Document:

Exhibit 10.41(a)

 

CONFIDENTIAL TREATMENT HAS BEEN
REQUESTED FOR THE REDACTED PORTIONS OF THIS AGREEMENT.  THE REDACTIONS ARE INDICATED WITH THREE
ASTERISKS (“***”).  A COMPLETE VERSION OF
THIS AGREEMENT HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

(Multicurrency – Cross
Border)

ISDA®

International
Swap Dealers Association, Inc.

 

MASTER
AGREEMENT

 

dated as of June 30, 2008

 

	
  CITIGROUP ENERGY INC.

  	
  and

  	
  Noble Environmental Power 2008
  Hold Co, LLC

  

 

have entered and/or anticipate entering into one of
more transactions (each a “Transaction”) that are or will be governed by this
Master Agreement, which includes the schedule (the “Schedule”), and the
documents and other confirming evidence (each a “Confirmation”) exchanged
between the parties confirming those Transactions.

 

Accordingly, the parties agree as follows: —

 

1.           Interpretation

 

(a)          Definitions.  The terms defined in Section 14 and
in the Schedule will have the meanings therein specified for the purpose of
this Master Agreement.

 

(b)          Inconsistency.  In the event of any inconsistency between the
provisions of the Schedule and the other provisions of this Master Agreement,
the Schedule will prevail. In the event of any inconsistency between the
provisions of any Confirmation and this Master Agreement (including the
Schedule), such Confirmation will prevail for the purpose of the relevant
Transaction.

 

(c)          Single Agreement.  All Transactions are entered into in reliance
on the fact that this Master Agreement and all Confirmations form a single
agreement between the parties (collectively referred to as this “Agreement”),
and the parties would not otherwise enter into any Transactions.

 

2.           Obligations

 

(a)          General Conditions.

 

(i)            Each
party will make each payment or delivery specified in each Confirmation to be
made by it, subject to the other provisions of this Agreement.

 

(ii)           Payments
under this Agreement will be made on the due date for value on that date in the
place of the account specified in the relevant Confirmation or otherwise pursuant
to this Agreement, in freely transferable funds and in the manner customary for
payments in the required currency. Where settlement is by delivery (that is,
other than by payment), such delivery will be made for receipt on the due date
in the manner customary for the relevant obligation unless otherwise specified
in the relevant Confirmation or elsewhere in this Agreement.

 

(iii)          Each
obligation of each party under Section 2(a)(i) is subject to (1) the
condition precedent that no Event of Default or Potential Event of Default with
respect to the other party has occurred and is continuing, (2) the
condition precedent that no Early Termination Date in respect of the relevant
Transaction has occurred or been effectively designated and (3) each other
applicable condition precedent specified in this Agreement.

 

Copyright © 1992
by International Swap Dealers Association, Inc.

 

 

(b)          Change of Account.  Either party may change its account for
receiving a payment or delivery by giving notice to the other party at least
five Local Business Days prior to the scheduled date for the payment or
delivery to which such change applies unless such other party gives timely
notice of a reasonable objection to such change.

 

(c)          Netting.  If on any date amounts would otherwise be
payable: —

 

(i)            in
the same currency; and

 

(ii)           in
respect of the same Transaction,

 

by each party to the other. then, on such date, each
party’s obligation to make payment of any such amount will be automatically
satisfied and discharged and, if the aggregate amount that would otherwise have
been payable by one party exceeds the aggregate amount that would otherwise
have been payable by the other party, replaced by an obligation upon the party
by whom the larger aggregate amount would have been payable to pay to the other
party the excess of the larger aggregate amount over the smaller aggregate
amount.

 

The parties may elect in respect of two or more
Transactions that a net amount will be determined in respect of all amounts
payable on the same date in the same currency in respect of such Transactions,
regardless of whether such amounts are payable in respect of the same
Transaction. The election may be made in the Schedule or a Confirmation by
specifying that subparagraph (ii) above will not apply to the Transactions
identified as being subject to the election, together with the starting date
(in which case subparagraph (ii) above will not, or will cease to, apply
to such Transactions from such date). This election may be made separately for
different groups of Transactions and will apply separately to each pairing of
Offices through which the parties make and receive payments or deliveries.

 

(d)          Deduction or Withholding
for Tax.

 

(i)            Gross-Up.  All
payments under this Agreement will be made without any deduction or withholding
for or on account of any Tax unless such deduction or withholding is required
by any applicable law, as modified by the practice of any relevant governmental
revenue authority, then in effect.  If a
party is so required to deduct or withhold, then that party (“X”) will: —

 

(1)           promptly notify the
other party (“Y”) of such requirement;

 

(2)           pay to the relevant
authorities the full amount required to be deducted or withheld (including the
full amount required to be deducted or withheld from any additional amount paid
by X to Y under this Section 2(d)) promptly upon the earlier of
determining that such deduction or withholding is required or receiving notice
that such amount has been assessed against Y;

 

(3)           promptly forward to
Y an official receipt (or a certified copy), or other documentation reasonably
acceptable to Y, evidencing such payment to such authorities; and

 

(4)           if such Tax is an
Indemnifiable Tax, pay to Y, in addition to the payment to which Y is otherwise
entitled under this Agreement, such additional amount as is necessary to ensure
that the net amount actually received by Y (free and clear of Indemnifiable
Taxes. whether assessed against X or Y) will equal the full amount Y would have
received had no such deduction or withholding been required. However, X will
not be required to pay any additional amount to Y to the extent that it would
not be required to be paid but for: —

 

(A)          the failure by Y to
comply with or perform any agreement contained in Section 4(a)(i), 4(a)(iii) or
4(d); or

 

(B)           the failure of a
representation made by Y pursuant to Section 3(f) to be accurate and
true unless such failure would not have occurred but for (I) any action
taken by a taxing authority, or brought in a court of competent jurisdiction,
on or after the date on which a Transaction is entered into (regardless of
whether such action is taken or brought with respect to a party to this
Agreement) or (II) a Change in Tax Law.

 

2

 

(ii)           Liability.  If: —

 

(1)           X is required by any
applicable law, as modified by the practice of any relevant governmental
revenue authority, to make any deduction or withholding in respect of which X
would not be required to pay an additional amount to Y under Section 2(d)(i)(4);

 

(2)           X does not so deduct
or withhold; and

 

(3)           a liability
resulting from such Tax is assessed directly against X,

 

then, except to the extent Y has satisfied or then satisfies the
liability resulting from such Tax, Y will promptly pay to X the amount of such
liability (including any related liability for interest, but including any
related liability for penalties only if Y has failed to comply with or perform
any agreement contained in Section 4(a)(i), 4(a)(iii) or 4(d)).

 

(e)          Default Interest; Other
Amounts.  Prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant
Transaction, a party that defaults in the performance of any payment obligation
will, to the extent permitted by law and subject to Section 6(c), be
required to pay interest (before as well as after judgment) on the overdue
amount to the other party on demand in the same currency as such overdue
amount, for the period from (and including) the original due date for payment
to (but excluding) the date of actual payment, at the Default Rate.  Such interest will be calculated on the basis
of daily compounding and the actual number of days elapsed.  If, prior to the occurrence or effective
designation of an Early Termination Date in respect of the relevant
Transaction, a party defaults in the performance of any obligation required to
be settled by delivery, it will compensate the other party on demand if and to
the extent provided for in the relevant Confirmation or elsewhere in this Agreement.

 

3.           Representations

 

Each party represents to the other party (which
representations will be deemed to be repeated by each party on each date on
which a Transaction is entered into and, in the case of the representations in Section 3(f),
at all times until the termination of this Agreement) that: —

 

(a)          Basic Representations.

 

(i)            Status.  It is duly
organised and validly existing under the laws of the jurisdiction of its
organisation or incorporation and, if relevant under such laws, in good
standing;

 

(ii)           Powers.  It has the
power to execute this Agreement and any other documentation relating to this
Agreement to which it is a party, to deliver this Agreement and any other
documentation relating to this Agreement that it is required by this Agreement
to deliver and to perform its obligations under this Agreement and any
obligations it has under any Credit Support Document to which it is a party and
has taken all necessary action to authorise such execution, delivery and
performance;

 

(iii)          No Violation or Conflict. 
Such execution, delivery and performance do not violate or conflict with
any law applicable to it, any provision of its constitutional documents, any
order or judgment of any court or other agency of government applicable to it
or any of its assets or any contractual restriction binding on or affecting it
or any of its assets;

 

(iv)          Consents.  All
governmental and other consents that are required to have been obtained by it
with respect to this Agreement or any Credit Support Document to which it is a
party have been obtained and are in full force and effect and all conditions of
any such consents have been complied with; and

 

(v)           Obligations Binding. 
Its obligations under this Agreement and any Credit Support Document to
which it is a party constitute its legal, valid and binding obligations,
enforceable in accordance with their respective terms (subject to applicable
bankruptcy, reorganisation, insolvency, moratorium or similar laws affecting
creditors’ rights generally and subject, as to enforceability, to equitable
principles of general application (regardless of whether enforcement is sought
in a proceeding in equity or at law)).

 

3

 

(b)          Absence of Certain Events.  No Event of Default or Potential Event of
Default or, to its knowledge, Termination Event with respect to it has occurred
and is continuing and no such event or circumstance would occur as a result of
its entering into or performing its obligations under this Agreement or any Credit
Support Document to which it is a party.

 

(c)          Absence of Litigation.  There is not pending or, to its knowledge,
threatened against it or any of its Affiliates any action, suit or proceeding
at law or in equity or before any court, tribunal, governmental body, agency or
official or any arbitrator that is likely to affect the legality, validity or
enforceability against it of this Agreement or any Credit Support Document to
which it is a party or its ability to perform its obligations under this
Agreement or such Credit Support Document.

 

(d)          Accuracy of Specified
Information.  All
applicable information that is furnished in writing by or on behalf of it to
the other party and is identified for the purpose of this Section 3(d) in
the Schedule is, as of the date of the information, true, accurate and complete
in every material respect.

 

(e)          Payer Tax Representation.  Each representation specified in the Schedule
as being made by it for the purpose of this Section 3(e) is accurate
and true.

 

(f)           Payee Tax Representations.  Each representation specified in the Schedule
as being made by it for the purpose of this Section 3(f) is accurate
and true.

 

4.           Agreements

 

Each party agrees with the other that, so long as
either party has or may have any obligation under this Agreement or under any
Credit Support Document to which it is a party: —

 

(a)          Furnish Specified
Information.  It will
deliver to the other party or, in certain cases under subparagraph (iii) below,
to such government or taxing authority as the other party reasonably directs: —

 

(i)            any
forms, documents or certificates relating to taxation specified in the Schedule
or any Confirmation;

 

(ii)           any
other documents specified in the Schedule of any Confirmation; and

 

(iii)          upon
reasonable demand by such other party, any form or document that may be
required or reasonably requested in writing in order to allow such other party
or its Credit Support Provider to make a payment under this Agreement or any
applicable Credit Support Document without any deduction or withholding for or
on account of any Tax or with such deduction or withholding at a reduced rate
(so long as the completion, execution or submission of such form or document
would not materially prejudice the legal or commercial position of the party in
receipt of such demand), with any such form or document to be accurate and
completed in a manner reasonably satisfactory to such other party and to be
executed and to be delivered with any reasonably required certification,

 

in each case by the date specified in the Schedule or
such Confirmation or, if none is specified, as soon as reasonably practicable.

 

(b)          Maintain Authorisations.  It will use all reasonable efforts to
maintain in full force and effect all consents of any governmental or other
authority that are required to be obtained by it with respect to this Agreement
or any Credit Support Document to which it is a party and will use all
reasonable efforts to obtain any that may become necessary in the future.

 

(c)          Comply with Laws.  It will comply in all material respects with
all applicable laws and orders to which it may be subject if failure so to
comply would materially impair its ability to perform its obligations under
this Agreement or any Credit Support Document to which it is a party.

 

(d)          Tax Agreement.  It will give notice of any failure of a
representation made by it under Section 3(f) to be accurate and true
promptly upon learning of such failure.

 

(e)          Payment of Stamp Tax.  Subject to Section 11, it will pay any
Stamp Tax levied or imposed upon it or in respect of its execution or
performance of this Agreement by a jurisdiction in which it is incorporated,

 

4

 

organised, managed and controlled or considered to
have its seat, or in which a branch or office through which it is acting for
the purpose of this Agreement is located (“Stamp Tax Jurisdiction”) and will
indemnify the other party against any Stamp Tax levied or imposed upon the
other party or in respect of the other party’s execution or performance of this
Agreement by any such Stamp Tax Jurisdiction which is not also a Stamp Tax
Jurisdiction with respect to the other party.

 

5.           Events of Default and Termination
Events

 

(a)          Events of Default.  The occurrence at any time with respect to a
party or, if applicable, any Credit Support Provider of such party or any
Specified Entity of such party of any of the following events constitutes an
event of default (an “Event of Default”) with respect to such party: —

 

(i)            Failure to Pay or Deliver.  Failure by the party to make, when due, any
payment under this Agreement or delivery under Section 2(a)(i) or 2(e) required
to be made by it if such failure is not remedied on or before the third Local
Business Day after notice of such failure is given to the party;

 

(ii)           Breach of Agreement. 
Failure by the party to comply with or perform any agreement or
obligation (other than an obligation to make any payment under this Agreement
or delivery under Section 2(a)(i) or 2(e) or to give notice of a
Termination Event or any agreement or obligation under Section 4(a)(i),
4(a)(iii) or 4(d)) to be complied with or performed by the party in
accordance with this Agreement if such failure is not remedied on or before the
thirtieth day after notice of such failure is given to the party;

 

(iii)          Credit Support Default.

 

(1)           Failure by the party
or any Credit Support Provider of such party to comply with or perform any
agreement or obligation to be complied with or performed by it in accordance
with any Credit Support Document if such failure is continuing after any
applicable grace period has elapsed;

 

(2)           the expiration or
termination of such Credit Support Document or the failing or ceasing of such
Credit Support Document to be in full force and effect for the purpose of this
Agreement (in either case other than in accordance with its terms) prior to the
satisfaction of all obligations of such party under each Transaction to which
such Credit Support Document relates without the written consent of the other
party; or

 

(3)           the party or such
Credit Support Provider disaffirms, disclaims, repudiates or rejects, in whole
or in part, or challenges the validity of, such Credit Support Document;

 

(iv)          Misrepresentation.  A
representation (other than a representation under Section 3(e) or
(f)) made or repeated or deemed to have been made or repeated by the party or
any Credit Support Provider of such party in this Agreement or any Credit
Support Document proves to have been incorrect or misleading in any material
respect when made or repeated or deemed to have been made or repeated;

 

(v)           Default under Specified Transaction.  The party, any Credit Support Provider of
such party or any applicable Specified Entity of such party (1) defaults
under a Specified Transaction and, after giving effect to any applicable notice
requirement or grace period, there occurs a liquidation of, an acceleration of
obligations under, or an early termination of, that Specified Transaction, (2) defaults,
after giving effect to any applicable notice requirement or grace period, in
making any payment or delivery due on the last payment, delivery or exchange
date of, or any payment on early termination of, a Specified Transaction (or
such default continues for at least three Local Business Days if there is no
applicable notice requirement or grace period) or (3) disaffirms,
disclaims, repudiates or rejects, in whole or in part, a Specified Transaction
(or such action is taken by any person or entity appointed or empowered to
operate it or act on its behalf);

 

(vi)          Cross
Default.  If “Cross Default”
is specified in the Schedule as applying to the party, the occurrence or
existence of (1) a default, event of default or other similar condition or
event (however

 

5

 

described) in respect of such party, any Credit Support Provider of
such party or any applicable Specified Entity of such party under one or more
agreements or instruments relating to Specified Indebtedness of any of them
(individually or collectively) in an aggregate amount of not less than the
applicable Threshold Amount (as specified in the Schedule) which has resulted
in such Specified Indebtedness becoming, or becoming capable at such time of
being declared, due and payable under such agreements or instruments, before it
would otherwise have been due and payable or (2) a default by such party,
such Credit Support Provider or such Specified Entity (individually or
collectively) in making one or more payments on the due date thereof in an
aggregate amount of not less than the applicable Threshold Amount under such
agreements or instruments (after giving effect to any applicable notice
requirement or grace period);

 

(vii)         Bankruptcy.  The
party, any Credit Support Provider of such party or any applicable Specified
Entity of such party:–

 

(1) is dissolved (other than pursuant to a consolidation,
amalgamation or merger); (2) becomes insolvent or is unable to pay its
debts or fails or admits in writing its inability generally to pay its debts as
they become due; (3) makes a general assignment, arrangement or
composition with or for the benefit of its creditors; (4) institutes or
has instituted against it a proceeding seeking a judgment of insolvency or
bankruptcy or any other relief under any bankruptcy or insolvency law or other
similar law affecting creditors’ rights, or a petition is presented for its
winding-up or liquidation, and, in the case of any such proceeding or petition
instituted or presented against it, such proceeding or petition (A) results
in a judgment of insolvency or bankruptcy or the entry of an order for relief
or the making of an order for its winding-up or liquidation or (B) is not
dismissed, discharged, stayed or restrained in each case within 30 days of the
institution or presentation thereof, (5) has a resolution passed for its
winding-up, official management or liquidation (other than pursuant to a
consolidation, amalgamation or merger); (6) seeks or becomes subject to
the appointment of an administrator, provisional liquidator, conservator,
receiver, trustee, custodian or other similar official for it or for all or
substantially all its assets; (7) has a secured party take possession of
all or substantially all its assets or has a distress, execution, attachment,
sequestration or other legal process levied, enforced or sued on or against all
or substantially all its assets and such secured party maintains possession, or
any such process is not dismissed, discharged, stayed or restrained, in each
case within 30 days thereafter; (8) causes or is subject to any event with
respect to it which. under the applicable laws of any jurisdiction, has an
analogous effect to any of the events specified in clauses (1) to (7) (inclusive);
or (9) takes any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in, any of the foregoing acts; or

 

(viii)        Merger Without Assumption. 
The party or any Credit Support Provider of such party consolidates or
amalgamates with, or merges with or into, or transfers all or substantially all
its assets to, another entity and, at the time of such consolidation,
amalgamation, merger or transfer: –

 

(1)           the resulting,
surviving or transferee entity fails to assume all the obligations of such
party or such Credit Support Provider under this Agreement or any Credit
Support Document to which it or its predecessor was a party by operation of law
or pursuant to an agreement reasonably satisfactory to the other party to this
Agreement; or

 

(2)           the benefits of any
Credit Support Document fail to extend (without the consent of the other party)
to the performance by such resulting, surviving or transferee entity of its
obligations under this Agreement.

 

(b)          Termination Events.  The occurrence at any time with respect to a
party or, if applicable, any Credit Support Provider of such party or any
Specified Entity of such party of any event specified below constitutes an
Illegality if the event is specified in (i) below, a Tax Event if the
event is specified in (ii) below or a Tax Event Upon Merger if the event
is specified in (iii) below, and, if specified to be applicable, a Credit
Event

 

6

 

Upon Merger if the event is specified pursuant to (iv) below
or an Additional Termination Event if the event is specified pursuant to (v) below:—

 

(i)            Illegality.  Due to
the adoption of, or any change in, any applicable law after the date on which a
Transaction is entered into, or due to the promulgation of, or any change in,
the interpretation by any court, tribunal or regulatory authority with
competent jurisdiction of any applicable law after such date. it becomes
unlawful (other than as a result of a breach by the party of Section 4(b))
for such party (which will be the Affected Party):—

 

(1)           to perform any
absolute or contingent obligation to make a payment or delivery or to receive a
payment or delivery in respect of such Transaction or to comply with any other
material provision of this Agreement relating to such Transaction; or

 

(2)           to perform, or for
any Credit Support Provider of such party to perform, any contingent or other
obligation which the party (or such Credit Support Provider) has under any
Credit Support Document relating to such Transaction;

 

(ii)           Tax Event.  Due to (x) any
action taken by a taxing authority, or brought in a court of competent
jurisdiction, on or after the date on which a Transaction is entered into
(regardless of whether such action is taken or brought with respect to a party
to this Agreement) or (y) a Change in Tax Law, the party (which will be
the Affected Party) will, or there is a substantial likelihood that it will, on
the next succeeding Scheduled Payment Date (1) be required to pay to the
other party an additional amount in respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except
in respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive
a payment from which an amount is required to be deducted or withheld for or on
account of a Tax (except in respect of interest under Section 2(e), 6(d)(ii) or
6(e)) and no additional amount is required to be paid in respect of such Tax
under Section 2(d)(i)(4) (other than by reason of Section 2(d)(i)(4)(A) or
(B));

 

(iii)          Tax Event Upon Merger. 
The party (the “Burdened Party”) on the next succeeding Scheduled
Payment Date will either (1) be required to pay an additional amount in
respect of an Indemnifiable Tax under Section 2(d)(i)(4) (except in
respect of interest under Section 2(e), 6(d)(ii) or 6(e)) or (2) receive
a payment from which an amount has been deducted or withheld for or on account
of any Indemnifiable Tax in respect of which the other party is not required to
pay an additional amount (other than by reason of Section 2(d)(i)(4)(A) or
(B)), in either case as a result of a party consolidating or amalgamating with,
or merging with or into, or transferring all or substantially all its assets
to, another entity (which will be the Affected Party) where such action does
not constitute an event described in Section 5(a)(viii);

 

(iv)          Credit Event Upon Merger. 
If “Credit Event Upon Merger” is specified in the Schedule as applying
to the party, such party (“X”), any Credit Support Provider of X or any
applicable Specified Entity of X consolidates or amalgamates with, or merges
with or into, or transfers all or substantially all its assets to, another
entity and such action does not constitute an event described in Section 5(a)(viii) but
the creditworthiness of the resulting, surviving or transferee entity is
materially weaker than that of X, such Credit Support Provider or such
Specified Entity, as the case may be, immediately prior to such action (and, in
such event, X or its successor or transferee, as appropriate, will be the
Affected Party); or

 

(v)           Additional Termination Event.  If any “Additional Termination Event” is specified
in the Schedule or any Confirmation as applying. the occurrence of such event
(and, in such event. the Affected Party or Affected Parties shall be as
specified for such Additional Termination Event in the Schedule or such
Confirmation).

