Document:

Amendment Agreement, dated October 31, 2012, between OrPower 4,Inc. and DEG

 Exhibit 10.2 
 E X E C U T I O N    V E R S I O N 
 Date:
31 October 2012 
 ORPOWER 4 INC. 
 as Company 
 and 

DEG – DEUTSCHE INVESTITIONS- UND 
 ENTWICKLUNGSGESELLSCHAFT MBH 
 as Original Lender 

and 

DEG – DEUTSCHE INVESTITIONS- UND 
 ENTWICKLUNGSGESELLSCHAFT MBH 
 as Global Agent 

 

									
		 	  
	 	
		 		 	
		 	 AMENDMENT AGREEMENT

relating to a COMMON TERMS AGREEMENT
	 	
		 	  
	 	

  

					
		 		 	

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
			
	 1
	  	 INTERPRETATION
	  	 	2	  
			
	 2
	  	 AMENDMENTS TO COMMON TERMS AGREEMENT
	  	 	4	  
			
	 3
	  	 EFFECTIVE DATE
	  	 	4	  
			
	 4
	  	 REPRESENTATIONS AND WARRANTIES
	  	 	4	  
			
	 5
	  	 AMENDMENTS TO LOAN AGREEMENTS
	  	 	5	  
			
	 6
	  	 ACKNOWLEDGEMENT OF FULLY-DRAWN FACILITY
	  	 	7	  
			
	 7
	  	 FEES, COSTS AND EXPENSES
	  	 	7	  
			
	 8
	  	 MISCELLANEOUS
	  	 	7	  
			
	 9
	  	 THIRD PARTIES
	  	 	7	  
		
	 SCHEDULE 1
	  			
		  	 TO AMENDMENT AGREEMENT
	  	 	8	  
		
	 SCHEDULE 2
	  			
		  	 TO THE AMENDMENT AGREEMENT CONDITIONS PRECEDENT
	  	 	9	  
		
	 SIGNATORIES
	  	 	10	  

  

					
		 	-i-	 	

 THIS AGREEMENT is made on 31 October 2012 by and between: 

 

	(1)	ORPOWER 4 INC., a limited liability company incorporated under the laws of the Cayman Islands, with its registered office at PO Box 309, Ugland House, Grand
Cayman KYI-1104, Cayman Islands and registered in the Republic of Kenya as a foreign company having a place of business in the Republic of Kenya under Certificate of Compliance number F.53/98 with its principal office located at Off Moi South Lake
Road, Hellsgate National Park, P.O. Box 1566-20117, Naivasha, Kenya (the “Company”); 

  

	(2)	DEG – DEUTSCHE INVESTITIONS- UND ENTWICKLUNGSGESELLSCHAFT MBH, as the global agent on behalf of the Finance Parties (the “Global Agent”);
and 

  

	(3)	DEG – DEUTSCHE INVESTITIONS- UND ENTWICKLUNGSGESELLSCHAFT MBH as Original Lender, 

 collectively referred to as the “Parties” (or, individually, a “Party”). 
 WHEREAS: 
  

	(A)	The Company, the Global Agent and the Lenders entered into a Common Terms Agreement dated 5 January 2009 pursuant to which the Lenders made available to the
Company a credit facility of US$105,000,000 (the “Common Terms Agreement”). 

  

	(B)	The Company, the Global Agent and the Lenders have agreed to amend the Common Terms Agreement such that the Loans made thereunder are no longer made on a non-recourse,
secured project finance basis to the Company, but are instead converted to an unsecured corporate facility (the “Subordinated Loan Amount”), with the Company’s obligations under the Common Terms Agreement being guaranteed by
the Company’s Affiliate, Ormat Technologies, Inc. (“OTEC”). 

  

	(C)	Certain of the Participants have agreed to be prepaid their Participations under the Finance Documents and The Emerging Africa Infrastructure Fund Limited has agreed to
amend the terms of its participation with the Lenders. 

  

	(D)	The Company, the Lenders and the Global Agent have agreed to enter into this Amendment Agreement in order to amend certain of the terms of the Common Terms Agreement in
order to reflect the prepayments and changes referred to above. 

 NOW IT IS HEREBY AGREED: 

 

	1	INTERPRETATION 

 In this
Amendment Agreement: 
  

	1.1	words and expressions defined in the Common Terms Agreement shall, unless otherwise defined herein, have the same meaning when used herein; 

  

					
		 	-2-	 	

	1.2	the provisions of Clauses 1.1 and 1.2 of the Common Terms Agreement shall also apply in the interpretation hereof as if expressly set out herein with each reference to
the “Agreement” being deemed to be a reference to this Amendment Agreement; and 

  

	1.3	the following expressions shall have the following meanings: 

 “Amended Participation Agreement” means the amended participation agreement dated on or about the date of this Amendment Agreement between DEG as DEG “B” Lender and The Emerging
Africa Infrastructure Fund Limited as Original Participant. 
 “Amendment Documents” means: 

 

	 	(a)	this Amendment Agreement; 

  

	 	(b)	the Amended and Restated Common Terms Agreement; 

  

	 	(c)	the Amended Participation Agreement; 

  

	 	(d)	the Closing Coordination and Escrow Agreement; and 

  

	 	(e)	the Release Documents. 

“Authorised Signatory” in relation to the Company and any communication to be made or document to be executed or
certified by the Company means, at any time, any person: 
  

	 	(a)	who is at such time duly authorised by a resolution of the board of directors of the Company or by virtue of his appointment by the Company to a particular office to
make that communication or to execute or certify that document on behalf of the Company and in respect of whom the Global Agent has received a certificate of a director or the secretary of the Company setting out the name and signature of that
person and confirming that person’s authority so to act; and 

  

	 	(b)	in respect of whom no notice has been received by the Global Agent from the Company to the effect that person is no longer an Authorised Signatory for the Company.

 “Closing Coordination and Escrow Agreement” means the closing coordination and escrow agreement
to be entered into by and among (inter alia) Overseas Private Investment Corporation (“OPIC”), OTEC, Ormat International, Inc., Ormat Holding Corp., OrPower 4 Inc., the Global Agent, BNY Corporate Trustee Services Limited,
Barclays Bank Of Kenya Limited, Commercial Bank of Africa Limited and Union Bank, N.A. 
 “Effective Date” means
the Business Day on which the Global Agent shall have confirmed in writing that it has received all the documents listed in Schedule 2 to this Amendment Agreement and that each such document is, in form and substance, satisfactory to the Global
Agent. 
 “Guarantee” means the guarantee provided by OTEC, to the Global Agent for and on behalf of the
Lenders, dated on or about the date of this Amendment Agreement in respect of the Company’s payment and certain other obligations under the Common Terms Agreement. 

  

					
		 	-3-	 	

 “Subordination Agreement” means the subordination agreement dated on or
about the date of this Amendment Agreement between the Global Agent, the Lenders, the Company and OPIC pursuant to which the Lenders have agreed, inter alia, to subordinate their rights to repayment under the OPIC finance documents.

 “Release Documents” means each of the documents dated on or about the date of this Amendment Agreement
setting out various releases of Participations and Security under the Common Terms Agreement, as set out in Schedule 1 to the Closing Coordination and Escrow Agreement. 

 

	2	AMENDMENTS TO COMMON TERMS AGREEMENT 

  

	2.1	The Parties hereto agree that with effect from the Effective Date the Common Terms Agreement shall be read and construed for all purposes as if it incorporated the
amendments set out in Schedule 1 hereto and shall be deemed to take effect in the form set out in Schedule 1, which for the purposes of this Amendment Agreement shall be known as the “Amended and Restated Common Terms Agreement”.

  

	2.2	The Global Agent hereby confirms that it has been instructed by all the Lenders to sign this Amendment Agreement and to thereby amend the terms of the Amended and
Restated Common Terms Agreement and ancillary Finance Documents and such amendments are binding on all the Finance Parties as such term is defined in the Amended and Restated Common Terms Agreement. 

 

	2.3	This Amendment Agreement will constitute a Finance Document for the purposes of the Amended and Restated Common Terms Agreement. 

 

	2.4	Except as otherwise provided in the Amendment Documents, the Finance Documents remain in full force and effect. 

 

	3	EFFECTIVE DATE 

  

	3.1	Subject to: 

  

	 	(a)	the representations and warranties set out in Clause 4 of this Amendment Agreement being true and accurate; and 

 

	 	(b)	the Global Agent having received the documents set out in Schedule 2 to this Amendment Agreement, 

the amendments to the Common Terms Agreement set out in the Amended and Restated Common Terms Agreement shall take effect on the Effective
Date in accordance with their terms. 

  

					
		 	-4-	 	

	4	REPRESENTATIONS AND WARRANTIES 

  

	4.1	The Company represents and warrants to and for the benefit of the Global Agent on the date hereof and on the Effective Date that: 

 

	 	(a)	It is a company limited by shares and duly incorporated and validly existing under the laws of the Cayman Islands and duly registered as a foreign company having a
place of business in the Republic of Kenya in accordance with Part X of the Kenyan Companies Act and has the corporate power to own its assets, conduct its business as presently conducted or proposed to be conducted and to enter into, and comply
with its obligations under, the Finance Documents to which it is a party. 

  

	 	(b)	It has power to enter into, perform and deliver, and has taken all necessary actions to authorise its entry into, performance and delivery of, each of the Amendment
Documents and to carry out the transactions contemplated by the Amendment Documents to which it is party. 

  

	 	(c)	The obligations of the Company under the Amendment Documents constitute, or will, when executed, constitute valid, legally binding and enforceable obligations of the
Company, enforceable in accordance with their terms except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, liquidation, winding-up or other similar laws of general applicability affecting the enforcement
of creditor’s rights generally. 

  

	 	(d)	Its entry into, exercise of its rights under and performance and compliance with its obligations under the Amendment Documents and the carrying out of the transactions
contemplated by the Amendment Documents do not: 

  

	 	(i)	contravene any law, directive, judgment or order to which it is subject; 

  

	 	(ii)	contravene its memorandum or articles of association; 

  

	 	(iii)	breach any agreement or the terms of any consent to which it is a party or which is binding upon it or any of its respective assets; and 

 

	 	(iv)	oblige it, to create any security or result in the creation of any security over its assets. 

 

	4.2	The Company hereby agrees that each of the representations and warranties which under the terms of Clause 19 of the Common Terms Agreement are deemed repeated on
certain dates shall in addition be deemed repeated on the date of this Amendment Agreement and on the Effective Date. 

  

	5	AMENDMENTS TO LOAN AGREEMENTS 

  

	5.1	The parties hereto agree that with effect from the Effective Date the DEG “A” Loan Agreement and the DEG “B” Loan Agreement shall be amended as
follows: 

  

	 	(a)	The provisions of Clause 4 (Conditions Precedent) and Clause 5 (Disbursement) shall be deleted in their entirety and replaced with: “No longer
applicable”. 

  

	 	(b)	The reference in Clause 6 (Repayment) to Schedule 11 of the Common Terms Agreement shall be amended to be a reference to Schedule 7 of the Amended and Restated
Common Terms Agreement. 

  

					
		 	-5-	 	

	 	(c)	The reference in Clause 10.3 (Commitment Fees) to Clause 10.6 (Monitoring Fees) of the Common Terms Agreement shall be amended to be a reference to Clause
10.2 (Monitoring Fees) of the Amended and Restated Common Terms Agreement. 

  

	 	(d)	All references to the following existing clauses of the Common Terms Agreement included in the DEG “A” Loan Agreement and the DEG “B” Loan Agreement
shall be amended such that they are deemed to be references to the new clause numbers of the Amended and Restated Common Terms Agreement, as set out in the table below: 

 

			
	 Existing reference to a clause in the
Common Terms
Agreement
	  	 New clause reference to a clause in the
Amended and Restated
Common
Terms Agreement

		
	23 (Representations and Warranties)	  	 19

		
	24 (Affirmative Covenants)	  	 20

		
	25 (Negative Covenants)	  	 21

		
	26 (Events of Default)	  	 22

		
	26.1(h) (Expropriation)	  	 22.1(g)

		
	26.1(k) (Insolvency)	  	 22.1(i)

		
	26.1(l) (Winding-Up)	  	 22.1(j)

		
	26.1(m) (Appointment of Officer)	  	 22.1(k)

		
	26.1(n) (Analogous Events)	  	 22.1(l)

		
	27 (Changes to Lenders)	  	 23

		
	28 (Assignments and Transfer by Parties)	  	 24

		
	29.4 (Directions)	  	 25.4

		
	34 (Notices)	  	 30

		
	35.1 (Accounts)	  	 31.1

		
	35.2 (Certificates and Determinations)	  	 31.2

		
	36 (Partial Invalidity)	  	 32

		
	37 (Amendments and Waivers)	  	 33

		
	39 (Counterparts)	  	 35

  

					
		 	-6-	 	

	5.2	Subject to the terms of this Amendment Agreement, the DEG “A” Loan Agreement and the DEG “B” Loan Agreement will remain in full force and effect and
as from the Effective Date. 

  

	5.3	The parties hereto agree that with effect from the Effective Date the Participation Agreement relating to the DEG “B” Loan Agreement shall be amended, as
agreed between the DEG “B” Lender and the Original Participant. 

  

	6	ACKNOWLEDGEMENT OF FULLY-DRAWN FACILITY 

 The Company acknowledges and agrees that the Facility has been fully drawn and no further Disbursements may be made under the Amended and Restated Common Terms Agreement. 

 

	7	FEES, COSTS AND EXPENSES 

  

	7.1	The Company shall pay to the Global Agent a restructuring fee of 0.75% of the Subordinated Loan Amount within ten (10) days after the execution of this Amendment
Agreement. 

  

	7.2	The Company shall, from time to time on demand of the Global Agent, reimburse the Global Agent for all costs and expenses reasonably incurred by the Global Agent in the
negotiation, preparation and execution of the Amendment Documents and the completion of the transactions contemplated herein. 

  

	7.3	The Company shall, from time to time on demand of the Global Agent, reimburse the Global Agent for all costs and expenses (including legal fees and VAT) properly
incurred in or in connection with the preservation and/or enforcement of any of the rights of the Global Agent under the Amendment Documents. 

  

	8	MISCELLANEOUS 

 Clauses 34
(Notices), 36 (Partial Invalidity), 39 (Counterparts), 40 (Governing Law) and 41 (Enforcement) of the Common Terms Agreement shall be deemed incorporated in this Amendment Agreement (with such conforming amendments as the
context requires) as if set out herein. 
  

	9	THIRD PARTIES 

 A person
who is not a party to this Amendment Agreement has no right under the Contracts (Rights of Third Parties) Act 1999 to enforce any of its terms. 

AS WITNESS the hands of the duly authorised representatives of the Parties hereto the day and year first above written 

  

					
		 	-7-	 	

 SCHEDULE 1 
 to Amendment Agreement 

  

					
		 	-8-	 	

 E X E C U T I O N    V E R S I O N 

Date: 31 October 2012
 ORPOWER 4 INC. 
 as Company 

and 

DEG – DEUTSCHE INVESTITIONS- UND 
 ENTWICKLUNGSGESELLSCHAFT MBH 
 as Original Lender 

and 

DEG – DEUTSCHE INVESTITIONS- UND 
 ENTWICKLUNGSGESELLSCHAFT MBH 
 as Global Agent 

 

									
		 	  
	 	
		 		 	
		 	 AMENDED AND RESTATED COMMON TERMS

AGREEMENT
	 	
		 	  
	 	

  

					
		 		 	

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
			
	 1
	  	 DEFINITIONS AND INTERPRETATION
	  	 	6	  
	 1.1
	  	 Definitions
	  	 	6	  
	 1.2
	  	 Construction
	  	 	27	  
	 1.3
	  	 Third Party Rights
	  	 	29	  
			
	 2
	  	 FACILITIES
	  	 	29	  
	 2.1
	  	 General
	  	 	29	  
	 2.2
	  	 Finance Parties’ Rights and Obligations
	  	 	29	  
			
	 3
	  	 PURPOSE
	  	 	30	  
	 3.1
	  	 Purpose
	  	 	30	  
	 3.2
	  	 Monitoring
	  	 	30	  
			
	 4
	  	 CONDITIONS
	  	 	30	  
			
	 5
	  	 DISBURSEMENT
	  	 	30	  
			
	 6
	  	 REPAYMENT
	  	 	30	  
	 6.1
	  	 Repayment of Loans
	  	 	30	  
	 6.2
	  	 Reborrowing
	  	 	30	  
			
	 7
	  	 VOLUNTARY PREPAYMENT AND CANCELLATION
	  	 	31	  
	 7.1
	  	 [Omitted]
	  	 	31	  
	 7.2
	  	 Voluntary Prepayment
	  	 	31	  
	 7.3
	  	 Right of Repayment and Cancellation in Relation to a Single Lender
	  	 	31	  
	 7.4
	  	 Restrictions
	  	 	33	  
			
	 8
	  	 MANDATORY PREPAYMENTS
	  	 	33	  
	 8.1
	  	 Mandatory Prepayment due to Illegality
	  	 	33	  
	 8.2
	  	 Application of Prepayments
	  	 	34	  
			
	 9
	  	 INTEREST AND BREAK COSTS
	  	 	34	  
	 9.1
	  	 Interest
	  	 	34	  
	 9.2
	  	 Break Costs
	  	 	34	  
	 9.3
	  	 Default Interest
	  	 	35	  
	 9.4
	  	 Fixed Rate Loans
	  	 	35	  
	 9.5
	  	 Fixed Rate Basis
	  	 	36	  
	 9.6
	  	 Absence of quotations
	  	 	36	  
	 9.7
	  	 Market disruption
	  	 	36	  
	 9.8
	  	 Alternative basis of interest or funding
	  	 	37	  
			
	 10
	  	 FEES
	  	 	37	  
	 10.1
	  	 Global Agency Fee
	  	 	37	  
	 10.2
	  	 Monitoring Fees
	  	 	37	  

  

					
		 	-i-	 	

							
			
	 11
	  	 TAXES
	  	 	37	  
	 11.1
	  	 Gross-up
	  	 	37	  
	 11.2
	  	 Tax indemnity
	  	 	38	  
	 11.3
	  	 Tax Credit
	  	 	39	  
	 11.4
	  	 Stamp taxes
	  	 	39	  
	 11.5
	  	 Value added taxes
	  	 	39	  
			
	 12
	  	 INCREASED COSTS
	  	 	40	  
	 12.1
	  	 Increased Costs
	  	 	40	  
	 12.2
	  	 Increased Cost Claims
	  	 	41	  
	 12.3
	  	 Exceptions
	  	 	41	  
			
	 13
	  	 OTHER INDEMNITIES
	  	 	41	  
	 13.1
	  	 Currency Indemnity
	  	 	41	  
	 13.2
	  	 Other Indemnities
	  	 	42	  
	 13.3
	  	 Additional Indemnities in Favour of Global Agent
	  	 	43	  
			
	 14
	  	 MITIGATION BY THE FINANCE PARTIES
	  	 	43	  
	 14.1
	  	 Mitigation
	  	 	43	  
	 14.2
	  	 Limitation of Liability
	  	 	44	  
			
	 15
	  	 COSTS AND EXPENSES
	  	 	44	  
	 15.1
	  	 Transaction Expenses
	  	 	44	  
	 15.2
	  	 Amendment Costs
	  	 	45	  
	 15.3
	  	 Enforcement Costs
	  	 	45	  
	 15.4
	  	 Advisors
	  	 	45	  
			
	 16
	  	 FINANCIAL REPORTS
	  	 	46	  
	 16.1
	  	 Financial Information
	  	 	46	  
	 16.2
	  	 Requirements as to Financial Statements
	  	 	46	  
	 16.3
	  	 Change to Accounting Policies
	  	 	47	  
			
	 17
	  	 REPORTING REQUIREMENTS
	  	 	48	  
	 17.1
	  	 Reporting Requirements
	  	 	48	  
	 17.2
	  	 Form of Reports
	  	 	50	  
	 17.3
	  	 Accuracy and Completeness
	  	 	50	  
			
	 18
	  	 EXPERT
	  	 	51	  
	 [Omitted]
	  	 	51	  
			
	 19
	  	 REPRESENTATIONS AND WARRANTIES
	  	 	51	  
	 19.1
	  	 Representations and Warranties
	  	 	51	  
	 19.2
	  	 Lenders’ Reliance
	  	 	55	  
	 19.3
	  	 Repetition
	  	 	56	  
			
	 20
	  	 AFFIRMATIVE COVENANTS
	  	 	56	  
	 20.1
	  	 Affirmative Covenants
	  	 	56	  

  

					
		 	-ii	 	

							
			
	 21
	  	 NEGATIVE COVENANTS
	  	 	61	  
	 21.1
	  	 Negative Covenants
	  	 	61	  
			
	 22
	  	 EVENTS OF DEFAULT
	  	 	63	  
	 22.1
	  	 Events of Default
	  	 	63	  
	 22.2
	  	 Remedies on an Event of Default
	  	 	67	  
	 22.3
	  	 Bankruptcy
	  	 	68	  
			
	 23
	  	 CHANGES TO LENDERS
	  	 	68	  
	 23.1
	  	 Assignments and Transfers by the Lenders
	  	 	68	  
	 23.2
	  	 Procedure for Assignment or Transfer
	  	 	68	  
	 23.3
	  	 Copy of Transfer Certificate to Company
	  	 	70	  
	 23.4
	  	 Limitation of Responsibility of Lenders
	  	 	70	  
	 23.5
	  	 Assignment or transfer fee
	  	 	71	  
			
	 24
	  	 ASSIGNMENTS AND TRANSFERS BY THE PARTIES
	  	 	71	  
			
	 25
	  	 AGENCY PROVISIONS
	  	 	71	  
	 25.1
	  	 Appointment and Duties of the Global Agent
	  	 	71	  
	 25.2
	  	 Relationship
	  	 	72	  
	 25.3
	  	 Delegation
	  	 	72	  
	 25.4
	  	 Directions
	  	 	72	  
	 25.5
	  	 Business with the Group
	  	 	73	  
	 25.6
	  	 Default
	  	 	74	  
	 25.7
	  	 Responsibility
	  	 	74	  
	 25.8
	  	 Information
	  	 	75	  
	 25.9
	  	 Reliance
	  	 	76	  
	 25.10
	  	 Exclusion of Liability
	  	 	77	  
	 25.11
	  	 Compliance
	  	 	77	  
	 25.12
	  	 Relationship with Lenders
	  	 	77	  
	 25.13
	  	 Individual position of the Global Agent
	  	 	78	  
	 25.14
	  	 Lenders’ Indemnity to the Global Agent
	  	 	78	  
	 25.15
	  	 Notice period
	  	 	79	  
			
	 26
	  	 RESIGNATION AND REMOVAL OF AGENTS
	  	 	79	  
	 26.1
	  	 Resignation and Removal of the Global Agent
	  	 	79	  
	 26.2
	  	 Replacement of the Global Agent
	  	 	79	  
	 26.3
	  	 Rights and Obligations
	  	 	80	  
			
	 27
	  	 DISCLOSURE OF INFORMATION
	  	 	80	  
	 27.1
	  	 Disclosure by Finance Parties
	  	 	80	  
	 27.2
	  	 Disclosure by the Company
	  	 	82	  
			
	 28
	  	 CONDUCT OF BUSINESS BY THE FINANCE PARTIES
	  	 	82	  
			
	 29
	  	 PAYMENT MECHANICS
	  	 	83	  
	 29.1
	  	 Payments to Lenders and the Company
	  	 	83	  
	 29.2
	  	 Distributions by the Global Agent
	  	 	83	  

  

					
		 	-iii-	 	

							
	 29.3
	  	 Clawback
	  	 	83	  
	 29.4
	  	 No Set-Off by the Company
	  	 	83	  
	 29.5
	  	 Business Days
	  	 	83	  
	 29.6
	  	 Currency of Account
	  	 	84	  
	 29.7
	  	 Change of Currency
	  	 	84	  
	 29.8
	  	 Partial payments
	  	 	84	  
	 29.9
	  	 Disruption to payment systems
	  	 	85	  
	 29.10
	  	 Timing of payments
	  	 	86	  
			
	 30
	  	 NOTICES
	  	 	86	  
	 30.1
	  	 Communications in Writing
	  	 	86	  
	 30.2
	  	 Addresses
	  	 	87	  
	 30.3
	  	 Delivery
	  	 	88	  
	 30.4
	  	 Use of websites
	  	 	88	  
	 30.5
	  	 Notification of Address, Fax number
	  	 	89	  
	 30.6
	  	 English Language
	  	 	89	  
			
	 31
	  	 CALCULATIONS AND CERTIFICATES
	  	 	90	  
	 31.1
	  	 Accounts
	  	 	90	  
	 31.2
	  	 Certificates and Determinations
	  	 	90	  
	 31.3
	  	 Day Count Convention
	  	 	90	  
			
	 32
	  	 PARTIAL INVALIDITY
	  	 	90	  
			
	 33
	  	 AMENDMENTS AND WAIVERS
	  	 	90	  
	 33.1
	  	 Procedure
	  	 	90	  
	 33.2
	  	 Exceptions
	  	 	90	  
	 33.3
	  	 Waivers and remedies cumulative
	  	 	92	  
			
	 34
	  	 TERMINATION
	  	 	92	  
			
	 35
	  	 COUNTERPARTS
	  	 	92	  
			
	 36
	  	 GOVERNING LAW
	  	 	92	  
			
	 37
	  	 ENFORCEMENT
	  	 	92	  
	 37.1
	  	 Jurisdiction
	  	 	92	  
	 37.2
	  	 Arbitration
	  	 	93	  
	 37.3
	  	 Service of Process
	  	 	94	  
	 37.4
	  	 Waiver
	  	 	94	  
			
	 38
	  	 ENTIRE AGREEMENT
	  	 	95	  
		
	 SCHEDULE 1
	  			
		  	 The Original Lenders
	  	 	96	  
		
	 SCHEDULE 2
	  			
		  	 Conditions of Disbursement
	  	 	97	  

  

					
		 	-iv-	 	

							
		
	 SCHEDULE 3
	  			
		  	 Form of Transfer Certificate
	  	 	98	  
		
	 SCHEDULE 4
	  			
		  	 Form of Accession Letter
	  	 	100	  
		
	 SCHEDULE 5
	  			
		  	 HIV Protective Measures
	  	 	102	  
		
	 SCHEDULE 6
	  			
		  	 Form of Operating Report
	  	 	103	  
		
	 SCHEDULE 7
	  			
		  	 Repayment Schedule
	  	 	112	  
		
	 SCHEDULE 8
	  			
		  	 Corporate Structure Chart
	  	 	113	  
		
	 SCHEDULE 9
	  			
		  	 Form of Financial Statements
	  			
		  	 Part 1
	  			
		  	 Form of Unaudited Financial Statements for Company
	  	 	114	  
		
	 Part 2
	  			
		  	 Form of Audited Financial Statements for Kenyan Branch
	  	 	116	  
		
	 Part 3
	  			
		  	 Form of Audited Financial Statements for Company
	  	 	117	  
		
	 SCHEDULE 12
	  			
		  	 Calculation of the Mandatory Cost
	  	 	121	  
		
	 SCHEDULE 13
	  			
		  	 Form of Operating Budget
	  	 	124	  
		
	 SCHEDULE 14
	  			
		  	 Form of Environmental and Social Action Plan
	  	 	126	  

  

					
		 	-v-	 	

 AMENDED AND RESTATED COMMON TERMS AGREEMENT 

THIS AGREEMENT by and between 
  

	(1)	ORPOWER 4 INC., a limited liability company incorporated under the laws of the Cayman Islands, with its registered office at PO Box 309, Ugland House, Grand
Cayman, KYI-1104, Cayman Islands and registered in the Republic of Kenya as a foreign company having a place of business in the Republic of Kenya under Certificate of Compliance number F.53/98 with its principal office located at Off Moi South Lake
Road, Hellsgate National Park, P.O. Box 1566-20117, Naivasha, Kenya (the “Company”); 

  

	(2)	DEG – DEUTSCHE INVESTITIONS- UND ENTWICKLUNGSGESELLSCHAFT MBH, as the global agent on behalf of the Finance Parties (the “Global Agent”);
and 

  

	(3)	the LENDERS, as defined herein, 

collectively referred to as the “Parties” (or, individually, a “Party”). 

WHEREAS: 
  

	(A)	The Company has entered into a Power Purchase Agreement with KPLC in relation to the sale of capacity and energy at the Plant, to be constructed, developed and operated
pursuant to various agreements entered into by the Company in respect of the Project. 

  

	(B)	The Parties to this Agreement have agreed to enter into this Agreement to record the common terms and conditions on which the Lenders propose to make available to the
Company certain loan facilities (each of which will be recorded in a separate Loan Agreement) in relation to the Project. 

NOW, THEREFORE, the parties agree as follows: 
 IT IS AGREED as follows: 
  

	1	DEFINITIONS AND INTERPRETATION 

  

	1.1	Definitions 

 In this Agreement:

 “Accession Letter” means a document substantially in the form set out in Schedule 4 (Form of Accession
Letter). 
 “Accounting Principles” means GAAP or IFRS, as the case may be, in each case consistently
applied. 

  

					
		 	6	 	

 “Affiliate” means a Subsidiary or a Holding Company of a Person or any
other Subsidiary of that Holding Company. 
 “Agreement” means this Amended and Restated Common Terms Agreement,
together with its Schedules. 
 “Annual Environmental and Social Monitoring Report” means the annual monitoring
report to be provided by a NEMA-approved consultant acceptable to the Global Agent (acting on the instructions of the Lenders) describing the environmental and social performance of the Company, demonstrating compliance by the Company with the
Environmental and Social Requirements and, if the Company fails to comply with the Environmental and Social Requirements detailing such non-compliance together with the action being taken to remedy such failure. 

“Auditors” means PricewaterhouseCoopers or such other firm as the Company appoints from time to time as its auditors in
accordance with Clause 20.1(e) (Auditors). 
 “Authorisations” means any consent, registration, filing,
agreement, notarisation, certificate, licence, approval, permit, authority or exemption from, by or with any Authority, whether given by express action or deemed given by failure to act within any specified time period and all corporate,
creditors’ and shareholders’ approvals or consents. 
 “Authorised Representative” means any natural
person who is duly authorised by any Person to act on its behalf for the relevant purposes and, in the case of the Company, who is an officer of the Company and whose name and a specimen of whose signature has been most recently delivered by the
Company to the Global Agent. 
 “Authority” means: 

 

	 	(a)	any national, supranational, regional or local government or governmental, administrative, fiscal, judicial or government owned body, department, political subdivision,
instrumentality, agency, regulatory authority, corporation or commission, court or tribunal; or 

  

	 	(b)	any Person, whether or not government owned or controlled and howsoever constituted or called, that exercises the functions of a central bank. 

  

					
		 	7	 	

 “Availability Period” means, in respect of each Facility, the period from
and including the date of this Agreement to and including the earliest of: 
  

	 	(a)	three Months immediately prior to the First Repayment Date or such longer period as the Global Agent (acting on the instructions of the Lenders) may agree in respect
the Facilities; 

  

	 	(b)	twelve Months after Financial Close; and 

  

	 	(c)	the first Business Day on which the Available Commitment of such Facility is zero. 

“Available Commitment” means, in respect of each Lender under its relevant Facility, that Lender’s Commitment minus:

  

	 	(a)	the amount of any Loans made available by that Lender or, where relevant, its participation in any Loans made available under the relevant Facility; and

  

	 	(b)	in relation to any proposed Disbursement, the amount of any Loans or, where relevant, its participation in such Loans which have been or are due to be made on or before
the proposed Disbursement Date under the relevant Facility. 

 “Available Facility” means, in
respect of any Facility, the aggregate for the time being of the Available Commitment of each of the Lenders making or participating in Loans under that Facility. 
 “Base Equity Amount” means the aggregate equity investment from the Shareholders from time to time being the aggregate amount paid in consideration for the issue of equity share capital,
share premium account, retained earnings of the Company and the aggregate principal amount of subordinated loans made available to the Company. 
 “Basic Terms and Conditions of Employment” means wage, working hours, labour contract and occupation health and safety issues based on the relevant ILO Conventions 26 and 131
(Remuneration) 1 (working hours) and 155 (Health and Safety) and recommendations. 
 “Break Costs” means in
respect of the Loans other than any Fixed Rate Loan, the amount (if any) by which (i) the interest which a Lender should have received for the period from the date of receipt of all or any part of such Loan or its participation in such Loan or
Unpaid Sum (as applicable) to the last day of the Interest Period (had the principal amount or Unpaid Sum (as applicable) been paid on the last day of the Interest Period) exceeds (ii) the amount which such Lender would be able to obtain by
placing an amount equal to the principal amount or Unpaid Sum (as applicable) received by it on deposit with a leading bank in the Interbank Market for a period starting on the Business Day following receipt or recovery and ending on the last day of
the Interest Period. 

  

					
		 	8	 	

 “Business Day” means a day (other than a Saturday, Sunday or any other day
which is a legal holiday) on which banks are open for general business in: 
  

	 	(a)	London, New York, Nairobi, Mauritius and Frankfurt; and 

  

	 	(b)	solely for the purposes of: 

  

	 	(i)	the giving of notices to or by; 

  

	 	(ii)	the giving of any instruction by; or 

  

	 	(iii)	the granting of any waiver or consent by, 

 each Lender, in their respective principal place of doing business. 
 “CER
Documents” means any documents in respect of the sale or commercialising of Certified Emissions Reductions in relation to the Project entered into by the Company prior to the date hereof with the approval of the Global Agent, or after the
date hereof, in accordance with the OPIC Finance Agreement. 
 “Certified Emissions Reductions” means a unit
issued pursuant to Article 12 of the Kyoto Protocol as well as all other relevant international agreements and resolutions and is equal to one metric tonne of Carbon Dioxide Equivalent, calculated in accordance with such agreements and resolutions.

 “Charter Documents” means with respect to any Person, its constitutive documents, including, where relevant,
its memorandum and articles of association and a certificate of good standing. 
 “Commitment” means:

  

	 	(a)	in relation to an Original Lender, the amount set opposite its name under the heading “Commitment” in Schedule 1 (The Original Lenders) and the
amount of any other Commitment transferred to it under this Agreement and the relevant Loan Agreement; and 

  

	 	(b)	in relation to any other Lender, the amount of any Commitment under any Facility transferred to it in accordance with the relevant Loan Agreement and the Finance
Documents, 

 in each case to the extent not cancelled, reduced or transferred by it under the Finance Documents.

 “Company’s Legal Counsel” means Chadbourne & Parke LLP and the Company’s Kenyan Counsel or
such other legal counsel as the Company may choose with the consent of the Global Agent (acting on the instructions of the Lenders) (such consent not to be unreasonably withheld or delayed). 

  

					
		 	9	 	

 “Company’s Kenyan Counsel” means Kaplan & Stratton or such
other legal counsel as the Company may choose with the consent of the Global Agent (acting on the instructions of the Lenders) (such consent not to be unreasonably withheld or delayed). 

“Confidentiality Undertaking” means a confidentiality undertaking in a recommended form of the LMA or such other form as
the Company and the Global Agent (acting on the instructions of the Lenders) may agree. 
 “Control” means the
possession, directly or indirectly, by a Person or group of Persons acting in concert, of the power to direct or cause the direction of the management and policies of another Person, through the ownership of voting securities, enforceable voting
arrangements or by contract, in respect of both ordinary and extraordinary matters including reorganization, restructuring, and the amendment of that Person’s memorandum and articles of association or other constitutive documents; and
“Controlled” and “Controlling” shall be construed accordingly. 
 “Corporate Structure
Chart” means the chart set out in Schedule 8 (Corporate Structure Chart). 
 “Debt” means any
indebtedness of the Company for or in respect of: 
  

	 	(a)	moneys borrowed; 

  

	 	(b)	any acceptance credit (including any dematerialised equivalent); 

  

	 	(c)	any bond, note, debenture, loan stock or other similar instrument; 

  

	 	(d)	any redeemable preference share; 

  

	 	(e)	any agreement treated as a finance or capital lease in accordance with the Accounting Principles; 

 

	 	(f)	receivables sold or discounted (other than any receivables to the extent they are sold on a non-recourse basis); 

 

	 	(g)	the acquisition cost of any asset or service to the extent payable before or after its acquisition or possession by the party liable where the advance or deferred
payment: 

  

	 	(i)	is arranged primarily as a method of raising finance or of financing the acquisition of that asset or service or construction of that asset or service; or

  

	 	(ii)	involves a period of more than three months before or after the date of acquisition or supply; 

  

					
		 	10	 	

	 	(h)	any Derivative Transaction (and, when calculating the value of that Derivative Transaction, only the marked to market value (or, if any actual amount is due as a result
of the termination or close-out of that Derivative Transaction, that amount) shall be taken into account); 

  

	 	(i)	any other transaction (including any forward sale or purchase agreement) which has the commercial effect of a borrowing and would be classified as a borrowing under the
Accounting Principles; 

  

	 	(j)	any counter-indemnity obligation in respect of any guarantee, indemnity, bond, letter of credit or any other instrument issued by a bank or financial institution; or

  

	 	(k)	any guarantee, indemnity or similar assurance against financial loss of any person in respect of any item referred to in the above paragraphs. 

“Debt Service Obligations” means all loans, advances, debts, liabilities and obligations, howsoever arising, owed by the
Company under a Finance Document, or otherwise to any lender or financial institution of every kind and description (whether or not evidenced by any note or instrument), direct or indirect, absolute or contingent, due or to become due, now existing
or hereafter arising, pursuant to the terms of this Agreement, any of the other Finance Documents, or any other loan or finance document including all interest, fees (including fees payable to the agents or other financial institutions), charges,
expenses, attorneys’ fees and accountants’ fees chargeable to the Company in connection with any dealings of the Company with a financial institution and payable by the Company hereunder or under a loan agreement or other finance document
evidencing any kind of Debt of the Company. 
 “Default” means an Event of Default or any event or circumstance
which would, with the expiry of any applicable grace period or other lapse of time, the giving of any applicable notice, the making by a Finance Party of any applicable determination under the Finance Documents or any combination of any of the
foregoing, be an Event of Default. 
 “DEG” means DEG- Deutsche Investitions- und Entwicklungsgesellschaft mbH.

 “DEG “A” Facility” means the “A” loan facility to be made available to the Company under
the DEG A Loan Agreement. 
 “DEG “A” Lender” means: 

 

	 	(a)	the Original Lender under the DEG “A” Facility; and 

  

	 	(b)	any New Lender under the DEG “A” Facility, 

 and in each case which has not ceased to be a Party hereto in accordance with the terms of the Finance Documents. 

  

					
		 	11	 	

 “DEG A Loan” means a loan made by a DEG A Lender. 

“DEG A Loan Agreement” means the loan agreement between the Company, the Global Agent and DEG in relation to the DEG A
Loan. 
 “DEG “B” Facility” means the “B” loan facility to be made available to the Company
under the DEG B Loan Agreement. 
 “DEG “B” Lender” means: 

 

	 	(a)	any Original Lender under the DEG “B” Facility; and 

  

	 	(b)	any New Lender under the DEG “B” Facility, 

 and in each case which has not ceased to be a Party hereto in accordance with the terms of the Finance Documents. 
 “DEG B Loan” means a loan made by a DEG B Lender. 
 “DEG B
Loan Agreement” means the loan agreement between the Company, the Global Agent and DEG in relation to the DEG B Loan. 

“DEG Loans” means the DEG A Loan and the DEG B Loan. 

“Derivative Transaction” means any swap agreement, cap agreement, collar agreement, futures contract, forward contract or
similar arrangement with respect to interest rates, currencies or commodity prices. 
 “Disbursement” means a
disbursement of any Facility. 
 “Disbursement Date” means the date of a Disbursement, being the date on which
the relevant Loan is actually made. 
 “Disruption Event” means: 

 

	 	(a)	a material disruption to the payment or communications systems or to the financial markets which are required to operate in order for payments to be made (or other
transactions to be carried out) in connection with the transactions contemplated by the Finance Documents, which is not caused by, and is beyond the control of, any of the Parties; or 

 

	 	(b)	the occurrence of any other event which results in a disruption (of a technical or systems-related nature) to the treasury or payments operations of a Party preventing
it, or any other Party from: 

  

	 	(i)	performing its payment obligations under the Finance Documents; or 

  

	 	(ii)	communicating with other Parties under the Finance Documents, 

  

					
		 	12	 	

 and which is not caused by, and is beyond the control of, the Party whose operations are
disrupted. 
 “Distribution” means any: 

 

	 	(a)	dividends or other distribution (in cash or in kind) or any other payment by way of return on capital of, or other investment in, the Company, including any payments in
respect of any Shareholder Debt; or 

  

	 	(b)	any cancellation, repayment, redemption (including redemption of Shares), repurchase or return of the capital of the Company. 

“EAIF” means The Emerging Africa Infrastructure Fund Limited, a company incorporated under the laws of Mauritius with its
registered office at c/o Standard Bank Trust Company (Mauritius) Limited, 10th Floor, 1 CyberCity, Ebene, Mauritius. 

“EFP” means European Financing Partners. 
 “EIB” means European Investment Bank. 
 “Environmental and
Social Management Plan” means the plan to be prepared by the Company detailing the mitigation measures and monitoring to be undertaken so as to ensure effective implementation of the Environmental and Social Requirements and the
environmental and social action plan as set out in Schedule 14 (Form of Environmental and Social Management Plan) and the maintenance of an environmental/occupational health & safety/community management system according to ISO
14001/OHSAS 18001. 
 “Environmental and Social Requirements” means: 

 

	 	(a)	the IFC Performance Standards; 

  

	 	(b)	the Equator Principles; 

  

	 	(c)	the IFC Environmental, Health and Safety Guidelines; 

  

	 	(d)	the Environmental Laws; 

  

	 	(e)	the terms and standards as set out in any ILO convention signed and ratified by Kenya, as well as ILO Core Labour Standards as set out in ILO Declaration on Fundamental
Principles and Rights at Work from 1998 and the Basic Terms and Conditions of Employment; 

  

	 	(f)	any Authorisations pertaining to environmental, social, and occupational health and safety aspects of the Project; and 

 

	 	(g)	any provisions of this Agreement relating to environmental, social and occupational health and safety aspects of the Project. 

  

					
		 	13	 	

 “Environmental Impact Assessment” means the environmental impact assessment
in respect of the Project dated 27 June 2007 as amended or supplemented in accordance with applicable Environmental and Social Requirements. 
 “Environmental Laws” means all laws and regulations of any Kenyan Authority (including any relevant international treaty obligations) relating to any of the following topics: air
emissions, discharges to surface or ground water, noise emissions, solid or liquid waste disposal, the generation, use, handling treatment, storage, transportation or disposal of toxic or hazardous substances or wastes, nuisance, the conservation or
protection of the environment, ecosystems and living organisms, cultural property, indigenous peoples, resettlement, child labor and forced labor, public health and occupational health and safety. 

“Event of Default” means any event or circumstance specified as such in Clause 22.1 (Events of Default).

 “Extraordinary Commercial Expenses” means, as applicable, any commission not referred to in the Finance
Documents or which does not result from a valid agreement entered into in connection with the transactions contemplated by such Finance Documents, any commission which does not cover an actual and legitimate service provided, any commission paid in
a tax haven, any commission paid to a beneficiary which is not clearly identified or to a company which could be considered as a sham company or which is set up to disguise the ultimate beneficiary. For the avoidance of doubt, payments made by or on
behalf of the Company in or to the Cayman Islands (whether originating in or outside the Cayman Islands) for the benefit of any third party as compensation for legitimate services provided to the Company by such third party shall not constitute
“commission paid in a tax haven” (provided that such payment does not amount to a Prohibited Act nor to drug trafficking, fraud related to the financial interests of the European Union, corruption, bribery, organised crime, criminal
activities or terrorism). 
 “Facilities” means, together, the DEG “A” Facility and the DEG
“B” Facility and each such facility being a “Facility”. 
 “Facility Office” means:

  

	 	(a)	in respect of an Original Lender, the office set out in Clause 30.2 (Addresses); or 

 

	 	(b)	the office notified by a Lender to the Global Agent by not less than seven (7) days’ notice, 

  

					
		 	14	 	

 as the office or offices through which it will perform its obligations under the Finance
Documents. 
 “Fee Letters” means any fee letter delivered pursuant to Clause 10 (Fees), together with
any other fee letter or other document entered or to be entered into between the Company and any Finance Party, evidencing fees payable to any Finance Party in connection with the Project. 

“Final Repayment Date” means 15th December 2018. 
 “Final Termination Date” means the date on which all of the obligations of the Company under all Finance Documents have been finally and indefeasibly discharged in full. 

“Finance Documents” means: 
  

	 	(a)	this Agreement; 

  

	 	(b)	the Guarantee; 

  

	 	(c)	the Subordination Agreement; 

  

	 	(d)	each Loan Agreement; and 

  

	 	(e)	each Fee Letter, 

 together with
any other documents, agreements or other contracts designated as such from time to time by the Global Agent (acting on the instructions of the Lenders) and the Company. 
 “Finance Parties” means each Lender and the Global Agent and each such Party shall be a “Finance Party”. 

“Financial Close” means the satisfaction (or waiver) in accordance with the terms of the Finance Documents of all
conditions to the making (or as the context may require, the proposed making) of the first Disbursement of the DEG A Loan and the DEG B Loan. 
 “Financial Reports” means the financial reports provided to the Global Agent under Clause 16.1 of this Agreement. 
 “Financial Year” means the accounting year of the Company commencing each year on January 1 and ending on the following December 31, or such other period as the Company may
designate as its accounting year from time to time in accordance with the OPIC Finance Agreement. 
 “Financing
Partners” means EIB and each of the relevant committing partners of EFP. 

  

					
		 	 15
	 	

 “Financing Principal” means principal amounts payable by the Company under
the Finance Documents. 
 “First Repayment Date” means 15th December 2009. 

“Fixed Interest Rate” means, in relation to any Loan the rate determined by the Lenders for a period up to the Final
Repayment Date (as certified by the Global Agent acting on the instructions of the Lenders in the applicable Fixed Rate Loan) on the Quotation Day for the period of the Fixed Rate Loan as determined pursuant to Clause 9.4 (Fixed Rate Loans).

 “Fixed Rate Break Costs” has the meaning given to such term in each Loan Agreement. 

