Document:

Exhibit 10.10

 

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

 

(2009 WTGs)

 

Dated as of September 27, 2007

 

 

	
  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

  	
   

  	
  4

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 8.

  	
   

  	
  Startup and
  Commissioning; Commercial Operation; Acceptance

  	
   

  	
  5

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 9.

  	
   

  	
  Inspections; Work at
  the Site

  	
   

  	
  7

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 10.

  	
   

  	
  Manner of Performance

  	
   

  	
  8

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 11.

  	
   

  	
  Price

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 12.

  	
   

  	
  Payment Schedule

  	
   

  	
  9

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 13.

  	
   

  	
  Changes

  	
   

  	
  11

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 14.

  	
   

  	
  Spare Parts and
  Consumables

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 15.

  	
   

  	
  Title and Risk of Loss.

  	
   

  	
  12

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 16.

  	
   

  	
  Warranty

  	
   

  	
  13

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 17.

  	
   

  	
  Delays in Shipment and
  Commercial Operation

  	
   

  	
  15

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 18.

  	
   

  	
  Power Curve Guarantee

  	
   

  	
  16

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 19.

  	
   

  	
  Sound Level

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 20.

  	
   

  	
  Suspension

  	
   

  	
  17

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 21.

  	
   

  	
  Termination

  	
   

  	
  18

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 22.

  	
   

  	
  Excusable Delays

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 23.

  	
   

  	
  Indemnity

  	
   

  	
  20

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 24.

  	
   

  	
  Limitations of
  Liability

  	
   

  	
  22

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 25.

  	
   

  	
  Insurance

  	
   

  	
  23

  

 

i

 

	
  ARTICLE 26.

  	
   

  	
  Taxes

  	
   

  	
  26

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 27.

  	
   

  	
  Intellectual Property

  	
   

  	
  27

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 28.

  	
   

  	
  Software License

  	
   

  	
  28

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 29.

  	
   

  	
  Proprietary Information

  	
   

  	
  30

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 30.

  	
   

  	
  Assignment

  	
   

  	
  32

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 31.

  	
   

  	
  Representations and
  Warranties

  	
   

  	
  33

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 32.

  	
   

  	
  Governing Law; Disputes

  	
   

  	
  35

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  ARTICLE 33.

  	
   

  	
  Miscellaneous

  	
   

  	
  36

  

 

  Schedule I –
Definitions

 

List of Attachments:

 

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

Attachment 2 – Scope of Work and Options

Attachment 3 – Payment
Schedule

Attachment 4 –
Performance Schedule

Attachment 5 –
Intenionally Left Blank

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 September 27, 2007, 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 2009 Equipment 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, 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 (the “Effective Date”)
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.  No later than seven (7) months prior to
first Unit shipment for each Project, 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 Table 1A and Table 2 
attached to this Contract in Attachment 2 (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 Buyer shall make
a  good faith prediction of projects in
written form to the Seller within 270 days of the Scheduled Delivery Date of
the first Unit, which 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 three hundred thirty three (333) 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, and in any event will not ship any

 

2

 

Major Components earlier
than December 1, 2008, 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.  In the event that transportation is
provided by the Seller, no later than ***
days prior to each Scheduled Major Component Shipment Date as set 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 Specific Loads  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, 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”).  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, 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, port of import 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 five (5) 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;

 

3

 

(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.

 

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
four (4)  Units per week to a maximum rate of fourteen (14) 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.    If
required, 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.  The Seller is not
obligated to supply any

 

4

 

specific type,
brand, make or model of shipping fixture. 
Upon the Seller’s delivery of any shipping fixtures, the Buyer shall
inspect such shipping fixtures 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. 
The Buyer shall have the right to use a maximum of forty-five (45) such
shipping fixtures (total for all Sites) for an unlimited amount of time after
actual Shipment.   If the Seller is
requested to provide such additional
shipping fixtures for the Buyer’s use, the Buyer shall have the right to keep
such additional shipping fixtures for a period of 30 days after actual
Shipment.  The Buyer must then make
available for pickup by the Seller the actual number of shipping fixtures (exceeding forty-five (45)) in the
Buyer’s possession which were provided
pursuant to this Section 7.4 (provided that up to one hundred
eighty (180) sets of root and tip stands have been provided by the Seller in order to store blades once the shipping fixtures have been removed).  The Buyer shall notify
the Seller in writing that the shipping fixtures are ready for pickup, and the
Seller shall provide for transportation. 
If the Buyer fails to make such shipping fixtures available for pickup within 30 days after actual Shipment,
the Buyer shall pay to the Seller $1000/day/fixture until such shipping fixtures are made available for
pickup.  The Buyer shall pack such
shipping fixtures in containers and load them onto transport vehicles provided
by the Seller.  The Buyer shall have the
right to keep the root and tip stands for a period of up to 120 days after
receipt.  The Buyer must then either (a) make
the root and tip stands available
for pickup by the Seller and load them onto transport vehicles provided by the
Seller or (b) purchase the root and tip stands from the Seller.  If any of such additional shipping fixtures or root and tip stands are
damaged or destroyed during the period in which the Buyer possesses them
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 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

 

5

 

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           [Intentionally omitted.]

 

8.5           Acceptance.   Each Unit will achieve Unit Acceptance on
the date when each of the following has occurred: (a) Commercial Operation
of the Unit has been achieved, (b) all Punch List items for the Unit have
been completed, and (c) the Work on the Unit has been completed in
accordance with the Contract.  Each
Project will achieve Final Acceptance 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

 

6

 

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 work 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 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

 

7

 

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

 

8

 

control laws and
regulations shall survive any termination of, or discharge of any other
obligations under, this Contract.

 

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  $***  (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         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.

 

11.3         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 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

 

9

 

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 17.1, 17.2, 18.2 and 19.2, 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.

 

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

 

10

 

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

 

11

 

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 22.1, (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 22.1 and the Termination Schedule,
and (ii) when title to such item of Equipment would otherwise have passed
pursuant to this Article 15.

 

12

 

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 thirty per cent (30%)  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 

 

13

 

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 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
logsheets, 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.

 

14

 

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.

 

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)

  	
   

  
	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  ***

  	
   

  

 

15

 

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.

 

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

 

16

 

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 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

 

17

 

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 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

 

18

 

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 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.

 

21.8         Limited Seller Right to Terminate.  In the event that prior to September 30,
2007, the Seller’s projected costs for the Units (based on data that is made
available to the

 

19

 

Buyer on a confidential basis) increases by
more than 5% above the projected costs of such Units on the Effective Date, the
Seller and the Buyer shall negotiate in good faith to agree on a revised
Contract Price for a period of thirty (30) days.  If the Parties are unable to reach agreement
within that period of thirty (30) days, then the Seller shall have the right to
terminate the Contract and shall refund to the Buyer all payments made by Buyer
under the Contract, plus interest at the Default Rate.

 

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

 

20

 

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 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

 

21

 

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 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

 

22

 

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 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 24
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,

 

23

 

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 $*** per 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 relevant Project;  (b) the policy shall be
non-cancelable by the Buyer and by the insurer, except for non-payment 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

 

24

 

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 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 23.1.

 

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 

 

25

 

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.

 

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

 

26

 

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 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

 

27

 

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;

 

28

 

(b) unless the Seller discontinues
Support, to disassemble, decompile, reverse engineer, or otherwise attempt to
reconstruct or discover the Source 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 re-installation 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 22.4.

 

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.

 

29

 

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.

 

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

 

30

 

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”), 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

 

31

 

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

 

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

 

32

 

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 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. (a) 
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

 

33

 

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.

 

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

 

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. (b)  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

 

34

 

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.

 

31.2.4      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 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

 

35

 

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 34.12. 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:

 

36

 

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.

 

37

 

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.

 

33.10       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:
  Project Manager

  
	
   

  	
  Facsimile
  No.: (949) 221-7844

  
	
   

  
	
  With
  copies to:

  
	
   

  
	
   

  	
  GENERAL
  ELECTRIC COMPANY

  
	
   

  	
  One
  River Road

  
	
   

  	
  Schenectady,
  NY 12345

  
	
   

  	
  Attention:
  Peter J. Bierden

  
	
   

  	
  Facsimile
  No.: (518) 385-4113

  
	
   

  
	
  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 2009 EQUIPMENT 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.

  
					

 

38

 

	
   

  	
  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.

 

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, 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]

 

39

 

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 2009
  

  EQUIPMENT CO., LLC

  
	
   

  	
   

  
	
  By:  

  	
  /s/ Corinne Holloway

  	
   

  	
  By:

  	
  /s/ Charles C. Hinckley

  
	
   

  	
   

  
	
  (Signature)

  	
  (Signature)

  
	
   

  	
   

  
	
   

  	
  Corinne Holloway

  	
   

  	
   

  	
  Charles C. Hinckley

  
	
   

  	
   

  
	
  (Printed
  Name)

  	
  (Printed
  Name)

  
	
   

  	
   

  
	
   

  	
  Commercial Leader

  	
   

  	
   

  	
  President

  
	
   

  	
   

  
	
  (Title)

  	
  (Title)

  
									

 

40

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

  
	
   

  	
   

  	
   

  
	
   

  

 

41

 

	
   

  	
   

  	
  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 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)

  	
   

  	
  “Effective Date” shall have the meaning ascribed in Article 1.

  
	
   

  	
   

  	
   

  
	
  (aa)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (bb)

  	
   

  	
  “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.

  
	
   

  	
   

  	
   

  
	
  (cc)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (dd)

  	
   

  	
  “Field Commissioning and Acceptance Test (FCAT)” shall have
  the meaning

  

 

42

 

	
   

  	
   

  	
  ascribed in Appendix A.

  
	
   

  	
   

  	
   

  
	
  (ee)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (ff)

  	
   

  	
  “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.

  
	
   

  	
   

  	
   

  
	
  (gg)

  	
   

  	
  “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.

  
	
   

  	
   

  	
   

  
	
  (hh)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (ii)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (jj)

  	
   

  	
  “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.

  
	
   

  	
   

  	
   

  
	
  (kk)

  	
   

  	
  “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.

  
	
   

  	
   

  	
   

  
	
  (ll)

  	
   

  	
  “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.

  
	
   

  	
   

  	
   

  
	
  (mm)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (nn)

  	
   

  	
  “Major Components” shall mean, with respect to a wind turbine,
  the tower, the

  

 

43

 

	
   

  	
   

  	
  rotor, the gear box, the hub, the blades, the low voltage
  distribution panel and the converter.

  
	
   

  	
   

  	
   

  
	
  (oo)

  	
   

  	
  “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.

  
	
   

  	
   

  	
   

  
	
  (pp)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (qq)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (rr)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (ss)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (tt)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (uu)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (vv)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (ww)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (xx)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (yy)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (zz)

  	
   

  	
  “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).

  
	
   

  	
   

  	
   

  
	
  (aaa)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (bbb)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (ccc)

  	
   

  	
  “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

  

 

44

 

	
   

  	
   

  	
  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.

  
	
   

  	
   

  	
   

  
	
  (ddd)

  	
   

  	
  “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.

  
	
   

  	
   

  	
   

  
	
  (eee)

  	
   

  	
  “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.

  
	
   

  	
   

  	
   

  
	
  (fff)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (ggg)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (hhh)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (iii)  “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).

  
	
   

  	
   

  	
   

  
	
  (jjj)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (kkk)

  	
   

  	
  “Schedule of Options” shall mean the schedule described in
  Table 1A and Table 2 of Attachment 2.

  
	
   

  	
   

  	
   

  
	
  (lll)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (mmm)  “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

  

 

45

 

	
  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.

  
	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (ooo)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (ppp)  “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.

  
	
   

  	
   

  	
   

  
	
  (qqq)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (rrr)  “Site Specific Loads
  Analysis” shall mean the analysis conducted by the Seller to determine the
  adequacy of the wind turbine as described in Attachment 2.

  
	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (ttt)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (uuu)  “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.

  
	
   

  	
   

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (www)  “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.

  
	
   

  	
   

  	
   

  
	
  (xxx)  “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.

  
	
   

  	
   

  	
   

  
	
  (yyy)

  	
   

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

  
	
   

  	
   

  	
   

  
	
  (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.

  

 

46

 

	
  (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.

  

 

47

 

Attachment
1

 

Description
of Projects and Scheduled Major Component Shipment Dates

 

Projects

 

Subject to Articles 3 and 4 of the Contract, all Project names, MW
sizes and general locations will be provided by the Buyer to the Seller in
writing no later than *** days prior to the first Scheduled Major Component Shipment
Date.

 

Shipment
Schedule

 

Assumed
Contract Effective Date

 

	
   

  	
   

  	
       [     ,    ], 2007

  	
   

  	
   

  

 

Shipments shall be made during fiscal weeks 11 through
44.  Units will be shipped at a rate of
no less than *** Units and no more than *** Units per week (with the exception
of the last fiscal week of Shipment). 
Seller will provide Shipment locations of the Major Components no later
than *** days prior to the first actual Major Component Shipment Date.  In the event that Buyer has concerns with the
Scheduled Major Component Shipment Dates, Seller will make a reasonable effort
to accommodate Buyer’s request.  In the
event that the Seller cannot accommodate such request,  the Scheduled Major Component Shipment Dates
herein shall apply.

 

48

 

Scheduled Major Component Shipment Dates

 

	
  Fiscal

  Week

  	
   

  	
  Schedule Major 

  Component Shipment 

  Dates

  	
   

  	
  Projects

  	
   

  	
  Weekly

  Total

  
	
  11

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  12

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  13

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  14

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  15

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  16

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  17

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  18

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  19

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  20

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  21

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  22

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  23

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  24

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  25

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  26

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  27

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  28

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  29

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  30

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  31

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  32

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  33

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  34

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  35

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  36

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  37

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  38

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  39

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  40

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  41

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  42

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  43

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  44

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  

 

49

 

Site Data Requirements

 

	
  Item

  	
   

  	
  Required Date to be Provided to Seller

  
	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  
	
  ***

  	
   

  	
  ***

  

 

50

 

Attachment
2

Scope of Work and Options

 

Section 2A
Scope of Work

 

General
Description. The
Equipment includes 333 model 1.5sle wind turbines, each (as more fully defined
in the Technical Specification) a “Unit”. The Technical Specification table of
contents identifies the Technical Specification as either a Contractual
Document or a reference document. 
Reference documents are not contractually binding and are typically
provided to supply relevant functional information for the Buyer to implement
Buyer scope activities.

 

The Seller may update the
Technical Specification to reflect product optimization of the Units up to ***
days before first unit Scheduled Major Component Shipment Date.  The sum of such Product optimizations for all
Units will not adversely affect the overall net benefits to the Buyer with
regard to Equipment, Equipment installation costs, or Equipment performance.

 

Customer
interfaces.  Seller is developing technical enhancements to
the electrical and control system of the Unit that may be implemented prior to
Delivery.  These enhancements require interface
changes limited to foundation stub-up conduit locations, pad mount transformer
voltage, cabling, and SCADA interfaces through OPC.  The Seller has the obligation to notify the
Buyer of any interface change by *** months prior to the first Scheduled
Major Equipment Shipment Date and to provide all required technical
documentation.

 

Imported
Equipment, Materials and Local Equipment. The Unit will be made up of both Imported
Equipment and Local Equipment.

 

51

 

TABLE 1: 
SCOPE OF WORK, 1.5MW 80M HUB HEIGHT

 

In the event the Buyer fails to confirm or amend the Scope of Work
within the timeframe specified in Table 1 and Table 1A below, the Scope of Work
for the Project shall be as identified in Table 1 and Table 1A.

 

	
  Item

  	
   

  	
  Item Price

  	
   

  	
  Quantity

  	
   

  	
  Total Price

  
	
  Wind
  Turbine Generator (1.5sle) (1)

  ·         Nacelle and hub (2)

  ·         Tower(3)

  ·         Blade set (4)

  ·         Down Tower Assembly  

  ·         Parts shipped loose kit  

  ·         500 Lb Capacity winch

  	
   

  	
  ***

  	
   

  	
  333

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Mechanical
  Loads Review (5)

  	
   

  	
  ***

  	
   

  	
  Per project

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WindRIDE-THRU®(6)

  	
   

  	
  ***

  	
   

  	
  Per turbine

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Project
  Support Services (7)

  	
   

  	
  ***

  	
   

  	
  Per turbine

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Special
  installation tools kit  (Pitch
  Drive Control Box and set of 3 Blade Trailing Edge Protectors)

  	
   

  	
  ***

  	
   

  	
  One per heavy lift crane (plus one if project > 20 turbines)

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Shipping
  Fixtures Usage

  	
   

  	
  ***

  	
   

  	
  1 set of fixtures per turbine

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Warranty
  (as described in the Contract)

  	
   

  	
  ***

  	
   

  	
  All

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Base 1.5sle Price

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  

 

52

 

TABLE
1A Base Options

 

	
  Item

  	
   

  	
  Item Price

  	
   

  	
  Quantity

  	
   

  	
  Total Price

  
	
  Transportation
  to the closest Common Carrier Point to the Site

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional
  Technical Advisor (TA)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Cold
  Weather Extreme(9)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional
  Corrosion Protection(10)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Enhanced
  Reactive Power

  Capability(11)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WindCONTROL
  (2)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Features:
  Dynamic VAR Control

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WindSCADA
  III (13), (14)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total
  Base Option Price

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  ***

  

 

Table
1 and 1A Footnotes (additional detail provided in the Technical Specification):

 

(1)           Summary specifications

·                  Above
1000m elevation, the maximum operating temperature is reduced per DIN
IEC60034-1 (e.g., the maximum operating temperature is reduced proportionally
from 40oC at 1000m or less, to 30oC at 2000m).

