Document:

Equity Contribution, Subordination, and Share Retention Agreement

 Exhibit 10.2 
 EXECUTION VERSION 
  

 
  

Equity Contribution, Subordination, and Share 
 Retention Agreement 
 among 

ORPOWER 4 INC., 
 as Borrower 
 ORMAT TECHNOLOGIES, INC., 

as Sponsor, 

ORMAT INTERNATIONAL, INC., 
 as Shareholder, 
 ORMAT HOLDING CORP., 

as Intermediate Shareholder, 
 and 
 OVERSEAS PRIVATE INVESTMENT CORPORATION, 

as Lender 

Dated as of August 23, 2012 
 OPIC/615-2011-039-IG 
  

 
  

 TABLE OF CONTENTS 

 

							
	 	  	 	  	Page	 
	 Section 1.     Definitions; Rules of Interpretation.
	  	 	1	  
		
	 1.01     Defined Terms.
	  	 	1	  
		
	 1.02     Rules of Interpretation.
	  	 	3	  
		
	 Section 2.     Equity Contribution and Support Obligations of the
Shareholder.
	  	 	3	  
		
	 2.01     Equity Contributions.
	  	 	3	  
		
	 2.02     Tax VAT/IDF Support.
	  	 	4	  
		
	 2.03     Taxes in Respect of Subordinated Loans.
	  	 	4	  
		
	 2.04     Mechanics for Funding Equity Contributions.
	  	 	4	  
		
	 2.05     No Obligation.
	  	 	4	  
		
	 Section 3.     Subordination and Deferment Provisions.
	  	 	5	  
		
	 3.01     Subordination.
	  	 	5	  
		
	 3.02     Written Instrument(s).
	  	 	5	  
		
	 3.03     Payments other than in Bankruptcy.
	  	 	5	  
		
	 3.04     Deferral.
	  	 	5	  
		
	 3.05     No Acceleration.
	  	 	5	  
		
	 3.06     No Commencement of Any Proceeding.
	  	 	5	  
		
	 3.07     No Set-Off.
	  	 	6	  
		
	 3.08     Subordination in Bankruptcy.
	  	 	6	  
		
	 3.09     Rights of Subrogation.
	  	 	6	  
		
	 3.10     Assignment of Subordinated Affiliate Loans in favor of OPIC.
	  	 	6	  
		
	 3.11     No Other Assignment.
	  	 	7	  
		
	 3.12     No Amendment of Subordinated Affiliate Loans.
	  	 	7	  
		
	 3.13     Amounts Held in Trust.
	  	 	7	  
		
	 Section 4.     Consent and Agreement; Etc.
	  	 	7	  
		
	 4.01     Assignment of this Agreement.
	  	 	7	  
		
	 Section 5.     Share Retention Obligations.
	  	 	8	  
		
	 5.01     Share Retention Undertaking.
	  	 	8	  
		
	 5.02     Restrictions on Share Transfer Recordation — Notice of Transfers.
	  	 	9	  
		
	 5.03     Notification of Transfer Restrictions.
	  	 	9	  

  

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	 Section 6.     Restricted Payments; Shareholder Payments.
	  	 	10	  
		
	 Section 7.     Covenants.
	  	 	10	  
		
	 7.01     Organizational Documents.
	  	 	10	  
		
	 7.02     Bankruptcy; Insolvency; Winding Up.
	  	 	10	  
		
	 7.03     Financial Statements.
	  	 	10	  
		
	 Section 8.     Representations and Warranties.
	  	 	11	  
		
	 8.01     Existence and Power.
	  	 	11	  
		
	 8.02     Adequate Financial Means.
	  	 	11	  
		
	 8.03     Authority.
	  	 	11	  
		
	 8.04     No Default.
	  	 	11	  
		
	 8.05     Financial Condition.
	  	 	11	  
		
	 8.06     Bankruptcy; Insolvency; Winding-Up.
	  	 	11	  
		
	 8.07     Share Capital.
	  	 	12	  
		
	 8.08     Corrupt Practices; Anti-Money Laundering; Anti-Corruption Handbook.
	  	 	12	  
		
	 8.09     VAT/IDF Matters
	  	 	12	  
		
	 Section 9.     Miscellaneous.
	  	 	12	  
		
	 9.01     No Waiver.
	  	 	12	  
		
	 9.02     Notices.
	  	 	13	  
		
	 9.03     Expenses.
	  	 	13	  
		
	 9.04     Successors and Assigns.
	  	 	14	  
		
	 9.05     Survival of Agreements.
	  	 	14	  
		
	 9.06     Integration; Amendments.
	  	 	14	  
		
	 9.07     Severability.
	  	 	14	  
		
	 9.08     Counterparts.
	  	 	14	  
		
	 9.09     Governing Law.
	  	 	14	  
		
	 9.10     Waiver of Jury Trial.
	  	 	14	  
		
	 9.11     Jurisdiction and Consent to Suit; Waivers.
	  	 	14	  
		
	 9.12     Arbitration.
	  	 	15	  
		
	 9.13     Relevant Party Consent to Suit; Exclusive Form Selection for Certain Actions.
	  	 	16	  
		
	 9.14     Waiver of Litigation Payments.
	  	 	17	  
		
	 9.15     Further Assurances.
	  	 	17	  
		
	 9.16     English Language.
	  	 	17	  

  

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 This EQUITY CONTRIBUTION, SUBORDINATION AND SHARE RETENTION AGREEMENT (this
“Agreement”), dated as of August 23, 2012, is by and among: 
  

	(1)	ORPOWER 4 INC., a limited liability company incorporated and existing under the laws of the Cayman Islands and registered in the Republic of Kenya as a foreign
company (the “Borrower”); 

  

	(2)	ORMAT TECHNOLOGIES, INC., a corporation organized and existing under the laws of the state of Delaware, United States of America (the
“Sponsor”); 

  

	(3)	ORMAT INTERNATIONAL, INC., a corporation organized and existing under the laws of the state of Delaware, United States of America (the
“Shareholder”); 

  

	(4)	ORMAT HOLDING CORP., an exempted company with limited liability incorporated under the laws of the Cayman Islands (the “Intermediate
Shareholder”); and 

  

	(5)	OVERSEAS PRIVATE INVESTMENT CORPORATION, an agency of the United States of America (“OPIC”). 

WHEREAS, the Borrower is undertaking the design, construction, completion, ownership and operation of the Project; 

WHEREAS, in order to finance the Project and certain other costs and expenditures associated with the development of the Project,
the Borrower and OPIC have, contemporaneously herewith, entered into a Finance Agreement (the “Finance Agreement”), pursuant to which OPIC has agreed, subject to the terms and conditions contained therein, to lend to the Borrower
loans (collectively, the “Loans” ) in the aggregate principal amount of up to $310,000,000; 

WHEREAS, in consideration for OPIC entering into the Finance Agreement, the Shareholder has agreed, directly or indirectly through
the Intermediate Shareholder, to make certain equity contributions to the Borrower, as set forth in and subject to the terms and conditions of this Agreement; and 
 WHEREAS, it is a condition precedent to the making of the Loans that this Agreement shall have been executed and delivered by the parties hereto. 

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt and adequacy of which
are hereby acknowledged, the parties hereto agree as follows: 
 Section 1. Definitions; Rules of Interpretation.

 1.01 Defined Terms. Unless otherwise defined herein, capitalized terms used herein and not otherwise defined shall
have the meanings set forth in the Finance Agreement. For purposes of this Agreement, the following terms shall have the following meanings: 

  

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 “Actual Equity Contributions” means, as of any date of determination, for
the Shareholder, an amount equal to the aggregate amount of (i) Pre-Funded Equity Contributions, (ii) the aggregate amount of Project Costs paid by the Sponsor and/or its Affiliates from but excluding the Cut-Off Date to but excluding the
date of the first Disbursement less any debt drawn on account of such Project Costs incurred between the Cut-Off Date and the date of the first Disbursement as part of the first Disbursement of Tranche II and (iii) Equity Contributions made by
the Shareholder or the Intermediate Shareholder on and after the date hereof in accordance with Section 2.01(a) or Section 2.01(b). 
 “Control” means, with respect to any Person, any other Person having the power, directly or indirectly, (a) to appoint a majority of the administrators (directors and/or officers) of
such Person, (b) to approve the corporate matters of such Person and (c) to direct or cause the direction of the management and policies of such Person, whether through the ownership of voting securities, by contract or otherwise.

 “Economic Ownership Interest” means the beneficial ownership interest in the Share Capital of a Person
(which must include the right to receive a share of dividends, profits and similar amounts distributed by such Person) held by another Person or Persons, directly or indirectly on a fully diluted basis. 

“Equity Contribution” means an equity contribution made in accordance with Section 2.01(a) or Section 2.01(b).

 “Equity Funding Date” means in any month during which the Borrower shall have delivered a Disbursement
Request to be made during such month, fifteen (15) Business Days prior to the date of first Disbursement and at least ten (10) Business Days prior to any subsequent Disbursement specified therein. 

“IDF Fees” means any fees payable to the Kenya Revenue Authority by the Borrower in respect of one or more Import
Declaration Forms issued in relation to the importation of goods into Kenya by the Borrower. 
 “Letter Regarding
VAT/IDF” means the letter entitled “Exemption from Customs Duty, VAT and IDF Fees — Olkaria III Geothermal Power Project” issued to the Permanent Secretary, Minister of Energy, by the Republic of Kenya, Office of the Deputy
Prime Minister and Ministry of Finance dated March 31, 2011. 
 “Pre-Funded Equity Contribution” means
US$81,862,000. 
 “Relevant Parties” means, collectively, the Borrower and each Shareholder Party and
“Relevant Party” means any of them. 
 “Required Equity Amount” means $116,765,000. 

“Share Capital” means, with respect to any Person, all shares of capital stock of any class, shares of any class, or
other ownership interests of any kind in such Person, and any and all warrants, options, subscription bonus or other rights to purchase, subscribe for or acquire any title to any of the foregoing. 