“Fixed Rate Loan” means a Loan on which the rate of interest is calculated in accordance with Clause 9.4 (Fixed Rate
Loans). 
 “GAAP” means the generally accepted accounting principles of the United States of America from
time to time. 
 “Guarantee” means the guarantee provided by the Guarantor to the Global Agent for the benefit
of the Lenders, dated on or about the date of this Agreement in respect of the Company’s payment and certain other obligations under this Agreement. 
 “Guarantor” means Ormat Technologies, Inc., a corporation organized and existing under the laws of the State of Delaware. 

“Holding Company” means, in relation to a company or corporation, any other company or corporation in respect of which
such company or corporation is a Subsidiary. 
 “IFC” means the International Finance Corporation with its
headquarters at 2121 Pennsylvania Avenue, NW Washington, DC 20433, USA. 
 “IFC Environmental, Health and Safety
Guidelines” means the following guidelines issued by IFC: 
  

	 	(a)	the Environmental, Health and Safety Guidelines for Geothermal Power Generation dated April 30, 2007; and 

 

	 	(b)	the General Environmental Health and Safety Guidelines dated April 30, 2007, 

 copies of which have been delivered to, and receipt of which has been acknowledged by, the Company and which are incorporated herein by reference. 

  

					
		 	16	 	

 “IFC Performance Standards” means those performance standards published by
IFC on its website (www.ifc.org) which define clients’ roles and responsibilities for managing their projects, including requirements to disclose information. 
 “IFRS” means accounting principles and practices generally accepted internationally as published by the International Accounting Standards Board consistently applied. 

“ILO” means International Labour Organisation with its headquarters at 4 Route des Morillions, CH-1211 Genève 33,
Switzerland. 
 “ILO Core Labour Standards” means the core labour standards as set out in the ILO Conventions 29
and 105 (on Forced Labour), ILO Conventions 138 (on Minimum Age) and 182 (on Worst Forms of Child Labour), ILO Conventions 100 and 111 (on Non-Discrimination), and ILO Conventions 87 and 98 (on Freedom of Association and Collective Bargaining.

 “Increased Costs” has the meaning given to such term in Clause 12.1(b) (Increased Costs). 

“Interbank Market” means the London interbank market. 

“Interim Quarterly Date” means March 15 and September 15 of each year, commencing with the first such date
following the initial disbursement under the OPIC Finance Agreement. 
 “Interest Payment
Date” means 17th June and 17th December. 

“Interest Period” in relation to a Facility has the meaning given to such term in the Loan Agreement relating to such
Facility. 
 “Kenya” means the Republic of Kenya. 

“Kenyan Companies Act” means the Companies Act, Chapter 486 of the Laws of Kenya. 

“KfW” means Kreditanstalt für Wiederaufbau, a public law institution (Anstalt des Öffentlichen Rechts) having
its seat at Palmengartenstrasse 5-9, 60325 Frankfurt am Main, Germany. 
 “KfW Bankengruppe” means KfW, DEG, KfW
IPEX-Bank GmbH and such further entities as listed on the website of the KfW Bankengruppe (www.kfw.de). 

“KPLC” means the Kenya Power & Lighting Company Ltd, a limited liability company established under the
Electricity Act of Kenya. 

  

					
		 	17	 	

 “Kyoto Protocol” means the protocol to the UNFCCC adopted at the Third
Conference of the Parties to the UNFCCC in Kyoto, Japan on 11 December 1997 as may be amended from time to time; 

“Legal Reservations” means any principles of law which are set out or described in the legal opinions delivered to the
Global Agent in relation to the first disbursement under the Loans. 
 “Lender” means: 

 

	 	(a)	any Original Lender; and 

  

	 	(b)	any bank or financial institution which has become a Party hereto and to any Loan Agreement in accordance with Clause 23 (Changes to Lenders),

 and in each case which has not ceased to be a Party hereto in accordance with the terms of the Finance
Documents. 
 “Lenders’ Cayman Counsel” means Conyers, Dill & Pearman or such other legal counsel
as the Global Agent (acting on the instructions of the Lenders) may appoint with the consent of the Company (such consent not to be unreasonably withheld or delayed). 
 “Lenders’ Engineer” means Shaw Group, Inc. acting together with GeothermEx or such other engineer or engineers as the Global Agent (acting on the instructions of the Lenders) may
appoint with the consent of the Company (such consent not to be unreasonably withheld or delayed). 
 “Lenders’
External Advisers” means the Lenders’ Engineer, the Lenders’ Legal Counsel, the Lenders’ Kenyan Counsel, the Lenders’ New York Counsel, the Tax Consultant, the Lenders’ Cayman Counsel and any other professional
advisers appointed from time to time by any of the Finance Parties in connection with the Project with the consent of the Company (unless a Default has occurred and is continuing) (such consent not to be unreasonably withheld or delayed).

 “Lenders’ Kenyan Counsel” means Walker Kontos or such other legal counsel as the Global Agent (acting on
the instructions of the Lenders) may appoint with the consent of the Company (such consent not to be unreasonably withheld or delayed). 
 “Lenders’ Legal Counsel” means Trinity International LLP or such other legal counsel as the Global Agent (acting on the instructions of the Lenders) may appoint with the consent of
the Company (such consent not to be unreasonably withheld or delayed). 
 “Lenders’ New York Counsel” means
Becker, Glynn, Muffly, Chassin & Hosinski LLP or such other legal counsel as the Global Agent (acting on the instructions of the Lenders) may appoint with the consent of the Company (such consent not to be unreasonably withheld or delayed).

  

					
		 	18	 	

 “Liability” means any loss, damage, cost, charge, claim, demand, expense,
judgment, action, proceeding or other liability whatsoever (including, without limitation, in respect of Taxes). 

“LIBOR” means: 
  

	 	(a)	in relation to a Loan under the DEG A Loan Agreement: 

  

	 	(i)	the applicable Screen Rate; or 

  

	 	(ii)	(if no Screen Rate is available for the currency or Interest Period of that Loan) the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied
to the Global Agent at its request quoted by the Reference Banks to leading banks in the London interbank market, 

as of the Specified Time on the Quotation Day for the offering of deposits in the currency of that Loan and for a period comparable to
the Interest Period for that Loan. 
  

	 	(b)	in relation to a Loan under the DEG B Loan Agreement: 

  

	 	(i)	the applicable Screen Rate; or 

  

	 	(ii)	(if no Screen Rate is available for the currency or Interest Period of that Loan) the arithmetic mean of the rates (rounded upwards to four decimal places) as supplied
to the Global Agent at its request quoted by the Reference Banks to leading banks in the London interbank market, 

as of the Specified Time on the Quotation Day for the offering of deposits in the currency of that Loan and for a period comparable to
the Interest Period for that Loan, 
 provided that if the rate calculated under (b)(i) and (ii) above is lower than
1.25% per annum, LIBOR shall be deemed to equal 1.25% per annum. 
 “Lien” means: 

 

	 	(a)	 with respect to any property of any Person, any mortgage, lien, deed of trust, hypothecation, fiduciary transfer of title, assignment by way of
security, pledge, charge, sale and lease-back arrangement, trust arrangement, or security interest or encumbrance of any kind in respect of such property, or any preferential arrangement having the practical effect

  

					
		 	19	 	

	 	
of constituting a security interest with respect to the payment of any obligation with, or from the proceeds of, any property of any kind (and a Person shall be deemed to own subject to a Lien
any property that it has acquired or holds subject to the interest of a vendor or lessor under any conditional sale agreement, capital lease or other title retention agreement relating to such property); 

 

	 	(b)	any arrangement under which money or claims to, or for the benefit of, a bank or other account may be applied, set off or made subject to a combination of accounts so
as to effect discharge of any sum owed or payable to any Person; or 

  

	 	(c)	any other type of preferential arrangement having a similar effect. 

 “LMA” means the Loan Market Association. 
 “Loan”
means a loan made or to be made under any Facility or, as the context may require, the principal amount outstanding for the time being of that loan. 
 “Loan Agreements” means, together, the DEG A Loan Agreement and the DEG B Loan Agreement and “Loan Agreement” means any one of them. 

“Majority Lenders” means at any time, at least two Lenders whose participations in the Loans then
outstanding together aggregate more than
66 2/3% of all the Loans then outstanding. 
 “Major Project
Party” means any of the Company, the Sponsor, the Guarantor or the Shareholder. 
 “Mandatory Cost”
means the percentage rate per annum calculated by the Global Agent in accordance with Schedule 12 (Calculation of the Mandatory Cost). 
 “Margin” means 4.0% per annum. 
 “Market Disruption
Event” means: 
  

	 	(a)	at or about 11.00 am, London time, on the Quotation Day for the relevant Interest Period the Screen Rate is not available and none or only one of the Reference Banks
supplies a rate to the Global Agent to determine LIBOR for US Dollars for the relevant Interest Period; or 

  

	 	(b)	before close of business in London on the Quotation Day for the relevant Interest Period, the Company receives notification from the Global Agent that the cost to one
or more Lenders of obtaining matching deposits in the London interbank market would be in excess of LIBOR. 

  

					
		 	20	 	

 “Material Adverse Effect” means the occurrence of any event or series of
events which has or might reasonably be expected to have a material adverse effect on: 
  

	 	(a)	the condition (financial or otherwise), assets, operations, prospects or business of a Major Project Party; 

 

	 	(b)	the ability of a Major Project Party to comply with any of its obligations under the Finance Documents to which it is a party; or 

 

	 	(c)	the validity, legality, enforceability or effectiveness of any Finance Document or the rights or remedies of any Finance Party under any Finance Document.

 “MIGA” means the Multilateral Investment Guarantee Agency, an international organisation
organised and existing by virtue of its Convention among its member countries, including Kenya. 
 “MIGA Equity
Guarantee” means a contract of guarantee dated 18 December 2007 (as it may be amended from time to time) entered into by MIGA and the Shareholder in respect of certain non-commercial risks relating to the Shareholders’ equity
investment in the Company. 
 “Month” means a period starting on one day in a calendar month and ending on the
numerically corresponding day in the next calendar month, except that: 
  

	 	(a)	if the numerically corresponding day is not a Business Day, that period shall end on the next Business Day in that calendar month in which that period is to end if
there is one, or if there is not, on the immediately preceding Business Day (other than in respect of the Final Repayment Date under any Facility which shall, if it falls on the last day of a calendar month and such day is not a Business Day, end on
the previous Business Day in that calendar month); and 

  

	 	(b)	if there is no numerically corresponding day in the calendar month in which that period is to end, that period shall end on the last Business Day in that calendar
month. 

 “NEMA” means the National Environment Management Authority of the Republic of Kenya.

 “New Lender” means any bank or financial institution to whom a Lender seeks to assign or transfer by novation
all or part of such Lender’s rights, benefits and obligations under the Finance Documents in accordance with Clause 23 (Changes to Lenders). 
 “Non-Collateral Account” shall have the meaning given to that term in the Subordination Agreement. 

  

					
		 	 21
	 	

 “Operating Budget” means the operating budget to be prepared and delivered
by the Company to the Global Agent substantially in the form attached as Schedule 13 (Form of Operating Budget). 

“Operating Report” means the operating report to be prepared and delivered by the Company to the Global Agent
substantially in the form attached as Schedule 6 (Form of Operating Report). 
 “OPIC” means
Overseas Private Investment Corporation, an agency of the United States of America; 
 “OPIC Debt” means all
amounts owed by the Company pursuant to the OPIC Finance Agreement. 
 “OPIC Finance
Agreement” means the Finance Agreement entered into between the Company and OPIC, on 23rd August 2012 (as amended from time to time) pursuant to which OPIC has agreed to make available to the Company a term loan facility in the aggregate principal amount of up to US$ 310 million.

 “Original Lender” means: 
  

	 	(a)	in relation to the DEG “A” Facility, DEG; and 

  

	 	(b)	in relation to the DEG “B” Facility, DEG. 

 “Original Participant” means EAIF. 

“Participant” means any person who acquires a Participation. 

“Participation” means the interest of any Participant in the DEG “B” Facility. 

“Participation Agreement” means each agreement entitled “Participation Agreement” between DEG and the
Participants. 
 “Partnership Agreement” means the partnership agreement between the Members of the African,
Caribbean and Pacific Group of States, of the one part, and the European Community and its Member States, of the other party, signed in Cotonou, Benin on 23 June 2000. 
 “Party” means any Person who is or becomes a party to this Agreement. 
 “Permitted Liens” means: 
  

	 	(a)	the Security; 

  

	 	(b)	any Lien permitted under the terms of the OPIC Loan Agreement. 

  

					
		 	22	 	

 “Permitted Loans” means any loans or other indebtedness listed in
paragraphs (i) to (vi) of Clause 21.1(a) (Further Indebtedness). 
 “Person” means any
natural person, corporation, partnership, firm, association, Authority or any other entity, whether acting in an individual, fiduciary or other capacity and their successors. 
 “Plant” means the 48 MW geothermal power plant, all related buildings, fixtures, plant, machinery and other equipment and installations on or at the Site as expanded from time to time
with agreement from KPLC. 
 “PPA” or “Power Purchase Agreement” means the amended and restated
power purchase agreement dated 19 January 2007 (as amended from time to time) between the Company KPLC whereby KPLC has agreed to purchase the capacity and net electrical output of the Plant from the Company. 

“Prepayment Premium” means in respect of any prepayment of the Available Facility (or part thereof): 

 

	 	(a)	if such prepayment is made before the date falling two (2) years following the expiry of the Availability Period, an amount equal to 2% of the amount prepaid;

  

	 	(b)	if such prepayment is made after the date referred to in paragraph (a) above and before the date falling five (5) years following the expiry of the
Availability Period, an amount equal to 1% of the amount prepaid; and 

  

	 	(c)	if such prepayment is made after the date referred to in paragraph (b) above, an amount equal to zero (0)% of the amount prepaid. 

“Prohibited Acts” means: 
  

	 	(a)	the offering, giving, receiving or soliciting of any improper advantage to influence the action of any person holding a public office or function or a director or
employee of a public authority or public enterprise or a director or official of a public international organisation in connection with any procurement process or in the execution of any contract in connection with the Project; or

  

	 	(b)	any act which improperly influences or aims improperly to influence the procurement process or the implementation of the Project to the detriment of the Company,
including collusion between tenderers; or 

  

	 	(c)	to the extent not covered by paragraph (a) above, any act which constitutes or would constitute a corrupt practice within the meaning of the OECD Convention of
17 December 1997 on the fight against corruption of foreign public officials. 

  

					
		 	 23
	 	

 “Project” means the design, development, financing, construction,
commissioning, ownership, completion, insurance, operation and maintenance of the Plant, the construction of all associated transmission and substation facilities and all related ancillary works on or off the Site. 

“Project Costs” means all costs incurred prior to Financial Close comprising: 

 

	 	(a)	the design, engineering, equipment and construction costs of the Project, including all amounts payable; 

 

	 	(b)	interest, fees, legal and other transaction costs and expenses relating to the other items referred to in this definition, and other payments under any other Finance
Document prior to the date of first Disbursement payable by the Company; and 

  

	 	(c)	Taxes relating to any of the foregoing costs. 

 “Project Reports” means, together the Operating Report, the Financial Reports and the Annual Environmental and Social Monitoring Report. 

“Pro Rata Share” means: 
  

	 	(a)	the proportion which a Lender’s share of the Loans (if any) bears to all the Loans; 

 

	 	(b)	if there is no Loan outstanding on that date, the proportion which its Commitment bears to the Total Commitments on that date; or 

 

	 	(c)	if the Total Commitments have been cancelled, the proportion which its Commitments bore to the Total Commitments immediately before being cancelled.

 “Prudent Electrical Practice” has the meaning given to such term in the Construction Warranty
Agreement. 
 “Prudent Operating Practice” has the meaning given to such term in the PPA. 

“Prudent Utility Practices” means Prudent Operating Practice and Prudent Electrical Practice. 

“Quotation Day” means, in relation to any period for which an interest rate is to be determined two Business Days before
the first day of that period, unless market practice differs in the London interbank market for a currency, in which case the Quotation Day for that currency will be determined by the Global Agent in accordance with market practice in the London
interbank market (and if quotations would normally be given by leading banks in the London interbank market on more than one day, the Quotation Day will be the last of those days). 

  

					
		 	24	 	

 “Reference Banks” means, in relation to LIBOR and Mandatory Cost the
principal London offices of Deutsche Bank, HSBC Bank Plc and Barclays Bank Plc or such other banks as may be appointed by the Global Agent (acting on the instructions of all the Lenders) in consultation with the Company. 

“Related Rights” means, in relation to any asset, 

 

	 	(a)	the proceeds of sale of any part of that asset; 

  

	 	(b)	all rights under any easement, right of way, licence, agreement for sale or agreement for lease in respect of that asset; 

 

	 	(c)	all rights, benefits, claims, contracts, warranties, remedies, security, indemnities or covenants for title in respect of that asset; and 

 

	 	(d)	any moneys and proceeds paid or payable in respect of that asset. 

 “Repayment Date” means any date upon which the Company shall be obligated to make any scheduled repayment of principal under any Facility in accordance with the repayment schedule set out
in the relevant Loan Agreement, commencing with the First Repayment Date and on each subsequent Interest Payment Date, it being the intention that Interest Payment Dates and Repayment Dates should coincide commencing with the First Repayment Date.

 “Screen Rate” means the British Bankers Association Interest Settlement Rate for the relevant currency and
period displayed on the appropriate page of the Reuters screen. If the agreed page is replaced or service ceases to be available, the Global Agent may specify another page or service displaying the appropriate rate after consultation with the
Company and the Lenders. 
 “Security” means any security or collateral documents, agreements or other contracts
which constitute security for the OPIC Debt. 
 “Share” means any share in the capital of the Company of
whatever class (including ordinary shares and preference shares, and other form of legal, beneficial or economic ownership interest) to the extent such class of shares or such interest is permitted by the Company’s constitutive documents as of
the date hereof. 
 “Shareholder” means Ormat Holding Corp. or any other holder of the Shares. 

“Shareholder Debt” means any loan or equity investment into the Company by the Shareholder or the Sponsor. 

“Shillings” or “K.Sh” means the lawful currency from time to time of the Republic of Kenya. 

  

					
		 	25	 	

 “Site” means the site on which the Plant is located as shown on the plan in
Schedule 10 (Site Plan). 
 “Sponsor” means Ormat International Inc. in its capacity as the indirect
controlling shareholder of the Company. 
 “Subordination Agreement” means the subordination agreement dated on
or about the date of this Amendment Agreement between the Lenders, the Company and OPIC pursuant to which the Lenders have agreed, inter alia, to subordinate their rights to repayment under this Agreement and the Loan Agreements to
OPIC’s rights to repayment under the OPIC Finance Agreement (but excluding any rights of the Lenders under the Guarantee). 

“Subsidiary” means with respect to any Person, any entity: 

 

	 	(a)	over fifty per cent (50%) of whose capital is owned, directly or indirectly, by that Person; 

 

	 	(b)	for which that Person may nominate or appoint a majority of the members of the board of directors or such other body performing similar functions; or

  

	 	(c)	which is otherwise effectively under the Control of that Person; 

  

	 	(d)	and, for these purposes, a company or corporation shall be treated as being controlled by another if that other company or corporation is able to direct its affairs
and/or to Control the composition of its board of directors or equivalent body, whether through the ownership of voting securities, by contract or otherwise. 

 “Tax” means any tax, levy, impost, duty, contribution, contribution, fee, fine or other charge or withholding of a similar nature (including any related penalty or interest). 

“Tax Consultant” means Price Waterhouse Coopers, Kenya, or such other accountancy firm acceptable to the Global Agent
(acting on the instructions of the Lenders). 
 “Tax Credit” means a credit against any Tax or any relief or
remission for Tax (or its repayment). 
 “Tax Deduction” means a deduction or withholding for or on account of
Tax from a payment under a Finance Document. 
 “Tax Payment” means a payment made by the Company to a Finance
Party in any way relating to a Tax Deduction or under any indemnity given by the Company in respect of Tax under any Finance Document. 

  

					
		 	 26
	 	

 “Total Commitments” means, at any time, the aggregate of all Available
Commitments of all Lenders under this Agreement and the Loan Agreements. 
 “Transfer Certificate” means a
certificate substantially in the form set out in Schedule 3 (Form of Transfer Certificate) or any other form agreed among the Global Agent (acting on the instructions of the Lenders), the Company and, as applicable in relation to each
Loan Agreement, the DEG “A” Lenders and the DEG “B” Lenders as the case may be. 
 “Transfer
Date” means, in relation to a transfer of any Lender’s rights or obligations under a Facility, the later of: 
  

	 	(a)	the proposed Transfer Date specified in the Transfer Certificate; and 

  

	 	(b)	the date on which the Global Agent executes the Transfer Certificate. 

 “UNFCCC” means the United Nations Framework Convention on Climate Change. 
 “Unpaid Sum” means any sum due and payable but unpaid by the Company under the Finance Documents. 
 “US$” or “US Dollars” means the lawful currency of the United States of America from time to time. 

“VAT” means value-added tax as provided for in the Kenyan Added Tax Statute, and any other tax of a similar nature
whether of the Republic of Kenya or elsewhere. 
  

	1.2	Construction 

  

	 	(a)	Any reference in this Agreement to: 

  

	 	(i)	a document being in “agreed form” means that document in the form initialled by the Global Agent (acting on the instructions of the Lenders) and the
Company; 

  

	 	(ii)	“assets” includes present and future properties, revenues and rights of every description; 

 

	 	(iii)	“disposal” shall be construed as any sale, transfer, conveyance, assignment, grant, lease, licence, declaration of trust or other disposal whether
voluntary or involuntary and “dispose” and “disposal” shall be construed accordingly; 

  

	 	(iv)	 the “equivalent” on any date in one currency (the “first currency”) of an amount denominated in another currency (the
“second currency”) is a reference to the amount of the first 

  

					
		 	27	 	

	 	
currency which could be purchased with the amount of the second currency at the average of the spot rates of exchange quoted by the Reference Banks to the Global Agent at or about 11.00 a.m.
Frankfurt time on such date for the purchase of the first currency with the second currency; 

  

	 	(v)	a “Finance Document” or any other agreement, document or instrument is a reference to that Finance Document or other agreement, document or instrument
as amended, varied, novated, replaced or supplemented from time to time in accordance with the terms of the Finance Documents or as may otherwise have been amended prior to the date of this Agreement; 

 

	 	(vi)	“including” shall be construed as including, without limitation; 

 

	 	(vii)	a “law” shall be construed as any law (including common or customary law), statute, constitution, decree, judgment, treaty, regulation, directive,
bye-law, order or any other legislative measure of any government, supranational, local government, statutory or regulatory body or court; 

  

	 	(viii)	a “regulation” includes any regulation, rule, official directive, request or guideline (in respect of Increased Costs, whether or not having the force
of law but otherwise being of a type which any Person to which it applies is required (or chooses) to comply) of any governmental, intergovernmental or supranational body, agency, department or regulatory, self-regulatory or other authority or
organization; 

  

	 	(ix)	the “winding-up”, “dissolution” or “administration” of a company or corporation shall be construed so as to include
any equivalent or analogous proceedings under the law of the jurisdiction in which such company or corporation is incorporated or any jurisdiction in which such company or corporation carries on business including the seeking of liquidation,
winding-up, reorganisation, dissolution, administration, arrangement, adjustment, protection or relief of debtors; 

  

	 	(x)	a Party or other Person includes its successors in title, permitted assigns and permitted transferees; and 

 

	 	(xi)	a provision of law is a reference to that provision as amended or re-enacted from time to time. 

 

	 	(b)	Clause and Schedule headings are for ease of reference only. 

  

					
		 	28	 	

	 	(c)	Unless a contrary indication appears, a term used in any other Finance Document or in any notice given under or in connection with any Finance Document has the same
meaning in that Finance Document or notice as in this Agreement. 

  

	 	(d)	A Default other than an Event of Default will be deemed to be “continuing” if it has not been remedied (or a course of remedial action (if any) agreed
with the Global Agent (acting on the instructions of the Lenders) is being undertaken as agreed) or waived and an Event of Default will be deemed to be “continuing” if it has not been waived. 

 

	 	(e)	In the case of any conflict between the terms of this Agreement and the terms of any other Finance Document, the terms of this Agreement shall prevail.

  

	1.3	Third Party Rights 

 Unless the
contrary intention appears: 
  

	 	(a)	Unless expressly provided to the contrary in a Finance Document, a person who is not a party to a Finance Document may not enforce any of its terms under the Contracts
(Rights of Third Parties) Act 1999 and no consent of any third party is required for any amendment (including any release or compromise of any liability) or termination of any Finance Document; and 

 

	 	(b)	a reference to a Party will not include that Party if it has ceased to be a Party under this Agreement. 

 

	2	FACILITIES 

  

	2.1	General 

 17.776% of the proposed
financing will be provided by EIB acting on behalf of the European Community from the investment facility resources made available by the European Community under the Partnership Agreement. 

 

	2.2	Finance Parties’ Rights and Obligations 

  

	 	(a)	The obligations of each Finance Party under the Finance Documents are several. Failure by a Finance Party to perform its obligations under the Finance Documents does
not affect the obligations of any other Party under the Finance Documents. No Finance Party is responsible for the obligations of any other Finance Party under the Finance Documents. 

 

	 	(b)	The rights of each Finance Party under or in connection with the Finance Documents are separate and independent rights and any debt arising under the Finance Documents
to a Finance Party from the Company shall be a separate and independent debt. 

  

					
		 	29	 	

	3	PURPOSE 

  

	3.1	Purpose 

 Subject to the terms
and conditions of each Loan Agreement and this Agreement, the Company shall apply all amounts borrowed by it under any Facility towards payment of any Project Costs. 
  

	3.2	Monitoring 

 No Finance Party is
bound to monitor or verify the application of any amount borrowed pursuant to any Finance Document. 
  

	4	CONDITIONS 

[Omitted] 
  

	5	DISBURSEMENT 

[Omitted] 
  

	6	REPAYMENT 

  

	6.1	Repayment of Loans 

 The Company
shall repay the Loans in accordance with the repayment schedule set out in Schedule 7 (Repayment Schedule) on each Repayment Date, the first principal payment of which shall be due on the First Repayment Date, with a final installment of the
remaining balance under each Loan to be paid no later than the Final Repayment Date. 
  

	6.2	Reborrowing 

 The Company may not
reborrow any part of any Facility which is repaid or prepaid. 

  

					
		 	30	 	

	7	VOLUNTARY PREPAYMENT AND CANCELLATION 

  

	7.1	[Omitted] 

  

	7.2	Voluntary Prepayment 

  

	 	(a)	Subject to Clause 7.4 (Restrictions), the Company may, if it gives the Global Agent not less than thirty (30) days’ prior notice (or such shorter
period as the Global Agent (acting on the instructions of the Lenders) may agree), prepay on an Interest Payment Date the whole or any part of the Loans; provided that if the prepayment constitutes only part of the Loans, such prepayment shall be in
a minimum amount of five million US Dollars (US$5,000,000) in the aggregate for all of the Loans. 

  

	 	(b)	Except for any prepayment made under Clause 7.3 (Right of Repayment and Cancellation in relation to a single Lender) and Clause 8.1 (Mandatory Prepayment due
to Illegality) any prepayment under this Clause 7.2 shall be applied against each of the Loans pro rata to the respective principal amounts outstanding and shall satisfy the obligations of the Company under Clause 6.1 (Repayment of Loans)
in respect of each Loan on a pro rata basis. 

  

	7.3	Right of Repayment and Cancellation in Relation to a Single Lender 

  

	 	(a)	If: 

  

	 	(i)	any sum payable to a Lender is required to be increased under Clause 11.1 (Gross-up); or 

 

	 	(ii)	the Company is required to make a Tax Payment or Tax Deduction; or 

  

	 	(iii)	any Lender claims indemnification from the Company under Clause 12.1 (Increased Costs) or Clause 11.2 (Tax Indemnity), 

the Company may, whilst the circumstance giving rise to the requirement for indemnification continues, give the Global Agent thirty
(30) days’ notice of: 
  

	 	(A)	its intention to procure the repayment of, as applicable: 

  

	 	(I)	that Lender’s Loans; or 

  

	 	(II)	that Lender’s participation in the relevant Loans; or 

  

	 	(III)	that portion of the Loans (or a participant’s share in the Loans) to which the Tax Payment, Tax Deduction or claim for indemnification relates; and

  

					
		 	31	 	

	 	(B)	cancellation of, as applicable: 

  

	 	(I)	if the repayment is pursuant to Clause 7.3(a)(iii)(A)(I) (Right of Repayment and Cancellation in Relation to a Single Lender) above, the relevant Commitment of
the Lender; or 

  

	 	(II)	if the repayment is pursuant to Clause 7.3(a)(iii)(A)(II) or 7.3(a)(iii)(A)(III) (Right of Repayment and Cancellation in Relation to a Single Lender) above, that
proportion of the Commitment which is equal to the proportion which the repaid amount bears to the Lender’s total outstanding Loans (or a participant’s share in the Loans) immediately before the date of repayment. 

 

	 	(b)	On receipt of a notice referred to in paragraph (a) above: 

  

	 	(i)	if the repayment is pursuant to Clause 7.3(a)(iii)(A)(I) (Right of Repayment and Cancellation in Relation to a Single Lender) above, the relevant Commitment of
the Lender shall be immediately reduced to zero; or 

  

	 	(ii)	if the repayment is pursuant to Clauses 7.3(a)(iii)(A)(II) or 7.3(a)(iii)(A)(III) (Right of Repayment and Cancellation in Relation to a Single Lender) above,
that proportion of the Lender’s Commitment which is equal to the proportion which the repaid amount bears to that Lender’s total outstanding Loans immediately before the date of repayment shall be cancelled and such proportion shall be
immediately reduced to zero. 

  

	 	(c)	On the Interest Payment Date which follows the Interest Period in which the Company has given notice under Clause 7.3(a) (Right of Repayment and Cancellation in
Relation to a Single Lender) above, the Company shall repay as applicable: 

  

	 	(i)	that Lender’s Loans; or 

  

	 	(ii)	that Lender’s participation in the relevant Loans; or 

  

	 	(iii)	that portion of the Loans (or a participant’s share in the Loans) to which the Tax Payment, Tax Deduction or claim for indemnification relates.

  

	 	(d)	Subject to paragraph (e) below, any prepayment under this Clause 7.3 (Right of Repayment and Cancellation in Relation to a Single Lender) will be subject to
the payment of Break Costs (if any) and Fixed Rate Break Costs (if any) but otherwise without premium or penalty. 

  

	 	(e)	If any Tax Payment or Tax Deduction referred to in Clause 7.3(a)(i) or 7.3(a)(iii) (Right of Repayment and Cancellation in Relation to a Single Lender) is made
or required to be made in relation to payments made or due to the Original Participant, the prepayment and cancellation referred to in Clause 7.3(a) (Right of Repayment and Cancellation in Relation to a Single Lender) will not be required to
satisfy the conditions set out in Clauses 7.1 (Voluntary Cancellation) and 7.2 (Voluntary Prepayment) but shall be subject to the payment of the Prepayment Premium, Break Costs (if any) and Fixed Rate Break Costs (if any).

  

					
		 	32	 	

	7.4	Restrictions 

  

	 	(a)	Any notice of cancellation or prepayment given by the Company under this Clause 7 (Voluntary Prepayment and Cancellation) shall be irrevocable, shall be made no
later than thirty (30) days before an Interest Payment Date and, unless a contrary indication appears in this Agreement, shall specify the amount of that cancellation or prepayment. 

 

	 	(b)	Subject to Clause 7.3 (Right of Prepayment and Cancellation in Relation to a Single Lender), any prepayment made under this Clause 7 (Voluntary Prepayment and
Cancellation) shall be made together with accrued interest on the amount prepaid and any applicable Break Costs, any applicable Fixed Rate Break Costs, any Prepayment Premium and any other amounts which may be due to the relevant Lender under
the relevant Finance Documents. 

  

	 	(c)	The Company may not reborrow any part of any Facility which is prepaid and may not reinstate any amount of any Facility cancelled pursuant to this Clause 7
(Voluntary Prepayment and Cancellation). 

  

	 	(d)	The Company shall not repay or prepay all or any part of the Loans or cancel all or any part of the Commitments except at the times and in the manner expressly provided
for in this Agreement and the relevant Loan Agreement. 

  

	8	MANDATORY PREPAYMENTS 

  

	8.1	Mandatory Prepayment due to Illegality 

 If it becomes unlawful in any jurisdiction for a Lender (or any participant in that Lender’s Facility) to perform any of its obligations under any Facility or to fund any Loan, or as applicable, its
share or participation in any Loan: 
  

	 	(a)	the relevant Lender shall promptly notify the Global Agent and the Company upon becoming aware of that event; 

  

					
		 	33	 	

	 	(b)	upon the relevant Lender notifying the Company of such event, in accordance with paragraph (a) above, the Commitment of that Lender (or the participant’s
participation) will be immediately cancelled; and 

  

	 	(c)	the Company shall repay or prepay the share of that Lender (or the relevant participant’s) share or participation in the Loans, together with any accrued interest,
fees, costs, expenses and Taxes thereon and any Break Costs and Fixed Rate Break Costs occurring in accordance with Clause 9.2 (Break Costs), as soon as practicable following the Lender notifying the Company of such event in accordance with
paragraph (a) above, and in any event on the Interest Payment Date following the current Interest Period or, if earlier, the date specified by the Lender in the notice delivered to the Global Agent (being no earlier than the last day of any
applicable grace period permitted by law). 

  

	8.2	Application of Prepayments 

Subject to Clause 8.1 (Mandatory Prepayment due to Illegality) and Clause 7.3 (Right of Repayment and Cancellation in Relation
to a Single Lender), any other amounts to be applied in mandatory prepayment of the Facilities pursuant to Clause 8 (Mandatory Prepayments) shall be applied on the next Interest Payment Date or Repayment Date against each of the Loans pro
rata and in the case of any Fixed Rate Loans, in inverse order of maturity based on the respective principal amounts outstanding thereunder in accordance with the Finance Documents, shall be subject to the payment of Break Costs (if any) and Fixed
Rate Break Costs (if any) but shall not be subject to the payment of the Prepayment Premium. Any amount so prepaid may not be redrawn. 
  

	9	INTEREST AND BREAK COSTS 

  

	9.1	Interest 

 The Company shall pay
interest and any other amounts due under each Facility in accordance with the terms of the relevant Loan Agreement. 
  

	9.2	Break Costs 

  

	 	(a)	The Company shall, as soon as practicable following a notice under Clause 8.1(a) (Mandatory Prepayment due to Illegality) or, if earlier, the date specified by
the relevant Finance Party (in accordance with Clause 8.1(a) (Mandatory Prepayment due to Illegality) or otherwise in accordance with the Finance Documents and in any event on the Interest Payment Date following the current Interest Period,
pay to that Finance Party: 

  

	 	(i)	its Break Costs attributable to all or any part of a Loan or Unpaid Sum being paid or prepaid otherwise than on the relevant Interest Payment Date; and

  

	 	(ii)	in respect of a Fixed Rate Loan, its Fixed Rate Break Costs. 

  

	 	(b)	Each Finance Party shall, as soon as reasonably practicable but in any event not later than ten (10) days after a demand by the Global Agent or the Company,
provide a certificate confirming the amount of its Break Costs or Fixed Rate Break Costs as the case may be. 

  

					
		 	34	 	

	9.3	Default Interest 

  

	 	(a)	If the Company fails to pay any amount payable by it under a Finance Document on its due date, interest shall accrue on the Unpaid Sum from the due date up to the date
of actual payment (both before and after judgment) at a rate which, subject to paragraph (b) below, is two per cent (2%) per annum higher than the rate which would have been payable if the Unpaid Sum had, during the period of non-payment,
constituted a Loan for successive Interest Periods. Any interest accruing under this Clause 9.3 (Default Interest) shall be immediately payable by the Company on demand by the Global Agent. 

 

	 	(b)	If any Unpaid Sum consists of all or part of a Loan which became due on a day which was not the last day of an Interest Period relating to that Loan:

  

	 	(i)	the first Interest Period for that Unpaid Sum shall have a duration equal to the unexpired portion of the current Interest Period relating to that Loan; and

  

	 	(ii)	the rate of interest applying to the Unpaid Sum during that first Interest Period shall be two per cent. (2%) per annum higher than the rate which would have
applied if the Unpaid Sum had not become due. 

  

	 	(c)	Default interest (if unpaid) arising on an Unpaid Sum will be compounded with the overdue amount at the end of each Interest Period applicable to that Undue Sum but
will remain immediately due and payable. 

  

	9.4	Fixed Rate Loans 

  

	 	(a)	 Subject to Clause 9.4(d) (Fixed Rate Loans), the Company and the Global Agent (acting on the instructions of the Lenders) may on one occasion
only agree to convert the interest rate agreed in respect of all Loans pursuant to Clause 9.1 (Interest) to a fixed interest rate (the “Fixed Interest Rate”) provided that such conversion is in respect of all Loans under each
Facility. The Company and the Global Agent may exercise such right by no later than one (1) month prior to the end of an Interest Period, and not earlier than the 

  

					
		 	35	 	

	 	
last Disbursement Date whereby the Facilities are drawn down in full, and such conversion shall take effect on the next occurring Interest Payment Date. 

 

	 	(b)	The Company shall pay the Fixed Interest Rate as determined in accordance with Clause 9.5 (Fixed Rate Loans). 

 

	 	(c)	The Company shall on the date of the conversion pursuant to Clause 9.4(a) (Fixed Rate Loans) pay to the Global Agent for the account of each Lender a fee
computed at a rate of 0.25% of the amount of that Lender’s Loans which have been converted into Fixed Rate Loans. 

  

	 	(d)	If the Company and the DEG B Lenders are unable to agree to convert the interest rate in respect of the DEG B Loans to a Fixed Interest Rate, the conversion to the
Fixed Interest Rate in accordance with Clause 9.4(a) (Fixed Rate Loans) shall take effect in respect of all Loans other than the DEG B Loans. 

  

	9.5	Fixed Rate Basis 

 The rate of
interest on the participation of each Lender in a Fixed Rate Loan for each interest period commencing after the date of fixing in accordance with Clause 9.4 (Fixed Rate Loans) above, and continuing for a period up to the Final Repayment Date,
shall be the rate determined by the Global Agent (instructed by the Lenders) to be the aggregate of: 
  

	 	(a)	the Margin; 

  

	 	(b)	the applicable Fixed Interest Rate; and 

  

	 	(c)	the Mandatory Cost, if any, applicable to the Lender’s participation in the Fixed Rate Loan. 

 

	9.6	Absence of quotations 

 Subject
to Clause 9.7 (Market disruption), if LIBOR is to be determined by reference to the Reference Banks but a Reference Bank does not supply a quotation by 11:00 am London time on the Quotation Day, the applicable LIBOR shall be determined on the
basis of the quotations for obtaining funding of the remaining Reference Banks. 
  

	9.7	Market disruption 

  

	 	(a)	If a Market Disruption Event occurs in relation to a Loan for any Interest Period, then the rate of interest on a Lender’s share of that Loan for the Interest
Period shall be the percentage rate per annum which is the sum of: 

  

	 	(i)	the Margin; 

  

					
		 	36	 	

	 	(ii)	the rate notified to the Global Agent by that Lender as soon as practicable and in any event before interest is due to be paid in respect of that Interest Period, to be
that which expresses as a percentage rate per annum the cost to the Lender of funding its participation in that Loan from whatever source it may reasonably select; and 

 

	 	(iii)	the Mandatory Cost, if any, applicable to the Lender’s participation in the Loan. 

 

	9.8	Alternative basis of interest or funding 

  

	 	(a)	If a Market Disruption Event occurs and the Global Agent (acting on the instructions of the Lenders) or the Company so requires, the Global Agent (acting on the
instructions of the Lenders) and the Company shall enter into negotiations (for a period of not more than thirty (30) days) with a view to agreeing on a substitute basis for determining the rate of interest. 

 

	 	(b)	Any alternative basis agreed pursuant to paragraph (a) above shall, with the prior consent of the Global Agent and the Company, be binding on all Parties.

  

	10	FEES 

  

	10.1	Global Agency Fee 

 The Company
shall pay to the Global Agent (for its own account) a fee in the amount and at the times agreed in the Fee Letter entered or to be entered into between the Company and the Global Agent. 

 

	10.2	Monitoring Fees 

 The Company
shall pay to the Global Agent for the account of the DEG A Lender and the DEG B Lender a fee equal to US$10,000 per annum in arrears for each such Lender payable on the second Interest Payment Date in each year. 

 

	11	TAXES 

  

	11.1	Gross-up 

  

	 	(a)	All payments by the Company under the Finance Documents shall be made free and clear of and without any Tax Deduction, except to the extent that a Tax Deduction is
required by law. 

  

	 	(b)	 The Company shall promptly upon becoming aware that it must make a Tax Deduction (or that there is a change in the rate or the basis of any Tax
Deduction) notify the Global Agent accordingly. Similarly, a Lender shall 

  

					
		 	37	 	

	 	
promptly notify the Global Agent on becoming so aware in respect of a payment payable to that Lender. If the Global Agent receives such notification from a Lender it shall promptly notify the
Company and the other Lenders. 

  

	 	(c)	If any Tax Deduction is required by law to be made by the Company or the Global Agent the Company shall pay such additional amounts as may be necessary to ensure that
the relevant Lender receives a net amount equal to the full amount which it would have received had payment no Tax Deduction been required. 

  

	 	(d)	If the Company is required to make a Tax Deduction, it must make the minimum Tax Deduction allowed by law and must make any payment required in connection with that Tax
Deduction within the time allowed by law. 

  

	 	(e)	Within thirty (30) days of making either a Tax Deduction or a Tax Payment required in connection with a Tax Deduction, the Company must deliver to the Global Agent
for the relevant Finance Party evidence satisfactory to that Finance Party (acting reasonably) that the Tax Deduction has been made or (as applicable) the appropriate payment has been paid to the relevant taxing authority. 

 

	11.2	Tax indemnity 

  

	 	(a)	Except as provided below, the Company must indemnify a Finance Party against any Liability which that Finance Party determines will be or has been suffered (directly or
indirectly) by that Finance Party for or on account of Tax in relation to a payment received or receivable or any payment deemed to be received or recoverable under a Finance Document provided that the Finance Party provides documentary evidence of
the same to the extent such evidence is reasonably available. 

  

	 	(b)	Paragraph (a) above does not apply with respect to any Tax assessed on a Finance Party under the laws of the jurisdiction in which: 

 

	 	(i)	that Finance Party is incorporated or, if different, the jurisdiction (or jurisdictions) in which that Finance Party is treated as resident for tax purposes; or

  

	 	(ii)	that Finance Party’s Facility Office is located in respect of amounts received or receivable in that jurisdiction, 

if that Tax is imposed on or calculated by reference to the net income received or receivable by that Finance Party. However, any payment
deemed to be received or receivable, including any amount treated as income but not actually received by the Finance Party, such as a Tax Deduction, will not be treated as net income received or receivable for this purpose. 

  

					
		 	38	 	

	 	(c)	Paragraph (a) above does not apply to the extent a Liability: 

  

	 	(i)	is compensated for by an increased payment under Clause 11.1 (Gross-up); or 

 

	 	(ii)	is otherwise compensated for under another clause to this Agreement. 

  

	 	(d)	A Finance Party making, or intending to make, a claim under paragraph (a) above must promptly notify the Company of the event which will give, or has given, rise
to the claim. 

  

	 	(e)	A Finance Party must, on receiving a payment from the Company under this Clause 11.2 (Tax Indemnity) notify the Global Agent. 

 

	11.3	Tax Credit 

 If the Company makes
a Tax Payment and the relevant Finance Party determines that: 
  

	 	(a)	a Tax Credit is attributable either to an increased payment of which that Tax Payment forms part, or to that Tax Payment; and 

 

	 	(b)	it has obtained, used and retained that Tax Credit, 

  

	 	(c)	the Finance Party must pay an amount to the Company which that Finance Party determines will leave it (after that payment) in the same after-Tax position as it would
have been in if the Tax Payment had not been required to be made by the Company. 

  

	11.4	Stamp taxes 

 The Company must
pay and indemnify each Finance Party within ten (10) days of demand against any Liability that Finance Party incurs in relation to all stamp duty, stamp duty land tax, registration or other similar Tax payable in connection with the entry into,
performance or enforcement of any Finance Document, except for any such Tax payable in connection with the entry into of a Transfer Certificate. 
  

	11.5	Value added taxes 

  

	 	(a)	 All amounts set out, or expressed to be payable under a Finance Document by any Party to a Finance Party which (in whole or in part) constitute the
consideration for VAT purposes are deemed to be exclusive of any VAT which is chargeable on that supply, and accordingly, subject to paragraph (c)

  

					
		 	39	 	

	 	
below, if VAT is chargeable on any supply made by any Finance Party to any Party under a Finance Document, that Party must pay to the Finance Party (in addition to and at the same time as paying
the consideration) an amount equal to the amount of the VAT (and such Finance Party must promptly provide an appropriate VAT invoice to that Party). 

  

	 	(b)	If VAT is chargeable by reference to any supply made by any Finance Party (the “Supplier”) to any other Finance Party (the
“Recipient”) under a Finance Document, and any Party (the “Relevant Party”) is required by the terms of any Finance Document to pay an amount equal to the consideration for that supply to the Supplier (rather than
being required to reimburse the Recipient in respect of that consideration), the relevant Party must also pay to the Supplier (in addition to and at the same time as paying that amount) an amount equal to the amount of VAT. The Recipient must
promptly pay to the Relevant Party an amount equal to any credit or repayment from the relevant tax authority which it reasonably determines relates to the VAT chargeable on that supply. 

 

	 	(c)	Where a Finance Document requires any Party to reimburse a Finance Party for any costs or expenses, that Party must also at the same time pay and indemnify the Finance
Party against all VAT incurred by the Finance Party in respect of those costs or expenses but only to the extent that the relevant Finance Party (acting reasonably) determines that neither it nor any member of any group of which it is a member for
VAT purposes is entitled to credit or repayment from the relevant tax authority in respect of the VAT. 

