Document:

Unassociated Document

     

    
      Prime
Sun Power Inc.

      

      Financing
Agreement

      

      This
Financing Agreement is
hereby made by and between Prime Sun Power Inc. (“Company")
and the subscriber set forth on the signature page hereto ("Subscriber"), dated
as of the date set forth on the signature page hereto (this “Agreement”).

      

      WITNESSETH:

      

      WHEREAS, Subscriber desires to
obtain Company’s right, title, and interest, in and to twenty percent (20%) of
net profits rights of the sales of Prime Sun Power Italia S.r.l. in Italy with
the assets which are composed of one hundred megawatt (100 Mwp) solar
photovoltaic (“PV”)
power plants (the “Net
Profit Rights”) to an institutional investor, upon the terms and subject
to the conditions hereinafter set forth;

      

      WHEREAS, The Company’s purpose
is to serve as a utility company developing, building and operating PV power
plants in Italy as to which 100 Mwp licensed capacity will be sold;

      

      WHEREAS, the Company desires
to accept special purpose financing offered by the Subscriber (the “Financing”),
whereby a condition of such Financing is the participation of Subscriber in the
Net Profit Rights described herein;

      

      WHEREAS, in consideration of
the Financing
offered by Subscriber to the Company, the Company
desires to convey to Subscriber Net Profit Rights, consisting of 20% of the Net
Profit Rights of the sale of Prime Sun Power Italia S.r.l., in Italy that will
be determined according to the market standard accounting rules and the balance
sheet of the Company, upon the terms and subject to the conditions set
forth herein;

      

      NOW, THEREFORE, in consideration
of the foregoing, the agreements herein contained, and other good and valuable
consideration the sufficiency of which are hereby acknowledged as adequate in
all respects, the parties hereto agree as follows:

      

      
        	
                 
      

              	
                1.

              	
                Conveyance:
      Subscriber has hereby transferred the amount of €290,000.00 (Two Hundred
      and Ninety Thousand Euros) and will transfer €180,000.00 (One Hundred
      Eighty Thousand Euros) immediately following execution hereby for a total
      of €470,000.00 (Four Hundred Thousand and Seventy Thousand Euros) (“Purchase
      Price”) as consideration for the Company hereby conveying to
      Subscriber the Net Profit Rights to Prime Sun Power Italia
      S.r.l.  Upon receipt of the full Purchase Price, all of the Net
      Profit Rights shall be assigned to the Subscriber (the “Closing”).

              

      

      

      
        	
                 
      

              	
                2.

              	
                Reinvestment.
      The Subscriber formally agrees to reinvest at least fifty percent (50%) of
      the proceeds of the Net Profits Rights into one or both of the following
      as determined by the Subscriber: (a) new projects of Prime Sun Power Inc.
      or (b) shares of Prime Sun Power Inc., in each case at the purchase price
      as mutually agreed by the parties.  Determination of the
      reinvestment and precise amount will be decided by both parties before
      releasing the proceeds of the Net Profit Rights to the Subscriber,
      provided, however not less than twenty percent (20%) of the proceeds from
      the Net Profits Rights shall be delivered to the Subscriber not later than
      ten (10) business days following the closing of each and every transaction
      by the Company pertaining to the Net Profits
  Rights.

              

      

       

      
        
          
          

        

        
          
          

          
            

          

        

        
          
          

        

      

       

      
        
          Prime Sun
Power Inc. – Financing Agreement

          
            
              

            

          

           

           

        

      

      
        	
                 
      

              	
                3.

              	
                Subscriber
      Representations and Warranties.

              

      

      

      The
Subscriber acknowledges that the offering and sale of the Net Profit Rights is
intended to be exempt from registration under the securities laws of the United
States and all other applicable jurisdictions and hereby acknowledges,
represents and warrants to all of the following:

      

      
        	
                 
      

              	
                a.