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

 

53

 

(2)                                  GE
monogram on nacelle excluded.

 

(3)                                  Seller
Scope of Work does not include anchor bolt templates, anchor bolts, rigging
equipment, or lifting beam.

 

(4)                                  Blade
sets in accordance with the Technical Specification.

 

(5)                                  The
Seller shall conduct one “Mechanical Loads Review” per Project based on the
Buyer provided data.  The Mechanical
Loads Review shall be for the specified project location where the Units will
be installed.  The Mechanical Loads
Review will determine the adequacy of the 1.5sle. Seller’s review will
determine if the foregoing Scope of Work is sufficient based on:

 

·                  Predicted
fatigue loading

·                  Predicted
maximum 3 second gust, 50 year return period

·                  Number of days
with temperature below -20o C

 

The Buyer is responsible for assessing the nature of the conditions at
the Site and submitting the requested information in accordance with Attachment
1 Site Data Requirements. A Site Specific Loads Analysis is to be carried out
by the Seller’s engineering team in accordance with 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 the sole responsibility of the Buyer.

 

(6)                                  Zero
volt ride-thru

 

(7)                                  Project
Support Services include:

·                  Technical
Advisory Services 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
Turbines, WindSCADA, and WindCONTROL

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

·                  Two full sets of
operations and maintenance manuals on CD

·                  The Project
Support Services shall include a staffing plan for each Project and a number of
manweeks of service 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.

·                  The Project
Support Services pricing included is based upon the following assumptions:

·                  A minimum number
of *** Units will be installed sequentially and continuously per Site.  For a smaller number of Units per Site, an
additional charge will be assessed based on the actual number of Units per
Site.

·                  The rate of
installation/commissioning will be a minimum of *** Units per week and a
maximum of *** Units per week, completed in consecutive weeks.

 

(8)                                  Reserved.

 

54

 

(9)           Maximum operating temperature is reduced above 1000m elevation

 

(10)         Corrosion protection per ISO 12944-2: external components rated to C5;
internal rated to C4

 

(11)         Static power factor setting +/- 0.90 at 1.0pu voltage (575V) and full power
(1500kW) at the wind turbine generator terminals.

 

(12)         Supports up to *** Units. 
Dynamic VAR Control can be operated in voltage mode or power factor
mode.

 

(13)         Purchase of WindSCADA is required. 
The WindSCADA system includes a communication rack that can support the
required number of communication loops for windfarms, up to *** Units.

 

WindSCADA-III
is the WindSCADA-II system plus a full feature set as described in the
Technical Specification.

 

WindSCADA-II
includes advanced user interface screens for real time view of the wind
park.  It collects data for the whole
park and makes it available for both real-time and historical reporting. It
includes an SQL database that collects at least 12 months of operational
data.  Additional detail is provided in
the Technical Specification.

 

WindSCADA-I
provides basic wind park operations and control including a park wide overview
with the ability to connect directly to each turbine for details.  Short-term turbine level operation history is
available (<14 days).  Additional
detail is provided in the Technical Specification.

 

(14)         One (1) Metmast SCADA package (enclosure, anemometer, windvane,
sensors, cable, boom) per each Project.

 

Section 2B
Options

 

Subject
to availability, the Buyer shall have the option to purchase the following
items prior to the required order date and for the prices specified in Table 2
below.  Equipment will be shipped
configured per the Scope of Work (Table 1 and Table 1A) if options are not
elected in writing prior to the required order date.  Any option requested by Buyer after the
required order date will require a Change Order pursuant to Article 13 of
the Contract.

 

TABLE 2:  SCHEDULE OF OPTIONS

 

	
  Item

  	
   

  	
  Item Price

  	
   

  	
  Basis

  	
   

  	
  Required Order

  Date

  
	
  WindFREE
  Reactive Power1

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  

 

55

 

	
  Item

  	
   

  	
  Item
  Price

  	
   

  	
  Basis

  	
   

  	
  Required
  Order Date

  
	
  WindCONTROL
  

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Optional
  Features:  

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
   

  
	
  ·   Line Drop Compensation  

  ·   Power Curtailment  

  ·   Capacitor/Reactor Bank Control  

  ·   Ramp Rate/Power Fluctuation      Control
  

  ·   Frequency Droop Control

  	
   

  	
  ***

  ***

  ***

  	
   

  	
  ***

  ***

  ***

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  WindSCADA-II(2)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Environmental

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Altitude
  Temperature Control(3) (future
  offering)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Miscellaneous

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Obstruction
  Lighting  

  Mounting Kit and
  Synchronization  

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

  

       ·   L810  

  

       ·   L864

  
      ·   L865

  	
   

  	
  

  

  

  

  

  

  ***

  

  ***

  

  ***

  	
   

  	
  

  

  

  ***

  	
   

  	
  

  

  

  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (1) Metmast
  SCADA package  (enclosure,
  datalogger, anemometer, windvane, sensors, cable, booms)

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Additional
  Special Tools  

       ·   Pitch Drive Control Box  

       ·   Blade Trailing Edge Protector

  	
   

  	
  

  ***

  ***

  	
   

  	
  

  ***

  ***

  	
   

  	
  

  ***

  

 

56

 

	
  Item

  	
   

  	
  Item
  Price

  	
   

  	
  Basis

  	
   

  	
  Required
  Order Date

  
	
  Additional GE Products and Services

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Training

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  
	
  Support for Site Specific Statement of Compliance for Design
  Assessment from independent third party

  	
   

  	
  ***

  	
   

  	
  ***

  	
   

  	
  ***

  

 

Table 2 Footnotes:

 

(1)           Requires the Dynamic VAR Control feature.

 

(2)           Reference WindSCADA footnote 13 in Table 1 above.

 

(3)                                  Feature which allows the Unit to operate up
to max temperature limits at altitudes greater than 1000m.

 

57

 

Attachment
3

 

Payment
Schedule

 

Payments
shall be made in accordance with the following schedule:

 

***

 

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).

 

58

 

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.

 

59

 

Attachment
5

(Intentionally
Left Blank)

 

Attachment
6

 

Power
Curve Liquidated Damages

 

	
  Payment
  Date

  	
   

  	
  Amount of Liquidated Damages

  
	
  ***

  	
   

  	
  ***

  
	
   

  	
   

  	
   

  
	
  ***

  	
   

  	
  ***

  

 

60

 

Attachment
7

 

Termination
Schedule

 

	
  Months
  Prior to Scheduled Major 

  Component Shipment Dates

  	
   

  	
  Termination Charge per Unit terminated

  (percent of Unit price)

  	
   

  
	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  ***

  	
   

  
	
  ***

  	
   

  	
  ***

  	
   

  

 

61Exhibit 10.41(a)

 

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

 

(Multicurrency – Cross
Border)

ISDA®

International
Swap Dealers Association, Inc.

 

MASTER
AGREEMENT

 

dated as of June 30, 2008

 

	
  CITIGROUP ENERGY INC.

  	
  and

  	
  Noble Environmental Power 2008
  Hold Co, LLC

  

 

have entered and/or anticipate entering into one of
more transactions (each a “Transaction”) that are or will be governed by this
Master Agreement, which includes the schedule (the “Schedule”), and the
documents and other confirming evidence (each a “Confirmation”) exchanged
between the parties confirming those Transactions.

 

Accordingly, the parties agree as follows: —

 

1.           Interpretation

 

(a)          Definitions.  The terms defined in Section 14 and
in the Schedule will have the meanings therein specified for the purpose of
this Master Agreement.

 

(b)          Inconsistency.  In the event of any inconsistency between the
provisions of the Schedule and the other provisions of this Master Agreement,
the Schedule will prevail. In the event of any inconsistency between the
provisions of any Confirmation and this Master Agreement (including the
Schedule), such Confirmation will prevail for the purpose of the relevant
Transaction.

 

(c)          Single Agreement.  All Transactions are entered into in reliance
on the fact that this Master Agreement and all Confirmations form a single
agreement between the parties (collectively referred to as this “Agreement”),
and the parties would not otherwise enter into any Transactions.

 

2.           Obligations

 

(a)          General Conditions.

 

(i)            Each
party will make each payment or delivery specified in each Confirmation to be
made by it, subject to the other provisions of this Agreement.

 

(ii)           Payments
under this Agreement will be made on the due date for value on that date in the
place of the account specified in the relevant Confirmation or otherwise pursuant
to this Agreement, in freely transferable funds and in the manner customary for
payments in the required currency. Where settlement is by delivery (that is,
other than by payment), such delivery will be made for receipt on the due date
in the manner customary for the relevant obligation unless otherwise specified
in the relevant Confirmation or elsewhere in this Agreement.

 

(iii)          Each
obligation of each party under Section 2(a)(i) is subject to (1) the
condition precedent that no Event of Default or Potential Event of Default with
respect to the other party has occurred and is continuing, (2) the
condition precedent that no Early Termination Date in respect of the relevant
Transaction has occurred or been effectively designated and (3) each other
applicable condition precedent specified in this Agreement.

 

Copyright © 1992
by International Swap Dealers Association, Inc.

 

 

(b)          Change of Account.  Either party may change its account for
receiving a payment or delivery by giving notice to the other party at least
five Local Business Days prior to the scheduled date for the payment or
delivery to which such change applies unless such other party gives timely
notice of a reasonable objection to such change.

 

(c)          Netting.  If on any date amounts would otherwise be
payable: —

 

(i)            in
the same currency; and

 

(ii)           in
respect of the same Transaction,

 

by each party to the other. then, on such date, each
party’s obligation to make payment of any such amount will be automatically
satisfied and discharged and, if the aggregate amount that would otherwise have
been payable by one party exceeds the aggregate amount that would otherwise
have been payable by the other party, replaced by an obligation upon the party
by whom the larger aggregate amount would have been payable to pay to the other
party the excess of the larger aggregate amount over the smaller aggregate
amount.

 

The parties may elect in respect of two or more
Transactions that a net amount will be determined in respect of all amounts
payable on the same date in the same currency in respect of such Transactions,
regardless of whether such amounts are payable in respect of the same
Transaction. The election may be made in the Schedule or a Confirmation by
specifying that subparagraph (ii) above will not apply to the Transactions
identified as being subject to the election, together with the starting date
(in which case subparagraph (ii) above will not, or will cease to, apply
to such Transactions from such date). This election may be made separately for
different groups of Transactions and will apply separately to each pairing of
Offices through which the parties make and receive payments or deliveries.

 

(d)          Deduction or Withholding
for Tax.

 

(i)            Gross-Up.  All
payments under this Agreement will be made without any deduction or withholding
for or on account of any Tax unless such deduction or withholding is required
by any applicable law, as modified by the practice of any relevant governmental
revenue authority, then in effect.  If a
party is so required to deduct or withhold, then that party (“X”) will: —

 

(1)           promptly notify the
other party (“Y”) of such requirement;

 

(2)           pay to the relevant
authorities the full amount required to be deducted or withheld (including the
full amount required to be deducted or withheld from any additional amount paid
by X to Y under this Section 2(d)) promptly upon the earlier of
determining that such deduction or withholding is required or receiving notice
that such amount has been assessed against Y;

 

(3)           promptly forward to
Y an official receipt (or a certified copy), or other documentation reasonably
acceptable to Y, evidencing such payment to such authorities; and

 

(4)           if such Tax is an
Indemnifiable Tax, pay to Y, in addition to the payment to which Y is otherwise
entitled under this Agreement, such additional amount as is necessary to ensure
that the net amount actually received by Y (free and clear of Indemnifiable
Taxes. whether assessed against X or Y) will equal the full amount Y would have
received had no such deduction or withholding been required. However, X will
not be required to pay any additional amount to Y to the extent that it would
not be required to be paid but for: —

 

(A)          the failure by Y to
comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or
4(d); or

 

(B)           the failure of a
representation made by Y pursuant to Section 3(f) to be accurate and
true unless such failure would not have occurred but for (I) any action
taken by a taxing authority, or brought in a court of competent jurisdiction,
on or after the date on which a Transaction is entered into (regardless of
whether such action is taken or brought with respect to a party to this
Agreement) or (II) a Change in Tax Law.

 

2

 

(ii)           Liability.  If: —

 

(1)           X is required by any
applicable law, as modified by the practice of any relevant governmental
revenue authority, to make any deduction or withholding in respect of which X
would not be required to pay an additional amount to Y under Section 2(d)(i)(4);

 

(2)           X does not so deduct
or withhold; and

 

(3)           a liability
resulting from such Tax is assessed directly against X,

 

then, except to the extent Y has satisfied or then satisfies the
liability resulting from such Tax, Y will promptly pay to X the amount of such
liability (including any related liability for interest, but including any
related liability for penalties only if Y has failed to comply with or perform
any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d)).

 

(e)          Default Interest; Other
Amounts.  Prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant
Transaction, a party that defaults in the performance of any payment obligation
will, to the extent permitted by law and subject to Section 6(c), be
required to pay interest (before as well as after judgment) on the overdue
amount to the other party on demand in the same currency as such overdue
amount, for the period from (and including) the original due date for payment
to (but excluding) the date of actual payment, at the Default Rate.  Such interest will be calculated on the basis
of daily compounding and the actual number of days elapsed.  If, prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant
Transaction, a party defaults in the performance of any obligation required to
be settled by delivery, it will compensate the other party on demand if and to
the extent provided for in the relevant Confirmation or elsewhere in this Agreement.

 

3.           Representations

 

Each party represents to the other party (which
representations will be deemed to be repeated by each party on each date on
which a Transaction is entered into and, in the case of the representations in Section 3(f),
at all times until the termination of this Agreement) that: —

 

(a)          Basic Representations.

 

(i)            Status.  It is duly
organised and validly existing under the laws of the jurisdiction of its
organisation or incorporation and, if relevant under such laws, in good
standing;

 

(ii)           Powers.  It has the
power to execute this Agreement and any other documentation relating to this
Agreement to which it is a party, to deliver this Agreement and any other
documentation relating to this Agreement that it is required by this Agreement
to deliver and to perform its obligations under this Agreement and any
obligations it has under any Credit Support Document to which it is a party and
has taken all necessary action to authorise such execution, delivery and
performance;

 

(iii)          No Violation or Conflict. 
Such execution, delivery and performance do not violate or conflict with
any law applicable to it, any provision of its constitutional documents, any
order or judgment of any court or other agency of government applicable to it
or any of its assets or any contractual restriction binding on or affecting it
or any of its assets;

 

(iv)          Consents.  All
governmental and other consents that are required to have been obtained by it
with respect to this Agreement or any Credit Support Document to which it is a
party have been obtained and are in full force and effect and all conditions of
any such consents have been complied with; and

 

(v)           Obligations Binding. 
Its obligations under this Agreement and any Credit Support Document to
which it is a party constitute its legal, valid and binding obligations,
enforceable in accordance with their respective terms (subject to applicable
bankruptcy, reorganisation, insolvency, moratorium or similar laws affecting
creditors’ rights generally and subject, as to enforceability, to equitable
principles of general application (regardless of whether enforcement is sought
in a proceeding in equity or at law)).

 

3

 

(b)          Absence of Certain Events.  No Event of Default or Potential Event of
Default or, to its knowledge, Termination Event with respect to it has occurred
and is continuing and no such event or circumstance would occur as a result of
its entering into or performing its obligations under this Agreement or any Credit
Support Document to which it is a party.

 

(c)          Absence of Litigation.  There is not pending or, to its knowledge,
threatened against it or any of its Affiliates any action, suit or proceeding
at law or in equity or before any court, tribunal, governmental body, agency or
official or any arbitrator that is likely to affect the legality, validity or
enforceability against it of this Agreement or any Credit Support Document to
which it is a party or its ability to perform its obligations under this
Agreement or such Credit Support Document.

 

(d)          Accuracy of Specified
Information.  All
applicable information that is furnished in writing by or on behalf of it to
the other party and is identified for the purpose of this Section 3(d) in
the Schedule is, as of the date of the information, true, accurate and complete
in every material respect.

 

(e)          Payer Tax Representation.  Each representation specified in the Schedule
as being made by it for the purpose of this Section 3(e) is accurate
and true.

 

(f)           Payee Tax Representations.  Each representation specified in the Schedule
as being made by it for the purpose of this Section 3(f) is accurate
and true.

 

4.           Agreements

 

Each party agrees with the other that, so long as
either party has or may have any obligation under this Agreement or under any
Credit Support Document to which it is a party: —

 

(a)          Furnish Specified
Information.  It will
deliver to the other party or, in certain cases under subparagraph (iii) below,
to such government or taxing authority as the other party reasonably directs: —

 

(i)            any
forms, documents or certificates relating to taxation specified in the Schedule
or any Confirmation;

 

(ii)           any
other documents specified in the Schedule of any Confirmation; and

 

(iii)          upon
reasonable demand by such other party, any form or document that may be
required or reasonably requested in writing in order to allow such other party
or its Credit Support Provider to make a payment under this Agreement or any
applicable Credit Support Document without any deduction or withholding for or
on account of any Tax or with such deduction or withholding at a reduced rate
(so long as the completion, execution or submission of such form or document
would not materially prejudice the legal or commercial position of the party in
receipt of such demand), with any such form or document to be accurate and
completed in a manner reasonably satisfactory to such other party and to be
executed and to be delivered with any reasonably required certification,

 

in each case by the date specified in the Schedule or
such Confirmation or, if none is specified, as soon as reasonably practicable.

