Document:

Exhibit 10.7(a)

 

Execution Copy

 

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.

 

MASTER CONTRACT 

 

FOR THE SALE OF POWER GENERATION EQUIPMENT 

 

AND RELATED SERVICES

 

 

Dated as of February 15, 2006

 

 

Table
of Contents

 

	
  ARTICLE 1.

  	
  Effectiveness
  and Term

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2.

  	
  Purchase and
  Sale; Purchase Orders

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3.

  	
  Projects

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4.

  	
  Shipment

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5.

  	
  Transportation

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6.

  	
  Shipment to
  Storage

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7.

  	
  Erection

  	
  3

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8.

  	
  Startup and
  Commissioning; Commercial Operation; Acceptance

  	
  4

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9.

  	
  Inspections;
  Work at the Site

  	
  6

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10. 

  	
  Manner of
  Performance

  	
  7

  
	
   

  	
   

  	
   

  
	
  ARTICLE 11.

  	
  Price

  	
  8

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12. 

  	
  Payment
  Schedule

  	
  9

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13. 

  	
  Changes

  	
  10

  
	
   

  	
   

  	
   

  
	
  ARTICLE 14.

  	
  Spare Parts
  and Consumables

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 15.

  	
  Title and
  Risk of Loss

  	
  11

  
	
   

  	
   

  	
   

  
	
  ARTICLE 16.

  	
  Warranty

  	
  12

  
	
   

  	
   

  	
   

  
	
  ARTICLE 17. 

  	
  Delays in
  Shipment and Commercial Operation

  	
  14

  
	
   

  	
   

  	
   

  
	
  ARTICLE 18.

  	
  Power Curve
  Guarantee

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE 19. 

  	
  Sound Level

  	
  15

  
	
   

  	
   

  	
   

  
	
  ARTICLE 20. 

  	
  Suspension

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE 21. 

  	
  Termination

  	
  16

  
	
   

  	
   

  	
   

  
	
  ARTICLE 22. 

  	
  Excusable Delays

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE 23. 

  	
  Indemnity

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE 24.

  	
  Limitations
  of Liability

  	
  20

  
	
   

  	
   

  	
   

  
	
  ARTICLE 25.

  	
  Insurance

  	
  21

  

 

i

 

	
  ARTICLE 26. 

  	
  Taxes

  	
  23

  
	
   

  	
   

  	
   

  
	
  ARTICLE 27.

  	
  Intellectual
  Property

  	
  24

  
	
   

  	
   

  	
   

  
	
  ARTICLE 28.

  	
  Software
  License

  	
  25

  
	
   

  	
   

  	
   

  
	
  ARTICLE 29.

  	
  Proprietary
  Information

  	
  27

  
	
   

  	
   

  	
   

  
	
  ARTICLE 30. 

  	
  Assignment

  	
  29

  
	
   

  	
   

  	
   

  
	
  ARTICLE 31.

  	
  Representations
  and Warranties

  	
  30

  
	
   

  	
   

  	
   

  
	
  ARTICLE 32. 

  	
  Governing
  Law; Disputes

  	
  31

  
	
   

  	
   

  	
   

  
	
  ARTICLE 33.

  	
  Miscellaneous

  	
  32

  
	
   

  	
   

  	
   

  
	
  Schedule I –
  Definitions

  	
   

  
	
   

  	
   

  
	
  List of
  Attachments:

  	
   

  
	
   

  	
   

  	
   

  
	
  Attachment 1
  –  Description of Projects and
  Scheduled Major Component Shipment  Dates

  
	
  Attachment 2
  –  Scope of Work

  	
   

  
	
  Attachment 3
  –  Payment Schedule

  	
   

  
	
  Attachment 4
  –  Performance Schedule

  	
   

  
	
  Attachment 5
  –  Schedule of Options

  	
   

  
	
  Attachment 6
  –  Power Curve Liquidated Damages

  	
   

  
	
  Attachment 7
  –  Termination Payment Schedule

  	
   

  
	
   

  	
   

  
	
  List of
  Exhibits:

  	
   

  
	
   

  	
   

  	
   

  
	
  Exhibit A
  – Form of Purchase Order

  	
   

  
	
  Exhibit B –
  Form of Mechanical Completion Certificate

  	
   

  
	
  Exhibit C –
  Form of Commercial Operation Certificate

  	
   

  
	
  Exhibit D –
  Form of Acceptance Certificate

  	
   

  
	
  Exhibit E- 1/E-2 –
  Form of Lien Waiver/(Notarized)

  	
   

  
	
   

  	
   

  
	
  List of Appendices:

  	
   

  
	
   

  	
   

  
	
  Appendix A – Technical
  Specifications

  	
   

  
					

 

ii

 

MASTER CONTRACT 

FOR THE SALE OF POWER GENERATION EQUIPMENT 

AND RELATED SERVICES

 

THIS
AGREEMENT (this “Contract”) is entered into as
of the 15th day of February, 2006, by and between:

 

General
Electric Company, a corporation organized and existing
under the laws of the State of New York, U.S.A, with a place of business at One
River Road, Schenectady, New York 12345, U.S.A (the “Seller”); and

 

Noble
Environmental Power 2006 Hold Co, LLC, a limited
liability company organized and existing under the laws of Delaware, with a
principal place of business at 8 Railroad Avenue, Second Floor, Suite 8,
Essex, CT 06426, U.S.A. (the “Buyer”).

 

The Buyer and
the Seller are referred to herein individually as a “Party” and
collectively as the “Parties”.

 

Recitals

 

WHEREAS,
the Seller is engaged in the business of manufacturing, delivering, and
commissioning wind power generation equipment and providing services related
thereto;

 

WHEREAS,
the Buyer intends to develop certain wind energy projects in, as described in
further detail in Attachment 1, and/or other wind energy projects to be
located in the United States (each individually, a “Project” and
collectively, the “Projects”);

 

WHEREAS,
the Seller desires to sell, and the Buyer desires to purchase, power generation
equipment and related services, each as described in further detail in Attachment
2; and

 

WHEREAS,
the Parties desire to enter into a master contract for the sale of wind power
generation equipment and related services pursuant to which the Buyer shall
issue a separate turbine purchase order for each wind energy project.

 

1

 

Agreement

 

NOW,
THEREFORE, in consideration of the promises and
covenants stated herein, the Parties agree as follows:

 

ARTICLE
1. Effectiveness and Term

 

This Contract
shall become effective when it has been signed by both Parties and shall
continue to be in effect until expiration of the Warranty Period, as extended
pursuant to Section 16.3 and/or 16.5, with respect to the last Unit
purchased under this Contract.

 

ARTICLE
2. Purchase and Sale; Purchase Orders

 

2.1     Purchase and Sale. The Buyer shall
purchase and receive from the Seller, and the Seller shall sell and deliver to
the Buyer, the Equipment and Services as more fully described in Attachment
2  (together, the “Work”),
subject to the terms and conditions of this Contract.

 

2.2     Purchase
Order Procedure. The Parties have in good faith identified the
shipment dates of the Equipment for the Projects (the “Scheduled Major
Component Shipment Dates”) in Attachment 1  hereto. The Parties shall consult on a
monthly basis regarding the progress of the Projects and the availability of
the Seller’s facilities for the manufacture of the Equipment. Concurrently with
the execution of this Contract, the Buyer shall issue and submit to the Seller
a Purchase Order for each Project substantially in the form of Exhibit A
(each, a “Purchase Order” or “PO”).

 

2.3     Options. The Buyer
shall have the right to exercise the option to purchase the additional Equipment
and/or Services described in the Schedule of Options attached to this Contract
as Attachment 5 (the “Options”) on or before the exercise dates
stated therein. If any Option is exercised, the Contract Price, the Purchase
Order Price and the Payment Schedule shall be adjusted as set forth in Section 13.1
and Attachments 2 and 3.

 

ARTICLE
3. Projects

 

The Seller
acknowledges that the Projects identified by the Buyer in Attachment 1
hereto are the Buyer’s good faith prediction of projects that the Buyer believes
will be developed during the term of this Contract and the Buyer makes no
guarantee that any particular Project will be successfully developed.
Notwithstanding the foregoing, the Buyer shall purchase a minimum aggregate of ***
Units from the Seller.

 

ARTICLE
4. Shipment

 

The Seller
shall ship the Equipment EXW for equipment manufactured in the United States or
DDP for equipment manufactured outside of the United States (Incoterms 2000).
The Seller shall ship the Major Components of each Unit in the quantity and on
or before each Scheduled Major Component Shipment Date set forth in Attachment
1; provided, however, that
the Seller shall not ship any Major Components more than *** days in advance of
the applicable Scheduled Major Component Shipment Date without providing the
Buyer with advance notice and obtaining the Buyer’s prior consent. The Seller
shall ship the remaining Equipment of each relevant Unit within *** Business
Days after the applicable Scheduled Major Component Shipment Date as set forth
in Attachment 1. No later than *** days (or, where cold weather extreme
or corrosion protection is required by the Buyer *** days) prior to each
Scheduled Major Component Shipment Date as set

 

2

 

forth in Attachment
1, the Buyer shall notify the Seller in writing of the exact location where
the Major Components and the remaining Equipment shall be shipped; provided, however, that the Buyer may at
any time prior to any Scheduled Major Component Shipment Date notify the Seller
of a change in such location and the Seller shall accept such new location
subject to the performance of a Site Suitability Analysis with respect to the
new location and in accordance with Article 13, and provided further, that the Transportation
Charge and Project Support Services set forth in Attachment 2 hereto to
be paid by the Buyer for the shipment to the new location shall be
re-calculated in accordance with Article 5.

 

ARTICLE
5. Transportation

 

5.1     General. The Buyer shall specify in each
Purchase Order whether the Buyer wishes the Seller to transport the Equipment
to the Site or whether the Buyer has made other arrangements for
transportation.

 

5.2     Transportation
by the Seller. If the Purchase Order states that the Seller is to
transport the Equipment described in the Purchase Order, the Seller shall load
(at no additional charge) and transport that Equipment to the Site as promptly
as reasonably possible and shall charge the Buyer a fee for the transportation
of that Equipment (the “Transportation Charge”). The Transportation
Charge shall be the  amount equal
to the actual direct costs of transporting that Equipment (excluding overhead
and other indirect charges) plus *** percent (***%) of that amount. All of the
Seller’s overhead and indirect charges, including, but not limited to, the
costs of management, organization and logistics of the transportation and
delivery, shall be included in the *** percent (***%).

 

5.3      Transportation
by the Buyer or Third Party. If the Purchase Order states that the
Buyer or a third party is to transport the Equipment described in the Purchase
Order, the Seller shall then have no obligation to transport the Equipment
described in the Purchase Order and shall not charge the Buyer a Transportation
Charge for such Equipment: provided,
however, that the Seller shall
load (at no additional charge) the Equipment on any collecting transport
provided by the Buyer or such third party if such Equipment is being shipped
from the Seller’s warehouse or manufacturing facility.

 

ARTICLE
6. Shipment to Storage

 

If the Seller
is ready to ship any Major Component to the Buyer prior to the Scheduled Major
Component Shipment Date set forth in Attachment 1 but the Seller cannot
ship a Major Component to the Buyer within thirty (30) days after the
applicable Scheduled Major Component Shipment Date due solely to any cause not
attributable to the Seller, the Seller may ship such Major Component to
storage. If such Major Component is placed in storage, including storage at the
facility where such Major Component is manufactured, the following conditions
shall apply: (a) title and risk of loss shall thereupon pass to the Buyer
if it had not already passed; (b) any amounts otherwise payable to the
Seller upon delivery or shipment shall be payable upon presentation of the
Seller’s invoice(s) and certification of cause for storage; (c) all
reasonable expenses incurred by the Seller in connection with such storage,
such as for preparation for and placement into storage, handling, inspection,
preservation, insurance, purchase of shipping fixtures, storage, removal
charges and any taxes relating thereto shall be payable by the Buyer upon
submission of the Seller’s invoice(s) and reasonable supporting
documentation; (d) the Services provided herein shall be subsequently
changed to the rate prevailing at the time of actual use and the Buyer shall
pay the net change in the rate; and (e) when the Buyer notifies the Seller
that it is ready to accept the Major Component and upon payment of any amounts
due hereunder with respect to such Major Component, the Seller shall resume
Shipment of such Major Component.

 

3

 

ARTICLE
7. Erection

 

7.1      Erection
by Buyer. The Buyer shall erect each Unit, or cause each Unit to be
erected, substantially in accordance with the specifications set forth in Appendix
A. The Buyer shall notify the Seller when each Unit achieves Mechanical
Completion.

 

7.2      Special
Installation Tools. The Seller shall lend to the Buyer, at no cost to
the Buyer, special installation tools for the Buyer’s use only in connection
with the installation of the Equipment. The Seller shall supply the special
installation tools to the Site at the same time the relevant Equipment for each
Unit is delivered. Upon the Seller’s delivery of such special installation
tools, the Buyer shall inspect such tools to confirm that they are in good
condition and working order. The Buyer acknowledges and agrees that all of the
special installation tools provided by the Seller pursuant to this Section 7.2
are owned by the Seller. The Buyer shall (a) return the special
installation tools promptly after installation of the final Unit to the Seller
in the same condition as received, except for normal wear and tear; (b) pack
and load special installation tools at the Buyer’s cost; and (c) ship such
tools to locations designated by the Seller at the Seller’s cost. The Buyer
shall use such special installation tools at its own risk and in accordance
with the Installation Manual and shall use reasonable care in storing, handling
and using such special installation tools. If any of the special installation
tools is damaged or destroyed during the period in which the Buyer possesses it
pursuant to this Contract, then the Buyer shall repair or replace such damaged
or destroyed tools at the Buyer’s expense.

 

7.3      Technical
Representatives. The Seller shall provide on-Site technical advisors
starting from the Delivery of the first Major Component of the first Unit
onsite through the unloading and installation of the last Major Component of
the last Unit at a minimum rate of 2 Units per week to a maximum rate of 6
Units per week unless otherwise indicated in the Purchase Order, to advise the
Buyer with respect to the Buyer’s compliance with the Seller’s Installation
Manual during such unloading and installation and support and coordinate all
customer requirements during pre-construction through Final Acceptance of each
Project, on a project-by-project basis. The Parties acknowledge and agree that
the sole purpose of such on-Site advisors is to provide advice and guidance
respecting the installation of the Units and to observe the same.

 

7.4      Shipping
Fixtures. The Seller shall lend to the Buyer, at no cost to the Buyer,
shipping fixtures for the Buyer’s use only in connection with the installation
of the Equipment. The Seller shall supply the shipping fixtures to the Site at
the same time the relevant Equipment for each Unit is delivered. Upon the
Seller’s delivery of such shipping fixtures, the Buyer shall inspect such tools
to confirm that they are in good condition and working order. The Buyer
acknowledges and agrees that all of the shipping fixtures provided by the
Seller pursuant to this Section 7.4 are owned by the Seller. All shipping
fixtures provided by the Seller shall be made available for pickup promptly
after delivery and installation of the Equipment. The Buyer shall pack such
shipping fixtures in containers, notify the Seller that they are ready for
pickup, and load them onto transport vehicles provided by the Seller. If any of
the shipping fixtures is damaged or destroyed during the period in which the
Buyer possesses it pursuant to this Contract, then the Buyer shall repair or
replace such damaged or destroyed shipping fixtures at the Buyer’s expense. The
Buyer also understands and agrees that the Seller will not be liable for any
reason, including but not limited to, the supply, misuse or failure of such
shipping fixtures, and will not have any right or claim against the Seller for
injury, death or damages to the Buyer’s personnel or property, or those of a
third party, which may be caused by the use, misuse, or failure of such
shipping fixtures, except when such liability is caused by, or such right or
claim arises out of, any actions or omissions of the Seller.

 

ARTICLE
8. Startup and Commissioning; Commercial Operation; Acceptance

 

8.1      Startup
and Commissioning. When the Buyer provides the Seller notice
countersigned by the Seller that the Mechanical Completion of a Unit has been
achieved in the form attached hereto as

 

4

 

Exhibit B
(a “Mechanical Completion Certificate”), the Seller shall Startup and
Commission such Unit in accordance with Appendix A on or before the
dates established by the Performance Schedule set forth in Attachment 4.
If the Seller does not countersign or object to any such Mechanical Completion
Certificate within *** days after receipt, such Mechanical Completion
Certificate shall be deemed confirmed and agreed to by the Seller on the date
that such Mechanical Completion Certificate was originally delivered to the
Seller. The Buyer shall achieve Mechanical Completion of the Units at the
following rate: (a) *** as a minimum number of Units per week and (b) *** as
a maximum number of Units per week; provided,
however, that the Buyer may
modify either of such rates in accordance with Article 13. If, after
Seller’s mobilization for a Project at the Site, the Buyer delays the
Mechanical Completion of *** Units for a cumulative total of *** hours or more
for any reason other than an excusable event pursuant to Article 22 or
suspension pursuant to Article 20, then (a) the Seller shall use
commercially reasonable efforts to minimize the impact of such delay on the
costs and delays it incurs as a result of such delay, (b) the performance
of the Seller’s obligations shall be equitably extended for a period of time
based upon the time lost as a result of such delay and the impact on the Seller’s
performance of the Work, and (c) the Buyer shall pay the Seller within
thirty (30) days after receipt of an invoice from the Seller a reasonable price
increase for additional labor incurred by the Seller solely as a result of such
delay in excess of the labor the Seller would otherwise have incurred based on
the published rates for Technical Advisory Services in effect at the time of
such delay.

 

8.2     Commercial
Operation. Each Unit will achieve Commercial Operation on the first
date when each of the following has occurred: (a) Mechanical Completion
has occurred, (b) the Field Commissioning and Acceptance Test (FCAT) and
the Converter Commissioning Test (CCT) have been completed in accordance with Appendix
A, (c) the Unit is safely generating electric power, and (d) the
Seller has delivered a certificate, including a Punch List (if required), in
the form of Exhibit C hereto (a “Commercial Operation
Certificate”). Each Project will achieve Commercial Operation when every
Unit comprising such Project has achieved Commercial Operation. If the Buyer
agrees with such Commercial Operation Certificate and the Punch List, the Buyer
shall promptly countersign such Commercial Operation Certificate. If the Buyer
does not countersign or object to any such Commercial Operation Certificate
and/or Punch List within twenty (20) days after receipt, such Commercial
Operation Certificate and/or Punch List shall be deemed confirmed and agreed to
by the Buyer on the date that such Commercial Operation Certificate and/or
Punch List was originally delivered to the Buyer. If the Buyer provides timely
notice that it disputes such Commercial Operation Certificate, the Seller shall
either (i) at its sole cost and expense, immediately correct and/or remedy
the defects, deficiencies and other conditions so as to achieve Commercial
Operation, or (ii) request that the matter be submitted to the dispute
resolution procedures set forth in Article 32. If the Buyer provides
timely notice that it disputes the Punch List, the Seller shall either (A) modify
the Punch List, or (B) request that the matter be submitted to the dispute
resolution procedures set forth in Article 32. The foregoing procedures
shall be repeated as necessary. Once the Punch List is established, the Seller
shall complete all items listed on the Punch List at its sole cost and expense
and to the Buyer’s satisfaction as promptly as possible.

 

8.3     Use. Upon Commercial Operation of a
Project, the Buyer shall assume full operational responsibility for such
Project. If the Buyer operates or directs the operation of a Unit for
commercial purposes prior to the date of Commercial Operation, the Unit will be
deemed to have achieved Commercial Operation on the date of the first such use.

