Document:

Exhibit 10.4

 

MODIFICATION AND JOINDER AGREEMENT

 

This MODIFICATION AND JOINDER AGREEMENT (this “Agreement”), dated as of January 15, 2013, is entered into by and among ATLANTIC POWER CORPORATION, a corporation continued under the laws of the Province of British Columbia (“APC”), ATLANTIC POWER GENERATION, INC., a Delaware corporation (“APG”), ATLANTIC POWER TRANSMISSION, a Delaware corporation (“APT” and together with APG and APC, each, individually, a “Borrower” and collectively, the “Borrowers”), RIDGELINE ENERGY LLC, a Delaware limited liability company (“Ridgeline Energy”), PAH RAH HOLDING COMPANY LLC, a Delaware limited liability company (“PRHC”), RIDGELINE EASTERN ENERGY LLC, a Delaware limited liability company (“Ridgeline Eastern Energy”), RIDGELINE ENERGY SOLAR LLC, a Delaware limited liability company (“Ridgeline Solar”, and, together with Ridgeline Energy, PRHC, and Ridgeline Eastern Energy, the “New Pledgors”), LEWIS RANCH WIND PROJECT LLC, HURRICANE WIND LLC, RIDGELINE POWER SERVICES LLC,  RIDGELINE ENERGY HOLDINGS, INC., RIDGELINE ALTERNATIVE ENERGY LLC, FRONTIER SOLAR LLC, PAH RAH PROJECT COMPANY LLC, MONTICELLO HILLS WIND LLC, DRY LOTS WIND LLC, SMOKEY AVENUE WIND LLC, SAUNDERS BROS. TRANSPORTATION CORPORATION, BRUCE HILL WIND LLC, SOUTH MOUNTAIN WIND LLC, GREAT BASIN SOLAR RANCH LLC, GOSHEN WIND HOLDINGS LLC, MEADOW CREEK HOLDINGS LLC, RIDGELINE HOLDINGS JUNIOR INC., ROCKLAND WIND RIDGELINE HOLDINGS LLC, MEADOW CREEK INTERMEDIATE HOLDINGS LLC (collectively, and together with the New Pledgors, the “New Guarantors”) and each of the other Subsidiaries party hereto in favor of BANK OF MONTREAL, as administrative agent (in such capacity, and together with any successor in such capacity, the “Administrative Agent”) for the benefit of the Lenders (as defined below) and such Lenders.  Capitalized terms used in this Agreement but not otherwise defined shall have the meanings ascribed to them in the Credit Agreement (as defined below).

 

RECITALS

 

A.                                    The Borrowers are parties to the Amended and Restated Credit Agreement, dated as of November 4, 2011, by and among the Borrowers, the lenders that are signatories thereto (the “Lenders”), and the Administrative Agent (as amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”).

 

B.                                    Atlantic Ridgeline Holdings, LLC (“Atlantic Ridgeline”) has been formed as a wholly-owned Subsidiary of APT and has acquired one hundred percent (100%) of the Capital Stock of Ridgeline Energy Holdings, Inc. and its subsidiaries, including the New Pledgors and the New Guarantors.

 

C.                                    Section 6.13 of the Credit Agreement requires, and (a) each of the New Guarantors desires to join as a “Guarantor” party to the US Guaranty (as defined in the Credit Agreement), and (b) each of the New Pledgors desires to grant a security interest and pledge its interests as indicated on Exhibit A attached hereto under the Pledge Agreement and Irrevocable Proxy, dated as of November 4, 2011, given by APC, APT and certain other “Pledgors” party thereto in favor of the Administrative Agent (as amended, supplemented, or otherwise modified

 

 

from time to time, the “2011 Pledge”) and to amend the 2011 Pledge to reflect such pledge pursuant to Exhibit A attached hereto.

 

D.                                    Each of the New Pledgors and the New Guarantors  expects to derive benefits from the transactions resulting in the creation of the Obligations.  The Administrative Agent and each Lender may rely conclusively on the continuing warranty, hereby made, that each such New Pledgor and New Guarantor  continues to be benefited by the Lenders’ extension of credit accommodations to the Borrowers.  Neither the Administrative Agent nor any Lender shall have any duty to inquire into or confirm the receipt of any such benefits, and this Agreement, the Guaranty, and the 2011 Pledge shall be effective and enforceable by the Administrative Agent for the benefit of the Lenders without regard to the receipt, nature, or value of any such benefits.

 

AGREEMENT

 

NOW THEREFORE, for and in consideration of the mutual covenants, conditions, stipulations, and agreements set forth herein and in the Credit Agreement and the other Loan Documents, and other valuable consideration, the receipt of which is hereby acknowledged, the undersigned hereby consents and agrees as follows:

 

Section 1.                               By this Agreement, each New Guarantor becomes a Guarantor for all purposes under the Credit Agreement and the US Guaranty.

 

Section 2.                               Each New Guarantor hereby agrees that, upon its execution hereof, it will become a Guarantor under the US Guaranty with respect to all Obligations (as defined in the Credit Agreement), and will be bound by all terms, conditions and duties applicable to a Guarantor under the US Guaranty and the other Loan Documents.  Without limitation of the foregoing, and in furtherance thereof, each New Guarantor unconditionally and irrevocably, guarantees the due and punctual payment and performance of all Obligations (on the same basis as the other Guarantors under the US Guaranty).  Each of the Borrowers and other Subsidiaries of the Borrowers party hereto represents and warrants that Exhibit B attached hereto sets for each of the Guarantors party to the US Guaranty immediately upon giving effect to this Agreement, and each such Person party to the US Guaranty hereby reaffirms its respective obligations under the US Guaranty.

 

Section 3.                               Each New Pledgor hereby consents and agrees that all of its Equity Interests as set forth on Attachments 1 and 2 to the 2011 Pledge, as modified and supplemented by this Agreement, constitute Collateral. Each New Pledgor and each other Subsidiary party hereto and party to a Pledge Agreement hereby reaffirms, regrants and repledges its grant of a pledge in all of its “Collateral” (as defined in such Pledge Agreement, in each case, as modified by the Agreement) under each such Pledge Agreement to which it is a party.

 

Section 4.                               Each New Guarantor hereby makes and undertakes, as the case may be, each covenant, representation and warranty made by, and as a Guarantor pursuant to the US Guaranty, in each case as of the date hereof (except to the extent any such representation or warranty relates solely to an earlier date in which case such representation and warranty shall be true and correct as of such earlier date), and agrees to be bound by all covenants, agreements and

 

2

 

obligations of a Guarantor pursuant to the US Guaranty and all other Loan Documents to which it is or becomes a party.

