Document:

Exhibit
10.57

 

EXECUTION COPY

 

POWER PURCHASE AGREEMENT

 

BETWEEN

 

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

 

AND

 

MILFORD WIND CORRIDOR PHASE II, LLC

 

DATED AS OF MARCH 1, 2010

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  Article I DEFINITIONS AND INTERPRETATION

  	
  1

  
	
  Section 1.1

  	
  Definitions

  	
  1

  
	
  Section 1.2

  	
  Interpretation

  	
  21

  
	
   

  	
   

  	
   

  
	
  Article II EFFECTIVE DATE, TERM,
  PURCHASE OPTION, EARLY TERMINATION AND FACILITY PROPERTIES

  	
  22

  
	
  Section 2.1

  	
  Effective Date

  	
  22

  
	
  Section 2.2

  	
  Agreement Term and Delivery Term

  	
  23

  
	
  Section 2.3

  	
  Survivability

  	
  23

  
	
  Section 2.4

  	
  Early Termination

  	
  23

  
	
  Section 2.5

  	
  Buyer Purchase Options

  	
  23

  
	
  Section 2.6

  	
  The Facility Generating Premises

  	
  25

  
	
  Section 2.7

  	
  Facility Common Facilities’ Interests

  	
  26

  
	
  Section 2.8

  	
  Transmission Line and Facility Transmission Line Interests

  	
  27

  
	
  Section 2.9

  	
  Real Property Consents

  	
  27

  
	
  Section 2.10

  	
  Operation and Maintenance Agreement

  	
  27

  
	
   

  	
   

  	
   

  
	
  Article III DEVELOPMENT OF THE FACILITY

  	
  27

  
	
  Section 3.1

  	
  In General

  	
  27

  
	
  Section 3.2

  	
  Certification of Commercial Operation Date; Preliminary Notice

  	
  29

  
	
  Section 3.3

  	
  Other Information

  	
  29

  
	
  Section 3.4

  	
  Milestone Schedule

  	
  29

  
	
  Section 3.5

  	
  Liquidated Damages

  	
  29

  
	
  Section 3.6

  	
  Additional Capacity after Early Completion in the Early
  Completion Facility Configuration

  	
  30

  
	
  Section 3.7

  	
  Decommissioning and Other Costs

  	
  30

  
	
   

  	
   

  	
   

  
	
  Article IV POINT OF DELIVERY AND
  INTERCONNECTION AGREEMENT

  	
  30

  
	
  Section 4.1

  	
  Point of Delivery

  	
  30

  
	
  Section 4.2

  	
  Interconnection Agreement

  	
  30

  
	
  Section 4.3

  	
  Transmission Service Agreement

  	
  31

  
	
   

  	
   

  	
   

  
	
  Article V OPERATION AND MAINTENANCE OF
  THE FACILITY

  	
  31

  
	
  Section 5.1

  	
  Compliance with Electrical Service Requirements

  	
  31

  
	
  Section 5.2

  	
  General Operational Requirements

  	
  31

  
	
  Section 5.3

  	
  Operation and Maintenance Plan

  	
  31

  
	
  Section 5.4

  	
  Taxes

  	
  31

  
	
  Section 5.5

  	
  Environmental Credits

  	
  32

  
	
  Section 5.6

  	
  Scheduling of Energy and Scheduled Outages

  	
  32

  
	
   

  	
   

  	
   

  
	
  Article VI COMPLIANCE DURING
  CONSTRUCTION AND OPERATION PERIOD

  	
  36

  
	
  Section 6.1

  	
  In General

  	
  36

  

 

i

 

	
  Section 6.2

  	
  Compliance With Standards

  	
  37

  
	
  Section 6.3

  	
  Quality Assurance Program

  	
  38

  
	
  Section 6.4

  	
  Effect of Review by Buyer

  	
  38

  
	
  Section 6.5

  	
  Preservation of the
  Facility

  	
  38

  
	
   

  	
   

  	
   

  
	
  Article VII
  PURCHASE AND SALE OF POWER

  	
  38

  
	
  Section 7.1

  	
  Purchases by Buyer

  	
  38

  
	
  Section 7.2

  	
  Conditions Precedent to
  Prepayment

  	
  40

  
	
  Section 7.3

  	
  Performance Security

  	
  41

  
	
  Section 7.4

  	
  Energy to Come Exclusively
  from Facility; Dedicated Facility; Sales to Third Parties

  	
  41

  
	
   

  	
   

  	
   

  
	
  Article VIII
  TRANSMISSION AND SCHEDULING; TITLE AND RISK OF LOSS

  	
  41

  
	
  Section 8.1

  	
  In General

  	
  41

  
	
  Section 8.2

  	
  Costs

  	
  42

  
	
  Section 8.3

  	
  Title; Risk of Loss

  	
  42

  
	
   

  	
   

  	
   

  
	
  Article IX
  ENVIRONMENTAL ATTRIBUTES; EPS AND RPS COMPLIANCE

  	
  42

  
	
  Section 9.1

  	
  Transfer of Environmental
  Attributes

  	
  42

  
	
  Section 9.2

  	
  Reporting of Ownership of
  Environmental Attributes

  	
  42

  
	
  Section 9.3

  	
  Environmental Attributes

  	
  42

  
	
  Section 9.4

  	
  Use of Accounting System
  to Transfer Environmental Attributes

  	
  43

  
	
  Section 9.5

  	
  Further Assurances

  	
  43

  
	
  Section 9.6

  	
  RPS and EPS Compliance

  	
  44

  
	
   

  	
   

  	
   

  
	
  Article X
  MAKEUP OF SHORTFALL ENERGY

  	
  44

  
	
  Section 10.1

  	
  Makeup of Shortfall

  	
  44

  
	
  Section 10.2

  	
  No Excess Energy During
  Shortfall Periods

  	
  44

  
	
  Section 10.3

  	
  Replacement Energy

  	
  44

  
	
  Section 10.4

  	
  Application of Shortfall
  Energy or Replacement Energy

  	
  45

  
	
   

  	
   

  	
   

  
	
  Article XI
  CAPACITY RIGHTS

  	
  45

  
	
  Section 11.1

  	
  Purchase and Sale of
  Capacity Rights

  	
  45

  
	
  Section 11.2

  	
  Representation Regarding
  Ownership of Capacity Rights

  	
  45

  
	
  Section 11.3

  	
  Further Assurances

  	
  45

  
	
   

  	
   

  	
   

  
	
  Article XII
  BILLING; PAYMENT; AUDITS; METERING; ATTESTATIONS

  	
  45

  
	
  Section 12.1

  	
  Billing and Payment

  	
  45

  
	
  Section 12.2

  	
  Disputed Invoices

  	
  46

  
	
  Section 12.3

  	
  Buyer’s Right of Setoff

  	
  47

  
	
  Section 12.4

  	
  Records and Audits

  	
  47

  
	
  Section 12.5

  	
  Electric Metering Devices

  	
  48

  
	
   

  	
   

  	
   

  
	
  Article XIII
  REPRESENTATIONS AND WARRANTIES; COVENANT OF SELLER

  	
  50

  
	
  Section 13.1

  	
  Representations and
  Warranties of Buyer

  	
  50

  
	
  Section 13.2

  	
  Representations and
  Warranties by Seller

  	
  51

  
	
  Section 13.3

  	
  Covenant of Seller Related
  to Seller’s Status as Special Purpose Entity

  	
  53

  

 

ii

 

	
  Section 13.4

  	
  Covenants of Seller
  Related to Leases and Property Agreements

  	
  53

  
	
   

  	
   

  	
   

  
	
  Article XIV
  DEFAULT; TERMINATION AND REMEDIES; PERFORMANCE DAMAGE

  	
  54

  
	
  Section 14.1

  	
  Default

  	
  54

  
	
  Section 14.2

  	
  Default Remedy

  	
  56

  
	
  Section 14.3

  	
  Effect of Termination on
  Interconnection Agreement

  	
  57

  
	
  Section 14.4

  	
  Termination for Default

  	
  57

  
	
  Section 14.5

  	
  Calculation of Termination
  Payment

  	
  57

  
	
   

  	
   

  	
   

  
	
  Article XV
  MISCELLANEOUS

  	
  59

  
	
  Section 15.1

  	
  Authorized Representative

  	
  59

  
	
  Section 15.2

  	
  Notices

  	
  59

  
	
  Section 15.3

  	
  Dispute Resolution

  	
  60

  
	
  Section 15.4

  	
  Further Assurances

  	
  60

  
	
  Section 15.5

  	
  No Dedication of
  Facilities

  	
  60

  
	
  Section 15.6

  	
  Force Majeure

  	
  61

  
	
  Section 15.7

  	
  Assignment of Agreement

  	
  62

  
	
  Section 15.8

  	
  Ambiguity

  	
  63

  
	
  Section 15.9

  	
  Attorney Fees &
  Costs

  	
  63

  
	
  Section 15.10

  	
  Voluntary Execution

  	
  64

  
	
  Section 15.11

  	
  Entire Agreement

  	
  64

  
	
  Section 15.12

  	
  Governing Law

  	
  64

  
	
  Section 15.13

  	
  Venue

  	
  64

  
	
  Section 15.14

  	
  Execution in Counterparts

  	
  64

  
	
  Section 15.15

  	
  Effect of
  Section Headings

  	
  64

  
	
  Section 15.16

  	
  Waiver

  	
  64

  
	
  Section 15.17

  	
  Relationship of the
  Parties

  	
  65

  
	
  Section 15.18

  	
  Indemnification; Damage or
  Destruction; Insurance; Limit of Liability

  	
  65

  
	
  Section 15.19

  	
  Severability

  	
  66

  
	
  Section 15.20

  	
  Confidentiality

  	
  66

  
	
  Section 15.21

  	
  Buyer’s Cure Rights and
  Rights Under Foreclosure

  	
  68

  
	
  Section 15.22

  	
  LADWP Business Policies

  	
  69

  
	
  Section 15.23

  	
  Service Contract

  	
  70

  

 

iii

 

	
  APPENDIX A

  	
  MONTHLY PAYMENT SCHEDULE

  
	
   

  	
   

  
	
  APPENDIX B

  	
  FACILITY DESCRIPTION AND
  MILESTONE SCHEDULE

  
	
   

  	
   

  
	
  APPENDIX C

  	
  BUYER AND SELLER BILLING,
  NOTIFICATION AND SCHEDULING CONTACT INFORMATION

  
	
   

  	
   

  
	
  APPENDIX D

  	
  FORM OF ATTESTATION

  
	
   

  	
   

  
	
  APPENDIX E

  	
  FORM OF SECURITY
  INTEREST

  
	
   

  	
   

  
	
  APPENDIX F

  	
  INSURANCE

  
	
   

  	
   

  
	
  APPENDIX G

  	
  REMAINING PREPAYMENT
  AMOUNT

  
	
   

  	
   

  
	
  APPENDIX H

  	
  CIRCLE FOUR LEASE

  
	
   

  	
   

  
	
  APPENDIX I

  	
  GUARANTEED GENERATION AND
  PREPAYMENT AMOUNT TABLE

  
	
   

  	
   

  
	
  APPENDIX J

  	
  QUALITY ASSURANCE PROGRAM

  
	
   

  	
   

  
	
  APPENDIX K

  	
  PERMITS

  
	
   

  	
   

  
	
  APPENDIX L

  	
  CLOSING CONDITIONS FOR
  PURCHASE OF FACILITY

  
	
   

  	
   

  
	
  APPENDIX M

  	
  FORM OF LETTER OF
  CREDIT

  
	
   

  	
   

  
	
  APPENDIX N

  	
  FACILITY OPERATOR

  
	
   

  	
   

  
	
  APPENDIX O

  	
  FORM OF CONSENT AND
  AGREEMENT

  
	
   

  	
   

  
	
  APPENDIX P

  	
  BUYER’S SYSTEM PROTECTION
  DESIGN REQUIREMENTS

  
	
   

  	
   

  
	
  APPENDIX Q

  	
  METERING PROCEDURES

  

 

iv

 

POWER PURCHASE AGREEMENT

 

PARTIES

 

THIS POWER PURCHASE
AGREEMENT (“Agreement”)
is entered into as of this 1st day of March, 2010 by and between Southern California Public Power
Authority, a public entity and joint powers agency formed and organized
pursuant to the California Joint Exercise of Powers Act (California Government
section 6500, et seq.) (“Buyer”), and Milford
Wind Corridor Phase II, LLC, a limited liability company organized and existing
under the laws of the State of Delaware (“Seller”). 
Each of Buyer and Seller is referred to individually under this
Agreement as a “Party”
and together they are referred to as the “Parties.”

 

RECITALS

 

WHEREAS, Buyer seeks to
provide to certain of its members energy from renewable power sources;

 

WHEREAS, in response to a
Request for Proposals issued by Buyer on September 1, 2006, Seller
proposes to develop, finance, construct, own and operate a nominal 102 MW wind
electric generating facility (the “Facility,” as further described herein),
located near Milford, Utah, which will utilize wind energy technology and sell
power to Buyer for the term of this Agreement, subject to certain early
termination events and purchase options exercisable by Buyer as provided
herein;

 

WHEREAS, Buyer desires to
purchase Energy from the Facility from Seller, and Seller desires to sell
Energy from the Facility to Buyer; and

 

WHEREAS, the Parties desire
to set forth the terms and conditions pursuant to which such sales and
purchases shall be made.

 

AGREEMENT

 

NOW, THEREFORE, in
consideration of the mutual covenants and agreements herein set forth, the
Parties hereto agree as follows:

 

ARTICLE I

DEFINITIONS AND INTERPRETATION

 

Section 1.1            Definitions.  The following capitalized terms in this
Agreement and the appendices hereto shall have the following meanings:

 

“Affiliate” means, as to any Person, any other Person that,
directly or indirectly, is in control of, is controlled by or is under common
control with such Person or is a director or officer of such Person or of an
Affiliate of such Person. As used in this Agreement, “control” shall mean the
possession, directly or indirectly, of the power to direct or cause the
direction of

 

1

 

management, policies or
activities of a Person, whether through ownership or voting securities, by
contract or otherwise.

 

“Agreement” means this Power Purchase Agreement, as it may be
amended, supplemented or otherwise modified from time to time hereafter in
accordance with its terms.

 

“Agreement Term” has the meaning set forth in Section 2.2.

 

“Ancillary Documents” means all agreements and other documents
included in the Performance Security, the LD Security, Deed of Trust and all
other instruments, agreements, certificates, and other documents executed or
delivered by or on behalf of Buyer or Seller pursuant to or in connection with
any thereof or this Agreement.

 

“ASME” means American Society of Mechanical Engineers.

 

“ASTM” means American Society for Testing and Materials and any
successor thereto.

 

“Authorized Auditors” means representatives of Buyer or Buyer’s
Agents who are authorized to conduct audits on behalf of Buyer.

 

“Authorized Representative” means, with respect to each Party,
the Person designated as such Party’s authorized representative pursuant to Section 15.1.

 

“AWS” means American Welding Society and any successor thereto.

 

“Bankruptcy” means any case, action or proceeding under any
bankruptcy, reorganization, debt arrangement, insolvency or receivership law or
any dissolution or liquidation proceeding commenced by or against a Person and,
if such case, action or proceeding is not commenced by such Person, such case
or proceeding shall be consented to or acquiesced in by such Person or shall
result in an order for relief or shall remain undismissed for sixty (60) days.

 

“Brown Act” has the meaning set forth in Section 15.20.

 

“Business Day” means any calendar day that is not a Saturday, a
Sunday, or a day on which commercial banks are authorized or required to be
closed in Los Angeles, California or New York, New York.

 

“Buyer” has the meaning set forth in the Preamble.

 

“Buyer’s Agent” means any member or agent of Buyer authorized
or designated by Buyer to make any determination or perform, carry out or
provide any function on behalf of Buyer under this Agreement.

 

“CAISO” means the California Independent System Operator, or
any successor entity thereto.

 

2

 

“Cal-OSHA” means California Occupational Safety &
Health Administration and any successor thereto.

 

“CAMD” means the Clean Air Markets Division of the United
States Environmental Protection Agency, any successor agency and any other
state, regional or federal or intergovernmental entity or Person that is given
authorization or jurisdiction or both over a program involving the
registration, validation, certification or transferability or any of the
foregoing of Environmental Attributes.

 

“Capacity Rights” means the rights, whether in existence as of
the Effective Date or arising thereafter during the Agreement Term, to
capacity, resource adequacy, associated attributes and/or reserves or any of
the foregoing associated with the electric generating capability of the
Facility, including the right to resell such rights.

 

“Cash Grants” means the grants pursuant to Section 1603 of
the American Recovery and Reinvestment Act of 2009, Pub. L. 111-5.

 

“CEC” means the California Energy Resources Conservation and
Development Commission and any successor agency thereto.

 

“CEC Performance Standard” means, at any time, the applicable
greenhouse gas emissions performance standard in effect at such time for
baseload electric generation facilities owned or operated (or both) by local
publicly owned electric utilities, as established by the CEC or other Governmental
Authority having jurisdiction over Buyer.

 

“Circle Four Lease” means the Amended and Restated Land Lease
Agreement, dated as of February 22, 2007, between Circle Four LLC, as
lessor, and Seller, as lessee, attached to this Agreement as Appendix H.

 

“Closing” has the meaning set forth in Appendix L.

 

“Code” means the Internal Revenue Code of 1986, as amended.

 

“Commercial Operation” means, with respect to the Facility, the
Early Completion Facility Configuration, or any additional wind turbines installed
in accordance with Section 3.6, as the case may be, that Seller
shall have demonstrated to the reasonable satisfaction of Buyer that all of the
following have occurred:

 

(a)           Construction of the Facility has been
completed in accordance with the terms and conditions of this Agreement and the
Facility possesses all the characteristics, and satisfies all of the
requirements, set forth for this Facility in this Agreement;

 

(b)           The Facility has successfully
completed all testing required by Prudent Utility Practices or any Requirement
of Law to be completed prior to full commercial operations;

 

(c)           Seller has obtained all Permits
required for the construction, operation and maintenance of the Facility in
accordance with this Agreement (including those identified in Appendix K),
and all such Permits are final and non-appealable;

 

3

 

(d)           The Facility is both authorized and
able to operate at an installed capacity of no more than 102 MW and to deliver
Energy to the Point of Delivery in accordance with Prudent Utility Practices,
the requirements of this Agreement and all applicable Requirements of Law;

 

(e)           Seller has obtained Insurance
coverage for the Facility as required by Appendix F;

 

(f)            Construction of all interconnection
facilities and transmission facilities necessary to deliver Energy to the Point
of Delivery has been completed and all agreements and arrangements have been
executed and made, as provided in the Agreement, to deliver Energy to the Point
of Delivery;

 

(g)           The Facility and the Related
Interests and Rights shall be fully effective;

 

(h)           All of the requirements as set forth
in Section 2.6, Section 2.7, Section 2.8, Section 2.9
and Section 2.10 to be met on or prior to the Commercial Operation Date
have been met; and

 

(i)            Buyer shall have received executed
copies of (x) the Interconnection Agreement and the assignment of the
interconnection rights from Milford I to Seller necessary for the
interconnection of the Facility to the Point of Delivery; (y) the joint
ownership and operating agreements between Milford I, Seller and any other
parties thereto with respect to their respective rights and interests with
respect to the Facility Common Facility Interests and the Facility Transmission
Line Interests, and the sharing of responsibilities and obligation related
thereto; and (z) the consent required under Section 4.2, each
such agreement being in a form reasonably acceptable to Buyer, provided
that Buyer shall acknowledge acceptance in writing on a timely basis if
requested by Facility Lender.

 

“Commercial Operation Date” means the date on which Commercial
Operation of the Facility, or the Early Completion Facility Configuration, as
the case may be, shall have occurred; provided, that Seller shall have
the right to install additional wind turbines in accordance with Section 3.6
following the Commercial Operation Date if Commercial Operation is achieved in
the Early Completion Facility Configuration in accordance with Section 3.6.

 

“Consent and Agreement” means the agreement attached as Appendix
O.

 

“Contract Capacity” means the aggregate installed capacity of
the Facility, not to exceed 102MW; provided, that Seller shall have the
right to declare Commercial Operation as to the Early Completion Facility Configuration
at the Commercial Operation Date and thereafter on or before ninety (90) days
following the Commercial Operation Date may declare Commercial Operation as to
all additional wind turbines in accordance with Section 3.6.

 

“Contract Year” means (i) for the first Contract Year, the
period beginning on the Prepayment Date and ending at 24:00 hours on June 30
following the Prepayment Date, (ii) for the following nineteen (19)
Contract Years beginning on the first day of July following the Prepayment
Date, each succeeding twelve-month period up to and including the period ending
with the June 30 next preceding the twentieth (20th) anniversary of the
Prepayment Date; and (iii) for the final Contract Year, the period
beginning on the first day of July next preceding the

 

4

 

twentieth (20) anniversary
of the Prepayment Date and ending at 24:00 hours on the date that the Agreement
Term shall end.

 

“Costs” has the meaning set forth in Section 14.5(i)(3).

 

“CPRA” has the meaning set forth in Section 15.20.

 

“Credit Agreement” shall mean the Credit Agreement, to be
executed between Seller and the Facility Lenders providing, among other things,
for the financing of construction of the Facility, including related development
and other project costs, interest and other finance costs during and after
construction, reserves and spare parts, contemplated to be outstanding for a
period after construction until repaid from proceeds of the Prepayment Amount,
together with proceeds of a tax equity arrangement or Cash Grants and/or other
capital sources, or until the right, title and interest of the Facility Lenders
in and to the Credit Agreement shall be purchased, together with the related
promissory notes and collateral documents, pursuant to the Consent and
Agreement.

 

“Deed of Trust” has the meaning set forth in the definition of “Security
Interest.”

 

“Deemed Delivered Excess Energy” has the meaning set forth in Section 5.6(g).

 

“Deemed Delivered Interim Energy”  has the meaning set forth in
Section 5.6(g).

 

“Deemed Delivered Prepaid Energy” has the meaning set forth in Section 5.6(g).

 

“Deemed Delivered Startup and Test Energy”  has the meaning set forth in
Section 5.6(g).

 

“Default” has the meaning set forth in Section 14.1.

 

“Defaulting Party” has the meaning set forth in Section 14.1.

 

“Delivered Energy” means the MWh of Facility Energy delivered
by Seller and received by Buyer as metered at the Point of Delivery, adjusted
to include Deemed Delivered Prepaid Energy, Deemed Delivered Excess Energy,
Deemed Delivered Startup and Test Energy and Deemed Delivered Interim Energy,
in accordance with Section 5.6.

 

“Delivered Excess Energy” means the portion of the Delivered
Energy that is designated as Excess Energy.

 

“Delivered Guaranteed Generation” means the portion of the
Delivered Energy that is designated as Guaranteed Generation.

 

“Delivery Term” has the meaning set forth in Section 2.2.

 

“Downgrade Event”, with respect to a financial institution,
means the failure of such financial institution to maintain the credit rating
or organizational status of a Qualified Issuer or the commencement by such
financial institution of involuntary or voluntary bankruptcy,

 

5

 

insolvency, reorganization,
arrangement, composition, readjustment, liquidation, dissolution or similar
proceeding (whether under any present or future statute, law or regulation).

 

“Early Completion Facility Configuration” means a configuration
of the Facility with the interconnection facilities and installed wind turbines
aggregating not less than 90 MW of nameplate capacity and not more than 102 MW
of nameplate capacity.

 

“EEI” means Edison Electric Institute and any successor
thereto.

 

“Effective Date” means the date on which Buyer executes this
Agreement, and the conditions precedent set forth in Section 2.1
have been met.

 

“Electric Metering Device(s)” means all meters, metering
equipment, and data processing equipment used to measure, record, or transmit
data relating to the Energy output from the Facility. Electric Metering Devices
include the metering current transformers and the metering voltage
transformers.

 

“End of Term Purchase Price” has the meaning set forth in Section 2.5(c).

 

“Energy” means electrical energy.

 

“Environmental Attribute Reporting Rights” means all rights to
report the ownership of the Environmental Attributes to any Person without
limitation, including under Section 1605(b) of the Energy Policy Act
of 1992, as amended from time to time, or any successor statute, or any other
current or future international, federal, state or local law, regulation or
bill, or otherwise.

 

“Environmental Attributes” means any and all current or future
credits, benefits, emissions reductions, offsets or allowances, howsoever
entitled, named, registered, created, measured, allocated or validated (A) that
are at any time recognized or deemed of value (or both) by applicable law, or
any voluntary or mandatory program of any Governmental Authority and (B) that
are attributable to (i) generation by the Facility of Delivered Energy or
Replacement Energy required to be delivered by Seller to Buyer during the
Agreement Term and (ii) the emissions or other environmental
characteristics of such generation or its displacement of conventional or other
types of Energy generation. 
Environmental Attributes include without limitation any of the
aforementioned arising out of legislation or regulation concerned with oxides
of nitrogen, sulfur, carbon, or any other greenhouse gas or chemical compound,
particulate matter, soot, or mercury, or implementing the United Nations
Framework Convention on Climate Change (the “UNFCCC”), the Kyoto Protocol to the
UNFCCC, California’s greenhouse gas legislation (including but not limited to
California Assembly Bill 32 (Global Warming Solutions Act of 2006)) or any
similar international, federal, state or local program or crediting “early
action” with a view thereto, or laws or regulations involving or administered
by the CAMD, and all Environmental Attribute Reporting Rights, including all
evidences (if any) thereof such as renewable energy certificates of any kind.
Environmental Attributes for purposes of this definition are separate from the
Energy produced from the Facility. Environmental Attributes specifically
exclude (i) investment tax credits, any local, state or federal production
tax credits, depreciation deductions or other tax credits providing a tax
benefit to Seller or any other Person based on ownership or a security interest
in the Facility, or Energy production from

 

6

 

any portion of the Facility,
including any investment or production tax credit expected to be available to
Seller with respect to the Facility, (ii) depreciation deductions and
benefits, and other tax benefits arising from ownership or operation of the
Facility unrelated to its status as a generator of renewable or environmentally
clean Energy, and (iii) cash grants or other financial incentives from any
local, state or federal government available to Seller with respect to the
Facility.

 

“Environmental Documents” has the meaning set forth in Section 3.1(a).

 

“EPA” means the United States Environmental Protection Agency
and any successor agency.

 

“EPS Compliant” when used with respect to the Facility or any
other facility at any time, means that the facility satisfies both the PUC
Performance Standard and the CEC Performance Standard in effect at the time; provided,
if it is impossible for the facility to satisfy both the PUC Performance
Standard and the CEC Performance Standard in effect at any time, the facility
shall be deemed EPS Compliant if it satisfies the CEC Performance Standard in
effect at the time and those portions of the PUC Performance Standard in effect
at the time that it is possible for the facility to satisfy while at the same
time satisfying the CEC Performance Standard in effect at the time.

 

“EPS Law” means Sections 8340 and 8341 of the California Public
Utilities Code as implemented and amended from time to time, or any successor
laws or regulations in the State of California.

 

“Excess Energy” means, for any Contract Year, the Energy from
the Facility delivered to the Point of Delivery, which is in excess of the
Guaranteed Annual Quantity for such Contract Year.

 

“Excess Energy Price” means the price per MWh ($/MWh) paid by
Buyer to Seller for Excess Energy according to the provisions in Appendix A.

 

“Facility” means the wind powered electric generating facility
to be located on the Facility Premises, including, but not limited to, the
Facility Premises, the structures, facilities, equipment, fixtures,
improvements and associated real and personal property and the other rights and
interests described in Appendix B.

 

“Facility Common Facilities Interests” means the rights and
interests in and to the properties, structures, equipment and facilities, and
described generally in Appendix B, that (i) provide Seller with
ownership interests (which may be an undivided interest) and leasehold interests
in the Site Common Facilities, including all associated real or personal
property, and the rights and interests of Seller in and to any and all
agreements for joint ownership and operation, any third-party joint operation,
or use of the Site Common Facilities or the capacity or capability thereof, and
(ii) shall provide Seller with the rights to capability, capacity or use
of the Site Common Facilities necessary to support the design capacity of the
Facility on a prudent and reliable basis.

 

7

 

“Facility Debt” means payment obligations of Seller to the
Facility Lenders under the Credit Agreement outstanding at any date of
application of such term, with the understanding that when such term is used
with reference to repayment of the Facility Debt, the amount is calculated as
of the date of repayment, including principal of, premium and interest on
indebtedness, fees, expenses or penalties, amounts due upon acceleration,
prepayment or restructuring, tax credit or benefit monetization, swap or
interest rate hedging breakage costs and any claims or interest due with
respect to any of the foregoing.

 

“Facility Energy” means Energy generated by the Facility, less
Station Usage Energy.

 

“Facility Generating Premises” means the real and personal
property (including all fixtures and appurtenances thereto) and related
physical and intangible property and the Facility Common Facilities Interests,
all as described in the Leases and Property Agreements and as further described
in Appendix B as constituting the Facility Generating Premises.

 

“Facility Lender” means any lender providing senior or
subordinated construction, debt or equity financing or refinancing for or in
connection with the development, construction, purchase, or installation of the
Facility, including any equity and tax investor providing financing or
refinancing in connection therewith, and any trustee or agent acting on their
behalf, and any Person providing interest rate protection agreements to hedge any
of the foregoing debt obligations.

 

“Facility Metered Output” means the energy produced by the
Facility wind turbine generators as measured by the Electric Metering Devices
installed at the Substation.

 

“Facility Premises” means the Facility Generating Premises, the
land and rights and interests in land included in the Facility Common
Facilities Interests and the Facility Transmission Line Interests.

