validly in force so as to permit such Wind Turbine (when
combined with each other Wind Turbine that has achieved Substantial Completion)
to deliver all energy from such Wind Turbine to the “point of interconnection”
specified in the applicable Interconnection Agreement, and such that the
“In-Service Date” under each applicable Interconnection Agreement has occurred,
(f) such Wind Turbine has successfully achieved “Substantial Completion”
(as defined in the applicable EPC Contract), the EPC Contractor has issued for
such Wind Turbine the “Substantial Completion Certificate” (as defined in the
applicable EPC Contract), and (g) the Independent Engineer has issued a
certificate as to Substantial Completion, substantially in the form attached
hereto as Annex 25.

 

  ***

 

“Tax” means (a) any
federal, state, local or foreign taxes, and other similar assessments, charges,
or fees imposed by a Governmental Authority (whether imposed directly or
through withholding) including, but not limited to, net income, gross income,
gross receipts, gains, transfer, windfall profit, severance, property,
production, value-added, sales, use, excise, franchise, net worth, employment,
payroll, Social Security, withholding and license taxes together with any
interest or penalty, addition to tax, or additional amounts imposed with
respect thereto; and (b) any liability in respect of amounts described in
clause (a) payable by reason of being a member of an affiliated,
consolidated, combined or unitary group, or a successor or transferee, contract
or otherwise.

 

“Tax Exempt Person”
means each of (a) the United States, any state or political subdivision
thereof, any possession of the United States, or any agency or instrumentality
of any of the foregoing, (b) any organization which is exempt from tax
imposed by the Code, (c) any Person who is not a “United States person”
within the meaning of Code Section 7701(a)(30), and (d) any Indian
tribal government described in Code Section 7701(a)(4).

 

“Tax  Return” means any return, report, form, or similar statement
(including all schedules, exhibits and attachments thereto, and all amendments
thereof) filed or required to be filed with respect to any Taxes, including any
information return, claim for refund, amended return, or declaration of
estimated Taxes.

 

“Term Loans” means the fifteen (15) year term loans into which
certain amounts outstanding under the Debt Financing Documents have been
converted on the Initial Equity Capital Contribution Date.

 

“Third Party Claim”
has the meaning set forth in Section 6.02(k).

 

“Threshold” has the meaning set forth in Section 6.02(g).

 

“Title Company” means Stewart Title Guaranty Company.

 

“Title Policy”
means a fully paid policy or policies of title insurance in favor of all Class A
Equity Investors, which have been approved by the Equity Investors in their 

 

19

 

reasonable discretion,
dated as of the Initial Equity Capital Contribution Date and substantially in
the form of the Proforma Owner’s Policy, but subject to any additional
Permitted Encumbrances which have arisen from the Execution Date to the Initial
Equity Capital Contribution Date, which policy shall (a) be in the
aggregate amount of no less than the Policy Limit, subject to any change in the
Policy Limit required by any change in the State of New York insurance
regulations prior to the Initial Equity Capital Contribution Date, and (b) provide
title insurance coverage for each Wind Farm Site that has not been transferred
to NYPA or NYSEG, as appropriate and each Interconnection Line.

 

“Total Equity Capital
Contribution” means, with respect to each Class A Equity
Investor, the sum of the Initial Equity Capital Contribution of such Class A
Equity Investor and any Second Equity Capital Contribution of such Class A
Equity Investor.

 

“Transaction”
has the meaning set forth in Section 6.12(b).

 

“Transaction Expenses”
means (a) the cost of the Title Policy, any filing and recording fees,
escrow or closing fees and transfer and mortgage taxes; (b) the reasonable
legal fees, expenses and disbursements of the Administrative Agent, the
Lenders, the Hedge Provider, the Company, the Project Companies, the
Administrator,  and Noble Holdco incurred in
connection with this Agreement; (c) other reasonable, documented out of
pocket expenses of the Company, the Guarantor, the Project Companies, Noble
Holdco, and, if required, counterparties to any Principal Project Document
incurred in connection with this Agreement and the transactions contemplated
hereby; (d) the reasonable fees and expenses of the Class A Engineer,
the Independent Engineer, the Environmental Consultant, the Market Consultant,
the Insurance Consultant and the Independent Wind Engineer; and (e) the reasonable
fees (including legal fees), out-of-pocket costs and expenses and disbursements
incurred by the Class A Equity Investors in connection with the
Transaction.  A good faith estimate
of the amounts of, and the Persons entitled to payment of, such Transaction
Expenses (other than fees and expenses of counsel to the Class A Equity
Investors) is set forth in Annex 9 hereto.

 

“Transfer” has
the meaning set forth in the Recitals hereto.

 

“Treasury Regulations”
means the regulations promulgated by the U.S. Department of Treasury.

 

“TSA Contractor”
means General Electric Company, a New York corporation.

 

“Turbine Financing”
has the meaning set forth in the Recitals hereto.

 

“Turbine Lenders”
has the meaning set forth in the Recitals hereto.

 

“Turbine Supplier”
means General Electric Company, a New York corporation, and its successors and
assigns under the Turbine Supply Agreements.

 

“Turbine Supply Agreements”
means, collectively or individually, depending on the context, that certain (a)(i) Master Contract for
the Sale of Power Generation Equipment and Related Services, dated as of February 15,
2006, as amended by the First Amendment, dated as of August 24, 2006, by
and between Noble Environmental Power 2006 Hold Co, LLC (“NEP 

 

20

 

2006
Hold Co”) and the Turbine Supplier, and (ii) Purchase Order No. 2
with respect to the Noble Altona Wind Farm, dated as of February 15, 2006,
executed by and between NEP 2006 Hold Co and the Turbine Supplier, as assigned
to Noble Altona pursuant to that certain Turbine Assignment Agreement, dated as
of June 30, 2008, among NEP 2006 Hold Co, Noble Altona and the Turbine
Supplier, (b)(i) Master Contract for the Sale of Power Generation
Equipment and Related Services, dated as of October 17, 2006, by and
between Noble Environmental Power 2007 Equipment Co, LLC (“NEP 2007 Equipment
Co”) and the Turbine Supplier, and (ii) Purchase Order No. 2,
Purchase Order No. 3 and Purchase Order No. 4, each dated as of May 2,
2007, with respect to Noble Chateaugay Wind Farm and Noble Wethersfield Wind
Farm, in each case executed by and between NEP 2007 Equipment Co and the
Turbine Supplier, as assigned to Noble Chateaugay and Noble Wethersfield
pursuant to that certain Turbine Assignment Agreement, dated as of June 30,
2008, among NEP 2007 Equipment Co, Noble Chateaugay, Noble Wethersfield and the
Turbine Supplier, and (c)(i) Master Contract for the Sale of Power
Generation Equipment and Related Services, dated as of October 17, 2006,
by and between Noble Environmental Power 2008 Equipment Co, LLC (“NEP 2008
Equipment Co”) and the Turbine Supplier, and (ii) Purchase Order No. 3
with respect to Noble Wethersfield Wind Farm, dated as of October 17,
2007, executed by and between NEP 2008 Equipment Co and the Turbine Supplier,
as assigned to Noble Wethersfield pursuant to that certain Turbine Assignment
Agreement, dated as of June 30, 2008, among NEP 2008 Equipment Co, Noble
Wethersfield and the Turbine Supplier.

 

“Wind Energy and Resource
Assessment Report” means a report of the Independent Wind Engineer
as to the independent wind energy and resource assessment conducted by the
Independent Wind Engineer, which for clarity shall be conducted by the
Independent Wind Engineer using meteorological data for the Wind Farms provided
by Noble Holdco.

 

“Wind Farms”
means the Noble Altona Wind Farm, the Noble Chateaugay Wind Farm, and the Noble
Wethersfield Wind Farm; and each of them is a “Wind Farm.”

 

“Wind Farm Sites”
means the Noble Altona Wind Farm Site, the Noble Chateaugay Wind Farm Site, and
the Noble Wethersfield Wind Farm Site; and each of them is a “Wind Farm Site.”

 

“Wind Turbines”
means the two hundred twenty (220) General Electric 1.5 MW SLE wind turbine
generators contemplated to be sold to the Company pursuant to the Turbine
Supply Agreements and to be used in the construction of the Wind Farms.

 

1.02.               Rules of Interpretation.  In this Agreement, unless the context
requires otherwise:

 

(a)           the
gender (or lack of gender) of all words used in this Agreement includes the
masculine, feminine, and neuter;

 

(b)           words
used or defined in the singular include the plural and vice versa;

 

(c)           references to Articles and Sections
refer to Articles and Sections of this Agreement;

 

21

 

(d)           references to Annexes refer to the
Annexes attached to this Agreement, each of which is made a part hereof for all
purposes;

 

(e)           references to laws refer to such laws
as they may be amended from time to time, and references to particular
provisions of a law include any corresponding provisions of any succeeding law;

 

(f)            terms defined in this Agreement are
used throughout this Agreement and in any Annexes hereto as so defined;

 

(g)           references to any agreement, contract
or document shall mean such agreement, contract or document as the same may be
amended, supplemented or otherwise modified from time to time in accordance
with this Agreement (if applicable);

 

(h)           the words “herein,” “hereof” and
“hereunder” shall refer to this Agreement as a whole and not to any particular
section or subsection of this Agreement;

 

(i)            the words “include,” “includes” or
“including” shall mean “including, but not limited to”;

 

(j)            references
to money refer to legal currency of the United States of America;

 

(k)           where a
word or phrase is specifically defined, other grammatical forms of such word or
phrase have corresponding meanings;

 

(l)            references
to any Person include such Person’s successors and permitted assigns, unless
otherwise specifically provided herein; and

 

(m)          with
respect to the definition of Change of Law, if the Initial Class A Equity
Investor and the Class B Equity Investor are unable to agree on (i) whether
a Change of Law has occurred and (ii) the impact to the Class A
Equity Investors of any such Change of Law, the Initial Class A Equity
Investor and the Class B Equity Investor shall jointly select tax counsel
to render a tax opinion as to the disputed issue(s), which tax opinion (A) must
be reasonably satisfactory to the Initial Class A Equity Investor and the Class B
Equity Investor and (B) shall be determinative with respect to the items
described in clauses (i) and (ii) of this Section 1.02(m).

 

ARTICLE 2

EQUITY CAPITAL CONTRIBUTION

 

2.01.               Membership Interest Purchase and Equity Capital Contribution.

 

(a)           Subject to fulfillment or waiver of
the conditions set forth in Section 5.02, on the Initial Equity
Capital Contribution Date, (i) the Company shall, and Noble Holdco shall
cause the Company to, sell, issue, assign, transfer and convey the Class A
Units to each Class A Equity Investor, as set forth in Annex 1
hereto, (ii) each Class A Equity Investor shall pay in cash to the
Company, in return for the sale and issuance to it of the Class A Units as
set forth in 

 

22

 

Annex 1 hereto, its Equity
Capital Contribution, determined pursuant to Section 2.01, and (iii) the
Class B Equity Investor shall exchange its membership interests in the
Company as of the Initial Equity Capital Contribution Date in return for the
issuance to it of the Class B Units as set forth in Annex 1 hereto,
in each case as also set forth in Section 4.01 of the LLC Agreement.

 

(b)           On the Initial Equity Capital Contribution
Date, the Initial Equity Capital Contribution of each Class A Equity
Investor shall be determined by running Part 1 of the Base Case Model to
maintain, as to such Class A Equity Investor, the After-Tax Payout on such
Class A Equity Investor’s investment in Class A Units based on the
Base Case Model, as adjusted to reflect changes to the Assumptions (other than (A) the
Restricted Pricing Assumptions which shall be changed only within the range set
forth in Annex 7-C, and (B) the Fixed Pricing Assumptions) since
the Execution Date arising from, without duplication, (i) the update,
bring-down or supplement, as the case may be, referred to in Section 5.02(l),
of or to the Independent Engineer Report, (ii) changes in fact from the
corresponding assumption (other than (A) the Restricted Pricing
Assumptions which shall be changed only within the range set forth in Annex
7-C, and (B) the Fixed Pricing Assumptions) or input reflected in the
Base Case Model on the Execution Date including any Change of Law, (iii) any
amendment, modification or supplement to the Principal Project Documents since
the Execution Date, and (iv) any failure of Noble Holdco, the Company or
any Project Company to perform its obligations under this Agreement or any of
the other Principal Project Documents to which it is a party, and if such
failure would reasonably be expected to result in the After-Tax Payout of the Class A
Equity Investors not being achieved after taking into account the effect of
such failure, any change to the Assumptions (other than (A) the Restricted
Pricing Assumptions which shall be changed only within the range set forth in Annex
7-C, and (B) the Fixed Pricing Assumptions) (such adjustments,
collectively, the “Initial Equity Capital
Contribution Adjustments”); provided that any such Initial Equity
Capital Contribution Adjustments shall not in any event cause the Initial
Equity Capital Contribution of any Class A Equity Investor to exceed the Class A
Capital Commitment set forth in Annex 1 with respect to such Class A
Equity Investor.  On the Initial Equity
Capital Contribution Date, each Class A Equity Investor shall pay its
Initial Equity Capital Contribution in immediately available funds as provided
in Section 2.01.

 

(c)           If
all of the Wind Turbines have not been included in the funding for the Initial
Equity Capital Contribution, any remaining Wind Turbines meeting the conditions
set forth in Section 5.02 must be funded in the Second Equity Capital
Contribution.  On the Second Equity
Capital Contribution Date, the Second Equity Capital Contribution of each Class A
Equity Investor shall be determined by running Part 2 of the Base Case
Model to maintain, as to such Class A Equity Investor, the After-Tax
Payout on such Class A Equity Investor’s investment in Class A Units
based on the Base Case Model, as adjusted to reflect changes to the Assumptions
as set forth in Annex 7 associated with the Wind Turbines that are the subject
of the Second Equity Capital Contribution (such adjustments, the “Second Equity Capital Contribution Adjustments”); provided
that such Second Equity Capital Contribution, when aggregated with the Initial
Equity Capital Contribution previously made by such Class A Equity
Investor, shall not in any event cause the Total Equity Capital Contribution of
any Class A Equity Investor to exceed the Class A Capital Commitment
set forth in Annex 1 with respect to such Class A Equity Investor.  On the Second Equity
Capital Contribution Date, each Class A Equity Investor shall pay its
Second Equity Capital Contribution in immediately available funds as provided
in Section 2.01.

 

23

 

(d)           The
Company shall give prompt notice to the Equity Investors (but in no event later
than twenty (20) days prior to the Initial Equity Capital Contribution Date)
confirming any changes to the Assumptions (other than (i) the Restricted
Pricing Assumptions, which shall be changed only within the range set forth in
Annex 7-C, and (ii) the Fixed Pricing Assumptions) since the Execution
Date proposed by the Independent Engineer; provided that the Company shall have
the right to make further changes to the Assumptions as permitted by Section 2.01
(other than (i) the Restricted Pricing Assumptions, which shall be changed
only within the range set forth in Annex 7-C, and (ii) the Fixed Pricing
Assumptions) up to ten (10) days prior to the Initial Equity Capital
Contribution Date.  The Company shall
cause the Independent Engineer to provide the updates, bring downs, or
supplements, as the case may be, to the Independent Engineer Report (certified
by the Independent Engineer to be true and correct) contemplated pursuant to Section 5.02(l) not
less than twenty (20) days nor more than sixty (60) days prior to the Initial
Equity Capital Contribution Date and not less than fifteen (15) days nor more
than thirty (30) days prior to the Second Equity Capital Contribution
Date.  Such Report shall contain a
certification by the Independent Engineer (reasonably satisfactory to the Class A
Engineer) of whether, in its reasonable judgment, such Report reflects any
change to the Assumptions (other than (i) the Restricted Pricing
Assumptions, which shall be changed only within the range set forth in Annex
7-C, and (ii) the Fixed Pricing Assumptions).

 

(e)           Simultaneously
with the making of the Initial Equity Capital Contribution, (i) each
Equity Investor shall have purchased a membership interest in, and each Equity
Investor shall have made a capital contribution to, the Company, and each
Equity Investor shall be admitted or continue as a member thereof as
contemplated in the LLC Agreement, and (ii) the Capital Account (as such
term is defined in Annex 2) of each Equity Investor shall be as contemplated in
Section 4.01 of the LLC Agreement.

 

(f)            Simultaneously
with the making of the Second Equity Capital Contribution, (i) each Class A
Equity Investor shall have made an additional capital contribution to the
Company, and (ii) the Capital Account (as such term is defined in Annex 2)
of each Class A Equity Investor shall be increased as contemplated in Section 4.01
of the LLC Agreement.

 

(g)           Notwithstanding
anything to the contrary contained herein, if the Cash Recoupment Amount (as
such term is defined in Annex 2) is required to be calculated, as of the
IECCD the aggregate equity capital contributions made by the Class B
Equity Investor shall be an amount not less than $130,867,000.

 

2.02.               Use of Proceeds.

 

(a)           The
proceeds of the Equity Capital Contributions of each of the Equity Investors on
each Equity Capital Contribution Date shall be used and wired by the Company as
follows:

 

(i)                                     first,
to repay any and all outstanding Construction Loans (as defined in the Debt
Financing Documents) that are not converted into Term Loans;

 

(ii)                                  second,
the proceeds of the Equity Capital Contributions remaining, if any, shall be
deposited into the Completion Reserve Account (as defined 

 

24

 

in
the Debt Financing Documents) until an amount equal to any Transaction Expenses
that are due and payable after such Equity Capital Contribution Date and that
will not be paid with the proceeds of the Debt Financing or revenues of the
Project Companies or the Company has been deposited in the Completion Reserve
Account, which amounts and proceeds shall be further applied from time to time
solely in accordance with the Budget (as defined in Annex 2); and

 

(iii)                               third, the proceeds
of the Equity Capital Contributions remaining, if any, shall be distributed to the Class B
Equity Investor.

 

(b)           The Company may, pursuant to a letter
of direction provided by the Company to the Equity Investors, direct the Equity
Investors to pay their Equity Capital Contributions directly to the intended
recipients of the proceeds of such Equity Capital Contributions pursuant to Section 2.02(a),
in which case (i) the Equity Investors shall pay their Equity Capital
Contributions directly to such intended recipients of such proceeds pursuant to
such letter of direction and (ii) such Equity Capital Contributions shall
be deemed made to the Company and paid by the Company to such recipients.

 

ARTICLE
3

REPRESENTATIONS AND WARRANTIES OF

NOBLE HOLDCO

 

Noble Holdco hereby represents and warrants to each Class A
Equity Investor as of the Execution Date and each Equity Capital Contribution
Date (such representations and warranties on each such Equity Capital
Contribution Date to be confirmed by a certificate by an authorized signatory
of Noble Holdco), as follows; provided that any representation and warranty set
forth in this Article 3 and expressly stated to be made only as of a
specified date shall be made solely as of such date:

 

3.01.               Organization
and Good Standing; Organizational Documents.  Each of Noble Holdco, the Company and the
Project Companies is (a) a limited liability company and has not been
converted from another entity, (b) duly formed, validly existing and in
good standing under the laws of its state of formation and (c) duly
authorized to conduct business in each jurisdiction where the character of its
property or the nature of its activities makes such qualification necessary,
including the State of New York.  The Class A
Equity Investors have been provided with true and correct copies of the
certificate of formation of each of Noble Holdco, the Company and the Project
Companies, and the limited liability company agreement of each of Noble Holdco,
the Company and the Project Companies as in effect on the Execution Date and
immediately prior to the Class A Equity Investors making their Equity
Capital Contributions on the Initial Equity Capital Contribution Date.

 

3.02.               Authorization, Execution and Enforceability.

 

(a)           Each Project Company has full limited
liability company power and authority to execute and deliver each Principal
Project Document to which it is a party and to 

 

25

 

consummate the transactions contemplated
thereunder.  The execution and delivery
by each Project Company of each Principal Project Document to which it is a
party, and the consummation by each Project Company of the transactions
contemplated thereunder, have been duly authorized by all necessary limited
liability company action required on the part of each Project Company.  Each Project Company has duly executed and
delivered each Principal Project Document to which it is a party, and each
Principal Project Document to which a Project Company is a party constitutes
the valid and binding obligation of such Project Company, enforceable against
such Project Company in accordance with its terms, except as such terms may be
limited by (i) bankruptcy, insolvency or similar laws affecting creditors’
rights generally or (ii) general principles of equity, whether considered
in a proceeding in equity or at law.

 

(b)           The Company has full limited
liability company power and authority to execute and deliver this Agreement and
to consummate the transactions contemplated hereunder and to issue the Class A
Units to the Class A Equity Investors. 
The execution and delivery by the Company of this Agreement, and the
consummation by the Company of the transactions contemplated hereunder, have
been duly authorized by all necessary limited liability company action required
on the part of the Company.  This
Agreement has been duly executed and delivered by the Company, and this
Agreement constitutes the valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, except as such
terms may be limited by (i) bankruptcy, insolvency or similar laws
affecting creditors’ rights generally or (ii) general principles of
equity, whether considered in a proceeding in equity or at law.