 

Section 5.                               This Agreement shall be binding upon the parties hereto and their respective successors and assigns and shall inure to the benefit of and be enforceable by each of the parties hereto and its successors and assigns, provided, however, that none of the New Pledgors, the New Guarantors nor any of the other Loan Parties party hereto may assign any of its rights, obligations or interest hereunder or under any other Loan Document to which it is a party without the prior written consent of the Lenders or as otherwise permitted by the Loan Documents.  THIS AGREEMENT SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH AND GOVERNED BY THE LAW OF THE STATE OF NEW YORK  WITHOUT GIVING EFFECT TO CONFLICT OF LAW PROVISIONS THEREOF.  This Agreement may be executed in any number of counterparts, each of which shall be an original, but all of which shall constitute one instrument.  In the event that any provision of this Agreement shall prove to be invalid or unenforceable, such provision shall be deemed to be severable from the other provisions of this Agreement, which shall remain binding on all parties hereto.

 

Section 6.                               From and after the execution and delivery hereof by the parties hereto, this Agreement shall constitute a “Loan Document” for all purposes of the Credit Agreement and the other Loan Documents.

 

Section 7.                               Each of the Administrative Agent, the Borrowers, the New Guarantors, the New Pledgors and the other Subsidiaries party hereto hereby agree that Attachments 1 and 2 of the 2011 Pledge are hereby supplemented as set forth on Exhibit A attached hereto.  After giving effect to the supplement, pledge and the joinder set forth in this Agreement, each of the schedules and exhibits to the respective Pledge Agreements is true, correct, and complete as of the date hereof.

 

Section 8.                               Waiver of Jury Trial.  EACH OF THE PARTIES HERETO IRREVOCABLY WAIVES ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THIS AGREEMENT.

 

Section 9.                               Counterparts.  This Agreement may be executed in any number of counterparts, all of which taken together shall constitute one and the same instrument.

 

Section 10.                        Acknowledgements.  Each of the New Guarantors and the New Pledgors hereby acknowledges that (a) it has been advised by counsel in the negotiation, execution, and delivery of this Agreement, and (b) it shall rely entirely upon its own judgment with respect to its business, and any review, inspection, or supervision of, or information supplied to, it by the Administrative Agent or any Lender is for the protection of the Administrative Agent and the Lenders and neither the New Guarantors, the New Pledgors nor any third party is entitled to rely thereon.

 

[Remainder of page intentionally left blank]

 

3

 

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed as of the date first above written.

 

	
 
    	
 
    	
 
    
	
 
    	
ATLANTIC   AUBURNDALE, LLC
    
	
 
    	
ATLANTIC   IDAHO WIND C, LLC
    
	
 
    	
ATLANTIC   IDAHO WIND HOLDINGS, LLC
    
	
 
    	
ATLANTIC   OKLAHOMA WIND, LLC
    
	
 
    	
ATLANTIC   POWER CORPORATION
    
	
 
    	
ATLANTIC   POWER GENERATION, INC.
    
	
 
    	
ATLANTIC   POWER GP INC.
    
	
 
    	
ATLANTIC   POWER HOLDINGS, INC.
    
	
 
    	
ATLANTIC   POWER SERVICES CANADA GP INC.
    
	
 
    	
ATLANTIC   POWER SERVICES CANADA LP
    
	
 
    	
By:   Atlantic Power Services Canada GP Inc., its General Partner
    
	
 
    	
ATLANTIC   POWER TRANSMISSION, INC.
    
	
 
    	
ATLANTIC   RENEWABLES HOLDINGS, LLC
    
	
 
    	
ATLANTIC   ROCKLAND HOLDINGS, LLC
    
	
 
    	
ATLANTIC   RIDGELINE HOLDINGS, LLC
    
	
 
    	
AUBURNDALE   LP, LLC
    
	
 
    	
By:   Atlantic Auburndale, LLC, its Sole Member
    
	
 
    	
BAKER   LAKE HYDRO LLC
    
	
 
    	
DADE   INVESTMENT, L.P.
    
	
 
    	
By:   NCP Dade Power LLC, its General Partner
    
	
 
    	
HARBOR   CAPITAL HOLDINGS, LLC
    
	
 
    	
By:   Atlantic Power Holdings, Inc., its Sole Member
    
	
 
    	
LAKE   INVESTMENT, L.P.
    
	
 
    	
By:   NCP Lake Power LLC, its General Partner
    
	
 
    	
By: Teton East Coast Generation LLC, its Sole   Member
    
	
 
    	
NCP   DADE POWER LLC
    
	
 
    	
NCP   GEM LLC
    
	
 
    	
By:   Teton East Coast Generation LLC, its Sole Member
    
	
 
    	
NCP   LAKE POWER LLC
    
	
 
    	
By:   Teton East Coast Generation LLC, its Sole Member
    
	
 
    	
NCP PASCO LLC
    
	
 
    	
OLYMPIA HYDRO LLC
    
	
 
    	
TETON   EAST COAST GENERATION LLC
    
	
 
    	
TETON   NEW LAKE, LLC
    
	
 
    	
TETON   POWER FUNDING, LLC
    
	
 
    	
PAH   RAH HOLDING COMPANY LLC
    
	
 
    	
RIDGELINE   EASTERN ENERGY LLC
    
	
 
    	
RIDGELINE   ENERGY SOLAR LLC
    
	
 
    	
RIDGELINE   ENERGY HOLDINGS, INC.
    
	
 
    	
RIDGELINE   ENERGY LLC
    
	
 
    	
LEWIS   RANCH WIND PROJECT LLC
    
	
 
    	
HURRICANE   WIND LLC
    
	
 
    	
RIDGELINE   POWER SERVICES LLC
    
	
 
    	
RIDGELINE   ALTERNATIVE ENERGY LLC
    
	
 
    	
FRONTIER   SOLAR LLC
    
	
 
    	
PAH RAH   PROJECT COMPANY LLC
    
	
 
    	
MONTICELLO   HILLS WIND LLC
    

 

Signature Page to Modification and Joinder Agreement (Ridgeline Acquisition - 2013)

 

 

	
 
    	
DRY   LOTS WIND LLC
    
	
 
    	
SMOKEY   AVENUE WIND LLC
    
	
 
    	
SAUNDERS   BROS. TRANSPORTATION CORPORATION
    
	
 
    	
BRUCE   HILL WIND LLC
    
	
 
    	
SOUTH   MOUNTAIN WIND LLC
    
	
 
    	
GREAT   BASIN SOLAR RANCH LLC
    
	
 
    	
GOSHEN   WIND HOLDINGS LLC
    
	
 
    	
MEADOW   CREEK HOLDINGS LLC
    
	
 
    	
RIDGELINE   HOLDINGS JUNIOR INC.
    