  

	12	INCREASED COSTS 

  

	12.1	Increased Costs 

  

	 	(a)	Subject to Clause 12.3 (Exceptions) the Company shall, within ten (10) days of a demand by the Global Agent (acting on the instructions of the Lenders), pay
for the account of a Finance Party the amount of any Increased Costs incurred by that Finance Party or any Affiliate of such Finance Party as a result of: 

  

	 	(i)	the introduction of or any change in (or in the interpretation, administration or application of) any law or regulation; or 

 

	 	(ii)	compliance with any law or regulation made after the date of this Agreement. 

 

	 	(b)	In this Agreement, “Increased Costs” means: 

  

	 	(i)	a reduction in the rate of return from the relevant Facility or on a Finance Party’s (or its Affiliate’s) overall capital; 

  

					
		 	40	 	

	 	(ii)	an additional or increased cost; or 

  

	 	(iii)	a reduction of any amount due and payable under any Finance Document, 

 which is incurred or suffered by a Finance Party or its Affiliates to the extent that it is attributable to that Finance Party having entered into its Commitment or funding or performing its obligations
under any Finance Document. 
  

	12.2	Increased Cost Claims 

  

	 	(a)	A Finance Party intending to make a claim pursuant to Clause 12 (Increased Costs) shall notify the Company and the Global Agent of the event giving rise to the
claim, setting out in reasonable detail the basis for such claims. Upon receipt of such notification, the Global Agent shall notify all of the Lenders of such claim. 

 

	 	(b)	Each Finance Party shall, as soon as practicable but in any event within no more than ten (10) days after a demand by the Global Agent or the Company, provide a
certificate confirming the amount of its Increased Costs, together with all the supporting information as the Company or the Global Agent may reasonably require. 

 

	12.3	Exceptions 

 Clause 12.1
(Increased Costs) does not apply to the extent any Increased Cost is: 
  

	 	(a)	compensated for by a Tax Payment; 

  

	 	(b)	attributable to a Tax Deduction required by law to be made by the Company; 

 

	 	(c)	attributable to the breach of any law by the relevant Finance Party; 

  

	 	(d)	compensated for by the payment of a Mandatory Cost; or 

  

	 	(e)	attributable to the willful breach by the relevant Finance Party or its affiliates of any law or regulation. 

 

	13	OTHER INDEMNITIES 

  

	13.1	Currency Indemnity 

  

	 	(a)	If any sum due from the Company under the Finance Documents (a “Sum”), or any order, judgment or award given or made in relation to a Sum, has to be
converted from the currency (the “First Currency”) in which that Sum is payable into another currency (the “Second Currency”) for the purpose of: 

 

	 	(i)	making or filing a claim or proof against the Company; or 

  

	 	(ii)	obtaining or enforcing an order, judgment or award in relation to any litigation or arbitration proceedings, 

  

					
		 	41	 	

 the Company shall as an independent obligation, within ten (10) days of demand by the
Global Agent or any Finance Party, indemnify each Finance Party to whom that Sum is due against any Liability arising out of or as a result of the conversion including any discrepancy between: 

 

	 	(A)	the rate of exchange used to convert that Sum from the First Currency into the Second Currency; and 

 

	 	(B)	the rate or rates of exchange available to that Person at the time of its receipt of that Sum. 

 

	 	(b)	The Company waives any right it may have in any jurisdiction to pay any amount under the Finance Documents in a currency or currency unit other than that in which it is
expressed to be payable. 

  

	13.2	Other Indemnities 

  

	 	(a)	The Company shall, within ten (10) days of the first demand of the Global Agent or any Finance Party, indemnify each Finance Party against any documented and
evidenced Liability incurred by that Finance Party as a direct result of: 

  

	 	(i)	the occurrence of any Default and any costs incurred by any of the Finance Parties in investigating or attending any meetings to consider any Default;

  

	 	(ii)	a failure by the Company to pay any amount due under a Finance Document on its due date, or any amounts payable to the Global Agent by any Finance Party on the
Company’s behalf where the Company has failed to pay such premiums, fees or other amounts; 

  

	 	(iii)	funding, or making arrangements to fund, a Loan or, as applicable, its participation therein but not made by reason of the operation of any one or more of the
provisions of the Finance Documents (other than by reason of default or negligence by that Finance Party alone); 

  

	 	(iv)	a Loan (or part of a Loan) not being prepaid in accordance with a notice of prepayment given by the Company; or 

 

	 	(v)	any environmental and social claim in respect of the Company or the Project. 

  

					
		 	42	 	

	 	(b)	The Company must indemnify the Global Agent against any documented and evidenced Liability incurred by the Global Agent as a result of: 

 

	 	(i)	investigating any event which the Global Agent reasonably believes to be a Default; or 

 

	 	(ii)	acting or relying on any notice which the Global Agent reasonably believes to be genuine, correct and appropriately authorised. 

 

	13.3	Additional Indemnities in Favour of Global Agent 

  

	 	(a)	The Company shall (promptly upon the written demand of such Person) pay to the Global Agent, an amount equal to the Liability which has or will be suffered for or on
account of any Tax payable by that Person in connection with the Finance Documents. 

  

	 	(b)	Where any payments are due under any of the Finance Documents to the Global Agent, the Company shall make all such payments without any Tax Deduction, unless such Tax
Deduction is required by law and if such a Tax Deduction is required by law to be made by the Company: 

  

	 	(i)	the Company shall promptly upon becoming aware that it is required to make such a Tax Deduction, notify the relevant Person accordingly; 

 

	 	(ii)	the amount due from the Company shall be increased to an amount which (after making any Tax Deduction) leaves an amount equal to the payment which would have been due
if no Tax Deduction had been required; 

  

	 	(iii)	the Company shall make that Tax Deduction and any payment required in connection with that Tax Deduction within the time allowed and in the minimum amount required by
law; and 

  

	 	(iv)	within thirty (30) days of making such a Tax Deduction, the Company shall deliver to the Person entitled to the payment evidence reasonably satisfactory to that
Person that the Tax Deduction has been made or (as applicable) any appropriate payment paid to the relevant taxing authority. 

  

	14	MITIGATION BY THE FINANCE PARTIES 

  

	14.1	Mitigation 

  

	 	(a)	Each Finance Party shall, in consultation with the Company, take reasonable steps to mitigate any circumstances which arise and which result or would result in:

  

	 	(i)	any Tax Payment or Increased Cost being payable to that Finance Party; 

  

					
		 	43	 	

	 	(ii)	any amount becoming payable under or pursuant to, or cancelled pursuant to Clause 8.1 (Mandatory prepayment due to Illegality); or 

 

	 	(iii)	that Finance Party incurring any costs of complying with the minimum reserve requirements of the European Central Bank, 

including transferring its rights and obligations under the Finance Documents to an Affiliate or changing its Facility Office.

  

	 	(b)	Paragraph (a) above does not in any way limit the obligations of the Company under the Finance Documents. 

 

	14.2	Limitation of Liability 

  

	 	(a)	The Company shall indemnify each Finance Party for all costs and expenses incurred by that Finance Party as a result of steps taken by it under this Clause 14
(Mitigation by the Finance Parties). 

  

	 	(b)	A Finance Party is not obliged to take any steps under this Clause 14 (Mitigation by the Finance Parties) if, in the opinion of that Finance Party (acting
reasonably), to do so might be prejudicial to it. 

  

	15	COSTS AND EXPENSES 

  

	15.1	Transaction Expenses 

 The
Company shall, promptly following receipt of an invoice for such amount, along with reasonable details as to the nature and calculations of such amount, pay to any Finance Party the amount of all costs, fees and expenses (including, without
limitation, out-of-pocket expenses (including any incurred by any participant) and all fees and expenses of the Lenders’ External Advisers (subject to any fee arrangements pursuant to the respective terms of engagement)) reasonably incurred by
any of them in connection with the negotiation, preparation, printing, and execution of: 
  

	 	(a)	this Agreement and any other documents referred to in this Agreement; and 

  

	 	(b)	any other Finance Documents executed prior to, on or after the date of this Agreement. 

  

					
		 	44	 	

	15.2	Amendment Costs 

 If the Company
requests any amendment or waiver of any of the terms of any Finance Document, or any consent thereunder, the Company shall, promptly, following receipt of an invoice for such amount from the Global Agent or any Finance Party, along with reasonable
details as to the nature and calculations of such amount, reimburse each Finance Party for the amount of all costs and expenses (including, without limitation, out-of-pocket expenses and all fees and expenses of the Lenders’ External Advisers
(subject to any fee arrangements pursuant to the respective terms of engagement)) reasonably incurred by any Finance Party in responding to, evaluating, negotiating or complying with that request or requirement. 

 

	15.3	Enforcement Costs 

 The Company
shall on first demand, following receipt of an invoice for such amount, along with reasonable details as to the nature and calculations of such amount, pay to each Finance Party the amount of all costs and expenses (including, without limitation,
out-of-pocket expenses and all fees and expenses of the Lenders’ External Advisers) incurred by that Finance Party in connection with the enforcement of, or the preservation of any rights under, any Finance Document. 

 

	15.4	Advisors 

 The Company shall
promptly, following receipt of an invoice for such amount, along with reasonable details as to the nature and calculations of such amount, and subject, in each case, to any specific fee arrangement agreed by the Global Agent (acting on the
instructions of the Lenders) with the Company in respect thereof, pay to such Person the amount of all costs, fees and expenses owed to each of the Lenders’ External Advisers and to the extent that any Finance Party has paid any such costs,
fees or expenses, promptly on demand following receipt of an invoice for such amount, along with reasonable details as to the nature and calculations of such amount, reimburse such Finance Party for the same. 

  

					
		 	45	 	

	16	FINANCIAL REPORTS 

  

	16.1	Financial Information 

 The
Company shall: 
  

	 	(a)	Quarterly Information: as soon as available, but in any event within forty five (45) days after the end of the first three quarters of each Financial Year,
deliver to the Global Agent: 

  

	 	(i)	a copy of the complete unaudited financial statements for such quarter for the Company substantially in the form set out in Schedule 9 (Form of Financial
Statements); 

  

	 	(ii)	a report on any internal or external factors materially affecting or which might materially affect the Company’s business and operations or its financial
condition. 

  

	 	(b)	Annual Information: as soon as available, but in any event within one hundred and twenty (120) days after the end of each Financial Year deliver to the
Global Agent a copy of its complete and audited financial statements together with the Auditors’ audit report on them (and a copy of any management letter to the extent delivered by the Auditors and/or other communication from the Auditors) for
that Financial Year commenting, with respect to that Financial Year, on, among other things, the adequacy of the Company’s financial control procedures, accounting systems and management information system. 

 

	16.2	Requirements as to Financial Statements 

 The Company shall ensure that: 
  

	 	(a)	each set of financial statements delivered pursuant to Clause 16.1 (Financial Information) shall be: 

 

	 	(i)	substantially in the form set out in Schedule 9 (Form of Financial Statements); 

 

	 	(ii)	prepared in accordance with the Accounting Principles consistently applied subject to customary year-end adjustments and absence of footnotes; and

  

	 	(iii)	except in relation to Clause 16.1(b) (Annual Information) above, certified by an Authorised Representative of the Company as giving a true and fair view of its
financial condition as at the end of the period to which those financial statements relate and of the results of its operations during such period; 

  

	 	(b)	each set of financial statements delivered pursuant to Clause 16.1(b) (Financial Information), provides separately for the Kenyan branch of the Company and has
been audited by the Auditors or another internationally recognised firm of independent auditors acceptable to the Global Agent (acting on the instructions of the Lenders); and 

 

	 	(c)	 each set of financial statements or information and other information delivered pursuant to paragraphs (a) or (b) of Clause 16.1
(Financial Information) is prepared in the English language or is accompanied by an 

  

					
		 	46	 	

	 	
English translation certified by an Authorised Representative of the Person making or delivering the same as being a true and accurate translation thereof. 

 

	16.3	Change to Accounting Policies 

  

	 	(a)	If at any time (and whether or not as a result of any change in law or accounting practice) the Company changes or proposes to change (which change is not manifestly
immaterial) the accounting policies upon which its financial statements are prepared, then: 

  

	 	(i)	the Company shall, as soon as reasonably practicable, notify the Global Agent of such change or proposed change; 

 

	 	(ii)	the Company and the Global Agent (acting on the instructions of all the Lenders) shall enter into negotiations in good faith with a view to agreeing:

  

	 	(A)	whether or not such change or proposed change to such accounting policies could reasonably be expected to result in any material alteration in the commercial effect of
any of the terms of the Finance Documents; and 

  

	 	(B)	if so, any amendments to the Finance Documents which may be necessary in order to ensure that such change or proposed change to the accounting policies does not result
in any material alteration in the commercial effect of such terms, 

 and, if any such amendments are agreed and
approved by the Company and the Global Agent (acting on the instructions of all the Lenders), they shall take effect and be binding upon each of the parties hereto in accordance with their terms; and 

 

	 	(iii)	unless and until the Company and the Global Agent (acting on the instructions of all the Lenders) reach agreement in accordance with paragraph (b) above, the
Company shall use all reasonable endeavours to ensure that all financial statements delivered pursuant to Clause 16.1 (Financial Information) shall contain a description of such change and the adjustments which would be required to be made to
such financial statements so that such financial statements reflect the accounting policies before such change or proposed change was made. 

  

	 	(b)	 A change from GAAP to IFRS is hereby agreed by the Finance Parties provided that the Company shall in the Financial Year in which such change occurs
provide financial statements pursuant to Clause 16.1 (Financial 

  

					
		 	47	 	

	 	
Information) which contain a description of such change and the adjustments which would be required to be made to such financial statements so that such financial statements reflect the
accounting policies before such change or proposed change was made. 

  

	17	REPORTING REQUIREMENTS 

  

	17.1	Reporting Requirements 

 The
Company shall provide the following: 
  

	 	(a)	Operating Report: no later than forty five (45) days after the end of each Interest Payment Date to the Global Agent. 

 

	 	(b)	Operating Budget: to the Global Agent, as soon as it is available, but in any event at least thirty (30) days prior to the commencement of each Financial
Year. 

  

	 	(c)	Annual Environmental and Social Monitoring Report: on an annual basis, but in no event later than thirty (30) days after the end of each Financial Year,
deliver to the Global Agent an Annual Environmental and Social Monitoring Report confirming compliance with the Environmental and Social Requirements or, as the case may be, detailing any non-compliance and setting out the action being taken to
ensure compliance. 

  

	 	(d)	Accidents: as soon as possible, but no later than five (5) days after becoming aware of its occurrence, notify the Global Agent of any incident or accident
which has occurred in connection with any aspect of the Project and which has or may reasonably be expected to have an adverse effect on the environment, health or safety, including explosions, spills or workplace accidents which result in death,
serious injury or major pollution, specifying, in each case the nature of the incident or accident, to the extent available or known at that time, the impacts on or off the Site arising or likely to arise there-from and the measures the Company is
taking or plans to take to address those impacts; and keep the Global Agent informed of the on-going implementation of those measures. 

  

	 	(e)	Litigation or proceedings: promptly upon becoming aware of any litigation or administrative proceedings commenced or threatened against the Company before any
Authority or arbitral body which has resulted in or may reasonably be expected to result in a Material Adverse Effect, notify the Global Agent of that event specifying the nature of that litigation or those proceedings and the steps the Company is
taking or proposes to take with respect thereto. 

  

					
		 	48	 	

	 	(f)	Notification of Default: promptly, upon the occurrence of a Default, notify the Global Agent, specifying the nature of that Default and any steps the Company is
taking to remedy it. 

  

	 	(g)	Other Information: promptly provide any other information as the Global Agent (acting on the instructions of the Lenders, acting reasonably) from time to time
requests about the Company, its assets and the Project. 

  

	 	(h)	KYC: if any change in any law or regulation, any change in the status of the Company, or a proposed assignment or transfer by a Lender of any of its rights and
obligations under the Finance Documents to a party that is not a Lender prior to such assignment or transfer, obliges any Lender to comply with “know your customer” or similar identification procedures in circumstances where the necessary
information is not already available to it, the Company shall as soon as reasonably practical upon the request of any Lender supply such documentation and other evidence (including that relating to the Shareholder or the Sponsor) as is requested.

  

	 	(i)	Amendments to the Environmental Impact Assessment and Environmental and Social Management Plan: provide copies of any amendment or supplement to the
Environmental Impact Assessment or any part of the Environmental and Social Management Plan amended or supplemented in accordance with Clause 25.1 (Amendments to the Environmental Impact Assessment and Environmental and Social Management
Plan). 

  

	 	(j)	Material change: promptly notify the Global Agent of any proposed material change by the Company or Guarantor in its obligations under any Finance Document, in
the nature or scope of the Project or the business or operations of the Company. 

  

	 	(k)	Project Information: promptly provide to the Global Agent: 

  

	 	(i)	to the extent the Company is undertaking any expansion of the Plant to increase its MW size, a copy of the independent engineer’s report in relation to such
expansion, provided that the provision of such a report is required to be delivered to OPIC in connection with the OPIC Finance Agreement, and always subject to confidentiality and limitations of liability in favour of the independent engineer;

  

	 	(ii)	details of any force majeure event that the Company is obliged to notify OPIC of (a “Force Majeure Event”) or Change in Law (as defined in the PPA) or
any claim by any party thereto alleging that a Force Majeure Event or Change in Law thereunder has occurred (together with detailed supporting statements as to the status of any Force Majeure Event or Change in Law claims, including compensation
payable or other relief therefrom); and 

  

	 	(iii)	any material deviation from the conditions of applicable Authorisations. 

  

					
		 	49	 	

	17.2	Form of Reports 

 Each of the
reports and reviews provided under paragraphs (a) to (k) of Clause 17.1 (Reporting Requirements) shall be substantially in the form of the relevant Schedule or, if not provided in a Schedule, in a form satisfactory to the Global
Agent (acting on the instructions of the Lenders, acting reasonably). 
  

	17.3	Accuracy and Completeness 

 If
the Global Agent (acting on the instruction of the Lenders (acting reasonably)), or a Lender, as the case may be, is of the opinion that a Project Report provided pursuant to Clause 17.1 (Reporting Requirements) is not correct, complete,
accurate and up-to-date, the Global Agent (acting on the instruction of the Lenders (acting reasonably)) or a Lender, as the case may be, may request all such further information as it reasonably requires to satisfy itself as to such Project Report
and shall also be entitled to re-submit such Project Report to the Company for amendment in accordance with the instructions of the Global Agent (acting on the instruction of the Lenders (acting reasonably)) or a Lender (acting reasonably), as the
case may be. If the Company does not agree with the analysis of the Global Agent (acting on the instruction of the Lenders (acting reasonably)) or a Lender, as the case may be, the Company and the Global Agent (acting on the instructions of the
Lenders) shall discuss such amendments in good faith for fourteen (14) days from the notification by the Global Agent (acting on the instruction of the Lenders) or a Lender as the case may be. If, following any comments from and consultation
with OPIC, the Company updates any report delivered by it under the OPIC Finance Agreement, which report is of substantially the same form and substance as a Project Report delivered under this Agreement, the Company shall give to the Global Agent
an updated Project Report which takes into account the review and comments from OPIC on the report delivered to OPIC, which updated Project Report shall satisfy the Global Agent for the purposes of this Clause. 

  

					
		 	50	 	

	18	EXPERT 

[Omitted] 
  

	19	REPRESENTATIONS AND WARRANTIES 

  

	19.1	Representations and Warranties 

Except as otherwise disclosed by the Company in writing and acknowledged by the Global Agent on or prior to the date hereof, the Company
represents and warrants to each of the Finance Parties on the date of this Agreement that: 
  

	 	(a)	Incorporation: the Company is a company limited by shares and duly incorporated and validly existing under the laws of the Cayman Islands and duly registered as
a foreign company having a place of business in the Republic of Kenya in accordance with Part X of the Kenyan Companies Act and has the corporate power to own its assets, conduct its business as presently conducted or proposed to be conducted and to
enter into, and comply with its obligations under, the Finance Documents to which it is a party or will, in the case of any Finance Document to which it is a party not executed as at the date of this Agreement, when that Finance Document is
executed, have the corporate power to enter into, and comply with its obligations under, that Finance Document; 

  

	 	(b)	Binding Obligation: subject to the Legal Reservations, each Finance Document to which the Company is a party has been, or will be, duly authorised and executed
by the Company and the obligations expressed to be assumed by it thereunder constitutes, or will, when executed, constitute, a valid and legally binding obligation of the Company, enforceable in accordance with its terms, except as such
enforceability may be limited by bankruptcy, insolvency, reorganisation, moratorium, liquidation, winding-up or other similar laws of general applicability affecting the enforcement of creditors’ rights generally; 

 

	 	(c)	No Conflict: neither the making of any Finance Document to which the Company is a party nor the compliance with its terms: 

 

	 	(i)	will conflict with or result in a breach of any of the terms, conditions or provisions of, or constitute a default or require any consent under, any indenture,
mortgage, agreement or other instrument or arrangement to which the Company is a party or by which it is bound; or 

  

	 	(ii)	will violate any of the terms or provisions of the Company’s Charter Documents or laws applicable to the Company; or 

 

	 	(iii)	will violate any Authorisation or other rule or regulation applicable to the Company, 

  

					
		 	51	 	

 other than to the extent that, in respect of paragraphs (i) and (iii) only, no
Material Adverse Effect results or would be reasonably likely to result; 
  

	 	(d)	Charter Documents: except as set forth in a copy provided to the Global Agent, the Company’s Charter Documents have not been amended since the date of those
provided by way of condition precedent to first Disbursement; 

  

	 	(e)	No Immunity: neither the Company nor any of its property enjoys any right of immunity from set-off, suit, execution attachment or other legal process with
respect to its assets or itself; 

  

	 	(f)	Governing Law and Judgments: subject to the Legal Reservations, in any proceedings taken in its jurisdiction of incorporation in relation to any of the Finance
Documents expressed to be governed by English law, the choice of English law as the governing law of those Finance Documents and any judgment obtained in England will be recognised and enforced; 

 

	 	(g)	No Material Adverse Effect: to the best of the Company’s knowledge and belief, after due enquiry, since the date of this Agreement no event or circumstance
has occurred which has resulted in a Material Adverse Effect which is continuing; 

  

	 	(h)	Financial Statements: the most recent financial statements of the Company delivered to the Global Agent pursuant to the provisions of this Agreement (if any)
have been prepared in accordance with the Accounting Principles, and give a true and fair view of the financial condition of the Company as of the date as of which they were prepared and the results of the Company’s operations during the period
then ended; 

  

	 	(i)	No Liens: the Company has no outstanding Lien on any of its assets other than Permitted Liens, and no contracts or arrangements, conditional or unconditional,
exist for the creation by the Company of any Lien, except for Permitted Liens; 

  

	 	(j)	Taxes: all Tax returns and reports of the Company required by law to be filed have been duly filed and all Taxes, obligations, fees and other governmental
charges upon the Company, or its properties, or its income or assets, which are due and payable or to be withheld, have been paid or withheld, other than those presently payable without penalty or interest or which are being contested in good faith
and in respect of which appropriate reserves have been made in accordance with the Accounting Principles to the extent required; 

  

					
		 	52	 	

	 	(k)	No Litigation: the Company is not engaged in nor, to the best of its knowledge after due enquiry, threatened in writing by, any litigation, arbitration or
administrative proceedings which, if determined in a manner adverse to the Company by a final non-appealable judgment or decision of a court, arbitral tribunal or administrative or other body would result in or could reasonably be expected to result
in a Material Adverse Effect; 

  

	 	(l)	No Violation: to the best of its knowledge and belief, the Company is not in violation of any applicable law or regulation; 

 

	 	(m)	No Adverse Judgment: no judgment or order has been issued which has resulted, or would result, in a Material Adverse Effect; 

 

	 	(n)	Environmental and Social: 

  

	 	(i)	to the best of its knowledge, after due enquiry, the baseline assumptions contained in the Environmental Impact Assessment accurately reflects the baseline
environmental and social conditions at the Site and any surrounding areas which the Environmental Impact Assessment may impact; 

  

	 	(ii)	to the best of its knowledge, after due enquiry, the Environmental and Social Management Plan contains all measures and actions to achieve ongoing compliance with the
Environmental and Social Requirements; 

  

	 	(iii)	to the best of its knowledge, after due enquiry, the Company is in compliance with: 

 

	 	(A)	all Environmental Laws; 

  

	 	(B)	the Environmental and Social Management Plan; and 

  

	 	(C)	in all material respects with the remaining Environmental and Social Requirements in accordance with Clause 20.1(i) (Compliance with Environmental and Social
Requirements); 

  

	 	(iv)	the Company has not received nor is aware of any existing or threatened complaint, order, directive, claim, citation or notice from any Authority or any material
written communication from any person with respect to its non-compliance with any aspect of the Environmental and Social Requirements nor is it aware of any facts, circumstances or occurrences that could reasonably be expected to give rise to such
claims or communications; 

  

					
		 	53	 	

	 	(v)	to the best of its knowledge and belief, after due inquiry, there is not now, and has not since the date of the Company’s occupation of the Site, any:

  

	 	(A)	toxic or hazardous waste or substances generated, used, treated, released, stored, recycled or disposed of (other than as is required in order to carry out a geothermal
power project such as the Project in accordance with Prudent Utility Practices); 

  

	 	(B)	evidence of soil or groundwater contamination; 

  

	 	(C)	underground storage tanks; 

  

	 	(D)	asbestos; 

  

	 	(E)	polychlorinated biphenyls; or 

  

	 	(F)	persistent organic pollutants listed under the Stockholm Convention; 

  

	 	(o)	Formalities: under the laws of Kenya or the Cayman Islands it is not required for any purpose that any Finance Document be filed, recorded, or enrolled with any
court or other authority in Kenya or the Cayman Islands; 

  

	 	(p)	Pari Passu Ranking: the payment obligations of the Company under the Finance Documents will rank at least pari passu with the claims of all its other unsecured
payment obligations except for obligations mandatorily preferred by law applying to companies generally; 

  

	 	(q)	Stamp and Other Duties: as at the date of this Agreement, except for stamp duty in respect of each Finance Document executed as a deed, with fixed duty as of the
date of this Agreement of K.Sh 200 or executed under hand, with fixed duty as of the date of this Agreement of K.Shs 100, no stamp or registration duty or similar Tax or charge is payable in its jurisdiction of incorporation or Kenya in respect of
any Finance Document. 

  

	 	(r)	No Deduction or Withholding: under the laws of Kenya or the Cayman Islands as are in force at Financial Close it will not be required to make any deduction or
withholding, for or on account of Tax or otherwise, from any payment it may make in relation to the Loans; 

  

	 	(s)	No Default: no Default has occurred and is continuing or will result from the entry into, or the performance of any transaction contemplated by, any Finance
Document; 

  

	 	(t)	Insurances: all insurances and reinsurances which are required to be put in place by OPIC or applicable law are in place and are in full force and effect.

  

					
		 	54	 	

	 	(u)	Corporate Structure: as at the date of this Agreement, the structure of all shareholdings in the Shareholder and all Shareholdings in the Company is as set out
in the Corporate Structure Chart; 

  

	 	(v)	Prohibited Acts: the Company has not committed, and no person to its present knowledge has committed, any Prohibited Act. For the purposes of this paragraph (v),
the knowledge of any member of the board of directors of the Company shall be deemed the knowledge of the Company; 

  

	 	(w)	No illicit origin of funds: 

  

	 	(i)	neither its shareholder capital nor any other funds for the financing of the Project are of illicit origins with regard to the domestic law of the Company’s nation
state or French law and, in particular, this list being non-exhaustive, is not related to drug trafficking, fraud related to the financial interests of the European Union, corruption, bribery, organised crime, criminal activities or terrorism; and

  

	 	(ii)	the negotiation, signing and execution of the Finance Documents have not and will not give rise to any Extraordinary Commercial Costs. 

 

	 	(x)	Use of Proceeds: the proceeds of each Disbursement have been used in accordance with Clause 3.1 (Purpose); 

 

	 	(y)	No Omission: to the best of the Company’s knowledge and belief, having made due enquiry, none of the representations and warranties in this Clause 19.1
(Representations and Warranties) omits any matter the omission of which makes any of such representations and warranties misleading; and 

  

	 	(z)	Other Debt Service Obligations: the Company is in material compliance with all its payment obligations in respect of Debt, its Debt Service Obligations (other
than the Loans) and is in full compliance with its payment and other material obligations under the OPIC Finance Agreement. 

  

	19.2	Lenders’ Reliance 

 The
Company acknowledges that it makes the representations and warranties in Clause 19.1 (Representations and Warranties) with the intention of inducing each of the Finance Parties (and each participant in any Facility) to enter into this
Agreement and the other Finance Documents and that each of the Finance Parties (and each participant in any Facility) enters into this Agreement and the other Finance Documents on the basis of, and in full reliance on, each of such representations
and warranties. 

  

					
		 	55	 	

	19.3	Repetition 

 Save in respect of
matters notified in writing to and approved by the Global Agent (acting on the instructions of the Lenders) and except as provided in paragraph (b) below, each representation is made on the date of this Agreement and shall be deemed to be
repeated (by reference to the facts and circumstances then subsisting except where express reference is made to matters subsisting on a particular date) on: 
  

	 	(a)	each Disbursement Date both before and after giving effect to the relevant Disbursement; and 

 

	 	(b)	the first day of each Interest Period, 

 provided, however, that the representations set out in paragraphs (o) (Formalities), (q) (Stamp and Other Duties) or (r) (No Deduction or Withholding), of this Clause
19.1 (Representations and Warranties) shall only be made on the date of this Agreement and shall not be, and shall not be deemed to be, repeated on any of the dates referred to in paragraphs (a) or (b) of this Clause 19.3
(Repetition). 
  

	20	AFFIRMATIVE COVENANTS 

  

	20.1	Affirmative Covenants 

 The
Company undertakes to each Finance Party that it shall comply with the following affirmative covenants at all times prior to the Final Termination Date, other than with the consent of the Lenders: 

 

	 	(a)	Preservation of rights: take all actions necessary to preserve its existence and its corporate rights, franchises, licences and patents;

  

	 	(b)	Conduct of Business: carry out the Project and conduct its business with due diligence and efficiency and in accordance with: 

 

	 	(i)	all applicable laws; 

  

	 	(ii)	Prudent Utility Practices; and 

  

	 	(iii)	sound engineering, financial and business practices; 

  

	 	(c)	Application of Financing: cause the financing specified in the Financial Plan to be applied exclusively as permitted by Clause 3.1 (Purpose);

  

	 	(d)	Accounting Systems: install and maintain an accounting and cost control system, management information systems and books of account and other records, which
together adequately reflect truly and fairly the financial condition of the Company and the results of its operations in conformity with the Accounting Principles; 

  

					
		 	56	 	

	 	(e)	Insurances: obtain and maintain, or cause to be obtained and maintained at all times, insurance and/or reinsurance in respect of the Project as required by OPIC
or in accordance with applicable laws; 

  

	 	(f)	Auditors: appoint and maintain at all times a reputable international firm of internationally recognised independent public accountants acceptable to the Global
Agent (acting on the instructions of the Lenders) as the Auditors; 

  

	 	(g)	Communication with Auditors: 

  

	 	(i)	irrevocably authorise the Auditors (whose fees and expenses shall be for the account of the Company) to: 

 

	 	(A)	respond directly to communications (oral or written) from the Global Agent at any time regarding the Company’s accounts and operations; and

  

	 	(B)	allow each of the Finance Parties to rely on all audits of any financial statements prepared by it which the Company is required to provide copies of to the Global
Agent pursuant any of the Finance Documents, 

 provided that the Global Agent shall provide the Company with
copies of its communications to the Auditors, including notices and requests for information (or in the case of oral communications, confirmation as to the nature of such communications), and will provide the Company with the opportunity to
participate in discussions or meetings except where, in the reasonable opinion of the Global Agent (acting on the instructions of the Lenders) (as the case may be), timing does not so permit or its rights or interests are prejudiced or placed in
jeopardy by permitting such participation; and 
  

	 	(ii)	provide to the Global Agent a copy of that authorisation, and, no later than thirty (30) days after any change in Auditors, issue a similar authorisation to the
new Auditors and provide a copy thereof to the Global Agent; and 

  

	 	(iii)	procure that the Auditors provide an acknowledgement to the Global Agent of their acceptance of the terms of such authorisation in a form acceptable to the Global Agent
(acting on the instructions of the Lenders) and addressed to the Global Agent; 

  

					
		 	57	 	

	 	(h)	Access and Inspection: 

  

	 	(i)	permit a maximum of two (2) representatives of each Lender (who may be accompanied by representatives of any competent body of the European Community) and, in
respect of paragraph (A) below only, any representatives of the shareholders of each Lender or Participant (provided the costs and expenses of such representatives of the shareholders are for the account of the Lender or Participant) at
reasonable times and on reasonable prior written notice (and provide the representatives with all necessary assistance) to: 

  

	 	(A)	visit the Site, installations and works comprising the Project; 

  

	 	(B)	conduct such checks as they may reasonably wish; 

  

	 	(C)	in the case of the representatives of the Lenders only, have access to the Company’s books of account, technical and statistical data, records and other data (and
to take copies of any such material); and 

  

	 	(D)	in the case of the representatives of the Lenders only, have access to those employees, contractors and agents of the Company who have or may have knowledge of matters
with respect to the Project and as to which the Lenders seek information, 

 subject in all cases under paragraph
(i) above to compliance by the Lenders and any other visitors accompanying the Lenders during such site visits with all applicable social and environmental, health and safety rules and regulations and all applicable Company policies and
procedures (including in respect of confidentiality). 
  

	 	(i)	Compliance with Environmental and Social Requirements: through its employees, agents, contractors and subcontractors, operate, maintain, implement and monitor
the Project in compliance with all Environmental and Social Requirements and the Environmental and Social Management Plan, provided that if there is a material change in the IFC Performance Standards after the date of this Agreement, the Company and
the Lenders shall meet and negotiate in good faith whether and how the Company will be required to comply with such change (if there is no agreement, no Default shall occur in respect of this paragraph if the Company fails to comply with the
relevant change). 

  

	 	(j)	Operation of the Plant: operate and maintain the Plant: 

  

	 	(i)	in accordance with Environmental and Social Requirements; 

  

					
		 	58	 	

	 	(ii)	in a safe and efficient manner; 

  

	 	(iii)	in accordance with the requirements of the Finance Documents; and 

  

	 	(iv)	in accordance with Prudent Utility Practices. 

  

	 	(k)	Compliance with Laws: comply with all laws and regulations; 

  

	 	(l)	Payment of Taxes: promptly pay all Taxes when due (or within any applicable grace period prescribed by law), except when such Taxes are being contested in good
faith by the Company and the Company has set aside reserves for such Taxes as and to the extent required by the Accounting Principles; 

  

	 	(m)	Prohibited Acts: 

  

	 	(i)	take such action as the Global Agent (acting on the instructions of the Lenders) shall reasonably request to: 

 

	 	(A)	investigate and/or terminate any alleged or suspected Prohibited Act; 

  

	 	(B)	if applicable, inform the Global Agent of the measures taken to seek damages from the Person(s) responsible for any material loss resulting from any such Prohibited
Act, and 

  

	 	(C)	reasonably facilitate any investigation that the Lenders may make concerning any such Prohibited Act; 

 

	 	(ii)	inform the Global Agent if it should become aware of any fact or information suggestive of the committing of any Prohibited Act; 

 

	 	(n)	Anti money laundering: 

  

	 	(i)	inform the Global Agent: 

  

	 	(A)	of all amendments to its statutes, memorandum, articles or other constitutional documents which the law stipulates must be published; 

 

	 	(B)	of all transactions which would entail a change in ownership relating to 5% or more of its capital or a change in its Control, either directly or indirectly;

  

	 	(C)	 without undue delay if the Company obtains information which gives rise to suspicions regarding the illicit nature,

  

					
		 	59	 	

	 	with regard to the domestic law of the Company or French law, of funds used in the acquisition of its shareholder capital and, in particular but without limitation, if
such funds could relate to drug trafficking, fraud related to the financial interests of the European Union, corruption, bribery, organised crime, criminal activities or terrorism; and 

 

	 	(ii)	request from the bank charged with carrying out the transfers that the bank correctly records the following information in any funds transfer messages:

  

	 	(A)	the instructing party’s name, address and account numbers (IBAN and SWIFT); 

 

	 	(B)	bank and bank address of the instructing party; and 

  

	 	(C)	Project name and agreement number for the payment. 

  

	 	(o)	No illicit origin of funds: ensure that: 

  

	 	(i)	neither its shareholder capital or the funds financing the Project are of illicit origins with regard to the domestic law of the Company’s nation state or French
law and, in particular, this list being non-exhaustive, are not related to drug trafficking, fraud related to the financial interests of the European Union, corruption, bribery, organised crime, criminal activities or terrorism; and

  

	 	(ii)	the negotiation, signing and execution of the Finance Documents have not and will not give rise to any Extraordinary Commercial Expenses; 

 

	 	(p)	HIV Protective Measures: implement workplace policies and guidelines in accordance with Schedule 5 (HIV Protective Measures); 

 

	 	(q)	Retention of Records: retain, in a single location, for inspection by or on behalf of the Lenders during six (6) years from the conclusion of each contract
financed by means of the Loans, the full terms of the contract itself, as well as all material documents pertaining to the procurement process and to the execution of the contract. 

 

	 	(r)	Other Debt Service Obligations: materially comply with all its payment obligations in respect of Debt, its Debt Service Obligations (other than the Loans) and
fully comply with its payment and other material obligations under the OPIC Finance Agreement. 

  

	 	(s)	 Non-Collateral Account: ensure that on each Interim Quarterly Date there is, or will be, after taking into account any Distribution that
the Company 

  

					
		 	60	 	

	 	
makes or proposes to make, on deposit in the Non-Collateral Account an amount equal to 50% of sums due to the Lenders on the next Repayment Date, and on each Repayment Date, make payments due to
the Lenders on such date prior to any other payments, including the payment of any Distribution. 

  

	21	NEGATIVE COVENANTS 

  

	21.1	Negative Covenants 

 The Company
undertakes to each Finance Party that it will not, prior to the Final Termination Date, other than with the consent of the Global Agent (acting on the instructions of the Lenders): 

 

	 	(a)	Further Indebtedness: incur, assume or permit to exist any Debt except: 

 

	 	(i)	the Loans; 

  

	 	(ii)	the OPIC Debt; 

  

	 	(iii)	any suppliers’ credit, lease arrangements or other Debt permitted under the OPIC Loan Agreement, provided that any increase in the amount of Debt permitted under
the OPIC Loan Agreement shall not be permitted without the express written consent of the Global Agent acting on the instructions of all Lenders under this Agreement; 

 

	 	(iv)	over and above any amounts in (20.1(a)(i), (ii) and (iii) above, Debt incurred in the ordinary course of business of up to US$10,000,000; and

  

	 	(v)	indebtedness provided by way of Shareholder Debt; 

  

	 	(b)	Change to Charter Documents: except as set forth in a copy provided to the Global Agent, change (and shall procure that no other Person shall change) its Charter
Documents in any material respect or in a manner that might impair or prejudice its ability to perform its obligations under this Agreement and any other Finance Document to which it is a party; 

 

	 	(c)	Guarantees: enter into any agreement or arrangement to guarantee or, in any way or under any condition, assume or become obligated for all or any part of any
financial or other obligation of another Person, except pursuant to any CER Documents; 

  

	 	(d)	Financial Year: change its Financial Year unless required by applicable law; 

  

					
		 	61	 	

	 	(e)	Change in Project or Business: change the nature or scope of the Project or change the nature of its business or operations; 

 

	 	(f)	Prohibited Acts: commit (or authorise or permit any Affiliate, Shareholder or any other Person acting on its behalf, with its consent or prior knowledge to
commit) with respect to the Project or any Finance Document or any transaction contemplated thereunder, any Prohibited Act; 

  

	 	(g)	Amendments to the Environmental Impact Assessment and Environmental and Social Management Plan: approve any amendment or supplement to the Environmental Impact
Assessment or any part of the Environmental and Social Management Plan, unless the amendment is made in accordance with the Environmental and Social Requirements; 

 

	 	(h)	Abandonment: abandon or agree to abandon the Project or commit any action or inaction which would give rise to an abandonment of the Project pursuant to the PPA;

  

	 	(i)	Blocked persons and embargoes: 

  

	 	(i)	enter into business relationships with specially designated nationals and blocked persons or entities maintained on the relevant lists by the United Nations, the
European Union, Germany or France in relation to embargoes or the fight against terrorism; or 

  

	 	(ii)	use any proceeds of any Loan or equity including the Base Equity Amount (or other funds), or otherwise enter into business, in relation to any sector or equipment under
such embargoes; and 

  

	 	(j)	Excluded Activities: make or permit the engagement in any of the activities referred to in Schedule 11 (Excluded Activities). 

 

	 	(k)	Distributions: make or permit any Distribution unless: 

  

	 	(i)	the Company certifies to the Global Agent in writing, that, on the proposed date of the Distribution: 

 

	 	(A)	no Default has occurred and is continuing or will occur as a result of the proposed Distribution; 

 

	 	(B)	it has paid to OPIC all amounts due and payable up until such date under the OPIC Finance Agreement; 

 

	 	(C)	on each Interim Quarterly Date there is, or will be, after taking into account any Distribution that the Company makes or proposes to make, on deposit in the
Non-Collateral Account an amount equal to 50% of sums due to the Lenders on the next Repayment Date, such deposit to be evidenced by bank statements to the extent requested by the Global Agent at any time; and 

 

	 	(D)	on any Repayment Date, payments of amounts due to Lenders have been or shall be paid out of the Non-Collateral Account in priority to any other payments, including the
payment of any Distributions. 

  

					
		 	62	 	

	22	EVENTS OF DEFAULT 

  

	22.1	Events of Default 

 It shall be
an Event of Default if any of the following occur (unless waived by the Global Agent with the consent of the Majority Lenders or of all of the Lenders, as the case may be, in accordance with Clause 33 (Amendments and Waivers)): 

 

	 	(a)	Failure to Pay: the Company fails to pay when due any part of the principal, or of the interest on, any of the Loans or any other monies falling due under any of
the Finance Documents when due unless: 

  

	 	(i)	its failure to pay is caused by: 

  

	 	(A)	administrative or technical error; or 

  

	 	(B)	a Disruption Event; and 

  

	 	(ii)	payment is made within three (3) Business Days of its due date; 

  

	 	(b)	Cross Default: the Company or the Guarantor fails to pay any indebtedness in an aggregate amount of two hundred and fifty thousand US Dollars (US$250,000) in
respect of the Company and ten million US Dollars (US$10,000,000) in respect of the Guarantor (other than the Guarantee in respect of which no threshold shall apply), and any such failure continues for more than any applicable period of grace or any
such indebtedness becomes prematurely due and payable (other than as a result of any voluntary prepayment or mandatory prepayment that is not as a result of an Event of Default) or is placed on demand; 

 

	 	(c)	Compliance with Obligations by the Company: 

  

	 	(i)	subject to paragraph (ii) below, the Company fails to comply with any of its obligations under this Agreement or any other Finance Document (other than for the
payment of the principal of, or interest on, the Loans or any other loan from any of the Lenders to the Company or in respect of the making (actual or deemed) of any representation or warranty) and any such failure continues:

  

	 	(A)	subject to paragraph (B) and (C) below, for a period of thirty (30) days after the date of that failure, provided that such thirty (30) day period
shall be extended by an additional fifteen (15) day period if: 

  

	 	(I)	the Company commenced remedial action as soon as reasonably practicable after such failure; 

  

					
		 	63	 	

	 	(II)	the Company has continued to pursue a remedy properly and diligently to the satisfaction of the Global Agent (acting on the instructions of the Lenders); and

  

	 	(III)	such remedy is reasonably likely to be effective within such additional fifteen (15) day period; or 

 

	 	(B)	in the case of the Company’s failure to perform or observe any term, covenant or agreement which expressly requires that any Finance Party be satisfied with such
performance or observance or otherwise exercise its discretion, for a period of thirty (30) days (or such longer period agreed by the Global Agent (acting on the instructions of the Lenders)) after notice by a Finance Party of any failure by
the Company to so perform or observe provided that such thirty (30)-day period shall be extended by an additional fifteen (15) days if: 

  

	 	(I)	the Company commenced remedial action as soon as reasonably practicable after such failure; 

 

	 	(II)	the Company has continued to pursue a remedy properly and diligently to the satisfaction of the Global Agent (acting on the instructions of the Lenders); and

  

	 	(III)	such remedy is reasonably likely to be effective within such additional fifteen (15) day period; and 

 

	 	(ii)	the Company fails to comply with its obligations under Clause 20.1(a) (Preservation of rights), Clause 20.1(c) (Application of Financing), Clause 20.1(m)
(Prohibited Acts), Clause 20.1(n) (Anti money laundering), or Clause 20.1(o) (No illicit origin of funds), Clause 21.1(f) (Prohibited Acts), Clause 21.1 (g) (Compliance with Environmental and Social
Requirements) and Clause 21.1(i) (Blocked Persons and Embargoes). 

  

					
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	 	(d)	Compliance with Obligations by the Guarantor: The Guarantor fails to comply with any obligations under the Guarantee, and such non-compliance has or could
reasonably be expected to have a Material Adverse Effect unless such non-compliance is remedied within any grace or cure period under the applicable Finance Document; 

 

	 	(e)	Misrepresentation: a representation, warranty or statement made or repeated pursuant to Clause 18 (Representations and Warranties) or in connection with
any Finance Document (or in any document delivered by or on behalf of the Company, or by or on behalf of the Sponsor or the Shareholder, under or in connection with any Finance Document), is incorrect in any material respect when made or deemed to
be made or repeated and, except in relation to Clause 20.1(m) (Prohibited Acts) and Clause 19.1(w) (No illicit origin of funds) or where such misrepresentation results from fraud, wilful default or negligence, has a Material Adverse
Effect at the time of discovery or publication; 

  

	 	(f)	Ownership: 

  

	 	(i)	the Sponsor fails to maintain, directly or indirectly at least 51% of the legal and beneficial ownership interest of the Company and/or fails to Control the Company;

  

	 	(ii)	the Shareholder fails to maintain, directly or indirectly no less than 100% of the Shares and the legal and beneficial ownership interest of the Company and/or fails to
Control the Company provided that the Shareholder may transfer Shares and the legal and beneficial ownership interest to a Permitted Investor in accordance with the Finance Documents; 

 

	 	(iii)	Ormat Technologies Inc. fails to Control the Company; or 

  

	 	(iv)	   

  

	 	(A)	any Shares are issued, redeemed, transferred, encumbered in any way or otherwise disposed of; or 

 

	 	(B)	except as set forth in a copy provided to the Global Agent, the Charter Documents of the Company are amended, 

in each case in a manner not permitted by the Finance Documents; 

 

	 	(g)	 Expropriation: any Authority condemns, nationalises, seizes, or otherwise expropriates all or any substantial part of the property, Shares or
other assets of the Company, or shall have assumed custody or control of such property or other assets or of the business or operations of the Company, or shall have taken any action for the dissolution or disestablishment of the

  

					
		 	65	 	

	 	
Company, or any action that would prevent the Company or its officers from carrying on its business or operations or prevent any of the parties to any of the Finance Documents from performing
their respective obligations thereunder; 

  

	 	(h)	Judgment entered: there shall have been entered against the Company a final judgment, decree or order for the payment of money in excess of five hundred thousand
US Dollars (US$500,000), which judgment shall remain unpaid for thirty (30) days after it shall have become final and non-appealable; 

  

	 	(i)	Insolvency: any of the Major Project Parties: 

  

	 	(i)	takes any step (including petition, giving notice to convene or convening a meeting) for the purpose of making, or proposes or enters into, any arrangement, assignment
or composition with or for the benefit of its creditors; 

  

	 	(ii)	ceases or threatens to cease to carry on its business or any substantial part of its business; or 

 

	 	(iii)	is unable to pay its debts as they fall due or otherwise becomes insolvent. 

