Document:

Exhibit 10.6(d)

 

GUARANTEE

 

GUARANTEE dated June 22, 2007, made by
Credit Suisse (USA), Inc., a corporation organized and existing under the
laws of the State of Delaware (the “Guarantor”) in favor of Noble Environmental
Power 2006 Hold Co, LLC (“Counterparty”) to one or more Transactions (as
defined below) with its wholly-owned subsidiary, Credit Suisse Energy LLC, a
limited liability company organized under the laws of the State of Delaware (“CSE”).
Reference is made to Section 1 below for the definition of certain
capitalized terms used herein and not otherwise defined.

 

The Guarantor derives substantial direct and
indirect benefits from the entry by CSE into Transactions with Counterparty. This
Guarantee has been executed in favor of Counterparty in connection with one or
more Transactions between Counterparty and CSE, without regard to whether or
not Counterparty or such Transactions are known or disclosed to Guarantor in
advance of or following CSE entry into such Transactions, and without regard to
whether or not they have been entered into under a Master Agreement or
Confirmation.

 

1.             Definitions and
Interpretation.

 

“Applicable
Terms” means, in respect of any Transaction, all of the terms and conditions
governing such Transaction, whether or not evidenced in writing, set forth in a
Master Agreement, Confirmation, other agreement or writing, or arising under
common law, under law merchant or by reason of normal business or industry
practice.

 

“Business Day” means a day in New York on
which commercial banks are open for business (including dealings in foreign
exchange and foreign currency deposits).

 

“Confirmation” means any confirmation that
governs the terms and conditions of one or more Transactions between CSE and
Counterparty.

 

“EEI” mean the Edison Electric Institute.

 

“EEI Master Agreement” means the EEI Master
Power Purchase & Sale Agreement version 2.1 (modified 4/25/00), and
any related Collateral Annex that may be entered into between CSE and
Counterparty, as each may be amended by the EEI from time to time.

 

“Financial Transaction” means any interest
rate, currency, credit, equity, equity security, index, debt, debt security,
commodity, insurance, weather, precious metal, basis, total return or other
swap agreement, option agreement, forward agreement or other derivative
contract, or any other financial transaction of any nature, however
denominated; the issuance by CSE of any security, including warrants on
securities, hybrid securities and structured notes; any loan or other
borrowing; any agreement or contract for the purchase, sale, repurchase, loan
or delivery of securities or commodities, whether on a spot, forward or normal
settlement basis, however denominated; any commitment, obligation or other
agreement to provide, advance or loan liquidity or funds, however denominated;
any option in respect of any of the foregoing; any combination of any of the
foregoing; any agreement or contract to provide credit support, margin,
collateral or other security in respect of any of the foregoing; any transaction
similar to any of the foregoing; any transaction constituting a “Transaction”
under a Master Agreement documented on, or a Confirmation incorporating by
reference, an ISDA Form; and any transaction expressly designated as a “Financial
Transaction” in any Master Agreement or Confirmation.

 

“Gas Transaction” means any transaction
agreed to by CSE and Counterparty involving Gas (as such term is defined in the
NAESB Base Contract for Sale and Purchase of Natural Gas, NAESB Standard 6.3.1,
dated April 19, 2002 (as amended from time to time, the “NAESB Contract”)),
including any transaction for Gas between CSE and Counterparty set forth in the
EEI Gas Annex to any related EEI

 

 

Master Agreement; any agreement or contract to provide credit support,
margin, collateral or other security in respect of any of the foregoing; any
transaction similar to any of the foregoing.

 

“ISDA” means the International Swaps and
Derivatives Association, Inc. (formerly known as the International Swap
Dealers Association Inc.).

 

“ISDA Form” means the printed form of ISDA
Master Agreement, 1992 Multicurrency Cross-Border version, or any successor or
similar form.

 

“Master Agreement” means any agreement,
whether documented or based on an ISDA Form, the EEI Master Agreement, NAESB
Contract or any other master agreement, swap agreement, long form confirmation
agreement or other agreement that governs the terms and conditions of one or
more Transactions between CSE and Counterparty.

 

“Obligations” means all current and future
obligations of CSE under and in respect of Transactions between CSE and
Counterparty in accordance with their Applicable Terms, including, without
limitation, all amounts owing by CSE to Counterparty on and after termination
of any Transaction.

 

“Energy Transaction” means any transaction
agreed to by CSE and Counterparty involving the sale or purchase, or the option
for the sale or purchase, of energy, capacity, any Product (as such term is
defined in the EEI Master Agreement) or any other similar product or commodity
(including, without limitation, any emissions allowances); any agreement or
contract to provide credit support, margin, collateral or other security in
respect of any of the foregoing; any transaction similar to any of the
foregoing; any transaction constituting a “Transaction” under a Master
Agreement governed by and documented on an EEI Master Agreement, or any other
enabling agreement or similar agreement; and any transaction expressly
designated as a “Energy Transaction” in any Master Agreement or Confirmation.

 

“Transaction” means any Financial
Transaction, Gas Transaction and/or Energy Transaction between CSE and
Counterparty.

 

2.             Guarantee.

 

(a)           The Guarantor hereby absolutely, unconditionally and
irrevocably guarantees the punctual payment when due (subject to any applicable
grace period), of all Obligations of CSE. Guarantor agrees to pay on demand any
and all reasonable fees, funding and other costs and expenses (including
reasonable attorneys’ fees and expenses) incurred by Counterparty in enforcing
any rights or collecting any amounts due under this Guarantee or any
Transaction. Any amounts that would be owed by CSE to Counterparty in
accordance with the Applicable Terms, but are unenforceable or not allowable
against CSE because it is the subject of a bankruptcy, liquidation,
reorganization or similar case or proceeding, shall nonetheless be Obligations
for the purposes of this Guarantee. Counterparty shall not be obligated to file
any claim relating to the Obligations in the event CSE becomes subject to a
bankruptcy, liquidation, reorganization or similar case or proceeding, and the
failure by Counterparty so to file shall not affect the Guarantor’s obligations
hereunder.

 

(b)           This Guarantee is a guarantee of payment
when due and not of collection. The Guarantor agrees that Counterparty may
resort to the Guarantor for payment of any of the Obligations, whether or not
Counterparty attempted to realize against or apply, any property provided by an
entity as collateral security or other credit support for the Obligations (such
property and credit support collectively, “Security”) or proceeded or attempted
to proceed against CSE or any other entity principally or secondarily obligated
with respect to the Obligations.

 

 

(c)           This Guarantee shall continue to be
effective or be reinstated, as the case may be, if at any time any payment of
any of the Obligations is rescinded, avoided, recovered or must otherwise be
returned by Counterparty upon or as a result of the insolvency, bankruptcy,
liquidation or reorganization of CSE or otherwise, all as though such payment
had not been made.

 

3.             Guarantee
Absolute.

 

The Guarantor guarantees that the Obligations
will be paid strictly in accordance with the Applicable Terms  (and, to the extent applicable, this Guarantee),
regardless of any law, regulation or order now or hereafter in effect in any
jurisdiction affecting any of such provisions or the rights of Counterparty
with respect thereto. The liability of the Guarantor under this Guarantee shall
be irrevocable, absolute and unconditional irrespective of, and the Guarantor
hereby irrevocably waives, any defenses it may now or hereafter have (including
any defense based on the failure to provide notice to or obtain the consent of
the Guarantor) in any way relating to, any or all of the following:

 

(a)           any lack of validity or enforceability of,
or any amendment or supplement to, the Transaction, any Master Agreement or
Confirmation or any agreement or instrument related thereto;

 

(b)           the entry into additional Transactions, any
indulgence, concession, waiver or consent given to CSE, or any other changes in
the amount of, time, manner or place of payment of, or in any other term of any
or all of the Obligations;

 

(c)           any taking, exchange, release,
non-perfection, realization or application of or on any Security;

 

(d)           any taking, release, amendment, consent or
waiver of or in respect of any other guarantee for any or all of the
Obligations;

 

(e)           any change, restructuring or termination in
or of the corporate structure or existence of CSE; or

 

(f)            any other circumstance
(including, without limitation, any statute of limitations) that might
otherwise constitute a defense available to, or a discharge of, CSE, the
Guarantor or any other guarantor or surety.