 

(c)           Noble Holdco has full limited
liability company power and authority to execute and deliver this Agreement and
to consummate the transactions contemplated hereunder.  The execution and delivery by Noble Holdco of
this Agreement, and the consummation by Noble Holdco of the transactions
contemplated hereunder, have been duly authorized by all necessary limited
liability company action required on the part of Noble Holdco.  This Agreement has been duly executed and
delivered by Noble Holdco, and this Agreement constitutes the valid and binding
obligation of Noble Holdco, enforceable against Noble Holdco in accordance with
its terms, except as such terms may be limited by (i) bankruptcy,
insolvency or similar laws affecting creditors’ rights generally or (ii) general
principles of equity, whether considered in a proceeding in equity or at law.

 

3.03.       No Violation.  The execution, delivery and performance by (i) each
Project Company of each Principal Project Document to which it is a party, and
the consummation by each Project Company of the transactions contemplated
thereunder, (ii) the Company of this Agreement and each Principal Project
Document to which it is a party, and the consummation of the transactions
contemplated hereunder and thereunder, and (iii) Noble Holdco of this
Agreement, and the consummation of the transactions contemplated hereunder, do
not:  (A) violate or conflict with
any provision of the Charter Documents of any Project Company, the Company, or
Noble Holdco, as appropriate; (B) violate any material Applicable Law; (C) violate,
result in a breach of, constitute (with due notice or lapse of time or both) a
default under or cause any obligation, penalty, premium, or any right of
termination to arise or accrue under, any Principal Project Document to which
any Project Company, the Company, or Noble Holdco is a party, except to the
extent such violation would not reasonably be expected to 

 

26

 

result in a Material Adverse Effect; or (D) result in the creation
or imposition of any Encumbrance other than Permitted Encumbrances.

 

(a)           As of each Equity Capital
Contribution Date, the execution, delivery and performance by Noble Holdco of
the LLC Agreement, and the consummation of the transactions contemplated
thereunder, do not:  (i) violate or
conflict with any provision of the Charter Documents of the Company or Noble
Holdco, as appropriate; (ii) violate any material Applicable Law; (iii) violate,
result in a breach of, constitute (with due notice or lapse of time or both) a
default under or cause any obligation, penalty, premium, or any right of
termination to arise or accrue under, any Principal Project Document to which
any Project Company, the Company, or Noble Holdco is a party, except to the
extent such violation would not reasonably be expected to result in a Material
Adverse Effect; or (iv) result in the creation or imposition of any
Encumbrance other than Permitted Encumbrances.

 

3.04.               Ownership of Company and Project Companies.

 

(a)           As of (i) the Execution Date and
(ii) the Initial Equity Capital Contribution Date immediately prior to the
consummation of the transactions contemplated pursuant to the first sentence of
Section 2.01(a), Noble Holdco is the sole member of the Company and
there have never been any other members or owners of the Company.  Other than this Agreement, the Company Pledge
Agreement and the other Collateral Documents, and the Hedge Company Pledge
Agreement and the other Second Lien Collateral Documents, Noble Holdco is not
party to any option, warranty, purchase right or other contract or commitment
which would require Noble Holdco to sell, transfer or otherwise dispose of any
of the membership interests in the Company. 
As of the Execution Date, Noble Holdco owns all of the membership
interests in the Company, free and clear of any Encumbrances, except as may be
created by this Agreement and the Original Limited Liability Company Agreement
and except for any restrictions on sales of securities under applicable
securities laws and any Permitted Encumbrances of the types described in
clauses (b), (c) and (d) of the definition thereof.  As of the Initial Equity Capital Contribution
Date, immediately prior to the consummation of the transactions contemplated
pursuant to the first sentence of Section 2.01(a), Noble Holdco
holds of record and owns beneficially all of the membership interests in the
Company, free and clear of any Encumbrances, except as may be created by this
Agreement and the Original Limited Liability Company Agreement and except for
any restrictions on sales of securities under applicable securities laws and
any Permitted Encumbrances of the types described in clauses (b), (c) and (d) of
the definition thereof.  As of the
Initial Equity Capital Contribution Date, the Class A Units will be duly
authorized, and upon payment of the Initial Equity Capital Contributions, the Class A
Units will be validly issued and the Class A Equity Investors will have
good and valid title to the Class A Units, free and clear of all
Encumbrances other than those created or granted by the Class A Equity
Investors.

 

(b)           From and after the Transfer, the
Company is the sole member of each Project Company and, other than Noble 2007
Holdco, there have never been any other members or owners of any Project
Company.  Other than the Company Pledge
Agreement and the other Collateral Documents, the Hedge Company Pledge
Agreement and the other Second Lien Collateral Documents, and the Original
Limited Liability Company Agreement, the Company is not party to any option,
warranty, purchase right or other contract or commitment which would 

 

27

 

require the Company to sell, transfer or otherwise
dispose of any of the membership interests in any Project Company.  From and after the Transfer, the Company owns
all of the membership interests in each Project Company, free and clear of any
Encumbrances, except as may be created by this Agreement and the Original
Limited Liability Company Agreement and for any restrictions on sales of
securities under applicable securities laws and any Permitted Encumbrances of
the types described in clauses (b), (c) and (d) of the definition
thereof.  From and after the Transfer,
the Company holds of record and owns beneficially all of the membership
interests in each Project Company, free and clear of any Encumbrances, except
as may be created by this Agreement, the Charter Documents of each such Project
Company, and for any restrictions on sales of securities under applicable
securities laws, and any Permitted Encumbrances of the types described in
clauses (b), (c) and (d) of the definition thereof.

 

3.05.               Contracts.

 

(a)           As of the Execution Date, Annex
3-A, Annex 3-C and Annex 3-E collectively list each material
contract or agreement (other than Governmental Approvals) to which the Company
or any Project Company is a party or by which the Company or any Project
Company is bound.  As of the Execution
Date, each contract identified on Annex 3-A, Annex 3-C or Annex 3-E is
in full force and effect and constitutes a valid and binding obligation of the
Company or the subject Project Company, as applicable, enforceable against it
in accordance with its terms, except as such terms may be limited by (i) bankruptcy,
insolvency or similar laws affecting creditors’ rights generally or (ii) general
principles of equity, whether considered in a proceeding in equity or at
law.  As of the Execution Date, the
Equity Investors have been provided with true and correct copies of all
contracts and agreements identified on each of Annex 3-A, Annex 3-C and
Annex 3-E.

 

(b)           As of each Equity Capital
Contribution Date, Annex 3-A, Annex 3-B, Annex 3-C, Annex
3-D, Annex 3-E and Annex 3-F collectively list each material
contract or agreement (other than Governmental Approvals) to which the Company
or any Project Company is a party or by which the Company or any Project
Company is bound.  As of each Equity
Capital Contribution Date, each contract identified on Annex 3-A, Annex
3-B, Annex 3-C, Annex 3-D, Annex 3-E or Annex 3-F
is in full force and effect and constitutes a valid and binding obligation of
the Company or the subject Project Company, as applicable, enforceable against
it in accordance with its terms, except as such terms may be limited by (i) bankruptcy,
insolvency or similar laws affecting creditors’ rights generally or (ii) general
principles of equity, whether considered in a proceeding in equity or at law.  As of the Initial Equity Capital Contribution
Date, the Equity Investors have been provided with true and correct copies of
all contracts and agreements identified on each of Annex 3-A, Annex
3-B, Annex 3-C, Annex 3-D, Annex 3-E and Annex 3-F.

 

(c)           There are no material disputes or
legal proceedings pending, or, to Noble Holdco’s Knowledge, threatened, between
any Project Company, on the one hand, and any counterparty to any Principal
Project Document to which such Project Company is a party on the other hand.

 

3.06.             Default.  None of any Project Company, the Company, and
Noble Holdco, nor, to Noble Holdco’s Knowledge, any of the other parties to the
Principal Project Documents, 

 

28

 

is in default
under, nor, to Noble Holdco’s Knowledge, has any event occurred which, with
notice or the lapse of time or both, would reasonably be expected to result in
a default under, any of the Principal Project Documents, whether caused by a
Project Company or any other party to any of the Principal Project Documents
which, in any such case, would reasonably be expected to result in a Material
Adverse Effect.

 

3.07.               Governmental Approvals.

 

(a)           As of the Execution Date, Annex 4-A
contains a true and complete list of all Governmental Approvals required to be
obtained or made by each Project Company for the construction, operation, and
ownership of its Wind Farm and the sale of electric power and Renewable Energy
Certificates therefrom by such Project Company in compliance with Applicable
Law, except for those Governmental Approvals the absence of which would not
materially affect such construction, operation, ownership, or sales.

 

(b)           As of the Initial Equity Capital
Contribution Date, (i) except for the Governmental Approvals set forth in Part II
of Annex 4-A, each Project Company has obtained all Governmental
Approvals, necessary to construct, own and operate such Project Company’s Wind
Farm and to sell electric power therefrom in compliance with Applicable Law,
except for those Governmental Approvals the absence of which would not
materially affect such construction, ownership, operation, or sales; (ii) except
as described therein, each of the Governmental Approvals set forth in Part I
of Annex 4-A is validly issued, final and non-appealable, and in full
force and effect and (A) is not subject to any current legal proceeding
and (B) is not subject to any material unsatisfied condition that was
required to be satisfied on or prior to the date that this representation is
made; and (iii) each Project Company is in compliance in all material
respects with all applicable Governmental Approvals obtained to date that are
set forth in Annex 4-A.

 

(c)           As of the Execution Date, no
Governmental Approval is required to be obtained or made by Noble Holdco or the
Company for the execution, delivery and performance by Noble Holdco or the
Company of this Agreement, other than those Governmental Approvals set forth in
Annex 4-B and such others as have been obtained or made, except for
those Governmental Approvals the absence of which would not materially affect
such execution, delivery or performance.

 

(d)           As of the Initial Equity Capital
Contribution Date, (i) no Governmental Approval is required to be obtained
or made by Noble Holdco or the Company for the execution, delivery and
performance by Noble Holdco or the Company of the LLC Agreement, other than
those Governmental Approvals set forth in Annex 4-B and such others
as have been obtained or made, except for those Governmental Approvals the
absence of which would not materially affect such execution, delivery or
performance; and (ii) no Governmental Approval is required to be obtained
or made by the Company or Noble Holdco for the sale and issuance of the Class A
Units in the Company to the Class A Equity Investors or the exchange of
the membership interests held by the Class B Equity Investor for the Class B
Units in the Company, other than those Governmental Approvals set forth in Annex 4-B
and such others as have been obtained or made, except for those Governmental
Approvals the absence of which would not materially affect such sale, issuance
or exchange.

 

29

 

3.08.               Site
Plans.  As of the Execution
Date, the Site Plans for each Wind Farm Site depict the Wind Turbines and
collection lines that the Company intends to develop or cause to be developed
on the Premises and the relationship between the proposed location of the Wind
Turbines and (i) the boundaries of the parcels on which the Wind Turbines
are to be located and (ii) the location of houses on the Premises and on
land adjacent to the Premises, subject to inaccuracy (A) inherent in the
use of the aerial photography from which the Site Plans were created, and (B) resulting
from the fact that connections lines have been drawn on the Site Plans in
locations necessary to distinguish them from one another and from other
features on the Site Plans.

 

3.09.               Legal
Proceedings.  Except as described on
Annex 21, there is no action, suit, claim, investigation by a Governmental
Authority, or proceeding (including, but not limited to, any arbitration
proceeding) of any nature pending or, to the Knowledge of Noble Holdco, threatened,
and no order, writ, judgment, award, injunction, or decree is currently in
effect, against Noble Holdco, the Company, any Project Company, or any of their
directors, officers, employees, agents, or any of their Affiliates, or any
Governmental Authority, relating to (a) any Governmental Approval held by
or necessary for the Company, any Project Company, or any Wind Farm, (b) the
transactions contemplated hereunder, (c) the ability of Noble Holdco, the
Company or any Project Company to complete the transactions contemplated
hereunder, or (d) the ownership or operation of any Wind Farm, in each
case at law or in equity or before or by any Governmental Authority or arbitral
body, that would reasonably be expected to have a Material Adverse Effect.

 

3.10.               Title
to Assets; No Options.  As of each Equity
Capital Contribution Date, except as described on Annex 18 Part A,
the Company has no Assets other than membership interests in the Project
Companies.  Except as described on
Annex 18 Part B, each Project Company is the sole owner of its
respective Wind Farm.  Each Project
Company has good and valid title to all of its Assets, including good and valid
fee, easement, and/or leasehold interests in such Project Company’s Wind Farm
Site, free and clear of all Encumbrances other than Permitted
Encumbrances.  Except as set forth in
this Agreement, the Original Limited Liability Company Agreement, the Company
Pledge Agreement, the IDA Documents, the Hedge Agreement, the Hedge Company
Pledge Agreement, the ACCA, the other Collateral Documents and the LLC
Agreement, there are no outstanding options, warrants or other rights
(including conversion or preemptive rights, preferential rights to purchase,
and rights of first refusal) obligating Noble Holdco, the Company or any
Project Company to issue or sell any membership interests or securities or
obligations convertible or exchangeable for, or giving any Person any right to
acquire from it, any of its membership interests, or to transfer to any Person
any rights, interests or properties relating to the Company, any Project
Company or any Wind Farm, except as provided in the Principal Project
Documents.

 

3.11.               Financial
Statements.  The Financial Statements
of the Company delivered to the Class A Equity Investors as of the
Execution Date present fairly in all material respects the financial position
of the Company as of the date of such Financial Statements, and no material
change in the financial position of the Company has occurred after the date of
such Financial Statements.  The Financial
Statements of each Project Company delivered to the Class A Equity
Investors, as of the Initial Equity Capital Contribution Date, present fairly
in all material respects the financial position of such Project Company as of
the date of such Financial

 

30

 

Statements, and no material change in the
financial position of such Project Company has occurred after the date of such
Financial Statements.

 

3.12.               Consents
and Approvals.  All material third party
consent requirements (other than Governmental Approvals) that are a condition
to the execution, delivery and performance by any of Noble Holdco or the
Company of this Agreement and the LLC Agreement and the consummation of the
transactions contemplated hereunder and thereunder are set forth in Annex 14.

 

3.13.               Compliance
with Applicable Laws.  Each of the Company and
each Project Company is in material compliance with all Applicable Laws, and
the business and operations of the Company and each Project Company are
conducted in all material respects in compliance with all Applicable Laws.

 

3.14.               Development.  The Company has not conducted any business other than the ownership of
the membership interests in the Project Companies and the development,
construction and ownership of the Wind Farms. 
Each Project Company has not conducted any business other than the
development, construction and ownership of its Wind Farm.

 

3.15.               Insurance.  (a) As of the Execution Date, Part I of Annex 5 contains
a list of all insurance policies maintained with respect to the Company, any
Project Company and any Wind Farm during the construction phases of the Wind
Farms; and, (b) as of the Initial Equity Capital Contribution Date, Part II
of Annex 5 contains a list of all insurance policies required, pursuant to
the Project Administration Agreements and Debt Financing Documents, to be
maintained with respect to the Company, any Project Company and any Wind Farm
during the operation of such Wind Farm.

 

3.16.               Environmental Matters.

 

(a)           Except as set forth on Annex 21
and Annex 24, there is no fact, circumstance, condition or
occurrence at, on, relating to, or arising from, any Wind Farm Site that would
reasonably be expected to form the basis of any material noncompliance by any
Project Company with any Hazardous Substances Law or any Governmental Approval
under any Hazardous Substances Law, or any release of Hazardous Substances on,
to, or from any Wind Farm Site that reasonably would be expected to result in
material liability of Noble Holdco, the Company, or any Project Company under
any Hazardous Substances Law.

 

(b)           Except as set forth on Annex 21,
there is no pending or, to the Knowledge of Noble Holdco, threatened,
Environmental Claim against Noble Holdco, the Company, any Project Company, or
any contractors, lessors, grantors (under easements) or any other Persons,
relating to any Wind Farm Site that reasonably would be expected to result in
material liability of Noble Holdco, the Company, or any Project Company under
any Hazardous Substances Law.

 

3.17.               Subsidies.  As of the Initial Equity Capital Contribution Date: (i) no grants
have been provided by any Governmental Authority for use in connection with any
of the Wind Farms or with respect to which Guarantor, Noble Holdco, the
Company, any Project Company or any Wind Farm is the beneficiary; (ii) no
proceeds of any issue of State or local government obligations have been used
to provide financing for any of the Wind Farms, the interest on which

 

31

 

is exempt from tax under Code Section 103;
(iii) no subsidized energy financing has been provided (directly or
indirectly) under a federal, state, or local program provided in connection
with any of the Wind Farms; and (iv) no federal tax credit (other than
PTCs) has been obtained or allowed or is allowable with respect to any of the
Wind Farms; provided that the foregoing is not intended to be a representation
that the Company or any Project Company would not be eligible or would not
qualify for any other federal tax credits (e.g., new markets tax credits under
Code Section 45D.

 

3.18.               Information.  All of the information furnished in writing by or on behalf of Noble
Holdco, the Company, any Project Company, or any of their respective
Affiliates, to the Class A Equity Investors or any of the Class A
Equity Investors’ respective Affiliates or any of the Class A Equity
Investors’ respective consultants with respect to the Company, Guarantor, any
Project Company, or any Wind Farm, including the factual information furnished
in connection with the Base Case Model, when taken as a whole, as of the date
on which such information was furnished, was accurate (or, where appropriate,
estimated in good faith) in all material respects and not, to Noble Holdco’s
Knowledge, misleading; provided that no representation or warranty is made with
respect to (a) any opinions, projections, or legal conclusions provided by
or on behalf of Noble Holdco, the Company, the Guarantor, or the Project Companies
regarding federal income tax consequences that are not expressly covered by
representations or warranties in this Article 3 (including the Base Case
Model), (b) any other forward-looking statements provided by or on behalf
of Noble Holdco, the Company, the Guarantor, the Project Companies or their
respective Affiliates, or (c) any written material prepared by any Persons
other than Noble Holdco, the Company, the Guarantor, or any Project Company,
including consultants’ reports or other expert materials.

 

3.19.               No Subsidiaries; Non-Related Liabilities.  Except as set forth on Annex 19,
the Company does not have any subsidiary other than the Project Companies.  No Project Company has any subsidiaries.  None of Noble Holdco, the Company, or any
Project Company has any material liabilities or obligations other than those (a) reflected
(but only to the extent so reflected) or reserved against in their respective
Financial Statements, (b) that have arisen since the date of the most
recent such Financial Statements in the ordinary course of business, consistent
with the development, design, engineering, financing, construction, permitting,
completion, commissioning, insuring, ownership, operation, and maintenance of
the Wind Farms and all activities incidental thereto, or (c) that arise
under this Agreement and the other Principal Project Documents.

 

3.20.               Exempt Wholesale Generator.  On the date on which it first sells electricity and on each Equity
Capital Contribution Date, each Project Company shall be an EWG; provided that
nothing in this Agreement shall require any Project Company to obtain a FERC
order determining it to be an EWG.

 

3.21.               No Employees.  Neither the Company nor any Project Company has or has ever had any
employees nor has any responsibility for any liabilities or obligations in
connection with any “employee benefit plan” (as such term is defined in Section 3(3) of
the Employee Retirement Income Security Act of 1974, as amended).

 

32

 

3.22.               Brokers.  As of the Initial Equity Capital Contribution Date, no broker, finder,
investment banker, or other Person is entitled to any brokerage, finder’s or
other fee or commission in connection with the transactions contemplated
hereunder based upon arrangements made by Noble Holdco, the Company or any
Project Company for which the Company, any Project Company, or any Class A
Equity Investor will be responsible.

 

3.23.               Public Utility Holding Company Act.  Neither the Company nor any Project Company is subject to regulation as
a “public-utility company”, a “holding company” or a “subsidiary company” of a
“holding company” as those terms are defined in PUHCA (except with respect to Section 1265
of PUHCA, as applicable); provided that each Project Company is a “public-utility
company” solely by virtue of being an EWG, and the Company is a “holding
company” solely by virtue of its ownership interests in EWGs.

 

3.24.               Completion.  As of each Equity Capital Contribution Date,
Substantial Completion has occurred with respect to each of the Wind Turbines
for which Equity Capital Contributions will be made in accordance with Section 5.02(a) as
of such Equity Capital Contribution Date.

 

3.25.               Taxes.

 

(a)           Each of the Company and the Project
Companies has timely filed (taking into account applicable filing extensions)
with the appropriate Government Authority, all Tax Returns required to be filed
with the IRS, the State of Delaware, the State of New York, and any other
Governmental Authority, and all such Tax Returns were correct and complete in
all material respects.  Each of the
Company and the Project Companies has paid, or made adequate provisions for the
payment of, all Taxes shown as due on such Tax Returns.

 

(b)           Neither the Company’s nor any Project
Company’s Tax Returns have been audited or examined by any Governmental
Authority.  There are no ongoing or
pending or, to the Knowledge of Noble Holdco, threatened, audits, examinations,
claims, or assessments against the Company or any Project Company in respect of
Taxes.  No adjustments to the Tax
liability of the Company or any Project Company have been proposed in writing
by any Governmental Authority in connection with any Taxes or any Tax Return of
the Company or any Project Company that are pending or otherwise unsettled.

