Document:

Exhibit 10.17(a)

 

SUBSCRIPTION
AGREEMENT

OF

NOBLE
ENVIRONMENTAL POWER, LLC

 

This Subscription
Agreement (the “Subscription Agreement”)
dated as of the 18th day of December, 2006 is made by and among Noble
Environmental Power, LLC, a Delaware limited liability company (the “Company”) and the undersigned (“Investor”).

 

WHEREAS, the Company desires to sell up to 40,538.25 Incentive Units,
at a price of $0.10 per unit, and up to 32,824.60 Performance Units, at a price
of $0.10 per unit, pursuant to the terms and conditions of this Subscription Agreement;

 

WHEREAS, the Investor desires to purchase from the Company, and the
Company desires to sell to the Investor, the number of Incentive Units and
Performance Units, at a price of $0.10 per Incentive Unit and $0.10 per
Performance Unit, set forth opposite the Investor’s name on the attached Exhibit A

 

In consideration of the Company’s issuance of the Incentive
Units and Performance Units in the Company to the Investor, upon the terms and
conditions set forth herein, the Investor hereby agrees and represents as
follows:

 

Section 1.  Subscription.

 

(a)           The
Investor hereby subscribes for and agrees to purchase the number of Incentive
Units and Performance Units, at a price of $0.10 per Incentive Unit and $0.10
per Performance Unit, set forth opposite the Investor’s name on the attached Exhibit A
(the “Membership Interest”).

 

(b)           The
Investor shall pay for the Membership Interest purchased by check or wire
transfer to the Company on or before January 5, 2007.

 

(c)           The
Investor acknowledges that the Investor will not be deemed a Member with
respect to the Membership Interest subscribed for by the Investor herein until
the Company accepts this Subscription Agreement and that the Company reserves
the right to accept or reject this Subscription Agreement.  Upon
the Company’s acceptance of this Subscription Agreement, the Investor
will become a Member with respect to the Membership Interest subscribed for by
the Investor herein and shall have the rights and obligations as contained in the
Amended and Restated Limited Liability Company Operating Agreement of the
Company dated March 27, 2006, as amended from time to time (the “Operating Agreement”) and Members
Agreement of the Company dated March 27, 2006, as amended from time to time
(the “Members Agreement”) with respect to
the Membership Interest subscribed for by the Investor herein.

 

(d)           The
Investor hereby adopts, accepts and agrees to be bound by all the terms and
conditions of the Operating Agreement and the Members Agreement and to perform
all obligations therein imposed upon a Member with respect to the Membership
Interest subscribed for by the Investor herein.

 

Section 2.  Representations, Warranties and Covenants. 
The Investor makes the following representations, warranties and
covenants with the intent that the same may be relied upon in determining the
Investor’s suitability to become a Member of the Company with respect to the
Membership Interest subscribed for by the Investor herein and with the
understanding that the availability of exemptions from registration of the
offering may depend upon the accuracy of such representations and
warranties.  The Investor represents,
warrants and covenants to the Company as follows:

 

(a)           Knowledge
of Terms and Conditions.  The Investor
and the Investor’s attorneys, accountants and advisors have had a reasonable
opportunity to ask questions of and receive answers from the Company (or a
person or persons acting on behalf of the Company) concerning the terms and
conditions of the offering of the Membership Interest and to obtain information
(to the extent possessed or obtainable by the Company without unreasonable
effort or expense) necessary to evaluate the merits of the investment.  All such questions have been answered to the
full satisfaction of the Investor.  The
Investor acknowledges that no oral 

 

 

representations have been made or information furnished to the Investor
or the Investor’s attorneys, accountants or advisors in connection with the
offering of the Membership Interests that is in any way inconsistent with this
Subscription Agreement.

 

(b)           Risk
Factors.  The Investor understands that an investment
in the Company involves significant risks. 
The Investor has taken full cognizance of and understands all of the
risks related to a subscription to purchase the Membership Interest.