 

8.4     Reliability
Calculation. Beginning on the day after the first day of Commercial Operation
of each Unit, the Seller shall monitor the data with the SCADA system in order
to calculate the reliability of such Unit, and shall perform such calculations
in accordance with Appendix A

 

8.5     Acceptance.
Each Unit will achieve Unit Acceptance on the date when it first meets there liability
criteria set forth in Appendix A of this Contract. Each Project will
achieve Final Acceptance

 

5

 

when (a) all
Units comprising such Project have achieved Unit Acceptance and (b) the
Seller has delivered to the Buyer a certificate for such Project in the form of
Exhibit D hereto (an “Acceptance Certificate”). If the Buyer
agrees with such Acceptance Certificate, the Buyer shall promptly countersign
such Acceptance Certificate. If the Buyer does not countersign or object to
such Acceptance Certificate within twenty (20) days after receipt, such
Acceptance Certificate shall be deemed confirmed and agreed by the Buyer on the
date that such Acceptance Certificate was originally delivered to the Buyer. If
the Buyer provides timely notice that it disputes such Acceptance Certificate,
the Seller shall either (i) at its sole cost and expense, immediately
correct and/or remedy the defects, deficiencies and other conditions so as to
achieve Project Acceptance, or (ii) request that the matter be submitted
to the dispute resolution procedures set forth in Article 32.

 

8.6      Spare
Parts and Consumables. The Seller shall provide the Buyer with all
spare parts and consumables required for Startup and Commissioning of the
Seller’s Work at the Seller’s own cost and expense.

 

ARTICLE
9. Inspections; Work at the Site

 

9.1      Inspections
and Tests at Seller’s Facilities. Upon the submission of
reasonable advance notice, the Buyer and/or its representative shall be
provided access to the Seller’s facilities during normal business hours to
obtain information on production progress and to make inspections of
manufacture, assembly and testing of the Equipment. Such access shall be
limited to areas relating to the manufacture, assembly and testing of the
Equipment and shall be subject to the Seller’s reasonable safety precautions; provided however, that if work of a
proprietary nature is being conducted in any such area, the Seller shall limit
the extent of the area or areas affected by such work to the maximum extent
possible and shall use all commercially reasonable efforts to provide the Buyer
with full access to such areas.

 

9.2      Inspections
and Tests at Suppliers’ Facilities. Upon the submission of reasonable
advance notice, the Seller shall make commercially reasonable efforts to
arrange for the Buyer’s access to Suppliers’ facilities during normal business
hours for the purposes described in Section 9.1.

 

9.3      Inspection
Not Acceptance. The Buyer’s inspection of the Equipment or its
failure to inspect shall not relieve the Seller of its obligation to fulfill
the requirements of this Contract, nor is it to be construed as acceptance by
the Buyer.

 

9.4      Hazardous
Substances. If during the performance by the Seller of the Work
at the Site the Seller encounters any Hazardous Substance at the Site which
requires special handling and/or disposal and which was not Released because of
the actions or omissions of the Seller, (a) the Buyer, at its own cost and
expense, shall promptly and properly remove and dispose of such Hazardous
Substance so that the Work may safely proceed, and (b) the Seller shall
not be obligated to commence or continue the Work until the Buyer causes any
such Hazardous Substance to be removed. If the Seller produces, transports, or
causes by its actions or omissions the Release of any Hazardous Substance ,
Seller, at its own cost and expense, shall promptly and properly remove and
dispose of the Hazardous Substance so that the Work may safely proceed.

 

9.5      Site
Security. During the performance of the Work, the Seller shall
comply with reasonable site security requirements provided to the Seller by the
Buyer.

 

9.6      Site
Obligations. Within the Seller’s scope of supply defined herein,
the Seller shall take all actions reasonably necessary to protect any and all
electric lines and poles, telephone lines and poles, public roads, highways,
waterways, railroads, sewer lines, natural gas pipelines, drainage ditches,
culverts, water wells, or springs and any and all property of third parties
from damage as a result of

 

6

 

performance of
the Work and shall comply with the requirements of all agreements providing the
Buyer the right to use the Site. To the extent any such property is damaged in
the course of the performance of the Work and is attributable to the negligence
or willful misconduct of the Seller or its Subcontractor or Supplier, the
Seller shall, at its own cost and expense, rebuild, restore or replace such
damaged property.

 

9.7       Emergencies.
In the event of an emergency that endangers persons or property resulting from
the Seller’s performance of the Work, the Seller shall take such action as may
be reasonable and necessary to prevent, avoid or mitigate injury, damage or
loss and shall report such incidents as soon as possible to the Buyer.

 

9.8       Other
Contractors. The Seller acknowledges that other contractors may
be working at the Site, and the Seller shall cooperate with and shall not
unreasonably delay, impede or otherwise impair the work of such contractors.

 

9.9       Access.
During any period in which the Seller is entitled to access to any Unit, the
Buyer shall ensure that: (a) the Seller will have reasonably unimpaired
access to all plant work areas, station cranes and similar equipment; provided, however, that the Seller shall
not unreasonably delay, impede or otherwise impair the activities of the Buyer
or the Buyer’s other contractors; and provided
further that the Seller shall comply with the Buyer’s and the Buyer’s
other contractors’ safety requirements; and (b) a copy of the control room
log is available to the Seller.

 

ARTICLE
10. Manner of Performance

 

10.1     Compliance
with Laws. The Seller shall comply with all applicable Laws governing
the manner in which it performs its obligations under this Contract.

 

10.2     Global
Sourcing. The Seller reserves the right in its discretion to obtain,
source, subcontract, manufacture, fabricate and assemble the Equipment and any
components and systems outside the United States; provided, however, that the Seller shall adhere to the
quality standards and warranties of the Seller under the Contract in all cases
irrespective of source, and all sourcing shall be consistent with all
applicable laws and regulations; and provided,
further, that the Seller shall bear full responsibility for all cost
increases that occur for whatsoever reason as a result of the Seller’s decision
to obtain, source, subcontract, manufacture, fabricate, assemble, or ship the
Equipment or any components or systems outside the United States.

 

10.3     Subcontractors and Suppliers. The
Seller shall be responsible for the Work and shall ensure that it conforms in
all respects to the requirements of this Contract, regardless of any failure of
any of its Subcontractors or Suppliers to perform and regardless of any
disagreement between any of its Subcontractors or Suppliers or between any of
its Subcontractors or Suppliers and the Seller. The Buyer shall not be deemed
to have any contractual obligation to, or relationship with, any of the Seller’s
Subcontractor or Supplier by virtue of this Contract.

 

10.4     Export Controls. In connection with
this Contract, the Parties shall comply at all times with all applicable export
control laws and regulations of
the U.S. Government. The Buyer shall not, except as such laws and regulations
may expressly permit, make any disposition by way of transshipment, re-export,
diversion or otherwise, of U.S. origin goods and technical data (including
computer software), or the direct product thereof, supplied by the Seller
hereunder. The obligations of the Parties to comply with all applicable export
control laws and regulations shall survive any termination of, or discharge of
any other obligations under, this Contract.

 

7

 

10.5       Weapons. The
Buyer hereby certifies that the Equipment, Services, technical data, software
or other information or assistance furnished by the Seller or its Affiliates
under this Contract will not be used in the design, development, production,
stockpiling or use of chemical, biological, or nuclear weapons either by the
Buyer or by any entity acting on the Buyer’s behalf.

 

ARTICLE
11. Price

 

11.1       Contract Price. In consideration of
the Equipment and the Services described in Attachment 2, the Buyer
shall pay to the Seller the
fixed price of US$*** (the “Contract Price”) in accordance with the
Payment Schedule and subject to the terms and conditions as set forth in this
Contract. Specific quantities and prices shall be incorporated into each
individual PO (the total of all such prices (as multiplied by the relevant
quantities) in each PO for a given Project, a “Purchase Order Price”).
The price of each Unit, including a pro-rata share of the Services, special
installation tools and shipping fixtures with respect to each Unit and the
SCADA system (collectively, the “Unit Price”), is set forth in Attachment
2 hereto. The currency in which the Contract Price, the Purchase Order
Price or any other payments due under this Contract are stated shall be the “Contract
Currency.”

 

11.2       ***.

 

11.3       Other
Adjustments. The Contract Price and/or the Purchase Order Price shall
be equitably adjusted from time to time to account for changes indicated in a
Change Order in accordance with Section 13.1 or 13.3, as applicable.

 

11.4       Pricing Assumptions. The Contract
Price and each Purchase Order Price are based on the design and manufacture of
the Equipment and performance of Services in accordance with: (a) those
portions of the codes and standards identified in Appendix A which the
Parties agree are applicable to the Equipment; (b) the applicable national
Laws of the country where the relevant Equipment is manufactured; (c) the
ambient site conditions (including temperature and wind conditions) identified
in Appendix A; (d) those site-specific environmental requirements (including those governing noise
emissions) identified in Appendix A; and (e) those local Laws
(including seismic and wind loading design requirements) which have been
identified in Appendix A; in each case as in effect on the date of this
Contract. For the avoidance of doubt, the Seller shall bear full responsibility
for any subsequent change in codes or standards identified in Appendix A
or in applicable national Laws that affect the Seller’s 

 

8

 

manufacturing,
fabrication, production, assembly, shipping or transporting processes or
activities under this Contract.

 

ARTICLE
12. Payment Schedule

 

12.1        Seller
Invoices. Payment shall be made in accordance with the Payment
Schedule; provided, however, that
for purposes of the Payment Schedule only, the requirements of Section 8.2(c) shall
be deemed fulfilled on the date that is fifteen (15) days after the date the
last Unit in a Project has fulfilled the requirements of Sections 8.2(a) and
(b) if the Unit has not been able to safely generate electric power solely
as a result of (a) lack of suitable wind, excessive wind speeds that
prevent turbine operation, or sustained on site hub height wind speeds in
excess of 33 miles per hour that prevent hub entry, or (b) the failure of
the Buyer, the Owner or any third party to provide interconnection or
transmission capability. On or before the fifth (5th) day of each
month, the Seller shall provide the Buyer with an invoice for all Progress
Payments (as so designated on Attachment 3) that are due from the Buyer
under this Contract. For the remaining payments reflected on Attachment 3,
the Seller shall provide the Buyer with an invoice at any time after completion
of such milestone; provided, however,
that, if the Seller completes the milestone in advance of the date indicated on
Attachment 4 the Buyer shall not be required to make such payment for
such milestone more than thirty (30) days prior to the date identified on Attachment
4. The Buyer shall pay the amount of each invoice that is undisputed within
thirty (30) days after receipt by wire transfer of immediately available funds.
If the thirtieth (30th) day is not a Business Day, the payment shall
be due on the next Business Day. Wire transfer instructions shall be provided
on each invoice. Late payments shall be subject to an interest charge equal to
the Default Rate at that time from the date due until paid in full.

 

12.2        Lien Releases. The Seller shall provide the
Buyer with (a) a final, unconditional lien release in the form attached
hereto as Exhibit E- 1 as each group of Units is commissioned
together with the invoice for the payment corresponding to the commissioning of
each group of Units and (b) a final, unconditional, notarized lien release
for all of the Units comprising each Project in the form attached hereto as Exhibit E-2
as the last group of Units comprising such Project is commissioned together
with the invoice for the payment corresponding to the commissioning of such
group of Units. For the avoidance of doubt, the Buyer shall not be obligated to
pay any of the commissioning milestone invoices unless it has received the
corresponding lien releases.

 

12.3        Punch List Withholding. If the Seller presents a Punch
List for any Project pursuant to Section 8.2, the Buyer shall have the
right to withhold one hundred
fifty (150%) of the total value of the items specified on such Punch List, as
finalized under Section 8.2, from its payment due and payable to the
Seller under the Payment Schedule until the date on which such items are fully
completed to the satisfaction of the Buyer.

 

12.4        Payment to Subcontractors and Suppliers.
The Seller shall indemnify and hold harmless the Buyer from the Seller’s
failure to promptly pay its Subcontractors and Suppliers with respect to the
Startup and Commissioning Work at the Site.

 

12.5        Buyer Invoices. If at any time the
Seller owes any amount to the Buyer (including, without limitation, payments
pursuant to Sections 11.2, 17.1, 17.2 and 18.2, the Buyer shall send the Seller
an invoice for such amount. The Seller shall pay any amount of such invoice
that is undisputed within thirty (30) days after receipt by wire transfer of
immediately available funds. If the thirtieth (30th) day is not a
Business Day, the payment shall be due on the next Business Day. Wire transfer
instructions shall be provided on each invoice. Late payments shall be subject
to an interest charge equal to the Default Rate at that time from the date due
until paid in full.

 

9

 

12.6       Disputed Payments. Within fifteen (15)
calendar days after receipt of any invoice under this Contract, the Party
receiving such invoice may, by notice to the Party rendering the invoice,
dispute, in good faith, any amount set forth in such invoice; provided, however, that the disputing
Party shall pay to the other Party the undisputed portion of the invoiced
amount when due. Any dispute relating to any amount of an invoice that is not
resolved by the Parties within fifteen (15) days after the receipt of the
notice of such dispute shall be resolved as provided in Article 32. If the
dispute (or any portion thereof) is resolved in favor of the disputing Party,
the other Party shall, within five (5) Business Days after the date of
such resolution, pay to the disputing Party amounts corresponding to such
portion of the dispute that has been resolved in favor of the disputing Party
plus interest at the Default Rate on such amounts from the date payable under
the invoice to the date paid.

 

12.7       Payment or Use Not Acceptance. No
payment to the Seller or any use of a Project by the Buyer shall constitute an
acceptance of any of the Equipment or Services furnished by the Seller, its
Subcontractors or Suppliers hereunder or shall relieve the Seller of any of its
obligations or liabilities under this Contract.

 

ARTICLE
13. Changes

 

13.1       Buyer-Initiated
Changes. The Buyer shall have the right to request that
the Seller consider changes to the Equipment or the Services, including the
Options described in Section 2.3 and any other modifications, alterations
or additions. If the Buyer wishes to request such a change, the Buyer shall
notify the Seller in writing. Within fifteen (15) days after receipt of such
notice (unless otherwise extended by mutual agreement), the Seller shall advise
the Buyer of the feasibility of the requested change, any options for
implementing the requested change, and the effect (if any) of each option on
the schedule and the Contract Price and/or the Purchase Order Price. The Buyer
may then submit to the Seller a draft Change Order.

 

13.2       Seller-Initiated
Changes. If the Seller wishes to propose a change to the
Equipment or the Services, the Seller shall submit to the Buyer a draft Change Order.

 

13.3       Changes in Law or Changes in Codes and Standards.
If any Change in Law or Change in Codes and Standards requires a change to the
Work that was not otherwise
caused by any failure or delay of the Party requesting the change, either Party
may propose a change by submitting a draft Change Order to the other Party. The
Parties acknowledge that a Change Order shall be granted providing for an
equitable adjustment to the time to perform the Work and the Contract Price
and/or the Purchase Order Price based on the impacts of such Change in Law or
Change in Codes and Standards; provided,
however, that if the Seller reasonably determines that any change to
the Equipment requested under this Section 13.3 is not practicable, the
Seller will so notify the Buyer, and the Buyer may terminate this Contract in
accordance with Section 21.1 or may direct completion without change.

 

13.4       Contents of Draft Change Order.
The draft Change Order shall include: (a) a technical description of the
proposed change in such detail as the Buyer may reasonably require; (b) a
lump sum firm price adjustment (increase or decrease) in the Contract Price
and/or the Purchase Order Price, if any, caused by the proposed change and a
payment schedule; and (c) all potential effect(s), if any, on the
Scheduled Major Component Shipment Dates set forth in Attachment 1, or
any other schedule or dates for performance by the Seller hereunder, caused by
the proposed change.

 

13.5       Process for Concluding Change Order.
The Buyer shall within ten (10) days after the date of receipt of the
draft Change Order either approve or disapprove
the draft Change Order, in writing, or request additional time to consider the
draft Change Order. If the Buyer approves the draft Change

 

10

 

Order, the Buyer and the Seller
shall then sign the Change Order which shall operate as an amendment to this
Contract.

 

13.6       Agreement Required. Notwithstanding
anything to the contrary in this Contract, all changes shall be subject to
mutual agreement of the Parties, and no Change Order shall be effective until
signed by both Parties. Neither Party shall proceed with any requested change
until the Change Order has been signed by both Parties.

 

ARTICLE
14. Spare Parts and Consumables

 

14.1       Listing
of Spare Parts and Consumables. The Seller shall provide to the Buyer a
list of recommended spare parts, including any spare parts obtained from
equipment manufacturers and other commercial vendors relating to the Work, and
the price of each item. The prices listed do not include the cost of delivery,
insurance, sales taxes, customs, duties, or other similar charges, all of which
shall be the responsibility of the Buyer. The Seller shall also provide the Buyer
with a schedule of all consumables required for the assembly, erection, and
installation of the Equipment.

 

14.2       Access to Spare Parts. The Seller
shall sell to the Buyer spare parts for the repair of each Unit for a period of
at least twenty (20) years after Final Acceptance for the last Project under
this Contract; provided, however, that,
if the Seller discontinues production of any spare part or otherwise is unable
or fails to supply such spare part to the Buyer and the Buyer is unable to
obtain such spare part from a readily available commercial vendor, the Seller
shall provide to the Buyer the address and identity of the Seller’s
Subcontractor or Supplier of such spare part and permission to obtain such
spare part directly from such Subcontractor or Supplier; and provided, further, that if the Seller
discontinues production of any spare part and the Buyer is unable to obtain
such spare part from a readily available commercial vendor or any of the Seller’s
Subcontractors or Suppliers, the Seller hereby agrees that the Seller shall not
assert, or make any claim under, any of its Intellectual Property rights with
respect to such spare part in the event the Buyer elects to make such spare
part itself or through its Subcontractors or Suppliers.

 

ARTICLE
15. Title and Risk of Loss.

 

15.1       Title
Warranty. The Seller warrants and guarantees that legal title to, and
ownership of, the Equipment shall be free and clear of any and all liens,
security interests, claims or other encumbrances when title thereto passes to
the Buyer.

 

15.2       Transfer
of Title. Title to each item of the Equipment shall pass to the Buyer
on the date when the Seller makes such item available for Shipment from the
warehouse or from the manufacturer’s facility; provided,
however, that when such item is to be shipped from within a country
other than the U.S., title shall pass to the Buyer when such item has been
cleared for import into the U.S. Title to the Services shall pass to the Buyer
as performed.

 

15.3       Transfer
of Title upon Termination for Convenience. If this Contract is
terminated for the convenience of the Buyer pursuant to Section 21.1, (a) the
Seller shall retain title to each terminated Unit, and (b) title to each
item of Equipment comprising the non-terminated Units (if applicable) shall
pass to the Buyer upon the later of (i) payment to the Seller of 100% of
the Unit Price of such non-terminated Unit and of the per-Unit termination
charges calculated in accordance with section 21.1 and the Termination
Schedule, and (ii) when title to such item of Equipment would otherwise
have passed pursuant to this Article 15.

 

11

 

15.4       Risk
of Loss. With respect to each item of the Equipment, materials,
supplies and other elements of the Work, risk of loss shall pass to the Buyer
upon (a) Delivery to the Buyer, if the Seller transports the item pursuant
to Section 5.2, (b) transfer of title to the Buyer, if the Seller
ships the item to storage pursuant to Article 6, or (c) transfer of
title to the Buyer and satisfaction of the Seller’s obligations set forth in Section 5.3,
if the Buyer or a third party is transporting the item pursuant to Section 5.3.
If damage or destruction of the materials, supplies or other elements of the
Work occurs prior to the transfer of risk of loss, the Seller shall proceed to
repair, restore or replace the affected element at its cost and expense, provided that the Buyer agrees to make
available to the Seller any and all insurance proceeds (and rights to bring
claims under the Buyer’s insurance policies) which may apply to the damage or
destruction.

 

ARTICLE
16. Warranty

 

16.1       Warranty Period. The Seller shall
warrant each Unit and its associated Equipment and Services on the terms set
forth herein from the effective date of this Contract until the earlier of: (a) the
date that is twenty-four (24) months after Commercial Operation of such Unit,
or (b) the date that is thirty-nine (39) months after Shipment of the last
Major Component of such Unit (the “Warranty Period”).

