Document:

Exhibit 10.48

 

UNIT SUBSCRIPTION AGREEMENT

 

AUGUST 15, 2008

 

The
undersigned, ROCKFIELD NOBLE HOLDING, LLC (the “Subscriber”),
hereby agrees to subscribe for and purchase from NOBLE
ENVIRONMENTAL POWER, LLC, a Delaware limited liability company (the “Company”),
and the Company hereby agrees to sell and issue to the Subscriber, the number
of Series B Preferred Units (the “Preferred Units”) of the Company
set forth on the Subscriber’s signature page hereto (such Preferred Units
to be issued, the “Purchased Units”) in consideration of the payment to
the Company of $100.00 per Purchased Unit (the “Subscription Price”),
the sufficiency of which is hereby acknowledged.

 

On
or before August 15, 2008 the Subscriber shall deposit the Subscription
Price into an account identified to the Subscriber by the Company (the “Deposit
Account”) by wire transfer of immediately available funds.  Once the Subscription Price is received into
the Deposit Account, the Company shall immediately issue the Purchased Units to
the Subscriber without further action.

 

The Company represents and warrants that the Purchased
Units, when issued, will be duly authorized, validly issued, fully paid and
nonassessable.

 

The Subscriber represents and warrants to the Company
that the representations and warranties of the Subscriber set forth in Section 8
of that certain Fifth Amended and Restated Limited Liability Company Operating
Agreement of the Company, dated August 15, 2008, are true and correct in
all material respects on and as of the date hereof as if made by the Subscriber
on and as of the date hereof (except to the extent expressly made as of an
earlier date, in which case such representations shall be true and correct in
all material respects as of such earlier date, and except to the extent such
representations and warranties are qualified by materiality, in which case such
representations shall be true and correct).

 

As evidence of the restrictions on transfer, the
following legends will be placed on the certificates, if any, evidencing the Purchased
Units:

 

“THE
SECURITIES REPRESENTED BY THIS CERTIFICATE HAVE BEEN ACQUIRED FOR INVESTMENT
AND HAVE NOT BEEN REGISTERED UNDER THE UNITED STATES SECURITIES ACT OF 1933, AS
AMENDED, OR ANY STATE SECURITIES OR BLUE SKY LAWS.  THESE SECURITIES MAY NOT BE SOLD OR
TRANSFERRED IN THE ABSENCE OF SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER
SAID ACT OR LAWS.”

 

[Remainder
of page intentionally left blank. 
Next page is signature page.]

 

 

 

 

IN WITNESS WHEREOF, the undersigned have executed this Unit Subscription
Agreement as of the date first written above.

 

	
   

  	
  ROCKFIELD
  NOBLE HOLDING, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/
  Charles Hinckley

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Number
  of Purchased Units:  47,750.00

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  NOBLE ENVIRONMENTAL POWER, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Walter Q. Howard

  
	
   

  	
  Name:

  	
  Walter Q. Howard

  
	
   

  	
  Title:

  	
  President and Chief
  Executive OfficerExhibit 10.49

 

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.

 

RPS STANDARD FORM CONTRACT

 

BY AND BETWEEN

 

THE NEW YORK STATE ENERGY RESEARCH
AND DEVELOPMENT AUTHORITY

 

AND

 

NOBLE BELLMONT WINDPARK, LLC

 

Dated: MARCH 14, 2007

 

 

Agreement
No. 10076A

 

This Agreement
(“Agreement”) is entered into as of March 14, 2007 (the “Effective Date”)
by and between the New York State Energy Research and Development Authority
(“NYSERDA”), a public benefit corporation, having a principal business address
of 17 Columbia Circle, Albany, New York 12203, and Noble Bellmont Windpark, LLC
(“Seller”), a Delaware limited liability company, having a principal business
address of 8 Railroad Avenue, Suite 8, Essex, Connecticut 06426. NYSERDA
and Seller are each referred to herein as a “Party” and are collectively
referred to herein as the “Parties.”

 

WHEREAS, the New
York State Public Service Commission (“PSC”) adopted a Renewable Portfolio
Standard (“RPS”) program to address the energy, economic, and environmental
objectives of New York State by creating the potential to build new industries
in the State based on clean, environmentally responsible energy technologies (See Case 03-E-0188, “Order Regarding
Retail Renewable Portfolio Standard” issued and effective September 24,
2004, and subsequent orders under Case No. 03-E-0188 (the “Orders”)) and
the Orders designate NYSERDA as the Central Procurement Administrator of the
RPS Program and all associated funding; and

 

WHEREAS, NYSERDA
has conducted a competitive Request for Proposals (“RFP 1037”) to procure
rights to RPS-eligible renewable energy attributes; and

 

WHEREAS, NYSERDA
RFP 1037, which is incorporated herein and made part hereof, provided, among
other things, that this RPS Standard Form Contract (“Agreement”) would be
employed to govern the rights and obligations of the Parties; and

 

WHEREAS, Seller
has participated in such competitive solicitation and has been selected by
NYSERDA as a winning bidder with respect to the Noble Bellmont Windpark (“Bid
Facility”); and

 

WHEREAS, the
Seller desires to sell to NYSERDA, and NYSERDA desires to purchase from Seller,
the RPS-eligible renewable energy attributes (“RPS Attributes,” as defined
herein) associated with the energy production of the Bid Facility described in
the Application Package filed by Seller (which is incorporated herein, made
part hereof, and annexed hereto at Exhibit D), and the Bid Proposal during
the Contract Delivery Term, on the terms and subject to the conditions set
forth herein;

 

NOW, THEREFORE,
this Agreement has been entered into by the Parties to define, among other
things, their rights and obligations concerning the generation of RPS
Attributes by Seller and delivery of all right and title to RPS Attributes to
NYSERDA, and the payments by NYSERDA to Seller during the term of this
Agreement.

 

1

 

Article I

 

Definitions

 

The terms defined
in this Article I, whenever used in this Agreement (including in any Exhibit hereto),
shall have the respective meanings indicated below for all purposes of this
Agreement (each such meaning to be equally applicable to the singular and the
plural forms of the respective terms so defined). All references herein to a
Section, Article or Exhibit are to a Section, Article or Exhibit of
or to this Agreement, unless otherwise indicated. The words “hereby”, “herein”,
“hereof, “hereunder” and words of similar import refer to this Agreement as a
whole (including any Exhibit) and not merely to the specific section, paragraph
or clause in which such word appears. The words “include”, “includes”, and
“including” shall be deemed, in every instance, to be followed by the phrase
“without limitation.” Whenever the context may require, any pronoun shall
include the corresponding masculine, feminine and neuter forms. Except as
otherwise expressly provided herein, all references to “dollars” and “$” shall
be deemed references to the lawful money of the United States of America.

 

Actual Annual Production:
The amount, in MWh, of the total electric energy produced by the Bid Facility
during any Contract Year, measured at the Injection Point.

 

Actual Annual Eligible
Production: The amount, in MWh, of the Actual Eligible
Production during a full Contract Year.

 

Actual Eligible
Production: The amount, in MWh, of the electric energy
produced by the Bid Facility during any period within a Contract Year, measured
at the Injection Point.

 

Actual Production:
The amount, in MWh, of the total electric energy production of the Bid Facility
during any period within a Contract Year.

 

Application Package:
The Application Package document submitted by Seller in response to RFP 1037,
which is incorporated herein, made part hereof, and annexed hereto as Exhibit D.

 

Bid Capacity:
Bid Capacity shall equal the Bid Quantity Percentage multiplied by the
Nameplate Capacity of the Bid Facility. The Bid Capacity under this Agreement
shall be 19.95 MW.

 

Bidder:
An entity submitting an Application Package and Bid Proposal in response to RFP
1037. Such entity need not be the owner of the Bid Facility, but must have
secured rights to the RPS Attributes from the Bid Facility sufficient to
satisfy all performance requirements stated in this RFP and the RPS Standard Form Contract.

 

Bid Facility:
The “Noble Bellmont Windpark” electric generating station that has been
identified and described in the Application Package and Bid Proposal submitted
by Seller to RFP 1037, consisting of a specified Nameplate Capacity of 21 MW.
The Noble Bellmont Windpark is an Intermittent Bid Facility.

 

2

 

Bid Price:
A single fixed production payment, expressed in $/MWh, applicable to each MWh
of RPS Attributes offered as performance throughout the Contract Delivery Term.
For all transactions contemplated and consummated under this Agreement, the Bid
Price shall be $17.75 per MWh.