 

(b)          Maintain Authorisations.  It will use all reasonable efforts to
maintain in full force and effect all consents of any governmental or other
authority that are required to be obtained by it with respect to this Agreement
or any Credit Support Document to which it is a party and will use all
reasonable efforts to obtain any that may become necessary in the future.

 

(c)          Comply with Laws.  It will comply in all material respects with
all applicable laws and orders to which it may be subject if failure so to
comply would materially impair its ability to perform its obligations under
this Agreement or any Credit Support Document to which it is a party.

 

(d)          Tax Agreement.  It will give notice of any failure of a
representation made by it under Section 3(f) to be accurate and true
promptly upon learning of such failure.

 

(e)          Payment of Stamp Tax.  Subject to Section 11, it will pay any
Stamp Tax levied or imposed upon it or in respect of its execution or
performance of this Agreement by a jurisdiction in which it is incorporated,

 

4

 

organised, managed and controlled or considered to
have its seat, or in which a branch or office through which it is acting for
the purpose of this Agreement is located (“Stamp Tax Jurisdiction”) and will
indemnify the other party against any Stamp Tax levied or imposed upon the
other party or in respect of the other party’s execution or performance of this
Agreement by any such Stamp Tax Jurisdiction which is not also a Stamp Tax
Jurisdiction with respect to the other party.

 

5.           Events of Default and Termination
Events

 

(a)          Events of Default.  The occurrence at any time with respect to a
party or, if applicable, any Credit Support Provider of such party or any
Specified Entity of such party of any of the following events constitutes an
event of default (an “Event of Default”) with respect to such party: —

 

(i)            Failure to Pay or Deliver.  Failure by the party to make, when due, any
payment under this Agreement or delivery under Section 2(a)(i) or 2(e) required
to be made by it if such failure is not remedied on or before the third Local
Business Day after notice of such failure is given to the party;

 

(ii)           Breach of Agreement. 
Failure by the party to comply with or perform any agreement or
obligation (other than an obligation to make any payment under this Agreement
or delivery under Section 2(a)(i) or 2(e) or to give notice of a
Termination Event or any agreement or obligation under Section 4(a)(i),
4(a)(iii) or 4(d)) to be complied with or performed by the party in
accordance with this Agreement if such failure is not remedied on or before the
thirtieth day after notice of such failure is given to the party;

 

(iii)          Credit Support Default.

 

(1)           Failure by the party
or any Credit Support Provider of such party to comply with or perform any
agreement or obligation to be complied with or performed by it in accordance
with any Credit Support Document if such failure is continuing after any
applicable grace period has elapsed;

 

(2)           the expiration or
termination of such Credit Support Document or the failing or ceasing of such
Credit Support Document to be in full force and effect for the purpose of this
Agreement (in either case other than in accordance with its terms) prior to the
satisfaction of all obligations of such party under each Transaction to which
such Credit Support Document relates without the written consent of the other
party; or

 

(3)           the party or such
Credit Support Provider disaffirms, disclaims, repudiates or rejects, in whole
or in part, or challenges the validity of, such Credit Support Document;

 

(iv)          Misrepresentation.  A
representation (other than a representation under Section 3(e) or
(f)) made or repeated or deemed to have been made or repeated by the party or
any Credit Support Provider of such party in this Agreement or any Credit
Support Document proves to have been incorrect or misleading in any material
respect when made or repeated or deemed to have been made or repeated;

 

(v)           Default under Specified Transaction.  The party, any Credit Support Provider of
such party or any applicable Specified Entity of such party (1) defaults
under a Specified Transaction and, after giving effect to any applicable notice
requirement or grace period, there occurs a liquidation of, an acceleration of
obligations under, or an early termination of, that Specified Transaction, (2) defaults,
after giving effect to any applicable notice requirement or grace period, in
making any payment or delivery due on the last payment, delivery or exchange
date of, or any payment on early termination of, a Specified Transaction (or
such default continues for at least three Local Business Days if there is no
applicable notice requirement or grace period) or (3) disaffirms,
disclaims, repudiates or rejects, in whole or in part, a Specified Transaction
(or such action is taken by any person or entity appointed or empowered to
operate it or act on its behalf);

 

(vi)          Cross
Default.  If “Cross Default”
is specified in the Schedule as applying to the party, the occurrence or
existence of (1) a default, event of default or other similar condition or
event (however

 

5

 

described) in respect of such party, any Credit Support Provider of
such party or any applicable Specified Entity of such party under one or more
agreements or instruments relating to Specified Indebtedness of any of them
(individually or collectively) in an aggregate amount of not less than the
applicable Threshold Amount (as specified in the Schedule) which has resulted
in such Specified Indebtedness becoming, or becoming capable at such time of
being declared, due and payable under such agreements or instruments, before it
would otherwise have been due and payable or (2) a default by such party,
such Credit Support Provider or such Specified Entity (individually or
collectively) in making one or more payments on the due date thereof in an
aggregate amount of not less than the applicable Threshold Amount under such
agreements or instruments (after giving effect to any applicable notice
requirement or grace period);

 

(vii)         Bankruptcy.  The
party, any Credit Support Provider of such party or any applicable Specified
Entity of such party:–

 

(1) is dissolved (other than pursuant to a consolidation,
amalgamation or merger); (2) becomes insolvent or is unable to pay its
debts or fails or admits in writing its inability generally to pay its debts as
they become due; (3) makes a general assignment, arrangement or
composition with or for the benefit of its creditors; (4) institutes or
has instituted against it a proceeding seeking a judgment of insolvency or
bankruptcy or any other relief under any bankruptcy or insolvency law or other
similar law affecting creditors’ rights, or a petition is presented for its
winding-up or liquidation, and, in the case of any such proceeding or petition
instituted or presented against it, such proceeding or petition (A) results
in a judgment of insolvency or bankruptcy or the entry of an order for relief
or the making of an order for its winding-up or liquidation or (B) is not
dismissed, discharged, stayed or restrained in each case within 30 days of the
institution or presentation thereof, (5) has a resolution passed for its
winding-up, official management or liquidation (other than pursuant to a
consolidation, amalgamation or merger); (6) seeks or becomes subject to
the appointment of an administrator, provisional liquidator, conservator,
receiver, trustee, custodian or other similar official for it or for all or
substantially all its assets; (7) has a secured party take possession of
all or substantially all its assets or has a distress, execution, attachment,
sequestration or other legal process levied, enforced or sued on or against all
or substantially all its assets and such secured party maintains possession, or
any such process is not dismissed, discharged, stayed or restrained, in each
case within 30 days thereafter; (8) causes or is subject to any event with
respect to it which. under the applicable laws of any jurisdiction, has an
analogous effect to any of the events specified in clauses (1) to (7) (inclusive);
or (9) takes any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any of the foregoing acts; or

 

(viii)        Merger Without Assumption. 
The party or any Credit Support Provider of such party consolidates or
amalgamates with, or merges with or into, or transfers all or substantially all
its assets to, another entity and, at the time of such consolidation,
amalgamation, merger or transfer: –

 

(1)           the resulting,
surviving or transferee entity fails to assume all the obligations of such
party or such Credit Support Provider under this Agreement or any Credit
Support Document to which it or its predecessor was a party by operation of law
or pursuant to an agreement reasonably satisfactory to the other party to this
Agreement; or

 

(2)           the benefits of any
Credit Support Document fail to extend (without the consent of the other party)
to the performance by such resulting, surviving or transferee entity of its
obligations under this Agreement.

 

(b)          Termination Events.  The occurrence at any time with respect to a
party or, if applicable, any Credit Support Provider of such party or any
Specified Entity of such party of any event specified below constitutes an
Illegality if the event is specified in (i) below, a Tax Event if the
event is specified in (ii) below or a Tax Event Upon Merger if the event
is specified in (iii) below, and, if specified to be applicable, a Credit
Event

 

6

 

Upon Merger if the event is specified pursuant to (iv) below
or an Additional Termination Event if the event is specified pursuant to (v) below:—

 

(i)            Illegality.  Due to
the adoption of, or any change in, any applicable law after the date on which a
Transaction is entered into, or due to the promulgation of, or any change in,
the interpretation by any court, tribunal or regulatory authority with
competent jurisdiction of any applicable law after such date. it becomes
unlawful (other than as a result of a breach by the party of Section 4(b))
for such party (which will be the Affected Party):—

 

(1)           to perform any
absolute or contingent obligation to make a payment or delivery or to receive a
payment or delivery in respect of such Transaction or to comply with any other
material provision of this Agreement relating to such Transaction; or

 

(2)           to perform, or for
any Credit Support Provider of such party to perform, any contingent or other
obligation which the party (or such Credit Support Provider) has under any
Credit Support Document relating to such Transaction;

 

(ii)           Tax Event.  Due to (x) any
action taken by a taxing authority, or brought in a court of competent
jurisdiction, on or after the date on which a Transaction is entered into
(regardless of whether such action is taken or brought with respect to a party
to this Agreement) or (y) a Change in Tax Law, the party (which will be
the Affected Party) will, or there is a substantial likelihood that it will, on
the next succeeding Scheduled Payment Date (1) be required to pay to the
other party an additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except
in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive
a payment from which an amount is required to be deducted or withheld for or on
account of a Tax (except in respect of interest under Section 2(e), 6(d)(ii) or
6(e)) and no additional amount is required to be paid in respect of such Tax
under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or
(B));

 

(iii)          Tax Event Upon Merger. 
The party (the “Burdened Party”) on the next succeeding Scheduled
Payment Date will either (1) be required to pay an additional amount in
respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except in
respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive
a payment from which an amount has been deducted or withheld for or on account
of any Indemnifiable Tax in respect of which the other party is not required to
pay an additional amount (other than by reason of Section 2(d)(i)(4)(A) or
(B)), in either case as a result of a party consolidating or amalgamating with,
or merging with or into, or transferring all or substantially all its assets
to, another entity (which will be the Affected Party) where such action does
not constitute an event described in Section 5(a)(viii);

 

(iv)          Credit Event Upon Merger. 
If “Credit Event Upon Merger” is specified in the Schedule as applying
to the party, such party (“X”), any Credit Support Provider of X or any
applicable Specified Entity of X consolidates or amalgamates with, or merges
with or into, or transfers all or substantially all its assets to, another
entity and such action does not constitute an event described in Section 5(a)(viii) but
the creditworthiness of the resulting, surviving or transferee entity is
materially weaker than that of X, such Credit Support Provider or such
Specified Entity, as the case may be, immediately prior to such action (and, in
such event, X or its successor or transferee, as appropriate, will be the
Affected Party); or

 

(v)           Additional Termination Event.  If any “Additional Termination Event” is specified
in the Schedule or any Confirmation as applying. the occurrence of such event
(and, in such event. the Affected Party or Affected Parties shall be as
specified for such Additional Termination Event in the Schedule or such
Confirmation).

 

(c)          Event of Default and
Illegality.  If an event
or circumstance which would otherwise constitute or give rise to an Event of
Default also constitutes an Illegality, it will be treated as an Illegality and
will not constitute an Event of Default.

 

7

 

6.           Early Termination

 

(a)          Right to Terminate
Following Event of Default. 
If at any time an Event of Default with respect to a party (the “Defaulting
Party”) has occurred and is then continuing, the other party (the “Non-defaulting
Party”) may, by not more than 20 days notice to the Defaulting Party specifying
the relevant Event of Default, designate a day not earlier than the day such
notice is effective as an Early Termination Date in respect of all outstanding
Transactions. If, however, “Automatic Early Termination” is specified in the
Schedule as applying to a party, then an Early Termination Date in respect of
all outstanding Transactions will occur immediately upon the occurrence with
respect to such party of an Event of Default specified in Section 5(a)(vii)(l),
(3), (5), (6) or, to the extent analogous thereto, (8), and as of the time
immediately preceding the institution of the relevant proceeding or the
presentation of the relevant petition upon the occurrence with respect to such
party of an Event of Default specified in Section 5(a)(vii)(4) or, to
the extent analogous thereto, (8).

 

(b)          Right to Terminate
Following Termination Event.

 

(i)            Notice.  If a
Termination Event occurs, an Affected Party will, promptly upon becoming aware
of it, notify the other party, specifying the nature of that Termination Event
and each Affected Transaction and will also give such other information about
that Termination Event as the other party may reasonably require.

 

(ii)           Transfer to Avoid Termination Event.  If either an Illegality under Section 5(b)(i)(1) or
a Tax Event occurs and there is only one Affected Party, or if a Tax Event Upon
Merger occurs and the Burdened Party is the Affected Party, the Affected Party
will, as a condition to its right to designate an Early Termination Date under Section 6(b)(iv),
use all reasonable efforts (which will not require such party to incur a loss,
excluding immaterial, incidental expenses) to transfer within 20 days after it
gives notice under Section 6(b)(i) all its rights and obligations
under this Agreement in respect of the Affected Transactions to another of its
Offices or Affiliates so that such Termination Event ceases to exist.

 

If the Affected Party is not able to make such a transfer it will give
notice to the other party to that effect within such 20 day period, whereupon
the other party may effect such a transfer within 30 days after the notice is
given under Section 6(b)(i).

 

Any such transfer by a party under this Section 6(b)(ii) will
be subject to and conditional upon the prior written consent of the other
party, which consent will not be withheld if such other party’s policies in
effect at such time would permit it to enter into transactions with the
transferee on the terms proposed.

 

(iii)          Two Affected Parties. 
If an Illegality under Section 5(b)(i)(1) or a Tax Event
occurs and there are two Affected Parties, each party will use all reasonable
efforts to reach agreement within 30 days after notice thereof is given under Section 6(b)(i) on
action to avoid that Termination Event.

 

(iv)          Right to Terminate. 
If:—

 

(1)           a transfer under Section 6(b)(ii) or
an agreement under Section 6(b)(iii), as the case may be, has not been
effected with respect to all Affected Transactions within 30 days after an
Affected Party gives notice under Section 6(b)(i); or

 

(2)           an Illegality under Section 5(b)(i)(2),
a Credit Event Upon Merger or an Additional Termination Event occurs, or a Tax
Event Upon Merger occurs and the Burdened Party is not the Affected Party,

 

either party in the case of an Illegality, the Burdened Party in the
case of a Tax Event Upon Merger, any Affected Party in the case of a Tax Event
or an Additional Termination Event if there is more than one Affected Party, or the party which is not the
Affected Party in the case of a Credit Event Upon Merger or  an Additional Termination Event if there is only
one Affected Party may, by not more than 20 days notice to the other
party and provided that the relevant Termination Event is then

 

8

 

continuing, designate a day not earlier than the day such notice is
effective as an Early Termination Date in respect of all Affected Transactions.

 

(c)          Effect of Designation.

 

(i)            If
notice designating an Early Termination Date is given under Section 6(a) or
(b), the Early Termination Date will occur on the date so designated, whether
or not the relevant Event of Default or Termination Event is then continuing.

 

(ii)           Upon
the occurrence or effective designation of an Early Termination Date, no
further payments or deliveries under Section 2(a)(i) or 2(e) in
respect of the Terminated Transactions will be required to be made, but without
prejudice to the other provisions of this Agreement. The amount, if any, payable
in respect of an Early Termination Date shall be determined pursuant to Section 6(e).

 

(d)          Calculations.

 

(i)            Statement.  On or as
soon as reasonably practicable following the occurrence of an Early Termination
Date, each party will make the calculations on its part, if any, contemplated
by Section 6(e) and will provide to the other party a statement (1) showing,
in reasonable detail, such calculations (including all relevant quotations and
specifying any amount payable under Section 6(e)) and (2) giving
details of the relevant account to which any amount payable to it is to be
paid. In the absence of written confirmation from the source of a quotation
obtained in determining a Market Quotation, the records of the party obtaining
such quotation will be conclusive evidence of the existence and accuracy of
such quotation.

 

(ii)           Payment Date.  An
amount calculated as being due in respect of any Early Termination Date under Section 6(e) will
be payable on the day that notice of the amount payable is effective (in the
case of an Early Termination Date which is designated or occurs as a result of
an Event of Default) and on the day which is two Local Business Days after the
day on which notice of the amount payable is effective (in the case of an Early
Termination Date which is designated as a result of a Termination Event). Such
amount will be paid together with (to the extent permitted under applicable
law) interest thereon (before as well as after judgment) in the Termination
Currency, from (and including) the relevant Early Termination Date to (but
excluding) the date such amount is paid, at the Applicable Rate. Such interest
will be calculated on the basis of daily compounding and the actual number of
days elapsed.

 

(e)          Payments on Early
Termination.  If an Early
Termination Date occurs, the following provisions shall apply based on the
parties’ election in the Schedule of a payment measure, either “Market
Quotation” or “Loss”, and a payment method, either the “First Method” or the “Second
Method”.  If the parties fail to
designate a payment measure or payment method in the Schedule, it will be
deemed that “Market Quotation” or the “Second Method”, as the case may be,
shall apply.  The amount, if any, payable
in respect of an Early Termination Date and determined pursuant to this Section will
be subject to any Set-off.