 

16.2       Nature of the Warranty. The Seller
warrants to the Buyer that during the Warranty Period: (a) the Equipment
supplied hereunder shall be designed and fit for the purpose of generating
electric power when operated in accordance with the Seller’s specific operation
instructions and, in the absence thereof, in accordance with generally accepted
operation practices of the wind power industry; (b) the Equipment supplied
hereunder shall be free from defects in material, workmanship and title; (c) the
Equipment supplied hereunder shall be new and unused; (d) the Equipment
supplied hereunder conforms in all respects to the Technical Specifications;
and (e) the Services supplied hereunder shall be performed in a competent,
diligent manner in accordance with Prudent Engineering Practices, Prudent
Industry Practices, the Seller’s manufacturer’s requirements and all applicable
Laws.

 

16.3       Serial
Defects. If the same defect or deficiency shall occur in the same part
or component of twenty per cent (20%) or more of the Units (a “Serial Defect”),
the Seller shall promptly investigate the root cause of such Serial Defect,
determine whether such Serial Defect is reasonably likely to occur in any
additional Units, and provide the Buyer with a detailed written report
addressing these issues. The warranties set forth in this Article 16 shall
continue to be in full force and effect for the part or component containing
the Serial Defect for an additional eighteen (18) months beyond the expiration
of the applicable Warranty Period. Any dispute between the Parties as to
whether there is a Serial Defect shall be determined in accordance with Article 32.

 

16.4       Remedy. If a Project or any part
thereof does not meet the warranties specified in Section 16.2 during the
Warranty Period, the Buyer shall promptly notify the Seller in writing and
shall promptly make such Project or part thereof available for correction. The
Seller, at its sole cost and expense, shall as soon as is practicable
thereafter correct any warranty defect or breach by repairing or replacing (at
its option) the defective or inadequate parts of any Equipment or by
reperforming any defective or inadequate Services. The Seller shall be
responsible for the installation of any repaired or replacement part and for
payment of any customs duties or similar levies that may be assessed as a
result of the Shipment of any such repaired or replacement part. The condition
of any tests shall be mutually agreed upon, and the Seller shall be notified
of, and may be represented at, all tests that may be made. In the event that
the Seller refuses, fails, or is otherwise unable, to remedy the warranty
defect or breach within a reasonable period of time after the receipt of notice
from the Buyer, the Buyer shall have the right to hire one or more third
parties to remedy such defect or breach and the Seller will be obligated to pay
the

 

12

 

reasonable costs of such third
party(ies) if the Seller agrees there was a warranty defect or breach or if it
is determined that there was a warranty defect or breach in dispute resolution.

 

16.5       Warranty
on Remedial Work. Any reperformed Service or repaired or replacement
part furnished under this warranty shall carry warranties on the same terms as
set forth in this Article 16, except that the warranties on such
reperformed Service or repaired or replacement part shall extend until the
later of: (a) the end of the original Warranty Period, or (b) the
date that is twelve (12) months after the date of such reperformance, repair or
replacement. In any event, the warranty period for such reperformed Service or
repaired or replacement part shall end twelve (12) months after expiry of the
Warranty Period, subject to Section 16.3.

 

16.6       Exclusions. The Seller does not warrant
the Equipment or any repaired or replacement parts against normal wear and
tear, including that due to the environment or operation. The warranties and
remedies set forth herein are further conditioned upon (a) the storage in
material conformance with the storage instructions provided by the Seller,
installation, operation, and maintenance of the Equipment and in material
conformance with the operation instruction manuals (including revisions
thereto) provided by the Seller and/or its Subcontractor or Suppliers as
applicable and (b) repair or modification only pursuant to the Seller’s
instructions, with the Seller’s approval (which shall not be unreasonably
withheld), or in accordance with Section 16.4. The Buyer shall keep proper
records of operation and maintenance during the Warranty Period. These records
shall be kept in the form of log sheets, and copies shall be provided to the
Seller upon its request and at its sole cost and expense.

 

16.7       Software Warranties. The Seller
warrants to the Buyer that during the Warranty Period and under normal use the
media in which the Software is embedded shall be free from defects in material
and workmanship. The Seller warrants to the Buyer that during the Warranty
Period the Software will perform substantially in accordance with its
Documentation. If, during the Warranty Period, an Error occurs (where “Error”
is defined as a failure of the unmodified (except as contemplated in the
Technical Specifications or the Documentation) Software to operate
substantially in accordance with the Technical Specifications and the
Documentation), the Seller will use commercially reasonable efforts to correct
such Error, if the Buyer furnishes the Seller with the following: (i) written
notice of the warranty claim, including a description of the failure to perform
in accordance with the Documentation and a specific description of the
operating conditions (including the specific software/hardware configuration)
under which the failure occurred, and (ii) to the extent feasible, a representative
sample of inputs for repeating and analyzing the failure. If the Seller is
unable, after using commercially reasonable efforts, to correct the Error, the
Parties shall follow the dispute resolution process set forth in Article 32.
The Seller does not warrant that the Software or the Documentation (or the
Buyer’s use of it) will be free from all Errors or that its use will be
uninterrupted. Any remedial steps taken by the Seller shall extend the Warranty
Period in accordance with Section 16.5. Except as expressly authorized by
the Seller in writing, all Third-Party Software shall carry only the warranties
provided by its owners. The Seller makes no warranties with respect to the
Third-Party Software.

 

16.8       Exclusive Remedies and Warranties.
Except for the provisions of Articles 12, 17, 18, 19, 21, 27 and 28, the
preceding paragraphs of this Article 16 set forth the exclusive remedies
for all claims based on failure of, or defect in, the Equipment and Services
provided under this Contract, whether the failure or defect arises before or
during the Warranty Period and whether a claim, however instituted, is based on
contract, indemnity, warranty, tort (including negligence), strict liability or
otherwise. Except for the provisions of Articles 12 17, 18, 19, 21, 27 and 28,
the foregoing warranties are exclusive and are in lieu of all other warranties
and guarantees whether written, oral, implied or statutory. NO IMPLIED
STATUTORY WARRANTY OF MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE SHALL
APPLY.

 

13

 

ARTICLE
17. Delays in Shipment and Commercial Operation

 

17.1       Shipment. If any of the Major
Components associated with any Unit is not Shipped on or before (with the prior
approval of the Buyer) the Scheduled Major Component Shipment Date set forth in
Attachment 1 for reasons attributable to the Seller and not excused
elsewhere in this Contract, the Seller shall pay as liquidated damages, and not
as a penalty, a sum calculated in accordance with the table below for each Unit
for each day of delay after the Scheduled Major Component Shipment Date as set
forth in Attachment 1 until actual Shipment of the last Major Component
for such Unit:

 

	
  Days after Scheduled Major

  Component Shipment Date

  	
   

  	
  Liquidated Damages

  (per day or partial day)

  
	
  ***

  	
   

  	
  $

  	
  ***

  
	
  ***

  	
   

  	
  $

  	
  ***

  
	
  ***

  	
   

  	
  $

  	
  ***

  

 

Such
liquidated damages, if any, shall be computed based on the date of Shipment of
the last Major Component for a given Unit and such computations shall disregard
any part of or accessory to the Major Component which may be shipped separately
and arrive later unless such part of or accessory to the Major Component is
necessary for the installation of the Major Component.

 

17.2        Commercial Operation.
If any Unit has not achieved Commercial Operation (as defined in Section 8.2
within ten (10) days following Mechanical Completion, the Seller shall pay
as liquidated damages, and not as a penalty, a sum calculated in accordance
with the table below for each Unit for each day of delay until Commercial
Operation of such Unit is achieved:

 

	
  Days of Delay after  

  Mechanical Completion date

  plus 10 days

  	
   

  	
  Liquidated
  Damages

  (per day or partial day)

  
	
  ***

  	
   

  	
  $

  	
  ***

  
	
  ***

  	
   

  	
  $

  	
  ***

  

 

provided, however, that the date of Mechanical
Completion for any Unit shall be extended day for day for any full day on which
Commercial Operation for such Unit is delayed solely as a result of (a) lack
of suitable wind, excessive wind speeds that prevent turbine operation, or
sustained on site hub height wind speeds in excess of 33 miles per hour that
prevent hub entry, (b) the failure of the Buyer, the Owner or any third
party to provide interconnection or transmission capability, or (c) the
Buyer operating or directing the operation of such Unit for commercial purposes
prior to the date of Commercial Operation.

 

17.3       Limitations.
The Seller’s aggregate liability under this Article 17 for liquidated
damages for delay in Shipment of Major Components and for delay in Commercial
Operation with respect to a Project that includes the delayed Unit(s) shall
not exceed *** percent (***%) of the amount of the Purchase Order Price for
such Project. The liquidated damages for delay in Shipment of Major Components
and for delay in Commercial Operation shall be the Buyer’s sole and exclusive
remedies for such delays.

 

17.4       Nature of Liquidated Damages. The
Parties acknowledge that the Buyer shall suffer damages that will be difficult
to ascertain if the Seller fails to comply with the Scheduled Major Component
Shipment Dates or if Commercial Operation is delayed. The Parties agree that
the liquidated damages specified in this Article 17 are reasonable
compensation for such failures and delays.

 

14

 

ARTICLE 18.
Power Curve Guarantee

 

18.1         Guarantee. If a Project
is tested in accordance with this Contract and the Technical Specifications,
and subject to the conditions therein specified, the Seller guarantees that
during the Warranty Period such Project will achieve *** percent (***%) of the
energy yield computed on the basis of the theoretical characteristic
performance curve included in Appendix A (the “Power Curve Guarantee”).

 

18.2         Power
Curve Tests. To demonstrate that the Power Curve Guarantee has
been fulfilled, the Buyer may elect at its own expense to cause the Units
identified by the Buyer prior to the Commercial Operation of the first Unit
(the “Nominated Units” as described in further detail in Appendix A,
Technical Specifications) to be tested by an independent engineer reasonably
acceptable to the Seller. If when first so tested the average performance of
all Nominated Units fails to meet the Power Curve Guarantee, then: (a) the
Seller shall reimburse the Buyer for the cost of the initial test; (b) during
the three (3) months next following such test, the Seller shall be
afforded thirty (30) continuous days of access to each of the Nominated Units
to undertake adjustments, and no later than the end of such three-month period
the Seller shall re-test the Nominated Units at its sole cost and expense; provided, however, that the Buyer shall
pay for the last, successful test; and (c) at the end of each successive
twelve-month portion of the Warranty Period, the Seller shall pay to the Buyer
as liquidated damages, and not as a penalty, a sum calculated in accordance
with Attachment 6, commencing at the beginning of the Warranty Period
and continuing until the end of the Warranty Period or until a subsequent test
of the Nominated Units shows that they meet the Power Curve Guarantee.

 

18.3         Re-Testing. If at the
first re-test the Nominated Units fail to meet the Power Curve Guarantee, the
Seller shall be permitted reasonable access to the Nominated Units to perform
adjustments and may at its option and expense perform additional tests at
intervals of no less than three (3) months until the end of the Warranty
Period or until a subsequent test of the Nominated Units shows that they meet
the Power Curve Guarantee. If at the end of the Warranty Period the Nominated
Units have not met the Power Curve Guarantee, the Seller shall pay to the Buyer
as additional liquidated damages, and not as a penalty, a sum calculated in
accordance with Attachment 6.

 

18.4         Other
Units. At the Buyer’s option, the
Seller shall, at its expense, either (a) make any repairs performed on one
or more Nominated Units to all of the Units, or (b) make any repairs
performed on one or more Nominated Units to the Units designated by the Buyer.

 

18.5         Limitations. The Seller’s
aggregate liability under this Article 18 for liquidated damages for
failure to achieve the Power Curve Guarantee shall not exceed *** percent (***%) of the
Purchase Order Price for the relevant Project. The liquidated damages for
failure to achieve the Power Curve Guarantees and the corrective action
required by this Article 18 to be taken by the Seller for deficiencies in
performance shall be the Buyer’s exclusive remedies for such deficiencies.

 

18.6         Nature of
Liquidated Damages. The Parties acknowledge that the Buyer shall
suffer damages that will be difficult to ascertain if the Seller fails to
achieve the Power Curve Guarantee. The Parties agree that the liquidated
damages specified in this Article 18 are reasonable compensation to the
Buyer for such failure.

 

ARTICLE 19.
Sound Level

 

19.1         Guarantee. When tested
in accordance with this Contract and the Technical Specifications, and subject
to the conditions therein specified, the Seller guarantees that the sound
emitted

 

15

 

from each Unit during the
Warranty Period shall not exceed the Sound Level Guarantee set forth in Appendix
A.

 

19.2         Sound
Tests If any Unit fails to meet the Sound Level
Guarantee, the Seller shall at its option and at its sole cost and expense either
(a) take such corrective action as will cause such Unit to achieve the
guaranteed sound level, including adjustments to controls or operating
parameters, or (b) with the Buyer’s consent, effect a release or other
settlement of any claims (whether for nuisance or otherwise) from cognizant
governmental authorities and persons directly affected by the sound level at
the Unit. Except as may be provided in the Contract, the performance of the
obligations set forth in subparagraphs (a) or (b) above shall be the
Buyer’s exclusive remedy for excess sound levels. If the corrective action
taken pursuant to item (a) above includes any adjustment to controls or
operating parameters, the Buyer shall have the right to request the Seller to
re-test the Power Curve Guarantee with respect to the relevant Units, in which
case the provisions of Article 18 shall be applicable.

 

ARTICLE 20.
Suspension

 

20.1         Suspension
by Buyer of Work at Site. The Buyer shall have the
right, at any time, to suspend Work at the Site upon written notice to the
Seller. Upon the Seller’s receipt of such notice, the Seller shall immediately
suspend the performance of all Work at the Site under this Contract, and the
Seller shall notify all of its Subcontractors and Suppliers of the suspension.
During the suspension, the Seller shall protect and take care of all Work
supplied or to be supplied under this Contract, and the Parties shall cooperate
in good faith to maintain the commitments of the Seller’s Subcontractors and
Suppliers. The Seller shall use commercially reasonable efforts to minimize the
impact of the suspension on the costs and delays it incurs as a result of the
suspension. Any costs reasonably and actually incurred by the Seller as a
result of the suspension (including storage costs) in excess of the costs the
Seller would otherwise have incurred shall be payable by the Buyer within
thirty (30) days after receipt of an invoice from the Seller. Performance of
the Seller’s obligations shall be equitably extended for a period of time based
upon the time lost as a result of the suspension and the impact on the Seller’s
performance of the Work.

 

20.2         Suspension
by Buyer of Manufacturing. It is expressly agreed
that the Buyer shall have no right to suspend manufacture of the Equipment.

 

ARTICLE 21.
Termination

 

21.1         Termination
for Convenience. The Buyer shall have the right to provide notice to
the Seller terminating this Contract for its convenience with respect to any
Unit until the earlier of the dates: (a) when title to such Unit has
passed to the Buyer pursuant to Article 15, or (b) when such Unit has
been Shipped to the Buyer. Termination will be effective upon the later of: (x) receipt
by the Seller of termination charges calculated on a per Unit basis with
respect to the applicable number of Units in accordance with the Termination Schedule
included in Attachment 7 and (y) receipt by the Seller of 100% of the
Unit Price for each Unit which was not terminated.

 

21.2         Grounds
for Termination by Buyer. The Buyer shall have the
right to terminate this Contract for cause in the event that the Seller: (a) becomes
insolvent, makes an assignment for the benefit of its creditors, has a receiver
or trustee appointed for the benefit of its creditors, or files for protection
from creditors under any bankruptcy or insolvency laws; provided, however, that, in the case of an
involuntary proceeding, such proceeding is not dismissed or stayed within
forty-five (45) days after it is commenced; or (b) breaches and fails to comply
with or perform its material obligations; provided,
however, (i) that the Buyer shall first have provided the
Seller with written notice of the nature of such

 

16

 

breach and of the Buyer’s
intention to terminate this Contract as a result of such breach, and (ii) that
the Seller shall have failed within thirty (30) days after receipt of such
notice to cure such breach.

 

21.3         Remedy in
the Event of Termination by Buyer. If the Buyer terminates
this Contract as provided in Section 21.2, in addition to its rights to
pursue any remedy existing at law or in equity, the Buyer shall have the right
to have the Work (or comparable equipment and services) completed by other
vendors for equipment and services comparable to the Equipment and Services described
in this Contract. If the sum of (a) the total cost to the Buyer of
completing the Work, (b) all other damages suffered by the Buyer as a
result of the default by the Seller, and (c) all amounts previously paid
to the Seller under this Contract, exceeds the Contract Price, the Seller shall
pay the difference to the Buyer in the Contract Currency within thirty (30)
days after receipt of an invoice from the Buyer.

 

21.4         Technical
Assistance; Upgrades and Support. Upon termination of this Contract, the Seller shall
provide the Buyer for the remaining life of each Project, but not to exceed
twenty (20) years from the date of Final Acceptance of the Project, with (a) technical
assistance and support and all hardware or software improvements for such Project
generally made available to the purchasers of the Seller’s Equipment and/or
Services, and (b) Software updates and upgrades and technical bulletins
and updates made generally available to the Seller’s customers or provided to
its own operating personnel for use in connection with such Project, together
with any revisions or other modifications to the Software as the Buyer may
request from time to time. All such technical assistance, improvements,
Software updates and upgrades and technical bulletins and updates shall be
provided at the Buyer’s request, and the Seller shall be reimbursed therefore
at the then-current rates charged by the Seller from time to time for similar
services to other customers of the Seller which have purchased wind power
generation equipment, or, if such services are not being provided to such
customers, then at the Seller’s standard rates. The Buyer shall use such
Software updates and upgrades in accordance with the License set forth in Article 28.

 

21.5         Grounds
for Termination by the Seller. Subject to the rights of
any Financing Party, the Seller shall have the right to terminate this Contract
for cause in the event that the Buyer: (a) becomes insolvent, makes an
assignment for the benefit of its creditors, has a receiver or trustee
appointed for the benefit of its creditors, or files for protection from
creditors under any bankruptcy or insolvency laws; provided, however, that, in the case of an involuntary
proceeding, such proceeding is not dismissed or stayed within forty-five (45)
days after it is commenced; or (b) fails to make any payment when due as
set forth in this Contract; provided,
however, (i) that the Seller shall first have provided the
Buyer with written notice of the nature of such failure and of the Seller’s
intention to terminate this Contract as a result of such failure, and (ii) that
the Buyer shall have failed within thirty (30) days after receipt of such
notice to correct such failure.

 

21.6         Remedy in
the Event of Termination by the Seller. If the Seller
terminates this Contract as provided in Section 21.5, the Buyer shall pay
to the Seller the charges set forth in the Termination Schedule in Attachment
7 as the Seller’s exclusive remedy, and the Seller shall have no right to
damages or compensation for such termination other than payment of the charges
set forth in Attachment 7.

 

21.7         Financing
Party Cure Rights. The Seller may not exercise its right to
terminate this Contract under Section 21.5 unless the Seller delivers to
the Financing Parties notice of the Buyer’s failure to cure the default (a “Default
Notice”) and the Seller’s intent to terminate as a result thereof at
the same time the Seller delivers notice thereof to the Buyer. Each Financing
Party or one or more of its designees shall have the right to cure the Buyer’s
default within sixty (60) days after the date the Financing Party receives such
Default Notice; provided, however,
that if the nature of any non-monetary default by the Buyer is such that it
cannot be cured by the Financing Party or one or more of its designees without
having taken possession of one or more of the Projects, the time provided
herein to remedy such default shall be extended for such period of time as is
reasonably necessary for the Financing Party or one

 

17

 

or more of its designees to
lawfully obtain possession of, and be legally entitled to operate, such
Projects. If the Financing Parties intend, or cause one or more of their
designees, to assume this Contract, they shall provide notice thereof to the
Seller within sixty (60) days after receipt of the Default Notice. For the
avoidance of doubt, the Financing Party may assign part or all of the rights
under this Contract, including the Equipment and related services, to one or more
designees without the Seller’s consent. Once any default of the Buyer under
this Contract is cured by one or more Financing Parties or one or more of their
designees, the Seller’s rights to terminate this Contract and to collect
termination charges as a result of such default shall be of no further force
and effect.