 

(c)           Neither the Company nor any Project
Company has executed or granted any waiver of or agreed to any extension with
respect to any statute of limitations on the assessment or collection of any
Tax or with respect to any Tax Return.

 

(d)           Neither the Company nor any Project
Company is a party to any Tax sharing arrangement or similar arrangement or
agreement regarding Taxes.

 

(e)           As of the Initial Equity Capital
Contribution Date, each of the Company and the Project Companies has been a
disregarded entity for federal and state income Tax purposes since its
formation.  Neither the Company nor any
Project Company has elected to be treated as an association taxable as a
corporation for U.S. federal income tax purposes.  Neither the Company nor any Project Company
was converted from a corporation to a limited liability company.

 

33

 

(f)            Neither the Company nor any of the
Project Companies has been a party to (i) a transaction that constitutes a
“listed transaction” for purposes of Code Section 6011 and the regulations
thereunder (or a similar provision of state law) or (ii) any transaction
that constitutes a “reportable transaction” within the meaning of Treasury
Regulation Section 1.6011-4(b) (or a similar provision of state law).

 

3.26.               Real Property.

 

(a)           Annex 3-A and Annex 3-B
collectively list each of the Real Property Documents.

 

(b)           As of the Execution Date, Noble
Holdco has, or has caused to be, delivered to, or has made available for review
by with notice to, the Class A Equity Investors true, complete, and
accurate copies of all of the Real Property Documents listed in Annex 3-A.

 

(c)           As of each Equity Capital
Contribution Date, Noble Holdco has, or has caused to be, delivered to, or has
made available for review by with notice to, the Class A Equity Investors
true, complete, and accurate copies of all of the Real Property Documents
listed in Annex 3-A and Annex 3-B.

 

(d)           As of the Initial Equity Capital
Contribution Date, all roads necessary for the construction, operation and
maintenance of the Wind Farms have either been completed or the Project
Companies possess all necessary rights-of-way therefor.  As of the Initial Equity Capital Contribution
Date, each Project Company has obtained all consents and waivers from the owner
of any easement, covenant or servitude that burdens a Wind Farm Site that are
necessary to enable each Wind Farm to be located, constructed, and operated on
its Wind Farm Site, and provide adequate ingress and egress from each Wind Farm
for the construction, operation, and maintenance of such Wind Farm and the sale
of electric power therefrom, for a period of not less than twenty (20) years.

 

(e)           The Real Property Documents represent
the entire agreement between the respective parties thereto with respect to the
interest in real property described therein and use and occupancy thereof, and
there are no other agreements or modifications with respect thereto, except as
set forth in Annex 3-A and Annex 3-B and delivered to the Class A
Equity Investors.

 

(f)            Assuming that all available options
contained therein are exercised and, as of the Execution Date except for those
Real Property Documents listed in Annex 22 and in Annex 3-B and
except for consents or waivers from the owner of any easement, covenant or
servitude that burdens a Wind Farm Site, the Real Property Documents represent
the interests in private land that are necessary to enable each Wind Farm to be
located, constructed, and operated on its Wind Farm Site, and provide adequate ingress
and egress from each Wind Farm for the construction, operation, and maintenance
of such Wind Farm and the sale of electric power therefrom, for a period of not
less than twenty (20) years.

 

3.27.               Real Property Payments.  As of each Equity Capital Contribution Date, all rents, rentals,
royalties, and other charges due and payable to the applicable counterparties
of Noble Holdco or its Affiliates pursuant to the Real Property Documents have
been properly calculated and paid in full.

 

34

 

3.28.               Condemnation.  Neither Noble Holdco, the Company nor any Project Company has received
written notice of condemnation of all or any portion of any Wind Farm and no
condemnation is pending or, to the Knowledge of Noble Holdco, threatened with
respect to any Wind Farm, or any portion thereof material to the ownership or
operation of any Wind Farm.

 

3.29.               Status of Property.  To the Knowledge of Noble Holdco, as of the Initial Equity Capital
Contribution Date, no portion of the real property comprising any Wind Farm
Site is currently enrolled in the U.S. Department of Agriculture’s Conservation
Reserve Program.  Except as provided in
the IDA Documents, no tangible property of any Project Company is leased to a
Tax Exempt Person.  Each of the Wind
Farms is located in its entirety in the United States.  No property comprising a part of any of the
Wind Farms is imported property of the kind described in Code Section 168(g)(6).

 

3.30.               Affiliate Transactions.  Except for the Principal Project Documents, as of the Initial Equity
Capital Contribution Date, each contract, arrangement or agreement relating to
the Wind Farms between or among any of the Company and the Project Companies,
on the one hand, and any of Noble Holdco, the Company, the Project Companies,
Guarantor, and Guarantor’s Affiliates, on the other hand, was entered into at
arms’ length and on customary commercial terms and conditions.

 

3.31.               Class B Investment Intent; Unregistered Securities.  The Class B Units to be held by Noble Holdco will be acquired for
investment for Noble Holdco’s own account, not with a view to the distribution
of any part thereof, and, without in any way affecting Noble Holdco’s right to
dispose of its Class B Units as permitted by the LLC Agreement, Noble
Holdco has no present intention of selling, granting any participation in, or
otherwise distributing the same.  Noble
Holdco understands that the Class B Units are characterized as “restricted
securities” under federal and state securities laws inasmuch as such securities
are being acquired in a transaction contemplated hereunder not involving a
public offering and that under such laws and applicable regulations such
securities may not be resold in the absence of an effective registration statement
covering the Class B Units or an exemption from registration under federal
and state securities laws.

 

3.32.               Class B Accredited Investor.  Noble Holdco is an “accredited investor” as defined in Rule 501(a) of
Regulation D promulgated under the Securities Act of 1933, as amended.  Noble Holdco has such knowledge and
experience in financial and business matters that it is capable of
independently evaluating the risks and merits of purchasing the Class B
Units; Noble Holdco has independently evaluated the risks and merits of
purchasing the Class B Units and has independently determined that the Class B
Units is a suitable investment for it; and Noble Holdco has sufficient
financial resources to bear the loss of its entire investment in the Class B
Units.

 

3.33.               United States Person. Noble Holdco is a
disregarded entity for U.S. federal income tax purposes.  Guarantor is the sole member of Noble
Holdco.  Guarantor is a United States
person not subject to withholding under Code Section 1446.

 

35

 

3.34.               No Other Representations.  None of Noble Holdco, the Company and any Project Company is relying on
any representations or warranties whatsoever, express, implied, at common law,
statutory or otherwise, by any Class A Investor except for the
representations or warranties made for the benefit of Noble Holdco expressly
set out in this Agreement and, when executed and delivered, the LLC Agreement
and any certificate delivered in connection with any of the foregoing.

 

3.35.               No Pre-1987 Contracts.  As of the Execution Date, neither the Company nor any Project Company
is a party to any contract originally entered into before January 1, 1987
(whether or not amended or restated after that date) to sell electricity to any
utility.

 

3.36.               No Application for Private Letter Ruling.  Neither the Company nor any Project Company (nor any Affiliate of the
Company or any Project Company) has applied to the IRS for a private letter
ruling with respect to any Project Company or any Wind Farm, including any
application for a private letter ruling that has been withdrawn.

 

3.37.               Electricity
Sales.  No Project Company (a) has
sold or agreed to effect any sale of any of the electricity generated at its
Wind Farm except at wholesale (but for electricity consumed by the Wind Farm
itself) or (b) has engaged in any activity other than those permitted of
an EWG.

 

ARTICLE
4

CLASS A EQUITY INVESTOR REPRESENTATIONS AND WARRANTIES

 

Each Class A Equity Investor hereby, severally
and not jointly, represents to Noble Holdco and the Company as of the Execution
Date and each Equity Capital Contribution Date (such representations and
warranties on each such Equity Capital Contribution Date to be confirmed by a
certificate by an authorized signatory of such Class A Equity Investor),
as follows; provided that any representation and warranty set forth in this Article 4
and expressly stated to be made only as of a specified date shall be made
solely as of such date:

 

4.01.               Organization and Good Standing.  It is duly organized, validly existing and in
good standing under the laws of its state of formation, with full power and
authority to carry on its business as such business is now conducted. Noble
Holdco has been provided with true and correct copies of the certificate of
formation of each Class A Equity Investor, and the limited liability
company agreement of each Class A Equity Investor as in effect on the
Execution Date and immediately prior to the Class A Equity Investors
making their Equity Capital Contributions on the Initial Equity Capital
Contribution Date.

 

4.02.               Authorization, Execution and Enforceability.  It has full corporate or limited liability
company power and authority to execute and deliver this Agreement and the ACCA,
to make its respective Equity Capital Contribution and to consummate the
transactions contemplated hereunder and thereunder.  The execution and delivery by it of this
Agreement and the ACCA, and the consummation by it of the transactions contemplated
hereunder and thereunder, have been duly authorized by all necessary corporate
or limited liability company action. 
This Agreement and the ACCA each has been duly executed and delivered by
it, and this Agreement and the ACCA each constitutes a valid and binding obligation,
enforceable against it

 

36

 

in accordance
with its terms except as such enforceability may be limited by (a) bankruptcy,
insolvency or similar laws affecting creditors’ rights generally or (b) general
principles of equity, whether considered in a proceeding in equity or at law.

 

4.03.               Legal Proceedings.  There is no action, suit, claim,
investigation by a Governmental Authority, or proceeding (including, but not
limited to, any arbitration proceeding) of any nature pending or, to its
Knowledge, threatened, and no order, writ, judgment, award, injunction, or
decree is currently in effect, against it, or any of its directors, officers,
employees, agents, or any of its Affiliates, or any Governmental Authority,
relating to (a) any Governmental Approval held by or necessary for it, (b) the
transactions contemplated hereunder, (c) its ability to complete the
transactions contemplated hereunder, or (d) the ownership of any Wind
Farm, in each case at law or in equity or before or by any Governmental
Authority or arbitral body, that would reasonably be expected to have a
Material Adverse Effect.

 

4.04.               No Violation.  The execution, delivery and performance by it
of this Agreement and the ACCA, and the consummation by it of the transactions
contemplated hereunder or thereunder, do not: (i) violate or conflict with
any provision of its Charter Documents; (ii) violate any material
Applicable Law (it being understood that no representation is made as to any rules or
regulations of FERC); (iii) violate in any material respect, result in a
material breach of, constitute (with due notice or lapse of time or both) a
material default, or result in an Encumbrance being created or imposed upon any
of its properties or Assets, under any material contract to which it is a party
or by which its property is bound, which material violation, material breach,
material default or Encumbrance would adversely affect its ability to perform
its obligations under this Agreement or the ACCA; (iv) impose any adverse
impact on the ability of any Project Company to comply with the Federal Power
Act as it exists as of the date hereof (including maintaining compliance with
FERC’s market-based rate authority requirements); or (v) cause any Project
Company, Noble Holdco or the Company to not be entitled to the exemptions from
regulation afforded to an EWG or a “holding company”, as such term is defined
in PUHCA, of one or more EWGs that is a “holding company” solely by virtue of
its ownership interests in one or more EWGs.

 

(b)           As of each Equity
Capital Contribution Date, the execution, delivery and performance by it of the
LLC Agreement, and the consummation by it of the transactions contemplated
thereunder, do not: (i) violate or conflict with any provision of its Charter
Documents; (ii) violate any material Applicable Law (it being understood
that no representation is made as to any rules or regulations of FERC); (iii) violate
in any material respect, result in a material breach of, constitute (with due
notice or lapse of time or both) a material default, or result in an
Encumbrance being created or imposed upon any of its properties or Assets,
under any material contract to which it is a party or by which its property is
bound, which material violation, material breach, material default or
Encumbrance would adversely affect its ability to perform its obligations under
the LLC Agreement; (iv) impose any adverse impact on the ability of any
Project Company to comply with the Federal Power Act as it exists as of the
date hereof (including maintaining compliance with FERC’s market-based rate
authority requirements); or (v) cause any Project Company, Noble Holdco or
the Company to not be entitled to the exemptions from regulation afforded to an
EWG or a “holding company”, as such term is defined in PUHCA, of one or more
EWGs that is a “holding company” solely by virtue of its ownership interests in
one or more EWGs.

 

37

 

4.05.               Governmental Approvals.  As of the Execution Date, no material
Governmental Approval or filing with any Governmental Authority is required to
be obtained or made by such Class A Equity Investor for the execution,
delivery and performance by such Class A Equity Investor of this Agreement
or the ACCA, or the consummation of the transactions contemplated hereby or
thereby, other than any such Governmental Approvals that have been obtained or
made.

 

(b)           As of the Initial Equity Capital
Contribution Date, (i) no material Governmental Approval or filing with
any Governmental Authority is required to be obtained or made by such Class A
Equity Investor for the execution, delivery and performance by such Class A
Equity Investor of the LLC Agreement, or the consummation of the transactions
contemplated thereby, other than any such Governmental Approvals that have been
obtained or made.

 

4.06.               Class A Investment Intent; Unregistered Securities.  The Class A Units to be held by it will
be acquired for investment for its own account, except as stated in the proviso
to this sentence, not with a view to the distribution of any part thereof, and,
without in any way affecting its right to dispose of its Class A Units as
permitted by the LLC Agreement, it has no present intention of selling,
granting any participation in, or otherwise distributing the same; provided,
however, that such Class A Equity Investor may have an agreement or
present intention to assign all or a portion of its rights and obligations
under this Agreement to one or more Approved Investors in accordance with the
provisions of Section 6.05(a)(iv). 
It understands that the Class A Units are characterized as a
“restricted security” under federal and state securities laws inasmuch as such
securities are being acquired in a transaction contemplated hereunder not involving
a public offering and that under such laws and applicable regulations such
securities may not be resold in the absence of an effective registration
statement covering the Class A Units or an exemption from registration
under federal and state securities laws.

 

4.07.               Accredited Investor.  It is an “Institutional Accredited
Investor”.  It has such knowledge and
experience in financial and business matters that it is capable of
independently evaluating the risks and merits of purchasing the Class A Units;
it has independently evaluated the risks and merits of purchasing the Class A
Units and has independently determined that the Class A Units is a
suitable investment for it; and it has sufficient financial resources to bear
the loss of its entire investment in the Class A Units.

 

4.08.               United States Person.  The Initial Class A Equity Investor is a
disregarded entity with respect to which its sole member is a United States
person not subject to withholding under Code Section 1446.   Each other Class A Equity Investor is
either (i) a United States person not subject to withholding under Code Section 1446
or (ii) a disregarded entity with respect to which its sole member is a
United States person not subject to withholding under Code Section 1446.

 

4.09.               No Other Representations.  It is not relying on any representations or
warranties whatsoever, express, implied, at common law, statutory or otherwise,
by the Company, any Project Company, Noble Holdco, or any Guarantor except for
the representations or warranties made for the benefit of each such Equity
Investor expressly set out in this Agreement, the ACCA and the *** (as
applicable) and, when executed and delivered, the LLC Agreement and any
certificate delivered in connection with any of the foregoing.

 

38

 

4.10.               Brokers.  As of the Initial Equity Capital Contribution
Date, no broker, finder, investment banker, or other Person is entitled to any
brokerage, finder’s or other fee or commission in connection with the
transactions contemplated hereunder, based upon arrangements made by or on
behalf of it, for which Noble Holdco, the Company, or any Project Company will
be responsible.

 

ARTICLE
5

CONDITIONS PRECEDENT

 

5.01.               Commitment Conditions Precedent.  The effectiveness of this Agreement is
subject to the satisfaction or waiver by the Initial Class A Equity Investor and Noble
Holdco of each of the conditions set forth in this Section 5.01
(except that any of the following conditions that are made for the benefit of
the Class B Equity Investor may be determined to be satisfied or waived
only by the Class B Equity Investor and any of the following conditions
that are made for the benefit of the Class A Equity Investors may be
determined to be satisfied or waived only by the Initial Class A Equity Investor).  The execution of this Agreement by each
Equity Investor, and the delivery of such executed copy to each other Equity
Investor, evidence the satisfaction or waiver (by each Equity Investor) of each
such condition:

 

(a)           (i) each of the Equity Investors
has received fully executed, complete, and correct copies of each of the
Principal Project Documents (including the Hedge Agreement and the Hedge
Provider Forbearance Agreement) that has been executed on or prior to the
Execution Date, and (ii) no event has occurred and is continuing that
constitutes a default by any Project Company or any other party under any
executed Principal Project Document or which with notice or the lapse of time
or both, would constitute such a default, which default would reasonably be
expected to result in a Material Adverse Effect;

 

(b)           those executed Principal Project
Documents relevant to a specific Project Company but not executed in the name
of such Project Company have been assigned and transferred to the relevant
Project Company in a manner reasonably satisfactory to the Equity Investors;

 

(c)           each of the Equity Investors has
received fully executed copies of this Agreement, to which is attached each
Annex referenced herein;

 

(d)           each of the Equity Investors has
received copies of the Reports, each of which is in form and substance
reasonably satisfactory to it;

 

(e)           each Class A Equity Investor has
received (i) a FERC regulatory legal opinion of counsel to the Project
Companies, in form and substance reasonably acceptable to the Initial Class A Equity
Investor, (ii) a state energy regulatory legal opinion of counsel
to the Project Companies, in form and substance reasonably acceptable to the Initial Class A Equity
Investor; and (iii) the three permitting legal opinions of counsel
to the Project Companies, in form and substance reasonably acceptable to the Initial Class A Equity
Investors;

 

(f)            each of the Equity Investors, the
Company and the Project Companies has obtained all necessary third party
consents, waivers, authorizations, and approvals (other than as set forth in Part II
of Annex 4-A) in connection with the execution, delivery and performance
of

 

39

 

this Agreement and the transactions contemplated
hereunder which consents, waivers, authorizations and approvals are in form
reasonably satisfactory to the Equity Investors and copies of the same have
been delivered to the Equity Investors;

 

(g)           each of the Equity Investors has
received the Base Case Model, which is reasonably satisfactory to it;

 

(h)           each of the Equity Investors has
received any necessary approval from its respective internal investment
committee(s) and board of directors or other governing body to enter into
the transactions contemplated hereunder;

 

(i)            each of the Equity Investors and the
Company has received (i) the Proforma Owner’s Policy, (ii) the ALTA
Survey of each Wind Farm Site, and (iii) the Site Plan for each Wind Farm
Site, each of which is reasonably satisfactory to each of the Equity Investors;

 

(j)            each of the representations and
warranties of the Parties made pursuant to this Agreement are true and correct
as of the Execution Date, except to the extent that any such representation or
warranty is to be expressly made only as of an Equity Capital Contribution Date
or another date;

 

(k)           the Equity Investors have received
incumbency certificates, secretary certificates, good standing certificates,
resolutions and formation documents of each Project Company, the Company, Noble
Holdco, Administrator, Guarantor, EPC Contractor, O&M Contractor, each Class A
Equity Investor and each issuer of a Class A Equity Guaranty as are
customary for transactions of this type, each of which is reasonably
satisfactory to each of the Equity Investors;

 

(l)            each Class A Equity Investor
has received fully executed copies of the Noble Guaranty, and Noble Holdco has
received fully executed copies of all of the Class A Equity Guarantees,
letters of credit or other cash collateralized financial instrument (each of
which is in full force and effect), or cash deposit, if any and as applicable;

 

(m)          there has not been a Change of Law
that has caused a Material Adverse Effect to occur and be continuing; provided,
however, that any Change in Law relating to PTCs for which the Base Case Model
has been adjusted to fully take into account the economic effects of such
Change of Law shall not be deemed to cause a Material Adverse Effect;

 

(n)           the Initial Class A Equity
Investor and GECM has either received a Tax opinion from McKee Nelson LLP,
which opinion is in form and substance reasonably satisfactory to such Class A
Equity Investor, or waived such condition; and

 

(o)           each of the Equity Investors has
received a fully executed, complete and correct copy of the ACCA.