 

“Facility Transmission Line Interests” means (i) the
rights and interests in and to the properties, structures and facilities,
including any easements, rights-of-way or contractual rights held or to be held
by Seller with respect to its rights to its share of the capacity of the
Transmission Line, including rights and interests in the Interconnection
Agreement and other agreements relating to the operation and use of the
Transmission Line and the use of capacity thereof, and in and to transmission
lines and/or roadways servicing the Facility Premises or the Facility located
(or to be located) thereon, described in Appendix B as constituting the
Facility Transmission Line Interests, and (ii) the undivided ownership
rights and interests in the Transmission Line as provided under Section 2.8(a).

 

“Fair Market Value” has the meaning set forth in Section 2.5(b).

 

“FERC” means the Federal Energy Regulatory Commission or any
successor agency thereto.

 

“First Buyer Purchase Option” has the meaning set forth in Section 2.5(a).

 

“First Notice” has the meaning set forth in Section 2.5(b).

 

8

 

“First Option Exercise Date” has the meaning set forth in Section 2.5(b).

 

“First Option Purchase Date” has the meaning set forth in Section 2.5(b).

 

“First Option Purchase Price” has the meaning set forth in Section 2.5(b).

 

“First Wind” means First Wind Holdings,
LLC.

 

“Force Majeure” has the meaning set forth in Section 15.6.

 

“Forced Outage” means the removal of service availability of
the Facility, or any portion of the Facility, for emergency reasons or
conditions in which the Facility, or any portion thereof, is unavailable due to
unanticipated failure, including as a result of Force Majeure.

 

“GAAP” means Generally Accepted Accounting Principles that are
accepted accounting principles set forth in the opinions and pronouncements of
the Accounting Principles Board of the American Institute of Certified Public
Accountants applicable to a government-owned utility applying all statements
and interpretations issued by the Governmental Accounting Standards Board
(GASB) and statements and pronouncements of the Financial Accounting Standards
Board which are not in conflict with the statements and interpretations issued
by the GASB or in such other statements by such other entity as may be approved
by a significant segment of the accounting profession, that are applicable to
the circumstances as of the date of determination.

 

“Gains” has the meaning set forth in Section 14.5(i)(1).

 

“Governmental Authority” means any federal, state, regional,
city or local government, any intergovernmental association or political
subdivision thereof, or other governmental, regulatory or administrative
agency, court, commission, administration, department, board, or other
governmental subdivision, legislature, rulemaking board, tribunal, or other
governmental authority, or any Person acting as a delegate or agent of any
Governmental Authority.

 

“Guaranteed Annual Quantity” means, (i) for each Contract
Year other than the first Contract Year and the final Contract Year, the
Guaranteed Generation divided by twenty (20), and (ii) for the first
Contract Year and the final Contract Year, the product obtained by multiplying (A) the
quotient obtained by dividing the Guaranteed Generation by twenty (20) by (B) a
fraction, the numerator of which is the number of days in the first Contract
Year or the final Contract Year, as applicable, and the denominator of which is
365.

 

“Guaranteed Commercial Operation Date” means October 1,
2010, as may be extended on a day-for-day basis not to exceed one (1) year
due to an event of Force Majeure, and as may be extended on a day-for-day basis
from April 1, 2010 if the Effective Date does not occur on or before April 1,
2010.

 

“Guaranteed Generation” means the MWh of Facility Energy
prepaid by Buyer and guaranteed to be delivered from the Facility to the Point
of Delivery as measured at the Point of Delivery, which shall be equal to P99
Energy, multiplied by twenty (20) years.

 

9

 

“IEEE” means Institute of Electrical and Electronics Engineers.

 

“Independent Engineer”  means
Garrad Hassan and Partners, Inc.
or such other engineer as may be jointly selected by the Parties.

 

“Independent Manager” means a manager who is not at the time of
initial appointment, or at any time while serving as Independent Manager, and
has not been at any time during the preceding five (5) years: (i) a
member, stockholder, equityholder, director, manager (except as such
Independent Manager of Seller), officer, employee, partner, attorney or counsel
of Seller, any member of Seller, or any Affiliate of Seller; (ii) a
customer, supplier or other Person who derives any of its purchases or revenues
from its activities with Seller, any member of Seller, or any Affiliate of
Seller (other than for serving as Independent Manager of the Seller); (iii) a
Person controlling or under common control with any such stockholder,
equityholder, partner, manager, customer, supplier or other Person; or (iv) a
member of the immediate family of any such member, stockholder, equityholder,
director, officer, employee, manager, partner, customer, supplier or other
Person.

 

“Insurance” means the policies of insurance as set forth in Appendix
F.

 

“Interest Rate” means the lesser of (i) two hundred (200)
basis points above the per annum Prime Rate reported daily in The  Wall
Street Journal, or (ii) the maximum rate permitted by
applicable Requirements of Law.

 

“Interim Energy” means the MWh of Facility Energy delivered to
the Point of Delivery, as metered at the Point of Delivery, during the Interim
Period. Prior to the earlier of the completion of the STS Upgrade or December 31,
2010, Seller shall not deliver any Interim Energy in an amount greater than the
Maximum Interim Energy Amount.

 

“Interim Energy Rate” has the meaning set forth in Appendix
A.

 

“Interim Period” means the period beginning on the Commercial
Operation Date and ending on the Prepayment Date.

 

“IPT”  means (i) when
used with respect to a Retail Seller for any year for which an Incremental
Procurement Target has been set for the Retail Seller by the PUC under the RPS
Law, the incremental procurement target so set, and (ii) when used with
respect to a Retail Seller for any year for which an incremental procurement
target has not been set for the Retail Seller by the PUC under the RPS Law, the
incremental procurement target last set for the Retail Seller by the PUC under
the RPS Law, and (iii) when used with respect to Buyer for any year, means
Buyer’s members’ renewable energy portfolio standard or procurement target for
the year in which this Agreement is entered into as established by Buyer’s
members’ governing body, as applicable, and in effect on the date this
Agreement is entered into, as established by Buyer’s members.

 

“Interconnection Agreement” has the meaning set forth in Section 4.2.

 

“Intermountain Power Agency” means the Intermountain Power Agency, a political subdivision of
the State of Utah.

 

10

 

“Intermountain Power Project Switchyard” means the transmission
switchyard owned by the Intermountain Power Agency, which is located in Delta,
Utah, which interconnects through Intermountain Power Project transmission
systems to the interstate transmission grid.

 

“ISA” means Instrument Society of America.

 

“KW” means kilowatt.

 

“KWh” means kilowatt-hour.

 

“LD Security” has the meaning set forth in Section 3.5(a).

 

“Lien” means any mortgage, deed of trust, lien, security
interest, retention of title or lease for security purposes, pledge, charge,
encumbrance, equity, attachment, claim, easement, right of way, covenant,
condition or restriction, leasehold interest, purchase right or other right of
any kind, including an option, of any other Person in or with respect to any
real or personal property.

 

“Lease” means the Circle Four Lease and all other leases for
the Facility.

 

“Leases and Property Agreements” means (A) the following
leases and property agreements and instruments under which Seller shall acquire
the Facility Generating Premises: (i) the Lease and all other easements
and other real property rights of any nature for the Facility, including access
rights from third parties (other than the State of Utah), (ii) a grant or
grants of right of way to Seller by the USBLM, (iii) the lease or leases
to Seller, as lessee, from the State of Utah, and (iv) agreements or
instruments providing for the acquisition and fee ownership by Seller of
parcels of land, and (B) the grants of rights of way and the leases,
agreements, deeds and other instruments providing for the acquisition by Seller
of rights and interests in the Transmission Line right of way and associated
property rights and interests in all cases, each as amended, supplemented,
replaced or otherwise modified from time to time.

 

“Losses” has the meaning set forth in Section 14.5(i)(2).

 

“Major Maintenance Blockout” has the meaning set forth in Section 5.6(e).

 

“Major Subcontractors” has the meaning set forth in Section 12.4.

 

“Material Adverse Effect” means any effect that is material and
adverse to the operations or physical condition of the Facility, or limits the
ability of Seller to deliver Facility Energy.

 

“Maximum Interim Energy Amount” means an amount, measured in
MWh, of Facility Energy delivered to the Point of Delivery, as metered at the
Point of Delivery, equal to the difference between (i) the Energy
delivered at the Point of Delivery from the Milford Wind Phase I Facility and (ii) the
maximum amount of Energy associated with 200 MW.

 

“Milestone” has the meaning set forth in Section 3.4.

 

11

 

“Milford I” means Milford Wind Corridor Phase I, LLC.

 

“Milford Wind Phase I Facility” means the wind generating
facility and transmission line and related facilities of Milford I provided for
under the Power Purchase Agreement, dated as of March 16, 2007, between
Buyer and Milford I, as amended by the First Amendment to Power Purchase
Agreement, dated as of January 16, 2009.

 

“Monthly Payment” means the amount to be paid to Seller by
Buyer on a monthly basis for all items set forth in Appendix A.

 

“MVAR” means megavolt-ampere-reactive or
megavolt-amperes-reactive, as applicable.

 

“MVARh” means megavolt-ampere-reactive-hour or
megavolt-ampere-reactive-hours, as applicable.

 

“MW” means megawatt or megawatts, as applicable.

 

“MWh” means megawatt-hour or megawatt-hours, as applicable.

 

“NERC” means the North American Electric Reliability Council or
its successor organization, if any.

 

“Non-Consolidation Opinion” means a reasoned opinion of
Chadbourne & Parke LLP, in form and substance reasonably acceptable to
Buyer, as to the non-consolidation of Seller in a bankruptcy proceeding of any
member of Seller, addressed and delivered to Buyer on or before the Prepayment
Date.

 

“Non-Defaulting Party” has the meaning set forth in Section 14.4(a).

 

“OATT” means Open Access Transmission Tariff approved by FERC
or approved by the governing body(s) of a non jurisdictional public
utility.

 

“Off Peak” means all hours other than On Peak hours.

 

“One Year Shortfall Make Up Period” has the meaning set forth
in Section 10.1.

 

“On Peak” means 6:00 a.m. - 10:00 p.m., Monday
through Friday.

 

“Operating Insurance” means the Insurance associated with the
Facility after final completion of the Facility construction phase,
specifically excluding Marine/Inland Marine Cargo, Marine Delay in Start Up,
and Builder’s Risk coverages, as set forth in Appendix F, which are
associated with construction or personnel.

 

“OSHA” means Occupational Safety & Health
Administration and any successor thereto.

 

“P99 Energy” means, with respect to the production of Energy
from the Facility, the amount of Facility Energy expected to be delivered to
the Point of Delivery annually, with a

 

12

 

probability of exceedance of
99%, as calculated by a nationally recognized wind expert acceptable to Buyer.

 

“Pacific Prevailing Time” means the time in Los Angeles,
California when actual transactions are made.

 

“Party” has the meaning set forth in the Preamble.

 

“Performance Security” means the performance security to be
provided, pursuant to Section 7.3, on or prior to the Prepayment
Date to secure Seller’s performance under this Agreement.

 

“Permit” means all applications, permits, licenses, franchises,
certificates, concessions, consents, authorizations, approvals, registrations,
orders, filings, entitlements and similar requirements of whatever kind and
however described which are required to be obtained or maintained by any Person
with respect to the development, siting, design, acquisition, construction,
equipping, financing, ownership, possession, shakedown, start-up, testing,
operation or maintenance of the Facility, the production and delivery of
Energy, Capacity Rights and Environmental Attributes, or any other transactions
or matter contemplated by this Agreement (including those pertaining to
electrical, building, zoning, environmental and occupational safety and health
requirements), including those described in Appendix K.

 

“Permitted Encumbrances” means (i) any Lien approved by
Buyer in a writing separate from this Agreement which expressly identifies the
Lien as a Permitted Encumbrance, (ii) Liens for Taxes not yet due or for
taxes being contested in good faith by appropriate proceedings, so long as such
proceedings do not involve (a) a material risk of the sale, forfeiture,
loss or (b) a restriction on the use of the Facility or any part thereof, provided
that such proceedings end by the expiration of the Agreement Term, (iii) suppliers’,
vendors’, mechanics’, workman’s, repairman’s, employees’ or other like Liens
arising in the ordinary course of business for work or service performed or
materials furnished in connection with the Facility for amounts the payment of
which is either not yet delinquent, bonded or is being contested in good faith
by appropriate proceedings, provided that such proceedings end by
expiration of the Agreement Term, (iv) Lease and Property Agreements, or
memoranda of such Leases and Property Agreements; or (v) easements, rights
of way, use rights, exceptions, encroachments, reservations, restrictions,
conditions or limitations listed as items 8 through 28 and 30 through 34 of
Schedule B of the Commitment for Title Insurance, Order No. NSC- 344152-
SLC 1, with an effective date of August 14, 2009, issued to Seller by
First American Title Insurance Company; provided that in each case the
same do not impair the operation or use of the Facility or any interest therein
as contemplated by this Agreement, or have a material adverse effect on the
value, the remaining useful life or the utility of the Facility or any interest
therein.

 

“Person” means any individual, corporation, partnership, joint
venture, limited liability company, association, joint stock company, trust,
unincorporated organization, entity, government or other political subdivision.

 

13

 

“Point of Delivery” means the interconnection facilities of
Seller located at the point of interconnection between the Transmission Line
and the Intermountain Power Project 345-kV Switchyard as further described in
the Interconnection Agreement.

 

“Prepaid Energy Price” means Forty-Seven Dollars ($47.00) per
MWh.

 

“Prepayment Amount” means the amount to be paid by Buyer for
the Guaranteed Generation as set forth in Section 7.1(g).

 

“Prepayment Date” means the date on which Buyer pays the
Prepayment Amount to Seller.

 

“Present Value Rate” means, at any date, the sum of 0.50% plus
the yield reported on page “USD” of the Bloomberg Financial Markets
Services Screen (or, if not available, any other nationally recognized trading
screen reporting on-line intraday trading in United States government
securities) at 11:00 a.m. (New York City, New York time) for the United
States government securities having a maturity that most nearly matches the
remaining term of the Agreement at that date.

 

“Prudent Utility Practices” means those practices, methods, and
acts, that are commonly used by a significant portion of the wind power
generation industry in prudent engineering and operations to design and operate
electric equipment (including wind powered facilities) lawfully and with
safety, dependability, efficiency, and economy, including any applicable
practices, methods, acts, guidelines, standards and criteria of FERC, NERC,
WECC and all applicable Requirements of Law.

 

“Public Utilities Code” means the Public Utilities Code of the
State of California.

 

“PUC” means the California Public Utilities Commission and any
successor thereto.

 

“PUC Performance Standard” means, at any time, the greenhouse
gas emission performance standard in effect at such time for baseload electric
generation facilities owned or operated (or both) by load-serving entities and
not local publicly-owned electric utilities, as established by the PUC or other
Governmental Authority under the EPS Law.

 

“Qualified Issuer” means a financial institution either
organized under the laws of the United States or a State therein or a United
States branch of a foreign financial institution, in each case, that has a
current long-term credit rating (corporate or long-term senior unsecured debt)
of (1) “A3” or higher by Moody’s Investors Service, Inc.; and (2) “A-”
or higher by Standard & Poor’s.

 

“Quality Assurance Program” has the meaning set forth in Appendix
J.

 

“RECs” or “Renewable Energy
Certificates” means tradable environmental commodities that
represent proof that one (1) megawatt-hour (MWh) of Energy was generated
from an eligible resource. These certificates can be sold and traded and the
owner of the REC can claim to have purchased renewable energy. RECs are also
commonly known as renewable energy credits and green tags.

 

14

 

“Related Interests and Rights” means the Facility Common
Facilities Interests and the Facility Transmission Line Interests.

 

“Remaining Prepayment Amount” means, with respect to the
Contract Year in which a termination of this Agreement occurs (other than upon
a purchase of the Facility and Related Interests and Rights by Buyer), the sum
of: (i) the amount set forth for such Contract Year in Appendix G,
as such amount may be modified on a pro-rata basis to reflect the final
configuration of the Facility as of the Prepayment Date; (ii) if any
Shortfall Energy or Replacement Energy has not been made up by Seller as of the
termination date, an amount equal to the product of (x) the amount of such
Shortfall Energy (measured in MWh), or the amount of such Replacement Energy
(measured in MWh), as the case may be, multiplied by (y) the  Prepaid Energy Price; and (iii) any
amounts owed to Buyer under Section 10.3 for Replacement Energy
purchased by Buyer in accordance with Section 10.3, or if Buyer has
not purchased such Replacement Energy in accordance with Section 10.3,
such Replacement Energy (measured in MWh) multiplied by the Prepaid Energy
Price.

 

“Replacement Energy” has the meaning set forth in Section 10.3.

 

“Requirement of Law” means federal, state and local laws,
statutes, regulations, rules, codes or ordinances enacted, adopted, issued or
promulgated by any federal, state, local or other Governmental Authority
(including those pertaining to electrical, building, zoning, environmental and
occupational safety and health requirements).

 

“Retail Seller”  means an “electrical corporation”
(as defined in Section 218 of the Public Utilities Code) that is a “retail
seller” as defined in Section 399.12(b) of the California Public
Utilities Code as amended from time to time and any successor law.

 

“RPS Compliant,” when used with respect to the Facility or any
other facility at any time, means (i) that all Energy generated by that
facility at that time would, if purchased by a Retail Seller together with the
associated Environmental Attributes, be eligible to be credited against the IPT
of the Retail Seller for the year during which the Energy is purchased, and (ii) that
all Energy generated by that facility at that time would, if purchased by Buyer
together with the associated Environmental Attributes, be eligible to be
credited against the IPT of Buyer’s members.

 

“RPS Law” means Sections 399.11 to 399.20 of the Public
Utilities Code, as implemented and amended from time to time, and any successor
law.

 

“SCADA” has the meaning set forth in Section 5.6(g).

 

“Schedule or Scheduling” means the actions of Seller and Buyer
or their Authorized Representatives, including each Party’s Transmission
Providers, if applicable, of notifying, requesting and confirming to each other
the quantity of energy to be delivered at the Point of Delivery on any given
date during the Delivery Term.

 

“Scheduled Outage” means any outage with respect to the
Facility other than a Forced Outage.

 

15

 

 

“Scheduled
Outage Projection” has the meaning set forth in Section 5.6(e).

 

“Scheduler” means the Persons doing Scheduling for each
Party.  The contact information for Buyer’s
Scheduler and Seller’s Scheduler at the Effective Date is set forth in item 4, Appendix
C.

 

“Second Buyer Purchase Option” has the meaning set forth in Section 2.5(a).

 

“Second Notice” has the meaning set forth in Section 2.5(c).

 

“Second Option Exercise Date” has the meaning set forth in Section 2.5(c).

 

“Security Interest” means a lien on and security interests for
the Facility and the Related Interests and Rights including all leasehold
interests and real and personal property rights and interests of the Seller
under the Leases and Property Agreements then in effect to secure the performance
of this Agreement by Seller by means of a perfected first lien and priority
security interest in the Facility and the Related Interests and Rights, subject
only to Permitted Encumbrances, in the form of a Security Interest, Deed of
Trust, Security Agreement and Fixture Filing as set forth in Appendix E
(“Deed of Trust”).
The amount of the Security Interest will secure all of Seller’s obligations
under this Agreement, including the Remaining Prepayment Amount, any
Termination Payment and other amounts or damages owed by Seller to Buyer under
this Agreement. In the event of Buyer foreclosure on the Security Interest,
Seller will be responsible for the reasonable legal expenses of Buyer to
accomplish the foreclosure.

 

“Seller” has the
meaning set forth in the Preamble.

 

“Shortfall Energy” has the meaning set forth in Section 10.1.

 

“Shortfall Make Up Period” means the One Year Shortfall Make Up
Period and the Two Year Shortfall Makeup Period.

 

“Site Common Facilities” means and includes:

 

(a)           that certain substation (but
excluding the Intermountain Power Project Switchyard) interconnected with the
Facility and the Milford Wind Phase I Facility (the “Substation”),
including all switching facilities, equipment, instruments, control panels,
controls, switches, administrative supplies and other equipment, instruments,
and appurtenances in and related thereto (but excluding the Electric Metering
Devices on the feeder lines to the Substation as further described in Section 12.5(b));
the interconnections with the Transmission Line and collection systems and
related transmission facilities; the site of the Substation and related
facilities, including fee ownership interests, leaseholds, rights of way,
easements and other related property rights and interests and associated
buildings, structures and other improvements therefor;

 

(b)           approximately 12 miles of
newly constructed access roads and turnaround areas;

 

(c)           operation, maintenance and
storage buildings, structures and facilities;

 

16

 

(d)           a 34.5 kV conductor line and
a communication line installed on Seller’s poles installed by Seller to
interconnect the Facility to the Substation; and

 

(e)           all equipment and other
personal property necessary or useful to provide operational and support
services to any of the foregoing.

 

“Special Purpose Entity” means a limited liability company,
which at all times prior to, on and after the date hereof:

 

(a)           shall not (i) engage in any
dissolution, liquidation or consolidation or merger with or into any other
business entity, (ii) acquire by purchase or otherwise all or substantially all
of the business or assets of or beneficial interest in any other entity, (iii) transfer,
lease or sell, in one transaction or any combination of transactions, all or
substantially all of its properties or assets except to the extent permitted
herein, (iv) modify, amend or waive any provisions of its organizational
documents related to its status as a Special Purpose Entity, or (v) terminate
its organizational documents or its qualifications and good standing in any
jurisdiction;

 

(b)           was, is and will be
organized solely for the purpose of (i) acquiring, developing, owning,
holding, selling, leasing, transferring, exchanging, managing and operating the
Facility, entering into this Agreement with Buyer and transacting lawful
business that is incident, necessary and appropriate to accomplish the
foregoing;

 

(c)           has not been, is not, and
will not be engaged in any business unrelated to the acquisition, development,
construction, ownership, management or operation of the Facility;

 

(d)           has not had, does not have
and will not have, any assets other than those related to the Facility;

 

(e)           has held itself out as and
will hold itself out to the public as a legal entity separate and distinct from
any other entity and has not failed and will not fail to correct any known
misunderstanding regarding the separate identity of such entity;

 

(f)            has maintained and will
maintain its financial statements, bank accounts, accounts books, resolutions,
agreements and records separate from any other Person and has filed and will
file its own tax returns (except to the extent treated as a “disregarded entity”
for tax purposes and is not required to file tax returns under applicable law);

 

(g)           has held itself out and
identified itself and will hold itself out and identify itself as a separate
and distinct entity under its own name or in a name franchised or licensed to
it by an entity other than an Affiliate of Seller and not as a division,
department, or part of any other Person;

 

(h)           has maintained and will
maintain its assets in such a manner that it will not be costly or difficult to
segregate, ascertain or identify its individual assets from those of any other
Person;

 

(i)            has not made and will not
make loans or advances to any Person or hold evidence of indebtedness issued by
any other Person (other than cash and investment-grade

 

17

 

securities issued by an
entity that is not an Affiliate of or subject to common ownership with such
entity) or made any gifts or fraudulent conveyances to any Person;

 

(j)            has not identified and will
not identify its members, or any Affiliate of any member, as a division or part
of it, and has not identified itself and shall not identify itself as a
division or department of any other Person;

 

(k)           has not entered into or been
a party to, and will not enter into or be a party to, any transaction with its
members or Affiliates, except (i) in the ordinary course of its business and on
terms which are intrinsically fair, commercially reasonable and are no less
favorable to it than would be obtained in a comparable arm’s-length transaction
with an unrelated third party, or (ii) in connection with the development or
construction of the Facility, provided that any indebtedness or other
obligations of Seller pursuant to any such transaction with its members or
Affiliates shall be fully performed and discharged in their entirety prior to
Commercial Operation, and (iii) as set forth in this Agreement;

 

(l)            does not and will not have
any obligation to indemnify, and has not indemnified and will not indemnify any
Person other than its officers, managers or members, as the case may be, and
the Independent Manager in connection with activities related to the
performance of this Agreement;

 

(m)          has considered and shall
consider the interests of its creditors in connection with all limited
liability company actions;

 

(n)           does not and will not have
any of its obligations guaranteed by any Affiliate and will not hold itself out
as being responsible for the debts or obligations of any other Person except in
connection with the development or construction of the Facility, provided
that any such debts or obligations shall be fully performed and discharged
prior to Commercial Operation;

 

(o)           has complied and will comply
with all of the terms and provisions contained in its organizational documents,
including the provision requiring that there be an Independent Manager at all
times, and has done or caused to be done and will do all things necessary to
preserve its existence;

 

(p)           has not commingled, and will
not commingle, its funds or assets with those of any Person and has not
participated and will not participate in any cash management system with any
other Person;

 

(q)           will hold its assets in its
own name and will conduct all business in its own name;

 

(r)            has maintained and will
maintain its financial statements, accounting records and other entity
documents separate from any other Person and has not permitted and will not
permit its assets to be listed as assets on the financial statement of any
other entity except as required by GAAP; provided, however, that
any such consolidated financial statement shall contain a note indicating that
its separate assets and liabilities are neither available to pay the debts of
the consolidated entity nor constitute obligations of the consolidated entity;

 

18

 

(s)            has paid and will pay its
own liabilities and expenses, including the salaries of its own employees, out
of its own funds and assets and has maintained and will maintain a sufficient
number of employees in light of its contemplated business operations;

 

(t)            has observed and will observe
all limited liability company formalities;

 

(u)           has not assumed or
guaranteed or become obligated for, and will not assume or guarantee or become
obligated for the debts of any other Person (other than an Affiliate of Seller
solely as provided in (k) and (n) of this definition with respect to
debts incurred for the performance of an obligation of Seller under this
Agreement) and has not held out and will not hold out its credit as being
available to satisfy the obligations of any other Person (other than an
Affiliate of Seller solely as provided in (k) and (n) of this
definition with respect to debts incurred for the performance of an obligation
of Seller under this Agreement) except as permitted pursuant to this Agreement;

 

(v)           does not have and will not
acquire obligations or securities of its members or any Affiliate;

 

(w)          has allocated and will
allocate fairly and reasonably any overhead expenses that are shared with any
Affiliate, including, but not limited to, paying for shared space and services
performed by any employee of an Affiliate;

 

(x)           now maintains and uses, and
will maintain and use separate stationery, invoice and checks bearing its name;
such stationery, invoices and checks utilized by it or utilized to collect its
funds or pay its expenses have borne and shall bear its own name and have not
borne and shall not bear the name of any other entity unless such entity is
clearly designated as being its agent;

 

(y)           except in connection with
the development or construction, or financing of the development or
construction of the Facility, has not pledged and will not pledge its assets
for the benefit of any other Person;

 

(z)           now has, and will have
articles of organization, a certificate of formation and/or an operating
agreement, as applicable, that provides that it will not: (A) dissolve,
merge, liquidate or consolidate; (B) sell, transfer, lease or otherwise
convey all or substantially all of its assets; (C) engage in any other
business activity, or amend its organizational documents with respect to the
matters set forth in this definition without the affirmative vote of its
Independent Manager; or (D) without the affirmative vote of its
Independent Manager, file a bankruptcy or insolvency petition or otherwise
institute insolvency proceedings with respect to itself or to any other entity
in which it has a direct or indirect legal or beneficial ownership interest;

 

(aa)         is and intends to remain
solvent and has paid and intends to continue to pay its debts and liabilities
(including, as applicable, shared personnel and overhead expenses) from its
assets as the same shall have or become due, and has maintained, is maintaining
and intends to maintain adequate capital for the normal obligations reasonably
foreseeable in a business of its size and character and in light of its
contemplated business operations; and

 

(bb)         now has and will have no
indebtedness other than (i) the loan made by the

 

19

 

Facility Lender pursuant to
the Credit Agreement, (ii) Taxes and Insurance premiums, (iii) liabilities
incurred in the ordinary course of business relating to its ownership, leasing
and operation of the Facility and its routine administration, that are not
evidenced by a note, and which amounts are normal and reasonable under the
circumstances, (iv) and any other liabilities incurred in the ordinary
course of business relating to its development and construction of the
Facility; provided that any such liabilities shall be fully discharged
prior to Commercial Operation, and (v) such other liabilities that are
permitted pursuant to this Agreement.

 

“Startup and Test Energy” means the MWh of Energy from the
Facility delivered by Seller to Buyer at the Point of Delivery prior to the
Commercial Operation Date, but not to exceed, at any time, an amount which is
equal to the difference between (i) the Energy delivered at the Point of
Delivery from Milford Wind Phase I Facility and (ii) the maximum amount of
Energy associated with 200 MW.

 

“Station Usage Energy” means Energy (a) used within the
Facility to power the lights, motors, buildings, panels, control systems and
other electrical loads that are necessary for operation and maintenance of the
Facility; or (b) consumed within the Facility’s electric energy
distribution/transmission system as losses.

 

“STS Upgrade”  means
the additions and improvements to and renewals of the Southern Transmission
System of the Intermountain Power Project of Intermountain Power Agency that
provide for an increase of the capacity of the Southern Transmission System
from 1920 MW to 2400 MW.

 

“Subcontractors” has the meaning set forth in Section 12.4(a).

 

“Substation” means the undivided interest of Seller in the
Substation described in the definition of “Site Common Facilities”.

 

“System Emergency” means an emergency condition or abnormal
interconnection situation which in Buyer’s sole judgment affects the ability of
Buyer or Buyer’s Transmission Provider to receive Energy at the Point of
Delivery.

 

“Taxes” has the meaning set forth in Section 5.4.

 

“Termination Payment” means in the case of a Default, the
amount, calculated pursuant to Section 14.5 and paid by a Party to
liquidate this Agreement.