 

Bid Quantity:
The amount, in MWh, of RPS Attributes the Bid Facility expects to proffer as
performance under the RPS Standard Form Contract over each Contract Year
during the Contract Delivery Term. This number will equal the Expected Annual
Eligible Production multiplied by the Bid Quantity Percentage. The Bid Quantity
must be the same for each Contract Year throughout the Contract Delivery Term.
For all transactions contemplated and consummated under this Agreement, the Bid
Quantity shall be *** MWh.

 

Bid Quantity Percentage:
The percentage of the Bid Facility’s Expected Annual Eligible Production that
will be committed to performance under this Agreement. For all transactions
contemplated and consummated under this Agreement, the Bid Quantity Percentage
shall be *** percent (***%), which Bid Quantity Percentage will be applied to
Actual Eligible Production in any period during the Contract Delivery Term to
establish compliance with contract requirements.

 

Commercial Operation:
A state of operational readiness under which (i) the Bid Capacity is
available and physically able to produce electric energy, and (ii) all
rights, abilities, permits and approvals to schedule and deliver energy to the
Injection Point have been obtained.

 

Commercial Operation
Milestone Date: The Commercial Operation Milestone Date shall
be November 1, 2008.

 

Contract Delivery Term:
The fixed duration of the period of performance under the RPS Standard Form Contract,
which shall commence on the later of (i) January 1, 2008 or, (ii) the
first day of the month after the Bid Facility commences Commercial Operation
and which shall continue thereafter for ten Contract Years.

 

Contract Security:
All amounts provided to NYSERDA by Seller pursuant to Sections 15.01 hereto.

 

Contract Year:
A 12-month period commencing with the beginning of the Contract Delivery Term
and each anniversary thereof within the Contract Delivery Term.

 

Delivery Point:
The Delivery Point shall be the Injection Point.

 

Delivery Requirement:
The mandatory electricity delivery requirement applicable to performance under
this Agreement, as described at Article III hereto.

 

Expected Annual Eligible
Production: The amount, in MWh, of the Expected Average
Annual Production of the Bid Facility, measured at the Injection Point.

 

3

 

Expected Average Annual
Production: The expected electric energy production of the
entire Bid Facility during any Contract Year.

 

External Bid Facility:
Any Bid Facility not located within the New York Control Area (NYCA); such Bid
Facilities are subject to the delivery requirement specified in Article III
(External Bid Facility Delivery Requirements).

 

Injection Point:
The generator bus or location where the administrator of the local control area
measures, or otherwise determines, energy delivery from the Bid Facility into
the local wholesale market.

 

Intermittent Bid Facility:
Intermittent Bid Facilities shall include the following: wind, solar, tidal,
ocean, and run-of-river hydroelectric.

 

Knowledge.
Knowledge shall mean actual knowledge of any officer or manager of Seller, or
the knowledge that any such person would be expected to have after conducting a
reasonable inquiry, whether or not such an inquiry was actually conducted.

 

Nameplate Capacity:
The gross generating capacity of the entire Bid Facility, in MW.

 

New York Control Area
(NYCA): The control area that is under the control of the
NYISO which includes transmission facilities listed in the ISO/TO Agreement
Appendices A-l and A-2, as amended from time-to-time.

 

NYISO:
The New York Independent System Operator, Inc. that administers the
wholesale power markets in New York and manages the physical electrical
operations of the New York Control Area (NYCA).

 

Quantity Obligation:
Shall mean, for any period during the Contract Delivery Term, the number of MWh
calculated as the Bid Quantity Percentage multiplied by the Actual Eligible
Production; subject, however, to adjustments pursuant to Article V
(Adjustments).

 

RPS-eligible Attributes:
Shall mean all environmental characteristics, claims, credits, benefits,
emissions reductions, offsets, allowances, allocations, howsoever
characterized, denominated, measured or entitled, attributable to the
generation of Actual Eligible Production by a Bid Facility. One RPS-eligible
Attribute shall be created upon the generation by a Bid Facility of one MWh of
Actual Eligible Production. RPS-eligible Attributes include but are not limited
to: (i) any direct emissions of pollutants to the air, soil or water; (ii) any
avoided emissions of pollutants to the air, soil or water including but not
limited to sulfur oxides (SOx), nitrogen oxides (NO), carbon monoxide (CO),
particulate matter and other pollutants; (iii) any avoided emissions of
carbon dioxide (CO2), methane (CH4) and other greenhouse
gases (GHGs) that have been or may be determined by the United Nations
Intergovernmental Panel on Climate Change to contribute to the actual or
potential threat of altering the Earth’s climate by trapping heat in the
atmosphere; (iv) all set-aside allowances and/or allocations from
emissions trading programs, including but not limited to allocations available
under 6 NYCRR §§ 204, 237 and 238; and (v)

 

4

 

all credits, certificates,
registrations, recordations, or other memorializations of whatever type or
sort, representing any of the above.

 

RPS-eligible Attributes
do not include (i) any energy, capacity, reliability or other power
products, such as ancillary services; (ii) production tax credits associated
with the construction or operation of the Bid Facility or other financial
incentives in the form of credits, reductions, or allowances associated with
the Bid Facility that are applicable to a state or federal income taxation obligation;
(iii) fuel-related subsidies or “tipping fees” that may be paid to the Seller
to accept certain fuels, or local subsidies received by the generator for the
destruction of particular pre-existing pollutants or the promotion of local
environmental benefits; or (iv) emission reduction credits encumbered or
used by the Bid Facility for compliance with local, state, or federal operating
and/or air quality permits.

 

RPS Attributes:
The RPS-eligible Attributes offered and delivered as performance during the
Contract Delivery Term. See Articles II, III, and IV.

 

Substitute Bid Facility:
Any Bid Facility that has submitted a complete Application Package and has been
qualified through Step One of RFP 1037 and is not committed to perform under a
Standard Form Contract awarded under RFP 1037 or any previous NYS RPS
procurement.

 

Article II

 

Purchase and Sale of Rights to RPS Attributes

 

Section 2.01.
On the terms and subject to the conditions and provisions of this Agreement,
Seller agrees to sell, assign, convey and deliver to NYSERDA, and NYSERDA
agrees to purchase from the Seller, all right, title and interest in the RPS
Attributes associated with the Quantity Obligation of the Bid Facility during
each month of the Contract Delivery Term.

 

Section 2.02.
Such right, title and interest shall include perpetual and exclusive rights to
all RPS Attributes, including but not limited to the exclusive rights to claim,
consistent with New York State Environmental Disclosure rules: (a) that
the energy associated with RPS Attributes was generated by the Bid Facility;
and (b) that New York State and or the RPS Program is responsible for the
reductions in emissions and/or other pollution resulting from the generation of
the Bid Facility’s energy.

 

Section 2.03.
At the time of such sale, assignment and conveyance by Seller to NYSERDA, the
RPS Attributes shall be free and clear of all liens, judgments, encumbrances
and restrictions.

 

Section 2.04.
Assignment and Transfer of Rights to RPS Attributes. The assignment and
transfer (“Transfer”) of RPS Attributes to NYSERDA shall be accomplished
through their inclusion on the Certification and Assignment of Rights Form,
which must accompany each invoice. Should the PSC or NYSERDA create, sanction,
adopt or begin participation in a tracking system for accounting for generation
attributes or certificates associated with generation in the New York Control
Area, Transfer will also include the delivery of the attributes or

 

5

 

certificates associated
with each RPS Attribute, at the earliest time such certificates or attributes
become available for delivery, to an account designated by NYSERDA.

 

Section 2.05.
In the event that Seller must apply for or take some other action under any
emission-trading or other regime other than the NY RPS in order to secure a
claim, title, ownership, or rights of any type, nature or sort to any
RPS-eligible Attributes associated with Quantity Obligations, or any
certification, registration, verification or other memorialization of the
creation of such RPS-eligible Attributes by the Bid Facility to which Seller
may be entitled (Title), Seller shall (i) take all actions necessary to
apply for and secure such Title, to the maximum extent to which Seller is
entitled, (ii) provide NYSERDA with evidence of taking such action; and (iii) Transfer
such Title to NYSERDA whenever so secured.