 

(i)            Events of Default.  If
the Early Termination Date results from an Event of Default:—

 

(1)           First Method
and Market Quotation.  If the
First Method and Market Quotation apply, the Defaulting Party will pay to the
Non-defaulting Party the excess, if a positive number, of (A) the sum of
the Settlement Amount (determined by the Non-defaulting Party) in respect of
the Terminated Transactions and the Termination Currency Equivalent of the
Unpaid Amounts owing to the Non-defaulting Party over (B) the Termination
Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party.

 

(2)           First Method
and Loss.  If the First Method
and Loss apply, the Defaulting Party will pay to the Non-defaulting Party, if a
positive number, the Non-defaulting Party’s Loss in respect of this Agreement.

 

(3)           Second
Method and Market Quotation. 
If the Second Method and Market Quotation apply, an amount will be payable equal to (A) the sum of the
Settlement Amount (determined by the

 

9

 

Non-defaulting Party) in respect of the Terminated Transactions and the
Termination Currency Equivalent of the Unpaid Amounts owing to the
Non-defaulting Party less (B) the Termination Currency Equivalent of the
Unpaid Amounts owing to the Defaulting Party. If that amount is a positive
number, the Defaulting Party will pay it to the Non-defaulting Party; if it is
a negative number, the Non-defaulting Party will pay the absolute value of that
amount to the Defaulting Party.

 

(4)           Second
Method and Loss.  If the
Second Method and Loss apply, an amount will be payable equal to the
Non-defaulting Party’s Loss in respect of this Agreement. If that amount is a
positive number, the Defaulting Party will pay it to the Non-defaulting Party;
if it is a negative number, the Non-defaulting Party will pay the absolute
value of that amount to the Defaulting Party.

 

(ii)           Termination Events. 
If the Early Termination Date results from a Termination Event:—

 

(1)           One Affected
Party.  If there is one
Affected Party, the amount payable will be determined in accordance with Section 6(e)(i)(3),
if Market Quotation applies, or Section 6(e)(i)(4), if Loss applies,
except that, in either case, references to the Defaulting Party and to the
Non-defaulting Party will be deemed to be references to the Affected Party and
the party which is not the Affected Party, respectively, and, if Loss applies
and fewer than all the Transactions are being terminated, Loss shall be calculated
in respect of all Terminated Transactions.

 

(2)           Two Affected
Parties.  If there are two
Affected Parties:—

 

(A)          if Market Quotation
applies, each party will determine a Settlement Amount in respect of the
Terminated Transactions, and an amount will be payable equal to (I) the
sum of (a) one-half of the difference between the Settlement Amount of the
party with the higher Settlement Amount (“X”) and the Settlement Amount of the
party with the lower Settlement Amount (“Y”) and (b) the Termination
Currency Equivalent of the Unpaid Amounts owing to X less (II) the
Termination Currency Equivalent of the Unpaid Amounts owing to Y; and

 

(B)           if Loss applies,
each party will determine its Loss in respect of this Agreement (or, if fewer
than all the Transactions are being terminated, in respect of all Terminated
Transactions) and an amount will be payable equal to one-half of the difference
between the Loss of the party with the higher Loss (“X”) and the Loss of the
party with the lower Loss (“Y”).

 

If the amount payable is a positive number, Y will pay it to X; if it
is a negative number, X will pay the absolute value of that amount to Y.

 

(iii)          Adjustment for Bankruptcy. 
In circumstances where an Early Termination Date occurs because “Automatic
Early Termination” applies in respect of a party, the amount determined under
this Section 6(e) will be subject to such adjustments as are
appropriate and permitted by law to reflect any payments or deliveries made by
one party to the other under this Agreement (and retained by such other party)
during the period from the relevant Early Termination Date to the date for
payment determined under Section 6(d)(ii).

 

(iv)          Pre-Estimate.  The
parties agree that if Market Quotation applies an amount recoverable under this
Section 6(e) is a reasonable pre-estimate of loss and not a penalty.
Such amount is payable for the loss of bargain and the loss of protection
against future risks and except as otherwise provided in this Agreement neither
party will be entitled to recover any additional damages as a consequence of
such losses.

 

10

 

7.            Transfer

 

Subject to Section 6(b)(ii), neither this
Agreement nor any interest or obligation in or under this Agreement may be
transferred (whether by way of security or otherwise) by either party without
the prior written consent of the other party, except that:—

 

(a)           a
party may make such a transfer of this Agreement pursuant to a consolidation or
amalgamation with, or merger with or into, or transfer of all or substantially
all its assets to, another entity (but without prejudice to any other right or
remedy under this Agreement); and

 

(b)           a
party may make such a transfer of all or any part of its interest in any amount
payable to it from a Defaulting Party under Section 6(e).

 

Any purported transfer that is not in compliance with
this Section will be void.

 

8.            Contractual Currency

 

(a)           Payment in the Contractual Currency.  Each payment under this Agreement will be
made in the relevant currency specified in this Agreement for that payment (the
“Contractual Currency”). To the extent permitted by applicable law, any
obligation to make payments under this Agreement in the Contractual Currency
will not be discharged or satisfied by any tender in any currency other than
the Contractual Currency, except to the extent such tender results in the
actual receipt by the party to which payment is owed, acting in a reasonable
manner and in good faith in converting the currency so tendered into the
Contractual Currency, of the full amount in the Contractual Currency of all
amounts payable in respect of this Agreement. If for any reason the amount in
the Contractual Currency so received falls short of the amount in the
Contractual Currency payable in respect of this Agreement, the party required
to make the payment will, to the extent permitted by applicable law, immediately
pay such additional amount in the Contractual Currency as may be necessary to
compensate for the shortfall. If for any reason the amount in the Contractual
Currency so received exceeds the amount in the Contractual Currency payable in
respect of this Agreement, the party receiving the payment will refund promptly
the amount of such excess.

 

(b)           Judgments.  To the extent permitted by applicable law, if
any judgment or order expressed in a currency other than the Contractual
Currency is rendered (i) for the payment of any amount owing in respect of
this Agreement, (ii) for the payment of any amount relating to any early
termination in respect of this Agreement or (iii) in respect of a judgment
or order of another court for the payment of any amount described in (i) or
(ii) above, the party seeking recovery, after recovery in full of the
aggregate amount to which such party is entitled pursuant to the judgment or
order, will be entitled to receive immediately from the other party the amount
of any shortfall of the Contractual Currency received by such party as a
consequence of sums paid in such other currency and will refund promptly to the
other party any excess of the Contractual Currency received by such party as a
consequence of sums paid in such other currency if such shortfall or such
excess arises or results from any variation between the rate of exchange at
which the Contractual Currency is converted into the currency of the judgment
or order for the purposes of such judgment or order and the rate of exchange at
which such party is able, acting in a reasonable manner and in good faith in
converting the currency received into the Contractual Currency, to purchase the
Contractual Currency with the amount of the currency of the judgment or order
actually received by such party. The term “rate of exchange” includes, without
limitation, any premiums and costs of exchange payable in connection with the
purchase of or conversion into the Contractual Currency.

 

(c)           Separate Indemnities.  To the extent permitted by applicable law,
these indemnities constitute separate and independent obligations from the
other obligations in this Agreement, will be enforceable as separate and
independent causes of action, will apply notwithstanding any indulgence granted
by the party to which any payment is owed and will not be affected by judgment
being obtained or claim or proof being made for any other sums payable in
respect of this Agreement.

 

(d)           Evidence of Loss.  For the purpose of this Section 8, it
will be sufficient for a party to demonstrate that it would have suffered a
loss had an actual exchange or purchase been made.

 

11

 

9.           Miscellaneous

 

(a)          Entire Agreement.  This Agreement constitutes the entire
agreement and understanding of the parties with respect to its subject matter
and supersedes all oral communication and prior writings with respect thereto.

 

(b)          Amendments.  No amendment, modification or waiver in
respect of this Agreement will be effective unless in writing (including a
writing evidenced by a facsimile transmission) and executed by each of the
parties or confirmed by an exchange of telexes or electronic messages on an
electronic messaging system.

 

(c)          Survival of Obligations.  Without prejudice to Sections 2(a)(iii) and
6(c)(ii), the obligations of the parties under this Agreement will survive the
termination of any Transaction.

 

(d)          Remedies Cumulative.  Except as provided in this Agreement, the
rights, powers, remedies and privileges provided in this Agreement are
cumulative and not exclusive of any rights, powers, remedies and privileges
provided by law.

 

(e)          Counterparts and
Confirmations.

 

(i)            This
Agreement (and each amendment, modification and waiver in respect of it) may be
executed and delivered in counterparts (including by facsimile transmission),
each of which will be deemed an original.

 

(ii)           The
parties intend that they are legally bound by the terms of each Transaction
from the moment they agree to those terms (whether orally or otherwise). A
Confirmation shall be entered into as soon as practicable and may be executed
and delivered in counterparts (including by facsimile transmission) or be
created by an exchange of telexes or by an exchange of electronic messages on
an electronic messaging system, which in each case will be sufficient for all
purposes to evidence a binding supplement to this Agreement.  The parties will specify therein or through
another effective means that any such counterpart, telex or electronic message
constitutes a Confirmation.

 

(f)           No Waiver of Rights.  A failure or delay in exercising any right,
power or privilege in respect of this Agreement will not be presumed to operate
as a waiver, and a single or partial exercise of any right, power or privilege
will not be presumed to preclude any subsequent or further exercise, of that
right, power or privilege or the exercise of any other right, power or
privilege.

 

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

 

10.         Offices; Multibranch Parties

 

(a)          If Section 10(a) is
specified in the Schedule as applying, each party that enters into a
Transaction through an Office other than its head or home office represents to
the other party that, notwithstanding the place of booking office or
jurisdiction of incorporation or organisation of such party, the obligations of
such party are the same as if it had entered into the Transaction through its
head or home office.  This representation
will be deemed to be repeated by such party on each date on which a Transaction
is entered into.

 

(b)          Neither party may change the Office
through which it makes and receives payments or deliveries for the purpose of a
Transaction without the prior written consent of the other party.

 

(c)          If a party is specified as a
Multibranch Party in the Schedule, such Multibranch Party may make and receive
payments or deliveries under any Transaction through any Office listed in the
Schedule, and the Office through which it makes and receives payments or
deliveries with respect to a Transaction will be specified in the relevant
Confirmation.

 

11.         Expenses

 

A Defaulting Party will, on demand, indemnify and hold
harmless the other party for and against all reasonable out-of-pocket expenses,
including legal fees and Stamp Tax, incurred by such other party by reason of
the enforcement and protection of its rights under this Agreement or any Credit
Support Document

 

12

 

to which the Defaulting Party is a party or by reason
of the early termination of any Transaction, including, but not limited to,
costs of collection.

 

12.         Notices

 

(a)          Effectiveness. Any
notice or other communication in respect of this Agreement may be given in any
manner set forth below (except that a notice or other communication under Section 5
or 6 may not be given by facsimile transmission or electronic messaging system)
to the address or number or in accordance with the electronic messaging system
details provided (see the Schedule) and will be deemed effective as indicated:—

 

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

 

(ii)           if
sent by telex, on the date the recipient’s answerback is received;

 

(iii)          if
sent by facsimile transmission, on the date that transmission is received by a
responsible employee of the recipient in legible form (it being agreed that the
burden of proving receipt will be on the sender and will not be met by a
transmission report generated by the sender’s facsimile machine);

 

(iv)          if
sent by certified or registered mail (airmail, if overseas) or the equivalent
(return receipt requested), on the date that mail is delivered or its delivery
is attempted; or

 

(v)           if
sent by electronic messaging system, on the date that electronic message is
received,

 

unless the date of that delivery (or attempted
delivery) or that receipt as applicable, is not a Local Business Day or that
communication is delivered (or attempted) or received, as applicable, after the
close of business on a Local Business Day, in which case that communication
shall be deemed given and effective on the first following day that is a Local
Business Day.

 

(b)          Change of Addresses.
Either party may by notice to the other change the address, telex or facsimile
number or electronic messaging system details at which notices or other
communications are to be given to all

 

13.         Governing Law and Jurisdiction

 

(a)          Governing Law.
This Agreement will be governed by and construed in accordance with the law
specified in the Schedule.

 

(b)          Jurisdiction.
With respect to any suit, action or proceedings relating to this Agreement (“Proceedings”),
each party irrevocably:—

 

(i)            submits
to the jurisdiction of the English courts, if this Agreement is expressed to be
governed by English law, or to the non-exclusive jurisdiction of the courts of
the State of New York and the United States District Court located in the
Borough of Manhattan in New York City, if this Agreement is expressed to be
governed by the laws of the State of New York; and

 

(ii)           waives
any objection which it may have at any time to the laying of venue of any
Proceedings brought in any such court, waives any claim that such Proceedings
have been brought in an inconvenient forum and further waives the right to
object, with respect to such Proceedings, that such court does not have any
jurisdiction over such party.

 

Nothing in this Agreement precludes either party from
bringing Proceedings in any other jurisdiction (outside, if this Agreement is
expressed to be governed by English law, the Contracting States, as defined in Section 1(3) of
the Civil Jurisdiction and Judgments Act 1982 or any modification, extension or
re-enactment thereof for the time being in force) nor will the bringing of
Proceedings in any one or more jurisdictions preclude the bringing of
Proceedings in any other jurisdiction.

 

(c)          Service of Process.
Each party irrevocably appoints the Process Agent (if any) specified opposite
its name in the Schedule to receive, for it and on its behalf, service of
process in any Proceedings. If for any

 

13

 

reason any party’s Process Agent is unable to act as
such, such party will promptly notify the other party and within 30 days
appoint a substitute process agent acceptable to the other party. The parties
irrevocably consent to service of process given in the manner provided for
notices in Section 12. Nothing in this Agreement will affect the right of
either party to serve process in any other manner permitted by law.

 

(d)          Waiver of Immunities.
Each party irrevocably waives, to the fullest extent permitted by applicable
law, with respect to itself and its revenues and assets (irrespective of their
use or intended use), all immunity on the grounds of sovereignty or other
similar grounds from (i) suit, (ii) jurisdiction of any court, (iii) relief
by way of injunction, order for specific performance or for recovery of
property, (iv) attachment of its assets (whether before or after judgment)
and (v) execution or enforcement of any judgment to which it or its
revenues or assets might otherwise be entitled in any Proceedings in the courts
of any jurisdiction and irrevocably agrees, to the extent permitted by applicable
law, that it will not claim any such immunity in any Proceedings.

 

14.         Definitions

 

As used in this Agreement: —

 

“Additional Termination
Event” has the meaning specified in Section 5(b).

 

“Affected Party”
has the meaning specified in Section 5(b).

 

“Affected Transactions”
means (a) with respect to any Termination Event consisting of an
Illegality, Tax Event or Tax Event Upon Merger, all Transactions affected by
the occurrence of such Termination Event and (b) with respect to any other
Termination Event, all Transactions.

 

“Affiliate”
means, subject to the Schedule, in relation to any person, any entity
controlled, directly or indirectly, by the person, any entity that controls,
directly or indirectly, the person or any entity directly or indirectly under
common control with the person. For this purpose, “control” of any entity or
person means ownership of a majority of the voting power of the entity or
person.

 

“Applicable Rate”
means: —

 

(a)           in
respect of obligations payable or deliverable (or which would have been but for
Section 2(a)(iii)) by a Defaulting Party, the Default Rate;

 

(b)           in
respect of an obligation to pay an amount under Section 6(e) of
either party from and after the date (determined in accordance with Section 6(d)(ii))
on which that amount is payable, the Default Rate;

 

(c)           in
respect of all other obligations payable or deliverable (or which would have
been but for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default
Rate; and

 

(d)           in
all other cases, the Termination Rate.

 

“Burdened Party”
has the meaning specified in Section 5(b).

 

“Change in Tax Law”
means the enactment, promulgation, execution or ratification of, or any change
in or amendment to, any law (or in the application or official interpretation
of any law) that occurs on or after the date on which the relevant Transaction
is entered into.

 

“consent”
includes a consent, approval, action, authorisation, exemption, notice, filing,
registration or exchange control consent.

 

“Credit Event Upon Merger”
has the meaning specified in Section 5(b).

 

“Credit Support Document”
means any agreement or instrument that is specified as such in this Agreement.

 

“Credit Support Provider”
has the meaning specified in the Schedule.

 

“Default Rate”
means a rate per annum equal to the cost (without proof or evidence of any
actual cost) to the relevant payee (as certified by it) if it were to fund or
of funding the relevant amount plus 1% per annum.

 

14

 

“Defaulting Party”
has the meaning specified in Section 6(a).

 

“Early Termination Date”
means the date determined in accordance with Section 6(a) or
6(b)(iv).

 

“Event of Default”
has the meaning specified in Section 5(a) and, if applicable, in the
Schedule.

 

“Illegality” has
the meaning specified in Section 5(b).

 

“Indemnifiable Tax”
means any Tax other than a Tax that would not be imposed in respect of a
payment under this Agreement but for a present or former connection between the
jurisdiction of the government or taxation authority imposing such Tax and the
recipient of such payment or a person related to such recipient (including,
without limitation, a connection arising from such recipient or related person
being or having been a citizen or resident of such jurisdiction, or being or having
been organised, present or engaged in a trade or business in such jurisdiction,
or having or having had a permanent establishment or fixed place of business in
such jurisdiction, but excluding a connection arising solely from such
recipient or related person having executed, delivered, performed its
obligations or received a payment under, or enforced, this Agreement or a
Credit Support Document).