              	
                The
      Subscriber represents and warrants that it is an individual, or a legal
      entity regulated under the laws of the jurisdiction set forth on the
      signature page hereto and the Subscribe is not  “U.S. Person” as
      such term is defined in Rule 902(k) of Regulations S promulgated under the
      Securities Act of 1933, as amended.  The Subscriber acknowledges
      and agrees that it is acquiring the Net Profit Rights solely for its own
      account for investment purposes only, and not with a view to, or for,
      resale, distribution or fractionalization thereof in whole or in part; and
      no other person has a direct beneficial interest in such Net Profit Rights
      thereof or any portion thereof.  The Subscriber does not have
      any contract, undertaking, agreement or arrangement with any person to
      sell, transfer or grant participations to such person or to any third
      person, with respect to the Net Profit Rights for which the Subscriber is
      subscribing or any part of the Net Profit Rights.  The
      Subscriber does not control, nor is the Investor controlled by or under
      common control with, any other Subscriber or investor in the
      Company.  No person or persons other than Subscriber has a
      beneficial interest subscribed hereunder.  The Subscriber
      acknowledges and agrees that the Net Profit Rights do not constitute an
      equity investment in the Company and such rights are not publicly tradable
      and will not become publicly tradable and may not be assigned by
      Subscriber except in compliance with this
  Agreement.

              

      

      

      
        	
                 
      

              	
                b.

              	
                The
      Subscriber has full power and authority to enter into this Agreement, the
      execution and delivery of this Agreement has been duly authorized, if
      applicable, and this Agreement constitutes a valid and legally binding
      obligation of the Subscriber.

              

      

      

      
        	
                 
      

              	
                c.

              	
                The
      Subscriber is (i) experienced in making investments of the kind described
      in this Agreement and the related documents, (ii) able, by reason of the
      business and financial experience of its officers (if an entity) and
      professional advisors (who are not affiliated with or compensated in any
      way by the Company or any of its affiliates or selling agents), to protect
      its own interests in connection with the transactions described in this
      Agreement, and the related documents, and (iii) able to afford the entire
      loss of its investment in the Net Profit Rights.  The Subscriber
      further understands that the Company is in inception stage of development
      and has no Net Profit generating operations; the Company currently has no
      agreements or arrangements with any persons in connection
      therewith.

              

      

      

      
        	
                 
      

              	
                d.

              	
                The
      Subscriber is aware that no federal or state governmental agency has (i)
      made any finding or determination as to the fairness of this investment,
      (ii) made any recommendation or endorsement of the Net Profit Rights or
      the Company, or (iii) guaranteed or insured any investment in the Net
      Profit Rights or any investment pertaining to the
  Company

              

      

      

      
        	
                 
      

              	
                e.

              	
                The
      Subscriber acknowledges its understanding that the offering and sale of
      the Net Profit Rights is intended to be exempt from registration under the
      securities laws of the United States and all other jurisdictions, and
      furthermore acknowledges, represents and warrants to all of the following:
      (i) The Subscriber acknowledges that the basis for the exemption from
      registration of the Net Profit Rights may not be present if,
      notwithstanding such representations, the Subscriber is merely acquiring
      the Net Profit Rights for a short term fixed or short determinable period
      in the future for less than one year, or for a market rise, or for sale if
      the market does not rise, provided, however, the Subscriber reserves the
      right to make decisions regarding disposition of the Net Profit Rights at
      its own discretion; (ii) The Subscriber has the financial ability to bear
      the economic risk of his investment, has adequate means for providing for
      his current needs and personal contingencies and has no need for liquidity
      with respect to his investment in the Company; (iii) The Subscriber has
      such knowledge and experience in financial and business matters as to be
      capable of evaluating the merits and risks of the prospective investment
      in the Net Profit Rights, and the represents it has not been organized for
      the purpose of acquiring the Net Profit Rights; (iv) The Subscriber has
      been provided an opportunity for a reasonable period of time prior to the
      date of signature by the Subscriber of this Agreement to obtain additional
      information concerning the offering of the Net Profit Rights, the Company
      and all other information to the extent the Company possesses such
      information or can acquire it without unreasonable effort or
      expense.

              

      

       

      
        
          
          

        

        
          2

          
            

          

        

        
          
          

        

      

       

      
        
          Prime Sun
Power Inc. – Financing Agreement

          
            
              

            

          

        

        
          

        

      

      
        	
                 
      

              	
                f.

              	
                The
      Subscriber is not relying on the Company, or its affiliates or agents with
      respect to economic considerations involved in this
      investment.  The Subscriber has relied solely on its own
      respective advisors in making an investment determination.  The
      Subscriber has received all documents, records, books and other
      information pertaining to the Subscriber’s investment in the Company that
      have been requested by the Subscriber and the Company has answered
      all questions of the Subscriber consistent with the information presented
      in the Offering Memorandum.

              

      

      

      
        	
                 
      

              	
                g.

              	
                No
      representations or warranties have been made to the Subscriber by the
      Company, or any officer, employee, agent, affiliate or subsidiary of the
      Company, other than the representations of the Company contained herein,
      and in subscribing for the Net Profit Rights the Subscriber is not relying
      upon any representations other than those contained herein.  The
      Subscriber has been furnished, has carefully read, and has relied solely
      upon the information provided by the
Company.