 

(c)          Event of Default and
Illegality.  If an event
or circumstance which would otherwise constitute or give rise to an Event of
Default also constitutes an Illegality, it will be treated as an Illegality and
will not constitute an Event of Default.

 

7

 

6.           Early Termination

 

(a)          Right to Terminate
Following Event of Default. 
If at any time an Event of Default with respect to a party (the “Defaulting
Party”) has occurred and is then continuing, the other party (the “Non-defaulting
Party”) may, by not more than 20 days notice to the Defaulting Party specifying
the relevant Event of Default, designate a day not earlier than the day such
notice is effective as an Early Termination Date in respect of all outstanding
Transactions. If, however, “Automatic Early Termination” is specified in the
Schedule as applying to a party, then an Early Termination Date in respect of
all outstanding Transactions will occur immediately upon the occurrence with
respect to such party of an Event of Default specified in Section 5(a)(vii)(l),
(3), (5), (6) or, to the extent analogous thereto, (8), and as of the time
immediately preceding the institution of the relevant proceeding or the
presentation of the relevant petition upon the occurrence with respect to such
party of an Event of Default specified in Section 5(a)(vii)(4) or, to
the extent analogous thereto, (8).

 

(b)          Right to Terminate
Following Termination Event.

 

(i)            Notice.  If a
Termination Event occurs, an Affected Party will, promptly upon becoming aware
of it, notify the other party, specifying the nature of that Termination Event
and each Affected Transaction and will also give such other information about
that Termination Event as the other party may reasonably require.

 

(ii)           Transfer to Avoid Termination Event.  If either an Illegality under Section 5(b)(i)(1) or
a Tax Event occurs and there is only one Affected Party, or if a Tax Event Upon
Merger occurs and the Burdened Party is the Affected Party, the Affected Party
will, as a condition to its right to designate an Early Termination Date under Section 6(b)(iv),
use all reasonable efforts (which will not require such party to incur a loss,
excluding immaterial, incidental expenses) to transfer within 20 days after it
gives notice under Section 6(b)(i) all its rights and obligations
under this Agreement in respect of the Affected Transactions to another of its
Offices or Affiliates so that such Termination Event ceases to exist.

 

If the Affected Party is not able to make such a transfer it will give
notice to the other party to that effect within such 20 day period, whereupon
the other party may effect such a transfer within 30 days after the notice is
given under Section 6(b)(i).

 

Any such transfer by a party under this Section 6(b)(ii) will
be subject to and conditional upon the prior written consent of the other
party, which consent will not be withheld if such other party’s policies in
effect at such time would permit it to enter into transactions with the
transferee on the terms proposed.

 

(iii)          Two Affected Parties. 
If an Illegality under Section 5(b)(i)(1) or a Tax Event
occurs and there are two Affected Parties, each party will use all reasonable
efforts to reach agreement within 30 days after notice thereof is given under Section 6(b)(i) on
action to avoid that Termination Event.

 

(iv)          Right to Terminate. 
If:—

 

(1)           a transfer under Section 6(b)(ii) or
an agreement under Section 6(b)(iii), as the case may be, has not been
effected with respect to all Affected Transactions within 30 days after an
Affected Party gives notice under Section 6(b)(i); or

 

(2)           an Illegality under Section 5(b)(i)(2),
a Credit Event Upon Merger or an Additional Termination Event occurs, or a Tax
Event Upon Merger occurs and the Burdened Party is not the Affected Party,

 

either party in the case of an Illegality, the Burdened Party in the
case of a Tax Event Upon Merger, any Affected Party in the case of a Tax Event
or an Additional Termination Event if there is more than one Affected Party, or the party which is not the
Affected Party in the case of a Credit Event Upon Merger or  an Additional Termination Event if there is only
one Affected Party may, by not more than 20 days notice to the other
party and provided that the relevant Termination Event is then

 

8

 

continuing, designate a day not earlier than the day such notice is
effective as an Early Termination Date in respect of all Affected Transactions.

 

(c)          Effect of Designation.

 

(i)            If
notice designating an Early Termination Date is given under Section 6(a) or
(b), the Early Termination Date will occur on the date so designated, whether
or not the relevant Event of Default or Termination Event is then continuing.

 

(ii)           Upon
the occurrence or effective designation of an Early Termination Date, no
further payments or deliveries under Section 2(a)(i) or 2(e) in
respect of the Terminated Transactions will be required to be made, but without
prejudice to the other provisions of this Agreement. The amount, if any, payable
in respect of an Early Termination Date shall be determined pursuant to Section 6(e).

 

(d)          Calculations.

 

(i)            Statement.  On or as
soon as reasonably practicable following the occurrence of an Early Termination
Date, each party will make the calculations on its part, if any, contemplated
by Section 6(e) and will provide to the other party a statement (1) showing,
in reasonable detail, such calculations (including all relevant quotations and
specifying any amount payable under Section 6(e)) and (2) giving
details of the relevant account to which any amount payable to it is to be
paid. In the absence of written confirmation from the source of a quotation
obtained in determining a Market Quotation, the records of the party obtaining
such quotation will be conclusive evidence of the existence and accuracy of
such quotation.

 

(ii)           Payment Date.  An
amount calculated as being due in respect of any Early Termination Date under Section 6(e) will
be payable on the day that notice of the amount payable is effective (in the
case of an Early Termination Date which is designated or occurs as a result of
an Event of Default) and on the day which is two Local Business Days after the
day on which notice of the amount payable is effective (in the case of an Early
Termination Date which is designated as a result of a Termination Event). Such
amount will be paid together with (to the extent permitted under applicable
law) interest thereon (before as well as after judgment) in the Termination
Currency, from (and including) the relevant Early Termination Date to (but
excluding) the date such amount is paid, at the Applicable Rate. Such interest
will be calculated on the basis of daily compounding and the actual number of
days elapsed.

 

(e)          Payments on Early
Termination.  If an Early
Termination Date occurs, the following provisions shall apply based on the
parties’ election in the Schedule of a payment measure, either “Market
Quotation” or “Loss”, and a payment method, either the “First Method” or the “Second
Method”.  If the parties fail to
designate a payment measure or payment method in the Schedule, it will be
deemed that “Market Quotation” or the “Second Method”, as the case may be,
shall apply.  The amount, if any, payable
in respect of an Early Termination Date and determined pursuant to this Section will
be subject to any Set-off.

 

(i)            Events of Default.  If
the Early Termination Date results from an Event of Default:—

 

(1)           First Method
and Market Quotation.  If the
First Method and Market Quotation apply, the Defaulting Party will pay to the
Non-defaulting Party the excess, if a positive number, of (A) the sum of
the Settlement Amount (determined by the Non-defaulting Party) in respect of
the Terminated Transactions and the Termination Currency Equivalent of the
Unpaid Amounts owing to the Non-defaulting Party over (B) the Termination
Currency Equivalent of the Unpaid Amounts owing to the Defaulting Party.

 

(2)           First Method
and Loss.  If the First Method
and Loss apply, the Defaulting Party will pay to the Non-defaulting Party, if a
positive number, the Non-defaulting Party’s Loss in respect of this Agreement.

 

(3)           Second
Method and Market Quotation. 
If the Second Method and Market Quotation apply, an amount will be payable equal to (A) the sum of the
Settlement Amount (determined by the

 

9

 

Non-defaulting Party) in respect of the Terminated Transactions and the
Termination Currency Equivalent of the Unpaid Amounts owing to the
Non-defaulting Party less (B) the Termination Currency Equivalent of the
Unpaid Amounts owing to the Defaulting Party. If that amount is a positive
number, the Defaulting Party will pay it to the Non-defaulting Party; if it is
a negative number, the Non-defaulting Party will pay the absolute value of that
amount to the Defaulting Party.

 

(4)           Second
Method and Loss.  If the
Second Method and Loss apply, an amount will be payable equal to the
Non-defaulting Party’s Loss in respect of this Agreement. If that amount is a
positive number, the Defaulting Party will pay it to the Non-defaulting Party;
if it is a negative number, the Non-defaulting Party will pay the absolute
value of that amount to the Defaulting Party.

 

(ii)           Termination Events. 
If the Early Termination Date results from a Termination Event:—

 

(1)           One Affected
Party.  If there is one
Affected Party, the amount payable will be determined in accordance with Section 6(e)(i)(3),
if Market Quotation applies, or Section 6(e)(i)(4), if Loss applies,
except that, in either case, references to the Defaulting Party and to the
Non-defaulting Party will be deemed to be references to the Affected Party and
the party which is not the Affected Party, respectively, and, if Loss applies
and fewer than all the Transactions are being terminated, Loss shall be calculated
in respect of all Terminated Transactions.

 

(2)           Two Affected
Parties.  If there are two
Affected Parties:—

 

(A)          if Market Quotation
applies, each party will determine a Settlement Amount in respect of the
Terminated Transactions, and an amount will be payable equal to (I) the
sum of (a) one-half of the difference between the Settlement Amount of the
party with the higher Settlement Amount (“X”) and the Settlement Amount of the
party with the lower Settlement Amount (“Y”) and (b) the Termination
Currency Equivalent of the Unpaid Amounts owing to X less (II) the
Termination Currency Equivalent of the Unpaid Amounts owing to Y; and

 

(B)           if Loss applies,
each party will determine its Loss in respect of this Agreement (or, if fewer
than all the Transactions are being terminated, in respect of all Terminated
Transactions) and an amount will be payable equal to one-half of the difference
between the Loss of the party with the higher Loss (“X”) and the Loss of the
party with the lower Loss (“Y”).

 

If the amount payable is a positive number, Y will pay it to X; if it
is a negative number, X will pay the absolute value of that amount to Y.

 

(iii)          Adjustment for Bankruptcy. 
In circumstances where an Early Termination Date occurs because “Automatic
Early Termination” applies in respect of a party, the amount determined under
this Section 6(e) will be subject to such adjustments as are
appropriate and permitted by law to reflect any payments or deliveries made by
one party to the other under this Agreement (and retained by such other party)
during the period from the relevant Early Termination Date to the date for
payment determined under Section 6(d)(ii).

 

(iv)          Pre-Estimate.  The
parties agree that if Market Quotation applies an amount recoverable under this
Section 6(e) is a reasonable pre-estimate of loss and not a penalty.
Such amount is payable for the loss of bargain and the loss of protection
against future risks and except as otherwise provided in this Agreement neither
party will be entitled to recover any additional damages as a consequence of
such losses.

 

10

 

7.            Transfer

 

Subject to Section 6(b)(ii), neither this
Agreement nor any interest or obligation in or under this Agreement may be
transferred (whether by way of security or otherwise) by either party without
the prior written consent of the other party, except that:—

 

(a)           a
party may make such a transfer of this Agreement pursuant to a consolidation or
amalgamation with, or merger with or into, or transfer of all or substantially
all its assets to, another entity (but without prejudice to any other right or
remedy under this Agreement); and

 

(b)           a
party may make such a transfer of all or any part of its interest in any amount
payable to it from a Defaulting Party under Section 6(e).

 

Any purported transfer that is not in compliance with
this Section will be void.

 

8.            Contractual Currency

 

(a)           Payment in the Contractual Currency.  Each payment under this Agreement will be
made in the relevant currency specified in this Agreement for that payment (the
“Contractual Currency”). To the extent permitted by applicable law, any
obligation to make payments under this Agreement in the Contractual Currency
will not be discharged or satisfied by any tender in any currency other than
the Contractual Currency, except to the extent such tender results in the
actual receipt by the party to which payment is owed, acting in a reasonable
manner and in good faith in converting the currency so tendered into the
Contractual Currency, of the full amount in the Contractual Currency of all
amounts payable in respect of this Agreement. If for any reason the amount in
the Contractual Currency so received falls short of the amount in the
Contractual Currency payable in respect of this Agreement, the party required
to make the payment will, to the extent permitted by applicable law, immediately
pay such additional amount in the Contractual Currency as may be necessary to
compensate for the shortfall. If for any reason the amount in the Contractual
Currency so received exceeds the amount in the Contractual Currency payable in
respect of this Agreement, the party receiving the payment will refund promptly
the amount of such excess.

 

(b)           Judgments.  To the extent permitted by applicable law, if
any judgment or order expressed in a currency other than the Contractual
Currency is rendered (i) for the payment of any amount owing in respect of
this Agreement, (ii) for the payment of any amount relating to any early
termination in respect of this Agreement or (iii) in respect of a judgment
or order of another court for the payment of any amount described in (i) or
(ii) above, the party seeking recovery, after recovery in full of the
aggregate amount to which such party is entitled pursuant to the judgment or
order, will be entitled to receive immediately from the other party the amount
of any shortfall of the Contractual Currency received by such party as a
consequence of sums paid in such other currency and will refund promptly to the
other party any excess of the Contractual Currency received by such party as a
consequence of sums paid in such other currency if such shortfall or such
excess arises or results from any variation between the rate of exchange at
which the Contractual Currency is converted into the currency of the judgment
or order for the purposes of such judgment or order and the rate of exchange at
which such party is able, acting in a reasonable manner and in good faith in
converting the currency received into the Contractual Currency, to purchase the
Contractual Currency with the amount of the currency of the judgment or order
actually received by such party. The term “rate of exchange” includes, without
limitation, any premiums and costs of exchange payable in connection with the
purchase of or conversion into the Contractual Currency.

 

(c)           Separate Indemnities.  To the extent permitted by applicable law,
these indemnities constitute separate and independent obligations from the
other obligations in this Agreement, will be enforceable as separate and
independent causes of action, will apply notwithstanding any indulgence granted
by the party to which any payment is owed and will not be affected by judgment
being obtained or claim or proof being made for any other sums payable in
respect of this Agreement.

 

(d)           Evidence of Loss.  For the purpose of this Section 8, it
will be sufficient for a party to demonstrate that it would have suffered a
loss had an actual exchange or purchase been made.

 

11

 

9.           Miscellaneous

 

(a)          Entire Agreement.  This Agreement constitutes the entire
agreement and understanding of the parties with respect to its subject matter
and supersedes all oral communication and prior writings with respect thereto.

 

(b)          Amendments.  No amendment, modification or waiver in
respect of this Agreement will be effective unless in writing (including a
writing evidenced by a facsimile transmission) and executed by each of the
parties or confirmed by an exchange of telexes or electronic messages on an
electronic messaging system.

 

(c)          Survival of Obligations.  Without prejudice to Sections 2(a)(iii) and
6(c)(ii), the obligations of the parties under this Agreement will survive the
termination of any Transaction.

 

(d)          Remedies Cumulative.  Except as provided in this Agreement, the
rights, powers, remedies and privileges provided in this Agreement are
cumulative and not exclusive of any rights, powers, remedies and privileges
provided by law.

 

(e)          Counterparts and
Confirmations.

 

(i)            This
Agreement (and each amendment, modification and waiver in respect of it) may be
executed and delivered in counterparts (including by facsimile transmission),
each of which will be deemed an original.

 

(ii)           The
parties intend that they are legally bound by the terms of each Transaction
from the moment they agree to those terms (whether orally or otherwise). A
Confirmation shall be entered into as soon as practicable and may be executed
and delivered in counterparts (including by facsimile transmission) or be
created by an exchange of telexes or by an exchange of electronic messages on
an electronic messaging system, which in each case will be sufficient for all
purposes to evidence a binding supplement to this Agreement.  The parties will specify therein or through
another effective means that any such counterpart, telex or electronic message
constitutes a Confirmation.

 

(f)           No Waiver of Rights.  A failure or delay in exercising any right,
power or privilege in respect of this Agreement will not be presumed to operate
as a waiver, and a single or partial exercise of any right, power or privilege
will not be presumed to preclude any subsequent or further exercise, of that
right, power or privilege or the exercise of any other right, power or
privilege.

 

(g)          Headings.  The headings used in this Agreement are for
convenience of reference only and are not to affect the construction of or to
be taken into consideration in interpreting this Agreement.

 

10.         Offices; Multibranch Parties

 

(a)          If Section 10(a) is
specified in the Schedule as applying, each party that enters into a
Transaction through an Office other than its head or home office represents to
the other party that, notwithstanding the place of booking office or
jurisdiction of incorporation or organisation of such party, the obligations of
such party are the same as if it had entered into the Transaction through its
head or home office.  This representation
will be deemed to be repeated by such party on each date on which a Transaction
is entered into.

 

(b)          Neither party may change the Office
through which it makes and receives payments or deliveries for the purpose of a
Transaction without the prior written consent of the other party.

 

(c)          If a party is specified as a
Multibranch Party in the Schedule, such Multibranch Party may make and receive
payments or deliveries under any Transaction through any Office listed in the
Schedule, and the Office through which it makes and receives payments or
deliveries with respect to a Transaction will be specified in the relevant
Confirmation.

 

11.         Expenses

 

A Defaulting Party will, on demand, indemnify and hold
harmless the other party for and against all reasonable out-of-pocket expenses,
including legal fees and Stamp Tax, incurred by such other party by reason of
the enforcement and protection of its rights under this Agreement or any Credit
Support Document

 

12

 

to which the Defaulting Party is a party or by reason
of the early termination of any Transaction, including, but not limited to,
costs of collection.

 

12.         Notices

 

(a)          Effectiveness. Any
notice or other communication in respect of this Agreement may be given in any
manner set forth below (except that a notice or other communication under Section 5
or 6 may not be given by facsimile transmission or electronic messaging system)
to the address or number or in accordance with the electronic messaging system
details provided (see the Schedule) and will be deemed effective as indicated:—

 

(i)            if
in writing and delivered in person or by courier, on the date it is delivered;

 

(ii)           if
sent by telex, on the date the recipient’s answerback is received;

 

(iii)          if
sent by facsimile transmission, on the date that transmission is received by a
responsible employee of the recipient in legible form (it being agreed that the
burden of proving receipt will be on the sender and will not be met by a
transmission report generated by the sender’s facsimile machine);

 

(iv)          if
sent by certified or registered mail (airmail, if overseas) or the equivalent
(return receipt requested), on the date that mail is delivered or its delivery
is attempted; or

 

(v)           if
sent by electronic messaging system, on the date that electronic message is
received,

 

unless the date of that delivery (or attempted
delivery) or that receipt as applicable, is not a Local Business Day or that
communication is delivered (or attempted) or received, as applicable, after the
close of business on a Local Business Day, in which case that communication
shall be deemed given and effective on the first following day that is a Local
Business Day.

 

(b)          Change of Addresses.
Either party may by notice to the other change the address, telex or facsimile
number or electronic messaging system details at which notices or other
communications are to be given to all

 

13.         Governing Law and Jurisdiction

 

(a)          Governing Law.
This Agreement will be governed by and construed in accordance with the law
specified in the Schedule.

 

(b)          Jurisdiction.
With respect to any suit, action or proceedings relating to this Agreement (“Proceedings”),
each party irrevocably:—

 

(i)            submits
to the jurisdiction of the English courts, if this Agreement is expressed to be
governed by English law, or to the non-exclusive jurisdiction of the courts of
the State of New York and the United States District Court located in the
Borough of Manhattan in New York City, if this Agreement is expressed to be
governed by the laws of the State of New York; and

 

(ii)           waives
any objection which it may have at any time to the laying of venue of any
Proceedings brought in any such court, waives any claim that such Proceedings
have been brought in an inconvenient forum and further waives the right to
object, with respect to such Proceedings, that such court does not have any
jurisdiction over such party.

 

Nothing in this Agreement precludes either party from
bringing Proceedings in any other jurisdiction (outside, if this Agreement is
expressed to be governed by English law, the Contracting States, as defined in Section 1(3) of
the Civil Jurisdiction and Judgments Act 1982 or any modification, extension or
re-enactment thereof for the time being in force) nor will the bringing of
Proceedings in any one or more jurisdictions preclude the bringing of
Proceedings in any other jurisdiction.

 

(c)          Service of Process.
Each party irrevocably appoints the Process Agent (if any) specified opposite
its name in the Schedule to receive, for it and on its behalf, service of
process in any Proceedings. If for any

 

13

 

reason any party’s Process Agent is unable to act as
such, such party will promptly notify the other party and within 30 days
appoint a substitute process agent acceptable to the other party. The parties
irrevocably consent to service of process given in the manner provided for
notices in Section 12. Nothing in this Agreement will affect the right of
either party to serve process in any other manner permitted by law.

 

(d)          Waiver of Immunities.
Each party irrevocably waives, to the fullest extent permitted by applicable
law, with respect to itself and its revenues and assets (irrespective of their
use or intended use), all immunity on the grounds of sovereignty or other
similar grounds from (i) suit, (ii) jurisdiction of any court, (iii) relief
by way of injunction, order for specific performance or for recovery of
property, (iv) attachment of its assets (whether before or after judgment)
and (v) execution or enforcement of any judgment to which it or its
revenues or assets might otherwise be entitled in any Proceedings in the courts
of any jurisdiction and irrevocably agrees, to the extent permitted by applicable
law, that it will not claim any such immunity in any Proceedings.

 

14.         Definitions

 

As used in this Agreement: —

 

“Additional Termination
Event” has the meaning specified in Section 5(b).

 

“Affected Party”
has the meaning specified in Section 5(b).

 

“Affected Transactions”
means (a) with respect to any Termination Event consisting of an
Illegality, Tax Event or Tax Event Upon Merger, all Transactions affected by
the occurrence of such Termination Event and (b) with respect to any other
Termination Event, all Transactions.