  

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 “Shareholder Parties” means, collectively, the Sponsor, the Shareholder and
the Intermediate Shareholder, and “Shareholder Party” means any of them. 
 “Subordinated Affiliate
Loans” means the Subordinated Affiliate Loans to be provided to the Borrower by the Shareholder or any Affiliates thereof subject to the terms hereof. 
 “Transfer” means, with respect to any Share Capital or Economic Ownership Interest, as the context may require, (i) a sale, assignment, transfer, disposition, Lien or granting of an
option, in each case, whether actual or contingent, of or over such Share Capital or Economic Ownership Interest or (ii) to sell, assign, transfer, pledge, grant an option over or otherwise dispose of, or encumber or permit any Lien to exist
over such Share Capital or Economic Ownership Interest. 
 “Unfunded Equity Commitment” means, as of any date
of determination, with respect to the Shareholder, the excess, if any, of (x) the Required Equity Amount over (y) the Actual Equity Contributions. 
 “VAT/IDF Duties” means any duties, value added taxes or IDF Fees payable to a Governmental Authority in Kenya in respect of those items of plant, materials and equipment listed in the
Letter Regarding VAT/IDF, including, without limitation, any interest and any penalties, additions to tax or additional amounts imposed by any Governmental Authority in respect of any of the foregoing. 

1.02 Rules of Interpretation. The principles of interpretation and construction set forth in Section 2 of Schedule X to the
Finance Agreement shall apply to, and are hereby incorporated by reference as if fully set forth in, this Agreement. 

Section 2. Equity Contribution and Support Obligations of the Shareholder. 

2.01 Equity Contributions. 
 (a) If in connection with any Disbursement of the Loans an equity contribution is required to cause the Debt to Equity Ratio on the relevant Closing Date (calculated assuming that the Disbursement
proposed to be made on such Closing Date is made) to be not greater than 75:25, then, on the relevant Equity Funding Date, the Shareholder shall make, or shall cause the Intermediate Shareholder to make, an equity contribution in an amount equal to
the lesser of (A) the amount of equity contributions required to cause the Debt to Equity Ratio on the relevant Closing Date (calculated assuming that the Disbursement proposed to be made on such Closing Date is made) to be not greater than
75:25 and (B) the Unfunded Equity Commitment. 
 (b) If at any time the Shareholder elects to make an equity contribution
to the Borrower that is not in connection with a Disbursement of the Loan, it shall be entitled to do so by making such equity contribution, or causing the Intermediate Shareholder to make, such Equity Contribution at any time. 

  

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 (c) Notwithstanding anything else to the contrary in this Agreement or any other
Transaction Document, in no event shall the Shareholder or the Intermediate Shareholder be required to make Equity Contributions in an aggregate amount in excess of the Required Equity Amount. 

2.02 VAT/IDF Support. If the Borrower is required to pay any VAT/IDF Duties, the Shareholder shall make, or shall cause the
Intermediate Shareholder to make, an equity contribution in an amount equal to any such VAT/IDF Duties not less than ten (10) Business Days before any such VAT/IDF Duties are due. 

2.03 Taxes in Respect of Subordinated Loans. After the date of the first Disbursement, if the Borrower is precluded by the terms
of the DFI Subordination Agreement from paying any amount due in respect of the Subordinated DFI Loan but is required by Applicable Law to pay any Taxes in respect of any such amount that is accrued or owing in respect of the Subordinated DFI
Indebtedness, the Shareholder shall make, or shall cause the Intermediate Shareholder to make, an equity contribution in an amount equal to any such Taxes not less than ten (l0) Business Days before any such Taxes are due. 

2.04 Mechanics for Funding Equity Contributions. 
 (a) The Shareholder shall be entitled to make or effect, or cause to be made or effected, any Equity Contribution hereunder through any combination of (i) a subscription and payment in cash by the
Intermediate Shareholder for additional shares in the Share Capital of the Borrower and (ii) Subordinated Affiliate Loans to the Borrower. The Shareholder hereby agrees that all Equity Contributions through any combination of (i) a
subscription and payment in cash by the Intermediate Shareholder for additional shares in the Share Capital of the Borrower and (ii) Subordinated Affiliate Loans to the Borrower shall always be subject and subordinate in all respects to the
interest in the Secured Obligations as set forth in Section 3. 
 (b) From the Cut-Off Date to the date of the first
Disbursement, the Shareholder shall provide such evidence as OPIC shall reasonably require (and shall afford OPIC at least twenty (20) Business Days to review any such evidence) to validate any equity contribution made pursuant to
Section 2.01(a) or 2.01(b). After the date of the first Disbursement, all equity contributions shall be made by deposit of immediately available funds into the Equity Sub-Account. 

(c) The obligation of the Shareholder or Intermediate Shareholder to make any equity contribution hereunder shall cease on the Project
Completion Date. 
 2.05 No Obligation. The parties hereto acknowledge that OPIC shall not have any obligation to call
for the provision of funds to maintain the Debt to Equity Ratio in accordance with Section 2.01(a) and that OPIC shall not be liable to any party for not calling any funds or not calling sufficient funds under this Section 2. 

  

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 Section 3. Subordination and Deferment Provisions. 

3.01 Subordination. Notwithstanding any provision to the contrary contained in any agreement relating to any Subordinated
Affiliate Loan, so long as any amount of the Loans remains available for disbursement by OPIC and, thereafter, until all Secured Obligations have been paid in full, the Subordinated Affiliate Loans and all other obligations of the Borrower to the
Shareholder (or any of its Affiliates) shall be subordinated to the Secured Obligations as provided herein. 
 3.02 Written
Instrument(s). Each Subordinated Affiliate Loan shall be in the form of a non-interest bearing (unless otherwise agreed by OPIC) long-term unsecured Subordinated Affiliate Loan evidenced by a written instrument or instruments in form and
substance satisfactory to OPIC. 
 3.03 Payments other than in Bankruptcy. No payment of the principal of, interest on,
or fees with respect to any Subordinated Affiliate Loan shall be made at any time by the Borrower except from amounts that would otherwise be available for distribution pursuant to Section 7.04 (Restricted Payments and Shareholder
Payments) of the Finance Agreement. 
 3.04 Deferral. Payments of any amount in respect of any Subordinated Affiliate
Loan not paid by reason of Section 3.03 will be deferred until such time as the same can be paid in accordance with the foregoing provisions of this Section 3. Any such deferral shall not constitute a default under such Subordinated
Affiliate Loan. 
 3.05 No Acceleration. The Shareholder may not (and the Shareholder shall procure that none of its
Affiliates may, as applicable) accelerate the repayment of any Subordinated Affiliate Loan without the prior written consent of OPIC unless the Secured Obligations have been accelerated following an Event of Default described in Section 8.01(m)
of the Finance Agreement. Any Subordinated Affiliate Loan the repayment of which has been accelerated as permitted by this Section 3.05 shall nonetheless remain subject to the other provisions of this Section 3. 

3.06 No Commencement of Any Proceeding. Until payment in full of the Secured Obligations, the Shareholder shall not (and the
Shareholder shall procure that none of its Affiliates shall, as applicable) claim, demand, require, commence any action or proceeding of any kind against the Borrower (including, without limitation, bringing an action, petition or proceeding against
the Borrower under any bankruptcy or similar laws of any jurisdiction, and joining in any such action, petition or proceeding) whether by the exercise of the right of set-off, counterclaim or of any similar right or otherwise howsoever, to obtain or
with a view to obtaining any payment or reduction of or in respect of any Shareholder Loan; provided, however, that if OPIC files a claim against the Borrower for payment, the Shareholder (or any one or more of its Affiliates,
as applicable) shall have the right to file a claim against the Borrower if and to the extent the filing of such claim is necessary to preserve its rights to receive payments under any Subordinated Affiliate Loan, provided that any
such claim and right to receive any such payment under any Subordinated Affiliate Loan shall, in all cases, be subordinated in all respects to the right of OPIC to receive payment in full of the Secured Obligations as set forth in this Agreement.

  

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 3.07 No Set-Off. The Shareholder shall not (and the Shareholder shall procure that
none of its Affiliates shall, as applicable) set-off, counterclaim or otherwise reduce any payment obligation of the Shareholder (or any of its Affiliates, if applicable) to the Borrower against any payment that is required to be deferred under the
provisions of this Section 3 until all the Secured Obligations have been repaid. 
 3.08 Subordination in
Bankruptcy. Upon any distribution of assets in connection with any dissolution, winding up, liquidation or reorganization of the Borrower (whether in bankruptcy, insolvency or receivership proceedings or otherwise) or upon an assignment for the
benefit of creditors of the Borrower: 
 (a) all Secured Obligations shall be paid in full before any amount on account of any
Subordinated Affiliate Loan is paid; and 
 (b) until payment in full of the Secured Obligations, any payment or distribution
of assets of the Borrower of any kind or character, whether in cash, property or securities, to which the Shareholder (or any of its Affiliates, if applicable) would be entitled in respect of any Subordinated Affiliate Loan except for the provisions
of this Section 3, shall instead be paid by the liquidator or agent or other person making such payment or distribution, whether a trustee in bankruptcy, a receiver or liquidating trustee or other trustee or agent, directly to OPIC. OPIC shall
be entitled to receive and collect on behalf of the Shareholder (or any of its Affiliates, if applicable) any and all such payments and distributions and give acquittance therefor, and to file any claim, proof of claim or other similar instrument
and take such other action (including acceptance or rejection of any plan of reorganization or arrangement) in its own name or in the name of the Shareholder (or its Affiliates, if applicable) in respect of such Subordinated Affiliate Loans as
directed by OPIC for the enforcement of this Section 3, provided, that no provision of this clause (b) shall, or shall be construed to, impose any obligation on OPIC to take or refrain from taking any action or pursue any claim on
behalf of the Shareholder (or any of its Affiliates, if applicable), and the Shareholder hereby waives (and shall cause its Affiliates, as applicable, to waive) any claim or cause of action it may otherwise have against OPIC as a result of any
action taken or not taken by OPIC to enforce any and all claims in respect of any amount on account of any Subordinated Affiliate Loan. 
 3.09 Rights of Subrogation. The Shareholder shall not (and the Shareholder shall procure that none of its Affiliates shall, as applicable), in respect of any payment or distribution made to OPIC on
account of any Subordinated Affiliate Loan, seek to enforce repayment, obtain the benefit of any Lien created by the Security Documents or exercise any other rights or legal remedies of any kind that may accrue to the Shareholder (or its Affiliates,
if applicable) against the Borrower, whether by way of subrogation, offset, counterclaim or otherwise, whether or not such rights or legal remedy arise in equity or under contract, statute or common law, in respect of such payment or distribution
until payment in full of the Secured Obligations. 
 3.10 Assignment of Subordinated Affiliate Loans in favor of OPIC.
All right, title and interest of the Shareholder (or any of its affiliates, if applicable) in, to and under each Subordinated Affiliate Loan shall be assigned to OPIC pursuant to a security agreement in form and substance acceptable to OPIC.