 

	 	(j)	Winding Up: an order is made or an effective resolution passed or analogous proceedings taken for the winding up, bankruptcy or dissolution of any of the Major
Project Parties or a petition is presented or analogous proceedings taken for the winding up or dissolution of a Major Project Party, by any Person and is not withdrawn or dismissed within sixty (60) days of the date of filing thereof;

  

	 	(k)	Appointment of Officer: any encumbrancer lawfully takes possession, or a liquidator, judicial custodian, receiver, administrative receiver or trustee or any
analogous officer is appointed, of the whole or any material part of the undertaking or assets of any of the Major Project Parties; 

  

	 	(l)	Analogous Events: any other event occurs which under any applicable law would have an effect analogous to any of those events listed in Clause 22.1(f)
(Insolvency), Clause 22.1(j) (Winding Up) and Clause 22.1(k) (Appointment of Officer); 

  

	 	(m)	Abandonment: 

  

	 	(i)	the Company abandons the Project; or 

  

	 	(ii)	ceases to perform its operations and maintenance services in respect of the Plant for a continuous period in excess of thirty (30) days in any year, other than as
a result of Force Majeure Event, or for periods which in aggregate exceed 60 days other than as a result of a Force Majeure Event; 

  

					
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	 	(n)	Material Adverse Effect: any event or circumstance occurs or series of events occur which has a Material Adverse Effect; 

 

	 	(o)	Prohibited Acts: the Company commits (or authorises or permits any Major Project Party or any other person acting on its behalf to commit) with respect to the
Project any Prohibited Act; 

  

	 	(p)	Anti-money Laundering: the Company is in default in the due performance of any of its obligations under Clause 20.1(m) (Prohibited Acts), Clause 20.1(n)
(Anti money laundering), Clause 19.1(w) (No illicit origin of funds) or Clause 21.1(i) (Blocked persons and embargoes); and 

  

	 	(q)	Distributions: the Company makes any Distributions otherwise than in accordance with Clause 21.1(k) (Distributions). 

 

	22.2	Remedies on an Event of Default 

Upon the occurrence of and during the continuance of an Event of Default, the Majority Lenders (or in the case of either the DEG A Loan or
DEG B Loan and after a ten (10) day consultation period with all Lenders, the DEG A Lender alone or the DEG B Lender alone and only in respect of amounts due to either the DEG “A Lender under the DEG A Loan or to the DEG “B”
Lender under the DEG B Loan,) may declare an Event of Default and accelerate the Loans, and exercise any or all remedies set out under the Finance Documents, including the following: 

 

	 	(a)	cancel or suspend the commitments of the Lender or Lenders under the applicable Loan Agreements and this Agreement; 

 

	 	(b)	declare the principal amount of the Loans together with accrued interest thereon and any other outstanding amounts under the relevant Loan Agreements and this Agreement
to be immediately due and payable or repayable on demand; 

  

	 	(c)	cancel or suspend further Disbursements; 

  

	 	(d)	instructing the Global Agent to make a claim under the Guarantee for payment from the Guarantor for payment of any or all amounts due or to accelerate the entire Loan
or Loans together with accrued interest thereon and any other outstanding amounts under the relevant Loan Agreements; and 

  

	 	(e)	exercise all other rights available to any of the Finance Parties under the Finance Documents. 

  

					
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	22.3	Bankruptcy 

 Upon the occurrence
of an Event of Default of the type described in Clauses 22.1 (g) (Expropriation), 22.1(j) (Insolvency), Clause 22.1(j) (Winding Up), Clause 22.1(k) (Appointment of Officer) or 22.1(l) (Analogous Events), the
Loans, all interest accrued on them and any other amounts payable under this Agreement or the Loan Agreements will become immediately due and payable without any presentment, demand, protest or notice of any kind, all of which the Company waives.

  

	23	CHANGES TO LENDERS 

  

	23.1	Assignments and Transfers by the Lenders 

 Subject to the provisions of the relevant Loan Agreement, a Lender may: 
  

	 	(a)	assign any of its rights; 

  

	 	(b)	transfer by novation any of its rights and obligations; or 

  

	 	(c)	participate or sub-participate any of its Available Commitment or its share of any outstanding Loans, 

to another bank or financial institution (in the case of assignments and transfers by novation, such bank or financial institution being
the “New Lender”), in each case, provided that such transfer, assignment, participation or sub-participation of any portion of the Lender’s Available Commitment or its share of the outstanding Loans under any Facility shall be
made in accordance with the provisions of: 
  

	 	(i)	the relevant Loan Agreement; 

  

	 	(ii)	the Subordination Agreement; and 

  

	 	(iii)	this Clause 23 (Changes to Lenders). 

  

	23.2	Procedure for Assignment or Transfer 

  

	 	(a)	Subject to Clause 23.1 (Assignments and Transfers by the Lenders) and the relevant Loan Agreement, an assignment will only be effective on receipt by the Global
Agent of written confirmation from the New Lender, such confirmation to be in the form set out in Schedule 4 (Form of Accession Letter), that the New Lender will be bound by the obligations of the Finance Documents and will assume the same
obligations to the other Finance Parties as it would have been under if it were an Original Lender. 

  

	 	(b)	Subject to Clause 23.1 (Assignments and Transfers by the Lenders) and the relevant Loan Agreement, a transfer will only be effective on:

  

	 	(i)	receipt by the Global Agent of a Transfer Certificate, together with duly executed accession documents, pursuant to which the New Lender has acceded to such other
documents as are necessary to enable the New Lender to assume all of the rights and obligations of the Lender under the Finance Documents; 

  

					
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	 	(ii)	execution by the Global Agent of the Transfer Certificate, which it shall execute as soon as reasonably practicable after receipt of a duly completed Transfer
Certificate appearing on its face to comply with the terms of this Agreement and delivered in accordance with the terms of this Agreement; and 

  

	 	(iii)	receipt of the consent of the Company for an assignment or transfer by a Lender, unless the assignment or transfer is to another existing Lender or an Affiliate of a
Lender or a Default has occurred and is continuing and provided that: 

  

	 	(A)	the consent of the Company to an assignment or transfer must not be unreasonably withheld or delayed; 

 

	 	(B)	the Company will be deemed to have given its consent seven (7) days after the Lender has requested it unless consent is expressly refused by the Company within
that time; and 

  

	 	(C)	the consent of the Company to an assignment or transfer must not be withheld solely because the assignment or transfer may result in an increase to the Mandatory Cost.

  

	 	(c)	If: 

  

	 	(i)	a Lender assigns or transfers any of its rights or obligations under the Finance Documents or changes its Facility Office; and 

 

	 	(ii)	as a result of circumstances existing at the date the assignment, transfer or change occurs, the Company would be obliged to make a payment to the New Lender or Lender
acting through its new Facility Office under Clause 11.1 (Gross-up) or Clause 11.2 (Tax Indemnity) or Clause 12 (Increased Costs), 

 then the New Lender or Lender acting through its new Facility Office is only entitled to receive payment under those Clauses to the same extent as the Lender or Lender acting through its previous Facility
Office would have been if the assignment, transfer or change had not occurred. 

  

					
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	 	(d)	On the Transfer Date: 

  

	 	(i)	to the extent that in the Transfer Certificate the Lender transfers by novation any of its rights and obligations under the Finance Documents, the Company and the
Lender shall be released from further obligations towards one another in respect of such rights and obligations under the Finance Documents and their respective rights against one another shall be cancelled (being the “Discharged Rights and
Obligations”); 

  

	 	(ii)	the Company and the New Lender shall assume obligations towards one another and/or acquire rights against one another which differ from the Discharged Rights and
Obligations only insofar as the Company and the New Lender have assumed and/or acquired the same in place of the Company and the Lender; 

  

	 	(iii)	the New Lender and the other Finance Parties shall acquire the same rights and assume the same obligations between themselves as they would have acquired and assumed
had the New Lender been an Original Lender with the rights and/or obligations acquired or assumed by it as a result of the transfer and to that extent the Lender and the other Parties hereto shall each be released from further obligations to each
other under this Agreement; and 

  

	 	(iv)	the New Lender shall become a Party as a “Lender”. 

  

	23.3	Copy of Transfer Certificate to Company 

 The Global Agent shall, as soon as reasonably practicable after it has executed a Transfer Certificate, send to the Company a copy of that Transfer Certificate. 

 

	23.4	Limitation of Responsibility of Lenders 

  

	 	(a)	Unless expressly agreed to the contrary, a Lender makes no representation or warranty and assumes no responsibility to a New Lender for: 

 

	 	(i)	the legality, validity, effectiveness, adequacy or enforceability of the Finance Documents or any other documents; 

 

	 	(ii)	the financial condition of any Major Project Party; 

  

	 	(iii)	the performance and observance by any Major Project Party of its obligations under the Finance Documents; or 

 

	 	(iv)	the accuracy of any statements (whether written or oral) made in or in connection with any Finance Documents, 

and any representations or warranties implied by law are excluded. 

  

					
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	 	(b)	Each New Lender confirms to the Lender and the other Finance Parties that it: 

 

	 	(i)	has made (and shall continue to make) its own independent investigation and assessment of the financial condition and affairs of each Major Project Party and its
related entities in connection with its participation in the Finance Documents and has not relied exclusively on any information provided to it by the Lender in connection with any Finance Documents; and 

 

	 	(ii)	will continue to make its own independent appraisal of the creditworthiness of each Major Project Party and its related entities whilst any amount is or may be
outstanding under the Finance Documents or any Available Commitment under any Loan Agreement is in force. 

  

	 	(c)	Nothing in any Finance Document obliges a Lender to: 

  

	 	(i)	accept a re-transfer from a New Lender of any of the rights and obligations assigned or transferred under this Clause 234 (Changes to the Lenders); or

  

	 	(ii)	support any losses directly or indirectly incurred by the New Lender by reason of the non-performance by any Major Project Party of its obligations under the Finance
Documents or otherwise. 

  

	23.5	Assignment or transfer fee 

 The
New Lender shall (unless such New Lender is an Original Participant), on the date upon which an assignment or transfer takes effect, pay to the Global Agent (for its own account) a fee of two thousand five hundred US Dollars (US$2,500). 

 

	24	ASSIGNMENTS AND TRANSFERS BY THE PARTIES 

 No Party may assign any of its rights or transfer any of its rights or obligations under the Finance Documents other than as expressly permitted herein or therein. 

 

	25	AGENCY PROVISIONS 

  

	25.1	Appointment and Duties of the Global Agent 

  

	 	(a)	Each of the other Finance Parties appoints the Global Agent to act as its agent under and in accordance with the terms of the Finance Documents for the purposes set out
in the Finance Documents and to enter into the Finance Documents to which it will be a party in such capacity and irrevocably authorise it on their behalf to perform the duties and to exercise the rights and powers that are specifically delegated to
it under or in connection with the Finance Documents, together with any other incidental rights and powers. 

  

					
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	 	(b)	The Global Agent may not begin any legal action or proceeding in the name of a Finance Party (other than itself) without that Finance Party’s consent.

  

	 	(c)	The Global Agent has only those duties which are expressly specified in the Finance Documents. 

 

	 	(d)	The Global Agent’s duties under the Finance Documents are solely mechanical and administrative in nature. 

 

	25.2	Relationship 

  

	 	(a)	The relationship between the Global Agent and the Finance Parties is that of principal and agent only. Nothing in this Agreement makes the Global Agent a trustee or
fiduciary for any other Person and the Global Agent need not hold in trust any moneys paid to it for a Person or be liable to account for interest on those moneys except to the extent expressly stated in the Finance Documents.

  

	 	(b)	The Global Agent shall not in any respect be the agent of the Company by virtue of this Agreement and the Global Agent shall not be bound to account to any Finance
Party or the Company for any sum or the profit element of any sum received by it for its own account. 

  

	 	(c)	The Global Agent shall not be liable to the Company for any breach by any other Finance Party of any Finance Documents or be liable to any other Finance Party for any
breach by the Company of the Finance Documents. 

  

	25.3	Delegation 

 The Global Agent may
act through its personnel and through agents selected with due care. 
  

	25.4	Directions 

  

	 	(a)	Where the terms of a Finance Document require the Global Agent or “the Global Agent (acting on behalf of the Lenders)” or “Global Agent (acting on the
instructions of the Lenders)” to give its consent or approval to any event, matter or thing or to make any determination or to exercise any duty, right, power or discretion, then: 

 

	 	(i)	subject to paragraph (ii) below, if the relevant Finance Document specifies that the Global Agent is required to give its consent or approval to that event, matter
or thing, then the Global Agent will give its consent or approval to that event, matter or thing only if the Majority Lenders instruct the Global Agent that they are satisfied that those specified conditions have been satisfied;

  

	 	(ii)	if the relevant consent or approval to that event, matter or thing or determination or exercise of duty, right, power or discretion is in respect of an amendment or
waiver under Clause 33.2 (Exceptions), then the Global Agent will give its consent or approval to that event, matter or thing in accordance with Clause 33.2 (Exceptions), 

  

					
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	 	  	provided that the Global Agent may at all times, whether or not so directed, take such action in respect of any right, power or discretion which is personal to the
Global Agent or is to preserve or protect the Global Agent’s position or is of a purely administrative nature. 

  

	 	(b)	The Global Agent is fully protected and shall incur no Liability if it acts on the instructions of the Majority Lenders or, where required all of the Lenders, in the
exercise of any right, power or discretion or any matter not expressly provided for in the Finance Documents. Any such instructions given by the Majority Lenders will be binding on all the Lenders. The Global Agent shall be entitled to seek
clarification from the Majority Lenders with regard to such instructions where the Global Agent reasonably determines that clarification is required and may in its discretion elect not to act pending receipt of such clarification to its satisfaction
from the Majority Lenders. 

  

	 	(c)	In the absence of instructions, the Global Agent shall not be obliged to act (and shall have no Liability for any failure to act) but may act or refrain from acting as
it considers to be in the best interests of all the Lenders. 

  

	 	(d)	The Global Agent may refrain from acting (and shall incur no Liability) in accordance with the instructions of the Majority Lenders (or, if appropriate, all of the
Lenders) until it has received security satisfactory to it, whether by way of payment in advance or otherwise, against any Liability which it may incur in complying with those instructions. 

 

	 	(e)	The Global Agent is not authorised to act on behalf of a Lender (without first obtaining that Lender’s consent) in any legal or arbitration proceedings in
connection with any Finance Document. 

  

	25.5	Business with the Group 

 The
Global Agent may accept deposits from, lend money to and generally engage in any kind of banking or other business with any Major Project Party. 

  

					
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	25.6	Default 

  

	 	(a)	The Global Agent may assume (unless it has received notice to the contrary in its capacity as such) that: 

 

	 	(i)	no Default or Material Adverse Effect has occurred; and 

  

	 	(ii)	any right, power, authority or discretion vested in any Finance Party has not been exercised. 

 

	 	(b)	The Global Agent is not obliged to monitor or enquire whether a Default has occurred. The Global Agent is not deemed to have knowledge of the occurrence of a Default.

  

	 	(c)	If the Global Agent: 

  

	 	(i)	receives notice from a Party referring to this Agreement, describing a Default and stating that the event is a Default; or 

 

	 	(ii)	is aware of the non-payment of any principal, interest or any fee payable to a Finance Party (other than the Global Agent) or the Arranger) under this Agreement,

 it must promptly, within 3 days, notify the other Finance Parties. 

 

	25.7	Responsibility 

  

	 	(a)	The Global Agent is not responsible for the adequacy, accuracy or completeness of any statement or information (whether written or oral) made in or supplied in
connection with any Finance Document. 

  

	 	(b)	The Global Agent is not responsible for the legality, validity, effectiveness, adequacy, completeness or enforceability of any Finance Document or any other document.

  

	 	(c)	Without affecting the responsibility of the Company for information supplied by it or on its behalf in connection with any Finance Document, each Lender confirms that
it: 

  

	 	(i)	has made, and will continue to make, its own independent appraisal of all risks arising under or in connection with the Finance Documents including:

  

	 	(A)	the financial condition, status and nature of each Major Project Party; 

  

	 	(B)	 the legality, validity, effectiveness, adequacy or enforceability of any Finance Document and any other

  

					
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agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; 

 

	 	(C)	whether that Finance Party has recourse, and the nature and extent of that recourse, against any Party or any of its respective assets under or in connection with any
Finance Document, the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document; and

  

	 	(D)	the adequacy, accuracy and/or completeness of any information provided by any Agent, any Party or by any other person under or in connection with any Finance Document,
the transactions contemplated by the Finance Documents or any other agreement, arrangement or document entered into, made or executed in anticipation of, under or in connection with any Finance Document. 

 

	 	(ii)	has not relied exclusively on any information provided to it by any Administrative Party in connection with any Finance Document or agreement entered into in
anticipation of or in connection with any Finance Document. 

  

	25.8	Information 

  

	 	(a)	If the Global Agent receives an original or copy document on behalf of another Person pursuant to the Finance Documents, it must promptly forward the relevant Person
that original or copy document. 

  

	 	(b)	The Global Agent is not obliged to review or check the adequacy, accuracy or completeness of any document it forwards to another Party. 

 

	 	(c)	Except as provided above, the Global Agent has no duty: 

  

	 	(i)	either initially or on a continuing basis to provide any Lender with any credit or other information concerning the risks arising under or in connection with the
Finance Documents (including any information relating to the financial condition or affairs of any Major Project Party or its related entities or the nature or extent of recourse against any Party or its assets) whether coming into its possession
before, on or after the date of this Agreement; 

  

	 	(ii)	unless specifically requested to do so by a Lender in accordance with a Finance Document, to request any certificate or other document from any Major Project Party; or

  

	 	(iii)	to monitor or supervise or make any investigation of the performance or observance by any party to a Finance Document of such party’s obligations under any Finance
Documents. 

  

					
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	 	(d)	In acting as the Global Agent, the Global Agent will be regarded as acting through its agency division which will be treated as a separate entity from its other
divisions and departments. Any information acquired by the Global Agent which, in its sole opinion and its absolute discretion, is acquired by another division or department or otherwise than in its capacity as the Global Agent may be treated as
confidential by the Global Agent (in accordance with any applicable law, regulation, confidentiality undertaking or applicable internal confidentiality requirements of the Global Agent) and will not be treated as information possessed by the Global
Agent in its capacity as such. 

  

	 	(e)	The Global Agent is not obliged to disclose to any person any confidential information supplied to it by or on behalf of the Company solely for the purpose of
evaluating whether any waiver or amendment is required in respect of any term of the Finance Documents. 

  

	 	(f)	The Company irrevocably authorises the Global Agent to disclose to the other Finance Parties any information which, in its opinion, is received by it in its capacity as
the Global Agent. 

  

	25.9	Reliance 

 The Global Agent may:

  

	 	(a)	rely and act on any notice or document believed by it to be genuine and correct and to have been signed by, or with the authority of, the proper Person;

  

	 	(b)	rely and act on any statement made by any person regarding any matters which may reasonably be assumed to be within his knowledge or within his power to verify;

  

	 	(c)	assume, unless the context otherwise requires, that any communication made by the Company is made on behalf of and with the consent and knowledge of the Company; and

  

	 	(d)	engage, pay for (to be reimbursed pursuant to Clause 15.4 (Advisors), Clause 13 (Other Indemnities) or Clause 25.14 (Lenders’ Indemnity to the
Global Agent) and rely and act on the opinion or advice of professional advisors selected by it with due care (including Lenders’ External Advisers or other professional advisers representing a Party other than the Global Agent).

  

					
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	25.10	Exclusion of Liability 

  

	 	(a)	Without limiting paragraph (b) below, the Global Agent will incur no Liability for any action taken by it under or in connection with any Finance Document, unless
directly caused by its gross negligence or willful misconduct. 

  

	 	(b)	No Party (other than the Global Agent) may take any proceedings against any officer, employee or agent of the Global Agent in respect of any claim it might have against
the Global Agent or in respect of any act or omission of any kind by that officer, employee or agent in relation to any Finance Document and any officer, employee or agent of the Global Agent may rely on this Clause 25 (Agency Provisions) and
enforce its terms under the Contracts (Rights of Third Parties) Act 1999. 

  

	 	(c)	The Global Agent will not be liable for any delay (or any related consequences) in crediting an account with an amount required under the Finance Documents to be paid
by the Global Agent if the Global Agent has taken all necessary steps as soon as reasonably practicable to comply with the regulations or operating procedures of any recognised clearing or settlement system used by the Global Agent for that purpose.

  

	 	(d)	Nothing in this Agreement will oblige the Global Agent to satisfy any know your customer requirement in relation to the identity of any person on behalf of any Finance
Party. 

  

	 	(e)	Each Finance Party confirms to the Global Agent that it is solely responsible for any know your customer requirements it is required to carry out and that it may not
rely on any statement in relation to those requirements made by any other person. 

  

	25.11	Compliance 

 The Global Agent may
refrain from doing anything (including disclosing any information) which might, in its opinion: 
  

	 	(a)	constitute a breach of any law or regulation or be otherwise actionable at the suit of any person, and may do anything which, in its opinion, is necessary or desirable
to comply with any law or regulation; or 

  

	 	(b)	cause it to expend or risk its own funds if it has reasonable grounds for believing the repayment of such funds or adequate indemnity in respect thereof is not assured
to it. 

  

	25.12	Relationship with Lenders 

  

	 	(a)	The Global Agent may treat each Lender as a Lender, entitled to payments under this Agreement and any relevant Loan Agreement and as acting through its Facility
Office(s) until it has received not less than seven (7) days’ prior notice from that Lender to the contrary. 

  

					
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	 	(b)	The Global Agent may at any time, and must if requested to do so by the Majority Lenders, convene a meeting of the Lenders. 

 

	 	(c)	The Global Agent must keep a record of all the Parties to this Agreement (and each Loan Agreement) and supply any other Party to this Agreement with a copy of the
record on request. The record will include each Lender’s Facility Office(s) and contact details for the purposes of this Agreement. 

  

	25.13	Individual position of the Global Agent 

  

	 	(a)	If it is also a Lender, the Global Agent has the same rights and powers under the Finance Documents as any other Lender and may exercise those rights and powers as
though it were not the Global Agent. 

  

	 	(b)	The Global Agent may: 

  

	 	(i)	carry on any business with any Major Project Party or its related entities (including acting as an agent or a trustee for any other financing); and

  

	 	(ii)	retain any profits or remuneration it receives under the Finance Documents or in relation to any other business it carries on with any Major Project Party or its
related entities. 

  

	25.14	Lenders’ Indemnity to the Global Agent 

  

	 	(a)	Without limiting the liability of the Company under any Finance Document, each Lender shall indemnify the Global Agent, within ten (10) days of demand, for that
Lender’s Pro Rata Share of any Liability incurred by the Global Agent (other than by reason of the Global Agent’s gross negligence or wilful misconduct) in acting as the Global Agent under the Finance Documents (unless the Global Agent has
been reimbursed in full by the Company pursuant to a Finance Document). 

  

	 	(b)	If a Finance Party owes an amount to the Global Agent under the Finance Documents, the Global Agent may after giving notice to that Finance Party:

  

	 	(i)	deduct from any amount received by it for that Finance Party any amount due to the Global Agent from that Finance Party under a Finance Document but unpaid; and

  

	 	(ii)	apply that amount in or towards satisfaction of the owed amount, 

 and that Finance Party will be regarded as having received the amount so deducted. 
  

	 	(c)	The provisions of this Clause 25.14 (Lenders’ Indemnity to the Global Agent) shall continue in full force and effect not withstanding termination of this
Agreement or the retirement or removal of the Global Agent in accordance with Clause 26.3(a) (Rights and Obligations). 

  

					
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	25.15	Notice period 

 Where this
Agreement specifies a minimum period of notice to be given to the Global Agent, the Global Agent may, following consultation with all the Lenders, accept a shorter notice period. 

 

	26	RESIGNATION AND REMOVAL OF AGENTS 

  

	26.1	Resignation and Removal of the Global Agent 

 The Global Agent may resign its appointment under the Finance Documents at any time without assigning any reason therefor and the Majority Lenders may remove the Global Agent by giving not less than
thirty (30) days’ prior notice to that effect to each of the other Parties hereto provided that no such resignation or, as the case may be, removal shall be effective until: 

 

	 	(a)	a successor for the Global Agent is appointed in accordance with the succeeding provisions of this Clause 26.1 (Resignation and Removal of the Global Agent) and
Clause 26.2 (Replacement of Global Agent); 

  

	 	(b)	the resigning Global Agent has transferred to its successor all of the rights and obligations in its capacity as Global Agent under the Finance Documents; and

  

	 	(c)	the successor for such Global Agent has executed and delivered to each of the other Agents and the Company, an Accession Letter in the form, or substantially in the
form, set out in Schedule 4 (Form of Accession Letter). 

  

	26.2	Replacement of the Global Agent 

If the Global Agent gives notice of its resignation, or if the Majority Lenders give to the Global Agent notice of removal pursuant to
Clause 26.1 (Resignation and Removal of Global Agent), then any reputable and experienced bank or other financial institution which is an internationally recognised institution experienced in acting in a similar capacity and which is approved
by the Majority Lenders and the Company (such approval not to be unreasonably withheld or delayed) may be appointed as a successor to the Global Agent by the Majority Lenders, during the period of such notice but, if no such successor is so
appointed, then the Global Agent may appoint such a successor itself provided such successor meets the criteria set out in this Clause 26.2 (Replacement of the Global Agent). 

  

					
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	26.3	Rights and Obligations 

 If a
successor to any Global Agent is appointed under the provisions of Clause 26.1 (Resignation and Removal of the Global Agent) or Clause 26.2 (Replacement of the Global Agent) then: 

 

	 	(a)	the retiring Global Agent shall be discharged from any further obligation hereunder (without prejudice to any accrued Liabilities) but with the benefit of this Clause
26.3 (Rights and Obligations) and Clause 25.14 (Lenders’ Indemnity to the Global Agent); 

  

	 	(b)	its successor and each of the other parties to the Finance Documents shall have the same rights and obligations amongst themselves as they would have had if such
successor had been an original party thereto; and 

  

	 	(c)	the resigning Global Agent shall, at the cost of the Company, make available or deliver to the successor Agent all papers and records relating to its role as Global
Agent under the Finance Documents. 

  

	27	DISCLOSURE OF INFORMATION 

  

	27.1	Disclosure by Finance Parties 

  

	 	(a)	Each of the Finance Parties shall have the right, but not the obligation, to disclose any Finance Documents or any records or information about such Finance Documents
or about the Company, any Major Project Party or the Project: 

  

	 	(i)	to any other Finance Party or any employees, officers, fund managers, directors or agents thereof; 

 

	 	(ii)	to any Person to whom information may be required to be disclosed by any applicable law or regulation; 

 

	 	(iii)	in connection with any legal or arbitration proceedings; 

  

	 	(iv)	which is publicly available, other than as a result of a breach by that Finance Party of this Clause; 

 

	 	(v)	to any rating agency; 

  

	 	(vi)	to any member of the KfW Bankengruppe, employees, officers, fund managers, directors, bodies or agents thereof subject to the confidentiality agreement with the Company
dated 5 December 2008; 

  

					
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	 	(vii)	any of its professional advisers or any professional adviser to any Person specified in paragraphs (i) to (vii) above (including, without limitation, any
legal adviser, insurance adviser, auditor, financial adviser, technical adviser or other Project adviser) that is appointed with consent of the Company and subject to a Confidentiality Undertaking (unless confidentiality is implied by law or
regulation); 

  

	 	(viii)	in the case of DEG, it may disclose all and any information relating the Company and the Project to the Financing Partners and their respective representatives, fund
managers and advisers subject to the confidentiality agreement with the Company dated 13 August 2007 (the “DEG Letter”) (and this Clause 27 (Disclosure of Information) shall be an authority to disclose under paragraph
5(d) of the DEG Letter); 

  

	 	(ix)	subject to the DEG Letter, DEG may disclose all and any information relating to the Company and the Project to the relevant Participants and the Participants may
disclose such information to their respective employees, officers, directors, representatives, fund managers and advisers and, in respect of EAIF only, EAIF may disclose such information to any existing or potential lender to, or investor in, EAIF
provided a Confidentiality Undertaking is entered into; 

  

	 	(x)	to the extent allowed under paragraph (b) below and in accordance therewith; or 

 

	 	(xi)	to any other Person with the prior written consent of the Company. 

  

	 	(b)	Notwithstanding paragraph (a) above, any Lender may disclose to any of its Affiliates and any other Person: 

 

	 	(i)	to (or through) whom that Lender assigns or transfers (or may potentially assign or transfer) all or any of its rights and obligations under this Agreement;

  

	 	(ii)	with (or through) whom that Lender enters into (or may potentially enter into) any sub-participation in relation to, or any other transaction under which payments are
to be made by reference to, this Agreement or the Company, 

 any information about the Company and the Finance
Documents as that Lender shall consider appropriate if, in relation to paragraphs (i) and (ii) above, the person to whom the information is to be given has entered into a Confidentiality Undertaking. 

  

					
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	 	(c)	With reference to the above information under paragraphs (a) and (b), the Company hereby consents to the transfer of such information by any members of the KfW
Bankengruppe: 

  

	 	(i)	for the purposes of central corporate risk management and standardised controlling and, to such extent, expressly release DEG from banking secrecy rules, the provisions
of the Federal Data Protection Law (“Bundesdatensschutzgesetz”) and any separately concluded confidentiality agreement as between members of the KfW Bankengruppe; and 

 

	 	(ii)	as a result of any legal, judicial or regulatory requirements; and 

  

	 	(iii)	to the government of the Federal Republic of Germany. 

  

	27.2	Disclosure by the Company 

 The
Company will keep the terms and conditions of the Finance Documents confidential and shall not, without the prior written consent of the Global Agent (acting on the instructions of the Lenders, acting reasonably), disclose any of such terms and
conditions, except as required by: 
  

	 	(a)	law or regulation, including, without limitation, securities laws and the rules and regulations of any stock exchange on which securities of any Affiliate of the
Company are listed; 

  

	 	(b)	order or decision of any court having jurisdiction over the Company or any of its Affiliates; or 

 

	 	(c)	as may be required by any Authority having authority over the Company or any of its Affiliates. 

 

	28	CONDUCT OF BUSINESS BY THE FINANCE PARTIES 

 No provision of any Finance Document will: 
  

	 	(a)	interfere with the right of any Finance Party to arrange its affairs (Tax or otherwise) in whatever manner it thinks fit; 

 

	 	(b)	oblige any Finance Party to investigate or claim any credit, relief, remission or repayment available to it or the extent, order and manner of any claim; or

  

	 	(c)	oblige any Finance Party to disclose any information relating to its affairs (Tax or otherwise) or any computations in respect of Tax. 

  

					
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	29	PAYMENT MECHANICS 

  

	29.1	Payments to Lenders and the Company 

 On each date on which the Company or a Lender is required to make a payment under a Finance Document, the Company or the Lender, as the case may be, shall make the same available to the Global Agent
(unless a contrary indication appears in a Finance Document) for value on the due date at the time and in such funds specified by such Person as being customary at the time for settlement of transactions in the relevant currency in the place of
payment. 
  

	29.2	Distributions by the Global Agent 

Each payment received by the Global Agent under the Finance Documents for another Party shall, subject to Clause 29.3(Clawback), be made
available as soon as practicable after receipt by the Global Agent to the Party entitled to receive payment in accordance with the Finance Documents (in the case of a Lender, for the account of its Facility Office), to such account as that Party may
notify to the Global Agent by not less than seven (7) days notice. 
  

	29.3	Clawback 

  

	 	(a)	Where a sum is to be paid to a Global Agent under the relevant Finance Documents for the account of another Lender, Participant or KfW, the Global Agent is not obliged
to pay that sum to that Person (or to enter into or perform any related exchange contract) until it has been able to establish to its satisfaction that it has actually received that sum. 

 

	 	(b)	If the Global Agent pays an amount to such Person and it proves to be the case that the Global Agent had not actually received that amount, then such Person to whom
that amount (or the proceeds of any related exchange contract) was paid by the Global Agent shall on demand refund the same to the Global Agent together with interest on that amount from the date of payment to the date of receipt by the Global
Agent, calculated by the Global Agent to reflect its cost of funds. 

  

	29.4	No Set-Off by the Company 

 All
payments to be made by the Company under the Finance Documents shall be calculated and be made without (and free and clear of any deduction for) set-off or counterclaim. 

 

	29.5	Business Days 

  

	 	(a)	Any payment which is due to be made on a day that is not a Business Day shall be made on the next Business Day in the same month (if there is one) or the immediately
preceding Business Day (if there is not) except for any payment due on the Final Repayment Date under any Facility which, if such date is not a Business Day, shall always be payable on the preceding Business Day. 

 

	 	(b)	During any extension of the due date for payment of any principal or an Unpaid Sum under this Agreement interest is payable on the principal or Unpaid Sum at the rate
payable on the original due date. 

  

					
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	29.6	Currency of Account 

  

	 	(a)	Subject to paragraph (b) below, US Dollars are the currency of account and payment for any sum due from the Company under any Finance Document.

  

	 	(b)	Each payment in respect of costs, expenses or Taxes shall be made in the currency in which the costs, expenses or Taxes are incurred. 

 

	29.7	Change of Currency 

  

	 	(a)	Unless otherwise prohibited by law, if more than one currency or currency unit are at the same time recognised by the central bank of any country as the lawful currency
of that country, then: 

  

	 	(i)	any reference in the Finance Documents to, and any obligations arising under the Finance Documents in, the currency of that country shall be translated into, or paid
in, the currency or currency unit of that country designated by the Global Agent (after consultation with the Company and any affected Finance Party); and 

  

	 	(ii)	any translation from one currency or currency unit to another shall be at the official rate of exchange recognised by the central bank for the conversion of that
currency or currency unit into the other, rounded up or down by the Global Agent (acting reasonably). 

  

	 	(b)	If a change in any currency of a country occurs, this Agreement will, to the extent the Global Agent (acting on the instructions of the Lenders) specifies to be
necessary, be amended to comply with any generally accepted conventions and market practice in the relevant interbank market and otherwise to reflect the change in currency. 

 

	29.8	Partial payments 

  

	 	(a)	If the Global Agent receives a payment insufficient to discharge all the amounts then due and payable by the Company under the Finance Documents, the Global Agent must
apply that payment towards the obligations of the Company under the Finance Documents in the following order: 

  

	 	(i)	first, in or towards payment pro rata of any unpaid fees, costs and expenses of the Administrative Parties under the Finance Documents; 

  

					
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	 	(ii)	second, in or towards payment pro rata of any accrued interest or fees due but unpaid under this Agreement; 

 

	 	(iii)	third, in or towards payment pro rata of any principal amount due but unpaid under this Agreement; and 

 

	 	(iv)	fourth, in or towards payment pro rata of any other sum due but unpaid under the Finance Documents. 

 

	 	(b)	The Global Agent must, if so directed by the Lenders, vary the order set out in paragraphs (a)(ii) to (iv) above. 

 

	 	(c)	This Clause 29.8 (Partial payments) will override any appropriation made by the Company. 

 

	29.9	Disruption to payment systems 

  

	 	(a)	If the Global Agent (acting on the instructions of the Lenders) determines that a Disruption Event has occurred or the Company notifies the Global Agent that a
Disruption Event has occurred, the Global Agent: 

  

	 	(i)	may, and must if requested by the Company, enter into discussions with the Company for a period of not more than five (5) days with a view to agreeing any changes
to the operation or administration of the Facilities (“changes”) as the Global Agent (acting on the instructions of the Lenders) may decide is necessary; 

 

	 	(ii)	is not obliged to enter into discussions with the Company in relation to any changes if, in its opinion, it is not practicable so to do and has no obligation to agree
to any changes; 

  

	 	(iii)	may consult with the Finance Parties in relation to any changes but is not obliged so to do if, in its opinion, it is not practicable in the circumstances; and

  

	 	(iv)	must notify the Finance Parties of any changes agreed under this Clause 29.9 (Disruption to payment systems). 

 

	 	(b)	Any agreement between the Global Agent (acting on the instructions of the Lenders) and the Company will be, (whether or not it is finally determined that a Disruption
Event has occurred), binding on the Parties notwithstanding the provisions of Clause 33 (Amendments and Waivers). 

  

	 	(c)	If the Global Agent makes any payment to any person in respect of a Liability incurred as a result of taking or not taking any action under this Clause 29.9
(Disruption to payment systems), the amount of that payment is an amount in respect of which each Lender must indemnify the Global Agent for that Lender’s Pro Rata Share of any Liability incurred by the Global Agent under this Clause
29.9 (Disruption to payment systems) (unless the Global Agent has been reimbursed by the Company under a Finance Document) unless such payment was made as a result of the Global Agent’s fraud, gross negligence or willful misconduct.

  

					
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	29.10	Timing of payments 

 If a Finance
Document does not provide for when a particular payment is due, that payment will be due within three (3) Business Days of demand by the relevant Finance Party. 
  

	30	NOTICES 

  

	30.1	Communications in Writing 

  

	 	(a)	Any notifications or other communication to be made under or in connection with the Finance Documents shall be made in writing and, unless otherwise stated, may be made
by fax or letter or to the extent agreed by the Parties making and receiving the communications, by email or any other electronic communication. 

  

	 	(b)	Unless otherwise provided herein or in any other Finance Document, notices, reports and other written communications to be given to the Global Agent and/or the Lenders,
shall be given and made available in such number of copies as the Global Agent has previously notified (including by written standing instructions) to the issuing Party to be sufficient in respect of such notice, report or other written
communication, provided that in the absence of such previous notification by the Global Agent or the Lenders, one copy shall be deemed to be sufficient. 

  

	 	(c)	For the purposes of the Finance Documents, an electronic communication will be treated as communication in writing provided the Parties making and receiving the
electronic communication have agreed to use such communication under paragraph (a) above. 

  

	 	(d)	In no event shall the Global Agent be liable for any Liability arising from it receiving or transmitting any instruction from any party via any non-secure method of
transmission or communication, such as, but without limitation, by facsimile or e-mail. The Finance Parties accept that some methods of communication are not secure and the Global Agent shall incur no Liability for receiving instructions, notices or
communications via any such non-secure method. Each of the Global Agent is authorised to comply with and rely upon any such notice, instruction or other communications believed by it to have been sent to given by the relevant party.

  

					
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	30.2	Addresses 

 The address and fax
number (and the department or officer, if any, for whose attention the communication is to be made) of each Party for any communication or document to be made or delivered under or in connection with the Finance Documents is provided below.

  

	 	(a)	The contact details of the Company for this purpose are: 

 Address: Off Moi South Lake Road, Hellsgate National Park, P.O. Box 
 1566-20117,
Naivasha, Kenya. 
 Fax: +254 (0) 50 50668 
 Attention: Mr. Earnest Sayi Mabwa 
 With a copy to: OrPower4 Inc. c/o Ormat
Nevada Inc., 6225 Neil Road, 
 Reno, Nevada. 
 Attention: President 
 Fax: +1 775 356 9039 

 

	 	(b)	The contact details of the Global Agent for this purpose are: 

 Address: DEG-Deutsche Investitions- und Entwicklungsgesellschaft 
 mbH,
Kämmergasse 22, 50676 Köln, Germany. 
 Fax: +49 221 4986 1106 

Attention: Portfolio Management, Africa 
  

	 	(c)	The contact details of the DEG “A” Lender for this purpose are: 

 Address: DEG-Deutsche Investitions- und Entwicklungsgesellschaft mbH, 

Kämmergasse 22, 50676 Köln, Germany. 
 Fax: +49 221 4986 1106 
 Attention: Portfolio Management, Africa 

 

	 	(d)	The contact details of the DEG “B” Lender for this purpose are: 

 Address: DEG-Deutsche Investitions- und Entwicklungsgesellschaft mbH, 

Kämmergasse 22, 50676 Köln, Germany. 
 Fax: +49 221 4986 1106 
 Attention: Portfolio Management, Africa 

  

					
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	30.3	Delivery 

  

	 	(a)	Any communication or document made or delivered by one person to another under or in connection with the Finance Documents will only be effective:

  

	 	(i)	if by way of fax, when a fax confirmation is received; or 

  

	 	(ii)	if by email or any other electronic communication, when received in legible form; or 

 

	 	(iii)	if delivered in person, at the time of delivery; or 

  

	 	(iv)	if by way of letter, when it has been left at the relevant address or seven (7) days after being sent by international courier prepaid in an envelope addressed to
it at that address; 

 and, if a particular department or officer is specified as part of its address details
provided under Clause 30.2 (Addresses), if addressed to that department or officer. 
  

	 	(b)	Any communication or document to be made or delivered to any Agent will be effective only when actually received by that Agent and then only if it is expressly marked
for the attention of the department or officer or that Agent identified in Clause 30.2 (Addresses) (or any substitute department or officer as that Agent shall specify for this purpose). 

 

	 	(c)	All notices from or to the Company shall be sent through the Global Agent (except where the contrary is expressly set out herein). 

 

	30.4	Use of websites 

  

	 	(a)	Except as provided below, either the Company or the Global Agent may deliver any information under this Agreement to any other Party or Lender by posting it on to an
electronic website if: 

  

	 	(i)	the Global Agent and the Lenders agree; 

  

	 	(ii)	an electronic website is designated for this purpose; 

  

	 	(iii)	each other Party for whom the website is intended is notified of the address of and password for the website; and 

 

	 	(iv)	the information posted is in a format agreed between the Company and the Global Agent (acting on the instructions of the Lenders). 

  

					
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	 	(b)	The Company shall, promptly upon becoming aware of its occurrence, notify the Global Agent if: 

 

	 	(i)	the website cannot be accessed; 

  

	 	(ii)	the website or any information on the website is infected by any electronic virus or similar software; 

 

	 	(iii)	the password for the website is changed; or 

  

	 	(iv)	any information to be supplied under this Agreement is posted on the website or amended after being posted. 

If the circumstances in paragraphs (c)(i) or (ii) above occur, the Company shall supply any information required under this Agreement
in paper form until the Global Agent is satisfied that the circumstances giving rise to the notification are no longer continuing. 
  

	30.5	Notification of Address, Fax number 

  

	 	(a)	Any Party may change its contact details by giving seven (7) days written notice to the Global Agent or (in the case of the Global Agent) to the other Parties.

  

	 	(b)	Promptly upon receipt of notification of an address and fax number or change of address or fax number pursuant to paragraph (a) above or changing its own address
or fax number, the Global Agent shall notify the other Parties. 

  

	30.6	English Language 

  

	 	(a)	Any notice given under or in connection with any Finance Document must be in English. 

 

	 	(b)	All other documents provided under or in connection with any Finance Document must be: 

 

	 	(i)	in English; or 

  

	 	(ii)	if not in English, and if so required by the Global Agent, accompanied by a certified English translation and, in this case, the English translation will prevail unless
the document is a constitutional, statutory or other official document. 

  

					
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	31	CALCULATIONS AND CERTIFICATES 

  

	31.1	Accounts 

 In any litigation or
arbitration proceedings arising out of or in connection with a Finance Document, the entries made in the accounts maintained by a Finance Party are prima facie evidence of the matters to which they relate. 

 

	31.2	Certificates and Determinations 

Any certification or determination by a Finance Party of a rate or amount under any Finance Document is, in the absence of manifest error,
conclusive evidence of the matters to which it relates. 
  

	31.3	Day Count Convention 

 Any
interest, commission or fee accruing under a Finance Document will accrue from day to day and is calculated on the basis of the actual number of days elapsed and a year of three hundred and sixty (360) days. 

 

	32	PARTIAL INVALIDITY 

 If,
at any time, any provision of the Finance Documents is or becomes illegal, invalid or unenforceable in any respect under any law of any jurisdiction, neither the legality, validity or enforceability of the remaining provisions nor the legality,
validity or enforceability of such provision under the law of any other jurisdiction will in any way be affected or impaired. 
  

	33	AMENDMENTS AND WAIVERS 

  

	33.1	Procedure 

  

	 	(a)	Except as provided in this Clause, any term of the Finance Documents may be amended or waived with the agreement of the Company and the Majority Lenders. The Global
Agent may or, in the case of an amendment or waiver of a Finance Document, effect, on behalf of any Finance Party, an amendment or waiver allowed under this Clause. 

 

	 	(b)	The Global Agent must promptly notify the other Finance Parties of any amendment or waiver effected by it under paragraph (a) above. Any such amendment or waiver
is binding on all the Finance Parties. 