 

5.02.               Equity Capital Contribution Conditions Precedent.  The obligations of each Equity Investor to
make its respective Equity Capital Contribution on each Equity Capital
Contribution Date (unless only a specific Equity Capital Contribution Date is
referenced in the

 

40

 

following
conditions, in which case such condition must be satisfied or waived only in
connection with such Equity Capital Contribution Date) are subject to the
satisfaction or waiver by the Initial Class A Equity Investor and Noble
Holdco (except that any of the following conditions that are made for the
benefit of the Class B Equity Investor may be determined to be satisfied
or waived only by the Class B Equity Investor and any of the following
conditions that are made for the benefit of the Class A Equity Investors
may be determined to be satisfied or waived only by the Initial Class A Equity Investor) of each of the
following conditions (collectively, the “Equity Capital
Contribution Conditions Precedent”), provided that (i) no more
than one (1) Second Equity Capital Contribution Date as set forth in Section 2.01(c) shall
occur and (ii) no Equity Capital Contribution Date shall occur later than June 30,
2009:

 

(a)           (i) with respect to the
Initial Equity Capital Contribution Date only: (A) the Class A
Engineer shall have confirmed that (1) Substantial Completion has occurred
with respect to at least one hundred ninety-eight (198) Wind Turbines, and (2) Substantial
Completion shall have occurred on or before December 31, 2008 (or, in the
case of any Wind Turbines with respect to which Substantial Completion has not
occurred on or before December 31, 2008, such Wind Turbines must qualify
for PTCs pursuant to a PTC Extension) *** and (B) the Class A
Engineer and the Independent Engineer shall have jointly notified the Equity
Investors and the Administrative Agent as to the number of Wind Turbines for
which Substantial Completion has occurred as of the Initial Equity Capital Contribution
Date, and

 

(ii) with respect to the Second Equity Capital
Contribution Date only, the Class A Engineer shall have confirmed that
Substantial Completion has occurred with respect to at least one (1) Wind
Turbine that was not previously the subject of the Initial Equity Capital
Contribution, and the Class A Engineer shall have notified the Equity
Investors as to the number of Wind Turbines for which Substantial Completion
has occurred as of the Second Equity Capital Contribution Date;

 

(b)           each of the Company and the Project
Companies has performed its obligations under this Agreement and under the
Principal Project Documents to which it is a party, except to the extent that
failure to perform such obligations would not reasonably be expected to result
in a Material Adverse Effect;

 

(c)                                  (i)            with respect to the Initial Equity
Capital Contribution Date only, all conditions to the borrowing of the Term
Loans under the Debt Financing Documents on the Term Conversion Date (as
defined in the Financing Agreement) (other than the consummation of the
transactions set forth in Article 2) have been satisfied or waived (and if
waived, such waivers have been approved by the Initial Class A Equity Investor, such approval
not to be unreasonably withheld);

 

41

 

(ii)           with respect to the Final Equity
Capital Contribution Date only, either (x) all conditions set forth in Section 2.12(e) and
Section 3.3 of the Financing Agreement (other than the consummation of
the transactions set forth in Article 2) have been satisfied or waived
(and if waived, such waivers have been approved by the Initial Class A Equity
Investor, such approval not to be unreasonably withheld), or (y) the
Company has prepaid a principal amount of the Term Loans under the Debt
Financing Documents pursuant to Section 2.12(f) of the
Financing Agreement;

 

(d)           each of the representations and
warranties of:

 

(i)                                     with
respect to the Class A
Equity Investors only, (A) Noble Holdco made in this Agreement, (B) the
Class B Equity Investor made in the LLC Agreement, and (C) Guarantor
made in the Noble Guaranty and the Equity Guaranty (if applicable), are true
and correct in all material respects (except if such representation and
warranty is already qualified by materiality or Material Adverse Effect or a
similar materiality qualification, in which case such representation and
warranty shall be true in all respects) as of such Equity Capital Contribution
Date (or if such representation and warranty relates solely to an earlier date,
as of such earlier date) and each Class A Equity Investor shall have
received an officer’s certificate from Noble Holdco to such effect, and

 

(ii)                                  with
respect to the Class B Equity Investor only, (A) each Class A
Equity Investor made in this Agreement, (B) each Class A Equity
Investor made in the LLC Agreement, (C) each Class A Equity Investor
made in the ACCA, and (D) each guarantor made in each Class A Equity
Guaranty, are true and correct in all material respects (except if such
representation and warranty is already qualified by materiality or Material
Adverse Effect or a similar materiality qualification, in which case such
representation and warranty shall be true in all respects) as of such Equity
Capital Contribution Date (or if such representation and warranty relates
solely to an earlier date, as of such earlier date) and the Class B Equity
Investor shall have received an officer’s certificate from each such Class A
Equity Investor to such effect; and

 

(e)           with respect to the Initial Equity
Capital Contribution Date only, all Governmental Approvals then required for
the development, ownership, operation, or maintenance of the Wind Farms, or the
sale of electricity and Renewable Energy Certificates therefrom (including (i) an
order issued by FERC granting the Project Companies approval under Section 203
of the FPA for the Parties to consummate the transactions described in this
Agreement and (ii) the Governmental Approvals set forth in Part I of Annex
4-A) are validly
issued, final and non-appealable (except as set forth in Annex 4-A) and
in full force and effect and a true, complete and correct copy of each such
Governmental Approval, certified as such by Noble Holdco, has been delivered to
each of the Class A Equity Investors;

 

42

 

(f)            without duplication of Section 5.02(t),
(i) each of the Principal Project Documents is in full force and effect,
and no Principal Project Document has been materially amended, modified, or
supplemented since
the Execution Date, without the prior consent of each such Equity Investor,
provided that the prior consent of each such Equity Investor shall not be
required with respect to amendments to the Debt Financing Documents to the
extent that any such amendment does not have a material adverse impact on the Class A
Equity Investors, the Class A Equity Investors’ investment in the Company,
or the After-Tax Payout at any time from and after the date hereof, and (ii) the
Base Case Model has been adjusted to reflect any amendment, modification, or
supplement to the Principal Project Documents, and any Principal Project
Document entered into, since the Execution Date;

 

(g)           no condemnation is pending or, to the
Knowledge of Noble Holdco, threatened, with respect to any Wind Farm, or any
portion thereof material to the ownership, operation, or maintenance of such
Wind Farm, and no unrepaired casualty exists with respect to any Wind Farm or
the sale of power therefrom or any portion thereof material to the ownership,
operation, or maintenance of such Wind Farm or the sale of electricity
therefrom unless, in the reasonable opinion of the Class A Engineer, such
casualty is capable of repair in a reasonably satisfactory time frame and an
adequate reserve, reasonably acceptable to the Initial Class A Equity
Investor, has been established for such repair and subject to repricing
for changes in the Assumptions as a result of such condemnation or casualty;

 

(h)           each of the Equity Investors has
received a copy of the final Lender’s Title Policy;

 

(i)            (i) with respect to the
Initial Equity Capital Contribution Date only, the Company has delivered
to the Equity Investors correct and complete copies of all of the insurance
certificates from the insurance broker, or such other evidence reasonably
satisfactory to each of the Equity Investors that such insurance policies are
in full force and effect, with respect to the insurance policies for the
Company, the Project Companies, and the Wind Farms that are set forth in Annex 5
as operating period insurance, and (ii) with respect to each Equity
Capital Contribution Date, the insurance policies set forth in Annex 5,
and such other insurance required pursuant to the Project Administration
Agreements and Debt Financing Documents, shall be in place;

 

(j)            with respect to the Class B
Equity Investor only and without duplication of Section 5.01(l),
such Equity Investor has received from each Class A Equity Investor, if
applicable as set forth in the definition of “Approved Investor”, Class A
Equity Guarantees, letters of credit or other cash collateralized financial
instruments (each of which is in full force and effect) or cash deposits, and
the Administrative Agent has received from each Class A Equity Investor a
fully executed copy of each Equity Support Member Pledge Agreement;

 

(k)           with respect to the Initial Equity
Capital Contribution Date only, (i) with respect to the Class A
Equity Investors only, each Class A Equity Investor shall have received
“bring downs” of incumbency certificates, secretary certificates, good standing
certificates, resolutions and formation documents of each Project Company, the
Company, Noble Holdco, Administrator, Guarantor, EPC Contractor, and O&M
Contractor, and an officers certificate, all as are customary for transactions
of this type, and each of which is reasonably satisfactory to the

 

43

 

Initial Class A
Equity Investor, and (ii) with respect to the Class B Equity
Investor only, the Class B Equity Investor shall have received “bring
downs” of incumbency certificates, secretary certificates, good standing
certificates, resolutions and formation documents of each Class A Equity
Investor and each issuer of a Class A Equity Guaranty, and an officers
certificate all as are customary for transactions of this type, and each of
which is reasonably satisfactory to the Class B Equity Investor;

 

(l)

 

(i)            with respect to each Equity Capital
Contribution Date, each of the Equity Investors and the Company has received, (A) with
respect to the Initial Equity Capital Contribution Date only, dated no earlier
than sixty (60) days and no later than twenty (20) days prior to the Initial
Equity Capital Contribution Date and (B) with respect to the Second Equity
Capital Contribution Date only, dated no earlier than thirty (30) days and no
later than fifteen (15) days prior to the Second Equity Capital Contribution
Date, an update, bring-down, or supplement, in form and substance reasonably
satisfactory to the Initial
Class A Equity Investor, to the Independent Engineer Report in respect
of the Wind Farms, finalizing or completing any incomplete provisions of such
Report and confirming that there have been no material changes in the
conclusions set forth in such Report since the date of such Report, other than
any such material change that would (x) result in a change in the
Assumptions or adjustment of the Base Case Model other than as contemplated by Section 2.01
or (y) not cause a material additional risk that the After Tax Payout will
not be achieved by the Class A Equity Investors;  and

 

(ii)           with respect to the Initial Equity
Capital Contribution Date only, each of the Equity Investors and the Company
has received, dated no later than ninety (90) days prior to the Initial Equity
Capital Contribution Date, an update, bring-down, or supplement, in form and
substance reasonably satisfactory to the Initial Class A Equity Investor, to the Wind
Energy and Resource Assessment Report in respect of the Wind Farms, adjusting
the results set forth in the original Report, updating methodology, finalizing
or completing any incomplete provisions of such Report (but not including any
incremental wind data or analysis thereof) and confirming that there have been
no material changes in the conclusions set forth in such Report since the date
of such Report, other than any such material change that would (x) result
in a change in the Assumptions or adjustment of the Base Case Model other than
as contemplated by Section 2.01 or (y) not cause a material
additional risk that the After Tax Payout will not be achieved by the Class A
Equity Investors;

 

(m)          with respect to the Initial Equity Capital Contribution
Date only, legal opinions (or bring-downs, as applicable) shall have
been delivered:

 

(i)            with respect to each Class A
Equity Investor only, to such Class A Equity Investor (A) from
counsel to the Project Companies, regarding FERC regulatory matters in substantially
the form attached hereto as Annex 15-A, (B) from counsel to
the Project Companies, regarding state energy regulatory matters in 

 

44

 

substantially the
form attached hereto as Annex 15-B; (C) from counsel to the
Project Companies, regarding permitting matters in substantially the form of
the three forms of opinion attached hereto as Annex 15-C; (D) from counsel to the Project Companies,
the Company, Noble Holdco, EPC Contractor, Guarantor, O&M Contractor, and
Administrator, regarding certain transactional and corporate matters, in
substantially the form attached hereto as Annex 15-D, (E) from
in-house counsel to Noble Holdco, in substantially the form attached hereto as Annex
15-E; (F) from in-house counsel to the Administrative Agent, in
substantially the form attached hereto as Annex 15-F; (G) from
counsel to the Administrative Agent, in substantially the form attached hereto
as Annex 15-G; (H) from Delaware counsel as to the enforceability
of the LLC Agreement against the Class B Equity Investor and each other Class A Equity Investor;
and (I) from counsel to each other Class A Equity Investor and each
guarantor regarding its Class A Equity Guarantees, substantially in the
form of Annex 15-H.

 

(ii)           with respect to the Class B
Equity Investor only, to the Class B Equity Investor, (A) from
counsel to each Class A Equity Investor and each guarantor regarding its Class A
Equity Guarantees, substantially in the form of Annex 15-H; and (B) from
Delaware counsel as to the enforceability of the LLC Agreement against each Class A
Equity Investor;

 

(n)           with respect to the Initial Equity Capital Contribution
Date only, an unaudited balance sheet of each of the Company and the
Project Companies prepared in accordance with GAAP and as of a date not earlier
than forty-five (45) days prior to the Initial Equity Capital Contribution Date
has been delivered to each of the Equity Investors and certified by Noble
Holdco as fairly presenting, in all material respects, the financial condition
of each of the Company and the Project Companies, subject to normal year-end
audit adjustments;

 

(o)           (i) with respect to the Initial
Equity Capital Contribution Date only, receipt by each Equity Investor of not
less than ten (10) Business Days’ notice from the Company of the
anticipated Initial Equity Capital Contribution Date and at least four (4) Business
Days’ notice from the Company of the actual Initial Equity Capital Contribution
Date, which notice of the actual Initial Equity Capital Contribution Date
includes a notice from Noble Holdco addressed to the Equity Investors (A) specifying
in detail (1) the Persons (and the account information with respect
thereto) designated to receive the payments set forth in Section 2.02 and (2) the exact amounts to be
disbursed to such Persons pursuant to the terms hereof and in accordance with
the Flow of Funds Memorandum, and (B) attaching the Flow of Funds
Memorandum, and (ii) with respect to the Second Equity Capital
Contribution Date only, receipt by each Equity Investor of not less than six (6) Business
Days’ notice from the Company of the anticipated Second Equity Capital
Contribution Date and at least three (3) Business Days’ notice from
the Company of the actual Second Equity Capital Contribution Date, which notice
of the actual Second Equity Capital Contribution Date includes a notice from
Noble Holdco addressed to the Equity Investors (A) specifying in detail (1) the
Persons (and the account information with respect thereto) designated to
receive the payments set forth in Section 2.02, and (2) the exact amounts to be
disbursed to such Persons pursuant to the terms hereof and in accordance with
the Flow of Funds Memorandum, and (B) attaching the Flow of Funds
Memorandum;

 

45

 

(p)           with respect to the Initial Equity Capital Contribution
Date only, each of the Equity Investors has received (i) the Title
Policy, dated as of the Initial Equity Capital Contribution Date, and (ii) an
as-built ALTA Survey of each Wind Farm Site, each of which is reasonably
satisfactory to each of the Equity Investors;

 

(q)           the Initial Equity Capital
Contribution or Second Equity Capital Contribution, as the case may be, has
been determined in accordance with Section 2.01;

 

(r)            (i) with respect to the
Initial Equity Capital Contribution Date only, other than amounts paid
or to be paid with the proceeds of the Debt Financing, the NEP Guarantee (as
defined in the Financing Agreement), the ACCA, or revenues of the Company or
the Project Companies, the aggregate Equity Capital Contributions to be paid or
deposited under Section 2.02 shall be sufficient to fund all
amounts required to achieve Final Completion for each of the Wind Farms, as
certified by the Independent Engineer to the Initial Class A Equity Investor (which
certification shall be reasonably satisfactory to the Initial Class A Equity Investor), and all such
amounts have been paid, deposited, or established, as the case may be, pursuant
to Section 2.02 and the Equity Investors shall have received
written confirmation from the Company of the foregoing, and (ii) at each
Equity Capital Contribution Date, and with respect to all Wind Turbines that
have achieved Substantial Completion and are being funded at such Equity
Capital Contribution Date, (A) each Project Company has paid, or caused to
be paid, all costs and expenses (including any loans or other obligations) necessary
for the achievement of Substantial Completion for such Wind Turbines, other
than those costs or expenses which are to be paid from the aggregate Equity
Capital Contributions to be paid or deposited under Section 2.02 on
such Equity Capital Contribution Date or are otherwise payable pursuant to the
Debt Financing Documents (and all such amounts have been paid or deposited, as
the case may be, pursuant to Section 2.02 or the Debt Financing
Documents, as applicable), and the Equity Investors shall have received written
confirmation from the Company of the foregoing, and (B) the Equity
Investors shall have received copies of all lien waivers from all of the
Contractors (other than the TSA Contractor, except that the Company shall only
have to have used commercially reasonable efforts to obtain lien waivers from
the TSA Contractor (and deliver the same to the Equity Investors) to the extent
such lien waivers are required to be delivered under the Turbine Supply
Agreements);

 

(s)           to the extent not previously
delivered, each of the Equity Investors shall have received a fully executed
copy of each of (i) the Noble Guaranty, (ii) the Senior Lender
Forbearance Agreement, (iii) the Hedge Provider Forbearance Agreement, (iv) the
O&M Contracts, and (v) the Project Administration Agreements, each of
which is in full force and effect, and to the extent not already a beneficiary
thereof, each of the Equity Investors shall be a beneficiary of each of (A) the
Noble Guaranty, (B) the Senior Lender Forbearance Agreement and (C) the
Hedge Provider Forbearance Agreement;

 

(t)            (i) without duplication of Section 5.02(f),
no material amendment or change has been made to any of the Interconnection
Agreements since execution of same except to the extent that such amendment or
change (A) will not adversely affect the ability of any Wind Farm to
deliver capacity, energy, or ancillary services to the point of interconnection
specified in the relevant Interconnection Agreement at the maximum quantity
provided therein, or require the re-filing or any acceptance of such changed
agreement under the FPA or (B) is made to comply

 

46

 

with an order of FERC, (ii) each Wind Farm is
interconnected under its applicable Interconnection Agreement so as to permit
such Wind Farm to deliver all energy from such Wind Farm to the “point of
interconnection” specified in each of the Interconnection Agreements, and (iii) the
“In-Service Date” under each Interconnection Agreement shall have occurred;

 

(u)           each Equity Investor has received a
fully executed copy of an estoppel certificate from: (i) with respect to
each Equity Capital Contribution Date, the EPC Contractor with respect to each
EPC Contract substantially in the form as set forth in Annex 11-A,
each of which has been executed no earlier than as of the applicable Equity
Capital Contribution Date and is in full force and effect; and (ii) with
respect to the Initial Equity Capital Contribution Date only, (A) the
Guarantor with respect to the Noble Guaranty substantially in the form as set
forth in Annex 11-B and (B) the O&M Contractor with
respect to each O&M Contract substantially in the form as set forth in Annex 11-C,
each of which has been executed no earlier than as of the Initial Equity
Capital Contribution Date and is in full force and effect;

 

(v)           each of the Equity Investors has
received a revised Base Case Model consistent with Section 2.01,
provided that, inter alia, the amount of Term Loans shall not be greater than
the amount set forth therefore in the Base Case Model;

 

(w)          each of the Equity Investors has
received, and the Initial
Class A Equity Investor has approved, true and correct fully
executed copies of the Principal Project Documents to which the Company or any
Project Company is a party or by which it is bound that were executed, amended
or assigned subsequent to the Execution Date;

 

(x)            with respect to the Initial Equity
Capital Contribution Date only, each of the Class B Equity Investor and
the Initial
Class A Equity Investor shall have approved the budget for the
Company for 2009;

 

(y)           [intentionally deleted]

 

(z)            Noble Holdco has caused all
Transaction Expenses incurred prior to such Equity Capital Contribution Date to
have been paid in full so long as invoices for payment have been received in
the relevant time frame provided in Section 6.13;

 

(aa)         (i) each Equity Investor has
received a fully executed copy of each estoppel certificate from each
counterparty to a Real Property Document that has been delivered in accordance
with the Debt Financing Documents, each of which shall include the Equity
Investors as beneficiaries thereof, and (ii) Noble Holdco shall have
certified as of each Equity Capital Contribution Date that it has no Knowledge
of (A) any event that has occurred and is continuing since the date of any
such estoppel certificate that would cause any statement by the applicable
counterparty contained in such estoppel certificate to be untrue as of such
Equity Capital Contribution Date, (B) any event of default by the Company or
any Project Company under any Real Property Document relating to any Wind Farm
Site (other than those relating to Ancillary Border Parcels) that has occurred
and is continuing or (C) any existing dispute between any Project Company
and any counterparty to any Real Property Document relating to any Wind Farm
Site (other than those relating to Ancillary Border Parcels), in each case that
would

 

47

 

reasonably be expected to materially adversely affect
the production or delivery of energy from any Wind Turbine;

 

(bb)         with respect to the Hedge Agreement,
Noble Holdco has caused the Company to make the designation and identification
required pursuant to Section 7.04 of the LLC Agreement;

 

(cc)         with respect to the Initial Equity
Capital Contribution, an appraisal by DAI (or another independent third party
appraiser selected by Noble Holdco and approved by the Initial Class A Equity
Investor) of the fair market value of each Wind Farm, which appraisal
must contain a depreciable property cost segregation and must be reasonably
acceptable to the Initial
Class A Equity Investor and supports the value of each Wind Farm
shown in the Base Case Model;

 

(dd)         with respect to the Initial Equity
Capital Contribution Date only, if Substantial Completion has occurred with
respect to less than all of the Wind Turbines as of such date, the Company has
received a fully executed copy of the Equity Guaranty and a legal opinion from
counsel to the Guarantor as to the enforceability of the Equity Guaranty
against the Guarantor in form and substance reasonably acceptable to the Class A
Equity Investors; and

 

(ee)         With respect to the Initial Equity
Capital Contribution Date only, Noble Holdco has caused the Company to take the
necessary steps to (A) document the Hedge Agreement and prove that the
Hedge Agreement is effective, in each case for cash flow hedge accounting
purposes, and (B) allocate to Noble Holdco any future mark to market
effects and changes in fair value on any portion of the Hedge Agreement not
subject to cash flow hedge accounting .