 

ARTICLE 22.
Excusable Delays

 

22.1         Excusable
Delays. Neither Party shall have any liability or be
considered to be in breach or default of its obligations under this Contract to
the extent that performance of such obligations is delayed or prevented,
directly or indirectly, due solely to causes that are unforeseeable as of the
effective date of this Contract and beyond its reasonable control, including (a) acts
of God, acts (or failures to act) of governmental authorities after the
exercise of reasonable diligence, fires, severe weather conditions,
earthquakes, strikes or other labor disturbances, floods, war (declared or
undeclared), epidemics, civil unrest, riots, delays in transportation, or car
shortages; or (b) in the case of the Seller, shipment to storage in
accordance with Article 6. The affected Party shall (w) notify the
other Party promptly of the occurrence of any such event (and, in any event,
within ten (10) days after such event) describing the details of the
event; (x) notify the other Party of the expected duration and likely
impact of the event within twenty (20) days after such event; (y) use all
commercially reasonable efforts to overcome the cause and effects of such delay;
and (z) notify the other Party promptly after the affected Party is able
to resume performance. The dates of Shipment or of other performance under this
Contract shall be equitably extended for a period of time based upon the time
lost as a result of the excusable delay and the impact on the Seller’s
performance of the Work.

 

22.2         Termination
for Extended Delay. If the entire Work is suspended because of
an excusable delay for more than one hundred eighty (180) days and the Parties
have not agreed upon a revised basis for continuing the Work at the end of such
period, then either Party, upon thirty (30) days written notice, may terminate
the Contract with respect to the portion of Equipment to which title has not
yet passed at no cost or penalty, unless the delay was caused by the Party
seeking to terminate.

 

ARTICLE 23.
Indemnity

 

23.1         General
Indemnity Each Party (each an “Indemnifying Party”)
shall indemnify, defend and hold harmless, the other Party, its Affiliates, and
their officers, employees, agents, Financing Parties and Subcontractors (each
an “Indemnified Party”) against any and all suits, actions, losses,
damages, claims or liability (including, without limitation, attorneys’ fees
and expenses) for any injury or death to any person or damage to property of
third parties arising out of, or in connection with, negligence or willful
misconduct of the Indemnifying Party or its officers, employees, agents or
Subcontractors.

 

23.2         Environmental Indemnities.

 

23.2.1 The Seller shall
indemnify, defend and hold harmless the Buyer, its Affiliates, officers,
employees, agents and Financing Parties against any and all suits, actions,
response actions, orders, losses, damages, civil or criminal penalties, fees,
costs, expenses, claims or liabilities (including, without limitation,
attorneys’ fees and expenses) arising out of, or in connection with, the
Release (or alleged Release) of any Hazardous Substances introduced to the Site
by the Seller, or violations (or alleged violations) of any laws pertaining to
human health and the environment, by the Seller, its Affiliates, officers,
employees or agents or by the Seller’s Subcontractors or Suppliers in
connection with

 

18

 

the performance of the Work,
including, without limitation, with respect to (a) any costs, damages or
liabilities associated with personal injury or death, or (b) damage to
property, including the costs of investigation, cleanup, removal, remedial,
corrective or response action. Notwithstanding the foregoing provisions of this
Section 23.2.1, the Seller shall not be responsible for any loss or
portion thereof (a) to the extent attributable to the negligence or
willful misconduct of the Buyer, or (b) to the extent attributable to the
breach by the Buyer of any provision of this Contract.

 

23.2.2      The Buyer shall
indemnify, defend and hold harmless the Seller, its Affiliates, and its and
their officers, employees, agents against any and all suits, actions, response
actions, orders, losses, damages, civil or criminal penalties, fees, costs,
expenses, claims or liabilities (including, without limitation, attorneys’ fees
and expenses) arising out of, or in connection with, the Release (or alleged
Release) of any Hazardous Substances at the Site (other than any Hazardous
Substances introduced to the Site by the Seller), or violations (or alleged
violations) of any laws pertaining to human health and the environment in
respect of the Site, by the Buyer, or its Affiliates, officers, employees or
agents, including, without limitation, with respect to (a) any costs,
damages or liabilities associated with personal injury or death, or (b) damage
to property, including the costs of investigation, cleanup, removal, remedial,
corrective or response action. Notwithstanding the foregoing provisions of this
Section 23.2.2, the Buyer shall not be responsible for any loss or portion
thereof (i) to the extent attributable to the negligence or willful
misconduct of the Seller, or (ii) to the extent attributable to the breach
by the Seller of any provision of this Contract.

 

23.3         Lien
Indemnity. The Seller shall indemnify, defend and hold
harmless the Buyer, its Affiliates, and its and their officers, employees,
agents, Financing Parties and contractors (other than the Seller) against any
and all liens filed in connection with performance of the Work under this
Contract (including, without limitation, attorneys’ fees and expenses incurred
in discharging such liens or similar encumbrances). If the Seller fails to
immediately discharge any lien or similar encumbrance upon any Project or any
part thereof, or any other property of the Seller, or property where such
Project is located, or any Equipment or Services for which the Seller is
responsible hereunder, the Seller shall satisfy or defend any such lien or
similar encumbrance; provided, however,
that the Seller shall have the right to submit a bond satisfactory to the Buyer
and the Financing Parties in the amount of any such lien or encumbrance if the
Seller, despite its commercially reasonable efforts, has been unable to obtain
discharge hereof; and provided, further,
that the Buyer shall not be required to accept any such bond in lieu of
discharge at or after the Final Acceptance. If the Seller does not promptly
satisfy such lien or similar encumbrance (or, where permitted, fails to provide
the Buyer a bond in lieu thereof), the Buyer shall have the right, at its
option and after notice to the Seller, to post a bond or pay or settle such
lien or similar encumbrance by bond or agreement, and the Seller shall within
ten (10) days after request of the Buyer, reimburse the Buyer for all
direct costs incurred by the Buyer to post such bond, discharge such lien or
similar encumbrance and/or pursue any other remedies, including administrative
costs, attorney’s fees and other direct expenses.

 

23.4         Concurrent
Negligence. If any damage or injury is
caused by the joint or concurrent negligence of the Parties, their officers,
employees, agents, Subcontractors, or Suppliers, the Parties shall bear the
loss in proportion to their or their officers’, employees’, agents’,
Subcontractors’ or Suppliers’ degree of negligence.

 

23.5         Notice and
Procedure. Promptly after the Indemnified Party receives any
claim or notice of the commencement of any action, administrative or legal
proceeding, or investigation as to which the indemnity provided for in Sections
23.1 through 23.3 may apply, the Indemnified Party shall notify the
Indemnifying Party in writing of such fact; provided,
however, that the rights of the Indemnified Party shall not be
forfeited by the failure to give the Indemnifying Party notice to the extent
that said failure does not have a material and adverse effect on the defense of
the matter. The Indemnifying Party shall

 

19

 

assume on behalf of the
Indemnified Party, and conduct with due diligence and in good faith, the
defense thereof with counsel reasonably satisfactory to the Indemnified Party; provided, however, that the Indemnifying
Party shall not settle any such action or investigation unless approved by the
Indemnified Party (which approval shall not be unreasonably withheld).
Notwithstanding the foregoing, (a) the Indemnified Party shall have the
right to be represented in any such action or investigation by advisory counsel
of its own selection and at its own expense, and (b) if the Indemnified
Party shall have reasonably concluded that (i) there may be legal defenses
available to it that are different from, or additional to, or inconsistent with,
those available to the Indemnifying Party, or (ii) there exists a conflict of
interest between the Indemnifying Party and the Indemnified Party, then, in
either case, the Indemnified Party shall have the right to select separate
counsel to participate in the defense of such action on its own behalf and the
Indemnifying Party shall indemnify the Indemnified Party for the fees and
expenses of such separate counsel. If any claim, action, proceeding or
investigation arises as to which the indemnity provided for in Section 23.1,
23.2 or 23.3 applies and the Indemnifying Party fails to assume the defense of
such claim, action, proceeding or investigation, then the Indemnified Party
may, at the Indemnifying Party’s expense, contest or settle such claim, and the
Indemnifying Party shall remain obligated to indemnify the Indemnified Party
for any and all losses, damages, and liability (including, without limitation,
attorneys’ fees and expenses) associated therewith. The payment of the
indemnity pursuant to this Section 23.5 shall not be predicated on the
Indemnified Party having made payment on any suit, action, loss, damage, claim
or liability.

 

23.6         “Third
Parties” Defined. “Third parties” under this Article 23 do not
include the Parties, their affiliates, agents, successors or assigns, any
operation or maintenance contractor of the Parties, or any entity (a) with
an equity or security interest in either Party, or their assets or property, (b) that
seeks to claim any rights, power or privileges of one of the Parties, or (c) that
seeks to claim as a third party beneficiary of one of the Parties. No portion
of the Equipment, the Project or electricity is “property of third parties” for
the purposes of this Article 23.

 

ARTICLE 24.
Limitations of Liability

 

24.1         Limitation
on Liquidated Damages. The Seller’s aggregate liability for
liquidated damages for delay in Shipment of the Major Components and for delay
in Commercial Operation under Article 17 and for failure to achieve the
Power Curve Guarantee under Article 18 for each Project shall not exceed *** percent (***%) of the
Purchase Order Price for the relevant Project.

 

24.2         Limitation
on the Seller’s Liability. The total liability of the
Seller for all claims arising out of, or relating to the performance or breach
of, this Contract or the use of any Equipment or Services for each Project
shall not exceed the Purchase Order Price for such Project (as adjusted
pursuant to Article 11); provided,
however, that this limitation shall not apply to any claim (a) due
to the fraud, gross negligence, or willful misconduct of the Seller, or (b) for
indemnification for third party claims as provided for in this Contract. The
Seller’s liability for each Project shall terminate forty-five (45) months
after Commercial Operation of the last Unit purchased under the Purchase Order
for such Project. The Buyer may enforce a claim that accrued before that date
by giving a written notice to the Seller no later than *** months after
Commercial Operation of the last Unit purchased under such Purchase Order.

 

24.3         Limitation
on the Buyer’s Liability. The total
liability of the Buyer for all claims arising out of, or relating to the
performance or breach of, this Contract or the use of any Equipment or Services
for each Project shall not exceed the Purchase Order Price for such Project (as
adjusted pursuant to Article 11);
provided, however, that this limitation shall not apply to any claim
(a) due to the fraud, gross negligence, or willful misconduct of the
Buyer, or (b) for indemnification for third party claims as provided for
in this Contract. The Buyer’s liability for each Project shall terminate forty-five
(45) months

 

20

 

after Commercial Operation
of the last Unit purchased under the Purchase Order for such Project. The
Seller may enforce a claim that accrued before that date by giving a written
notice to the Buyer no later than *** months after Commercial Operation of the
last Unit purchased under such Purchase Order.

 

24.4         Consequential
and Other Damages. Except to the extent expressly provided in
this Contract, neither Party shall be liable to the other Party for loss of
profit or revenues, loss of product, loss of use of the Work or any associated
equipment, interruption of business, cost of capital, cost of replacement,
downtime costs, or any special, consequential, incidental, indirect, punitive
or exemplary damages.

 

24.5         “Seller”
and “Buyer” Defined. For the purposes of this Article 24,
the term “Seller” shall mean the Seller, its Affiliates, its Subcontractors and
Suppliers of any tier, and their agents and employees, individually or
collectively. For the purposes of this Article 24, the term “Buyer” shall
mean the Buyer, its Affiliates, contractors of any tier (other than the Seller
and its Subcontractors and Suppliers of any tier), and their agents and
employees, individually or collectively.

 

24.6         Limitations to Prevail. The
limitations and exclusions in this Article 25 shall apply regardless of
whether a claim is based in contract (including warranty or indemnity), tort
(including negligence or strict liability), statute, equity or any other
extra-contractual theory.

 

ARTICLE 25.
Insurance

 

25.1         Insurance
for Injuries to Workers. During the term of the
Contract, both Parties shall maintain at their own expense the insurance for
work-related injuries or disease of their own employees in such forms and
amounts as may be required by Laws that are applicable to each Party and its
employees.

 

25.2         General
Liability and Automobile Insurance. During the term of the
Contract, each Party shall maintain the following insurance coverage at its own
expense to protect its own interests: (a) Commercial General Liability or
Public Liability insurance, in broad form, either per occurrence or effective
for at least three years after the expiration of this Contract, that includes
coverage for contractual liability, bodily injury and third party property
damage, with a combined single limit of not less than U.S. $*** per occurrence
and U.S. $*** in the aggregate annually, for primary and excess policies
combined; and (b) automobile liability insurance covering all owned, non-owned,
and hired automobiles used by it in connection with the work, if any, with a
combined single limit of not less than U.S. $*** per occurrence, for primary
and excess policies combined. Each of the foregoing insurance policies shall
not be cancelled or materially changed without thirty (30) days’ advance
written notice to the other Party or, in the case of non-payment, ten (10) days’
advance written notice. Upon request, each Party shall deliver to the other
Party certificates of insurance showing that the foregoing insurance is in full
force and effect.

 

25.3         CAR/ARBR
Insurance. The Buyer shall provide either Contractor’s All Risk
Insurance or All Risk Builder’s Risk Insurance (CAR/ARBR) as and when described
below. In the event of a loss or damage before Final Acceptance of any Project,
the Buyer shall be responsible for the CAR/ARBR policy deductible unless loss
or damage results from the negligence of the Seller in which case the Seller
shall be responsible for the lesser of the actual CAR/ARBR policy deductible or
$*** occurrence; provided, however,
such deductible shall be subject to the limits set for in Article 24..
Except as provided in the preceding sentence, the Seller shall not be
responsible for any insurance exclusions or deductibles or any uninsured or
uninsurable loss or damage to a Project or other loss or damage to a Project
under construction. The CAR/ARBR policy shall at a minimum meet the following
requirements: (a) the policy shall be in effect from the scheduled
commencement of Work at the Site through Final Acceptance of the

 

21

 

relevant Project; (b) the
policy shall be non-cancelable by the Buyer and by the insurer, except for
nonpayment of premium; (c) the Buyer, the Eligible Assignees, the
Financing Parties and any of the Financing Parties’ designees shall be named
insureds; (d) the policy shall include as additional insureds the Seller,
any of its Affiliates that is performing Work, and all Subcontractors
(regardless of tier), and all Suppliers with respect to their activities on the
Site; (e) the policy shall cover all risks of physical loss or damage to a
Project, including mechanical and electrical breakdown, in the course of
unloading the equipment at the Site, construction, start-up, testing and
commissioning, including materials, equipment and furnishings, up to the value
of the relevant Project at Final Acceptance, except for customary exclusions; (f) the
policy shall be provided by insurers who are authorized to provide insurance in
the jurisdiction(s) where the work will be performed; (g) the policy
shall include minimum design/defects coverage equal to LEG2 or DE4 and (h) the
policy shall include a waiver of subrogation in favor of the Seller, its
Affiliates and its Subcontractors and Suppliers.

 

25.4         Transit
Insurance. With respect to any Delivery made pursuant to Section 5.2
only, the Seller shall provide insurance covering all risks of loss to any
Major Components, Equipment or Units during loading and during transit by air,
sea or otherwise from the place of manufacture until Delivery to the relevant
Site with sublimits sufficient to insure the full replacement value of such
Major Component(s), Unit(s) or Equipment. With respect to any Delivery
made pursuant to Section 5.3, the Seller shall not be responsible for
transit insurance. Such insurance shall provide coverage during loading the
Equipment on any collecting transport and shall include Seller as loss payee.

 

25.5         All Risk
Insurance. From Final Acceptance
through the expiration of the Warranty Period for the relevant Project, Buyer
shall maintain “All Risks” Property Insurance. In the event of a loss or damage
from the Warranty Period through the expiration of the Warranty Period for any
Project, the Buyer shall be responsible for the policy deductible unless the
loss or damage results from the negligence of the Seller, in which case the
Seller shall be responsible for the lesser of the actual policy deductible or $***
per occurrence; provided, however,
that the Seller’s liability for any such deductible shall be subject to the
liability limits set forth in Article 24. The “All Risks” Property Insurance
policy shall meet the following requirements: (a) the policy shall cover “all
risks” of physical loss or damage except as hereinafter provided, including
coverage for boiler and machinery (electrical and mechanical breakdown),
transit, and off-site storage exposure for an amount equal to the replacement
value of the relevant property; and (b) the coverage shall not contain an
exclusion for resultant damage caused by faulty workmanship, design or
materials. This policy shall
include a waiver of subrogation in favor of the Seller, its Affiliates, and its
Subcontractor and Suppliers.

 

25.6         Failure to
Maintain Insurance. If either Party fails to maintain in full
force and effect insurance complying with the requirements of this Article 25,
subject to the other provisions of this Contract, such Party shall be
responsible for any resulting losses or damages sustained by the other Party
and shall hold the other Party harmless from actions brought against the other
Party as the result of the absence of the required insurance.

 

25.7         Buyer’s
Risks. Except to the extent the Seller is liable for
breach of this Contract or under the indemnity obligations set forth in this
Contract, the Seller shall not be financially liable for the consequences of
the following risks (“Buyer’s Risks”): communications interference (such
as microwave or AM radio interference), aviation restrictions, incidents
relating to ice throws, migratory path issues, incidents resulting from
endangered species or wetlands protection, radar interference, visual impact,
flicker effect, or incidents arising from previous usage of the land (such as
military ordinance training or testing, burial grounds or historical
landmarks), damage and losses due to war, hostilities, terrorism, rebellion,
revolution, civil disturbance, nuclear radiation, breach of this Contract by or
negligence of the Buyer, acts or omissions of the Buyer and natural perils
(such as flood or earthquake) or other perils, in each case to the extent that
the peril is excluded from the CAR/ARBR policy coverage or the loss is in

 

22

 

excess of the policy limits;
provided, however, that the
Seller shall not be excused by any such Buyer’s Risk from the performance of
any of its obligations under this Contract unless the Seller is excused
pursuant to Section 22.1.

 

25.8         Subcontractors
and Suppliers.

 

25.8.1      Seller’s
Subcontractors and Suppliers. The Seller shall require
its Subcontractors and Suppliers to maintain the insurance described in Sections
25.1 and 25.2 and above; provided, however,
that the combined single limit per occurrence and the aggregate annual limits
for the Commercial General Liability or Public Liability insurance and
automobile liability insurance maintained by such Subcontractors and Suppliers
need only be consistent with the limits maintained by prudent subcontractors
and suppliers for similar projects in similar locations.

 

25.8.2      Buyer’s
Subcontractors and Suppliers. The Buyer shall require
its Subcontractors and Suppliers to maintain the insurance described in
Sections 25.1 and 25.2 above; provided,
however,  that the combined single limit per
occurrence and the aggregate annual limits for the Commercial General Liability
or Public Liability insurance and automobile liability insurance maintained by
such Subcontractors and Suppliers need only be consistent with the limits
maintained by prudent subcontractors and suppliers for similar projects in
similar locations.

 

25.9         Other
Insurance Terms and Conditions.

 

25.9.1      Insurers. All insurance
provided by the Buyer or the Seller shall be placed with reputable and
recognized insurance companies having an AMBEST Rating of at least A- VII.

 

25.9.2      Unavailability
of Insurance. Each Party shall maintain insurance in accordance
with the requirements set forth in this Article 25; provided, however, that in the event any
insurances (or any of the terms thereof) required to be maintained by this Article 25,
other than insurance (or any of the terms thereof) required by any applicable
Law to be maintained, shall not be available and commercially feasible in the
commercial insurance market, the Party which is required to maintain such
insurance shall be excused from maintaining such insurance (or any of the terms
thereof) and, provided further,
that such Party provides prompt written notice of the non-availability or
infeasibility of such insurance (or any of the terms thereof) to the other
Party, and (b) consults with the other Party regarding such
non-availability or infeasibility.

 

25.10       Certificates
of Insurance. No later than thirty (30) days prior to the first
Shipment under this Contract and/or the relevant PO, the Seller shall, and
shall use all commercially reasonable efforts to  cause its Subcontractors and Suppliers to, provide the Buyer
with certificates of insurance from each insurance carrier showing that the
insurance required under this Article 25 is in full force and effect.
Prior to the earlier of (a) the commencement of the Work at the Site or (b) the
date of the first Shipment of a Major Component, Equipment or Unit, the Buyer
shall provide the Seller with certificates of insurance from each insurance
carrier showing that the insurance required under this Article 25 is in
full force and effect..