 

“Affiliate”
means, subject to the Schedule, in relation to any person, any entity
controlled, directly or indirectly, by the person, any entity that controls,
directly or indirectly, the person or any entity directly or indirectly under
common control with the person. For this purpose, “control” of any entity or
person means ownership of a majority of the voting power of the entity or
person.

 

“Applicable Rate”
means: —

 

(a)           in
respect of obligations payable or deliverable (or which would have been but for
Section 2(a)(iii)) by a Defaulting Party, the Default Rate;

 

(b)           in
respect of an obligation to pay an amount under Section 6(e) of
either party from and after the date (determined in accordance with Section 6(d)(ii))
on which that amount is payable, the Default Rate;

 

(c)           in
respect of all other obligations payable or deliverable (or which would have
been but for Section 2(a)(iii)) by a Non-defaulting Party, the Non-default
Rate; and

 

(d)           in
all other cases, the Termination Rate.

 

“Burdened Party”
has the meaning specified in Section 5(b).

 

“Change in Tax Law”
means the enactment, promulgation, execution or ratification of, or any change
in or amendment to, any law (or in the application or official interpretation
of any law) that occurs on or after the date on which the relevant Transaction
is entered into.

 

“consent”
includes a consent, approval, action, authorisation, exemption, notice, filing,
registration or exchange control consent.

 

“Credit Event Upon Merger”
has the meaning specified in Section 5(b).

 

“Credit Support Document”
means any agreement or instrument that is specified as such in this Agreement.

 

“Credit Support Provider”
has the meaning specified in the Schedule.

 

“Default Rate”
means a rate per annum equal to the cost (without proof or evidence of any
actual cost) to the relevant payee (as certified by it) if it were to fund or
of funding the relevant amount plus 1% per annum.

 

14

 

“Defaulting Party”
has the meaning specified in Section 6(a).

 

“Early Termination Date”
means the date determined in accordance with Section 6(a) or
6(b)(iv).

 

“Event of Default”
has the meaning specified in Section 5(a) and, if applicable, in the
Schedule.

 

“Illegality” has
the meaning specified in Section 5(b).

 

“Indemnifiable Tax”
means any Tax other than a Tax that would not be imposed in respect of a
payment under this Agreement but for a present or former connection between the
jurisdiction of the government or taxation authority imposing such Tax and the
recipient of such payment or a person related to such recipient (including,
without limitation, a connection arising from such recipient or related person
being or having been a citizen or resident of such jurisdiction, or being or having
been organised, present or engaged in a trade or business in such jurisdiction,
or having or having had a permanent establishment or fixed place of business in
such jurisdiction, but excluding a connection arising solely from such
recipient or related person having executed, delivered, performed its
obligations or received a payment under, or enforced, this Agreement or a
Credit Support Document).

 

“law” includes
any treaty, law, rule or regulation (as modified, in the case of tax
matters, by the practice of any relevant governmental revenue authority) and “lawful”
and “unlawful” will be construed accordingly.

 

“Local Business Day”
means, subject to the Schedule, a day on which commercial banks are open for
business (including dealings in foreign exchange and foreign currency deposits)
(a) in relation to any obligation under Section 2(a)(i), in the place(s) specified
in the relevant Confirmation or, if not so specified, as otherwise agreed by
the parties in writing or determined pursuant to provisions contained, or
incorporated by reference, in this Agreement, (b) in relation to any other
payment, in the place where the relevant account is located and, if different.
in the principal financial centre, if any, of the currency of such payment, (c) in
relation to any notice or other communication, including notice contemplated
under Section 5(a)(i), in the city specified in the address for notice
provided by the recipient and, in the case of a notice contemplated by Section 2(b),
in the place where the relevant new account is to be located and (d) in
relation to Section 5(a)(v)(2), in the relevant locations for performance
with respect to such Specified Transaction.

 

“Loss” means,
with respect to this Agreement or one or more Terminated Transactions, as the
case may be, and a party, the Termination Currency Equivalent of an amount that
party reasonably determines in good faith to be its total losses and costs (or
gain, in which case expressed as a negative number) in connection with this
Agreement or that Terminated Transaction or group of Terminated Transactions,
as the case may be, including any loss of bargain, cost of funding or, at the
election of such party but without duplication, loss or cost incurred as a
result of its terminating, liquidating, obtaining or reestablishing any hedge
or related trading position (or any gain resulting from any of them). Loss
includes losses and costs (or gains) in respect of any payment or delivery
required to have been made (assuming satisfaction of each applicable condition
precedent) on or before the relevant Early Termination Date and not made,
except, so as to avoid duplication, if Section 6(c)(i)(1) or (3) or
6(e)(ii)(2)(A) applies. Loss does not include a party’s legal fees and
out-of-pocket expenses referred to under Section 11. A party will
determine its Loss as of the relevant Early Termination Date, or, if that is
not reasonably practicable, as of the earliest date thereafter as is reasonably
practicable. A party may (but need not) determine its Loss by reference to quotations
of relevant rates or prices from one or more leading dealers in the relevant
markets.

 

“Market
Quotation” means, with respect to
one or more Terminated Transactions and a party making the determination, an
amount determined on the basis of quotations from Reference Market-makers. Each
quotation will be for an amount, if any, that would be paid to such party
(expressed as a negative number) or by such party (expressed as a positive
number) in consideration of an agreement between such party (taking into
account any existing Credit Support Document with respect to the obligations of
such party) and the quoting Reference Market-maker to enter into a transaction
(the “Replacement Transaction”) that would have the effect of preserving for
such party the economic equivalent of any payment or delivery (whether the
underlying obligation was absolute or contingent and assuming the satisfaction
of each applicable condition precedent) by the parties under Section 2(a)(i) in
respect of such Terminated Transaction or group of Terminated Transactions that
would, but for the occurrence of the relevant Early Termination Date, have

 

15

 

been required after that date. For this purpose,
Unpaid Amounts in respect of the Terminated Transaction or group of Terminated
Transactions are to be excluded but, without limitation, any payment or
delivery that would, but for the relevant Early Termination Date, have been
required (assuming satisfaction of each applicable condition precedent) after
that Early Termination Date is to be included. The Replacement Transaction
would be subject to such documentation as such party and the Reference
Market-maker may, in good faith, agree. The party making the determination (or
its agent) will request each Reference Market-maker to provide its quotation to
the extent reasonably practicable as of the same day and time (without regard
to different time zones) on or as soon as reasonably practicable after the
relevant Early Termination Date. The day and time as of which those quotations
are to be obtained will be selected in good faith by the party obliged to make
a determination under Section 6(e), and, if each party is so obliged,
after consultation with the other. If more than three quotations are provided,
the Market Quotation will be the arithmetic mean of the quotations, without
regard to the quotations having the highest and lowest values, If exactly three
such quotations are provided, the Market Quotation will be the quotation
remaining after disregarding the highest and lowest quotations. For this
purpose, if more than one quotation has the same highest value or lowest value,
then one of such quotations shall be disregarded. If fewer than three
quotations are provided, it will be deemed that the Market Quotation in respect
of such Terminated Transaction or group of Terminated Transactions cannot be
determined.

 

“Non-default Rate”
means a rate per annum equal to the cost (without proof or evidence of any
actual cost) to the Non-defaulting Party (as certified by it) if it were to
fund the relevant amount.

 

“Non-defaulting Party”
has the meaning specified in Section 6(a).

 

“Office” means a
branch or office of a party, which may be such party’s head or home office.

 

“Potential Event of Default”
means any event which, with the giving of notice or the lapse of time or both,
would constitute an Event of Default.

 

“Reference Market-makers”
means four leading dealers in the relevant market selected by the party
determining a Market Quotation in good faith (a) from among dealers of the
highest credit standing which satisfy all the criteria that such party applies
generally at the time in deciding whether to offer or to make an extension of
credit and (b) to the extent practicable, from among such dealers having
an office in the same city.

 

“Relevant Jurisdiction”
means, with respect to a party, the jurisdictions (a) in which the party
is incorporated, organised, managed and controlled or considered to have its
seat, (b) where an Office through which the party is acting for purposes
of this Agreement is located, (c) in which the party executes this
Agreement and (d) in relation to any payment, from or through which such
payment is made.

 

“Scheduled Payment Date”
means a date on which a payment or delivery is to be made under Section 2(a)(i) with
respect to a Transaction.

 

“Set-off”  means set-off, offset, combination of accounts, right of
retention or withholding or similar right or requirement to which the payer of
an amount under Section 6 is entitled or subject (whether arising under
this Agreement, another contract, applicable law or otherwise) that is
exercised by, or imposed on, such payer.

 

“Settlement Amount”
means, with respect to a party and any Early Termination Date, the sum of.-

 

(a)           the
Termination Currency Equivalent of the Market Quotations (whether positive or
negative) for each Terminated Transaction or group of Terminated Transactions
for which a Market Quotation is determined; and

 

(b)           such
party’s Loss (whether positive or negative and without reference to any Unpaid
Amounts) for each Terminated Transaction or group of Terminated Transactions
for which a Market Quotation cannot be determined or would not (in the
reasonable belief of the party making the determination) produce a commercially
reasonable result.

 

“Specified Entity”
has the meaning specified in the Schedule.

 

16

 

“Specified Indebtedness”
means, subject to the Schedule, any obligation (whether present or future,
contingent or otherwise, as principal or surety or otherwise) in respect of
borrowed money.

 

“Specified Transaction”
means, subject to the Schedule, (a) any transaction (including an
agreement with respect thereto) now existing or hereafter entered into between
one party to this Agreement (or any Credit Support Provider of such party or
any applicable Specified Entity of such party) and the other party to this
Agreement (or any Credit Support Provider of such other party or any applicable
Specified Entity of such other party) which is a rate swap transaction, basis
swap, forward rate transaction, commodity swap, commodity option, equity or
equity index swap, equity or equity index option, bond option, interest rate
option, foreign exchange transaction, cap transaction, floor transaction,
collar transaction, currency swap transaction, cross-currency rate swap
transaction, currency option or any other similar transaction (including any
option with respect to any of these transactions), (b) any combination of
these transactions and (c) any other transaction identified as a Specified
Transaction in this Agreement or the relevant confirmation.

 

“Stamp Tax”
means any stamp, registration, documentation or similar tax.

 

“Tax” means any
present or future tax, levy, impost, duty, charge, assessment or fee of any
nature (including interest, penalties and additions thereto) that is imposed by
any government or other taxing authority in respect of any payment under this
Agreement other than a stamp, registration, documentation or similar tax.

 

“Tax Event” has
the meaning specified in Section 5(b).

 

“Tax Event Upon Merger”
has the meaning specified in Section 5(b).

 

“Terminated Transactions”
means with respect to any Early Termination Date (a) if resulting from a
Termination Event, all Affected Transactions and (b) if resulting from an
Event of Default, all Transactions (in either case) in effect immediately
before the effectiveness of the notice designating that Early Termination Date
(or, if “Automatic Early Termination” applies, immediately before that Early
Termination Date).

 

“Termination Currency”
has the meaning specified in the Schedule.

 

“Termination Currency
Equivalent” means, in respect of any amount denominated in the
Termination Currency, such Termination Currency amount and, in respect of any
amount denominated in a currency other than the Termination Currency (the “Other
Currency”), the amount in the Termination Currency determined by the party
making the relevant determination as being required to purchase such amount of
such Other Currency as at the relevant Early Termination Date, or, if the
relevant Market Quotation or Loss (as the case may be), is determined as of a
later date, that later date, with the Termination Currency at the rate equal to
the spot exchange rate of the foreign exchange agent (selected as provided
below) for the purchase of such Other Currency with the Termination Currency at
or about 11:00 a.m. (in the city in which such foreign exchange agent is
located) on such date as would be customary for the determination of such a
rate for the purchase of such Other Currency for value on the relevant Early
Termination Date or that later date. The foreign exchange agent will, if only
one party is obliged to make a determination under Section 6(e), be
selected in good faith by that party and otherwise will be agreed by the
parties

 

“Termination Event”
means an Illegality, a Tax Event or a Tax Event Upon Merger or, if specified to
be applicable, a Credit Event Upon Merger or an Additional Termination Event.

 

“Termination Rate”
means a rate per annum equal to the arithmetic mean of the cost (without proof
or evidence of any actual cost) to each party (as certified by such party) if
it were to fund or of funding such amounts.

 

“Unpaid
Amounts” owing to any party means,
with respect to an Early Termination Date, the aggregate of (a) in respect
of all Terminated Transactions, the amounts that became payable (or that would
have become payable but for Section 2(a)(iii)) to such party under Section 2(a)(i) on
or prior to such Early Termination Date and which remain unpaid as at such
Early Termination Date and (b) in respect of each Terminated Transaction.
for each obligation under Section 2(a)(i) which was (or would have
been but for Section 2(a)(iii)) required to be settled by delivery to such
party on or prior to such Early Termination Date and which has not been so
settled as at such Early Termination Date, an amount equal to the fair market

 

17

 

value of that which was (or would have been) required
to be delivered as of the originally scheduled date for delivery, in each case
together with (to the extent permitted under applicable law) interest, in the
currency of such amounts, from (and including) the date such amounts or
obligations were or would have been required to have been paid or performed to
(but excluding) such Early Termination Date, at the Applicable Rate. Such
amounts of interest will be calculated on the basis of daily compounding and
the actual number of days elapsed. The fair market value of any obligation
referred to in clause (b) above shall be reasonably determined by the
party obliged to make the determination under Section 6(e) or, if
each party is so obliged, it shall be the average of the Termination Currency
Equivalents of the fair market values reasonably determined by both parties.

 

IN WITNESS WHEREOF the parties have executed this
document on the respective dates specified below with effect from the date
specified on the first page of this document.

 

 

	
   

  	
  CITIGROUP ENERGY INC.

  	
   

  	
   

  	
  NOBLE ENVIRONMENTAL POWER

  
	
   

  	
   

  	
   

  	
   

  	
  2008 HOLD CO, LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Victoria T. Sharp

  	
   

  	
  By:

  	
  /s/ Walter Howard

  
	
   

  	
   

  	
  Name:

  	
  Victoria T. Sharp

  	
   

  	
   

  	
  Name:

  	
  Walter Howard

  
	
   

  	
   

  	
  Title:

  	
  Managing Director

  	
   

  	
   

  	
  Title:

  	
  President

  

 

18

 

Execution Version

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR THE REDACTED PORTIONS OF
THIS AGREEMENT.  THE REDACTIONS ARE
INDICATED WITH THREE ASTERISKS (“***”). A COMPLETE VERSION OF THIS AGREEMENT
HAS BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

Schedule

to the

1992 ISDA Master Agreement

 

dated as of June 30, 2008 (the “Execution
Date”)

 

This Schedule to the 1992 ISDA Master Agreement is being executed and
is effective and binding on June 27, 2008, but is dated as of June 30,
2008, for cross reference purposes in other documents and agreements that
contemplate the date hereof being June 30, 2008.

 

between

 

	
  Citigroup
  Energy Inc.,

   

  a
  corporation organized under the laws of the State of Delaware

   

  (“Party
  A”)

  	
   

  	
  and

  	
   

  	
  Noble
  Environmental Power 2008 Hold Co., LLC

   

  a
  limited liability company organized under the laws of the State of Delaware

   

  (“Party
  B”)

  

 

Part 1

Termination Provisions

 

(a)   Specified Entity.  “Specified Entity” means in relation to Party
A for the purpose of:

 

	
  Section 5(a)(v):           Citigroup
  Global Markets Limited, Citigroup Global Markets Inc., Citigroup Forex Inc.,
  Citigroup Global Markets Commercial Corp., Citicorp Securities
  Services, Inc., Citigroup Global Markets Deutschland AG & Co.
  KGaA, Citigroup Financial Products Inc., Citigroup Energy Canada ULC,
  Citibank Japan Ltd. and Citibank, N.A.

  
	
  Section 5(a)(vi):

  	
  Not Applicable

  
	
  Section 5(a)(vii):

  	
  Not Applicable

  
	
  Section 5(b)(iv):

  	
  Not Applicable

  

 

in relation to Party B for the purpose of:

 

	
  Section 5(a)(v):

  	
  Not Applicable

  
	
  Section 5(a)(vi):

  	
  Not Applicable

  
	
  Section 5(a)(vii):

  	
  Not Applicable

  
	
  Section 5(b)(iv):

  	
  Not Applicable

  

 

1

 

(b)   Specified Transaction.  Specified Transaction will have the meaning
specified in Section 14 of this Agreement, except that such term is
amended on line 8 after the words “currency option” by adding a comma and the
words “agreement for the purchase, sale or transfer of any commodity or any
other commodity trading transaction.” 
For this purpose, “commodity” means any tangible or intangible commodity
of any type or description, including, without limitation, electricity, natural
gas, petroleum, coal, emissions allowances, the products and by-products
thereof, and weather derivatives.

 

(c)   Cross Default.  The “Cross Default” provision (Section 5(a)(vi)),
will apply to Party A and Party B; provided that (i) the
phrase “or becoming capable at such time of being declared” shall be deleted
from clause (1) of such Section 5(a)(vi) and (ii) the
following shall be added at the end of such Section 5(a)(vi): “provided that notwithstanding anything to the contrary
contained in this Section 5(a)(vi) with respect to Party B, an Event
of Default under this Section 5(a)(vi) with respect to the Financing
Agreement shall not be deemed to exist or have occurred in respect of Party B
if (w) the *** is in effect, (x) a *** has not occurred under the
Forbearance Agreement and (y) the only remedies, if any, exercised in
connection with any event of default under the Financing Documents are limited
to those contemplated under Section 1.03 of the ***as in effect on the
Closing Date.”

 

“Specified Indebtedness” will have the
meaning specified in Section 14 of the Agreement.

 

“Threshold Amount” means:

 

(i)            with respect to Party A, 2% of the
stockholders’ equity of Party A’s Credit Support Provider; and

 

(ii)           with respect to Party B, $***; and

 

Threshold Amount includes the U.S. Dollar equivalent
on the date of any default, event of default or other similar condition or
event of any obligation stated in any other currency.

 

(d)   Additional Event of Default.  Section 5(a) is further amended by
adding the following additional Event of Default, which shall apply with
respect to Party B only, with Party B being deemed the Defaulting Party upon the
occurrence of one or more of the following events and the failure to cure
within the applicable cure period:

 

“(ix)         Failure of Security Interest.  The occurrence of any event or
circumstance that results in (i) during the period from (and including)
the Closing Date to (and including) the Designated Confirmation Termination
Date, Party A’s security interest in and lien on the Collateral failing or
ceasing to be a second priority security interest and lien thereon, subject
only to Permitted Liens; (ii) during the period from (and including) the
Term-Conversion Date to (and including) the Designated Confirmation Termination
Date, (A) Party A’s security interest and lien on the Collateral failing
or ceasing to be a first priority security interest and lien thereon in respect
of the Energy Hedge Provider First Lien Obligations, subject only to Permitted
Liens, or (B) the Energy Hedge Provider First Lien Obligations ceasing to
be secured equally and ratably, or be ranked in right of payment and upon
liquidation on a pari passu basis, with Party B’s
obligations to the Lenders under the Financing Agreement; or (iii) any of
the Intercreditor Agreement, the Collateral Documents or the Energy Hedge
Guarantees, once executed and delivered, ceasing to be in full force and
effect, or the validity thereof or the applicability thereof to this Agreement
or any other obligations to Party A purported to be secured or guaranteed

 

2

 

thereby
or any part thereof being disaffirmed (in writing, if disaffirmed by any Person
other than Party B or any of its Affiliates), in each case, except to the
extent arising as a result of the acts or omissions of Party A, except to the
extent that such event or circumstance has been cured within *** (***) Local
Business Days of Party B’s obtaining knowledge thereof and except as may be
permitted under the Intercreditor Agreement.

 

(e)   Posting Additional Credit
Support to Forestall Certain Events of Default and Additional Termination
Events.  Party A and Party B agree
that no Event of Default shall occur with respect to Party B under Section 5(a)(ii),
(iv), (vi) or (ix) of the Agreement (each, a “Specified
Event of Default”) above, and no Additional Termination Event
shall occur with respect to Party B under Section 5(b)(viii) of this
Agreement (a “Specified Additional Termination Event”)
below, if Party B or its designee from
time to time at the request of Party A Transfers Eligible Credit Support
in an amount equal to Party A’s Exposure (“Additional Collateral”)
to Party A within five (5) Local
Business Days after each request following an Additional Collateral Trigger
Date.  Such Additional Collateral will be
maintained by Party A as Posted Credit Support in accordance with the Credit
Support Annex. Within one (1) Local Business Day following the
corresponding Additional Collateral Release Date, Party A shall Transfer such
Additional Collateral to Party B in accordance with the Credit Support Annex.

 

(f)    Additional Amendments to Representations and Events of Default.

 

(i)    Section 3(a)(iii) of the Agreement shall
be amended by inserting the following phrase at the end thereof, before the
semicolon:  “, in each case (with respect
to matters other than constitutional
documents), except as could not be reasonably expected to have a
material adverse effect on its ability to perform its obligations hereunder.”

 

(ii)   Section 3(b) of the Agreement shall be
amended by inserting the following phrase at the end thereof, before the
period:  “, in each case, except as could
not be reasonably expected to have a material adverse effect on its ability to
perform its obligations hereunder.”

 

(iii)  Section 3(c) of the Agreement shall be
amended by inserting the following phrase at the end thereof, before the
period:  “, in each case, which if
adversely determined could be reasonably expected to have a material adverse
effect on its ability to perform its obligations hereunder.”

 

(iv)  Section 5(a)(iv) of the Agreement shall be
amended by inserting the following phrase at the end thereof, before the
semicolon:  “provided, however, that if
any such incorrect representation is capable of being remedied or cured, it may
remedy such incorrect representation by curing the adverse effects of such
misstatement, within thirty (30) days of obtaining knowledge of such
incorrectness.”