 

4.             Waivers and
Acknowledgements.

 

(a)           The Guarantor hereby waives promptness,
diligence, demand for performance, notice of acceptance, presentment, protest,
non-performance, default, acceleration, early termination, protest or dishonor,
any other notice with respect to any of the Obligations and this Guarantee, and
any requirement that Counterparty protect, secure, perfect or insure any
Security or exhaust any right or take any action against CSE or any other
entity or Security.

 

(b)           Subject only to Section 8(b) below,
the Guarantor hereby waives any right to revoke this Guarantee, and
acknowledges that this Guarantee is continuing in nature and applies to all
Obligations, whether existing now or in the future.

 

(c)           The Guarantor hereby waives (i) any
defense arising by reason of any claim or defense based upon an election of
remedies by the Guarantor which in any manner impairs, reduces, releases or
otherwise adversely affects the Guarantor’s subrogation, reimbursement,
exoneration, contribution or indemnification rights or other rights to proceed
against CSE, any other guarantor, any other entity or any Security, and (ii) any
defense based on any right of set-off or counterclaim against or in respect of
the Guarantor’s obligations hereunder.

 

 

(d)           No failure on the part of Counterparty to
exercise, and no delay in exercising, any right, remedy or power hereunder
shall operate as a waiver thereof, nor shall any single or partial exercise by
Counterparty of any right, remedy or power hereunder preclude any other or future
exercise of any right, remedy or power. No
waiver by Counterparty of performance by Guarantor under any of the provisions
of this Guarantee shall be construed as a waiver of any subsequent performance
by Guarantor under the same or any other provisions of this Guarantee. Each
and every right, remedy and power hereby granted to Counterparty and allowed it
by law or other agreement shall be cumulative and not exclusive of any other,
and may be exercised by Counterparty from time to time.

 

5.             Subrogation.

 

The Guarantor will not exercise any rights
that it may now have or hereafter acquire against CSE or any other guarantor
that arise from the existence, payment, performance or enforcement of the
Guarantor’s obligations under this Guarantee, including, without limitation,
any right of subrogation, reimbursement, exoneration, contribution or
indemnification and any right to participate in any claim or remedy of
Counterparty against CSE, any other guarantor or any Security, whether or not
such claim, remedy or right arises in equity or under contract, statute or
common law, including, without limitation, the right to take or receive from
CSE or any other guarantor, directly or indirectly, in cash or other property,
by set-off or in any other manner, payment or security on account of such
claim, remedy or right, unless and until all of the Obligations shall have been
finally and irrevocably paid in full in cash.

 

6.             Representations.

 

The Guarantor hereby makes to Counterparty
the representations set forth below:

 

(a)   It is duly organized and
validly existing under the law of the jurisdiction of its incorporation and is
in good standing;

 

(b)   it has the power to execute,
deliver and perform its obligations under this Guarantee, and it has taken all
necessary action to authorize such execution, delivery and performance;

 

(c)   such execution, delivery and
performance do not violate or conflict with any law applicable to it, any
provision of its constitutional documents, any order or judgment of any court
or other agency of government applicable to it or any of its assets or any
contractual restriction binding on or affecting it or any of its assets;

 

(d)   all governmental and other
consents that are required to have been obtained by it with respect to this
Guarantee have been obtained and are in full force and effect and all
conditions of any such consents have been complied with;

 

(e)   its obligations under this
Guarantee constitute its legal, valid and binding obligations, enforceable in
accordance with their respective terms (subject to applicable bankruptcy,
reorganization, insolvency, moratorium or similar laws affecting creditors’
rights generally and subject, as to enforceability, to equitable principles of
general application (regardless of whether enforcement is sought in a
proceeding in equity or at law));

 

(f)    there is not pending, or, to
its knowledge, threatened against it, any action, suit or proceeding at law or
in equity or before any court, tribunal, governmental body, agency or official
or any arbitrator that is likely to affect the legality, validity or
enforceability against it of this Guarantee or its ability to perform its
obligations hereunder.

 

The foregoing representations will be deemed to be repeated by the
Guarantor on each date on which a Transaction is entered into between CSE and
Counterparty.

 

 

7.             Gross
Up; Stamp Tax.

 

All sums payable by the Guarantor under this
Guarantee shall be made in freely transferable, cleared and immediately
available funds without any set-off, deduction or withholding unless such
set-off, deduction or withholding is required by any applicable law, judicial
or administrative order, or practice of any relevant governmental authority, or
by any combination thereof. If the Guarantor is so required to set-off, deduct
or withhold, then the Guarantor shall pay to Counterparty, in addition to the
payment to which Counterparty is otherwise entitled, such additional amount as
is necessary to ensure that the net amount actually received by Counterparty
(free and clear of any set-off, deduction or withholding) will equal the full
amount which Counterparty would have received had no such set-off, deduction or
withholding been required. The Guarantor will pay any stamp tax (or similar tax
or duty) levied or imposed upon it or upon Counterparty in respect of the
Guarantor’s execution or performance of this Guarantee.

 

8.             Transfers; Benefit
and Burden.

 

(a)           This Guarantee shall be binding on the
Guarantor and its successors, and shall benefit Counterparty, its permitted
transferees and its and their successors. Any reference to the Guarantor or
Counterparty in this Guarantee shall be construed in accordance with the
preceding sentence. Counterparty may sue to enforce this Guarantee in its own
name and right.

 

(b)           This Guarantee may be amended or terminated
at any time by the Guarantor following thirty (30) calendar days’ prior written
notice (the “Termination Date”) to Counterparty in accordance with Section 10(b) below;
provided, that no such amendment or termination shall adversely affect
the rights of Counterparty or any Obligations, whether absolute or contingent,
that shall have accrued or which may accrue with respect to any Transaction
other than any such Obligations or rights with respect to any Transaction
entered into on or after the Termination Date. Guarantor agrees that its
obligations and the rights of CSE and Counterparty hereunder shall not be
affected or impaired by any transfer, consolidation, renaming or other
corporate event with respect to Guarantor.

 

(c)           Neither
the Guarantor nor the Counterparty may assign its rights, interests, or
obligations hereunder to any other person without the prior written consent of
the Guarantor or the Counterparty, as the case may be, such consent not being
unreasonably withheld (it being expressly agreed that it shall not be
unreasonable for the Guarantor to withhold consent to any such assignment if
the assignee would be entitled to receive any greater payment hereunder than
the Counterparty making such assignment would have been entitled to receive had
such assignment not occurred); provided that the Guarantor may, without the
consent of the Counterparty, upon three (3) days’ prior written notice to
the Counterparty, transfer all of its Obligations under this Guarantee to any
affiliate of the Guarantor having a long-term debt rating at the date of such
transfer at least equal to that of the Guarantor immediately prior to such
transfer.

 

9.             Notices and
Communications.

 

(a)           Any notice or other communication to the
Guarantor or Counterparty in respect of this Guarantee may be given in any
manner set forth below to the address or number provided and will be deemed
effective as indicated:

 

(i)            if in writing and delivered in person or by
courier, on the date it is delivered;

 

(iii)          if sent by certified or registered mail
(airmail, if overseas) or the equivalent (return receipt requested), on the
date that mail is delivered or its delivery is attempted; or unless the date of
that delivery (or attempted delivery) or that receipt, as applicable, is not a
Business Day or that communication is delivered (or attempted) or received, as
applicable, after the close of business on a

 

 

Business Day, in which case that communication shall be deemed given
and effective on the first following day that is a Business Day.

 

Guarantor’s address is as follows:

 

Credit Suisse (USA), Inc.

11 Madison Avenue

New York, New York  10010

Attention: 
Senior Legal Officer

 

(b)           Guarantor and Counterparty, may by written
notice to such other party at the address such other party has provided above,
change the address details above at which notices or other communications are
to be given to it by such other party.

 

10.           Miscellaneous.

 

(a)           This Guarantee constitutes the entire
agreement and understanding between the Guarantor and Counterparty with respect
to its subject matter and supersedes all oral communication and prior writings
with respect thereto.

 

(b)           This
Guarantee and each of its provisions may be waived, modified or varied, in
whole or in part, only pursuant to a duly authorized written instrument signed
by an authorized officer of Counterparty and Guarantor. .

 

(c)           The headings used in this Guarantee are for
convenience of reference only and are not to affect the construction of or to
be taken into consideration in interpreting this Guarantee.