 

25.11       Cooperation
with the Buyer. At the Buyer’s request, the
Seller shall (a) cooperate with the Buyer and its representatives with
respect to any insurance claims made or to be made by the Buyer or the Seller
with respect to the Project and/or the Work; and (b), subject to Article 29,
shall provide to the Buyer all reasonable information relating to such claims.

 

23

 

ARTICLE 26.
Taxes

 

26.1         Seller
Taxes. The Seller shall be responsible for, and shall pay
directly when due and payable, any and all Seller Taxes. If the Buyer is
required to pay, or otherwise pays, any Seller Taxes, at the Buyer’s option, (a) the
Buyer may deduct or withhold such Seller Taxes from payments otherwise due to
the Seller, and the Buyer shall furnish to the Seller within one month
thereafter accurate official receipts from the appropriate governmental
authority for each item of deducted or withheld Seller Taxes; or (b) the Seller
shall indemnify the Buyer for any such payment of Seller Taxes within ten (10) days
after request by the Buyer. Buyer shall include proof of payment with such
request issued to the Seller.

 

26.2         Buyer
Taxes. The Buyer shall be responsible for, and shall pay
directly when due and payable, any and all Buyer Taxes. All payments due and
payable by the Buyer to the Seller hereunder shall be made in the full amount
of the Contract Price or the Purchase Order Price, as applicable, free and
clear of all deductions and withholding, for Buyer Taxes. If the Buyer deducts
or withholds Buyer Taxes from payments otherwise due to the Seller, the Buyer
shall pay the Seller, within ten (10) days after request by the Seller,
additional amounts so as to cause the amounts actually received by the Seller,
net of deducted or withheld Buyer Taxes, to equal the full part of the Contract
Price or the Purchase Order Price, as applicable, that the Seller would
otherwise have received. If the Seller is required to pay Buyer Taxes, the
Buyer shall, promptly upon receipt of the Seller’s invoice for such Buyer Taxes
and proof of the Seller’s payment of such Buyer Taxes from the appropriate
governmental authority, pay to the Seller such Buyer Taxes.

 

26.3         Invoices
and other Documents. The Seller shall issue an official
value-added, sales (or similar) tax invoice in addition to the price, in
accordance with applicable laws. When requested by either Party, the other
Party shall furnish without charge evidence of tax or duty exemption acceptable
to the taxing or customs authorities.

 

ARTICLE 27.
Intellectual Property

 

27.1         Intellectual
Property Indemnity. The Seller shall indemnify, defend and hold
harmless, the Buyer, its Affiliates and its and their officers, employees,
agents, Financing Parties, and Subcontractors against all liabilities, damages,
losses, costs or expenses (including, without limitation, attorneys’ fees and
expenses) arising out of any suit, claim, or proceeding (a “Claim”) alleging
that the Equipment or Services provided under this Contract violate or infringe
any Intellectual Property if: (a) the Buyer promptly notifies the Seller
in writing of the Claim; (b) gives the Seller sole authority, at the
Seller’s expense, using counsel reasonably acceptable to the Buyer, to direct
and control the defense and any settlement and compromise negotiations; provided, however, that the Buyer shall
have the right to participate at the Seller’s expense in any such settlement
and compromise negotiations that would require any changes to the Services or
Equipment or that would require any action or restraint of action by the Buyer and
that the Buyer shall have the right to approve any settlement that would
require any changes to the Services or Equipment or that would require any
action or restraint of action by the Buyer (which consent shall not be
unreasonably withheld); and (c) the Buyer provides the Seller, at the
Seller’s expense, with such disclosure and assistance of the Buyer as may be
reasonably required to defend any such Claim. If the Seller does not promptly
undertake defense of any such claim after notice of same from the Buyer, the
Buyer shall be entitled but not required to undertake the defense of such claim
and shall have the right to direct and control the defense and any settlement
and compromise negotiations concerning such claim with counsel selected by the
Buyer and that the Seller shall have the right to approve any settlement (which
consent shall not be unreasonably withheld); all at the Seller’s expense. For
the avoidance of doubt, the Buyer’s election to undertake or not to undertake
such defense will not limit in any way the Seller’s indemnification obligations
hereunder.

 

27.2         Exclusions. The Seller
shall have no obligation or liability with respect to any Claim based upon: (a) any
Equipment or Services that have been altered by the Buyer other than (i) as
approved

 

24

 

by the Seller or (ii) as
contemplated by the Technical Specifications or the Documentation applicable to
the Equipment or Services (it being expressly understood that such Equipment
and Services are contemplated to be utilized in one or more combined systems
using various configurations as expressly communicated by the Buyer in writing
to the Seller); (b) except as permitted in (a), the combination or use of
any Equipment or Services with other products not provided by or specified by
the Seller when the combination is part of any allegedly infringing process
except to the extent such combination or use is expressly contemplated in the
Technical Specifications or Documentation; (c) failure of the Buyer to
implement within a commercially reasonable time after notice of the
availability and infringement curing purpose thereof any update provided by the
Seller to the Buyer at no cost and, at the Buyer’s election, either installed
by the Seller at no cost or installed by the Buyer at the Seller’s cost that
would have prevented the Claim, which update does not impair the functionality,
capability, performance or other commercially desirable features of any part of
the system

 

27.3         Remedies. If any
Equipment or Service, or any portion of either, becomes the subject of a Claim,
the Seller may, at its option, (a) procure for the Buyer the right to
continue using such Equipment or Service, or any portion thereof; or (b) modify
or replace it in whole or in part with Equipment or Services that meet all
applicable Technical Specifications so as to make it non-infringing.

 

27.4         Sole
Liability. This Article 27 states the Seller’s entire
liability for indemnification for any infringement or violation of the
Intellectual Property with respect to the Equipment and Services.

 

27.5         Intellectual
Property Upon Termination. Upon termination of this
Contract (other than for the Buyer’s breach of Article 28), the Seller
shall, upon request by the Buyer, provide to the Buyer without charge a license
to use, reproduce (to extent set forth below in Article 28) and publicly
display (subject to the confidentiality provisions set forth below) and
sub-license (to the extent set forth below) any Intellectual Property of the
Seller, its Subcontractors and Suppliers, to the extent the Seller has the
right to grant such sublicense rights, in completing, operating and maintaining
the Equipment, except that with respect to making spare parts for the
Equipment, the rights and obligations of the Parties shall be as provided in Section 14.2.

 

ARTICLE 28.
Software License

 

28.1         Grant of
License. Subject to the terms of this Contract, the Seller
grants to the Buyer a perpetual, non-transferable (except as permitted in this
Contract) and nonexclusive license to use, perform, reproduce (to the extent
set forth below) and publicly display (subject to the confidentiality
provisions set forth below) the Software, and Documentation (the “License”),
including upgraded or modified versions provided by the Seller and to use the
Third Party Software all for the Buyer’s internal business purposes only. This
License includes the right of the Buyer to sub-license a third-party to
exercise its rights in connection with providing services to the Buyer for the
Buyer’s internal business purposes only (and not for the purpose of operating
the Software for an entity other than the Buyer). The Buyer may transfer all
rights under the License to another Person as part of the sale or assignment of
the Equipment with which it is used in accordance with Article 30. Only in
the event the Seller stops providing Support for the Unit, the License shall
extend to the Source Code for all Software, and in such event the Seller shall
provide the Buyer, at no additional charge, a copy of the Sellers then
available version of the Source Code upon request.

 

28.2         Limitations. The Buyer has
no right (a) except as otherwise permitted in this Contract, (i) to
lease, rent, transfer, distribute, sublicense, timeshare, or allow third
parties to access the Software, Third-Party Software or related Documentation,
nor (ii) to assign any rights under such License to a third party without the
Seller’s prior written agreement; (b) unless the Seller discontinues
Support, to disassemble, decompile, reverse engineer, or otherwise attempt to
reconstruct or discover the Source

 

25

 

Code of the Software; (c) except
as otherwise permitted in this Contract, to pledge the Software or Third-Party
Software as collateral or otherwise, or encumber the Software or Third-Party
Software with any lien or security interest; (d) to remove any product
identification, copyright, trademark, or other notice from the Software,
Third-Party Software or related Documentation; or (e) except as reasonably
necessary to ensure the “interoperability” and compatibility of the Software
and Third Party Software with other systems of the Buyer or entities providing
services to the Buyer (“Integration”) or if the Seller discontinues Support, to
modify, adapt or translate the Software, or related Documentation.

 

28.3         Third-Party
Software. Certain software the Seller provides to the Buyer
may contain Third-Party Software (a list shall be provided upon execution of
this Contract), including but not limited to “open source” software. Use of the
Third-Party Software and its Source Code may be governed by separate copyright
notices and license provisions, which may be found or identified in the
Documentation or on the media delivered with the Software; those separate
notices and provisions are incorporated by reference into the License. The
Buyer shall not modify or combine the Software and/or any Third-Party Software
in any manner that could cause the Software or any modifications to it to
become subject to the terms of any license that applies to Third-Party
Software. All Third-Party Software is bundled with the Equipment and licensed
for use with the Equipment only.

 

28.4         Copies. Unless
otherwise agreed to by the Seller, the Buyer only has the right to install and
use such number of copies of the Software as are contemplated in the Technical
Specifications and Documentation together with such additional copies as are
necessary to maintain the hot back-up and spare capabilities reasonably deemed
necessary by the Buyer.

 

28.5         Backup. The Buyer may
make copies of the Software, and related Documentation for backup purposes
only, in machine-readable form, in such number as are necessary to allow a
reinstallation on replacement Equipment. The Buyer must reproduce and include
all proprietary rights and copyright notices on any backup copies. Except as
authorized in the License, no copies of the Software, Third-Party Software or
related Documentation may be made by the Buyer or any third party, except that
the Buyer may print on-line Software documentation for its own internal use.

 

28.6         Support
Services; Upgrades. The License does not obligate the Seller to
provide maintenance and support on any Software or Third Party Software, other
than as set forth in Sections 14.2 and 21.4.

 

28.7         Term and
Termination. The License is effective until terminated for
material breach of this Article 28 in accordance with the terms of this
Contract. The Seller may terminate the License (a) immediately if the
Buyer fails to comply with any of its material terms after notice of such
failure if such non-compliance is not corrected within a reasonable period of
time or (b) if correction is not possible (e.g., in the case of a breach
of confidentiality), if the Buyer fails to make a reasonable showing of the
steps it has taken to avoid such non-compliance in the future. Upon
termination, the Buyer shall (y) stop using the Software, Third-Party
Software and related Documentation, and (z) certify to the Seller within
one (1) month of the termination that the Buyer has destroyed or returned
to the Seller all copies of the Software, Third-Party Software or related
Documentation.

 

28.8         Ownership. All Software,
Third-Party Software and related Documentation are licensed and not sold. The
Seller and its Suppliers own all proprietary rights to all of it, including,
but not limited to, any Intellectual Property rights in and to the Software,
Third-Party Software and related Documentation, including any Derivative Work,
and any corrections, bug fixes, and updates to such Software, Third-Party
Software, related Documentation and Derivative Work. Seller shall also own all
proprietary rights to any Derivative Work and any corrections, bug fixes and
updates thereto, and the Buyer shall have only a “right to use” license to any
Derivative Work.

 

26

 

ARTICLE 29.
Proprietary Information

 

29.1         Information
Subject to Restriction. In connection with this
Contract, the Seller and the Buyer (as to information disclosed, the “Disclosing
Party”) may each provide the other Party (as to information
received, the “Receiving Party”) with “Confidential Information.”
“Confidential Information” means (a) all pricing for Equipment and
Services; (b) all terms of this Contract; (c) any information (“Personal
Data”) relating specifically and uniquely to an identified or identifiable
natural person (“Data Subject”); (d) all information that is
designated in writing as “confidential” or “proprietary” by the Disclosing
Party at the time of written disclosure; (e) all information that is
orally designated as “confidential” or “proprietary” by the Disclosing Party at
the time of oral disclosure and is confirmed to be “confidential” or “proprietary”
in writing within ten (10) days after oral disclosure; and (f) information
embedded in the Software (including but not limited to source code and training
materials), the Documentation and Third Party Software. The obligations of this
Article 29 shall not apply as to any portion of the Confidential
Information that: (i) is or becomes generally available to the public
other than from disclosure by the Receiving Party, its representatives or its
Affiliates; (ii) is or becomes available to the Receiving Party or its
representatives or Affiliates on a non-confidential basis from a source other
than the Disclosing Party when the source is not, to the best of the Receiving
Party’s knowledge, subject to a confidentiality obligation to the Disclosing
Party; (iii) is independently developed by the Receiving Party, its
representatives or Affiliates, without reference to Confidential Information; (iv) is
required to be disclosed by law, a valid legal process or a government agency;
or (v) is approved for disclosure in writing by an authorized
representative of the Disclosing Party.

 

29.2         Obligations
of Receiving Party. The Receiving Party shall: (a) use the
Confidential Information only in connection with this Contract and the use(s) and
maintenance of Equipment and Services contemplated by this Contract; (b) take
reasonable measures to prevent disclosure of the Confidential Information,
except to its employees, agents, attorneys, accountants, Affiliates, other
contractors working on a Project, interconnection suppliers, operators, equity
investors and Financing Parties who have a need to know for the Receiving Party
to perform its obligations under the Contract or to use and maintain Equipment
or Services; (c) with respect to Personal Data, comply with all applicable
laws and regulations relating to such Personal Data, including, but not limited
to, providing notices to or obtaining consents from Data Subjects when
required; (d) if the Buyer is the Receiving Party, not disclose the
Confidential Information to another manufacturer of wind power generation
equipment unless permitted under Sections 14.2 and/or 21.4 and/or to a third
party providing services for integration of generation of control systems for
regional or other consolidate operation or in the event of turbine from another
manufacturer or wind power generation equipment, except in no event to other
competitors of the Seller for wind power generation equipment. The Receiving
Party shall obtain a written commitment from any recipient of Confidential
Information to comply with the terms of this Section 29.2. Except in the
case of disclosure to the Receiving Party’s employees, agents, attorneys,
accountants, Affiliates, other contractors working on a Project,
interconnection suppliers, operators, equity investors and Financing Parties
who have a need to know to perform its obligations under the Contract or to use
and maintain Equipment or Services, Confidential Information shall not be
reproduced without the Disclosing Party’s written consent. After the
termination or expiration of the Contract, the Receiving Party shall return or
destroy at its option all copies of Confidential Information to the Disclosing
Party upon request except to the extent that the Contract entitles the
Receiving Party to retain the Confidential Information, the Confidential
Information is required in connection with the resolution of a claim or dispute
between the Parties, or the Confidential Information is necessary for the
continued operation or maintenance of one or more Project.

 

29.3         Design
Materials. Any drawings, specifications, designs, plans and
other documents prepared by or on behalf of the Seller and/or its Subcontractors
in connection with the Equipment or the Services (collectively, to the extent
in the possession and control of the Seller, the “Design Materials”),

 

27

 

and all intellectual
property rights, if any, relating to the Design Materials or the contents of or
concepts embodied in the Design Materials, are and shall remain the exclusive
property of the Seller or the Subcontractors, as the case may be. The Seller
hereby grants for itself, and to the extent it has the right to so grant from
Subcontractors, for its Subcontractors, whichever is appropriate, a paid-up,
non-exclusive, license (the “Design Materials License”) for the
life of the Equipment for the Buyer to use, reproduce and have reproduced the
Seller’s and its Subcontractors’ proprietary information in such Design
Materials, subject to the confidentiality obligation in Section. 29.2 above and
the following: (a) The Buyer may only use such Design Materials for the
operation, maintenance and repair of the Equipment, in accordance with the
efforts specified in the Contract, after Commercial Operation, but not for
manufacturing spares or replacement components, equipment, etc. for the Project
or any third party (other than as set forth in Section 14.2), or for the
purpose of developing derivative information or products of any nature; and (b) the
Design Materials License granted under this Section 29.3 is personal to
the Buyer and shall apply to any of the Persons listed in Section 29.2(b) subject
to the restrictions set forth in Section 29.2.

 

The Seller reserves all
patent rights, and nothing in this Section. 29.3 shall be deemed to grant a
license directly or by implication, estoppel or otherwise under any patent or
patent application related to any information to which this Contract applies.

 

29.4         Disclosure
Pursuant to Legal Process. If the Receiving Party or
any of its representatives or Affiliates is required by law, legal process or a
government agency to disclose any Confidential Information, the Receiving Party
shall provide the Disclosing Party with prompt written notice, and the
Disclosing Party may seek an appropriate protective order or agency decision or
waive compliance by the Receiving Party with this Article 29.

 

29.5         Intellectual
Property. Nothing in this Article 29 grants the
Receiving Party any license under any invention, patent, trademark or copyright
now or later owned or controlled by the Disclosing Party.

 

29.6         Disclosure. Neither Party
shall disclose Confidential Information to the other Party unless it is
required to do so to enable it to perform work under the Contract. If either
Party does disclose Confidential Information to the other Party, the Disclosing
Party warrants that it has the right to disclose the information, and the
Disclosing Party shall indemnify and hold the other Party harmless against any
claims or damages resulting solely from such Party’s improper disclosure.

 

29.7         Equitable
Relief. The Software, Documentation and Third Party
Software include commercially valuable, substantial trade secrets, the design
and development of which reflect the efforts of skilled development experts and
investment of considerable amounts of time and money. The Buyer acknowledges
that any use of the Software, Documentation or Third-Party Software in a manner
inconsistent with the License will cause immediate irreparable harm to the
Seller (or its Suppliers) for which there is no adequate remedy at law. The
Buyer agrees that the Seller (or its Suppliers) shall be entitled to immediate
and permanent injunctive relief from a court of competent jurisdiction in the
event of any such breach by the Buyer. The Parties agree and stipulate that the
Seller shall be entitled to injunctive relief without posting of a bond or
other security; except that if the posting of a bond is a prerequisite to
obtaining injunctive relief, then a bond in an amount equivalent to U.S. $1,000
shall be sufficient. The confidentiality obligations set forth in this Contract
with respect to the Software and Documentation shall expire ten (10) years
after termination of this Contract.

 

29.8         Term. As to any
individual item of Confidential Information, the restrictions of this

Article 29 shall expire
on the earlier of (a) five (5) years after the date of disclosure,
and (b) three (3) years after termination or expiration of this
Contract

 

28

 

ARTICLE 30.
Assignment

 

30.1         Eligible
Assignees. An “Eligible Assignee” is: (a) an Affiliate
of the Buyer, or (b) an engineering or construction contractor under
contract with the Buyer for the installation of the Equipment.

 

30.2         Buyer’s
Right to Assign. The Buyer may assign some or all of its rights,
and delegate some or all of its obligations, under this Contract (including,
with limitation, the License and the Design Materials License), to an Eligible
Assignee without the Seller’s consent; provided,
however, that: (a) the Buyer shall notify the Seller of its
intent to assign no less than ten (10) days prior to the execution of any
such assignment; (b) the Buyer shall either (i) (subject to the
limitations set forth in Article 24) guarantee the obligations of the
assignee by executing a guaranty in a form acceptable to the Seller or (ii) retain
its obligations under any payment and indemnity provisions of the Contract; (c) the
first assignee may not further assign or delegate any rights or obligations
hereunder except to the original Buyer, unless the first assignee is an
Affiliate of the Buyer, in which case such assignee (and its assignees who are
Affiliates of the Buyer) may further assign or delegate any rights or
obligations to one or more Affiliate(s) of the Buyer (including the
original Buyer); and (d) the Buyer shall in no event assign to its
engineering or construction contractor the right to receive liquidated damages
under this Contract. In addition, the Buyer may assign some or all of its
rights, and delegate some or all of its obligations, under this Contract to any
other third party subject to the prior written consent of the Seller (such
consent not to be unreasonably withheld).