 

(g)   Automatic Early Termination.  The “Automatic Early
Termination” provisions of Section 6(a) of this Agreement will not
apply to Party A and will not apply to Party B.

 

(h)   Payments on Early Termination.  For the purpose of Section 6(e),
Loss and the Second Method will apply.

 

(i)    Termination Currency.  “Termination Currency” means United States
Dollars.

 

(j)    Additional Termination Event.  Additional Termination Event
will apply. Section 5(b) of the Agreement is modified by adding at
the end thereof the following new subsections (vi), (vii) and (viii):

 

3

 

(vi)          The
Closing Date shall not have occurred on or prior to November 1, 2008, in
which case (I) Party B shall be the sole Affected Party and (II) all
Transactions shall be Affected Transactions.

 

(vii)         Party B fails to provide to Party A on the Closing Date, the
Intercreditor Agreement, the Collateral Documents and the Energy Hedge
Guarantees, in each case, executed and delivered by all parties thereto and
with conditions to its effectiveness having been satisfied, in which case (I) Party
B shall be the sole Affected Party and (II) all Transactions shall be
Affected Transactions.

 

(viii)        COD
with respect to any of the Projects (as defined in the Financing Agreement as in effect on the Closing Date)
shall not have occurred by the COD Deadline, in which case (I) Party B
shall be the sole Affected Party and (II) all Transactions shall be
Affected Transactions, unless before the COD Deadline:

 

(a)(1) Party
B designates such Project to be removed from the Financing Documents and this
Agreement, (2) the Financing Documents, Collateral Documents and Project
Documents have been amended on terms and conditions reasonably satisfactory to
Party A to remove such Project and as amended no event of default exists
thereunder, and (3) Party B has agreed to amend this Agreement, including
the Designated Confirmation, as proposed by Party A in its reasonable
discretion such that:

 

(x)            the portion of the
Transaction set forth in the Designated Confirmation attributable to such
Project is removed but leaving the portion of the Transaction set forth in the
Designated Confirmation applicable to the remaining Project(s) in effect;

 

(y)           notwithstanding any
other provision of this Agreement, only that portion of the Transaction set
forth in the Designated Confirmation attributable to such Project shall be an
Affected Transaction and (i) an Early Termination Date has been declared
with respect to the Affected Transaction, and (ii) any amount payable in
respect of the Terminated Transaction has been paid in accordance with the
provisions of Section 6 of the Agreement; and

 

(z)            the Initial LC or cash
in the Initial LC Amount, as the case may be, shall be reduced proportionately
based on the notional volume of production associated with each Project set
forth on Schedule 2 hereto; or

 

(b)(1) 
Party B designates such Project to be assigned from being financed and hedged
under the Financing Documents and this Agreement to being financed and hedged
under a parallel transaction, which parallel transaction is based on the terms
and conditions of this Agreement, the Financing Documents, the Collateral
Documents and the Project Documents, maintains for the assigned Project the
general financing, hedging and project structures set forth in such agreements
and documents and is on terms and conditions set forth below and otherwise on
terms and conditions reasonably satisfactory to Party A (the “Parallel Transaction”), (2) the
Financing Documents, Collateral Documents and Project Documents have been
amended on terms and conditions reasonably satisfactory to Party A to provide
for the assignment of such Project and as amended no event of default exists
thereunder, and (3) Party B has agreed to amend this Agreement, including
the Designated Confirmation, to accommodate the assignment of a portion thereof
to be part

 

4

 

of the
Parallel Transaction, with both this Agreement and the assigned portion to be
under documentation proposed by Party A in its reasonable discretion (such
documentation for the Parallel Transaction being the “Parallel
Hedge”), including that:

 

(x)            in addition to the
Liens provided under the Collateral Documents and under the Parallel
Transaction and the division of the Initial LC or cash in the Initial LC
Amount, as the case may be, between this Agreement and the Parallel Hedge,
Party B shall provide any additional Eligible Credit Support requested by Party
A for this Agreement and the Parallel Hedge as Party A determines is reasonably
necessary in order to provide it with a comparable level of coverage in respect
of its credit exposures, as it had immediately prior to giving effect to such
Parallel Transaction, as determined by Party A. 
In connection therewith, Party A shall not request additional Eligible
Credit Support solely to cover increased exposure resulting from market changes
since the date of this Agreement, but Party A may request Eligible Credit
Support if the removal of such Project makes such Project or the remaining
Projects weaker from a credit standpoint than the aggregated Projects as a
whole; and

 

(y)           this Agreement and the
Parallel Hedge shall have such customary cross default, netting and setoff
provisions as may be requested by Party A.

 

	
  (k)

  	
  Certain
  Restrictions on Rights and Remedies. The rights of Party A to terminate and exercise remedies under this
  Agreement are subject to certain restrictions in the Energy Hedge Provider
  Forbearance Agreement, the Consent to Assignment and the Intercreditor
  Agreement.

  

 

Part 2

Tax Representations

 

(a)   Payer Tax Representations.  For the purpose of Section 3(e),
Party A and Party B each makes the following representation:

 

It is not required by any
applicable law, as modified by the practice of any relevant governmental
revenue authority, of any Relevant Jurisdiction to make any deduction or
withholding for or on account of any Tax from any payment (other than interest
under Section 2(e), 6(d)(ii) or 6(e)) to be made by it to the other
party under this Agreement.  In making
this representation, it may rely on:

 

(i)    The accuracy of any representation made by the other party pursuant to Section 3(f);

 

(ii)   The satisfaction of the agreement of the other party contained in Section 4(a)(i) or
4(a)(iii) and the accuracy and effectiveness of any document provided by
the other party pursuant to Section 4(a)(i) or 4(a)(iii); and

 

(iii)  The satisfaction of the agreement of the other party contained in Section 4(d);

 

provided that
it shall not be a breach of this representation where reliance is placed on
clause (ii), and the other party does not deliver a form or document under Section 4(a)(iii) by
reason of material prejudice to its legal or commercial position.

 

(b)   Payee Tax Representations.  For the purpose of Section 3(f),
Party A and Party B make the representations specified below, if any:

 

(i)    The following representation will apply to Party A:

 

5

 

It is a corporation organized under the laws
of the State of Delaware and its U.S. taxpayer identification number is
27-0069674.  It is “exempt” within the
meaning of Treasury Regulation sections 1.6041-3(p) and 1.6049-4(c) from
information reporting on Form 1099 and backup withholding.

 

(ii)   The following representation
will apply to Party B:

 

It is a limited liability company created or
organized in the United States or under the laws of the United States and its
U.S. taxpayer identification number is 26-0283832.

 

Part 3

Agreement to Deliver
Documents

 

Each
party agrees to deliver the following documents as applicable:

 

(a)   For the purpose of Section 4(a)(i), tax forms, documents or
certificates to be delivered are:

 

	
  Party required to

  deliver document

  	
   

  	
  Form/Document/Certificate

  	
   

  	
  Date by which

  to be delivered

  
	
  Party A &
  Party B

  	
   

  	
  As required under
  Section 4(a)(iii) of this Agreement, IRS Form W-9, IRS
  Form W-8BEN, IRS Form W-8ECI, IRS Form W-8EXP and/or IRS
  Form W-8IMY, whichever is relevant.

  	
   

  	
  (i) Promptly upon
  execution of this Agreement and (ii) promptly upon learning that any such form
  previously provided by such party has become obsolete, incorrect, or
  ineffective

  

 

(b)   For the purpose of Section 4(a)(ii), other documents to be
delivered are:

 

	
   

  	
   

  	
  Party required to

  deliver document

  	
   

  	
  Form/Document/Certificate

  	
   

  	
  Date by which

  to be delivered

  	
   

  	
  Covered by

  Section 3(d)

  Representation

  
	
  (1)

  	
   

  	
  Party
  A &  Party B

  	
   

  	
  Evidence
  reasonably satisfactory to the other party as to the names, true signatures
  and authority of the officers or officials (a) signing this Agreement on
  its behalf, and (b) signing the respective Credit Support Documents
  referred to in Part 4(g) of this Schedule.

  	
   

  	
  Upon
  execution of this Agreement and, if requested, upon execution of any
  Confirmation.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (2)

  	
   

  	
  Party
  B

  	
   

  	
  Any
  financial statements required to be

  	
   

  	
  As
  and when

  	
   

  	
  Yes

  

 

6

 

	
   

  	
   

  	
   

  	
   

  	
  delivered
  to the Lenders under the Financing Agreement.

  	
   

  	
  required
  to be delivered to Lenders under the Financing Agreement

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (3)

  	
   

  	
  Party
  A

  	
   

  	
  A
  copy of the audited annual report of the Credit Support Provider for Party A.

  	
   

  	
  Upon
  request, as soon as publicly available after the end of each of its,
  or its Credit Support Provider, as applicable, fiscal quarters if such
  financial statement is not available on “EDGAR” or a party’s, or its Credit
  Support Provider’s, home page on the World Wide Web at www.citigroup.com
  for Party A.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (4)

  	
   

  	
  Party
  A

  	
   

  	
  A
  duly signed copy of its Credit Support Documents referred to in
  Part 4(g) of this Schedule.

  	
   

  	
  Upon
  execution of this Agreement.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (5)

  	
   

  	
  Party
  A & Party B

  	
   

  	
  A
  duly signed copy of the Credit Support Annex.

  	
   

  	
  Upon
  the execution of this Agreement.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (6)

  	
   

  	
  Party
  A & Party B

  	
   

  	
  Certified
  resolutions evidencing necessary corporate authority and approvals with
  respect to the execution, delivery and performance by Party A and Party B of
  this Agreement.

  	
   

  	
  Upon
  execution of this Agreement.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (7)

  	
   

  	
  Party
  A & Party B

  	
   

  	
  Certified
  resolutions evidencing necessary corporate authority and approvals with
  respect to the execution, delivery and performance by the Credit Support
  Provider of any applicable Credit Support Document.

  	
   

  	
  Upon
  execution of this Agreement.

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (8)

  	
   

  	
  Party
  B

  	
   

  	
  Executed
  copies of (i) the Intercreditor Agreement, (ii) the Collateral
  Documents, and (iii) the Energy Hedge

  	
   

  	
  Upon
  the Closing Date.

  	
   

  	
  Yes

  

 

7

 

	
   

  	
   

  	
   

  	
   

  	
  Guarantees.

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (9)

  	
   

  	
  Party
  B

  	
   

  	
  Executed
  copies of the Financing Documents (other than Collateral Documents), the
  Energy Hedge Provider Forbearance Agreement, and the Forbearance Agreement.

  	
   

  	
  Upon
  the Closing Date

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (10)

  	
   

  	
  Party
  B

  	
   

  	
  The
  Initial LC or cash in the Initial LC Amount

  	
   

  	
  Upon
  the Closing Date

  	
   

  	
  Yes

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (11)

  	
   

  	
  Party
  B

  	
   

  	
  An
  opinion of counsel to Party B in form and substance satisfactory to Party A;
  it being acknowledged and agreed that a legal opinion in form and substance
  similar to that delivered to the Lenders under the Financing Agreement will
  be satisfactory to Party A.

  	
   

  	
  Upon
  the Closing Date

  	
   

  	
  No

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (12)

  	
   

  	
  Party
  A and Party B

  	
   

  	
  Executed
  copies of the Consent to Assignment.

  	
   

  	
  Upon
  the Closing Date

  	
   

  	
  No

  

 

Notwithstanding the foregoing, Citigroup Inc. financials are “deemed”
to be delivered hereunder on the date the same shall be posted on the
Securities and Exchange Commission website (www.sec.gov).

 

Part 4

Miscellaneous

 

(a)   Addresses for Notices.  For the purpose of Section 12(a):

 

Notwithstanding Section 12(a) of
the Agreement all notices including those to be given under Section 5 or 6
may be given by facsimile transmission or electronic messaging system
(excluding e-mail).

 

(i)            Party A:

 

Address for notices or
communications to Party A:

 

Citigroup
Energy Inc.

2800 Post Oak
Blvd., Suite 500

Houston,
Texas  77056

Attention:          Legal
Department

Facsimile No.:(713) 752-5244

 

8

 

(For all purposes)

 

In addition, in the case of notices or
communications relating to Section 5, 6, 11 or 13 of this Agreement, a
second copy of any such notice or communication shall be addressed to the
attention of Party A’s legal department as follows:

 

Legal Department

388 Greenwich Street

17th Floor

New York, New York 10013

Attention:          Senior
Deputy General

Facsimile
No.:  (212) 816-5550

 

(ii)           Party
B

 

Address for notices or communications to Party B:

 

Noble Environmental Power
2008 Hold Co., LLC

8 Railroad Avenue

Suite 8, Second Floor

Essex, CT 06426

 

Attention:  Thomas Swank and
Sidney Chang

Telephone:  +1 (860) 581-5010 /
(860) 581-5060

Facsimile:  +1 (860) 767-7198

 

(For all purposes.)

 

In addition to the notices described herein,
Party A shall provide certain notices in respect of the provisions of the
following related agreements, a copy of which notices shall in each case be
provided to Party B (if party B is not already a recipient of such notice):

 

	
  Event Requiring

  Notice

  	
   

  	
  Notice Required and Related Agreement

  
	
  Events of Default and/or Termination Events

  	
   

  	
  Part 6(b)(i) of the Master Agreement: If a Termination Event
  occurs, and Party A is the Affected Party, Party A shall notify Party B of
  each such Termination Event.

   

  Section 5.7 of the
  Intercreditor Agreement: Party A shall give the First Lien
  Collateral Agent (as defined therein) prompt written notice on the occurrence
  of (i) any Event of Default or Termination with Party B as the
  Defaulting Party or the Affected Party and (ii) the acceleration of the
  obligations of Party B under this Agreement (if it is at the time a First
  Lien Document, as defined in the Intercreditor Agreement).

   

  Section 5 of
  Consent to Assignment of Energy Hedge Agreement (among Party A, Party B and
  Citibank, N.A.): Party A shall promptly notify Assignee (as defined
  therein) of any Event of

  

 

9

 

	
   

  	
   

  	
  Default or Termination
  with Party B as the Defaulting Party or the Affected Party, and
  simultaneously deliver to such Assignee any notices regarding same under this
  Agreement or otherwise.

   

  Section 2.3.1 of
  Energy Hedge Provider Control Agreement (among Party A, Party B and the Bank
  of New York): Party A, as Second Lien Creditor, must promptly
  deliver notice to Depositary (as defined therein) upon the cure of an Event
  of Default (as defined therein).

  
	
   

  	
   

  	
   

  
	
  Receipt of Collateral Proceeds

  	
   

  	
  Section 4.3(b) of
  the Intercreditor Agreement: Upon receipt of monies
  pursuant to Section 4.1 of the Intercreditor Agreement, Party A as
  Second Lien Collateral Holder must provide notice to each Secured Debt
  Representative (as defined therein) of the receipt of such monies and provide
  the First Lien Collateral Agent (as defined therein) written certification of
  the aggregate amount owed by Party B.

  
	
   

  	
   

  	
   

  
	
  Sale of Collateral

  	
   

  	
  Section 7.3(a) of
  the Second Lien Security Agreement (among Party A, Party B, and certain of
  Party B’s subsidiaries): Party A must provide ten
  (10) banking days’ notice to the applicable Grantor (as defined therein)
  of the time and place of any public sale of or the time after which any
  private sale is to be made of Collateral (as defined therein).

   

  Section 7.4(a) of
  Second Lien Pledge Agreement (among Party A and Party B): Party A
  must provide ten (10) banking days’ notice to Party B, as Pledgor, of
  the time and place of any public sale of or the time after which any private
  sale is to be made of Collateral (as defined therein).

   

  Section 7.4(a) of
  Second Lien Pledge Agreement (among Party A and Noble Environmental Power
  2008 Hold Co. Prime is a signatory): Party A must provide ten
  (10) banking days’ notice to Pledgor (as defined therein) of the time
  and place of any public sale of or the time after which any private sale is
  to be made of Collateral (as defined therein).

  

 

(iii)          Administrative
Agent

 

Address
for notices or communications to the Administrative Agent:

 

As provided in the Financing Agreement as of the date of this Agreement
or to any successor address provided by the Administrative Agent.

 

(For receipt of notice of Termination Events and Events of Default as
to which Party B is the Affected Party or Defaulting Party, as applicable.)

 

10

 

(b)   Effectiveness of Notice. 
Section 12(a) is hereby amended by deleting the words
“facsimile transmission or” in line 3 thereof.

 

(c)   Process Agent.  For
the purpose of Section 13(c) of this Agreement:

 

Party
A appoints as its Process Agent:  None.

 

Party
B appoints as its Process Agent:  None.

 

(d)   Offices.  The
provisions of Section 10(a) will apply to this Agreement.

 

(e)   Multibranch Party. For the purpose of Section 10(c):

 

Party
A is not a Multibranch Party.

 

Party
B is not a Multibranch Party.

 

(f)            Calculation Agent for Commodity
Transactions.  The Calculation Agent is Party A unless
otherwise specified in a Confirmation in relation to the relevant Transaction.
The Calculation Agent shall act in good faith and in a commercially reasonable
manner. All determinations shall be binding on Party A and Party B unless Party
A receives notice from Party B within five Local Business Days of any such
determination setting forth the reasons for its objection.

 

Upon receipt of such
objection notice, each party agrees to be bound by the determinations and
calculations of a leading, independent dealer in derivatives selected by
agreement between the parties within three Local Business Days (unless
impracticable or inadvisable to proceed in which case the next succeeding Local
Business Day where the impracticality or inadvisability shall no longer exist)
of such disagreement (the “Substitute Calculation
Agent”), whose fees and expenses shall be borne equally by both
parties. If the parties are unable to agree on a Substitute Calculation Agent,
each of the parties shall elect an independent dealer in derivatives and such
two dealers shall agree on a third party, who shall be deemed to be the
Substitute Calculation Agent.

 

While the Substitute
Calculation Agent may be informed of the identities of Party A and Party B, all
submissions to the Substitute Calculation Agent shall be joint and the
Substitute Calculation Agent shall not be informed which party has submitted
which calculation or determination. 
Subject to the foregoing, each party agrees to supply the Substitute
Calculation Agent with its determination or calculation and may supply any such
additional materials or information which shall aid the Substitute Calculation
Agent in understanding the basis for such determination or calculation.  The Substitute Calculation Agent shall select
from these submissions the determination or calculation it believes to be the
closest to the actual determination or calculation, which selection shall be
final and binding upon the parties with regard to the disputed item.

 

(g)         Credit Support Document.  Details of any Credit Support
Document:

 

In
relation to Party A and Party B:  The
Credit Support Annex.

 

	
  In
  relation to Party A:

  	
   

  	
  The
  guarantee made by Citigroup Inc., dated as of the date hereof, attached
  hereto as Exhibit I.

  

 

11

 

	
  In
  relation to Party B:

  	
   

  	
  from
  (and including) the Closing Date to (and including) the Designated
  Confirmation Termination Date, the Intercreditor Agreement, the Collateral
  Documents and the Energy Hedge Guarantees.

  

 

(h)       Credit Support Provider. Credit Support Provider means:

 

	
  In
  relation to Party A:

  	
   

  	
  Citigroup
  Inc.

  
	
   

  	
   

  	
   

  
	
  In
  relation to Party B:

  	
   

  	
  from
  (and including) the Closing Date to 
  (and including) the Designated Confirmation Termination Date, each
  affiliate of Party B that is a party to the Intercreditor Agreement, any
  Collateral Document or any Energy Hedge Guarantee.

  

 

(i)            Governing Law and
Jurisdiction.  THIS AGREEMENT WILL BE GOVERNED BY AND
CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD
TO CONFLICTS OF LAW PROVISIONS THEREOF OTHER THAN SECTION 5-1401 OF THE
NEW YORK GENERAL OBLIGATIONS LAW). 
SECTION 13(b) IS HEREBY AMENDED BY: (I) DELETING IN THE
SECOND LINE OF SUBPARAGRAPH (I) THEREOF THE WORD, “NON-”; (II) ADDING
IN THE THIRD LINE BEFORE THE COMMA, “AND EACH PARTY IRREVOCABLY AGREES TO
DESIGNATE ANY PROCEEDINGS BROUGHT IN THE COURTS OF THE STATE OF NEW YORK AS
‘COMMERCIAL’ ON THE REQUEST FOR JUDICIAL INTERVENTION SEEKING ASSIGNMENT TO THE
COMMERCIAL DIVISION OF THE SUPREME COURT”; AND (III) INSERTING “IN ORDER
TO ENFORCE ANY JUDGMENT OBTAINED IN ANY PROCEEDINGS REFERRED TO IN THE
PRECEDING SENTENCE” IMMEDIATELY AFTER THE WORD, “JURISDICTION” THE FIRST TIME
IT APPEARS IN THE SECOND SENTENCE AND DELETING THE REMAINDER.  EACH PARTY IRREVOCABLY AND UNCONDITIONALLY
WAIVES AND AGREES NOT TO PLEAD, TO THE FULLEST EXTENT PERMITTED BY LAW, ANY
OBJECTION THAT THEY MAY NOW OR HEREAFTER HAVE TO THE LAYING OF VENUE OR
THE CONVENIENCE OF THE FORUM OF ANY PROCEEDING WITH RESPECT TO THIS AGREEMENT
AND THE TRANSACTIONS CONTEMPLATED HEREBY, IN THE UNITED STATES DISTRICT COURT
FOR THE SOUTHERN DISTRICT OF NEW YORK AND THE COURTS OF THE STATE OF NEW YORK
LOCATED IN NEW YORK COUNTY.

 

(j)            Affiliate. 
Affiliate will have the meaning specified in Section 14, provided,
however, that with regard to Party A, the term “Affiliate” shall not include
any entity that controls or is under common control with Citigroup Global
Markets Holdings Inc., but in any event such term shall include Citigroup
Global Markets Holdings Inc. and any entity controlled by it.

 

(i)            Netting of Payments. 
Subparagraph (ii) of Section 2(c) will not apply to
Transactions.