 

“Transmission Line” means the generator lead line extending
from the Site Common Facilities Substation at the wind generation site to the
Intermountain Power Project Switchyard in Delta, Utah, a distance of
approximately 90 miles, including the rights of way, easements and other
property interests constituting the right of way of such transmission line and
the interconnection facilities at the Site Common Facilities Substation and the
interconnection facilities at the IPP Switchyard, together with all related
structures, facilities and equipment and associated real or personal
properties.

 

“Transmission Provider” means the Person(s) operating the
Transmission System(s) providing Transmission Services to or from the
Point of Delivery.

 

20

 

“Transmission Services” means the transmission and other
services required to transmit Energy to or from the Point of Delivery.

 

“Transmission System” means the facilities utilized to provide
Transmission Services.

 

“Two  Year Shortfall Make Up
Period” has the meaning set forth in Section 10.1.

 

“USBLM” means the Bureau of Land Management of the United
States Department of Interior.

 

“WECC” means the Western Electricity Coordinating Council, or
any successor entity thereto.

 

“WREGIS” means Western Renewable Energy Generation Information
System, and any successor; provided that said successor is capable of
performing substantially similar functions and is acceptable to Buyer.

 

“WREGIS Certificates” has the meaning set forth in Section 9.4.

 

“WREGIS Operating Rules” means the rules describing the
operations of the Western Renewable Energy Generation Information System, as
published by WREGIS and as may be amended from time to time.

 

Other terms defined herein
have the meanings so given them in this Agreement.

 

Section 1.2            Interpretation.  In this Agreement, unless a clear contrary
intention appears:

 

(a)           the singular number includes
the plural number and vice versa;

 

(b)           reference to any Person
includes such Person’s successors and assigns but, in case of a Party hereto,
only if such successors and assigns are permitted by this Agreement, and
reference to a Person in a particular capacity excludes such Person in any
other capacity or individually;

 

(c)           reference to any gender
includes the other;

 

(d)           reference to any agreement
(including this Agreement), document, instrument or tariff means such
agreement, document, instrument or tariff as amended or modified and in effect
from time to time in accordance with the terms thereof and, if applicable, the
terms hereof;

 

(e)           reference to any Article,
Section, or Appendix means such Article of this Agreement, Section of
this Agreement, or such Appendix to this Agreement, as the case may be, and
references in any Article or Section or definition to any clause
means such clause of such Article or Section or definition; 

 

21

 

(f)            “hereunder”, “hereof”, “hereto”
and words of similar import shall be deemed references to this Agreement as a
whole and not to any particular Article or Section or other provision
hereof or thereof;

 

(g)           “including” (and with
correlative meaning “include”) means including without limiting the generality
of any description preceding such term;

 

(h)           relative to the
determination of any period of time, “from” means “from and including”, “to”
means “to but excluding” and “through” means “through and including”;

 

(i)            reference to time shall
always refer to Pacific Prevailing Time; and

 

(j)            reference to any “day” shall
mean a calendar day unless otherwise indicated.

 

ARTICLE II

EFFECTIVE DATE, TERM, PURCHASE OPTION,

EARLY TERMINATION AND FACILITY PROPERTIES

 

Section 2.1            Effective
Date.  This Agreement shall become
effective when duly executed and delivered by both Parties. On or prior to the
Effective Date, each of the following has occurred:

 

(a)           Buyer received copies of all
requisite resolutions and incumbency certificates of Seller and any other
documents evidencing all actions taken by Seller to authorize the execution and
delivery of this Agreement and all Ancillary Documents requiring execution by
Seller, such resolutions to be certified as of the Effective Date by an
Authorized Representative of Seller;

 

(b)           Buyer received an executed
original of a written legal opinion of Chadbourne & Parke LLP, counsel
for Seller, dated as of the Effective Date and addressed to Buyer concerning
this Agreement and related matters in form and substance satisfactory to Buyer
and its counsel;

 

(c)           First Wind, or an Affiliate
of First Wind, and Seller shall have entered into an agreement with Buyer under
which First Wind, or an Affiliate of First Wind (other than Seller), agrees to
apply for and to cause to be issued to Buyer the LD Security as provided under Section 3.5(b);

 

(d)           The LD Security required
under Section 3.5(b) was delivered to Buyer;

 

(e)           First Wind, or an Affiliate
of First Wind, and Seller shall have entered into an agreement with Buyer under
which First Wind, or an Affiliate of First Wind (other than Seller), agrees to
apply for and to cause to be issued to Buyer the Performance Security as
provided under Section 7.3; and

 

(f)            Buyer received evidence
reasonably satisfactory to Buyer that Seller or Seller’s contractors or
subcontractors have obtained or will have the right to use all Permits listed

 

22

 

in Appendix K, except
for any such Permits not yet required to be obtained but which can reasonably
be expected to be obtained when needed, and each such Permit is final and
non-appealable, except as otherwise noted on Appendix K.

 

Section 2.2            Agreement
Term and Delivery Term.  This
Agreement shall have a delivery term commencing on the Commercial Operation
Date and ending on the twentieth (20th) anniversary of the Prepayment Date,
unless sooner terminated in accordance with the terms of this Agreement (the “Delivery Term”). The
term of this Agreement (the “Agreement Term”) shall commence on the Effective Date
and shall end upon the date that is the twentieth (20th) anniversary of the
Prepayment Date.

 

Section 2.3            Survivability.  The provisions of this Section 2.3, Section 3.7,
Section 12.4, Article XIV, and Article XV shall survive the
termination of this Agreement. In addition, applicable provisions of this
Agreement shall continue in effect after termination to the extent necessary to
provide for final billing and adjustments related to the period prior to
termination of this Agreement, including payment of any money due and owing to
Seller or Buyer pursuant to this Agreement, including Section 3.5, Section 5.4,
Section 7.1, Section 7.4, and Section 10.3.

 

Section 2.4            Early
Termination.

 

(a)           Early
Termination by Mutual Agreement.  This Agreement
may be terminated by mutual written agreement of the Parties.

 

(b)           Early
Termination for Default.  Upon
the occurrence and during the continuation of a Default subject to applicable
cure periods, if any, the Non-Defaulting Party may terminate this Agreement as
set forth in Section 14.4.

 

(c)           Early
Termination for Business Policies. This Agreement shall
terminate when and as provided in Section 15.22. 

 

(d)           Purchase of
the Facility. If Buyer purchases the Facility pursuant to this
Agreement, this Agreement shall terminate effective upon the Closing unless
sooner terminated as otherwise herein provided.

 

(e)           Effect of
Termination.  Any
termination of this Agreement under this Section 2.4 shall be without
prejudice to the rights and remedies of either Party for Defaults occurring
prior to such termination.

 

Section 2.5            Buyer
Purchase Options.

 

(a)           Seller hereby grants to
Buyer an initial purchase option (the “First Buyer Purchase Option”) to be exercised
within the First Option Exercise Date and an additional purchase option (the “Second Buyer Purchase Option”)
to be exercised within the Second Option Exercise Date, in each case pursuant
to the terms of this Section 2.5.

 

(b)           At any time following the
Prepayment Date and on a date that is within the six (6) month period
immediately preceding the  seventh
(7th)  anniversary of the Commercial Operation
Date (such date hereinafter referred to as the “First Option Exercise Date”), Buyer

 

23

 

may deliver to Seller
written notice (the “First
Notice”) that it intends to exercise the First Buyer Purchase
Option. Buyer’s exercise shall permit Buyer a one-time option to purchase the
Facility and the Related Interests and Rights at the seventh (7th), eighth
(8th), ninth (9th) or tenth (10th) anniversary of the Commercial Operation Date
(“First Option Purchase
Date”).  Buyer may select
one date only. Buyer shall deliver a written notice (“Purchase Notice”) to
Seller within a six (6) month period immediately preceding the selected
First Option Purchase Date of its intent to exercise the First Buyer Purchase
Option and purchase the Facility and Related Interests and Rights for a price
equal to the Fair Market Value thereof, but in no event for more than seventy
million dollars ($70 million)  (the
“First Option Purchase
Price”) which shall be determined as provided in the definition
of such term as set forth below.  For
purposes of this Agreement, “Fair Market Value”  means,
with respect to a particular time of calculation, the amount a willing buyer
would pay for the Facility and Related Interests and Rights, subject to
compliance with the terms and provisions of this Agreement through the
twentieth (20th) anniversary of the Prepayment Date, in an arm’s-length
transaction, to a willing seller under no compulsion to sell, as shall be
specified by agreement between Buyer and Seller or, if not agreed to by Buyer
and Seller within a period of 15 days after either Party by written notice to
the other Party requests a determination of the Fair Market Value, then as
specified in an appraisal prepared and mutually agreed to by two independent
recognized appraisers, one of which shall be appointed by Buyer and the other
of which shall be appointed by Seller, or, if such appraisers cannot agree on
such an appraisal, an appraisal arrived at by a third independent recognized
appraiser chosen by the mutual agreement of the two appraisers.  If either Party should fail to appoint an
appraiser within fifteen (15) days of receiving notice of the appointment of an
appraiser by the other Party, then such appraisal shall be made by the
appraiser appointed by the first Party. 
If the two appraisers cannot agree on such appraisal and fail to appoint
a third independent recognized appraiser within fifteen (15) days after the
appointment of the second appraiser, then either Party may apply to the
American Arbitration Association to make such appointment. The appraisal shall
be completed within thirty (30) days of the appointment of the last appraiser
appointed. Following determination of the Fair Market Value with respect to the
Facility and Related Interests and Rights, unless Buyer provides written notice
to Seller within ten (10) days preceding the First Option Purchase Date
that it will not exercise the option to purchase the Facility and Related
Interests and Rights, Buyer shall purchase and Seller shall sell, convey and
assign, the Facility and Related Interests and Rights for the First Option
Purchase Price, in accordance with an agreement provided by Buyer that includes
the terms and conditions substantially in the form of Appendix L. If
Buyer does not provide the First Notice by the First Option Exercise Date, then
Buyer shall forfeit the right to exercise the First Buyer Purchase Option.

 

(c)           If Buyer does not deliver
the First Notice by the First Option Exercise Date or purchase the Facility and
Related Interests and Rights pursuant to the First Buyer Purchase Option, Buyer
may exercise the Second Buyer Purchase Option to purchase the Facility and
Related Interests and Rights at the expiration of the Delivery Term.  Buyer shall exercise such option, if at all,
by providing Seller with notice (the “Second Notice”) at least one hundred eighty
(180) days prior to the expiration of the Delivery Term (the “Second Option Exercise Date”)
that it intends to exercise the Second Buyer Purchase Option and purchase the
Facility and Related Interests and Rights for a purchase price equal to the
Fair Market Value thereof  (the “End of Term Purchase Price”),
which shall be determined as provided in the definition of Fair Market Value as
set forth in Section 2.5(b). Following determination of the Fair
Market Value

 

24

 

with respect to the Facility
and Related Interests and Rights, unless Buyer provides written notice to
Seller within ten (10) days preceding the Second Option Exercise Date that
it will not exercise the option to purchase the Facility and Related Interests
and Rights, Buyer shall purchase and Seller shall sell, convey and assign, the
Facility and Related Interests and Rights for the End of Term Purchase Price in
accordance with an agreement provided by Buyer that includes the terms and
conditions substantially in the form of Appendix L.  If Buyer does not provide the Second Notice
by the Second Option Exercise Date, then Buyer shall forfeit the right to
exercise the Second Buyer Purchase Option.

 

(d)           At any time (i) prior
to the First Option Exercise Date (but following the sixth (6th) anniversary of
the Commercial Operation Date) and not during the period in which the Parties
are obligated to calculate in good faith the First Option Purchase Price, and (ii) during
the last year of the Delivery Term, but prior to the date on which Buyer must
provide the Second Notice, Buyer may request in writing (but only one time in
each time period) Seller’s reasonable estimate of the purchase price for the
Facility and Related Interests and Rights, and Seller shall provide such
estimate with supporting documentation within sixty (60) days of such written
request. The reasonable estimate will take into consideration the actual
Delivered Energy from the Commercial Operation Date through the most recent
anniversary of the Commercial Operation Date, and, if applicable, the expected
Delivered Energy from that date until the First Option Exercise Date.  The calculation of the expected Delivered
Energy will take into consideration the average annual Delivered Energy since
the Commercial Operation Date and other analysis and data appropriate under the
circumstances.

 

(e)           Commencing on the date on
which Buyer provides Seller a First Notice or Second Notice, as the case may
be, and for a period of no less than six (6) months,  Seller, at no cost to Buyer, shall make
available to Buyer and its representatives Seller’s qualified and trained
personnel, or cause the operator of the Facility to make available qualified
and trained personnel, to provide information, advice, and guidance to, and
opportunities for, Buyer and its representatives to observe such personnel in
connection with the operation and maintenance of the Facility at times and for
durations designed to allow an operator engaged by Buyer to operate and
maintain the Facility competently and independently without any future
assistance from Seller or its representatives. In addition, upon Buyer’s
reasonable request, Seller shall provide documentation to Buyer related to the
operation, maintenance and compliance with technical, regulatory and other
requirements of the Facility. Additional training services may be provided to
Buyer at a cost mutually agreed to by Buyer and Seller.

 

(f)            This Agreement shall be
terminated upon the Closing of any such purchase under this Section 2.5,
the payment in full by Buyer to Seller of the applicable purchase price for the
Facility and Related Interests and Rights and the return by Buyer to Seller of
the Performance Security.

 

Section 2.6            The
Facility Generating Premises.

 

(a)           Prior to the Commercial
Operation Date, Seller shall enter into Leases and Property Agreements which
shall provide Seller with leaseholds or other property rights and interests
sufficient for the development, construction, operation, maintenance and repair
of the Facility and Related Interests and Rights, which shall comprise the
Facility Generating Premises,

 

25

 

as well as leaseholds and
property interests in other undeveloped lands. 
The terms and provisions of the Leases and Property Agreements entered
into by Seller shall be approved by Buyer, which approval shall not be
unreasonably withheld, conditioned or delayed. Buyer has approved the terms and
conditions of the Circle Four Lease and the Amended and Restated Special Use
Lease Agreement 1599B dated April 22, 2009 between Buyer and the State of
Utah acting by and through the School and Institutional Trust Lands
Administration. Seller may not remove any portions of or rights or interests in
the premises under the Leases and Property Agreements or amend or terminate any
of the Leases and Property Agreements, unless Buyer has provided prior written
consent to Seller, such consent to be determined in Buyer’s reasonable
discretion.  All Leases and Property
Agreements, or memoranda of such Leases and Property Agreements, to the extent
recordable under federal or state law, shall be duly recorded in the land
records of the applicable county or counties of the State of Utah or as
otherwise provided by applicable law.

 

(b)           Seller agrees not to develop
or improve the areas of such Leases and Property Agreements, other than the
Facility Generating Premises, which shall be developed and improved so as to
provide for the facilities and improvements of the Facility to be located on
the Facility Generating Premises in accordance with this Agreement.  Following the Commercial Operation Date,
Seller may not remove any portions of or rights or interests in the premises
under the Leases and Property Agreements or amend or terminate any of the Leases
and Property Agreements, unless Buyer has provided prior written consent to
Seller, such consent to be determined in Buyer’s reasonable discretion. All of
the ownership, rights and interests of Seller in the Leases and Property
Agreements held by Seller as of the Prepayment Date shall be subject to the
lien and security interest of the Deed of Trust.

 

Section 2.7            Facility
Common Facilities’ Interests. On or before the
Commercial Operation Date, the construction and installation of structures,
facilities and other improvements of the Facility on the Facility Generating
Premises as provided in this Agreement shall include the Facility Common
Facilities Interests. Prior to the Commercial Operation Date, with the prior
written consent of Buyer, not to be unreasonably withheld, Seller may sell,
transfer or otherwise only dispose of undivided interests or rights in such
Facility Common Facilities Interests, including the use of the capacity or
capabilities thereof, to other entities in accordance with agreements that
govern the common ownership, use, construction and operation of such Facility
Common Facilities Interests and include provisions for sharing of the costs
thereof and rights and entitlements to the capacity and services thereof; provided
that Seller shall not sell, transfer or dispose of the Facility Common
Facilities’ Interests or any portion thereof that are needed for the
construction, operation, maintenance, repair or dismantling of the Facility.
All of the ownership rights and interests of Seller in the Facility Common
Facilities Interests held by Seller as of the Prepayment Date shall be subject
to the lien and security interest of the Deed of Trust. Any sale, transfer or
disposal by Seller of rights or interests in such Facility Common Facilities
Interests following the Commercial Operation Date shall require the prior
written consent of Buyer, which consent shall not be unreasonably withheld.
Notwithstanding anything to the contrary herein, Buyer shall have the right to
review any agreement that provides for joint or common ownership or operation
of the Facility Common Facilities Interests  or
any capacity or capability thereof, and such agreement shall be subject to
approval by Buyer, not to be unreasonably withheld, prior to becoming effective.

 

26

 

Section 2.8            Transmission
Line and Facility Transmission Line Interests.

 

(a)           Prior to the Commercial
Operation Date, Seller shall acquire such undivided ownership rights and
interests in the Transmission Line, including the Facility Transmission Line
Interests, which shall be reasonably acceptable to Buyer and shall provide
Seller with rights to use the capacity of the Transmission Line for the
delivery of Energy from the Facility to the Point of Delivery.

 

(b)           All of the ownership, rights
and interests of Seller in the Transmission Line, including the Facility
Transmission Line Interests, held by Seller as of the Prepayment Date shall be
subject to the lien and security interest of the Deed of Trust.  Notwithstanding anything to the contrary
herein, Buyer shall have the right to review any agreement that provides for
joint or common ownership or operation of the Transmission Line, including the
Facility Transmission Line Interests, or any capacity or capability thereof,
and such agreement shall be subject to approval by Buyer, not to be
unreasonably withheld or delayed, prior to becoming effective.

 

Section 2.9            Real
Property Consents.  Prior to
the Commercial Operation Date, the lessors and other parties (other than USBLM)
under the Leases shall enter into consent and estoppel and non-disturbance
agreements with Buyer and Seller in form and substance satisfactory to Buyer,
providing, among other things, cure and step-in rights to Buyer under such
Leases and the required consents of such lessors and other parties to the
assignment by Seller of its rights and interests in and to such Leases to Buyer
under the Deed of Trust and in connection with the purchase of the Facility and
Related Interests and Rights by Buyer. In addition, prior to the Commercial
Operation Date, Seller shall use commercially reasonable efforts to obtain and
deliver to Buyer from the parties under the Leases and Property Agreements
which constitute easements, rights-of-way, and other property rights and
interests (other than the Leases referred to in the preceding sentence)
executed consents, in form and substance satisfactory to Buyer, to the
assignment by Seller of its rights and interests in and to such Leases and
Property Agreements to Buyer under the Deed of Trust and in connection with any
purchase of the Facility and Related Interests and Rights by Buyer. Consents to
assignment shall not be required if the terms of the Leases and Property
Agreements (other than the Leases for which consent shall be required), as the
case may be, expressly permit their assignment to Buyer in connection with the
Deed of Trust and the purchase options provided for hereunder.

 

Section 2.10         Operation
and Maintenance Agreement.  Prior to the Commercial Operation Date,
Seller shall deliver to Buyer an executed copy of an operation and maintenance
agreement for the Facility in form and substance reasonably acceptable to
Buyer.

 

ARTICLE III

DEVELOPMENT OF THE FACILITY

 

Section 3.1            In General.

 

(a)           Permitting.  Seller, at its sole cost and expense, shall
timely take all commercially reasonable and diligent steps necessary to obtain
or cause to be obtained all Permits required to construct, maintain or operate
the Facility in accordance with the

 

27

 

requirements of this
Agreement and all applicable Requirements of Law including but not limited to
the timely preparation of all environmental documents required to have the
Facility reviewed under applicable federal and Utah law (the “Environmental  Documents”).

 

(b)           Project
Design. The location, design, configuration and capacities of the Facility
shall be consistent with the requirements of this Agreement and all applicable
Requirements of Law, including but not limited to the characteristics and other
requirements for the Facility set forth in Appendix B, and also subject
to any conditions that are imposed by the lead agency or any responsible agency
as part of the environmental review of the Facility required under applicable
Utah law and such conditions that Seller deems acceptable.

 

(c)           Meetings
With Governmental Authorities.  Seller shall represent the Facility as
necessary in all meetings with and proceedings before all Governmental
Authorities.

 

(d)           CEQA
Exemption. The Parties acknowledge and agree that the
Facility is subject to environmental review pursuant to NEPA, and is therefore
statutorily exempt from CEQA pursuant to Title 14, California Code of
Regulations, Section 15277.  The
Parties acknowledge and agree that Seller shall have no obligation to sell and
Buyer shall have no obligation to purchase any Energy under this Agreement
unless and until a notice of exemption pursuant to Title 14, California Code of
Regulations, Section 15277 (“Notice of Exemption”), shall have been duly
filed in the appropriate state and county, and the applicable period for any
legal challenges to any action by any such agency or any other Person,
including the statute of limitations pertaining to the filing of the Notice of
Exemption, shall have expired without any such challenge having been filed or,
in the event of any such challenge, the challenge shall have been determined
adversely to the challenger by final judgment or by settlement. Buyer agrees to
make the requisite filings in the appropriate state and county.

 

(e)           Development
and Construction of the Facility.  Seller shall use commercially reasonable and
diligent efforts to site, develop, finance and construct the Facility. The
Facility shall be owned by Seller during the Agreement Term. Seller shall
develop, finance and construct the Facility, at its sole risk and expense, and
in compliance with the requirements of this Agreement, all applicable
Requirements of Law, Prudent Utility Practices, and applicable manufacturer’s
and vendor’s specifications and recommended procedures; provided that
meeting these requirements shall not relieve Seller of its other obligations
under this Agreement.

 

(f)            Confirmation
of Facility Premises. Seller agrees and acknowledges that (i) Seller’s
agents and representatives have visited, inspected and are familiar with the
Facility Premises, its surface physical condition relevant to Seller’s
obligations under this Agreement, including surface conditions, normal and
usual soil conditions, roads, utilities, and topographical, air and water
quality conditions; (ii) Seller is familiar with all local and other
conditions which may be material to Seller’s performance of its obligations
under this Agreement (including, transportation, seasons and climate, access,
weather, handling and storage of materials and equipment; and availability and
quality of labor and utilities); and (iii) based on the foregoing, the
Facility Premises constitute an acceptable and suitable site for the
construction and operation of the Facility in accordance herewith. Any failure
by Seller to take the actions described in this Section will not relieve
Seller from any responsibility for estimating properly the difficulty and cost
of successfully constructing, maintaining or operating the Facility in
accordance with this

 

28

 

Agreement or from proceeding
to construct, maintain and operate the Facility successfully without any
additional expense to Buyer.

 

Section 3.2            Certification
of Commercial Operation Date; Preliminary Notice. Seller shall furnish Buyer
at least ninety (90) days  prior to
the anticipated Commercial Operation Date a notice of such anticipated
Commercial Operation Date. Seller shall provide Buyer with a notice when Seller
believes that all conditions precedent to achieving Commercial Operation as
specified in the definition of “Commercial Operation” in Section 1.1
have been satisfied.

 

Section 3.3            Other
Information. Seller shall provide to Buyer such other
information that is in the possession of Seller or its Affiliates or is
reasonably available to Seller regarding the permitting, engineering,
construction or operations of Seller, its subcontractors or the Facility, and
other data concerning Seller, its subcontractors or the Facility that Buyer
may, from time to time, reasonably request in writing, subject to Seller’s
obligations of confidentiality to third parties with respect to such
information. Until the Commercial Operation Date, Seller shall provide to Buyer
monthly written reports describing permitting and development activities in the
previous month and anticipated progress and activities for the upcoming month
with respect to the Facility.

 

Section 3.4            Milestone
Schedule.  Seller has
provided Buyer with the milestone schedule set forth in Appendix B for
the development of the Facility.  Seller
shall use commercially reasonable efforts to achieve each milestone set forth
on Appendix  B (each, a “Milestone”) by the
date specified therefor, subject to extension in accordance with this
Agreement. Seller shall include in its weekly reports to Buyer the status of
each Milestone. In the event that Seller anticipates that it will not achieve
any Milestone by the date set forth in Appendix B, Seller shall, in its
weekly report to Buyer, notify Buyer of any anticipated delay in achieving a
Milestone, state the basis for such delay, outline the steps that Seller is
taking to address the delay, and propose a revised date for achievement of the
Milestone.

 

Section 3.5            Liquidated
Damages.

 

(a)           If Seller fails to achieve
Commercial Operation of the Facility by the Guaranteed Commercial Operation
Date, Seller shall pay liquidated damages to Buyer in an amount equal to $5,000
per day for the first thirty (30) days, and $19,375 per day thereafter, up to a
maximum of $4,800,000 in the aggregate, for each day intervening between the
Guaranteed Commercial Operation Date for the Facility and the earlier of (x) the
Commercial Operation Date, and (y) the date, if any, on which this
Agreement is terminated by Buyer pursuant to Section 14.4(a).

 

(b)           On the Effective Date,
Seller shall cause First Wind, or an Affiliate of First Wind (other than
Seller) to  apply for and cause to
be issued to Buyer, as the beneficiary thereunder, and thereafter to maintain
and replace, until such time as Seller achieves Commercial Operation of the
Facility, a letter of credit in the amount of $4,800,000 issued by a Qualified
Issuer, substantially in the form attached hereto as Appendix M, or such
other form as is acceptable to Buyer, which shall secure Seller’s obligations
to pay liquidated damages under Section 3.5(a) (the “LD Security”), all in
accordance with the terms and provisions of the agreement referred to in Section 2.1(c).

 

29

 

(c)           Each Party agrees and
acknowledges that (i) the damages that Buyer would incur due to Seller’s
delay in achieving Commercial Operation by the Guaranteed Commercial Operation
Date would be difficult or impossible to predict with certainty, and (ii) it
is impractical and difficult to assess actual damages in the circumstances
stated and, therefore, the delay liquidated damages as agreed to by the Parties
and set forth herein are a fair and reasonable calculation of such damages.

 

Section 3.6            Additional
Capacity after Early Completion in the Early Completion Facility Configuration.  In the event that Seller shall achieve
Commercial Operation in the Early Completion Facility Configuration, then
Seller shall nevertheless have the right to install additional wind turbines
(for a maximum installed capacity of 102 MW) up to ninety (90) days following
the Commercial Operation Date.  Seller
shall have the right to modify the Facility configuration shown in Appendix
B to incorporate additional wind turbines installed and completed after
achievement of Commercial Operation of the Facility in the Early Completion
Facility Configuration by providing written notice to Buyer at the Commercial
Operation Date. Any such installation of additional wind turbines shall satisfy
all of the conditions set forth in the definition of Commercial Operation and
shall have no effect on the Prepayment Amount.

 

Section 3.7            Decommissioning
and Other Costs.  If Buyer
elects to purchase the Facility pursuant to this Agreement, (including pursuant
to Section 15.21), Buyer shall be responsible for all costs of
decommissioning or demolition of the Facility or any environmental or other
liability associated with the decommissioning or demolition without regard to
the timing or cause of the decommissioning or demolition.  If Buyer elects not to purchase the Facility
pursuant to this Agreement, Buyer shall not be responsible for any costs of
decommissioning or demolition of the Facility or any environmental or other
liability associated with the decommissioning or demolition.

 

ARTICLE IV

POINT OF DELIVERY AND INTERCONNECTION AGREEMENT

 

Section 4.1            Point of
Delivery. Seller shall deliver the Facility Energy to Buyer,
and Buyer, or its designee, shall receive such Facility Energy from Seller,
under this Agreement at the Point of Delivery. Seller will be responsible for
all losses to the Point of Delivery. Buyer will be responsible for all losses
from the Point of Delivery.

 

Section 4.2
           Interconnection Agreement. Intermountain Power Agency
and Milford I have entered into an interconnection agreement that defines the
equipment to be installed at the Point of Delivery to interconnect the Facility
at the Point of Delivery thereof, and which provides Buyer with rights as a
third party beneficiary thereunder. 
Seller shall have received an assignment from Milford I of the
interconnection rights and ownership interests in interconnection facilities
necessary for the interconnection of the Facility at the Point of Delivery and
shall enter into an Interconnection Agreement with Intermountain Power Agency
and/or an amended Interconnection Agreement among Milford I and Intermountain
Power Agency for the interconnection of the Facility to the Point of Delivery
(the “Interconnection
Agreement”) which shall provide Buyer with rights as a third
party beneficiary thereunder as may be reasonably requested by Buyer. In
addition, Seller shall provide evidence satisfactory to Buyer of the consent
and release by or on behalf of the lenders providing financing to Milford I, if

 

30

 

applicable, for the Milford
Wind Phase I Facility of the transfer by Milford I to Seller of the rights,
title and interests under the Interconnection Agreement which are necessary for
the Facility and the Related Interests and Rights which rights, title and
interests were transferred and assigned as security by Milford I to such
lenders.

 

Section 4.3            Transmission
Service Agreement. Seller shall, at Seller’s sole cost and expense,
arrange transmission service, pursuant to the applicable OATTs, which would
enable Seller to sell Facility Energy  to
other parties during any period as described in Section 7.4.