 

5.03.       Obligations
of the Equity Investors on each Equity Capital Contribution Date.  On each Equity Capital Contribution Date (except as specified below),
subject to satisfaction or waiver of the conditions set forth in Section 5.02:

 

(a)           on the Initial Equity Capital
Contribution Date only, each of the Equity Investors shall execute and deliver
to the Company and each of the other Equity Investors a copy of the LLC
Agreement substantially in the form of Annex 2, including all
Exhibits thereto, with such additions thereto required by this Agreement; and

 

(b)           each of the Class A Equity
Investors shall make its own Equity Capital Contribution in accordance with Section 2.01;

 

and thereby, (A) on the Initial Equity Capital
Contribution Date only, in the case of the Class A Equity Investors,
acquire a Class A Membership Interest (as defined in Annex 2), or (B) on
the Initial Equity Capital Contribution Date only, in the case of the Class B
Equity Investor, exchange its membership interest in the Company for the Class B
Membership Interest (as defined in Annex 2), in each case pursuant to
the LLC Agreement.  If any Class A
Equity Investor breaches its obligations under this Section 5.03,
then in addition to any rights or remedies which are otherwise available to
Noble Holdco or the other Equity Investors, the Class A Equity Investors
that have funded their Equity Capital Contributions shall have the right to
fund such breaching Class A Equity Investor’s Equity Capital Contribution
within 15 days, and

 

48

 

to the extent not already funded by such Class A
Equity Investors within such 15-day period, Noble Holdco shall have the right
to fund, or designate another Person to fund, such breaching Class A
Equity Investor’s remaining Equity Capital Contributions, and in either such
case the other Parties shall take such actions as may be reasonably requested
by the funding Party in order to implement such funding, including becoming a Class A
Equity Investor and executing all documents related thereto (it being
understood that any action requested by such funding Party pursuant to this Section 5.03
that would (A) adversely affect the Company or the Wind Farms in any material
respect, or (B) adversely affect any non-breaching Class A Equity
Investor or the After-Tax Payout, shall not be a reasonable request).

 

5.04.       Equity
Investor Rights Prior to the Initial Equity Capital Contribution Date.  Prior to the Initial Equity Capital
Contribution Date, the Company shall, and shall cause each Project Company to,
provide to each Equity Investor (a) copies of all reports delivered to the
Administrative Agent and/or the Lenders pursuant to Sections 5.5(a) through
5.5(d) and Section 5.5(f) of the Financing Agreement and (b) copies
of all other documents and other information concerning the Wind Farms, the
Company and any Project Company that are reasonably requested by the Equity
Investors.

 

5.05.       Site Access.  Each Equity Investor shall, at its sole cost
and expense, subject to the terms of the easements, leases or sub-leases of
each Wind Farm Site and to the Company’s and each Project Company’s safety
requirements (which in each case shall be consistent with standard industry
practice), have the right, upon reasonable notice, and at all reasonable times
during usual business hours to have reasonable access for a reasonable number
of times  to any Wind Farm Site during
the construction of such Wind Farm to inspect the properties of such Project
Company and to audit, examine and make copies of the books of account and other
records of the Company and each Project Company, including for the purpose of
determining compliance with Environmental Laws.

 

5.06.       Equity
Investors Consents; Opinions in Favor of Lenders.  Each Class A Equity Investor shall
promptly, upon the request of Noble Holdco or the Company, deliver or cause to
be delivered, as applicable, to the Lenders, Administrative Agent, or Hedge
Provider or all of them, as applicable, (a) a consent to assignment with
respect to itself and with respect to the guarantor of its obligations under
this Agreement, the ACCA and the LLC Agreement, which consent to assignment
shall be substantially in the form attached hereto as Annex 17 (each a “Consent to Assignment”), (b) in accordance with its
Equity Support Member Pledge Agreement, blank membership interest powers with
respect to the Class A Units issued to such Class A Equity Investor
substantially in the form set forth in the Equity Support Member Pledge
Agreement, and (c) legal opinions confirming certain of the matters
covered in the opinions delivered by such Class A Equity Investor and/or
such Class A Equity Investor’s counsel pursuant to Section 5.02(m),
which legal opinions shall include customary matters, including a due
authorization, execution and enforceability opinion as to (i) this
Agreement, the Consent to Assignment delivered by such Class A Equity
Investor and the guarantor of its obligations under this Agreement pursuant to
clause (a) above, the ACCA, and the applicable Class A Equity
Contributions Guaranty, and (ii) the Equity Support Member Pledge
Agreement of such Class A Equity Investor, and the LLC Agreement.

 

49

 

ARTICLE
6

GENERAL PROVISIONS

 

6.01.               Notices.  Except as expressly set forth to the contrary in this Agreement, all
notices, requests or consents provided for or permitted to be given under this
Agreement must be in writing and must be delivered to the recipient in person,
by courier or certified mail, return receipt requested, or by facsimile or
other electronic transmission.  A notice,
request or consent given under this Agreement is effective on receipt by the
Party receiving it; provided that a facsimile or other electronic transmission
that is transmitted after the normal business hours of the recipient shall be
deemed effective on the next Business Day. 
All notices, requests and consents to be sent to a Party must be sent to
or made at the addresses given for that Party below (or to such other Person or
address as a Party may previously have notified all other Parties pursuant to
the provisions of this Section 6.01).  A copy of any notice, request or consent to
the Company must be given to all of the other Parties.  Whenever any notice is required to be given
by Applicable Law or this Agreement, a written waiver thereof, signed by the
Person entitled to notice, whether before or after the time stated therein,
shall be deemed equivalent to the giving of such notice.  The names and addresses for the service of
notices referred to in this Section 6.01 are:

 

	
   

  	
  If to a Project Company, to such Project Company at:

  
	
   

  	
   

  
	
   

  	
  c/o Noble Environmental Power, LLC

  
	
   

  	
  8 Railroad Avenue

  
	
   

  	
  Second Floor, Suite 8

  
	
   

  	
  Essex, CT 06426

  
	
   

  	
  Attention: Vice President Asset Management

  
	
   

  	
  Tel: (860) 581-5010

  
	
   

  	
  Fax: (860) 767-7041

  
	
   

  	
   

  
	
   

  	
  If to the Company, to:

  
	
   

  	
   

  
	
   

  	
  Noble Environmental Power 2008 Hold Co., LLC

  
	
   

  	
  c/o Noble Environmental
  Power, LLC

  
	
   

  	
  8 Railroad Avenue

  
	
   

  	
  Second Floor,
  Suite 8

  
	
   

  	
  Essex, CT 06426

  
	
   

  	
  Attention: Vice
  President Asset Management

  
	
   

  	
  Tel: (860) 581-5010

  
	
   

  	
  Fax: (860) 767-7041

  
	
   

  	
   

  
	
   

  	
  If to Noble Holdco, to:

  
	
   

  	
   

  
	
   

  	
  Noble Environmental
  Power 2008 Hold Co. Prime, LLC

  
	
   

  	
  c/o Noble Environmental
  Power, LLC

  
	
   

  	
  8 Railroad Avenue

  
	
   

  	
  Second Floor,
  Suite 8

  
	
   

  	
  Essex, CT 06426

  

 

50

 

	
   

  	
  Attention: Vice
  President Asset Management

  
	
   

  	
  Tel: (860) 581-5010

  
	
   

  	
  Fax: (860) 767-7041

  

 

	
   

  	
  If to the Equity Investors, to:

  
	
   

  	
   

  
	
   

  	
  Noble Environmental Power 2008 Hold Co. Prime, LLC

  
	
   

  	
  c/o Noble Environmental Power, LLC

  
	
   

  	
  8 Railroad Avenue

  
	
   

  	
  Second Floor, Suite 8

  
	
   

  	
  Essex, CT 06426

  
	
   

  	
  Attention: Vice President Asset Management

  
	
   

  	
  Tel: (860) 581-5010

  
	
   

  	
  Fax: (860) 767-7041

  
	
   

  	
   

  
	
   

  	
  and:

  
	
   

  	
   

  
	
   

  	
  EFS Noble II, LLC

  
	
   

  	
  c/o GE Energy Financial Services, Inc.

  
	
   

  	
  120 Long Ridge Road

  
	
   

  	
  Stamford, CT 06927

  
	
   

  	
  Attention: Portfolio
  Manager - Noble II

  
	
   

  	
  Tel: (203) 357-4000

  
	
   

  	
  Fax: (203) 357-4501

  
	
   

  	
   

  
	
   

  	
  and:

  
	
   

  	
   

  
	
   

  	
  GE Capital Markets, Inc.

  
	
   

  	
  3135 Easton Turnpike

  
	
   

  	
  Fairfield, CT 06828

  
	
   

  	
  Attention: Donald Kyle

  
	
   

  	
  Tel: (203) 357-3986

  
	
   

  	
  Fax: (203) 357-4897

  
	
   

  	
   

  
	
   

  	
  and:

  
	
   

  	
   

  
	
   

  	
  The address of any
  additional Class A Equity Investor set forth in any Assignment and
  Assumption Agreement executed in accordance with Section 6.05 or
  as set forth in the LLC Agreement.

  

 

Any Party may change the
address or number to which notices to such Party are to be delivered by
providing notice of such change to each other Party in the manner set forth
above.

 

6.02.       Indemnification.  Subject to the other provisions of this Section 6.02,
Noble Holdco and the Company (each, a “Noble Indemnifying Party,”
and collectively, the “Noble Indemnifying Parties”)
agree to jointly and severally indemnify, defend and hold harmless the Class A
Equity Investors and any successor or permitted assign of each Class A
Equity Investor (each, a “Class A Indemnified Party” and
collectively, the “Class A

 

51

 

Indemnified Parties”)
from and with respect to any Losses suffered by any Class A Indemnified
Party resulting from any inaccuracy in any representation or warranty made by
Noble Holdco in this Agreement or in any certificate executed and delivered by
Noble Holdco, the Company or any Project Company pursuant to this Agreement.

 

(b)           Subject to the other provisions of
this Section 6.02, each Class A Equity Investor (each, a “Class A Indemnifying Party” and collectively, the “Class A Indemnifying Parties”) agrees to severally, but
not jointly, indemnify, defend and hold harmless Noble Holdco, the Company and
the Project Companies and any of their respective successors or permitted
assigns (each, a “Noble Indemnified Party” and
collectively, the “Noble Indemnified Parties”) from and
with respect to any Losses suffered by any Noble Indemnified Party resulting
from any inaccuracy in any representation or warranty made by such Class A
Equity Investor in this Agreement or in any certificate executed and delivered
by such Class A Equity Investor pursuant to this Agreement.

 

(c)           The amount of any Loss subject to the
indemnities in Section 6.02(a) and (b) hereunder
shall (i) take into account the amount of any compensation received by the
Indemnified Party as a result of any adjustments made in accordance with Section 2.01
on account of such Loss and (ii) be reduced by the amount of any insurance
proceeds, damages, liquidated damages, condemnation proceeds or other
compensation (net of reasonable legal fees and expenses incurred by the
Indemnified Party in the collection thereof). 
In the event that, following the receipt of any indemnity payments
pursuant to this Section 6.02, an Indemnified Party receives any
insurance proceeds, damages, liquidated damages, condemnation proceeds or other
compensation with respect to any Loss with respect to which such indemnity
payments were received, then such Indemnified Party shall promptly pay over to
the relevant Indemnifying Party or Indemnifying Parties the amount of such
insurance proceeds, damages, liquidated damages, condemnation proceeds or other
compensation (net of reasonable legal fees and expenses incurred by the
Indemnified Party in the collection thereof). 
For the avoidance of doubt, the amount of any Losses subject to the
indemnities in Section 6.02(a) hereunder shall be reduced by
any and all amounts paid to such Class A Equity Investor under Article 9
of the LLC Agreement in connection with the breach of any covenant or the
inaccuracy of any representation or warranty thereunder that arose out of the
same events and circumstances.

 

(d)           The representations and warranties made by Noble Holdco in this
Agreement or in any certificate executed and delivered by Noble Holdco,
the Company or any Project Company pursuant to this Agreement shall survive the Initial Equity Capital
Contribution Date and continue in effect until 11:59 p.m., New York City
Time, on the date that is twelve (12) months following the Initial Equity
Capital Contribution Date, except that Noble Holdco’s representations and
warranties contained in (i) Sections
3.01, 3.02, 3.04, and 3.10 shall survive the Initial
Equity Capital Contribution Date until the expiration of the statute of
limitations applicable to the underlying claim, (ii) Sections 3.25
and 3.33 shall survive the Initial Equity Capital Contribution Date
until three (3) months following the expiration of the statute of limitations
on the assessment and collection of the applicable Taxes, (iii) Sections
3.04, 3.05 (first sentence only), 3.10, 3.17, 3.18,
3.25(e), 3.29, 3.33, 3.35, and 3.37 shall
survive the Initial Equity Capital Contribution Date until three (3) months
following the expiration of the statute of limitations on the assessment and
collection of federal income Taxes attributable to Company items, but only with
respect to a Loss that is attributable to the loss or disallowance of or
failure

 

52

 

to qualify for PTCs (such
Loss, a “PTC Loss”), in which case only the PTC
Loss shall be recoverable pursuant to the survival provision in this clause
(iii); provided that the Sections of this Agreement listed in clause (iii) shall
in all other respects survive and continue in effect until 11:59 p.m., New
York City Time, on the date that is twelve (12) months following the Initial
Equity Capital Contribution Date or as provided in clause (i) or (ii) hereof,
as applicable, and (iv) Sections 3.07 and 3.16 shall survive
and continue in effect until 11:59 p.m., New York City Time, on the date
that is twenty-four (24) months following the Initial Equity Capital
Contribution Date.

 

(e)           The representations and warranties made by the Class A
Equity Investors in this Agreement or made in any certificate, document,
writing or instrument delivered by a Class A Equity Investor pursuant to
this Agreement shall survive
the Initial Equity Capital Contribution Date and continue in effect until 11:59 p.m.,
New York City Time, on the date that is twelve (12) months following the
Initial Equity Capital Contribution Date, except that the representations and
warranties of each Class A Equity Investor contained in (i) Sections
4.01 and 4.02 shall survive the Initial Equity Capital Contribution
Date until the expiration of the statute of limitations applicable to the
underlying claim and (ii) Section 4.08 shall survive the
Initial Equity Capital Contribution Date until three (3) months following the expiration of the statute of
limitations on the assessment and collection of the applicable Taxes.

 

(f)            Notwithstanding anything to the
contrary, if a claim for indemnification is properly made under this Section 6.02
prior to the applicable expiration date as set forth in Sections 6.02(d) and
(e), such claim may be pursued to resolution (including instituting any
litigation) notwithstanding expiration of the representation or warranty under
which the claim was brought.

 

(g)           No claim for indemnification under this Section 6.02
may be made by any Indemnified Party unless and until the aggregate amount of
Losses subject to such claim for indemnification equals or exceeds $3,000,000
(the “Threshold”); provided that,
for purposes of clarification, once the Threshold is crossed and any claim for
indemnification is agreed or determined, the Indemnifying Party shall be
obligated to indemnify the Indemnified Parties from the first dollar of Losses;
and provided further that, after any claim for indemnification under this Section 6.02
is made by an Indemnified Party, such Indemnified Party may not bring another
claim for indemnification of Losses with respect to any Losses not included in
the previous claim or claims (such new claims for Losses, “New Claims”)
until the aggregate amount of New Claims subject to such claim for
indemnification equals or exceeds the Threshold.

 

(h)           The Noble Indemnifying Party shall not have any indemnity
obligations for Losses to the extent that the aggregate amount of all such
Losses exceeds an amount equal to (i) with respect to the representations
and warranties referenced in Sections 6.02(d) that survive for a
period of greater than twelve (12) months, one hundred percent (100%) of the
aggregate Equity Capital Contributions of the relevant Class A Indemnified
Party less the cash distributed to such Class A Indemnified Party pursuant
to the LLC Agreement (the “Relevant  Net Class A Amount”), and (ii) with respect to all
other representations and warranties, seventy-five percent (75%) of the Relevant
Net Class A Amount; provided that the indemnity obligations of the Noble
Indemnifying Parties with respect to such Class A Indemnified Party shall
be subject to an aggregate maximum amount equal to one hundred percent (100%)
of the Relevant Net Class A 

 

53

 

Amount; and
provided, further, that there shall be no limit on the indemnity obligations of
the Noble Indemnifying Parties if the inaccuracy of any representation or
warranty is due to fraud or willful misconduct by the Noble Indemnifying
Parties.

 

(i)            Each Class A Indemnifying
Party shall not have any indemnity obligations for Losses to the extent that
such Class A Indemnifying Party’s pro rata portion of the aggregate amount
of all such Losses exceeds an amount equal to (i) with respect to the
representations and warranties referenced in Sections 6.03(e) that survive
for a period of greater than twelve (12) months, such Class A Indemnifying
Party’s pro rata portion of an amount equal to one hundred percent (100%) of
the Capital Account (as defined in Annex 2) of the Class B Equity
Investor as of the Initial Equity Capital Contribution Date (after giving
effect to Section 2.01 of this Agreement) less the pro rata amount
of the cash distributed to Class B Equity Investor pursuant to the LLC
Agreement (the “Pro Rata Net Class B Amount”),
and (ii) with respect to all other representations and warranties,
seventy-five percent (75%) of the Pro Rata Net Class B Amount; provided
that the indemnity obligations of such Class A Indemnifying Party shall be
subject to an aggregate maximum amount equal to one hundred percent (100%) of
the Pro Rata Net Class B Amount; and provided, further, that there shall
be no limit on the indemnity obligations of a Class A Indemnifying Party
if such Class A Indemnifying Party’s inaccuracy of any representation or
warranty is due to fraud or willful misconduct by such Class A
Indemnifying Party.

 

(j)            Within sixty (60) days after
an Indemnified Party becomes aware that it has incurred Losses as a result of
any matter set forth in Section 6.02(a) or (b), as
applicable, the applicable Indemnified Party shall notify the Equity Investors
and the Company in writing of its claim (a “Relevant
Claim”) for such Losses, specifying in reasonable detail the cause
of such Losses (to the extent known) and the applicable Indemnified Party’s
calculation of the amount thereof if reasonably determinable by such
Indemnified Party, or, if not reasonably determinable, an estimate of the range
of such Losses.  Upon receipt of a notice
of a Relevant Claim, the Indemnifying Party or Indemnifying Parties shall have
the right to cure such asserted inaccuracy if such inaccuracy is capable of
cure and no such cure shall be an acknowledgement or agreement as to the existence
or amount of any Relevant Claim.  Within
forty five (45) days following receipt of notice of a Relevant Claim, the
Indemnifying Party or Indemnifying Parties shall notify the relevant
Indemnified Party in writing whether the Indemnifying Party or Indemnifying
Parties agree with or dispute all or a portion of the Relevant Claim,
specifying the amount, if any, so agreed to.

 

(k)           Third Party Claims.

 

(i)                                     If
an Indemnified Party gives notice to an Indemnifying Party of the assertion of
a Relevant Claim that is related to a claim brought by a third party (any such
claim, a “Third-Party Claim”), the Indemnifying
Party shall have the right, in its discretion, to participate in the defense of
such Third-Party Claim and, to the extent that it wishes (unless there is or
would reasonably be expected to be a conflict of interest between the
Indemnified Party and the Indemnifying Party in connection with the defense of
such Third Party Claim), to assume the defense of such Third-Party Claim with
counsel reasonably satisfactory to the Indemnified Party.

 

54

 

After
notice from the Indemnifying Party to the Indemnified Party of its election to
assume the defense of such Third-Party Claim, the Indemnifying Party shall not
be liable to the Indemnified Party under this Section 6.02 for any
fees of other counsel or any other expenses with respect to the defense of such
Third-Party Claim, in each case subsequently incurred by the Indemnified Party
in connection with the defense of such Third-Party Claim, other than reasonable
costs of investigation incurred by the Indemnified Party in connection with its
cooperation with a request by the Indemnifying Party.  If the Indemnifying Party assumes the defense
of a Third-Party Claim, no compromise or settlement of such Third-Party Claims
may be effected by the Indemnifying Party without the Indemnified Party’s
consent (which shall not be unreasonably withheld) unless (1) the sole
relief provided is monetary damages that are paid in full by the Indemnifying
Person and (2) the Indemnified Party shall have no liability with respect
to any compromise or settlement of such Third-Party Claims effected without its
consent. If notice is given to an Indemnifying Party of the assertion of any Third-Party
Claim and the Indemnifying Party does not, within sixty (60) days after the
Indemnified Party’s notice is given, give notice to the Indemnified Party of
its election to assume the defense of such Third-Party Claim, the Indemnifying
Party will be bound by any determination made in such Third-Party Claim or any
compromise or settlement effected by the Indemnified Party.

 

(ii)                                  Notwithstanding
the foregoing, if an Indemnified Party determines in good faith that there is a
reasonable probability that a Third-Party Claim may adversely affect it or its
Affiliates other than as a result of monetary damages for which it would be
entitled to indemnification under this Agreement, the Indemnified Party may, by
notice to the Indemnifying Party, assume the exclusive right to defend,
compromise or settle such Third-Party Claim, but the Indemnifying Party will
not be bound by any determination of any Third-Party Claim so defended for the
purposes of this Agreement or any compromise or settlement effected without its
consent (which may be withheld in its sole discretion).