  

	33.2	Exceptions 

  

	 	(a)	An amendment or waiver which relates to: 

  

	 	(i)	the definitions of Majority Lenders in Clause 1.1 (Definitions); 

  

					
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	 	(ii)	the purpose for which the Loans may be used; 

  

	 	(iii)	an extension of the date of payment of any amount to a Lender under the Finance Documents; 

 

	 	(iv)	a reduction in the interest rate or a reduction in the amount of any payment of principal, interest, fee or other amount payable to a Lender under the Finance
Documents; 

  

	 	(v)	an increase in, or an extension of, a Commitment or the Total Commitments; 

 

	 	(vi)	a release of the Company or any other Major Project Party; 

  

	 	(vii)	a term of a Finance Document which expressly requires the consent of each Lender; 

 

	 	(viii)	the right of a Lender to assign or transfer its rights or obligations under the Finance Documents; 

 

	 	(ix)	the definition of Environmental and Social Requirements and any provision relating thereto; 

 

	 	(x)	the definition of Reference Banks; 

  

	 	(xi)	Clause 19.1(v) (Prohibited Acts); 

  

	 	(xii)	Clause 19.1(w) (No illicit origin of funds); 

  

	 	(xiii)	Clause 20.1(m) (Prohibited Acts); 

  

	 	(xiv)	Clause 20.1(n) (Anti-money laundering); 

  

	 	(xv)	Clause 20.1(o) (No illicit origin of funds); 

  

	 	(xvi)	Clause 20.1(p) (HIV Protective Measures); 

  

	 	(xvii)	Clause 21.1(g) (Amendments to the Environmental Impact Assessment and Environmental and Social Management Plan); 

 

	 	(xviii)	Clause 21.1(f) (Prohibited Acts); 

  

	 	(xix)	Clause 21.1(i) (Blocked Person and Embargoes); 

  

	 	(xx)	Clause 22.1(o) (Prohibited Acts); 

  

	 	(xxi)	Clause 22.1(p) (Anti-money laundering); 

  

	 	(xxii)	this Clause, 

  

					
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 may only be made with the consent of all the Lenders. 

 

	 	(b)	An amendment or waiver which relates to the rights or obligations of the Global Agent may only be made with the consent of the Global Agent. 

 

	 	(c)	A Fee Letter may be amended or waived with the agreement of the parties thereto. 

 

	33.3	Waivers and remedies cumulative 

  

	 	(a)	The rights of each Finance Party under the Finance Documents: 

  

	 	(i)	may be exercised as often as necessary; 

  

	 	(ii)	are cumulative and not exclusive of its rights under the general law; and 

  

	 	(iii)	may be waived only in writing and specifically. 

  

	 	(b)	No course of dealing, nor failure to exercise, nor any delay in exercising, on the part of any Finance Party, any right or remedy under the Finance Documents shall
operate as a waiver. 

  

	34	TERMINATION 

 This
Agreement shall be in full force and effect from the date hereof until the Final Termination Date. 
  

	35	COUNTERPARTS 

 Each
Finance Document may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of the Finance Document. 

 

	36	GOVERNING LAW 

 This
Agreement and any non-contractual rights arising out of or in connection with this Agreement shall be governed by English law. 
  

	37	ENFORCEMENT 

  

	37.1	Jurisdiction 

  

	 	(a)	 Subject to the Company’s right to propose arbitration pursuant to Clause 37.2 (Arbitration) and the Lenders’ option to agree to such
proposal, or to initiate arbitration pursuant to Clause 37.2 (Arbitration), the Parties agree that the courts of England shall have exclusive jurisdiction to resolve any

  

					
		 	92	 	

	 	
dispute arising out of or in connection with the Finance Documents (including a dispute regarding the existence, breach, validity or termination of this Agreement or any of the Finance Documents)
(a “Dispute”). 

  

	 	(b)	The Parties agree that English law shall govern the determination of any Dispute regardless of the jurisdiction in which the Dispute is heard. 

 

	37.2	Arbitration 

  

	 	(a)	Prior to the commencement of any legal proceedings by the Company in the courts of England in respect of a Dispute the Company shall give prior notice to the Lenders,
and the Lenders acting unanimously shall indicate to the Company in writing within fifteen (15) days of receipt of such notice from the Company, whether that Dispute shall instead be resolved by arbitration pursuant to this Clause 37.2
(Arbitration), provided that this Clause 37.2 (Arbitration) shall not prejudice the right of the Lenders to commence arbitration in respect of a Dispute by giving prior notice to the Company. If the Lenders notify the Company that the
Dispute is to be resolved by arbitration, to which the Company shall not object, the following provisions shall apply. 

  

	 	(b)	Any arbitration commenced in respect of a Dispute shall be resolved in accordance with the rules of the United Nations Commission on International Trade Law
(“UNCITRAL”), which rules are deemed to be incorporated by reference into this Clause save as modified by this Agreement. In any such arbitration: 

 

	 	(i)	the appointing authority shall be the London Court of International Arbitration (the “LCIA”); 

 

	 	(ii)	the language to be used in the arbitration shall be English; 

  

	 	(iii)	the place and seat of the arbitration shall be London, England; and 

  

	 	(iv)	the number of arbitrators shall be three. For the purpose of Article 7 of the UNCITRAL Rules, where there are multiple parties, whether as claimant or as respondent,
the claimants shall act and be treated, jointly, as ‘a party’ and the respondents shall act and be treated, jointly, as ‘a party’. 

  

	 	(c)	In any arbitration commenced pursuant to this Clause 37.2 (Arbitration): 

 

	 	(i)	the Parties hereby waive any rights under the Arbitration Act 1996 (UK) to seek determination of a preliminary point of law by the courts of England; and

  

	 	(ii)	 subject to the terms of any arbitration agreement agreed between the Parties and the provisions of the UNCITRAL Arbitration

  

					
		 	93	 	

	 	
Rules, the Company shall be entitled to seek only from the Arbitral Tribunal, but not from any judicial authority, any interim measures of protection or pre-award relief against any of the
Finance Parties. 

  

	 	(d)	In any arbitral proceeding, the certificate of a Finance Party as to any amount due to that Finance Party under any Finance Document shall be prima facie evidence of
such amount. 

  

	37.3	Service of Process 

 Without
prejudice to any other mode of service allowed under any relevant law, the Company: 
  

	 	(a)	irrevocably appoints Chadbourne & Parke MNP of Regis House, 45 King William Street, London EC4R 9AN as its agent for service of process in relation to any
proceedings before the English courts in connection with any Finance Document; 

  

	 	(b)	agrees that failure by a process agent to notify the Company of the process will not invalidate the proceedings concerned; 

 

	 	(c)	undertakes that as long as any of the Finance Documents remains in force, the Company shall maintain a duly appointed and authorised agent to receive for and on its
behalf service of the writ of summons or other legal process in any action, suit or proceeding brought by any Finance Party in the courts of England with respect to each of the Finance Documents and shall keep the Global Agent advised of the
identity and location of such agent; and 

  

	 	(d)	irrevocably consents, if for any reason the Company’s authorized agent for service of process of summons, complaint and other legal process in any action, suit or
proceeding is not present in England, to service of such papers being made out of those courts by mailing copies of the papers by registered air mail, postage prepaid, to the Company at its address specified pursuant to Clause 30 (Notices).
In such a case, any Finance Party shall also send by facsimile, or have sent by facsimile, a copy of the papers to the Company. 

  

	37.4	Waiver 

  

	 	(a)	To the extent that the Company may be entitled in any jurisdiction to claim for itself or its assets immunity with respect to its obligations under this Agreement or
any other Finance Document from any suit, execution, attachment (whether provisional or final, in aid of execution, before judgment or otherwise) or other legal process or to the extent that in any jurisdiction that immunity (whether or not
claimed), may be attributed to it or its assets, the Company irrevocably agrees not to claim and irrevocably waives such immunity to the fullest extent now or in the future permitted by the laws of such jurisdiction. 

  

					
		 	94	 	

	 	(b)	To the extent that the Company may, in any suit, action or proceeding brought in any of the courts referred to in Clause 37.1 (Jurisdiction) or a court of Kenya,
Cayman Islands or elsewhere arising out of or in connection with this Agreement or any other Finance Document to which the Company is a party, be entitled to the benefit of any provision of law requiring any Finance Party in such suit, action or
proceeding to post security for the costs of the Company, or to post a bond or to take similar action, the Company hereby irrevocably waives such benefit, in each case to the fullest extent now or in the future permitted under the laws of England,
Cayman Islands or Kenya or, as the case may be, the jurisdiction in which such court is located. 

  

	 	(c)	Each Party waives any right it may have to a jury trial of any claim or cause of action in connection with any Finance Documents or any transaction contemplated by any
Finance Document. This Agreement may be filed as a written consent to trial by court. 

  

	38	ENTIRE AGREEMENT 

 This
Agreement, together with the other Finance Documents to which some or all of the Parties are party, constitutes the entire agreement between the Parties and all prior responsibilities, negotiations and undertakings shall be excluded from any
construction of this Agreement. 
 IN WITNESS WHEREOF, the Parties have entered into this Agreement on the date stated at the beginning
of this Agreement. 

  

					
		 	95	 	

 SCHEDULE 1 
 The Original Lenders 
  

							
	Facility	  	Original Lender	  	Commitment (US$)	 
	DEG “A” Facility:	  	 DEG- Deutsche Investitions- und Entwicklungsgesellschaft mbH
	  	 	60,000,000	  
			
	DEG “B” Facility:	  	 DEG- Deutsche Investitions- und Entwicklungsgesellschaft mbH
	  	 	15,000,000	  

 The Participants and EFP 

 

							
	Facility	  	Party as at date of Agreement	  	Amount of
Participation (US$)
as at date of
Agreement	 
	DEG “A” Facility:	  	 KfW
	  	 	20,000,000	  
			
	DEG “A” Facility	  	 EFP
	  	 	20,000,000	  
			
	DEG “B” Facility:	  	 Emerging Africa Infrastructure Fund Limited
	  	 	15,000,000	  

  

					
		 	96	 	

 SCHEDULE 2 
 Conditions of Disbursement 
 Part 1 

Conditions of the First Disbursement 
 All conditions to First Disbursement were satisfied or waived prior to First 
 Disbursement in accordance with the terms of the Original Common Terms 
 Agreement dated 5th January 2009. 
 Part 2 

Conditions of All Disbursements 
 Since no more disbursements shall be effected Part 2 of Schedule 2 is deleted. 

  

					
		 	97	 	

 SCHEDULE 3 
 Form of Transfer Certificate 
  

	To:	DEG-Deutsche Investitions- und Entwicklungsgesellschaft mbH, 

	    	as Global Agent 

  

	From:	[The Existing Lender] (the “Existing Lender”) and [The New Lender] 

	    	(the “New Lender”) 

 Dated:

 RE: [Insert details relating to the relevant Loan Agreement] dated
[                    ] and the Common Terms Agreement dated
[                    ] between, inter alia, OrPower4 Inc. as Company, DEG-Deutsche Investitions- und Entwicklungsgesellschaft mbH as Lender and
DEG-Deutsche Investitions- und Entwicklungsgesellschaft mbH as Global Agent (the “Common Terms Agreement”) 
  

	1	Capitalised terms have the meaning given to such terms in the Common Terms Agreement unless otherwise defined herein. 

 

	2	We refer to Clause 23.2 (Procedure for Assignment or Transfer) of the Common Terms Agreement: 

 

	 	(a)	This is a Transfer Certificate. 

  

	 	(b)	The Existing Lender transfers by novation all or part of the Existing Lender’s Commitment, rights and obligations referred to in the Schedule in accordance with
the terms of the Common Terms Agreement. 

  

	 	(c)	The proposed Transfer Date is [                    ].

  

	 	(d)	On the Transfer Date the New Lender becomes party to the [relevant Loan Agreement], the Subordination Agreement and the Common Terms Agreement as Lender.

  

	 	(e)	The Facility Office and address, fax number and attention details for notices of the New Lender for the purposes of Clause 30.2 (Addresses) of the Common Terms
Agreement are set out in the New Lender Schedule. 

  

	3	The New Lender expressly acknowledges the limitations on the Existing Lender’s obligations set out in Clause 23.4 (Limitation of Responsibility of Existing
Lenders) of the Common Terms Agreement. 

  

	4	This Transfer Certificate may be executed in any number of counterparts and this has the same effect as if the signatures on the counterparts were on a single copy of
the Transfer Certificate. 

  

	5	This Transfer Certificate is governed by English law. 

  

					
		 	98	 	

 THE SCHEDULE 
 Commitment, Rights and Obligations to be Transferred 
 [insert relevant
details] 
 [Facility Office address, fax number and attention details for notices and account details for payments] 

 

			
	[Existing Lender]	  	[New Lender]
		
	 By:
	  	By:

 This Transfer Certificate is countersigned by the Global Agent and the Transfer Date is confirmed as
[                    ]. 
  

	
	 DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH

as Global Agent

	
	 By:

  

					
		 	99	 	

 SCHEDULE 4 
 Form of Accession Letter 
  

	To:	DEG - Deutsche Investitions- und Entwicklungsgesellschaft mbH, 

	    	as Global Agent 

  

	From:	[             ] 

 Dated: 
 Dear Sirs 
 This Agreement dated [                    ] is supplemental to a Common Terms Agreement dated
[                    ] between, inter alia, OrPower 4 Inc. as Company, DEG-Deutsche Investitions- und Entwicklungsgesellschaft mbH as Lender and
DEG-Deutsche Investitions- und Entwicklungsgesellschaft mbH as Global Agent (the “Common Terms Agreement”). 
 Words and
expressions defined in the Common Terms Agreement have the same meaning when used in this Agreement. 
 [Name of New Lender] hereby agrees with
each other Person who is or who becomes a Party to the Common Terms Agreement that with effect on and from the date hereof it will be bound by the obligations of and will benefit from, the Finance Documents as [state capacity of relevant New Party]
as if it had been an Original Lender and Party to the Finance Documents in that capacity. 
 Address for notice of [Name of New Lender] for the
purposes of Clause 30 (Notices) of the Common Terms Agreement is: 

[                    ] 

This Agreement is governed by English law. 

IN WITNESS WHEREOF, this agreement has been executed as a deed and is intended to be and is hereby delivered on the date first above written.

  

					
	EXECUTED as a Deed	  	)	  	
			
	by [Name of New Party]	  	)	  	
			
	acting by [                    ]	  	)	  	
			
	in the presence of:	  	)	  	

 Name: 

Address: 

  

					
		 	100	 	

			
	Agreed and accepted by the Global Agent
	
	DEG- Deutsche Investitions- und Entwicklungsgesellschaft mbH
		
	by	 	 
	
	Authorised Signatory
	
	Address:
	
	Fax No:
	
	Attention:

  

					
		 	101	 	

 SCHEDULE 5 
 HIV Protective Measures 
 (Adopted from ILO Code of Practice on HIV/AIDS and the World of
Work – Key principles) 
 The following principles are part of the International Labor Organization’s Code of Practice on HIV/AIDS and
the World of Work. The code is voluntary and meant for use by the private sector in the development of workplace policies and guidelines. 

HIV/AIDS is a workplace issue, not only because it affects the workforce, but also because the workplace can play a vital role in limiting the spread and
effects of the epidemic. 
 Non-Discrimination - There should be no discrimination or stigmatization against workers on the basis of real
or perceived HIV status. 
 Gender equality - More equal gender relations and the empowerment of women are vital to preventing the spread
of HIV infection and enabling women to cope with HIV/AIDS. 
 Healthy work Environment - The work environment should be healthy and safe,
and adapted to the state of health and capabilities of workers. 
 Social Dialogue - A successful HIV/AIDS policy and program requires
cooperation, trust and dialogue between employers, workers, and governments. 
 Screening for purposes of employment - HIV/AIDS screening
should not be required of job applicants or persons in employment, and testing for HIV should not be carried out at the workplace except as specified in this code. 
 Confidentiality - Access to personal data relating to a worker’s HIV status should be bound by the rules of confidentiality consistent with existing ILO codes of practice. 

Continuing the employment relationship - HIV infection is not a cause for termination of employment. Persons with HIV-related illnesses should be
able to work for as long as medically fit in appropriate conditions. 
 Prevention - The social partners are in a unique position to
promote prevention efforts through information and education; and support changes in attitudes and behaviour. 
 Care and Support -
Solidarity, care and support should guide the response to AIDS in the workplace. All workers are entitled to affordable health services and to benefits from statutory and occupational schemes. 

  

					
		 	102	 	

 SCHEDULE 6 
 Form of Operating Report 
 Report Date:
[                    ] 

Subject: Operating report for the period between DD/MM/20XX and DD/MM/20XX 

Operating Report 
  

	 	1	Generation Summary 

  

					
	 Item
	  	 For the period
	  	 YTD 20XX

	 Net Energy Sales (MWh)
	  		  	
	 Avg. Daily Generation (MW)
	  		  	
	 Availability (%)
	  		  	

  

													
	 OEC
	  	 Operational
Hours during
Period
	  	 Periodical
 MWh

Generation
(Gross)
	  	 Periodical
 MW
 (Gross)
	  	 YTD

hr
	  	 YTD
 MWh

(Gross)
	  	 YTD
 MW

(Gross)

	 OEC-1
	  		  		  		  		  		  	
	 OEC-2
	  		  		  		  		  		  	
	 OEC-3
	  		  		  		  		  		  	
	 OEC-4
	  		  		  		  		  		  	
	 OEC-5
	  		  		  		  		  		  	
	 OEC-6
	  		  		  		  		  		  	
	 Total
	  		  		  		  		  		  	

  

					
		 	103	 	

 Summary of Power Generation: 

 

							
	 Indicator
	  	 Units
	  	 During
 Reporting

Period
	  	 Accumulated
 during

Calendar Year

	 Power Plant Gross Generation

Aux. Load
 Net Energy Sales
	  	MWh	  		  	
	 Average Power Delivered
	  	MW	  		  	
	 Average Power corrected by ambient temperature
	  	MW	  		  	
	 Capacity Factor 48 MW

Availability Factor all OECs
	  	%	  		  	
	 Average Ambient Temperature
	  	°C	  		  	

  

	 	2	Maintenance Summary 

  

	 	2.1	OEC down time. 

 Definition: OEC
is not available if it is stopped for preventive or corrective maintenance. 
  

	 	•	 	 Maintenance Hours: 

  

			
	Preventive –             man hrs. total	  	OEC            hrs. down time registered
	Corrective –             man hrs. total	  	OEC            hrs. down time registered

  

	 	2.2	Corrective Maintenance 

  

											
	  	  	 Date
	  	 Corrective Maintenance Events
	  	 Man Hrs
	  	 Total

Man Hrs
	  	 Down Time

	 BOP
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	 OEC 1
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	 OEC 2
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	 OEC 3
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	 OEC 4
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	 OEC 5
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	 OEC 6
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	  	[Date]	  	[Event]	  		  		  	
	 Total
	  		  		  		  		  	

  

					
		 	104	 	

	 	2.3	Maintenance Activities/Events Summary: 

 Power Grid: 
  

	 	•	 	 [Preventive maintenance done as per schedule] 

Balance of Plant: 
  

	 	•	 	 [Monthly and weekly done as per schedule.] 

  

	 	•	 	 [Early generation main steam line was repaired.] 

  

	 	•	 	 [Annual maintenance for EG BOP was done.] 

 Well field and Gathering System: 
  

	 	•	 	 [Weekly and monthly procedures done on schedule.] 

OEC Units: 
  

	 	•	 	 [Monthly and weekly PM done accordingly on all units.] 

 

	 	•	 	 [OEC 4 feed pump 9300B failed and pulled out for farther investigation.] 

 

	 	•	 	 [Commissioning of condensate bypass control valves.] 

  

	 	•	 	 [Annual maintenance for EF units was done as scheduled.] 

 

	 	3	Environmental Compliance Status 

[Reporting guidance: Please include results of monthly H2S monitoring program as a report attachment] 

  

					
		 	105	 	

	 	4	Power Plant Safety Monthly Status 

  

			
	 Event
	  	 Date

	 Last Safety and Health Committee Training
	  	[Date]
	 Last Safety and Health Committee Meeting
	  	[Date]
	 Last Basic Occupational Safety and Health Training
	  	[Date]
	 Last Safety and Health meeting held (all)
	  	[Date]
	 Last Annual Fire Fighting Course
	  	[Date]
	 Last CPR and First Aid course
	  	[Date]
	 Last safety emergency response plan review
	  	[Date]
	 Last Occupational Accident/Incident Committee Training
	  	[Date]

 Health and Safety Report 
 (The total lost time work hours logged during the specified reporting period should be reported to the appropriate regulatory agency.) 

 

																											
	 Non-Fatal Injures
	 	 Jan
	 	 Feb
	 	 Mar
	 	 Apr
	 	 May
	 	 Jun
	 	 Jul
	 	 Aug
	 	 Sep
	 	 Oct
	 	 Nov
	 	 Dec
	 	 Year To-

Date

	 Number of Injuries (note 1)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Lost time less than one day
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Lost time up to 3 days (note 2)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Lost time more than 3 days (note 2)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Total Number of Injuries
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Time Lost (number of whole days)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Lost time up to 3 days
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Lost time more than 3 days
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Total Time Lost (days)
	 		 		 		 		 		 		 		 		 		 		 		 		 	

  

	Note 1:	Recorded on the day of the incident. 

	Note 2:	The day on which an incident occurs is not included in the total 

  

					
		 	106	 	

																											
	 Occupational Illness
	 	 Jan
	 	 Feb
	 	 Mar
	 	 Apr
	 	 May
	 	 Jun
	 	 Jul
	 	 Aug
	 	 Sep
	 	 Oct
	 	 Nov
	 	 Dec
	 	 Year To-

Date

	 Number of Positive Diagnoses (note 1)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Lost time less than one day
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Lost time up to 3 days (note 2)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Lost time more than 3 days (note 2)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Total Number of Positive Diagnoses
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Time Lost (number of whole days)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Lost time up to 3 days
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Lost time more than 3 days
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Total Time Lost (days)
	 		 		 		 		 		 		 		 		 		 		 		 		 	

  

	Note 1:	Recorded on the day of the positive diagnosis. 

	Note 2:	The day on which an incident occurs is not included in the total 

  

																											
														
	 Fatalities
	 	 Jan
	 	 Feb
	 	 Mar
	 	 Apr
	 	 May
	 	 Jun
	 	 Jul
	 	 Aug
	 	 Sep
	 	 Oct
	 	 Nov
	 	 Dec
	 	 Year To-
Date

	 Number of Fatalities (note 1)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Immediate
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Within a Month of Injury
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Within a Year of Injury
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Total Number of Fatalities
	 		 		 		 		 		 		 		 		 		 		 		 		 	

  

	Note 1:	Recorded at time of death. 

  

			
	Contracted Plant Capacity (MW)	  	[Amount]
	Date of Last Contracted Capacity Test	  	[Date]

 [Reporting guidance: Please provide spreadsheet file that’s the basis for the tabulated monthly
report data below along with the semiannual report .pdf file] 
  

																											
	  	 	 Jan
	 	 Feb
	 	 Mar
	 	 Apr
	 	 May
	 	 Jun
	 	 Jul
	 	 Aug
	 	 Sep
	 	 Oct
	 	 Nov
	 	 Dec
	 	 YTD

	 OEC 1
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Operating Hours
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Gross Generation (MWh)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
														
	 OEC 2
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Operating Hours
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Gross Generation (MWh)
	 		 		 		 		 		 		 		 		 		 		 		 		 	

  

					
		 	107	 	

																											
	  	 	 Jan
	 	 Feb
	 	 Mar
	 	 Apr
	 	 May
	 	 Jun
	 	 Jul
	 	 Aug
	 	 Sep
	 	 Oct
	 	 Nov
	 	 Dec
	 	 YTD

														
	 OEC 3
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Operating Hours
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Gross Generation (MWh)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
														
	 OEC 4
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Operating Hours
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Gross Generation (MWh)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
														
	 OEC 5
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Operating Hours
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Gross Generation (MWh)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
														
	 OEC 6
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Operating Hours
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Gross Generation (MWh)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
														
	 Plant
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Gross Generation (MWh)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Auxiliary Use (MWh)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Energy Sales (MWh)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
														
	 Scheduled / Preventive Maintenance (MWh)
	 		 		 		 		 		 		 		 		 		 		 		 		 	

  

					
		 	108	 	

																											
	  	 	 Jan
	 	 Feb
	 	 Mar
	 	 Apr
	 	 May
	 	 Jun
	 	 Jul
	 	 Aug
	 	 Sep
	 	 Oct
	 	 Nov
	 	 Dec
	 	 YTD

	 Unscheduled / Corrective Maintenance (MWh)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
														
	 Maximum Load (MW)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Minimum Load (MW)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Average Load (MW)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Period Hours
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Operating Hours
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Total Plant Scheduled / Preventive Maintenance Man Hours
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Total Plant Unscheduled / Corrective Maintenance Man Hours
	 		 		 		 		 		 		 		 		 		 		 		 		 	
														
	 Calculated Steam Usage (Ton)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Average Steam Temperature
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Average Steam Pressure
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Total Brine Usage (Ton)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Average Brine Temperature
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Average Brine Pressure (bar g)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
														
	 Injection
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Total Injected (Ton)
	 		 		 		 		 		 		 		 		 		 		 		 		 	
	 Average Injection Temperature
	 		 		 		 		 		 		 		 		 		 		 		 		 	
														
	 Average Ambient Temperature
	 		 		 		 		 		 		 		 		 		 		 		 		 	

  

					
		 	109	 	

	 	5	Comparison Between Operating Budget and Actual Financial Performance 

  

													
	 	  	Actual*	  	Budget*
	 	  	1st
Qtr	  	2nd
Qtr	  	3rd
Qtr	  	4th
Qtr	  	Total	  	Total
	 1. Salaries, G&A, etc.
	  		  		  		  		  		  	
	 1.1 Salaries (fixed monthly portion)
	  		  		  		  		  		  	
	 1.2 Salaries (Other)
	  		  		  		  		  		  	
	 1.3 Site G&A
	  		  		  		  		  		  	
	 1.4 Property Insurance
	  		  		  		  		  		  	
	 1.5 Owner G&A
	  		  		  		  		  		  	
	 1.6 Housing
	  		  		  		  		  		  	
	 1.7 Safety
	  		  		  		  		  		  	
	 1.8 Other / Misc.
	  		  		  		  		  		  	
		  	  
	  	  
	  	  
	  	  
	  	  
	  	  

							
	 Total Fixed Costs Budget
	  		  		  		  		  		  	
		  	  
	  	  
	  	  
	  	  
	  	  
	  	  

	 2. Spare Parts, Consumables, etc.
	  		  		  		  		  		  	
	 2.1 Spare parts, repairs and consumables
	  		  		  		  		  		  	
	 2.2 Other / Misc.
	  		  		  		  		  		  	
	 Total Variable Costs Budget
	  		  		  		  		  		  	
		  	  
	  	  
	  	  
	  	  
	  	  
	  	  

	 3. Wellfield Maintenance / Capex (excluding draw on reserves)
	  		  		  		  		  		  	
	 3.1 Wellfield Maintenance
	  		  		  		  		  		  	
	 3.2 CapEx
	  		  		  		  		  		  	
	 3.3 Misc.
	  		  		  		  		  		  	
	 Total Wellfield Maintenance / Capex Budget
	  		  		  		  		  		  	
		  	  
	  	  
	  	  
	  	  
	  	  
	  	  

	 4. O&M Contingencies & misc.
	  		  		  		  		  		  	
	 4.1 O&M Contingencies & misc.
	  		  		  		  		  		  	
	 5. Corporate Income Taxes
	  		  		  		  		  		  	
	 5.1 Cash corporate income taxes
	  		  		  		  		  		  	
		  	  
	  	  
	  	  
	  	  
	  	  
	  	  

	 6. TOTAL
	  		  		  		  		  		  	
		  	  
	  	  
	  	  
	  	  
	  	  
	  	  

  

	*	Sums are in thousand dollars. 

  

					
		 	110	 	

											
	 Generation and Revenue
	  	1st Qtr	  	2nd Qtr	  	3rd Qtr	  	4th Qtr	  	YTD
	 Projected Net Generation (MWh)
	  		  		  		  		  	
	 Actual Net Generation (MWh)
	  		  		  		  		  	
	 Budgeted Revenue (M$)
	  		  		  		  		  	
	 Invoiced Amounts (M$)
	  		  		  		  		  	

  

					
		 	111	 	

 SCHEDULE 7 
 Repayment Schedule 
  

															
	 Instalment
	  	Repayment
Date	  	DEG “A”
Facility (US$)	 	  	DEG “B”
Facility
(US$)	 	  	Total (US$)	 
	 1
	  	15/12/09	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 2
	  	15/06/10	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 3
	  	15/12/10	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 4
	  	15/06/11	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 5
	  	15/12/11	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 6
	  	15/06/12	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 7
	  	17/12/12	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 8
	  	17/06/13	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 9
	  	17/12/13	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 10
	  	17/06/14	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 11
	  	17/12/14	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 12
	  	17/06/15	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 13
	  	17/12/15	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 14
	  	17/06/16	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 15
	  	17/12/16	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 16
	  	17/06/17	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 17
	  	17/12/17	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 18
	  	17/06/18	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  
	 19
	  	17/12/18	  	 	3,157,894.74	  	  	 	789,473.68	  	  	 	3,947,368.42	  

  

					
		 	112	 	

 SCHEDULE 8 
 Corporate Structure Chart 
  
 

 

  

					
		 	113	 	

 SCHEDULE 9 
 Form of Financial Statements 
 Part 1 

Form of Unaudited Financial Statements for Company 
 Assets 
 Current assets: 
 Cash and cash equivalents 
 Trade receivables 

Prepaid expenses and other receivable 
 Total
current assets 
 Non-Current assets: 

Deposits and other 
 Property, plant and
equipment, net 
 Construction-in-process 
 Total non-current assets 
 Total assets 
 Liabilities and Shareholder’s Equity 
 Current liabilities- 

Accounts payable and accrued expenses 

Non-Current liabilities: 
 Deferred income taxes

 Due to related entities 
 Due to
parent 
 Total non-current liabilities 

Total liabilities 
 Shareholder’s equity:

 Share capital 
 Retained earnings

 Total shareholder’s equity 

Total liabilities and shareholder’s equity 

Revenues 
 Cost of revenues 

Gross margin 
 General and administrative
expenses 
 Other operating income 

Other expenses – net 

  

					
		 	114	 	

 Operating income 
 Income tax expense 
 Net income for the period 

Cash flows from operating activities: 

Income before income taxes 
 Interest received

 Income tax paid 
 Adjustments to
reconcile net income to net cash provided by operating activities: 
 Depreciation 
 Amortization of prepaid operating lease rentals 
 Profit on sale of property, plant and equipment

 Interest received 

Construction-in-process 
 Changes in operating
assets and liabilities: 
 Receivables and prepaid expenses 
 Intercompany 
 Accounts payable and accrued expenses 

Net cash provided by operating activities 

Cash flows from investing activities: 

purchase of property, plant and equipment 

Payments for construction in progress 
 Proceeds
from disposal of property, plant and equipment 
 Net cash used in investing activities 
 Cash flows from financing activities – 
 Repayment of related party balances

 Net cash provided by (used in) financing activities 
 Net increase in cash and cash equivalents 
 Cash and cash equivalents at beginning of period

 Cash and cash equivalents at end of period 
 Supplemental non-cash investing activities – 
 Increase in due to related party related to
purchases of property, plant and equipment 
 Increase in accounts payable related to purchases of property, plant and equipment 

  

					
		 	115	 	

 Part 2 
 Form of Audited Financial Statements for Kenyan Branch 
 ORPOWER4, INC
– KENYA BRANCH 
 FINANCIAL STATEMENTS 
 FOR THE YEAR ENDED DECEMBER 31, 2011 

  

					
		 	116	 	

 Part 3 
 Form of Audited Financial Statements for Company 
 ORPOWER4, INC

 FINANCIAL STATEMENTS 
 FOR THE YEAR ENDED DECEMBER 31, 2011 AND FOR THE SIX MONTHS 
 ENDED JUNE
30, 2012 

  

					
		 	117	 	

 SCHEDULE 10 
 Site Plan 
  
 

 

  

					
		 	118	 	

 SCHEDULE 11 
 Excluded Activities 
  

	1	 Production or activities involving forced labour1 or child labour2. 

  

	2	Production or trade in any product or activity deemed illegal under host country laws or regulations or international conventions and agreements.

  

	3	 Production or trade
in3 

 

	 	3.1	weapons and munitions 

  

	 	3.2	tobacco 

  

	 	3.3	hard liquor. 

  

	4	 Gambling, casinos and equivalent enterprises4. 

  

	5	Any business relating to pornography or prostitution. 

  

	6	 Trade in wildlife or wildlife products regulated under CITES5. 

  

	7	 Production or use of or trade in hazardous materials such as radioactive materials6, unbounded asbestos fibres and products containing PCBs7. 

  

	8	Cross-border trade in waste and waste products unless compliant to the Basel Convention and the underlying regulations. 

 

	9	Drift net fishing in the marine environment using nets in excess of 2.5km in length. 

 

	1 	 Forced labour means all work or service, not voluntarily performed, that is extracted from an individual under threat of force or penalty as defined in
the ILO conventions. 

	2 	 Employees may only be taken if they are at least 14 years old, as defined in the ILO Fundamental Human Rights conventions (Minimum Age Convention C138,
Art. 2), unless local legislation specifies compulsory school attendance or the minimum age for working. In such cases the higher age shall apply. 

	3 	 This applies when these activities are a substantial part of a project sponsor’s primary operations. 

	4 	 This applies when these activities are a substantial part of a project sponsor’s primary operations. 

	5 	 CITES: Convention on International Trade in Endangered Species or Wild Fauna and Flora. 

	6 	 This does not apply to the purchase of medical equipment, quality control (measurement) equipment and any other equipment where EFP considers the
radioactive source to be trivial and/or adequately shielded. 

	7 	 PCBs: Polychlorinated biphenyls, a group of highly toxic chemicals. PCBs are likely to be found in oil-filled electrical transformers, capacitors and
switchgear dating from 1950-1985. 

  

					
		 	119	 	

	10	 Production, use of or trade in pharmaceuticals, pesticides/herbicides, chemicals, ozone depleting substances8 and other hazardous substances subject to international phase-outs or
bans. 

  

	11	 Significant conversion or degradation9 of Critical Habitat10. 

  

	12	Production and distribution of racist, anti-democratic and/or neo-nazi media. 

 

	8 	 Ozone Depleting Substances: Chemical compounds, which react with and delete stratospheric ozone, resulting in “holes in the ozone layer“. The
Montreal Protocol lists ODs and their target reduction and phase-out dates. 

	9 	 Significant conversion or degradation means the (1) elimination or seves diminution of the integrity of a habitat caused by a major, long-term
change in land or water use; or (2) modification of a habitat that substantially reduces the habitat’s ability to maintain viable population of its native species. 

	10 	 Critical habitat is a subset of both natural and modified habitat that deserves particular attention. Critical habitat includes areas with high
biodiversity value that meet the criteria of the world Conservation Union (IUCN) classification, including habitat required for the survival of critically endangered or endangered species as defined by the IUCN Red List of Threatened Species or as
defined in any national legislation; areas having special significance for endemic or restricted-range species; sites that are critical for the survival of migratory species; areas supporting globally significant concentrations or numbers of
individuals of congregatory species; areas with unique assemblages of species or which are associated with key evolutionary processes or provide key ecosystem services; and areas having biodiversity of significant social, economic or cultural
importance to local communities. Primary Forest or forests of High Conservation Value shall be considered Critical Habitats. 

  

					
		 	120	 	

 SCHEDULE 12 
 Calculation of the Mandatory Cost 
  

	1	The Mandatory Cost is an addition to the interest rate to compensate Lenders for the cost of compliance with: 

the requirements of the Bank of England and/or the Financial Services Authority (or, in either case, any other authority which replaces
all or any of its functions); or 
 the requirements of the European Central Bank. 

 

	2	On the first day of each Interest Period (or as soon as possible thereafter) the Global Agent shall calculate, as a percentage rate, a rate (the “Additional
Cost Rate”) for each Lender, in accordance with the paragraphs set out below. The Mandatory Cost will be calculated by the Global Agent as a weighted average of the Lenders’ Additional Cost Rates (weighted in proportion to the
percentage participation of each Lender in the relevant Loan) and will be expressed as a percentage rate per annum. 

  

	3	The Additional Cost Rate for any Lender lending from a Facility Office in a Participating Member State will be the percentage notified by that Lender to the Global
Agent. This percentage will be certified by that Lender in its notice to the Global Agent to be its reasonable determination of the cost (expressed as a percentage of that Lender’s participation in all Loans made from that Facility Office) of
complying with the minimum reserve requirements of the European Central Bank in respect of loans made from that Facility Office. 

  

	4	The Additional Cost Rate for any Lender lending from a Facility Office in the United Kingdom will be calculated by the Global Agent as follows:

  

							
	 E × 0.01
	 		  	per cent. per annum.	  	
	300	 		  	  	

 Where: 
 E: is designed to compensate Lenders for amounts payable under the Fees Rules and is calculated by the Global Agent as being the average of the most recent rates of charge supplied by the Reference Banks
to the Global Agent pursuant to paragraph 7 below and expressed in pounds per £1,000,000. 
  

	5	For the purposes of this Schedule: 

 “Fees Rules” means the rules on periodic fees contained in the FSA Supervision Manual or such other law or regulation as may be in force from time to time in respect of the payment of
fees for the acceptance of deposits; 

  

					
		 	121	 	

 “Fee Tariffs” means the fee tariffs specified in the Fees Rules under the
activity group A.1 Deposit acceptors (ignoring any minimum fee or zero rated fee required pursuant to the Fees Rules but taking into account any applicable discount rate); and 
 “Tariff Base” has the meaning given to it in, and will be calculated in accordance with, the Fees Rules. 
  

	6	If requested by the Global Agent, each Reference Bank shall, as soon as practicable after publication by the Financial Services Authority, supply to the Global Agent,
the rate of charge payable by that Reference Bank to the Financial Services Authority pursuant to the Fees Rules in respect of the relevant financial year of the Financial Services Authority (calculated for this purpose by that Reference Bank as
being the average of the Fee Tariffs applicable to that Reference Bank for that financial year) and expressed in pounds per £1,000,000 of the Tariff Base of that Reference Bank. 

 

	7	Each Lender shall supply any information required by the Global Agent for the purpose of calculating its Additional Cost Rate. In particular, but without limitation,
each Lender shall supply the following information on or prior to the date on which it becomes a Lender: 

 the
jurisdiction of its Facility Office; and 
 any other information that the Global Agent may reasonably require for such purpose.

 Each Lender shall promptly notify the Global Agent of any change to the information provided by it pursuant to this paragraph.

  

	8	The rates of charge of each Reference Bank for the purpose of E above shall be determined by the Global Agent based upon the information supplied to it pursuant to
paragraphs 6 and 7 above and on the assumption that, unless a Lender notifies the Global Agent to the contrary, each Lender’s obligations in relation to cash ratio deposits and Special Deposits are the same as those of a typical bank from its
jurisdiction of incorporation with a Facility Office in the same jurisdiction as its Facility Office. 

  

	9	The Global Agent shall have no liability to any person if such determination results in an Additional Cost Rate which over or under compensates any Lender and shall be
entitled to assume that the information provided by any Lender or Reference Bank pursuant to paragraphs 3, 6 and 7 above is true and correct in all respects. 

 

	10	The Global Agent shall distribute the additional amounts received as a result of the Mandatory Cost to the Lenders on the basis of the Additional Cost Rate for each
Lender based on the information provided by each Lender and each Reference Bank pursuant to paragraphs 3, 7 and 8 above. 

  

					
		 	122	 	

	11	Any determination by the Global Agent pursuant to this Schedule in relation to a formula, the Mandatory Cost, an Additional Cost Rate or any amount payable to a Lender
shall, in the absence of manifest error, be conclusive and binding on all Parties. 

  

	12	The Global Agent may from time to time, after consultation with the Company and the Lenders, determine and notify to all Parties any amendments which are required to be
made to this Schedule in order to comply with any change in law, regulation or any requirements from time to time imposed by the Bank of England, the Financial Services Authority or the European Central Bank (or, in any case, any other authority
which replaces all or any of its functions) and any such determination shall, in the absence of manifest error, be conclusive and binding on all Parties. 

  

					
		 	123	 	

 SCHEDULE 13 
 Form of Operating Budget 
  

			
	From : January 1st [        ]	  	To: December 31st [        ]

  

							
	(In US$ thousands)	  	[                    ] 
OPERATING
BUDGET
	 	  	Annual	 	 	Comments
			
	 1. Salaries, G&A, etc.
	  				 	
			
	 1.1 Salaries (Fixed Monthly Portion)
	  	$	[            	] 	 	1/12 per
month
			
	 1.2 Salaries other
	  	$	[            	] 	 	
			
	 1.3 Site G&A
	  	$	[            	] 	 	1/12 per
month
			
	 1.4 Property insurance
	  	$	[            	] 	 	
			
	 1.5 Owner G&A
	  	$	[            	] 	 	
			
	 1.6 Housing
	  	$	[            	] 	 	
			
	 1.7 Safety
	  	$	[            	] 	 	
			
	 1.8 Other / Misc.
	  	$	[            	] 	 	
		  	  
	  
	 	 	
			
	 Total Fixed Costs Budget
	  	$	[            	] 	 	
		  	  
	  
	 	 	
			
	 2. Spare parts, Consumables, etc.
	  				 	
			
	 2.1 Spare parts, repairs and consumables
	  	$	[            	] 	 	
			
	 2.2 Other / Misc.
	  	$	[            	] 	 	
		  	  
	  
	 	 	
			
	 Total Variable Costs Budget
	  	$	 	  	 	
		  	  
	  
	 	 	

  

					
		 	124	 	

							
		
	 3. Wellfield Maintenance / Capex
	  	  
	 (exc, draw on reserves)

			
	 3.1 Wellfield maintenance
	  	$	[            	] 	 	
			
	 3.2 CapEx
	  	$	[            	] 	 	
			
	 3.3 Misc.(*)
	  	$	[            	] 	 	
		  	  
	  
	 	 	
			
	 Total Wellfield Maintenance / Capex
	  	$	[            	] 	 	
		  	  
	  
	 	 	
			
	 4. O&M Contingencies & misc.
	  				 	
			
	 4.1 O&M Contingencies & misc.
	  	$	[            	] 	 	
		  	  
	  
	 	 	
			
	 5. Income Taxes
	  				 	
		  	  
	  
	 	 	
			
	 5.1 Cash Income Taxes
	  	$	[            	] 	 	
		  	  
	  
	 	 	
			
	 6. TOTAL OPERATING BUDGET FOR PERIOD(**)
	  	$	[            	] 	 	

 The Annual Operating Budget above is not evenly spread across the months within the year, with the exception of the
items which are commented with “1/12 per month”. 
  

	(*)	If miscellaneous amount exceeds twenty percent (20%) of total Wellfield Maintenance / Capex Amount, such costs should be further broken-down by category.

	(**)	Excluding: deposits to reserve accounts, political risk insurance premiums, royalty charges on revenue to KPLC, interest on debitory accounts (if any) and
hedging costs (if any). 

  

					
		 	125	 	

 SCHEDULE 14 
 Form of Environmental and Social Action Plan 
 The Company shall wherever applicable
continue to carry out the actions as specified below and declares that the necessary resources will be allocated. This Environmental and Social Action Plan is based on the Environmental and Social Review Summary (ESRS, dated 23.06.08) that was
prepared for the Project by DEG. This Environmental and Social Action Plan does not substitute the Environmental and Social Management Plan (“ESMP”). 
  

									
	 Environmental &
social issues
	  	 Action description
	  	 Responsible staff
member/s
	  	
Status11
	  	
Remarks12

				
	IFC Performance Standards	  		  		  	
					
	Compliance with IFC Performance Standards as per the Common Terms Agreement	  	Incorporate into the ESMP the commitment to comply with the IFC Performance Standards	  	Plant Manager	  	Completed	  	None.
					
	Management capacity and organisation	  	 Nominate responsible person within the organisation for:
  

• community contacts and issues

 
 • environmental issues

 
 • health and
safety
	  	Environmental Officer	  	Completed	  	None

  

	11 	 Status: planned, budgeted, started, completed 

	12 	 Target completion: specified date, ongoing 

  

					
		 	126	 	

									
	Mitigation of social impacts
					
	Massai community	  	Develop and implement a formalised grievance mechanism for surrounding communities that allows individuals to address concerns	  	Plant Manager	  	Completed	  	None
					
		  	Continue regular consultation and take, if necessary, actions necessary as a result of the consultations	  	Plant Manager	  	On going	  	To be carried out on quarterly basis
					
	HIV/ AIDS	  	Draft a HIV/AIDS policy in accordance with the Common Terms Agreement (Schedule 5)	  	Plant Manager	  	Completed	  	None
					
		  	Formally adopt and launch a HIV/AIDS policy and establish the required program	  	Plant Manager	  	Completed	  	None
				
	Mitigation of physical / chemical impacts	  		  		  	
					
	Greenhouse gas emissions	  	Develop a method to quantify the composition of non condensable gas (“NCG”) emissions of the project and - include figure into the annual reporting	  	Plant Manager	  	On going	  	To be carried out on quarterly basis commencing from Q 1 2010

  

					
		 	127	 	

									
	Tracer studies	  	Take all reasonable efforts to verify the presence and the results of the tracer studies carried out by KenGen	  		  	Completed	  	None
				
	Monitoring	  		  		  	
					
	ESMP	  	Review the ESMP subsequent to operation to assess areas where changes or additional actions would be appropriate	  	Plant Manager	  	On going	  	To be carried out annually
					
	H2S Monitoring	  	Installation of two continuous H2S monitors at locations accessible to the public.	  	Plant Manager	  	Completed	  	None
					
	Soil sampling	  	Obtain soils samples and analyze annually for contaminants such as boron, arsenic and mercury at one or two nearby locations in vegetated areas (selection of location to based on
results of initial measurements)	  	Plant Manager	  	On going	  	To be carried out annually
				
	Reporting and Review	  		  		  	
					
	Annual independent review	  	Review of compliance with environmental and social contractual obligations by an independent – NEMA approved – consultant and include results in the Annual
Environmental and Social Report prepared by the consultant and submitted to NEMA and copied to the Global Agent	  	Plant Manager	  	On going	  	To be carried out annually

  

					
		 	128	 	

 SCHEDULE 2 
 to the Amendment Agreement 
 Conditions Precedent 

 

	1	A copy, certified a true copy by an Authorised Signatory, of the constitutional documents of the Company or a certificate of such an Authorised Signatory confirming
that its constitutional documents delivered pursuant to the Amended and Restated Common Terms Agreement remain in effect in such form unamended. 