 

ARTICLE V

OPERATION AND MAINTENANCE OF THE FACILITY

 

Section 5.1            Compliance
with Electrical Service Requirements.  Seller shall, at its sole expense, operate
and maintain the Facility: (i) in accordance with Prudent Utility Practices,
the requirements of this Agreement, all applicable Requirements of Law, the
requirements of applicable manufacturer’s and operator’s specifications and,
using commercially reasonable efforts to comply with any published
recommendations of the manufacturers and suppliers of the wind turbines and
other major components of the Facility; (ii) with due regard for the safety,
security and reliability of the interconnection facilities, Transmission Line
and Transmission System and in accordance with the Buyer’s system protection
design requirements, attached hereto as Appendix P, and (iii) in a
manner that is reasonably likely to maximize the output of Energy from the
Facility and result in a useful life for the Facility of not less than twenty
(20) years.

 

Section 5.2            General
Operational Requirements. In addition to the requirements set forth
in Section 5.1 and elsewhere in this Agreement, Seller shall, at
all times employ or cause to be employed qualified and trained personnel for
managing, operating and maintaining the Facility and for coordinating with
Buyer and Buyer’s Agent. Seller shall ensure that necessary personnel are
available on-site or on-call twenty-four (24) hours per day during the Delivery
Term. The Facility shall be operated during the Delivery Term by an Affiliate
of Seller, by the party listed on Appendix N or such other Person as
Buyer shall approve in the exercise of its reasonable discretion. For the
avoidance of doubt, in no event will the operation of the Facility by a third
party, nor shall Buyer’s approval of any third party operator, relieve Seller
of any of its obligations hereunder.

 

Section 5.3            Operation
and Maintenance Plan. Seller shall devise and implement a plan of
inspection, maintenance, and repair for the Facility and the components thereof
in order to maintain such equipment in accordance with Prudent Utility
Practices, and shall keep records with respect to inspections, maintenance, and
repairs thereto. The aforementioned plan and all records of such activities
shall be available for inspection by Buyer during Seller’s regular business
hours upon reasonable notice.

 

Section 5.4            Taxes. Commencing on
the Prepayment Date, Buyer will be responsible for, and will reimburse Seller
if paid by Seller, lawful state and local taxes assessed within the State of
Utah, which are directly associated with the Facility or the delivery or sale
of Energy or Environmental Attributes, if any, including all property taxes or
payments in lieu of property taxes directly associated with the Facility and
excluding income, payroll, and sales taxes (other

 

31

 

than sales taxes directly
imposed on the delivery or sale of Energy or Environmental Attributes, if any)
(“Taxes”).
To the extent reasonably able to do so, either Party, upon written request of
the other, shall provide a certificate of exemption or other reasonably
satisfactory evidence of exemption if either Party is exempt from any Taxes,
and shall use all reasonable efforts to obtain or maintain, or to enable the
other Party to obtain or maintain, any exemption from or reduction of any
Taxes, whether currently available or becoming available in the future. Seller
will pay all lawful Taxes and will use reasonable efforts to minimize Taxes,
and will consult with Buyer on any negotiations Seller may undertake with
governmental authorities responsible for imposing Taxes. Promptly following its
payment of any Taxes, Seller shall provide Buyer with copies of receipts or
other evidence of the payment of such Taxes. Seller shall also promptly provide
to Buyer copies of all notices, correspondence or other items (including,
without limitation, written reports on any verbal exchanges with the relevant
taxing authorities) to the extent relating to Taxes, and shall afford Buyer a
reasonable opportunity to participate in any discussions or other
communications with any taxing authority relating to Taxes. To the extent it is
legally able to do so, Seller will follow the written instructions of Buyer
with respect to the negotiation, reporting, payment and contest (and shall
permit Buyer to conduct such contest, to the extent it is legally able to do
so) of any Taxes for which Seller is liable hereunder.  Seller shall promptly pay to Buyer the amount
of any refunds or other credits against any Taxes or other economic benefits
which Seller receives or to which it is entitled with respect to any Taxes for
which Buyer is responsible hereunder. Without limiting the generality of the
foregoing, the Parties agree that, if beneficial to the efforts of either Party
to obtain or maintain any exemption from or reduction of any Taxes, whether
currently available or becoming available in the future, the Parties will
cooperate to restructure the transactions contemplated by this Agreement so as
to enable either Party to obtain or maintain such exemption or reduction, as
the case may be, provided, however, that any such restructuring
shall not affect adversely the economic consequences to either Party. Buyer
shall have no obligations with to respect to any Taxes to the extent such Taxes
(1) are attributable to any period prior to the Commercial Operation Date,
or following the expiration or termination of this Agreement in accordance with
the terms hereof, (2) are imposed as a result of the gross negligence or
willful misconduct by the Seller, the breach by the Seller of any of its
obligations under this Agreement, any Ancillary Document or any related
transaction document, (3) are imposed as a result of any transfers by
Seller of any interest in the Facility, this Agreement or any transaction
contemplated hereby or related hereto (except to the extent resulting from a
breach by Buyer if its obligations under this Agreement).

 

Section 5.5            Environmental
Credits.  Seller shall, if applicable,
obtain in its own name and at its own expense any and all pollution or
environmental credits or offsets necessary to operate the Facility in
compliance with the Requirements of Law.

 

Section 5.6
           Scheduling of Energy and Scheduled Outages.  The Authorized Representatives of the Buyer
and Seller shall, as soon as reasonably practicable following the Effective
Date, and in any event prior to the Commercial Operation Date, mutually develop
forecasting and Scheduling procedures which may be modified, from time to time,
by written agreement of both Authorized Representatives in order to comply with
all applicable requirements, including those of the Transmission Provider,
CAISO, WECC, and any balancing authority. 
The Authorized Representatives shall promptly cooperate with respect to
any reasonably necessary and appropriate modifications to such forecasting or
scheduling procedures.

 

32

 

(a)           Seller or Seller’s designee
shall be responsible for Scheduling the forecast of Energy to the Point of
Delivery during the Delivery Term in accordance with the dispatch and
Scheduling procedures that may be updated from time to time by Buyer or Buyer’s
Agent. Seller shall submit schedules, and any updates to such schedules, to
Buyer or Buyer’s Agent designated by Buyer based on the most current forecast
of Energy.  All generation scheduling and
Transmission Services shall be performed in accordance with the applicable
NERC, CAISO, and WECC operating policies, criteria, and any other applicable
guidelines. Seller shall also fulfill the contractual, metering and
interconnection requirements set forth in this Agreement, so as to be able to
deliver Energy to the Point of Delivery.

 

(b)           Following the Commercial
Operation Date, no later than forty-five (45) days before the beginning of each
calendar year, Seller or Seller’s designee shall provide, or cause to be
provided, a non-binding forecast of each month’s average-day deliveries of
Energy, by hour, for the following eighteen (18) months.

 

(c)           Following the Commercial
Operation Date, ten (10) Business Days before the beginning of each month,
Seller or Seller’s designee shall provide, or cause to be provided, a
non-binding forecast of each day’s average deliveries of Energy, by hour, for
the following month.

 

(d)           Following the Commercial
Operation Date, Seller or Seller’s designee shall cause the Facility’s
Scheduling coordinator to provide Buyer, Buyer’s Agent, Buyer’s real time
operators, and Buyers designated Scheduling representatives:

 

(1)           by 5:30 AM
Pacific Prevailing Time on the Business Day immediately preceding the date of
delivery of Energy, with a copy of a non-binding hourly forecast of deliveries
of Energy for each hour of the immediately succeeding day.  Any forecast provided a day prior to any
non-Business Day shall include a forecast for that non-Business Day, each
succeeding non-Business Day, and the next Business Day. Seller shall provide
Buyer, or Buyer’s Agent, with a copy of any and all updates to such forecast
indicating a change in forecasted Energy from the then-current forecast. Daily
and hourly scheduling with the CAISO and the WECC shall be performed in
accordance with Scheduling procedures mutually agreed upon by Buyer and the
applicable Scheduling representatives of Seller prior to the date on which
Seller anticipates to commence the delivery of Start-up and Test Energy.

 

(2)           by 12:00 p.m.
on the normal Business Day prior to each pre-scheduling day as identified in
the WECC prescheduling calendar, via email, with day-ahead pre-schedules for
each of the succeeding twenty-four (24) hours in the form of an excel
spreadsheet. In order to allow Buyer to make schedule changes in conformity
with the CAISO Scheduling deadline, Seller shall notify Buyer or Buyer’s Agent
via telephone of any hourly changes due to a change in unit availability or an
outage no later than one-hundred five (105) minutes (one (1) hour and
forty-five (45) minutes) prior to the start of such scheduling hour. Seller
shall follow up with Buyer via email within thirty (30) minutes of placing the
telephone call in order to confirm the hourly change and to provide Buyer with
an explanation for the change; and

 

33

 

(3)                with
continuously updated non-binding hourly forecasts of deliveries of Energy for
each hour of the succeeding twenty (24)-hour period, in either electronic
format, via an internet website accessible to Buyer, Buyer’s Agent, Buyer’s
real time operators, and Buyers designated Scheduling representatives, or via
email in the form of an excel spreadsheet (or any combination thereof),
transmitted on an hourly basis.  Seller
shall attempt to optimize the estimates for such time period two (2) hours
prior to such forecasts.

 

(e)           Following the Commercial
Operation Date, Buyer and Seller shall cooperate to minimize Scheduled Outages
during certain consecutive or nonconsecutive weeks of each Contract Year (not
to exceed twelve (12) weeks per Contract Year) specified by Buyer (the “Major Maintenance Blockout”),
but in accordance with Prudent Utility Practices. No later than one hundred
twenty (120) days prior to the Commercial Operation Date and the commencement
of each Contract Year thereafter, Buyer shall provide Seller with its specified
Major Maintenance Blockout. Seller shall attempt to minimize its Scheduled
Outages during the Major Maintenance Blockout consistent with Prudent Utility
Practices. No later than sixty (60) days prior to the Commercial Operation Date,
and on each January 1 thereafter, Seller shall provide Buyer, or Buyer’s
Agent as designated by Buyer, with a non-binding written projection of all
Scheduled Outages for the succeeding three (3) years (the “Scheduled Outage Projection”),
reflecting a minimized schedule of scheduled maintenance during the Major
Maintenance Blockout.  In addition,
Seller shall cooperate in good faith with Buyer’s maintenance scheduling
requests consistent with Prudent Utility Practices.  The Scheduled Outage Projection shall include
information concerning all projected Scheduled Outages during such period,
including (i) the anticipated start and end dates of each Scheduled Outage; (ii)
a description of the maintenance and/or repair work to be performed during the
Scheduled Outage; and (iii) the anticipated MW capacity, if any, during the
Scheduled Outage. Seller shall notify Buyer, or Buyer’s Agent, of any change in
the Scheduled Outage Projection as soon as practicable, but in no event later
than thirty (30) days prior to the originally scheduled date of the Scheduled
Outage. Seller will use commercially reasonable efforts to accommodate
reasonable requests of Buyer with respect to the timing of Scheduled Outages
and Seller will, to the extent feasible and consistent with Prudent Utility
Practices, and except when such Scheduled Outages would overlap with the Major
Maintenance Blockout, arrange for Scheduled Outages to occur between October 1
and May 1 of each year and coincident with planned transmission outages.
In the event of a System Emergency, Seller shall make all reasonable efforts to
reschedule any Scheduled Outage previously scheduled to occur during the System
Emergency.

 

(f)            In the event of a Forced
Outage affecting at least ten percent (10%) of the installed capacity of the
Facility, to the extent practicable, Seller shall notify Buyer, or Buyer’s Agent,
within two (2) hours of the Forced Outage and provide detailed information
concerning the Forced Outage, including (i) the start and anticipated end dates
of the Forced Outage; (ii) a description of the cause of the Forced Outage; (iii)
a description of the maintenance and/or repair work to be performed during the
Forced Outage; and (iv) the anticipated MW capacity, if any, during the Forced
Outage. Seller shall take all reasonable measures and exercise commercially
reasonable efforts to avoid Forced Outages and to limit the duration and extent
of any such outages.

 

34

 

(g)           Seller shall reduce
deliveries of Energy for curtailments required by Buyer (i) due to a
System Emergency, (other than due to a Force Majeure event as set forth in (iii)
below), (ii) due to system improvements, curtailments and/or scheduled and
unscheduled repairs or maintenance on Buyer’s side of the Point of Delivery,
(other than due a Force Majeure event as set forth in (iii) below) that prevent
it from accepting Energy at the Point of Delivery, or (iii) due to an
event of Force Majeure on Buyer’s side of the Point of Delivery, that prevents
it from accepting Energy at the Point of Delivery, or (iv) after December 31,
2010, if the STS Upgrade has not been completed and the Interim Energy exceeds
the Maximum Interim Energy Amount. Seller shall provide the capability to
implement curtailments and adjust curtailment amounts in real-time by means of
setpoints received from the supervisory control and data acquisition (“SCADA”)
system of Buyer or Buyer’s Agent. During the Agreement Term, the Parties shall
reasonably estimate the amount of such curtailed Energy and Seller shall be
credited for all curtailed Energy under subsections (i) and (ii) of this Section 5.6(g) that
would have been realized had the curtailment not occurred in accordance with
this Section 5.6(g); and for the avoidance of doubt, Seller shall not
be credited for Energy that was curtailed under subsection (iii) of this Section 5.6(g).
Curtailed Energy under subsections (i) and (ii) of this Section 5.6(g) in
any Contract Year shall be deemed Delivered Energy for purposes of determining
Delivered Guaranteed Generation until the Guaranteed Annual Quantity for such
Contract Year has been achieved (“Deemed Delivered Prepaid Energy”) and
thereafter, for such Contract Year, shall be deemed Delivered Excess Energy (“Deemed Delivered Excess Energy”).  Curtailed Energy under Subsections (i) and
(ii) of this Section 5.6(g) prior to the Commercial
Operation Date shall be deemed delivered Startup and Test Energy (“Deemed Delivered Startup and Test
Energy”) and, following the Commercial Operation Date and prior
to the Prepayment Date curtailed Interim Energy under Subsections (i), (ii) and
(iv) shall be deemed delivered Interim Energy (“Deemed Delivered Interim Energy”),
as applicable.  For the avoidance of
doubt, the Parties agree that: (1) prior to the earlier of the completion
of the STS Upgrade or December 31, 2010, Seller shall not deliver Interim
Energy in an amount that exceeds the Maximum Interim Energy Amount, and (2) for
the period between December 31, 2010, and the Prepayment Date, if any Interim
Energy is curtailed pursuant to subsection (iv), such curtailed Energy shall be
Deemed Delivered Interim Energy.  Subject
to this Section, Buyer shall pay Seller for such Deemed Delivered Excess
Energy, at the Excess Energy Price then in effect, for such Deemed Delivered
Startup and Test Energy at the price for Startup and Test Energy set forth in
Appendix A, and for such Deemed Delivered Interim Energy at the Interim Energy
Rate.  During any period of curtailment
under subsections (i), (ii) or (iv) of this Section 5.6(g), Seller
shall use reasonable commercial efforts to sell such curtailed Energy (but not
the Environmental Attributes associated with such curtailed Energy) to third
parties; provided that (A) Seller shall remit to Buyer any net
proceeds resulting from the sale of Deemed Delivered Prepaid Energy and such
proceeds shall be the property of Buyer, (B) if such Energy is sold to
third parties, Seller shall deliver the Environmental Attributes to Buyer and
Buyer shall pay Seller for such Environmental Attributes in accordance with Section 12.1(a)(5);
and (C) any proceeds from the sale of Deemed Delivered Excess Energy,
Deemed Delivered Startup and Test Energy or Deemed Delivered Interim Energy to
a third party purchaser shall be the property of Seller and Buyer shall have no
obligation to pay Seller for such Deemed Delivered Excess Energy, Deemed
Delivered Startup and Test Energy or Deemed Delivered Interim Energy.  For the avoidance of doubt, the provisions of
this Section 5.6(g) shall not apply to curtailments resulting
from a Force Majeure event preventing Seller from delivering Energy from the
Facility as described in Section 15.6(a).

 

35

 

Seller shall install
sufficient measuring equipment at the Facility to collect data necessary to
reasonably determine the amount of Deemed Delivered Prepaid Energy, Deemed
Delivered Excess Energy, Deemed Delivered Startup and Test Energy or Deemed
Delivered Interim Energy.  Seller shall
install sufficient meteorological towers around the Facility Generating
Premises or in conjunction with the wind turbines comprising the Facility to
provide the capability of measuring and recording representative wind data
twenty-four (24) hours per day, which wind data, in conjunction with actual
wind turbine availability and capability, shall be used to calculate the Deemed
Delivered Prepaid Energy, Deemed Delivered Excess Energy, Deemed Delivered
Startup and Test Energy and Deemed Delivered Interim Energy.

 

ARTICLE VI

COMPLIANCE DURING CONSTRUCTION AND OPERATION PERIOD

 

Section 6.1            In General.

 

(a)           The
Facility.  Seller
warrants that it will perform, or cause to be performed, all engineering,
design and construction in a good and workmanlike manner and in material
compliance with applicable standards, Prudent Utility Practice, all applicable Requirements
of Law, and Seller’s Quality Assurance Program. Seller warrants that, as of the
Commercial Operation Date, and, if applicable, the date on which any remaining
turbines achieve Commercial Operation under Section 3.6: (i) the
Facility, its engineering, design and construction, its components and related
work, shall be free from material defects caused by errors or omissions in
design, engineering, and construction and (ii) the Facility will comply in
all material respects with the requirements of this Agreement, applicable
standards, reports, studies, Permits, and Requirements of Law. Seller also
warrants that throughout the Agreement Term it will monitor the operation and
maintenance of the Facility and that said operation and maintenance is, and
will be, in material compliance with all applicable standards, reports,
studies, and Permits, Prudent Utility Practices, Requirements of Law applicable
to the Facility, Seller’s Quality Assurance Program, and other provisions of
this Agreement. Without limiting the foregoing, Seller shall promptly repair
and/or replace, consistent with Prudent Utility Practice, any component of the
Facility that may be damaged or destroyed or otherwise not operating properly.
Seller shall, subject to Seller’s reasonable judgment consistent with Prudent Utility
Practices, exercise commercially reasonable efforts to undertake all published,
recommended or required updates or modifications from manufacturers or suppliers
to the Facility, its equipment and materials, including procedures, programming
and software in a timely manner.  Seller
shall, at its expense, maintain throughout the Agreement Term an inventory of
spare parts for the Facility in a quantity that is consistent with Prudent
Utility Practice.

 

(b)           Buyer’s
Right To Monitor In General. Buyer shall have the right
and Seller shall permit Buyer and its representatives, advisors, engineers and
consultants to observe, inspect and monitor, upon reasonable notice to Seller,
and during normal working hours and subject to Seller’s or its subcontractor’s
reasonable requirements and procedures in respect of confidentiality (subject
to the provisions set forth in Section 15.20) and safety, all
operations and activities at the Facility, including the performance of the
contractor(s) under the construction contract(s) pertaining to the
Facility, the design, engineering, procurement and installation of the
equipment, start up and testing, and Commercial Operation.

 

36

 

(c)           Startup and
Testing. Prior to the Commercial Operation Date, and as a condition precedent
to the achievement of the Commercial Operation Date, and during normal working
hours and subject to Seller’s or its subcontractor’s reasonable requirements
and procedures in respect of confidentiality (subject to the provisions set
forth in Section 15.20) and safety, Buyer shall have the right to:

 

(1)                review and
monitor the contractors’ performance and achievement of all initial performance
tests and all other tests required under the Facility construction contracts
that must be performed in order to achieve completion, with respect to which
Seller shall provide to Buyer a schedule for the performance of such tests at
least two (2) Business Days before such tests are scheduled to begin; and

 

(2)                be present to
witness such initial performance tests and review the results thereof; and

 

(3)                upon notice to
Seller, perform such detailed examinations, inspections, quality surveillance
and tests as, in the judgment of Buyer, are appropriate and advisable to
determine that the Facility equipment and all ancillary components of the
Facility have been installed in accordance with this Agreement and the Facility
construction contracts, all applicable standards, Prudent Utility Practices,
Requirements of Law, the Quality Assurance Program and the Milestones, provided
that such examinations, inspections, quality surveillance and tests shall not
interfere with the operations of the Facility or Seller’s or its subcontractors’
work.

 

(d)           Access and Cooperation. Seller shall,
and shall cause each of its subcontractors to:

 

(1)                grant to Buyer
such rights of access to the Facility during normal working hours and subject
to Seller’s subcontractor’s reasonable requirements and procedures in respect
of confidentiality (subject to the provisions set forth in Section 15.20)
and safety, and to inspect, make notes about and copy (and make such copies and
notes available to Buyer) all documents, drawings, plans, specifications,
permits, test results and information as Buyer may reasonably request;

 

(2)                make the
personnel of, and consultants to, the contractor(s) and Seller available
to Buyer and its agents, representatives and consultants at reasonable times
and with prior notice for purpose of discussing any aspect of the Facility or
the development, engineering, construction, installation, testing or
performance thereof; and

 

(3)                otherwise
cooperate in all reasonable respects with Buyer and its Authorized
Representatives, advisors, engineers and consultants in order to allow Buyer to
exercise its rights under this Section 6.1.

 

Section 6.2            Compliance
With Standards. Seller shall cause the Facility and all parts
thereof to be designed, constructed, tested, operated and maintained to meet
all of the requirements of this Agreement, all applicable requirements of the
latest revision of the ASTM,

 

37

 

ASME, AWS, EPA, EEI, IEEE, ISA,
National Electrical Code, National Electric Safety Code, OSHA, as applicable,
Uniform Building Code, Uniform Plumbing Code, and the applicable local County
Fire Department Standards of the applicable county, and other codes and
standards and operations and maintenance requirements applicable to the
services, equipment, and work as generally shown in this Agreement, as well as
all applicable Requirements of Law not specifically mentioned in this Section.

 

Section 6.3            Quality
Assurance Program. Seller agrees to maintain and comply with a
written quality assurance policy (“Quality Assurance Program”) attached hereto
as Appendix J, and Seller shall cause all work performed on or in
connection with the Facility to materially comply with said Quality Assurance
Program.

 

Section 6.4            Effect of
Review by Buyer.  Any review
by Buyer of the design, construction, engineering, operation or maintenance of
the Facility is solely for the information of Buyer. Buyer shall have no
obligation to share the results of any such review with Seller, nor shall any
such review or the results thereof (whether or not the results are shared with
Seller) nor any failure to conduct any such review relieve Seller from any of
its obligations under this Agreement. By making any such review, Buyer makes no
representation as to the economic and technical feasibility, operational
capability or reliability of the Facility. 
Seller shall in no way represent to any third party that any such review
by Buyer of the Facility, including, but not limited to, any review of the design,
construction, operation or maintenance of the Facility by Buyer, is a
representation by Buyer as to the economic and technical feasibility,
operational capability or reliability of the Facility.  Seller is solely responsible for the economic
and technical feasibility, operational capability and reliability thereof.

 

Section 6.5            Preservation
of the Facility.  Except as
expressly permitted by this Agreement, Seller shall not sell or otherwise
dispose of, or create, incur, assume, or permit to exist any Lien (other than
the Permitted Encumbrances) on, any portion of the Facility, the Related
Interests and Rights, or any other property or assets which are necessary to
the operation, maintenance, and use of the Facility, without the prior written
approval of Buyer. Notwithstanding anything in this Agreement to the contrary,
Seller may secure its obligations under the Credit Agreement by granting a lien
on and security interest in and to the Facility under a deed of trust and
related documents, which shall include an assignment of Seller’s rights and
interests under the Agreement; provided that such deed of trust and
related documents shall be subject to, and Seller, Buyer and the Facility
Lenders shall enter into and comply with, the terms and provisions of a Consent
and Agreement in substantially the form set forth in Appendix O to the
Agreement.

 

ARTICLE VII

PURCHASE AND SALE OF POWER

 

Section 7.1            Purchases
by Buyer.

 

(a)           The Facility shall have a
Contract Capacity not to exceed 102 MW, with an expected capacity at the Point
of Delivery of not more than 100.5 MW.

 

38

 

(b)           Prior to the earlier of the
completion of the STS Upgrade or December 31, 2010, Seller shall not
deliver any Interim Energy in an amount greater than the Maximum Interim Energy
Amount.

 

(c)           Prior to the Commercial
Operation Date, Seller shall sell and deliver, and Buyer shall purchase and
accept the Startup and Test Energy at the rate for such Energy set forth in
paragraph 2 of the payment schedule set forth in Appendix A.

 

(d)           After Commercial Operation
and during the Interim Period, Seller shall sell and deliver, and Buyer shall
purchase and accept the Interim Energy at the Interim Energy Rate set forth in
paragraph 5 of the payment schedule set forth in Appendix A.

 

(e)           At least ninety (90) days
prior to the anticipated Commercial Operation Date, Seller shall deliver to
Buyer a written declaration of the planned Contract Capacity of the Facility,
the planned capacity at the Point of Delivery, and the planned Guaranteed
Generation; and, if Commercial Operation is expected to be achieved in the
Early Completion Facility Configuration, an indication of whether Seller
anticipates installing additional wind turbines.

 

(f)            The Guaranteed Generation shall
be calculated based on a written certification to be furnished to Buyer and
prepared by AWS Truewind, LLC, or a qualified wind consultant to be selected by
Seller and subject to Buyer’s approval, of the P99 Energy which shall be based
on the Contract Capacity as of the Commercial Operation Date, less Station
Usage Energy and transmission losses from the Facility to the Point of
Delivery, multiplied by twenty (20) years; provided, however,
that the Guaranteed Generation shall in no event be based on an amount of
planned Contract Capacity greater than the Early Completion Facility
Configuration consisting of the actual Contract Capacity installed on the
Commercial Operation Date.

 

(g)           On a date that is the later
of: (i) one hundred twenty (120) days following the Commercial Operation
Date and (ii) January 1, 2011, Buyer shall pay to Seller the Prepayment
Amount set forth in Appendix I for the Guaranteed Generation, as
calculated pursuant to Section 7.1(f); provided, that all of
the conditions in Section 7.2 have been met or will be met
concurrently with the making of the Prepayment Amount.

 

(h)           Following the Prepayment
Date, during each Contract Year, Seller shall make available, schedule and
deliver, and Buyer shall accept and purchase (for which the Prepayment Amount
is Seller’s consideration), the Guaranteed Annual Quantity for such Contract  Year from the Facility during the Delivery
Term.

 

(i)            For all Excess Energy
delivered in each Contract Year, Buyer shall pay Seller the Excess Energy Price
in accordance with paragraph 1 of the payment schedule set forth in Appendix
A.

 

(j)            For all Delivered Energy
following the Commercial Operation Date, Buyer shall pay Seller the
Environmental Attributes Payment in accordance with paragraph 3 of the payment
schedule set forth in Appendix A.

 

(k)           Commencing on the Prepayment
Date, except as otherwise provided in Appendix A, Buyer shall reimburse
Seller for all Taxes and Operating Insurance premiums

 

39

 

following the Prepayment
Date, pursuant to Appendix A. Such reimbursement amounts will be
estimated by Seller prior to the year of payment, divided by 12, and paid
monthly by Buyer. Any overpayment or underpayment by Buyer of reimbursement
amounts for such actual Taxes and Operating Insurance premiums paid by Seller
will be reconciled through an adjustment to the invoice sent to Buyer in the
month following the applicable year of payment.

 

Section 7.2            Conditions
Precedent to Prepayment.

 

Notwithstanding anything to
the contrary in this Agreement, Buyer’s obligation to pay the Prepayment Amount
shall be conditioned upon satisfaction of each of the following conditions:

 

(a)           achievement of Commercial
Operation by the Commercial Operation Date;

 

(b)           the deposit in escrow, with
escrow instructions that have been approved by Buyer, of a request for
reconveyance executed by the Facility Lender providing construction or other
financing for the Facility of its lien or liens on the Facility and the Related
Interests and Rights;

 

(c)           the receipt by Buyer of
Seller’s title insurance policy as to the Facility Premises that is reasonably
satisfactory to Buyer, provided, however, that said title
insurance policy shall not be required for lands owned by USBLM or the State of
Utah;

 

(d)           Buyer obtaining the Security
Interest, which Security Interest shall be in full force and effect, and which
shall be recorded and filed in the applicable counties;

 

(e)           the receipt by Buyer of the
Non-Consolidation Opinion;

 

(f)            the receipt by Buyer of an
executed original of a written legal opinion of legal counsel reasonably
satisfactory to Buyer, dated as of the Prepayment Date and addressed to Buyer,
concerning the Security Interest and related matters in form and substance
satisfactory to Buyer and its counsel;

 

(g)           the receipt by Buyer of the
Performance Security;

 

(h)           there being no uncured
Default then existing under this Agreement by Seller and there being no fact or
circumstance then existing that with the giving of notice or passing of time
could give rise to a Default under this Agreement;

 

(i)            all representations and
warranties of Seller set forth in Section 13.2 being true and
accurate in all material respects as of the Prepayment Date;

 

(j)            no circumstance existing
that has, had or could reasonably be expected to have a Material Adverse Effect
on the Facility;

 

(k)           the Leases and Property
Agreements and all other agreements required to have been executed and
delivered to Buyer in order to achieve Commercial Operation shall be in

 

40

 

full force and effect and no
material breach or default thereunder having occurred and be continuing, nor
shall there exist any facts or circumstances that with the passing of time
could give rise to a breach or default under such agreements;

 

(l)            the receipt by Buyer of
evidence reasonably satisfactory to Buyer of the consent to, and release by or
on behalf of, the lenders providing financing to Milford I for the Milford Wind
Phase I Facility of the transfer by Milford I to Seller of the rights, title
and interests held by Milford I in the (i) real and personal property
under the Leases and Property Agreements necessary for the Facility and Related
Interests and Rights; (ii) Facility Common Facilities Interest; and (iii) Facility
Transmission Line Interests; and

 

(m)          the receipt by Buyer of
evidence satisfactory to Buyer that any indebtedness or other obligations
permitted under (k) or (n) of the definition of ‘Special Purpose Entity” have
been fully performed and discharged in their entirety.