 

(iii)                               With respect to any
Third-Party Claim subject to indemnification under this Section 6.02:
(i) both the Indemnified Party and the Indemnifying Party, as the case may
be, shall keep the other Parties reasonably informed of the status of such
Third-Party Claim and any related proceedings at all stages thereof where such
party is not represented by its own counsel, and (ii) the Parties agree
(each at its own expense) to render to each other such assistance as they may
reasonably require of each other and to cooperate in good faith with each other
in order to ensure the proper and adequate defense of any Third-Party Claim.

 

(iv)                              In
the event of a Third-Party Claim relating to Taxes of, or attributable to, the
Company or any Project Company, the Indemnified Party shall use

 

55

 

reasonable
efforts to cause such Third-Party Claim to be asserted against, or otherwise
transfer the proceeding relating to such Third-Party Claim to, the Company or
the Project Company, as applicable, in which case the relevant provisions of
the LLC Agreement (and not the provisions of this Section 6.02(k)) shall
apply to such proceeding.  If such
Third-Party Claim continues to be asserted directly against the Indemnified
Party, the Indemnified Party shall provide notice to the Indemnifying Party
and, to the extent that the proceeding relating to such Third-Party Claim would
reasonably affect the Company, any Project Company, or any other Equity
Investor, shall provide the Company with all relevant written material with
respect to such Third-Party Claim (redacted to remove any information not
attributable to the Company or any Project Company) and shall consult with the
Indemnified Party during the course of such proceedings.  Notwithstanding anything to the contrary in
this Section 6.02(k)(iv) or this Agreement, in the event that
there is a Third-Party Claim related to income Taxes and the Initial Class A Equity
Investor are not able to cause such Third-Party Claim to be asserted
against, or otherwise transferred to, the Company or the Project Company, as
applicable, the Initial
Class A Equity Investor shall have exclusive control over any
proceeding relating to such Third-Party Claim. 
Noble Holdco and the Guarantor can not be held liable by any Class A
Equity Investor for any income Tax position of a Class A Investor
attributable to the Company or Project Company that is inconsistent with that
set forth on the Tax Returns of the Company.

 

(l)            The Parties, for themselves,
their Affiliates, successors and permitted assigns, agree that, notwithstanding
anything to the contrary herein or in any other agreement, except as hereinafter provided,
the provisions of this Section 6.02 shall be the Equity Investors’
sole and exclusive means of recovery in respect of this Agreement and the Noble
Guaranty, but shall not prejudice any right the Class A Equity Investors’
may have under the LLC Agreement.

 

(m)          Any indemnity payable by any of the
Indemnifying Parties to any Indemnified Party pursuant to this Section 6.02
shall be paid on an After-Tax Basis.  For
this purpose, “After-Tax Basis” means, with respect to any indemnity payable,
such amount shall first be reduced by the amount of any tax benefits to the
Indemnified Party that are attributable to the indemnified Losses and then
increased (grossed up) to take into account U.S. federal income taxes imposed
on the Indemnified Party as a result of the receipt of such indemnity payment
so that after reduction for payment of taxes the recipient would retain an
amount equal to the indemnity payable as calculated after reduction for any tax
benefits before such increase; provided, in each case, the amount of any such
tax benefits or taxes payable shall be computed on a notional present value
basis using a discount rate equal to the After-Tax Payout rate and using the
applicable federal income tax rate of thirty-five percent (35%) (and assuming
that any state, local, foreign, or other income taxes are inapplicable).

 

6.03.       No Third
Party Beneficiaries.  This Agreement is solely for the benefit of
the Parties and their respective successors and permitted assigns, and this
Agreement shall not otherwise be deemed to confer upon or give to any other
third party any right, claim, cause of action, or other interest herein.

 

56

 

6.04.       Amendment
and Waiver. 
Neither this Agreement nor any term hereof may be changed, amended, or
terminated orally, but only by written act of all of the Parties (or, in
respect of a waiver, the waiving Party or Parties) and, so long as there are
any Debt Obligations, the required Lenders. 
No failure or delay on the part of a Party hereto in the exercise of any
right hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise of any such right preclude any other or further exercise
thereof or of any other right.

 

6.05.       Binding
Nature; Assignment; Consent to Assignment.  This Agreement shall bind and inure to the
benefit of the Parties hereto and their respective successors and legal
representatives and permitted assigns. 
No Party shall assign its rights and obligations under this Agreement
without the prior written consent of the other Parties hereto, and any such
assignment contrary to the terms hereof shall be null and void and of no force
and effect; provided  that: 
(i) each of the Class A Equity Investors shall be entitled to
assign its rights and obligations under this Agreement to an Affiliate thereof
(provided that if immediately prior to such assignment by a Class A Equity
Investor, such Affiliate is not an Approved Investor, the assigning Party and
its guarantors, if any, shall remain liable hereunder) that, if other than the
Initial Class A Equity Investor or GECM, meets the requirements of clause (C) of
the proviso immediately below; (ii) Noble Holdco shall be entitled to
assign its rights and obligations under this Agreement to an Affiliate thereof
(provided that pursuant to any such assignment by Noble Holdco, such Affiliate
must be solvent both before and after such assignment and shall assume all of
the relevant obligations of Noble Holdco hereunder, and the Noble Guaranty and
the Equity Guaranty (if applicable) each shall be unaffected by such assignment
and the Guarantor shall remain liable thereunder); (iii) the Company may
assign its rights under this Agreement to the Lenders or to the Administrative
Agent for the benefit of the Lenders as collateral for the obligations of the
Company under the Debt Financing Documents; and (iv) notwithstanding
anything to the contrary in this Agreement, each Class A Equity Investor
may assign to other Approved Investors all or a portion of its rights and
obligations under this Agreement, provided  that (A) such
assignment shall not cause any material delay in the occurrence of an Equity
Capital Contribution Date; (B) an assignee of any Class A Equity
Investor shall not be entitled to make any amendments, supplements or
modifications to this Agreement, the ACCA, the LLC Agreement, the Noble
Guaranty, the Class A Equity Guarantees, the Senior Lender Forbearance
Agreement, the Hedge Provider Forbearance Agreement and any other documents the
form of which has been previously agreed to by the Initial Class A Equity
Investor, GECM and the Company or Noble Holdco; (C) any such assignment
shall be (i) to a QIB in a transaction exempt from registration under the
Securities Act pursuant to Rule 144A promulgated under the Securities Act;
(ii) to an Institutional Accredited Investor in a transaction that is
otherwise exempt from registration under the Securities Act or (iii) in
accordance with another exemption from the registration requirements of the
Securities Act (based on an opinion of counsel if requested by the Company);
and (D) the Initial
Class A Equity Investor shall determine whether the conditions
precedent set forth in Sections 5.01 and 5.02 are satisfied or
waived (in which case, for the avoidance of doubt, the assigning Class A
Equity Investor shall be released from any and all liability arising on or
after the date of such assignment with respect to the portion of its interest
so assigned); provided  that any assignment by any Class A
Equity Investor shall include among the obligations assigned the obligation to
make no less than a ten million dollar ($10,000,000) Class A Capital
Commitment to the Company and the Approved Investor assignee shall execute and
deliver an assignment and assumption agreement, assuming all obligations
relating to the rights assigned and confirming compliance with the matters
referred to in (C)

 

57

 

above, substantially
in the form of Annex 27 or otherwise in form and substance reasonably
acceptable to the Company, the Equity Investors and, so long as there are any
Debt Obligations, the required Lenders; and provided, further, that
in no event shall such Approved Investor assignee be a Person (or any Affiliate
thereof) engaged in the development, ownership or operation (other than as a
tax equity or other financial investor) of any wind power electric energy
generation facility.  Notwithstanding
anything to the contrary, none of the Class A Equity Investors shall at
any time assign any of its rights and obligations under this Agreement to any
Disqualified Transferee or Related Party. 
Following an assignment by a Class A Equity Investor in accordance
with Section 6.05(a)(i) or (iv) hereof, Annex 1 shall be
automatically updated pursuant to a notice to be delivered by the assigning Class A
Equity Investor to the Company.

 

(b)           The Company covenants that the
Company shall use its best efforts to make available, upon request of any
holder of Class A Units, to such holder of Class A Units in
connection with any sale thereof and any prospective purchaser of such Class A
Units designated by such holder, the information required by Rule 144A(d)(4) under
the Securities Act in order to permit resales of such Class A Units
pursuant to Rule 144A of the Securities Act.

 

6.06.       Governing
Law. 
This Agreement shall be deemed made and prepared and shall be governed,
construed and interpreted in accordance with the internal laws of the State of
New York, without regard to principles of conflict of laws thereof which may
require the application of the law of another jurisdiction (other than Section 5-1401
of the General Obligations Law of the State of New York).

 

6.07.       Jurisdiction;
Service of Process.  Each of the Parties hereto hereby irrevocably
consents to the non-exclusive jurisdiction of the courts of the State of New
York and of any federal court located therein in connection with any suit,
action or other proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby; agrees to waive any objection to venue in the
State and County of New York; and agrees that, to the extent permitted by law,
service of process in connection with any such proceeding may be effected by
mailing in the same manner provided in Section 6.01.

 

6.08.       Counterparts.  This Agreement may be executed in
counterparts, each of which shall be an original, but each of which, when taken
together, shall constitute one and the same instrument.

 

6.09.       Headings.  The section and paragraph headings contained
in this Agreement are for reference purposes only and shall not affect in any
way the meaning and interpretation of this Agreement.

 

6.10.       Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective only to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, and any such prohibition
or unenforceability in any jurisdiction shall not invalidate or render
unenforceable such provision in any other jurisdiction.  To the extent permitted by Applicable

 

58

 

Laws, the
Parties hereto hereby waive any provision of law which renders any provision
hereof prohibited or unenforceable in any respect.

 

6.11.       Entire
Agreement. 
This Agreement, together with the LLC Agreement and the ACCA,
constitutes the entire understanding of the Parties with respect to the subject
matter hereof, and supersedes all prior statements or agreements, whether oral
or written, among the Parties with respect to such subject matter.

 

6.12.       Confidentiality.

 

(a)           With respect to each Party and its
respective Affiliates, except to the extent necessary for the exercise of such
Party’s rights and remedies, and the performance of its obligations, under this
Agreement, such Party shall not itself use or disclose (and will not permit the
use or disclosure by any of its Affiliates or its advisors, counsel and public
accountants (collectively, “Advisors”
directly or indirectly, any of the Principal Project Documents or information
furnished thereunder (as to the Class A Equity Investors and their
Affiliates only), or this Agreement or information furnished hereunder, or any
notes, analyses or studies prepared by any such Party, its Affiliates or its
Advisors, and shall keep such information confidential and not use it in any
way other than in connection with the transactions contemplated hereby; provided
that (i) any such Party, its Affiliates and its Advisors may use, retain
and disclose any such information to its special counsel and public accountants
or any Governmental Authority; (ii) any such Party, its Affiliates and its
Advisors may use, retain and disclose any such information that (A) is or
becomes generally available to the public other than as a result of a
disclosure in violation of this Agreement, or (B) was provided or becomes
available from a source other than a Party hereto or a Person acting on such
other Party’s behalf, (iii) to the extent that any such Party, its
Affiliates or its Advisors may have received a subpoena or other written demand
under color of legal right for such information, such Party or such Affiliate
or Advisor may disclose such information, but such Party shall (1) as soon
as practicable upon receipt of such demand, furnish a copy thereof to the other
Parties and, if practicable and so long as such Party shall not be in violation
of such subpoena or demand or reasonably likely to become liable to any penalty
or sanctions thereunder, afford the other Parties reasonable opportunity, at
any other Party’s cost and expense, to obtain a protective order or other
reasonably satisfactory assurance of confidential treatment for the information
required to be disclosed, (2) cooperate with such other Party to obtain an
appropriate protective order or other reasonably satisfactory assurance of
confidential treatment, and (3) disclose only that portion of such
information that its counsel advises is legally required to be disclosed; (iv) disclosures
to lenders, potential lenders or other Persons providing financing to the
Company or any member in the Company and potential purchasers of equity
interests in the Company, if such Persons have agreed to abide by the terms of
this Section 6.12; (v) any such Party and its Advisors may
disclose any such information, and make such filings, as may be required by
this Agreement or the Principal Project Documents; (vi) any such Party and
its Affiliates and Advisors may disclose information relating to the Wind Farms
(but not information relating to a member’s equity investment in the Company)
to lenders, potential lenders or other Persons providing financing to any
Person developing or proposing to develop the remaining phases of the Wind
Farms and potential purchasers of equity interests in such Person if such
Persons have agreed to the terms of this Section 6.12; (vii) any
such Party may disclose such information to the IRS or any state taxing authority
in connection with any communication regarding the Tax consequences of the Wind
Farms, each Project Company’s

 

59

 

ownership and operation of the relevant Wind Farm or
such Party’s ownership of an interest in the Company, and (viii) any such
Party that is an insurance company or an Affiliate thereof may disclose such
information to the National Association of Insurance Commissioners and any
rating agency requiring access to its investment portfolio.  Notwithstanding anything herein to the
contrary, a Party may disclose information to its Affiliates and other Advisors
in accordance with this Agreement if such Persons have agreed to the terms of
this Section 6.12.

 

Notwithstanding anything to the contrary, the
foregoing obligations shall not apply to the Tax treatment or Tax structure of
any transaction contemplated by this Agreement (a “Transaction”)
and each Party (and any employee, representative, or agent of any Party) may
disclose to any and all Persons, without limitation of any kind, the Tax
treatment and Tax structure of the Transactions and all other materials of any
kind (including opinions or other Tax analyses) that are provided to any Party
to the extent relating to such Tax treatment and Tax structure.  This Section 6.120 is intended to
prevent the Transactions, including an investment in the Company, from being
treated as a “reportable transaction” as a result of it being a transaction
offered to a taxpayer under conditions of confidentiality within the meaning of
Code sections 6011, 6111 and 6112 (or any successor provision) and the Treasury
Regulations thereunder (as clarified by Notice 2004-80 and Notice 2005-22), and
shall be construed in a manner consistent with such purpose.

 

6.13.       Expenses.  Transaction Expenses incurred (a) through
the Initial Equity Capital Contribution Date, and (b) following the
Initial Equity Capital Contribution Date through the Final Equity Capital
Contribution Date, will be paid, if due and owing on or before such date and an
invoice therefor has been timely received (provided that an invoice for legal
expenses shall mean a reasonable amount of time prior to the requested date of
payment, and for all other expenses shall mean at least thirty (30) days
prior to the requested date of payment), by Noble Holdco or an Affiliate
thereof and reimbursed as provided in Section 5.02(z); provided
that Noble Holdco or an Affiliate thereof shall pay for all Transaction
Expenses incurred after the Execution Date if any of the conditions precedent
in Section 5.02 has failed to be satisfied or waived by each of the
Equity Investors.  The Class A
Equity Investors will not be responsible for paying any fees, costs or expenses
incurred by the Equity Investors.  Such
amounts shall be paid no later than thirty (30) days after the submission of
the relevant invoice by any Class A Equity Investor to Noble Holdco or an
Affiliate thereof.

 

6.14.       Further Assurances.  Each Party hereto covenants and agrees 
promptly to execute, deliver, file, or record such agreements,
instruments, certificates and other documents and to do and perform such other
and further acts and things as any other Party hereto may reasonably request or
as otherwise may be necessary or proper to consummate the transactions contemplated
hereby and to carry out the provisions of this Agreement. For the avoidance of
doubt, each Equity Investor shall use commercially reasonable efforts to assist
the Company in promptly providing any information necessary for any required or
prudent regulatory filings and approvals, including such information about
activities of such Equity Investor and its Affiliates (including filings with
the Federal Energy Regulatory Commission under Sections 203, 204 and 205 of the
Federal Power Act).

 

6.15.       LIMITATION
OF LIABILITY.  NO PARTY SHALL BE LIABLE (WHETHER IN
CONTRACT, TORT, STRICT LIABILITY, EQUITY, OR OTHERWISE)

 

60

 

FOR ANY
SPECIAL, INDIRECT, PUNITIVE, EXEMPLARY, INCIDENTAL OR CONSEQUENTIAL DAMAGES,
WHETHER OR NOT FORESEEABLE, INCLUDING LOST PROFITS AND ANY OTHER DAMAGES WHICH
CANNOT BE READILY ASCERTAINED AND QUANTIFIED, FOR ANY ACTION OR CLAIM BASED ON,
RELATING TO, OR ARISING OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.  THE OBLIGATIONS OF THE PARTIES UNDER THIS
AGREEMENT ARE OBLIGATIONS OF THE PARTIES ONLY, AND NO RECOURSE SHALL BE
AVAILABLE UNDER THIS AGREEMENT AGAINST ANY OFFICER, DIRECTOR, MANAGER, MEMBER,
PARTNER, OR AFFILIATE OF ANY PARTY; PROVIDED, TO THE EXTENT THERE IS A LOSS OR
DISALLOWANCE OF OR INABILITY TO CLAIM PTCs AS A RESULT OF A BREACH OF
REPRESENTATIONS OR WARRANTIES SET FORTH IN THIS AGREEMENT, THE VALUE OF SUCH
LOST PTCs SHALL NOT CONSTITUTE CONSEQUENTIAL DAMAGES, WHETHER OR NOT THE
UNDERLYING LOSS OF PRODUCTION CONSTITUTES CONSEQUENTIAL DAMAGES FOR WHICH NO
RECOVERY HEREUNDER IS PERMITTED.

 

6.16.       Guaranty
Payments. 
Any payment on a guaranty which
supports an Equity Investor’s obligations to fund its Equity Capital Commitment
shall reduce the amount of such commitment by the amount of such payment.

 

6.17.       WAIVER OF
JURY TRIAL.  EACH PARTY HERETO HEREBY
WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.

 

6.18.       Acknowledgment.  Each Class A Equity Investor acknowledges that (a) it, either
alone or together with any Persons it has retained to advise it with respect to
the transactions contemplated hereby, has knowledge and experience in
transactions of this type and in the business of the Company and the Project
Companies and is therefore capable of evaluating the risks and merits of
acquiring the membership interests in the Company and (b) none of the Class B
Equity Investor, the Company, any Project Company, or any of their respective
representatives has given any investment, legal or other advice or rendered any
opinion as to whether the purchase of the membership interests in the Company
is prudent.

 

6.19.       Disclosure.
Each Equity
Investor may, at its option, include in the Annexes items that are not material
in order to avoid any misunderstanding, and any such inclusion, or any
references to dollar amounts, shall not be deemed to be an acknowledgment or
representation that such items are material, to establish any standard of
materiality or to define further the meaning of such terms for purposes of this
Agreement.  Information disclosed in the
Annexes shall constitute a disclosure for all purposes under this Agreement
notwithstanding any reference to a specific section, and all such information
shall be deemed to qualify the entire Agreement and not just a section.

 

(b)           The Class B
Equity Investor and/or the Company may amend any of
Annexes 3, 4-A, 4-B, 5, 8-A, 8-B, 8-C, 8-D, 14, 18, 19, 21, 22 and 24 and
disclose any additional facts arising prior to an Equity Capital Contribution
Date by providing to each Class A Equity

 

61

 

Investor a written copy of such proposed amendment to
such Annexes or additional disclosure that would affect any representation and
warranty prior to an Equity Capital Contribution Date (an “Update”);
provided that with respect to any additional facts that arose prior to the
Execution Date, the Class B Equity Investor and/or the Company shall have
the right to provide an Update with respect to such additional facts only to
the extent that the Class B Equity Investor and/or the Company had no
Knowledge of any such additional facts and could not have reasonably had
Knowledge of such additional facts after due inquiry, in each case prior to the
Execution Date.  Each Update shall
contain a reasonably detailed description of such additional facts, together
with a complete and correct copy of any related change in any Annex or other
disclosure pursuant to this Agreement, which together shall be reasonably
sufficient for each Class A Equity Investor to determine the effect of
such Update on the representations and warranties set forth in Article 3
of this Agreement.  Each Class A
Equity Investor shall have fifteen (15) Business Days following the receipt by
all Class A Equity Investors of an Update (the “Update
Review Period”) to review such Update; provided that if an Update is
furnished to the Class A Equity Investors less than fifteen (15) Business
Days prior to an Equity Capital Contribution Date, such Equity Capital
Contribution Date shall be delayed until the end of the Update Review
Period.  If any Class A Equity
Investor determines that all or any portion of an Update is material and such Class A
Equity Investor chooses not to waive such determination, such Class A
Equity Investor shall provide notice of such fact to the Class B Equity
Investor and the Company during the Update Review Period and may, in its sole
discretion, elect not to make its Equity Capital Contribution due to the
failure of the Class B Equity Investor or the Company to satisfy the
condition precedent in Section 5.02(d).  In the event that any Class A Equity
Investor (i) does not respond with its determination that an Update is
either material or immaterial within the Update Review Period, (ii) determines
that an Update is immaterial, or (iii) determines that an Update is
material but chooses to waive such determination, the Update shall be deemed to
have amended this Agreement with respect to such Class A Equity Investor,
and such Update shall be effective for all purposes with respect to such Class A
Equity Investor.