 

Section 2.06.
NYSERDA’s obligations under this Agreement are expressly conditioned on the
eligibility of Seller’s Bid Facility, at the time of execution of this
Agreement and throughout the duration of the Contract Delivery Term, under the
Main Tier eligibility rules and requirements, as such requirements existed
on December 12, 2006, as originally stated at Appendix C to the September 24,
2004 Order and as modified by subsequent Orders. Bid Facilities selected under
this RFP will not be subject to subsequent changes in RPS eligibility rules;
however, in the event that the Bid Facility fails to maintain eligibility
consistent with the RPS requirements as they existed on December 12, 2006
such ineligibility will extend to the attributes emanating from the Bid
Facility.

 

Section 2.07.
NYSERDA’s obligations to purchase RPS Attributes and to make payment under this
Agreement are conditional on the ability of Seller to demonstrate to the
satisfaction of the DPS that the creation of and title to the RPS-eligible
Attributes is sufficiently verifiable for purposes of the New York
Environmental Disclosure Program. Solely for purposes of this Agreement, RPS
Attributes emanating from Bid Facilities participating in the NEPOOL Generation
Information System or the Pennsylvania-Jersey-Maryland Generation Attribute
Tracking System are deemed sufficiently verifiable for this purpose.

 

Section 2.08.
NYSERDA’s obligations to purchase RPS Attributes and to make payment under this
Agreement are conditional on the commencement by the Bid Facility of Commercial
Operation at a minimum of 80 percent of the Bid Capacity on or before the
Commercial Operation Milestone Date. The Commercial Operation Milestone date
shall be November 1, 2008.

 

Section 2.09.
Subject to authorization by the PSC, NYSERDA shall be free to sell, assign,
transfer or otherwise subject to any encumbrance, any of the RPS Attributes or
the right, title and interest to the RPS Attributes NYSERDA shall acquire under
this Agreement, at any time and from time to time to any entity and on such
terms and conditions as NYSERDA may desire. Any financial or other
consideration received by NYSERDA from any such action shall inure solely to
NYSERDA’s benefit, to be applied as NYSERDA determines as the Central
Procurement Administrator of the RPS Program, and shall not affect the Seller’s
obligations under the terms of this Agreement.

 

6

 

Section 2.10.
Suspension of Performance. Seller may, at its option, and upon
sufficient notice to NYSERDA, suspend its obligation to deliver RPS-eligible
Attributes to NYSERDA. in whole or in part, if such RPS-eligible Attributes are
sold into the New York State voluntary market or pursuant to a New York State
Executive Order 111 or other mandated New York State governmental procurement.
Such notice must be written, as provided under Section 19.01 hereto, must
be provided to NYSERDA at least one month prior to the commencement of the
requested suspension period, must identify the quantity of the RPS-eligible
Attributes as to which delivery is to be suspended and the duration of such
suspension, which shall be no less than six (6) months in duration. The
quantity suspended may be either a specific percentage of the Quantity
Obligation or a specific quantity of RPS Attributes to be suspended each month
during the suspension period; in either case the quantity to be suspended must
exceed the lower of (i) ten percent (10%) of the Bid Quantity or (ii) one
thousand (1,000) RPS-eligible Attributes per month. During each month during
the period of suspension, Seller shall present documentation to NYSERDA
establishing that the RPS-eligible Attributes created during the prior month as
to which delivery has been suspended were either (a) settled into an
account of an entity serving retail load in New York (“LSE”) or otherwise
accounted for as a part of the residual system mix for purposes of the Environmental
Disclosure Program administered by the Department of Public Service, or (b) should
a New York renewable energy generation certificate system (“REC”) or other
automated tracking system enter operation during the suspension period,
documentation from such system administrator verifying the retirement of such
RPS-eligible Attributes and/or RECs into a voluntary customer account in New
York, including accounts associated with compliance with a mandated New York
State governmental procurement. The suspension of RPS-eligible Attributes shall
not relieve or excuse Sellers from compliance with the Delivery Requirement for
suspended RPS Attributes.

 

Section 2.11.
Substitution of Bid Facility. At any time on or before September 1,
2007, Seller may request a novation or modification to this Agreement to
designate one or more Substitute Bid Facilities in replacement of the Bid
Facility designated herein for performance under this Agreement. Such request
must be in writing; consent by NYSERDA will not be unreasonably denied. Consent
by NYSERDA is conditioned on the ability of NYSERDA and Seller to agree upon
modifications to this Agreement necessary to accomplish the substitution.
Should NYSERDA consent to a substitution, all amounts provided by Seller as Contract
Security must remain in force or be replaced prior to the execution of the
novation or other modification. Under no circumstance shall the Bid Quantity be
increased. NYSERDA will not permit the substitution of an External Bid Facility
for a Bid Facility within the NYCA.

 

Article III

 

External Bid Facility Delivery Requirements.

 

Not applicable.

 

7

 

Article IV

 

Payment

 

Section 4.01.
Invoices. Seller shall submit monthly invoices throughout the term of
this Agreement for RPS Attributes created in the prior month during the
Contract Delivery Term. Such invoices shall be addressed to the attention of
“Accounts Payable,” and shall include a statement of the amount due and payable
by NYSERDA to Seller, which amount shall be calculated in accordance with Section 4.02;
such invoices shall also identify any RPS Attributes which Seller wishes to
carry forward to future Contract Years, and may include a request for payment
for RPS Attributes Transferred in prior Contract Years pursuant to Section 4.05.
All such invoices must and shall be accompanied by a completed Certification
and Assignment of Rights Form, in the form provided at Exhibit B hereto,
and must otherwise demonstrate the Transfer of the RPS Attributes. All invoices
must be accompanied by a completed Hourly Data Report.

 

Section 4.02.
Payment. NYSERDA will make payment to Seller of the amount of Quantity
Obligation in MWh invoiced. NYSERDA may adjust payments to subsequent invoices
consistent with NYISO or other local control area billing settlement true-up
procedures, based on actual metered production data measured at the injection
point, actual and verified data reflecting deliveries to the Delivery Point
from the Bid Facility, and/or based on the number of RPS Attributes
Transferred. NYSERDA will not pay for RPS Attributes beyond the maximum it is
required to purchase under this Agreement, in accordance with Sections 4.04 and
4.05. Amounts payable in a given month shall be calculated as the multiplicative
product of (a) the Actual Eligible Production of the Bid Facility during
the prior month; (b) the Bid Quantity Percentage; and (c) the Bid
Price. In addition, payment will be made for RPS Attributes Transferred to
NYSERDA in accordance with Article II during a prior Contract Year, to the
extent such payment is consistent with Section 4.05 hereto.

 

Section 4.03.
Prompt Payment Policy. NYSERDA will make payments to the Seller in
accordance with and subject to its Prompt Payment Policy Statement, attached
hereto as Exhibit F. The Seller shall be notified by NYSERDA in accordance
with Section 5.04.4 of such Exhibit F of any information or
documentation that the Seller did not include with such invoice. Such payments
shall be made by check or wire transfer to an account designated by the Seller.
NYSERDA will not pay any invoice not accompanied by a completed Certification
and Assignment of Rights Form and a completed Hourly Data Report.

 

Section 4.04.
Maximum Commitment/Limitation. The maximum number of RPS Attributes
NYSERDA shall be obligated to purchase under this Agreement shall be equal to
105 percent of the Bid Quantity multiplied by the number of years in the
Contract Delivery Term. The maximum aggregate amount payable by NYSERDA to
Seller hereunder is *** ($***). Should Seller elect to suspend performance
under Section 2.10, such maximum aggregate amounts will be modified by
subtracting any periods of Suspension from the number of Contract Years, and by
reducing the Bid Quantity by the number of RPS Attributes suspended.

 

Section 4.05.
Carry Forward of RPS Attributes. During any Contract Year, the maximum
number of RPS Attributes NYSERDA shall be obligated to purchase under this
Agreement shall be equal to 110% percent of the Bid Quantity. Seller will be
permitted to carry forward RPS

 

8

 

Attributes in excess of
110% of the Bid Quantity for payment in subsequent Contract Years during which
the Quantity Obligation is less than 110 % of the Bid Quantity. All RPS Attributes
that Seller wishes to carry forward to subsequent Contract Years must be
Transferred to NYSERDA during the month following their creation; such RPS
Attributes must be assigned by the Certification and Assignment of Rights Form for
such month (See Section 2.04).