 

Section 7.3            Performance
Security. On or prior to the Prepayment Date, Seller shall
cause First Wind, or an Affiliate of First Wind (other than Seller), to apply
for and cause to be issued to Buyer, as the beneficiary thereunder, and thereafter
to  maintain and to replace, a
letter of credit in the amount of $5,000,000 issued by a Qualified Issuer
substantially in the form attached hereto as Appendix M, or such other
form as is acceptable to Buyer, which shall secure Seller’s performance under
this Agreement, (the “Performance
Security”), all in accordance with the terms and provisions of
the agreement referred to in Section 2.1(e).

 

Section 7.4            Energy to
Come Exclusively from Facility; Dedicated Facility; Sales to Third Parties.  Except as provided in Article X,
in no event shall Seller have the right to procure energy from sources other
than the Facility for sale and delivery pursuant to this Agreement.  During the Delivery Term and subject to the
terms and conditions of this Agreement, all of the Energy from the Facility
shall be dedicated to the Buyer; provided that Seller may sell to any
third-party purchaser (i) Energy from the Facility sold as provided under Section 5.6(g),
(ii) Facility Energy, the delivery of which is curtailed due to a Force
Majeure event that prevents Buyer from receiving Energy at the Point of
Delivery, or (iii) if a Buyer Default has occurred and is continuing, the
Facility Energy that is not accepted by Buyer at the Point of Delivery, provided,
that Seller shall remit to Buyer any net proceeds resulting from the sale of
Deemed Delivered Prepaid Energy and such proceeds shall be the property of
Buyer and any proceeds resulting from the sale of other Energy from the
Facility as provided in this Section 7.4 to a third-party purchaser
shall be the property of Seller.

 

ARTICLE VIII

TRANSMISSION AND SCHEDULING; TITLE AND RISK OF LOSS

 

Section 8.1            In General. Seller shall
arrange and be responsible for any Transmission Services required to deliver
Energy to the Point of Delivery, and shall Schedule or arrange for Scheduling
services with its Transmission Providers, as needed, to so deliver the Energy
to the Point of Delivery. Buyer shall arrange and be responsible for
Transmission Services at and from the Point of Delivery, and shall Schedule or
arrange for Scheduling services with its Transmission Providers to receive
Energy at the Point of Delivery. Each Party shall designate an authorized
Scheduler to effect the Scheduling of all Energy.

 

41

 

Section 8.2            Costs. Seller shall
be responsible for any costs or charges imposed on or associated with the
delivery of Energy up to the Point of Delivery, including but not limited to
control area services, inadvertent energy flows, transmission losses and
charges relating to the transmission of Energy. 
Buyer shall be responsible for any costs or charges imposed on or
associated with the delivery of Energy at and from the Point of Delivery,
including but not limited to control area services, inadvertent energy flows,
transmission losses and charges relating to the transmission of Energy. In the
event Seller procures transmission to sell Energy to a third party, Seller
shall be responsible for any costs or charges associated therewith.

 

Section 8.3            Title; Risk
of Loss. As between the Parties, Seller shall be deemed to be in exclusive
control (and responsible for any damages or injury caused thereby) of all
Energy prior to the Point of Delivery, and Buyer shall be deemed to be in
exclusive control (and responsible for any damages or injury caused thereby) of
all Energy at and from the Point of Delivery. Seller warrants that it will
deliver all Energy and Environmental Attributes to Buyer free and clear of all
Liens created by any Person other than Buyer. Title to and risk of loss as to
all Energy and Environmental Attributes shall pass from Seller to Buyer at the
Point of Delivery.

 

ARTICLE IX

ENVIRONMENTAL ATTRIBUTES; EPS AND RPS COMPLIANCE

 

Section 9.1            Transfer of
Environmental Attributes.  For
and in consideration of Buyer entering into this Agreement, and in addition to
the agreement by Buyer and Seller to purchase and sell Energy on the terms and
conditions set forth herein, Seller shall transfer to Buyer, and Buyer shall
receive from Seller, all right, title, and interest in and to all Environmental
Attributes, free and clear of all Liens, whether now existing or acquired by
Seller or that hereafter come into existence or are acquired by Seller during
the Agreement Term, for all Delivered Energy and Replacement Energy.  Seller agrees to transfer and make such
Environmental Attributes available to Buyer immediately to the fullest extent
allowed by applicable law upon Seller’s production or acquisition of such
Environmental Attributes. Seller represents and covenants that it has not
assigned, transferred, conveyed, encumbered, sold or otherwise disposed of
(other than Liens on the proceeds of the Environmental Attributes in favor of
Facility Lender) and will not in the future assign, transfer, convey, encumber,
sell or otherwise dispose of all or any portion of such Environmental
Attributes to any Person other than Buyer or attempt to do any of the foregoing
with respect to any of the Environmental Attributes.

 

Section 9.2            Reporting
of Ownership of Environmental Attributes.  During the Agreement Term, Seller shall not
report to any Person that the Environmental Attributes granted hereunder to
Buyer belong to any Person other than Buyer, and Buyer may report under any
program that such Environmental Attributes purchased hereunder belong to it.

 

Section 9.3            Environmental
Attributes.  Upon Buyer’s
request, Seller shall take all actions and execute all documents or instruments
necessary under applicable law, bilateral arrangements or other voluntary Environmental
Attribute programs of any kind, as applicable, to maximize the attribution,
accrual, realization, generation, production, recognition and validation of
Environmental Attributes throughout the Agreement Term.

 

42

 

Section 9.4            Use of
Accounting System to Transfer Environmental Attributes. In
furtherance and not in limitation of Section 9.3, Seller shall use
WREGIS or any successor system to evidence the transfer of any Environmental
Attributes considered RECs under applicable law or any voluntary program (“WREGIS Certificates”),
associated with Facility Energy or Replacement Energy in accordance with WREGIS
reporting protocols, and as such shall register the Facility with WREGIS. After
the Facility is registered with WREGIS, at Buyer’s option, Seller shall (i) transfer
WREGIS Certificates using the Forward Certificate Transfer method, as described
in WREGIS Operating Rules, from Seller’s WREGIS account to up to three WREGIS
accounts, as designated by Buyer, or (ii) retire said WREGIS Certificates into
Seller’s WREGIS Retirement sub-account on behalf of Seller’s requirements (if
any); provided, however, that Seller must initially select to use
either option (i) or (ii) thirty (30) days prior to delivering any
Energy to the Point of Delivery, and, provided, further, if
option (i) is selected, Buyer may change to option (ii) at the
beginning of any calendar year during the Agreement Term upon thirty (30) days
advance written notice.  If option (ii) is
selected, then Buyer shall provide Seller the number and vintage of MWh of
WREGIS Certificates to be retired by providing written notice to Seller not
later than thirty (30) days prior to the desired retirement date. Seller shall
be responsible for the WREGIS expenses associated with registering the
Facility, maintaining its account, WREGIS Certificate issuance fees, and
transferring WREGIS Certificates to Buyer or Buyer’s Agent, or any other
designees, and Buyer shall be responsible for the WREGIS expenses associated
with maintaining its account, or the accounts of its designees, if any, and
subsequent transferring or retiring of WREGIS Certificates, or Seller’s fees
for the retirement of WREGIS Certificates on behalf of Buyer.  Forward Certificate Transfers will occur
monthly based on the certificate creation time-line established by the WREGIS
Operating Rules.  As of the Effective
Date, the certificate creation time line is established as not later than
ninety (90) days following the end of each month. For example, for MWhs
generated in January 2010, the certificates will be created in WREGIS not
later than April 30, 2010. Seller shall be responsible for, at its
expense, validating and disputing data with WREGIS prior to certificate
creation each month. In the event that WREGIS is not in operation, or WREGIS
does not track Seller’s transfer of WREGIS Certificates to Buyer, Buyer’s
Agent, or its designees for purposes of any RECs attributed, accrued, realized,
generated, produced, recognized or validated relative to the Facility Energy or
Replacement Energy, or Buyer chooses not to use WREGIS for any reason, Seller
shall document the production and transfer of RECs under this Agreement by
delivering to Buyer an attestation for the RECs produced by the Facility, or Replacement
Energy, measured in whole MWh, or by such other method as Buyer shall
designate.

 

Section 9.5            Further
Assurances.  If such
function is not already accomplished via WREGIS, Seller will document the
production of Environmental Attributes by delivering with each invoice to Buyer
an attestation for Environmental Attributes (i) produced by the Facility or (ii)
included with Replacement Energy for the preceding calendar month.  The form of attestation is set forth as Appendix
D.  At Buyer’s request, the Parties
shall execute all such documents and instruments and take such other action in
order to effect the transfer of the Environmental Attributes specified in this
Agreement to Buyer’s Agents as Buyer may reasonably request.  In the event of the promulgation of a scheme
involving Environmental Attributes administered by CAMD, upon notification by
CAMD that any transfers contemplated by this Agreement will not be recorded,
the Parties shall promptly cooperate in taking all

 

43

 

reasonable actions necessary
so that such transfer can be recorded. 
Each Party shall promptly give the other Party copies of all documents
it submits to CAMD to effectuate any transfers.

 

Section 9.6            RPS and EPS
Compliance.  Seller
warrants and guarantees that when complete, the Facility will be both RPS
Compliant and, if required by applicable Requirements of Law, EPS
Compliant.  From time to time and at any
time requested by Buyer, Seller will furnish to Buyer or Governmental
Authorities or other Persons designated by Buyer, all certificates and other
documentation reasonably requested by Buyer in order to assist Buyer in
qualifying the Facility as RPS Compliant and EPS Compliant, if required by
applicable Requirements of Law.

 

ARTICLE X

MAKEUP OF SHORTFALL ENERGY

 

Section 10.1         Makeup of
Shortfall.  If in any
Contract Year the amount of Delivered Energy is less than the Guaranteed Annual
Quantity for such Contract Year (such difference constituting for such Contract
Year, the “Shortfall
Energy”), then, subject to Section 10.2, Seller
shall remedy such shortfall by delivering Energy to the Point of Delivery,
including any associated Environmental Attributes, to Buyer in an amount equal
to the Shortfall Energy during the applicable Shortfall Make Up Period. The
make up period for such shortfall shall be (a) if the shortfall in such
Contract Year is equal to or greater than ten percent (10%) of the Guaranteed
Annual Quantity for such Contract Year, the next succeeding Contract Year
following the Contract Year in which a shortfall occurred (the “One Year Shortfall Make Up Period”),
provided, however, that Seller shall have an additional One Year
Shortfall Make Up Period to make up the shortfall if, at the end of the
original One Year Shortfall Make Up Period, the shortfall has been reduced to a
level less than ten percent (10%) of such Guaranteed Annual Quantity; and (b) if
the amount of Shortfall Energy in a Contract Year is less than ten percent
(10%) of the Guaranteed Annual Quantity for such Contract Year, the next
succeeding two (2) Contract Years following the Contract Year in which
such shortfall occurred (the “Two Year Shortfall Makeup Period”).  The One Year Shortfall Make Up Period may be
extended on a day-for-day basis for Force Majeure events, but in no event
longer than  one (1) Contract
Year following the end of the One Year Shortfall Make Up Period. Buyer shall
not be obligated to make any additional payment for any Energy provided to
Buyer to replace Shortfall Energy.

 

Section 10.2         No Excess
Energy During Shortfall Periods.  During any period in which there is Shortfall
Energy due to Buyer, all Energy that would otherwise be designated as Excess
Energy shall be provided by Seller to Buyer, including any associated
Environmental Attributes, and Buyer shall not be obligated to make any payment
to Seller for such Energy until the Shortfall Energy has been fully made up.

 

Section 10.3         Replacement
Energy.  If Seller fails to deliver any
Shortfall Energy by the end of the applicable Shortfall Make Up Period, Seller
shall provide to Buyer replacement energy at the Point of Delivery (or such
other point as mutually agreed to in writing by the Parties), to replace such
undelivered Shortfall Energy and shall provide Buyer with Environmental
Attributes comparable to those associated with the Energy produced by the
Facility (“Replacement
Energy”), within ninety (90)-days after the end of the
applicable Shortfall Make Up Period on a delivery schedule consistent with the
Facility’s historic

 

44

 

percentage of On Peak and
Off Peak Delivered Energy, or other delivery schedules as mutually agreed to by
the Parties, provided that such schedule shall not cause the Delivered
Energy to be delivered at a rate greater than 102 MW.  Buyer shall pay Seller the Environmental
Attribute payment in accordance with paragraph 3 of the payment schedule set
forth in Appendix A for all Environmental Attributes associated with the
Replacement Energy.  If Seller fails to
deliver Replacement Energy as described above then Buyer shall purchase
Replacement Energy and Seller shall reimburse Buyer for its costs of such
Replacement Energy, and Buyer shall promptly notify Seller of the costs
thereof.

 

Section 10.4         Application
of Shortfall Energy or Replacement Energy. In the event of shortfalls
in multiple Contract Years, any Shortfall Energy or Replacement Energy
delivered by Seller shall be applied in priority to the earliest outstanding
shortfalls hereunder until all shortfalls are satisfied.

 

ARTICLE XI

CAPACITY RIGHTS

 

Section 11.1         Purchase
and Sale of Capacity Rights.  For and in consideration of Buyer entering
into this Agreement, and in addition to the agreement by Buyer and Seller to
purchase and sell Facility Energy on the terms and conditions set forth herein,
Seller hereby transfers to Buyer, and Buyer hereby accepts from Seller, all of
the Capacity Rights. Buyer and Seller acknowledge and agree that the
consideration for the transfer of Capacity Rights is contained within the
relevant prices for Facility Energy.  In
no event shall Buyer have any obligation or liability whatsoever for any debt
pertaining to the Facility by virtue of Buyer’s ownership of the Capacity
Rights or otherwise.

 

Section 11.2         Representation
Regarding Ownership of Capacity Rights.  Seller represents and covenants that it has
not assigned, transferred, conveyed, encumbered, sold or otherwise disposed of
and will not in the future assign, transfer, convey, encumber, sell or
otherwise dispose of any of the Capacity Rights to any Person other than Buyer
or attempt to do any of the foregoing with respect to any of the Capacity
Rights. Seller shall not report to any Person that any of the Capacity Rights
belong to any Person other than Buyer. Buyer may, at its own risk and expense,
report to any Person that the Capacity Rights belong to it.

 

Section 11.3         Further
Assurances.  Seller
shall execute and deliver such necessary documents and instruments and take
such other action as Buyer may reasonably request to effect recognition and
transfer of the Capacity Rights to Buyer. Seller shall bear the costs
associated therewith.

 

ARTICLE XII

BILLING; PAYMENT; AUDITS; METERING; ATTESTATIONS

 

Section 12.1         Billing and
Payment. Billing and payment for the Energy purchases by Buyer under this
Agreement and for any other amounts due and payable by Buyer hereunder shall be
as follows:

 

(a)           On or before the tenth
(10th) day of the month following a month in which transactions occur
hereunder, Seller shall render one (1) invoice to Buyer showing the
following:

 

45

 

(1)                Delivered
Energy allocated to:

 

(2)                The Delivered
Energy to be counted toward the Guaranteed Annual Quantity for the applicable
Contract Year, and an accounting of new or made-up Shortfall Energy and/or
Replacement Energy.

 

(3)                Delivered
Excess Energy billed pursuant to Appendix A.

 

(4)                Any Startup and
Test Energy billed pursuant to Appendix A.

 

(5)                Environmental
Attributes billed pursuant to Appendix A based on Facility Metered Output
and, if applicable, Replacement Energy.

 

(6)                Interim Energy
delivered between the Commercial Operation Date and Prepayment Date, billed
pursuant to Appendix A.

 

(7)                Any
reimbursement to Seller for Taxes and Operating Insurance premiums, and
adjustments for actual Taxes and Operating Insurance premiums, pursuant to Section 7.1.

 

(8)                Any
reimbursement to Buyer for the purchase of Replacement Energy.

 

(9)                Any other
payments due to Buyer or to Seller under this Agreement, including amounts due
to Buyer in connection with third party sales of curtailed Energy under Section 5.6(g) or
Section 7.4.

 

(b)           Monthly invoices, to the
extent applicable, shall be based on meter readings, or if such readings are
unavailable, the best available data.

 

(c)           Monthly invoices shall be
sent to the address set forth in Appendix C or such other address as is
provided by Buyer in writing.

 

(d)           Buyer shall pay the amounts
set forth in each monthly invoice by wire transfer to the accounts designated
on the invoices rendered by Seller on or before thirtieth (30th) day after receipt by Buyer
of the applicable invoice. Bills or portions of bills which are not paid by the
due date shall thereafter accrue interest at the Interest Rate, from and
including the date payment was due until the date such payment is made.  Seller shall pay to Buyer any reimbursement
owed to Buyer as set forth in Section 12.1(a)(8) with respect
to any month at the time Seller submits its next monthly invoice to Buyer, but
in no event more than thirty (30) days after such payment is due.

 

(e)           Attestations of
Environmental Attribute transfers to Buyer shall accompany monthly invoices
pursuant to Section 9.1.

 

Section 12.2         Disputed
Invoices. In the event any portion of any bill is in
dispute, the undisputed amount shall be paid when due. The Party disputing a
payment shall promptly notify the other Party in writing of the basis for the
dispute.  Disputes shall be discussed by
the

 

46

 

Authorized Representatives,
who shall use reasonable efforts to amicably and promptly resolve the disputes,
and any failure to agree shall be subject to resolution in accordance with Section 15.3.
Upon resolution of any dispute, the required amount of payment or refund shall
be paid within ten (10) days after such determination, with interest
accrued at the Interest Rate from and including the due date until the date
such payment or refund is paid.

 

Section 12.3         Buyer’s
Right of Setoff. In addition to any right now or hereafter granted
under applicable law and not by way of limitation of any such rights, Buyer
shall have the right at any time or from time to time, without notice to Seller
or any other Person, any such notice being hereby expressly waived, to set off
against any amount due Seller from Buyer under this Agreement, any amount due
Buyer from Seller under this Agreement, including but not limited to any
amounts due because of breach of this Agreement or any other obligation and any
costs payable by Seller under Section 10.3 if and to the extent
paid in the first instance by Buyer.

 

Section 12.4         Records and
Audits.

 

(a)           Seller shall cause (or, with
respect to contracts entered into prior to the Effective Date, Seller shall use
reasonable efforts to cause) any subcontractors and suppliers providing
services or supplies that impact the calculation of the Taxes and Operating
Insurance premiums that will be paid by Buyer under this Agreement, (such
subcontractors or suppliers (“Subcontractors”) to maintain, and Seller shall itself
maintain, with respect to the foregoing, all records pertaining to the
management of this Agreement, related subcontracts, and performance of services
pursuant to this Agreement (including all billings, costs, metering, and
Environmental Attributes), in their original form, including but not limited
to, reports, documents, deliverables, employee time sheets, accounting
procedures and practices, records of financial transactions, and other
evidence, regardless of form (e.g., machine readable media such as disk, tape, etc.)
or type (e.g., databases, applications software, database management software,
utilities, etc.), sufficient to verify the determination of Taxes and
Operating Insurance and to properly reflect all costs claimed to have been
incurred and services performed pursuant to this Agreement. In addition, Seller
and its Subcontractors must maintain all records and documents necessary to
permit adequate evaluation of Seller’s Taxes and Operating Insurance premiums
paid hereunder by Buyer, along with the computations and projections used, and
Buyer and the Authorized Auditors shall have the right to discuss such records
with Seller’s officers and independent public accountants (and by this
provision Seller authorizes said accountants to discuss such billings and costs),
all at such times and as may be reasonably requested, and all such records
shall be retained, and shall be subject to examination and audit by the
Authorized Auditors, for a period of not less than four (4) years
following payment made by Buyer hereunder, or, if the payment is made in the
last year of the Delivery Term, no less than the four (4) years following
the expiration or termination date of this Agreement. Seller shall make said
records or, to the extent accepted by the Authorized Auditors, photographs,
micro-photographs, etc. or other authentic reproductions thereof,
available to the Authorized Auditors at Seller’s offices located at all
reasonable times and without charge.  The
Authorized Auditors will have the right to reproduce, photocopy, download,
transcribe, and the like any such records. 
Any information provided by Seller on machine-readable media shall be
provided in a format accessible and readable by the Authorized Auditors.  Seller shall not, however, be required to
furnish the Authorized Auditors with commonly available software. In addition,
Seller, its Subcontractors and the subcontractors of all agreements entered
into after the Effective Date and having a value

 

47

 

in excess of $25,000  (such subcontractors, “Major Subcontractors”)
shall be subject at any time with fourteen (14) calendar days prior written
notice to audits or examinations by Authorized Auditors to verify compliance
with all Agreement requirements relative to practices, methods, procedures,
performance, compensation, and documentation, and with respect to the
Subcontractors, to verify Taxes and Operating Insurance premiums. All such
records subject to audit or examination shall be retained by the Major
Subcontractor for a period of not less than four (4) years following the
payment by Seller to such Major Subcontractor. Examinations and audits will be
performed using generally accepted auditing practices and principles and
applicable Governmental Authority audit standards. If Seller utilizes or is
subject to FAR, Part 30 and 31, et seq.
accounting procedures, or a portion thereof, examinations and audits will
utilize such information.  To the extent
that the Authorized Auditor’s examination or audit reveals inaccurate, incomplete
or non-current records, or records are unavailable, the records shall be
considered defective.  Consistent with
standard auditing procedures, Seller will be provided fifteen (15) calendar
days to review the Authorized Auditor’s examination results or audit and
respond to Buyer’s prior to the examination’s or audit’s finalization and
public release. If the Authorized Auditor’s examination or audit indicates
Seller has been overpaid under a previous payment application, the identified
overpayment amount shall be paid by Seller to Buyer within thirty (30) calendar
days of notice to Seller of the identified overpayment. Seller shall
contractually require all Major Subcontractors to comply with the provisions of
this Section by inserting this Section 12.4 in each Major
Subcontractor contract and by contractually requiring each Major Subcontractor
to insert this Section 12.4 in any of its subcontract contracts
related to services under this Agreement. In addition, Seller and its Major
Subcontractors shall also include the following language in each Subcontractor
contract:  “The Southern California
Public Power Authority is a third party beneficiary of the foregoing audit
provision. The benefits of the audit provision shall inure solely for the
benefit of the Southern California Public Power Authority. The designation of
the Southern California Public Power Authority as a third party beneficiary of
the audit provision shall not confer any rights or privileges on Seller,
subcontractor or any other person/entity.” 
Notwithstanding the foregoing, if the audit reveals that Buyer
overpayment to Seller is more than five percent (5.0%) of the billings
reviewed, Seller shall pay all expenses and costs incurred by the Authorized
Auditors arising out of or related to the examination or audit. Such
examination or audit expenses and costs shall be paid by Seller to Buyer within
thirty (30) calendar days of notice to Seller of such costs and expenses.

 

(b)           Notwithstanding anything
herein to the contrary, this Section shall not be deemed to require that
Buyer pay for any costs and expenses of Seller other than the Taxes and
Operating Insurance premiums as required under this Agreement.

 

Section 12.5         Electric
Metering Devices.

 

(a)           The Facility Energy made
available to Buyer, or Buyer’s Agent, by Seller under this Agreement shall be
measured using Electric Metering Devices installed, owned and maintained by
Seller or its designee in accordance with the Interconnection Agreement, if
applicable, and Prudent Utility Practices. Such Electric Metering Devices shall
be installed (i) at the Site Common Facilities Substation located on the
Facility Generating Premises; and (ii) at the Point of Delivery.  All Electric Metering Devices used to provide
data for the computation of payments shall be sealed and the Seller or its
designee shall only break the seal when such Electric Metering Devices are to
be inspected and tested or adjusted in accordance with this

 

48

 

Section 12.5. Seller or its
designee shall specify the number, type, and location of such Electric Metering
Devices subject to the requirements of Section 12.5(b).

 

(b)           Although the Facility shares
a common Point of Delivery with the Milford Wind Phase I Facility, the two
facilities have separate scheduling, operating, and energy accounting
requirements, and therefore require metering arrangements that will permit
separate calculations for the Facility and for Milford Wind Phase I Facility.
Appendix Q sets forth the procedure for separate calculations.

 

(1)           The Electric
Metering Devices installed at the Site Common Facilities Substation located on
the Facility Generating Premises shall include but not be limited to
revenue-quality measurements of the Facility’s instantaneous MW, instantaneous
MVAR, MWh received, MWh delivered, MVARh received, and MVARh delivered.

 

(2)           The Electric
Metering Devices for the Facility’s MWh received, MWh delivered, MVARh
received, and MVARh delivered shall be capable of receiving and executing an
accumulator freeze request from the SCADA system of the Buyer or Buyer’s agent,
as do the existing electric metering devices installed at the Point of Delivery
for measuring Energy delivered from the Milford Wind Phase I Facility.  The accumulator freeze request will be
provided by means of the Distributed Network Protocol version 3 (DNP 3).  The accumulator freeze request shall be
delivered to the aforementioned Electric Metering Devices within five (5) seconds
of the time that the accumulator freeze request is available at Seller’s Facility.

 

(3)           Delivered
Energy that is metered shall be the Energy as measured by the Electric Metering
Devices described in this Section 12.5(b) and allocated
according to Appendix Q. All meters used in the calculations shown in Appendix
Q shall meet the requirements of this Section 12.5(b).

 

(c)           Seller or its designee, at
no expense to Buyer, shall inspect and test all Electric Metering Devices upon
installation and at least annually thereafter. Seller shall provide Buyer with
reasonable advance notice of, and permit a representative of Buyer to witness
and verify, such inspections and tests, provided, however, that
Buyer shall not unreasonably interfere with or disrupt the activities of Seller
or its designee and shall comply with all safety standards applicable to the
Facility Premises as provided to Buyer by Seller in writing. Upon request by
Buyer, Seller or its designee shall perform additional inspections or tests of
any Electric Metering Device and shall permit a qualified representative of
Buyer to inspect or witness the testing of any Electric Metering Device; provided,
however, that Buyer shall not unreasonably interfere with or disrupt the
activities of Seller or its designee and shall comply with all safety standards
applicable to the Facility Premises as provided to Buyer by Seller in
writing.  The actual expense of any such
requested additional inspection or testing shall be borne by Seller.

 

(d)           Adjustment
for Inaccurate Meters. If an Electric Metering Device fails to
register, or if the measurement made by an Electric Metering Device is found
upon testing to be inaccurate by more than one percent (1.0%), an adjustment
shall be made correcting all

 

49

 

measurements by the inaccurate
or defective Electric Metering Device for both the amount of the inaccuracy and
the period of the inaccuracy. The adjustment period shall be determined by
reference to Seller’s check-meters, if any, or as far as can be reasonably
ascertained by Seller from the best available data, subject to review and
approval by Buyer.  If the period of the
inaccuracy cannot be ascertained reasonably, any such adjustment shall be for a
period equal to one-third of the time elapsed since the preceding test of the
Electric Metering Devices. To the extent that the adjustment period covers a
period of deliveries for which payment has already been made by Buyer, Seller
shall use the corrected measurements as determined in accordance with this Section
12.5 to recompute the amount due for the period of the inaccuracy and shall
subtract the previous payments by Buyer for this period from such recomputed
amount. If the difference is a positive number, the difference shall be paid by
Buyer to Seller; if the difference is a negative number, that difference shall
be paid by Seller to Buyer, or at the discretion of Buyer, may take the form of
an offset to payments due to Seller from Buyer. Payment of such difference by
the owing Party shall be made not later than thirty (30) days after the owing
Party receives notice of the amount due, unless Buyer elects payment via an
offset.

 

ARTICLE XIII

REPRESENTATIONS AND WARRANTIES; COVENANT OF SELLER

 

Section 13.1         Representations
and Warranties of Buyer. Buyer makes the following representations
and warranties to Seller:

 

(a)           Buyer is a validly existing
California Joint Powers Authority under the laws of the State of California and
has the legal power and authority to own its properties, to carry on its
business as now being conducted and to enter into this Agreement and each
Ancillary Document to which it is a party and carry out the transactions
contemplated hereby and thereby and perform and carry out all covenants and
obligations on its part to be performed under and pursuant to this Agreement
and all such Ancillary Documents.

 

(b)           The execution, delivery and
performance by Buyer of this Agreement and each Ancillary Document to which it
is a party have been duly authorized by all necessary action, and do not and
will not require any consent or approval of Buyer’s Board of Directors or
members other than that which has been obtained.

 

(c)           The execution and delivery
of this Agreement and each Ancillary Document to which it is a party, the
consummation of the transactions contemplated hereby and thereby and the
fulfillment of and compliance with the provisions of this Agreement and each
Ancillary Document to which it is a party do not and will not conflict with or
constitute a breach of or a default under, any of the terms, conditions or
provisions of any legal requirements, or its joint powers agreement or bylaws,
or any deed of trust, mortgage, loan agreement, other evidence of indebtedness
or any other agreement or instrument to which Buyer is a party or by which it
or any of its property is bound, or result in a breach of or a default under
any of the foregoing.

 

(d)           This Agreement and each
Ancillary Document to which it is a party constitutes the legal, valid and
binding obligation of Buyer enforceable in accordance with its terms, except as
such enforceability may be limited by bankruptcy, insolvency, reorganization or

 

50

 

similar laws relating to or
affecting the enforcement of creditors’ rights generally or by general
equitable principles, regardless of whether such enforceability is considered
in a proceeding in equity or at law.