  

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 3.11 No Other Assignment. The Shareholder shall not (and the Shareholder shall
procure that none of its Affiliates shall, as applicable), without the prior written consent of OPIC, assign, transfer, encumber or otherwise dispose of all or part of its interest in any Subordinated Affiliate Loan to any Person other than a direct
or indirect wholly-owned subsidiary of the Sponsor; provided that any such Person shall have entered into a subordination agreement with OPIC including the terms set forth in this Section 3 or otherwise acceptable to OPIC. 

3.12 No Amendment of Subordinated Affiliate Loans. The Shareholder shall not (and the Shareholder shall procure that none of its
Affiliates shall, as applicable), without the prior written consent of OPIC, terminate, amend or grant any waiver in respect of any document or instrument evidencing any Subordinated Affiliate Loan in any manner that could violate any provision of
this Article 3 or could have an adverse effect on the Borrower. 
 3.13 Amounts Held in Trust. If, for any reason
whatsoever, the Shareholder (or any of its Affiliates, if applicable) receives any payment or distribution contrary to the provisions of this Section 3, then the Shareholder shall (and shall cause its Affiliates, if applicable to) hold the same
in trust for OPIC, promptly notify OPIC of the receipt of such payment or distribution and promptly pay the amount of such payment or distribution to OPIC or, if OPIC so elects, to any bank nominated by OPIC, to hold for the account of OPIC. Any
amount so received by OPIC or its nominee may be applied towards the payment of any amount outstanding under the Finance Agreement, any Note or any other Financing Document, in such manner as directed by OPIC. 

Section 4. Consent and Agreement; Etc. 
 4.01 Assignment of this Agreement. 
 (a) Each of the Shareholder and the
Intermediate Shareholder acknowledge receipt of the New York Security Agreement and consents in all respects to the assignment thereunder (subject to the terms thereof) of all of the Borrower’s right, title and interest in, to and under this
Agreement, including, without limitation, all of the Borrower’s rights to receive payments or other contributions under or with respect to this Agreement and all payments and other contributions due and to become due to the Borrower under or
with respect to this Agreement, whether as contractual obligations, damages or otherwise. 
 (b) Each of the Shareholder and
the Intermediate Shareholder acknowledge and agree, for the benefit of OPIC, that, pursuant to and in accordance with the Security Documents, OPIC and any permitted assignee(s) or designee(s) thereof shall be entitled to exercise any and all rights
of the Borrower under this Agreement in accordance with the terms thereof (in their own names or in the name of the Borrower), and each of the Shareholder and Intermediate Shareholder shall comply in all respects with such exercise. Without limiting
the generality of the foregoing, OPIC and any assignee(s) or designee(s) thereof shall have the full right and power to enforce directly against such Shareholder Party all obligations of such Shareholder Party under this Agreement and otherwise to
exercise all remedies hereunder and to make all demands and give all notices and make all requests required or permitted to be made by the Borrower (in its own name or in the name of the Borrower) under this Agreement. 

  

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 Section 5. Share Retention Obligations. 

5.01 Share Retention Undertaking. 
 (a) At all times before the Closing Date on which the final Tranche II Disbursement is made: 
 (i) the Sponsor shall maintain its listing on the New York Stock Exchange; 
 (ii)
the Sponsor shall own, directly or indirectly, 100% of the Share Capital of and Economic Ownership Interest in the Shareholder; and 
 (iii) the Shareholder shall own, directly or indirectly, 100% of the Share Capital of and Economic Ownership Interest in the Intermediate Shareholder. 

(b) At all times from the Closing Date on which the final Tranche II Disbursement is made until the Project Completion Date: 

(i) the Sponsor shall (x) Control the Shareholder and (y) own, directly or indirectly, at least 50.1% of the Share Capital of
and Economic Ownership Interest in the Shareholder; 
 (ii) the Shareholder shall (x) Control the Intermediate Shareholder
and (y) own, directly or indirectly, at least 50.1% of the Share Capital of and Economic Ownership Interest in the Intermediate Shareholder; and 
 (iii) the Intermediate Shareholder shall own, directly or indirectly, 100% of the Share Capital of and Economic Ownership Interest in the Borrower. 

(c) At all times from and after the Project Completion Date, the Shareholder shall (x) Control the Borrower and (y) own,
directly or indirectly, at least 50.1% of the Share Capital of and Economic Ownership Interest in the Borrower. 
 (d) No
Shareholder Party shall Transfer its ownership of the Share Capital of or Economic Ownership Interest in the Borrower or any other Shareholder Party, as applicable, to a Person included on the OFAC List. 

(e) Each Shareholder Party and the Borrower agrees that it will not (i) make or suffer or permit to occur any Transfer of any Share
Capital or Economic Ownership Interest owned directly or indirectly by such Person in the Borrower, except as permitted in sub-clause (b) or (c) above, or (ii) suffer or permit the Borrower to issue or Transfer any of its Share
Capital or Economic Ownership Interest to any Person except in compliance with this Agreement. 

  

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 (f) Nothing contained in this Section 5.01 shall in any way affect the security
interest over the Share Capital created in favor of OPIC pursuant to the Share Pledge and any Transfer of the Share Capital of the Borrower shall be made subject to such security interest. 

(g) Without limiting Section 3.09, the parties hereto agree that any breach of the provisions of this Section 5 by any
Shareholder Party or the Borrower shall cause irreparable injury to the interests of OPIC for which monetary damages (or other remedies at law) are inadequate in view of the complexities and uncertainties in measuring the actual damages that would
be sustained by reason of such party’s noncompliance and the uniqueness of the Borrower’s business and the relationship among the parties hereto. Accordingly, the parties hereto agree that, to the extent permitted by applicable law, OPIC
may enforce the provisions of this Section 5 by specific performance or injunctive relief. 
 (h) Each Shareholder Party
and the Borrower hereby irrevocably waives, to the extent that it may do so under applicable law, any defense based on the adequacy of a remedy at law or in equity that may be asserted as a bar to the remedy of specific performance in any action
brought against it for specific performance of the obligation of such Shareholder Party to retain its Share Capital of or Economic Ownership Interest in the Borrower under this Agreement by OPIC or the Borrower or for either of their benefit by a
receiver, custodian or trustee appointed for the Borrower or in respect of all or a substantial part of the Borrower’s assets under the bankruptcy, insolvency or similar laws of any jurisdiction to which the Borrower or its assets are subject.

 5.02 Restrictions on Share Transfer Recordation — Notice of Transfers. The Borrower and each of the Shareholder
and the Intermediate Shareholder covenants with OPIC that, for so long as the provisions of Section 5.01 are in force and effect: 
 (a) to the extent permitted by law (i) with respect to the Borrower, it will not recognize any purported Transfer of the Share Capital or Economic Ownership Interest owned directly by the
Intermediate Shareholder (other than in a transaction in favor of OPIC) the Intermediate Shareholder; and (ii) with respect to the Shareholder and the Intermediate Shareholder, it will not recognize any purported Transfer of its Share Capital
owned directly by the relevant Shareholder Party (other than in a transaction in favor of OPIC), in each case, unless permitted under this Agreement or authorized in writing by OPIC; and 

(b) it shall notify OPIC promptly upon receipt of any request to register or record any Transfer of its Share Capital or any other
transaction in respect of its Share Capital, together with the details of such request, to the extent that such Transfer or other transaction would be inconsistent with the provisions of Section 5.01. 

5.03 Notification of Transfer Restrictions. 
 (a) The restrictions imposed under this Section 5 shall be recorded in the register of members of the Borrower, the Intermediate Shareholder and the Shareholder, as applicable, and noted on the share
certificates (i) issued by the Borrower to the Intermediate Shareholder and (ii) issued by the Intermediate Shareholder to the Shareholder. 

  

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 (b) The Borrower and each of the Shareholder and the Intermediate Shareholder shall deliver
evidence of the recordation and annotation required under this Section 5.03 to OPIC. 
 Section 6. Restricted
Payments; Shareholder Payments. Each Shareholder Party, solely in its capacity as a direct or indirect shareholder of the Borrower, shall cause the Borrower not to make any Restricted Payment or Shareholder Payment, except as permitted under the
Financing Documents. If a Shareholder Party receives a Restricted Payment or a Shareholder Payment from the Borrower to which it is not entitled (because such Restricted Payment or Shareholder Payment was not made in accordance with the preceding
sentence), then such Shareholder Party shall hold such Restricted Payment or Shareholder Payment (or an amount equal thereto) as depository for the benefit of OPIC and deliver the same over to OPIC upon written demand therefor by OPIC and as OPIC
may direct. If a Shareholder Party obtains knowledge that any of its Affiliates has received a Restricted Payment or a Shareholder Payment from the Borrower to which such Person is not entitled, then such Shareholder Party shall use commercially
reasonable efforts to cause such Affiliate to hold such Restricted Payment or Shareholder Payment (or an amount equal thereto) as depository for the benefit of OPIC or deposit it into the Offshore Revenue Account and deliver the same over to OPIC
upon written demand therefor by OPIC or as OPIC may direct. 
 Section 7. Covenants. Each Shareholder Party
covenants and agrees as follows: 
 7.01 Organizational Documents. The Intermediate Shareholder shall not, and the
Shareholder shall procure that the Intermediate Shareholder shall not, approve or permit the implementation of any amendment, modification, supplement or waiver of any provision of the Charter Documents of the Borrower that would violate the
provisions of the Transaction Documents. 
 7.02 Bankruptcy; Insolvency; Winding Up. The Intermediate Shareholder shall
not, and each of the Shareholder and the Sponsor shall procure that the Intermediate Shareholder shall not, take any corporate action or any other legal steps or commence any legal proceedings seeking a reorganization, moratorium, bankruptcy,
arrangement, adjustment or composition or for the appointment of a receiver, liquidator, assignee, sequestrator (or similar official) in relation to any part of the Project or the Borrower or for the winding up, dissolution or re-organization of the
Borrower or of any or all of the Borrower’s property. 
 7.03 Financial Statements. At its cost, until the Project
Completion Date, the Shareholder shall furnish to OPIC each of the following: 
 (a) within forty-five (45) days after the
end of each of the first three fiscal quarters of each fiscal year, its unaudited Financial Statements, all certified by a financial officer as being true and complete and fairly presenting in all material respects the financial position, results of
operations and cash flows of the Shareholder, as of the dates indicated and for the periods specified, subject to the absence of disclosures normally made in footnotes and to customary year-end adjustments; 