 

(c)           With respect to the period prior to
the Final Equity Capital Contribution Date, the Class B Equity Investor
and the Company
each hereby covenants and agrees (and the Class B Equity
Investor hereby
covenants and agrees that it shall cause the Company to comply with this Section 6.19(c))
that as and to the extent it becomes aware of any information that, unless
reflected in the Annexes or otherwise, would cause any representation or
warranty with respect to the Class B Equity Investor, the Company or any of
the Project Companies contained in this Agreement to be inaccurate in any
material respect, the Class B Equity Investor or the Company shall
promptly provide the Class A Equity Investors with an Update.

 

6.20.       Removal
of Project Company. If any one of the Wind Farms is delayed such
that 90% of the total number of Wind Turbines associated with such Wind Farm
have not achieved Substantial Completion by March 31, 2009, the Class B
Equity Investor may elect to remove the relevant Project Company (the “Removed Project Company”) from the transactions described
herein prior to the Initial Equity Capital Contribution Date (the “Removal”).  In such
event, the Class B Equity Investor shall notify each Class A Equity Investor of such
election no less than thirty (30) Business Days prior to the proposed effective
date of the Removal.  All transactions
and documents concerning the Removal shall be subject to the consent of each Class A
Equity Investor, not to be unreasonably withheld, including with respect to the
following provisions:

 

62

 

(a)           The Company shall
transfer all of its interest in the Removed Project Company to an Affiliate not
owned by the Company;

 

(b)           References herein to
“Project Companies” shall exclude the Removed Project Company;

 

(c)           References herein to
“Wind Farms” shall exclude the Wind Farm owned by the Removed Project Company;

 

(d)           References herein to
“Wind Farm Sites” shall exclude the Wind Farm Site associated with the Removed
Project Company;

 

(e)           References herein to
“EPC Contracts,” “O&M Contracts,” “Project Administration Agreements” and
“Interconnection Agreements” shall exclude the applicable contract associated
with the Removed Project Company;

 

(f)            Annex 1, Annex 2,
Annex 3-A, Annex 3-B, Annex 3-C, Annex 3-D, Annex 3-E, Annex 3-F, Annex 4-A,
Annex 5, Annex 6, Annex 7, Annex 9, Annex 13, Annex 15-A, Annex 15-B, Annex
15-C, Annex 15-D, Annex 15-E, Annex 15-F, Annex 15-G, Annex 15-H, Annex 18,
Annex 19, Annex 21, Annex 22, and Annex 24 shall be modified to reflect the
exclusion of the Removed Project Company;

 

(g)           The number of Wind
Turbines referenced in clause (ii) of the definition of “Final Equity
Capital Contribution Date” shall exclude the total number of Wind Turbines
associated with the Removed Project Company;

 

(h)           The number of Wind
Turbines referenced in the definition of “Wind Turbines” shall exclude the
total number of Wind Turbines associated with the Removed Project Company;

 

(i)            The number of Wind
Turbines referenced in Section 5.02(a)(i)(A)(1) shall be modified to
exclude 90% of the total number of Wind Turbines associated with the Removed
Project Company;

 

(j)            The Debt Financing
Documents shall be amended to reflect the Removal, including an appropriate
reallocation of the Debt Obligations and appropriate revisions to the security
documents; and

 

(k)           From
time to time as reasonably requested by the Class B Equity Investor, the Class A
Equity Investors shall take such steps as may be necessary to effectuate the
intent of this Section 6.20.

 

[Signature pages follow]

 

63

 

IN WITNESS WHEREOF, the Parties have caused this
Membership Interest Purchase and Equity Capital Contribution Agreement to be
executed and delivered by their duly authorized officers as of the date first
above written.

 

 

	
   

  	
  EFS NOBLE II, LLC

  
	
   

  	
   

  
	
   

  	
  By:
  Aircraft Services Corporation,

  
	
   

  	
  Its
  Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Vihang Dholakia

  
	
   

  	
   

  	
  Name:
  Vihang Dholakia

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

64

 

IN WITNESS WHEREOF, the Parties have caused this Membership
Interest Purchase and Equity Capital Contribution Agreement to be executed and
delivered by their duly authorized officers as of the date first above written.

 

 

	
   

  	
  GE CAPITAL MARKETS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Donald B. Kyle

  
	
   

  	
   

  	
  Name:
  Donald B. Kyle

  
	
   

  	
   

  	
  Title:
  Managing Director

  

 

 

IN WITNESS WHEREOF, the Parties have caused this
Membership Interest Purchase and Equity Capital Contribution Agreement to be
executed and delivered by their duly authorized officers as of the date first
above written.

 

 

	
   

  	
  NOBLE
  ENVIRONMENTAL POWER 2008

  HOLD CO., LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Christopher Lowe

  
	
   

  	
   

  	
  Name:
  Christopher Lowe

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

2

 

IN WITNESS WHEREOF, the Parties have caused this
Membership Interest Purchase and Equity Capital Contribution Agreement to be
executed and delivered by their duly authorized officers as of the date first
above written.

 

 

	
   

  	
  NOBLE
  ENVIRONMENTAL POWER 2008

  HOLD CO. PRIME, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Christopher Lowe

  
	
   

  	
   

  	
  Name:
  Christopher Lowe

  
	
   

  	
   

  	
  Title:
  Vice President

  

 

3Exhibit 10.40(b)

 

CONFIDENTIAL
TREATMENT HAS BEEN REQUESTED FOR THE REDACTED PORTIONS OF THIS AGREEMENT. THE REDACTIONS ARE
INDICATED WITH THREE ASTERISKS (“***”). A COMPLETE VERSION OF THIS AGREEMENT
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

ADDITIONAL
CAPITAL CONTRIBUTION AGREEMENT

 

This ADDITIONAL CAPITAL CONTRIBUTION
AGREEMENT, dated as of June 30,
2008 (this “Agreement”), is entered into by and between
EFS Noble II, LLC, a Delaware
limited liability company (“EFS Noble II”),
GE Capital Markets, Inc., a Delaware corporation (“GECM”,
and together with EFS Noble II, the “Contributing
Members”), Noble Environmental Power 2008 Hold Co., LLC, a Delaware
limited liability company (the “Company”),
and Noble Environmental Power 2008 Hold Co. Prime, LLC, a Delaware limited
liability company (“Noble Holdco”).  Each Class A Equity Investor (as defined
below), the Company and Noble Holdco is referred to herein, individually, as a
“Party” and, collectively, as the
“Parties”.

 

RECITALS

 

A.            WHEREAS,
pursuant to the Membership Interest Purchase and Equity Capital Contribution
Agreement of even date herewith, by and among the Contributing Members, the
Company and Noble Holdco (the “Contribution
Agreement”), the Class A Equity Investors will acquire from the
Company certain Class A Units (as defined therein); and

 

B.            WHEREAS,
the Parties desire to enter into this Agreement to set forth their agreement
regarding certain capital contributions to be made by the Class A Equity
Investors to the Company.

 

NOW, THEREFORE, in consideration of the
mutual agreements herein contained and other good and valuable consideration,
receipt of which is hereby acknowledged, the Parties agree as follows:

 

ARTICLE 1

DEFINITIONS AND INTERPRETATIONS

 

1.01.       Definitions.  Capitalized
terms used herein and not otherwise defined have the meanings set forth in the
Contribution Agreement, and the rules of interpretation set forth in the
Contribution Agreement shall apply to this Agreement as if set forth
herein.  The following terms shall have
the following meanings:

 

“Acceptable
Power Purchaser” means NYISO, any Person purchasing power in the
bid-based markets administered by NYISO, or any other Person that is an
“unrelated person” to the Company within the meaning of Code Section 45(a)(2)(B);
provided that Noble Holdco shall not be an Acceptable Power Purchaser.

 

“Additional
Capital Contribution” has the meaning set forth in Section 3.01.

 

 

 “Capital Contribution” has the meaning set
forth in the LLC Agreement.

 

“Cash Recoupment
Amount” has the meaning set forth in the LLC Agreement.

 

“Class A
Member” has the meaning set forth in the LLC Agreement.

 

“Collateral
Documents” has the meaning set forth in the Financing Agreement.

 

“Contingent
Quarterly Contribution Amount” means, with respect to any Fiscal
Quarter or applicable portion thereof, an amount (expressed in dollars) equal
to the lesser of:

 

(a)           (1) the sum of the following:

 

(i)            with respect to Eligible Wind
Turbines not subject to a Modified PTC Extension, the product of ***% and the
amount of PTCs generated for such Fiscal Quarter or applicable portion thereof
from any such Eligible Wind Turbines; and

 

(ii)           with respect to Eligible Wind
Turbines subject to a Modified PTC Extension, the product of ***% and the
amount of PTCs generated for such Fiscal Quarter or applicable portion thereof
from any such Eligible Wind Turbines; minus

 

(2) the
Fixed Quarterly Contribution Amount for such Fiscal Quarter or applicable
portion thereof; and

 

(b)           the Remaining Contingent Quarterly
Contribution Limit.

 

“Contribution
Invoice” has the meaning set forth in Section 3.02.

 

“Contribution Period”
means the period beginning on the Initial Equity Capital Contribution Date and
ending on the date that the PTC Periods with respect to all Eligible Wind
Turbines have expired.

 

“Cumulative Contingent Quarterly Contribution
Amount” means an amount (expressed in dollars) equal
to the sum of (a) the Second Equity Capital Contribution, if any, and (b) the
portion of all Additional Capital Contributions attributable to Contingent
Quarterly Contribution Amounts that have been made for all prior Fiscal
Quarters or applicable portions thereof.

 

 “Eligible Wind Turbine” means, with respect
to any Fiscal Quarter or applicable portion thereof, a Wind Turbine that has
achieved Turbine Substantial Completion with respect to which PTCs are
available for the production and sale of electricity therefrom as of the date
of the Equity Capital Contribution related to such Wind Turbine (pursuant to
Code Section 45 as in effect on the date hereof or a PTC Extension or a
Modified PTC Extension, as the case may be), and with respect to which the
Company (directly or indirectly through any Project Company) is the owner (or
is treated as the owner of such Wind Turbine for federal income tax purposes).

 

 

“Fixed
Quarterly Contribution Amount” means the Fixed Quarterly
Contribution Amount as defined in, and calculated pursuant to the methodology
set forth in, Schedule A attached hereto.

 

“kWh”
means kilowatt per hour of electricity.

 

“Modified Cash Flip Trigger Amount” has
the meaning set forth in the LLC Agreement.

 

“Modified PTC
Extension” means an amendment, renewal, modification
or change to Code Section 45 (or any successor provision if Code Section 45
is redesignated) that (a) is enacted before January 1, 2010, (b) changes
the date specified in Code Section 45(d)(1) (as in effect on the
Execution Date) before which a facility using wind to produce electricity must
be originally placed in service in order to constitute a “qualified facility”
(within the meaning of Code Sections 45(d)(1) and 45(a)(2)(A)(ii) or
any successor provision if Code Section 45 is redesignated), from January 1,
2009, to January 1, 2010, or some later date and (c) changes one or
more of the following in the manner specified: 
(1) the tax credit rate specified in Code Section 45(a)(1) (as
in effect on the Execution Date) is changed to a different amount (whether such
amount is higher or lower), (2) the tax credit period specified in Code Section 45(a)(2)(A)(ii) (as
in effect on the Execution Date) is changed to a period of a different duration
(e.g., 10 years is changed to 5 years), (3) the inflation adjustment
specified in Code Section 45(b)(2) (as in effect on the Execution
Date) is eliminated or changed to a different inflation adjustment, (4) the
total amount of PTCs is capped to a percentage of the eligible basis of the
qualified facility, or (5) any other change in Code Section 45 (as in
effect on the Execution Date) (or any successor provision if Code Section 45
is redesignated) that extends or renews the availability of PTCs for a wind
facility originally placed in service after December 31, 2008, that is not
a PTC Extension, that is quantifiable and that can be incorporated in the Base
Case Model in order to compute the Cash Recoupment Amount and the Modified Cash
Flip Trigger Date (as such terms are defined in the form of LLC Agreement
attached as Annex 2 to the Contribution Agreement); provided, however,
for the avoidance of doubt, with respect to clauses (1) through (5) of
this definition, (i) such amendment, renewal, modification or change makes
no other changes to Code Section 45 (or any successor provision if Code Section 45
is redesignated) that will have an impact on the availability of PTCs to the Class A
Equity Investors and (ii) the amount and timing of PTCs under such
amendment, renewal, modification or change can be determined by making no other
assumptions other than with respect to the “GDP implicit price deflator”
(within the meaning of Code Section 45(e)(2)(B) as in effect on the
Execution Date).

 

“PTC
Extension” means an amendment, renewal, modification or change to
Code Section 45 that (a) is enacted before January 1, 2010, (b) changes
the date currently specified in Code Section 45(a)(1) before which a
facility using wind to produce electricity must be originally placed in service
in order to constitute a “qualified facility” (within the meaning of current
Code Sections 45(d)(1) and 45(a)(2)(A)(ii)), from January 1, 2009, to
January 1, 2010 or some later date and (c) allows PTCs beginning on
the date such wind facility is originally placed in service (rather than the
effective date of such amendment, modification or change, if such effective
date is later); provided, such amendment, modification or change makes no other
changes that would adversely affect (as determined in the reasonable discretion
of the Majority of the Class A Members and the Class B Member) the
availability or amount of PTCs, such that 

 

 

PTCs will be
allowed with respect to a wind facility placed in service after December 31,
2008, and before January 1, 2010, on the same terms (including, for
example, the tax credit rate currently specified in Code Section 45(a)(1),
the tax credit period currently specified in Code Section 45(a)(2)(A)(ii),
and the inflation adjustment currently specified in Code Section 45(b)(2))
as under Code Section 45 as in effect as on the Execution Date (as defined
in the Contribution Agreement) for wind turbines placed in service before January 1,
2009.

 

“PTC Period”
means, with respect to any Eligible Wind Turbine, the ten year period (or, in
the case of an Eligible Wind Turbine that qualifies for PTCs pursuant to a
Modified PTC Extension that shortens the tax credit period specified in Code Section 45(a)(2)(A)(ii) (as
in effect on the Execution Date), such shorter period) beginning on the date
that such Wind Turbine has achieved Turbine Substantial Completion.

 

“Quarterly
Contribution Amount” means the sum of the Fixed Quarterly
Contribution Amount and the Contingent Quarterly Contribution Amount.

 

“Related
Party” has the meaning set forth in the LLC Agreement.

 

“Remaining Contingent Quarterly Contribution Limit”
means, with respect to any Fiscal Quarter or applicable portion thereof, an
amount (expressed in dollars) equal to (a) the product of (1) ***%
and (2) the Total Fixed Contribution Amount divided by ***%, minus (b) the
Cumulative Contingent Quarterly Contribution Amount.

 

“Revised
Additional Contribution” has the meaning set forth in Section 3.03.

 

“Revised
Contribution Invoice” has the meaning set forth in Section 3.03.

 

“Revised
Invoice” has the meaning set forth in Section 3.03.

 

“Total Fixed Contribution Amount”
means an amount (expressed in dollars) equal to the sum of (a) the Initial
Equity Capital Contribution and (b) the aggregate amount of all Fixed
Quarterly Contribution Amounts.

 

“Turbine
Substantial Completion” has the meaning set forth in the LLC
Agreement.

 

ARTICLE 2

REPRESENTATIONS AND WARRANTIES

 

2.01.       Representations
and Warranties.  Each Class A
Equity Investor hereby represents and warrants to the Company and to Noble
Holdco as of the date hereof, on the Initial Equity Capital Contribution Date,
and, with respect to any Person hereafter admitted as a Class A Equity
Investor that accedes and becomes a Party to this Agreement pursuant to Section 6.04
hereof, such Person represents and warrants to the Company and Noble Holdco as
of the date such Person becomes a Party hereto:

 

(a)           Organization and Good Standing.  It is duly organized, validly existing and in
good standing under the laws of its state of formation, with full power and
authority to carry on its business as such business is now conducted.

 

 

(b)           Authorization, Execution and Enforceability.  It has full corporate, limited liability
company, general partnership or limited partnership power and authority, as
applicable, to execute and deliver this Agreement, to make its respective
Additional Capital Contributions and to consummate the transactions
contemplated hereunder.  The execution
and delivery by it of this Agreement, and the consummation by it of the
transactions contemplated hereunder, have been duly authorized by all necessary
corporate, limited liability company, general partnership or limited
partnership action, as applicable.  This
Agreement has been duly executed and delivered by it.  This Agreement constitutes a valid and
binding obligation, enforceable against it in accordance with its terms except
as such enforceability may be limited by (i) bankruptcy, insolvency or
similar laws affecting creditors’ rights generally or (ii) general
principles of equity, whether considered in a proceeding in equity or at law.

 

(c)           Legal Proceedings.  There is no action, claim, suit,
investigation or proceeding (including, but not limited to, any arbitration
proceeding) of any nature, at law or in equity, pending or, to its Knowledge,
threatened by or against it, its directors, officers, employees, agents of it,
or any of its Affiliates involving, affecting or relating to the transactions
contemplated hereunder or, when executed and delivered, the LLC Agreement, or
its ability to complete the transactions contemplated hereunder or
thereunder.  It is not subject to any
order, writ, judgment, award, injunction or decree of any Governmental
Authority or arbitral body involving, affecting or relating to the transactions
contemplated hereunder or, when executed and delivered, the LLC Agreement, or
its ability to complete the transactions contemplated hereunder or thereunder.

 

(d)           No Violation. 
The execution, delivery and performance by it of this Agreement and,
when executed and delivered, the LLC Agreement, and the consummation by it of
the transactions contemplated hereunder or thereunder do not and will not: (i) violate
or conflict with any provision of its Charter Documents; (ii) violate any
Applicable Law (it being understood that no representation is made as to any rules or
regulations of FERC); (iii) violate in any material respect, result in a
material breach of, constitute (with due notice or lapse of time or both) a
material default, or result in an Encumbrance being created or imposed upon any
of its properties or Assets, under any material contract to which it is a party
or by which its property is bound, which material violation, material breach,
material default or Encumbrance would adversely affect its ability to perform
its obligations under this Agreement or, when executed and delivered, the LLC
Agreement; (iv) impose any adverse impact on the ability of any Project Company
to comply with the Federal Power Act as it exists as of the date hereof
(including maintaining compliance with FERC’s market-based rate authority
requirements); or (v) cause any Project Company, Noble Holdco or the
Company not to be entitled to the exemptions from regulation afforded to an EWG
or a “holding company”, as such term is defined in PUHCA, of one or more EWGs
that is a “holding company” solely by virtue of its ownership interests in one
or more EWGs.

 

(e)           Governmental Approvals.  No Governmental Approval is required to be
obtained or made by it for the execution, delivery and performance by it of
this Agreement or, when executed and delivered, the LLC Agreement, or the
consummation of the transactions contemplated hereby or thereby, other than any
Governmental Approvals that have been obtained or made or that may be required
to be obtained or made at a future date, which future Governmental Approvals
could reasonably be expected to be obtained as and when required.

 

 

(f)            Class A Investment Intent; Unregistered Securities.  The Class A Units to be held by it will
be acquired for investment for its own account, except as stated in the proviso
to this sentence, not with a view to the distribution of any part thereof, and,
without in any way affecting its right to dispose of its Class A Units as
permitted by the LLC Agreement, it has no present intention of selling,
granting any participation in, or otherwise distributing the same; provided,
however, that the Class A Equity Investor may have an agreement or present
intention to assign all or a portion of its rights and obligations under this
Agreement to one or more Approved Investors in accordance with the provisions
of Section 6.05(d) of the Contribution Agreement.  It understands that the Class A Units
are characterized as a “restricted security” under federal and state securities
laws inasmuch as such securities are being acquired in a transaction
contemplated hereunder not involving a public offering and that under such laws
and applicable regulations such securities may not be resold in the absence of
an effective registration statement covering the Class A Units or an
exemption from registration under federal and state securities laws.

 

(g)           Accredited Investor.  It is an “accredited investor” as defined in Rule 501(a)(1),
(2), (3) or (7) of Regulation D promulgated under the Securities Act
of 1933, as amended.  It has such
knowledge and experience in financial and business matters that it is capable
of independently evaluating the risks and merits of purchasing the Class A
Units; it has independently evaluated the risks and merits of purchasing the Class A
Units and has independently determined that the Class A Units are a
suitable investment for it; and it has sufficient financial resources to bear
the loss of its entire investment in the Class A Units.

 

(h)           United States Person.  It (or if it is a disregarded entity, its
owner) is a United States person not subject to withholding under Code Section 1446.

 

(i)            No Other Representations.  It is not relying on any representations or
warranties whatsoever, express, implied, at common law, statutory or otherwise,
by the Company, any Project Company, Noble Holdco, or any Guarantor except for
the representations or warranties made for its benefit and expressly set out in
the Contribution Agreement and, when executed and delivered, the LLC Agreement
and any certificate delivered in connection with any of the foregoing.

 

(j)            Brokers. 
No broker, finder, investment banker, or other Person is entitled to any
brokerage, finder’s or other fee or commission in connection with the
transactions contemplated hereunder, based upon arrangements made by or on
behalf of it, for which Noble Holdco, the Company or any Project Company will
be responsible.