 

(c)           Not
a Registered Offering.  The Investor
understands that, in reliance upon the Investor’s representations, warranties
and covenants, neither the offering nor the sale of the Membership Interest has
been registered under the Securities Act of 1933, as amended (the “Act”) or any applicable state
securities laws, and are being offered and sold pursuant to limited exemptions
provided in Section 4(2) of the Act and all applicable state securities
laws.  The Investor understands that no
governmental agency has recommended or endorsed the Membership Interest or made
any finding or determination relating to the adequacy or accuracy of the
fairness for investment of the Membership Interest.  The Investor was not offered or sold the
Membership Interest, directly or indirectly, by means of any form of general
solicitation or general advertising, including, without limitation, the
following:  (i) any advertisement,
article, notice or other communication published in any newspaper, magazine or
similar medium or broadcast over television or radio; or (ii) any seminar
or meeting whose attendees had been invited by any general solicitation or
general advertising.

 

(d)           Accredited
Investor.  The Investor is either an “Accredited
Investor” within the meaning of Regulation D promulgated under the Act or possesses sophistication, knowledge and
experience in financial matters. 
In making this representation and warranty, the Investor acknowledges
that he has received and carefully reviewed the definition of Accredited
Investor (as used in Regulation D), which is attached hereto as Schedule B
and incorporated herein by this reference.

 

(e)           Sophisticated
Investor.  The Investor expressly represents that: (i) the
Investor has such knowledge and experience in financial and business matters in
general, and in investments of the type of an investment in the Company in
particular, that the Investor is capable of evaluating the merits and risks of
the prospective investment; (ii) the Investor’s financial condition is
such that the Investor has no need for liquidity with respect to the Investor’s
investment in the Company to satisfy any existing or contemplated undertaking
or indebtedness; (iii) the Investor is able to bear the economic risk of
the Investor’s investment in the Company for an indefinite period of time,
including the risk of losing all of the Investor’s investment; (iv) the
Investor has no need for a current cash return with respect to the Investor’s
investment in the Company; and (v) by reason of the Investor’s knowledge
and experience in business and financial matters, the Investor has acquired the
capacity to protect his own interest in investments of this nature and is
capable of evaluating the risks, merits and other facets of this investment.

 

(f)            Purchase
for Investment.  The Membership
Interest is being purchased solely for the Investor’s own account for
investment purposes only and not for the account of any other person and not
for distribution, assignment or resale to others, and no other person has a
direct or indirect beneficial interest in such Membership Interest.

 

(g)           Restrictions
on Transfer.  The Investor understands and agrees that
because the offer and sale of the Membership Interest subscribed for have not
been registered under federal or state securities laws, the Membership Interest
acquired may not at any time be sold or otherwise disposed of by the Investor
unless it is registered under the Act or there is applicable to such sale or
other disposition one of the limited exemptions from registration set forth in
the Act, the rules and regulations of the Securities and Exchange
Commission thereunder, and under applicable state law.  The Investor further understands that the
Company has no obligation or present intention to register the Membership
Interest or to permit its sale other than in strict compliance with the Act,
the Securities and Exchange Commission rules and regulations thereunder
and under applicable state law.  The
Investor understands that he may not be able to sell or dispose of the Membership
Interest and that there will be no public market for such Membership Interest.

 

(h)           Tax
Consequences of Investment.  The Investor
understands that the tax consequences of an investment in the Membership
Interest depends upon the individual circumstances of the owner of such Membership
Interest.  The Investor further
understands that there can be no assurance that the Internal Revenue 

 

 

Code of 1986, as amended, or the Treasury Regulations promulgated
thereunder will not be amended or applied in such a manner as to deprive the
Investor of some or all of the tax benefits which the Investor might otherwise
expect to receive from investment in the Company.

 

(i)            Residence.
 The Investor, if an individual, is a bona fide
resident of the state set forth in the address under his or her name on Exhibit A.

 

(j)            Representations,
Warranties and Covenants.  All of the
representations, warranties and covenants set forth in this Section 2 and
as set forth in the Operating Agreement are true, accurate and complete as of
the date hereof and shall be true, accurate and complete as of the date of the
acceptance hereof by the Company.  If in
any respect the representations, warranties and covenants shall not be true, complete
and accurate prior thereto, the Investor will give written notice of that fact
to the Company, specifying which representations and warranties are not true
and accurate and the reasons therefor.