	
 
    	
ROCKLAND   WIND RIDGELINE HOLDINGS LLC
    
	
 
    	
MEADOW   CREEK INTERMEDIATE HOLDINGS LLC
    
	
 
    	
 
    
	
 
    	
By:
    	
/s/   Barry E. Welch
    
	
 
    	
Name:
    	
Barry   E. Welch
    
	
 
    	
Title:
    	
Authorized   officer of each entity identified above
    

 

Signature Page to Modification and Joinder Agreement (Ridgeline Acquisition - 2013)

 

 

	
Acknowledged   and accepted:
    	
 
    
	
 
    	
 
    
	
BANK   OF MONTREAL
    	
 
    
	
as   Administrative Agent
    	
 
    
	
 
    	
 
    
	
By:
    	
/s/   Jeff Currie
    	
 
    
	
 
    	
Jeff Currie
    	
 
    
	
 
    	
Vice President
    	
 
    

 

Signature Page to Modification and Joinder Agreement (Ridgeline Acquisition - 2013)

 

 

EXHIBIT A TO
 JOINDER AGREEMENT

 

ATTACHMENT 1
 to
 Pledge Agreement

 

Item A.  Pledged Interests

 

	
 
    	
 
    	
Pledgor
    	
 
    	
Pledged Interest Issuer
    	
 
    	
Type of Interest
   Pledged
    	
 
    	
Percent of
   Pledged Interest
   Issuer that is
   owned and being
   pledged by
   Pledgor
    	
 
    	
Represented by
   Certificate No.
   (if applicable)
    
	
1.
    	
 
    	
Atlantic Idaho Wind C, LLC
    	
 
    	
RP Wind ID, LLC
    	
 
    	
Membership   Interests
    	
 
    	
99%
    	
 
    	
Uncertificated
    
	
2.
    	
 
    	
Atlantic Idaho Wind Holdings, LLC
    	
 
    	
Atlantic Idaho Wind A, LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
3.
    	
 
    	
Atlantic Idaho Wind Holdings, LLC
    	
 
    	
Atlantic Idaho Wind C, LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
4.
    	
 
    	
Atlantic Oklahoma Wind, LLC
    	
 
    	
Canadian Hills Holding Company, LLC
    	
 
    	
Membership   Interests
    	
 
    	
99%
    	
 
    	
Uncertificated
    
	
5.
    	
 
    	
Atlantic   Power Corporation
    	
 
    	
Atlantic Power Services Canada GP Inc.
    	
 
    	
Common   Shares
    	
 
    	
100%
    	
 
    	
2
    
	
6.
    	
 
    	
Atlantic   Power Corporation
    	
 
    	
Atlantic Power Services Canada LP
    	
 
    	
Limited   Partnership Units
    	
 
    	
100%
    	
 
    	
LP-1
    
	
7.
    	
 
    	
Atlantic   Power Corporation
    	
 
    	
Atlantic Power Transmission, Inc.
    	
 
    	
Preferred   Shares
    	
 
    	
100%
    	
 
    	
1-A
    
	
8.
    	
 
    	
Atlantic   Power Corporation
    	
 
    	
Atlantic Power Transmission, Inc.
    	
 
    	
Common   Shares
    	
 
    	
100%
    	
 
    	
1
    
	
9.
    	
 
    	
Atlantic   Power Corporation
    	
 
    	
Atlantic Power Limited Partnership
    	
 
    	
Limited   Partnership 
    	
 
    	
99.9961%
    	
 
    	
LP-2
    

 

 

	
 
    	
 
    	
Pledgor
    	
 
    	
Pledged Interest Issuer
    	
 
    	
Type of Interest
   Pledged
    	
 
    	
Percent of
   Pledged Interest
   Issuer that is
   owned and being
   pledged by
   Pledgor
    	
 
    	
Represented by
   Certificate No.
   (if applicable)
    
	
 
    	
 
    	
 
    	
 
    	
 
    	
 
    	
Units
    	
 
    	
 
    	
 
    	
 
    
	
10.
    	
 
    	
Atlantic   Power Corporation
    	
 
    	
Atlantic Power GP Inc.
    	
 
    	
Common   Shares
    	
 
    	
100%
    	
 
    	
2C
    
	
11.
    	
 
    	
Atlantic Power GP Inc.
    	
 
    	
Atlantic Power Limited Partnership
    	
 
    	
Limited   Partnership Units
    	
 
    	
0.0039%
    	
 
    	
LP-3
    
	
12.
    	
 
    	
Atlantic Power Generation, Inc.
    	
 
    	
Canadian Hills Wind, LLC
    	
 
    	
Class B   Membership Interests
    	
 
    	
16.39%
    	
 
    	
B-2
    
	
13.
    	
 
    	
Atlantic Power Holdings, Inc.
    	
 
    	
Atlantic Power Services, LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
14.
    	
 
    	
Atlantic Power Holdings, Inc.
    	
 
    	
Harbor Capital Holdings, LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
15.
    	
 
    	
Atlantic Power Services Canada GP Inc.
    	
 
    	
Atlantic Power Services Canada LP
    	
 
    	
General   Partnership Units
    	
 
    	
100%
    	
 
    	
GP-1
    
	
16.
    	
 
    	
Atlantic Power Transmission, Inc.
    	
 
    	
Atlantic Cadillac Holdings, LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
17.
    	
 
    	
Atlantic Power Transmission, Inc.
    	
 
    	
Atlantic Idaho Wind Holdings, LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
18.
    	
 
    	
Atlantic Power Transmission, Inc.
    	
 
    	
Atlantic Piedmont Holdings, LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
19.
    	
 
    	
Atlantic Power Transmission, Inc.
    	
 
    	
Atlantic Oklahoma Wind, LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
20.
    	
 
    	
Atlantic Power Transmission, Inc.
    	
 
    	
Atlantic Rockland Holdings, LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
21.
    	
 
    	
Atlantic Power Transmission, Inc.
    	
 
    	
Atlantic Ridgeline Holdings, LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
22.
    	
 
    	
Atlantic Renewables Holdings, LLC
    	
 
    	
AP   Onondaga, LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    

 

A-2

 

	
 
    	
 
    	
Pledgor
    	
 
    	
Pledged Interest Issuer
    	
 
    	
Type of Interest
   Pledged
    	
 
    	
Percent of
   Pledged Interest
   Issuer that is
   owned and being
   pledged by
   Pledgor
    	
 
    	
Represented by
   Certificate No.
   (if applicable)
    
	
23.
    	