              

      

      

      
        	
                 
      

              	
                h.

              	
                The
      Subscriber will not offer to sell or sell the Net Profit Rights in any
      jurisdiction unless the Subscriber obtains all applicable required legal
      consents and regulatory approvals, including consent of the Company which
      will not be unreasonably withheld.

              

      

      

      
        	
                 
      

              	
                i.

              	
                The
      Subscriber understands that the prices of the Net Profit Rights bears no
      relation to the assets, book value or net worth of the Company and were
      determined arbitrarily by the Company. The Subscriber understands that an
      investment in the Net Profit Rights is a speculative investment which
      involves a high degree of risk and the potential loss of investment. The
      Subscriber's overall commitment to investments which are not readily
      marketable is not disproportionate to the Subscriber's net worth, and an
      investment in the Net Profit Rights will not cause such overall commitment
      to become excessive.

              

      

      

      
        	
                 
      

              	
                j.

              	
                The
      Subscriber represents and warrants to the Company that the consideration
      tendered by the Subscriber to the Company are not and will not be directly
      or indirectly derived from activities that may contravene federal, state
      and international laws and regulations, including anti-money laundering
      laws;1 and the
      OFAC prohibits, among other things, the engagement in transactions with,
      and the provisions of services to, certain foreign countries, territories,
      entities and individuals.  The lists of OFAC prohibited
      countries, territories, persons and entities can be found on the OFAC
      website.  The Subscriber hereby represents and warrants, to the
      best of its knowledge, that none of the Subscriber, any person
      controlling, controlled by, or under common control with, the Subscriber,
      any person having a beneficial interest in the Subscriber, or any person
      for whom the Subscriber is acting as agent or nominee in connection with
      this investment is: a country, territory, individual or entity named on an
      OFAC list, or is an individual or entity that resides or has a place of
      business in a country or territory named on such lists,  a
      senior foreign political figure2, or any immediate
      family member3
      or close associate4 of a senior foreign
      political figure within the meaning of the U.S. Department of Treasury’s
      Guidance on Enhanced Scrutiny for Transactions That May Involve the
      Proceeds of Foreign Official Corruption5 and as referenced
      in the USA Patriot Act of 2001;6 or a "foreign shell
      bank"7 and does
      not transact business with a "foreign shell bank." The Subscriber agrees
      to promptly notify the Company should the Subscriber become aware of any
      change in the information set forth in these
      representations.  The Subscriber understands that, by law, the
      Company may be obligated to "freeze the account" of such Subscriber,
      either by prohibiting additional amounts, declining any redemption
      requests and/or segregating the assets in the account in compliance with
      governmental regulations, and the Company may also be required to report
      such action and to disclose the Subscriber’s identity to OFAC. The
      Subscriber understands that the Company may not accept any contributed
      amounts from the Subscriber if the Subscriber cannot make the
      representation set forth above and the Company may return any amounts to
      Subscriber if the information provided to the Company is incomplete or is
      deemed suspicious.  The Subscriber represents and warrants that
      the acceptance of this Agreement together with the appropriate remittance
      will not breach any applicable anti-money laundering rules and
      regulations.  The Subscriber undertakes to provide verification of
      its identity reasonably satisfactory (on a confidential basis), to the
      Company and/or any entity acting on the Company’s behalf in respect of the
      acceptance of this Agreement, promptly on
  request.

              

      

       

      
        
          

        

      

       

      1 See, U.S. Treasury Department’s Office of
Foreign Assets Control ("OFAC") website at http://www.treas.gov/ofac.

      
        2 A
“senior foreign political figure” is defined as a current or former official in
the executive, legislative, administrative, military or judicial branches of a
non-U.S. government (whether elected or not), a senior official of a major
non-U.S. political party, or a senior executive of a non-U.S. government-owned
corporation.  In addition, a “senior foreign political figure”
includes any corporation, business or other entity that has been formed by, or
for the benefit of, a senior foreign political figure.

        
          3
“Immediate family” of a senior foreign political figure typically includes the
figure’s parents, siblings, spouse, children and in-laws. 

        

        
          4 A “close
associate” of a senior foreign political figure is a person who is widely and
publicly known to maintain an unusually close relationship with the senior
foreign political figure, and includes a person who is in a position to conduct
substantial domestic and international financial transactions on behalf of the
senior foreign political figure.