 

(e)           There is no pending, or to
the knowledge of Buyer, threatened action or proceeding affecting Buyer before
any Governmental Authority, which purports to affect the legality, validity or
enforceability of this Agreement.

 

Section 13.2         Representations
and Warranties by Seller. Seller makes the following representations
and warranties to Buyer:

 

(a)           Seller is a limited
liability company, duly organized, validly existing and in good standing under
the laws of the State of Delaware, is qualified to do business in the States of
California and Utah and has the legal power and authority to own its
properties, to carry on its business as now being conducted and to enter into
this Agreement and each Ancillary Document to which it is a party and, subject
to the receipt of the regulatory approvals, carry out the transactions
contemplated hereby and thereby and perform and carry out all covenants and
obligations on its part to be performed under and pursuant to this Agreement
and each Ancillary Document to which it is a party.

 

(b)           The execution, delivery and
performance by Seller of this Agreement and each Ancillary Document to which it
is a party have been duly authorized by all necessary action, and do not and
will not require any consent or approval of Seller’s managing member or equity
holders other than that which has been obtained.

 

(c)           The execution and delivery
of this Agreement and each Ancillary Document to which it is a party, the
consummation of the transactions contemplated hereby and thereby and the
fulfillment of and compliance with the provisions of this Agreement and each
Ancillary Document to which it is a party, do not and will not conflict with or
constitute a breach of or a default under, any of the terms, conditions or
provisions of any Requirement of Law, or any organizational documents,
agreement, deed of trust, mortgage, loan agreement, other evidence of
indebtedness or any other agreement or instrument to which Seller is a party or
by which it or any of its property is bound, or result in a breach of or a
default under any of the foregoing or result in or require the creation or
imposition of any Lien upon any of the properties or assets of Seller (except as
contemplated hereby), and Seller has obtained or shall timely obtain all
Permits required for the lawful performance of its obligations hereunder and
thereunder and operation of the Facility in accordance with Prudent Utility
Practices, the requirements of this Agreement, the Ancillary Documents and all
Requirements of Law.

 

(d)           This Agreement and each of
the Ancillary Documents to which it is a party, constitutes the legal, valid
and binding obligation of Seller enforceable in accordance with its terms, except
as such enforceability may be limited by bankruptcy, insolvency, reorganization
or similar laws relating to or affecting the enforcement of creditors’ rights
generally or by general equitable principles, regardless of whether such
enforceability is considered in a proceeding in equity or at law.

 

51

 

(e)           There is no pending, or to
the knowledge of Seller, threatened action or proceeding affecting Seller
before any Governmental Authority, which purports to affect the legality,
validity or enforceability of this Agreement or any of the Ancillary Documents.

 

(f)            Seller is not in violation
of any Requirement of Law, which violations, individually or in the aggregate,
would reasonably be expected to result in a material adverse effect on the
business, assets, operations, or condition (financial or otherwise) of Seller
or the ability of Seller to perform any of its obligations under this Agreement
or any Ancillary Document.

 

(g)           Seller shall inform all
investors in the Seller of the existence of this Agreement and all Ancillary
Documents on or before the date of such investment in the Seller.

 

(h)           Seller is a Special Purpose
Entity.

 

(i)            Seller has (i) not entered
into this Agreement or any Ancillary Document with the actual intent to hinder,
delay or defraud any creditor and (ii) received reasonably equivalent value in
exchange for its obligations under this Agreement and the Ancillary Documents.
No petition in bankruptcy has been filed against Seller, and neither Seller nor
any of its constituent Persons has ever made an assignment for the benefit of
creditors or taken advantage of any insolvency act for its benefit as a debtor.

 

(j)            All of the assumptions made
in the Non-Consolidation Opinion, including, but not limited to, any exhibits
attached thereto, are true and correct in all material respects. Seller has
complied with all of the assumptions made with respect to Seller in the
Non-Consolidation Opinion.  Seller has no
reason to believe that any environmental authorizations under the laws of the
State of Utah or other Permits required to construct, maintain or operate the
Facility in accordance with the requirements of this Agreement and all
applicable Requirements of Law will not be timely obtained in the ordinary
course of business.

 

(k)           All Tax returns and reports
of Seller required to be filed by it have been timely filed, and all Taxes
shown on such Tax returns to be due and payable and all assessments, fees and
other governmental charges upon the Seller and upon its properties, assets,
income, business and franchises that are due and payable have been paid when
due and payable. Seller knows of no proposed Tax assessment against Seller that
is not being actively contested by it in good faith and by appropriate
proceeding.

 

(l)            Seller owns or possesses, or
will own or possess in a timely manner, all patents, rights to patents,
trademarks, copyrights and licenses necessary for the performance by Seller of
this Agreement and the Ancillary Documents and the transactions contemplated
thereby, without any conflict with the rights of others.

 

(m)          At all times after the
Commercial Operation Date, Seller shall have “Site Control” which means that
Seller shall: (i) own the Facility Premises; (ii) be the holder of grant
or grants of right of way to Seller by the USBLM; or (iii) be the lessee
of the Facility Premises under a lease which permits Seller to perform its
obligations under this Agreement. Seller shall provide Buyer with prompt notice
of any change in the status of Seller’s Site Control.

 

52

 

Section 13.3         Covenant of
Seller Related to Seller’s Status as Special Purpose Entity.  Seller shall at all times comply with the
requirements of, and qualify as, a Special Purpose Entity.

 

Section 13.4         Covenants
of Seller Related to Leases and Property Agreements.

 

(a)           Following delivery of the
Deed of Trust, in the event that the lessor under any lease included under the
Leases and Property Agreements is the subject of a bankruptcy, reorganization
or other insolvency case proceeding, Seller as lessee under such lease shall
elect to retain its rights under such lease pursuant to Section 365(h) of
the U.S. Bankruptcy Code or other similar applicable law in the event that such
lessor seeks to reject or otherwise disaffirm such lease, unless Buyer agrees
otherwise in writing provided to the Seller in accordance with the notice
provisions of this Agreement.  Seller, as
lessee under such lease, shall provide to Buyer all notices, motions and
pleadings it receives in any such proceeding promptly, but no later than three
business days following receipt. Seller, as lessee under such lease, hereby
appoints Buyer as attorney in fact to appear and be heard on behalf of Seller,
as lessee under such lease, in any such proceeding and Seller, as lessee under
such lease, shall take no action in such proceeding without the prior written
consent of Buyer.

 

(b)           In the event that Seller is
the subject of a bankruptcy, reorganization or other insolvency case or
proceeding, Seller, as lessee under any lease included under the Leases and
Property Agreements, shall not reject or otherwise disaffirm such lease
pursuant to Section 365 of the U.S. Bankruptcy Code or other similar
applicable law unless Buyer is first granted by the applicable court or courts
appropriate relief including any relief from any stay, such that Buyer may
enforce all of its rights and interests and has taken possession of the
Facility pursuant to the Performance Security.

 

(c)           Seller agrees to enforce the
provisions of the Leases and Property Agreements and duly perform its covenants
and agreements thereunder. Seller further agrees not to consent, agree to or
permit, or to take or cause to be taken any action or non-action, to bring about
any rescission or termination of or amendment to any of the Leases and Property
Agreements or to take any action in connection with any of the Leases and
Property Agreements which will materially impair or have a material adverse
effect on the rights, interest or security of Buyer, or elect to arbitrate any
controversy, claim or dispute under an arbitration provision in the Leases and
Property Agreements, or to assign, sublease, encumber, mortgage, or grant any
security interest in or otherwise dispose of any of the Leases and Property
Agreements or any portion thereof or interest therein without the consent of
Buyer, except as permitted in this Agreement.

 

(d)           Upon any payment by Buyer,
as Beneficiary under the Deed of Trust, under any of the Leases and Property
Agreements to cure any default of Seller thereunder, and thereby prevent
termination of any of the Leases or Property Agreements, or the exercise of any
other remedy of the other party or parties thereunder arising out of such
default, Buyer shall be entitled to offset amounts otherwise due Seller
pursuant to the Monthly Payment hereunder by the amount of such cure payment or
remedy cost until Buyer has been fully repaid.

 

53

 

(e)           Following delivery of the Deed of Trust, in the event of a
complete taking of the Facility or any substantial portion thereof or a partial
taking of a portion of the Facility under a statute or by right of eminent
domain or private purchase in lieu thereof, Seller shall pay to Buyer from the
sum awarded to and received by Seller, including damages and interest, the
amount of the loss in value of this Agreement to Buyer resulting from such
complete or partial taking; provided that in the event of a complete
taking, such payment to Buyer shall not be less than the Remaining Prepayment
Amount, if Seller is awarded and receives at least this amount.

 

(f)            Following delivery of the Deed of Trust, upon the receipt
by Seller of any offer to acquire or purchase from any other party under the
Leases and Property Agreements all or any portion of such party’s interest in
the Facility Premises, Seller shall promptly notify Buyer in writing of its
receipt of such offer and furnish Buyer with a copy thereof. Seller agrees not
to elect to exercise its option to purchase such offered interest in the
Facility Premises unless it shall first reach agreement with Buyer as to any
amendment or modification of the Deed of Trust and/or this Agreement reasonably
requested by Buyer to reflect such purchase by Seller of the offered interest
in the Facility Premises.

 

(g)           Following delivery of the Deed of Trust, Seller shall
provide Buyer, as Beneficiary under the Deed of Trust, with evidence that the
rent, fees or other payments payable by Seller under the Leases and Property
Agreements have been paid at least ten days prior to the date on which such
rent, fees or other payments would be delinquent. If Seller does not provide
Buyer with such evidence within five days after receipt of written request for
the same and if such rent, fees or other payments have not been paid, Buyer, as
Beneficiary under the Performance Security, may, but shall not be obligated to,
cure such default by Seller as provided under Section 13.4(d).

 

ARTICLE XIV

DEFAULT; TERMINATION AND REMEDIES; PERFORMANCE DAMAGE

 

Section 14.1
Default. Each of the following events or circumstances shall constitute a “Default”
by the responsible Party (the “Defaulting Party”):

 

(a)           Payment Default.
Failure by either Party to pay any amount when and as due under this Agreement
(other than payments disputed in good faith), including the failure of Buyer to
pay the Prepayment Amount when and as due, which is not cured within thirty
(30) days after receiving written notice thereof from the other Party hereto; provided
that, with respect to a failure to pay the Prepayment Amount, such cure shall
include payment of interest from the due date at the Interest Rate.

 

(b)           Performance Default.  Failure by either Party to perform any of its
material duties or obligations under this Agreement when and as due (other than
the failure to make any payment) which is not cured within thirty (30) calendar
days after receipt of written notice thereof from the other Party hereto, provided
that if such failure cannot be cured within such thirty (30) day period,
despite reasonable commercial efforts, such Party shall have up to ninety (90)
calendar days to cure.

 

54

 

(c)           Inaccuracy of
Representations and Warranties. 
Inaccuracy of any representations and warranties made herein at the time
made or deemed to be made that has a material adverse effect on the other
Party.

 

(d)           Bankruptcy.
Bankruptcy of a Party.

 

(e)           Security Interest
Default.  A default shall have
occurred and be continuing under the Deed of Trust or the Security Interest
shall fail to be in full force and effect in accordance with the terms of this
Agreement or Buyer shall not have or shall cease to have a valid and perfected
Lien in the Facility and Related Interests and Rights or Seller shall contest
the validity or enforceability of the Security Interest or any provision
thereof in writing or deny that it has any further liability thereunder.

 

(f)            Security Failure.
The failure of Seller to cause First Wind, or an Affiliate of First Wind (other
than Seller), to apply for and cause to be issued to Buyer and thereafter to
maintain and replace the LD Security or Performance Security in compliance with
Section 3.5(b) or Section 7.3, as applicable, including,
among other requirements thereunder, (1) in the case of a Downgrade Event,
the failure of Seller to cause First Wind or an Affiliate of First Wind (other
than Seller) to replace the LD Security or the Performance Security (unless
payment on such LD Security or Performance Security has been made upon demand
by Buyer as provided for pursuant to the agreement referred to in Section 2.1(c)or
Section 2.1(e), as applicable); or (2) in the case of a
failure of Seller to cause First Wind, or an Affiliate of First Wind (other
than Seller), prior to thirty (30) days before the expiration date of the LD
Security or Performance Security to cause the extension thereof or the issuance
of a replacement LD Security or Performance Security (unless payment on such LD
Security or Performance Security has been made upon demand by Buyer as provided
for pursuant to the agreement referred to in Section 2.1(e)); or
the failure of Seller to cause First Wind or an Affiliate of First Wind (other
than Seller) to provide replacement LD Security or Performance Security within
ten (10) Business Days after written notice to Seller of the occurrence of
any of the following events:  (x) the
failure of the Qualified Issuer to honor a demand for payment or make a payment
thereunder; (y) the LD Security or the Performance Security issued by such
Qualified Issuer shall fail to be in full force and effect in accordance with
the terms of this Agreement; or (z) the Qualified Issuer shall repudiate,
disaffirm, disclaim, reject, in whole or in part, or challenge the validity of
its LD Security or Performance Security.

 

(g)           Insurance Default.  The failure of Seller to maintain and provide
the required insurance for the required period of coverage as set forth in Appendix
F.

 

(h)           Lease or Property
Default. Except as may be expressly permitted by this Agreement, any
of the Leases and Property Agreements fails to be in effect or any of the
Leases is terminated for any reason or amended in any material respect, without
Buyer’s written consent, not to be unreasonably withheld.

 

(i)            Seller Commercial
Operation Date Default. 
Failure by Seller to achieve the Commercial Operation Date within
two-hundred forty (240) calendar days following the Guaranteed Commercial
Operation Date (as such date may be extended for Force Majeure),

 

55

 

and such failure is not
cured within thirty (30) calendar days after receipt of written notice thereof
from Buyer to Seller.

 

(j)            Buyer Purchase Default.  Failure by Buyer to accept Startup or Test
Energy prior to the Commercial Operation Date, Interim Energy during the
Interim Period and Excess Energy on or after the Prepayment Date, except as
provided under Section 5.6(g).

 

Seller shall, promptly upon
obtaining knowledge thereof, provide written notice to Buyer of the occurrence
of any Default of Seller (or breach of this Agreement) or any occurrence,
circumstance or event, or any combination thereof, which, with the lapse of
time, the giving of notice, or both, would constitute a Default of Seller (or
breach of this Agreement).

 

Section 14.2         Default Remedy.

 

(a)           If Buyer is in Default for nonpayment, subject to any duty
or obligation under this Agreement, Seller may, at its sole option, suspend
service, sell Energy and Environmental Attributes to third parties pursuant to
and in accordance with Section 7.4 or continue to provide services
pursuant to its obligations under this Agreement; provided that nothing
in this Section 14.2(a) shall affect Seller’s rights and
remedies set forth in this Section 14.2; and provided, further,
that Excess Energy sold to third parties shall not count toward Delivered
Guaranteed Generation.  Seller’s
continued service to Buyer shall not act to relieve Buyer of any of its duties
or obligations under this Agreement.

 

(b)           Notwithstanding any other provision herein, if any Default
has occurred and is continuing, the affected Party may, whether or not the
dispute resolution procedure set forth in Section 15.3 has been
invoked or completed, bring an action in any court of competent jurisdiction as
required by Section 15.3 seeking injunctive relief in accordance
with applicable California or Federal rules of civil procedure.

 

(c)           Except as expressly limited by this Agreement, if a
Default has occurred and is continuing and Buyer is the Defaulting Party,
Seller may without further notice exercise any rights and remedies provided
herein or otherwise available at law or in equity, including the right to
terminate this Agreement upon giving notice of intent to terminate to Buyer. No
failure of Seller to exercise, and no delay in exercising, any right, remedy or
power hereunder shall operate as a waiver thereof, nor shall any single or
partial exercise by Seller of any right, remedy or power hereunder preclude any
other or future exercise of any right, remedy or power.

 

(d)           Except as expressly limited by this Agreement, if a
Default has occurred and is continuing and Seller is the Defaulting Party,
Buyer may without further notice exercise any rights and remedies provided for
herein, or otherwise available at law or equity, including (i) application
of all amounts available under the LD Security, Performance Security, and the
Deed of Trust against any amounts then payable by Seller to Buyer under this
Agreement, (ii) termination of this Agreement pursuant to Section 14.4,
(iii) exercise its rights under the Deed of Trust, subject to the
provisions of this Agreement, and (iv) foreclosure of Buyer’s Deed of
Trust, upon notice of intent to terminate this Agreement to Seller.  No failure of Buyer to exercise, and no delay
in exercising, any right, remedy or power hereunder shall operate as a

 

56

 

waiver thereof, nor shall
any single or partial exercise by Buyer of any right, remedy or power hereunder
preclude any other or future exercise of any right, remedy or power.

 

Section 14.3         Effect of Termination on
Interconnection Agreement. The expiration or termination for any
reason of this Agreement shall not affect the Leases and Property Agreements or
the Interconnection Agreement or the continuing effectiveness thereof.

 

Section 14.4         Termination for Default.

 

(a)           If Default occurs, the Party that is not the Defaulting
Party (the “Non
Defaulting Party”) shall, for so long as the Default is
continuing, and subject to applicable cure rights, and without limiting any
other rights or remedies available to the Non-Defaulting Party under this
Agreement, possess the right to terminate this Agreement upon written notice to
the Defaulting Party in accordance with Section 15.2, such notice
of termination shall specify the date on which the termination is to become
effective.

 

(b)           Upon termination, the Non Defaulting Party shall liquidate
this Agreement as soon as practicable. The Termination Payment shall be
calculated in accordance with Section 14.5. With respect to Seller,
the Termination Payment shall be the sole and exclusive remedy for termination
of this Agreement after the termination under this Section 14.4 is
received.

 

(c)           Upon termination, the Non-Defaulting Party may withhold
any payments it owes the Defaulting Party for any obligations incurred prior to
termination under this Agreement until the Defaulting Party pays the
Termination Payment to the Non Defaulting Party. The Non Defaulting Party shall
possess the right to set off the amount due it under this Section 14.4
by any such payments due the Defaulting Party.

 

Section 14.5         Calculation of Termination Payment. The Non
Defaulting Party shall calculate the Termination Payment as follows:

 

(a)           If Seller is the Defaulting Party, upon any termination
under Section 14.4, Seller shall pay Buyer the Remaining Prepayment
Amount. In addition to such payment of the Remaining Prepayment Amount, Buyer
shall calculate the Gains, Losses, and Costs. The Gains, Losses, and Costs
shall include those for the Excess Energy and the Environmental Attributes,
which shall be determined by comparing (i) the value of the Excess Energy
and Environmental Attributes projected to be delivered for the remaining term
giving effect to the Excess Energy Price and the value derived from the
Environmental Attributes under this Agreement had it not been terminated to (ii) the
equivalent quantities and relevant market prices for the remaining term either
quoted by a bona fide third party offer or which are reasonably expected to be
available in the market under a replacement contract for this Agreement. To
ascertain the market prices of a replacement contract, Buyer may consider,
among other valuations, quotations from dealers in energy contracts and bona
fide third party offers, all adjusted for the length of the remaining term and
differences in transmission.  It is
expressly agreed that Buyer shall not be required to enter into replacement
transactions in order to determine the Termination Payment.

 

(b)           If Buyer is the Defaulting Party, upon any termination
under Section 14.4, Seller shall pay Buyer the Remaining Prepayment
Amount, unless offset by termination payments otherwise due to Seller. In
addition to such obligation for payment of the Remaining

 

57

 

Prepayment Amount, Seller
shall calculate the Gains, Losses and Costs. The Gains, Losses, and Costs shall
include those for the Excess Energy and the Environmental Attributes, which
shall be determined by comparing the value of the Excess Energy and
Environmental Attributes projected to be delivered for the remaining Delivery
Term giving effect to the Excess Energy Price and the value derived from the
Environmental Attributes under this Agreement had it not been terminated to the
equivalent quantities and relevant market prices for the remaining Delivery
Term either quoted by a bona fide third party offer or which are reasonably
expected to be available in the market under a replacement contract for this
Agreement. To ascertain the market prices of a replacement contract, Seller may
consider, among other valuations, quotations from dealers in energy contracts
and bona fide third party offers, all adjusted for the length of the remaining
Delivery Term and differences in transmission. It is expressly agreed that
Seller shall not be required to enter into replacement transactions in order to
determine the Termination Payment.

 

(c)           The Gains and Losses for Excess Energy and Environmental
Attributes calculated under Section 14.5(a) shall be
discounted to present value using the Present Value Rate as of the time of
termination (to take account of the period between the time notice of
termination was effective and when such amount would have otherwise been due if
this Agreement had been performed in full).

 

(d)           Each Party shall use reasonable
efforts to mitigate or eliminate Costs.

 

(e)           In no event, however, shall a Party’s
Gains, Losses or Costs include any penalties or similar charges imposed by the
Non-Defaulting Party.

 

(f)            The Non Defaulting Party shall set off or aggregate, as
appropriate, the Gains and Losses and Costs and notify the Defaulting
Party.  If the Non Defaulting Party’s
aggregate Losses and Costs exceed its aggregate Gains with respect to Excess
Energy and Environmental Attributes, the Defaulting Party shall, within three (3) Business
Days of receipt of such notice, pay the resulting Termination Payment, after
any aggregation or set off as provided in Section 14.5(g), to the
Non Defaulting Party, which amount shall bear interest at the Present Value
Rate from the time notice of termination was received until paid. If the Non
Defaulting Party’s aggregate Gains exceed its aggregate Losses and Costs, the
Termination Payment shall be zero.

 

(g)           The Non Defaulting Party shall aggregate or set off, as
applicable, at its election, any or all other amounts owing between the Parties
under this Agreement with or against the Termination Payment so that all such
amounts are aggregated and/or netted to a single liquidated amount, which shall
be the amount of the Termination Payment. Such Termination Payment shall be
paid within three (3) Business Days following the date notice of
termination is received. Notwithstanding any other provision of this Section 14.5,
if Buyer shall be the Non-Defaulting Party, in no event shall the amount of the
Termination Payment due Buyer be less than the Remaining Prepayment Amount,
subject, however, to aggregation or setoff, as applicable, of any amounts owing
between the Parties under this Agreement other than Gains, Losses and Costs.

 

58

 

(h)           If the Defaulting Party disagrees with the calculation of
the Termination Payment and the Parties cannot otherwise resolve their
differences, the calculation issue shall be submitted to informal dispute
resolution as provided in Section 15.3(a). Pending resolution of
the dispute, the Defaulting Party shall pay the full amount of the Termination
Payment calculated by the Non Defaulting Party within three (3) Business
Days of receipt of notice of termination as set forth in Section 14.4(a) subject
to the Non Defaulting Party refunding, with interest, at the Present Value
Rate, any amounts determined to have been overpaid.

 

(i)            For purposes of this Section 14.5:

 

(1)                   “Gains”
means the economic benefit (exclusive of Costs), if any, resulting from the
termination of this Agreement, determined in a commercially reasonable manner,
as calculated in accordance with this Section 14.5;

 

(2)                   “Losses”
means the economic loss (exclusive of Costs), if any, resulting from the
termination of this Agreement, determined in a commercially reasonable manner
as calculated in accordance with this Section 14.5;

 

(3)                   “Costs”
means brokerage fees, commissions and other similar transaction costs and
expenses reasonably incurred in terminating any specifically related
arrangements or entering into arrangements which replace this Agreement, and
excluding attorneys’ fees, if any, incurred in connection with the Non Defaulting
Party enforcing its rights with regard to this Agreement.

 

ARTICLE XV

MISCELLANEOUS

 

Section 15.1
Authorized Representative.  Each
Party hereto shall designate an authorized representative who shall be
authorized to act on its behalf with respect to those matters contained herein
(each an “Authorized
Representative”), which shall be the functions and
responsibilities of such Authorized Representatives.  Each Party may also designate an alternate
who may act for the Authorized Representative. Within thirty (30) calendar days
after execution of this Agreement, each Party shall notify the other Party in
writing of the identity of its Authorized Representative, and alternate if
designated, and shall promptly notify the other Party of any subsequent changes
in such designation. The Authorized Representatives shall have no authority to
alter, modify, or delete any of the provisions of this Agreement.  Prior to the Commercial Operation Date, the
Authorized Representative of each Party will meet periodically to discuss
issues related to the sharing of information on the operation and maintenance
of the Facility and interconnection facilities, provided, however,
except as otherwise provided herein with respect to the scheduling of Startup
and Test Energy, that Buyer shall
have no right to approve Seller’s schedules or budgets.  Each Party by notice to the other Party may
also designate a Person as its designee as provided in this Agreement.

 

Section 15.2
Notices. With the exception of billing invoices pursuant to Section 12.1
hereof, all notices, requests, demands, consents, waivers and other
communications which are required under this Agreement shall be in writing and
shall be deemed properly sent if delivered in person or sent by facsimile transmission,
reliable overnight courier, or sent by registered or

 

59

 

certified mail, postage
prepaid to the persons specified in Appendix C.  In addition to the foregoing, the Parties may
agree in writing at any time to deliver notices, requests, demands, consents,
waivers and other communications through alternate methods, such as electronic
mail.

 

Section 15.3         Dispute Resolution.  Subject to Section 14.2(b),
regarding suits for injunctive relief, disputes under this Agreement between
Seller and Buyer may be resolved in accordance with the provisions of this Section 15.3.

 

(a)           In the event of any claim, controversy or dispute between
the Parties arising out of or relating to or in connection with this Agreement
(including any dispute concerning the validity of this Agreement or the scope
and interpretation of this Section 15.3) (a “Dispute”), either
Party (the “Notifying
Party”) may deliver to the other Party (the “Recipient Party”)
notice of the Dispute with a detailed description of the underlying
circumstances of such Dispute (a “Dispute Notice”). The Dispute Notice shall
include a schedule of the availability of the Notifying Party’s senior officers
(having a title of senior vice president (or its equivalent) or higher) duly
authorized to settle the Dispute during the thirty (30) day period following
the delivery of the Dispute Notice.

 

(b)           The Recipient Party shall within five (5) Business
Days following receipt of the Dispute Notice, provide to the Notifying Party a
parallel schedule of availability of the Recipient Party’s senior officers
(having a title of senior vice president (or its equivalent) or higher) duly
authorized to settle the Dispute. Following delivery of the respective senior
officers’ schedules of availability, the senior officers of the Parties shall
meet and confer as often as they deem reasonably necessary during the remainder
of the thirty (30) day period in good faith negotiations to resolve the Dispute
to the satisfaction of each Party.

 

(c)           In the event a Dispute is not resolved pursuant to the
procedures set forth in Section 15.3(a) and Section 15.3(b) by
the expiration of the thirty (30) day period set forth in Section 15.3(a) then
either Party may pursue any legal remedy available to it in accordance with the
provisions of Section 15.12 of this Agreement.

 

(d)           Claims Presentment Under California Law.  As stated in Section 15.12, this
Agreement shall be governed by, interpreted and enforced in accordance with the
laws of the State of California, without regard to the conflict of laws
principles thereof. In addition to the dispute resolution process set forth in
this Section, the Parties to this Agreement must comply with California law
governing claims against public entities and presentment of such claims.

 

Section 15.4         Further Assurances. Each Party
agrees to execute and deliver all further instruments and documents, and take
all further action not inconsistent with the provisions of this Agreement that
may be reasonably necessary to effectuate the purposes and intent of this
Agreement.

 

Section 15.5         No Dedication of Facilities. Any
undertaking by one Party hereto to the other Party under any provisions of this
Agreement shall not constitute the dedication of the system or any portion
thereof of either Party to the public or to the other Party or any other
Person, and it is understood and agreed that any such undertaking by either
Party shall cease upon the termination of such Party’s obligations under this
Agreement.

 

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Section 15.6         Force Majeure.

 

(a)           A Party shall not be considered to be in default in the
performance of any of its obligations under this Agreement (other than the
obligations of a Party to make payment of amounts due under this Agreement),
including Buyer’s obligations to receive Energy (including Startup or Test
Energy, Interim Energy, Guaranteed Generation, Excess Energy and Shortfall
Energy) at the Point of Delivery, when and to the extent such Party’s
performance is prevented by a Force Majeure that, despite the exercise of due
diligence, such Party is unable to prevent or mitigate; provided the
Party has given a written detailed description of the full particulars of the
Force Majeure to the other Party reasonably promptly after becoming aware
thereof (and in any event within fourteen (14) days after the initial
occurrence of the claimed Force Majeure) (the “Force Majeure Notice”), which notice
shall include information with respect to the nature, cause and date and time
of commencement of such event, and the anticipated scope and duration of the
delay.  The Party providing such notice
shall be excused from fulfilling its obligations under this Agreement until
such time as the Force Majeure has ceased to prevent performance or other
remedial action is taken, at which time the Party shall promptly notify the
other Party of the resumption of its obligations under this Agreement.
Notwithstanding anything in this Agreement to the contrary, if Seller is unable
to deliver or Buyer is unable to receive Excess Energy due to a Force Majeure,
Buyer shall have no obligation to pay Seller for the Excess Energy not
delivered or received by reason thereof. It is understood by the Parties that
the foregoing provisions shall not excuse any obligations of Seller with
respect to delivery of the Guaranteed Generation under Article VII,
or Shortfall Energy and Replacement Energy provided under Article X,
or Buyer’s obligation to make Monthly Payments up to the time that Seller
ceases deliveries of Energy due to Force Majeure. In no event shall Buyer be
obligated to compensate Seller or any other Person for any losses, expenses or
liabilities that Seller or such other Person may sustain as a consequence of
any Force Majeure.