 
    	
Baker Lake Hydro LLC
    	
 
    	
Concrete Hydro   Partners, L.P.
    	
 
    	
Limited Partnership Interests
    	
 
    	
99%
    	
 
    	
Uncertificated
    
	
24.
    	
 
    	
Harbor Capital Holdings, LLC
    	
 
    	
Atlantic Renewables Holdings, LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
25.
    	
 
    	
Olympia Hydro LLC
    	
 
    	
Concrete Hydro   Partners, L.P.
    	
 
    	
General Partnership Interests
    	
 
    	
0.5%
    	
 
    	
Uncertificated
    
	
26.
    	
 
    	
Pah Rah Holding Company LLC
    	
 
    	
Pah Rah Project Company LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
27.
    	
 
    	
Ridgeline Eastern Energy LLC
    	
 
    	
Monticello Hills Wind LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
28.
    	
 
    	
Ridgeline Eastern Energy LLC
    	
 
    	
Dry Lots Wind LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
29.
    	
 
    	
Ridgeline Eastern Energy LLC
    	
 
    	
Smokey   Avenue Wind LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
30.
    	
 
    	
Ridgeline Eastern Energy LLC
    	
 
    	
Saunders Bros. Transportation Corporation
    	
 
    	
Common   Stock
    	
 
    	
100%
    	
 
    	
No. 1
    
	
31.
    	
 
    	
Ridgeline Eastern Energy LLC
    	
 
    	
Bruce Hill Wind LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
32.
    	
 
    	
Ridgeline Eastern Energy LLC
    	
 
    	
South Mountain Wind LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
33.
    	
 
    	
Ridgeline Energy LLC
    	
 
    	
Pah Rah Holding Company LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
34.
    	
 
    	
Ridgeline Energy LLC
    	
 
    	
Lewis Ranch Wind Project LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
35.
    	
 
    	
Ridgeline Energy LLC
    	
 
    	
Hurricane Wind LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
36.
    	
 
    	
Ridgeline Energy LLC
    	
 
    	
Ridgeline Power Services LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    

 

A-3

 

	
 
    	
 
    	
Pledgor
    	
 
    	
Pledged Interest Issuer
    	
 
    	
Type of Interest
   Pledged
    	
 
    	
Percent of
   Pledged Interest
   Issuer that is
   owned and being
   pledged by
   Pledgor
    	
 
    	
Represented by
   Certificate No.
   (if applicable)
    
	
37.
    	
 
    	
Ridgeline Energy LLC
    	
 
    	
Ridgeline Eastern Energy LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
38.
    	
 
    	
Ridgeline Energy LLC
    	
 
    	
Frontier Solar LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
39.
    	
 
    	
Ridgeline Energy LLC
    	
 
    	
Ridgeline Energy Solar LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
40.
    	
 
    	
Ridgeline Energy Solar LLC
    	
 
    	
Great Basin Solar Ranch LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
41.
    	
 
    	
Teton Power Funding, LLC
    	
 
    	
Olympia Hydro LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
42.
    	
 
    	
Teton Power Funding, LLC
    	
 
    	
Teton East Coast Generation LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
43.
    	
 
    	
Teton Power Funding, LLC
    	
 
    	
Teton   Operating Services, LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
44.
    	
 
    	
Teton Power Funding, LLC
    	
 
    	
Baker   Lake Hydro LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
45.
    	
 
    	
Teton Power Funding, LLC
    	
 
    	
Orlando   Power Generation I LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    
	
46.
    	
 
    	
Teton Power Funding, LLC
    	
 
    	
Orlando   Power Generation II LLC
    	
 
    	
Membership   Interests
    	
 
    	
100%
    	
 
    	
Uncertificated
    

 

Item B.  Pledged Notes

 

None.

 

A-4

 

 

ATTACHMENT 2
 to
 Pledge Agreement

 

	
PLEDGOR:
    	
 
    	
ATLANTIC IDAHO WIND C, LLC
    
	
STATE   OF FORMATION:
    	
 
    	
Delaware
    
	
STATE   IDENTIFICATION NUMBER:
    	
 
    	
4840790
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    
	
 
    	
 
    	
 
    
	
PLEDGOR:
    	
 
    	
ATLANTIC IDAHO WIND HOLDINGS, LLC
    
	
STATE   OF FORMATION:
    	
 
    	
Delaware
    
	
STATE   IDENTIFICATION NUMBER:
    	
 
    	
4840757
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    
	
 
    	
 
    	
 
    
	
PLEDGOR:
    	
 
    	
ATLANTIC OKLAHOMA WIND, LLC
    
	
STATE   OF FORMATION:
    	
 
    	
Delaware
    
	
STATE   IDENTIFICATION NUMBER:
    	
 
    	
5102253
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    
	
 
    	
 
    	
 
    
	
PLEDGOR:
    	
 
    	
ATLANTIC POWER CORPORATION
    
	
PROVINCE   OF INCORPORATION:
    	
 
    	
British   Columbia
    
	
IDENTIFICATION   NUMBER:
    	
 
    	
CO729547
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    

 

A-5

 

	
PLEDGOR:
    	
 
    	
ATLANTIC POWER GP INC.
    
	
PROVINCE   OF INCORPORATION:
    	
 
    	
British   Columbia
    
	
IDENTIFICATION   NUMBER:
    	
 
    	
C0924851
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    
	
 
    	
 
    	
 
    
	
PLEDGOR:
    	
 
    	
ATLANTIC POWER GENERATION, INC.
    
	
STATE   OF FORMATION:
    	
 
    	
Delaware
    
	
STATE   IDENTIFICATION NUMBER:
    	
 
    	
4756289
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    
	
 
    	
 
    	
 
    
	
PLEDGOR:
    	
 
    	
ATLANTIC POWER HOLDINGS, INC.
    
	
STATE   OF INCORPORATION:
    	
 
    	
Delaware
    
	
STATE   IDENTIFICATION NUMBER:
    	
 
    	
3844647
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    
	
 
    	
 
    	
 
    
	
PLEDGOR:
    	
 
    	
ATLANTIC POWER SERVICES CANADA GP INC.
    
	
PROVINCE   OF INCORPORATION:
    	
 
    	
British   Columbia
    
	
STATE   IDENTIFICATION NUMBER:
    	
 
    	
BC0916552
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    

 

A-6

 

	
PLEDGOR:
    	
 
    	
ATLANTIC POWER TRANSMISSION, INC.
    