 

Part 5

Other Provisions

 

	
  (a)

  	
   

  	
  Scope
  of Agreement. The
  terms of this Agreement shall relate solely and specifically to the
  Transaction set forth in the Designated Confirmation.

  
	
   

  	
   

  	
   

  
	
  (b)

  	
   

  	
  ISDA
  Definitions. Unless
  otherwise specified in a Confirmation (and subject to
  Section 5(v) hereof), each Transaction between the parties shall be
  subject to the 2000 ISDA Definitions and the 1993 ISDA Commodity Derivatives
  Definitions and the 2000 Supplement thereto, as published by the

  

 

12

 

International Swaps and
Derivatives Association, Inc. 
(collectively, the “2000 Definitions”), and will be governed in all
relevant respects by the provisions of the 2000 Definitions, without regard to
amendments subsequent to the date thereof. 
The provisions of the 2000 Definitions are incorporated by reference in
and shall be deemed a part of this Agreement except that references in the 2000
Definitions to a “Swap Transaction” shall be deemed references to a
“Transaction” for purposes of this Agreement.

 

(c)          Confirmations.
Section 9(e)(ii) of the Master Agreement is hereby amended and
restated in its entirety to read as follows:

 

(ii) 
The parties intend that they are legally bound by the terms of the Transaction
set forth in the Designated Confirmation from the moment such Designated Confirmation
is executed by both parties, which may be executed and delivered in
counterparts (including by facsimile transmission), and which will be
sufficient for all purposes to evidence a binding supplement to this Agreement.  The parties will specify that such Designated
Confirmation constitutes a Confirmation for purposes of this Agreement.  Other than in respect of a particular
Transaction to which it relates, under no circumstance shall the Designated
Confirmation amend, or be deemed to amend, the general terms of this Agreement.

 

(d)          LIMITATION OF LIABILITY.  WITH RESPECT TO CLAIMS UNDER
THIS AGREEMENT, NO PARTY SHALL BE REQUIRED TO PAY OR BE LIABLE TO THE OTHER FOR
EXEMPLARY, PUNITIVE, INDIRECT, INCIDENTAL, CONSEQUENTIAL, OR INDIRECT DAMAGES,
LOST PROFITS OR OPPORTUNITY COSTS (WHETHER OR NOT ARISING FROM ITS NEGLIGENCE)
TO ANY OTHER PARTY.  IF AND TO THE EXTENT
ANY PAYMENT REQUIRED TO BE MADE PURSUANT TO THIS AGREEMENT IS DEEMED TO
CONSTITUTE LIQUIDATED DAMAGES, THE PARTIES ACKNOWLEDGE AND AGREE THAT SUCH
DAMAGES ARE DIFFICULT OR IMPOSSIBLE TO DETERMINE AND THAT SUCH PAYMENT IS
INTENDED TO BE A REASONABLE APPROXIMATION OF THE AMOUNT OF SUCH DAMAGES AND NOT
A PENALTY.

 

(e)          Accuracy of Specified
Information.  Section 3(d) of the Master
Agreement is hereby amended by adding in the third line thereof after the word
“respect” and before the period the words “or, in the case of audited or
unaudited financial statements, a presentation of the financial condition of
the relevant party in accordance with generally accepted accounting principles,
consistently applied.”

 

(f)            Additional Representation will apply.  For
purposes of Section 3 of this Agreement, the following will constitute
Additional Representations and each party will be deemed to represent to the
other party on the date on which it enters into a Transaction that (absent a
written agreement between the parties that expressly imposes affirmative
obligations to the contrary for that Transaction) that:

 

“(g)                           Relationship Between
Parties.  Each party will be deemed to represent to the
other party on the date on which it enters into a Transaction that (absent a
written agreement between the parties that expressly imposes affirmative
obligations to the contrary for that Transaction):

 

(i)                                     Non-Reliance.  It is acting for its own account, and it has made its own independent
decisions to enter into that Transaction and as to whether that Transaction is
appropriate or proper for it based upon its own judgment and upon advice from
such advisers as it has deemed necessary. 
It is not relying on any communication (written or oral) of the other
party as investment advice or as a recommendation to enter into that
Transaction; it being understood that information and explanations related to
the terms and 

 

13

 

conditions
of a Transaction shall not be considered investment advice or a recommendation
to enter into that Transaction.  No
communication (written or oral) received from the other party shall be deemed
to be an assurance or guarantee as to the expected results of that Transaction.

 

(ii)                                  Assessment and Understanding.  It is capable of assessing the merits of and understanding (on its own
behalf or through independent professional advice), and understands and
accepts, the terms, conditions and risks of that Transaction.  It is also capable of assuming, and assumes,
the risks of that Transaction.

 

(iii)                               Status of Parties.  The other party is not acting as a fiduciary
for or an adviser to it in respect of that Transaction.

 

(iv)                              No Agency.  It is
entering into this Agreement, including each Transaction, as principal and not
as agent of any person or entity.

 

(h)                                 Commodity Exchange Act.  Each
party represents to the other party on and as of the date hereof and on each
date on which a Transaction is entered into among them that:

 

(i)                                     Such party is an “eligible contract
participant” as defined in the U.S. Commodity Exchange Act, as amended (the “CEA”).

 

(ii)                                  Such party is an “eligible commercial entity”
as defined in the CEA.”

 

(i)                                     Bankruptcy Code
Representation.  The parties intend that (i) all
Transactions (being a single integrated agreement) constitute a “forward
contract” within the meaning of the United States Bankruptcy Code (the “Bankruptcy Code”) or a “swap agreement” within
the meaning of the Bankruptcy Code; (ii) all payments made or to be made
by one party to the other party, pursuant to this Agreement constitutes
“settlement payments” within the meaning of the Bankruptcy Code; (iii) all
transfers of credit support by one party to the other party under this
Agreement constitute “margin payments” within the meaning of the Bankruptcy
Code; and (iv) this Agreement constitutes a “master netting agreement”
within the meaning of the Bankruptcy Code.

 

(j)                                     No Employee Benefit Assets. 
The assets
that are used, directly or indirectly, in connection with the execution,
delivery and performance of this Agreement and the Transactions entered into
pursuant hereto are legally and beneficially owned by such party and are not
held by it, directly or indirectly, for the benefit of or under any form of any
employee benefit or other plan, trust plan, pension plan, individual retirement
accounts or other type of similar plans.

 

(g)         Change of Account. 
Section 2(b) of this Agreement is hereby amended by the
addition of the following after the word “delivery” in the first line thereof:

 

“to
another account in the same federal tax jurisdiction as the original account”

 

(h)         Recording of Conversation. Each party to this
Agreement acknowledges and agrees to the tape recording of conversations
between the parties to this Agreement whether by one or other or both of 

 

14

 

the parties and each party hereby agrees that it
will not object to the introduction of any recording into evidence on the basis
that such proposed evidence is a recording.

 

(i)            Waiver of Right to Trial by Jury.  EACH
PARTY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, CLAIM,
COUNTERCLAIM, ACTION OR PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT
OR ANY CREDIT SUPPORT DOCUMENT.  THE
PARTIES FURTHER HEREBY IRREVOCABLY WAIVE ANY RIGHT TO SUE FOR, PURSUE, OBTAIN,
OR COLLECT PUNITIVE, CONSEQUENTIAL, INCIDENTAL, INDIRECT OR MULTIPLE DAMAGES
WITH RESPECT TO ANY CLAIM, COUNTERCLAIM OR ACTION ARISING OUT OF OR RELATING TO
THIS AGREEMENT,.  IF AND TO THE EXTENT
ANY PAYMENT REQUIRED TO BE MADE PURSUANT TO THIS AGREEMENT IS DEEMED TO
CONSTITUTE LIQUIDATED DAMAGES, THE PARTIES ACKNOWLEDGE AND AGREE THAT SUCH
DAMAGES ARE DIFFICULT TO OR IMPOSSIBLE TO DETERMINE AND THAT SUCH PAYMENT IS
INTENDED TO BE A REASONABLE APPROXIMATION OF THE AMOUNT OF SUCH DAMAGES AND NOT
A PENALTY. EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR
ATTORNEY OF THE OTHER PARTY OR ANY CREDIT SUPPORT PROVIDER HAS REPRESENTED,
EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF SUCH A
SUIT, ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II) ACKNOWLEDGES
THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT AND
PROVIDE FOR ANY CREDIT SUPPORT DOCUMENT, AS APPLICABLE BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

(j)            Transfer.  In
addition to transfers under Sections 7(a) and 7(b), for the purpose of any
financing, Party B may, without the consent of Party A, collaterally assign to
or otherwise create a security interest in favor of lenders or their
designee(s), or any other person providing any financing, in or of Party B’s
rights and interests in, under or pursuant to this Agreement and the revenues
deriving from any of the rights or assets of Party B.  Notwithstanding anything herein to the
contrary, any transfer by Party A shall require the consent of Citigroup Inc.

 

(k)        Security Interest; Collateral.  Upon
execution of the Financing Agreement and the initial funding of Loans
thereunder (such date being referred to herein as the “Closing
Date”), Party B shall (i) deliver the Initial LC or cash in
the Initial LC Amount to Party A and (ii) grant, and cause to be granted,
in favor of Party A under the Second Lien Collateral Documents, a second
priority security interest in and lien on the Collateral (the “Second Lien”), which Second Lien
shall be subject and junior to the security interests and liens created by and
granted under the First Lien Collateral Documents and which shall secure and
cover all of Party B’s obligations under the terms of this Agreement in effect
from time to time (the “Energy Hedge Provider
Second Lien Obligations”). Upon the Term-Conversion Date, Party
B shall grant and cause to be granted, in favor of Party A under the Collateral
Documents, a first priority security interest in and lien on the Collateral
(the “First Lien”), which First
Lien shall rank pari passu with the lien of the Lenders and which shall secure
and cover all of Party B’s obligations under this Agreement in effect from time
to time in an aggregate amount equal to the lesser of (x) the amount of
such obligations then due and payable (together with such amounts which may
become due and payable at a future date) and (y) the difference of $***
(the “Energy Hedge Provider First Lien Cap”)
minus all amounts paid to Party A from the proceeds of the liquidation of Collateral
under the First Lien Collateral Documents following the termination and
liquidation of this Agreement by Party A 
(the “Energy Hedge Provider First Lien Obligations”,
and together with the Energy Hedge Provider Second Lien Obligations, the “Energy Hedge Provider 

 

15

 

Obligations”).  As
used in this paragraph and incorporated into the definitions in this paragraph,
the term “obligations” means all payment obligations, liabilities (including
any indemnification or other obligations that survive the termination of
applicable agreements), reimbursement obligations, and all other obligations,
howsoever arising (including guarantee obligations), of every kind and
description (whether or not for the payment of money), direct or indirect,
absolute or contingent, due or to become due, now existing or hereafter
arising, including those owed under the terms of applicable agreements after
the commencement of any bankruptcy or insolvency proceeding whether or not impaired
by such proceeding.

 

(l)            No Liens. 
Party B shall not create, incur, assume, suffer to exist or permit any
lien upon or with respect to any of its properties or assets without the
consent of Party A other than (x) the security interests and liens created
by and granted under the First Lien Collateral Documents, which security
interests and liens shall, so long as any Energy Hedge Provider Obligations are
outstanding, not secure any obligations in excess of the First Lien Debt Cap,
(y) the security interests and liens created by and granted under the
Second Lien Collateral Documents, and (z) other Permitted Liens; provided that:

 

(1)                                  if (a) a lien, other than a lien granted
or permitted by Party B, is imposed on property or assets of Party B in violation
of the foregoing provisions of this paragraph (m), (b) such lien is senior
to the Loans under the Financing Agreement, (c) such lien is imposed prior
to any foreclosure by the Administrative Agent on the Class B Membership
Interests or the Class A Membership Interests and (d) the
Administrative Agent and the Lenders have not consented to such lien and have
not affirmatively waived compliance with the lien covenants in the Financing
Agreement with respect to such lien, then no Event of Default will arise under
this clause (m) in respect of such lien for so long as Party B or the
Administrative Agent is using commercially reasonable efforts to remove such
lien; and

 

(2)                                  if (a) a lien, other than a lien granted
or permitted by Party B, is imposed on property or assets of Party B in
violation of the foregoing provisions of this clause (m), (b) such lien is
senior to the Loans under the Financing Agreement, and (c) the
Administrative Agent, one or more of the Lenders or one or more of their designees
has taken (through foreclosure or otherwise) the Class B Membership
Interests or the Class A Membership Interests prior to the imposition of
such lien, then  an Event of Default will occur
under this clause (m) in respect of such lien  only  if the lien secures claims aggregating $***or more (unless
consented to by Party A in writing).

 

(m)     Severability.  Any provision of this Agreement (including
any Transaction hereunder or any Credit Support Document) which is 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 of this Agreement, such Transaction or
such Credit Support Document or affecting the validity or enforceability of such
provision in any other jurisdiction unless such severance shall substantially
impair the benefits of the remaining portions of this Agreement, such
Transaction or such Credit Support Document or changes the reciprocal
obligations of the parties; provided, however, that this
severability provision shall not be applicable if any provision of
Section 1, 2, 5 or 6 (or any definition or provision in Section 14 to
the extent it relates to, or is used in or in connection with any such Section)
shall be so held to be invalid or unenforceable.  In the event any provision herein is held to
be prohibited, invalid or unenforceable, the parties hereto shall endeavor 

 

16

 

in
good faith negotiations to replace the prohibited or unenforceable provision
with a valid provision, the economic effect of which comes as close as possible
to that of the prohibited or unenforceable provision.

 

(n)                 Confidentiality.  The contents of this Agreement and all other documents relating to this
Agreement, and any information made available by one party to the other party
with respect to this Agreement is confidential and shall not be disclosed to
any third party (nor shall any public announcement relating to this Agreement
be made by either party), except for such information (i) as may become
generally available to the public, (ii) as may be required or appropriate
in response to any summons, subpoena, or otherwise in connection with any
litigation or to comply with any applicable law, order, regulation, ruling, or
accounting disclosure rule or standard, (iii) as may be obtained from
a non-confidential source that disclosed such information in a manner that did
not violate its obligations to the non-disclosing party in making such
disclosure, (iv) as may be furnished to the disclosing party’s Affiliates,
and to each of such person’s auditors, attorneys, advisors, actual or potential
lenders or actual or potential equity investors which are required to keep the
information that is disclosed in confidence, (v) as may be required or
appropriate in response to any summons, subpoena, or otherwise in connection
with any litigation or to comply with any applicable law, order, regulation,
ruling or request of any judicial, administrative or legislative body or
committee of any self-regulatory body (including any securities or commodities
exchange or the National Association of Securities Dealers, Inc.), or
accounting disclosure rule or standard, (vi) as may be obtained from
a non-confidential source that disclosed such information in a manner that did
not violate its obligations to the disclosing party in making such disclosure,
(vii) with respect to Party A, at the request of a bank examiner in
connection with an examination of Citigroup Inc. or its affiliates.  With respect to information provided with
respect to a Transaction, this obligation shall survive for a period of one
(1) year following the expiration or termination of such Transaction.  With respect to information provided with
respect to this Agreement, this obligation shall survive for a period of one
(1) year following the expiration or termination of this Agreement.

 

(o)                  Reference Market-makers.  The definition of “Reference Market-makers” in Section 14 of this
Agreement is hereby amended by: (i) deleting “(a)” from the second line
thereof; (ii) deleting in the fourth line thereof after the word “credit”
the words “and (b) to the extent practicable, from among such dealers
having an office in the same city”; (iii) replacing such words with the
words “or to enter into transactions similar in nature to Transactions”; and
(iv) adding the following sentence to the end of the definition: “The
leading dealers selected by a party shall not be parties to this Agreement or
Affiliates of a party to this Agreement.”

 

(p)                  Limitation of Rate. 
Notwithstanding any provision to the contrary contained in this
Agreement, in no event shall the Default Rate, Non-default Rate, or Termination
Rate exceed the Highest Lawful Rate.  For
purposes hereof, “Highest Lawful Rate” shall mean, with respect to each party,
the maximum non-usurious interest rate, if any, that at any time or from time
to time may be contracted for, taken, reserved, charged, or received on the
subject indebtedness under the law applicable to such party.

 

(q)                  Potential Event of Default. 
Section 2(a)(iii) of this Agreement is hereby amended to
delete the phrase “or Potential Event of Default”.  Section 3(b) of this Agreement is
hereby amended to delete the phrase “or Potential Event of Default”.  Section 14 of this Agreement is hereby
amended to delete the term “Potential Event of Default” and its corresponding
definition.

 

(r)                  Notice of Termination Events and
Events of Default.  To the extent Party A is required to provide
notice to Party B of the same, Party A shall provide to the Class A Member
and to the 

 

17

 

Administrative
Agent notice of any Termination Event or Event of Default in which Party B is
the Affected Party or Defaulting Party, as applicable (and, estimated
calculations of Party A’s Exposure related thereto).

 

(s)                  Rounding.  For
purposes of preparing any calculations referred to in the Commodity
Definitions, unless otherwise agreed to and specified in a Confirmation,
rounding conventions for commodity pricing shall be as follows:

 

	
  Megawatt
  Hours:

  	
   

  	
  rounded
  to the nearest fourth decimal place

  
	
  MMBtu:

  	
   

  	
  rounded
  to the nearest fourth decimal place

  
	
  Gallons

  	
   

  	
  rounded
  to the nearest fourth decimal place

  
	
  Barrels:

  	
   

  	
  rounded
  to the nearest third decimal place

  

 

(t)            Definitions. For the purpose of this Agreement, the following capitalized terms
shall have the meanings set forth below. 
In the event of any inconsistency in the definitions among the following
documents, the definition in relevant document first listed hereinafter shall
govern (i) the Designated Confirmation, (ii) Paragraph 13- Elections
and Variables to the ISDA Credit Support Annex, (iii) this Schedule,
(v) the 2000 ISDA Definitions and the 1993 ISDA Commodity Derivatives
Definitions, (v) the printed forms of the 1992 ISDA Master Agreement and
1994 ISDA Credit Support Annex (Bilateral Form, New York law) and (vi) the
Financing Agreement.

 

“Additional Collateral “ has the
meaning specified in Part 1(e) above.

 

“Additional Collateral Period” means
each period from, and including, an Additional Collateral Trigger Date to, but
excluding, the related Additional Collateral Release Date.

 

“Additional Collateral Trigger Date”
means any date on which a Specified Event of Default or Specified Additional
Termination Event would occur under this Agreement but for the operation of
Part 1(e) of the Schedule to the Agreement.

 

“Additional Collateral Release Date”
means, following any Additional Collateral Trigger Date, the date on which
Party A receives evidence satisfactory to Party A in its sole discretion that
all Specified Events of Default and all Specified Additional Termination Events
have been cured, all adverse effects thereof on Party A have been remedied and
no other Event of Default or Termination Event has occurred and is then
continuing with respect to Party B.

 

“Administrative Agent” has the
meaning set forth in the definition of “Financing Agreement” below.

 

“Altona” means Noble Altona Windpark,
LLC.

 

“Chateaugay” means Noble Chateaugay
Windpark, LLC.

 

“Class A Member” means EFS Noble
II, LLC.

 

“Class A Membership Interests”
has the meaning specified in the Forbearance Agreement.

 

“Class B Member” means Noble
Environmental Power 2008 Hold Co., Prime, LLC, a Delaware limited liability
company.

 

“Class B Membership Interests”
has the meaning specified in the Forbearance Agreement.

 

18

 

“Closing Date” has the meaning
specified in Part 5(k) above.

 

“COD” means, with respect to any
Project, the earlier of (i) the date by which Completion (as defined in
the Financing Agreement as in effect on the Closing Date) with respect to such
Project has occurred and (ii) the Term-Conversion Date.

 

“COD Deadline” means
December 31, 2009.

 

“Collateral” shall have the meaning
specified in the Intercreditor Agreement.

 

“Collateral Documents” has the
meaning given to such term in the Intercreditor Agreement.

 

“Consent to Assignment” means the
Consent to Assignment of Energy Hedge Agreement, dated as of the Closing Date,
among Party A, Party B and the Administrative Agent, which shall be in form and
substance reasonably acceptable to Party A.

 

“Credit Support Annex” means the
Credit Support Annex, including Paragraph 13 thereto, attached hereto as Exhibit III.

 

“Depositary Agreement” means the
Depositary Agreement dated as of the Closing Date among Party B, the
Administrative Agent, Citibank, N.A. as Collateral Agent and an agreed upon
depositary institution, as the same may be amended, modified or supplemented
from time to time.

 

“Designated Confirmation” means the
Confirmation attached hereto as Exhibit II.

 

“Designated Confirmation Termination Date”
means the date on which all obligations of Party A under this Agreement have
terminated, the Noble Tracking Account Balance has been paid in full and all
obligations of Party B under this Agreement have been paid in full or otherwise
satisfied.

 

“Energy Hedge Guarantees” means
guarantees of the Energy Hedge Guarantors, in form and substance reasonably
acceptable to Party A.

 

“Energy Hedge Guarantors” means
Altona, Chateaugay and Wethersfield.

 

“Energy Hedge Provider First Lien Cap”
has the meaning specified in of Part 5(k) above.

 

“Energy Hedge Provider First Lien Obligations”
has the meaning specified in of Part 5(k) above.

 

“Energy Hedge Provider Forbearance Agreement”
means the Forbearance Agreement, dated as of the Closing Date, between Party A
and the Class A Member, which shall be in form and substance reasonably
acceptable to Party A, as the same may be amended, modified or supplemented
from time to time.

 

“Energy Hedge Provider Obligations”
has the meaning specified in Part 5(k) above.

 

“Energy Hedge Provider Second Lien Obligations”
has the meaning specified in Part 5(k) above.

 

“Equity Support Members” has the
meaning given to such term in the Financing Agreement.