 

“law” includes
any treaty, law, rule or regulation (as modified, in the case of tax
matters, by the practice of any relevant governmental revenue authority) and “lawful”
and “unlawful” will be construed accordingly.

 

“Local Business Day”
means, subject to the Schedule, a day on which commercial banks are open for
business (including dealings in foreign exchange and foreign currency deposits)
(a) in relation to any obligation under Section 2(a)(i), in the place(s) specified
in the relevant Confirmation or, if not so specified, as otherwise agreed by
the parties in writing or determined pursuant to provisions contained, or
incorporated by reference, in this Agreement, (b) in relation to any other
payment, in the place where the relevant account is located and, if different.
in the principal financial centre, if any, of the currency of such payment, (c) in
relation to any notice or other communication, including notice contemplated
under Section 5(a)(i), in the city specified in the address for notice
provided by the recipient and, in the case of a notice contemplated by Section 2(b),
in the place where the relevant new account is to be located and (d) in
relation to Section 5(a)(v)(2), in the relevant locations for performance
with respect to such Specified Transaction.

 

“Loss” means,
with respect to this Agreement or one or more Terminated Transactions, as the
case may be, and a party, the Termination Currency Equivalent of an amount that
party reasonably determines in good faith to be its total losses and costs (or
gain, in which case expressed as a negative number) in connection with this
Agreement or that Terminated Transaction or group of Terminated Transactions,
as the case may be, including any loss of bargain, cost of funding or, at the
election of such party but without duplication, loss or cost incurred as a
result of its terminating, liquidating, obtaining or reestablishing any hedge
or related trading position (or any gain resulting from any of them). Loss
includes losses and costs (or gains) in respect of any payment or delivery
required to have been made (assuming satisfaction of each applicable condition
precedent) on or before the relevant Early Termination Date and not made,
except, so as to avoid duplication, if Section 6(c)(i)(1) or (3) or
6(e)(ii)(2)(A) applies. Loss does not include a party’s legal fees and
out-of-pocket expenses referred to under Section 11. A party will
determine its Loss as of the relevant Early Termination Date, or, if that is
not reasonably practicable, as of the earliest date thereafter as is reasonably
practicable. A party may (but need not) determine its Loss by reference to quotations
of relevant rates or prices from one or more leading dealers in the relevant
markets.

 

“Market
Quotation” means, with respect to
one or more Terminated Transactions and a party making the determination, an
amount determined on the basis of quotations from Reference Market-makers. Each
quotation will be for an amount, if any, that would be paid to such party
(expressed as a negative number) or by such party (expressed as a positive
number) in consideration of an agreement between such party (taking into
account any existing Credit Support Document with respect to the obligations of
such party) and the quoting Reference Market-maker to enter into a transaction
(the “Replacement Transaction”) that would have the effect of preserving for
such party the economic equivalent of any payment or delivery (whether the
underlying obligation was absolute or contingent and assuming the satisfaction
of each applicable condition precedent) by the parties under Section 2(a)(i) in
respect of such Terminated Transaction or group of Terminated Transactions that
would, but for the occurrence of the relevant Early Termination Date, have

 

15

 

been required after that date. For this purpose,
Unpaid Amounts in respect of the Terminated Transaction or group of Terminated
Transactions are to be excluded but, without limitation, any payment or
delivery that would, but for the relevant Early Termination Date, have been
required (assuming satisfaction of each applicable condition precedent) after
that Early Termination Date is to be included. The Replacement Transaction
would be subject to such documentation as such party and the Reference
Market-maker may, in good faith, agree. The party making the determination (or
its agent) will request each Reference Market-maker to provide its quotation to
the extent reasonably practicable as of the same day and time (without regard
to different time zones) on or as soon as reasonably practicable after the
relevant Early Termination Date. The day and time as of which those quotations
are to be obtained will be selected in good faith by the party obliged to make
a determination under Section 6(e), and, if each party is so obliged,
after consultation with the other. If more than three quotations are provided,
the Market Quotation will be the arithmetic mean of the quotations, without
regard to the quotations having the highest and lowest values, If exactly three
such quotations are provided, the Market Quotation will be the quotation
remaining after disregarding the highest and lowest quotations. For this
purpose, if more than one quotation has the same highest value or lowest value,
then one of such quotations shall be disregarded. If fewer than three
quotations are provided, it will be deemed that the Market Quotation in respect
of such Terminated Transaction or group of Terminated Transactions cannot be
determined.

 

“Non-default Rate”
means a rate per annum equal to the cost (without proof or evidence of any
actual cost) to the Non-defaulting Party (as certified by it) if it were to
fund the relevant amount.

 

“Non-defaulting Party”
has the meaning specified in Section 6(a).

 

“Office” means a
branch or office of a party, which may be such party’s head or home office.

 

“Potential Event of Default”
means any event which, with the giving of notice or the lapse of time or both,
would constitute an Event of Default.

 

“Reference Market-makers”
means four leading dealers in the relevant market selected by the party
determining a Market Quotation in good faith (a) from among dealers of the
highest credit standing which satisfy all the criteria that such party applies
generally at the time in deciding whether to offer or to make an extension of
credit and (b) to the extent practicable, from among such dealers having
an office in the same city.

 

“Relevant Jurisdiction”
means, with respect to a party, the jurisdictions (a) in which the party
is incorporated, organised, managed and controlled or considered to have its
seat, (b) where an Office through which the party is acting for purposes
of this Agreement is located, (c) in which the party executes this
Agreement and (d) in relation to any payment, from or through which such
payment is made.

 

“Scheduled Payment Date”
means a date on which a payment or delivery is to be made under Section 2(a)(i) with
respect to a Transaction.

 

“Set-off”  means set-off, offset, combination of accounts, right of
retention or withholding or similar right or requirement to which the payer of
an amount under Section 6 is entitled or subject (whether arising under
this Agreement, another contract, applicable law or otherwise) that is
exercised by, or imposed on, such payer.

 

“Settlement Amount”
means, with respect to a party and any Early Termination Date, the sum of.-

 

(a)           the
Termination Currency Equivalent of the Market Quotations (whether positive or
negative) for each Terminated Transaction or group of Terminated Transactions
for which a Market Quotation is determined; and

 

(b)           such
party’s Loss (whether positive or negative and without reference to any Unpaid
Amounts) for each Terminated Transaction or group of Terminated Transactions
for which a Market Quotation cannot be determined or would not (in the
reasonable belief of the party making the determination) produce a commercially
reasonable result.

 

“Specified Entity”
has the meaning specified in the Schedule.

 

16

 

“Specified Indebtedness”
means, subject to the Schedule, any obligation (whether present or future,
contingent or otherwise, as principal or surety or otherwise) in respect of
borrowed money.

 

“Specified Transaction”
means, subject to the Schedule, (a) any transaction (including an
agreement with respect thereto) now existing or hereafter entered into between
one party to this Agreement (or any Credit Support Provider of such party or
any applicable Specified Entity of such party) and the other party to this
Agreement (or any Credit Support Provider of such other party or any applicable
Specified Entity of such other party) which is a rate swap transaction, basis
swap, forward rate transaction, commodity swap, commodity option, equity or
equity index swap, equity or equity index option, bond option, interest rate
option, foreign exchange transaction, cap transaction, floor transaction,
collar transaction, currency swap transaction, cross-currency rate swap
transaction, currency option or any other similar transaction (including any
option with respect to any of these transactions), (b) any combination of
these transactions and (c) any other transaction identified as a Specified
Transaction in this Agreement or the relevant confirmation.

 

“Stamp Tax”
means any stamp, registration, documentation or similar tax.

 

“Tax” means any
present or future tax, levy, impost, duty, charge, assessment or fee of any
nature (including interest, penalties and additions thereto) that is imposed by
any government or other taxing authority in respect of any payment under this
Agreement other than a stamp, registration, documentation or similar tax.

 

“Tax Event” has
the meaning specified in Section 5(b).

 

“Tax Event Upon Merger”
has the meaning specified in Section 5(b).

 

“Terminated Transactions”
means with respect to any Early Termination Date (a) if resulting from a
Termination Event, all Affected Transactions and (b) if resulting from an
Event of Default, all Transactions (in either case) in effect immediately
before the effectiveness of the notice designating that Early Termination Date
(or, if “Automatic Early Termination” applies, immediately before that Early
Termination Date).

 

“Termination Currency”
has the meaning specified in the Schedule.

 

“Termination Currency
Equivalent” means, in respect of any amount denominated in the
Termination Currency, such Termination Currency amount and, in respect of any
amount denominated in a currency other than the Termination Currency (the “Other
Currency”), the amount in the Termination Currency determined by the party
making the relevant determination as being required to purchase such amount of
such Other Currency as at the relevant Early Termination Date, or, if the
relevant Market Quotation or Loss (as the case may be), is determined as of a
later date, that later date, with the Termination Currency at the rate equal to
the spot exchange rate of the foreign exchange agent (selected as provided
below) for the purchase of such Other Currency with the Termination Currency at
or about 11:00 a.m. (in the city in which such foreign exchange agent is
located) on such date as would be customary for the determination of such a
rate for the purchase of such Other Currency for value on the relevant Early
Termination Date or that later date. The foreign exchange agent will, if only
one party is obliged to make a determination under Section 6(e), be
selected in good faith by that party and otherwise will be agreed by the
parties

 

“Termination Event”
means an Illegality, a Tax Event or a Tax Event Upon Merger or, if specified to
be applicable, a Credit Event Upon Merger or an Additional Termination Event.

 

“Termination Rate”
means a rate per annum equal to the arithmetic mean of the cost (without proof
or evidence of any actual cost) to each party (as certified by such party) if
it were to fund or of funding such amounts.

 

“Unpaid
Amounts” owing to any party means,
with respect to an Early Termination Date, the aggregate of (a) in respect
of all Terminated Transactions, the amounts that became payable (or that would
have become payable but for Section 2(a)(iii)) to such party under Section 2(a)(i) on
or prior to such Early Termination Date and which remain unpaid as at such
Early Termination Date and (b) in respect of each Terminated Transaction.
for each obligation under Section 2(a)(i) which was (or would have
been but for Section 2(a)(iii)) required to be settled by delivery to such
party on or prior to such Early Termination Date and which has not been so
settled as at such Early Termination Date, an amount equal to the fair market

 

17

 

value of that which was (or would have been) required
to be delivered as of the originally scheduled date for delivery, in each case
together with (to the extent permitted under applicable law) interest, in the
currency of such amounts, from (and including) the date such amounts or
obligations were or would have been required to have been paid or performed to
(but excluding) such Early Termination Date, at the Applicable Rate. Such
amounts of interest will be calculated on the basis of daily compounding and
the actual number of days elapsed. The fair market value of any obligation
referred to in clause (b) above shall be reasonably determined by the
party obliged to make the determination under Section 6(e) or, if
each party is so obliged, it shall be the average of the Termination Currency
Equivalents of the fair market values reasonably determined by both parties.

 

IN WITNESS WHEREOF the parties have executed this
document on the respective dates specified below with effect from the date
specified on the first page of this document.

 

 

	
   

  	
  CITIGROUP ENERGY INC.

  	
   

  	
   

  	
  NOBLE ENVIRONMENTAL POWER

  
	
   

  	
   

  	
   

  	
   

  	
  2008 HOLD CO, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Victoria T. Sharp

  	
   

  	
  By:

  	
  /s/ Walter Howard

  
	
   

  	
   

  	
  Name:

  	
  Victoria T. Sharp

  	
   

  	
   

  	
  Name:

  	
  Walter Howard

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  	
   

  	
   

  	
  Title:

  	
  President

  

 

18

 

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.

 

Schedule

to the

1992 ISDA Master
Agreement

 

dated as of June 30, 2008 (the “Execution
Date”)

 

This Schedule to the 1992 ISDA Master Agreement is being executed and
is effective and binding on June 27, 2008, but is dated as of June 30,
2008, for cross reference purposes in other documents and agreements that
contemplate the date hereof being June 30, 2008.

 

between

 

	
  Citigroup
  Energy Inc.,

   

  a
  corporation organized under the laws of the State of Delaware

   

  (“Party
  A”)

  	
   

  	
  and

  	
   

  	
  Noble
  Environmental Power 2008 Hold Co., LLC

   

  a
  limited liability company organized under the laws of the State of Delaware

   

  (“Party
  B”)

  

 

Part 1

Termination Provisions

 

(a)   Specified Entity.  “Specified Entity” means in relation to Party
A for the purpose of:

 

	
  Section 5(a)(v):           Citigroup
  Global Markets Limited, Citigroup Global Markets Inc., Citigroup Forex Inc.,
  Citigroup Global Markets Commercial Corp., Citicorp Securities
  Services, Inc., Citigroup Global Markets Deutschland AG & Co.
  KGaA, Citigroup Financial Products Inc., Citigroup Energy Canada ULC,
  Citibank Japan Ltd. and Citibank, N.A.

  
	
  Section 5(a)(vi):

  	
  Not
  Applicable

  
	
  Section 5(a)(vii):

  	
  Not
  Applicable

  
	
  Section 5(b)(iv):

  	
  Not
  Applicable

  

 

in
relation to Party B for the purpose of:

 

	
  Section 5(a)(v):

  	
  Not
  Applicable

  
	
  Section 5(a)(vi):

  	
  Not
  Applicable

  
	
  Section 5(a)(vii):

  	
  Not
  Applicable

  
	
  Section 5(b)(iv):

  	
  Not
  Applicable

  

 

1

 

(b)   Specified Transaction.  Specified Transaction will have the meaning
specified in Section 14 of this Agreement, except that such term is
amended on line 8 after the words “currency option” by adding a comma and the
words “agreement for the purchase, sale or transfer of any commodity or any
other commodity trading transaction.” 
For this purpose, “commodity” means any tangible or intangible commodity
of any type or description, including, without limitation, electricity, natural
gas, petroleum, coal, emissions allowances, the products and by-products
thereof, and weather derivatives.

 

(c)   Cross Default.  The “Cross Default” provision (Section 5(a)(vi)),
will apply to Party A and Party B; provided that (i) the
phrase “or becoming capable at such time of being declared” shall be deleted
from clause (1) of such Section 5(a)(vi) and (ii) the
following shall be added at the end of such Section 5(a)(vi): “provided that notwithstanding anything to the contrary
contained in this Section 5(a)(vi) with respect to Party B, an Event
of Default under this Section 5(a)(vi) with respect to the Financing
Agreement shall not be deemed to exist or have occurred in respect of Party B
if (w) the Forbearance Agreement is in effect, (x) a Forbearance
Default has not occurred under the Forbearance Agreement and (y) the only
remedies, if any, exercised in connection with any event of default under the
Financing Documents are limited to those contemplated under Section 1.03
of the Forbearance Agreement as in effect on the Closing Date.”

 

“Specified Indebtedness” will have the
meaning specified in Section 14 of the Agreement.

 

“Threshold Amount” means:

 

(i)            with respect to Party A, 2% of the
stockholders’ equity of Party A’s Credit Support Provider; and

 

(ii)           with respect to Party B, $***; and

 

Threshold Amount includes the U.S. Dollar equivalent
on the date of any default, event of default or other similar condition or
event of any obligation stated in any other currency.

 

(d)   Additional Event of Default.  Section 5(a) is further amended by
adding the following additional Event of Default, which shall apply with
respect to Party B only, with Party B being deemed the Defaulting Party upon
the occurrence of one or more of the following events and the failure to cure
within the applicable cure period:

 

“(ix)         Failure of Security Interest.  The occurrence of any event or
circumstance that results in (i) during the period from (and including)
the Closing Date to (and including) the Designated Confirmation Termination
Date, Party A’s security interest in and lien on the Collateral failing or
ceasing to be a second priority security interest and lien thereon, subject
only to Permitted Liens; (ii) during the period from (and including) the
Term-Conversion Date to (and including) the Designated Confirmation Termination
Date, (A) Party A’s security interest and lien on the Collateral failing
or ceasing to be a first priority security interest and lien thereon in respect
of the Energy Hedge Provider First Lien Obligations, subject only to Permitted
Liens, or (B) the Energy Hedge Provider First Lien Obligations ceasing to
be secured equally and ratably, or be ranked in right of payment and upon
liquidation on a pari passu basis, with Party B’s
obligations to the Lenders under the Financing Agreement; or (iii) any of
the Intercreditor Agreement, the Collateral Documents or the Energy Hedge
Guarantees, once executed and delivered, ceasing to be in full force and
effect, or the validity thereof or the applicability thereof to this Agreement
or any other obligations to Party A purported to be secured or guaranteed

 

2

 

thereby
or any part thereof being disaffirmed (in writing, if disaffirmed by any Person
other than Party B or any of its Affiliates), in each case, except to the
extent arising as a result of the acts or omissions of Party A, except to the
extent that such event or circumstance has been cured within *** (***) Local
Business Days of Party B’s obtaining knowledge thereof and except as may be
permitted under the Intercreditor Agreement.