	
STATE   OF INCORPORATION:
    	
 
    	
Delaware
    
	
STATE   IDENTIFICATION NUMBER:
    	
 
    	
4756295
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    
	
 
    	
 
    	
 
    
	
PLEDGOR:
    	
 
    	
ATLANTIC RENEWABLES HOLDINGS, LLC
    
	
STATE   OF FORMATION:
    	
 
    	
Delaware
    
	
STATE   IDENTIFICATION NUMBER:
    	
 
    	
4670242
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    
	
 
    	
 
    	
 
    
	
PLEDGOR:
    	
 
    	
BAKER LAKE HYDRO, LLC
    
	
STATE   OF FORMATION:
    	
 
    	
Delaware
    
	
STATE   IDENTIFICATION NUMBER:
    	
 
    	
2214188
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
20   West 9th Street Kansas City, MO 64105
    
	
 
    	
 
    	
 
    
	
PLEDGOR:
    	
 
    	
HARBOR CAPITAL HOLDINGS, LLC
    
	
STATE   OF FORMATION:
    	
 
    	
Delaware
    
	
STATE   IDENTIFICATION NUMBER:
    	
 
    	
4000335
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    

 

A-7

 

	
PLEDGOR:
    	
 
    	
OLYMPIA HYDRO, LLC
    
	
STATE   OF FORMATION:
    	
 
    	
Delaware
    
	
STATE   IDENTIFICATION NUMBER:
    	
 
    	
2214190
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    
	
 
    	
 
    	
 
    
	
PLEDGOR:
    	
 
    	
PAH RAH HOLDING COMPANY LLC
    
	
STATE   OF FORMATION:
    	
 
    	
Delaware
    
	
STATE   IDENTIFICATION NUMBER:
    	
 
    	
4803010
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    
	
 
    	
 
    	
 
    
	
PLEDGOR:
    	
 
    	
RIDGELINE EASTERN ENERGY LLC
    
	
STATE   OF FORMATION:
    	
 
    	
Delaware
    
	
STATE   IDENTIFICATION NUMBER:
    	
 
    	
4848046
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    
	
 
    	
 
    	
 
    
	
PLEDGOR:
    	
 
    	
RIDGELINE ENERGY SOLAR LLC
    
	
STATE   OF FORMATION:
    	
 
    	
Delaware
    
	
STATE   IDENTIFICATION NUMBER:
    	
 
    	
5080169
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    
	
 
    	
 
    	
 
    
	
PLEDGOR:
    	
 
    	
RIDGELINE ENERGY LLC
    
	
STATE   OF FORMATION:
    	
 
    	
Delaware
    
	
STATE   IDENTIFICATION NUMBER:
    	
 
    	
4602137
    

 

A-8

 

	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    
	
 
    	
 
    	
 
    
	
PLEDGOR:
    	
 
    	
TETON EAST COAST GENERATION, LLC
    
	
STATE   OF FORMATION:
    	
 
    	
Delaware
    
	
STATE   IDENTIFICATION NUMBER:
    	
 
    	
2219848
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    
	
 
    	
 
    	
 
    
	
PLEDGOR:
    	
 
    	
TETON POWER FUNDING, LLC
    
	
STATE   OF FORMATION:
    	
 
    	
Delaware
    
	
STATE   IDENTIFICATION NUMBER:
    	
 
    	
3721785
    
	
CHIEF   EXECUTIVE OFFICE:
    	
 
    	
One   Federal Street, 30th Floor
   Boston, MA 02110
    

 

A-9

 

EXHIBIT B TO
 JOINDER AGREEMENT

 

Guarantors*

 

	
 
    	
1.
    	
 
    	
Atlantic   Power Limited Partnership **
    
	
 
    	
2.
    	
 
    	
Atlantic   Power GP Inc. **
    
	
 
    	
3.
    	
 
    	
Atlantic   Power (US) GP **
    
	
 
    	
4.
    	
 
    	
Atlantic   Oklahoma Wind LLC
    
	
 
    	
5.
    	
 
    	
Atlantic   Power Corporation
    
	
 
    	
6.
    	
 
    	
Atlantic   Power Generation, Inc.
    
	
 
    	
7.
    	
 
    	
Atlantic   Power Transmission, Inc.
    
	
 
    	
8.
    	
 
    	
Atlantic   Power Holdings, Inc.
    
	
 
    	
9.
    	
 
    	
Atlantic   Power Services Canada GP Inc.
    
	
 
    	
10.
    	
 
    	
Atlantic   Power Services Canada LP
    
	
 
    	
11.
    	
 
    	
Atlantic   Power Services, LLC
    
	
 
    	
12.
    	
 
    	
Atlantic   Rockland Holdings, LLC
    
	
 
    	
13.
    	
 
    	
Teton   Power Funding, LLC
    
	
 
    	
14.
    	
 
    	
Harbor   Capital Holdings, LLC
    
	
 
    	
15.
    	
 
    	
Epsilon   Power Funding, LLC
    
	
 
    	
16.
    	
 
    	
Atlantic   Auburndale, LLC *
    
	
 
    	
17.
    	
 
    	
Auburndale   LP, LLC *
    
	
 
    	
18.
    	
 
    	
Auburndale   GP, LLC *
    
	
 
    	
19.
    	
 
    	
Atlantic   Cadillac Holdings, LLC
    
	
 
    	
20.
    	
 
    	
Atlantic   Idaho Wind Holdings, LLC
    
	
 
    	
21.
    	
 
    	
Atlantic   Idaho Wind C, LLC
    
	
 
    	
22.
    	
 
    	
Baker   Lake Hydro, LLC
    
	
 
    	
23.
    	
 
    	
Olympia   Hydro, LLC
    
	
 
    	
24.
    	
 
    	
Teton   East Coast Generation, LLC
    
	
 
    	
25.
    	
 
    	
NCP   Gem, LLC *
    
	
 
    	
26.
    	
 
    	
NCP   Lake Power, LLC *
    
	
 
    	
27.
    	
 
    	
Lake   Investment, LP *
    
	
 
    	
28.
    	
 
    	
Teton   New Lake, LLC *
    
	
 
    	
29.
    	
 
    	
Lake   Cogen Ltd. *
    
	
 
    	
30.
    	
 
    	
Atlantic   Renewables Holdings, LLC
    
	
 
    	
31.
    	
 
    	
Orlando   Power Generation I, LLC
    
	
 
    	
32.
    	
 
    	
Orlando   Power Generation II, LLC
    
	
 
    	
33.
    	
 
    	
NCP   Dade Power, LLC *
    
	
 
    	
34.
    	
 
    	
NCP   Pasco LLC *
    
	
 
    	
35.
    	
 
    	
Dade   Investment, LP *
    
	
 
    	
36.
    	