  

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 (b) within one hundred twenty (120) days after the end of each fiscal year, its
audited Financial Statements. 
 Section 8. Representations and Warranties. Each Shareholder Party, severally and
not jointly, with respect to itself only, hereby makes the applicable representations and warranties contained in this Section 8 for the benefit of OPIC, which shall survive the execution and delivery of this Agreement and the making of the
Disbursements. Each such representation and warranty shall be deemed made as of (i) the date hereof and (ii) each Closing Date. 
 8.01 Existence and Power. Such Shareholder Party (i) is a company duly incorporated or organized, validly existing, and in good standing under the laws of the jurisdiction of its
incorporation; (ii) is duly authorized to do business in each jurisdiction in which it conducts business; and (iii) has the power to own its properties, carry on its business, borrow money, create Liens on its properties, and execute,
deliver, and perform each of this Agreement and the other Transaction Documents to which it is a party. 
 8.02 Adequate
Financial Means. The Shareholder and Intermediate Shareholder (i) has capital sufficient to carry on its businesses and transactions and all businesses and transactions in which it is about to engage, (ii) is able to pay its debts as
they mature and (iii) owns property and other assets having a value, both at fair valuation and at present fair saleable value, greater than the total amount of the probable liabilities of such Shareholder Party on its debts and obligations as
they become absolute and matured. 
 8.03 Authority. Such Shareholder Party’s execution, delivery, and performance
of this Agreement and the other Transaction Documents to which it is a party: (i) have been duly authorized by all necessary corporate action and (ii) will not violate any Applicable Law. This Agreement and each of the other Transaction
Documents to which it is a party has been duly executed and delivered by it and is a legal, valid, and binding obligation of such Shareholder Party, enforceable in accordance with its terms. No Consent of any Person is required in connection with
such Shareholder Party’s execution, delivery, performance, validity, or enforceability of this Agreement and any other Transaction Document to which it is a party. 
 8.04 No Default. No Default or Event of Default has occurred and is continuing. Neither such Shareholder Party nor, to the best of such Shareholder Party’s knowledge, any other party is in
breach of any provision of any Transaction Document to which such Shareholder Party is a party, which breach could be a Material Adverse Effect. 
 8.05 Financial Condition. The Shareholder has furnished to OPIC copies of its Financial Statements as required under Section 7.03. Such Financial Statements are complete and correct and fairly
present its financial condition and results of its operations for the period then ended, subject, in the case of quarterly unaudited financial statements, to the absence of footnotes and customary year-end adjustments. The Shareholder has no
material financial obligation, contingent or otherwise, of any kind except as disclosed in such Financial Statements. 
 8.06
Bankruptcy; Insolvency; Winding-Up. Such Shareholder Party has not taken any corporate action and no other legal steps have been taken or legal proceedings have been commenced or, to the best of its knowledge, threatened against it seeking a
reorganization, 

  

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moratorium, bankruptcy, arrangement, adjustment or composition or for the appointment of a receiver, liquidator, assignee, sequestrator (or similar official) in relation to any part of its
property, or for its winding up, dissolution or re-organization or of any or all of its property. 
 8.07 Share Capital.
(i) All Share Capital of the Borrower owned by the Intermediate Shareholder has been duly authorized, validly issued, fully paid and is nonassessable and (ii) all Share Capital of the Intermediate Shareholder owned by the Shareholder, has
been duly authorized, validly issued, fully paid and is nonassessable. 
 8.08 Corrupt Practices; Anti-Money Laundering;
Anti-Corruption Handbook. 
 (a) Such Shareholder Party and its officers, directors, employees, and agents have complied
with applicable Corrupt Practices Laws in obtaining all Consents related to the Project and are otherwise conducting the Project and such Shareholder Party’s business in compliance with applicable Corrupt Practices Laws. Such Shareholder
Party’s internal management and accounting practices and controls are sufficient to provide reasonable assurances of compliance with applicable Corrupt Practices Laws and the prevention of Prohibited Payments. No Shareholder Party nor any
Person acting on its or their behalves has made any Prohibited Payment. 
 (b) Such Shareholder Party is in compliance with the
applicable requirements of (A) the Anti-Money Laundering Laws, (B) OFAC Regulations, and (C) all other applicable export control, anti-boycott and economic sanctions laws of the U.S. and other jurisdictions relating to its business
and facilities. 
 (c) No Shareholder Party, its directors or members of senior management is a Person included in the OFAC
List. 
 (d) An Authorized Officer of such Shareholder Party has received and reviewed the Anti-Corruption Handbook.

 8.09 VAT/IDF Matters. All items that are required to be imported or purchased locally by the Borrower in order to
construct the Project are (i) listed in the list of plant, materials and equipment attached to the Letter Regarding VAT/IDF or (ii) included in the Construction Budget. 

Section 9. Miscellaneous. 
 9.01 No Waiver. (a) No failure or delay by OPIC in exercising any right, power, or remedy shall operate as a waiver thereof or otherwise impair any of its rights, powers, or remedies. No
single or partial exercise of any such right, power, or remedy shall preclude any other or further exercise thereof or the exercise of any other legal right, power or remedy. No waiver of any such right, power, or remedy shall be effective unless
given in writing 
 (b) The rights, powers, or remedies provided for herein are cumulative and are not exclusive of any other
rights, powers or remedies provided by law. The assertion or employment of any right, power or remedy hereunder, or otherwise, shall not prevent the concurrent assertion of any other right, power or remedy. 

  

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 9.02 Notices. Except as otherwise expressly provided herein or in any Financing
Document, all notices and other communications provided for hereunder shall be provided pursuant to Section 9.01 (Notices) of the Finance Agreement, which Section is incorporated as if set forth herein. All notices to the Shareholder
Parties shall be provided to their respective addresses as follows: 
 For the Sponsor: 

Ormat Technologies, Inc. 
 6225 Neil Road 
 Reno, NV 89511-1136 (USA) 

Facsimile: +1-775-356-9039 
 Attention: President 
 For the Shareholder: 

Ormat International, Inc. 
 6225 Neil Road 
 Reno, NV 89511-1136 (USA) 

Facsimile: +1-775-356-9039 
 Attention: President 
 For the Intermediate Shareholder: 

Ormat Holding Corp. 
 PO Box 309 
 Ugland House, 

Grand Cayman KY1-1104 (Cayman Islands) 
 Facsimile: +1-345-949-8080 
 Attention: The Directors 

with a copy to: 

Ormat International, Inc. 
 6225 Neil Road 
 Reno, NV 89511-1136 (USA) 

Facsimile: +1-775-356-9039 
 Attention: President 
 9.03 Expenses. Each Relevant Party shall pay or
reimburse OPIC or as OPIC may direct, the costs and expenses incurred by OPIC in relation to the enforcement or protection of its rights under this Agreement, including legal and other professional fees and any taxes, duties, fees or other charges
payable by OPIC. 

  

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 9.04 Successors and Assigns. This Agreement shall inure to the benefit of and be
binding upon the successors and permitted assigns of the parties hereto, provided, however, that no Relevant Party shall, without the prior written consent of OPIC, assign or delegate all or any part of its interest herein or
obligations hereunder. 
 9.05 Survival of Agreements. Each agreement, representation, warranty, and covenant contained
or referred to in this Agreement shall survive any investigation at any time made by OPIC and shall survive all disbursements of the Loans, except for changes permitted hereby, and shall terminate only when all Secured Obligations are paid in full.

 9.06 Integration; Amendments. This Agreement and the agreements referred to herein embody the entire understanding of
the parties and supersede all prior negotiations, understandings, and agreements between them with respect to the subject matter hereof. The provisions of this Agreement may be waived, supplemented, or amended only by an instrument in writing signed
by the parties hereto. 
 9.07 Severability. If any provision of this Agreement is prohibited or held to be invalid,
illegal, or unenforceable in any jurisdiction, the parties hereto agree to the fullest extent permitted by law that it shall not affect the validity, legality, and enforceability of the other provisions of this Agreement and shall not render
such provision prohibited, invalid, illegal, or unenforceable in any other jurisdiction. If, and to the extent that, any obligation of the Relevant Parties is unenforceable for any reason it agrees, independently of any other obligation hereunder,
to make the maximum contribution to the payment and satisfaction thereof as is permissible under Applicable Law. 
 9.08
Counterparts. This Agreement may be executed in counterparts, each of which when so executed and delivered shall be deemed an original and all of which together shall constitute one and the same instrument. 