 

30.3         Collateral
Assignment. Notwithstanding the
requirements of Article 28 and Section 30.2,the Buyer may also,
without the Seller’s consent, assign a collateral interest in this Contract,
(including, with limitation, the License and the Design Materials License, to a
Financing Party as collateral security for a loan, or in connection with any
lease or any other financing arrangement, for the acquisition of the Equipment,
the performance of the Services and/or the development of the Projects; provided, however, that the Buyer and such
Financing Party agree that any foreclosure on such collateral interest, or
assignment in lieu of foreclosure, shall occur only as the result of the
exercise by the Financing Party of its remedies under the financing agreements
relative to a default, bankruptcy or liquidation of the Buyer. A Financing
Party may further assign such collateral interest in this Contract, including,
without limitation, the License, without the Seller’s consent, to one or more
of its designees at or after the time of such foreclosure or assignment in lieu
of foreclosure.

 

30.4         Cooperation
with Financing; Consent. The Seller shall cooperate
with the Buyer, its Affiliates and any Financing Parties from time to time,
including, without limitation, by furnishing such documentation and information
as such Financing Parties may reasonably request and by entering into a consent
and agreement with such Financing Parties in connection with any collateral assignment,
certificates and other ancillary documents on such terms as may be customary
under the circumstances and as shall be reasonably required by such Financing
Parties, including without limitation, the terms set forth in Section 21.7
hereof. In addition, the Parties agree that, should any Financing Party require
changes to the form of this Contact, the Parties will cooperate and negotiate
in good faith to reach agreement to amend the Contract to the extent necessary
to obtain financing in a manner that does not materially and adversely affect
the Parties’ respective economic positions in the transaction.

 

30.5         Seller’s
Right to Assign. The Seller may assign all of its rights in whole
or in part and delegate its obligations under this Contract to any Affiliate; provided, however, that (a) the
Seller shall notify the Buyer of its intent to assign no less than ten (10) days
prior to the execution of any such assignment; (b) the General Electric
Company shall (subject to the limitations set forth in Article 24)
guarantee the obligations of the assignee by executing a guaranty in a form
acceptable to the Buyer; (c) such Affiliate shall possess sufficient
technical expertise and experience to perform the Seller’s

 

29

 

obligations under this
Contract in the reasonable opinion of the Buyer; and (d) General Electric
Company shall remain the single point of contact for the Buyer under this
Contract.

 

30.6         Conditions. Any
assignment of this Contract shall be subject to all limitations of liability contained
in this Contract. Neither Party may assign this Contract except in accordance
with this Section 30.6. Any purported assignment not in accordance with
this Section 30.6 shall be void and without effect.

 

30.7         Successors
and Assigns. All of the rights, benefits, duties, liabilities
and obligations of the Parties hereto shall inure to the benefit of, and be
binding upon, their respective successors and permitted assigns.

 

ARTICLE 31.
Representations and Warranties

 

31.1         Seller’s
Representations. The Seller
represents to the Buyer that, as of the date hereof:

 

31.1.1      Organization and
Qualification. The Seller is a corporation duly organized,
validly existing and in good standing under the laws of the State of New York,
has the lawful power to engage in the business it presently conducts and
contemplates conducting, and is duly licensed or qualified and in good standing
as a foreign corporation in each jurisdiction wherein the nature of the
business transacted by it makes such licensing or qualification necessary.

 

31.1.2      Power and Authority. The Seller
has the authority to execute and carry out this Contract and to perform its
obligations hereunder and all such actions have been duly authorized by all
necessary corporate action on its part.

 

31.1.3      No Conflict. The
execution, delivery and performance of this Contract shall not conflict with,
result in the breach of, constitute a default under or accelerate performance
required by any of the terms of the articles of incorporation or the bylaws of
the Seller or any applicable Laws or any material covenant, agreement,
understanding, decree, indenture, instrument or order to which the Seller is a
party or by which the Seller or any of its properties or assets is bound or
affected.

 

31.1.4      Validity and Binding Effect. This Contract
has been duly and validly executed and delivered by the Seller. This Contract
constitutes a legal, valid and binding obligation of the Seller, enforceable in
accordance with its terms, except to the extent that its enforceability may be
limited by bankruptcy, insolvency, reorganization, moratorium or other similar
laws affecting the rights of creditors generally or by general principles of
equity. To the best of the Seller’s current knowledge, no authorization,
approval, exemption or consent by any governmental or public body or authority
is required in connection with the authorization, execution, delivery and
carrying out of the terms of this Contract.

 

31.1.5      Patents, Licenses,
Franchises. The Seller owns or possesses all the patents,
trademarks, service marks, trade names, copyrights, licenses, franchises,
permits and rights with respect to the foregoing necessary to perform the Work
and to carry on its business as presently conducted and presently planned to be
conducted without conflict with the rights of others.

 

31.1.6      Compliance with Laws. The Seller
has complied with all applicable Laws such that it has not been subject to any
fines, penalties, injunctive relief or criminal liabilities that in the aggregate
have materially affected or may materially affect the business operations or
financial condition of the Seller or its ability to perform the Work.

 

3 1.1.7     Seller’s Solvency. The Seller is
now, and after giving effect to this Contract, shall be, in a solvent
condition.

 

30

 

31.1.8      Seller Qualified. The Seller is
fully experienced and properly licensed, equipped, and in all ways competent
and qualified to perform all aspects of the Work in accordance with the terms
set forth herein.

 

31.1.9      Licenses. The Seller is
the holder of all necessary governmental consents, licenses, permits or other
authorizations required under the applicable Laws to operate or conduct its
business as contemplated herein.

 

31.2         Buyer’s
Representations. The Buyer represents to the Seller that, as of the
date hereof:

 

31.2.1      Organization and
Qualification. The Buyer is a Delaware limited liability company
duly formed and validly existing and in good standing under the laws of the
State of Delaware, and has the lawful authority to engage in the business it
presently conducts and contemplates conducting.

 

31.2.2      Power and Authority. The Buyer has
the authority to make and carry out this Contract and to perform its
obligations hereunder.

 

31.2.3      No Conflict. The
execution, delivery and performance of this Contract shall not conflict with,
result in the breach of, constitute a default under or accelerate performance
required by any of the terms of the Buyer’s constituent documents or any
applicable Laws or any material covenant, agreement, understanding, decree,
indenture, instrument or order to which the Buyer is a party or by which the
Buyer or any of its properties or assets is bound or affected.

 

3 1.2.4     Validity and Binding Effect. This Contract
has been duly and validly executed and delivered by the Buyer. This Contract
constitutes a legal, valid and binding obligation of the Buyer, enforceable
against the Buyer in accordance with its terms, except to the extent that its
enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium or other similar laws affecting the rights of creditors generally or
by general principles of equity. To the best of the Buyer’s current knowledge,
no authorization, approval, exemption or consent by any governmental or public
body or authority is required in connection with the authorization, execution,
delivery and carrying out of the terms of this Contract.

 

31.2.5      Compliance with Laws. The Buyer has
complied with all applicable Laws such that it has not been subject to any
fines, penalties, injunctive relief or criminal liabilities which in the
aggregate have materially affected or may materially affect the business
operations or financial condition of the Seller or its ability to perform the
Work.

 

31.2.6      Buyer’s Solvency. The Buyer is
now, and after giving effect to this Contract shall be, in a solvent condition.

 

ARTICLE 32.
Governing Law; Disputes

 

32.1         Governing
Law.  This Contract
shall be construed and interpreted in accordance with the laws of the State of
New York, excluding the conflict of law rules (other than Section 5-1401
of the New York General Obligations Law).

 

32.2         Referral
to Senior Management. In the event of any controversy, dispute or
difference between the Parties to this Contract, either Party may provide
notice of the dispute to the other Party. If the controversy, dispute or
difference is not amicably settled by the Parties within fifteen (15) days
following notice of dispute, it shall be referred to senior management of the
Parties for resolution. In the event the controversy, dispute or difference has
not been resolved within thirty (30) days following

 

31

 

referral to senior
management (or such longer period as the Parties may mutually agree), then
either Party may pursue its remedies at law.

32.3         Venue. Any legal
action or proceeding with respect to this Contract shall be brought in the
United States District Court for the Southern District of New York or, if such
court lacks jurisdiction, in the Supreme Court of the State of New York in New
York County. Each of the Parties hereby accepts and consents to, generally and
unconditionally, the jurisdiction of the aforesaid courts and appellate courts
from any appeal thereof. Each of the Parties irrevocably consents 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 mail,
postage prepaid, to such Party at the address first set forth in Section 33.12.
Each of the Parties hereby irrevocably waives any objection which it may now or
hereafter have to the laying of venue of any of the aforesaid actions or
proceedings arising out of or in connection with this Contract brought in the
courts referred to above and hereby further irrevocably waives and agrees not
to plead or claim in any such court that any such action or proceeding brought
in any such court has been brought in an inconvenient forum.

 

32.4         Continuation
of Work. Pending final resolution of
any controversy, dispute or difference, the Parties shall continue to fulfill
their respective obligations under this Contract.

 

ARTICLE 33.
Miscellaneous

 

33.1         Rules of
Interpretation; Definitions.

 

33.1.1      Rules of Interpretation. When used in
this Contract: (a) all terms defined in this Contract in the singular
shall have the same meaning when used in the plural and vice versa; (b) the
words “hereof”, “herein”, and “hereunder” and words of similar import shall
refer to this Contract as a whole and not any particular provision of this
Contract, and article, section, subsection, schedule, attachment, exhibit and
appendix references are to this Contract unless otherwise specified; (c) all
terms defined in this Contract shall have the defined meanings when used in any
other document made or delivered pursuant hereto; (d) “or” is not
exclusive; (e) a reference to a Law includes any amendment or modification
to such Law; (f) a reference to a Person includes its permitted assigns and
successors; (g) a reference to an agreement, instrument or document shall
include such agreement, instrument or document as the same may be amended,
restated, modified or supplemented from time to time in accordance with its
terms and as permitted thereby; (h) the term “including” means “including,
without limitation”; (i) each reference to “days” shall mean calendar
days, unless the term “Business Days” is used; and (j) the article,
section and condition headings have been inserted for convenience of reference
only and shall not in any manner affect the construction, meaning or effect of
anything herein contained nor govern the rights and liabilities of the Parties.

 

33.1.2      Definitions. Capitalized
terms used in this Contract shall have the meanings set forth in Schedule I,
unless in any particular instance it is expressly indicated otherwise.

 

33.2         Order of
Precedence. The Contract consists of the
body of this Contract, its Schedules, Attachments, Exhibits, Appendices, and
any Purchase Orders issued pursuant to the Contract. All parts of the Contract
are intended to be complementary and what is set forth in any one document is
as binding as if set forth in each document. In the event of any conflict,
discrepancy, error or omission among any parts of the Contract, either Party
shall immediately notify the other Party and both Parties shall decide how to
remedy such conflict, discrepancy, error or omission. If the Parties cannot
resolve any such conflict, discrepancy, error or omission by mutual agreement, the
matter shall be submitted for resolution in accordance with Article 32.
Subject to the preceding three sentences, the parts of the Contract should take
the following order of precedence:

 

32

 

33.2.1      Purchase Order (together
with its exhibits and schedules);

 

33.2.2      the body of this Contract
(Articles 1 through 33) and Schedule I “Definitions”;

 

33.2.3      Attachments to the Contract;

 

33.2.4      Appendix A “Technical
Specifications”; and

 

33.2.5      Exhibits to the Contract.

 

33.3         Entire
Agreement. This Contract represents
the entire agreement between the Parties and supersedes in its entirety all
prior agreements concerning the subject matter hereof. Any oral or written
representation, warranty, course of dealing, or trade usage not contained or
referenced herein shall not be binding on either Party. Each Party agrees that
it has not relied on, or been induced by, any representations of the other
Party not contained in this Contract.

 

33.4         No Joint
Venture. Nothing contained in this Contract shall be
construed as constituting a joint venture or partnership between the Seller and
the Buyer.

 

33.5         Independent
Contractor. The Seller shall be an independent contractor with
respect to each Project, each part thereof and the Work performed pursuant to
this Contract, and neither the Seller, its Subcontractors, its Suppliers, nor
the employees of any of them, shall be deemed to be agents, representatives,
employees or servants of the Buyer in the performance of the Work, or any part
thereof. The Buyer shall not have the right to any actual, potential or other
control over the methods and means by which the Seller or any of its agents,
representatives, Subcontractors, Suppliers or employees conducts its
independent business operations. The Parties covenant and agree that in the
performance of the Work by the Seller, the Seller shall not perform any act or
make any representation to any Person to the effect that the Seller or any of
its agents, representatives, Subcontractors or Suppliers, is the agent of the
Buyer.

 

33.6         Third-Party
Beneficiaries. Except as expressly provided herein with respect
to the Financing Parties, these provisions are for the benefit of the Parties
hereto and not for any other third party.

 

33.7 Amendments. No amendments,
modifications, revision or other change of this Contract shall be valid unless
evidenced in writing and signed by a duly authorized representative of both
Parties.

 

33.8         Waiver. No waiver of
any of the terms, provisions or covenants of this Contract shall be valid or
binding unless set forth in writing and duly executed by the Party against whom
enforcement of the waiver is sought. It is understood and agreed that any
delay, waiver or omission by the Buyer or the Seller in any of the terms, provisions
or covenants of this Contract shall not be construed to be a waiver by the
Buyer or the Seller of any subsequent breach or default of the same or other
terms, provisions or covenants on the part of the Seller or the Buyer.

 

33.9         Severability. In the event
that any of the provisions, or portions or applications thereof, of this
Contract is held to be unenforceable or invalid by any court of competent
jurisdiction, the Buyer and the Seller shall negotiate an equitable adjustment
in the provisions of this Contract with a view toward effecting the purposes of
this Contract, and the validity and enforceability of the remaining provisions,
or portions or applications thereof, shall not be affected.

 

33

 

33.10       Records. The Seller
shall keep and maintain full, complete and detailed records pertaining to each
Project, including copies of all contracts with its Subcontractors and
Suppliers, for a period of two (2) years following Commercial Operation of
such Project.

 

33.11       Notice. Any notice
required or permitted to be given by the Buyer to the Seller hereunder shall be
in writing and shall be addressed to:

 

SELLER:

 

GENERAL ELECTRIC

One River Road

Schenectady, NY 12345 

Attention:

Facsimile No.:

 

With copies to:

 

and any notice required or
permitted to be given by the Seller to the Buyer hereunder shall be in writing
and shall be addressed to:

 

BUYER:

 

NOBLE ENVIRONMENTAL POWER
2006 HOLD CO, LLC 

c/o Noble Environmental
Power, LLC

8 Railroad Avenue

Second Floor, Suite 8

Essex, CT 06426

Attention: Daniel Haas

Facsimile No.: (860)
767-7041

 

With a copy to:

 

LATHAM & WATKINS
LLP 

555 Eleventh Street, 

N.W. Washington, D.C. 20004

Attention: John L. Sachs

Facsimile No.: (202)
637-2201

 

All notices shall be
delivered (a) in person to the address listed above, (b) via
certified mail with a return receipt requested in a securely sealed envelope,
or (c) via telephonic document transfer, and such notices shall be
effective when sent if delivered by method (a) or (c) or three (3) days
after being properly mailed as provided in method (b) above, in each case
to the address specified above; provided,
however, that service by method (c) after 5:00 p.m. local
time of the recipient shall be deemed received on the following Business Day.
The Parties may designate, from time to time, another address or office to
which notices may be given pursuant to this Contract by following the procedure
in this subparagraph.

 

34

 

33.12       Electronic
Communication. Throughout the term of this
Contract (including the Warranty Period), the Buyer shall provide a broadband
connection exclusively for Seller’s required bandwidth of 1.5 MBPS to each
Project for remote data monitoring.

 

33.13       Further
Assurances. The Seller and the Buyer agree to provide such
information, execute and deliver any instruments and documents and to take such
other actions as may be necessary or reasonably requested by the other Party
which are not inconsistent with the provisions of this Contract and which do
not involve the assumption of obligations other than those provided for in this
Contract, in order to give full effect to this Contract and to carry out the
intent of this Contract.

 

33.14       Survival. The
provisions of Article 16, 23, 24, 26, 27, 28, 29, 30, 32, 33 and Sections
14.2, 15.3, 21.3, 21.4 and 21.6 shall survive termination of this Contract.

 

33.15       Counterparts. This Contract may be signed
in any number of counterparts and each counterpart shall represent a fully
executed original as if signed by both Parties.

 

[Signature Page to Follow]

 

35

 

IN
WITNESS WHEREOF the Parties have caused this Contract to be executed by their
authorized representatives on the date first above written.

 

	
  Seller

  	
  Buyer

  
	
   

  	
   

  
	
  GENERAL ELECTRIC COMPANY

  	
  NOBLE ENVIRONMENTAL POWER
  2006

  HOLD CO. LLC

  
	
   

  	
   

  
	
  By:

  	
  /s/ John D. Tumy

  	
   

  	
  By:

  	
  /s/ Charles C. Hinckley

  
	
   

  	
  Name: John D. Tumy

  	
   

  	
  Name: Charles C. Hinckley

  
	
   

  	
  Title: Commercial Director

  	
   

  	
  Title: President

  
					

 

36

 

Schedule I

Definitions

 

	
  (a)

  	
   

  	
  “Acceptance Certificate”
  shall have the meaning ascribed in Section 8.5.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  “Affiliate” shall
  mean any entity that directly or indirectly controls, is controlled by, or is
  under common control with a Person. For the purposes of this definition,
  “control” means the possession, directly or indirectly, of the power to
  direct or cause the direction of the management and policies of the
  controlled entity, whether through the ownership of voting securities or
  partnership or other ownership interests or by contract or otherwise.

  
	
   

  	
   

  	
   

  
	
  (c)

  	
   

  	
  “Balance of Plant”
  or “BOP” shall mean any items of Equipment that are not associated
  with a particular wind turbine and do not constitute part of a Unit.

  
	
   

  	
   

  	
   

  
	
  (d)

  	
   

  	
  “Business Day”
  shall mean any day, other than a Saturday or Sunday or a day on which
  national commercial banking institutions in New York, New York are required
  by law to close.

  
	
   

  	
   

  	
   

  
	
  (e)

  	
   

  	
  “Buyer” shall mean
  the entity so identified in the recitals to the Contract.

  
	
   

  	
   

  	
   

  
	
  (f)

  	
   

  	
  “Buyer Taxes” shall
  mean all taxes, duties, fees, or other charges of any nature (including, but
  not limited to, ad valorem, consumption, excise, franchise, gross receipts,
  license, property, sales, stamp, storage, transfer, turnover, use, or
  value-added taxes, and any and all items of withholding, deficiency, penalty,
  addition to tax, interest, or assessment related thereto), other than Seller
  Taxes, imposed by any governmental authority of any country on the Seller or
  its employees, its Subcontractors or Suppliers due to the execution of any
  agreement, including the Contract, or the performance of or payment for Work
  under the Contract.

  
	
   

  	
   

  	
   

  
	
  (g)

  	
   

  	
  “Change in Codes and
  Standards” shall mean a change in any code or standard identified in
  Appendix A after the date of this Contract that imposes any mandatory
  requirements on the Seller’s manufacturing, fabrication, production,
  assembly, shipping or transporting processes or activities in respect of this
  Contract and that was not caused directly or indirectly by the actions or
  inactions of the Seller.

  
	
   

  	
   

  	
   

  
	
  (h)

  	
   

  	
  “Change in Law”
  shall mean a change to a Law, or a change in the interpretation or
  application of a Law by the cognizant executive or judicial authorities after
  the date of this Contract; provided,
  however, that Change in Law shall not include (i) a change in
  federal, state, or local income tax; (ii) an enactment, adoption,
  promulgation, or change in the interpretation or application of a Law that is
  published prior to the date hereof but that becomes effective after the date
  hereof; or (iii) an enactment, adoption, promulgation, or change in the
  interpretation or application of a Law that affects the Seller’s
  manufacturing, fabrication, production, assembly, shipping or transporting
  processes or activities.

  
	
   

  	
   

  	
   

  
	
  (i)

  	
   

  	
  “Change Order”
  shall mean a written agreement to change the Equipment or Services which
  describes the change, identifies the writing as a Change Order, sets out
  adjustments, if any, in the Contract and/or the Purchase Order Price and any
  schedule or dates for performance, and is signed by both Parties.