 

“Execution Date” has the meaning set forth on the first page of this Schedule.

 

19

 

“Financing Agreement” means the
Financing Agreement, dated as of the Closing Date, among Party B, the financial
institutions from time to time party thereto, Citibank, N.A., as Administrative
Agent for the Lenders and Collateral Agent for the Secured Parties as defined
therein, Citibank Global Markets, Inc., as Joint Lead Arranger and Joint
Bookrunner, and various other financial institutions in certain capacities
thereunder, as the same may be amended, modified or supplemented from time to
time (or as may be refinanced or replaced in accordance with the Intercreditor
Agreement).

 

“Financing Documents” has the meaning
given to such term in the Financing Agreement.

 

“First Lien” has the meaning
specified in Part 5(k) above.

 

“First Lien Debt Cap” means (without
duplication):

 

(a)                                  (1) on any date prior to the Term
Conversion Date, the principal amount of indebtedness permitted under the
Financing Agreement as of the Closing Date; and

 

                                                (2) on any date on and after the Term
Conversion Date, the principal amount of indebtedness permitted under the
Financing Agreement as of the Term Conversion Date; plus

 

(b)                                 the aggregate amount of interest, fees and
other obligations at anytime owing under the Financing Agreement; plus

 

(c)                                  the aggregate amount of any advances extended
by one or more of the Lenders which are determined by the Administrative Agent
in its reasonable discretion to be necessary to protect and preserve the value
of the Collateral; plus

 

(d)                                 $***; plus

 

(e)                                  Energy Hedge Provider First Lien Obligations;
plus

 

(f)                                    the obligations of Party B under Interest
Rate Agreements; plus

 

(g)                                 for purposes of this Agreement, but not for
the purpose of incorporation into other Agreements, the dollar amount of any
Permitted Liens, to the extent not covered by any of the foregoing.  For the avoidance of doubt, clause
(g) shall not be included in the determination of the “DIP Financing Cap Amount” or the “First Lien
Loan Cap Amount” in the Intercreditor Agreement.

 

“First Lien Collateral Documents”
shall have the meaning given to such term in the Intercreditor Agreement, but
for the avoidance of doubt shall include the Intercreditor Agreement, the
Depositary Agreement, a first lien security agreement, first lien consents and
agreements, first lien pledge agreements, and first lien mortgages as necessary
to provide the First Lien.

 

“Forbearance Agreement” means the
Forbearance Agreement, dated as of the Closing Date, among the Class A
Member, Party B and the Administrative Agent, as the same may be amended,
modified or supplemented from time to time.

 

“Forbearance Default” has the meaning
specified in the Forbearance Agreement, as in effect on the Closing Date.

 

20

 

“Initial LC” means the Letter of
Credit (as defined in the Credit Support Annex) in the Initial LC Amount
delivered to Party A on the Closing Date.

 

“Initial LC Amount” means $***.

 

“Intercreditor Agreement” means the
Collateral Agency and Intercreditor Agreement dated as of the Closing Date
among Party B, the Energy Hedge Guarantors, Citibank, N.A., as First Lien
Collateral Agent (the “First Lien Collateral
Agent”), and Citibank, N.A., as Second Lien Collateral Agent
(the “Second Lien Collateral Agent”),
as the same may be amended, modified or supplemented from time to time.

 

“Lenders” has the meaning specified
in the Financing Agreement.

 

“Loans” means the loans made by the
Lenders under the Financing Agreement.

 

“Permitted Liens” means “Permitted
Liens” as defined in the Financing Agreement.

 

“Proceeding” shall mean any action,
order, writ, injunction, judgment, determination or decree or any claim, suit,
litigation, proceeding, appeal, arbitration, mediation, tax audit or
governmental investigation of any kind involving any person, or its business or
assets.

 

“Project Documents” has the meaning
specified in the Financing Agreement.

 

“Second Lien” has the meaning
specified in Part 5(k) above.

 

“Second Lien Collateral Documents”
shall have the meaning given to such term in the Intercreditor Agreement, but
for the avoidance of doubt shall include the Intercreditor Agreement, the
Depositary Agreement, a second lien security agreement, second lien consents
and agreements, second lien pledge agreements, and second lien mortgages as
necessary to provide the Second Lien.

 

“Specified Additional Termination Event”
has the meaning specified in Part 1(e) above.

 

“Specified Event of Default” has the
meaning specified in Part 1(e) above.

 

“Term-Conversion Date”  has the meaning set forth for such term in the Financing
Agreement as in effect on the Closing Date.

 

“Wethersfield” means Noble
Wethersfield Windpark, LLC.

 

21

 

Part 6

 

ADDITIONAL
PROVISIONS FOR

COMMODITY DERIVATIVE TRANSACTIONS

 

(a)   Amendments to ISDA Commodity Definitions

 

(i)            Section 7.3 of the Commodity Definitions
is amended to read as follows:

 

Section 7.3.  Corrections to Published
Prices.  For purposes of
determining the Relevant Price for any day, if the price published or announced
on a given day and used or to be used by the Calculation Agent to determine a
Relevant Price is subsequently corrected and the correction is published or
announced by the person responsible for that publication or announcement within
one year of the date of the original publication or announcement, either party
may notify the other party of (i) that correction and (ii) the amount
(if any) that is payable as a result of that correction.  If, not later that thirty (30) calendar days
after the publication or announcement of that correction, a party gives notice
that an amount is so payable, the party that originally received or retained
such amount will, no later than three (3) Local Business Days after the
effectiveness of that notice, pay, subject to any applicable conditions
precedent, to the other party that amount, together with interest on that
amount at the Non-Default Rate for the period from and including the day on
which a payment originally was (or was not) made to but excluding the day of
payment of the refund or payment resulting from that correction.

 

(ii)           “Additional Market Disruption
Events” shall not apply.

 

(iii)          The following “Disruption
Fallbacks” specified in Section 7.5(c) of the Commodity
Definitions shall apply, in the following order, except as otherwise specified
in the relevant Confirmation:

 

1.                                      “Fallback Reference Price” (if the relevant parties have specified an
alternate Commodity Reference Price in the Confirmation);

 

2.                                      “Negotiated Fallback”;

 

3.                                      “Postponement” with three (3) Commodity Business Days
as the Maximum Days of Disruption;

 

4.                                      “Fallback Reference Dealers”.

 

[signature
page follows]

 

22

 

IN WITNESS WHEREOF, the parties have executed this
document on the respective dates specified below with effect from the date
specified on the first page of this document.

 

	
  CITIGROUP
  ENERGY INC.

  	
   

  	
  NOBLE
  ENVIRONMENTAL POWER 2008

  HOLD CO., LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:

  	
  /s/
  Victoria T. Sharp

  	
   

  	
  By:

  	
  /s/
  Walter Howard

  
	
  Name:

  	
  Victoria
  T. Sharp

  	
   

  	
  Name:

  	
  Walter
  Howard

  
	
  Title:

  	
  Managing
  Director

  Citigroup Energy Inc.

  	
   

  	
  Title:

  	
  President

  
	
  Date:

  	
   

  	
   

  	
  Date:Exhibit 10.41(b)

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR
THE REDACTED PORTIONS OF THIS AGREEMENT. THE REDACTIONS ARE INDICATED WITH
THREE ASTERISKS (“***”). A COMPLETE VERSION OF THIS AGREEMENT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION.

 

	
  (Bilateral
  Form)

  	
   

  	
  (ISDA Agreements Subject to New York Law Only)

  

 

ISDA®

International Swaps and Derivatives Association, Inc.

 

CREDIT SUPPORT ANNEX

 

to the Schedule to the

 

1992 ISDA Master Agreement

 

dated as of June 30, 2008

 

	
  CITIGROUP ENERGY INC.

  	
   

  	
  NOBLE
  ENVIRONMENTAL POWER 2008 HOLD CO, LLC

  
	
   

  	
  between

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  and

  	
   

  
	
  (“Party A”)

  	
   

  	
  (“Party B”)

  

 

This
Annex supplements, forms part of, and is subject to, the above-referenced
Agreement, is part of its Schedule and is a Credit Support Document under this
Agreement with respect to each party.

 

Accordingly,
the parties agree as follows:—

 

Paragraph 1.
Interpretation

 

(a)                             Definitions
and Inconsistency.  Capitalized terms not otherwise defined herein
or elsewhere in this Agreement have the meanings specified pursuant to
Paragraph 12, and all references in this Annex to Paragraphs are
to Paragraphs of this Annex. In the event of any inconsistency between this
Annex and the other provisions of this Schedule, this Annex will prevail, and
in the event of any inconsistency between Paragraph 13 and the
other provisions of this Annex, Paragraph 13 will prevail.

 

(b)                            Secured
Party and Pledgor.  All
references in this Annex to the “Secured Party” will be to either party when
acting in that capacity and all corresponding references to the “Pledgor” will
be to the other party when acting in that capacity; provided, however, that if Other Posted
Support is held by a party to this Annex, all references herein to that party
as the Secured Party with respect to that Other Posted Support will be to that
party as the beneficiary thereof and will not subject that support or that
party as the beneficiary thereof to provisions of law generally relating to
security interests and secured parties.

 

Paragraph 2. Security
Interest

 

Each
party, as the Pledgor, hereby pledges to the other party, as the Secured Party,
as security for its Obligations, and grants to the Secured Party a first
priority continuing security interest in, lien on and right of Set-off against
all Posted Collateral Transferred to or received by the Secured Party
hereunder. Upon the Transfer by the Secured Party to the Pledgor of Posted
Collateral, the security interest and lien granted hereunder on that Posted
Collateral will be released immediately and, to the extent possible, without
any further action by either party.

 

Copyright ©
1994 by International Swaps and Derivatives Association, Inc.

 

 

Paragraph 3
.. Credit Support Obligations

 

(a)                                  Delivery
Amount.  Subject to
Paragraphs 4 and 5, upon a demand made by the Secured Party on or promptly
following a Valuation Date, if the Delivery Amount for that Valuation Date
equals or exceeds the Pledgor’s Minimum Transfer Amount, then the Pledgor will
Transfer to the Secured Party Eligible Credit Support, having a Value as of the
date of Transfer at least equal to the applicable Delivery Amount (rounded
pursuant to Paragraph 13). Unless otherwise specified in Paragraph 13, the “Delivery Amount”  applicable to the Pledgor for any
Valuation Date will equal the amount by which:

 

(i)  the Credit Support
Amount 

 

exceeds

 

(ii)  the Value as of that
Valuation Date of all Posted Credit Support held by the Secured Party.

 

(b)                                 Return
Amount.  Subject to
Paragraphs 4 and 5, upon a demand made by the Pledgor on or promptly following
a Valuation Date, if the Return Amount for that Valuation Date equals or
exceeds the Secured Party’s Minimum Transfer Amount, then the Secured Party
will Transfer to the Pledgor Posted Credit Support specified by the Pledgor in
that demand having a Value as of the date of Transfer as close as practicable
to the applicable Return Amount (rounded pursuant to Paragraph 13). Unless
otherwise specified in Paragraph 13, the  “Return Amount”
applicable to the Secured Party for any Valuation Date will equal the
amount by which:

 

(i)  the Value as of that Valuation
Date of all Posted Credit Support held by the Secured Party 

 

exceeds

 

(ii)  the Credit Support Amount.

 

“Credit Support Amount”  means, unless otherwise specified in Paragraph 13, for any Valuation Date
(i) the Secured Party’s Exposure for that Valuation Date plus (ii) the
aggregate of all Independent Amounts applicable to the Pledgor, if any, minus
(iii) all Independent Amounts applicable to the Secured Party, if any, minus
(iv) the Pledgor’s Threshold; provided,
however, that the
Credit Support Amount will be deemed to be zero whenever the calculation of
Credit Support Amount yields a number less than zero.

 

Paragraph 4.
Conditions Precedent, Transfer Timing, Calculations and Substitutions

 

(a)                                  Conditions
Precedent.  Each Transfer
obligation of the Pledgor under Paragraphs 3 and 5 and of the Secured Party
under Paragraphs 3, 4(d)(ii), 5 and 6(d) is subject to the conditions precedent
that:

 

(i) no Event of Default, Potential Event of Default or Specified Condition
has occurred and is continuing with respect to the other party; and

 

(ii) no Early Termination Date for which any unsatisfied payment
obligations exist has occurred or been designated as the result of an Event of
Default or Specified Condition with respect to the other party.

 

(b)                                 Transfer
Timing.  Subject to
Paragraphs 4(a) and 5 and unless otherwise specified, if a demand for the
Transfer of Eligible Credit Support or Posted Credit Support is made by the
Notification Time, then the relevant Transfer will be made not later than the
close of business on the next Local Business Day; if a demand is made after the
Notification Time, then the relevant Transfer will be made not later than the
close of business on the second Local Business Day thereafter.

 

(c)                                  Calculations.  All calculations of Value and Exposure for purposes
of Paragraphs 3 and 6(d) will be made by the Valuation Agent as of the
Valuation Time. The Valuation Agent will notify each party (or the other party,
if the Valuation Agent is a party) of its calculations not later than the
Notification Time on the Local Business Day following the applicable Valuation
Date (or in the case of Paragraph 6(d), following the date of calculation).

 

2

 

(d)                                 Substitutions.

 

(i) Unless otherwise specified in Paragraph 13, upon notice to the
Secured Party specifying the items of Posted Credit Support to be exchanged,
the Pledgor may, on any Local Business Day, Transfer to the Secured Party
substitute Eligible Credit Support (the “Substitute Credit Support”); and

 

(ii) subject to Paragraph 4(a), the Secured Party will Transfer to the
Pledgor the items of Posted Credit Support specified by the Pledgor in its
notice not later than the Local Business Day following the date on which the
Secured Party receives the Substitute Credit Support, unless otherwise
specified in Paragraph 13 (the “Substitution Date”); provided that the Secured Party will only be obligated to
Transfer Posted Credit Support with a Value as of the date of Transfer of that
Posted Credit Support equal to the Value as of that date of the Substitute
Credit Support.

 

Paragraph 5.
Dispute Resolution

 

If
a party (a “Disputing Party”) disputes (I) the Valuation Agent’s calculation of
a Delivery Amount or a Return Amount or (II) the Value of any Transfer of
Eligible Credit Support or Posted Credit Support, then (1) the Disputing Party
will notify the other party and the Valuation Agent (if the Valuation Agent is
not the other party) not later than the close of business on the Local Business
Day following (X) the date that the demand is made under Paragraph 3 in the
case of (I) above or (Y) the date of Transfer in the
case of (II) above, (2) subject to Paragraph 4(a), the appropriate
party will Transfer the undisputed amount to the other party not later than the
close of business on the Local Business Day following (X) the date that the
demand is made under Paragraph 3 in the case of (I) above or (Y) the date of
Transfer in the case of (II) above, (3) the parties will consult with each
other in an attempt to resolve the dispute and (4) if they fail to resolve the
dispute by the Resolution Time, then:

 

(i) In the case of a dispute involving a Delivery Amount or Return
Amount, unless otherwise specified in Paragraph 13, the Valuation Agent will
recalculate the Exposure and the Value as of the Recalculation Date by:

 

(A) utilizing any calculations of Exposure for the Transactions (or Swap
Transactions) that the parties have agreed are not in dispute;

 

(B) calculating the Exposure for the Transactions (or Swap Transactions)
in dispute by seeking four actual quotations at mid-market from Reference
Market-makers for purposes of calculating Market Quotation, and taking the
arithmetic average of those obtained; provided
that if four quotations are not available for a particular
Transaction (or Swap Transaction), then fewer than four quotations may be used
for that Transaction (or Swap Transaction); and if no quotations are available
for a particular Transaction (or Swap Transaction), then the Valuation Agent’s
original calculations will be used for that Transaction (or Swap Transaction);
and

 

(C) utilizing the procedures specified in Paragraph 13 for calculating
the Value, if disputed, of Posted Credit Support.

 

(ii) In the case of a dispute involving the Value of any
Transfer of Eligible Credit Support or Posted Credit Support, the Valuation
Agent will recalculate the Value as of the date of Transfer pursuant to
Paragraph 13.

 

Following
a recalculation pursuant to this Paragraph, the Valuation Agent will notify
each party (or the other party, if the Valuation Agent is a party) not later
than the Notification Time on the Local Business Day following the Resolution
Time. The appropriate party will, upon demand following that notice by the
Valuation Agent or a resolution pursuant to (3) above and subject to Paragraphs
4(a) and 4(b), make the appropriate Transfer.

 

3

 

Paragraph 6.
Holding and Using Posted Collateral

 

(a)                                  Care
of Posted Collateral.  Without
limiting the Secured Party’s rights under Paragraph 6(c), the Secured Party
will exercise reasonable care to assure the safe custody of all Posted
Collateral to the extent required by, applicable law, and in any event the
Secured Party will be deemed to have exercised reasonable care if it exercises
at least the same degree of care as it would exercise with respect to its own
property. Except as specified in the preceding sentence, the Secured Party will
have no duty with respect to Posted Collateral, including, without limitation,
any duty to collect any Distributions, or enforce or preserve any rights
pertaining thereto.

 

(b)                                 Eligibility
to Hold Posted Collateral; Custodians.

 

(i)  General.  Subject to the
satisfaction of any conditions specified in Paragraph 13 for holding Posted
Collateral, the Secured Party will be entitled to hold Posted Collateral or to
appoint an agent (a “Custodian”) to hold Posted Collateral for the Secured
Party. Upon notice by the Secured Party to the Pledgor of the appointment of a
Custodian, the Pledgor’s obligations to make any Transfer will be discharged by
making the Transfer to that Custodian. The holding of Posted Collateral by a
Custodian will be deemed to be the holding of that Posted Collateral by the Secured
Party for which the Custodian is acting.

 

(ii)  Failure to Satisfy Conditions.  If the Secured Party
or its Custodian fails to satisfy any conditions for holding Posted Collateral,
then upon a demand made by the Pledgor, the Secured Party will, not later than
five Local Business Days after the demand, Transfer or cause its Custodian to
Transfer all Posted Collateral held by it to a Custodian that satisfies those
conditions or to the  Secured
Party if it satisfies those conditions.

 

(iii)  Liability.  The Secured Party
will be liable for the acts or omissions of its Custodian to the same extent
that the Secured Party would be liable hereunder for its own acts or omissions.

 

(c)                                  Use
of Posted Collateral.  Unless
otherwise specified in Paragraph 13 and without limiting the rights and obligations
of the parties under Paragraphs 3, 4(d)(ii), 5, 6(d) and 8, if the Secured
Party is not a Defaulting Party or an Affected Party with respect to a
Specified Condition and no Early Termination Date has occurred or been designated
as the result of an Event of Default or Specified Condition with respect to the
Secured Party, then the Secured Party will, notwithstanding Section 9-207 of
the New York Uniform Commercial Code, have the right to:

 

(i)  sell, pledge, rehypothecate, assign,
invest, use, commingle or otherwise dispose of, or otherwise use in its
business any Posted Collateral it holds, free from any claim or right of any
nature whatsoever of the Pledgor, including any equity or right of redemption
by the Pledgor; and

 

(ii)  register any Posted
Collateral in the name of the Secured Party, its Custodian or a nominee for
either.

 

For
purposes of the obligation to Transfer Eligible Credit Support or Posted Credit
Support pursuant to Paragraphs 3 and 5 and any rights or remedies authorized
under this Agreement, the Secured Party will be deemed to continue to hold all
Posted Collateral and to receive Distributions made thereon, regardless of
whether the Secured Party has exercised any rights with respect to any Posted
Collateral pursuant to (i) or (ii) above.

 

(d)                                 Distributions
and Interest Amount.

 

(i)  Distributions.  Subject to Paragraph 4(a), if the Secured Party receives or
is deemed to receive Distributions on a Local Business Day, it will Transfer to
the Pledgor not later than the following Local Business Day any Distributions
it receives or is deemed to receive to the extent that a Delivery Amount would
not be created or increased by that Transfer, as calculated by the Valuation
Agent (and the date of calculation will be deemed to be a Valuation Date for
this purpose).

 

4

 

(ii) 
Interest Amount. Unless otherwise specified in Paragraph 13 and subject to Paragraph
4(a), in lieu of any interest, dividends or other amounts paid or deemed to
have been paid with respect to Posted Collateral in the form of Cash (all of
which may be retained by the Secured Party), the Secured Party will Transfer to
the Pledgor at the times specified in Paragraph 13 the Interest Amount to the
extent that a Delivery Amount would not be created or increased by that
Transfer, as calculated by the Valuation Agent (and the date of calculation
will be deemed to be a Valuation Date for this purpose). The Interest Amount or
portion thereof not Transferred pursuant to this Paragraph will constitute
Posted Collateral in the form of Cash and will be subject to the security
interest granted under Paragraph 2.

 

Paragraph 7. Events of Default

 

For purposes of Section 5(a)(iii)(1) of this
Agreement, an Event of Default will exist with respect to a party if:

 

(i)  that party fails (or fails to cause its
Custodian) to make, when due, any Transfer of Eligible Collateral, Posted
Collateral or the Interest Amount, as applicable, required to be made by it and
that failure continues for two Local Business Days after notice of that failure
is given to that party;

 

(ii)  that party fails to comply with any
restriction or prohibition specified in this Annex with respect to any of the
rights specified in Paragraph 6(c) and that failure continues for five Local
Business Days after notice of that failure is given to that party; or

 

(iii)  that party fails to comply with or perform any
agreement or obligation other than those specified in Paragraphs 7(i) and 7(ii)
and that failure continues for 30 days after notice of that failure is given to
that party.