9.09 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, UNITED
STATES OF AMERICA WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THEREOF (OTHER THAN SECTION 5-1401 OF THE NEW YORK GENERAL OBLIGATIONS LAW). 
 9.10 Waiver of Jury Trial. EACH RELEVANT PARTY AND OPIC IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY RIGHT TO HAVE A JURY PARTICIPATE IN RESOLVING ANY DISPUTE ARISING OUT OF, IN
CONNECTION WITH, RELATED TO, OR INCIDENTAL TO THE RELATIONSHIP BETWEEN THEM ESTABLISHED BY ANY FINANCING DOCUMENT. 
 9.11
Jurisdiction and Consent to Suit; Waivers. Each Relevant Party hereby irrevocably and unconditionally: 
 (a) submits for
itself and its property in any legal action or proceeding relating to this Agreement and any other Financing Document, or for recognition and enforcement of any judgment in respect thereof, to the non-exclusive general jurisdiction of the courts of
the State of New York sitting in The City of New York and the courts of the United States of America for the Southern District of New York; 

  

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 (b) consents that any such action or proceeding may be brought in such courts and waives
any objection that it may now or hereafter have to the venue of any such action or proceeding in any such court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same; 

(c) agrees to irrevocably designate and appoint HIQ Corporate Services, Inc., located at 19 W. 34th Street, Suite 1018, New York NY 10001-3006, as its authorized
agent to receive, accept, and acknowledge on its behalf service of process in any such proceeding, and shall provide OPIC with evidence of the prepayment in full of the fees of such agent until six (6) months after the Loan Maturity Date. Such
Relevant Party agrees that service of process, writ, judgment, or other notice of legal process upon said agent shall be deemed and held in every respect to be effective personal service upon it. Such Relevant Party shall maintain such appointment
(or that of a successor satisfactory to OPIC) continuously in effect at all times while such Relevant Party is obligated under this Agreement. Nothing herein shall affect OPIC’s right to serve process in any other manner permitted by Applicable
Law; 
 (d) agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by
Applicable Law or shall limit the right to sue in any other jurisdiction; and 
 (e) agrees that judgment against it in any
such action or proceeding shall be conclusive and may be enforced in any other jurisdiction with or without the U.S. by suit on the judgment or otherwise as provided by law, a Certified or exemplified copy of which judgment shall be conclusive
evidence of the fact and amount of such Relevant Party’s obligation. 
 9.12 Arbitration. (a) Any Dispute shall
be finally settled by arbitration in accordance with the Rules; provided, however, that this agreement to arbitrate Disputes shall not include the arbitration of (i) any Excluded Claims; and (ii) any Disputes that are subject
to a pending action, suit or proceeding brought by OPIC in accordance with Section 9.13. 
 (b) Arbitration pursuant to
this Section 9.12 is not a waiver of and shall not impair the enforcement rights of OPIC with respect to any Lien or the right of OPIC to exercise any other similar remedy under this Agreement or any other Financing Document to which such
Relevant Party is a party, pursuant to Section 9.13(a) or otherwise, and such enforcement by OPIC shall not be deemed to be inconsistent with or a violation of the arbitration provisions of this Section 9.12. 

(c) Any awards issued by the Arbitral Tribunal shall be final and binding on OPIC and the Relevant Parties; any orders so issued shall
be binding on OPIC and the Relevant Parties. Judgment upon any award issued by the Arbitral Tribunal may be entered by any court having jurisdiction thereof or having jurisdiction over OPIC or the relevant Relevant Party or its assets. Each Relevant
Party hereby submits to the jurisdiction of the United States District Court for the Southern District of New York for the limited purpose of enforcing this agreement to arbitrate. 

  

- 15 - 

 (d) The Arbitral Tribunal shall have no jurisdiction to grant any interim measure that
limits or prevents, or seeks to limit or prevent, OPIC from exercising any enforcement right with respect to any Lien or enforcing any similar remedy under this Agreement or any other Financing Document to which such Relevant Party is a party,
including without limitation any enforcement action pursuant to Section 9.13. Such Relevant Party covenants and agrees not to seek any such interim measure, either in any arbitration pursuant to this Section 9.12 or otherwise. 

(e) Notwithstanding Section 9.09, this Section 9.12 and any arbitration pursuant thereto shall be governed by Title 9
(Arbitration) of the United States Code. 
 9.13 Relevant Party Consent to Suit; Exclusive Form Selection for Certain
Actions. (a) Notwithstanding Section 9.12, OPIC in its sole discretion shall have the option at any time and from time to time to bring against any Relevant Party any action, suit or proceeding in respect of any Dispute, in any of
(i) the courts of the State of New York in the County of New York or the United States District Court for the Southern District of New York, or (ii) the courts in any other jurisdiction where such Relevant Party or any of its property may
be found; provided, however, with regard to any Dispute that has been referred to arbitration pursuant to Section 9.12 by such Relevant Party, OPIC may, in its discretion, initiate an action, suit or proceeding as provided herein
in lieu of such arbitration and in respect of such Dispute, so long as OPIC exercises its option to do so prior to the last day on which OPIC’s statement of defense (or equivalent submission) in respect of such Dispute is to be submitted.

 (b) Each Relevant Party hereby: (i) irrevocably waives any present or future objection to any such action, suit or
proceeding in any such venue, and irrevocably consents and submits unconditionally to the non-exclusive jurisdiction of any such court for itself and in respect of any of its property; (ii) irrevocably waives any claim in any such court that
any such action, suit, or proceeding brought therein has been brought in an inconvenient forum; (iii) agrees that final judgment against it in any such action, suit or proceeding shall be conclusive and may be enforced in any other jurisdiction
within or outside the United States of America by suit on the judgment or otherwise, a certified or exemplified copy of which shall be conclusive evidence of the fact and of the amount of its obligation; and (iv) covenants and agrees not to
resist enforcement of any such final judgment in any jurisdiction where OPIC commences enforcement proceedings. 

  

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 (c) Any enforcement action, suit, or other judicial, administrative or arbitral proceeding
by such Relevant Party against OPIC (or the United States government) in respect of an Excluded Claim shall be brought exclusively in a United States federal court of competent jurisdiction in the District of Columbia. 

9.14 Waiver of Litigation Payments. In the event that any action or lawsuit is initiated by or on behalf of OPIC against a
Relevant Party, such Relevant Party, to the fullest extent permissible under Applicable Law, irrevocably waives its right to, and agrees not to request, plead, or claim that any OPIC Plaintiff post, pay, or offer, any Litigation Payment, and such
Relevant Party further waives any objection that it may now or hereafter have to an OPIC Plaintiff’s claim that such OPIC Plaintiff should be exempt or immune from posting, paying, making, or offering any such Litigation Payment. 

9.15 Further Assurances. Each Relevant Party shall execute and deliver to OPIC such additional documents and take such additional
action as OPIC may require to carry out the purposes of this Agreement or any other Financing Document to which such Relevant Party is a party, to cause such Financing Document to be duly registered, notarized, and stamped in any applicable
jurisdiction, and to preserve and protect OPIC’s rights as contemplated herein or therein. 
 9.16 English Language.
All documents to be furnished or communications made under each of the Financing Documents shall be in English or, if in another language, shall be accompanied by a Certified translation into English, which translation shall govern between the
Relevant Party and OPIC. 
 (Signature page follows) 

  

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 IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed and
acknowledged by their respective officers or representatives hereunto duly authorized, as of the date first above written. 
  

			
	 ORPOWER 4 INC.

		
	 By:
	 	  

 

			
		
	 Name:
	 	  

 

			
		
	 Its:
	 	  

 

			
		 	Authorized Officer

  

			
	 ORMAT TECHNOLOGIES, INC.

		
	 By:
	 	  

 

			
		
	 Name:
	 	  

 

			
		
	Its: 	 	 

 
			
		 	Authorized Officer

  

			
	 ORMAT INTERNATIONAL, INC.

		
	 By:
	 	  

 

			
		
	 Name:
	 	  

 

			
		
	 Its:
	 	  

 

			
		 	Authorized Officer

 [Olkaria III: ECSRA Signature Page] 

 
			
	 ORMAT HOLDING CORP.

		
	 By:
	 	  

 

			
		
	 Name:
	 	  

 

			
		
	 Its:
	 	  

 

			
		 	Authorized Officer

  

			
	OVERSEAS PRIVATE INVESTMENT CORPORATION
		
	 By:
	 	  

 

			
		
	 Name:
	 	  

 

			
		
	 Its:
	 	  

 [Olkaria III: ECSRA Signature Page]Guaranty, dated as of October 25, 2012

 Exhibit 10.3 
 EXECUTION VERSION 
 GUARANTY 

GUARANTY (this “Guaranty”), dated as of October 25, 2012, of ORMAT TECHNOLOGIES, INC., a corporation
organized and existing under the laws of the State of Delaware (the “Guarantor”), is made in favor of DEG — DEUTSCHE INVESTITIONS- UND ENTWICKLUNGSGESELLSCHAFT MBH (in its capacity as global agent for the benefit of the
Subordinated DFI Lender (as such term is defined in the below-defined Subordination Agreement), the “Global Agent”)). 
 WHEREAS, OrPower 4 Inc., a limited liability company organized and existing under the laws of the Cayman Islands and registered in the Republic of Kenya as a foreign company (the
“Company”), is an indirectly wholly-owned subsidiary of the Guarantor; 
 WHEREAS, the Company and the
Subordinated DFI Lender are parties to that certain Common Terms Agreement, dated as of January 5, 2009 (as amended through the date hereof, the “Original Common Terms Agreement”), entered into by and among the Company, the
Subordinated DFI Lender, in its capacity as the global agent thereunder and as a Lender (as defined in the Original Common Terms Agreement), Société de Promotion et de Participation pour la Coopération Economique
(“PROPARCO”), as a Lender, and BNY Corporate Trustee Services Limited, an English limited liability company, in its capacity as the offshore security agent; 
 WHEREAS, the Company and the Subordinated DFI Lender are also parties to that certain (i) DEG A Loan Agreement, dated as of January 5, 2009 (as amended, amended and restated, modified or
otherwise supplemented from time to time, the “DEG A Loan Agreement”), entered into by and among the Company, the Subordinated DFI Lender as Lender and the Global Agent, (ii) DEG B Loan Agreement, dated as of January 5,
2009 (as amended, amended and restated, modified or otherwise supplemented from time to time, the “DEG B Loan Agreement”), entered into by and among the Company, the Subordinated DFI Lender as Lender and the Global Agent, and
(iii) DEG C Loan Agreement, dated as of January 5, 2009 (as amended, amended and restated, modified or otherwise supplemented from time to time, the “DEG C Loan Agreement”, and, together with the DEG A Loan Agreement and
DEG B Loan Agreement, the “DEG Loan Agreements”), entered into by and among the Company, the Subordinated DFI Lender as Lender and the Global Agent; 
 WHEREAS, the Subordinated DFI Lender and PROPARCO extended certain loans to the Company pursuant to the Original Common Terms Agreement and the Loan Agreements (as such term is defined in the
Original Common Terms Agreement) in connection with the existing 48 MW geothermal power plant (“Plant 1”) located in Hell’s Gate National Park in the Rift Valley Province of Kenya owned and operated by the Company, subject to
the terms and conditions set forth therein; 
 WHEREAS, the Company intends to expand the Plant 1 to an integrated 84 MW
geothermal power generation facility by the addition of a second plant of approximately 36 MW (“Plant 2”, together with Plant 1, the “Project”), and a further optional third plant of approximately 16 MW (if
applicable);  