 

Section 3.  Indemnification. 
The Investor shall indemnify, defend and hold harmless the Company and
its officers, employees, managers, members and agents from and against all
damages, losses, liabilities, costs and expenses (including, without
limitation, reasonable attorneys’ fees) which they may incur by reason of the
failure of the Investor to fulfill any of the terms or conditions of this
Subscription Agreement, by reason of any misrepresentation made by the Investor
or by reason of any breach of any representation or warranty made by the
Investor herein.

 

Section 4.  Nontransferability. 
The Investor may not transfer or assign this Subscription Agreement or
any of the Investor’s interest herein. 
Any transfer or assignment of the Membership Interest acquired pursuant
hereto shall be made only in accordance with all applicable laws and the
Operating Agreement and Members Agreement.

 

Section 5.  Irrevocability; Binding on Successors and
Assigns.  The Investor may not cancel, terminate or
revoke this Subscription Agreement or any agreement made by it hereunder. This
Subscription Agreement shall survive the bankruptcy or dissolution of the
Investor and shall be binding upon the Investor’s successors and assigns.  The Investor further acknowledges and agrees
that the Company may, in its sole discretion and for any reason whatsoever,
reject the Investor’s subscription to purchase the Membership Interest pursuant
to the terms of this Subscription Agreement.

 

Section 6.  Entire Agreement. 
This Subscription Agreement, the Operating Agreement and the Members
Agreement, including all exhibits thereto, constitute the entire agreement
among the parties hereto with respect to the subject matter hereof.  This Subscription Agreement may be amended
only by a writing executed by the parties hereto.

 

Section 7.  Governing Law. 
This Subscription Agreement shall be enforced, governed and construed in
all respects in accordance with the laws of the State of Delaware without
regard to conflict of law principle.

 

Section 8.  Counterparts. 
This Subscription Agreement may be executed in any number of original or
facsimile counterparts, and each such counterpart hereof shall be deemed to be
an original instrument, but all such counterparts together shall constitute but
one agreement.

 

Section 9.  Expenses. 
Notwithstanding Section 35 of the Operating Agreement or Section 2.9
of the Members Agreement, the Investor shall be responsible for all of his or
her expenses including any fees, disbursements and other charges of counsel, incurred
in connection with the preparation, execution and delivery of this Subscription
Agreement and the consummation of the transactions contemplated hereby.

 

Section 10.  Consent of Spouses.  If
requested by the Company, the Investor shall cause his or her spouse to execute
and deliver a separate consent and agreement substantially in the form attached
as Schedule C hereto (a “Spousal Consent”). The signature of a
spouse on a Spousal Consent shall not be construed as making such spouse a
Member of the Company or a party to this Subscription Agreement, the Members
Agreement or the Operating Agreement except as may otherwise be set forth in
such consent. Each Member who is an individual will certify his or her marital
status to the Company at the Company’s request.

 

 

Section 11.            Further Assurances.

 

Each party hereto shall do and perform or cause to be
done and performed all such further acts and things and shall execute and
deliver all such other agreements, certificates, instruments, and documents as
any other party hereto reasonably may request in order to carry out the
provisions of this Subscription Agreement and the consummation of the
transactions contemplated hereby.

 

Section 12.            Consent to Transfer by CC Hinckley Co, LLC.  The undersigned hereby consents to the
transfer by CC Hinckley Co, LLC of up to 750 Preferred Units (“Preferred
Units”) of the Company at a price of $100.00 per unit to Paul H. Brown on or
about December 1, 2006 pursuant to Section 2.3 of the Members Agreement.  The undersigned hereby waives his or her
rights under Section 2.3 of the Members Agreement to purchase his or her
pro-rata portion of such Preferred Units.

 

[SIGNATURE PAGE TO FOLLOW]

 

 

The undersigned has executed this Subscription
Agreement as of the date first set forth above.