        

        
          5 Please see http://www.federalreserve.gov/boarddocs/srletters/2001/sr0103a1.pdf for a more extensive discussion of the
referenced terms and definitions.  

        

        
          6 The
Uniting and Strengthening America by Providing Appropriate Tools Required to
Intercept and Obstruct Terrorism Act of 2001, Pub. I. No. 107-56
(2001).

        

        
          7 A
“foreign shell bank” is a foreign bank that does not have a physical presence in
any country.

           

        

      

      
        
          
          

        

        
          3

          
            

          

        

        
          
          

        

      

      
         

        
          Prime Sun
Power Inc. – Financing Agreement

          
            
              

            

          

        

        
          

        

      

      
        	
                 
      

              	
                4.

              	
                Development
      Stage.  Except as provided herein, Company does not give or make
      any representations or warranties to Subscriber in connection with the Net
      Profit Rights. The Net Profit Rights are hereby purchased and conveyed “as
      is,” “where is,” and Company makes no representations or warranties of any
      nature whatsoever with respect to the Net Profit Rights, including no
      representation or warranty as to whether or not any subject matter
      underlying the Net Profit Rights meets applicable electrical, machine
      guarding and/or other environmental, health and safety regulations,
      parameters or operational conditions.  Subscriber acknowledges
      and agrees that Subscriber is not relying on any additional
      representations or warranties of any kind whatsoever, express, oral,
      statutory or implied. No implied statutory warranty of merchantability or
      fitness for a particular purpose applies
hereby.

              

      

      

      
        	
                 
      

              	
                5.

              	
                Obligations:
      Any tax obligation or liability that may accrue in connection with the Net
      Profit Rights or payment of the Purchase Price or otherwise in connection
      with this transaction, or in any way arising in connection with the Net
      Profit Rights, including without limitation, any and all Value Added Tax,
      shall be at the sole account and charge of
  Subscriber.

              

      

      

      
        	
                 
      

              	
                6.

              	
                Modification.  Neither
      this Agreement nor any provisions hereof shall be modified, discharged or
      terminated except by an instrument in writing signed by the party against
      whom any waiver, change, discharge or termination is
    sought.

              

      

      

      
        	
                 
      

              	
                7.

              	
                Successors
      and Assigns.  This Agreement and the Net Profits Rights are not
      transferable or assignable by the Subscriber without the written consent
      of the Company which shall not be unreasonably withheld, subject to
      compliance with all laws, rules and applicable regulations.  The
      provisions of this Agreement shall be binding upon and insure to the
      benefit of the parties hereto and their respective successors and
      assigns.  The rights of the Company under this Agreement may be
      assigned by the Company without consent of the Subscriber provided that
      all obligations of performance on the part of the Company shall otherwise
      remain subject to performance by the
Company.

              

      

       

      
        
          
          

        

        
          4

          
            

          

        

        
          
          

        

      

      
         

        
          Prime Sun
Power Inc. – Financing Agreement

          
            
              

            

          

        

        
          

        

      

      
        	
                 
      

              	
                8.

              	
                Determinations.  Subscriber
      has had ample opportunity to engage counsel or third party experts to
      independently assess and conduct due diligence of all terms, conditions,
      status of underlying materials, equipment, land options, third party
      agreements and all required governmental approvals underlying the Net
      Profit Rights, and Subscriber has independently determined to proceed with
      this Agreement.

              

      

      

      
        	
                 
      

              	
                9.

              	
                Dispute
      Resolution.  This Agreement shall be governed by and construed
      in accordance with the laws of the State of New York, without giving
      effect to conflicts of law principles.  The invalidity or
      unenforceability of any provision of this Agreement shall not affect the
      validity or enforceability of any other provision of this
      Agreement.  All disputes and controversies arising out of or
      relating to this Agreement shall be finally settled and binding under the
      Rules of International Commercial Dispute Resolution of the American
      Arbitration Association (“ICDR”).  The place of arbitration
      shall be New York.  The Arbitration shall be conducted in
      English by a single arbitrator appointed in accordance with the ICDR
      rules.  Any award, verdict or settlement issued under such
      arbitration may be entered by any party for order of enforcement by any
      court of competent jurisdiction.  The arbitrator shall have no
      power to take interim measures he or she deems necessary, including
      injunctive relief and measures for the protection or conservation of
      property.

              

      

      

      
        	
              	
                10.

              	
                Construction.  For
      purposes of this Agreement, a “business day” is each day on which banks
      are open for business in New York City, New York.  This
      Agreement will be interpreted as negotiated and agreed upon by both
      Parties and shall not be construed against either Party as the
      draftsperson.