 

Paragraph 8. Certain Rights and Remedies

 

(a)                                  Secured
Party’s Rights and Remedies. If at any time (1)
an Event of Default or Specified Condition with respect to the Pledgor has
occurred and is continuing or (2) an Early Termination Date has occurred or
been designated as the result of an Event of Default or Specified Condition
with respect to the Pledgor, then, unless the Pledgor has paid in full all of
its Obligations that are then due, the Secured Party may exercise one or more
of the following rights and remedies:

 

(i) all rights and remedies available to a
secured party under applicable law with respect to Posted Collateral held by
the Secured Party;

 

(ii) any other rights and remedies
available to the Secured Party under the terms of Other Posted Support, if any;

 

(iii) the right to Set-off any amounts
payable by the Pledgor with respect to any Obligations against any Posted
Collateral or the Cash equivalent of any Posted Collateral held by the Secured
Party (or any obligation of the Secured Party to Transfer that Posted
Collateral); and

 

(iv) the right to liquidate any Posted
Collateral held by the Secured Party through one or more public or private
sales or other dispositions with such notice, if any, as may be required under
applicable law, free from any claim or right of any nature whatsoever of the
Pledgor, including any equity or right of redemption by the Pledgor (with the
Secured Party having the right to purchase any or all of the Posted Collateral
to be sold) and to apply the proceeds (or the Cash equivalent thereof) from the
liquidation of the Posted Collateral to any  amounts payable by
the Pledgor with respect to any  Obligations in that order
as the Secured Party may elect.

 

Each party acknowledges and agrees that Posted
Collateral in the form of securities may decline speedily in value and is of a
type customarily sold on a recognized market, and, accordingly, the Pledgor is
not entitled to prior notice of any sale of that Posted Collateral by the
Secured Party, except any notice that is required under applicable law and
cannot be waived.

 

5

 

(b)           Pledgor’s
Rights and Remedies. If at any time an Early
Termination Date has occurred or been designated as the result of an Event of
Default or Specified Condition with respect to the Secured Party, then (except
in the case of an Early Termination Date relating to less than all Transactions
(or Swap Transactions) where the Secured Party has paid in full all of its
obligations that are then due under Section 6(e) of this Agreement):

 

(i) the Pledgor may exercise all rights and
remedies available to a pledgor under applicable law with respect to Posted
Collateral held by the Secured Party;

 

(ii) the Pledgor may exercise any other
rights and remedies available to the Pledgor under the
terms of Other Posted Support, if any;

 

(iii) the Secured Party will be obligated
immediately to Transfer all Posted Collateral and the Interest Amount to the Pledgor,
and

 

(iv) to the extent that Posted Collateral
or the Interest Amount is not so Transferred pursuant to (iii) above, the
Pledgor may:

 

(A)  Set-off
any amounts payable by the Pledgor with respect to any Obligations against any
Posted Collateral or the Cash equivalent of any Posted Collateral held by the
Secured Party (or any obligation of the Secured Party
to Transfer that Posted Collateral); and

 

(B)  to
the extent that the Pledgor does not Set-off under (iv)(A) above, withhold
payment of any remaining amounts payable by the Pledgor with respect to any
Obligations, up to. the Value of any remaining Posted Collateral held by the
Secured Party, until that Posted Collateral is Transferred to the Pledgor.

 

(c)                                  Deficiencies
and Excess Proceeds. The Secured Party will
Transfer to the Pledgor any proceeds and Posted Credit Support remaining after
liquidation, Set-off and/or application under Paragraphs 8(a) and 8(b) after
satisfaction in full of all amounts payable by the Pledgor with respect to any
Obligations; the Pledgor in all events will remain liable for any amounts
remaining unpaid after any liquidation, Set-off and/or application under
Paragraphs 8(a) and 8(b).

 

(d)                                 Final
Returns. When no amounts are or thereafter may
become payable by the Pledgor with respect to any Obligations (except for any
potential liability under Section 2(d) of this Agreement), the Secured Party
will Transfer to the Pledgor all Posted Credit Support and the Interest Amount,
if any.

 

Paragraph 9.
Representations

 

Each party represents to the other party (which
representations will be deemed to be repeated as of each date on which it, as
the Pledgor, Transfers Eligible Collateral) that:

 

(i)  it
has the power to grant a security interest in and lien on any Eligible
Collateral it Transfers as the Pledgor and has taken all necessary actions to
authorize the granting of that security interest and lien;

 

(ii) 
it is the  sole
owner of or otherwise has the right to Transfer all Eligible Collateral it
Transfers to the Secured Party hereunder, free and clear of any security
interest, lien, encumbrance or other restrictions other than the security
interest and lien granted under Paragraph 2;

 

(iii) 
upon the Transfer of any Eligible Collateral to the Secured Party under
the terms of this Annex, the Secured Party will have a valid and perfected
first priority security interest therein (assuming that any central clearing
corporation or any third-party financial intermediary or other entity not
within the control of the Pledgor involved in the Transfer of that Eligible
Collateral gives the notices and takes the action required of it under
applicable law for perfection of that interest); and

 

(iv) 
the performance by it of its obligations under this Annex will not
result in the creation of any security interest, lien or other encumbrance on
any Posted Collateral other than the security interest and lien granted under
Paragraph 2.

 

6

 

Paragraph
10. Expenses

 

(a)                                  General.
Except as otherwise provided in Paragraphs 10(b) and 10(c), each party
will pay its own costs and expenses in connection with performing its
obligations under this Annex and neither party will be liable for any costs and
expenses incurred by the other party in connection herewith.

 

(b)                                 Posted
Credit Support. The Pledger will promptly pay when due all taxes,
assessments or charges of any nature that are imposed with respect to Posted
Credit Support held by the Secured Party upon becoming aware of the same,
regardless of whether any portion of that Posted Credit Support is subsequently
disposed of under Paragraph 6(c), except for those taxes, assessments and
charges that result from the exercise of the Secured Party’s rights under
Paragraph 6(c).

 

(c)                                  Liquidation/Application
of Posted Credit Support. All reasonable costs and expenses incurred by
or on behalf of the Secured Party or the Pledgor in connection with the
liquidation and/or application of any Posted Credit Support under Paragraph 8,
will be payable, on demand and pursuant to the Expenses Section of this
Agreement, by the Defaulting Party or, if there is no Defaulting Party, equally
by the parties.

 

Paragraph
11. Miscellaneous

 

(a)                                  Default
Interest. A Secured Party that fails to make, when due, any
Transfer of Posted Collateral or the Interest Amount will be obligated to pay
the Pledgor (to the extent permitted under applicable law) an amount equal to
interest at the Default Rate multiplied by the Value of the items of property
that were required to be Transferred, from (and including) the date that Posted
Collateral or ,Interest Amount was required to be Transferred to
(but excluding) the date of Transfer of that Posted Collateral or Interest
Amount. This interest will be calculated on the basis of daily compounding and
the actual number of days elapsed.

 

(b)                                 Further
Assurances.  Promptly following a
demand made by a party, the other party will execute, deliver, file and record
any financing statement, specific assignment or other document and take any
other action that may be necessary or desirable and reasonably requested by
that party to create, preserve, perfect or validate any security interest or
lien granted under Paragraph 2, to enable that party to exercise or enforce its
rights under this Annex with respect to Posted Credit Support or an Interest
Amount or to effect or document a release of a security interest on Posted
Collateral or an Interest Amount.

 

(c)                                  Further
Protection.  The Pledgor will
promptly give notice to the Secured Party of, and defend against, any suit,
action, proceeding or lien that involves Posted Credit Support Transferred by
the Pledger or that could adversely affect the security interest and lien
granted by it under Paragraph 2, unless that suit, action, proceeding or lien
results from the exercise of the Secured Party’s rights under Paragraph 6(c).

 

(d)                                 Good
Faith and Commercially Reasonable Manner.  Performance
of all obligations under this Annex, including, but not limited to, all
calculations, valuations and determinations made by either party, will be made
in good faith and in a commercially reasonable manner.

 

(e)                                  Demands
and Notices. All demands and notices made by a party under this
Annex will be made as specified in the Notices Section of this Agreement,
except as otherwise provided in Paragraph 13.

 

(f)                                    Specifications
of Certain Matters. Anything referred to in this Annex as being
specified in Paragraph 13 also may be specified in one or more Confirmations or
other documents and this Annex will be construed accordingly.

 

7

 

Paragraph 12. Definitions

 

As used in this Annex:—

 

“Cash” means the lawful currency
of the United States of America.

 

“Credit Support Amount” has the
meaning specified in Paragraph 3.

 

“Custodian” has the meaning
specified in Paragraphs 6(b)(i) and 13.

 

“Delivery Amount” has the
meaning specified in Paragraph 3(a).

 

“Disputing Party” has the
meaning specified in Paragraph 5.

 

“Distributions” means with
respect to Posted Collateral other than Cash, all principal, interest and other
payments and distributions of cash or other property with respect thereto,
regardless of whether the Secured Party has disposed of that Posted Collateral
under Paragraph 6(c). Distributions will not include any item of property
acquired by the Secured Party upon any disposition or liquidation of Posted
Collateral or, with respect to any Posted Collateral in the form of Cash, any
distributions on that collateral, unless otherwise specified herein.

 

“Eligible  Collateral” means,  with
respect to a party, the items, if any, specified as such for that party in
Paragraph 13.

 

“Eligible Credit Support” means
Eligible Collateral and Other Eligible Support.

 

“Exposure” means for any
Valuation Date or other date for which Exposure is calculated and subject to
Paragraph 5 in the case of a dispute, the amount, if any, that would be payable
to a party that is the Secured Party by the other party (expressed as a
positive number) or by a party that is the Secured Party to the other party
(expressed as a negative number) pursuant to Section 6(e)(ii)(2)(A) of this
Agreement as if all Transactions (or Swap Transactions) were being terminated
as of the relevant Valuation Time; provided that Market Quotation will be determined by the Valuation Agent
using its estimates at mid-market of the amounts that would be paid for
Replacement Transactions (as that term is defined in the definition of “Market
Quotation”).

 

“Independent Amount” means, with
respect to a party, the amount specified as such for that party in Paragraph
13; if no amount is specified, zero.

 

“Interest Amount” means, with
respect to an Interest Period, the aggregate sum of the amounts of interest
calculated for each day in that Interest Period on the principal amount of
Posted Collateral in the form of Cash held by the Secured Party on that day,
determined by the Secured Party for each such day as follows:

 

(x)  the
amount of that Cash on that day; multiplied by

 

(y)  the
Interest Rate in effect for that day; divided by

 

(z)  360.

 

“Interest Period” means the
period from (and including) the last Local Business Day on which an Interest
Amount was Transferred (or, if no Interest Amount has yet been Transferred, the
Local Business Day on which Posted Collateral in the form of Cash was
Transferred to or received by the Secured Party) to (but excluding) the Local
Business Day on which the current Interest Amount is to be Transferred.

 

“Interest Rate” means the rate
specified in Paragraph 13.

 

“Local Business Day”, unless
otherwise specified in Paragraph 13, has the meaning specified in the
Definitions Section of this Agreement, except that references to a payment in
clause (b) thereof will be deemed to include a Transfer under this Annex.

 

8

 

“Minimum Transfer Amount” means,
with respect to a party, the amount specified as such for that party in
Paragraph 13; if no amount is specified, zero.

 

“Notification Time” has the
meaning specified in Paragraph 13.

 

“Obligations” means, with
respect to a party, all present and future obligations of that party under this
Agreement and any additional obligations specified for that party in Paragraph
13.

 

“Other Eligible Support” means, with respect
to a party, the items, if any, specified as such for that party in Paragraph
13.

 

“Other Posted Support” means all
Other Eligible Support Transferred to the Secured Party that remains in effect
for the benefit of that Secured Party.

 

“Pledgor” means either party,
when that party (i) receives a demand for or is required to Transfer Eligible
Credit Support under Paragraph 3(a) or (ii) has Transferred Eligible Credit
Support under Paragraph 3(a).

 

“Posted Collateral” means all
Eligible Collateral, other property, Distributions, and all proceeds thereof
that have been Transferred to or received by the Secured Party under this Annex
and not Transferred to the Pledgor pursuant to Paragraph 3(b), 4(d)(ii) or
6(d)(i) or released by the Secured Party under Paragraph 8. Any Interest Amount
or portion thereof not Transferred pursuant to Paragraph 6(d)(ii) will constitute
Posted Collateral in the form of Cash.

 

“Posted Credit Support” means Posted Collateral and Other Posted
Support.

 

“Recalculation Date” means the Valuation Date that gives rise to
the dispute under Paragraph 5; provided, however,  that if a subsequent Valuation Date occurs under Paragraph 3 prior
to the resolution of the dispute, then the “Recalculation Date” means the most
recent Valuation Date under Paragraph 3.

 

“Resolution Time” has the
meaning specified in Paragraph 13.

 

“Return Amount” has the meaning specified in
Paragraph 3(b).

 

“Secured Party” means either
party, when that party (i) makes a demand for or is entitled to receive
Eligible Credit Support under Paragraph 3(a) or (ii) holds or is deemed to hold
Posted Credit Support.

 

“Specified Condition” means,
with respect to a party, any event specified as such for that party in
Paragraph 13.

 

“Substitute Credit Support” has
the meaning specified in Paragraph 4(d)(i).

 

“Substitution Date” has the
meaning specified in Paragraph 4(d)(ii).

 

“Threshold” means, with respect
to a party, the amount specified as such for that party in Paragraph 13; if no
amount is specified, zero.

 

“Transfer” means, with respect
to any Eligible Credit Support, Posted Credit Support or Interest Amount, and
in accordance with the instructions of the Secured Party, Pledgor or Custodian,
as applicable:

 

	
   

  	
  (i)

  	
  in the case of Cash, payment or delivery by wire
  transfer into one or more bank accounts specified by the recipient;

  
	
   

  	
   

  	
   

  
	
   

  	
  (ii)

  	
  in the case of certificated securities that cannot
  be paid or delivered by book-entry, payment or delivery in appropriate
  physical form to the recipient or its account accompanied by any duly
  executed instruments of transfer, assignments in blank, transfer tax stamps
  and any other documents necessary to constitute a legally valid transfer to
  the recipient;

  
	
   

  	
   

  	
   

  
	
   

  	
  (iii)

  	
  in the case of securities that can be paid or
  delivered by book-entry, the giving of written instructions to the relevant
  depository institution or other entity specified by the recipient, together
  with a written copy thereof to the recipient, sufficient if complied with to
  result in a legally effective transfer of the relevant interest to the
  recipient; and

  
	
   

  	
   

  	
   

  
	
   

  	
  (iv)

  	
  in the case of Other Eligible Support or Other
  Posted Support, as specified in Paragraph 13.

  

 

9

 

“Valuation Agent” has the
meaning specified in. Paragraph 13.

 

“Valuation Date” means each date
specified in or otherwise determined pursuant to Paragraph 13.

 

“Valuation Percentage” means,
for any item of Eligible Collateral, the percentage specified in Paragraph 13.

 

“Valuation Time” has the meaning
specified in Paragraph 13.

 

“Value” means for any Valuation
Date or other date for which Value is calculated and subject to Paragraph 5 in
the case  of a dispute, with respect to:

 

(i) Eligible Collateral or Posted
Collateral that is:

 

(A) 
Cash, the amount thereof; and

 

(B)  a
security, the bid price obtained by the Valuation Agent multiplied by the
applicable Valuation Percentage, if any;

 

(ii) Posted Collateral that consists of
items that are not specified as Eligible Collateral, zero; and

 

(iii) Other Eligible Support and Other
Posted Support, as specified in Paragraph 13.

 

10

 

Execution Version

 

CONFIDENTIAL TREATMENT HAS BEEN REQUESTED FOR
THE REDACTED PORTIONS OF THIS AGREEMENT. THE REDACTIONS ARE INDICATED WITH
THREE ASTERISKS (“***”). A COMPLETE VERSION OF THIS AGREEMENT HAS BEEN FILED
SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISION.

 

Elections and Variables

to the ISDA Credit Support
Annex

dated as of June 30,
2008

between

 

	
  Citigroup
  Energy Inc.,

  	
   

  	
  and

  	
   

  	
  Noble
  Environmental Power 2008 Hold Co., LLC

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  a corporation organized
  under the laws of the State of Delaware

  	
   

  	
   

  	
   

  	
  a limited liability
  company organized under the laws of the State of
  Delaware

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (“Party
  A”)

  	
   

  	
   

  	
   

  	
  (“Party
  B”)

  

 

 

This ISDA Credit Support Annex is being executed and
is effective and binding on June 27, 2008, but is dated as of June 30,
2008, for cross reference purposes in other documents and agreements that
contemplate the date hereof being June 30, 2008.

 

Paragraph 13.

 

(a)                   Security Interest for “Obligations”.

 

The term “Obligations”
as used in this Annex includes the following additional obligations:

 

With respect to Party A:  None.

 

With respect to Party B:  None.

 

(b)           Credit Support
Obligations.

 

(i)            Delivery Amount, Return Amount
and Credit Support Amount.

 

(A)          “Delivery Amount” has the meaning specified in Paragraph 3(a).

 

(B)           “Return Amount” has the meaning specified in Paragraph 3(b).

 

(C)           “Credit Support Amount” with respect to Party A as a
Pledgor, has the meaning specified in Paragraph 3.

 

(D)           “Credit Support Amount” with respect to Party B in
connection with the Designated Confirmation as a Pledgor, means:

 

(1)           from the Trade Date until the earlier of (i) the date that is
thirty (30) days following the Trade Date or (ii) the Closing Date, $***;

 

1

 

(2)           from and including the date that is thirty (30) days following the
Trade Date, until the Closing Date (if the Closing Date does not occur prior to
the date that is thirty (30) days following the Trade Date), the greater of (a) $***; and (b) Party
A’s Exposure;

 

(3)           from and including the Closing Date until the Term Conversion Date,
the greater of (a) the Initial LC Amount and (b) if Party B elects to
transfer Eligible Credit Support in accordance with Part 1(e) of the
Schedule, Party A’s Exposure;

 

(4)           from
and including the Term-Conversion Date until the Designated Confirmation
Termination Date, if Party B elects to transfer Eligible Credit Support in
accordance with Part 1(e) of the Schedule, Party A’s Exposure; and

 

(5)           on any date when payments are available pursuant to Section 4.1,
priority fourth, clause (c)(ii), of the
Intercreditor Agreement or Section 4.1, priority fifth,
clause (ii), of the Intercreditor Agreement, the full amount of such payments
that are available, not to exceed Party A’s Exposure.

 

(ii)           Eligible Collateral. 
On any date, the following items will qualify as “Eligible
Collateral” for each party:

 

	
   

  	
   

  	
  Valuation

  Percentage

  
	
   

  	
   

  	
   

  
	
  (A) Cash

  	
   

  	
  100%

  
	
   

  	
   

  	
   

  
	
  (B) In respect of a party, such other assets as the other party may,
  from time to time, specify in writing as qualifying as Eligible Collateral
  for the purpose of this Annex (provided that
  any such assets shall cease to qualify as Eligible Collateral if such other
  party subsequently specifies in writing that they shall no longer qualify as Eligible
  Collateral). For the avoidance of doubt there are no other assets which, as
  of the date of this Annex, qualify as Eligible Collateral for either party.

  	
   

  	
  Such percentage as shall, from time to time, be specified by the
  other party as applying to such Eligible Collateral

  

 

2

 

(iii)          Other Eligible Support. 
The following items will qualify as “Other Eligible Support” for the party
specified:

 

	
   

  	
   

  	
  Party A

  	
   

  	
  Party B

  	
   

  	
  Valuation Percentage

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (A) Letters of Credit
  (including, with respect to Party B, the Initial LC)

  	
   

  	
  x

  	
   

  	
  x

  	
   

  	
  The Valuation Percentage
  shall be 100% unless a Letter of Credit Default shall have occurred and be
  continuing, in which case the Valuation Percentage shall be zero

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  (B) Acceptable
  Guaranty

  	
   

  	
  x

  	
   

  	
  x

  	
   

  	
  The Valuation Percentage
  shall be 100% unless a Guaranty Default shall have occurred with respect to
  such Acceptable Guaranty, in which case the Valuation Percentage shall be
  zero

  

 

For the avoidance of doubt, the Guarantee of Party
A’s Credit Support Provider, Collateral under the First Lien Collateral
Documents and the Second Lien Collateral Documents shall not constitute Other
Eligible Support.

 

(iv)          Thresholds.

 

(A)          “Independent Amount” means with respect to Party A:
Zero

 

“Independent Amount” means with respect to Party B:
Zero

 

(B)       “Threshold”  means with respect to Party A, the amount
shown below appearing opposite the lower of the Credit Ratings assigned by
either S&P or Moody’s to such party; provided
that if a Benchmark Entity is specified in relation to Party A, then the Threshold
with respect to Party A shall be the amount appearing opposite the lower of the
relevant ratings assigned by either S&P or Moody’s to Party A’s Benchmark
Entity; provided, further that if
(i) Party A has no such ratings and no Benchmark Entity has been specified
for Party A, or (ii) an Event of Default with respect to Party A has
occurred and is continuing, then in either case Party A’s Threshold shall be
zero:

 

3

 

	
  S&P

  	
   

  	
  Moody’s

  	
   

  	
  Threshold

  
	
  Rating

  	
   

  	
  Rating

  	
   

  	
  Amount

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  A- or higher

  	
   

  	
  A3 or higher

  	
   

  	
  $***or any
  higher amount expressed as the aggregate amount covered by a Guarantee
  provided by Citigroup Inc. to Party B

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BBB+

  	
   

  	
  Baa1

  	
   

  	
  $***

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BBB

  	
   

  	
  Baa2

  	
   

  	
  $***

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BBB-

  	
   

  	
  Baa3

  	
   

  	
  $***

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  BB+

  	
   

  	
  Ba1

  	
   

  	
  ***

  

 

 

“Threshold” means with respect to Party
B:  Zero

 

For Party A, the
Benchmark Entity is:  Citigroup Inc.

 

For Party B, the Benchmark Entity is: None

 

(C)    “Minimum Transfer Amount” means with respect to Party A:
$250,000.