 

11.           Currency
Indemnification.

 

If for the purpose of obtaining judgment in
any court or an arbitral award it is necessary to convert a sum due hereunder
(the “Agreement Currency”) into another currency (the “Judgment Currency”),
Guarantor agrees, to the fullest extent that it may effectively do so, that the
rate of exchange used shall be that at which in accordance with normal banking
procedures Counterparty could purchase the Agreement Currency with such
Judgment Currency on the Business Day preceding that on which such judgment or
award becomes final. The obligation of Guarantor in respect of any sum due from
it hereunder in the Agreement Currency shall, notwithstanding any judgment or
award in the Judgment Currency, be discharged only to the extent that, on the
Local Business Day following receipt thereof by Counterparty, Counterparty may
in accordance with normal banking procedures purchase the Agreement Currency
with such Judgment Currency; if the amount of the Agreement Currency so
purchased is less than the sum originally due (determined in accordance with
the first sentence of this paragraph) to Counterparty in the Agreement
Currency, Guarantor agrees, as a separate and independent obligation and
notwithstanding any such judgment, to indemnify Counterparty against such loss,
and if the amount of the Agreement Currency so purchased exceeds the sum
originally due to Counterparty in the Agreement Currency, Counterparty agrees
promptly to remit to Guarantor the excess.

 

 

12.           Governing
Law; Jurisdiction.

 

This Guarantee
shall be governed by and construed in accordance with the laws of the State of
New York without reference to choice of law doctrine (other than Section 5-1401
of the New York General Obligations Law).

 

With respect
to any suit, action or proceedings relating to this Guarantee (“Proceedings”),
the Guarantor irrevocably (i) submits to the exclusive jurisdiction of the
courts of the State of New York and the United States District Court located in
the Borough of Manhattan in New York City and (ii) waives any objection
which it may have at any time to the laying of venue of any Proceedings brought
in any such court, waives any claim that such Proceedings have been brought in
an inconvenient forum and further waives the right to object, with respect to
such Proceedings, that such court does not have any jurisdiction over the
Guarantor. Nothing in this Guarantee precludes Counterparty from bringing
Proceedings in any other jurisdiction nor will the bringing of Proceedings in
any one or more jurisdictions preclude the bringing of Proceedings in any other
jurisdiction.

 

 

IN WITNESS
WHEREOF, the Guarantor has caused this Guarantee to be duly executed and
delivered by its duly authorized officer as of the date first above written.

 

 

	
   

  	
  CREDIT SUISSE (USA), INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
     /s/ Peter Feney

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Name: Peter Feeney

  
	
   

  	
  Title:   TreasurerExhibit 10.6(e)

 

Execution Version

 

 

NEP
GUARANTEE

 

among

 

NOBLE
ENVIRONMENTAL POWER, LLC,

a Delaware limited liability company,

(Guarantor)

 

and

 

CREDIT
SUISSE ENERGY LLC

(Party A)

 

Dated as
of June 22, 2007

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE I. DEFINITIONS

  	
  2

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Defined Terms

  	
  2

  
	
  1.2

  	
  General Definitions

  	
  4

  
	
  1.3

  	
  Rules of Interpretation

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE II. GUARANTEE

  	
  4

  
	
   

  	
   

  	
   

  
	
  2.1

  	
  Guarantee

  	
  4

  
	
  2.2

  	
  Guaranteed Obligations Absolute and Unconditional

  	
  5

  
	
  2.3

  	
  Limitation on Amount Guaranteed

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE III. REPRESENTATIONS AND WARRANTIES

  	
  8

  
	
   

  	
   

  	
   

  
	
  3.1

  	
  Guarantor Representations and Warranties

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE IV. COVENANTS

  	
  10

  
	
   

  	
   

  	
   

  
	
  4.1

  	
  Guarantor Covenants

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE V. SUBORDINATION; SUBROGATION; ETC.

  	
  12

  
	
   

  	
   

  	
   

  
	
  5.1

  	
  Taxes

  	
  12

  
	
  5.2

  	
  Subordination

  	
  12

  
	
  5.3

  	
  Waiver

  	
  12

  
	
  5.4

  	
  Subrogation

  	
  14

  
	
  5.5

  	
  Bankruptcy

  	
  15

  
	
  5.6

  	
  Reinstatement

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE VI. MISCELLANEOUS

  	
  17

  
	
   

  	
   

  
	
  6.1

  	
  Successions or Assignments

  	
  17

  
	
  6.2

  	
  Other Waivers

  	
  17

  
	
  6.3

  	
  Headings

  	
  17

  
	
  6.4

  	
  Remedies Cumulative

  	
  18

  
	
  6.5

  	
  Severability

  	
  18

  
	
  6.6

  	
  Amendments

  	
  18

  
	
  6.7

  	
  Jurisdiction

  	
  18

  
	
  6.8

  	
  Governing Law

  	
  18

  
				

 

i

 

	
  6.9

  	
  Integration of Terms

  	
  18

  
	
  6.10

  	
  Notices

  	
  19

  
	
  6.11

  	
  Interest; Collection Expenses; Set-Off

  	
  19

  
	
  6.12

  	
  Counterparts

  	
  20

  
	
  6.13

  	
  Termination

  	
  20

  

 

ii

 

This NEP GUARANTEE, dated
as of June 22, 2007 (as amended, amended and restated, supplemented or
otherwise modified from time to time, this “Guarantee”), is entered into
by and among NOBLE ENVIRONMENTAL POWER, LLC, a limited liability company
organized and existing under the laws of the State of Delaware (the “Guarantor”)
and CREDIT SUISSE ENERGY LLC (“Party A”).

 

RECITALS

 

A.            Noble Environmental
Power 2006 Hold Co, LLC, a limited liability company organized and existing
under the laws of the State of Delaware (“Borrower”) intends to develop,
construct, install, test, own, operate, maintain and use, in each case through
its wholly-owned subsidiaries, (i) an approximately 100.5 MW wind powered
electric generating facility located in Bliss, New York, (ii) an approximately
100.5 MW wind powered electric generating facility located in Clinton, New
York, and (iii) an approximately 81 MW wind powered electric generating
facility located in Ellenburg, New York (each, a “Project” and,
collectively, the “Projects”), all as more particularly described in the
Financing Agreement (hereinafter defined).

 

B.            In order to partially
finance the development, construction, installation, testing, operation,
maintenance and use of the Projects, Borrower has entered into that certain
Financing Agreement, dated as of the date hereof (as amended, amended and
restated, supplemented or otherwise modified from time to time, the “Financing
Agreement”), among Borrower, the financial institutions from time to time
parties thereto (collectively, the “Lenders”), Dexia Crédit Local, New
York Branch, as Lead Arranger, Joint Bookrunner, Technical and Documentation
Agent, Co-Syndication Agent, LC Fronting Bank, and as Administrative Agent for
the Lenders and HSH Nordbank AG, New York Branch, as Lead Arranger, Joint
Bookrunner and Co-Syndication Agent, pursuant to which, among other things,
Lenders have extended commitments to make loans and other financial
accommodations to, and for the benefit of, Borrower.

 

C.            Borrower directly owns
100% of the equity interests of each entity (each, a “Project Company”)
which owns each of the Projects. 
Borrower will contribute to each Project Company certain proceeds and
other financial accommodations obtained under the Financing Agreement for the
development, construction, installation, testing, operation, maintenance and
use of each of the Projects.

 

D.            Borrower and Party A
have entered into that certain ISDA
Master Agreement, the Schedule to the ISDA Master Agreement, the ISDA Credit
Support Annex, and the Confirmation, each dated as of June 20, 2007, and
the schedules, exhibits and annexes attached to any of the foregoing (as the
same may be amended, modified or supplemented from time to time, the “Energy
Hedge Agreement”), dated as of June 20, 2007,

 

 

pursuant to which the
Borrower and Party A may incur certain payment obligations in respect of each
other.

 

E.             Guarantor indirectly
owns 100% of the equity interests of Borrower and will derive substantial
indirect benefit from the Energy Hedge Agreement.

 

F.             Guarantor has agreed
to, among other things, guarantee the Guaranteed Obligations, as set forth
herein.

 

G.            It is a condition
precedent to the effectiveness of the Energy Hedge Agreement that the Guarantor
shall have executed and delivered this Guarantee.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the premises, and to induce Party A to enter into the Energy
Hedge Agreement, and for other good and valuable consideration, the receipt and
adequacy of which are hereby acknowledged, the Guarantor hereby agrees with
Party A as follows:

 

ARTICLE I.