 

Article V

 

Adjustments

 

Section 5.01.
True-Up Adjustments. NYSERDA may adjust payments to subsequent invoices
consistent with NYISO or other control-area billing settlement true-up
procedures, based on actual metered production data reflecting deliveries to
the Delivery Point.

 

Section 5.02.
Other Adjustments. NYSERDA may adjust its contractual Payment
obligations under this Agreement under the following circumstances:

 

(a) Not applicable.

 

(b) Should an
Intermittent Bid Facility’s Quantity Obligation fail to achieve 80% of the Bid
Quantity for three (3) consecutive Contract Years, the Bid Quantity will
be modified for the remainder of the Contract Delivery Term to equal the
average Actual Annual Eligible Production over that three-year period
multiplied by the Bid Percentage.

 

(c) Not
applicable.

 

(d) Not
applicable.

 

(e) Should
Seller fail to reasonably demonstrate, through its submittal of the Economic
Benefits Report as so required by Section 6.03 below, the actualization of
at least *** percent of the sum of the Expected Total Dollars (in dollars per
MW of Bid Capacity) of the projected economic benefits included at Section 3
of the Bid Proposal (Economic Benefits Created by the Bid Facility) ($***x ***
= $***), NYSERDA may reduce the Bid Price payable for the remainder of the
Contract Delivery Term to an amount equal to the Bid Price multiplied by (the
demonstrated amount divided by the Expected Total Dollars). Amounts included by
Seller at Section 3, subsection (a) (Payments to New York State
and/or its Municipalities) that have been or are subject to tax credits under
the New York State Empire Zones program will not be included in, nor will such
amounts be recognized as demonstrated for purposes of, this calculation.

 

9

 

Article VI

 

Records and Reports

 

Section 6.01.
Monthly Reports. Sellers shall submit with each invoice an hourly data
report (“Hourly Data Report”) including hourly electricity generation data
measured at the Injection Point, in Microsoft Excel format or such other format
to be agreed upon. NYSERDA will also require the Seller to provide detailed
monthly market accounting settlement or other pertinent data from the
administrator(s) of the energy market into which energy from the Bid
Facility was delivered and from the administrator of any attribute accounting
system operating in such control area. Seller may be required to waive
confidentiality, as to NYSERDA, for the direct transfer to NYSERDA by an energy
market administrator of transactional and/or delivery information and data
pertinent to the verification of RPS Attribute creation and electricity
delivery.

 

Section 6.02.
Progress Reports.  On a bi-monthly
or more frequent schedule beginning with the Effective Date and continuing
through the commencement of the Contract Delivery Term, Seller shall provide
written reports to NYSERDA, which reports shall be in letter form, and which
shall describe (1) Seller’s progress in obtaining and securing all
required environmental or other permits and/or local approvals; (2) the
status of development and/or construction planning or activities with regard to
the Bid Facility; (3) the status of the interconnection process between
the Bid Facility and the administrator of the control area; and (4) purchases,
delivery, and/or installation of any major equipment associated with the Bid
Facility. Such reports shall also include copies of any permits or approvals
granted and/or copies of any correspondence of any type denying or refusing any
permit or approval.

 

Section 6.03.
Economic Benefits Report. Sellers shall submit a report including
documentation demonstrating the actual economic benefits that resulted from the
construction and operation of the Bid Facility. Such report should include copies
of sufficient records and documentation relating to employment, purchases, and
other payments necessary to demonstrate the economic benefits created by the
Bid Facility under the categories listed under Section 3 of RFP 1037.
Seller will be required to submit such report within sixty (60) days of the
third anniversary of the Commercial Operation Milestone Date.

 

Section 6.04.
Annual Economic Report. Sellers shall submit, annually for the duration
of the Contract Delivery Term, a report identifying the number of short and
long-term jobs actually created as a result of the development, operation
and/or construction of the Bid Facility. Such report shall also include an
accounting of all payments made to any State, municipal or local governmental
entity, and any payments made for the usage of land or fuel purchases. Such
report shall be filed with NYSERDA within sixty (60) days of each anniversary
of the Commercial Operation Milestone Date.

 

Section 6,05.
Additional Documents.  On or
before July 27, 2008, Seller shall provide to NYSERDA:

 

(a) certificates,
dated as of the most recent practicable date prior to the Effective Date,
issued by the Delaware Secretary of State confirming the corporate good
standing of the Seller;

 

(b) a certificate of
an appropriate officer of the Seller, dated as of the Effective Date, in form
and substance reasonably satisfactory to NYSERDA and certifying: (1) the
names

 

10

 

and signatures of the
officers of the Seller authorized to sign a Certification and Assignment of
Rights Form and any other documents to be delivered hereunder, and (2) the
accuracy and completeness of resolutions of the Seller, authorizing and
approving all matters in connection with the transactions contemplated thereby.

 

(c) Seller shall
promptly provide NYSERDA with updated and corrected versions of the
above-referenced certificates upon any change in the information provided
therein.

 

Section 6.06.
Maintenance of Records. The Seller shall keep, maintain, and preserve at
its principal office throughout the term of the Agreement and for a period of
seven (7) years following the expiration of this Agreement, full and
detailed books, accounts, and records pertaining to Seller’s performance under
the Agreement, including without limitation, all bills, invoices, payrolls,
subcontracting efforts and other data evidencing, or in any material way
related to, the direct and indirect costs and expenses incurred by the Seller
in the course of such performance.

 

Article VII

 

Audit

 

Section 7.01.
Audit. NYSERDA shall have the right from time to time and at all
reasonable times during the term of the Agreement and such period thereafter to
inspect and audit any and all books, accounts and records pertaining to
Seller’s performance under this Agreement, at the office or offices of the
Seller where they are then being kept, maintained and preserved. If such books,
accounts and records are not kept at an office within the State of New York,
within a reasonable time of a request by NYSERDA, Seller shall make such books,
accounts and records available to NYSERDA at NYSERDA’s offices or at an agreed
upon location within the State of New York. Any payment made under this Agreement
shall be subject to retroactive adjustment (reduction or increase) regarding
amounts included therein which are found by NYSERDA on the basis of any audit
of the Seller by an agency of the United States, the State of New York or
NYSERDA not to constitute a properly invoiced amount.

 

Section 7.02.
Eligibility Audit. NYSERDA may require periodic audits of the Bid
Facility to verify that the Bid Facility remains eligible under the eligibility
rules and requirements, as such requirements existed on December 12,
2006. Prior to any material modification of the Bid Facility, including but not
limited to any modification that is expected to result in a change in the
Nameplate Capacity of the Bid Facility, Seller shall provide NYSERDA with
written Notice and will provide to NYSERDA a written description of the planned
modification.

 

Article VIII

 

Assignments

 

Section 8.01.
General Restrictions. Except as specifically provided otherwise in this
Article, the assignment, transfer, conveyance, subcontracting or other disposal
of this Agreement

 

11

 

or any of the Seller’s
rights, obligations, interests or responsibilities hereunder, in whole or in
part, without the express consent in writing of NYSERDA shall be void and of no
effect as to NYSERDA. Such consent shall not be unreasonably withheld.

 

Section 8.02.
Seller may, without NYSERDA’s prior written consent, grant a security interest
in or assign this Agreement as collateral in connection with financing
arrangements.

 

Section 8.03.
Either Party may, upon written notice, assign its rights and obligations
hereunder, or transfer such rights and obligations by operation of law, to any
entity with which or into which such Party shall merge or consolidate or to
which such Party shall transfer all or substantially all of its assets,
provided that such other entity agrees to be bound by the terms hereof and
provided further, that such other entity’s creditworthiness is comparable to or
higher than that of such Party at the time this Agreement was executed and such
Party is not relieved of any obligation or liability hereunder as a result of
such assignment.

 

Article IX

 

Seller’s Warranties and Guarantees

 

Section 9.01.
As a material inducement to NYSERDA to enter into this Agreement, Seller makes
the following warranties and guarantees, all of which shall survive the
execution and delivery of this Agreement:

 

(a)       (1) that Seller is a
Delaware limited liability company duly organized, validly existing and in good
standing under the laws of the jurisdiction of its organization; (2) has
or will have all requisite corporate power, and has or will have all material
governmental permits necessary to own its assets or lease and operate its
properties and carry on its business as now being or as proposed to be
conducted, to construct, finance, own, maintain and operate the Bid Facility,
to execute and deliver this Agreement, and to consummate the transactions
contemplated herein; and (3) is qualified to do business and is in good
standing in all jurisdictions necessary for Seller to perform its obligations
under this Agreement.