 

(b)           The term “Force Majeure” means any act of God, labor disturbance,
act of the public enemy, war, insurrection, riot, fire, terrorism, storm or
flood, explosion, change in law or any order, regulation or restriction imposed
by governmental, military or lawfully established civilian authorities (i) which
prevents one Party from performing any of its obligations under this Agreement,
(ii) which could not reasonably be anticipated as of the date of this
Agreement, (iii) which is not within the reasonable control of, or the result
of negligence, willful misconduct, breach of contract, intentional act or
omission or wrongdoing on the part of the affected Party (or any subcontractor
or Affiliate of that Party, or any Person under the control of that Party or
any of its subcontractors or Affiliates, or any Person for whose acts such
Affiliate or subcontractor is responsible), and (iv) which by the exercise
of due diligence the affected Party is unable to overcome or avoid or cause to
be avoided; provided nothing in this clause (iv) shall be construed
so as to require either Party to accede or agree to any provision not
satisfactory to it in order to settle and terminate a strike or labor dispute
in which it may be involved.  Any Party
rendered unable to fulfill any of its obligations by reason of a Force Majeure
shall exercise reasonable efforts to remove such inability with reasonable
dispatch within a reasonable time period and mitigate the effects of the Force
Majeure. The relief from performance shall be of no greater scope and of no
longer duration than is required by the Force Majeure. Without limiting the
generality of the foregoing, a Force Majeure does not include any of the
following (each an “Unexcused
Cause”): (1) any requirement to meet a renewable portfolio
standard or any change (whether voluntary or mandatory) in any renewable
portfolio

 

61

 

standard that may affect the
value of the Energy purchased hereunder; (2) events arising from the
failure by Seller to construct, operate or maintain the Facility in accordance
with this Agreement, unless such failure was itself caused by an event of Force
Majeure; (3) any increase of any kind in any cost; (4) delays in or
inability of a Party to obtain financing or other economic hardship of any
kind; (5) Seller’s ability to sell any Energy at a price in excess of that
provided in this Agreement or Buyer’s ability to purchase any Energy at a price
less than those provided in this Agreement; (6) curtailment or other
interruption of any Transmission Service unless such curtailment or
interruption was itself caused by an event of Force Majeure; failure of third
parties to provide goods and services essential to a Party’s performance,
unless such failure was itself caused by an event of Force Majeure; (7) Facility
or related equipment failure of any kind, including wells, machinery and lines
of pipe; or (8) any changes in the financial condition of Buyer, Seller,
the Facility Lender or any subcontractor or supplier affecting the affected Party’s
ability to perform its obligations under this Agreement.

 

Section 15.7         Assignment of Agreement.

 

(a)           Except as set forth in this Section 15.7,
neither Party hereto shall assign or transfer this Agreement, in whole or in
part, or any of its interests hereunder to any other Person without the prior
written consent of the other Party hereto. 
Such consent shall not be unreasonably withheld by either Party. Any
attempt to transfer or assign this Agreement, or any privilege hereunder,
without such prior written consent, except as provided herein, shall be void
and confer no right on any Person that is not a party to this Agreement.

 

(b)           Seller’s consent shall not be required for Buyer to assign
this Agreement, in whole or in part; to any of Buyer’s members, provided
that at the time of assignment each of the assignees shall have an investment
grade rating from Moody’s or Standard & Poor’s.

 

(c)           Buyer’s consent shall not be required for Seller to assign
this Agreement to an Affiliate of Seller, subject however to compliance with Section 13.3;
provided that Seller provides reasonable assurances and executes
documents reasonably required by Buyer regarding Seller’s continued liability
for all of Seller’s obligations under this Agreement in the event of any nonperformance
on the part of such assignee.

 

(d)           Except as otherwise provided in Buyer’s indenture of trust
or similar agreement under which Buyer issues or has issued bonds or other
obligations relating to the Facility, it is specifically agreed that there are
no third party beneficiaries of this Agreement, and that, except as provided in
this Section 15.7, this Agreement shall not grant any rights
enforceable by any Person not a party to this Agreement.  Notwithstanding the foregoing, Buyer’s
consent shall not be required for Seller to collaterally assign this Agreement
for the sole purpose of financing this Facility to any Facility Lender; provided,
however, that the terms of such financing and the documentation relating
thereto shall comply with the applicable terms and conditions of this
Agreement.  Seller shall provide Buyer
with written notice of any such assignment to any Facility Lender no later than
thirty (30) days after the assignment. Notwithstanding the foregoing or
anything else expressed or implied herein to the contrary, other than liens on
the proceeds of the Energy or Environmental Attributes in favor of the Facility
Lender, Seller shall not assign, transfer, convey, encumber, sell or otherwise
dispose of all or any portion of the Energy, Capacity Rights or Environmental
Attributes to any Person.

 

62

 

(e)           To facilitate Seller’s obtaining of financing to construct
and operate the Facility, Buyer shall provide such consents to assignment or
other documents (in form and substance satisfactory to Buyer) as may be
reasonably requested by Seller or any Facility Lender in connection with the
financing of the Facility, including the acquisition of equity for the
development, construction and operation of the Facility; provided, however,
that the terms of such financing and the documentation relating thereto shall
comply with the applicable terms and conditions of this Agreement.  Seller shall reimburse, or shall cause the
Facility Lender to reimburse, Buyer for the incremental direct expenses
incurred by Buyer in the preparation, negotiation, execution and/or delivery of
any documents requested by Seller or the Facility Lender, and provided by
Buyer, pursuant to this Section 15.7(e).

 

(f)            In no event shall Buyer be liable to Facility Lender for
any claims, losses, expenses or damages whatsoever other than liability Buyer
may have to Seller under this Agreement. In the event of any foreclosure,
whether judicial or nonjudicial, or any deed in lieu of foreclosure, in
connection with any deed of trust, mortgage, or other similar Lien, Facility
Lender or other transferee, and their successors in interest and assigns, will
be bound by the covenants and agreements of Seller in this Agreement; provided,
however, that until the Person who acquires title to the Facility
executes and delivers to Buyer a written assumption of Seller’s obligations
under this Agreement in form and substance acceptable to Buyer, such Person
will not be entitled to any of the benefits of this Agreement. Any sale or
transfer of the Facility by Facility Lender must be made only to an entity that
is acceptable to Buyer and has financial qualifications and operating
experience equivalent to Seller.

 

(g)           Notwithstanding the provision in Section 3.1
as to the ownership of the Facility by Seller during the Agreement Term, Seller
may secure its obligations under the Credit Agreement by granting a lien on and
security interest in and to the Facility under a deed of trust and related
documents which shall include an assignment of Seller’s rights and interests
under the Agreement; provided that such deed of trust and related
documents shall be subject to, and Seller, Buyer and the Facility Lenders shall
enter into and comply with, the terms and provisions of a Consent and Agreement
in substantially the form set forth in Appendix O to the Agreement.

 

(h)           Seller may subcontract its duties or obligations under
this Agreement without the prior written consent of Buyer, provided,
that no such subcontract shall relieve Seller of any of its duties or
obligations hereunder.

 

Section 15.8         Ambiguity.  The Parties acknowledge that this Agreement
was jointly prepared by them, by and through their respective legal counsel,
and any uncertainty or ambiguity existing herein shall not be interpreted
against either Party on the basis that the Party drafted the language, but
otherwise shall be interpreted according to the application of the rules on
interpretation of contracts.

 

Section 15.9         Attorney Fees & Costs. Both Parties
hereto agree that in any action to enforce the terms of this Agreement that
each Party shall be responsible for its own attorney fees and costs. Each of
the Parties to this Agreement was represented by its respective counsel during
the negotiation and execution of this Agreement.

 

63

 

Section 15.10       Voluntary Execution.  Both Parties hereto acknowledge that they
have read and fully understand the content and effect of this Agreement that
the provisions of this Agreement have been reviewed and approved by their
respective counsel.  The Parties to this
Agreement further acknowledge that they have executed this Agreement
voluntarily, subject only to the advice of their own counsel, and do not rely
on any promise, inducement, representation or warranty that is not expressly
stated herein.

 

Section 15.11       Entire Agreement.  This Agreement (including all Appendices and
Exhibits) contains the entire understanding concerning the subject matter
herein and supersedes and replaces any prior negotiations, discussions or
agreements between the Parties, or any of them, concerning that subject matter,
whether written or oral, except as expressly provided for herein.  This is a fully integrated document.  Each Party acknowledges that no other party,
representative or agent, has made any promise, representation or warranty,
express or implied, that is not expressly contained in this Agreement that
induced the other Party to sign this document. This Agreement may be amended or
modified only by an instrument in writing signed by each Party.

 

Section 15.12       Governing Law. This
Agreement shall be governed by, interpreted and enforced in accordance with and
construed under the laws of the State of California without regard to conflict
of law principles.

 

Section 15.13       Venue. All litigation arising out
of, or relating to this Agreement, shall be brought in a state or federal court
in the County of Los Angeles in the State of California. The Parties
irrevocably agree to submit to the exclusive jurisdiction of such courts in the
State of California and waive any defense of forum
non conveniens.

 

Section 15.14       Execution in Counterparts.  This Agreement may be executed in
counterparts and upon execution by each signatory, each executed counterpart
shall have the same force and effect as an original instrument and as if all
signatories had signed the same instrument. Any signature page of this
Agreement may be detached from any counterpart of this Agreement without
impairing the legal effect of any signature thereon, and may be attached to
another counterpart of this Agreement identical in form hereto by having
attached to it one or more signature pages.

 

Section 15.15       Effect of Section Headings.  Section headings appearing in this
Agreement are inserted for convenience only and shall not be construed as
interpretations of text.

 

Section 15.16       Waiver. The failure of either
Party to this Agreement to enforce or insist upon compliance with or strict
performance of any of the terms or conditions hereof, or to take advantage of
any of its rights hereunder, shall not constitute a waiver or relinquishment of
any such terms, conditions or rights, but the same shall be and remain at all
times in full force and effect. Notwithstanding anything expressed or implied
herein to the contrary, nothing contained herein shall preclude either Party
from pursuing any available remedies for breaches not rising to the level of a
Default, including without limitation recovery of damages caused by the breach
of this Agreement and specific performance or any other remedy given under this
Agreement or now or hereafter existing in law or equity or otherwise.  Each Party acknowledges that money damages
may not be an adequate remedy for violations of this Agreement and that either
Party

 

64

 

may, in its sole discretion,
seek and obtain from a court of competent jurisdiction specific performance or
injunctive or such other relief as such court may deem just and proper to
enforce this Agreement or to prevent any violation hereof. Each Party hereby
waives any objection to specific performance or injunctive relief. The rights
granted herein are cumulative.

 

Section 15.17       Relationship of the Parties. This
Agreement shall not be interpreted to create an association, joint venture or
partnership between the Parties hereto or to impose any partnership obligation
or liability upon either such Party. 
Neither Party shall have any right, power or authority to enter into any
agreement or undertaking for, or act on behalf of, or to act as an agent or
representative of, the other Party.

 

Section 15.18       Indemnification; Damage or Destruction; Insurance;
Limit of Liability.

 

(a)           Indemnification.
Seller undertakes and agrees to indemnify and hold harmless Buyer and all of
the officers and employees of each, and, at the option of Buyer, defend Buyer,
and any and all of its Board, officers, agents, employees, advisors, assigns
and successors in interest from and against any and all suits and causes of
action, claims, charges, damages, demands, judgments, civil fines and penalties,
or losses of any kind or nature whatsoever, for death, bodily injury or
personal injury to any person, including Seller’s employees and agents, or
damage or destruction to any property of either Party, or third persons in any
manner arising by reason of (i) any breach of this Agreement by, or (ii) the
negligent acts, errors, omissions or willful misconduct of, in each case under (i) and
(ii), Seller, or any of Seller’s officers, agents, employees, or subcontractors
of any tier, except to the extent caused by the gross negligence or willful
misconduct of Buyer, its Board, officers, agents, or employees.

 

(b)           Damage or Destruction.
In the event of any damage or destruction of the Facility or any part thereof,
the Facility or such part thereof shall be diligently repaired, replaced or
reconstructed by the Seller so that the Facility or such part thereof shall be
restored to substantially the same general condition and use as existed prior
to such damage or destruction, unless a different condition or use is approved
by Buyer. Proceeds of Insurance with respect to such damage or destruction
maintained as provided in this Agreement shall be applied, subject to the
consent of the Facility Lender, not to be unreasonably withheld, to the payment
for such repair, replacement or reconstruction of the damage or destruction.

 

(c)           Insurance.
Seller shall obtain and maintain the Insurance coverages listed in Appendix
F.

 

(d)           Condemnation or Other
Taking. For the Agreement Term, Seller shall immediately notify
Buyer of the institution of any proceeding for the condemnation or other taking
of the Facility or any portion thereof. Buyer may participate in any such
proceeding and Seller will deliver to Buyer all instruments necessary or
required by Buyer to permit such participation. 
Without Buyer’s prior written consent, Seller (i) shall not agree
to any compensation or award, and (ii) shall not take any action or fail
to take any action which would cause the compensation to be determined.  All awards and compensation for the taking or
purchase in lieu of condemnation of the Facility or any portion thereof shall
be applied toward the repair, restoration, reconstruction or replacement of the
Facility

 

65

 

(e)           Limitation of Liability.
Except to the extent included in (i) the liquidated damages, (ii) indemnification
obligations related to third party claims, and (iii) other specific
charges expressly provided for herein, neither Party hereunder shall be liable
for special, incidental, exemplary, indirect, punitive or consequential damages
arising out of a Party’s performance or non-performance under this Agreement,
whether based on or claimed under contract, tort (including such Party’s own
negligence) or any other theory at law or in equity. Anything to the contrary
in the Agreement notwithstanding, Seller’s maximum liability under the Agreement
shall not exceed the Prepayment Amount; provided, however, the
foregoing limitation of liability shall not apply to liability arising out of
the gross negligence or willful misconduct of Seller or its
subcontractors.  In addition, to the
extent that Buyer receives any insurance proceeds or other payment from a third
party with respect to its losses, the amounts received shall not count toward
or reduce the liability cap set forth herein.

 

Section 15.19       Severability.  In the event any of the terms, covenants or
conditions of this Agreement, or the application of any such terms, covenants
or conditions, shall be held invalid, illegal or unenforceable by any court
having jurisdiction, all other terms, covenants and conditions of this
Agreement and their application not adversely affected thereby shall remain in
force and effect, provided that the remaining valid and enforceable
provisions materially retain the essence of the Parties’ original bargain.

 

Section 15.20       Confidentiality.

 

(a)           Each Party agrees, and shall use reasonable efforts to
cause its parent, subsidiary and Affiliates, and its and their respective
directors, officers, employees and representatives, as a condition to receiving
confidential information hereunder, to keep confidential, except as required by
law, all documents, data, drawings, studies, projections, plans and other
written information that relate to economic benefits to or amounts payable by
either Party under this Agreement, and, with respect to documents that are
clearly marked “Confidential” at the time a Party shares such information with
the other Party (“Confidential
Information”).  The
provisions of this Section 15.20 shall survive and shall continue
to be binding upon the Parties for period of one (1) year following the
date of termination of this Agreement. 
Notwithstanding the foregoing, information shall not be considered
confidential which (i) is disclosed with the prior written consent of the
originating Party, (ii) was in the public domain prior to disclosure or is
or becomes publicly known or available other than through the action of the
receiving Party in violation of this Agreement, (iii) was lawfully in a
Party’s possession or acquired by a Party outside of this Agreement, which
acquisition was not known by the receiving Party to be in breach of any
confidentiality obligation, or (iv) is developed independently by a Party
based solely on information that is not considered confidential under this
Agreement .

 

(b)           Either Party may, without violating this Section 15.20,
disclose matters that are made confidential by this Agreement:

 

(1)                   To its
counsel, accountants, auditors, advisors, other professional consultants,
credit rating agencies, actual or prospective co-owners, investors, lenders,
underwriters, contractors, suppliers, and others involved in construction,

 

66

 

operation, and financing
transactions and arrangements for a Party or its subsidiaries, affiliates, or
parent;

 

(2)                   To
governmental officials and parties involved in any proceeding in which either
Party is seeking a permit, certificate, or other regulatory approval or order
necessary or appropriate to carry out this Agreement; to governmental officials
or the public as required by any law, regulation, order, rule, ruling or other
Requirement of Law, including without limitation oral questions, discovery
requests, subpoenas, civil investigations or similar processes and laws or
regulations requiring disclosure of financial information, information material
to financial matters, and filing of financial reports.  If a Party is requested or required, pursuant
to any applicable law, regulation, order, rule, order, ruling or other
Requirement of Law, discovery request, subpoena, civil investigation or similar
process to disclose any of the Confidential Information, such Party shall
provide prompt written notice to the other Party of such request or requirement
so that at such other Party’s expense, such other Party can seek a protective
order or other appropriate remedy concerning such disclosure.

 

(c)           Notwithstanding the foregoing or any other provision of
this Agreement, Seller acknowledges that Buyer, as a California municipal
corporation, is subject to disclosure as required by the California Public
Records Act, Cal. Govt. Code §§ 6250, et.
seq. (“CPRA”),
and the Ralph M. Brown Act, Cal. Govt. Code §§ 54950, et. seq. (“Brown Act”). Confidential Information of
Seller provided to Buyer pursuant to this Agreement will become the property of
Buyer and Seller acknowledges that Buyer shall not be in breach of this
Agreement or have any liability whatsoever under this Agreement or otherwise
for any claims or causes of action whatsoever resulting from or arising out of
Buyer’s copying or releasing to a third party any of the Confidential
Information of Seller pursuant to the CPRA or Brown Act. Notwithstanding the
foregoing or any other provision of this Agreement, Buyer may record, register,
deliver and file all such notices, statements, instruments and other documents
as may be necessary or advisable to render fully valid, perfected and
enforceable under all applicable law the credit support contemplated by this
Agreement and the rights, Liens and priorities of Buyer with respect to such
credit support.

 

(d)           If Buyer receives a CPRA request for Confidential
Information of Seller, and Buyer determines that such Confidential Information
is subject to disclosure under the CPRA, then Buyer will notify the Seller of
the request and its intent to disclose the documents. The Buyer, as required by
the CPRA, will release such documents unless the Seller timely obtains a court
order prohibiting such release. If Seller, at its sole expense, chooses to seek
a court order prohibiting the release of Confidential Information pursuant to a
CPRA request, then Seller undertakes and agrees to defend, indemnify and hold
harmless Buyer from and against all suits, claims, and causes of action brought
against Buyer for Buyer’s refusal to disclose Confidential Information of
Seller to any person making a request pursuant to CPRA. Seller’s indemnity
obligations shall include, but are not limited to, all actual costs incurred by
Buyer, and specifically including costs of experts and consultants as well as
all damages or liability of any nature whatsoever arising out of any such
suits, claims, and causes of action brought against Buyer, through and
including any appellate proceedings. Seller’s obligations to Buyer under this
indemnification provision shall be due and payable on a monthly, ongoing basis
within thirty

 

67

 

(30) days after each
submission to Seller of Buyer’s invoices for all fees and costs incurred by Buyer,
as well as all damages or liability of any nature.

 

Section 15.21       Buyer’s Cure Rights and Rights Under
Foreclosure.

 

(a)           Buyer Cure Rights Under the Credit Agreement.  The provisions of the Credit Agreement which
relate to the Buyer’s cure rights and the enforcement thereof shall be in form
and substance reasonably acceptable to Buyer and shall provide Buyer with the
right, but not the obligation, at any time, to pay any or all amounts due from
Seller thereunder and to do any other act or thing required of Seller, in each
case to cure any default of Seller thereunder or to prevent the termination of
the Credit Agreement or the exercise of any remedy by the Facility Lenders
thereunder which would preclude Buyer from exercising its purchase option
pursuant to this Section, as contemplated by Section 1.3 of the Consent
and Agreement.  Under the Credit
Agreement the Facility Lenders shall agree not to exercise remedies under the
Credit Agreement or any related collateral documents which would preclude Buyer
from exercising its purchase option pursuant to this Section, as contemplated
by Section 1.3 of the Consent and Agreement until Buyer has been given
thirty (30) days from its receipt of notice by the Facility Lenders of the
default by Seller to cure a monetary default and, if such default is
non-monetary, sixty (60) days from receipt of such notice (or up to ninety (90)
days, so long as Buyer is diligently pursuing appropriate action to cure and
has made progress toward curing such non-monetary default); and the effect of
any such cure by Buyer shall be as if Seller had cured the applicable default
within the cure period afforded Seller under the Credit Agreement, including
cessation of exercise of remedies by the Facility Lenders. Upon any payment or
cure by the Buyer relating to such a default by Seller, the amounts expended by
Buyer to provide such cure, including any defaulted payment and interest
thereon and all other payments made and expenses incurred by Buyer in providing
such cure shall be recovered by Buyer as follows:  (i) in the event of the payment of the
Prepayment Amount and purchase of Delivered Energy by Buyer, from and after the
date of payment of the Prepayment Amount but subject to the provisions with
respect to Shortfall Energy under Section 10.1 and Section 10.2,
such amounts expended to provide such cure shall be applied in reduction of the
Excess Energy Price payable by Buyer for Excess Energy as provided under Section 7.1,
or (ii) in the event of the purchase of the Facility by Buyer under this
Section, the purchase price shall be reduced by such amounts expended to
provide such cure up to a maximum reduction of $2.5 million. For purposes of
exercising and enforcing its cure rights as set forth in this Section 15.21
and in the Credit Agreement, Buyer shall be an express third party beneficiary
of the applicable provisions under the Credit Agreement.  No action of Buyer taken pursuant to the
exercise of its rights as provided in this Section 15.21 shall be
deemed to be a waiver of any right accruing to Buyer on account of the
occurrence of any matter which constitutes a default or a breach of Seller’s
obligations under the Agreement.

 

(b)           Foreclosure Under the Credit Agreement. In the
event of any default by Seller under the Credit Agreement that has not been
cured and upon receipt by Buyer of a Foreclosure Notice (as defined in the
Consent and Agreement), Buyer shall have the right, at its option, to purchase
the Facility from Seller in lieu of foreclosure as set forth in this Section 15.21.  In the event that Buyer furnishes written
notice to Seller with a copy to the Facility Lenders within sixty (60) days
following Buyer’s receipt of such Foreclosure Notice that it will exercise its
option to purchase the Facility and setting forth the date of such purchase
(which shall be within ninety (90) days following the date of such Foreclosure
Notice), Buyer shall

 

68

 

purchase the Facility from
Seller as hereinafter provided.  In the
case of such purchase of the Facility, Buyer shall furnish Seller with at least
fifteen (15) days written notice of the date of purchase and furnish a copy of
such notice to the Facility Lenders. The purchase price of the Facility shall
be paid by the Buyer to the account designated by the Facility Lenders and
shall be equal to the amount of the Facility Debt. Seller agrees and expressly
represents and warrants to Buyer that its rights to sell the Facility to Buyer
in accordance with the provisions of this Section 15.21 do not and
will not conflict with and are permitted by the Credit Agreement and the deed
of trust and related agreements and documents securing Seller’s performance
under the Credit Agreement.

 

Section 15.22       LADWP Business Policies. Seller shall
use reasonable efforts to comply with the following business policies as
applicable hereunder to the extent that Seller is required to do so under
California law:

 

(a)           LADWP’s Recycling Policy.  The Buyer supports the use of
recycled-content products of all types. 
Recycled-content products help conserve natural resources, including
water and energy, and reduce demands upon landfills.

 

The Seller shall submit all
written documents on paper with a minimum of 30 percent post-consumer recycled
content.  Existing company/corporate
letterhead/stationery that accompanies these documents is exempt from this
requirement.  Documents of two or more pages in
length shall be duplex-copied (double-sided pages). Neon or fluorescent paper
shall not be used in any written documents submitted to Buyer.

 

(b)           Non-Discrimination/Equal
Employment Practices/Affirmative Action Construction &
Non-Construction Agreements. During the performance of this
Agreement, Seller shall not discriminate in its employment practices against
any employee or applicant for employment because of race, religion, national
origin, ancestry, sex, age or physical handicap. All subcontracts awarded under
this Agreement shall contain a like nondiscrimination provision. The applicable
provisions of Executive Order No. 11246 of September 24, 1965; Part 60-741
of 41 Code of Federal Regulations pertaining to handicapped workers, including
60-741.4 Affirmative Action Clause; and Sections 10.8 to 10.13 of the Los
Angeles Administrative Code pertaining to nondiscrimination in employment in
the performance of City of Los Angeles contracts are incorporated herein by
reference and made a part hereof as if they were fully set forth herein.

 

Each of the above documents,
if approved, shall be effective for twelve (12) months following the date of
approval for the Affirmative Action practices.

 

(c)           Supplier Diversity.  It is the policy of Buyer to provide Minority
Business Enterprises (“MBEs”),
Women Business Enterprises (“WBEs”) and all other business enterprises an equal
opportunity to participate in the performance of all LADWP
agreements/contracts. The Seller shall assist LADWP in implementing this policy
and shall use its reasonable efforts to attain MBE and WBE participation of 15
percent and 7 percent, respectively, and to ensure that all available business
enterprises, including MBEs and WBEs, have an equal opportunity to compete for
and participate in the work of this Agreement.

 

69

 

(1)                   MBE/WBE Defined. “Minority Business
Enterprise” (“MBE”)
or “Women’s Business Enterprise” (“WBE”), as used herein means a business
enterprise that meets both of the following criteria:

 

(2)                   A business
that is at least 51 percent owned by one or more minority person(s) or
women or, in the case of any business whose stock is publicly held, at least 51
percent of the stock is owned by one or more minority person(s) or women.

 

(3)                   A business
whose management and daily business operations are controlled by one or more
minority person(s) or women.

 

(d)           Taxpayer Identification
Number (TIN).  Seller declares
that its authorized TIN is 20 8740764. No payment will be made under this
Agreement without a valid TIN number.

 

Section 15.23       Service Contract. The Parties
intend that this Agreement will qualify as a “service contract” as such term is
used in Section 7701(e) of the Code.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

70

 

IN WITNESS WHEREOF, each
Party was represented by legal counsel during the negotiation and execution of
this Agreement and the Parties hereto have executed this Agreement as of the
date set forth at the beginning of this Agreement.

 

 

	
   

  	
   

  	
  Southern California Public
  Power Authority

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  10/18/10

  	
   

  	
  By:

  	
  /s/ Marcie L. Edwards

  
	
   

  	
   

  	
  Name:

  	
  Marcie L. Edwards

  
	
   

  	
   

  	
  Its:

  	
  President

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Attest:

  	
  /s/ ILLEGIBLE

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Milford Wind Corridor
  Phase II, LLC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date:

  	
  March 1, 2010

  	
   

  	
  By:

  	
  /s/ Paul Gaynor 

  
	
   

  	
   

  	
  Name:

  	
  Paul Gaynor 

  
	
   

  	
   

  	
  Its:

  	
  President

  

 

71

 

APPENDIX A

 

MONTHLY PAYMENT SCHEDULE

 

1.             Monthly Energy Payment (MEP) for
Excess Energy.  Buyer shall
make monthly payment to Seller for all Excess Energy pursuant to Section 12.1(a).
The monthly payment for Excess Energy shall be made in accordance to the
following formula:

 

MEP = EEP × DEE

 

Where:

 

EEP is the Excess Energy
Price, which is $40.00 per MWh and escalated at an annual rate of 2.00% for
twenty (20) Contract Years, commencing on January 1, 2011, and continuing
on each anniversary of that date.

 

DEE is the MWh of Delivered
Excess Energy delivered or deemed to be delivered to the Point of Delivery
during the month, as metered according to Section 12.5, as may be
adjusted pursuant to Section 5.6(g).

 

2.             Monthly Payment for Startup and Test
Energy. Buyer shall purchase Startup and Test Energy at a price equal to $
40.00 per MWh. All Startup and Test Energy shall be scheduled in accordance
with Buyer procedures in Section 5.6(a).  Buyer shall receive any and all Environmental
Attributes associated with the Startup and Test Energy, the value of which is
included in this Startup and Test Energy price.

 

3.             Monthly Environmental Attributes
Payment. Commencing on the Prepayment Date, Buyer shall make a monthly payment
to the Seller for the transfer of all Environmental Attributes pursuant to Section 9.1
in an amount equal to $16.50 per MWh times the Facility Metered Output and
escalated at an annual rate of 2.00% for twenty (20) Contract Years, commencing
on January 1, 2011 and continuing on each anniversary of that date.

 

4.             Taxes and Operating Insurance
Payment.  Commencing on the Prepayment
Date, Buyer shall reimburse Seller for all Taxes and Operating Insurance
premiums as set forth in Section 7.1(k)of the Agreement; provided
that such Taxes and Operating Insurance premiums associated with Site Common
Facilities or the Transmission Line will be apportioned to the Seller pro-rata
based on the Site Common Facilities Interests or the Facility Transmission Line
Interests, as the case may be, in the Site Common Facilities or the
Transmission Line, respectively, and in accordance with the common or joint
ownership, operation or use agreements therefor entered into in accordance with
Section 2.7 or Section 2.8, as applicable. Such Taxes
and Operating Insurance payments in the aggregate shall not exceed $4 million
for any Contract Year, escalated at an annual rate of 1.75% commencing on January 1,
2011 and continuing on each anniversary of that date. In the event Seller fails
to pay when due any Taxes or any Operating Insurance premiums, and fails to
make such payment within five days following notice from Buyer of such failure,
Buyer shall have the right to pay such Taxes or Operating Insurance premiums,
as the case may be, and Seller shall refund to Buyer the monthly payments made
by Buyer with respect to such overdue Taxes or Operating Insurance premiums

 

A-1

 

pursuant to Section 7.1(k) with
interest on such amounts of monthly payments at the Present Value Rate.  Thereafter, Buyer shall have the right
exercised on notice to Seller to pay such Taxes or Operating Insurance
premiums, as applicable, in lieu of making monthly payments therefor as
provided in Section 7.1(k).