DEFINITIONS

 

1.1   Defined Terms.   The following terms (whether or not
underscored) when used in this Guarantee, including its preamble and recitals,
shall have the following meanings:

 

“Acceptable Cure
Collateral” means either (i) cash, or (ii) a letter of credit (a) issued
by a financial institution whose long-term senior unsecured debt is rated at
least “A-” by S&P or “A3” by Moody’s, (b) naming Party A on behalf of
the Lenders as the beneficiary and (c) containing other terms and
provisions reasonably satisfactory to Party A, including provisions that (x) if
no agreement for a renewal or replacement of such letter of credit has been
made thirty (30) days prior to the date of expiry of such letter of
credit, the stated amount of the letter of credit shall be drawn upon
presentation of a sight draft by Party A and the proceeds thereof deposited
into an account designated by Party A as security for the payment of the
Guaranteed Obligations and (y) if the long-term senior unsecured debt
rating of the financial institution that issues such letter of credit falls
below the rating required in clause (a) above, Guarantor shall replace
such letter of credit issued by such financial institution with a new letter of
credit within fifteen (15) days following the date Borrower obtains Knowledge
of such downgrade that meets the criteria set forth in (a), (b) and (c) above,
and, if Guarantor does not deliver such new letter of credit by the end of such
fifteen (15) day period, then Party A shall have the right to draw forthwith on
the then existing letter of credit before its expiration 

 

2

 

and the proceeds thereof shall be deposited into an
account designated by Party A as security for the payment of the Guaranteed
Obligations.

 

“Affected Party”
has the meaning given in the Energy Hedge Agreement.

 

“Agreed Net Worth
Amount” has the meaning given in Section 4.1 (a).

 

“Borrower” has the
meaning given in the preamble to this Guarantee.

 

“Defaulting Party”
has the meaning given in the Energy Hedge Agreement.

 

“Dexia Guarantee”
has the meaning given it Section 2.1(c) hereof.

 

“Energy Hedge
Agreement” has the meaning given in the recitals of this Guarantee.

 

“Financing Agreement”
has the meaning given in the recitals to this Guarantee.

 

“Guarantee” has
the meaning given in the preamble to this Guarantee.

 

“Guaranteed Amount”
means Fifteen Million Dollars ($15,000,000), less, from time to time, any
amounts previously paid pursuant to this Guarantee.

 

“Guaranteed
Obligations” has the meaning given in Section 2.1 (a).

 

“Guarantor” has
the meaning given in the preamble to this Guarantee.

 

“Hedge Documents”
means the documents listed in Schedule 1 of this Guarantee.

 

“Knowledge” means
the actual (as distinct from constructive) knowledge of any Person, at the
relevant time, who is a Responsible Officer of the Guarantor.

 

“Lenders” has the
meaning given in the recitals to this Guarantee.

 

“Party A” has the
meaning given in the preamble to this Guarantee.

 

“Specified Purposes”
means payment of all or any portion of Project Costs to the extent the
same have not been timely paid by Borrower (including through the use of Loan
proceeds, funds available for such purpose in the Test Revenue Account, any
contributions of equity, any available “contingency” under the Project Budgets,
any insurance received in connection with Project Costs (to the extent
permitted to be used 

 

3

 

for such purpose under the Financing Documents),
liquidated damages and other damages received by Borrower (to the extent
permitted to be used for such purpose under the Financing Documents)).

 

1.2   General Definitions.   Unless otherwise defined herein or unless
the context otherwise requires, capitalized terms used in this Guarantee,
including its preamble and recitals, have the meanings provided in Exhibit A
to the Financing Agreement.

 

1.3   Rules of Interpretation.   Unless otherwise provided herein, the rules of
interpretation set forth in Exhibit A to the Financing Agreement
shall apply to this Guarantee, including its preamble and recitals.

 

ARTICLE II.

GUARANTEE

 

2.1   Guarantee.

 

(a)         Subject to 2.1(c) below, Guarantor, as a
primary obligor and not merely as surety, hereby, unconditionally and
irrevocably guarantees to Party A (i) the payment, when demanded, from
time to time in writing by Administrative Agent, in accordance with the
provisions of this Guarantee hereinafter set forth of all amounts due and
payable that, when aggregated as a sum, do not exceed the Guaranteed Amount,
for the Specified Purposes, and (ii) the payment in full in cash of all
reasonable costs and expenses incurred by Party A in enforcing payment of any
portion of the Guaranteed Amount or the terms hereof, including, without
limitation, reasonable fees and expenses of legal counsel (collectively, the “Guaranteed
Obligations”).

 

(b)        Subject to 2.1(c) below, Guarantor agrees
that if for any reason, and from time to time, Borrower shall fail to timely
pay any portion of the Guaranteed Obligations, following receipt by Guarantor
of a written notice from Party A specifying which payment(s) for or on
account of (i) one or more components of the Specified Purposes have not
been paid when due and the respective amount(s) thereof, and/or (ii) the
costs and expenses described in clause (ii) of the definition of “Guaranteed
Obligations” have not been paid and the respective amounts thereof, Guarantor
shall promptly pay the same in immediately available funds, without regard to any
exercise or non-exercise by Borrower, any other Noble Entity, Party A of any
right, remedy, power or privilege under or in respect of the Energy Hedge
Agreement or the Second Lien Collateral Documents, and that in the case of any
extension of time of the payment of any of the 

 

4

 

Guaranteed
Obligations, the same will be promptly paid in full on the date required for
such payment in accordance with the terms of such extension.

 

(c)         Notwithstanding Section 2.1(a) and Section 2.1(b) above, Party A acknowledges
that the exercise of its rights and remedies with respect to
this Guaranty shall be subject to the prior rights of the Senior Secured
Parties pursuant to that certain Guarantee, dated as of June 22, 2007 (as
the same may be amended, amended and restated, supplemented or otherwise
modified from time to time, the “Dexia Guarantee”), between Guarantor
and Dexia Crédit Local, New York Branch, as administrative agent, acting on
behalf of and for the benefit of the Secured Parties.  The Guaranteed
Obligations remain subordinate to the Obligations (as defined in the Financing
Agreement) on the terms set forth in the Subordination Agreement (as defined in
the Energy Hedge Agreement).  This Section 2.1(c) and
the Subordination Agreement are solely for the benefit of the Senior Secured
Parties (as defined in the Subordination Agreement) and shall confer no rights
or benefits upon the Guarantor, the other Project Companies or the Borrower,
provided that the foregoing shall in no way limit the rights or obligations of
the Guarantor or Party A under this Guarantee or the Dexia Guarantee.

 

2.2   Guaranteed Obligations
Absolute and Unconditional.

 

(a)         The obligations of Guarantor hereunder are
primary obligations of Guarantor and are an absolute, unconditional, continuing
and irrevocable guarantee of payment of the Guaranteed Obligations and not of
collectibility, and are in no way conditioned on or contingent upon any attempt
to enforce in whole or in part Borrower’s, any other guarantor’s, any other
Noble Entity’s or any other Person’s liabilities and obligations to Party
A.  Each failure by Guarantor to pay any
portion of the Guaranteed Obligations shall give rise to a separate cause of
action herewith, and separate suits may be brought hereunder as each cause of
action arises.

 

(b)        Party A may, at any time and from time to time
(whether or not after revocation or termination of this Guarantee) without the
consent of or notice to Guarantor, except such notice as may be required by
this Guarantee, the Energy Hedge Agreement or the Second Lien Collateral
Documents or any Legal Requirement which cannot be waived, without incurring
responsibility to Guarantor, without affecting, impairing or releasing the
obligations of Guarantor hereunder, upon any terms or conditions and in whole
or in part:

 

(i)            change the manner, place and terms of
payment of, or renew or alter, any portion of the Guaranteed Obligations, or
any obligations and liabilities (including any of those hereunder) incurred in
respect thereof or hereof, 

 

5

 

or in any manner modify, amend or supplement the terms of the Energy
Hedge Agreement and the Second Lien Collateral Documents (other than any such
document to which Guarantor is a party) or any documents, instruments or
agreements executed in connection therewith, or extend further credit in any
manner whatsoever to the Borrower, in each case described in this subsection (i) with
the consent of the relevant Noble Entity or Noble Environmental party thereto
(in each case, as and to the extent required by the applicable document), and
the guarantees herein made shall apply to the Guaranteed Obligations or such
other obligations as changed, extended, renewed, modified, amended,
supplemented or altered in any manner;

 