 

(b)      that the execution, delivery
and performance by Seller, the entry into this Agreement by Seller, and the
consummation of the transactions contemplated by this Agreement: (1) have
been duly authorized by all requisite corporate action (including any required
action of its members); and (2) will not (i) violate any applicable
provision of law, statute, rule, regulation or order of any governmental agency
of which Seller has Knowledge, or any provision of the limited liability
company agreement or other governing documents of Seller; (ii) violate,
conflict with, result in a material breach of or constitute (alone or with
notice or lapse of time or both) a material default or event of default under
any indenture, agreement (including the respective limited liability company
agreements of Seller), mortgage, deed of trust, note, lease, contract or other
instrument to which Seller is

 

12

 

a party or by which it or
any of its property is bound; or (iii) result in the creation or
imposition of any lien upon any property or assets of the Seller.

 

(c)       that the Bid Facility is or
will be eligible under the Order and that it will remain so throughout the
Contract Delivery Term,

 

(d)      that the RPS Attributes, as
to which right and title is to be transferred to NYSERDA under this Agreement,
are eligible and compliant with the Renewable Portfolio Standard;

 

(e)       that the RPS Attributes, as
to which right and title is to be transferred to NYSERDA under this Agreement,
are free and clear of any liens, encumbrances and/or defects of title;

 

(f)       that the RPS Attributes, as
to which right and title is to be Transferred to NYSERDA under this Agreement
shall not have otherwise been, nor will be sold, retired, claimed or
represented as part of electricity output or sales, or used to satisfy
obligations in any other jurisdiction;

 

(g)      that Seller will comply with
all general and special Federal, State, municipal and local laws, ordinances
and regulations, if any, that may in any way affect the performance of this
Agreement;

 

(h)      that this Agreement and each
Certification and Assignment of Rights Form will be duly executed and
delivered by Seller and will constitute the legal, valid and binding obligation
of Seller enforceable against Seller in accordance with the terms thereof;

 

(i)        that the Seller has no
Knowledge of any patent issued under the laws of the United States or any other
matter which could constitute a basis for any claim that Seller’s performance
under this Agreement will infringe any patent or otherwise interfere with any
other right of any Person;

 

(j)        that there are no existing
undisclosed or threatened legal actions, claims, or encumbrances, or
liabilities that may adversely affect Seller’s performance of this Agreement or
NYSERDA’s rights hereunder;

 

(k)       that Seller has no
Knowledge that any information or document or statement furnished by the Seller
in connection with this Agreement contains any untrue statement of a material
fact or omits to state a material fact necessary to make the statement not
misleading under the circumstances in which they were made;

 

(1)       that Seller shall not, and
shall not cause or permit any voluntarily abandonment of the development,
construction or operation of the Facility;

 

13

 

(m)      Seller certifies that all
information provided to NYSERDA with respect to State Finance Law Sections
139-j and 139-k is complete, true and accurate as of the date delivered.

 

Article X

 

NYSERDA’s Warranties and Guarantees

 

Section 10.01.
As a material inducement to Seller to enter into this Agreement, NYSERDA makes
the following warranties and guarantees, all of which shall survive the
execution and delivery of this Agreement:

 

(a)       that NYSERDA is an
instrumentality of the State of New York and a public authority and public
benefit corporation, created under the New York State Public Authorities Law,
validly existing and in good standing under the laws of the State of New York.

 

(b)      that NYSERDA has all
necessary power and authority to execute and deliver this Agreement and all
other agreements contemplated herein and hereby and to consummate the
transactions contemplated hereby and thereby. The execution and delivery by
NYSERDA of this Agreement and all other agreements contemplated herein and
hereby and the consummation of the transactions contemplated hereby and thereby
have been or, if not yet executed and delivered, will be when executed and
delivered, and no other actions or proceedings on the part of NYSERDA are
necessary to authorize this Agreement or any other agreement contemplated
herein and hereby or the consummation of the transactions contemplated hereby
and thereby.

 

(c)       that the execution,
delivery and performance by NYSERDA of this Agreement will not (1) violate
any applicable provision of law, statute, rule, regulation or order of any
governmental agency or, any provision of the Public Authorities Law; (2) violate,
conflict with, result in a material breach of or constitute (alone or with
notice or lapse of time or both) a material default or event of default under
any indenture, agreement, mortgage, deed of trust, note, lease, contract or
other instrument to which NYSERDA is a party or by which NYSERDA or any of its
property is bound; or (3) result in the creation or imposition of any lien
upon any property or assets of NYSERDA. This Agreement will not conflict with
any other agreement or contract to which NYSERDA is a party.

 

(d)      that this Agreement has been
duly executed and delivered by NYSERDA and constitutes the legal, valid and
binding obligation of NYSERDA enforceable against NYSERDA in accordance with
the terms thereof.

 

(e)       that NYSERDA is familiar
with and in compliance with all general and specific laws, except where the
failure to so comply would not result in a material adverse effect on NYSERDA’s
ability to perform its obligations.

 

14

 

(f)       that there is no action,
suit or claim at law or in equity, or before or by a governmental authority
pending or, to the best knowledge of NYSERDA after due inquiry, threatened
against NYSERDA or affecting any of its properties or assets which could
reasonably be expected to result in a material adverse effect on NYSERDA’s
ability to perform its obligations.

 

(g)      that as a public benefit
corporation and instrumentality of the State of New York, NYSERDA may not file,
and is not subject to the involuntary filing of a petition for relief pursuant
to the United States Bankruptcy Code.

 

Article XI

 

Indemnification

 

Section 11.01.
Indemnification. Seller shall protect, indemnify and hold harmless
NYSERDA and the State of New York from and against all liabilities, losses,
claims, damages, judgments, penalties, causes of action, costs and expenses
(including, without limitation, reasonable attorneys’ and/or experts’ fees and
expenses) imposed upon or incurred by or asserted against NYSERDA or the State
of New York resulting from, arising out of or relating to Seller’s performance
under this Agreement. The obligations of Seller under this Article shall
survive any expiration or termination of this Agreement, and shall not be
limited by any enumeration herein of required insurance coverage.

 

Article XII

 

Insurance

 

Section 12.01.
Maintenance of Insurance; Policy Provisions. The Seller, at no cost to
NYSERDA, shall maintain or cause to be maintained, commencing on or before July 15,
2008 and continuing throughout the duration of the Contract Deliver Term,
insurance of the types and in the amounts specified in the Section hereof
entitled Types of  Insurance. All such insurance shall be
evidenced by insurance policies, each of which shall:

 

(a)       name or be endorsed to
cover NYSERDA and the State of New York as additional insureds;

 

(b)      provide that such policy may
not be cancelled or modified until at least 30 days after receipt by NYSERDA of
written notice thereof; and

 

(c)       be reasonably satisfactory
to NYSERDA in all other respects.

 

Section 12.02.
Types of Insurance. Seller shall be required to maintain commercial
general liability insurance for bodily injury liability, including death, and
property damage liability, incurred in connection with the performance of this
Agreement, with minimum limits of $2,000,000 in respect of claims arising out
of personal injury or sickness or death of any one person; $2,000,000 in
respect of claims arising out of personal injury, sickness or death in any

 

15

 

one accident or disaster;
and $2,000,000 in respect of claims arising out of property damage in any one
accident or disaster.

 

Section 12.03.
Delivery of Policies; Insurance Certificates. On or before July 15,
2008, Seller shall deliver to NYSERDA certificates of insurance issued by the
respective insurers, indicating the Agreement number thereon, evidencing the
insurance required by this Article and bearing notations evidencing the
payment of the premiums thereon or accompanied by other evidence of such payment
satisfactory to NYSERDA. In the event that any policy furnished or carried
pursuant to this Article will expire on a date prior to the expiration
date of this Agreement, Seller, not less than 15 days prior to such expiration
date, shall deliver to NYSERDA certificates of insurance evidencing the renewal
of such policies, and Seller shall promptly pay all premiums thereon due. In
the event of threatened legal action, claims, encumbrances, or liabilities that
may affect NYSERDA hereunder, or if deemed necessary by NYSERDA due to events
rendering a review necessary, upon request Seller shall deliver to NYSERDA a
certified copy of each policy.