              

      

      

      
        	
              	
                11.

              	
                Indemnity.  The
      Subscriber agrees to indemnify and hold harmless the Company, its officers
      and directors, employees and its affiliates and their respective escrow
      agents, successors and assigns and each other person, if any, who controls
      any thereof, against any loss, liability, claim, damage and expense
      whatsoever (including, but not limited to, any and all expenses whatsoever
      reasonably incurred in investigating, preparing or defending against any
      litigation commenced or threatened or any claim whatsoever) arising out of
      or based upon any false representation or warranty or breach or failure by
      the Subscriber to comply with any covenant or agreement made by the
      Subscriber herein or in any other document furnished by the Subscriber to
      any of the foregoing in connection with this transaction. The Subscriber
      releases, indemnifies and holds harmless the Company’s attorneys in
      connection with receipt of the Purchase Price into the attorney trust
      account as escrow agent and irrevocable transmission of such funds to the
      Company.

              

      

      

      
        	
              	
                12.

              	
                Notices.  Any
      notice, demand or other communication which any party hereto may be
      required, or may elect, to give to party hereto shall be sufficiently
      given if (a) sent by registered or certified mail, return receipt
      requested, addressed to the receiving party’s address as provided herein,
      (b) sent by internationally recognized courier with confirmation of
      delivery or evidence of refusal; or (c) delivered personally at such
      address.  In the case of the Company, all notices shall be
      deemed given two business days after mailing to the Subscriber; and in the
      case of the Subscriber, all notices shall be deemed given to the Company
      upon written confirmation of receipt by the Company.  The
      Company may give notice of acceptance of this Agreement by verbal advice,
      e-mail or fax to any address or phone number provided to the Company by
      the Subscriber on the Signature page
below.

              

      

      

      
        	
              	
                13.

              	
                Entire
      Agreement: This Agreement constitutes the entire agreement between the
      parties with respect to the subject matter hereof together with that
      certain Note issued by the Company and dated as of even date herewith,
      which is hereby incorporated herein by reference thereto, and supersedes
      all prior agreements, understandings and negotiations, both written and
      oral, between the parties with respect to the subject matter of this
      Agreement. In the event of any conflict between the Note and this
      Agreement, this Agreement shall control.  No other
      representation, inducement, promise, understanding, condition or warranty
      not set forth herein or in the Note has been made or relied upon by either
      party hereto.

              

      

       

      
        
          
          

        

        
          5

          
            

          

        

        
          
          

        

      

      
         

        
          
            Prime Sun
Power Inc. – Financing Agreement

            
              
                

              

            

          

        

      

      
 

      
        	
              	
                14.

              	
                Survival:
      The covenants, agreements, indemnities, representations and warranties
      contained in this Agreement shall survive the signing and Closing of this
      Agreement.

              

      

      

      
        	
              	
                15.

              	
                Counterparts;
      Effectiveness. This Agreement may be signed in any number of counterparts,
      each of which shall be an original, with the same effect as if the
      signatures thereto and hereto were upon the same instrument. Similarly,
      facsimile copies shall be given the same binding effect as
      originals.

              

      

       

      [Signature
Page Follows]

       

      
        
          
          

        

        
          6

          
            

          

        

        
          
          

        

      

      
         

        
          
            Prime Sun
Power Inc. – Financing Agreement

            
              
                

              

            

          

        

      

       

       

        IN
WITNESS WHEREOF, the Subscriber has executed this Agreement for the Purchase of
the Net Profit Rights:

      

      

      Purchase Price :
**€470,000.00 (Four Hundred
Seventy Thousand Euros)**

      

      SUBSCRIBER:

      

      
        	
                Print
      Full Legal Name:  

              	
                CRG Finance
      AG

              

      

      
        	
                Address: 
      

              	
                23, Bahnhofstrasse – CH-6300
    Zug

              
	 
      	 
      

      

      

      Purchaser:
CRG Finance AG

      

      

      
        	
                By  

              	
                (Signature):
      /s/ Sergei Stetsenko

              	 
      
	 
      	
                Print
      Name:   

              	
                Sergei
      Stetsenko

              	 
      
	 
      	
                Title:

              	
                President
      and CEO

              	 
      

      

      

      

      The
Company hereby accepts the above application for subscription for the Net Profit
Rights set forth above as of this 2nd day
of March, 2010:

      

      Prime
Sun Power Inc.