(ii)           exercise, in each case, in accordance with
the Energy Hedge Agreement and the Second Lien Collateral Documents to which
Party A is a party, or refrain from exercising any rights against Borrower or
others (including any guarantor of any part of the Guaranteed Obligations);

 

(iii)          add or release any other guarantor from its
obligations;

 

(iv)          settle or compromise any Guaranteed
Obligations or any obligations and liabilities (including any of those
hereunder) incurred in respect thereof or hereof  in a commercially reasonable manner, and
subordinate the payment of all or any part thereof to the payment or
performance of any obligations and liabilities which may be due to Party A or
others;

 

(v)           upon the occurrence and during the
continuance of an Event of Default where the Borrower is the Defaulting Party
or the Affected Party, sell, exchange, release, surrender, realize upon or
otherwise deal with in any manner or in any order any property by whomsoever
pledged or mortgaged to secure or howsoever securing the Guaranteed Obligations
or any liabilities or obligations (including any of those hereunder) incurred
in respect thereof or hereof in accordance with the Energy Hedge Agreement and
the Second Lien Collateral Documents to which Party A is a party;

 

(vi)          apply any sums by whomsoever paid or
howsoever realized to any obligations and liabilities of Borrower or any other
Noble Entity to Party A under the Energy Hedge Agreement and the Second Lien
Collateral Documents in the manner provided therein regardless of what
obligations and liabilities remain unpaid;

 

(vii)         consent to or waive any breach of, or any act,
omission or default under, the Energy Hedge Agreement or the Second Lien
Collateral Documents or otherwise amend, modify or supplement (with the consent
of the 

 

6

 

relevant Noble Entity or Noble Environmental party thereto, as and to
the extent required by such documents) the Energy Hedge Agreement or the Second
Lien Collateral Documents (other than any such document to which the Guarantor
is a party); and/or

 

(viii)        act or fail to act in any manner referred to in
this Guarantee which may deprive Guarantor of its right to subrogation against
Borrower or any other Noble Entity to recover full indemnity for any payments
made pursuant to this Guarantee or of its right of contribution against any
other party;

 

provided, however, that in connection
with the exercise of any of the rights detailed in this Section 2.2(b),
in no case shall the Party A take any action that would increase the amount of
any component of the Specified Purposes from that which was payable by the
Borrower prior to such action, without the prior consent of the Guarantor; and provided
further, for the avoidance of doubt, the Party A may exercise remedies
when and as they are available to it under the Energy Hedge Agreement and the
Second Lien Collateral Documents that decrease the amount of money available to
pay for such components.

 

(c)         No invalidity, irregularity or
unenforceability of the Guaranteed Obligations or invalidity, irregularity,
unenforceability or non-perfection of any security interest in any Collateral
therefore, shall affect, impair or be a defense to this Guarantee.

 

(d)        This is a continuing guarantee and all
Guaranteed Obligations to which this Guarantee applies or may apply under the
terms hereof shall be conclusively presumed to have been created in reliance
hereon.  In the event that, notwithstanding
the provisions of Section 2.2(a) above, this Guarantee shall
be deemed revocable in accordance with any Legal Requirement, then any such
revocation shall become effective only upon receipt by Party A of written
notice of revocation signed by Guarantor and in accordance with such Legal
Requirement.  To the extent permitted by
any Legal Requirement, no revocation or termination hereof shall affect, in any
manner, rights arising under this Guarantee with respect to the Guaranteed
Obligations (i) arising prior to receipt by Party A of written notice of
such revocation or termination or (ii) arising as a result of an Event of
Default where the Borrower is the Defaulting Party or the Affected Party under
the Energy Hedge Agreement or any Second Lien Collateral Document occurring by
reason of the revocation or termination of this Guarantee or the breach by
Guarantor of its obligations hereunder.

 

7

 

2.3   Limitation on
Amount Guaranteed.

 

Anything contained in
this Guarantee to the contrary notwithstanding, if any Fraudulent Transfer Law
(as hereinafter defined) is determined by a court of competent jurisdiction to
be applicable to the obligations of Guarantor under this Guarantee, such
obligations of Guarantor hereunder shall be limited to a maximum aggregate
amount equal to the largest amount that would not render its obligations
hereunder subject to avoidance as a fraudulent transfer or conveyance under Section 548
of the Bankruptcy Code or any applicable provisions of comparable state law
(collectively, the “Fraudulent Transfer Laws”).

 

ARTICLE III.

REPRESENTATIONS AND WARRANTIES

 

3.1   Guarantor Representations and Warranties.  Guarantor makes the following representations
and warranties to and in favor of Party A, as of the date hereof (except that
any representations and warranties in this Article III which relate
expressly to another date shall be deemed made only as of such date).  All of the following representations and
warranties shall survive until all applicable statutes of limitation (including
any extensions thereof) have expired.

 

(a)         Guarantor (i) is a
limited liability company duly constituted, validly existing and in good
standing under the laws of the State of Delaware and (ii) is duly
qualified, authorized to do business and in good standing in each other
jurisdiction where the character of its properties or the nature of its
activities makes such qualification necessary. 
Guarantor has all requisite power to carry on its business as now being
conducted and as proposed to be conducted by it, and has the requisite power
and authority to execute, deliver and perform this Guarantee.

 

(b)        Guarantor has duly authorized, executed and
delivered this Guarantee, and neither Guarantor’s execution and delivery of
this Guarantee nor its compliance with the terms hereof (i) conflicts with
or constitutes a default under or results in the violation of (aa) any
Legal Requirement applicable to or binding on Guarantor or any of its
properties or on the Projects, except any of the foregoing that could not
reasonably be expected to result in a material adverse effect on the ability of
Guarantor to meet its obligations under this Guarantee, or (bb) the
provisions of the Organizational Documents of Guarantor; (ii) constitutes
a default under or results in the violation of the provisions of any Project
Document or any indenture, mortgage, deed of trust, or agreement or other
instrument, in each case, to which Guarantor is a party or by which it or any
of its properties or assets is bound (except such default or violation which
could not reasonably be expected to result in a 

 

8

 

material adverse effect on the ability of Guarantor to meet its
obligations under this Guarantee); (iii) results in or requires the creation
or imposition of (or the obligation to create or impose) any lien upon any of
its property or assets except such as could not reasonably be expected to
result in a material adverse effect on the ability of Guarantor to meet its
obligations under this Guarantee; or (iv) results in the acceleration of
any of its debt or obligations, except such as could not reasonably be expected
to result in a material adverse effect on the ability of Guarantor to meet its
obligations under this Guarantee.  The
execution, delivery and performance by Guarantor of this Guarantee does not
require the approval or consent of any holder or trustee of any debt or other
obligations of Guarantor which has not been obtained, except any such approval
or consent that could be obtained when needed or if the lack of such approval
or consent could not reasonably be expected to result in a material adverse
effect on the ability of Guarantor to meet its obligations under this
Guarantee.

 

(c)         This Guarantee is a
legal, valid and binding obligation of Guarantor under the laws of the State of
New York, enforceable against Guarantor in accordance with its terms, except as
such enforceability may be limited by applicable bankruptcy, insolvency,
moratorium, reorganization or other similar laws affecting the enforcement of
creditors’ rights and subject to general equitable principles.

 

(d)        Guarantor is in material compliance with and
not in default under Guarantor’s Organizational Documents.

 

(e)         Guarantor is not in material default or in
material breach of any representation or warranty made by Guarantor under any
agreement relating to any obligations of Guarantor for or with respect to
borrowed money, except such as could not reasonably be expected to result in a
material adverse effect on the ability of Guarantor to meet its obligations
under this Guarantee.

 

(f)         (i) Guarantor has filed, or has caused to
be filed, all federal, state and local tax returns that it is required to file,
has paid or has caused to be paid all Taxes it is required to pay to the extent
due (other than those Taxes that it is contesting in good faith and by
appropriate proceedings and other than de minimis Taxes that Guarantor has no
knowledge of and which it shall pay promptly upon its knowledge of
non-payment), except if any such failure to file or pay could not reasonably be
expected to result in a material adverse effect on the ability of Guarantor to
meet its obligations under this Guarantee.

 

(ii)           Guarantor is not a party to any tax sharing
agreement with any Person (including with any Affiliate of Guarantor), except 

 

9

 

any tax sharing agreement that could not reasonably be expected to
result in a material adverse effect on the ability of Guarantor to meet its
obligations under this Guarantee.