  
	
   

  	
   

  	
   

  
	
  (j)

  	
   

  	
  “Claim” shall have
  the meaning ascribed in Section 27.1.

  
	
   

  	
   

  	
   

  
	
  (k)

  	
   

  	
  “Commercial Operation”
  shall have the meaning ascribed in Section 8.2, with respect to each

  

 

37

 

	
   

  	
   

  	
  Unit or a Project, as
  applicable.

  
	
   

  	
   

  	
   

  
	
  (l)

  	
   

  	
  “Commercial Operation
  Certificate” shall have the meaning ascribed in Section 8.2.

  
	
   

  	
   

  	
   

  
	
  (m)

  	
   

  	
  “Confidential
  Information” shall have the meaning ascribed in Section 29.1.

  
	
   

  	
   

  	
   

  
	
  (n)

  	
   

  	
  “Contract” shall
  have the meaning ascribed in the preliminary statements hereto and shall
  include all the parts listed in Section 33.2.

  
	
   

  	
   

  	
   

  
	
  (o)

  	
   

  	
  “Contract Currency”
  shall have the meaning ascribed in Section 11.1.

  
	
   

  	
   

  	
   

  
	
  (p)

  	
   

  	
  “Contract Price”
  shall mean the total firm price as stated in Section 11.1, as such price
  may be adjusted from time to time in accordance with the Contract.

  
	
   

  	
   

  	
   

  
	
  (q)

  	
   

  	
  “Converter
  Commissioning Test (CCT)” shall have the meaning ascribed in Appendix A.

  
	
   

  	
   

  	
   

  
	
  (r)

  	
   

  	
  “Data Subject”
  shall have the meaning ascribed in Section 29.1.

  
	
   

  	
   

  	
   

  
	
  (s)

  	
   

  	
  “Default Notice”
  shall have the meaning ascribed in Section 21.7.

  
	
   

  	
   

  	
   

  
	
  (t)

  	
   

  	
  “Default Rate”
  shall mean an interest rate equal to (i) the “Prime Rate” plus two per
  cent 2%), or (ii) the maximum rate permitted by applicable Law,
  whichever is less.

  
	
   

  	
   

  	
   

  
	
  (u)

  	
   

  	
  “Delivery” shall
  mean delivery of the Equipment to the point nearest a Site accessible by
  common carrier, not unloaded from any arriving means of transport in
  accordance with the requirements of the Contract and the relevant PO. The
  Buyer shall unload the Equipment within forty-eight (48) hours after
  Delivery.

  
	
   

  	
   

  	
   

  
	
  (v)

  	
   

  	
  “Derivative Work”
  shall mean a computer software product developed by a licensee, which
  software product incorporates all or portions of Seller Software.

  
	
   

  	
   

  	
   

  
	
  (w)

  	
   

  	
  “Design Materials”
  shall have the meaning ascribed in Section 29.3.

  
	
   

  	
   

  	
   

  
	
  (x)

  	
   

  	
  “Disclosing Party”
  shall have the meaning ascribed in Section 29.1.

  
	
   

  	
   

  	
   

  
	
  (y)

  	
   

  	
  “Documentation”
  shall mean all written material in any form (except training materials) referencing
  the Software and Third-Party Software.

  
	
   

  	
   

  	
   

  
	
  (z)

  	
   

  	
  “Eligible Assignee”
  shall have the meaning ascribed in Section 30.1.

  
	
   

  	
   

  	
   

  
	
  (aa)

  	
   

  	
  “Equipment” shall
  mean electrical or mechanical apparatus to be engineered and procured by the
  Seller and incorporated into a Project, and consisting of one or more Units
  and any BOP provided by the Seller, together with all Software and Third
  Party Software provided by the Seller pursuant to this Contract, all as
  described in Attachment 2 to the Contract and as more fully described
  in Appendix A .

  
	
   

  	
   

  	
   

  
	
  (bb)

  	
   

  	
  “Error” shall have
  the meaning ascribed in Section 16.7.

  
	
   

  	
   

  	
   

  
	
  (cc)

  	
   

  	
  “Field Commissioning
  and Acceptance Test (FCAT)” shall have the meaning ascribed in Appendix
  A.

  
	
   

  	
   

  	
   

  
	
  (dd)

  	
   

  	
  “Final Acceptance”
  shall mean that a Project has been accepted in accordance with
  Section 8.5.

  
	
   

  	
   

  	
   

  
	
  (ee)

  	
   

  	
  “Financing Party”
  shall mean (i) any lender providing construction, interim or long-term
  financing (including any refinancing thereof) for the Equipment, a Project or
  any asset related thereto, any lessor under a leveraged lease transaction, or
  any trustee or agent acting on their behalf (including, without limitation,
  the independent engineer selected by such Persons, if any); (ii) any
  Person to which the Buyer grants a security interest in the Equipment; and
  (iii) any equity investor providing financing or refinancing for the
  Equipment, a Project or any asset related thereto, or any trustee, agent, or
  independent engineer acting on its behalf.

  

 

38

 

	
  (ff)

  	
   

  	
  “Hazardous Substance”
  shall mean any hazardous or toxic substance or pollutant which, pursuant to
  any applicable Law, has been determined, or at any future time may be
  determined, to be hazardous, toxic or dangerous to human health or the
  environment, including but not limited to any hazardous substance under the
  Comprehensive Environmental Response, Compensation and Liability Act, as
  amended (42 U.S.C.A. § 9601 et seq.), any solid waste under the
  Resource Conservation and Recovery Act of 1976, as amended (42 U.S.C.A. §
  6901 et seq.), or any pollutant, waste or toxic substance under the
  Clean Air Act, as amended (42 U.S.C.A. § 7401 et seq.), the Clean
  Water Act, as amended (33 U.S.C.A. § 1251 et  seq.), the Safe
  Drinking Water Act, as amended (42 U.S.C.A. § 3001 et  seq.), or
  the Toxic Substances Control Act, as amended (15 U.S.C.A. § 2601 et  seq.),
  and any applicable state laws.

  
	
   

  	
   

  	
   

  
	
  (gg)

  	
   

  	
  “Indemnified Party”
  shall have the meaning ascribed in Section 23.1. 

  
	
   

  	
   

  	
   

  
	
  (hh)

  	
   

  	
  “Indemnifying Party”
  shall have the meaning ascribed in Section 23.1.

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

  	
  “Installation Manual”
  shall mean the Unit-specific written instructions provided by the Seller at
  least ninety (90) days prior to Delivery of each Unit which are used by the
  Buyer during unloading and installation of such Unit to handle various
  installations.

  
	
   

  	
   

  	
   

  
	
  (jj)

  	
   

  	
  “Intellectual Property”
  shall mean the collective reference to all intellectual property, whether
  arising under federal, state, multinational or foreign Laws or otherwise,
  including, without limitation, copyrights, patents (including pending and
  future continuations and continuations in part, divisions and their
  continuations and continuations in part, reissues, reexaminations and foreign
  counterparts), trademarks, service-marks, know-how and processes, formulas,
  trade secrets, licenses of any of the foregoing, and all rights to sue at law
  or equity for any infringement or other impairment thereof, including the
  right to receive all proceeds and damages therefrom.

  
	
   

  	
   

  	
   

  
	
  (kk)

  	
   

  	
  “Laws” shall mean those
  laws, regulations, decrees or similar orders with mandatory effect issued by
  the legislative, judicial or executive branch of any relevant government or
  supranational body, as interpreted and applied, to the extent such laws,
  regulations, decrees or similar orders are applicable to the Contract and/or
  the Work.

  
	
   

  	
   

  	
   

  
	
  (ll)

  	
   

  	
  “License” shall have
  the meaning ascribed in Section 28.1.

  
	
   

  	
   

  	
   

  
	
  (mm)

  	
   

  	
  “Major Components”
  shall mean, with respect to a wind turbine, the tower, the rotor, the gear
  box, the hub, the blades, the low voltage distribution panel and the
  converter.

  
	
   

  	
   

  	
   

  
	
  (nn)

  	
   

  	
  “Mechanical Completion”
  shall mean that (i) all Equipment comprising the relevant Unit
  (including all materials and components but excluding minor or Punch List
  items) shall have been installed, erected, aligned, and adjusted at the Site
  in a non-operating condition, in accordance with Appendix A,
  (ii) backfeed power and grid connection for the relevant Unit has been
  provided or alternative commissioning power have been made available by the
  Buyer, (iii) a complete fiber optic network connection for the relevant
  Unit compliant with the minimum SCADA requirements established by the Seller
  has been provided, (iv) the relevant Unit is ready for initial operation
  in a safe manner, and (v) the Buyer has provided the Seller with a
  Mechanical Completion Certificate.

  
	
   

  	
   

  	
   

  
	
  (oo)

  	
   

  	
  “Mechanical Completion
  Certificate” shall have the meaning ascribed in Section 8.1.

  
	
   

  	
   

  	
   

  
	
  (pp)

  	
   

  	
  “Nominated Units”
  shall have the meaning ascribed in Section 18.2 and set forth in further
  detail in Appendix A.

  
	
   

  	
   

  	
   

  
	
  (qq)

  	
   

  	
  “Option” shall have
  the meaning ascribed in Section 2.3.

  
	
   

  	
   

  	
   

  
	
  (rr)

  	
   

  	
  “Owner” shall mean
  that Person who directly owns a Project.

  

 

39

 

	
  (ss)

  	
   

  	
  “Party” and “Parties”
  shall have the meanings ascribed in the recitals to the Contract.

  
	
   

  	
   

  	
   

  
	
  (tt)

  	
   

  	
  “Payment Schedule”
  shall mean the schedule of payments set forth in Attachment 3.  

  
	
   

  	
   

  	
   

  
	
  (uu)

  	
   

  	
  “Performance Schedule”
  shall mean the schedule of milestones described in Attachment 4.

  
	
   

  	
   

  	
   

  
	
  (vv)

  	
   

  	
  “Person” shall mean
  any individual, corporation, partnership, limited liability company,
  association, joint-stock company, joint venture, trust, unincorporated
  organization or governmental authority.

  
	
   

  	
   

  	
   

  
	
  (ww)

  	
   

  	
  “Personal Data” shall have
  the meaning ascribed in Section 29.1.

  
	
   

  	
   

  	
   

  
	
  (xx)

  	
   

  	
  “Power Curve Guarantee”
  shall have the meaning ascribed in Section 18.1.

  
	
   

  	
   

  	
   

  
	
  (yy)

  	
   

  	
  “Product Support
  Services” shall mean services provided by technical advisors of the
  Seller required to execute Seller’s Scope of Work set forth in Attachment
  2 as it pertains to the act or supervision of unloading, installation,
  start-up, testing, commissioning and initial operation and maintenance of any
  of the Major Components, other Equipment, Base GE SCADA, Base Wind Farm Management
  System or any other Options (if selected by the Buyer).

  
	
   

  	
   

  	
   

  
	
  (zz)

  	
   

  	
  “Progress Payments”
  shall mean those payments which are not associated with milestone events, as
  described in Attachment 3.

  
	
   

  	
   

  	
   

  
	
  (aaa)

  	
   

  	
  “Project” shall
  have the meaning ascribed in the Recitals of the Contract.

  
	
   

  	
   

  	
   

  
	
  (bbb)

  	
   

  	
  “Prudent Engineering
  Practices” shall mean those practices, methods, equipment, specifications
  and standards of safety and performance, as the same may change from time to
  time, as are generally used by professional construction and engineering
  firms performing engineering, procurement and construction services on wind
  energy facilities of the type, size and location similar to the Projects
  which, in the exercise of reasonable judgment and in the light of the facts
  known at the time the decision was made, are considered good, safe and
  prudent practice in connection with the engineering, procurement and
  construction of wind energy generating and operating equipment and other
  electrical equipment, facilities and improvements, and as are in accordance
  with Law and generally accepted national standards of professional care,
  skill, diligence and competence applicable to engineering, procurement,
  construction and project management practices.

  
	
   

  	
   

  	
   

  
	
  (ccc)

  	
   

  	
  “Prudent Industry
  Practices” means those practices, methods, equipment, specifications and
  standards of safety and performance, as the same may be changed from time to
  time, as are generally used in the operation and maintenance of privately
  owned wind generated electric power generation facilities similar to the
  Projects, which in the exercise of reasonable judgment and in light of the
  facts known at the time the decision was made, are considered good, safe and
  prudent practice in connection with the operation and maintenance of wind
  generation facilities similar to the Projects, and as are in accordance with
  Law and generally accepted national standards of professional care, skill,
  diligence and competence applicable to operation and maintenance practices.

  
	
   

  	
   

  	
   

  
	
  (ddd)

  	
   

  	
  “Punch List” shall
  mean the list prepared (and periodically revised as necessary) by the Seller
  and agreed by the Buyer, which list shall set forth certain items of Work
  with respect to a specific Project that do not materially affect any Unit’s
  operability or achievement of Commercial Operation, but which must be
  performed to ensure that such Unit complies with the standards and
  requirements set forth in the Contract and the PO.

  
	
   

  	
   

  	
   

  
	
  (eee)

  	
   

  	
  “Purchase Order” or
  “PO” shall have the meaning ascribed in Section 2.2.

  
	
   

  	
   

  	
   

  
	
  (fff)

  	
   

  	
  “Purchase Order Price”
  shall have the meaning ascribed in Section 11.1.

  

 

40

 

	
  (ggg)

  	
   

  	
  “Receiving Party”
  shall have the meaning ascribed in Section 29.1.

  
	
   

  	
   

  	
   

  
	
  (hhh)

  	
   

  	
  “Release” means the
  release, threatened release, spill, emission, leaking, pumping, injection,
  deposit, disposal, discharge, dispersal, leaching or migrating, including
  from prior spills, into the indoor or outdoor environment of any Hazardous
  Substance (including, without limitation, the abandonment or discarding or
  barrels, drums, or other containers containing any such Hazardous Substance
  through, at, on, above, under, around or in the air, soil, surface water, or
  groundwater).

  
	
   

  	
   

  	
   

  
	
  (iii)

  	
   

  	
  “Scheduled Major
  Component Shipment Dates” shall have the meaning ascribed in
  Section 2.2.

  
	
   

  	
   

  	
   

  
	
  (jjj)

  	
   

  	
  “Schedule of Options”
  shall mean the schedule described in Attachment 5.

  
	
   

  	
   

  	
   

  
	
  (kkk)

  	
   

  	
  “Seller” shall have
  the meaning ascribed in the recitals to the Contract.

  
	
   

  	
   

  	
   

  
	
  (lll)

  	
   

  	
  “Seller Taxes”
  shall mean (i) corporate and individual taxes that are measured by net
  income or profit that are imposed by any governmental authority of any
  country on the Seller, its employees, Subcontractors or Suppliers;
  (ii) import duties imposed due to the execution of any agreement,
  including the Contract, or the performance of, or payment for, Work under the
  Contract; and (iii) all taxes, duties, fees, or other charges of any
  nature (including, but not limited to, ad valorem, consumption, excise,
  franchise, gross receipts, license, property, sales, stamp, storage,
  transfer, turnover, use, or value-added taxes, and any and all items of
  withholding, deficiency, penalty, addition to tax, interest, or assessment
  related thereto), that are imposed by any governmental authority of any
  country, province or state on the Seller or its employees, its Subcontractors
  or Suppliers due to the manufacturing, shipment and/or transportation (if the
  Seller transports the Equipment pursuant to Article 5) of any of the
  Equipment and/or Services.

  
	
   

  	
   

  	
   

  
	
  (mmm)

  	
   

  	
  “Serial Defect”
  shall have the meaning ascribed in Section 16.3.

  
	
   

  	
   

  	
   

  
	
  (nnn)

  	
   

  	
  “Services” shall
  mean all of the services described in Attachment 2 hereto and more
  fully described in Appendix A .

  
	
   

  	
   

  	
   

  
	
  (ooo)

  	
   

  	
  “Ship” or “Shipment”
  shall mean for items manufactured in the US, placing an item of Equipment at
  the disposal of the Buyer at the Seller’s premises or another named place not
  cleared for export and not loaded on any collecting vehicle, or for items
  manufactured outside of the US, clearing an item of Equipment for import, not
  unloaded from any arriving means of transport at the named place of
  destination.

  
	
   

  	
   

  	
   

  
	
  (ppp)

  	
   

  	
  “Site” shall mean
  the location where the Equipment will be installed or that Services will be
  provided.

  
	
   

  	
   

  	
   

  
	
  (qqq)

  	
   

  	
  “Site Suitability
  Analysis” shall mean the analysis conducted by the Seller to determine
  the adequacy of the wind turbine as described in Attachment 2.

  
	
   

  	
   

  	
   

  
	
  (rrr)

  	
   

  	
  “Software” shall
  mean the Seller’s proprietary computer software and software security devices
  provided by the Seller under Article 28.

  
	
   

  	
   

  	
   

  
	
  (sss)

  	
   

  	
  “Sound Level Guarantee”
  shall mean the maximum sound power level emitted from a Unit as set forth in Appendix
  A.

  
	
   

  	
   

  	
   

  
	
  (ttt)

  	
   

  	
  “Source Code” shall
  mean the human-readable version of a software program that can be compiled,
  linked or interpreted into executable versions of the Software together with
  reasonably detailed instructions identifying the compilers, tools and methods
  necessary to successfully complete such task.

  
	
   

  	
   

  	
   

  
	
  (uuu)

  	
   

  	
  “Startup and
  Commissioning” shall mean the preparation of each Unit for Commercial
  Operation as more fully described in Attachment 2 and Appendix A .

  

 

41

 

	
  (vvv)

  	
   

  	
  Subcontractor(s)” shall mean
  any Person who supplies to the Seller or the Buyer (other than the Seller),
  as applicable, labor or other services to be performed at the Site in
  connection with this Contract.

  
	
   

  	
   

  	
   

  
	
  (www)

  	
   

  	
  “Supplier(s)” shall
  mean any Person who supplies to the Seller or the Buyer (other than the
  Seller), as applicable, material, equipment, labor, goods, or services in
  connection with the Seller’s or the Buyer’s, as applicable, obligations under
  this Contract, other than contracts for labor or other services to be
  performed at the Site.

  
	
   

  	
   

  	
   

  
	
  (xxx)

  	
   

  	
  “Support” shall
  have the meaning ascribed in Section 21.4.  

  
	
   

  	
   

  	
   

  
	
  (yyy)

  	
   

  	
  “Target Date” shall
  have the meaning ascribed in Section 17.2.

  
	
   

  	
   

  	
   

  
	
  (zzz)

  	
   

  	
  “Technical Advisory
  Services” shall mean the support provided by the Seller during
  installation, startup and commissioning.

  
	
   

  	
   

  	
   

  
	
  (aaaa)

  	
   

  	
  “Technical
  Specifications” shall mean the technical specifications for the Equipment
  and Services, all as set forth in Appendix A .

  
	
   

  	
   

  	
   

  
	
  (bbbb)

  	
   

  	
  “Termination Schedule”
  shall mean the schedule of termination charges set forth in Attachment 7
  to the Contract.

  
	
   

  	
   

  	
   

  
	
  (cccc)

  	
   

  	
  “Third Party Software”
  shall mean any proprietary computer software owned by a third party that the
  Seller provides to the Buyer.

  
	
   

  	
   

  	
   

  
	
  (dddd)

  	
   

  	
  “Transportation Charge”
  shall have the meaning ascribed in Article 5.

  
	
   

  	
   

  	
   

  
	
  (eeee)

  	
   

  	
  “Unit” shall mean a
  single wind turbine and its associated generator, together with those
  accessories associated only with that turbine.

  
	
   

  	
   

  	
   

  
	
  (ffff)

  	
   

  	
  “Unit Acceptance”
  shall mean that a Unit has been accepted in accordance with Section 8.5.

  
	
   

  	
   

  	
   

  
	
  (gggg)

  	
   

  	
  “Unit Price” shall
  have the meaning ascribed in Section 11.1.  