 

(e)   Posting Additional Credit
Support to Forestall Certain Events of Default and Additional Termination
Events.  Party A and Party B agree
that no Event of Default shall occur with respect to Party B under Section 5(a)(ii),
(iv), (vi) or (ix) of the Agreement (each, a “Specified
Event of Default”) above, and no Additional Termination Event
shall occur with respect to Party B under Section 5(b)(viii) of this
Agreement (a “Specified Additional Termination Event”)
below, if Party B or its designee from
time to time at the request of Party A Transfers Eligible Credit Support
in an amount equal to Party A’s Exposure (“Additional Collateral”)
to Party A within five (5) Local
Business Days after each request following an Additional Collateral Trigger
Date.  Such Additional Collateral will be
maintained by Party A as Posted Credit Support in accordance with the Credit
Support Annex. Within one (1) Local Business Day following the
corresponding Additional Collateral Release Date, Party A shall Transfer such
Additional Collateral to Party B in accordance with the Credit Support Annex.

 

(f)    Additional Amendments to Representations and Events of Default.

 

(i)    Section 3(a)(iii) of the Agreement shall
be amended by inserting the following phrase at the end thereof, before the
semicolon:  “, in each case (with respect
to matters other than constitutional
documents), except as could not be reasonably expected to have a
material adverse effect on its ability to perform its obligations hereunder.”

 

(ii)   Section 3(b) of the Agreement shall be
amended by inserting the following phrase at the end thereof, before the
period:  “, in each case, except as could
not be reasonably expected to have a material adverse effect on its ability to
perform its obligations hereunder.”

 

(iii)  Section 3(c) of the Agreement shall be
amended by inserting the following phrase at the end thereof, before the
period:  “, in each case, which if
adversely determined could be reasonably expected to have a material adverse
effect on its ability to perform its obligations hereunder.”

 

(iv)  Section 5(a)(iv) of the Agreement shall be
amended by inserting the following phrase at the end thereof, before the
semicolon:  “provided, however, that if
any such incorrect representation is capable of being remedied or cured, it may
remedy such incorrect representation by curing the adverse effects of such
misstatement, within thirty (30) days of obtaining knowledge of such
incorrectness.”

 

(g)   Automatic Early Termination.  The “Automatic Early
Termination” provisions of Section 6(a) of this Agreement will not
apply to Party A and will not apply to Party B.

 

(h)   Payments on Early Termination.  For the purpose of Section 6(e),
Loss and the Second Method will apply.

 

(i)    Termination Currency.  “Termination Currency” means United States
Dollars.

 

(j)    Additional Termination Event.  Additional Termination Event
will apply. Section 5(b) of the Agreement is modified by adding at
the end thereof the following new subsections (vi), (vii) and (viii):

 

3

 

(vi)          The
Closing Date shall not have occurred on or prior to November 1, 2008, in
which case (I) Party B shall be the sole Affected Party and (II) all
Transactions shall be Affected Transactions.

 

(vii)         Party B fails to provide to Party A on the Closing Date, the
Intercreditor Agreement, the Collateral Documents and the Energy Hedge
Guarantees, in each case, executed and delivered by all parties thereto and
with conditions to its effectiveness having been satisfied, in which case (I) Party
B shall be the sole Affected Party and (II) all Transactions shall be
Affected Transactions.

 

(viii)        COD
with respect to any of the Projects (as defined in the Financing Agreement as in effect on the Closing Date)
shall not have occurred by the COD Deadline, in which case (I) Party B
shall be the sole Affected Party and (II) all Transactions shall be
Affected Transactions, unless before the COD Deadline:

 

(a)(1) Party
B designates such Project to be removed from the Financing Documents and this
Agreement, (2) the Financing Documents, Collateral Documents and Project
Documents have been amended on terms and conditions reasonably satisfactory to
Party A to remove such Project and as amended no event of default exists
thereunder, and (3) Party B has agreed to amend this Agreement, including
the Designated Confirmation, as proposed by Party A in its reasonable
discretion such that:

 

(x)            the portion of the
Transaction set forth in the Designated Confirmation attributable to such
Project is removed but leaving the portion of the Transaction set forth in the
Designated Confirmation applicable to the remaining Project(s) in effect;

 

(y)           notwithstanding any
other provision of this Agreement, only that portion of the Transaction set
forth in the Designated Confirmation attributable to such Project shall be an
Affected Transaction and (i) an Early Termination Date has been declared
with respect to the Affected Transaction, and (ii) any amount payable in
respect of the Terminated Transaction has been paid in accordance with the
provisions of Section 6 of the Agreement; and

 

(z)            the Initial LC or cash
in the Initial LC Amount, as the case may be, shall be reduced proportionately
based on the notional volume of production associated with each Project set
forth on Schedule 2 hereto; or

 

(b)(1) 
Party B designates such Project to be assigned from being financed and hedged
under the Financing Documents and this Agreement to being financed and hedged
under a parallel transaction, which parallel transaction is based on the terms
and conditions of this Agreement, the Financing Documents, the Collateral
Documents and the Project Documents, maintains for the assigned Project the
general financing, hedging and project structures set forth in such agreements
and documents and is on terms and conditions set forth below and otherwise on
terms and conditions reasonably satisfactory to Party A (the “Parallel Transaction”), (2) the
Financing Documents, Collateral Documents and Project Documents have been
amended on terms and conditions reasonably satisfactory to Party A to provide
for the assignment of such Project and as amended no event of default exists
thereunder, and (3) Party B has agreed to amend this Agreement, including
the Designated Confirmation, to accommodate the assignment of a portion thereof
to be part

 

4

 

of the
Parallel Transaction, with both this Agreement and the assigned portion to be
under documentation proposed by Party A in its reasonable discretion (such
documentation for the Parallel Transaction being the “Parallel
Hedge”), including that:

 

(x)            in addition to the
Liens provided under the Collateral Documents and under the Parallel
Transaction and the division of the Initial LC or cash in the Initial LC
Amount, as the case may be, between this Agreement and the Parallel Hedge,
Party B shall provide any additional Eligible Credit Support requested by Party
A for this Agreement and the Parallel Hedge as Party A determines is reasonably
necessary in order to provide it with a comparable level of coverage in respect
of its credit exposures, as it had immediately prior to giving effect to such
Parallel Transaction, as determined by Party A. 
In connection therewith, Party A shall not request additional Eligible
Credit Support solely to cover increased exposure resulting from market changes
since the date of this Agreement, but Party A may request Eligible Credit
Support if the removal of such Project makes such Project or the remaining
Projects weaker from a credit standpoint than the aggregated Projects as a
whole; and

 

(y)           this Agreement and the
Parallel Hedge shall have such customary cross default, netting and setoff
provisions as may be requested by Party A.

 

	
  (k)

  	
  Certain
  Restrictions on Rights and Remedies. The rights of Party A to terminate and exercise remedies under this
  Agreement are subject to certain restrictions in the Energy Hedge Provider
  Forbearance Agreement, the Consent to Assignment and the Intercreditor
  Agreement.

  

 

Part 2

Tax Representations

 

(a)   Payer Tax Representations.  For the purpose of Section 3(e),
Party A and Party B each makes the following representation:

 

It is not required by any
applicable law, as modified by the practice of any relevant governmental
revenue authority, of any Relevant Jurisdiction to make any deduction or
withholding for or on account of any Tax from any payment (other than interest
under Section 2(e), 6(d)(ii) or 6(e)) to be made by it to the other
party under this Agreement.  In making
this representation, it may rely on:

 

(i)    The accuracy of any representation made by the other party pursuant to Section 3(f);

 

(ii)   The satisfaction of the agreement of the other party contained in Section 4(a)(i) or
4(a)(iii) and the accuracy and effectiveness of any document provided by
the other party pursuant to Section 4(a)(i) or 4(a)(iii); and

 

(iii)  The satisfaction of the agreement of the other party contained in Section 4(d);

 

provided that
it shall not be a breach of this representation where reliance is placed on
clause (ii), and the other party does not deliver a form or document under Section 4(a)(iii) by
reason of material prejudice to its legal or commercial position.

 

(b)   Payee Tax Representations.  For the purpose of Section 3(f),
Party A and Party B make the representations specified below, if any:

 

(i)    The following representation will apply to Party A:

 

5

 

It is a corporation organized under the laws
of the State of Delaware and its U.S. taxpayer identification number is
27-0069674.  It is “exempt” within the
meaning of Treasury Regulation sections 1.6041-3(p) and 1.6049-4(c) from
information reporting on Form 1099 and backup withholding.

 

(ii)   The following representation
will apply to Party B:

 

It is a limited liability company created or
organized in the United States or under the laws of the United States and its
U.S. taxpayer identification number is 26-0283832.

 

Part 3

Agreement to
Deliver Documents

 

Each
party agrees to deliver the following documents as applicable:

 

(a)   For the purpose of Section 4(a)(i), tax forms, documents or
certificates to be delivered are:

 

	
  Party required to

  deliver document

  	
   

  	
  Form/Document/Certificate

  	
   

  	
  Date by which

  to be delivered

  
	
  Party A &
  Party B

  	
   

  	
  As required under
  Section 4(a)(iii) of this Agreement, IRS Form W-9, IRS
  Form W-8BEN, IRS Form W-8ECI, IRS Form W-8EXP and/or IRS
  Form W-8IMY, whichever is relevant.

  	
   

  	
  (i) Promptly
  upon execution of this Agreement and (ii) promptly upon learning that any such form
  previously provided by such party has become obsolete, incorrect, or
  ineffective

  

 

(b)   For the purpose of Section 4(a)(ii), other documents to be
delivered are:

 

	
   

  	
   

  	
  Party required to

  deliver document

  	
   

  	
  Form/Document/Certificate

  	
   

  	
  Date by which

  to be delivered

  	
   

  	
  Covered by

  Section 3(d)

  Representation

  
	
  (1)

  	
   

  	
  Party
  A &  Party B

  	
   

  	
  Evidence
  reasonably satisfactory to the other party as to the names, true signatures
  and authority of the officers or officials (a) signing this Agreement on
  its behalf, and (b) signing the respective Credit Support Documents
  referred to in Part 4(g) of this Schedule.

  	
   

  	
  Upon
  execution of this Agreement and, if requested, upon execution of any
  Confirmation.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  Party
  B

  	
   

  	
  Any
  financial statements required to be

  	
   

  	
  As
  and when

  	
   

  	
  Yes

  

 

6

 

	
   

  	
   

  	
   

  	
   

  	
  delivered
  to the Lenders under the Financing Agreement.

  	
   

  	
  required
  to be delivered to Lenders under the Financing Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  Party
  A

  	
   

  	
  A
  copy of the audited annual report of the Credit Support Provider for Party A.

  	
   

  	
  Upon
  request, as soon as publicly available after the end of each of its,
  or its Credit Support Provider, as applicable, fiscal quarters if such
  financial statement is not available on “EDGAR” or a party’s, or its Credit
  Support Provider’s, home page on the World Wide Web at www.citigroup.com
  for Party A.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  Party
  A

  	
   

  	
  A
  duly signed copy of its Credit Support Documents referred to in
  Part 4(g) of this Schedule.

  	
   

  	
  Upon
  execution of this Agreement.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (5)

  	
   

  	
  Party
  A & Party B

  	
   

  	
  A
  duly signed copy of the Credit Support Annex.

  	
   

  	
  Upon
  the execution of this Agreement.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (6)

  	
   

  	
  Party
  A & Party B

  	
   

  	
  Certified
  resolutions evidencing necessary corporate authority and approvals with
  respect to the execution, delivery and performance by Party A and Party B of
  this Agreement.

  	
   

  	
  Upon
  execution of this Agreement.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (7)

  	
   

  	
  Party
  A & Party B

  	
   

  	
  Certified
  resolutions evidencing necessary corporate authority and approvals with
  respect to the execution, delivery and performance by the Credit Support
  Provider of any applicable Credit Support Document.

  	
   

  	
  Upon
  execution of this Agreement.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (8)

  	
   

  	
  Party
  B

  	
   

  	
  Executed
  copies of (i) the Intercreditor Agreement, (ii) the Collateral
  Documents, and (iii) the Energy Hedge

  	
   

  	
  Upon
  the Closing Date.

  	
   

  	
  Yes

  

 

7

 

	
   

  	
   

  	
   

  	
   

  	
  Guarantees.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (9)

  	
   

  	
  Party
  B

  	
   

  	
  Executed
  copies of the Financing Documents (other than Collateral Documents), the
  Energy Hedge Provider Forbearance Agreement, and the Forbearance Agreement.

  	
   

  	
  Upon
  the Closing Date

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (10)

  	
   

  	
  Party
  B

  	
   

  	
  The
  Initial LC or cash in the Initial LC Amount

  	
   

  	
  Upon
  the Closing Date

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (11)

  	
   

  	
  Party
  B

  	
   

  	
  An
  opinion of counsel to Party B in form and substance satisfactory to Party A;
  it being acknowledged and agreed that a legal opinion in form and substance
  similar to that delivered to the Lenders under the Financing Agreement will
  be satisfactory to Party A.

  	
   

  	
  Upon
  the Closing Date

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (12)

  	
   

  	
  Party
  A and Party B

  	
   

  	
  Executed
  copies of the Consent to Assignment.

  	
   

  	
  Upon
  the Closing Date

  	
   

  	
  No

  

 

Notwithstanding the foregoing, Citigroup Inc. financials are “deemed”
to be delivered hereunder on the date the same shall be posted on the
Securities and Exchange Commission website (www.sec.gov).

 

Part 4

Miscellaneous

 

(a)   Addresses for Notices.  For the purpose of Section 12(a):

 

Notwithstanding Section 12(a) of
the Agreement all notices including those to be given under Section 5 or 6
may be given by facsimile transmission or electronic messaging system
(excluding e-mail).

 

(i)            Party
A:

 

Address for notices or
communications to Party A:

 

Citigroup Energy Inc.

2800 Post Oak Blvd., Suite 500

Houston, Texas  77056

Attention:
         Legal Department

Facsimile
No.:(713) 752-5244

 

8

 

(For all purposes)

 

In addition, in the case of notices or
communications relating to Section 5, 6, 11 or 13 of this Agreement, a
second copy of any such notice or communication shall be addressed to the
attention of Party A’s legal department as follows:

 

Legal Department

388 Greenwich Street

17th Floor

New York, New York 10013

Attention:          Senior
Deputy General

Facsimile
No.:  (212) 816-5550

 

(ii)           Party B

 

Address
for notices or communications to Party B:

 

Noble Environmental Power 2008 Hold Co., LLC

8 Railroad Avenue

Suite 8, Second Floor

Essex, CT 06426

 

Attention:  Thomas Swank and
Sidney Chang

Telephone:  +1 (860) 581-5010 /
(860) 581-5060

Facsimile:  +1 (860) 767-7198

 

(For all purposes.)

 

In addition to the notices described herein,
Party A shall provide certain notices in respect of the provisions of the
following related agreements, a copy of which notices shall in each case be
provided to Party B (if party B is not already a recipient of such notice):

 

	
  Event Requiring

  Notice

  	
   

  	
  Notice Required and Related Agreement

  
	
  Events of Default and/or Termination Events

  	
   

  	
  Part 6(b)(i) of the Master Agreement: If a Termination Event
  occurs, and Party A is the Affected Party, Party A shall notify Party B of
  each such Termination Event.

   

  Section 5.7 of the
  Intercreditor Agreement: Party A shall give the First Lien Collateral
  Agent (as defined therein) prompt written notice on the occurrence of
  (i) any Event of Default or Termination with Party B as the Defaulting
  Party or the Affected Party and (ii) the acceleration of the obligations
  of Party B under this Agreement (if it is at the time a First Lien Document,
  as defined in the Intercreditor Agreement).

   

  Section 5 of
  Consent to Assignment of Energy Hedge Agreement (among Party A, Party B and
  Citibank, N.A.): Party A shall promptly notify Assignee (as defined
  therein) of any Event of

  

 

9

 

	
   

  	
   

  	
  Default or Termination
  with Party B as the Defaulting Party or the Affected Party, and
  simultaneously deliver to such Assignee any notices regarding same under this
  Agreement or otherwise.

   

  Section 2.3.1 of
  Energy Hedge Provider Control Agreement (among Party A, Party B and the Bank
  of New York): Party A, as Second Lien Creditor, must promptly
  deliver notice to Depositary (as defined therein) upon the cure of an Event
  of Default (as defined therein).

  
	
   

  	
   

  	
   

  
	
  Receipt of Collateral Proceeds

  	
   

  	
  Section 4.3(b) of
  the Intercreditor Agreement: Upon receipt of monies
  pursuant to Section 4.1 of the Intercreditor Agreement, Party A as
  Second Lien Collateral Holder must provide notice to each Secured Debt
  Representative (as defined therein) of the receipt of such monies and provide
  the First Lien Collateral Agent (as defined therein) written certification of
  the aggregate amount owed by Party B.

  
	
   

  	
   

  	
   

  
	
  Sale of Collateral

  	
   

  	
  Section 7.3(a) of
  the Second Lien Security Agreement (among Party A, Party B, and certain of
  Party B’s subsidiaries): Party A must provide ten
  (10) banking days’ notice to the applicable Grantor (as defined therein)
  of the time and place of any public sale of or the time after which any private
  sale is to be made of Collateral (as defined therein).

   

  Section 7.4(a) of
  Second Lien Pledge Agreement (among Party A and Party B): Party A
  must provide ten (10) banking days’ notice to Party B, as Pledgor, of
  the time and place of any public sale of or the time after which any private
  sale is to be made of Collateral (as defined therein).