 

(g)        There are no pending or, to Guarantor’s
Knowledge, threatened actions or proceedings of any kind, including actions or
proceedings of or before any Governmental Authority, to which Guarantor is a
party or is subject, or by which any of its properties are bound, which, if
adversely determined, could reasonably be expected to result in a material
adverse effect on the ability of Guarantor to meet its obligations under this
Guarantee.

 

(h)        Neither Guarantor nor any Subsidiary of Guarantor
is an investment company or a company controlled by an investment company,
within the meaning of the Investment Company Act of 1940, as amended.

 

(i)          No consent, approval or authorization of, or
registration or filing with, any Governmental Authority is required in
connection with the execution of this Guarantee or the performance by Guarantor
of its obligations hereunder that has not been obtained or could not reasonably
be expected to be obtained when needed, except if the effect of not having such
consent, approval or authorization could not reasonably be expected to result
in a material adverse effect on the ability of Guarantor to meet its
obligations under this Guarantee.

 

(j)          The financial statement of Guarantor dated as
of December 31, 2006, a copy of which is attached as Annex A
hereto, is true and correct and fairly presents in all material respects the
financial condition of Guarantor as of the date thereof.  Such financial statement has been prepared in
accordance with GAAP as properly applied, subject to normal year-end
adjustments and lack of footnotes.  There
are no material liabilities, direct or contingent, of Guarantor, except as has
been disclosed in such financial statement or pursuant to the Energy Hedge
Agreement or the Second Lien Collateral Documents or otherwise disclosed in
writing to Party A prior to the date hereof or the date of such delivery, if
later.  Since December 31, 2006,
there has been no material change in the financial condition of Guarantor from
that reflected in the financial statement attached as Annex A hereto,
except as otherwise disclosed in writing to Party A prior to the date hereof.

 

ARTICLE IV.

COVENANTS

 

Guarantor hereby
covenants and agrees that, until this Guarantee shall terminate in accordance
with (and subject) to the provisions of Section 6.13 hereof, it
will perform, comply with and be bound by all of the following agreements and
covenants:

 

10

 

4.1   Guarantor Covenants.

 

(a)         Guarantor will at all times maintain a net
worth in an amount not less than $144,700,000, which is shown as Guarantor’s
net worth on Guarantor’s financial statement dated as of December 31,
2006, a copy of which is attached as Annex A hereto (the “Agreed
Net Worth Amount”).

 

(b)        Guarantor shall, on a monthly basis, not later
than forty five (45) days following the end of each calendar month from and
after the date hereof, deliver to Party A, in form and detail reasonably satisfactory
to Party A, financial statements of and prepared by Guarantor, including a
balance sheet and a statement of income and cash flow, together with a
certificate signed by the natural person who is a financial officer or managing
member of Guarantor, certifying that such financial officer or managing member
has reviewed such financial statements and that such financial statements (i) are
true and correct and fairly present in all material respects the financial
condition of Guarantor as of the date thereof and (ii) have been prepared
in accordance with GAAP as properly applied.

 

(c)         In the event either (i) Guarantor shall
fail to deliver the financial statements and certificate described in Section 4.1(b) above
by the date required in said Section 4.1(b) or (ii) any
financial statement and certificate delivered pursuant to Section 4.1(b) above
shall fail to show that Guarantor’s net worth continues to meet, or exceed, the
Agreed Net Worth Amount, Guarantor shall, not later than fifteen (15) days
following the deadline for the delivery of the financial statements and
certificate described in Section 4.1(b) above, cure such
failure or deliver to Party A the Acceptable Cure Collateral.  The Acceptable Cure Collateral shall be in an
amount equal to the shortfall between the net worth of Guarantor reflected on
the financial statement delivered by Guarantor to Party A in such calendar
month and the Agreed Net Worth Amount, and the amount of the Acceptable Cure
Collateral delivered to Party A shall be increased or decreased each calendar
month to reflect any variance between the net worth of Guarantor reflected on
the current month’s financial statement and the Agreed Net Worth
Amount.  Any Acceptable Cure Collateral
delivered to Party A consisting of cash shall be deposited into an account
designated by Party A as security for the payment of the Guaranteed
Obligations.

 

11

 

ARTICLE V.

SUBORDINATION; SUBROGATION; ETC.

 

5.1   Taxes. Except as
otherwise required by applicable Legal Requirements, each payment required to
be made by Guarantor hereunder shall be made without deduction or withholding
for or on account of Indemnified Taxes and shall not be less than the amounts
otherwise specified to be paid under this Guarantee.  If any deduction or withholding is required
by applicable Legal Requirements, Guarantor shall, upon notice thereof from
Party A, pay the amount required to be deducted or withheld to the appropriate
authorities in accordance with applicable Legal Requirements and in the case of
any such deduction or withholding, forthwith pay to Party A such additional
amount as may be necessary to ensure that the net amount actually received by
Party A is free and clear of such Indemnified Taxes including any Indemnified
Taxes on such additional amount, and is equal to the amount that the Party A
would have received had there been no such deduction or withholding. The
Guarantor shall not be liable to gross up payments pursuant to this Section 5.1
if the Borrower would not have had to gross up such payments had the Lender
collected such payments from the Borrower.

 

5.2   Subordination.    Except as
otherwise specifically provided in this Guarantee, all existing and future
indebtedness of, or other obligations owed by the Borrower or any other Noble
Entity to Guarantor is hereby subordinated to all Guaranteed Obligations.  Without the prior written consent of Party A,
such subordinated indebtedness (including interest thereon) shall not be paid
or withdrawn in whole or in part, nor shall Guarantor accept any payment of or
on account of any such indebtedness while this Guarantee is in effect.  Any payment by the Borrower or any other
Noble Entity in violation of this Guarantee shall be received by Guarantor in
trust for Party A, and Guarantor shall cause the same to be paid to Party A
promptly upon demand by Party A on account of the Guaranteed Obligations.  Guarantor shall not assign all or any portion
of such indebtedness while this Guarantee remains in effect except upon prior
written notice to Party A by which and pursuant to an agreement under which the
assignee of any such indebtedness agrees that the assignment is made subject to
the terms of this Guarantee, and that any attempted assignment of such
indebtedness in violation of the provisions hereof shall be void.

 

5.3   Waiver.   
Guarantor hereby unconditionally and irrevocably waives and
relinquishes, to the maximum extent permitted by applicable Legal Requirements,
all rights and remedies accorded to sureties or guarantors and agrees not to
assert or take advantage of any such rights or remedies including:

 

(a)         any right to require Party A to proceed
against Borrower, any other Noble Entity or any other Person or to proceed
against or exhaust any security held by Party A at any time or to pursue any
other remedy in Party A’s power before proceeding against Guarantor;

 

12

 

(b)        any defense that may arise by reason of the
incapacity, lack of power or authority, death, dissolution, merger, termination
or disability of Guarantor or any other guarantor of any portion of the
Guaranteed Obligations, Borrower, any other Noble Entity or any other Person or
the failure of Party A to file or enforce a claim against the estate (in administration,
bankruptcy or any other proceeding) of such other guarantor, Borrower, any
other Noble Entity or any other Person;

 

(c)         promptness, diligence, demand, presentment,
protest and notice of any kind (except as specifically required pursuant to
this Guarantee, the Energy Hedge Agreement, or the Second Lien Collateral
Documents to which Party A is a party) including notice of the existence,
creation or incurring of any new or additional indebtedness or obligation or of
any action or non-action on the part of Borrower, any other Noble Entity, Party
A, any endorser or creditor of the foregoing or on the part of any other Person
under this or any other instrument in connection with any obligation or
evidence of indebtedness held by Party A as collateral or in connection with
any portion of the Guaranteed Obligations;

 

(d)        any defense based upon an election of remedies
by Party A, including an election to proceed by non-judicial rather than
judicial foreclosure, which destroys or otherwise impairs the subrogation
rights of Guarantor, the right of Guarantor to proceed against Borrower, any
other Noble Entity or another Person for reimbursement, or both;

 

(e)         any defense based on any offset against any
amounts which may be owed by any Person to Guarantor for any reason whatsoever;

 

(f)         any defense based on any failure to act, delay
or omission whatsoever on the part of Borrower or any of its Affiliates or the
failure by Borrower or any of its Affiliates to do any act or thing or to
observe or perform any covenant, condition or agreement to be observed or
performed by it under the Energy Hedge Agreement, Project Documents or any
Second Lien Collateral Document;

 

(g)        any defense based upon any statute or rule of
law which provides that the obligation of a surety must be neither larger in
amount nor in other respects more burdensome than that of the principal;