      

      

      
        	
                By:  

              	
                /s/ Oliver de Vergnies

              	 
      
	 
      	
                Name:
      Olivier de Vergnies

              	 
      
	 
      	
                Title:
      Chief Executive Officer

              	 
      

      

       

      
        
          
          

        

        
          7

          
            

          

        

        
          
          

        

      

       

      
        
          
            Prime
Sun Power Inc. – Financing Agreement

            
              
                

              

            

          

        

      

       

       

      Wiring
Instructions

      

      For
Payment of the Purchase Price of the Net Profit Rights:

      The
following are the wire instructions for the account into which the payment of
the Purchase Price for the Net Profit Rights subscribed should be wired upon
acceptance of the Agreement by the Company.

      

      Prime Sun
Power S.r.l. Italia

      Unicredit
Banca SPA

      Agenzia
08060 Torino Politecnico

      C/O
Politecnico Via D'Ovidio, 6 Torino 10129, Italy

      Account
Number: 000100826846

      IBAN:
IT68Y0200801160000100826846

      BIC:
UNCRITB1AG0

      

      FOR
PROPER CREDIT, PLEASE MAKE SURE THAT THE WIRE TRANSFER INFORMATION CLEARLY
INCLUDES THE NAME OF THE SUBSCRIBER OF RECORD.  PLEASE RETAIN A COPY
OF ALL WIRE TRANSFERS INSTRUCTIONS AND CONFIRMATIONS.

    

     

    
      
        
        

      

      
        8PRIME
SUN POWER INC.

     

    SENIOR
PROMISSORY NOTE

     

    **€470,000.00 (Four Hundred
Seventy Thousand Euros)**

     

    
      	
              1.

            	
              FOR
      VALUE RECEIVED, Prime Sun Power
      Inc.. a Nevada corporation (the “Borrower”), hereby promises to pay to
      the order of CRG
      Finance AG
      (“Lender”), at such time, place
      and in such manner as Lender may specify in writing, the principal amount
      of **€470,000.00
      (Four Hundred Seventy Thousand Euros)**(the “Principal”) pursuant to the terms
      and conditions specified herein (this “Note”). The Borrower shall pay
      interest on the outstanding principal of this Note at the annual rate of
      seven
      and one-half percent (7.5%) per annum,
      calculated based on a year of 365 days and actual days elapsed (the “Interest”).

            

    

     

    
      	
              2.

            	
              The
      Borrower hereby promises to pay to the order of the Lender the Principal
      and all Interest due thereon within thirty calendar (30) days upon
      delivery to the Company of written demand by the Lender (the “Due Date”),
      at such place and in such manner as Lender may specify in writing. This
      Note is hereby deemed by the Borrower to be senior to any and all other
      shareholder loans previously made to the Borrower and shall be paid in
      full prior to repayment by the Borrower of any other such shareholder
      loans.

            

    

     

    
      	
              3.

            	
              Any
      and all fees, costs, expenses and disbursements charged by financial
      institutions with respect to wire transfer or other transmittal charges
      incurred in connection with delivery of the Principal from the Lender to
      the Borrower shall be deemed to have been received by the Borrower from
      the Lender and all such amounts shall be included in the calculation of
      Principal hereunder.

            

    

     

    
      	
              4.

            	
              This
      Note shall not be transferable by Borrower and the Borrower may not
      assign, transfer or sell all or a portion of its rights and interests to
      and under this Note to any persons and any such purported transfer shall
      be void ab initio. The Lender may transfer and assign this Note at its
      sole discretion.

            

    

     

    
      	
              5.

            	
              The
      failure at any time of the Lender to exercise any of its options or any
      other rights hereunder shall not constitute a waiver thereof, nor shall it
      be a bar to the exercise of any of its options or rights at a later date.
      All rights and remedies of the Lender shall be cumulative and may be
      pursued singly, successively or together, at the option of the Lender. The
      acceptance by the Lender of any partial payment shall not constitute a
      waiver of any default or of any of the Lender’s rights under this Note. No
      waiver of any of its rights hereunder, and no modification or amendment of
      this Note, shall be deemed to be made by the Lender unless the same shall
      be in writing, duly signed on behalf of the Lender; and each such waiver
      shall apply only with respect to the specific instance involved, and shall
      in no way impair the rights of the Lender in any other respect at any
      other time.

            

    

     

    
      	
              6.

            	
              Any
      term or condition of this Note may be waived at any time by the party that
      is entitled to the benefit thereof, but no such waiver shall be effective
      unless set forth in a written instrument duly executed by or on behalf of
      the party waiving such term or
condition.