 
    	
Pasco   Cogen, Ltd. *
    
	
 
    	
37.
    	
 
    	
Atlantic   Piedmont Holdings LLC
    
	
 
    	
38.
    	
 
    	
Teton   Selkirk, LLC
    
	
 
    	
39.
    	
 
    	
Teton   Operating Services, LLC
    
	
 
    	
40.
    	
 
    	
Atlantic   Ridgeline Holdings, LLC
    
	
 
    	
41.
    	
 
    	
Ridgeline   Energy Holdings, Inc.
    

 

 

	
 
    	
42.
    	
 
    	
Ridgeline   Energy LLC
    
	
 
    	
43.
    	
 
    	
Pah   Rah Holding Company LLC
    
	
 
    	
44.
    	
 
    	
Lewis   Ranch Wind Project LLC
    
	
 
    	
45.
    	
 
    	
Hurricane   Wind LLC
    
	
 
    	
46.
    	
 
    	
Ridgeline   Power Services LLC
    
	
 
    	
47.
    	
 
    	
Ridgeline   Eastern Energy LLC
    
	
 
    	
48.
    	
 
    	
Ridgeline   Alternative Energy LLC
    
	
 
    	
49.
    	
 
    	
Frontier   Solar LLC
    
	
 
    	
50.
    	
 
    	
Ridgeline   Energy Solar LLC
    
	
 
    	
51.
    	
 
    	
Pah   Rah Project Company LLC
    
	
 
    	
52.
    	
 
    	
Monticello   Hills Wind LLC
    
	
 
    	
53.
    	
 
    	
Dry   Lots Wind LLC
    
	
 
    	
54.
    	
 
    	
Smokey   Avenue Wind LLC
    
	
 
    	
55.
    	
 
    	
Saunders   Bros. Transportation Corporation
    
	
 
    	
56.
    	
 
    	
Bruce   Hill Wind LLC
    
	
 
    	
57.
    	
 
    	
South   Mountain Wind LLC
    
	
 
    	
58.
    	
 
    	
Great   Basin Solar Ranch LLC
    
	
 
    	
59.
    	
 
    	
Goshen   Wind Holdings LLC
    
	
 
    	
60.
    	
 
    	
Meadow   Creek Holdings LLC
    
	
 
    	
61.
    	
 
    	
Ridgeline   Holdings Junior Inc.
    
	
 
    	
62.
    	
 
    	
Rockland   Wind Ridgeline Holdings LLC
    
	
 
    	
63.
    	
 
    	
Meadow   Creek Intermediate Holdings LLC
    

 

* Includes Florida Project Guarantors whose release will occur on closing of pending Florida Project Sale

** Changes in name from prior version of Schedule

 

B-2Exhibit 10.2(4)

 

TRANSLATION FOR REFERENCE ONLY

 

Dispatch of the Secretary for Transport and Public Works n. 62/2012

 

Using the powers granted by article 64 of the Basic Law of the Special administrative Region of Macau and pursuant to articles 29.1.c), 49 and the subsequent articles and 57.1.a) all from Law 6/80/M, of July 5, the Secretary for Transport and Public Works orders:

 

1.              It is granted by lease, without public tender, as per the terms and conditions set on the contract annex hereto, that is an integral part to this dispatch, the plot of land with the area of 71 833 m2, located on the reclaimed land between the islands of Taipa and Coloane, designated as COTAI, adjacent to Avenida da Nave Desportiva, to be used to build a complex comprising one five star hotel (including gaming areas), parking and free area.

 

2.              This dispatch is effective immediately.

 

17 December 2012

 

The Secretary for Transport and Public Works, Lau Si Lo

 

 

Annex

 

(File n. 6 488.01 from the Land, Public Works and Transport Bureau and file n. 44/2012 from the Land Committee)

 

CONTRACT ENTERED INTO BY AND BETWEEN:

 

The Special Administrative Region of Macau (first party)

 

AND

 

MGM Grand Paradise Ltd. (second party)

 

 

Whereas:

 

1.              On August 6, 2007, the company designated as “MGM Grand Paradise Limited”, with registered office in Macau, Avenida Dr. Sun Yat Sen, n. 1101, MGM Macau  building, registered on the Commercial and Moveable Assets Registry under n. 18 972, holder of a sub-concession for the operation of games of fortune or chance or other games in casino on the Macau Special Administrative Region (MSAR), applied for the concession through lease, without public tender, of a plot of land with an area of 71 833 m2, located in COTAI, adjacent to Avenida da Nave Desportiva, to be used to build a complex comprising one five star hotel, including gaming areas, parking and free area.

 

2.              At the time part of that land was not available because it was used by the Infrastructure Development Office (GDI) as a construction site and storage for construction materials.

 

3.              On March 30 and June 15 2010, the said applicant restated its interest to expand operations and therefore renewed the application for the above-mentioned land concession, attaching to it the economic and financial feasibility study and other documents required to advance the procedure.

 

4.              The study was submitted to the opinion of competent departments within the Land, Public Works and Transport Bureau (DSSOPT) and GDI, the Macau Government Tourist Office, the Gaming Inspection and Coordination Bureau, the Civil Aviation Authority, the Transport Bureau, the Fire Services Bureau and the Land Development Group, with an overall favourable opinion.

 

5.              Taking into account the opinions produced, DSSOPT decided that the application had the necessary conditions for its approval, as it is viewed as a project of interest for the development of MSAR, due to the value of its investment, the significant employment it will generate, both on construction and hotel operation phases, as well as indirect employment opportunities it will create within the activities linked to tourism and finally because of the financial feasibility of the project and the companies proven capacity on similar ventures.

 

6.              The land with the area of 71 833 m2, is logged in the map n. 6 512/2006, issued by the Cartography and Cadastre Bureau (DSCC), on June 23, 2011 and has no registry on the Real Estate Registry (CRP).

 

7.              As per the street alignment map n. 2008A037, issued by DSSOPT, on June 2, 2011, the applicant must reserve an area, within the building, for a passage way comprising a flyover area and install all necessary auxiliary equipment and such area shall be subject to public easement.

 

8.              The DSSOPT calculated the costs inherent to the land concession and drafted the contract that was expressly accepted by the applicant in a written declaration submitted on June 22, 2012.

 

9.              The procedure advanced as per standard terms and the file was sent to the Land Committee, which on July 26, 2012 issued a favourable opinion for approval of the application that was confirmed by dispatch of the Chief Executive on October 5, 2012.