 

(h)        any defense, setoff or counterclaim which may
at any time be available to or asserted by Borrower or any of its Affiliates
against Party A based on or related to the bankruptcy or insolvency of Borrower
or any of its Affiliates;

 

13

 

(i)          any defense based on any change in the time,
manner or place of any payment or performance under, or in any other term of,
the Energy Hedge Agreement, Project Documents or any Second Lien Collateral
Document, or any other amendment, renewal, extension, acceleration, compromise
or waiver of or any consent or departure from the terms of the Energy Hedge
Agreement, Project Documents or any Second Lien Collateral Document, in each
case, as such change, amendment, renewal, extension, acceleration, compromise,
waiver, consent or departure has been consented to by the applicable Noble
Entity party thereto if required by the Energy Hedge Agreement, Project
Documents or any Second Lien Collateral Document (other than this Guarantee); provided,
however, that in connection with any waiver of the defenses detailed in
this Section 5.3(i), in no case shall the Party A take any action
that would increase the amount of any component of the Specified Purposes from
that which was payable by the Borrower prior to such action, without the prior
consent of the Guarantor; and provided  further, for the avoidance
of doubt, the Party A may exercise remedies when and as they are available to
it under the Hedge Documents that decrease the amount of money available to pay
for such components;

 

(j)          the fact that Guarantor may at any time in
the future dispose of its indirect ownership interest in Borrower;

 

(k)         any right to assert the bankruptcy or
insolvency of Borrower or any other Person as a defense hereunder or as the
basis for rescission hereof and any defense arising because of Party A’s
election, in any proceeding instituted under the Federal Bankruptcy Code, of
the application of Section 1111(b)(2) of the Federal Bankruptcy Code;
and

 

(l)          any defense based upon any borrowing or grant
of a security interest under Section 364 of the Federal Bankruptcy Code.

 

5.4   Subrogation.    Until this
Guarantee is terminated in accordance with Section 6.13 below, (a) Guarantor
shall not exercise any right of subrogation or enforce any remedy which Party A
now may have or may hereafter have against Borrower or any other Noble Entity,
and, except as provided below, will not claim the benefit of any rights to, or
seek to participate in, any security now or hereafter held by Party A from
Borrower or any other Noble Entity, and (b) Guarantor shall not enforce
any claim, right or remedy which Guarantor may now have or may hereafter
acquire against Borrower or any other Noble Entity that arises hereunder, from
the existence or enforcement of this Guarantee or from the performance by
Guarantor hereunder (including any claim, remedy or right of subrogation,
reimbursement, exoneration, contribution, indemnification, or participation in
any claim, right or remedy of Party A against Borrower or any other Noble
Entity, or any security which Party A now may have or may hereafter acquire for
any portion of the 

 

14

 

Guaranteed Obligations), whether or not such claim,
right or remedy arises in equity, under contract, by statute, under common law
or otherwise.

 

5.5   Bankruptcy. 
  Until this Guarantee is
terminated in accordance with Section 6.13:

 

(a)         to the extent permitted under applicable Legal
Requirements, Guarantor shall not, without the prior written consent of Party A
(such consent not to be unreasonably withheld or delayed), commence, or join
with any other Person in commencing, any bankruptcy, reorganization, or
insolvency proceeding against Borrower or any other Noble Entity.  The obligations of Guarantor under this
Guarantee shall not be altered, limited or affected by any proceeding,
voluntary or involuntary, involving the bankruptcy, reorganization, insolvency,
receivership, liquidation or arrangement of Borrower, any other Noble Entity or
any Affiliate thereof, or by any defense which Borrower, any other Noble Entity
or any Affiliate thereof may have by reason of any order, decree or decision of
any court or administrative body resulting from any such proceeding;

 

(b)        Guarantor shall file, in any bankruptcy or
other proceeding in which the filing of claims is required or permitted by law,
all claims which Guarantor may have against Borrower or any other Noble Entity
relating to any indebtedness of Borrower or any other Noble Entity to
Guarantor, and hereby assigns to Party A all rights of Guarantor thereunder up
to the Guaranteed Amount.  If Guarantor
does not file any such claim, Party A, as attorney-in-fact for Guarantor, is
hereby authorized to do so in the name of Guarantor or, in Party A’s
discretion, to assign the claim to a nominee and to cause proofs of claim to be
filed in the name of Party A’s nominee. 
The foregoing power of attorney is coupled with an interest and cannot
be revoked.  Party A or its nominee shall
have the sole right to accept or reject any plan proposed in any such
proceeding and to take any other action which a party filing a claim is
entitled to take.  In all such cases,
whether in administration, bankruptcy or otherwise, Guarantor hereby authorizes
the person authorized to pay such a claim to pay the same to Party A to the
extent of any Guaranteed Obligations which then remain unpaid or unperformed,
and, to the full extent necessary for that purpose, Guarantor hereby assigns to
Party A all of Guarantor’s rights to all such payments or distributions to
which Guarantor would otherwise be entitled up to the Guaranteed Amount; provided,
however, that Guarantor’s obligations hereunder shall not be satisfied
except to the extent that Party A receives cash by reason of any such payment
or distribution.  If Party A receives
anything hereunder other than cash, the same shall be held as collateral for
amounts due under this Guarantee; and

 

(c)         Guarantor hereby irrevocably waives, to the
extent it may do so under applicable Legal Requirements, any protection to
which it may be 

 

15

 

entitled under Sections 365(c)(l), 365(c)(2) and 365(e)(2) of
the Bankruptcy Law or equivalent provisions of the laws or regulations of any
other jurisdiction with respect to any proceedings, or any successor provision
of law of similar import, in the event of any Bankruptcy Event with respect to
Borrower or any other Noble Entity. 
Specifically, in the event that the trustee (or similar official) in a
Bankruptcy Event with respect to Borrower or any other Noble Entity or the
debtor-in-possession takes any action (including the institution of any action,
suit or other proceeding for the purpose of enforcing the rights of Borrower or
any other Noble Entity under this Guarantee, the Energy Hedge Agreement or any
Second Lien Collateral Document), Guarantor shall not assert any defense, claim
or counterclaim denying liability hereunder on the basis that this Guarantee,
the Energy Hedge Agreement or any Second Lien Collateral Document is an
executory contract or a “financial accommodation” that cannot be assumed,
assigned or enforced or on any other theory directly or indirectly based on Section 365(c)(l),
365(c)(2) or 365(e)(2) of the Bankruptcy Law, or equivalent
provisions of the law or regulations of any other jurisdiction with respect to
any proceedings or any successor provision of law of similar import.  If a Bankruptcy Event with respect to
Borrower or any other Noble Entity shall occur, Guarantor agrees, after the
occurrence of such Bankruptcy Event, to reconfirm in writing, to the extent
permitted by applicable Legal Requirements, its pre-petition waiver of any
protection to which it may be entitled under Sections 365(c)(l), 365(c)(2) and
365(e)(2) of the Bankruptcy Law or equivalent provisions of the laws or
regulations of any other jurisdiction with respect to proceedings, or any
successor provision of law of similar import and, to give effect to such
waiver, Guarantor consents to the assumption and enforcement of each provision
of this Guarantee, the Energy Hedge Agreement and any other Second Lien
Collateral Document by the debtor-in-possession or Borrower’s or any other
Noble Entity’s trustee in bankruptcy, as the case may be.

 

5.6   Reinstatement.    This Guarantee
and the obligations of Guarantor hereunder shall continue to be effective or be
automatically reinstated, as the case may be, if and to the extent that for any
reason any payment by or on behalf of Guarantor in respect of any portion of
the Guaranteed Obligations is rescinded or otherwise restored to Guarantor,
Borrower or any other Noble Entity, whether as a result of any proceedings in
bankruptcy or reorganization or otherwise, in each case as if such payment had
not been made, and Guarantor agrees that it will indemnify Party A and its
respective successors and assigns, on demand for all reasonable costs and
expenses (including reasonable fees of counsel) incurred by Party A and its
respective successors and assigns in connection with any such rescission or
restoration.

 

16

 

ARTICLE VI.

MISCELLANEOUS

 

6.1   Successions or Assignments.

 

(a)         This Guarantee shall inure to the benefit of
the successors or permitted assigns of Party A who shall have the rights of
Party A hereunder.