            

    

    
      
         

      

      
        Page 1 of
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                Prime
      Sun Power Inc

              	
                Promissory
      Note

              

      

    

     

    
      
        	
                7.

              	
                The
      Borrower represents and warrants that this Note is the valid and binding
      obligation of the Borrower, fully enforceable in accordance with its
      terms. The execution and delivery by the Borrower of this Note, the
      performance by the Borrower of its obligations hereunder and the
      consummation of the transactions contemplated hereby and thereby does not
      and will not: (a) conflict with or result in a violation or breach of any
      of the terms, conditions or provisions of the Borrower’s charter
      instruments; (b) conflict with or result in a violation or breach of any
      term or provision of any law or order applicable to the Borrower or any of
      its assets and properties; or (c) (i) conflict with or result in a
      violation or breach of, or (ii) result in or give to any person any rights
      or create any additional or increased liability of the Borrower under or
      create or impose any lien upon, the Borrower or any of its assets and
      properties under, any contract or permit to which the Borrower is a party
      or by which its assets and properties are
bound.

              

      

    

     

    
      	
              8.

            	
              If
      any provision of this Note is held to be illegal, invalid or unenforceable
      under any present or future Law, and if the rights or obligations of any
      party hereto under this Note will not be materially and adversely affected
      thereby, (i) such provision will be fully severable; (ii) this Note will
      be construed and enforced as if such illegal, invalid or unenforceable
      provision had never comprised a part hereof; (iii) the remaining
      provisions of this Note will remain in full force and effect and will not
      be affected by the illegal, invalid or unenforceable provision or by its
      severance here from; and (iv) in lieu of such illegal, invalid or
      unenforceable provision, there will be added automatically as a part of
      this Note a legal, valid and enforceable provision as similar in terms to
      such illegal, invalid or unenforceable provision as may be
      possible.

            

    

     

    
      	
              9.

            	
              Any notice, authorization,
      request or demand required or permitted to be given hereunder shall be in
      writing and shall be deemed to have been duly given two days after it is
      sent by an internationally recognized delivery service to the address of
      record of the Lender or the Borrower, respectively. Any party may change
      its address for such communications by giving notice thereof to the other
      parties in conformity with this
Section.

            

    

     

    
      	
              10.

            	
              A
      default shall exist on this Note if any of the following occurs and is
      continuing: (i) Failure to pay Principal and any accrued Interest on the
      Note on or before the Due Date; (ii) Failure by the Borrower to perform or
      observe any other covenant or agreement of the Borrower contained in this
      Note; (iii) A custodian, receiver, liquidator or trustee of the Borrower,
      or any other person acting under actual or purported force of law takes
      ownership, possession or title to Borrower property; (iv) any of the
      property of the Borrower is sequestered by court order; (v) a petition or
      other proceeding, voluntary or otherwise is filed by or against the
      Borrower under any bankruptcy, reorganization, arrangement, insolvency,
      readjustment of indebtedness, dissolution or liquidation law of any
      jurisdiction, whether now or hereafter in effect; or (vi) the Borrower
      makes an assignment for the benefit of its creditors, or generally fails
      to pay its obligations as they become due, or consents to the appointment
      of or taking possession by a custodian, receiver, liquidator or trustee of
      the Borrower or all or any part of its property. Upon any such default,
      the Borrower shall immediately notify the Lender, and upon notice to the
      Borrower, the Lender may declare the Principal of the Note, plus accrued
      Interest, to be immediately due and payable, upon which such Principal and
      accrued Interest shall become due and payable immediately. Interest upon
      default shall thereafter accrue at the rate of 15% per annum, calculated
      based on a year of 365 days and actual days elapsed from the date of such
      default.

            

    

    
      
         

      

      
        Page 2 of
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                Prime
      Sun Power Inc

              	
                Promissory
      Note

              

      

    

     

    
      	
              11.