 

10.       As per article 125 of Law 6/80/M, of July 5, the conditions of the contract annex to this dispatch were notified to the applicant and expressly accepted on a written declaration issued on October 18, 2012, signed by Ho, Pansy Catilina Chiu King, with professional address in Macau,  on Avenida Dr. Sun Yat Sen, n. 1101, MGM Macau building, in the quality of managing-director and on behalf of the company “MGM Grand Paradise Limited”, quality and powers confirmed by the  private notary Carlos Duque Simões.

 

11.       The concessionaire paid the premium instalment established on clause nine, subparagraph 1), of the contract annex to this dispatch.

 

 

CLAUSE ONE — OBJECT OF THE CONTRACT

 

Under the present contract, the first party grants to the second party, through lease without public tender, a plot of land with the area of 71 833 m2 (seventy one thousand, eight hundred thirty three square metres), located in the COTAI reclaimed land, adjacent to the Avenida da Nave Desportiva, with the global value of $ 1 291 173 332.00 (One billion, two hundred and ninety one million, one hundred and seventy three thousand, three hundred and thirty two Patacas), logged in map no. 6512/2006, issued by DSCC, on the 23rd June 2011, which is an integral part of this contract, not registered at the Property Registry, hereinafter simply referred to as land plot.

 

CLAUSE TWO — LEASE TERM

 

1.              The lease shall be valid for a period of 25 (twenty five) years from the publication date in the Official Gazette of the Macau Special Administrative Region of the dispatch that grants this contract.

 

2.              The lease period, set in the above paragraph, may, in accordance with the applicable laws, be consecutively renewed.

 

CLAUSE THREE — DEVELOPMENT AND PURPOSE OF THE LAND PLOT

 

1.              The land plot shall be used for the construction of a complex comprising a five star hotel (including gaming areas), parking and free areas with the following gross building area:

 

	
1) 5 star hotel*
    	
287,332m2;
    

 

*including the areas of the refuge floors

 

	
2) Parking
    	
86,806m2;
    
	
3) Free Area
    	
27,359m2;
    

 

2.              The second party shall prepare the projects under the terms of clause thirty five, paragraph two, section 4) of the sub-concession contract for the operation of games of fortune or chance or other games in casino, in MSAR, entered into on 19th April 2005, and comply with all other obligations set in that clause, regarding the projects and works.

 

3.              The second party shall, in conformity with the street alignment map no. 2008A037, issued on 2nd June 2011, reserve an area within the building to be built in the land plot for the purpose of raising a pedestrian flyover and installing the respective accessory equipment.

 

4.              The area mentioned in the previous paragraph is subject to public easement, implying the following restrictions:

 

1)             Permanent occupation of the area of installation of the flyover and the respective accessory equipment;

 

2)             Obligation to allow the free access and circulation of pedestrians;

 

3)             Prohibition of executing any type of construction, permanent or temporary, that obstructs the utilization of the flyover;

 

 

4)             Obligation to, whenever necessary, consent to the access and occupation by the first party or the Civic and Municipal Affairs Bureau for the purpose of carrying out any repair or maintenance works to the flyover.

 

5.              The second party and any subsequent holders of rights arising of the concession, tenants or holders of any other type of rights of possession over the complex built in the land plot are obliged to respect and acknowledge the onus so created, and keep the respective area free.

 

6.              The second party shall comply, when preparing the projects, with the provisions and technical regulations applicable in the MSAR, namely the Foundations Regulation, approved by Decree-Law no. 47/96/M, of 26th of August, and the Regulations Governing Safety and Actions in Structures of Buildings and Bridges approved by Decree-Law no. 56/96/M, of 16th of September, as well as the specifications and homologation documents from public entities and manufacturers’ instructions or from entities that hold patents.

 

7.              Given the particular characteristics of the land plot development, the operation of gross construction areas reserved for gaming areas integrated within the gross construction area intended for the «5 star hotel» is carried out by the second party in the capacity of holder of a sub-concession for the operation of games of fortune or chance and other games in casinos in MSAR.

 

CLAUSE FOUR — DEVELOPMENT TERM

 

1.              The development of the land plot shall be concluded within 60 (sixty) months, from the publication date in the Official Gazette of the Macau Special Administrative Region of the dispatch that grants this contract.

 

2.              The abovementioned period includes the deadlines for submission by the second party and consideration by the first party, of the construction project and issuance of the relevant licences.

 

3.              Regarding the submission of the projects and commencement of the works, the second party shall comply with the following deadlines:

 

1)             90 (ninety) days, from the publication date of the dispatch mentioned in paragraph 1 of this clause, for the preparation and submission of the preliminary works project (architectural project);

 

2)             180 (one hundred and eighty) days, from the notification of the date of the approval of the preliminary works project  for preparation and submission of the works project (project for foundations, structures, water, sewage, electricity and other technical projects);

 

3)             90 (ninety) days, from the notification date of the approval of the works project, for the application for the construction license;

 

4)             15 (fifteen) days from the date the construction licence is issued for the commencement of works.

 

 

4.              For the purpose of compliance with the deadlines mentioned in the previous paragraph, the projects are only considered effectively submitted, when complete and duly accompanied by all the elements.

 

CLAUSE FIVE - PENALTIES

 

1.              Non-compliance with the deadlines set in the previous clause, regarding the development of the land plot, shall render the second party liable to a fine up to  $1 000 000.00 (one million patacas), for each  day of delay, up to 60 (sixty) days; beyond this period and up to the global maximum of 120 (one hundred and twenty) days, the second party shall be liable to the double of that amount, notwithstanding the occurrence of special reasons duly justified and accepted by the first party.

 

2.              The second party is released of the liability referred in the previous paragraph in the event of force majeure or other relevant facts that are undeniably beyond its power of control.

 

3.              Cases of force majeure are considered as those resulting exclusively of unpredictable and unavoidable events.

 

4.              For the purposes of the provision included in paragraph 2, the second party shall be obligated to communicate, in writing, to the first party, as soon as possible, the occurrence of the referred events.

 

CLAUSE SIX - RENT

 

1.              During the period of development of the land plot, the second party shall pay an annual rent of $30.00 (thirty patacas) per square metre of the land plot, in the global amount of $ 2 154 990.00 (two million, one hundred and fifty four thousand, nine hundred and ninety patacas).

 

2.              After the conclusion of the development of the land plot, the second party shall pay an annual rent of $5 451 630.00 (five million, four hundred and fifty one thousand, six hundred and thirty patacas), as a result of the aggregate of the following amounts:

 

1) 5 star hotel:

 

	
287 332 m2 x $15.00/m2
    	
 
    	
$
    	
4 309 980.00;
    	
 
    

 

2) Parking:

 

	
86 806m2 x $10.00/m2
    	
 
    	
$
    	
868 060.00;
    	
 
    

 

3) Free Area:

 

	
27 359 m2 x 10.00/m2
    	
 
    	
$
    	
273 590.00.
    	