  

	2	Certified copy extracts of a meeting of the board of directors of the Company approving the Amendment Documents and designating authorised signatories of the Company to
execute the Amendment Documents and any other documents required in connection with the transactions contemplated hereby and thereby. 

  

	3	A certificate of an Authorised Signatory setting out the names and signatures of the persons authorised to sign the Amendment Documents and all other documents to be
executed in connection herewith. 

  

	4	Satisfactory legal opinions from Trinity International LLP, English legal advisers to the Global Agent in England & Wales in connection with this Amendment
Agreement addressed to the Global Agent. 

  

	5	Satisfactory legal opinion from Cayman legal advisers to the Company in connection with this Amendment Agreement addressed to the Global Agent.

  

	6	Satisfactory legal opinion from Company’s New York Counsel in relation to the legal, valid, binding and enforceable nature of the Closing Coordination and Escrow
Agreement and the guaranty to be issued by Ormat Technologies, Inc. in relation to the Amended and Restated Common Terms Agreement. 

  

	7	Evidence of execution by all parties of the Closing Coordination and Escrow Agreement, the Subordination Agreement, the Amended Participation Agreement and the
Guarantee. 

  

	8	Evidence that the Company has paid all fees then due and payable to Lenders, including without limitation, the fees and expenses then owing in relation to the
Lenders’ External Advisers. 

  

	9	Confirmation from the Global Agent that it has received all financial and environmental reports due to be delivered to it under the Common Terms Agreement up to and
including the date of this Agreement. 

  

	10	Provision of the Certificate of the Independent Engineer in relation to the financial projections of the Project. 

  

					
		 	-9-	 	

 SIGNATORIES 

 

			
	Company
		
	SIGNED by:	 	  

	
	for and on behalf of 
	ORPOWER 4 INC.
		
	Name:	 	
		
	Title:	 	

  

			
	Global Agent
		
	SIGNED by:	 	  

	
	the duly constituted attorney(s) of
	DEG- DEUTSCHE INVESTITIONS-UND ENTWICKLUNGSGESELLSCHAFT MBH
		
	Name:	 	
		
	Title:	 	

  

					
		 	-10-	 	

			
	Original Lender
		
	SIGNED by:	 	  

	
	the duly constituted attorney(s) of
	DEG- DEUTSCHE INVESTITIONS-UND ENTWICKLUNGSGESELLSCHAFT MBH
		
	Name:	 	
		
	Title:	 	

  

					
		 	-11-Purchase and Sale Agreement

 Exhibit 10.3 
 Execution Version 
 PURCHASE AND SALE AGREEMENT 

BETWEEN 

QUANTUM RESOURCES A1, LP 
 QAB CARRIED WI, LP 
 QAC CARRIED WI, LP 

BLACK DIAMOND RESOURCES, LLC 
 (COLLECTIVELY AS SELLER) 
 AND 

QUANTUM RESOURCES MANAGEMENT, LLC 
 AND 
 AMERICAN MIDSTREAM CHATOM UNIT 1, LLC 

AMERICAN MIDSTREAM CHATOM UNIT 2, LLC 
 (COLLECTIVELY AS BUYER) 
 OPERATING FRACTIONAL INTEREST 

CHATOM GAS PLANT 
 WASHINGTON COUNTY, ALABAMA 
 May 25, 2012 

  
 i 

 TABLE OF CONTENTS 

 

					
	 1. Sale and Purchase of Assets
	  	 	1	  
	 1.1 Assets to be Sold
	  	 	1	  
	 1.2 Exclusions and Reservations
	  	 	2	  
	 1.3 Conveyancing Instruments
	  	 	4	  
	 2. Purchase Price and Effective Time
	  	 	4	  
	 2.1 Purchase Price
	  	 	4	  
	 2.2 Delivery of Deposit and Adjusted Purchase Price
	  	 	4	  
	 2.3 Allocation of Purchase Price
	  	 	4	  
	 2.4 Adjustments to Purchase Price
	  	 	5	  
	 2.5 Effective Time of Sale
	  	 	6	  
	 2.6 Security
	  	 	6	  
	 3. Allocation of Revenues and Costs; Indemnification Retained Obligations and Assumed Obligations
	  	 	6	  
	 3.1 Allocation of Revenues
	  	 	6	  
	 3.2 Allocation of Costs; Payment of Invoices
	  	 	7	  
	 3.3 Certain Indemnities
	  	 	7	  
	 3.4 Retained Obligations
	  	 	12	  
	 3.5 Assumed Obligations
	  	 	13	  
	 4. Taxes and Payables
	  	 	13	  
	 4.1 Payment of Taxes
	  	 	13	  
	 4.2 Production Taxes
	  	 	14	  
	 4.3 Occasional Sale of Assets
	  	 	14	  
	 5. Representations, Warranties, Acknowledgments, Disclaimers and Waivers
	  	 	14	  
	 5.1 Seller’s Representations and Warranties
	  	 	14	  
	 5.2 Buyer’s Representations and Warranties
	  	 	19	  
	 5.3 Representations and Warranties Exclusive
	  	 	21	  
	 5.4 Disclaimers, Waivers and Acknowledgments
	  	 	21	  
	 6. Title Matters
	  	 	22	  
	 6.1 Examination Period
	  	 	22	  
	 6.2 Title Defects
	  	 	23	  
	 6.3 Permitted Encumbrances
	  	 	23	  
	 6.4 Notice of Title Defects; Title Defect Valuation
	  	 	24	  
	 6.5 Remedies for Title Defects
	  	 	25	  
	 6.6 Title Benefits
	  	 	26	  
	 6.7 Limitation of Remedies for Title Defects; Title Benefits
	  	 	27	  

  
 ii 

					
	 7. Environmental Matters
	  	 	28	  
	 7.1 Environmental Review
	  	 	28	  
	 7.2 Environmental Definitions
	  	 	29	  
	 7.3 Notice of Environmental Defects
	  	 	30	  
	 7.4 Remedies for Environmental Defects
	  	 	30	  
	 7.5 Limitation of Remedies for Environmental Defects
	  	 	32	  
	 7.6 Post-Closing Environmental Indemnification by Buyer
	  	 	32	  
	 7.7 NORM
	  	 	32	  
	 7.8 Waiver
	  	 	33	  
	 8. Independent Experts
	  	 	33	  
	 8.1 Selection of Independent Experts
	  	 	33	  
	 8.2 Procedures
	  	 	34	  
	 8.3 Location of Proceeding
	  	 	34	  
	 9. Additional Covenants
	  	 	34	  
	 9.1 Operations Prior to Closing
	  	 	34	  
	 9.2 Preferential Rights to Purchase
	  	 	35	  
	 9.3 Transition Services Agreement
	  	 	36	  
	 9.4 Compliance
	  	 	37	  
	 10. Closing, Termination and Final Adjustments
	  	 	37	  
	 10.1 Conditions Precedent
	  	 	37	  
	 10.2 Closing
	  	 	40	  
	 10.3 Termination
	  	 	41	  
	 10.4 Final Adjustments
	  	 	42	  
	 11. Miscellaneous
	  	 	43	  
	 11.1 Insurance
	  	 	43	  
	 11.2 Casualty Loss of Assets
	  	 	43	  
	 11.3 Books and Records
	  	 	43	  
	 11.4 Publicity
	  	 	43	  
	 11.5 Assignment
	  	 	44	  
	 11.6 Entire Agreement
	  	 	44	  
	 11.7 Notices
	  	 	44	  
	 11.8 Governing Law
	  	 	45	  
	 11.9 Confidentiality
	  	 	45	  
	 11.10 Survival of Certain Obligations
	  	 	46	  
	 11.11 Further Cooperation
	  	 	46	  
	 11.12 Counterparts
	  	 	46	  
	 11.13 Exhibits and Schedules
	  	 	46	  
	 11.14 Severability
	  	 	46	  
	 11.15 Expenses, Post-Closing Consents and Recording
	  	 	46	  
	 11.16 Removal of Signs and Markers
	  	 	47	  
	 11.17 CONSPICUOUSNESS/EXPRESS NEGLIGENCE
	  	 	47	  
	 11.18 Waiver of Certain Damages; Limitation on Seller’s Indemnity
	  	 	47	  
	 11.19 Section 1031 Exchange
	  	 	48	  

  
 iii

 LIST OF EXHIBITS 

 

							
	 Exhibit “A”
	  	 	–	  	  	Plant Description
	 Exhibit “B”
	  	 	–	  	  	Plant Agreement
	 Exhibit “C”
	  	 	–	  	  	Fee Property
	 Exhibit “D”
	  	 	–	  	  	Form of Assignment
	 Exhibit “E”
	  	 	–	  	  	Form of Escrow Agreement
	 Exhibit “F”
	  	 	–	  	  	Form of Certificate of Non-Foreign Status
	 Exhibit “G”
	  				  	Financial Assurances

 LIST OF SCHEDULES 
  

							
	 Schedule 1.1(a)(ii)
	  	 	–	  	  	Rights of Way and Leases
	 Schedule 1.1(a)(iii)
	  	 	–	  	  	Material Related Facilities
	 Schedule 1.1(a)(iv)
	  	 	–	  	  	Permits
	 Schedule 1.1(a)(v)
	  	 	–	  	  	Material Contracts
	 Schedule 1.2(d)
	  	 	–	  	  	Seller’s Insurance
	 Schedule 1.2(i)
	  	 	–	  	  	Excluded Assets
	 Schedule 2.3
	  	 	–	  	  	Allocated Values
	 Schedule 2.4(a)(i)
	  	 	–	  	  	Working Capital Balance
	 Schedule 3.4
	  	 	–	  	  	Third Party Claims
	 Schedule 5.1(b)
	  	 	–	  	  	Required Approvals
	 Schedule 5.1(e)
	  	 	–	  	  	Suits and Claims
	 Schedule 5.1(f)(iii)
	  	 	–	  	  	Tax Liabilities
	 Schedule 5.1(g)
	  	 	–	  	  	Compliance with Laws
	 Schedule 5.1(h)
	  	 	–	  	  	Take or Pay Arrangements
	 Schedule 5.1(i)
	  	 	–	  	  	Preferential Rights and Consents to Assign
	 Schedule 5.1(o)
	  	 	–	  	  	Employees
	 Schedule 5.1(s)
	  	 	–	  	  	Security Assurances
	 Schedule 5.1(u)
	  	 	–	  	  	Undisclosed Liabilities
	 Schedule 6.3(b)
	  	 	–	  	  	Liens
	 Schedule 9.1
	  	 	–	  	  	Budget

  
 iv 

  
 TABLE OF
DEFINED TERMS 

 

					
	 AAA
	  	 	33	  
	 Adjusted Purchase Price
	  	 	4	  
	 Aggregate Defect Threshold
	  	 	26	  
	 Agreement
	  	 	1	  
	 Allocated Value
	  	 	4	  
	 Asset
	  	 	2	  
	 Assets
	  	 	2	  
	 Assignment
	  	 	4	  
	 Assumed Obligations
	  	 	13	  
	 Business Day
	  	 	6	  
	 Buyer
	  	 	1	  
	 Buyer Parties
	  	 	8	  
	 Buyer’s Environmental Review
	  	 	27	  
	 Casualty Loss
	  	 	41	  
	 Claim Notice
	  	 	10	  
	 Claims
	  	 	8	  
	 Closing
	  	 	38	  
	 Closing Date
	  	 	38	  
	 Closing Period Termination Date
	  	 	9	  
	 Closing Statement
	  	 	6	  
	 Code
	  	 	46	  
	 Consents
	  	 	16	  
	 Contracts
	  	 	2	  
	 Deposit
	  	 	4	  
	 Effective Time
	  	 	6	  
	 Environmental Defect
	  	 	28	  
	 Environmental Defect Notice
	  	 	29	  
	 Environmental Defect Value
	  	 	29	  
	 Environmental Information
	  	 	28	  
	 Environmental Laws
	  	 	28	  
	 Escrow Account
	  	 	24	  
	 Escrow Agent
	  	 	24	  
	 Escrow Agreement
	  	 	25	  
	 Examination Period
	  	 	21	  

					
	 Excluded Assets
	  	 	2	  
	 Final Settlement Statement
	  	 	40	  
	 Governmental Authority
	  	 	28	  
	 Hydrocarbons
	  	 	2	  
	 Indemnified Party
	  	 	10	  
	 Indemnifying Party
	  	 	10	  
	 Indemnity Amount
	  	 	9	  
	 Independent Expert
	  	 	32	  
	 Individual Indemnification Threshold
	  	 	8	  
	 Knowledge of Seller
	  	 	14	  
	 Marketable Title
	  	 	22	  
	 Party Appointed Arbitrator
	  	 	33	  
	 Permits
	  	 	2	  
	 Permitted Encumbrances
	  	 	22	  
	 Plant
	  	 	1	  
	 Plant Agreement
	  	 	1	  
	 Preferential Rights
	  	 	16	  
	 Purchase Price
	  	 	4	  
	 Records
	  	 	2	  
	 Related Facilities
	  	 	2	  
	 Representatives
	  	 	43	  
	 Retained Obligations
	  	 	13	  
	 Rights-of-Way
	  	 	1	  
	 Seller
	  	 	1	  
	 Seller Parties
	  	 	9	  
	 Seller Policies
	  	 	41	  
	 Seller’s Plant Interest
	  	 	1	  
	 Title Benefit
	  	 	26	  
	 Title Benefit Notice
	  	 	25	  
	 Title Benefit Value
	  	 	25	  
	 Title Defect
	  	 	21	  
	 Title Defect Notice
	  	 	23	  
	 Title Defect Value
	  	 	23	  

 
 

  
 v 

 PURCHASE AND SALE AGREEMENT 

THIS PURCHASE AND SALE AGREEMENT (this “Agreement”), dated May 25, 2012, is by and between QUANTUM RESOURCES
A1, LP, a Delaware limited partnership, QAB CARRIED WI, LP, a Delaware limited partnership, QAC CARRIED WI, LP, a Delaware limited partnership, and BLACK DIAMOND RESOURCES, LLC, a Delaware limited liability company (collectively,
“Seller”), and QUANTUM RESOURCES MANAGEMENT, LLC, a Delaware limited liability company, each of whose address is 1401 McKinney Street, Suite 2400, Houston, TX 77010 and AMERICAN MIDSTREAM CHATOM UNIT 1, LLC, a Delaware limited
liability company and AMERICAN MIDSTREAM CHATOM UNIT 2, LLC, a Delaware limited liability company, each of whose address is 1614 15th Street, Suite 300, Denver, CO 80202 (collectively, “Buyer”). 

W I T N E S S E T H: 
 That Seller desires to sell to Buyer, and Buyer desires to purchase from Seller, all of Seller’s undivided interest in the Chatom Gas Plant (the “Plant”) and related assets
located in Washington County, Alabama described herein pursuant to the terms and conditions of this Agreement, with each Buyer purchasing in such proportions of Seller’s interest as directed by Buyer to Seller prior to the Closing. Accordingly,
in consideration of the mutual promises contained herein, the mutual benefits to be derived by each party hereunder and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, Buyer and Seller agree as
follows: 
  

	1.	Sale and Purchase of Assets 

  

	 	1.1	Assets to be Sold. 

  

	 	(a)	Subject to the terms and conditions herein, Seller shall sell, transfer and assign, and Buyer shall purchase, pay for and receive, all of Seller’s 87.4%
(“Seller’s Plant Interest”) undivided right, title and interest in and to the Chatom Gas Plant located in Washington County, Alabama, and the gathering system and related facilities appurtenant thereto, more particularly
described or referred to on Exhibit “A” and which is hereby more specifically defined to mean all assets, tangible and intangible, as are owned by Seller, and held by the Plant operator (as named in the Plant Agreement) on
Seller’s behalf, pursuant to the terms of that certain Plant Agreement (the “Plant Agreement”) more particularly described on Exhibit “B”, including, the following, save and except the Excluded Assets:

  

	 	(i)	Fee Property: All of Seller’s rights as a Plant owner in and to all fee real property rights relating to the Plant (“Fee Property”),
said Fee Property being more particularly described on Exhibit “C”. 

  

	 	(ii)	Rights-of-Way: All of Seller’s rights as a Plant owner in and to all easements, rights-of-way, surface leases, servitudes, permits, licenses or other
surface use rights relating to the Plant (“Rights-of-Way”). All such Rights-of-Way are set forth in Schedule 1.1(a)(ii). 

  
 1 

	 	(iii)	Related Facilities: All of Seller’s rights as a Plant owner in and to all equipment, facilities, pipelines, fixtures and personal property appurtenant
thereto, which are situated on the Fee Property or the lands subject to the Rights-of-Way and which are used, stored or otherwise maintained in connection with the operation of the Plant (“Related Facilities”). Each material
Related Facility is set forth on Schedule 1.1(a)(iii). 

  

	 	(iv)	Permits: All of Seller’s rights as a Plant owner in and to all of the environmental and other governmental permits, licenses and related instruments or
rights necessary for the ownership or operation of the Plant (the “Permits”). All Permits are set forth on Schedule 1.1(a)(iv). 

 

	 	(v)	Contracts: All of Seller’s rights and obligations as a Plant owner under and pursuant to all contracts and agreements relating to the Plant including, but
not limited to, the Plant Agreement and all gas purchase agreements, gas processing agreements, gas sales agreements and gas treating, compression, dehydration and/or gathering agreements (“Contracts”). Each material Contract
is set forth on Schedule 1.1(a)(v). 

  

	 	(vi)	Hydrocarbons: All of Seller’s rights as a Plant owner to the oil, natural gas and natural gas liquids located in the Related Facilities at Closing
(“Hydrocarbons”). 

  

	 	(vii)	Records: All of Seller’s original books, records, files, maps, and records, and other similar information or data in the possession of Seller directly
relating to the Plant (“Records”); provided, however, that Seller may keep copies of the Records so long as such Records are kept confidential and not disclosed to any person or entity other than Buyer unless Seller has an
obligation to disclose the Records pursuant to the agreement in which Seller obtained its interest in the Plant. 

All such Seller’s Plant Interest, Fee Property, Rights-of-Way, Related Facilities, Permits, Contracts, Hydrocarbons and Records and
other assets described above are hereinafter collectively referred to as the “Assets” or, when used individually, an “Asset.” 

 

	 	(b)	Transfer of ownership and title to Seller’s Plant Interest in the Assets shall be made effective as of the Effective Time. 

1.2 Exclusions and Reservations. Specifically excepted and reserved from the Assets are the following, hereinafter referred to as
the “Excluded Assets”: 

  
 2 

	 	(a)	Seller’s corporate records, financial and tax records unrelated to the Assets, estimates and reports (except abstracts of title, title opinions, certificates of
title, and title curative documents related to the Assets which shall be furnished to the Buyer), economic analyses, computer programs and applications unrelated to the Assets, pricing forecasts, legal files and legal opinions (other than any such
files or opinions that relate to Assumed Obligations, all of which shall be furnished to Buyer), attorney-client communications, and attorney work product, and all records and documents (other than the Contracts set forth on Schedule 1.1(a)(v)
subject to confidentiality provisions or other restrictions on access or transfer); provided, however, that Seller will, upon Buyer’s request and at no cost or expense to Seller, request waivers of such restrictions; 

 

	 	(b)	Unless the Parties otherwise agree in writing, all of Seller’s intellectual property rights, including without limitation, patents, pending patents, trade secrets,
copyrights, names, marks, logos, and proprietary software and derivatives therefrom; 

  

	 	(c)	All rights and claims against third parties arising, occurring, or existing prior to the Effective Time, to the extent any such right or claim relates to any time
period prior to the Effective Time and is not related to an Assumed Obligation of Buyer, including, but not limited to, any and all contract rights, claims, penalties, receivables, revenues, recoupment rights, recovery rights, accounting
adjustments, mispayments, erroneous payments, personal or corporate injury, property damages, royalty payments and other rights and claims of any nature; 

  

	 	(d)	Subject to the provisions of Section 11.2, all of Seller’s insurance contracts set forth on Schedule 1.2(d) and all rights, titles, claims and
interests of Seller for all periods prior to the Effective Time (i) under any policy or agreement of insurance or indemnity, (ii) under any bond or letter of credit or other security device, or (iii) relating to any insurance or
condemnation proceeds or awards, together with all amounts due or payable to Seller as adjustments to insurance premiums for all periods prior to the Effective Time; 

 

	 	(e)	Claims of Seller for any refund of or loss carry forward with respect to (i) taxes for any period prior to the Effective Time, and (ii) income, occupational
or franchise taxes; 

  

	 	(f)	All monies, cash, deposits, checks in the process of collection, cash equivalents, accounts, notes receivable, proceeds, benefits, receipts, credits, income or revenues
(and any security or other deposits made) which are for the account of Seller pursuant to the terms of Section 3.1; 

  

	 	(g)	All rights, obligations, benefits, awards, judgments, settlements, if any, applicable to any litigation pending in which Seller is a named claimant or plaintiff or
holds beneficial rights or interests for periods prior to the Effective Time and which is not an Assumed Obligation of Buyer; 

  
 3 

	 	(h)	All swap, futures or derivative contacts to which Seller is a party and backed by or related to the Assets; and 

 

	 	(i)	Any other assets identified as excluded or retained on Schedule 1.2(i). 

 1.3 Conveyancing Instruments. The Assets to be conveyed by Seller to Buyer at Closing pursuant to Section 1.1(a) shall be conveyed “AS IS, WHERE IS,” without warranty of title
except against claims of title arising by, through or under Seller, but not otherwise, and subject to the express conditions and limitations contained in this Agreement. The Assets to be transferred to Buyer pursuant to Section 1.1(a)
shall be transferred pursuant to an Assignment and Bill of Sale substantially similar to the form of Exhibit “D” (the “Assignment”) and such other necessary instruments as specified in
Section 10.2. 
 1.4 GPIS Software. Seller’s rights to GPIS software are subject to a non-transferable
license and cannot be conveyed to Buyer. However, Seller will make commercially reasonable efforts to assist Buyer in obtaining its own license to such GPIS software, at Buyer’s sole cost and expense. 

 

	2.	Purchase Price and Effective Time 

 2.1 Purchase Price. As consideration for the sale of the Assets, Buyer shall pay to Seller Fifty Five Million Dollars ($55,000,000) (the “Purchase Price”), adjusted as set
forth below. The Purchase Price, as adjusted in accordance with Section 2.4, shall be referred to as the “Adjusted Purchase Price.” 
  

	 	(a)	Buyer shall deliver a performance deposit in the amount equal to ten percent (10%) of the Purchase Price (the “Deposit“) upon execution of
this Agreement and pay the Deposit to the Escrow Agent for deposit into the Escrow Account. The Deposit will be credited to the Purchase Price at Closing, and is not refundable except as provided in this Agreement. 

 

	 	(b)	The Adjusted Purchase Price shall be paid at Closing as provided herein. 

 2.2 Delivery of Deposit and Adjusted Purchase Price. The Deposit and the balance of the Adjusted Purchase Price shall be paid by Buyer by wire transfer, in immediately available funds to an account
as directed in writing by Seller. 
 2.3 Allocation of Purchase Price. Buyer and Seller have agreed upon an allocation of
the Purchase Price among the Assets (each an “Allocated Value”) as set forth in Schedule 2.3, such allocation having been made using the residual method under Section 1060 of the Internal Revenue Code. Buyer and
Seller shall use the allocation agreed upon for all reporting purposes having to do with federal, state and local income and franchise taxes, unless otherwise required by applicable law. Buyer and Seller will timely file any forms and information
reports required to be filed under Section 1060 of the Internal Revenue Code (including IRS Form 8594) and any 

  
 4 

 
corresponding provision of state or local tax law. In addition, Seller and Buyer agree (i) to file all tax returns and determine all taxes, including all taxes based on or measured by net
income or profits, in accordance with and based upon the allocation and (ii) not to take any position inconsistent with such allocation in any audit or judicial or administrative proceeding or otherwise, unless otherwise required by applicable
law. Concurrently with the preparation of the Final Settlement Statement under Section 10.4, Seller and Buyer shall seek, in good faith, to agree on a revised version of Schedule 2.3 that includes adjustments for any adjustments in
Purchase Price reflected on the Final Settlement Statement. If Buyer and Seller cannot agree to such adjustments, Buyer and Seller shall refer the matter to a nationally recognized public accounting firm in the United States mutually agreeable to
Buyer and Seller. Buyer and Seller shall equally share the fees and expenses of such accounting firm and its determination shall be binding on both Buyer and Seller. 
 2.4 Adjustments to Purchase Price. At Closing, the Purchase Price shall be adjusted (without duplication) in accordance with this Section 2.4. 

 

	 	(a)	The Purchase Price shall be increased by the following amounts: 

  

	 	(i)	the amount of Seller’s working capital account balance attributable to Seller’s Plant Interest as of the Effective Time, if any, such amount to be mutually
agreed by Buyer and Seller pursuant to the example calculation set forth on Schedule 2.4(a)(i) hereto; and 

  

	 	(ii)	the amount of expenses pertaining to the Assets that were actually paid by Seller to the extent such expenses are attributable to the period after the Effective Time,
including prepaid use, severance, ad valorem and real or personal property taxes (as allocated to such period under Sections 4.1 and 4.2) and prepaid emission fees; and 

 

	 	(iii)	any allocation of revenues, proceeds and benefits for the account of Seller, but not previously received by Seller pursuant to Section 3.1; and

  

	 	(iv)	any other amount specified herein or otherwise agreed upon by Seller and Buyer in writing. 

 

	 	(b)	The Purchase Price shall be decreased by the following amounts: 

  

	 	(i)	an amount equal to the Deposit; 

  

	 	(ii)	the amount of unpaid expenses pertaining to the Assets, including any unpaid use, severance, ad valorem and real or personal property taxes based upon or measured by
Seller’s Plant Interest to the extent such expenses, taxes and assessments are attributable to the period prior to the Effective Time (as allocated to such period under Sections 4.1 and 4.2); 

 

	 	(iii)	reductions due to Title Defects as provided in Section 6; 

  
 5 

	 	(iv)	reductions due to Environmental Defects as provided in Section 7; 

 

	 	(v)	any allocation of revenues, proceeds and benefits for the account of Buyer, but not previously received by Buyer pursuant to Section 3.1;

  

	 	(vi)	an amount equal to the Allocated Value attributed to any Asset which is excluded from the Assets delivered at closing as a result of the exercise of any Preferential
Right; and 

  

	 	(vii)	any other amount specified herein or otherwise agreed upon by Seller and Buyer in writing. 

 

	 	(c)	Seller shall prepare and deliver to Buyer an accounting statement (the “Closing Statement”) no later than three (3) Business Days prior to
Closing that shall set forth the adjustments to the Purchase Price made in accordance with this Agreement, it being understood and agreed that the Closing Statement shall contain actual costs and revenues, if actual amounts are not known at the
time, reasonable estimates thereof. As used herein, the term “Business Day” means any day other than Saturday, Sunday, or any day on which the principal commercial banks located in the State of Texas are authorized or
obligated to close under the laws of such State. 

 2.5 Effective Time of Sale. The effective time of the
sale of the Assets shall be as of 7:00 a.m. Central Standard Time on January 1, 2012 (the “Effective Time”). 
 2.6 Security. As a principal cause and consideration for Seller entering into this transaction, in addition to payment of the Purchase Price, at Closing Buyer shall assume all obligations of Seller
pursuant to the financial assurances, letters of credit and performance bonds described on Exhibit “G” attached hereto. 
  

	3.	Allocation of Revenues and Costs; Indemnification Retained Obligations and Assumed Obligations 

3.1 Allocation of Revenues. Seller shall own and receive (or receive credit in the Closing Statement or the Final Settlement
Statement, as applicable, for) all proceeds from the processing or sale of Hydrocarbons allocable to the Assets prior to the Effective Time, and shall also receive (or receive credit in the Closing Statement or the Final Settlement Statement, as
applicable, for) and hold the right to receive all other revenues, proceeds and benefits attributable to the Assets relating to all periods before the Effective Time. Buyer shall receive (or receive credit in the Closing Statement or the Final
Settlement Statement, as applicable, for) all proceeds from the processing or sale of Hydrocarbons from and after the Effective Time and shall also receive (or receive credit in the Closing Statement or the Final Settlement Statement, as applicable,
for) and hold the right to receive all other revenues, proceeds and benefits attributable to the Assets which relate to all periods from and after the Effective Time. If, within ninety (90) days after the Closing Date, Buyer discovers that
proceeds and revenues allocable to Buyer pursuant to this Section 3.1 have been paid to Seller for which credit was not made in the 

  
 6 

 
Closing Statement and the amount owed to Buyer exceeds Fifty Thousand Dollars ($50,000) in the aggregate, Buyer may provide written notice to Seller detailing the amount owed and if such amount
is due to Buyer pursuant to the terms of this Agreement, Seller shall pay to Buyer the full amount owed, such payment to be made promptly following Seller’s verification thereof. If, within ninety (90) days after the Closing Date, Seller
discovers that proceeds and revenues allocable to Seller pursuant to this Section 3.1 have been paid to Buyer for which credit was not made in the Closing Statement and the amount owed to Seller exceeds Fifty Thousand Dollars ($50,000) in the
aggregate, Seller may provide written notice to Buyer detailing the amount owed and if such amount is due to Seller pursuant to this section 3.1, Buyer shall pay to Seller the full amount owed, such payment to be made promptly following Buyer’s
verification thereof. 
 3.2 Allocation of Costs; Payment of Invoices. After the Closing, Seller shall be responsible for
and required to pay only that portion of any charge or invoice received that is applicable to work performed or material received during the period prior to the Effective Time, and other charges and invoices applicable to work performed or material
received from and after the Effective Time which have been disclosed to Buyer shall be returned to the billing party for rebilling to Buyer. Similarly, after the Closing, Buyer shall be responsible for and required to pay only that portion of any
charge or invoice received that is applicable to work performed or material received in the period on or subsequent to the Effective Time to the extent disclosed to Buyer, and other charges and invoices applicable to work performed or material
received prior to the Effective Time shall be returned to the billing party for rebilling to Seller. If, within ninety (90) days after the Closing Date, Buyer discovers that it has paid invoices or been charged costs that are allocable to
Seller pursuant to this Section 3.2 and the amount of such invoices and costs exceeds Fifty Thousand Dollars ($50,000) in the aggregate, Buyer may provide written notice to Seller detailing the amount owed and if such amount is due to Buyer
pursuant to this Section 3.2, Seller shall pay to Buyer the full amount owed, such payment to be made within ten (10) days following Seller’s receipt of such notice thereof. If, within ninety (90) days after the Closing Date,
Seller discovers that it has paid invoices or been charged costs that are allocable to Buyer pursuant to this Section 3.2 and the amount of such invoices and costs exceeds Fifty Thousand Dollars ($50,000) in the aggregate, Seller may provide
written notice to Buyer detailing the amount owed and if such amount is due to Seller pursuant to this Section 3.2, Buyer shall pay to Seller the full amount owed, such payment to be made within ten (10) days following Buyer’s receipt
of such notice thereof. 
  

	 	3.3	Certain Indemnities. 

  

	 	(a)	 Definition of Claims. The term “Claims” means any and all direct or indirect demands, claims, notices of violation,
notices of probable violation, filings, investigations, administrative proceedings, actions, causes of action, suits, other legal proceedings, judgments, assessments, damages, deficiencies, taxes, penalties, fines, obligations, responsibilities,
liabilities, payments, charges, costs and expenses (including without limitation costs and expenses of owning and operating the Assets) of any kind or character (whether or not asserted prior to Closing, and whether known or unknown, fixed or
unfixed, conditional or unconditional, based on theories of contract, tort, strict liability or otherwise, choate or 

  
 7 

	 	
inchoate, liquidated or unliquidated, secured or unsecured, accrued, absolute or contingent), including, without limitation, penalties and interest on any amount payable as a result of any of the
foregoing, any legal or other costs and expenses incurred in connection with investigating or defending any Claim, and all amounts paid in settlement of Claims. Without limiting the generality of the foregoing, the term
“Claims” specifically includes any and all Claims arising from, attributable to or incurred in connection with any (a) breach of contract, (b) loss of or damage to property, injury to or death of persons, and other
tortious injury and (c) violations of applicable laws, rules, regulations, orders or any other legal right or duty actionable at law or in equity. 

  

	 	(b)	Seller’s Indemnity. Subject to the further provisions hereof, Seller shall defend, indemnify and hold Buyer, its affiliates, and its/their directors,
officers, employees, contractors, and representatives (which additional parties, together with Buyer, are hereinafter collectively referred to as the “Buyer Parties”) harmless from and against any and all Claims arising from,
out of or in connection with, or otherwise relating to: (a) any inaccuracy of any representation or warranty of Seller set forth in this Agreement, (b) the Excluded Assets, and (c) the Retained Obligations, expressly excluding,
however, matters assumed, indemnified against and waived by Buyer pursuant to Sections 7.6, 7.7 and 7.8 below. 

  

	 	    	Seller shall not be liable to the Buyer Parties under this Section 3.3(b) with respect to any Claim unless (i) the amount of the individual Claim is in
excess of $100,000 (the “Individual Indemnification Threshold”) and (ii) the aggregate amount of all Claims under this Agreement, meeting the Individual Indemnification Threshold exceeds five percent (5%) of the
Purchase Price under this Agreement (the “Aggregate Indemnification Threshold”). If the requirements set forth above are satisfied and Seller is liable to Buyer Parties with respect to a Claim under this
Section 3.3(b), then Buyer Parties shall only be entitled to recover such amounts payable in accordance with this Agreement that are in excess of the Aggregate Indemnification Threshold. 

 

	 	    	 Notwithstanding anything herein to the contrary, the cumulative obligation of Seller to Buyer Parties under clauses (a) and (c) in the first
paragraph of this Section 3.3(b) will be limited to ten percent (10%) of the Purchase Price less the Aggregate Indemnification Threshold (the “Indemnity Amount”), which, for the avoidance of doubt, results in
an Indemnity Amount of five percent (5%) of the Purchase Price. Seller’s obligation to indemnify the Buyer Parties pursuant to clauses (a) and (c) in the first paragraph of this Section 3.3(b) will expire with respect
to any Claim for which a Buyer Party has not provided notice to Seller as provided in Section 3.3(d) on or prior to 5:00 p.m., Houston, Texas time, on the six (6) month anniversary of the Closing Date (the “Closing Period
Termination Date. Notwithstanding anything herein to the contrary for any Claim 

  
 8 

	 	
finally determined by a court of competent jurisdiction (subject to Section 11.8) to have been caused primarily by Seller’s fraud, fraudulent misrepresentation or willful
misconduct (a) the Individual Indemnification Threshold and the Aggregate Indemnification Threshold shall not apply to any such Claim, (b) the cumulative obligation of Seller to Buyer Parties for any such Claim will be limited to twenty
percent (20%) of the Purchase Price and (c) Seller’s obligation to indemnify the Buyer Parties for any such Claim will expire if a Buyer Party has not provided notice to Seller as provided in Section 3.3(d) on or prior to
5:00 p.m., Houston, Texas time, on the one (1) year anniversary of the Closing Date. The foregoing will not limit the rights of Buyer Parties to proceed against the Seller as provided herein after the Closing Period Termination Date with
respect to Claims for which a Buyer Party has provided notice to Seller as provided in Section 3.3(d) on or prior to the Closing Period Termination Date. 

 

	 	(c)	Buyer’s General Indemnification. Subject to Section 3.3(b), Buyer shall defend, protect, indemnify and hold Seller, its affiliates, and
its/their partners, members, managers, directors, officers, employees, contractors and representatives (which additional parties, together with Seller, are hereinafter collectively referred to as the “Seller Parties”)
harmless from and against any and all Claims in any way arising from, out of or in connection with, or otherwise relating to: (a) any inaccuracy of any representation or warranty of Buyer set forth in this Agreement; (b) Buyer’s
breach of, or failure to perform or satisfy, any of its covenants and obligations hereunder; or (c) the Assets that are actually purchased by Buyer pursuant to this Agreement and the Assumed Obligations, including, without limitation, the
ownership or operation thereof and performance thereunder, to the extent such Claims accrue or are attributable to periods subsequent to the Effective Time or are attributable to environmental conditions, of any kind or nature whatsoever, whether or
not such environmental conditions existed prior to the Effective Time or arose subsequent to the Effective Time. BUYER ACKNOWLEDGES ITS INDEMNITY OBLIGATIONS SET FORTH IN THIS AGREEMENT ARE OWED IRRESPECTIVE OF THE SOLE, JOINT, CONCURRENT OR
COMPARATIVE NEGLIGENCE (BUT NOT SELLER’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT), STRICT LIABILITY, LIABILITY WITHOUT FAULT, REGULATORY LIABILITY, STATUTORY LIABILITY, BREACH OF CONTRACT, BREACH OF WARRANTY OR OTHER FAULT OR RESPONSIBILITY OF
SELLER OR ANY OTHER PERSON OR PARTY. 

  

	 	(d)	 Claims Procedures. Promptly upon a party becoming aware of any Claim with respect to which it believes it is entitled to indemnification
hereunder, whether under this Section 3.3, Section 7.6, or the other provisions hereof, such party (an “Indemnified Party”) shall notify the other party (the

  
 9 

	 	
“Indemnifying Party”) in writing of the existence and nature of such Claim, the identity of any third party claimants and a description of the damages and the amount
thereof relating to such Claim (the “Claim Notice”). The Indemnified Party shall be responsible for the defense of any Claim unless the Indemnifying Party, upon reasonable notice, requests that the defense of a Claim be
tendered to the Indemnifying Party. If: 

  

	 	(i)	the defense of a Claim is so tendered and within ten (10) Business Days thereafter such tender is accepted by the Indemnifying Party; or 

 

	 	(ii)	within ten (10) Business Days after the date on which the Claim Notice has been given pursuant to this Section 3.3(d), the Indemnifying Party shall
acknowledge in writing to the Indemnified Party its obligation to provide an indemnity as provided in this Section 3.3 and assume the defense of the Claim; 

 

	 	    	 then, except as hereinafter provided, the Indemnified Party shall not, and the Indemnifying Party shall, have the right to contest, defend, litigate or
settle such Claim. The Indemnified Party shall have the right to be represented by counsel at the Indemnified Party’s expense, subject to the limitations hereof, in any such contest, defense, litigation or settlement conducted by the
Indemnifying Party. The Indemnifying Party shall lose its right to defend and settle the Claim if it shall fail to diligently contest and defend the Claim after written notice or demand by the Indemnified Party. So long as the Indemnifying Party has
not lost its right and/or obligation to contest, defend, litigate and settle as herein provided, the Indemnifying Party shall have the exclusive right to contest, defend and litigate the Claim and shall have the exclusive right, in its discretion
exercised in good faith, and upon the advice of counsel, to settle any such matter, either before or after the initiation of litigation, at such time and upon such terms as it deems fair and reasonable; provided, that at least five (5) Business
Days prior to any such settlement, written notice of its intention to settle shall be given to the Indemnified Party and the Indemnified Party shall have consented thereto, which consent shall not be unreasonably withheld, conditioned or delayed.
All expenses (including without limitation attorneys’ fees) incurred by the Indemnifying Party in connection with the foregoing shall be paid by the Indemnifying Party; provided that, if the Indemnifying Party is the Seller, such expenses shall
be paid or reimbursed to the Indemnified Party solely out of the Indemnity Amount and the Seller will have no obligation hereunder in excess of such amount. Notwithstanding the foregoing, in connection with any settlement negotiated by an
Indemnifying Party, no Indemnified Party shall be required by an Indemnifying Party to (x) enter into any settlement that does not include as an unconditional term thereof the delivery by the claimant or plaintiff to the Indemnified Party of a
full and complete release from all liability in respect of such claim or litigation, (y) enter into 

  
 10 

	 	
any settlement that attributes by its terms liability or wrongdoing to the Indemnified Party or (z) consent to the entry of any judgment that does not include as a term thereof a full
dismissal of the litigation or proceeding with prejudice. No failure by an Indemnifying Party to acknowledge in writing its indemnification obligations under this Section 3.3 shall relieve it of such obligations to the extent they exist.
If the Indemnifying Party fails to accept a tender of, or assume, the defense of a Claim pursuant to this Section 3.3(d), or if, in accordance with the foregoing, the Indemnifying Party shall lose its right to contest, defend, litigate
and settle such a Claim or if there is a legal conflict, the Indemnified Party shall have the right, without prejudice to its right of indemnification hereunder, in its discretion exercised in good faith and upon the advice of counsel, to contest,
defend and litigate such Claim, and may settle such Claim, either before or after the initiation of litigation, at such time and upon such terms as the Indemnified Party deems fair and reasonable; provided, that the Indemnified Party will not settle
such Claim without the prior written consent of the Indemnifying Party, which consent shall not be unreasonably withheld, conditioned or delayed. If, pursuant to this Section 3.3, the Indemnified Party so contests, defends, litigates or
settles a Claim for which it is entitled to indemnification hereunder as hereinabove provided, the Indemnified Party shall be reimbursed by the Indemnifying Party for the reasonable attorneys’ fees and other expenses of defending, contesting,
litigating and/or settling the Claim which are incurred from time to time, forthwith following the presentation to the Indemnifying Party of itemized bills for said attorneys’ fees and other expenses; provided that, if the Indemnifying Party is
the Seller and the matter relates to a matter subject to indemnity by Seller pursuant to clause (a) of the first paragraph of Section 3.3(b) (other than a breach of Sections 5.1(a) or 5.1(b) hereof and subject to the last
paragraph of Section3.3(b)), such expenses shall be reimbursable to the Indemnified Party solely out of the Indemnity Amount and the Seller will have no obligation hereunder in excess of such amount. 

 

	 	(e)	Subrogation. Following full indemnification as provided for hereunder, the Indemnifying Party shall be subrogated to all rights of the Indemnified Party with
respect to all parties relating to the matter for which indemnification has been made and the Indemnified Party agrees to fully cooperate with the Indemnifying Party in exercising such subrogation rights. 

 

	 	(f)	 Insured Losses; Recoveries from Third Parties. The amount of any damages for which indemnification is provided under this
Section 3.3, Section 7.6, or the other provisions hereof shall be net of any duplicative amounts recovered by the Indemnified Party under insurance policies or from unaffiliated third parties with respect to such damages. If
an Indemnified Party receives an amount under insurance coverage or from an unaffiliated third party with respect to damages at any time subsequent 

  
 11 

	 	
to any indemnification provided by an Indemnifying Party pursuant to this Section 3.3, Section 7.6, or the other provisions hereof, then such Indemnified Party shall
promptly deliver such amount (up to the amount of the indemnification payment made to such Indemnified Party regarding such matter) to the Indemnifying Party; provided, however, that such Indemnified Party shall be entitled to retain the amount of
any payments made or costs or expenses incurred in connection with obtaining such payment (including, without limitation, the amount of any increased insurance premiums as a result of such claim or as a result of obtaining such payment). The
obligation created by this Section 3.3(f), Section 7.6, or the other provisions hereof is an obligation to make repayment in the event and to the extent of a recovery from a third party and shall not delay an Indemnified
Party’s right to repayment from the Indemnifying Party under this Section 3.3, Section 7.6, or the other provisions hereof. 

  

	 	(g)	Characterization of Indemnification Payments. Buyer and Seller agree to treat any payment made under this Section 3.3, Section 7.6, or
the other provisions hereof as an adjustment to the Purchase Price. Any indemnification hereunder will be determined on an after-tax basis (taking into account any actual reductions or increases in taxes realized for any taxable period in which a
tax claim is made or any prior taxable period with respect to the damages for which the payment under this Section 3.3, Section 7.6, or the other provisions hereof is being made, or realized with respect to the payments
themselves). 

 3.4 Retained Obligations. Provided that the Closing occurs, Seller shall retain all
obligations and liabilities related to the Excluded Assets and Employee Retained Obligations indefinitely; and for a period of six (6) months from Closing, and not thereafter (the “Retained Obligation Survival Period”), Seller
shall retain (a) all obligations and liabilities of Seller for payments or improper payments relating to the Assets accruing prior to the Effective Time; (b) all obligations of Seller under the Contracts for (i) overhead charges
related to periods prior to the Effective Time, and (ii) costs and expenses incurred prior to the Effective Time for goods and services provided prior to the Effective Time; (c) all liability of Seller to third parties for personal injury
or death to the extent occurring prior to the Effective Time as a result of the operation of the Assets; provided, however, that Seller shall retain such obligations and liabilities beyond the six (6) month period to the extent, and only to the
extent, covered and paid by Seller’s insurance; (d) ad valorem, property, severance and similar taxes based upon or measured by the ownership of the Assets or production therefrom attributable to the period of time prior to the Effective
Time (as allocated to such period under Sections 4.1 and 4.2); and (e) except as disclosed in Schedule 5.1(e), all litigation existing as of the Closing Date, to the extent it relates to the period of time prior to the Effective Time
(collectively, the “Retained Obligations”). Provided, however, if (a) a third party claim is made in writing to Seller with respect to a Retained Obligation prior to the expiration of the Retained Obligation Survival
Period or (b) a third party claim is set forth on Schedule 3.4, Seller shall retain such obligation until such claim is resolved. The Term “Employee Retained Obligations” means, with respect to the persons listed on Schedule
5.1(o), (a) any obligations of Seller with respect to severance payments, vacation time, wages or salaries, health care expenses or any other applicable employment 

  
 12 

 
benefits for such persons, in each case, to the extent any such obligations accrued prior to the Effective Time, or (b) any severance payments related to the termination of such
person’s employment relationship by Seller resulting from or in connection with the transfer of the Assets contemplated by this Agreement, regardless of whether the right to claim such severance payment accrues after the Effective Time. For the
avoidance of doubt, Buyer shall be entitled to offer employment to any of the employees listed on Schedule 5.1(o), but Buyer shall have no obligation to do so. 
 3.5 Assumed Obligations. Provided that the Closing occurs and subject to Seller’s indemnity obligations under this Agreement, Buyer hereby assumes all duties, obligations and liabilities of
every kind and character with respect to the Assets or the ownership or operation thereof (other than the Retained Obligations), whether attributable to periods before or after the Effective Time, including, without limitation, those arising out of
(a) the terms of the Contracts or instruments relating to the Fee Property, Rights-of-Way, Related Facilities, Permits, or other Assets, (b) suspense accounts, to the extent transferred to Buyer, (c) ad valorem, property, severance
and other similar taxes or assessments based upon or measured by the ownership of the Assets or the production therefrom attributable to any period on or after the Effective Time (as allocated to such period under Sections 4.1 and 4.2), (d) the
condition of the Assets, regardless of whether such condition arose before or after the Effective Time, (e) obligations to abandon, re-abandon or remove flowlines, pipelines, gathering lines or other facilities, equipment or other personal
property or fixtures comprising part of the Assets, (f) obligations to restore the surface of and under the Assets and obligations to remediate or bring the Assets into compliance with applicable Environmental Laws (including conducting any
remediation activities that may be required on or otherwise in connection with activities on the Assets) regardless of whether such obligations or conditions or events giving rise to such obligations arose, occurred or accrued before or after the
Effective Time, and (g) any other duty, obligation, event, condition or liability assumed by Buyer under the terms of this Agreement (collectively, the “Assumed Obligations”). If no claim is made upon Seller with respect
to a Retained Obligation prior to the expiration of the Retained Obligation Survival Period such Retained Obligation shall then become an Assumed Obligation. 
  