   

  Section 7.4(a) of
  Second Lien Pledge Agreement (among Party A and Noble Environmental Power
  2008 Hold Co. Prime is a signatory): Party A must provide ten
  (10) banking days’ notice to Pledgor (as defined therein) of the time
  and place of any public sale of or the time after which any private sale is
  to be made of Collateral (as defined therein).

  

 

(iii)          Administrative
Agent

 

Address
for notices or communications to the Administrative Agent:

 

As provided in the Financing Agreement as of the date of this Agreement
or to any successor address provided by the Administrative Agent.

 

(For receipt of notice of Termination Events and Events of Default as
to which Party B is the Affected Party or Defaulting Party, as applicable.)

 

10

 

(b)   Effectiveness of Notice. 
Section 12(a) is hereby amended by deleting the words
“facsimile transmission or” in line 3 thereof.

 

(c)   Process Agent.  For
the purpose of Section 13(c) of this Agreement:

 

Party
A appoints as its Process Agent:  None.

 

Party
B appoints as its Process Agent:  None.

 

(d)   Offices.  The
provisions of Section 10(a) will apply to this Agreement.

 

(e)   Multibranch Party. For the purpose of Section 10(c):

 

Party
A is not a Multibranch Party.

 

Party
B is not a Multibranch Party.

 

(f)            Calculation Agent for Commodity
Transactions.  The Calculation Agent is Party A unless
otherwise specified in a Confirmation in relation to the relevant Transaction.
The Calculation Agent shall act in good faith and in a commercially reasonable
manner. All determinations shall be binding on Party A and Party B unless Party
A receives notice from Party B within five Local Business Days of any such
determination setting forth the reasons for its objection.

 

Upon receipt of such
objection notice, each party agrees to be bound by the determinations and
calculations of a leading, independent dealer in derivatives selected by
agreement between the parties within three Local Business Days (unless
impracticable or inadvisable to proceed in which case the next succeeding Local
Business Day where the impracticality or inadvisability shall no longer exist)
of such disagreement (the “Substitute Calculation
Agent”), whose fees and expenses shall be borne equally by both
parties. If the parties are unable to agree on a Substitute Calculation Agent,
each of the parties shall elect an independent dealer in derivatives and such
two dealers shall agree on a third party, who shall be deemed to be the
Substitute Calculation Agent.

 

While the Substitute
Calculation Agent may be informed of the identities of Party A and Party B, all
submissions to the Substitute Calculation Agent shall be joint and the
Substitute Calculation Agent shall not be informed which party has submitted
which calculation or determination. 
Subject to the foregoing, each party agrees to supply the Substitute
Calculation Agent with its determination or calculation and may supply any such
additional materials or information which shall aid the Substitute Calculation
Agent in understanding the basis for such determination or calculation.  The Substitute Calculation Agent shall select
from these submissions the determination or calculation it believes to be the
closest to the actual determination or calculation, which selection shall be
final and binding upon the parties with regard to the disputed item.

 

(g)         Credit Support Document.  Details of any Credit Support
Document:

 

In
relation to Party A and Party B:  The
Credit Support Annex.

 

	
  In
  relation to Party A:

  	
   

  	
  The
  guarantee made by Citigroup Inc., dated as of the date hereof, attached
  hereto as Exhibit I.

  

 

11

 

	
  In
  relation to Party B:

  	
   

  	
  from
  (and including) the Closing Date to (and including) the Designated
  Confirmation Termination Date, the Intercreditor Agreement, the Collateral
  Documents and the Energy Hedge Guarantees.

  

 

(h)       Credit Support Provider. Credit Support Provider means:

 

	
  In
  relation to Party A:

  	
   

  	
  Citigroup
  Inc.

  
	
   

  	
   

  	
   

  
	
  In
  relation to Party B:

  	
   

  	
  from
  (and including) the Closing Date to 
  (and including) the Designated Confirmation Termination Date, each
  affiliate of Party B that is a party to the Intercreditor Agreement, any
  Collateral Document or any Energy Hedge Guarantee.

  

 

(i)            Governing Law and
Jurisdiction.  THIS AGREEMENT WILL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD
TO CONFLICTS OF LAW PROVISIONS THEREOF OTHER THAN SECTION 5-1401 OF THE
NEW YORK GENERAL OBLIGATIONS LAW). 
SECTION 13(b) IS HEREBY AMENDED BY: (I) DELETING IN THE
SECOND LINE OF SUBPARAGRAPH (I) THEREOF THE WORD, “NON-”; (II) ADDING
IN THE THIRD LINE BEFORE THE COMMA, “AND EACH PARTY IRREVOCABLY AGREES TO
DESIGNATE ANY PROCEEDINGS BROUGHT IN THE COURTS OF THE STATE OF NEW YORK AS
‘COMMERCIAL’ ON THE REQUEST FOR JUDICIAL INTERVENTION SEEKING ASSIGNMENT TO THE
COMMERCIAL DIVISION OF THE SUPREME COURT”; AND (III) INSERTING “IN ORDER
TO ENFORCE ANY JUDGMENT OBTAINED IN ANY PROCEEDINGS REFERRED TO IN THE
PRECEDING SENTENCE” IMMEDIATELY AFTER THE WORD, “JURISDICTION” THE FIRST TIME
IT APPEARS IN THE SECOND SENTENCE AND DELETING THE REMAINDER.  EACH PARTY IRREVOCABLY AND UNCONDITIONALLY
WAIVES AND AGREES NOT TO PLEAD, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION THAT THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OR
THE CONVENIENCE OF THE FORUM OF ANY PROCEEDING WITH RESPECT TO THIS AGREEMENT
AND THE TRANSACTIONS CONTEMPLATED HEREBY, IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF NEW YORK AND THE COURTS OF THE STATE OF NEW YORK
LOCATED IN NEW YORK COUNTY.

 

(j)            Affiliate. 
Affiliate will have the meaning specified in Section 14, provided,
however, that with regard to Party A, the term “Affiliate” shall not include
any entity that controls or is under common control with Citigroup Global
Markets Holdings Inc., but in any event such term shall include Citigroup
Global Markets Holdings Inc. and any entity controlled by it.

 

(i)            Netting of Payments. 
Subparagraph (ii) of Section 2(c) will not apply to
Transactions.

 

Part 5

Other Provisions

 

	
  (a)

  	
   

  	
  Scope
  of Agreement. The
  terms of this Agreement shall relate solely and specifically to the
  Transaction set forth in the Designated Confirmation.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  ISDA
  Definitions. Unless
  otherwise specified in a Confirmation (and subject to
  Section 5(v) hereof), each Transaction between the parties shall be
  subject to the 2000 ISDA Definitions and the 1993 ISDA Commodity Derivatives
  Definitions and the 2000 Supplement thereto, as published by the

  

 

12

 

International Swaps and
Derivatives Association, Inc. 
(collectively, the “2000 Definitions”), and will be governed in all
relevant respects by the provisions of the 2000 Definitions, without regard to
amendments subsequent to the date thereof. 
The provisions of the 2000 Definitions are incorporated by reference in
and shall be deemed a part of this Agreement except that references in the 2000
Definitions to a “Swap Transaction” shall be deemed references to a
“Transaction” for purposes of this Agreement.

 

(c)          Confirmations.
Section 9(e)(ii) of the Master Agreement is hereby amended and
restated in its entirety to read as follows:

 

(ii) 
The parties intend that they are legally bound by the terms of the Transaction
set forth in the Designated Confirmation from the moment such Designated Confirmation
is executed by both parties, which may be executed and delivered in
counterparts (including by facsimile transmission), and which will be
sufficient for all purposes to evidence a binding supplement to this Agreement.  The parties will specify that such Designated
Confirmation constitutes a Confirmation for purposes of this Agreement.  Other than in respect of a particular
Transaction to which it relates, under no circumstance shall the Designated
Confirmation amend, or be deemed to amend, the general terms of this Agreement.

 

(d)          LIMITATION OF LIABILITY.  WITH RESPECT TO CLAIMS UNDER
THIS AGREEMENT, NO PARTY SHALL BE REQUIRED TO PAY OR BE LIABLE TO THE OTHER FOR
EXEMPLARY, PUNITIVE, INDIRECT, INCIDENTAL, CONSEQUENTIAL, OR INDIRECT DAMAGES,
LOST PROFITS OR OPPORTUNITY COSTS (WHETHER OR NOT ARISING FROM ITS NEGLIGENCE)
TO ANY OTHER PARTY.  IF AND TO THE EXTENT
ANY PAYMENT REQUIRED TO BE MADE PURSUANT TO THIS AGREEMENT IS DEEMED TO
CONSTITUTE LIQUIDATED DAMAGES, THE PARTIES ACKNOWLEDGE AND AGREE THAT SUCH
DAMAGES ARE DIFFICULT OR IMPOSSIBLE TO DETERMINE AND THAT SUCH PAYMENT IS
INTENDED TO BE A REASONABLE APPROXIMATION OF THE AMOUNT OF SUCH DAMAGES AND NOT
A PENALTY.

 

(e)          Accuracy of Specified
Information.  Section 3(d) of the Master
Agreement is hereby amended by adding in the third line thereof after the word
“respect” and before the period the words “or, in the case of audited or
unaudited financial statements, a presentation of the financial condition of
the relevant party in accordance with generally accepted accounting principles,
consistently applied.”

 

(f)            Additional Representation will apply.  For
purposes of Section 3 of this Agreement, the following will constitute
Additional Representations and each party will be deemed to represent to the
other party on the date on which it enters into a Transaction that (absent a
written agreement between the parties that expressly imposes affirmative
obligations to the contrary for that Transaction) that:

 

“(g)                           Relationship Between
Parties.  Each party will be deemed to represent to the
other party on the date on which it enters into a Transaction that (absent a
written agreement between the parties that expressly imposes affirmative
obligations to the contrary for that Transaction):

 

(i)                                     Non-Reliance.  It is acting for its own account, and it has made its own independent
decisions to enter into that Transaction and as to whether that Transaction is
appropriate or proper for it based upon its own judgment and upon advice from
such advisers as it has deemed necessary. 
It is not relying on any communication (written or oral) of the other
party as investment advice or as a recommendation to enter into that
Transaction; it being understood that information and explanations related to
the terms and 

 

13

 

conditions
of a Transaction shall not be considered investment advice or a recommendation
to enter into that Transaction.  No
communication (written or oral) received from the other party shall be deemed
to be an assurance or guarantee as to the expected results of that Transaction.

 

(ii)                                  Assessment and Understanding.  It is capable of assessing the merits of and understanding (on its own
behalf or through independent professional advice), and understands and
accepts, the terms, conditions and risks of that Transaction.  It is also capable of assuming, and assumes,
the risks of that Transaction.

 

(iii)                               Status of Parties.  The other party is not acting as a fiduciary
for or an adviser to it in respect of that Transaction.

 

(iv)                              No Agency.  It is
entering into this Agreement, including each Transaction, as principal and not
as agent of any person or entity.

 

(h)                                 Commodity Exchange Act.  Each
party represents to the other party on and as of the date hereof and on each
date on which a Transaction is entered into among them that:

 

(i)                                     Such party is an “eligible contract
participant” as defined in the U.S. Commodity Exchange Act, as amended (the “CEA”).

 

(ii)                                  Such party is an “eligible commercial entity”
as defined in the CEA.”

 

(i)                                     Bankruptcy Code
Representation.  The parties intend that (i) all
Transactions (being a single integrated agreement) constitute a “forward
contract” within the meaning of the United States Bankruptcy Code (the “Bankruptcy Code”) or a “swap agreement” within
the meaning of the Bankruptcy Code; (ii) all payments made or to be made
by one party to the other party, pursuant to this Agreement constitutes
“settlement payments” within the meaning of the Bankruptcy Code; (iii) all
transfers of credit support by one party to the other party under this
Agreement constitute “margin payments” within the meaning of the Bankruptcy
Code; and (iv) this Agreement constitutes a “master netting agreement”
within the meaning of the Bankruptcy Code.

 

(j)                                     No Employee Benefit Assets. 
The assets
that are used, directly or indirectly, in connection with the execution,
delivery and performance of this Agreement and the Transactions entered into
pursuant hereto are legally and beneficially owned by such party and are not
held by it, directly or indirectly, for the benefit of or under any form of any
employee benefit or other plan, trust plan, pension plan, individual retirement
accounts or other type of similar plans.

 

(g)         Change of Account. 
Section 2(b) of this Agreement is hereby amended by the
addition of the following after the word “delivery” in the first line thereof:

 

“to
another account in the same federal tax jurisdiction as the original account”

 

(h)         Recording of Conversation. Each party to this
Agreement acknowledges and agrees to the tape recording of conversations
between the parties to this Agreement whether by one or other or both of 

 

14

 

the parties and each party hereby agrees that it
will not object to the introduction of any recording into evidence on the basis
that such proposed evidence is a recording.

 

(i)            Waiver of Right to Trial by Jury.  EACH
PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, CLAIM,
COUNTERCLAIM, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY CREDIT SUPPORT DOCUMENT.  THE
PARTIES FURTHER HEREBY IRREVOCABLY WAIVE ANY RIGHT TO SUE FOR, PURSUE, OBTAIN,
OR COLLECT PUNITIVE, CONSEQUENTIAL, INCIDENTAL, INDIRECT OR MULTIPLE DAMAGES
WITH RESPECT TO ANY CLAIM, COUNTERCLAIM OR ACTION ARISING OUT OF OR RELATING TO
THIS AGREEMENT,.  IF AND TO THE EXTENT
ANY PAYMENT REQUIRED TO BE MADE PURSUANT TO THIS AGREEMENT IS DEEMED TO
CONSTITUTE LIQUIDATED DAMAGES, THE PARTIES ACKNOWLEDGE AND AGREE THAT SUCH
DAMAGES ARE DIFFICULT TO OR IMPOSSIBLE TO DETERMINE AND THAT SUCH PAYMENT IS
INTENDED TO BE A REASONABLE APPROXIMATION OF THE AMOUNT OF SUCH DAMAGES AND NOT
A PENALTY. EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF THE OTHER PARTY OR ANY CREDIT SUPPORT PROVIDER HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH A
SUIT, ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES
THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND
PROVIDE FOR ANY CREDIT SUPPORT DOCUMENT, AS APPLICABLE BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

(j)            Transfer.  In
addition to transfers under Sections 7(a) and 7(b), for the purpose of any
financing, Party B may, without the consent of Party A, collaterally assign to
or otherwise create a security interest in favor of lenders or their
designee(s), or any other person providing any financing, in or of Party B’s
rights and interests in, under or pursuant to this Agreement and the revenues
deriving from any of the rights or assets of Party B.  Notwithstanding anything herein to the
contrary, any transfer by Party A shall require the consent of Citigroup Inc.

 

(k)        Security Interest; Collateral.  Upon
execution of the Financing Agreement and the initial funding of Loans
thereunder (such date being referred to herein as the “Closing
Date”), Party B shall (i) deliver the Initial LC or cash in
the Initial LC Amount to Party A and (ii) grant, and cause to be granted,
in favor of Party A under the Second Lien Collateral Documents, a second
priority security interest in and lien on the Collateral (the “Second Lien”), which Second Lien
shall be subject and junior to the security interests and liens created by and
granted under the First Lien Collateral Documents and which shall secure and
cover all of Party B’s obligations under the terms of this Agreement in effect
from time to time (the “Energy Hedge Provider
Second Lien Obligations”). Upon the Term-Conversion Date, Party
B shall grant and cause to be granted, in favor of Party A under the Collateral
Documents, a first priority security interest in and lien on the Collateral
(the “First Lien”), which First
Lien shall rank pari passu with the lien of the Lenders and which shall secure
and cover all of Party B’s obligations under this Agreement in effect from time
to time in an aggregate amount equal to the lesser of (x) the amount of
such obligations then due and payable (together with such amounts which may
become due and payable at a future date) and (y) the difference of $***
(the “Energy Hedge Provider First Lien Cap”)
minus all amounts paid to Party A from the proceeds of the liquidation of Collateral
under the First Lien Collateral Documents following the termination and
liquidation of this Agreement by Party A 
(the “Energy Hedge Provider First Lien Obligations”,
and together with the Energy Hedge Provider Second Lien Obligations, the “Energy Hedge Provider 

 

15

 

Obligations”).  As
used in this paragraph and incorporated into the definitions in this paragraph,
the term “obligations” means all payment obligations, liabilities (including
any indemnification or other obligations that survive the termination of
applicable agreements), reimbursement obligations, and all other obligations,
howsoever arising (including guarantee obligations), of every kind and
description (whether or not for the payment of money), direct or indirect,
absolute or contingent, due or to become due, now existing or hereafter
arising, including those owed under the terms of applicable agreements after
the commencement of any bankruptcy or insolvency proceeding whether or not impaired
by such proceeding.