 
    

 

3.              The rent shall be revised every five years, counting from the publication date in the Official Gazette of the Macau Special Administrative Region of the dispatch that grants this contract, notwithstanding the immediate application of any new amounts set through legislation which may be enacted in the course of the duration of the present contract.

 

 

CLAUSE SEVEN - GUARANTEE

 

1.              According to article 126 of Law no. 6/80/M, of 5th of July, the second party shall provide a guarantee in the amount of $2 154 990.00 (two million, one hundred and fifty four thousand, nine hundred and ninety patacas), by deposit or bank guarantee acceptable to the first party.

 

2.              The amount of the guarantee, mentioned in the previous paragraph, shall always be equal to the amount of the annual rent.

 

3.              The guarantee referred in paragraph 1 shall be returned to the second party by the Financial Services Bureau, upon its request, after the submission of the occupancy permit issued by DSSOPT.

 

CLAUSE EIGHT — SPECIAL OBLIGATIONS

 

1.              The following are special obligations that shall be borne, exclusively by the second party:

 

1) To vacate the land and to remove all the existing constructions and materials, if any;

 

2) To reroute and/or remove all the existing infrastructures in the granted land plot and adjacent zones, namely, sewage network, water supply, electricity and telecommunications;

 

3) To execute the urban layout works, street paving and sidewalks of the surrounding areas of the granted land plot, which shall comply with the project as presented by the second party and approved by the first party.

 

2.              The second party is obliged to prepare all the execution projects of the works mentioned in the previous paragraph, which have to be approved by the first party.

 

3.              The second party guarantees the good execution and quality of materials and equipment to be used in the construction works mentioned in paragraph 1 section 3) during a period of two years, from the date of the provisional reception of those works, and shall be liable for the repair and maintenance of any defects during that period.

 

CLAUSE NINE — CONTRACT PREMIUM

 

The second party pays to the first party, as a premium of the contract the global amount of $ 1 291 173 332.00 (one billion two hundred and ninety one million, one hundred and seventy three thousand, three hundred and thirty two patacas), as follows:

 

1)             $ 450 000 000.00 (four hundred fifty million patacas), upon remittance of the declaration of acceptance of the conditions of the present contract, as refer to in article 125 of Law no. 6/80/M, of 5th of July;

 

2)             The outstanding, in the amount of 841 173 332.00 (eight hundred and forty one million, one hundred and seventy three thousand, three hundred and thirty two patacas) subject to an annual interest rate of 5%, shall be paid in 8 (eight) instalments due every six months, equal and including capital and interest, in the amount of $117 316 212.00 (one hundred and seventeen million, three hundred and sixteen thousand, two hundred and twelve patacas) each, the first instalment being due 6 (six) months  subsequent to the publication in the Official Gazette of the Macau Special Administrative Region of the dispatch that grants this contract.

 

 

CLAUSE TEN — EXCESS MATERIALS OF THE LAND PLOT

 

1.              The second party is explicitly forbidden to remove from the land plot, without prior authorisation in writing from the first party, any materials, such as soil, rock, gravel, and sand, from excavations for foundations and land levelling.

 

2.              Authorisations shall only be given, by the first party, for the removal of materials that cannot be used in the land plot or are unsuitable for any other purpose.

 

3.              The materials removed with authorisation of the first party are transported to a location set by the first party.

 

4.              Without prejudice of a payment of a compensation to be set by the DSSOPT experts, depending on the materials actually removed, non-compliance with this clause, shall render the second party liable for the following sanctions:

 

1) For the 1st breach: $ 20 000.00 to $ 50 000.00 patacas;

 

2) For the 2nd breach: $ 50 001.00 to $ 100 000.00 patacas;

 

3) For the 3rd breach: $ 100 001.00 to $ 200 000.00 patacas;

 

4) From the 4th breach onwards the first party has the power to terminate the contract.

 

CLAUSE ELEVEN — OCCUPANCY PERMIT

 

The occupancy permit shall only be issued after presentation of proof of full settlement of the premium sum mentioned in clause nine and compliance of all obligations set in clause eight.

 

CLAUSE TWELVE - TRANSFER

 

1.              The transfer of any rights derived from this contract, given its nature, shall be subject to prior authorisation from the first party and transferee shall be subject to review of the conditions of this contract.

 

2.              In order to guarantee the funding that may be necessary for the construction, the second party may mortgage the right of lease over the granted land plot in favour of any financial institutions, with its head office or a branch in MSAR, pursuant to article 2 of Decree-law no. 51/83/M of 26th of December.

 

CLAUSE THIRTEEN - MONITORING

 

During the development period of the granted land plot, the second party shall be obligated to allow the officials of Government Services with supervision responsibilities to have access to the site and the works, giving them all the assistance and means for the fulfilment of their tasks.

 

CLAUSE FOURTEEN - EXPIRATION

 

1.              This contract expires in the occurrence of the following events:

 

1) At the end of the aggravated fine deadline, pursuant to paragraph 1 of clause five;

 

 

2) Modification, without consent, of the land plot concession purpose while the development of the land plot is not concluded;

 

3) Interruption of the development of the land plot for a period over 90 (ninety) days, except for special reasons duly justified and accepted by the first party.

 

2.              The expiration of the contract is declared by dispatch from the Chief Executive, to be published in the Official Gazette of the Macau Special Administrative Region.

 

3.              The expiration of the contract leads to the reversal, total or partial, of the land plot, to the possession of the first party, with all its improvements, and the second party does not have the right to seek any compensation.

 

CLAUSE FIFTEEN - TERMINATION

 

1. This contract may be terminated in the occurrence of the following events:

 

1) Failure to pay the rent on a timely manner;

 

2) Modification, without consent, of the land plot development or, in the event that the land plot development is concluded, of the concession purpose;

 

3) Default on any obligations set in clauses eight or nine;

 

4) Repeated default, from the 4th time, on obligations set in clause ten;

 

5) Transfer of rights emerging from the land plot concession in violation of clause twelve.

 

2.              The termination of the contract is declared by dispatch from the Chief Executive, to be published in the Official Gazette of the Macau Special Administrative Region.

 

CLAUSE SIXTEEN - JURISDICTION

 

For the purpose of dispute resolution in connection with this contract, the competent jurisdiction is the Courts of the Macau Special Administrative Region.

 

CLAUSE SEVENTEEN — APPLICABLE LAW

 

This contract is governed, in unforeseen matters, by Law no. 6/80/M, of 5th July, and other applicable legislation.

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