 

(b)        This Guarantee is binding upon Guarantor and
its successors and permitted assigns. 
Guarantor may not assign any of its obligations hereunder without the
prior written consent (such consent not to be unreasonably withheld or delayed)
of Party A (and any purported assignment in violation of this Section shall
be void).

 

6.2   Other Waivers.

 

(a)         No partial or single exercise on the part of
Party A of any of its rights hereunder or in connection herewith, with or
without notice to Guarantor or any other Person, shall constitute a waiver of
any rights or shall affect or impair this Guarantee.

 

(b)        PARTY A AND GUARANTOR HEREBY KNOWINGLY,
VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A TRIAL
BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER OR
IN CONNECTION WITH, THIS GUARANTEE, OR ANY COURSE OF CONDUCT, COURSE OF
DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF PARTY A OR
GUARANTOR.  THIS PROVISION IS A MATERIAL
INDUCEMENT FOR  PARTY A TO ACCEPT THIS
GUARANTEE AND ENTER INTO THE ENERGY HEDGE AGREEMENT.

 

(c)         Guarantor hereby irrevocably waives, to the
extent it may do so under applicable Legal Requirements, any defense based on
the adequacy of a remedy at law that may be asserted as a bar to the remedy of
specific performance in any action brought against Guarantor for specific
performance of this Guarantee by Party A or for its benefit by a receiver,
custodian or trustee appointed for Guarantor or in respect of all or a
substantial part of its assets under the bankruptcy or insolvency laws of any
jurisdiction to which Guarantor or its respective assets are subject.

 

6.3   Headings. 
Paragraph headings and a table of contents have been inserted in this
Guarantee as a matter of convenience for reference only and it is agreed that
such paragraph headings are not a part of this Guarantee and shall not be used
in the interpretation of any provision of this Guarantee.

 

17

 

6.4   Remedies Cumulative.    Each and every right and remedy of Party A
hereunder shall be cumulative and shall be in addition to any other right or
remedy given hereunder or under the Energy Hedge Agreement or any Second Lien
Collateral Document, or now or hereafter existing at law or in equity.

 

6.5   Severability.    In case any one or more of the provisions
contained in this Guarantee should be invalid, illegal or unenforceable in any
respect, the validity, legality and enforceability of the remaining provisions
shall not in any way be affected or impaired thereby, and the parties hereto
shall enter into good faith negotiations to replace the invalid, illegal or
unenforceable provision.

 

6.6   Amendments.   
Notwithstanding anything to the contrary herein, this Guarantee may be
amended, waived or otherwise modified only with the written consent of the
parties hereto and otherwise in accordance with the Energy Hedge Agreement.

 

6.7   Jurisdiction.    Party A and Guarantor agree that any legal
action or proceeding by or against Guarantor or with respect to or arising out
of this Guarantee may be brought in or removed to the courts of the State of
New York, in and for the County of New York, or of the United States of America
for the Southern District of New York, as Party A may elect.  By execution and delivery of this Guarantee,
Party A and Guarantor accept, for themselves and in respect of their property,
generally and unconditionally, the jurisdiction of the aforesaid courts.  Party A and Guarantor irrevocably consent to
the service of process out of any of the aforementioned courts in any such
action or proceeding by the mailing of copies thereof by registered or certified
airmail, postage prepaid, to Party A or Guarantor, as the case may be, at their
respective addresses for notices as specified herein or under the Energy Hedge
Agreement and that such service shall be effective five (5) Banking Days
after such mailing.  Nothing herein shall
affect the right to serve process in any other manner permitted by law or the
right of Party A or Guarantor to bring legal action or proceedings in any other
competent jurisdiction.  Party A and
Guarantor hereby waive any right to stay or dismiss any action or proceeding
under or in connection with this Guarantee, the Energy Hedge Agreement or any
Second Lien Collateral Document brought before the foregoing courts on the
basis of forum non-conveniens.

 

6.8   Governing Law.    THIS GUARANTEE SHALL BE GOVERNED BY, AND
CONSTRUED UNDER, THE LAWS OF THE STATE OF NEW YORK, APPLICABLE TO CONTRACTS
MADE AND TO BE PERFORMED IN SUCH STATE AND WITHOUT REFERENCE TO CONFLICTS OF
LAWS (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW).

 

6.9   Integration of Terms.    This Guarantee and any agreement, document
or instrument attached hereto or referred to herein integrate all the terms and
conditions 

 

18

 

mentioned herein or
incidental hereto and supersede all oral negotiations and prior writings in
respect to the subject matter hereof.  In
the event of any conflict between the terms, conditions and provisions of this
Guarantee and any such agreement, document or instrument, the terms, conditions
and provisions of this Guarantee shall prevail.

 

6.10  Notices.    All notices required or permitted under the
terms and provisions hereof shall be in writing and any such notice shall be
effective if given in accordance with the provisions of the Energy Hedge
Agreement.  Notices to Guarantor may be
given at the following address (or such other address as notified by Guarantor
to Party A in writing):

 

Noble Environmental
Power, LLC

8 Railroad Ave

Suite 8, Second
Floor

Essex, CT 06426

Attn:
Vice President of Asset Management

Fax:
(860)767-7041

 

6.11  Interest; Collection Expenses;
Set-Off.

 

(a)         If any amounts required to be paid by
Guarantor under this Guarantee remain unpaid after such amounts are due,
Guarantor shall pay interest on the aggregate, outstanding balance of such
amounts from the date due until those amounts are paid in full at a per annum
rate equal to the Default Rate (or the maximum rate permitted by applicable
Legal Requirements, whichever is less); provided, however, that
Guarantor shall have no obligation to pay such interest in duplication of any
interest that has accrued on such unpaid Guaranteed Obligations.  Party A shall give notice to Guarantor that
such fees or other amounts remain unpaid after same are due, but the failure to
give such notice shall not affect either the accrual of interest on such
amounts at the Default Rate (or the maximum rate permitted by applicable Legal
Requirements, whichever is less) nor the Guarantor’s obligation to pay such
amounts and such interest.

 

(b)        In addition to any rights now or hereafter
granted under applicable Legal Requirements or otherwise, and not by way of
limitation of any such rights, upon the failure of Guarantor to make any
payment as required hereunder, Party A is hereby authorized at any time or from
time to time, without presentment, demand, protest or other notice of any kind
to Guarantor, Borrower or to any other Person, except as specifically provided
in this Guarantee, the Energy Hedge Agreement or in the Second Lien Collateral
Documents, any such further or additional notice being hereby expressly waived,
to set-off and to appropriate and apply any and all deposits (general or
special) and any other indebtedness at any 

 

19

 

time held or
owing by Party A to or for the credit or the account of Guarantor, against and
on account of the obligations of Guarantor under this Guarantee; provided,
however, that Party A shall notify Guarantor of any such setoff,
appropriation or application promptly thereafter.

 

6.12  Counterparts.    This Guarantee may be executed in one or
more counterparts and by facsimile and when signed by all of the parties listed
below shall constitute a single binding agreement.

 

6.13  Termination.    Subject to Section 5.6, this
Guarantee and all of the obligations of Guarantor hereunder shall terminate on
the earliest to occur of (a) the date that each of the following events
has occurred (i)  the Term-Conversion Date has occurred; (ii) all
Project Costs have been paid in full; and (iii) either all Permitted
Completion Costs have been paid in full or the Permitted Completion Amount has
been deposited in the Completion Reserve Account; and (b) the date of the
payment in full of all of the Guaranteed Obligations in accordance with the
terms hereof.  Upon the termination of
this Guarantee in accordance with the foregoing, Party A shall reassign
promptly back to Guarantor any and all rights and interests that such Guarantor
may have assigned to Party A hereunder and shall promptly notify Guarantor of
the termination of this Guarantee.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

20

 

IN WITNESS WHEREOF, the
parties hereto, by their officers duly authorized, intending to be legally
bound, have caused this Guarantee to be duly executed and delivered as of the
date first above written.

 

 

	
   

  	
  NOBLE
  ENVIRONMENTAL POWER, 

  LLC, 

  as Guarantor

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Charles C. Hinckley

  
	
   

  	
   

  	
  Name:  Charles
  C. Hinckley

  
	
   

  	
   

  	
    Title:   Chief Executive Officer

  

 

 

	
   

  	
  CREDIT SUISSE
  ENERGY LLC,

  as Party A

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Marisa Scauzillo

  
	
   

  	
   

  	
  Name:   Marisa Scauzillo

  
	
   

  	
   

  	
    Title:   Authorized Signatory

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