 

 

	
   

  	
   

  
	
   

  	
  [Investor]

  

 

SUBSCRIPTION AGREEMENT ACCEPTED AND
APPROVED:

 

NOBLE ENVIRONMENTAL POWER, LLC

 

 

	
  By:

  	
   

  	
   

  

 

 

SCHEDULE A

 

Schedule of Membership Interests Purchased
by the Investor

 

	
  Name and Address

  	
   

  	
  Number of Incentive

  Units

  	
   

  	
  Capital

  Contribution for

  Incentive Units

  	
   

  	
  Number of

  Performance

  Units

  	
   

  	
  Capital

  Contribution for

  Performance

  Units

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

SCHEDULE B

 

Definition of Accredited Investor

 

Reg. §230-501.  As used in
Regulation D, the following terms shall have the meaning indicated:

 

a.               Accredited investor. Accredited
investor shall mean
any person who comes within any of the following categories, or who the issuer
reasonably believes comes within any of the following categories, at the time
of the sale of the securities to that person:

 

1.               Any bank as defined in of the Act, or any savings and
loan association or other institution as defined in section 3(a)(5)(A) of
the Act whether acting in its individual or fiduciary capacity; any broker or
dealer registered pursuant to of the Securities Exchange Act of 1934; any
insurance company as defined in of the Act; any investment company registered
under the Investment Company Act of 1940 or a business development company as
defined in of that Act; any Small Business Investment Company licensed by the
U.S. Small Business Administration under section 301(c) or (d) of the
Small Business Investment Act of 1958; any plan established and maintained by a
state, its political subdivisions, or any agency or instrumentality of a state
or its political subdivisions, for the benefit of its employees, if such plan
has total assets in excess of $5,000,000; any employee benefit plan within the
meaning of the Employee Retirement Income Security Act of 1974 if the
investment decision is made by a plan fiduciary, as defined in section 3(21) of
such act, which is either a bank, savings and loan association, insurance
company, or registered investment adviser, or if the employee benefit plan has
total assets in excess of $5,000,000 or, if a self-directed plan, with
investment decisions made solely by persons that are accredited investors;

 

2.               Any private business development company as defined in
of the Investment Advisers Act of 1940;

 

3.               Any organization described in, corporation,
Massachusetts or similar business trust, or partnership, not formed for the
specific purpose of acquiring the securities offered, with total assets in
excess of $5,000,000;

 

4.               Any director, executive officer, or general partner of
the issuer of the securities being offered or sold, or any director, executive
officer, or general partner of a general partner of that issuer;

 

5.               Any natural person whose individual net worth, or
joint net worth with that person’s spouse, at the time of his purchase exceeds
$1,000,000;

 

6.               Any natural person who had an individual income in
excess of $200,000 in each of the two most recent years or joint income with
that person’s spouse in excess of $300,000 in each of those years and has a
reasonable expectation of reaching the same income level in the current year;

 

7.               Any trust, with total assets in excess of $5,000,000,
not formed for the specific purpose of acquiring the securities offered, whose
purchase is directed by a sophisticated person as described in and

 

8.               Any entity in which all of the equity owners are
accredited investors.Exhibit 10.17(b)

 

SCHEDULE OF PURCHASERS

 

Membership Interests Purchased by the Investor Pursuant to Subscription
Agreements

dated December 18, 2006

 

	
  Investor

  	
   

  	
  Number of

  Incentive Units

  	
   

  	
  Capital

  Contribution for

  Incentive Units

  	
   

  	
  Number of

  Performance

  Units

  	
   

  	
  Capital

  Contribution for

  Performance

  Units

  	
   

  
	
  Charles C. Hinckley

  	
   

  	
  2,893.5

  	
   

  	
  289.35

  	
   

  	
  9,443.6

  	
   

  	
  944.36

  	
   

  
	
  John M. Quirke

  	
   

  	
  2,893.5

  	
   

  	
  289.35

  	
   

  	
  9,443.6

  	
   

  	
  944.36

  	
   

  
	
  Elizabeth Grisaru

  	
   

  	
  7,587.9

  	
   

  	
  758.79

  	
   

  	
  3,993.6

  	
   

  	
  399.36

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