“Minimum Transfer Amount” means with respect to Party B:
$250,000.

 

(D)  Rounding. 
The Delivery Amount and the Return Amount will be rounded up and down,
respectively, to the nearest integral multiple of US$50,000.

 

(c)           Return Amount.  Paragraph 3(b) of the Annex is amended
by the addition of the following at the end thereof, “Notwithstanding anything
to the contrary in this Agreement, upon occurrence of the Designated
Confirmation Termination Date with respect to the Transaction, Party A shall
have no obligation to return Posted Support or release any lien granted in
connection herewith until such time as any amount owed to it by Party B with
respect to a negative balance in the Tracking Account has been fully and
finally paid.”.

 

4

 

(d)           Valuation and Timing.

 

(i)            “Valuation Agent” means the Calculation Agent.

 

(ii)           “Valuation Date” means, each Local Business Day.

 

(iii)          “Valuation Time” means the close of business in
the city of the Valuation Agent on the Local Business Day before the Valuation
Date or date of calculation, as applicable, provided that
the calculations of Value and Exposure will be made as of approximately the
same time on the same date.

 

(iv)          “Notification Time” means 10:00 a.m., New York
time, on a Local Business Day.

 

(v)           Notwithstanding Paragraph 4(b), (1) prior
to the Closing Date, demand for Transfer of Eligible Credit Support or Posted
Credit Support may only be made on the Trade Date and once during each week
thereafter, (2) on and after the Closing Date, demand for Transfer of
Eligible Credit Support or Posted Credit Support may only be made on the
Closing Date and once each month thereafter and (3) if such demand is made
by the Notification Time (and accompanied by the related Additional Collateral
Supporting Documentation (which Party B shall keep confidential in accordance
with the requirements of this Agreement)) on the day of such demand, then the
relevant Transfer shall be made by the close of business on the fifth Local
Business Day thereafter and, if any such demand is made after the Notification
Time, the relevant Transfer shall be made by the close of business on the sixth
Local Business Day thereafter.

 

(e)           Conditions Precedent and Secured Party’s Rights and
Remedies.

 

For the purposes of this Annex the following events
will each be a “Specified Condition” for the
party specified (that party being the Affected Party if the event occurs with
respect to that party):

 

	
   

  	
   

  	
  Party A

  	
   

  	
  Party B

  
	
  Illegality:

  	
   

  	
  x

  	
   

  	
  x

  
	
  Credit Event Upon Merger:

  	
   

  	
  x

  	
   

  	
  x

  
	
  Additional Termination Events(s):

  	
   

  	
  x

  	
   

  	
  x

  

 

(f)            Substitution

 

(i)     “Substitution Date” has the
meaning specified in Paragraph 4(d)(ii) of this Annex.

 

(ii)    Paragraph 4(d)(ii) is amended by deleting the phrase “not later
than the Local Business Day” in the second line thereof and replacing it with “promptly”.

 

5

 

(iii)   The following phrase shall be
inserted after the word “Support” and before the period at the end of Paragraph
4(d)(ii):  “and in an amount in excess of
the Secured Party’s Minimum Transfer Amount”.

 

(g)           Dispute Resolution.

 

(i)            “Resolution Time” means 10:00 a.m., New York
time, on the Local Business Day following the date on which the notice of the
dispute is given under Paragraph 5.

 

(ii)           Value. 
For the purpose of Paragraphs 5(i)(C) and 5(ii), on any date, the
Value of Posted Credit Support will be calculated as follows:

 

(A)          with respect to any Cash; the amount thereof; and

 

(B)           with respect to any Eligible Collateral other
than Cash; the fair market value of such Eligible Collateral on such date, as
determined in any reasonable manner chosen by the Valuation Agent, multiplied
by the applicable Valuation Percentage.

 

(iii)          Alternative. 
The provisions of Paragraph 5 will apply; provided
that if the difference (the “Difference”) between (i) the Delivery Amount,
Return Amount, or Value of any Eligible Credit Support or Posted Credit Support
(as the case maybe) calculated by the Valuation Agent and (ii) Delivery
Amount, Return Amount, or Value of any Eligible Credit Support or Posted Credit
Support (as the case maybe) calculated by the Disputing Party shall be less
than $1,000,000, subject to Paragraph 4(a), the appropriate party will Transfer
the undisputed amount plus one half of the Difference to the other party not
later than close of business on the second Local Business Day following the
date that the demand is made under Paragraph 3 by way of resolution of such
dispute without further resort to the provisions of Paragraph 5.

 

(h)           Holding and Using Posted Collateral.

 

(i)            Eligibility to Hold Posted
Collateral; Custodians:

 

Party A or its Custodian will be entitled to hold
Posted Collateral pursuant to Paragraph 6(b); provided that

 

(A)          if Party A is holding Posted Collateral, its
Credit Support Provider shall at all times either have a long term debt or
deposit rating of at least “BBB-” from S&P and at least “Baa3” from Moody’s
(or their respective successors), and if Party A’s Custodian is holding Posted
Collateral, such Custodian shall at all times either have a long term debt or
deposit rating of at least “A-” from S&P and at

 

6

 

least “A3” from Moody’s (or their respective
successors) or have net capital in excess of US$***; and

 

(B)           if it is Party A that is holding Posted Collateral, Party A is not a
Defaulting Party.

 

Initially, the Custodian for Party A is:  Not Applicable.

 

Party B or its Custodian will be entitled to hold
Posted Collateral pursuant to Paragraph 6(b); provided
that

 

(A)          if Party B is holding Posted Collateral,
Party B shall at all times either have a long term debt or deposit rating of at
least “BBB-” from S&P and at least “Baa3” from Moody’s (or their respective
successors) and if Party B’s Custodian is holding Posted Collateral, such
Custodian shall at all times either have a long term debt or deposit rating of
at least “A-” from S&P and at least “A3” from Moody’s (or their respective
successors) or have net capital in excess of US$***; and

 

(B)           if it is Party B that is holding Posted Collateral, Party B is not a
Defaulting Party;

 

Initially, the Custodian for Party B is:  Not Applicable.

 

(ii)           Use of Posted Collateral. 
The provisions of Section 6(c) will
apply to both parties; provided
that in the case of Party A, its  Credit Support Provider has a long-term
unsecured, unsubordinated debt rating of at least “Baa3/BBB-” as determined by
Moody’s and S&P, respectively, and in the case of Party B, its Credit Support Provider  has a long term senior unsecured
unsubordinated debt rating of at least “Baa3/BBB-” as determined by Moody’s and
S&P, respectively.

 

(i)            Distributions and Interest
Amount.

 

(i)            Interest Rate. 
The “Interest Rate” will be the overnight ask rate in effect for such day, as set forth opposite the
caption “O/N LIBOR” under the heading “USD” on Telerate Page 3750 or any
successor page thereto on or about 11:00 a.m., New York time, on such
day and if no successor page is quoted , as agreed by the parties.

 

(ii)           Transfer of Interest Amount.   The Transfer of the Interest Amount will be
made in arrears on
the last Local Business Day of each calendar month and on any Local Business Day on which all
Posted Collateral in the form of Cash is Transferred to the Pledgor pursuant to
Paragraph 3(b).

 

7

 

(iii)                               Alternative to Interest
Amount.  The provisions of Paragraph 6(d)(ii) will
apply and for the purposes of calculating the Interest Amount the amount of
interest calculated for each day of the Interest Period shall be compounded
daily.

 

(j)                                     Additional
Representation(s).  There are no additional
representations by either party.

 

(k)                                  Other Eligible Support and
Other Posted Support.

 

(i)            “Value” means (A) with respect to a Letter of Credit, an amount
equal to the product of the Valuation Percentage thereof and any undrawn
portion of any Letter of Credit maintained by the Pledgor (or its Credit
Support Provider) for the benefit of the Secured Party; and (B) with
respect to an Acceptable Guaranty, an amount equal to the product of the
Valuation Percentage thereof and the available face amount thereof.

 

(ii)           “Transfer” means:

 

With respect to a Letter of Credit:

 

(1) For purposes of Paragraph 3(a), delivery of
the Letter of Credit by the Pledgor or issuer of the Letter of Credit to the
Secured Party at the address of the Secured Party specified in the Notices Section of
this Agreement, or delivery of an executed amendment to such Letter of Credit
in form and substance reasonably satisfactory to the Secured Party (extending
the term or increasing the amount available to the Secured Party thereunder) by
the Pledgor or the issuer of the Letter of Credit to the Secured Party at the
address of the Secured Party specified in the Notices section of this
Agreement; and

 

(2) For purposes of Paragraph 3(b), return of
an outstanding Letter of Credit by the Secured Party to the Pledgor at the
address of the Pledgor specified in the Notices Section of this Agreement,
or delivery of an executed amendment to the Letter of Credit in form and
substance reasonably satisfactory to the Pledgor (reducing the amount available
to the Secured Party thereunder) by the Secured Party or the issuer of the
Letter of Credit to the Pledgor at the Pledgor’s address specified in the
Notices section of this Agreement.  If a
Transfer is to be effected by a reduction in the amount of an outstanding
Letter of Credit previously issued for the benefit of the Secured Party, the
Secured Party shall not unreasonably withhold its consent to a commensurate
reduction in the amount of such Letter of Credit and shall take such action as
is reasonably necessary to effectuate such reduction.

 

With respect to an Acceptable Guaranty:

 

(1) For purposes of Paragraph 3(a), delivery of
the Acceptable Guaranty by the Pledgor or the Acceptable Guarantor to the
Secured Party at the address of the Secured Party specified in the Notices Section of
this Agreement, or delivery of an executed amendment to such Acceptable
Guaranty in form and substance satisfactory to the Secured Party

 

8

 

(extending the term or increasing the amount
available to the Secured Party thereunder) by the Pledgor or the Acceptable
Guarantor to the Secured Party at the address of the Secured Party specified in
the Notices section of this Agreement; and

 

(2)  For purposes of Paragraph 3(b), return of
an outstanding Acceptable Guaranty by the Secured Party to the Pledgor at the
address of the Pledgor specified in the Notices Section of this Agreement,
or delivery of an executed amendment to the Acceptable Guaranty in form and
substance satisfactory to the Pledgor (reducing the amount available to the
Secured Party thereunder) by the Secured Party or the Acceptable Guarantor to
the Pledgor at the Pledgor’s address specified in the Notices section of this
Agreement.

 

(iii)          All Letters of Credit provided
under this Annex shall be subject to the provisions set forth in Schedule I
hereto, which is incorporated herein by reference.

 

(l)            Demands and Notices.  All demands, specifications and notices under
this Annex will be made pursuant to the Notices Section of this Agreement,
save that any demand, specification or notice:

 

(i)            shall
be given to or made at the following addresses:

 

If to Party A:

 

Citigroup
Energy Inc.

	
  Attention:

  	
   

  	
  Commodities
  Operations Group

  
	
  Address:

  	
   

  	
  2800 Post
  Oak Blvd., Suite 500

  
	
   

  	
   

  	
  Houston,
  Texas 77056

  
	
  Telephone
  No.:

  	
   

  	
  (713)
  752-5439

  
	
  Facsimile
  No.

  	
   

  	
  (713)
  481-9931

  
	
   

  	
   

  	
   

  
	
  Email:  citienergymargin@citi.com

  

 

If to Party B:

 

	
  Address:

  	
   

  	
  8 Railroad Avenue

  
	
   

  	
   

  	
  Suite 8, Second Floor

  
	
   

  	
   

  	
  Essex, CT 06426

  
	
   

  	
   

  	
   

  
	
  Telephone:

  	
   

  	
  (860) 581-5010

  
	
   

  	
   

  	
   

  
	
  Facsimile:

  	
   

  	
  (860) 767-7198

  
	
   

  	
   

  	
   

  
	
  Attention:

  	
   

  	
  Tom Swank/Sidney Chang

  
					

 

9

 

or at such other address as the relevant party may
from time to time designate by giving notice (in accordance with the terms of
this paragraph) to the other party;

 

(ii)           shall (unless otherwise stated in this Annex) be deemed to be effective
at the time such notice is actually received unless such notice is received on
a day which is not a Local Business Day or after the Notification Time on any
Local Business Day in which event such notice shall be deemed to be effective
on the next succeeding Local Business Day.

 

(m)                               Address for Transfers.

 

Party A:  As
set forth above, unless Party A provides Party B with notice of a different
address.

 

Party B:  As
set forth above, unless Party B provides Party A with notice of a different
address.

 

(n)                                 Other Provisions.

 

(i)                                     Amendments to Definitions. 
Paragraph 12
of this Annex is hereby amended by adding or amending, as applicable, the
following defined terms

 

“Acceptable Guarantor” means any
guarantor that satisfies
the Credit Requirements.

 

“Acceptable Guaranty” means an
absolute and unconditional guaranty by an Acceptable Guarantor of the
obligations of Party B in favor of Party A, in form and substance
reasonably acceptable to Party A.

 

“Additional Collateral Supporting
Documentation” means ***.

 

“Credit Rating” shall mean with respect to a party (or its Credit Support Provider,
as the case may be) or entity, on any date of determination, the respective
ratings then assigned to such party’s (or its Credit Support Provider’s, as the
case may be) or entity’s unsecured, senior long-term debt or deposit
obligations (not supported by third party credit enhancement) by S&P, Moody’s
or any other specified rating agency or agencies.

 

“Credit Requirements” shall mean, with respect to any guarantor or any other Person in
any other capacity, the requirements that such Person shall (a) have a
Credit Rating of “***” or better by Standard & Poor’s and “***” or
better by Moody’s and (b) have combined capital and surplus of at least $***.

 

“Exposure” means with respect
to Party A, for any Valuation Date or other date for which Exposure is
calculated and subject to Paragraph 5 in the case of a
dispute, the sum of (1) (a) ***percent (***%) times the amount, if
any, that would be payable to Party A by Party B (expressed as a positive
number) or (b) the amount, if any, payable by Party A to Party B
(expressed as a negative number), in either case, pursuant to Section 6(e)(ii)(2)(A) of
this Agreement as if the Transaction was being terminated as of the

 

10

 

relevant Valuation Time; provided that
Market Quotation will be determined by the Valuation Agent using its
estimates at mid-market of the amounts that would be paid for a
Replacement Transaction (as that term is defined in the definition of “Market
Quotation”), and (2) without duplication, (a) in the event the
balance of the Tracking Account is negative on the applicable Valuation Date,
the absolute value of the balance of the Tracking Account, or (b) in the
event the balance of the Tracking Account is positive on the applicable
Valuation Date, negative one (-1) times such balance of the Tracking Account on
such Valuation Date.

 

“Exposure”
means with respect to Party B, for any Valuation Date or other date for which
Exposure is calculated and subject to Paragraph 5 in the
case of a dispute, the sum of (1) the amount, if any, that would be payable
to Party B by Party A (expressed as a positive number) or by Party B to
Party A (expressed as a negative number) pursuant to Section 6(e)(ii)(2)(A) of
this Agreement as if the Transaction was being terminated as of the relevant
Valuation Time; provided that Market Quotation
will be determined by the Valuation Agent using its estimates at
mid-market of the amounts that would be paid for a Replacement Transaction (as
that term is defined in the definition of “Market Quotation”), and (2) without
duplication, (a) in the event the balance of the Tracking Account is
positive on the applicable Valuation Date, the balance of the Tracking Account,
or (b) in the event the balance of the Tracking Account is negative on the
applicable Valuation Date, such negative balance of the Tracking Account on
such Valuation Date.

 

“Guaranty Default”
shall mean the occurrence of any of the following events: (i) the
Acceptable Guarantor of an Acceptable Guaranty shall fail to satisfy the Credit
Requirements; (ii) the Acceptable Guarantor of an Acceptable Guaranty
shall fail to comply with or perform its obligations under such Acceptable
Guaranty; (iii) the Acceptable Guarantor of an Acceptable Guaranty shall
disaffirm, disclaim, repudiate or reject, in whole or in part, or challenge the
validity of, such Acceptable Guaranty; (iv) an Acceptable Guaranty shall
expire or terminate, or shall fail and cease to be in full force and effect at
any time during the term of this Agreement, or fail to be renewed; (v) thirty
(30) or fewer Local Business Days remain prior to the expiration of such
Acceptable Guaranty or (vi) any event analogous to an event specified in Section ***
of this Agreement shall occur with respect to the Acceptable Guarantor of an
Acceptable Guaranty.

 

“Letter of Credit”
means an irrevocable, transferable, standby letter of credit, issued by a
Qualified Institution, in the form set forth in Exhibit A hereto and
subject to the provisions in Schedule I hereto, with such changes to the terms
in that form as the issuing bank may require and as may be acceptable to the
Secured Party in its reasonable discretion, which is delivered under the terms
of this Agreement and shall be held in accordance with the provisions of this
Annex.  Party B shall provide Party A
with no less than five (5) Local Business Days’ notice (or such shorter
applicable period, to the extent that a Letter of Credit is being provided
during a cure period to prevent an Event of

 

11

 

Default under the Agreement) of the relevant contact
information for Party B’s proposed issuing bank, including, without limitation,
the name, address of, and individual contact’s telephone number at, such bank.

 

“Letter of Credit Default”
shall mean with respect to an outstanding Letter of Credit, the occurrence of
any of the following events: (i) the issuer of such Letter of Credit shall
fail to satisfy the requirements set forth in the definition of Qualified
Institution; (ii) the issuer of the Letter of Credit shall fail to comply with
or perform its obligations under such Letter of Credit; (iii) the issuer
of such Letter of Credit shall disaffirm, disclaim, repudiate or reject, in
whole or in part, or challenge the validity of, such Letter of Credit; (iv) such
Letter of Credit shall expire or terminate, or shall fail and cease to be in
full force and effect at any time during the term of this Agreement, or fail to
be renewed; (v) 20 or fewer Local Business Days remain prior to the
expiration of such Letter of Credit or (vi) any event analogous to an
event specified in Section *** of this Agreement shall occur with respect
to the issuer of such Letter of Credit.

 

“Local Business Day”  means: (i) any day on which
commercial banks are open for business (including dealings in foreign exchange
and foreign currency deposits) in New York, and (ii) in relation to a
Transfer of Eligible Collateral, a day on which the clearance system agreed
between the parties for the delivery of Eligible Collateral is open for
acceptance and execution of settlement instructions (or in the case of a
Transfer of Cash or other Eligible Collateral for which delivery is
contemplated by other means, a day on which commercial banks are open for
business (including dealings for foreign exchange and foreign deposits) in New
York and such other places as the parties shall agree);

 

“Moody’s”  means Moody’s Investors Service, Inc.
or any successor.

 

“Qualified Institution”
means a major U.S. commercial bank or a foreign bank with a U.S. branch office
that, at the time of delivery of a Letter of Credit, satisfies the Credit
Requirements.  The parties agree that BNP
Paribas, New York Branch shall be an acceptable Qualified Institution in
respect of the Initial LC.

 

“S&P” means Standard & Poor’s
Ratings Group, a division of The McGraw-Hill Companies Inc., or any successor.

 

“Transaction” means that fixed for floating
financial swap entered into between Party A and Party B as of the date hereof,
and as set forth in the Designated Confirmation.

 

“Trade Date” means
the date that Party A and Party B enter into the Transaction.

 

(ii)                                  No Counterclaim.  A party’s rights to demand and receive the
Transfer of Eligible Collateral as provided hereunder and its rights as Secured
Party against the Posted Collateral or otherwise shall be absolute and subject
to no counterclaim, set off,

 

12

 

deduction or defense in favor of the Pledgor except
as contemplated in Sections 2 and 6 of the Agreement and Paragraph 8 of this
Annex.

 

(iii)          Actions Hereunder.  Either party may take any actions hereunder,
including liquidation rights, through its Custodian or other agent.

 

[THE REMAINDER OF THIS PAGE IS INTENTIONALLY LEFT
BLANK.]

 

13

 

IN WITNESS WHEREOF the parties have
executed this document on the respective dates specified below with effect from
the date specified on the first page of this document.

 

 

	
  CITIGROUP ENERGY INC.

  	
  NOBLE ENVIRONMENTAL POWER 2008

  HOLD CO., LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
  /s/ Victoria Sharp

  	
   

  	
  By:

  	
  /s/ Walter Howard

  
	
  Name:

  	
  Victoria Sharp

  	
  Name:

  	
  Walter Howard

  
	
  Title:

  	
  Managing Director

  Citigroup Energy Inc.

  	
  Title:

  	
  President

  
	
  Date: 

  	
  Date:

  
					

 

 

Schedule I

to Paragraph 13

of the

ISDA Credit Support Annex

 

LETTER OF CREDIT PROVISIONS

 

Other Eligible
Support provided by the Pledgor (“X”)
for the benefit of the Secured Party (“Y”) in the form of a Letter of
Credit shall be subject to the following provisions.

 

(a)           As one method of providing additional
Posted Credit Support, X may increase the amount of an outstanding Letter of
Credit or establish one or more additional Letters of Credit.

 

(b)           Upon or at any time after the
occurrence or deemed occurrence of either (i) an Early Termination Date or
(ii) or
the termination of a portion of the Designated Transaction pursuant to Part 1(j)(viii) of
the Agreement and, in each case, the failure of X to
make all payments due and owing to Y in accordance with the terms of this
Agreement, Y may, subject to the availability of such amounts for drawing, draw
on any outstanding Letter of Credit in an amount equal to such amounts owing to
it upon presentation to the bank issuing the Letter of Credit of one or more
certificates in accordance with the specific requirements of any such Letter of
Credit.  X shall remain obligated to Y
for any amounts owing to Y and remaining unpaid after the application of any
amounts so drawn by Y.

 

(c)           In all cases, the costs and expenses
(including but not limited to the reasonable costs, expenses, and attorneys’
fees of Y) of establishing, renewing, substituting, cancelling, and increasing
the amount of a Letter of Credit shall be borne by X.

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