 

Article XIII

 

Events of Default

 

Section 13.01. Event of
Default. For the purposes of this Agreement, “Event of Default” shall mean
any of the following:

 

(a)       Representations and
Warranties. Any representation or warranty made in this Agreement that
shall prove to have been false or misleading in any material respect as of the
time made or deemed to be made; or

 

(b)       Other Obligations. A
Party shall default in the performance of any of its obligations under this
Agreement and such default shall continue unremedied for a period of 30 days
after Seller receives Notice or otherwise has actual knowledge thereof; or

 

(c)       Voluntary Proceedings.
A Party shall (a) apply for or consent to the appointment of, or the
taking of possession by, a receiver, custodian, trustee or liquidator of itself
or of all or a substantial part of its property; (b) make a general
assignment for the benefit of its creditors; (c) commence a voluntary case
under the Bankruptcy Code; (d) file a petition seeking to take advantage
of any other law relating to bankruptcy, insolvency, reorganization,
winding-up, or composition or readjustment of debts; (e) fail to convert
in a timely and appropriate manner, or acquiesce in writing to, any petition
filed against it in an involuntary case under the Bankruptcy Code; or (f) take
any corporate action for the purpose of effecting any of the foregoing; or

 

(d)       Involuntary Proceedings.
A proceeding or case shall be commenced against a Party, without its
application or consent, in any court of competent jurisdiction, seeking (a) its
liquidation, reorganization, dissolution or winding-up, or the composition or
readjustment of its debts; (b) the appointment of a trustee, receiver,
custodian, liquidator or the like of all or any substantial part of its assets;
or (c) similar relief under any law relating to

 

16

 

bankruptcy, insolvency,
reorganization, winding-up, or composition or adjustment of debts, and such
proceeding or case shall continue undismissed, or an order, judgment or decree
approving or ordering any of the foregoing shall be entered and continue
unstayed and in effect, for a period of 60 or more days; or an order for relief
against a Party, shall be entered in an involuntary case under the Bankruptcy
Code; or

 

(e)       Judgments. A
judgment or judgments for the payment of money in the amount of $1,000,000 or
more shall be rendered by a court or courts against Seller, and the same shall
not be paid or otherwise discharged for a period of more than 60 days unless
such judgment has been stayed, released or vacated; or

 

(f)        Unauthorized Transfer.
The transfer or attempted transfer by Seller to any transferee other than
NYSERDA of any RPS Attribute associated with this Agreement, except as
authorized pursuant to Section 2.10 of this Agreement.

 

(g)       Commercial Operation.
Failure of the Bid Facility to commence Commercial Operation at a minimum of 80
percent of the Bid Capacity on or before the Commercial Operation Milestone
Date.

 

(h)       Abandonment.
Seller’s abandonment of the Facility or its intentional delay of completion of
construction in connection therewith;

 

(i)        Failure to Produce.
The failure of the Quantity Obligation of any Bid Facility to achieve at least
65 percent of the Bid Quantity during any Contract Year.

 

(j)        Failure to Deliver.
Not applicable.

 

(k)       Failure to Transfer RPS
Attributes. The failure by Seller to Transfer rights to NYSERDA in the RPS
Attributes associated with the Quantity Obligation of the Bid Facility, in
conformity with Article II.

 

Section 13.02.
Effect of an Event of Default. In addition to any other remedy available
to it under this Agreement or under applicable Law, upon any occurrence of an
Event of Default, the non-defaulting Party shall be entitled to suspend
performance of its obligations under this Agreement until the earlier of such
time as (a) such Event of Default has been cured, or (b) the
non-defaulting Party has elected to terminate this Agreement pursuant to Article XIV
below.

 

Article XIV

 

Termination

 

Section 14.01.
Termination. This Agreement may be terminated:

 

(a)  at any time by either NYSERDA or
Seller if: (1) an Event of Default occurs (and following the expiration of
any applicable cure period), (2) the Party seeking to terminate

 

17

 

this Agreement hereunder
is the non-defaulting Party, and (3) the non-defaulting Party has not waived
such Event of Default in writing;

 

(b)  at any time by the mutual
written consent of Seller and NYSERDA;

 

(c)  unless otherwise mutually agreed
upon by NYSERDA and Seller in writing, on the expiration of the Contract
Delivery Term (subject to Section 18.03 of this Agreement);

 

(d)  by Seller, on or before July 15,
2007;

 

(e)  by Seller, after January 1,
2008 and on or before January 8, 2008, if: (1) less than 60 percent
of the Bid Capacity of the Bid Facility has commenced Commercial Operation by December 31,
2007; AND (2) the “placed in service” eligibility deadline date under the
Federal Production Tax Credit (see 26
U.S.C. § 45, el seq.) has NOT
been extended beyond December 31, 2007 by at least ten (10) months;

 

(f)   by NYSERDA in the event it is
found that the certification filed by the Seller in accordance with State
Finance Law Sections 139-j and 139-k was intentionally false or intentionally
incomplete;

 

(g)  by NYSERDA in the event it is
found that the certification filed by the Seller in accordance with New York
State Tax Law Section 5-a was intentionally false when made.

 

Section 14.02.
Effect of Termination. Except as otherwise set forth in Section 18.03
below, in the event of a termination of this Agreement as provided in Section 14.01
above, neither Party shall have any further right or obligation hereunder. In
addition, the Parties hereto agree that irreparable damage would occur in the
event that NYSERDA could not obtain rights to RPS Attributes pursuant this
Agreement from the date of Event of Default in which Seller was the Defaulting
Party, and accordingly, each Party hereby agrees that NYSERDA shall be entitled
to elect to compel specific performance of this Agreement to compel the
delivery of Certification and Assignment Forms and Transfer of all RPS-eligible
Attributes that the Bid Facility produces following the date of any termination
for such an Event of Default in accordance with the terms hereof, together with
any other remedy at law or equity available to NYSERDA in connection therewith,
without the necessity of demonstrating the inadequacy of money damages. In
addition, for any termination by NYSERDA or Seller prior to the date of
commencement of Commercial Operations, NYSERDA shall be entitled only to
Stipulated Damages pursuant to Article XV.

 

Section 14.03.
Good Faith Negotiation. Both Parties agree that, should any dispute
arise during the term of this Agreement, the Parties will make a good faith,
though non-binding effort to reconcile any difference or dispute before the
filing of an action in any court.

 

18

 

Article XV

 

Contract Security

 

Section 15.01.
Seller has provided to NYSERDA Contract Security, in the form of cash,
certified funds, or a Letter of Credit conforming to the requirements below, in
an amount equal to the product of (1) Bid Quantity and (2) nine
dollars ($9.00).

 

Section 15.02.
Letter of Credit. A Letter of Credit shall be a clean unconditional and
irrevocable standby letter of credit in favor of NYSERDA as beneficiary, issued
for direct payment by a bank which is a member of the New York Clearinghouse
Association, substantially in the form of the letter of credit attached hereto
as Exhibit C (“Letter of Credit”), in a face amount equal to the Contract
Security Amount, and which Letter of Credit shall provide that the issuing bank
will pay to NYSERDA amounts in aggregate up to that same face amount upon
presentation of only the Sight Draft in the amount to be drawn and the Payment
Certificate, in the form of Annex A and Annex B, respectively, to the Letter of
Credit, and have an expiration date not shorter than one (1) year. Should
the Bid Facility not have commenced Commercial Operation by a date 30 days
prior to the expiration date of the letter of Credit, and Seller not having
provided NYSERDA or arranged with NYSERDA to provide a substitute Letter of
Credit prior to such expiration, NYSERDA shall be thereupon entitled to draw on
the Letter of Credit for the full amount then outstanding and the funds
received shall be held by NYSERDA until a substitute Letter of Credit has been
provided, or for application against subsequent obligations of Seller.

 

Section 15.03.
Replacement. Any assignee within Article VIII of this Agreement
shall, simultaneously with its receipt of the assignment, deliver to NYSERDA a
Replacement Letter of Credit meeting the requirements of this Article, and
NYSERDA shall, within twenty (20) business days after receipt of a compliant
Replacement Letter of Credit, return the original Letter of Credit to Seller.
Upon the failure of an assignee to deliver a compliant Replacement Letter of
Credit to NYSERDA simultaneously with its receipt of the assignment, NYSERDA
shall be thereupon entitled to draw on the Letter of Credit for the full amount
then outstanding and the funds received shall be held by NYSERDA for
application against subsequent obligations of Seller and/or the assignee under
this Agreement.