 WHEREAS, in order to finance the aforementioned expansion of Plant 1, the Company and
Overseas Private Investment Corporation, an agency of the United States of America (“OPIC”), have agreed to enter into a finance agreement pursuant to which OPIC will make, subject to the terms and conditions set forth therein,
certain loans (the “OPIC Loan”) to the Company in connection with the Project (the “OPIC Financing”); 
 WHEREAS, in connection with the expansion of the Project and the OPIC Financing, (i) the Company intends to repay in full all amounts owing to PROPARCO under the Original Common Terms
Agreement and the Proparco A Loan Agreement (as such term is defined in the Original Common Terms Agreement) and to the Subordinated DFI Lender under the DEG C Loan Agreement, and (ii) the Company, the Subordinated DFI Lender and the other
parties thereto (other than PROPARCO) intend to amend and restate the Original Common Terms Agreement (as so amended and restated, the “Amended and Restated Common Terms Agreement”); 

WHEREAS, as a condition to the OPIC Financing, the Company, the Subordinated DFI Lender and OPIC will enter into a subordination
agreement (the “Subordination Agreement”) pursuant to which, inter alia, the Subordinated DFI Lender will agree to subordinate the DEG A Loan Agreement and the DEG B Loan Agreement and the loans thereunder (the “DFI
Loans”) to the OPIC Loan; and 
 WHEREAS, to induce the Subordinated DFI Lender to execute and deliver the
Subordination Agreement, the Guarantor is willing to provide a guaranty in favor of the Global Agent for the benefit of the Subordinated DFI Lender for the payment obligations of the Company under the Amended and Restated Common Terms Agreement and
the DEG Loan Agreements; 
 NOW, THEREFORE, the Guarantor hereby agrees: 

Section 1. Definitions. 
 (a) The following terms when used in this Guaranty shall have the following meanings: 

“Adjusted EBITDA” means, at any relevant time, the Guarantor’s EBIDTA together with depreciation, amortization, interest and taxes,
which are attributed to the Guarantor’s investments in its non-consolidated subsidiaries presented on the equity basis, according to the Guarantor’s percentage holding therein and after elimination of any impairment of property, plant and
equipment or any other long-lived assets, all as that are included in the Discussion and Financial Analysis Item in the Guarantor’s annual and quarterly reports. 
 “Demand” has the meaning set forth in Section 5(a) hereto. 

“EBITDA” means, at each relevant time, earnings before interest, taxes, depreciation and amortization on the basis of the last four
successive quarters at such time, as mentioned in the Discussion and Financial Analysis Item in the Guarantor’s annual or quarterly reports. 

 “Financial Indebtedness” means any indebtedness for or in respect of: 

 

	 	i.	moneys borrowed (by way of loan or otherwise); 

  

	 	ii.	any amount raised by acceptance under any acceptance credit facility or dematerialised equivalent; 

 

	 	iii.	any amount raised pursuant to any note purchase facility or the issuance of bonds, notes, debentures, loan stock or any similar instrument; 

 

	 	iv.	the amount of any liability in respect of any lease or hire purchase contract which would, in accordance with IFRS, be treated as a finance or capital lease;

  

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

 

	 	vi.	any amount raised under any other transaction (including any forward sale or purchase agreement) having the commercial effect of a borrowing; 

 

	 	vii.	any derivative transaction entered into in connection with protection against or benefit from fluctuation in any rate or price (and, when calculating the value of any
derivative transaction, only the marked to market value shall be taken into account); 

  

	 	viii.	any reimbursement or counter-indemnity obligation in respect of a guarantee, indemnity, bond, standby or documentary letter of credit or any other instrument issued by
a bank or financial institution; and 

  

	 	ix.	the amount of any liability in respect of any guarantee or indemnity for any of the items referred to in paragraphs (i) to (viii) above.

 “Financial Year” means the annual accounting period of the Guarantor ending on December 31 in each year.

 “Guaranteed Obligations” means all present and future payment obligations of the Company to pay the principal of and interest
on the DFI Loans and all other amounts (if any) due owing or incurred under the Amended and Restated Common Terms Agreement and the DEG Loan Agreements (including, without limitation, under any amendment, supplement or restatement of the Amended and
Restated Common Terms Agreement or a DEG Loan Agreement, or in relation to any new or increased advances or utilizations of the DFI Loans). 

“Net Debt” means short-term debt and long-term debt to banks, financial institutions (including current maturities of long-term loans)
plus debt to note holders, less cash and cash equivalents and marketable securities as determined under GAAP; provided, that, (i) undertakings in relation to a sale of rights of ownership in connection with a transaction the
substance of which is the sale of tax benefits (including any tax monetization transaction) shall not be deemed to be a debt, and (ii) subordinated loans extended to the Guarantor by its shareholders and any other subordinated

 
debt to the Guarantor’s shareholders, shall not be included in the scope of Net Debt; provided, however, that, Net Debt shall include the Guarantor’s share in the
Net Debt of its unconsolidated subsidiaries, based on its percentage of shareholding. 
 “Permitted Liens” means: 

 

	 	i.	any lien, pledge, mortgage, security interest, deed of trust, charge, assignment, hypothecation, title retention or other encumbrance of whatever kind or type on the
Guarantor’s equity (or similar) interests in any subsidiary as part of a project financing by such subsidiary, under the condition that each such specific lien, charge, pledge, mortgage, security interest, deed of trust, assignment,
hypothecation, title retention or encumbrance will be removed upon the repayment of the financing; and 

  

	 	ii.	any lien, pledge, mortgage, security interest, deed of trust, charge, assignment, hypothecation, title retention or other encumbrance of whatever kind or type over any
of the Guarantor’s assets for the purpose of securing the repayment of a credit granted to finance the acquisition by the Guarantor of that specific asset, excluding any guarantee or indemnity granted in respect of such financing, under the
condition that each such encumbrance, lien, pledge, mortgage, security interest, deed of trust, assignment, hypothecation, title retention or charge will be removed upon the repayment of the credit. 

“Total Assets” means in relation to the Guarantor and in respect of any Financial Year, the sum of its on-balance sheet fixed assets,
intangibles, investments and current assets. 
 “Trigger Event” means (i) the occurrence of an Event of Default described
in Section 22.1 (a) (Events of Default) of the Amended and Restated Common Terms Agreement, or (ii) acceleration of the DFI Loans following the occurrence of an Event of Default described in Section 22.1(c)(ii) (excluding
such Event of Default to the extent it results only from a failure to comply with obligations under Clause 20.1(a) (Preservation of Rights) of the Amended and Restated Common Terms Agreement). 

Capitalized terms used herein but not otherwise defined herein shall have the same meanings as set forth in the Amended and Restated
Common Terms Agreement or the DEG Loan Agreements, as applicable. 
 Section 2. Guaranty by the Guarantor.
(a) The Guarantor hereby absolutely, irrevocably and unconditionally guarantees to the Global Agent for the benefit of the Subordinated DFI Lender and its successors and permitted assigns, as a primary obligation, the due, punctual and complete
payment of all Guaranteed Obligations upon the occurrence of any Trigger Event. This Guaranty constitutes a guarantee of payment when due and owing, and not merely of collection. The Guarantor hereby agrees that its obligations hereunder shall be
independent, absolute and unconditional, irrespective of the termination (other than in accordance with its terms after final and indefeasible payment in full), validity or enforceability of the Amended and Restated Common Terms Agreement and/or the
DEG Loan Agreements, any 

 
change therein or amendment thereto, the absence of any action to enforce the same, the recovery of any judgment against the Company or any action to enforce the same, the existence of the
Subordination Agreement, the failure of the Company or the Guarantor to comply with any requirement of any law, regulation or order, the dissolution, liquidation, reorganization or other alteration of the legal status or structure of the Company or
the Guarantor or any other act, omission, matter, thing or circumstance which may otherwise reduce, release or prejudice any obligation of the Guarantor hereunder or constitute a legal or equitable discharge or defense of a guarantor or a surety,
and the Guarantor hereby waives (to the fullest extent permitted by law) all defenses available to the Guarantor against enforcement of the Guaranteed Obligations. 
 (b) Notwithstanding anything in this Guaranty to the contrary, the Guarantor may satisfy its obligation to pay the Guaranteed Obligations hereunder by either (i) making payments under this Guaranty
directly to the Global Agent for the benefit of the Subordinated DFI Lender or (ii) causing its wholly-owned subsidiary, Ormat Holding Corp. (a limited liability company organized and existing under the laws of the Cayman Islands) to make any
such payments to the Global Agent for the benefit of the Subordinated DFI Lender. 
 (c) The Guarantor hereby waives to the
fullest extent permitted under law (i) acceptance of this Guaranty, (ii) presentment, demand, or dishonor concerning the Guaranteed Obligations or the liabilities of the Guarantor, protest and any notice not provided for herein and
(iii) any right to require that any action or proceeding (in a bankruptcy, liquidation, administration, insolvency or otherwise) be brought against the Company or any of its assets or properties, or against any other person, or to require that
the Global Agent or the Subordinated DFI Lender seek enforcement of any performance against the Company or any other person, prior to any action against the Guarantor under the terms hereof. The Guarantor agrees that the Subordinated DFI Lender may
at any time and from time to time, either before or after the maturity thereof, without notice to or further consent of the Guarantor, extend the time of payment or performance of, or renew any of, the Guaranteed Obligations, and may also make any
agreement with the Company for the extension, renewal, payment, compromise or release, in whole or in part, or for any modification or waiver of the terms thereof or of any agreement between the Global Agent or the Subordinated DFI Lender and the
Company without in any way impairing or affecting this Guaranty. 
 (d) The Guarantor shall be subrogated to all rights of the
Global Agent or the Subordinated DFI Lender in respect of any amounts paid by the Guarantor pursuant to the provisions of this Guaranty; provided, however, that the Guarantor shall not be entitled to enforce, or to receive any payments
arising out of or based upon such right of subrogation until all Guaranteed Obligations have been paid in full, and, if any amount shall be paid to the Guarantor on account of such subrogation rights at any time when all of the Guaranteed
Obligations shall not have been paid in full, such amount shall be held in trust for the benefit of the Global Agent for the benefit of the Subordinated DFI Lender and shall forthwith be paid to the Global Agent for the benefit of the Subordinated
DFI Lender to be applied to the Guaranteed Obligations. 
 (e) If the Company is adjudged bankrupt or insolvent, or a receiver,
liquidator, assignee, trustee, sequestrator (or other similar official) of the Company, or any substantial part of its property or assets, is appointed, or the Company makes any arrangement 

 
with its creditors, or is dissolved, liquidated or wound up, the Guarantor shall not file or pursue any proof in competition with the Subordinated DFI Lender in respect of any amounts owing to
the Guarantor by the Company or on any account whatsoever, but instead shall give the Subordinated DFI Lender the benefit of any such proof and of all amounts to be received in respect of that proof until all of the Guaranteed Obligations have been
paid in full. The Guarantor shall hold in trust for, and forthwith pay or transfer to, the Global Agent for the benefit of the Subordinated DFI Lender any payment or distribution received by the Guarantor contrary to this Section 2(e).