            	
              The
      Borrower, any endorser, or guarantor hereof or in the future (individually
      an “Obligor” and collectively “Obligors”) and each of them jointly and
      severally: (a) waive presentment, demand, protest, notice of demand,
      notice of intent to accelerate, notice of acceleration of maturity, notice
      of protest, notice of nonpayment, notice of dishonor, and any other notice
      required to be given under the law to any Obligor in connection with the
      delivery, acceptance, performance, default or enforcement of this Note,
      any endorsement or guaranty of this Note, any pledge, security, guaranty
      or other documents executed in connection with this Note; (b) consent to
      all delays, extensions, renewals or other modifications of this Note, or
      waivers of any term hereof or thereof, or release or discharge by the
      Lender of any of Obligors, or release, substitution or exchange of any
      security for the payment hereof, or the failure to act on the part of the
      Lender or any indulgence shown by the Lender (without notice to or further
      assent from any of Obligors), and agree that no such action, failure to
      act or failure to exercise any right or remedy by the Lender shall in any
      way affect or impair the Obligations (as hereinafter defined) of any
      Obligors or be construed as a waiver by the Lender of, or otherwise
      affect, any of the Lender’s rights under this Note, under any endorsement
      or guaranty of this Note; (c) if the Borrower fails to fulfill its
      obligations hereunder when due, agrees to pay, on demand, all costs and
      expenses of enforcement of collection of this Note or of any endorsement
      or guaranty hereof and/or the enforcement of the Lender’s rights with
      respect to, or the administration, supervision, preservation, protection
      of, or realization upon, any property securing payment hereof, including,
      without limitation, all attorney’s fees, costs, expenses and
      disbursements, including, without further limitation, any and all fees
      related to any legal proceeding, suit, mediation arbitration, out of court
      payment agreement, trial, appeal, bankruptcy proceedings or any other
      actions of any nature whatsoever required on the part of Lender or
      Lender’s representatives to enforce this Note and the rights hereunder;
      and (d) waive the right to interpose any defense, set-off or counterclaim
      of any nature or description.

            

    

     

    
      	
              12.

            	
              The
      Borrower will not, by amendment of its Certificate of Incorporation or
      through any reorganization, recapitalization, transfer of assets,
      consolidation, merger, dissolution, issue or sale of securities or any
      other voluntary action, avoid or seek to avoid the observance or
      performance of any of the terms to be observed or performed hereunder by
      the Borrower, but will at all times in good faith assist in the carrying
      out of all the provisions of this Agreement and in the taking of all such
      action as may be necessary or appropriate in order to protect the rights
      of the Lender of this Note against impairment. This Note shall be
      enforceable against all successors and assigns of Borrower. Borrower
      hereby covenants that all of its subsidiaries and affiliates shall jointly
      and severally perform this Agreement to the same and full extent on behalf
      of Borrower if Borrower is unable to
perform.

            

    

     

    
      	
              13.

            	
              This
      Note having a value of more than US$250,0000 shall be governed, construed
      and enforced under the laws of the State of New York, without regard to
      conflict of law principles of any jurisdiction to the contrary. Dispute
      resolution shall be made in accordance with that certain Financing
      Agreement between the Borrower and the Lender, of which this Note is an
      integral part and is hereby incorporated by reference therein by reference
      hereto.

            

    

    
      
         

      

      
        Page 3 of
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                Prime
      Sun Power Inc

              	
                Promissory
      Note

              

      

    

     

    
      	
              14.

            	
              This
      Note supersedes all prior discussions and agreements between the parties
      with respect to the subject matter hereof and contains the sole and entire
      agreement between the parties hereto with respect to the subject matter
      hereof, together with that certain Financing Agreement between the
      Borrower and the Lender, of which this Note is an integral part and is
      hereby incorporated by reference therein by reference
    hereto.

            

    

     

    
      	
              15.

            	
              If
      the Lender loses this Note, the Borrower shall issue an identical
      replacement note to the Lender upon the Lender’s delivery to the Borrower
      of a customary agreement to indemnify the Borrower reasonably satisfactory
      to the Borrower for any losses resulting from issuance of the replacement
      note.

            

    

     

    
      	
              16.

            	
              The
      terms and conditions of this Note shall inure to the benefit of and be
      binding upon the respective successors and assigns of the parties. Nothing
      in this Note, express or implied, is intended to confer upon any party
      other than the parties hereto or their respective successors and assigns
      any rights, remedies, obligations, or liabilities under or by reason of
      this Note, except as expressly provided in this
  Note.

            

    

    
       

    

    IN
WITNESS WHEREOF, the Borrower has caused this Note to be dated, executed and
issuedon its behalf, by its duly appointed and authorized officer, as of the 2nd day of March,
2010.

     

    PRIME
SUN POWER INC.

     

    
      
        
          	
                  By:

                	/s/
      Olivier de Vergnies   
	
                   
      

                	
                  Name: Olivier de Vergnies

                
	 
      	
                  Title:  
      Chief Executive Officer

                

        

      

    

     

    
      
         

      

      
        Page 4 of
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