 

Section 15.04.
Refund of Security. The amount provided by Seller as Contract Security
will be returned or refunded to Seller by NYSERDA as follows:

 

a.         In
the amount of fifty percent (50%) of the amount provided if the Bidder elects
to terminate this Agreement on or before July 15, 2007.

 

b.        In
its entirety if the Bid Capacity of the Bid Facility that enters Commercial
Operation on or before the Commercial Operation Milestone Date is equal to or
greater than the Bid Capacity of the Bid Facility described in the Bid
Proposal.

 

c.        At a
prorated amount if the Bid Capacity of the Bid Facility that enters Commercial
Operation on or before the Commercial Operation Milestone Date is less than the
Bid Capacity of the Bid Facility described in the Bid Proposal. Such amount
that will be returned, expressed as a percentage of the total Contract
Security, will be equal to Bid Capacity of the Bid Facility that enters
Commercial Operation on or before the Commercial Operation Milestone Date
divided by the Bid Capacity of the Bid Facility described in the Bid Proposal.

 

19

 

Section 15.05.
Retention Security. Amounts provided by Seller as Contract Security will
be retained by NYSERDA as follows:

 

a.         In
the amount of (50%) of the amount provided if the Bidder elects to terminate
this Agreement on or before July 15, 2007;

 

b.        At
a prorated amount if the Bid Capacity of the Bid Facility that is in Commercial
Operation on the Commercial Operation Milestone Date is less that the Bid
Capacity of the Bid Facility described in the Bid Proposal. Such amount that
will be retained, expressed a percentage of the total Contract Security, will
be equal to the Bid Capacity of the Bid Facility described in the Bid Proposal
minus the Bid Capacity of the Bid Facility that enters Commercial Operation on
or before the Commercial Operation Milestone Date; divided by the Bid Capacity
of the Bid Facility described in the Bid Proposal.

 

c.         In
its entirety if the Seller elects to terminate the contract under Section 14.01(e) of
the RPS Standard Form Contract.

 

Section 15.06.
Stipulated Damages. NYSERDA and Seller hereby agree, acknowledge and
stipulate that NYSERDA’s retention of amounts provided by Seller as Contract
Security pursuant to Article XV, in the proportions stated within this
Article, is fair and reasonable under the circumstances and in light of the
uncertainty and inability to adequately quantify the harm that would result to
NYSERDA as a result of the events that permit NYSERDA to retain such amounts of
the Contract Security.

 

Article XVI

 

Force Majeure

 

Section 16.01.
Force Majeure. Neither Party hereto shall be liable for any failure or
delay in the performance of its respective obligations hereunder if and to the
extent that such delay or failure is due to a cause or circumstance beyond the
reasonable control of such Party, including, without limitation, acts of God or
the public enemy, expropriation or confiscation of land or facilities,
compliance with any law, order or request of any Federal, State, municipal or
local governmental authority, acts of war, rebellion or sabotage or damage resulting
therefrom, fires, floods, storms, explosions, accidents, riots, or strikes.
Variability in the frequency or force of the wind, of rainfall, or of water
levels will in no event constitute force majeure events. Failure by Seller to
obtain or secure any permit or approval or delay in obtaining any permit or
approval of any sort with regard to Seller’s performance under the Agreement
shall not constitute a force majeure event.

 

Article XVII

 

Compliance with Certain Laws

 

Section 17.01.
Governing Law; Venue. This Agreement shall be governed by,
and construed in accordance with the laws of the State of New York applicable
to contracts executed and to be performed in New York State without regard to
its conflicts of laws principles. The

 

20

 

Parties irrevocably
acknowledge and accept that all actions arising under or relating to this
Agreement, and the transactions contemplated hereby and thereby shall be
brought exclusively in a United States District Court or New York State Court
located in Albany, New York having subject matter jurisdiction over such
matters, and each of the Parties hereby consents to and accepts such personal
jurisdiction of, and waives any objection as to the laying of venue in, such
courts for purposes of such action.

 

Section 17.02.
Laws of the State of New York. Seller shall comply with all of the
requirements set forth in Exhibit A hereto.

 

Section 17.03.
All Legal Provisions Deemed Included. It is the intent and understanding
of the Seller and NYSERDA that each and every provision of law required by the
laws of the State of New York to be contained in this Agreement shall be
contained herein, and if, through mistake, oversight or otherwise, any such
provision is not contained herein, or is not contained herein in correct form,
this Agreement shall, upon the application of either NYSERDA or the Seller,
promptly be amended so as to comply strictly with the laws of the State of New
York with respect to the inclusion in this Agreement of all such provisions.

 

Section 17.04.
Permits and Approvals. The Seller shall be responsible to obtain all
applicable permits and regulatory approvals that may be required in order to
develop and/or operate the Bid Facility over the duration of the Contract
Delivery Term. Neither the RPS Program nor selection under this RFP in any way
replaces or modifies the necessity or applicability of any permit or approval
process by any jurisdiction. NYSERDA’s obligations to make payments to Sellers
will be conditional on the acquisition of all such permits and approvals. Upon
request by NYSERDA Seller must demonstrate such acquisition and/or provide
copies of all permits and approvals acquired. Seller shall provide prompt
Notice to NYSERDA of the initiation of any criminal or regulatory
investigation, hearing, proceeding, or review process (“Process”) by any
federal or State entity regarding any actual or alleged violation of any permit
or approval obtained or applied for with respect to the Bid Facility, as well
as of any modification, penalty and/or fine that may be imposed or occur as a
result of such a Process or violation.

 

Section 17.05.
Other Legal Requirements. The references to particular laws of the State
of New York in this Article and elsewhere in this Agreement are not
intended to be exclusive and nothing contained in such Article, Exhibit and
Agreement shall be deemed to modify the obligations of the Seller to comply
with all legal requirements.

 

Article XVIII

 

Additional Provisions

 

Section 18.01.
Forward Contract. Each Party represents and warrants to the other that
it is a “forward contract merchant” within the meaning of the United States
Bankruptcy Code, that this Agreement is a “forward contract” within the meaning
of the United States Bankruptcy

 

21

 

Code, and that the
remedies identified in this Agreement shall be “contractual rights” as provided
for in 11 U.S.C. § 556 as that provision may be amended from time to time.

 

Section 18.02.
Taxes. Seller shall be responsible for and obligated to pay all present
and future taxes, fees and levies that may be assessed by any entity upon the
Seller’s provision of Attributes to NYSERDA, or with respect to the creation of
the RPS Attributes and/or the energy with which they are associated, up to the
Delivery Point.

 

Section 18.03.
Term. Unless terminated earlier under this Article, this Agreement shall
expire upon the expiration of the Contract Delivery Term, provided that payment
has been made for all RPS Attributes as to which a Certification and Assignment
of Rights Form has been delivered to NYSERDA. Upon such date or upon
earlier Termination of this Agreement under Article XIV, neither Party
shall have any further obligation to the other, except that Sections 11.01,
17.01, 20.01, 21.02, 21.03, 21.04, and NYSERDA’s Payment obligation under Article IV
shall survive.

 

Section 18.04.
Waiver. Either Party to this Agreement may (a) extend the time for
the performance of any of the obligations or other acts of the other Party, (b) waive
any inaccuracies in the representations and warranties of the other Party
contained herein or in any document delivered by the other Party pursuant
hereto, or (c) waive compliance with any of the agreements or conditions
of the other Party contained herein. Any such extension or waiver shall be
valid only if set forth in an instrument in writing signed by the Party to be
bound thereby. Any waiver of any term or condition shall not be construed as a
waiver of any subsequent breach or a subsequent waiver of the same term or condition,
or a waiver of any other term or condition, of this Agreement. No provision of
this Agreement will be deemed to have been waived unless the waiver is in
writing; no delay by NYSERDA in exercising its rights hereunder, including the
right to terminate this Agreement, shall be deemed to constitute or evidence
any waiver by NYSERDA of any right hereunder. The rights granted in this
Agreement are cumulative of every other right or remedy that the enforcing
Party may otherwise have at law or in equity or by statute.