	4.	Taxes and Payables 

 4.1 Payment of Taxes. All use, severance, ad valorem and real and personal property taxes and charges upon any of the Assets shall be prorated as of the Effective Time by allocating to the period
before the Effective Time the amount of such taxes for the entire taxable period multiplied by a fraction the numerator of which is the number of calendar days in the taxable period ending immediately prior to the Effective Time, and the denominator
of which is the number of calendar days in the entire taxable period, and allocating to the period beginning on and ending after the Effective Time the remainder of such taxes. Buyer shall remit to the appropriate taxing authority all such taxes
attributable to the calendar year in which the Closing Date occurs to the extent due and payable after Closing, and at Closing, the Purchase Price will be decreased by Seller’s pro rata share of such items for the period prior to the Effective
Time. If the actual amount of such items is not known as of the Closing Date and the final reconciliation of the Final Settlement Statement under Section 10.4, then Seller’s pro rata share of such items will be determined by using
the rates and millages for the most recent year available and the assessed values for the calendar year immediately preceding the calendar year 

  
 13 

 
in which the Closing Date occurs, with appropriate adjustments for any known changes thereto. In no event shall the Final Settlement Statement be delayed pending determination of the proration of
taxes pursuant to this Section 4.1. 
 4.2 Taxes. Seller shall be responsible for all taxes applicable to
Hydrocarbons attributable to its interest in the Assets prior to the Effective Time and Buyer shall be responsible for all such taxes attributable to the Assets from and after the Effective Time. 

4.3 Occasional Sale of Assets. Both parties believe that the sale of the Assets is an occasional sale exempt from sales or use
taxes. If any such taxes are assessed against the transaction, both parties will cooperate and use their commercially reasonable efforts (at no cost to Seller) to attempt to eliminate or reduce such taxes. If unsuccessful, Buyer shall be responsible
for any such taxes. In that event, Buyer shall pay any such state and local sales or use taxes, and shall remit the entire amount of such taxes to the appropriate taxing authority in accordance with applicable law. Any reasonable legal expenses
incurred by Seller at Buyer’s request to reduce or avoid any of the aforementioned taxes attributable to Buyer shall be paid or reimbursed by Buyer. 
  

	5.	Representations, Warranties, Acknowledgments, Disclaimers and Waivers 

5.1 Seller’s Representations and Warranties. Each Seller represents and warrants to Buyer that, as of the date hereof and as
of Closing, the following statements are accurate. Each Seller makes such representations and warranties solely with respect to itself and its undivided ownership interest in the Assets and not jointly or jointly and severally with any other Seller.
For purposes hereof, the term “Knowledge of Seller” (and any similar expression, including, the expression “Seller’s Knowledge”) shall refer to matters actually known by Mark Townsend, Travis Melster (or their
respective successors) or any officer of any of the entities comprising Seller. 
  

	 	(a)	Formation. 

  

	 	(i)	Quantum Resources A1, LP is a limited partnership duly organized and validly existing, in good standing, under the laws of the State of Delaware and it has the power
and authority to own the Assets and to carry on its business as now conducted and to enter into and to carry out the terms of this Agreement. 

  

	 	(ii)	QAB Carried WI, LP is a limited partnership duly organized and validly existing, in good standing, under the laws of the State of Delaware and it has the power and
authority to own the Assets and to carry on its business as now conducted and to enter into and to carry out the terms of this Agreement. 

  

	 	(iii)	QAC Carried WI, LP is a limited partnership duly organized and validly existing, in good standing, under the laws of the State of Delaware and it has the power and
authority to own the Assets and to carry on its business as now conducted and to enter into and to carry out the terms of this Agreement. 

  
 14 

	 	(iv)	Black Diamond Resources, LLC is a limited liability company duly organized and validly existing, in good standing, under the laws of the State of Delaware and it has
the power and authority to own the Assets and to carry on its business as now conducted and to enter into and to carry out the terms of this Agreement. 

  

	 	(b)	Authorization/Consents/No Contravention. 

  

	 	(i)	The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all necessary limited liability
company and/or partnership action on behalf of Seller and Seller is not subject to any charter, by-law, privilege, Lien, encumbrance, agreement, instrument, order, or decree of any court or Governmental Authority (other than any governmental
approval required) which would prevent consummation of the transactions contemplated by this Agreement. 

  

	 	(ii)	To the Knowledge of Seller, no consent, approval, license, permit, order or authorization of, or registration, declaration or filing with, any Government Authority is
required to be obtained or made by or with respect to Seller in connection with the execution, delivery and performance of this Agreement and any document or instrument executed by Seller in connection with this Agreement, other than those set forth
on Schedule 5.1(b). 

  

	 	(iii)	The execution, delivery and performance by Seller of this Agreement and any document or instrument executed by Seller in connection with this Agreement, and the
consummation of the transactions contemplated hereby and thereby, do not conflict with, or result in any violation of or default (with or without notice or lapse of time, or both) under, or give rise to a right of termination, cancellation or
acceleration of any obligation or to loss of a material benefit under any provision of (i) the organizational documents of Seller, (ii) any Contract (other than those listed on Schedule 5.1(i)) or (iii) to the Knowledge of Seller, any
judgment, order or decree or statute, applicable law, ordinance, rule or regulation applicable to Seller or the Assets. 

  

	 	(c)	No Brokers. Seller is not a party to any contract or agreement for the payment of any broker’s or finder’s fee in connection with the origin,
negotiation, execution or performance of this Agreement for which Buyer will have any liability whatsoever. 

  

	 	(d)	Bankruptcy. There are no bankruptcy, reorganization or arrangement proceedings pending, being contemplated by or, to the Knowledge of Seller, threatened against
Seller. 

  
 15 

	 	(e)	Suits and Claims. Except as set forth in Schedule 5.1(e), there is no suit or action by any person, entity or Governmental Authority pending in any legal,
administrative or arbitration proceeding or, to Seller’s Knowledge, threatened against Seller or the Assets that could reasonably be expected to materially affect Seller’s ability to consummate the transactions contemplated herein or title
to, use of or the value of any of the Assets. 

  

	 	(f)	Taxes. 

  

	 	(i)	All use, severance, ad valorem, real and personal property and similar taxes and assessments based on or measured by the ownership of the Assets or the receipt of
proceeds therefrom, that have become due and payable have been timely paid; 

  

	 	(ii)	there are no liens for taxes other than Permitted Encumbrances disclosed on Schedule 6.3(b); 

 

	 	(iii)	Seller has no unpaid liabilities for taxes relating to the Assets, except as identified on Schedule 5.1(f)(iii); and 

 

	 	(iv)	the relationship of the Seller and the other owners of the Plant is not classified as a partnership for federal income tax purposes. 

 

	 	(g)	Compliance with Laws. 

  

	 	(i)	Except as set forth in Schedule 5.1(g), to the Knowledge of Seller, the Assets are in material compliance with all laws, rules, regulations and orders applicable
to the Assets (other than Environmental Laws, which are separately addressed below); and 

  

	 	(ii)	Except as set forth in Schedule 5.1(g), Seller has not received any written notice from any Governmental Authority arising from its ownership or operation of the
Assets and relating to the violation of or noncompliance with any applicable laws (including, without limitation, any Environmental Laws). 

  

	 	(h)	Take-or-Pay Arrangements. Seller has not received any prepayments or buydowns, or entered into any take-or-pay or forward sale arrangements other than those set
forth in Schedule 5.1(h). Buyer will not be obligated after the Effective Time to make deliveries of Hydrocarbons under any Contract executed by Seller without receiving full payment therefor. 

 

	 	(i)	Preferential Rights and Required Consents. 

  

	 	(i)	There are no rights or agreements that may permit any person to purchase or acquire any of the material Assets arising in connection with the transactions contemplated
hereby (“Preferential Rights”). 

  
 16 

	 	(ii)	Schedule 5.1(i) contains a list of all required consents, approvals or authorizations of, or notifications to, any person (including any consents, approvals or
authorizations that, in each case, are, to the Knowledge of Seller, customarily obtained following Closing) arising in connection with the transactions contemplated hereby (the “Consents”). In the event of Seller’s
breach of this representation, Buyer may elect to treat the affected Asset as a Title Defect and exclude the affected Asset from the Assets delivered at Closing. Buyer may, in its sole discretion, make such election. 

 

	 	(j)	Contracts. Schedule 1.1(a)(v) sets forth a list of all Contracts material to the ownership and operation of the Assets. Each such Contract is in full
force and effect according to the terms thereof and to the Knowledge of Seller, no event has occurred that with notice or lapse of time, or both, would constitute a breach or default or, or permit termination or modification in any manner, under
each such Contract and to the Knowledge of Seller, each such Contract will continue to remain in full force and effect upon the consummation of the transactions contemplated by this Agreement. The rights of Seller under each such Contract are free
and clear of all Liens other than Permitted Encumbrances (as used in this Agreement, “Lien” shall mean all pledges, mortgages, charges, security interests, options, rights of first refusal or first offer, preemptive rights or any
other encumbrances or liens of any kind in respect of any of the Assets). Seller has not received a written notice of material default with respect to any Contracts which remains uncured. 

 

	 	(k)	Leases. Each material lease agreement for real or personal property in connection with the Plant and other Assets is set forth on Schedule 1.1(a)(ii). To
the Knowledge of Seller, each such lease agreement creates good and valid leasehold estate in the properties leased thereunder and is in full force and effect. The leasehold rights of Seller under each such lease are free and clear of all Liens,
other than Permitted Encumbrances. There are no leases or other rights granted by Seller to third parties affecting any part of the Fee Property or the lands subject to the Rights-of Way. 

 

	 	(l)	Permits. Other than as set forth on Schedule 1.1(a)(iv), to Seller’s Knowledge there are no other permits, certifications, licenses, approvals,
consents or other authorizations of any Governmental Authority required in connection with the use, ownership and operation of the Plant or other Assets. To Seller’s Knowledge with respect to each Permit: 

 

	 	(i)	Each Permit is valid, in full force and effect and may be transferred or assigned without any modification or termination of its terms; 

  
 17 

	 	(ii)	no hearing, investigation, charge, complaint or claim is pending or, to the Knowledge of Seller, is threatened, that challenges the legality, validity or enforceability
of such Permit; 

  

	 	(iii)	on or prior to the date hereof Seller has delivered true, accurate and complete copies of all such Permits; and 

 

	 	(iv)	Seller is in material compliance with all Permits, including the Plant’s continued compliance with its Prevention of Significant Deterioration grandfathered
status. 

  

	 	(m)	All Material Assets. All material Assets, whether tangible or intangible, owned, leased or otherwise held by the Seller in connection with the Plant or Related
Facilities (but excluding Excluded Assets), are described in the Schedules and Exhibits to this Agreement. 

  

	 	(n)	Undisclosed Liabilities. Other than as set forth in Schedule 5.1(n) or in the other Schedules to this Agreement, there are no obligations or liabilities
that could give rise to a payment of money with respect to the Plant or the Assets that would be required under GAAP to be disclosed on any of Seller’s financial statements, in excess of $100,000. The term “GAAP” means
generally accepted accounting principles in the U.S. in effect from time to time including, where appropriate, generally accepted auditing standards, including the pronouncements and interpretations of appropriate accountancy administrative bodies
(including the Financial Accounting Standards Board and any predecessor and successor thereto), applied on a consistent basis both as to classification of item and amounts. 

 

	 	(o)	Employees and Employee Benefit Plans. 

  

	 	(i)	Schedule 5.1(o) sets forth a list of all employees of Seller, together with such employee’s job title, annual compensation and benefits.

  

	 	(ii)	To the Knowledge of Seller, Seller has no obligation to pay deferred compensation to any service provider subject to Internal Revenue Code Section 409A.

  

	 	(iii)	Seller does not maintain and has no obligation to contribute to any employee benefit plan within the meaning of the Employee Retirement Income Security Act of 1974
(“ERISA”). 

  

	 	(iv)	Neither Seller nor any Seller ERISA Affiliate has ever sponsored or maintained or had any liability with respect to any employee benefit plan subject to ERISA
Section 302 or Internal Revenue Code Section 412 or Title IV of ERISA (including any multiemployer plan within the meaning of ERISA Section 3(37)). “ERISA Affiliate” means any person that, together with Seller, would be or
was at any time treated as a single employer under Internal Revenue Code Section 414 or Section 4001 of ERISA. 

  
 18 

	 	(v)	Neither Seller nor any Seller ERISA Affiliate has any obligation to provide any employee or former employee with post-retirement medical, life insurance or other
welfare-type benefits (whether or not insured), other than continuation coverage mandated under Internal Revenue Code Section 4980B. 

  

	 	(p)	Collective Bargaining Agreements. Seller has no obligations under any collective bargaining or other agreement with any labor union that would apply to the Plant
or the Assets. 

  

	 	(q)	Non-Foreign Status. Seller is not a “foreign person” as such term is used in Section 1445 of the Internal Revenue Code. 

 

	 	(r)	Bonding. To the Knowledge of Seller, Seller is up to date in respect of and in compliance with all of the bonding requirements with respect to the Assets, in all
material respects. Other than those security assurances set forth on Schedule 5.1(s) hereto, there are no other bonds, guaranties, letters of credit, or other forms of financial assurances supporting the Assets that Seller or any of its
affiliates possesses or has delivered to other persons or entities as security for performance of certain obligations to Government Authorities or any other persons or entities. 

 

	 	(s)	Gathering and Processing Agreements. The gathering and processing agreements listed on Schedule 1.1(a)(v) represent all gathering and processing agreements
related to the Plant or other Assets. 

  

	 	(t)	Seller’s Insurance. 

  

	 	(i)	Schedule 1.2(d) accurately describes the terms of Seller’s current insurance policies, including applicable deductibles, policy limits, insured perils and any
applicable self-insurance policies of Seller; and 

  

	 	(ii)	such policies are in full force and effect (including the period from the Effective Date through the Closing Date). 

 

	 	(u)	Settlement Statements. To the Knowledge of Seller, the Plant settlement statements and accounting of the Plant’s direct operating expenses that have been
provided by Seller to Buyer prior to the date hereof are true and complete and fairly and accurately represent the revenues, expenses and operations of the Plant in all material respects. 

5.2 Buyer’s Representations and Warranties. Buyer represents and warrants to Seller that, as of the date hereof and as of
Closing, the following statements are accurate: 

  
 19 

	 	(a)	Formation. Buyer is a limited liability company duly organized and validly existing and in good standing under the laws of the State of Delaware and is or will
be prior to Closing, duly qualified to carry on its business in each of the states in which it is required to be qualified and has the corporate power and authority to own its property and to carry on its business as now conducted and to enter into
and to carry out the terms of this Agreement and the transactions contemplated by this Agreement. 

  

	 	(b)	Authorization. The execution and delivery of this Agreement and the consummation of the transactions contemplated hereby have been duly authorized by all
necessary corporate action on behalf of Buyer and Buyer is not subject to any charter, by-law, privilege, lien, encumbrance, agreement, instrument, order or decree of any court or Governmental Authority which would prevent consummation of the
transactions contemplated by this Agreement. 

  

	 	(c)	No Brokers. Buyer is not a party to any contract or agreement for the payment of any broker’s or finder’s fee in connection with the origin,
negotiation, execution or performance of this Agreement for which Seller will have any liability whatsoever. 

  

	 	(d)	Bankruptcy. There are no bankruptcy, reorganization or arrangement proceedings pending, being contemplated by or to the actual and current knowledge of Buyer,
threatened against Buyer or any affiliate of Buyer. 

  

	 	(e)	Suits and Claims. There is no suit or action by any person, entity or Governmental Authority pending in any legal, administrative or arbitration proceeding or,
to Buyer’s knowledge, threatened against Buyer or its affiliates that will materially affect Buyer’s ability to consummate the transactions contemplated herein. 

 

	 	(f)	Independent Evaluation. Buyer acknowledges that it is an experienced and knowledgeable investor in the oil and gas business, and the business of purchasing,
owning, developing and operating assets such as the Assets. In making the decision to enter into this Agreement and to consummate the transactions contemplated hereby, Buyer has relied solely upon (a) its own independent due diligence
investigation of the Assets and (b) the express representations and warranties made by Seller in this Agreement, and the agreements, certificates and other documents to be delivered by Seller at or prior to the Closing, and has been advised by
and has relied solely on its own expertise and its own legal, tax, operations, environmental, engineering and other professional counsel and advisors concerning this transaction, the Assets, the Hydrocarbons to be processed by the Plant, and the
value thereof. 

  

	 	(g)	 Qualification. As of the Closing, Buyer shall be, and thereafter shall continue to be, qualified with all applicable Governmental Authorities to

  
 20 

	 	
own and, if applicable, operate the Assets. Without limiting the foregoing, Buyer is, as of the Closing, and thereafter will continue to be, qualified to own and operate any Indian, federal or
state oil, gas and mineral leases that constitute part of the Assets, including, without limitation, meeting all bonding requirements. Consummating the transaction contemplated by this Agreement will not cause Buyer to be disqualified or to exceed
any acreage limitation imposed by law, statute or regulation. 

  

	 	(h)	Securities Laws. Buyer is acquiring the Assets for its own account and not with a view to, or for offer of resale in connection with, a distribution thereof,
within the meaning of the Securities Act of 1933, 15 U.S.C. § 77a et seq., and any other rules, regulations, and laws pertaining to the distribution of securities. 

 

	 	(i)	Funds. Buyer has arranged to have available by the Closing Date sufficient funds to enable Buyer to pay in full the Purchase Price as herein provided and to
otherwise perform its duties and obligations under this Agreement. The consummation of the transaction contemplated by this Agreement is not subject to any financing contingency. 

5.3 Representations and Warranties Exclusive. All representations and warranties contained in this Agreement, the Assignment and
the agreements, certificates and other documents to be delivered by Seller at or prior to the Closing, are exclusive, and are given in lieu of all other representations and warranties, express, implied or statutory. 

5.4 Disclaimers, Waivers and Acknowledgments. 
  

	 	(a)	 Disclaimer. EXCEPT AS EXPRESSLY PROVIDED IN THIS AGREEMENT, THE ASSIGNMENT, AND THE AGREEMENTS, CERTIFICATES AND OTHER DOCUMENTS TO BE DELIVERED
BY SELLER AT OR PRIOR TO THE CLOSING, THE ASSETS ARE TO BE SOLD AND ACCEPTED BY BUYER AT CLOSING “AS IS, WHERE IS AND WITH ALL FAULTS.” OTHER THAN THE REPRESENTATIONS AND WARRANTIES OF SELLER IN THIS AGREEMENT, SELLER MAKES NO WARRANTY OR
REPRESENTATION OF ANY KIND OR NATURE, EXPRESS OR IMPLIED IN FACT OR BY LAW, WITH RESPECT TO THE ORIGIN, QUANTITY, QUALITY, CONDITION OR SAFETY OF THE ASSETS, OR ANY EQUIPMENT OR OTHER PERSONAL PROPERTY, TITLE TO PERSONAL OR MIXED PROPERTY, TITLE TO
REAL PROPERTY, COMPLIANCE WITH GOVERNMENTAL REGULATIONS OR LAWS, MERCHANTABILITY, FITNESS FOR ANY PARTICULAR PURPOSES, CONDITION, QUANTITY, VALUE OR EXISTENCE OF RESERVES OF GAS OR OTHER MINERALS TO BE PROCESSED BY THE PLANT OR OTHERWISE. EXCEPT AS
OTHERWISE PROVIDED IN THIS AGREEMENT, ALL PERSONAL OR MIXED PROPERTY, DATA, RECORDS, MACHINERY, 

  
 21 

	 	
EQUIPMENT AND FACILITIES COMPRISING THE ASSETS OR SITUATED THEREON OR APPURTENANT THERETO, ARE TO BE CONVEYED BY SELLER AND ACCEPTED BY BUYER PRECISELY AND ONLY “AS IS, WHERE IS,” AND
WITHOUT RECOURSE AGAINST SELLER. 

  

	 	(b)	Acknowledgment. Buyer acknowledges that the Assets have been used for processing operations, transportation or gathering operations, and possibly the storage and
disposal of waste materials incidental to or occurring in connection with such operations, and that physical changes in the land may have occurred as a result of such uses and that Buyer has entered into this Agreement on the basis of Buyer’s
own investigation or right to investigate, the physical condition of the Assets, including, without limitation, equipment, surface and subsurface conditions. Except as set forth in this Agreement, the Assignment, and the agreements, certificates and
other documents to be delivered by Seller at or prior to the Closing, Buyer is acquiring the Assets precisely and only in an “as is and where is” condition and assumes the risk that adverse physical conditions which may or may not have
been revealed by Buyer’s investigation, are located thereon or therein, and whether known or unknown to Buyer as of Closing. Subject to Section 3.3(b), Buyer hereby agrees to assume full responsibility for compliance with all
obligations attributable in any way to the Assets, and all laws, orders, rules and regulations concerning all of such conditions, known or unknown. 

  

	6.	Title Matters 

 6.1
Examination Period. Following the execution date of this Agreement until June 14, 2012 (the “Examination Period”), Seller shall permit Buyer and its representatives to examine, during normal business hours and
such other reasonable times and in Seller’s offices or other authorized location, all files, records, information and data relating to the Assets (but expressly excluding information reserved to Seller as part of the Excluded Assets),
including, without limitation, all title files, operating and accounting records and all Contracts and other agreements pertaining to the Assets, insofar as same may now be in existence and in the possession or control of Seller, subject to such
restrictions upon disclosure as may exist under confidentiality or other agreements binding upon Seller or such data; provided, however, that Seller shall, at Buyer’s request and at no cost or expense to Seller, request waivers of such
confidentiality restrictions. Seller shall not be required to perform any additional title work. No existing abstracts or title opinions will be updated or made current by Seller. Should Buyer prepare or update abstracts or title opinions, a copy of
such will be made available to Seller, without cost and without warranty of any kind, for Seller’s independent examination at least seven (7) Business Days prior to Closing or upon the delivery of a notice of alleged Title Defect,
whichever is the earlier. Buyer specifically agrees that any conclusions made from any examination done or caused to be done by Buyer from Seller furnished information regarding title have resulted and shall result from its own independent review,
skill, knowledge and judgment only. 

  
 22 

 6.2 Title Defects. The term “Title Defect” means (a) any
privilege, lien, burden, encumbrance, irregularity or other defect, excluding Permitted Encumbrances, that causes Seller not to have Marketable Title to any Asset and (b) any default by Seller under a Contract that would (i) have a
material adverse effect on the operation or value of any Asset, (ii) prevent Seller from receiving the proceeds attributable to Seller’s interest therein or (iii) result in the loss, diminution or cancellation of Seller’s
interest therein. The term “Marketable Title” means such ownership by Seller in the Assets that, subject to and except for the Permitted Encumbrances: 

 

	 	(a)	entitles Seller to receive revenue in an amount not less than Seller’s Plant Interest or to bear costs and expenses relating to the ownership, operation and
maintenance of the Plant in an amount not greater than Seller’s Plant Interest unless there is a corresponding increase in the revenues received pursuant to Seller’s Plant Interest; 

 

	 	(b)	entitles Seller to an ownership interest in the Fee Property, Related Facilities, Contracts and other Assets which is at least proportionate to Seller’s Plant
Interest; and 

  

	 	(c)	is free and clear of all privileges, liens, burdens and encumbrances on title. 

 6.3 Permitted Encumbrances. The term “Permitted Encumbrances” means: 
  

	 	(a)	the terms, conditions, restrictions, exceptions, reservations, limitations and other matters contained in the Contracts and other agreements, instruments and documents
identified in, and all other matters described or referred to in, any of the Exhibits and Schedules hereto, or that otherwise create or reserve to Seller its interest in the Assets or any of them, to the extent same do not reduce Seller’s Plant
Interest; 

  

	 	(b)	privileges, liens for taxes or assessments not yet due or delinquent or, if delinquent, are identified on Schedule 6.3(b) and are being contested in good faith
in the normal course of business; 

  

	 	(c)	Preferential Rights to purchase and required non-governmental third party consents to assignments and similar agreements identified in Schedule 5.1(i) with
respect to which prior to Closing (i) waivers or consents are obtained from the appropriate parties or (ii) the appropriate time period for asserting such rights has expired without an exercise of such rights; 

 

	 	(d)	all rights to consent by, required notices to, filings with, or other actions by Governmental Authorities in connection with the sale or conveyance of the Assets or
interests therein, if the same are customarily obtained subsequent to such sale or conveyance; 

  
 23 

	 	(e)	Title Defects or other deficiencies or irregularities (other than breaches of Seller’s special warranty of title) waived by Buyer in writing or not asserted on or
before the expiration of the Examination Period; 

  

	 	(f)	easements, rights-of way, servitudes, permits, surface leases, defects, irregularities, and other burdens, to the extent they do not reduce Seller’s interest in
revenue below Seller’s Plant Interest or materially interfere with the value of the Assets or the operation, occupying or use of the Assets as currently conducted by Seller; 

 

	 	(g)	all laws, rules, regulations and orders of Governmental Authority having jurisdiction over the Assets; 

 

	 	(h)	vendors’, carriers’, warehousemen’s, repairmen’s, mechanics’, workmen’s, materialmen’s, construction or other like privileges or
liens which have expired as a matter of law or arising by operation of law in the ordinary course of business or incident to the construction or improvement of any property in respect of obligations which are not yet due; 

 

	 	(i)	any other privilege, lien, claim, charge, encumbrance, contract, agreement, instrument, obligation, defect, or irregularity affecting the Assets that is disclosed on
Schedule 6.4(i); and 

  

	 	(j)	any privilege, lien or encumbrance to be released at or prior to Closing. 

 6.4 Notice of Title Defects; Title Defect Valuation. 
  

	 	(a)	If Buyer discovers any Title Defect affecting an Asset, Buyer shall promptly notify Seller of such alleged Title Defect. To be effective, such notice (a
“Title Defect Notice”) must (i) be in writing, (ii) be received prior to the expiration of the Examination Period, (iii) describe the Title Defect in reasonable detail (including any alleged variance in
Seller’s Plant Interest), (iv) identify the specific Asset or Assets affected by such Title Defect and (v) include the Title Defect Value, as reasonably determined by Buyer acting in good faith. Upon receipt of a timely Title Defect
Notice, upon request by Seller, Buyer shall promptly deliver to Seller copies of all data, records, title reports, opinions and other information in Buyer’s possession or control bearing upon or relating to the alleged Title Defect and its
determination of the Title Defect Value. 

  

	 	(b)	The value attributable to each Title Defect (the “Title Defect Value”) shall be determined based upon the criteria set forth below:

  

	 	(i)	If the Title Defect is a privilege or lien upon an Asset, the Title Defect Value is the amount necessary to be paid to remove fully the privilege or lien from the
affected Asset. 

  
 24 

	 	(ii)	If the Title Defect asserted is that the Seller’s ownership interest in an Asset is less than Seller’s Plant Interest, then the Title Defect Value is the
product of the Allocated Value attributed to such Asset, multiplied by a fraction, the numerator of which is the difference between Seller’s Plant Interest and the actual ownership interest in such Asset, and the denominator of which is
Seller’s Plant Interest. 

  

	 	(iii)	If the Title Defect represents an obligation, encumbrance, burden or charge upon the Assets and for which the economic detriment to Buyer is unliquidated, the amount of
the Title Defect Value shall be determined by taking into account the Allocated Value of the Assets, the legal effect of the Title Defect, and the potential discounted economic effect of the Title Defect over the life of the Assets.

  

	 	(iv)	If a Title Defect does not adversely affect an Asset throughout the entire productive life of such Asset, such fact shall be taken into account in determining the Title
Defect Value. 

  

	 	(v)	The Title Defect Value of a Title Defect shall be determined without duplication of any costs or losses included in another Title Defect Value hereunder.

  

	 	(vi)	Notwithstanding anything herein to the contrary, in no event shall a Title Defect Value exceed the Allocated Value of the Assets. 

 

	 	(vii)	Such other factors as are reasonably necessary to make a proper evaluation. 

 6.5 Remedies for Title Defects. Subject to Section 6.7, the following shall be Buyer’s sole and exclusive remedy with respect to Title Defects: 

 

	 	(a)	Upon the receipt of a Title Defect Notice from Buyer asserting an alleged Title Defect, Seller shall have the option, but not the obligation, to attempt to cure such
Title Defect at Seller’s sole cost at any time prior to the Closing. 

  

	 	(b)	 With respect to each alleged Title Defect that is not reasonably cured on or before the Closing, if this Agreement has not been terminated pursuant to
the terms hereof, Seller shall have the option to (i) elect to continue to Closing and include or exclude the affected Asset(s) from the Transaction and reduce the Purchase Price by the applicable Title Defect Value if the Asset is included,
and by the Allocated Value of such Asset, if the Asset is excluded; or (ii) elect in writing prior to Closing to attempt to cure such title Defect within one hundred fifty (150) days of Closing. If Seller makes such election to cure the
alleged Title Defect after Closing, an amount equal to the Title Defect Value agreed upon in writing by Buyer 

  
 25 

	 	
and Seller acting reasonably shall be paid by Buyer at Closing out of the Adjusted Purchase Price to a mutually agreeable escrow agent (the “Escrow Agent”) for deposit
into an interest bearing escrow account (the “Escrow Account”) to be governed by a mutually agreeable escrow agreement (the “Escrow Agreement”) that will be executed by Buyer, Seller and the Escrow
Agent. Seller shall, subject to the further provisions hereof, have up to one hundred fifty (150) days following the Closing Date to attempt to cure such Title Defect at Seller’s sole cost; provided, that, if the parties have not agreed
upon the validity of an alleged Title Defect, or the Title Defect Value attributable thereto, the amount so deposited in the Escrow Account for such alleged Title Defect shall be that reasonably determined by Seller acting in good faith. If Seller
reasonably cures the Title Defect within such one hundred fifty-day period, Seller will be entitled to be distributed from the Escrow Account the amount equal to the amount so deposited into the Escrow Account as the Title Defect Value, together
with any earnings on such amount. If Seller does not reasonably cure the Title Defect within the allotted period, Buyer will be entitled to be distributed from the Escrow Account the amount equal to the Title Defect Value, as finally determined,
together with any earnings on such amount, and the Purchase Price hereunder will be deemed to be reduced by the amount of the Title Defect Value. 

  

	 	(c)	If Buyer and Seller have not agreed (i) on or before Closing upon the validity of an asserted Title Defect, or have not agreed on the Title Defect Value
attributable thereto, or (ii) upon whether a Title Defect has been reasonably cured, then either party shall have the right to elect by written notice, delivered before Closing, to have the validity of such Title Defect, such Title Defect Value
or the sufficiency of Seller’s cure determined by an Independent Expert pursuant to Section 8. In no event shall any disbursement from the Escrow Account be made to Seller or Buyer with respect to a Title Defect that is the subject
of a dispute pending before the Independent Expert until such dispute is finally resolved as provided in Section 8 hereof, which shall include, without limitation, an award of the escrowed funds attributable to such Title Defect. To the
extent the Independent Expert is determining the validity of a Title Defect, Seller shall have one hundred fifty (150) days from the date the Independent Expert determines that a Title Defect exists to cure such Title Defect.

  

	 	(d)	Any Title Defect cured by Seller or for which Buyer receives a Purchase Price adjustment or payment pursuant to this Section 6.5, shall constitute a
Permitted Encumbrance hereunder and under the Assignment and other Conveyancing documents. 

 6.6 Title
Benefits. 
  

	 	(a)	 Subject to Section 6.7, Seller shall be entitled to an upward adjustment to the Purchase Price with respect to all Title Benefits of which
Seller 

  
 26 

	 	
provides Buyer notice (a “Title Benefit Notice”) in writing prior to the expiration of the Examination Period in an amount (the “Title Benefit
Value”) mutually agreed upon by the parties determined in accordance with the criteria set forth in Section 6.4(b). A party identifying a Title Benefit affecting the Assets shall promptly deliver such a Title Benefit Notice to the
other party in the same form and including the same information as specified in Section 6.4(a) for a Title Defect Notice. The term “Title Benefit” shall mean Seller’s ownership interest in an Asset, or the revenue
Seller receives from its ownership interest in an Asset, is greater than Seller’s Plant Interest. 

  

	 	(b)	If, with respect to an asserted Title Benefit, the parties have not agreed on the validity of the Title Benefit or the Title Benefit Value attributable thereto on or
before Closing, then either party shall have the right to elect by written notice to the other party to have the validity of the Title Benefit and/or the Title Benefit Value determined by an Independent Expert pursuant to Section 8. If
the validity of the Title Benefit and/or the Title Benefit Value is not determined pursuant to this Agreement by the Closing, the Title Benefit Value determined by Seller, acting reasonably and in good faith, shall be offset by the aggregate Title
Defect Value, and such amount shall be deposited in the Escrow Account at Closing. Upon the final determination of the validity of the Title Benefit and the Title Benefit Value, the Escrow Agent shall distribute the amount so deposited to Seller or
Buyer, as applicable, in accordance with this Agreement. In no event shall any disbursement from the Escrow Account be made to Seller or Buyer with respect to a Title Benefit that is the subject of a dispute pending before the Independent Expert
until such dispute is finally resolved as provided in Section 8 hereof, which shall include, without limitation, an award of the escrowed funds attributable to such Title Benefit. 

6.7 Limitation of Remedies for Title Defects; Title Benefits. Notwithstanding anything to the contrary contained in this
Agreement, (a) if the Title Defect Value for a given Title Defect, or the Title Benefit Value of a given Title Benefit, does not exceed $100,000, then no claim or adjustment to the Purchase Price shall be made for such Title Defect or Title
Benefit; (b) if the aggregate net value of all uncured Title Defects and Environmental Defects (each exceeding the $100,000 threshold and net of the Aggregate Title Benefit Value) not waived by Buyer plus uncured Casualty Losses does not
exceed five percent (5%) of the Purchase Price under this Agreement (the “Aggregate Defect Threshold”), then no adjustment of the Purchase Price shall be made therefor, (c) if the aggregate net value of all uncured
Title Defects and Environmental Defects (each exceeding the $100,000 threshold and net of the Aggregate Title Benefit Value) not waived by Buyer plus uncured Casualty Losses exceeds the Aggregate Defect Threshold, then the Purchase Price
shall only be adjusted by the amount of such excess, and (d) if the aggregate net value of all Title Benefits (each exceeding $100,000) minus the aggregate net value of all uncured Title Defects and Environmental Defects (each exceeding the
$100,000 threshold) plus uncured Casualty Losses exceeds the Aggregate Defect Threshold, then the Purchase Price shall only be adjusted by the amount of such excess. 

  
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	7.	Environmental Matters 

  

	 	7.1	Environmental Review. 

  

	 	(a)	Buyer shall have the right to conduct an environmental review of the Assets prior to the expiration of the Examination Period (“Buyer’s Environmental
Review”). Seller shall provide Buyer such access as it may reasonably request to the Assets (if operated by Seller) and the environmental data in Seller’s files for the Assets. With respect to Assets not operated by Seller, Seller
agrees, at no cost or expense to Seller, to request that the operator of such Assets grant Buyer such access. Seller makes no representations or warranties whatsoever as to the accuracy, completeness or reliability of any such environmental
information, and Buyer relies and depends on and uses any and all such environmental information, review or inspection exclusively and entirely at its own risk and without any recourse to Seller whatsoever. 

 

	 	(b)	The cost and expense of Buyer’s Environmental Review shall be borne solely by Buyer. The scope of work comprising Buyer’s Environmental Review conducted at
the Plant shall not include any intrusive test or procedure without the prior written consent of Seller, such consent not to be unreasonably withheld, conditioned or delayed. Buyer shall (i) consult with Seller before conducting any work
comprising such Buyer’s Environmental Review, (ii) perform all such work in a safe and workmanlike manner and so as to not unreasonably interfere with operations of the Assets and (iii) comply with all applicable laws, rules, and
regulations of applicable Governmental Authority. Buyer shall be responsible for obtaining any third party consents that are required in order to perform any work comprising Buyer’s Environmental Review. Buyer shall consult with Seller prior to
requesting each such third party consent and Seller shall reasonably cooperate with Buyer in connection with obtaining such consent. Seller shall have the right to have a representative or representatives accompany Buyer at all times during
Buyer’s Environmental Review, and Buyer shall give Seller notice not more than seven (7) days and not less than 48 hours before any visits by Buyer to the Assets, and Buyer shall seek and obtain Seller’s prior consent (which shall not
be unreasonably withheld) before it enters the Plant. With respect to any samples taken in connection with Buyer’s Environmental Review, Buyer shall take split samples, providing one of each such sample, properly labeled and identified, to
Seller. Buyer hereby agrees to release, defend, indemnify and hold harmless Seller Parties from and against all Claims arising from, out of or in connection with, or otherwise relating to, Buyer’s Environmental Review, REGARDLESS OF THE
SOLE, JOINT, CONCURRENT OR COMPARATIVE NEGLIGENCE (BUT NOT ANY SELLER PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT), STRICT LIABILITY, REGULATORY LIABILITY, STATUTORY LIABILITY, BREACH OF CONTRACT, BREACH OF WARRANTY OR OTHER FAULT OR
RESPONSIBILITY OF A SELLER PARTY OR ANY OTHER PERSON OR PARTY. 

  
 28 

	 	(c)	Unless otherwise required by applicable law, Buyer shall treat all matters revealed by Buyer’s Environmental Review, including, without limitation, any analyses,
compilations, studies, documents, reports or data prepared or generated from such review (the “Environmental Information”), as confidential, and Buyer shall not disclose any Environmental Information to any Governmental
Authority or other third party without the prior written consent of Seller except as hereafter provided or to the extent required by applicable law. Buyer may use the Environmental Information only in connection with the transactions contemplated by
this Agreement. The Environmental Information shall be disclosed by Buyer to only those persons who need to know the Environmental Information for purposes of evaluating the transaction contemplated by this Agreement, and who agree to be bound by
the terms of this Section 7.1(c). If Buyer or any third party to whom Buyer has provided any Environmental Information is requested, compelled or required to disclose any of the Environmental Information by a court or other Governmental
Authority, or disclosure is otherwise required under applicable law, Buyer shall provide Seller with prompt notice sufficiently prior to any such disclosure so as to allow Seller to file for any protective order, or seek any other remedy, as it
deems appropriate under the circumstances. If this Agreement is terminated prior to the Closing, upon Seller’s request Buyer shall promptly deliver the Environmental Information, and all copies thereof and works based thereon, to Seller, which
Environmental Information shall become the sole property of Seller; provided, however, that Buyer may retain copies thereof in the event of a dispute between Buyer and Seller arising from or relating to such termination. Upon request, Buyer shall
provide copies of the Environmental Information to Seller without charge. The terms and provisions of this Section 7.1(c) shall survive any such termination of this Agreement, notwithstanding anything to the contrary. In no event shall
an Environmental Defect be the basis for adjusting the Purchase Price by an amount greater than the Allocated Value of the Asset(s) affected thereby. 

  

	 	7.2	Environmental Definitions. 

  

	 	(a)	The term “Environmental Defect” shall mean, with respect to any given Asset, a violation of Environmental Laws in effect as of the Effective
Time in the jurisdiction in which such Asset is located. 

  

	 	(b)	The term “Governmental Authority” shall mean any tribal authority, the United States and any state, county or parish, city or political
subdivision that exercises jurisdiction, and any agency, department, board, commission or other instrumentality thereof. 

  
 29 

	 	(c)	The term “Environmental Laws” shall mean all laws, statutes, ordinances, court decisions, rules and regulations of any Governmental Authority
pertaining to the environment as may be interpreted by applicable final, non-appealable court decisions or administrative orders. 

  

	 	(d)	The term “Environmental Defect Value” shall mean, with respect to an Environmental Defect, the estimated costs and expenses to correct such
Environmental Defect in the most cost effective manner reasonably available, taking into account that non-permanent remedies (such as mechanisms to contain or stabilize hazardous materials, including without limitation monitoring site conditions,
natural attenuation, risk-based corrective action, institutional controls or other appropriate restrictions on the use of property, caps, dikes, encapsulation, leachate collection systems, etc.) may be the most cost effective manner reasonably
available, and in each case consistent with the application of Environmental Laws by Governmental Authorities. 

7.3 Notice of Environmental Defects. If Buyer discovers any alleged Environmental Defect affecting the Assets, Buyer shall
promptly notify Seller of such alleged Environmental Defect. To be effective, such notice (an “Environmental Defect Notice”) must (a) be in writing, (b) be received prior to the expiration of the Examination Period,
(c) describe the Environmental Defect in reasonable detail, including (i) the written conclusion of Buyer that an Environmental Defect exists and (ii) a citation of the Environmental Laws believed by Buyer in good faith to be violated
and a summary of the related facts that substantiate such violation, (d) identify the specific location affected by such Environmental Defect, (e) indicate the procedures believed by Buyer in good faith to correct the Environmental Defect
and (f) indicate Buyer’s reasonable good faith estimate of the Environmental Defect Value, for which Buyer would agree to adjust the Purchase Price in order to accept such Environmental Defect if Seller elected Section 7.4(c)
as the remedy therefor. Any matters that may otherwise constitute Environmental Defects, but of which Seller has not been specifically notified by Buyer in accordance with the foregoing, together with any environmental matter that does not
constitute an Environmental Defect, shall be deemed to have been waived by Buyer for all purposes and constitute an Assumed Obligation of Buyer at Closing. Upon receipt of a timely Environmental Defect Notice, upon request by Seller, Buyer shall
promptly deliver to Seller copies of all data, records, reports, opinions and other information in Buyer’s possession or control bearing upon or relating to the alleged Environmental Defect and its determination of the Environmental Defect
Value, including, without limitation, site plans showing the location of sampling events, boring logs and other field notes describing the sampling methods utilized and the field conditions observed, chain of custody documentation and laboratory
reports. 
 7.4 Remedies for Environmental Defects. Subject to Sections 7.5 and 7.6, the following shall be
Buyer’s sole and exclusive remedy with respect to alleged Environmental Defects: 
  

	 	(a)	Upon the receipt of an Environmental Defect Notice from Buyer asserting an alleged Environmental Defect, Seller shall have the option, but not the obligation, to
attempt to cure such Environmental Defect at any time prior to the Closing or subject to Buyer’s rights under Section 10.1(b)(vi), to include or exclude the affected Assets from the Transaction and reduce the Purchase Price by the
applicable Environmental Defect Value. 

  
 30 

	 	(b)	If Closing occurs, with respect to each alleged Environmental Defect that is not reasonably cured on or before the Closing and has not been excluded from the
transaction pursuant to Section 7.4(a), an amount equal to the Environmental Defect Value agreed upon in writing by Buyer and Seller acting reasonably shall be paid by Buyer at Closing out of the Adjusted Purchase Price to the Escrow
Agent for deposit in the Escrow Account and Seller shall have up to one hundred fifty (150) days following the Closing Date to attempt to cure such Environmental Defect; provided, that, if the parties have not agreed upon the validity of the
alleged Environmental Defect, or the Environmental Defect Value attributable thereto, the amount so deposited for such alleged Environmental Defect shall be that reasonably determined by Buyer and Seller acting in good faith. If Seller reasonably
cures the Environmental Defect within such one hundred fifty-day period, Seller will be entitled to be distributed from the Escrow Account the amount equal to the Environmental Defect Value, together with any earnings on such amount. If Seller does
not cure the Environmental Defect within such one hundred fifty-day period, Buyer will be entitled to be distributed from the Escrow Account the amount equal to the Environmental Defect Value, together with any earnings on such amount, and the
Purchase Price hereunder will be deemed to be reduced by the amount of the Environmental Defect Value. 

  

	 	(c)	If Buyer and Seller have not agreed (i) on or before Closing upon the validity of any asserted Environmental Defect, or if the parties have not agreed on the
Environmental Defect Value therefor or (ii) upon whether an alleged Environmental Defect has been reasonably cured, then either party by written notice to the other party, delivered before Closing, shall have the right to elect to have the
validity of the asserted Environmental Defect, the Environmental Defect Value for such Environmental Defect, or the sufficiency of Seller’s cure determined by an Independent Expert pursuant to Section 8. In no event shall any
disbursement from the Escrow Account be made to Seller or Buyer with respect to an Environmental Defect that is the subject of a dispute pending before the Independent Expert until such dispute is finally resolved as provided in Section 8
hereof, which shall include, without limitation, an award of the escrowed funds attributable to such Environmental Defect. To the extent the Independent Expert is determining the validity of an Environmental Defect, Seller shall have one hundred
fifty (150) days from the date the Independent Expert determines that an Environmental Defect exists to cure such Environmental Defect. 