 (f) This Guaranty shall be continuing and remain in full force and effect and be binding upon the Guarantor, its successors
and permitted assigns until all of the Guaranteed Obligations have been satisfied in full. This Guaranty shall continue to be effective or be reinstated, as the case may be, if at any time any payment of the Guaranteed Obligations are annulled, set
aside, invalidated, declared to be fraudulent or preferential, rescinded or must otherwise be returned, refunded, restored or repaid by the Global Agent or by the Subordinated DFI Lender whether as a result of any proceedings related to the
insolvency, bankruptcy, dissolution, liquidation or reorganization of the Company, the Guarantor or otherwise, all as though such payment had not been made. 
 (g) The liability of the Guarantor under this Guaranty shall not be reduced, discharged or otherwise adversely affected by any act or omission which would not have discharged or affected the liability of
the Guarantor had it been a principal debtor instead of a guarantor, or indemnifier or by anything done or omitted by any person which, but for this provision, might operate to exonerate or discharge the Guarantor or otherwise reduce or extinguish
its liability under this Guaranty. 
 Section 3. Representations and Warranties. The Guarantor represents and
warrants to the Global Agent and the Subordinated DFI Lender that: 
 (a) The Guarantor is duly organized,
validly existing and in good standing under the laws of the State of Delaware and has full corporate power to execute, deliver and perform this Guaranty. 
 (b) The execution, delivery and performance of this Guaranty have been and remain duly authorized by all necessary corporate action and do not contravene any provision of the Guarantor’s articles of
incorporation or bylaws, as amended to date, or any law, regulation, rule, decree, order, judgment, or contractual restriction binding on the Guarantor or its assets, and will not result in the creation or imposition of any lien on any part of its
assets or oblige it to create any such lien. This Guaranty has been duly and validly executed and delivered by the Guarantor. 
 (c) No action by, notice to or filing with, or payment of any stamp, registration or similar tax to, any governmental authority or regulatory body is required in connection with the execution, delivery or
performance of this Guaranty, except as have been made as required prior to the date hereof. 

 (d) This Guaranty constitutes the legal, valid and binding obligation of the
Guarantor enforceable against the Guarantor in accordance with its terms, subject, as to enforcement, to bankruptcy, fraudulent conveyance, insolvency, reorganization and other laws of general applicability relating to or affecting creditors’
rights and to general equity principles. 
 (e) No action, suit or other legal or arbitral proceeding is pending
by or before any governmental authority or in any arbitral or other forum or, to the best of its knowledge, is threatened in writing, which could reasonably be expected to have a material adverse effect on the assets or financial condition of the
Guarantor or the Guarantor’s ability to perform its obligations under this Guaranty. 
 (f) None of the
Guarantor or the Guarantor’s assets is entitled to immunity on any grounds from any legal action or proceeding (including, without limitation, suit, attachment prior to judgment, execution or other enforcement). 

(g) No event or circumstance has occurred and is continuing which constitutes a default under any material contractual
obligation which is binding on the Guarantor, or to which its assets are subject, or which might have a material adverse effect on the Guarantor’s ability to perform its obligations under this Guaranty. 

(h) The Guarantor’s payment obligations under this Guaranty rank at least pari passu with the claims of all
its other unsecured and unsubordinated creditors, except for obligations mandatorily preferred by law applying to companies generally. 
 Section 4. The Guarantor covenants and agrees that: 

(a) as long as this Guaranty is in full force and effect the Guarantor shall be prohibited from: 

 

	 	i.	creating any floating charge or any pledge, charge, encumbrance or lien over its assets other than Permitted Liens; 

 

	 	ii.	guaranteeing the liabilities of any third party (other than the Company pursuant hereto in relation to the Guaranteed Obligations and other than in respect of any
liabilities of any other direct or indirect subsidiary of the Guarantor that are counted as part of the Net Debt of the Guarantor); and 

  

	 	iii.	selling, assigning, transferring, conveying or disposing of all or substantially all of its assets, or undergoing a change of control in its ownership structure,

 in each case, without obtaining the prior written approval of the Global Agent acting at the instructions of the
Subordinated DFI Lender. 

 (b) the Guarantor shall for the duration of its obligations under this
Guaranty: 
  

	 	i.	maintain a share capital of at least USD 600 million, representing in any event no less than 30% of its Total Assets; 

 

	 	ii.	maintain a Net Debt to Adjusted EBITDA ratio of no more than 7:1; and 

  

	 	iii.	ensure that, as long as the principal of the DFI Loans have not been repaid in full, the dividend that will be distributed in respect of each Financial Year does not
exceed 35% of the net income in that year, as shown on the Guarantor’s audited consolidated annual financial statements. Notwithstanding the foregoing, the Guarantor may, during the course of any Financial Year, make an interim dividend
distribution on the basis of the Guarantor’s estimate of the net income for such Financial Year. If the amount of dividend that has actually been paid in any fiscal year exceeds the percentage mentioned above, such deviation will be set off
against distributed dividends in respect of next Financial Year or an adjustment will be made in the next Financial Year in which a dividend is distributed. The amount to be offset or adjusted will be an amount representing the difference between
the percentage dividend that was actually paid in the prior Financial Year and the percentage of 35% of the net income in such prior Financial Year. 

(c) The Guarantor agrees that if it undertakes any financial covenants to a party providing it with Financial Indebtedness
after the execution of this Guaranty that are more restrictive than those listed in (b) above, the Guarantor shall inform the Global Agent and the Subordinated DFI Lender of the same and those more restrictive financial covenants shall be
deemed to be incorporated into 4(b) above. 
 (d) The Guarantor shall, as soon as available, but in any event
within one hundred and twenty (120) days after the end of each of its Financial Years, deliver to the Global Agent a copy of its complete and audited financial statements for such Financial Year together with the Auditor’s audit report on
them. 
 (e) The Guarantor shall, as soon as available, but in any event within forty-five (45) days after
the end of each quarter of each of its Financial Years, deliver to the Global Agent a copy of the complete unaudited financial statements for such quarter and to the extent there are any internal or external factors materially affecting or which
might materially affect the Guarantor’s business and operations or its financial condition, a report detailing the same. 
 (f) The Guarantor shall, when requested by the Global Agent acting at the instruction of the Subordinated DFI Lender, do or cause to be done anything that aids the exercise of any power, right or remedy
of the Global Agent or the Subordinated DFI Lender under this Guaranty including, without limitation, executing any document or agreement. 
 (g) For each calculation to be made for the purposes of Section 4, figures shall be taken from the most recent set of financial statements supplied in accordance with

 
clause (d) above and if there is a dispute as to any interpretation or computation of any amount, then the decision of the Guarantor’s auditors or, in the absence of such decision, the
reasonable interpretation or computation of the Subordinated DFI Lender, as communicated by the Global Agent, shall prevail. 
 (h) The Guarantor acknowledges that the occurrence of any of the following shall be additional Events of Default under the Amended and Restated Common Terms Agreement, leading to a Trigger Event under
this Guaranty: 
  

	 	i.	non-compliance by the Guarantor with any of the covenants listed in (a) to (e) above; 

 

	 	ii.	any Financial Indebtedness of the Guarantor is not paid when due nor within any applicable grace period; 

 

	 	iii.	any Financial Indebtedness of the Guarantor is declared to be or otherwise becomes due and payable prior to its specified maturity as a result of an event of default
(however described); and 

  

	 	iv.	any commitment for any Financial Indebtedness of the Guarantor is cancelled or suspended by a creditor of the Guarantor as a result of an event of default (however
described). 

 (i) No Event of Default under paragraph (h) above will occur if the failure to
comply is capable of remedy and is remedied to the satisfaction of the Subordinated DFI Lender within ten (10) days of the earlier of the Global Agent on behalf of the Subordinated DFI Lender giving notice to the Guarantor and the Guarantor
becoming aware of the failure to comply, or, in the case of non-compliance by the Guarantor with any of the covenants listed in (d) and (e) above, if the failure to comply is capable of remedy and is remedied to the satisfaction of the
Subordinated DFI Lender within thirty (30) days of the earlier of the Global Agent on behalf of the Subordinated DFI Lender giving notice to the Guarantor and the Guarantor becoming aware of the failure to comply. 

(j) Notwithstanding anything to the contrary set forth herein, if up to the time of full repayment of the DFI Loans there
is a change in the accounting principles (GAAP and/or IFRS), in such a way that the change adversely affects the financial covenants specified in Section 4 above, the Guarantor and the Global Agent on behalf of the Subordinated DFI Lender
hereby agree to negotiate in good faith to amend the covenants set forth herein so as to adapt them mutatis mutandis to the principles set forth herein, within thirty (30) Business Days from the change in the accounting principles, and
if not settled within this period, the financial restrictions specified in Section 4 above shall be updated, mutatis mutandis, to conform to the new accounting principles, in accordance with rules determined by an accountant from one of
the five largest firms of accountants in the United States of America, provided, that, he/she is not part of the accounting firm which audits the Guarantor. 

 Section 5. Demands. 

 

	 	(a)	Following a Trigger Event, the Global Agent may present the Guarantor a demand in substantially the form set out in Schedule 1 (Form of Demand for Payment) (a
“Demand”) at the address specified in Section 6 (Notices) and the Guarantor shall, within seven (7) Business Days after the date of presentation of the Demand, pay to the account specified in the Demand the amount
specified in the Demand. 

  

	 	(b)	More than one Demand may be presented under this Guaranty. 

  

	 	(c)	Each Demand shall be presented to the Guarantor as soon as reasonably practical after the due date for payment of the Guaranteed Obligation in respect of which that
Demand is made, but no delay in presenting a Demand shall in any way prejudice the obligations of the Guarantor, or the rights of the Global agent or the Subordinated DFI Lender, hereunder. 