 

Section 18.05.
Independent Contractor. The status of the Seller under this Agreement
shall be that of an independent contractor and not that of an agent, and in
accordance with such status, Seller and its respective officers, agents, employees,
representatives and servants shall at all times during the term of this
Agreement conduct themselves in a manner consistent with such status and by
reason of this Agreement shall neither hold themselves out as, nor claim to be
acting in the capacity of, officers, employees, agents, representatives or
servants of NYSERDA nor make any claim, demand or application for any right or
privilege applicable to NYSERDA, including, without limitation, rights or
privileges derived from workers’ compensation coverage, unemployment insurance
benefits, social security coverage and retirement membership or credit.

 

Section 18.06.
Severability. If any provision of this Agreement shall be declared by
any court of competent jurisdiction to be illegal, void or unenforceable, all
other provisions of this Agreement shall not be affected and shall remain in
full force and effect. If any provision of this Agreement is so broad as to be
unenforceable, that provision shall be interpreted to be only so broad as will
enable it to be enforced.

 

22

 

Section 18.07.
Seller Expense. Seller shall, at its own expense, make all arrangements
necessary to interconnect the Bid Facility with a transmission or distribution
system and to comply with the Delivery Requirement. This requirement
encompasses Seller’s purchasing or arranging for all services including without
limitation transmission, ancillary services, any control area services, line
losses and transaction fees necessary to deliver energy to the New York Control
Area, in accordance with all rules and protocols of the NYISO, throughout
the Contract Delivery Term.

 

Section 18.08.
Environmental Disclosure. At the time of the execution of this
Agreement, New York does not employ any registry for the tracking,
registration, or trading of renewable or environmental attributes or credits,
but rather has instituted the Environmental Disclosure program, under which the
Department of Public Service will conduct Conversion Transactions to accomplish
verification of the transactions consummated hereunder. In the event that an
attribute or credit registry is adopted in the future, Seller and Buyer agree
to: (1) take such steps as are required under such system to continue to
transfer RPS Attributes to NYSERDA in accordance with the terms of this
Agreement; and (2) amend this Agreement as needed to effect its intent and
to comply with any requirements of such attribute or credit registry. Should
the PSC create, sanction, adopt or begin participation in a tracking system for
accounting for attributes or certificates associated with generation in the New
York Control Area, Seller shall deliver the attributes or certificates
associated with each RPS Attribute to an account designated by NYSERDA.

 

Section 18.09.
Covenant. Seller hereby covenants and promises that the Bid Facility is
or will be eligible under the Order and that it will remain so throughout the
Contract Delivery Term.

 

Article XIX

 

Notices, Entire Agreement, Amendment, Counterparts

 

Section 19.01.
Notices. All notices, demands and other communications hereunder shall
be effective only if given in writing and shall be deemed given when (a) delivered
in person, (b) delivered by private courier (with confirmation of
delivery), (c) transmitted by facsimile (with confirmation of
transmission) or (d) five Business Days after being deposited in the
United States mail, first-class, registered or certified, return receipt
requested, with postage paid. For purposes hereof, notices, demands and other
communications shall be sent to the following (or to such other address as the
Seller or NYSERDA shall have furnished to the other party in writing):

 

	
  To Seller:

  	
  Noble Bellmont
  Windpark, LLC

  
	
   

  	
   

  
	
   

  	
  c/o Noble Environmental
  Power

  
	
   

  	
  Attn: Thomas Swank,
  Vice President

  
	
   

  	
  8 Railroad Avenue

  
	
   

  	
  Essex, CT 06426

  
	
   

  	
   

  
	
  With a copy to:

  	
  Latham &
  Watkins, LLP

  
	
   

  	
  Attn: John Sachs

  

 

23

 

	
   

  	
  555 Eleventh Street, NW

  Washington, DC 20004-1304

  
	
   

  	
   

  
	
  To NYSERDA:

  	
  NYSERDA

  Attn:  Office of General Counsel

  17 Columbia Circle

  Albany, New York 12203-6399

  

 

Section 19.02.
Entire Agreement: Amendment. This Agreement embodies the entire
agreement and understanding between NYSERDA and the Seller and supersedes all
prior agreements and understandings relating to the subject matter hereof.
Except as otherwise expressly provided for herein, this Agreement may be
amended, modified, changed, waived, discharged or terminated only by an
instrument in writing, signed by the Party against which enforcement of such
amendment, modification, change, waiver, discharge or termination is sought.

 

Section 19.03.
Counterparts. This Agreement may be executed in counterparts each of
which shall be deemed an original, but all of which taken together shall
constitute one and the same instrument.

 

Article XX

 

Publicity

 

Section 20.01.
Publicity. Seller and/or the Bid Facility owner will collaborate with
NYSERDA’s Communications Unit, or RPS program staff, with regard to the
preparation of any press release, public announcement, publication or media
interview with respect to the Parties’ entry into this Agreement or the subject
matter thereof or which concerns NYSERDA or the RPS Program. Staff can be
contacted by calling 518-862-1090. In any such press release, public
announcement publication, or media interview Seller and/or the Owner of the Bid
Facility and/or its employees shall credit NYSERDA and the funding
participation of the Renewable Portfolio Standard in the activities of the Bid
Facility. Seller will not represent that positions taken or advanced by Seller
represent the opinion or position of NYSERDA or the State of New York.

 

Article XXI

 

Confidentiality

 

Section 21.01.
In order to enable NYSERDA and the administrator of the NYS Environmental
Disclosure Program to verify delivery of RPS Attributes, NYSERDA will require
the Seller to provide detailed monthly market accounting settlement or other
pertinent data from the administrator(s) of the energy market into which
energy from the Bid Facility was delivered. Seller may also be required to
waive confidentiality, as to NYSERDA, for the direct transfer to

 

24

 

NYSERDA by an energy
market administrator of transactional and/or delivery information and data
pertinent to the verification of RPS Attribute creation and delivery.

 

Section 21.02.
Freedom of Information Law. Seller acknowledges that NYSERDA is subject
to and must comply with the requirements of New York’s Freedom of Information
Law (“FOIL;” see Public Officers’ Law Article 6).

 

Section 21.03.
Claim of Confidentiality. Information of any tangible form including any
document that Seller wishes to be protected from disclosure to third parties,
including any information provided as a part of a Bid Proposal Package
submitted in response to RFP 916, must be marked “Confidential” or
“Proprietary” at the time such information is provided to NYSERDA.

 

Section 21.04.
Trade Secrets/Commercial Information. The FOIL Law (Public Officers Law
§ 87(d)(2)) provides an exception to disclosure for records or portions thereof
that “are trade secrets or are submitted to an agency by a commercial
enterprise or derived from information obtained from a commercial enterprise
and which if disclosed would cause substantial injury to the competitive
position of the subject enterprise.” If NYSERDA receives a request from a
third party for information or a document received from Seller and which has
been marked “Confidential” or “Proprietary,” NYSERDA will process such request
under the procedures provided by NYSERDA’s FOIL regulations (see www.nyserda.org/About/NYSERDA.Regulations.pdf).

 

IN WITNESS WHEREOF, the
Parties hereto have caused this Agreement to be executed and delivered by their
duly authorized representatives.

 

	
  NOBLE BELLMONT
  WINDPARK, LLC

  	
   

  	
  NEW YORK STATE ENERGY
  RESEARCH

  AND DEVELOPMENT AUTHORITY

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Thomas F. Swank

  	
   

  	
  By:

  	
  /s/ Robert G. Callender

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name:

  	
  Thomas F. Swank

  	
   

  	
   

  	
  Name:

  	
  Robert G. Callender

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
     Vice
  President

  	
   

  	
   

  	
  Title:

  	
  Vice President for
  Programs

  

 

	
  STATE/PROVINCE OF

  	
  )

  	
   

  
	
   

  	
  )

  	
  SS:

  
	
  COUNTY/CITY OF

  	
  )

  	
   

  

 

25

 

On the 11th
day of July 2008, before me, the undersigned, personally appeared Thomas
Swank, personally known to me or proved to me on the basis of satisfactory
evidence to be the individual(s) whose name(s) is (are) subscribed to
the within instrument and acknowledged to me that he/she/they executed the same
in his/her/their capacity(ies), and that by his/her/their signature(s) on
the instrument, the individual(s), or the person on behalf of which the
individual(s) acted, executed the instrument.

 

	
  /s/ Stephanie Kiem

  	
   

  	
   

  	
   

  
	
  Notary

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  STEPHANIE KIEM

  NOTARY PUBLIC

  MY COMMISSSION EXPIRES
  DEC.31, 2012

  

 

26

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