  
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 7.5 Limitation of Remedies for Environmental Defects. Notwithstanding anything to the
contrary contained in this Agreement, (a) if the Environmental Defect Value for a given Environmental Defect does not exceed $100,000, then no claim or adjustment to the Purchase Price shall be made for such Environmental Defect, (b) if
the aggregate net value of all uncured Environmental Defects and Title Defects, each exceeding $100,000 and net of the aggregate Title Benefit Value, not waived by Buyer plus uncured Casualty Losses does not exceed the Aggregate Defect
Threshold then no adjustment of the Purchase Price shall be made therefor and (c) if the aggregate net value of all uncured Environmental Defects and Title Defects, each exceeding $100,000 and net of the aggregate Title Benefit Value not waived
by Buyer, plus uncured Casualty Losses, exceeds the Aggregate Defect Threshold, then the Purchase Price shall only be adjusted by the amount of such excess. 
 7.6 Post-Closing Environmental Indemnification by Buyer. Subject to Section 3.3(b), Buyer shall, with respect to the Assets and without regard to whether same arise or occur prior to or
after the Effective Time (except as otherwise expressly provided below) assume and indemnify, defend and hold Seller Parties harmless from and against any and all Claims caused by, resulting from, or relating or incidental to all matters affecting
health, safety and the environment (excluding, however, fines and penalties owed by Seller with respect to ownership or operation of the Assets prior to the Effective Time) including without limitation Claims relating to: 

 

	 	(a)	environmental pollution or contamination, including pollution or contamination of the soil, groundwater or air by Hydrocarbons, chemicals, NORM or any other substance,
and any violation of Environmental Laws; 

  

	 	(b)	clean-up responses, and the cost of remediation, control, assessment or compliance with respect to surface and subsurface pollution caused by spills, pits, ponds,
lagoons or storage tanks; 

  

	 	(c)	failure to comply with applicable land use, surface disturbance, licensing, air omission or notification requirements; 

 

	 	(d)	disposal of any hazardous substances, wastes, materials and products generated by or used in connection with the ownership, development, operation or abandonment of any
part of the Assets; and 

  

	 	(e)	non-compliance with environmental or land use rules, regulations, demands or orders of appropriate Governmental Authorities, 

REGARDLESS OF THE SOLE, JOINT, CONCURRENT OR COMPARATIVE NEGLIGENCE (BUT NOT SELLER’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT), BREACH OF
CONTRACT, BREACH OF WARRANTY, STRICT LIABILITY, REGULATORY LIABILITY, STATUTORY LIABILITY OR OTHER FAULT OR RESPONSIBILITY OF SELLER OR ANY OTHER PERSON OR PARTY. 
 7.7 NORM. NOTWITHSTANDING ANYTHING TO THE CONTRARY CONTAINED HEREIN, BUYER ACKNOWLEDGES THAT SOME EQUIPMENT LOCATED ON THE ASSETS MAY CONTAIN ASBESTOS AND/OR NATURALLY

  
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OCCURRING RADIOACTIVE MATERIAL (“NORM”). IN THIS REGARD, BUYER EXPRESSLY UNDERSTANDS THAT NORM MAY AFFIX OR ATTACH ITSELF TO THE INSIDE OF MATERIALS AND EQUIPMENT AS SCALE OR IN OTHER
FORMS, AND THAT MATERIALS AND EQUIPMENT LOCATED ON LANDS COVERED BY THE ASSETS MAY CONTAIN NORM AND THAT NORM-CONTAINING MATERIALS MAY BE BURIED OR MAY HAVE BEEN OTHERWISE DISPOSED OF ON THE LAND AND PROPERTIES COMPRISING OR SITUATED ON THE ASSETS.
BUYER ALSO EXPRESSLY UNDERSTANDS THAT SPECIAL PROCEDURES MAY BE REQUIRED FOR THE REMOVAL AND DISPOSAL OF ASBESTOS AND NORM FROM THE ASSETS WHERE THEY MAY BE FOUND. BUYER SHALL, BY CLOSING ITS PURCHASE OF THE ASSETS, ASSUME ALL LIABILITY WHEN SUCH
ACTIVITIES ARE PERFORMED. IT IS EXPRESSLY RECOGNIZED BY BUYER THAT THE LANDS, ALONG WITH THE FACILITIES AND EQUIPMENT LOCATED THEREON MAY CONTAIN NORM, ASBESTOS AND OTHER HAZARDOUS SUBSTANCES AS A RESULT OF THESE OPERATIONS. THE GENERATION,
FORMATION, OR PRESENCE OF NORM, ASBESTOS OR OTHER HAZARDOUS SUBSTANCES IN OR ON THE ASSETS SHALL BE THE SOLE RESPONSIBILITY OF BUYER, AND BUYER AND ALL FUTURE ASSIGNEES AND SUCCESSORS OF BUYER SHALL DEFEND, INDEMNIFY AND HOLD SELLER PARTIES HARMLESS
FROM AND AGAINST ANY AND ALL CLAIMS IN ANY WAY ARISING FROM, OUT OF OR IN CONNECTION WITH, OR OTHERWISE RELATING TO, THE PRESENCE OF NORM, ASBESTOS OR OTHER HAZARDOUS SUBSTANCES, WITHOUT REGARD TO WHETHER SUCH NORM, ASBESTOS OR OTHER HAZARDOUS
SUBSTANCE WAS IN PLACE BEFORE OR AFTER THE EFFECTIVE TIME, AND REGARDLESS OF THE SOLE, JOINT, CONCURRENT OR COMPARATIVE NEGLIGENCE (BUT NOT SELLER’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT), BREACH OF CONTRACT, BREACH OF WARRANTY, STRICT
LIABILITY, REGULATORY LIABILITY, STATUTORY LIABILITY OR OTHER FAULT OR RESPONSIBILITY OF SELLER OR ANY OTHER PERSON OR PARTY. 
 7.8 Waiver. Buyer, with and upon Closing, waives for all purposes all objections associated with the environmental, physical and other condition of the Assets, unless raised by proper notice within
the Examination Period, and Buyer (and on behalf of Buyer Parties and their successors and assigns) irrevocably waives any and all Claims any Buyer Party may have against the Seller Parties associated therewith. 

 

	8.	Independent Experts 

8.1 Selection of Independent Experts. Any disputes regarding Title Defects, Title Benefits, Title Defect Values, Title Benefit
Values, Environmental Defects, Environmental Defect Values, the cure of Title Defects or Environmental Defects, any other matter for which Buyer or Seller is indemnified hereunder, and the calculation of the Final Settlement Statement, or revisions
thereto, may, as herein provided, be submitted by a party, with written notice to the other party, to an independent expert (the “Independent Expert”), who shall serve as the sole and exclusive arbitrator of any such dispute.
The Independent Expert, with regard to any disputes regarding Title Defect Values, Title Benefit Values, Environmental Defects, Environmental Defect Values or the cure of Title Defects or Environmental Defects, shall be selected upon his field of
expertise with the mutual agreement of Buyer and Seller and shall have both knowledge 

  
 33 

 
and experience involving gas processing plants in or near the regional area in which the Assets are located. If the parties are unable to agree on an Independent Expert, Seller shall appoint an
arbitrator of its choice and Buyer shall appoint an arbitrator of its choice (each, a “Party Appointed Arbitrator”). The two Party Appointed Arbitrators shall in turn appoint a third to be the Independent Expert. 

8.2 Procedures. Disputes to be resolved by an Independent Expert shall be resolved in accordance with mutually agreed procedures
and rules and, failing such agreement, the arbitration proceedings shall be conducted pursuant to the then current Commercial Arbitration Rules of the American Arbitration Association (the “AAA”), but shall not be
administered by the AAA. The Independent Expert shall be instructed by the parties to resolve such dispute as soon as reasonably practicable in light of the circumstances but in any event within ninety (90) days for Title Defects, Title
Benefits and Environmental Defects. The decision and award of the Independent Expert shall be binding upon the parties and final and nonappealable to the maximum extent permitted by law, and judgment thereon may be entered in a court of competent
jurisdiction and enforced by any party as a final judgment of such court. 
 8.3 Location of Proceeding. All proceedings
under this Section 8 shall be conducted in Houston, Texas. 
  

	9.	Additional Covenants 

 9.1 Operations Prior to Closing. After the date of this Agreement and prior to the Closing, as to any of the Assets operated by Seller, Seller shall use, operate and maintain the Assets in
substantially the same manner in which they have been used, operated and maintained prior to this Agreement and shall cause the Buyer to be listed as a loss payee under Seller’s insurance policies with respect to the Assets for the period
beginning on and after the Effective Time and through the Closing Date. In the event of an insurable loss after the Effective Time and prior to Closing, upon request of Buyer, Seller shall submit a claim on behalf of Buyer under Seller’s
insurance policies with respect to such loss, and shall direct Seller’s underwriters to pay any proceeds from such claim directly to Buyer. If prior to the Closing Date (a) a Casualty Loss occurs or the Plant suffers a slow down or shut
down of operations and (b) such Casualty Loss, slow down or shut down does not require Seller to take immediate action as a result of an emergency or other exigent circumstance, Seller agrees to consult with Buyer regarding the appropriate
remedial action as soon as practicable following such event. Except as otherwise provided herein, during the period from the Effective Time until Closing, Seller shall have no liability to Buyer for Claims sustained or liabilities incurred with
respect to the Assets, REGARDLESS OF THE SOLE, JOINT, CONCURRENT OR COMPARATIVE NEGLIGENCE (BUT NOT SELLER’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT), STRICT LIABILITY, REGULATORY LIABILITY, STATUTORY LIABILITY, BREACH OF CONTRACT, BREACH OF
WARRANTY OR OTHER FAULT OR RESPONSIBILITY OF SELLER OR ANY OTHER PERSON OR PARTY. After the date hereof and prior to Closing, Seller may (without Buyer’s consent; provided, however, if such consent is required, it will not be unreasonably
withheld, delayed or conditioned) enter into agreements or transactions in relation to the Assets which (a) individually involve a reasonably anticipated cost of less than $50,000, individually, and (b) are entered into in the ordinary
course of business, consistent with past practices. With Closing, Seller is relieved of and shall not be 

  
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obligated for any expenditures attributable to periods after the Effective Time, and shall recover any such charges and expenses as part of the Closing Statement and Final Settlement Statement
adjustments, as appropriate. Except with respect to those matters described above, if any material expenditure, contract or agreement is proposed or contemplated, Seller shall promptly submit such proposal to Buyer for concurrence with Seller’s
recommendation. Buyer will make any required election under its independent evaluation and shall assume the cost and risk of any consequences which arise as a result of Buyer’s election to participate or Buyer’s failure to timely elect or
election to not participate in or not approve an operation and not pay such expenditure, without regard to whether Closing occurs. Additionally, after the execution of this Agreement and prior to Closing, Seller shall have the right to make any
changes, repairs or modifications to the Assets, and incur any related expenditure deemed necessary by Seller or the Plant operator, to prevent or respond to an emergency involving serious risk of loss of or damage to life, property, or the
environment. With regard to the preceding sentence, Seller shall notify Buyer as soon as possible of the emergency and Seller’s or Plant operator’s response thereto and shall have the right to cause or effect such expenditure or action
with or without Buyer’s approval, and recover such costs in the Closing Statement or Final Settlement Statement adjustments, as appropriate. Prior to Closing, Seller shall consult with and advise Buyer regarding all material matters concerning
the operation, management, and administration of the Assets. Furthermore, Seller will not, without the prior written consent of Buyer, (w) enter into any agreement or arrangement transferring, selling, or encumbering any of the Assets or
directly or indirectly, knowingly solicit, seek, or encourage offers or indications of interest regarding the Assets similar to the transactions contemplated hereby, (x) grant any preferential or other similar right to purchase any of the
Assets, (y) enter into any new processing or sales contract extending beyond the Closing Date and not terminable on thirty (30) days’ notice or less or (z) provide any non-public information regarding the Assets to any other
party in connection with any transaction prohibited by clause (w), above. Furthermore, Seller will terminate any existing activities or discussions not required in the normal course of business with respect to the Assets with any party other than
Buyer and its representatives. Promptly after execution of this Agreement, if applicable, Seller shall notify the holders of the Consents of the transactions contemplated herein and request their consent. Buyer shall have the right to review and
approve the form of such notices, such approval not to be unreasonably withheld. Buyer and Seller each agree to reasonably cooperate with efforts to obtain any such required Consents. 

9.2 Financial Information. (a) So that Buyer may comply with certain financial reporting requirements of the U.S. Securities
and Exchange Commission (“SEC”), following the date hereof, Seller shall provide Buyer and its accountants reasonable access to Seller’s financial records and data related to the Assets and Seller’s officers, accountants,
counsel and representatives (“Seller Personnel”) as Buyer and its accountants may reasonably request in order to comply with such requirements. Seller shall (and shall use its reasonable efforts to cause Seller Personnel to)
cooperate with Buyer and its representatives in connection with the preparation by Seller, at Buyer’s sole, cost, expense and risk, of financial statements and other financial data relating to Seller for a period of up to three (3) full
fiscal years prior to the Closing Date, including any interim period preceding the Closing Date, to satisfy Buyer’s obligations to file financial statements required by Section 3-05 of Regulation S-X under the Securities and Exchange Act
of 1934 (the “Exchange Act”) with respect to the consummation of the transactions contemplated by this Agreement (“Seller Financial Statements”). If the SEC requires Buyer to obtain audited financial statements and
other financial data relating solely to 

  
 35 

 
the Assets (collectively “Carve Out Financials Statements”), Seller’s cooperation shall include access to (i) the Financial Records and the right to copy such Financial
Records necessary to allow Buyer to prepare Carve Out Financial Statements meeting the requirements of Regulation S-X promulgated under the Securities Act of 1933 (the “Securities Act”) and (ii) access to Seller Personnel for
the purpose of (A) preparing the Carve Out Financials Statements, related disclosures, and accounting books and records relating to the Assets, and (B) performing an audit, as needed, in accordance with generally accepted auditing
standards. 
 (b) Seller shall cooperate with Buyer in connection with the preparation of any pro forma financial statements of
Buyer that are derived in part from financial statements referenced in Section 9.2(a) above and any other financial or statistical information with respect to the Assets that Buyer reasonably determines are required to be included or
incorporated by reference in any registration statement, report or other filing of Buyer to satisfy any rule or regulation of the SEC or to satisfy relevant disclosure obligations under the Securities Act or the Exchange Act. 

(c) Seller shall use reasonable efforts to cause its independent accountants to consent to the inclusion or incorporation by reference of
its audit opinion with respect to including the Seller Financial Statements or Carve Out Financial Statements, as applicable, in any such registration statement, report or other filing of any Buyer, and Seller shall use reasonable efforts to cause
representation letters, in form and substance reasonably satisfactory to Seller’s independent accountants, to be executed and delivered to such independent accountants in connection with obtaining any such consent from such independent
accounts. 
 (d) Notwithstanding the foregoing, (i) Seller shall in no event be required to create new records relating to
the Assets and (ii) the access to be provided to Buyer and its accountants pursuant to this Section shall not interfere with Seller’s (or its affiliates’) ability to conduct business in the ordinary course and such access shall only
be made available during Seller’s normal business hours. 
 Buyer (on behalf of itself, its affiliates and its and their successors and
assigns) releases Seller (and its affiliates and its and their successors and assigns) from and shall fully protect, defend, indemnify and hold all such persons harmless from and against any and all Claims relating to, arising out of, or connected
with, directly or indirectly, the preparation or furnishing of any information or records referred to in this Section 9.2, any actions, statements, representations or certifications of Seller’s and its affiliates’ personnel,
accountants, consultants, contractors or auditors with respect to such information or records, or Buyer’s use of any such information or records, the inclusion of any such records or information or matters derived therefrom, in any debt or
equity offering documents, filings with any exchange or the SEC, or related materials, regardless of cause or of any negligent acts or omissions (including active or passive, sole, concurrent or comparative negligence), strict liability, breach of
duty (statutory or otherwise), violation of Law, or other fault of Seller, Seller’s affiliates (or Seller’s or Seller’s affiliates successors or assigns), or any pre-existing defect; provided however, Seller’s release and
indemnification set forth herein shall not apply to Seller’s willful misconduct. 
 9.3 Transition Services
Agreement. If requested by Buyer, Seller shall execute and deliver to Buyer a Transition Services Agreement with terms mutually acceptable to Seller and Buyer. 

  
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 9.4 Compliance. From and after Closing, Buyer shall comply with all contracts,
agreements, Permits, laws, ordinances, rules and regulations applicable to Buyer and the Assets purchased and shall promptly obtain and maintain all permits, licenses and other authorizations required by Governmental Authorities in connection with
the Assets purchased. 
 9.5 Further Assurances. At the request of any party to this Agreement, Buyer and Seller will
cause to be executed and delivered all such further instruments of conveyance, assignments and further assurances as reasonably may be required to transfer and assign Seller’s Plant Interest in the Assets or otherwise to implement the
provisions and intent of this Agreement, the Assignment and other documents and instruments executed in connection therewith. 

9.6 Access to Information. At Buyer’s expense, subject to applicable law and confidentiality obligations, Seller and its
respective affiliates shall take reasonable efforts to afford Buyer and its accountants, counsel, and other representatives, reasonable access during the period from the date hereof until the Closing Date to (i) their books, contracts,
commitments and records pertaining to the Assets and (ii) all other information concerning their business, properties and personnel, in each case as it pertains to the Assets, as Buyer may reasonably request and Seller shall, at Buyer’s
expense, reasonably cooperate with Buyer with respect to its requests and efforts in connection with such access and related due diligence of the Assets. If Buyer or its representatives enter onto the Plant or other property of Seller or its
affiliates, Buyer shall, and shall cause its representatives to, comply with all safety and other guidelines and regulations applicable thereto. Buyer agrees to indemnify, defend and hold Seller and its affiliates harmless for any loss any such
persons may incur in connection with Buyer and/or its representatives accessing the Plant or other properties of such persons. 
  

	10.	Closing, Termination and Final Adjustments 

 10.1 Conditions Precedent. Each party’s obligation to consummate the transactions contemplated by this Agreement is subject to the satisfaction of the following: 

 

	 	(a)	The obligations of Seller to consummate the transactions provided for herein are subject, at the option of Seller, to the fulfillment on or prior to the Closing Date of
each of the following conditions: 

  

	 	(i)	The representations and warranties of Buyer herein contained shall be true and correct in all material respects on the Closing Date (except that those representations
and warranties of Buyer that are qualified by materiality shall be true and correct in all respects), as though made on and as of such date, except that representations which by their terms are made as of a specified date shall be true and correct
as of the date so specified, and Buyer shall have delivered to Seller a certificate, dated as of the Closing Date, to that effect. 

  

	 	(ii)	Buyer shall have performed and complied in all material respects with the duties, obligations and covenants under this Agreement required to be performed or complied
with by it at or prior to Closing, and Buyer shall have delivered to Seller a certificate, dated as of the Closing Date, to that effect. 

  
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	 	(iii)	No suit, action or other proceeding shall be pending or threatened that seeks to, or could reasonably result in a judicial order, judgment or decree that would,
restrain, enjoin or otherwise prohibit the consummation of the transactions contemplated by this Agreement, other than an action or proceeding instituted or threatened by Seller or any of its affiliates. 

 

	 	(iv)	All Consents shall have been made, obtained or waived by the other party or parties thereto, or the time period by which such consents were required to be made, given
or withheld have expired without action by the party whose consent is required. Provided, however, if this condition is not satisfied, either party shall have the option to treat the affected Asset as having a Title Defect and may exclude the
affected Asset from the Assets delivered at Closing and the Purchase Price shall be reduced by the Allocated Value of such affected Asset. In such event, the failure to satisfy this condition shall not be grounds for termination.

  

	 	(v)	[Reserved.] 

  

	 	(vi)	Buyer shall have delivered to Seller either: (A) copies of any bonds, permits, licenses or other authorizations required under any laws, rules or regulations of
any federal, state or local Governmental Authority having jurisdiction over the Assets or required by any Contract, or agreement pertaining to the Assets or (B) commitments or other assurances satisfactory to Seller, that Buyer will obtain any
such bonds, permits, licenses or other authorizations post-closing. 

  

	 	(vii)	The aggregate of all adjustments to the Purchase Price for Title Defects, Environmental Defects and Casualty Losses shall not exceed (net of Title Benefits) twenty
percent (20 %) of the Purchase Price. 

  

	 	(b)	The obligations of Buyer to consummate the transactions provided for herein are subject, at the option of Buyer, to the fulfillment on or prior to the Closing Date of
each of the following conditions: 

  

	 	(i)	The representations and warranties of Seller herein contained shall be true and correct in all material respects on the Closing Date (except that those representations
and warranties of Seller that are qualified by materiality shall be true and correct in all respects), as though made on and as of such date, except that representations which by their terms are made as of a specified date shall be true and correct
as of the date so specified, and Seller shall have delivered to Buyer a certificate, dated as of the Closing Date, to that effect. 

  
 38 

	 	(ii)	Seller shall have performed and complied in all material respects with the duties, obligations and covenants under this Agreement required to be performed or complied
with by it at or prior to Closing, and Seller shall have delivered to Buyer a certificate, dated as of the Closing Date, to that effect. 

  

	 	(iii)	No suit, action or other proceeding shall be pending or threatened that seeks to, or could reasonably result in a judicial order, judgment or decree that would,
restrain, enjoin or otherwise prohibit the consummation of the transactions contemplated by this Agreement, other than an action or proceeding instituted or threatened by Buyer or any of its affiliates. 

 

	 	(iv)	All Consents shall have been made, obtained or waived by the other party or parties thereto, or the time period by which such consents were required to be made, given
or withheld have expired without action by the party whose consent is required. Provided, however, if this condition is not satisfied, either party shall have the option to treat the affected Asset as having a Title Defect and may exclude the
affected Asset from the Assets delivered at Closing and the Purchase Price shall be reduced by the Allocated Value of such affected Asset. In such event the failure to satisfy this condition shall not be grounds for termination.

  

	 	(v)	[Reserved.] 

  

	 	(vi)	The aggregate of all adjustments to the Purchase Price for Title Defects, Environmental Defects and Casualty Losses shall not exceed (net of Title Benefits) twenty
percent (20%) of the Purchase Price. 

  

	 	(vii)	Seller’s Plant Interest conveyed to Buyer at Closing shall be more than eighty percent (80%) of the undivided right, title and interest in and to the Plant.

  

	 	(viii)	Buyer shall have received evidence from Seller documenting the Plant’s air permitting compliance, such evidence to include sufficient documentation to determine
the Plant’s Prevention of Significant Deterioration grandfathered status. 

  

	 	(ix)	 The Plant Agreement and any other applicable Contract shall have been amended to (a) allow the sale of the Plant independently from any wells in
which Seller owns an interest that are connected to the 

  
 39 

	 	
Plant, (b) permit Buyer to serve as operator of the Plant, (c) permit the gathering and processing agreements listed on Schedule 1.1(a)(ii) or Schedule 1.1(a)(v) to be assigned to Buyer
and (d) provide that Buyer shall distribute 100% of Plant revenues attributable to production to the Working Interest owners, and the Working Interest owners will be responsible for distribution of all revenues therefrom to other interest
owners in the production, including royalty and overriding royalty owners and carried interests, and Buyer shall have no liability therefor. 

 10.2 Closing. The closing of the transactions contemplated herein and the transfer of the Assets (“Closing”) shall occur on June 21, 2012 at the offices of Locke Lord LLP,
located at 600 Travis, Suite 2800, Houston, Texas 77002 at 10:00 a.m., local time, or on such other date or time, or at such other place, as Seller and Buyer may agree in writing (the “Closing Date”). At Closing, the
following shall occur: 
  

	 	(a)	Buyer and Seller shall execute and acknowledge the Assignment; 

  

	 	(b)	Buyer and Seller shall execute and acknowledge, if appropriate, any such other assignments, bills of sale, deeds, or other instruments as are reasonably necessary to
effectuate the transfer, sale or conveyance of the Assets to Buyer, including without limitation and to the extent required, separate assignments of the Assets on officially approved forms in sufficient counterparts to satisfy applicable statutory
and regulatory requirements for the transfer of the Assets; 

  

	 	(c)	At the Closing, upon delivery of the Assignment and other instruments described in this Section 10.2, Buyer shall pay the Adjusted Purchase Price to Seller
by bank wire, as designated in advance by Seller under Section 2.2. 

  

	 	(i)	Buyer shall pay to the Escrow Agent out of the Adjusted Purchase Price, for deposit in the Escrow Account, the amount of any Title Defect Values for any uncured Title
Defects as provided in Section 6.5, net of the Title Benefit Values; 

  

	 	(ii)	Buyer shall pay to the Escrow Agent out of the Adjusted Purchase Price, for deposit in the Escrow Account, the amount of any Environmental Defect Values for any uncured
Environmental Defects as provided in Section 7.4; 

  

	 	(iii)	Buyer shall instruct the Escrow Agent to disburse the Deposit to Seller; and 

 

	 	(iv)	Buyer shall pay the Adjusted Purchase Price, less the amounts paid by Buyer to the Escrow Agent pursuant to Sections 10.2(c)(i), and 10.2(c)(ii), if any,
to Seller by bank wire, as designated in advance by Seller under Section 2.2; 

  
 40 

	 	(d)	On or before Closing, Seller shall supply Buyer with an appropriate governmental form to the extent required by the Governmental Authority, board or commission having
jurisdiction and authority to change the name of operator from Seller to Buyer. All such forms shall be executed by Buyer and/or Seller as may be required prior to or during Closing. Buyer shall be solely responsible for any fee as may be required
by such Governmental Authority, board or commission and, at the parties’ option, shall either deliver its check payable to the Governmental Authority, board or commission to Seller at Closing or credit this fee amount to Seller in the Final
Settlement Statement. Seller shall mail the completed form and fee to the proper Governmental Authority, board or commission after Closing; 

  

	 	(e)	Buyer and Seller shall execute such notices as are required, and immediately after Closing, Buyer shall notify all producers and Plant owners, operators, Hydrocarbon
purchasers, governmental agencies and parties to Contracts that it has purchased the Assets, and the Effective Time of such acquisition; and 

  

	 	(f)	Seller shall deliver to Buyer a certificate pursuant to Internal Revenue Code Section 1445, in the form of Exhibit “F”, certifying that Seller is
not a foreign person. 

 10.3 Termination. This Agreement and the transactions contemplated hereby may be
terminated in the following instances: 
  

	 	(a)	By Seller if any condition set forth in Section 10.1(a) or requirement set forth in Section 10.2 has not been satisfied or waived by Seller by
the earlier of July 31, 2012 or the Closing Date; provided that Seller is not in material breach of this Agreement; 

  

	 	(b)	By Buyer if any condition set forth in Section 10.1(b) (other than the condition set forth in Section 10.1(b)(viii) which is separately
addressed in clause (f), below) or requirement set forth in Section 10.2 has not been satisfied or waived by Buyer by the earlier of July 31, 2012 or the Closing Date; provided that Buyer is not in material breach of this Agreement;

  

	 	(c)	By mutual written agreement of Buyer and Seller; 

  

	 	(d)	By Seller if Closing has not occurred on or before July 31, 2012 and Seller is not in material breach of this Agreement; 

 

	 	(e)	By Buyer if Closing has not occurred on or before July 31, 2012 and Buyer is not in material breach of this Agreement; 

 

	 	(f)	By Buyer if the condition set forth in Section 10.1(b)(viii) or the condition set forth in Section 10.1(b)(ix) has not been satisfied or waived
by Buyer by the earlier of July 31, 2012 or the Closing Date; 

  
 41 

	 	(g)	If Buyer, through no fault of Seller, fails, refuses, or is unable for any reason not permitted by this Agreement to close the sale pursuant hereto, Seller shall have
the option of (i) electing to accept the Deposit as liquidated damages or (ii) pursuing specific performance. If Seller elects option (i), the Deposit (together with any earnings thereon) shall, except as otherwise provided herein, be
disbursed from the Escrow Account to Seller as Seller’s sole and exclusive remedy. If Seller, through no fault of Buyer, fails, refuses, or is unable for any reason not permitted by this Agreement to close the sale pursuant hereto, Buyer shall
have the option of (i) electing to receive a refund of the Deposit, or (ii) pursing specific performance. If Buyer elects option (i), the Deposit (together with any earnings thereon) shall, except as otherwise provided herein, be disbursed
from the Escrow Account to Buyer. Notwithstanding the foregoing, if this Agreement is terminated (i) by Buyer under Section 10.3(b), Section 10.3(e) or Section 10.3(f), (ii) by Seller under
Section 10.3(d) or (iii) by mutual agreement of Buyer and Seller under Section 10.3(c), the Deposit (together with any earnings thereon) shall be disbursed from the Escrow Account to Buyer and neither party shall have
any further liability whatsoever to the other party pursuant to this Agreement. In no event shall either party be entitled to recover from the other consequential or punitive damages for any reason related to this Agreement.

 10.4 Final Adjustments. Within one hundred eighty (180) days after the date of Closing, Seller
shall prepare, in consultation with Buyer, a Final Settlement Statement, acting reasonably and in good faith (the “Final Settlement Statement”), setting forth (i) the final adjustments to the Purchase Price provided in
Section 2.4 and (ii) any other adjustments arising pursuant to this Agreement or to which the parties mutually agree, including but not limited to any payments made to either party pursuant to the last two (2) sentences of
Section 3.1. Each of Buyer and Seller may set-off any amount due to Buyer against any amount or sum that Buyer may otherwise owe to Seller under the terms of this Agreement. Seller shall submit the Final Settlement Statement to Buyer,
along with copies of third party vendor invoices, or other evidence of expenses agreed to by Buyer and Seller. Buyer shall respond in writing with objections and proposed corrections within thirty (30) days of receiving the Final Settlement
Statement. If Buyer does not respond to the Final Settlement Statement by signing or objecting in writing within such thirty (30) day period, the statement will be deemed approved by Buyer and final and binding between the parties. After
approval of the Final Settlement Statement, Buyer or Seller will send a check or invoice to Seller or Buyer, as the case may be, for the net amount reflected therein as owed by such party. If Buyer and Seller are unable to agree to all adjustments
within thirty (30) days after Buyer’s written objection to the Final Settlement Statement submitted by Seller, adjustments which are not in dispute shall be paid by Buyer or Seller, as the case may be, at the expiration of such thirty day
period and either party may submit such disagreement to an Independent Expert selected in the manner provided in Section 8 for resolution. An Independent Expert selected with respect to any dispute relating to the Final Settlement
Statement need not be the Independent Expert selected pursuant to Section 8 with respect to a Title Defect or Environmental Defect, if any such person had been previously selected with respect to such matters. 

  
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	11.	Miscellaneous 

 11.1 Insurance. With regard to any Seller-operated Assets, subject to Section 11.2, below: 
  

	 	(a)	Seller and Buyer acknowledge that insurance coverage for the Assets and the operations in which the Assets have been used has been provided, in part, under insurance
programs arranged and maintained by Seller for itself and, if applicable, its subsidiaries and affiliates (such policies are herein called “Seller Policies”). 

 

	 	(b)	Seller agrees that during the period between the date of this Agreement and the Closing Date, Seller shall maintain insurance with respect to the Assets with
financially sound and reputable insurance companies, in such amounts, with such deductibles and covering such risks as are customarily carried by reasonable, prudent operators of similar properties. 

 

	 	(c)	Seller and Buyer agree that, as of the Closing Date, all of the Seller Policies shall cease to apply to the Assets and the operations in which the Assets are used and
that Buyer shall make no claims under the Seller Policies with respect to any matter whatsoever, whether arising before or after the Closing Date. 

  

	 	(d)	For the period from and after the Closing Date, in the event that any Claim is hereafter made with respect to such period under or with respect to any of the Seller
Policies by Buyer or any of its affiliates, but not an unrelated third party, Buyer shall indemnify and defend Seller and Seller Parties against and shall hold them harmless from all costs, expenses and losses suffered as a result of such Claim
(including, without limitation, attorney’s fees and court costs) related thereto. 

 11.2 Casualty Loss of
Assets. Provided that the Closing occurs, all risk of loss with respect to the Assets shall be borne by Buyer from the period from and after the execution of this Agreement. If, after execution of this Agreement and prior to Closing, a portion
of the Assets is damaged or destroyed by a Casualty Loss, and such Casualty Loss is covered by Seller’s insurance, if such affected Asset is not otherwise excluded from the transaction, Seller shall submit a claim therefor, and the net proceeds
shall be used to repair the damage unless Seller and Buyer agree to the contrary. The term “Casualty Loss” shall mean physical damage to an Asset that (a) occurs between execution of this Agreement and Closing,
(b) is not the result of normal wear and tear, mechanical failure or gradual structural deterioration of materials, equipment and infrastructure and (c) exceeds one hundred thousand dollars ($100,000). 

11.3 Books and Records. Seller shall make available the Records to Buyer at Closing or within a reasonable time thereafter. Buyer
shall make arrangements to pick up the Records at Buyer’s sole expense. 
 11.4 Publicity. Seller and Buyer shall
consult with each other with regard to all press releases or other public or private announcements made concerning this Agreement or the 

  
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transactions contemplated hereby, and except as may be required by applicable laws or the applicable rules and regulations of any Governmental Authority or stock exchange, neither Buyer nor
Seller shall issue any such press release or other publicity without the prior written consent of the other party, which shall not be unreasonably withheld. Except as may be required by applicable laws or the applicable rules and regulations of any
Governmental Authority or stock exchange, no such press release shall include any production stream or revenue estimates. 

11.5 Assignment. Prior to Closing, Buyer may not assign any rights acquired hereunder or delegate any duties assumed hereunder
without the prior written consent of Seller or its respective successors and assigns; provided, however, that Buyer may assign this Agreement to any wholly owned subsidiary; and any such transfer, assignment, sublease or delegation without
Seller’s consent shall be null and void, ab initio. Notwithstanding anything herein to the contrary, Buyer shall remain responsible to Seller for all obligations and liabilities under this Agreement and under the Assignment and other
documents executed in connection with this Agreement, until expressly released by Seller in writing. 
 11.6 Entire
Agreement. This Agreement, the Assignment and other documents executed in connection with this Agreement constitutes the entire agreement between Seller and Buyer with respect to the transactions contemplated herein, and supersedes all prior
oral or written agreements, commitments, and understandings between the parties. No amendment shall be binding unless in writing and signed by both parties. Headings used in this Agreement are only for convenience of reference and shall not be used
to define the meaning of any provision. This Agreement is for the benefit of Seller and Buyer and their respective successors, representatives, and assigns and the persons entitled to indemnification hereunder and not for the benefit of third
parties. 
 11.7 Notices. All notices and consents to be given hereunder shall be in writing and shall be deemed to have
been duly given if delivered either by personal delivery, telex, telecopy or similar facsimile means, by certified or registered mail, return receipt requested, or by courier or delivery service, addressed to the parties hereto at the following
addresses: 
  

			
	If to Seller:	  	If to Buyer:
		
	Quantum Resources Management, LLC	  	American Midstream Partners, LP
	1401 McKinney Street, Suite 2400	  	1614 15th Street, Suite 300
	Houston, Texas 77010	  	Denver, CO 80202
	Attention: Mark P. Castiglione	  	Attention: William B. Mathews
	Telephone No.: 713-452-2270	  	Telephone No.: 720-457-6075
	Fax No.:713-452-2271	  	Fax No. 720-457-6040

 or at such other address and number as either party shall have previously designated by written notice given to the other
party in the manner herein above set forth. Notices shall be deemed given when received, if sent by facsimile (confirmation of such receipt by confirmed facsimile transmission being deemed receipt of communications); and when delivered and receipted
for (or upon the date of attempted delivery where delivery is refused), if either hand-delivered, sent by express courier or delivery service, or sent by certified or registered mail, return receipt requested. 

  
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 11.8 Governing Law. This Agreement shall be governed by the laws of the State of
Texas, without giving effect to any principles of conflicts of law. The validity of the conveyances affecting the title to real property shall be governed by and construed in accordance with the laws of the jurisdiction in which such property is
situated. The provisions contained in such conveyances and the remedies available because of a breach of such provisions shall be governed by and construed in accordance with the laws of the State of Texas, without giving effect to the principles of
conflict of laws. Any judicial proceeding brought with respect to this Agreement shall be brought in any federal court of competent jurisdiction and each of Buyer and Seller accept the jurisdiction of such courts. 

11.9 Confidentiality. 
  

	 	(a)	Buyer agrees that all information furnished or disclosed by Seller or acquired by Buyer in connection with the sale of the Assets shall remain confidential prior to
Closing. Buyer may disclose such information only to its subsidiaries or affiliates, agents, advisors, counsel or representatives (herein “Representatives”) who have agreed, prior to being given access to such information, to
maintain the confidentiality thereof. In the event that Closing of the transactions contemplated by this Agreement does not occur for any reason, Buyer agrees that all information furnished or disclosed by Seller or acquired by Buyer in connection
with the inspection, testing, inventory or sale of the Assets shall remain confidential, with Seller a third party beneficiary of any privilege held by Buyer and Buyer and its Representatives shall promptly return to Seller any and all materials and
information furnished or disclosed by Seller relating in any way to the Assets, including any notes, summaries, compilations, analyses or other material derived from the inspection or evaluation of such material and information, without retaining
copies thereof and destroy any information relating to the Assets and independently acquired by Buyer. 

  

	 	(b)	 Seller agrees that from and after the Closing Date all information retained by Seller in connection with the Assets shall remain confidential;
provided, however, Seller shall not be prohibited from disclosing any such information (i) to any of its affiliates and Seller’s and its affiliate’s employees, officers, directors, agents, attorneys, accountants, and other
professional advisors, (ii) upon the request or demand of any Governmental Authority having jurisdiction over it, (iii) in response to any order of any court or other Governmental Authority or as may otherwise be required pursuant to any
applicable law, (iv) if required to do so in connection with any litigation or similar proceeding, (v) that has been publicly disclosed other than in breach of this provision, (vi) required to be disclosed pursuant to the agreements
by which Seller obtained its interest in the Plant or (vii) in connection with the exercise of any remedy hereunder or under any other document executed in connection with this Agreement; provided however, that if Seller is required to
disclose any such information pursuant to clauses (ii) through (iv) above, to the extent 

  
 45 

	 	
it may do so, it will not make any such disclosure without (a) providing Buyer prior written notice of the requirement for such disclosure and (b) affording Buyer the opportunity to
contest such disclosure pursuant to applicable law. 

  

	 	(c)	In the event of any conflict between this Section 11.9 and any other confidentiality agreement affecting Buyer and Seller, this Section 11.9
shall control. 

 11.10 Survival of Certain Obligations. Except as expressly provided otherwise in this
Agreement, waivers, disclaimers, releases, representations, warranties and continuing obligations of Buyer and Seller, and all obligations of either party for indemnity and defense contained in this Agreement shall survive the execution and delivery
of the Assignment and the Closing. 
 11.11 Further Cooperation. After the Closing, each party shall execute,
acknowledge, and deliver all documents, and take all such acts which from time to time may be reasonably requested by the other party in order to carry out the purposes and intent of this Agreement. 

11.12 Counterparts. This Agreement may be executed in one or more counterparts and by different parties hereto in separate
counterparts and may be delivered in original or facsimile or other electronic form, each of which when so executed and delivered shall be deemed to be an original and all of which taken together shall constitute one and the same agreement with the
same effect as if all signatures of the parties hereto were on the same document, but in such event each counterpart shall constitute an original, and all of such counterparts shall constitute one Agreement; but in making proof of this Agreement, it
shall not be necessary to produce or account for more than one such counterpart signed by each party. 
 11.13 Exhibits and
Schedules. All of the Exhibits and Schedules referred to in this Agreement are hereby incorporated into this Agreement by reference and constitute a part of this Agreement. 

11.14 Severability. If any term or provision of this Agreement is invalid, illegal or incapable of being enforced by any rule of
law, all other conditions and provisions of the Agreement shall nevertheless remain in full force and effect so long as the economic or legal substance of the transactions contemplated hereby are not affected in any materially adverse manner to the
other party. 
 11.15 Expenses, Post-Closing Consents and Recording. Notwithstanding other provisions of this Agreement,
Buyer shall be responsible for the filing and recording of the Assignment(s), conveyances or other instruments required to convey title to the Assets to Buyer in the appropriate federal, state and local records, and all required documentary, filing
and recording fees and expenses incurred in connection therewith. Buyer shall supply Seller with a true and accurate photocopy of all the recorded and filed Assignment(s) within a reasonable period of time after such are available. Buyer shall be
responsible for timely obtaining all consents and approvals of Governmental Authorities customarily obtained subsequent to transfer of title and all costs and fees associated therewith. Except as otherwise specifically provided, all fees, costs and
expenses incurred by Buyer or Seller in negotiating this Agreement or in consummating the transactions contemplated by this Agreement shall be paid by the party incurring the same, including, without limitation, legal and accounting fees, costs and
expenses. 

  
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 11.16 Removal of Signs and Markers. Seller may either remove its name and signs from
Seller-operated facilities and personal property or require Buyer, at Buyer’s cost, to do so for those Assets that Buyer will operate. If Seller’s name or signs remain on the Assets after Seller ceases to be operator and Buyer has become
operator, Buyer shall (a) remove any remaining signs and references to Seller within ninety (90) days after Seller ceases to be operator or such earlier time as may be required by applicable regulations, (b) install signs complying
with applicable governmental regulations, including signs showing Buyer as operator of the Assets it operates and (c) upon Seller’s request after Closing, notify Seller of the removal and installation. Seller reserves a right of access to
the Assets for a period of 120 days after it ceases to be operator to remove its signs and name from all facilities and personal property, or to confirm that Buyer has done so for the Assets operated by Buyer. 

11.17 CONSPICUOUSNESS/EXPRESS NEGLIGENCE. THE DEFENSE, INDEMNIFICATION AND HOLD HARMLESS PROVISIONS PROVIDED FOR IN THIS AGREEMENT
SHALL BE APPLICABLE WHETHER OR NOT THE DAMAGES, LOSSES, INJURIES, LIABILITIES, COSTS OR EXPENSES IN QUESTION AROSE SOLELY OR IN PART FROM THE ACTIVE, PASSIVE OR CONCURRENT NEGLIGENCE, STRICT LIABILITY, BREACH OF DUTY (STATUTORY OR OTHERWISE) OR
OTHER FAULT OF ANY INDEMNIFIED PARTY, OR FROM ANY PRE-EXISTING DEFECT, EXCEPT TO THE EXTENT CAUSED BY THE INDEMNIFIED PARTY’S GROSS NEGLIGENCE OR WILLFUL MISCONDUCT. BUYER AND SELLER ACKNOWLEDGE THAT THIS STATEMENT COMPLIES WITH THE EXPRESS
NEGLIGENCE RULE AND IS CONSPICUOUS. 
 11.18 Waiver of Certain Damages; Limitation on Seller’s Indemnity. Each party
irrevocably waives and agrees not to seek indirect, consequential, punitive or exemplary damages of any kind in connection with any dispute arising out of or related to this Agreement or the breach hereof. For the avoidance of doubt, this
Section 11.18 does not diminish or otherwise affect the parties’ rights and obligations to be indemnified against, and provide indemnity for, indirect, consequential, punitive or exemplary damages awarded to any third party for
which indemnification is provided in this Agreement or Seller’s right to receive liquidated damages, including the Deposit pursuant to the provisions of Section 10.3. 

11.19 WAIVER OF JURY TRIAL. BUYER AND SELLER HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHTS THEY MAY HAVE TO A
TRIAL BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR IN CONNECTION WITH, THIS AGREEMENT OR ANY OTHER DOCUMENT OR INSTRUMENT EXECUTED IN CONNECTION HEREWITH, OR ANY COURSE OF CONDUCT, COURSE OF DEALING, STATEMENTS
(WHETHER VERBAL OR WRITTEN), OR ACTIONS OF BUYER AND SELLER RELATED TO THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. THIS PROVISION IS A MATERIAL INDUCEMENT FOR EACH PARTY TO ENTER INTO THIS AGREEMENT. 

  
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 11.20 Section 1031 Exchange. Seller and Buyer hereby agree that Buyer shall have
the right at any time prior to Closing to assign all or a portion of its rights under this Agreement to a Qualified Intermediary (as that term is defined in Section 1.1031(k)-1(g)(4)(iii) the Treasury Regulations) or an “exchange
accommodation titleholder” (as that term is defined in Revenue Procedure 2000-37, 2002-2 C.B. 308) in order to accomplish the transaction in a manner that will comply, either in whole or in part, with the requirements of a like-kind exchange
pursuant to Section 1031 of the Internal Revenue Code of 1986, as amended (the “Code”). Likewise, Seller shall have the right at any time prior to Closing to assign all or a portion of its rights under this Agreement to a Qualified
Intermediary for the same purpose. In the event either party assigns its rights under this Agreement pursuant to this Section 11.20, such party agrees to notify the other party in writing of such assignment at least ten (10) days
before Closing. If Seller assigns its rights under this Agreement for this purpose, Buyer agrees to (i) consent to Seller’s assignment of its rights in this Agreement, and (ii) pay the Purchase Price into a qualified escrow or
qualified trust account at Closing as directed in writing. If Buyer assigns its rights under this Agreement for this purpose, Seller agrees to (i) consent to Buyer’s assignment of its rights in this Agreement, (ii) accept the Purchase
Price from the qualified escrow or qualified trust account at Closing, and (iii) at Closing, convey and assign directly to the assignee of Buyer the Assets upon satisfaction of the other conditions to Closing and the other terms and conditions
of this Agreement. Seller and Buyer acknowledge and agree that any assignment of this Agreement to a Qualified Intermediary shall not release either party from any of their respective liabilities and obligations to each other under this Agreement,
and neither party represents to the other that any particular tax treatment will be given to either party as a result thereof. In no event will either Party be liable to the other for any failure of any transaction to qualify for like-kind treatment
under Section 1031 of the Code. 

  
 48 

 EXECUTED as of the date first above written. 

 

			
	SELLER:
	
	QUANTUM RESOURCES MANAGEMENT, LLC
		
	By:	 	/s/ Mark P. Castiglione
	Name: Mark P. Castiglione
	Title: Vice President - Business Development
	
	QUANTUM RESOURCES A1, LP
		
	By:	 	/s/ Mark P. Castiglione
	Name: Mark P. Castiglione
	Title: Vice President - Business Development
	
	QAB CARRIED WI, LP
		
	By:	 	/s/ Mark P. Castiglione
	Name: Mark P. Castiglione
	Title: Vice President - Business Development
	
	QAC CARRIED WI, LP
		
	By:	 	/s/ Mark P. Castiglione
	Name: Mark P. Castiglione
	Title: Vice President - Business Development

 
			
	BLACK DIAMOND RESOURCES, LLC
		
	By:	 	/s/ Mark P. Castiglione
	Name: Mark P. Castiglione
	Title: Vice President - Business Development

 
			
	BUYER:
	
	AMERICAN MIDSTREAM CHATOM UNIT 1, LLC
		
	By:	 	/s/ Brian Bierbach
	Name: Brian Bierbach
	Title:
	
	AMERICAN MIDSTREAM CHATOM UNIT 2, LLC
		
	By:	 	/s/ Brian Bierbach
	Name: Brian Bierbach
	Title:

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