Section 6. Notices. All notices to the Guarantor under this Guaranty shall, until the Guarantor furnishes written
notice to the contrary, be in writing and mailed, faxed or delivered to the Guarantor at: 
 Ormat Technologies, Inc. 

6225 Neil Road 

Reno, Nevada 89511 
 Attention: President 
 Telephone: (775) 356-9029 

Facsimile: (775) 356-9039 

provided, however, that failure to furnish any copies of notices to the Company under the Amended and Restated Common Terms Agreement and
the DEG Loan Agreements shall not affect the obligations of the Guarantor hereunder. 
 Section 7. Governing Law;
Jurisdiction. 
 (a) This Guaranty shall be governed by and construed and enforced in accordance with the
laws of the State of New York, United States of America without regard to principles of conflicts of law thereof which would require the general application of the law of another jurisdiction as the governing law of this contract. 

(b) Any dispute, disagreement, or claim arising out of or relating to this Guaranty, or the execution or performance
thereof, may be brought before the judges and courts of the State of New York located in the Borough of Manhattan or the United States of America located in the Southern District of New York. 

(c) At the option of the Global Agent on behalf of the Subordinated DFI Lender, any dispute, disagreement, or claim
arising out of or relating to this Guaranty, or the execution or performance thereof, may be brought before the judges of any other court having jurisdiction, or concurrently in more than one jurisdiction. 

 (d) Without prejudice to the generality of Clause
(b) above, and for the benefit of the Global Agent and the Subordinated DFI Lender, the Guarantor irrevocably submits to the non-exclusive jurisdiction of the courts of the State of New York located in the Borough of Manhattan and of the United
States of America located in the Southern District of New York in connection with any legal action, suit, or proceeding arising out of or relating to this Guaranty that may be brought by the Global Agent or the Subordinated DFI Lender. The Guarantor
hereby designates, appoints, and empowers on the date hereof HIQ CORPORATE SERVICES, INC. (the “Process Agent”) located on this date at 19 W. 34th Street, Suite 1018, New York NY 10001-3006, as its authorized agent to receive for and on behalf of the Guarantor and
its property service of copies of the summons and complaint and any other legal process which may be served in any such action, suit, or proceeding in the State of New York. Such service may be made by mailing or delivering a copy of such process to
the Guarantor in care of the Process Agent at the Process Agent’s above address, and the Guarantor hereby irrevocably authorizes and directs the Process Agent to accept such service on its behalf. As an alternative method of service the
Guarantor also irrevocably consents to the service of any and all process in any such action, or proceeding by the mailing of copies of such process to its address specified in Section 6 by registered airmail. The Guarantor agrees that a final
judgment in any such actions or proceeding shall be conclusive and may be enforced in other jurisdictions by suit on the judgment or in any other manner provided by law. 

(e) The Guarantor hereby knowingly irrevocably waives, to the fullest extent permitted by applicable law, any and all
rights to trial by jury in any legal proceeding directly or indirectly arising out of or relating to this Guaranty or the transactions contemplated hereby, whether based on contract, tort, or any other theory. 

Section 8. Interpretation. The headings of the sections and other subdivisions of this Guaranty are inserted for
convenience only and shall not be deemed to constitute a part hereof. 
 Section 9. Attorney’s Cost.
Unless otherwise paid by the Company, the Guarantor agrees to pay all reasonable attorney’s fees and all other reasonable and actual costs and expenses which may be incurred by the Global Agent or the Subordinated DFI Lender in connection with:

 (a) the preparation, negotiation, execution and delivery of this Guaranty; 

(b) any actual or proposed amendment, variation, supplement, waiver or consent under or in connection with this Guaranty; 

(c) any discharge or release of this Guaranty; 
 (d) the preservation, or exercise and enforcement, of any rights under or in connection with this Guaranty or any attempt to do so; and 

(e) any stamping or registration of this Guaranty. 

 Section 10. Currency of Payment. Any payment to be made by the Guarantor
shall be made in the same currency as designated for payment in the Amended and Restated Common Terms Agreement and the DEG Loan Agreements and such designation of the currency of payment is of the essence. 

Section 11. Successions or Assignments. This Guaranty shall inure to the benefit of the successors and permitted
assigns of the Global Agent and the Subordinated DFI Lender who shall have the respective rights of the Global Agent and the Subordinated DFI Lender hereunder. This Guaranty is binding upon the Guarantor and its successors and permitted assigns.

 Section 12. No Waiver; Cumulative Rights. No failure on the part of the Global Agent or the Subordinated
DFI Lender to exercise, and no delay in exercising, any right, remedy or power provided for in this Guaranty shall operate as a waiver thereof, nor shall any single or partial exercise by the Global Agent or the Subordinated DFI Lender of any right,
remedy or power hereunder preclude any other or future exercise of any such right, remedy or power. Each and every right, remedy and power hereby granted to the Global Agent or the Subordinated DFI Lender or allowed to it by law shall be cumulative
and not exclusive of any other, and may be exercised by the Global Agent or the Subordinated DFI Lender from time to time. 

Section 13. Severability. Any provision of this Guaranty that may be determined by competent authority to be
prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability
in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 

Section 14. Counterparts. This Guaranty may be executed and delivered in any number of counterparts, each of which is
an original and which together have the same effect as if each party had signed the same document. 
 Section 15.
Taxes; Payments 
 (a) The Guarantor shall pay or cause to be paid all Taxes (other than income Taxes) on or in
connection with the payment of any amount due under this Guaranty. 
 (b) All sums payable by the Guarantor under this Guaranty
shall be paid in full to the Global Agent for the benefit of the Subordinated DFI Lender without any set-off, condition or counterclaim whatsoever and free and clear of any deductions or withholdings (including with respect to Taxes) whatsoever
except as may be required by law or regulation which is binding on the Guarantor. 
 (c) If any deduction or withholding
(including with respect to Taxes) is required by any law or regulation to be made by the Guarantor, the amount of the payment due from the Guarantor shall be increased to an amount which (after making any deduction or withholding) leaves an amount
equal to the payment which would have been due if no deduction or withholding had been required. 
 (d) The Guarantor shall
promptly deliver or procure delivery to the Global Agent of all receipts issued to it evidencing each deduction or withholding which it has made. 

 (e) The Guarantor shall not and may not direct the application by the Global Agent or the
Subordinated DFI Lender of any sums received by the Global Agent or the Subordinated DFI Lender from the Guarantor under any of the terms of this Guaranty. 
 Section 16. Transfer 
 (a) This Guaranty may only be assigned
or transferred by the Global Agent in connection with an assignment or transfer of the DFI Loans by the Subordinated DFI Lender. 
 (b) Except with prior written consent of the Global Agent acting at the instruction of the Subordinated DFI Lender, the Guarantor may not assign any of its rights and may not transfer any of its
obligations under this Guaranty or enter into any transaction which would result in any of those rights or obligations passing to another person. Any purported assignment or transfer in violation of this Section 16(b) shall be void. 

Section 17. Set-Offs 
 (a) The Guarantor authorizes the Subordinated DFI Lender to apply any credit balance (whether or not then due) to which the Guarantor is at any time beneficially entitled on any account with the
Subordinated DFI Lender in (or towards) satisfaction of any sum then due and payable by the Guarantor to the Global Agent for the benefit of the Subordinated DFI Lender under this Guaranty, but which is unpaid. Where such application of balances
requires the conversion of one currency into another the Subordinated DFI Lender may make such conversion at a market rate of exchange. 
 (b) The Subordinated DFI Lender shall not be obliged to exercise any rights given to it under clause 17(a). 
 Section 18. Evidence of Amounts and Certificate. Any certificate, determination or notification by the Global Agent on behalf of the Subordinated DFI Lender as to a rate or any amount
payable under this Guaranty is (in the absence of manifest error) conclusive evidence of the matter to which it relates and shall contain reasonable details of the basis of determination. 

Section 19. Amendments  
 This Guaranty may be amended, waived or otherwise modified only with the written consent of the Guarantor and the Global Agent acting at the instruction of the Subordinated DFI Lender. 

[The remainder of this page is intentionally blank] 

 IN WITNESS WHEREOF, the Guarantor, by its officer duly authorized, intending to be
legally bound, has caused this Guaranty to be duly executed and delivered as of the date first above written. 
  

					
	ORMAT TECHNOLOGIES, INC.
		
	 By:
	 	  

		 	Name:	 	
		 	Title:	 	

  

					
	DEG — DEUTSCHE INVESTITIONS- UND ENTWICKLUNGSGESELLSCHAFT MBH, as Global Agent
		
	 By:
	 	  

		 	 Name:
	 	
		 	 Title:
	 	
		
	 By:
	 	  

		 	 Name:
	 	
		 	 Title:
	 	

 [Signature page to Ormat Technologies, Inc. Guaranty] 

 Schedule 1 

Form of Demand for Payment 
 [DATE] 
 Ormat Technologies, Inc. 
 6225 Neil Road 
 Reno, Nevada 89511 
 Attention: President 
 Reference is made to the Guaranty, dated as of
[            ], 2012 (the “Guaranty”), entered into by Ormat Technologies, Inc., as the guarantor (the “Guarantor”) in favor of DEG — Deutsche
Investitions- und Entwicklungsgesellschaft mbH, in its capacity as the Global Agent for the benefit of the Subordinated DFI Lender (the “Global Agent”). Capitalized terms used herein but not defined in this Demand shall have the
meanings ascribed to them in the Guaranty. 
 Pursuant to Section 2 (Guaranty by the Guarantor) of the Guaranty, the
Global Agent hereby serves this Demand on the Guarantor for the payment of $[            ](            Dollars), which the Global
Agent certifies is the amount due and payable to the Subordinated Lender under a DFI Loan as governed by the terms of the Amended and Restated Common Terms Agreement. 
 The Guarantor is directed to make the payment of the aforementioned amount by wire transfer to: [insert account information and wire instructions]. 

IN WITNESS WHEREOF, an authorized officer of the Global Agent has executed and delivered this Demand as of the
     day of     , 20    . 
  

					
	 DEG — DEUTSCHE INVESTITIONS- UND ENTWICKLUNGSGESELLSCHAFT

MBH, as Global Agent

		
	 By:
	 	  

	 Name:
	 	
	 Title:
	 	
		
	 By:
	 	  

	 Name:
	 	
	 Title:

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