  
	
   

  	
   

  	
   

  
	
  (hhhh)

  	
   

  	
  “Warranty Period”
  shall have the meaning ascribed in Section 16.1.

  
	
   

  	
   

  	
   

  
	
  (iiii)

  	
   

  	
  “Work” or “Scope
  of Work” shall have the meaning ascribed in Section 2.1, as more
  fully described in Attachment 2.

  

 

42

 

Attachment 1 

Description of Projects and Scheduled Major Component Shipment Dates 

Projects(1)

 

***

 

2006 Shipment Schedule

 

	
  Fiscal Week

  	
   

  	
  Major

  Component

  Shipment

  Date(2)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  Weekly Total

  	
   

  
	
  21

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  22

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  23

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  

 

(1)
The Parties hereby acknowledge and agree that the advance notice requirements
set forth in the fourth sentence of Article 4, Shipment, of the Contract,
have been fulfilled.

 

(2) Each of the dates listed in this column shall be the last date by which
the Seller shall Ship all of the Major Components for a complete Unit; provided, however,
that all DTA’s and all butt and mid sections of all towers for all of the Units
shall be shipped by 10/13/06.

 

43

 

	
  24

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  29

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  30

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  31

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  32

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  33

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  34

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  35

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  36

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  37

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  38

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  39

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  40

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  41

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  42

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  43

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  
	
  Total:

  	
   

  	
   

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  	
   

  

 

Note:
Specific Project allocation to be defined at a later date. The Buyer recognizes
that Site Suitability Analyses will be required.

 

The
Seller shall make commercially reasonable efforts to ensure that *** — *** of the towers will be manufactured at the
Marmon facility, in Quebec, Canada.

 

The
Seller shall credit the Buyer for extended topping crane usage in the amount of
(i) $*** USD if any Major Components are Delivered
during FW 42 and no Major Components are Delivered during FW 43; (ii) $*** USD if any Major Components are Delivered
during FW 43 and no Major Components were Delivered during FW 42; or (iii) $*** USD if any Major Components were Delivered
during FW 42 and during FW 43.

 

44

 

Attachment 2

 

Scope of Work

 

	
  Item

  	
   

  	
  Item Price

  	
   

  	
  Quantity

  	
   

  	
  Total Price

  
	
  Wind
  Turbine Generator (WTG) (1)

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·  Nacelle and hub: 1.5 MW SLE (2)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·  Tower: MTS 3-section with T-flange (3)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·  Blade set: 77 meter rotor diameter (4)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·  Down tower assembly(5)

  	
   

  	
   

  	
   

  	
  ***

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·  Parts shipped loose kit

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ·  500 Lb Capacity winch

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  
	
  Site Suitability Analysis (6)

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  
	
  Base GE SCADA (7)(8)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  LVRT2

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Cold Weather Extreme

  Temperature Range:

   

  Operation: -30°C to +40° C

   

  Survival: -40°C to +50° C
  

   

  Note:    At
  higher elevations,the

  maximum operating temperature is

  reduced.

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Base Wind Farm Management
  System

  	
   

  	
  ***

  ***

  	
   

  	
  ***

  ***

  	
   

  	
  ***

  ***

  
	
  Project Support Services (9)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  

 

45

 

	
   

  	
   

  	
  ***

  ***

   

  ***

  	
   

  	
   

  	
   

  	
   

  
	
  Special installation tools

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  
	
  Shipping fixtures

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Warranty (as described in
  the Contract)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Enhanced Reactive Power
  Capability

   

  ·      Static power factor setting between 0.90
  overexcited (lagging, reactive power delivered) to 0.90 underexcited (leading reactive power
  absorbed) at 1.0pu voltage (575V) and full power (1500kW) at the WTG
  terminals.

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Total
  Contract Price

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  

 

NOTES:

 

(1)   Summary
specifications

 

·      Standard Temperature Range:

 

o Operation:
-15°C to +40° C. (Thumb Project shall be -20°C to +40° C)

 

o Survival:
-20°C to +50° C.

 

Note: At
higher elevations, the maximum operating temperature is reduced.

 

·      Corrosion
Protection per ISO 12944-2: External components rated to C3; internal rated to
C2.

 

·                  Static
power factor setting between 0.95 overexcited (lagging, reactive power
delivered) to 0.90 underexcited (leading reactive power absorbed) at 1 .0pu
voltage (575V) and full power (1500kW) at the WTG terminals.

 

(2)   Includes
generator, main shaft, bearings, drive train couplings, rotor hub, gearbox
(with first oil fill), generator cooling system, hydraulic system, yaw drive
system, blade pitch mechanism including drive motors and control system, wind
speed and direction sensors, lightning protection system, braking system,
instrumentation, and other related components.

 

46

 

GE Monogram on Nacelle not included unless otherwise instructed by
Buyer (200 days in advance).

 

(3)   Three section steel
tower with “T”-flange base for bolting to concrete foundation. The actual
height of the tower is listed in Drawing 903216 (Please contact Project Manager
to obtain the applicable revision of this drawing).

 

The foundation
anchor bolt pattern is shown in Drawing 903216. Tower sections to be supplied
with loose parts kit (lugs, bolts, connections) for erection EXCEPT anchor bolt templates, anchor
bolts, rigging equipment, and lifting beam, which are outside of the Seller’s
Scope of Work.

 

Tower
internals include ladders, platforms, power cabling (with all necessary
terminations), fall protection, lighting. Towers will be delivered to Site
pre-wired.

 

(4)   Blade sets consist of
three fiberglass epoxy resin blades in accordance with the Technical
Specifications.

 

(5)   Seller’s Scope of
Work includes all electrical and electronic wire and cables from the machine
head to the down tower equipment. It does not include splicing labor or
crimping tools (but does include heat shrink, conductive paste, and barrel
splices required to splice cable) between tower sections or connection from BOP
equipment (eg. Padmount transformer) to the down tower assembly.

 

(6)   Based on Buyer-provided data, as
requested in the Windfarm Met Data Form and Project Information Form, GE
will conduct a Site Suitability Analysis that will determine the adequacy of 1
..5sle. GE’s review will determine if the foregoing Scope of Work is sufficient
based on:

 

·   Number
of days with temperature below –20°C

 

·   Predicted
fatigue loading

 

·   Predicted
maximum 3 second gust, 50 year return period

 

·   Expected
seismic loading

 

The Buyer is
responsible for submitting the requested information in a timely manner. A Site
Suitability Analysis is to be carried out by the Seller’s engineering team in
accordance with the established standards and procedures applied in a
non-discriminatory manner for each proposed wind farm location. If the Scope of
Work is not sufficient, one or more of the Options described in the Schedule of
Options may be recommended by the Seller. In some cases (for example, extreme
expected seismic loads), a specialized configuration may be necessary that can
delay the Scheduled Major Component Shipment Dates and/or increase the Contract
Price and/or the Purchase Order Price. Such Site-specific risks are sole
responsibility of the Buyer.

 

(7)   Base GE SCADA system: Includes a basic
communication rack that can support up to four (4) single-mode
communication loops (that connect the first WTG in the loop to the master SCADA
communication rack), and four (4) multi-mode loops.

 

(8)   One (1) Metmast
SCADA package (enclosure, anemometer, windvane, sensors, cable, boom) per each
test tower required per the Machine Power Performance Tests (MPPT), assuming
each Unit to be tested will require an associated test tower to satisfy the
elevation relationship requirements is also included.

 

47

 

(9)   Project
Support Services include:

 

·                  Technical
Advisory Support at the Project Site during installation, Startup and
Commissioning.

 

·                  Site receiving
supervision and inventory control for the Seller’s Scope of Work.

 

·                  Supervision of
use of specialized installation tools.

 

·                  Commissioning of
Unit, SCADA, and WFMS (if WFMS option is selected by the Buyer).

 

·                  Start-up support
during initial operations to assist O&M Staff.

 

·                  Two full sets of
operations and maintenance manuals printed and bound plus a copy on CD.

 

·                  The Project
Support Services shall include a staffing plan for each Project and a number of
man-weeks of services to be provided for each Project, and shall be provided to
the Buyer at least 120 days in advance of the performance of the Work at the
Site for the Project.

 

48

 

Attachment 3 

Payment Schedule

 

Payments shall
be made in accordance with the following schedule:

 

***

 

The Parties
acknowledge and agree that Noble Environmental Power, LLC on behalf of the
Buyer paid the Seller the amount of $*** against the Contract Price on August 15,
2005, and the Seller hereby discharges that amount of the Buyer’s liability
under the Contract.

 

Refer to Article 12
for further invoicing and payment details.

 

* If any
of the Progress Payments listed above would be due after the Shipment of the
first group of Units for the relevant Project, the Seller shall provide the
Buyer an invoice for the unpaid amount of such Progress Payments relating to
the Units for the relevant Project (a “True-Up Amount”) and the Buyer shall pay
such True-Up Amount on the same date the Buyer pays for such Shipment all in
accordance with Article 12 of the Contract. For the avoidance of doubt,
the True-Up Amount shall be the amount necessary to bring the total payments
made with respect to the Units for the relevant Project equal to 40% of the
total amount owed for such Units (excluding the payment due upon Shipment).

 

49

 

Attachment 4 

Performance Schedule

 

The following
table will be included in each Purchase Order :

 

	
  Milestones

  	
   

  	
  Milestone Event

  	
   

  	
  Milestone Date

  
	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  

 

Note: The
Parties acknowledge and agree that the Milestones Dates set forth for the
Milestones 1, 2 and 4 in this Attachment 4 are included solely for purposes of Section 12.1
of the Contract.

 

50

 

Attachment 5 

Schedule of Options

 

The Buyer
shall have the option to purchase the following Equipment and/or Services on or
before the Exercise Date(s) stated below and for the prices stated subject
to availability, and the Seller shall provide transportation service in
accordance with Section 5.2 of the Contract. Any Option for the 2005 and
2006 Units requested by the Buyer after the Exercise Date will require a Change
Order and may involve a change in the Scheduled Major Component Shipment Dates.

 

	
  Item

  	
   

  	
  Item Price

  	
   

  	
  Basis

  	
   

  	
  Exercise Date

  
	
  Transportation

   

  (US Ground Transport to
  Site)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Additional Technical
  Advisor (TA)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Enhanced Reactive Power
  Capability 

   

  ·        Static power factor setting between 0.90
  overexcited (lagging, reactive power delivered) to 0.90 underexcited (leading
  active power absorbed) at 1.0pu voltage (575V) and full power (1500kW) at the
  WTG terminals.

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Low Voltage Ride Through I
  (LVRT I):

   

  30% voltage at the point
  of intersection for

  100msec

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Low Voltage Ride Through
  II (LVRT II):

   

  15% voltage at the point
  of intersection for 625msec for single- and three-phase faults; 200msec for
  two-phase faults

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Base Wind Farm Management
  System  

   

  Features:

   

  ·      Dynamic
  VAR Control

   

  ·      Line
  Drop Compensation

  	
   

  	
  ***

   

  ***

   

  ***

   

  ***

  	
   

  	
  ***

   

  ***

   

  ***

   

  ***

  	
   

  	
  ***

  

 

51

 

	
  ·      Power
  Curtailment

   

  ·      Capacitor/Reactor
  Bank Control

   

  ·      Ramp
  Rate/Power Fluctuation Control

  	
   

  	
  ***

   

  ***

   

  ***

  	
   

  	
  ***

   

  ***

   

  ***

  	
   

  	
   

  
	
  Cold Weather Extreme

   

  Temperature Range:

   

  Operation: -30°C to +40° C

   

  Survival: -40°C to +50° C

   

  Note: At higher
  elevations, the maximum operating temperature is reduced.

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Grid Studies

  	
   

  	
  ***

  	
   

  	
   

  	
   

  	
   

  
	
  Additional Corrosion
  Protection

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Site Specific Power Curve
  (for Low Turbulence Intensity conditions)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  
	
  Obstruction Lighting

   

  (beacons, platforms,
  mounting brackets, cabling, installation hardware)

   

  ·      L810

   

  ·      L864

   

  ·      L865

  	
   

  	
   

  ***

   

  ***

   

  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Additional SCADA Metmast
  package  (enclosure,anemometer,windvane,sensors,

  cable, booms)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Additional Special Tools

   

  ·      Pitch
  Drive Control Box

   

  Blade Trailing Edge
  Protector

  	
   

  	
   

   

  ***

   

  ***

  	
   

  	
  ***

   

  ***

  	
   

  	
  ***

  

 

52

 

Attachment 6 

Power Curve Liquidated Damages

 

	
  Payment Date

  	
   

  	
  Amount of Liquidated Damages

  
	
  ***

  	
   

  	
   

  	
  ***

  
	
  ***

  	
   

  	
   

  	
  ***

  

 

53

 

Attachment
7

Termination Schedule

 

	
  Months Prior to Scheduled Major
  Component

  Shipment Dates

  	
   

  	
  Termination Charge per Unit terminated

  (percent of Unit price)

  
	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  

 

54Exhibit 10.7(b)

 

Execution
Version

 

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.

 

FIRST
AMENDMENT TO MASTER CONTRACT FOR THE SALE OF POWER

GENERATION EQUIPMENT AND RELATED SERVICES

 

                THIS FIRST AMENDMENT TO MASTER CONTRACT FOR THE SALE
OF POWER GENERATION EQUIPMENT AND RELATED SERVICES (this “Amendment”),
dated as of August 24, 2006, by and between NOBLE ENVIRONMENTAL POWER 2006
HOLD CO, LLC, a Delaware limited liability company (the “Buyer”), and
GENERAL ELECTRIC COMPANY, a New York company (the “Seller”) (the Buyer
and the Seller referred to collectively as the “Parties”, and each,
individually, as a “Party”).

 

RECITALS

 

A.            As of February 15, 2006, the Parties entered into
that certain Master Contract for the Sale of Power Generation Equipment and
Related Services (the “Contract”) pursuant to which the Seller will
sell, and the Buyer will purchase, wind turbines, ancillary equipment and
certain related services; and

 

B.            As of March 1, 2006, Exergy Development Group (“Exergy”)
and the Seller (as successor to GE Wind Energy, LLC) entered into that certain
Turbine Purchase Order No. 9 (the “Exergy TPO”); and

 

C.            As of March 1, 2006, Exergy, the Seller, and the
Buyer entered into that certain Assignment and Agreement (the “Assignment”)
pursuant to which Exergy has assigned its rights and obligations under the
Exergy TPO to the Buyer with the express consent and agreement of the Seller;
and

 

D.            The Parties desire to amend certain terms and provisions
of the Contract and the Exergy TPO as provided in this Amendment.

 

NOW, THEREFORE, in
consideration of the promises and mutual covenants hereinafter set forth in the
Contract and this Amendment, the Parties hereto agree as follows:

 

1.             The
last sentence of Section 2.2 of the Contract is hereby deleted in its
entirety and replaced with the following:

 

                “Concurrently with
the execution of this Contract and from time to time thereafter, the Buyer
shall issue and submit to the Seller a Purchase Order for each Project
substantially in the form of Exhibit A (each, a “Purchase Order”
or “PO”).”

 

2.             The
last sentence of Section 3 of the Contract is hereby deleted in its
entirety and replaced with the following:

 

“Notwithstanding the foregoing, the Buyer
shall purchase a minimum aggregate of *** Units from the Seller.”

 

 

3.             The
first sentence of Section 5.2 of the Contract is hereby deleted in its
entirety and replaced with the following:

 

“Transportation by the Seller.  If the Purchase Order states that the Seller
is to transport the Equipment described in the Purchase Order, notwithstanding
the allocation of responsibility for loading in the definition of “Ship” in
Schedule 1, the Seller shall load (at no additional charge) and transport that
Equipment to the Site as promptly as reasonably possible and shall charge the
Buyer a fee for the transportation of that Equipment (the “Transportation  Charge”).”

 

4.             Section 5.3
of the Contract is hereby deleted in its entirety and replaced with the
following:

 

“Transportation by the Buyer or Third Party.  If the Purchase
Order states that the Buyer or a third party is to transport the Equipment
described in the Purchase Order, the Seller shall then have no obligation to
transport the Equipment described in the Purchase Order and shall not charge
the Buyer a Transportation Charge for such Equipment: provided,
however, that, notwithstanding the
allocation of responsibility for loading in the definition of “Ship” in
Schedule 1, the Seller shall load (at no additional charge) the Equipment on
any collecting transport provided by the Buyer or such third party if such
Equipment is being shipped from the Seller’s warehouse or manufacturing
facility.”

 

5.             The
Exergy TPO is hereby amended by replacing it in its entirety by Purchase Order No.   6 (“PO No. 6”), attached hereto
as Attachment A.

 

6.             For
the avoidance of doubt, for the purposes of PO No. 6 only:

 

a.               Attachment 1 of the Contract
is hereby amended as follows:

 

1.               The following paragraph is
hereby added beneath the last paragraph before the parenthetical in the
subsection of Attachment 1 entitled “Projects”:

 

***

 

2.               The table in Schedule 2.2 of
PO No. 6 titled “Delivery Dates” is hereby incorporated into the
table titled “2006 Shipment Schedule”.

 

3.               The text beneath the heading
and including the heading Designated Delivery Location(s) listed in
Schedule 2.2 of PO No. 6, including the final paragraph of Schedule 2.2,
is hereby added at the end of Attachment 1.

 

b.              Section 17.1 of the
Contract is hereby amended as follows:

 

1.     The first sentence of Section 17.1 of the Contract is
hereby deleted in its entirety and replaced by the following:

 

 

“Shipment.
If any of the Major Components associated with any Unit is not Shipped on or
before (with the prior approval of the Buyer) *** days after the
Scheduled Major Component Shipment Date set forth in Attachment 1, as amended, for reasons attributable to
the Seller and not excused elsewhere in this Contract, the Seller shall pay as
liquidated damages, and not as a penalty, a sum calculated in accordance with
the table below for each Unit for each day of delay after *** days after the Scheduled
Major Component Shipment Date as set forth in Attachment 1, as amended,
until actual Shipment of the last Major Component for such Unit:”

 

2.     The
heading in the left column of the table following the above paragraph amended
above shall be deleted in its entirety and replaced by the following:

 

***

 

3.     The
amount set forth in the right column of the table following the paragraph
amended above in Section 6(b)(1) of this Amendment shall be deleted
in its entirety and replaced with the following:

 

“$*** per Unit.”

 

c.               Attachment 2 to the Contract
is hereby deleted in its entirety and replaced by Schedule 2.1 of PO No. 6.

 

d.              Attachment 3 to the Contract
is hereby amended by deleting the chart titled “Payment Schedule” and the first
paragraph immediately following the chart and replacing it with Schedule 2.4 of
PO No. 6.

 

e.               Attachment 4 to the Contract
is hereby amended by:

 

1.               Inserting ***

 

f.                 Attachment 7 to the Contract
is hereby deleted in its entirety and replaced by Schedule 2.5 of PO No. 6.

 

7.             Except
as expressly amended hereby, all of the terms and conditions of the Contract
shall remain unchanged and shall continue to remain in full force and effect in
accordance with their respective terms.

 

8.             This
Amendment may be executed via facsimile in any number of counterparts and by
the Parties hereto on separate counterparts, each of which counterparts when
executed and delivered shall be an original, but all of which shall together
constitute one and the same instrument.

 

 

9.             THIS
AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK,
WITHOUT REGARD TO THE CONFLICT OF LAWS PROVISIONS THERETO (OTHER THAN SECTION 5-1401
OF THE GENERAL OBLIGATIONS LAW OF THE STATE OF NEW YORK).

 

[Signature Page Follows]

 

 

IN WITNESS WHEREOF, the
Parties have executed this Amendment as of the date first written above.

 

	
   

  	
  NOBLE ENVIRONMENTAL
  POWER 2006

  
	
   

  	
  HOLD CO, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Anne Edgley

  
	
   

  	
  Name:

  	
  Anne Edgley

  
	
   

  	
  Title:

  	
  Vice President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  GENERAL
  ELECTRIC COMPANY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Richard Schubert

  
	
   

  	
  Name:

  	
  Richard Schubert

  
	
   

  	
  Title:

  	
  Commercial Director

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