 

(k)           Participation in NYISO.  Neither it (nor any of its Affiliates)
purchases electric energy through the wholesale market operated under the
oversight of NYISO.

 

ARTICLE 3

ADDITIONAL CAPITAL CONTRIBUTIONS

 

3.01.       Obligation.

 

(a)           In accordance with the payment terms
and procedures set forth in this Article 3, with respect to each
Fiscal Quarter ending during the Contribution Period and the 

 

 

portion of the Fiscal Quarter
at the end of the Contribution Period, each Class A Equity Investor shall
make a cash capital contribution (each, an “Additional
Capital Contribution”) to the Company in an amount (expressed in
dollars) equal (i) to the Quarterly Contribution Amount for such Fiscal
Quarter (or portion of a Fiscal Quarter in the case of the first and last
Fiscal Quarters during the Contribution Period) multiplied by (ii) a fraction, the numerator of which
is the number of Class A Units held by such Class A Equity Investor
at the end of such Fiscal Quarter or portion of such Fiscal Quarter, as
applicable, and the denominator of which is the total number of Class A
Units issued and outstanding as of the end of such Fiscal Quarter or portion of
such Fiscal Quarter, as applicable.

 

(b)           If, at any time during the
Contribution Period, a Class A Equity Investor or its Affiliate (as
defined in the LLC Agreement) becomes a Related Party and fails to comply with
its obligations under Section 6.06 of the LLC Agreement and the Managing
Member has complied with its obligations under Section 6.06(a) and (b) of
the LLC Agreement, the Additional Capital Contributions shall be adjusted as
provided in Section 6.06(d) of the LLC Agreement.  If,
at any time during the Contribution Period, a Class A Member becomes a
Related Party as a result of the Managing Member failing to comply with its obligations
under Section 6.06(a) or (b) of the LLC Agreement, then the
portion of the Additional Capital Contributions reflecting the Contingent
Quarterly Contribution Amount shall be reduced to the extent that the failure
to qualify for PTCs is due to such Class A Member becoming a Related Party
and shall be further reduced in accordance with Section 6.06(d)(ii) of
the LLC Agreement.

 

(c)           The obligation of each Class A
Equity Investor to make Additional Capital Contributions shall be terminated on
the earliest to occur of:  (i) the
last day of the Contribution Period (provided that any Class A Equity
Investor shall remain obligated with respect to any Additional Capital
Contribution with respect to a Fiscal Quarter or portion thereof that has
accrued prior to the last day of the Contribution Period in connection with
such Class A Equity Investor’s Class A Units); (ii) the date
title to all of the Class A Units is transferred from the Class A
Member to the Administrative Agent or its designee pursuant to the exercise of
remedies under the Equity Support Member Pledge Agreement or otherwise; and (iii) the
date that the Flip Point (as defined in the LLC Agreement) occurs provided that
the obligation to make Additional Capital Contributions shall not terminate by
reason of this clause (iii) until the date the Debt Obligations under the
Debt Financing Documents have been repaid in full.

 

3.02.       Payment.  The Company shall calculate the Additional
Capital Contribution owed by the Class A Equity Investors with respect to
each Fiscal Quarter or applicable portion thereof and shall submit an invoice
for such amount (a “Contribution Invoice”)
to the Class A Equity Investors within ten (10) Business Days of the
end of such Fiscal Quarter or applicable portion thereof (or as soon as
reasonably practicable after receipt by the Company of the NYISO production
statements with respect to the relevant period).  Each Contribution Invoice shall include
supporting materials reasonably satisfactory to the Class A Equity
Investors evidencing the following information for the Fiscal Quarter or
applicable portion thereof: the total number of kWhs produced by the Wind
Turbines and sold by the Project Companies to Acceptable Power Purchasers and
the number of Wind Turbines and Eligible Wind Turbines.  Within thirty (30) days after its receipt of
a Contribution Invoice, each Class A Equity Investor shall make such
Additional Capital Contribution in immediately available funds to the Company.

 

 

3.03.       Adjustment.  If the Company or a Project Company receives
an amended, revised or otherwise modified invoice or other written notice from
an Acceptable Power Purchaser (a “Revised
Invoice”) indicating that such Acceptable Power Purchaser has
adjusted (either upward or downward) the number of kWhs that have been
reflected in a Contribution Invoice or any revised Contribution Invoice
previously delivered to the Class A Equity Investors pursuant hereto, or
there is any other revision, adjustment or correction to the total number of
kWhs produced by the Wind Turbines, the number of Wind Turbines or the number
of Eligible Wind Turbines (which revision, adjustment or correction shall be
made by the Company at the same time as, and shall be consistent with, the
actual tax and accounting calculations and reports prepared by or on behalf of
the Company), then, within ten (10) Business Days of its receipt of such
Revised Invoice or other revision, adjustment or correction, the Company shall
recalculate the Contingent Quarterly Contribution Amount for the applicable
Fiscal Quarter or applicable portion thereof and deliver to the Class A
Equity Investors such Revised Invoice together with a revised Contribution
Invoice (the “Revised Contribution Invoice”)
setting forth the revised  Additional
Capital Contribution (the “Revised Additional
Contribution”) for such Fiscal Quarter or applicable portion
thereof.  Each Revised Contribution
Invoice shall include supporting materials reasonably satisfactory to the Class A
Equity Investors evidencing the applicable revisions.  If the Revised Additional Contribution for a
Fiscal Quarter or portion thereof exceeds the Additional Capital Contribution
for such Fiscal Quarter or applicable portion thereof, each Class A Equity
Investor shall increase its Additional Capital Contribution for the subsequent
Fiscal Quarter(s) or applicable portion thereof by the amount of such
excess (relative to the other Class A Equity Investors); provided that
each Class A Equity Investor shall pay its share of such excess (relative
to the other Class A Equity Investors) in immediately available funds to
the Company within ten (10) Business Days after the end of such Fiscal
Quarter or applicable portion thereof if such Fiscal Quarter or applicable
portion thereof is the last one in the Contribution Period.  If the Additional Capital Contribution for
any Fiscal Quarter or applicable portion thereof exceeds the Revised
Contribution Invoice for such Fiscal Quarter or applicable portion thereof and
the Class A Equity Investors have already made their respective Additional
Capital Contributions in accordance with Section 3.02, each Class A
Equity Investor shall be entitled to deduct its share of the amount of such
excess (relative to the other Class A Equity Investors) from its
respective Additional Capital Contributions required for any subsequent Fiscal
Quarter(s) or applicable portion thereof until such excess is paid in
full; provided that the Company shall remit to each Class A Equity
Investor an amount (expressed in dollars) equal to its share of the amount of
such excess (relative to the other Class A Equity Investors) within ten (10) Business
Days after the end of such Fiscal Quarter or applicable portion thereof if such
Fiscal Quarter or applicable portion thereof is the last one in the
Contribution Period.  For the avoidance
of doubt, (a) the Fixed Quarterly Contribution Amounts shall not be
subject to any adjustment under this Section 3.03 and (b) any
adjustment under this Section 3.03 shall be treated as an adjustment to
the Contingent Quarterly Contribution Amounts, which revised amounts shall be
determined by taking into account the Contingent Quarterly Contribution Limit
pursuant to clause (b) of the definition of “Contingent Quarterly
Contribution Amount.”

 

 

ARTICLE 4

ADDITIONAL CAPITAL CONTRIBUTIONS TREATMENT

 

4.01.       Additional
Capital Contributions Treatment.  Each Additional Capital
Contribution made by a Class A Equity Investor pursuant to Article 3
shall be a treated as a Capital Contribution by such Class A Equity
Investor to the Company in the amount of such Additional Capital Contribution
and shall be made to the Operating Account (as defined in the Debt Financing
Documents).

 

ARTICLE 5

 

CONDITIONS PRECEDENT

 

5.01.       Initial
Equity Capital Contribution Date.  The effectiveness of this Agreement is
subject to the occurrence of the Initial Equity Capital Contribution Date
pursuant to the Contribution Agreement.

 

ARTICLE 6

 

MISCELLANEOUS

 

6.01.       Notices.
Except as expressly set forth to the contrary in this Agreement, all notices,
requests or consents provided for or permitted to be given under this Agreement
must be in writing and must be delivered to the recipient in person, by courier
or certified mail, return receipt requested, or by facsimile or other
electronic transmission.  A notice, request
or consent given under this Agreement is effective on receipt by the Party
receiving it; provided that a facsimile or other electronic transmission that
is transmitted after the normal business hours of the recipient shall be deemed
effective on the next Business Day.  All
notices, requests and consents to be sent to a Party must be sent to or made at
the addresses given for that Party below (or to such other Person or address as
a Party may previously have notified all other Parties pursuant to the provisions
of this Section 6.01).  A
copy of any notice, request or consent to the Company must be given to all of
the other Parties.  Whenever any notice
is required to be given by Applicable Law or this Agreement, a written waiver
thereof, signed by the Person entitled to notice, whether before or after the
time stated therein, shall be deemed equivalent to the giving of such
notice.  The names and addresses for the
service of notices referred to in this Section 6.01 are:

 

If to the Company, to:

 

Noble Environmental Power 2008 Hold Co, LLC

c/o Noble Environmental Power, LLC

8 Railroad Avenue

Second Floor, Suite 8

Essex, CT 06426

Attention:  Vice President Asset
Management

Tel:  (860) 581-5010

Fax:  (860) 767-7041

 

 

If to Noble Holdco, to:

 

Noble Environmental Power 2008 Hold Co. Prime, LLC

c/o Noble Environmental Power, LLC

8 Railroad Avenue

Second Floor, Suite 8

Essex, CT 06426

Attention:  Vice President Asset
Management

Tel:  (860) 581-5010

Fax:  (860) 767-7041

 

If to the Class A Equity
Investors, to:

 

EFS
Noble II, LLC

c/o GE Energy Financial Services, Inc.

120 Long Ridge Road

Stamford, CT  06927

Attention:  Portfolio Manager - Noble II

Tel:  (203) 357-4000

Fax:  (203) 357-4501

 

and:

 

GE Capital
Markets, Inc.

3135 Easton Turnpike

Fairfield, CT  06828

Attention:  Donald Kyle

Tel:  (203) 357-3986

Fax:  (203) 357-4897

 

and:

 

The address of
any additional Class A Equity Investor shall be set forth in the relevant
assignment agreement pursuant to which such Class A Equity Investor
becomes a member of the Company.

 

Any Party may change the address or number to which notices to such
Party are to be delivered by providing notice of such change to each other
Party in the manner set forth above.

 

6.02.       No
Third Party Beneficiaries.  Except as specifically provided in Section 6.03,
this Agreement is solely for the benefit of the Parties and their respective
successors and permitted assigns, and this Agreement shall not otherwise be
deemed to confer upon or give to any other third party any right, claim, cause
of action, or other interest herein.

 

6.03.       Amendment
and Waiver. 
Neither this Agreement nor any term hereof may be changed, amended, or
terminated orally, but only by written act of all of the Parties (or, in
respect of a waiver, the waiving Party or Parties) and, so long as there are
any Debt Obligations, 

 

 

the required percentage of
Lenders.  No failure or delay on the part
of a Party hereto in the exercise of any right hereunder shall operate as a
waiver thereof, nor shall any single or partial exercise of any such right
preclude any other or further exercise thereof or of any other right.

 

6.04.       Successors
and Assigns.  This Agreement shall bind and inure to the
benefit of the Parties hereto and their respective successors and legal
representatives and permitted assigns. 
No Party shall assign its rights and obligations under this Agreement
without the prior written consent of the other Parties hereto, and any such
assignment contrary to the terms hereof shall be null and void and of no force
and effect; provided that (a) the Company may assign its rights under this
Agreement to the Lenders as collateral for the obligations of the Company under
the Debt Financing Documents and each other Party shall execute and deliver
consents (in form and substance reasonably satisfactory to each such Party) to
such assignment as may be reasonably requested by the Lenders; and (b) without
the consent of any other Party, any Party may assign its rights and obligations
hereunder in connection with a transfer of its Class A Units or Class B
Units, as applicable, in accordance with the terms and conditions of the LLC
Agreement and the Contribution Agreement.

 

6.05.       Governing
Law. 
This Agreement shall be deemed made and prepared and shall be governed,
construed and interpreted in accordance with the internal laws of the State of
New York, without regard to principles of conflict of laws thereof which may
require the application of the law of another jurisdiction (other than Section 5-1401
of the General Obligations Law of the State of New York).

 

6.06.       Jurisdiction;
Service of Process.  Each of the Parties hereto hereby irrevocably
consents to the non-exclusive jurisdiction of the courts of the State of New
York and of any federal court located therein in connection with any suit, action
or other proceeding arising out of or relating to this Agreement or the
transactions contemplated hereby; agrees to waive any objection to venue in the
State and County of New York; and agrees that, to the extent permitted by law,
service of process in connection with any such proceeding may be effected by
mailing in the same manner provided in Section 6.01.

 

6.07.       Counterparts.  This Agreement may be executed in
counterparts, each of which shall be an original, but each of which, when taken
together, shall constitute one and the same instrument.

 

6.08.       Headings.  The section and paragraph headings contained
in this Agreement are for reference purposes only and shall not affect in any
way the meaning and interpretation of this Agreement.

 

6.09.       Severability.  Any provision of this Agreement that is
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction,
be ineffective only to the extent of such prohibition or unenforceability
without invalidating the remaining provisions hereof, (provided that the
substance of the agreement between the Parties is not thereby materially
altered) and any such prohibition or unenforceability in any jurisdiction shall
not invalidate or render unenforceable such provision in any other
jurisdiction.  To the extent permitted by
Applicable Laws, the Parties hereto hereby waive any provision of law which
renders any provision hereof prohibited or unenforceable in any respect.

 

 

6.10.       Entire
Agreement. 
This Agreement, together with the LLC Agreement, any consent entered
into with the Lenders, any Equity Support Member Pledge Agreement, the
Contribution Agreement, and any Class A Equity Guaranty, constitutes the
entire understanding of the Parties with respect to the subject matter hereof,
and supersedes all prior statements or agreements, whether oral or written,
among the Parties with respect to such subject matter.

 

6.11.       Confidentiality.

 

(a)           This Agreement and any information or
documentation furnished hereunder or pursuant hereto shall be subject to the
confidentiality requirements applicable to the Parties under the Contribution
Agreement, including those set forth in Section 6.14 thereof.

 

(b)           Notwithstanding anything to the
contrary, the foregoing obligations shall not apply to the Tax treatment or Tax
structure of any transaction contemplated by this Agreement (a “Transaction”) and each Party (and any
employee, representative, or agent of any Party) may disclose to any and all
Persons, without limitation of any kind, the Tax treatment and Tax structure of
the Transactions and all other materials of any kind (including opinions or
other Tax analyses) that are provided to any Party to the extent relating to
such Tax treatment and Tax structure. 
This Section 6.11(b) is intended to prevent the Transactions,
including an investment in the Company, from being treated as a “reportable
transaction” as a result of it being a transaction offered to a taxpayer under
conditions of confidentiality within the meaning of Code sections 6011, 6111
and 6112 (or any successor provision) and the Treasury Regulations thereunder
(as clarified by Notice 2004-80 and Notice 2005-22), and shall be construed in
a manner consistent with such purpose.

 

6.12.       Further
Assurances. 
Each
Party hereto covenants and agrees (and, on and prior to the Initial Equity
Capital Contribution Date, Noble Holdco covenants and agrees that it shall
cause the Company) promptly to execute, deliver, file, or record such agreements,
instruments, certificates and other documents and to do and perform such other
and further acts and things as any other Party hereto may reasonably request or
as otherwise may be necessary or proper to consummate the transactions
contemplated hereby and to carry out the provisions of this Agreement.  For the avoidance of doubt, each Equity
Investor shall use commercially reasonable efforts to assist the Company in
providing any information necessary for any required or prudent regulatory
filings and approvals, including such information about activities of such
Equity Investor and its Affiliates (including filings with the Federal Energy
Regulatory Commission under Sections 203, 204 and 205 of the Federal Power Act).

 

6.13.       Limitations
of Liability.  NO PARTY SHALL BE LIABLE (WHETHER IN CONTRACT,
TORT, STRICT LIABILITY, EQUITY OR OTHERWISE) FOR ANY SPECIAL, INDIRECT,
PUNITIVE, EXEMPLARY, INCIDENTAL OR CONSEQUENTIAL DAMAGES, WHETHER OR NOT
FORESEEABLE, INCLUDING LOST PROFITS AND ANY OTHER DAMAGES WHICH CANNOT BE
READILY ASCERTAINED AND QUANTIFIED, FOR ANY ACTION OR CLAIM BASED ON, RELATING
TO, OR ARISING OUT OF THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT.  THE OBLIGATIONS OF THE PARTIES UNDER THIS
AGREEMENT ARE OBLIGATIONS OF THE PARTIES ONLY, AND NO RECOURSE SHALL BE
AVAILABLE UNDER THIS 

 

 

AGREEMENT AGAINST ANY OFFICER,
DIRECTOR, MANAGER, MEMBER, PARTNER, OR AFFILIATE OF ANY PARTY.

 

6.14.       Waiver
of Jury Trial.  EACH PARTY HERETO
HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE
TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING
OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT.  EACH PARTY HERETO (A) CERTIFIES THAT NO
REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HERETO HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF
LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT
IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT
BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS IN THIS SECTION.

 

[Remainder of page intentionally left
blank]

 

 

IN WITNESS WHEREOF, the Parties have caused
this Additional Capital Contribution Agreement to be executed and delivered by
their duly authorized officers as of the date first above written.

 

	
   

  	
  EFS NOBLE II, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
  By: Aircraft Services Corporation,

  
	
   

  	
  Its Managing Member

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Vihang Dholakia

  
	
   

  	
   

  	
  Name: Vihang Dholakia

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

IN WITNESS WHEREOF, the Parties have caused
this Additional Capital Contribution Agreement to be executed and delivered by
their duly authorized officers as of the date first above written.

 

	
   

  	
  GE CAPITAL MARKETS, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Donald B. Kyle

  
	
   

  	
   

  	
  Name: Donald B. Kyle

  
	
   

  	
   

  	
  Title: Managing Director

  

 

 

IN WITNESS WHEREOF, the Parties have caused
this Additional Capital Contribution Agreement to be executed and delivered by
their duly authorized officers as of the date first above written.

 

	
   

  	
  NOBLE ENVIRONMENTAL POWER 2008

  HOLD CO., LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher Lowe

  
	
   

  	
   

  	
  Name: Christopher Lowe

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

IN WITNESS WHEREOF, the Parties have caused
this Additional Capital Contribution Agreement to be executed and delivered by
their duly authorized officers as of the date first above written.

 

 

	
   

  	
  NOBLE ENVIRONMENTAL POWER 2008

  HOLD CO. PRIME, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Christopher Lowe

  
	
   

  	
   

  	
  Name: Christopher Lowe

  
	
   

  	
   

  	
  Title: Vice President

  

 

 

SCHEDULE A

 

This Schedule A will be a separate worksheet in the Base Case Model.

 

“Fixed Quarterly Contribution Amount” means, with respect to any Fiscal
Quarter, an amount equal to (a) ***% times (b) the Annual Fixed
Contribution Amount for the Fiscal Year that includes such Fiscal Quarter.

 

For purposes of this Schedule A, the following terms are defined as
follows (with any capitalized terms used herein and not otherwise defined
having the meanings set forth in the ACCA or the Contribution Agreement):

 

“Annual Fixed Contribution Amount” means, with respect to any Fiscal
Year, an amount equal to (a) the Annual Contribution Amount for such
Fiscal Year times (b) a fraction, the numerator of which is the Total
Fixed Contribution Amount and the denominator of which is the Total
Contribution Amount.

 

“Assumed Second Equity Capital Contribution” means the amount shown for
the Second Equity Capital Contribution in the Revised Base Case Model.

 

“Annual Contribution Amount” means, with respect to a Fiscal Year, (a) ***%
times (b) the dollar value of PTCs shown in the Revised Base Case Model as
allocable to the Class A Equity Investor during the such Fiscal Year for
Eligible Wind Turbines that are the subject of the Initial Equity Capital
Contribution and Wind Turbines that are not the subject of the Initial Equity
Capital Contribution Date.

 

“Revised Base Case Model” means the Base Case Model, as revised as of
the Initial Equity Capital Contribution Date, assuming that the Second Equity
Capital Contribution with respect to all Wind Turbines not funded in the
Initial Equity Capital Contribution occurs on June 30, 2009.

 

“Total Contribution Amount” means (a) ***% times (b) the
dollar value of PTCs shown in the Revised Base Case Model as allocable to the Class A
Equity Investor during the PTC Period for Eligible Wind Turbines that are the
subject of the Initial Equity Capital Contribution and Wind Turbines that are
not the subject of the Initial Equity Capital Contribution Date.

 

“Total Fixed Contribution Amount” means an amount equal to (a) (1) ***%
times (2) the sum of (A) the Total Contribution Amount, plus (B) the
Initial Equity Capital Contribution, plus (C) the Assumed Second Equity
Capital Contribution, minus (b) the Initial Equity Capital Contribution.

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