 

(l)            No Liens. 
Party B shall not create, incur, assume, suffer to exist or permit any
lien upon or with respect to any of its properties or assets without the
consent of Party A other than (x) the security interests and liens created
by and granted under the First Lien Collateral Documents, which security
interests and liens shall, so long as any Energy Hedge Provider Obligations are
outstanding, not secure any obligations in excess of the First Lien Debt Cap,
(y) the security interests and liens created by and granted under the
Second Lien Collateral Documents, and (z) other Permitted Liens; provided that:

 

(1)                                  if (a) a lien, other than a lien granted
or permitted by Party B, is imposed on property or assets of Party B in violation
of the foregoing provisions of this paragraph (m), (b) such lien is senior
to the Loans under the Financing Agreement, (c) such lien is imposed prior
to any foreclosure by the Administrative Agent on the Class B Membership
Interests or the Class A Membership Interests and (d) the
Administrative Agent and the Lenders have not consented to such lien and have
not affirmatively waived compliance with the lien covenants in the Financing
Agreement with respect to such lien, then no Event of Default will arise under
this clause (m) in respect of such lien for so long as Party B or the
Administrative Agent is using commercially reasonable efforts to remove such
lien; and

 

(2)                                  if (a) a lien, other than a lien granted
or permitted by Party B, is imposed on property or assets of Party B in
violation of the foregoing provisions of this clause (m), (b) such lien is
senior to the Loans under the Financing Agreement, and (c) the
Administrative Agent, one or more of the Lenders or one or more of their designees
has taken (through foreclosure or otherwise) the Class B Membership
Interests or the Class A Membership Interests prior to the imposition of
such lien, then  an Event of Default will occur
under this clause (m) in respect of such lien  only  if the lien secures claims aggregating $***or more (unless
consented to by Party A in writing).

 

(m)     Severability.  Any provision of this Agreement (including
any Transaction hereunder or any Credit Support Document) which is prohibited
or unenforceable in any jurisdiction shall, as to such jurisdiction, be
ineffective to the extent of such prohibition or unenforceability without
invalidating the remaining provisions of this Agreement, such Transaction or
such Credit Support Document or affecting the validity or enforceability of such
provision in any other jurisdiction unless such severance shall substantially
impair the benefits of the remaining portions of this Agreement, such
Transaction or such Credit Support Document or changes the reciprocal
obligations of the parties; provided, however, that this
severability provision shall not be applicable if any provision of
Section 1, 2, 5 or 6 (or any definition or provision in Section 14 to
the extent it relates to, or is used in or in connection with any such Section)
shall be so held to be invalid or unenforceable.  In the event any provision herein is held to
be prohibited, invalid or unenforceable, the parties hereto shall endeavor 

 

16

 

in
good faith negotiations to replace the prohibited or unenforceable provision
with a valid provision, the economic effect of which comes as close as possible
to that of the prohibited or unenforceable provision.

 

(n)                 Confidentiality.  The contents of this Agreement and all other documents relating to this
Agreement, and any information made available by one party to the other party
with respect to this Agreement is confidential and shall not be disclosed to
any third party (nor shall any public announcement relating to this Agreement
be made by either party), except for such information (i) as may become
generally available to the public, (ii) as may be required or appropriate
in response to any summons, subpoena, or otherwise in connection with any
litigation or to comply with any applicable law, order, regulation, ruling, or
accounting disclosure rule or standard, (iii) as may be obtained from
a non-confidential source that disclosed such information in a manner that did
not violate its obligations to the non-disclosing party in making such
disclosure, (iv) as may be furnished to the disclosing party’s Affiliates,
and to each of such person’s auditors, attorneys, advisors, actual or potential
lenders or actual or potential equity investors which are required to keep the
information that is disclosed in confidence, (v) as may be required or
appropriate in response to any summons, subpoena, or otherwise in connection
with any litigation or to comply with any applicable law, order, regulation,
ruling or request of any judicial, administrative or legislative body or
committee of any self-regulatory body (including any securities or commodities
exchange or the National Association of Securities Dealers, Inc.), or
accounting disclosure rule or standard, (vi) as may be obtained from
a non-confidential source that disclosed such information in a manner that did
not violate its obligations to the disclosing party in making such disclosure,
(vii) with respect to Party A, at the request of a bank examiner in
connection with an examination of Citigroup Inc. or its affiliates.  With respect to information provided with
respect to a Transaction, this obligation shall survive for a period of one
(1) year following the expiration or termination of such Transaction.  With respect to information provided with
respect to this Agreement, this obligation shall survive for a period of one
(1) year following the expiration or termination of this Agreement.

 

(o)                  Reference Market-makers.  The definition of “Reference Market-makers” in Section 14 of this
Agreement is hereby amended by: (i) deleting “(a)” from the second line
thereof; (ii) deleting in the fourth line thereof after the word “credit”
the words “and (b) to the extent practicable, from among such dealers
having an office in the same city”; (iii) replacing such words with the
words “or to enter into transactions similar in nature to Transactions”; and
(iv) adding the following sentence to the end of the definition: “The
leading dealers selected by a party shall not be parties to this Agreement or
Affiliates of a party to this Agreement.”

 

(p)                  Limitation of Rate. 
Notwithstanding any provision to the contrary contained in this
Agreement, in no event shall the Default Rate, Non-default Rate, or Termination
Rate exceed the Highest Lawful Rate.  For
purposes hereof, “Highest Lawful Rate” shall mean, with respect to each party,
the maximum non-usurious interest rate, if any, that at any time or from time
to time may be contracted for, taken, reserved, charged, or received on the
subject indebtedness under the law applicable to such party.

 

(q)                  Potential Event of Default. 
Section 2(a)(iii) of this Agreement is hereby amended to
delete the phrase “or Potential Event of Default”.  Section 3(b) of this Agreement is
hereby amended to delete the phrase “or Potential Event of Default”.  Section 14 of this Agreement is hereby
amended to delete the term “Potential Event of Default” and its corresponding
definition.

 

(r)                  Notice of Termination Events and
Events of Default.  To the extent Party A is required to provide
notice to Party B of the same, Party A shall provide to the Class A Member
and to the 

 

17

 

Administrative
Agent notice of any Termination Event or Event of Default in which Party B is
the Affected Party or Defaulting Party, as applicable (and, estimated
calculations of Party A’s Exposure related thereto).

 

(s)                  Rounding.  For
purposes of preparing any calculations referred to in the Commodity
Definitions, unless otherwise agreed to and specified in a Confirmation,
rounding conventions for commodity pricing shall be as follows:

 

	
  Megawatt
  Hours:

  	
   

  	
  rounded
  to the nearest fourth decimal place

  
	
  MMBtu:

  	
   

  	
  rounded
  to the nearest fourth decimal place

  
	
  Gallons

  	
   

  	
  rounded
  to the nearest fourth decimal place

  
	
  Barrels:

  	
   

  	
  rounded
  to the nearest third decimal place

  

 

(t)            Definitions. For the purpose of this Agreement, the following capitalized terms
shall have the meanings set forth below. 
In the event of any inconsistency in the definitions among the following
documents, the definition in relevant document first listed hereinafter shall
govern (i) the Designated Confirmation, (ii) Paragraph 13- Elections
and Variables to the ISDA Credit Support Annex, (iii) this Schedule,
(v) the 2000 ISDA Definitions and the 1993 ISDA Commodity Derivatives
Definitions, (v) the printed forms of the 1992 ISDA Master Agreement and
1994 ISDA Credit Support Annex (Bilateral Form, New York law) and (vi) the
Financing Agreement.

 

“Additional Collateral “ has the
meaning specified in Part 1(e) above.

 

“Additional Collateral Period” means
each period from, and including, an Additional Collateral Trigger Date to, but
excluding, the related Additional Collateral Release Date.

 

“Additional Collateral Trigger Date”
means any date on which a Specified Event of Default or Specified Additional
Termination Event would occur under this Agreement but for the operation of
Part 1(e) of the Schedule to the Agreement.

 

“Additional Collateral Release Date”
means, following any Additional Collateral Trigger Date, the date on which
Party A receives evidence satisfactory to Party A in its sole discretion that
all Specified Events of Default and all Specified Additional Termination Events
have been cured, all adverse effects thereof on Party A have been remedied and
no other Event of Default or Termination Event has occurred and is then
continuing with respect to Party B.

 

“Administrative Agent” has the
meaning set forth in the definition of “Financing Agreement” below.

 

“Altona” means Noble Altona Windpark,
LLC.

 

“Chateaugay” means Noble Chateaugay
Windpark, LLC.

 

“Class A Member” means EFS Noble
II, LLC.

 

“Class A Membership Interests”
has the meaning specified in the Forbearance Agreement.

 

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

 

“Class B Membership Interests”
has the meaning specified in the Forbearance Agreement.

 

18

 

“Closing Date” has the meaning
specified in Part 5(k) above.

 

“COD” means, with respect to any
Project, the earlier of (i) the date by which Completion (as defined in
the Financing Agreement as in effect on the Closing Date) with respect to such
Project has occurred and (ii) the Term-Conversion Date.

 

“COD Deadline” means
December 31, 2009.

 

“Collateral” shall have the meaning
specified in the Intercreditor Agreement.

 

“Collateral Documents” has the
meaning given to such term in the Intercreditor Agreement.

 

“Consent to Assignment” means the
Consent to Assignment of Energy Hedge Agreement, dated as of the Closing Date,
among Party A, Party B and the Administrative Agent, which shall be in form and
substance reasonably acceptable to Party A.

 

“Credit Support Annex” means the
Credit Support Annex, including Paragraph 13 thereto, attached hereto as Exhibit III.

 

“Depositary Agreement” means the
Depositary Agreement dated as of the Closing Date among Party B, the
Administrative Agent, Citibank, N.A. as Collateral Agent and an agreed upon
depositary institution, as the same may be amended, modified or supplemented
from time to time.

 

“Designated Confirmation” means the
Confirmation attached hereto as Exhibit II.

 

“Designated Confirmation Termination Date”
means the date on which all obligations of Party A under this Agreement have
terminated, the Noble Tracking Account Balance has been paid in full and all
obligations of Party B under this Agreement have been paid in full or otherwise
satisfied.

 

“Energy Hedge Guarantees” means
guarantees of the Energy Hedge Guarantors, in form and substance reasonably
acceptable to Party A.

 

“Energy Hedge Guarantors” means
Altona, Chateaugay and Wethersfield.

 

“Energy Hedge Provider First Lien Cap”
has the meaning specified in of Part 5(k) above.

 

“Energy Hedge Provider First Lien Obligations”
has the meaning specified in of Part 5(k) above.

 

“Energy Hedge Provider Forbearance Agreement”
means the Forbearance Agreement, dated as of the Closing Date, between Party A
and the Class A Member, which shall be in form and substance reasonably
acceptable to Party A, as the same may be amended, modified or supplemented
from time to time.

 

“Energy Hedge Provider Obligations”
has the meaning specified in Part 5(k) above.

 

“Energy Hedge Provider Second Lien Obligations”
has the meaning specified in Part 5(k) above.

 

“Equity Support Members” has the
meaning given to such term in the Financing Agreement.

 

“Execution Date” has the meaning set forth on the first page of this Schedule.

 

19

 

“Financing Agreement” means the
Financing Agreement, dated as of the Closing Date, among Party B, the financial
institutions from time to time party thereto, Citibank, N.A., as Administrative
Agent for the Lenders and Collateral Agent for the Secured Parties as defined
therein, Citibank Global Markets, Inc., as Joint Lead Arranger and Joint
Bookrunner, and various other financial institutions in certain capacities
thereunder, as the same may be amended, modified or supplemented from time to
time (or as may be refinanced or replaced in accordance with the Intercreditor
Agreement).

 

“Financing Documents” has the meaning
given to such term in the Financing Agreement.

 

“First Lien” has the meaning
specified in Part 5(k) above.

 

“First Lien Debt Cap” means (without
duplication):

 

(a)                                  (1) on any date prior to the Term
Conversion Date, the principal amount of indebtedness permitted under the
Financing Agreement as of the Closing Date; and

 

                                                (2) on any date on and after the Term
Conversion Date, the principal amount of indebtedness permitted under the
Financing Agreement as of the Term Conversion Date; plus

 

(b)                                 the aggregate amount of interest, fees and
other obligations at anytime owing under the Financing Agreement; plus

 

(c)                                  the aggregate amount of any advances extended
by one or more of the Lenders which are determined by the Administrative Agent
in its reasonable discretion to be necessary to protect and preserve the value
of the Collateral; plus

 

(d)                                 $***; plus

 

(e)                                  Energy Hedge Provider First Lien Obligations;
plus

 

(f)                                    the obligations of Party B under Interest
Rate Agreements; plus

 

(g)                                 for purposes of this Agreement, but not for
the purpose of incorporation into other Agreements, the dollar amount of any
Permitted Liens, to the extent not covered by any of the foregoing.  For the avoidance of doubt, clause
(g) shall not be included in the determination of the “DIP Financing Cap Amount” or the “First Lien
Loan Cap Amount” in the Intercreditor Agreement.

 

“First Lien Collateral Documents”
shall have the meaning given to such term in the Intercreditor Agreement, but
for the avoidance of doubt shall include the Intercreditor Agreement, the
Depositary Agreement, a first lien security agreement, first lien consents and
agreements, first lien pledge agreements, and first lien mortgages as necessary
to provide the First Lien.

 

“Forbearance Agreement” means the
Forbearance Agreement, dated as of the Closing Date, among the Class A
Member, Party B and the Administrative Agent, as the same may be amended,
modified or supplemented from time to time.

 

“Forbearance Default” has the meaning
specified in the Forbearance Agreement, as in effect on the Closing Date.

 

20

 

“Initial LC” means the Letter of
Credit (as defined in the Credit Support Annex) in the Initial LC Amount
delivered to Party A on the Closing Date.

 

“Initial LC Amount” means $***.

 

“Intercreditor Agreement” means the
Collateral Agency and Intercreditor Agreement dated as of the Closing Date
among Party B, the Energy Hedge Guarantors, Citibank, N.A., as First Lien
Collateral Agent (the “First Lien Collateral
Agent”), and Citibank, N.A., as Second Lien Collateral Agent
(the “Second Lien Collateral Agent”),
as the same may be amended, modified or supplemented from time to time.

 

“Lenders” has the meaning specified
in the Financing Agreement.

 

“Loans” means the loans made by the
Lenders under the Financing Agreement.

 

“Permitted Liens” means “Permitted
Liens” as defined in the Financing Agreement.

 

“Proceeding” shall mean any action,
order, writ, injunction, judgment, determination or decree or any claim, suit,
litigation, proceeding, appeal, arbitration, mediation, tax audit or
governmental investigation of any kind involving any person, or its business or
assets.

 

“Project Documents” has the meaning
specified in the Financing Agreement.

 

“Second Lien” has the meaning
specified in Part 5(k) above.

 

“Second Lien Collateral Documents”
shall have the meaning given to such term in the Intercreditor Agreement, but
for the avoidance of doubt shall include the Intercreditor Agreement, the
Depositary Agreement, a second lien security agreement, second lien consents
and agreements, second lien pledge agreements, and second lien mortgages as
necessary to provide the Second Lien.

 

“Specified Additional Termination Event”
has the meaning specified in Part 1(e) above.

 

“Specified Event of Default” has the
meaning specified in Part 1(e) above.

 

“Term-Conversion Date”  has the meaning set forth for such term in the Financing
Agreement as in effect on the Closing Date.

 

“Wethersfield” means Noble
Wethersfield Windpark, LLC.

 

21

 

Part 6

 

ADDITIONAL
PROVISIONS FOR

COMMODITY DERIVATIVE TRANSACTIONS

 

(a)   Amendments to ISDA Commodity Definitions

 

(i)            Section 7.3 of the Commodity Definitions
is amended to read as follows:

 

Section 7.3.  Corrections to Published
Prices.  For purposes of
determining the Relevant Price for any day, if the price published or announced
on a given day and used or to be used by the Calculation Agent to determine a
Relevant Price is subsequently corrected and the correction is published or
announced by the person responsible for that publication or announcement within
one year of the date of the original publication or announcement, either party
may notify the other party of (i) that correction and (ii) the amount
(if any) that is payable as a result of that correction.  If, not later that thirty (30) calendar days
after the publication or announcement of that correction, a party gives notice
that an amount is so payable, the party that originally received or retained
such amount will, no later than three (3) Local Business Days after the
effectiveness of that notice, pay, subject to any applicable conditions
precedent, to the other party that amount, together with interest on that
amount at the Non-Default Rate for the period from and including the day on
which a payment originally was (or was not) made to but excluding the day of
payment of the refund or payment resulting from that correction.

 

(ii)           “Additional Market Disruption
Events” shall not apply.

 

(iii)          The following “Disruption
Fallbacks” specified in Section 7.5(c) of the Commodity
Definitions shall apply, in the following order, except as otherwise specified
in the relevant Confirmation:

 

1.                                      “Fallback Reference Price” (if the relevant parties have specified an
alternate Commodity Reference Price in the Confirmation);

 

2.                                      “Negotiated Fallback”;

 

3.                                      “Postponement” with three (3) Commodity Business Days
as the Maximum Days of Disruption;

 

4.                                      “Fallback Reference Dealers”.

 

[signature
page follows]

 

22

 

IN WITNESS WHEREOF, the parties have executed this
document on the respective dates specified below with effect from the date
specified on the first page of this document.

 

	
  CITIGROUP
  ENERGY INC.

  	
   

  	
  NOBLE
  ENVIRONMENTAL POWER 2008

  HOLD CO., LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Victoria T. Sharp

  	
   

  	
  By:

  	
  /s/
  Walter Howard

  
	
  Name:

  	
  Victoria
  T. Sharp

  	
   

  	
  Name:

  	
  Walter
  Howard

  
	
  Title:

  	
  Managing
  Director

  Citigroup Energy Inc.

  	
   

  	
  Title:

  	
  President

  
	
  Date:

  	
   

  	
   

  	
  Date:

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