 

5.             Monthly Payment for Interim Energy. Buyer shall
purchase Interim Energy at a price equal to $70.00 per MWh (the “Interim Energy Rate”).

 

A-2

 

APPENDIX B

 

TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

AND

MILFORD WIND CORRIDOR PHASE II, LLC

 

FACILITY DESCRIPTION AND MILESTONE SCHEDULE

 

ARTICLE
I.   FACILITY DESCRIPTION

 

·                  The Facility
Generating Premises, consisting of at least approximately 5,000 acres, as
described in Exhibit A to this
Appendix B, which consist of leaseholds and other property rights and interests
under the Leases and Property Agreements as set forth in Section 2.6.
Prior to the Commercial Operation Date, Seller shall update this Appendix B to
update Exhibit A, including the
list of the Leases and Property Agreements comprising the Facility Generating
Premises.

 

·                  Exhibit A also provides a Facility layout showing the planned
Facility configuration (which is subject to revision so as to show the actual
Facility configuration), provided that such configuration shall be consistent
with applicable setback requirements of USBLM and Millard County, Utah and
Beaver County, Utah.

 

·                  Rights of way
and easements associated with all of the wind turbine generators and all other
fixtures and personal property associated with the Facility Generating
Premises.

 

·                  Fee ownership
of all wind turbine generators  associated with the Contract Capacity, which is currently
expected to include up to sixty-eight (68) GE-1.5 MW SLE wind turbine
generators and pad-mounted transformers, and all other fixtures and personal
property located on or associated with the Facility Generating Premises.

 

·                  One permanent
meteorological tower appropriately located on the Facility Generating Premises,
as necessary to operate the Facility in accordance with this Agreement.

 

·                  A 34.5-kV power
underground collection system linking each turbine to the next and to the main
step-up transformer located on the Facility Generating Premises and the Site
Common Facilities.

 

·                  One main
step-up transformer to interconnect the 34.5-kV underground collection system
to the Transmission Line located on the Site Common Facilities.

 

·                  The Facility
Transmission Line Interests which shall consist of an ownership interest (which
may be an undivided tenant in common interest) in the property of the
Transmission Line, including the rights of way, easements and other property
rights and interests constituting the

 

B-1

 

Transmission Line right of
way, all associated real or personal property, granted to Seller pursuant to
Agreements  between Milford I and
Seller  and all rights and
interests of the Seller in and to any rights of way, easement or license
agreements, crossing permits, or line crossing agreements.  Prior to the Commercial Operation Date,
Seller shall update this Appendix B to include a list of the agreements granting
to Seller the Facility Transmission Line Interests and governing the ownership
and operation of such interests.

 

·                  The Facility
Common Facilities Interests which shall consist of an ownership interest (which
may be an undivided interest) in the Site Common Facilities, including all
associated real or personal property, granted to Seller pursuant to agreements
between Milford I and Seller. Prior to the Commercial Operation Date, Seller
shall update this Appendix B to include a list of the agreements granting to
Seller the Facility Common Facilities Interests and governing the ownership and
operation of such interests.

 

ARTICLE II.   ESTIMATED PROJECT DEVELOPMENT MILESTONE SCHEDULE

 

	
  1Q10

  	
   

  	
  ·              Submit SF299 To BLM

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Receive Approval from USBLM for Engineering

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Submit Final Layout For Millard County
  Conditional Use Permit

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Submit Final Layout for Beaver County
  Conditional Use Permit

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Amendment to Plan of Development submitted
  to USBLM

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Receive Final, Amended Right of Way Grant
  from USBLM

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Obtain construction water right approvals
  and leases

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Receive layout approval under Millard County, Conditional-Use-Permit
  No. Z-2008-008

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Receive layout approval under Beaver County Conditional Use Permit
  No. 2006-09 Amended

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Receive site layout approval from SITLA for state lands

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Notice To Proceed from USBLM for Construction

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Construction Commences

  

 

B-2

 

	
  2Q10

  	
   

  	
  ·              Complete Civil Construction (Roads/Pads)

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Complete WTG Turbine Foundations

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Start WTG Deliveries to Site

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Start Turbine Erection

  
	
   

  	
   

  	
   

  
	
  3Q10

  	
   

  	
  ·              Complete WTG Turbine Deliveries

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Complete WTG Turbine Erection

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Start Turbine Commissioning

  
	
   

  	
   

  	
   

  
	
  4Q10

  	
   

  	
  ·              Complete Turbine Commissioning

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Construction Demobilization Cleanup/Restoration

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  ·              Commercial Operation Date Achieved

  

 

B-3

 

EXHIBIT A

TO

APPENDIX B

 

Lease and Property Agreements

 

1.                                      Land Lease
Agreement dated June 16, 2008, by and between Elmer Lewis Frasier, as Trustee
of the Elmer Lewis Frasier Revocable Living Trust dated November 16, 2007, as
Lessor, and Milford Wind Corridor Phase II, LLC, a Delaware limited liability
company (“Milford Phase II”), as Lessee. A Memorandum of Lease was
recorded on June 26, 2008 as Entry No. 00166412, Book 489, Page 425 in official
records, Millard County.

 

2.                                      Land Lease
Agreement dated June 30, 2008, by and between Leland E. Finley and Patricia J.
Finley, collectively, as Lessor, and Milford Phase II, as Lessee. A Memorandum
of Lease was recorded on July 18, 2008 as Entry No. 00166689, Book 490, Page
578 in official records, Millard County.

 

3.                                      Land Lease
Agreement dated December 12, 2008, by and between Peter Harris Brockdorff,
Jenny Elise Garver, and Ellen E. Supple, collectively, as Lessor, and Milford
Phase II, as Lessee. A Memorandum of Lease was recorded on February 10, 2009 as
Entry No. 00168679, Book 498, Page 340 in official records, Millard County.

 

4.                                      Land Lease
Agreement dated December 10, 2008, by and between Richard Holdaway, a.k.a.
Richard M. Holdaway, and Noreen Holdaway, collectively, as Lessor, and Milford
Phase II, as Lessee. A Memorandum of Lease was recorded on March 5, 2009 as
Entry No. 00168886, Book 499, Page 446 in official records, Millard County;

 

5.                                      Land Lease
Agreement dated March 6, 2009, by and between Charles F. Larsen, as Lessor, and
Milford Phase II, as Lessee. A Memorandum of Lease was recorded on May 20, 2009
as Entry No. 00169755, Book 503, Page 573 in official records, Millard County;

 

6.                                      Land Lease
Agreement dated December 10, 2008, by and between Anthony A. Weber, Dane A.
Weber. and Robin J. Weber, collectively, as Lessor, and Milford Phase II, as
Lessee. A Memorandum of Lease was recorded on August 14, 2009 as Entry No. 00170562,
Book 507, Page 197 in official records, Millard County.

 

7.                                      Land Lease
Agreement dated March 6, 2009, by and between Audrey Ohnikian, as Lessor, and
Milford Phase II, as Lessee. A Memorandum of Lease was recorded on September
16, 2009 as Entry No. 00170877, Book 508, Page 369 in official records, Millard
County;

 

8.                                      Land Lease
Agreement dated March 6, 2009, by and between Richard Belliston, as Lessor, and
Milford Phase II, as Lessee. A Memorandum of Lease was recorded on October 19,
2009 as Entry No.00171214, Book 510, Page 083 in official records, Millard
County.

 

9.                                      Amended and
Restated Land Lease Agreement, made effective as of February 22, 2007, and
executed as of April 22, 2009, by and between Circle Four LLC, a Delaware
limited

 

B-4

 

liability
company, as Lessor, and Milford Phase II, as Lessee. An Amended and Restated
Memorandum of Lease was recorded on August 14, 2009 as Entry No. 00170558, Book
507, Page 155 in official records, Millard County and recorded August 25, 2009,
as Entry No. 240604, Book 437, Page 860 in official records, Beaver County.

 

10.                               Amended and
Restated Special Use Lease Agreement No. 1599B, dated effective as of April 22,
2009, by and between the State of Utah, acting by and through the School and
Institutional Trust Lands Administration, as Lessor, and Milford Phase II, as
Lessee. An Amended and Restated Memorandum of Lease was recorded on August 14,
2009 as Entry No. 00170560, Book 507, Page 173 in official records, Millard
County and recorded August 25, 2009 as Entry No. 240606, Book 438, Page 1 in
official records, Beaver County.

 

B-5

 

Facility
Layout

 

 

B-6

 

APPENDIX C

 

TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

AND

MILFORD WIND CORRIDOR PHASE II, LLC

 

BUYER AND SELLER BILLING, NOTIFICATION AND

SCHEDULING CONTACT INFORMATION

 

1.                                      Authorized
Representative. Correspondence pursuant to Section
15.1 shall be transmitted to the following addresses:

 

1.1                               If to Buyer:

 

Executive
Director

Southern
California Public Power Authority

225
S. Lake Avenue, Suite 1250

Pasadena,
CA 91101

Telephone:  626-793-9364

Facsimile:
  626-793-9461

 

With a copy to:

 

Los
Angeles Department of Water and Power

Attention:
Manager of Power Contracts

RE:
SCPPA Contract                     
[to be added following LADWP approval]

111
N. Hope Street, Room 1246

Los
Angeles, California 90012

 

1.2                               If to Seller:

 

Milford
Wind Corridor Phase II, LLC

c/o
First Wind

Attn:
Vice President, Operations

42015
Remington Ave, Suite 101

Temecula,
CA 92590

Telephone:  951-294-5570

Facsimile: 
 951-294-5590

 

C-1

 

With
a copies to:

 

Milford
Wind Corridor Phase II, LLC

c/o
First Wind

Attn:
Senior Vice President, Asset Management

179
Lincoln Street, Suite 500

Boston,
MA 02111

Telephone:  617-960-2888

Facsimile:   619-960-2889

 

And
to:

 

Milford
Wind Corridor Phase II, LLC

c/oFirst Wind

Attn: General Counsel

179
Lincoln Street, Suite 500

Boston,
MA 02111

Telephone:  617-960-2888

Facsimile:   619-960-2889

 

2.                                      Billings and
payments pursuant to Section 7.1 and Appendix A shall be
transmitted to the following addresses:

 

2.1                               If Billing to
Buyer:

 

Finance
and Accounting Manager

Southern
California Public Power Authority

225
S. Lake Avenue, Suite 1250

Pasadena,
CA 91101

Telephone:  626-793-9364

Facsimile:   626-793-9461

 

With
a copy to:

 

Los
Angeles Department of Water and Power

Accounting Division – Accounts Payable Business Unit

P.O. Box 51211

Room 424

RE:
SCPPA Contract                    
[to be added following LADWP approval]

Los
Angeles, California 90051-5511

 

2.2                               If Payment to
Buyer:

 

Finance
and Accounting Manager

Southern
California Public Power Authority

225
S. Lake Avenue, Suite 1250

Pasadena,
CA 91101

 

C-2

 

Telephone:  626-793-9364

Facsimile
:  626-793-9461

 

With a copy to:

 

Los Angeles Department of
Water and Power

Accounting Division – Accounts Payable Business Unit

P.O. Box 51211 

Room 424

RE:  SCPPA Contract                 
[to be added following LADWP approval]

Los Angeles, California
90051-5511

 

3.                                      All notices
(other than scheduling notices) required under the Agreement shall be sent by registered
or certified mail, postage prepaid, to the address specified below.

 

If to Buyer:

 

Executive Director

Southern California Public
Power Authority

225 S. Lake Avenue, Suite
1250

Pasadena, CA 91101

Telephone:  626-793-9364

Facsimile:
  626-793-9461

 

With
a copy to:

 

Los
Angeles Department of Water and Power

Attention:  Manager of Power Contracts

RE:
SCPPA Contract                    
[to be added following LADWP approval]

111
N. Hope Street, Room 1246

Los Angeles, California 90012

 

If
to Seller:

 

Milford
Wind Corridor Phase II, LLC

Attn:  Senior
Vice President, Asset Management

179
Lincoln Street, Suite 500

Boston,
MA 02111

Telephone:  617-960-2888

Facsimile: 
 617-960 2889

 

With
copies to:

 

Milford
Wind Corridor Phase II, LLC

c/o
First Wind

Attn:
General Counsel

179
Lincoln Street, Suite 500

 

C-3

 

Boston, MA 02111

Telephone:  617-960-2888

Facsimile: 
 617-960-2889

 

And to:

 

Milford Wind Corridor Phase
II, LLC

c/o First Wind

Attn: Vice President,
Operations

42015 Remington Ave, Suite
101

Temecula,
CA 92590

Telephone:  951-294-5570

Facsimile:
  951-294-5590

 

4.                                      All notices
related to scheduling of the Facility shall be sent to the following address:

 

If
to Buyer:

 

Energy
Systems Manager

Southern
California Public Power Authority

225
S. Lake Avenue, Suite 1250

Pasadena,
CA 91101

Telephone:  626-793-9364

Facsimile:
  626-793-9461

 

With
a copy to:

 

Los
Angeles Department of Water and Power

Attention: Manager of Wholesale Energy Resources

RE:
SCPPA Contract                      
[to be added following LADWP approval]

111
N. Hope Street

Room 1148 (ECC)

Los
Angeles, California 90012-5701

 

If
to Seller:

 

DACC
Operator

First
Wind Operations and Maintenance

42105
Remington Ave,

Suite
101

Temecula,
CA 92590

Telephone:  951-294-5600

Facsimile: 
 951-294-5590

 

C-4

 

With
copies to:

 

Milford
Wind Corridor Phase II, LLC

c/o First Wind

Attn: Vice President, Asset Management

179 Lincoln Street

Suite 500

Boston, MA 02111 

Telephone:  617-960-2888

Facsimile:   617-960-2889

 

And
to:

 

Milford
Wind Corridor Phase II, LLC

c/o First Wind

Attn: Manager, Scheduling

34 Tower Road

Mars Hill, ME 04758

Telephone:  207-217-7947

 

And
to:

 

Milford
Wind Corridor Phase II, LLC

c/o First Wind

Attn: General Counsel

179 Lincoln Street

Suite 500

Boston, MA 02111

Telephone:  617-960-2888

Facsimile:   617-960-2889

 

C-5

 

APPENDIX D

 

TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

AND

MILFORD WIND CORRIDOR PHASE II, LLC

 

FORM OF ATTESTATION

 

               (Seller)               
Environmental Attribute Attestation and Bill of Sale

 

                                          
(“Seller”) hereby sells, transfers and delivers to Southern California Public
Power Authority (“Buyer”) the Environmental Attributes and Environmental
Attribute Reporting Rights associated with the generation from the Facility
described below:

 

	
  Facility name and
  location:

  	
   

  	
   

  
	
  Fuel Type:

  	
   

  	
   

  
	
  Capacity (MW):         

  	
   

  	
  Operational Date:

  

 

	
  As
  applicable: CEC Reg.  no.              

  	
  Energy
  Admin.  ID  no.              

  	
  Q.F.  ID
  no.            

  

 

	
   

  	
  Dates

  	
   

  	
  MWhrs generated

  	
   

  
	
   

  	
                             20  

  	
   

  	
   

  	
   

  
	
   

  	
                             20  

  	
   

  	
   

  	
   

  
	
   

  	
                             20  

  	
   

  	
   

  	
   

  

 

in the amount of one
Environmental Attribute or its equivalent for each megawatt hour generated.

 

Seller further attests,
warrants and represents as follows:

 

	
  i)

  	
  the information provided
  herein is true and correct;

  
	
   

  	
   

  
	
  ii)

  	
  its sale to Buyer is its
  one and only sale of the Environmental Attributes and associated
  Environmental Attribute Reporting Rights referenced herein;

  
	
   

  	
   

  
	
  iii)

  	
  the Facility generated and
  delivered to the grid the Energy in the amount indicated as undifferentiated
  Energy; and

  
	
   

  	
   

  
	
  iv)

  	
  Seller owns the Facility
  and each of the Environmental Attributes and Environmental Attribute
  Reporting Rights associated with the generation of the indicated Energy for
  delivery to the grid have been generated and sold by the Facility.

  

 

D-1

 

This serves as a bill of
sale, transferring from Seller to Buyer all of Seller’s right, title and
interest in and to the Environmental Attributes and Environmental Attribute
Reporting Rights associated with the generation of the Energy for delivery to
the grid.

 

	
   

  	
  Contact Person:

  	
   

  	
     tel:

  

 

D-2

 

SUBJECT TO REVISION

 

APPENDIX E

 

TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

AND

MILFORD WIND CORRIDOR PHASE II, LLC

 

FORM OF SECURITY INTEREST

 

DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING

 

THIS DEED OF TRUST, SECURITY
AGREEMENT AND FIXTURE FILING (“Deed of Trust”) is made effective                             ,
2010, by and among Milford Wind Corridor Phase II, LLC, a Delaware limited
liability company, having an office and mailing address c/o First Wind Energy,
LLC, 85 Wells Avenue, Suite 305, Newton, Massachusetts 02459 (hereinafter “Trustor”),
                                                             
(hereinafter “Trustee”), and Southern California Public Power Authority,
a joint power agency created pursuant to the laws of the State of California
and having an office and mailing address at 225 South Lake Ave, Pasadena, CA
91101 (hereinafter “Beneficiary”).

 

WITNESSETH:

 

1.                                      Grant. Trustor
grants, transfers, assigns, conveys and warrants to Trustee, for the benefit of
Beneficiary, and its successors and assigns, IN TRUST, WITH POWER OF SALE AND
RIGHT OF ENTRY AND POSSESSION, all right, title and interest of Trustor in and
to all of the following (collectively the “Subject Property”):

 

a.                                      the leasehold
interests in each of the parcels of real property described on Exhibit A that are identified as a “Leasehold
Parcel” thereon (each a “Leasehold Parcel” and collectively the “Leasehold
Parcels”), pursuant to each of the land lease agreements described on Exhibit B attached hereto and made a part
hereof (as the same may be amended, restated, supplemented or otherwise
modified from time to time (each a “Ground Lease” and collectively, the “Ground
Leases”); and the leasehold estates in the Leasehold Parcels created by the
Ground Leases, and all other rights of Trustor under the Ground Leases,
including all of Trustor’s unexpired estate, title, interest and term of years
by virtue of the Ground Leases and any and all credits, deposits, options to
renew or extend, options to purchase, rights of first refusal, and any other
rights and privileges of Trustor thereunder;

 

b.                                      the
rights-of-way and other interests granted in and with respect to each of the
parcels of real property described on Exhibit
A that are identified as a “BLM Parcel” thereon (each a “BLM
Parcel” and collectively the “BLM Parcels”), pursuant to each of the
Right-of-

 

E-1

 

Way Grant/Temporary Use
Permits issued by the United States Department of Interior Bureau of Land
Management (the “BLM”) described on Exhibit
B attached hereto and made a part hereof (as the same may be
amended, restated, supplemented or otherwise modified from time to time (each a
“BLM Grant” and collectively, the “BLM Grants”); and the easement
estates in the BLM Parcels created by the BLM Grants, and all other rights of
Trustor under the BLM Grants, including all of Trustor’s unexpired estate,
title and interest by virtue of the BLM Grants and any and all credits,
deposits, options to renew or extend, and any other rights and privileges of
Trustor thereunder. The Leasehold Parcels, and BLM Parcels are referred to
collectively as the “Land”);

 

c.                                       all
appurtenances now or hereafter belonging or in anywise appertaining to the
Land, including, without limitation, all easements, rights-of-way and rights
used in connection with or as a means of access to any portion of the Land, all
right, title or interest of Trustor in and to any road or highway adjoining the
Land or any part thereof and all strips and gores belonging, adjacent or
pertaining to the Land; and any after-acquired title to any of the foregoing
(all of the foregoing is referred to collectively as the “Appurtenances”);

 

d.                                      All buildings,
structures, replacements, furnishings, fixtures, fittings and other
improvements and property of every kind and character now or hereafter located
or erected on the Land and owned or purported to be owned by Trustor, or leased
or purported to be leased to Trustor, together with all building or
construction materials, equipment, appliances, machinery, fittings, apparatus,
fixtures and other articles of any kind or nature whatsoever now or hereafter
found on, affixed to or attached to the Land and owned or purported to be owned
by Trustor or leased or purported to be leased to Trustor, (all of the
foregoing is herein referred to collectively as the “Improvements”).  The Land, Improvements and Appurtenances are
herein referred to collectively as the “Real Estate”);

 

e.                                       All equipment
now or hereafter owned or purported to be owned by Trustor and used or useful
in connection with the Real Estate, regardless of whether located on the Real
Estate or located elsewhere including, without limitation, all rights of Trustor
under any lease to equipment and fixtures and other items of personal property
at any time (all of the foregoing is herein referred to collectively as the “Equipment”);

 

f.                                        All option
rights, purchase or sale contracts, condemnation claims, demands, awards and
settlement payments, insurance contracts, insurance payments and proceeds,
unearned insurance premiums, warranties, guarantees, utility deposits, books
and records and general intangibles of Trustor relating to the Real Estate or
the Equipment and any other intangible property of Trustor related to the Real
Estate, the Equipment, the Facility Transmission Line Interests or the Facility
Common Facilities’ Interests (hereafter defined) whether now existing or
hereafter obtained or arising (all of the foregoing is herein referred to
collectively as the “Intangibles Rights and Interests”);

 

g.                                       All rents,
issues, profits, royalties, avails, income and other benefits derived or owned
by Trustor directly or indirectly from the Real Estate or the Intangibles
Rights and Interests (all of the foregoing is herein collectively called the “Revenues”);

 

E-2

 

h.                                      All rights of
Trustor, if any, to all plans and specifications, designs, drawings and other
matters prepared in connection with the Real Estate or the Equipment (all of
the foregoing is herein called the “Plans”);

 

i.                                          All rights of
Trustor under any contracts executed by Trustor with any provider of goods or
services for or in connection with any construction, operation, maintenance or
services performed or to be performed in connection with the Real Estate or the
Equipment, including, without limitation, any construction contracts and
management contracts (all of the foregoing are herein referred to collectively
as the “Contracts for Construction or Services”);

 

j.                                         All rights of
Trustor in any permits, approvals, consents and other authorizations in
connection with the Real Estate (all of the foregoing is herein referred to
collectively as the “Permits”);

 

k.                                      to the extent
not included in (a) through (j) above, all rights of Trustor in and to the
properties, easements, license agreements, crossing permits, right-of-way
agreements, line crossing agreements and other rights in land running in favor
of Trustor, structures, equipment and facilities, including, without
limitation, those described in Exhibit C
as the Facility Transmission Line Interests (the “Facility Transmission Line
Interests”);

 

l.                                          to the extent
not included in (a) through (j) above, all rights of Trustor in and to the
properties, structures, equipment and facilities described in Exhibit D as the Facility Common
Facilities’ Interests (the “Facility Common Facilities’ Interests”); and

 

m.                                  All other
property or rights of Trustor of any kind or character related to the Real
Estate, the Equipment, the Intangible Rights and Interests, the Revenues, the
Plans, the Contracts for Construction or Services, the Permits, the Facility
Transmission Line Interests or the Facility Common Facilities’ Interests, and
all substitutions, replacements and additions thereto, whether now existing or
hereafter acquired, and all proceeds (including insurance and condemnation
proceeds) and products of any of the foregoing.

 

2.                                      Secured
Obligations.  Trustor
makes the grant, conveyance, transfer and assignment set forth above for the
purpose of securing the payment and performance of (i) all obligations of
Trustor under the Power Purchase Agreement dated March 1, 2010, between
Trustor, as seller, and Beneficiary, as buyer (as amended, supplemented or
modified from time to time, the “Power Purchase Agreement”), which
provides for remedies to be exercised following a default (a “Default”)
under Section 14.1 of the Power Purchase Agreement.  The maximum principal amount secured by this
Deed of Trust is indefinite, but in no event shall it exceed                                       
Dollars ($                           ).

 

3.                                      Trustor
Covenants and Warranties. Trustor hereby covenants with and warrants
to the Trustee and Beneficiary that: (i) at the execution and delivery hereof
it is the owner of a valid leasehold interest in the Leasehold Parcels, and of
a valid right way interest in the BLM Parcels, and that it is the owner or
lessee of the other Subject Property, that the Subject Property is free from
all encumbrances whatsoever other than: (1) any lien expressly provided for or
permitted by the terms of the Power Purchase Agreement, (2) liens for taxes not
yet due or for taxes being contested in good faith by appropriate proceedings
so long as such proceedings do

 

E-3

 

not involve a material risk
of the sale, forfeiture, loss or restriction on the use of the Subject Property
or any part thereof; (3) suppliers’, vendors’, mechanics’, workman’s, repairman’s,
employees’ or other like liens arising in the ordinary course of business for
work or service performed or materials furnished in connection with the Subject
Property for amounts the payment of which is either not yet delinquent or is
being contested in good faith by appropriate proceedings so long as such
proceedings do not involve a material risk of the sale, forfeiture, loss or
restriction on use of the Subject Property or any part thereof, and (4)
easements, rights of way, use rights, exceptions, encroachments, reservations,
restrictions, conditions or limitations, provided that in each case the same do
not interfere with or impair in any material respect with the operation or use
of the Subject Property or any rights or interests therein as contemplated by
the Power Purchase Agreement (collectively, the “Permitted Encumbrances”);
(ii) each of the Ground Leases and the BLM Grants is in full force and effect
and has not been modified or terminated and that Trustor is not in default
under any of the Ground Leases or BLM Grants; (iii) Trustor has good and lawful
right to sell, mortgage and convey the Subject Property; and (iv) Trustor and
its successors and assigns will forever warrant and defend the Subject Property
against all claims and demands whatsoever.

 

To protect the security of
this Deed of Trust, Trustor agrees with the Trustee and Beneficiary as follows:

 

a.                                      Payment of
Taxes. Trustor will pay or cause to be paid when due all taxes and
assessments, general or special, and any and all levies, claims, charges,
expenses and liens, ordinary or extraordinary, governmental or
non-governmental, statutory or otherwise, due or to become due, that may be
levied, assessed, or charged on or against the Subject Property, and will
submit to Beneficiary all receipts showing payment of all of such taxes,
assessments and charges promptly after Beneficiary’s written request therefor.

 

b.                                      Maintenance and
Repair.  Trustor will operate and
maintain the Subject Property as required by the Power Purchase Agreement and
not commit, suffer, or permit waste of any part of the Subject Property.

 

c.                                       Sales; Liens.  Except as permitted by the Power Purchase
Agreement, Trustor will not sell, contract to sell, assign, transfer or convey,
or permit to be transferred or conveyed, the Subject Property or any part
thereof or any interest or estate in any thereof; or create, suffer or permit
to be created or to exist any mortgage, lien, claim, security interest, charge,
encumbrance or other right or claim of any kind whatsoever upon the Subject
Property or any part thereof.

 

d.                                      Insurance. Trustor will
at all times maintain or cause to be maintained on the Subject Property all
insurance required under the Power Purchase Agreement, the Ground Leases, the
BLM Grants, and the Appurtenance Instruments (defined below). Any proceeds of
such insurance shall be paid and accounted for as provided for in the Power
Purchase Agreement, the Ground Leases, the BLM Grants, and the Appurtenance
Instruments, as applicable. Nothing contained in this Deed of Trust shall
create any responsibility or obligation on Beneficiary to collect any amounts
owing on any insurance policy or resulting from any condemnation, to rebuild or
replace any damaged or destroyed Improvements or other portions of the Subject
Property or to perform any other act hereunder. Beneficiary shall not by the
fact

 

E-4

 

of approving, disapproving,
accepting, preventing, obtaining or failing to obtain any insurance, incur any
liability for or with respect to the amount of insurance carried, the form or
legal sufficiency of insurance contracts, solvency of insurance companies, or
payment or defense of lawsuits, and Trustor hereby expressly assumes full
responsibility therefor and all liability, if any, with respect thereto.

 

e.                                       Eminent Domain.  If the Subject Property, or any part or
interest in any thereof, is threatened or taken by condemnation, Trustor shall
take all action reasonably required by Beneficiary in order to protect Trustor’s
and Beneficiary’s rights with respect to any such taking, including the
commencement of, appearance in or prosecution of any appropriate action or
proceeding. Trustor and Beneficiary shall apply all condemnation awards as
provided in the Power Purchase Agreement.

 

f.                                        Governmental
Requirements. Trustor will at all times fully comply in all
material respects with, and cause the Subject Property and the use and
condition thereof fully to comply in all material respects with, all federal,
state, county, municipal, local and other governmental statutes, ordinances,
requirements, regulations, rules, orders and decrees of any kind whatsoever
that apply or relate to Trustor or the Subject Property or the use thereof
(including, without limitation, those relating to land use and development,
construction, access, water rights and use, and hazardous waste and
substances), and will comply with all conditions and requirements necessary to
preserve and extend any and all rights, licenses, permits, privileges,
franchises and concessions which are applicable to Trustor or have been granted
for the Subject Property or the use thereof, in each case to the extent
required under the Power Purchase Agreement. 
Unless required by applicable law, or unless Beneficiary has otherwise
first agreed in writing or under the Power Purchase Agreement, Trustor shall
not make or allow any changes to be made in the nature of the occupancy or use
of the Subject Property or any portion thereof for which the Subject Property
or such portion was intended at the time this Deed of Trust was delivered.  Trustor shall not initiate or acquiesce in
any change in any zoning or other land use classification now or hereafter in
effect and affecting the Subject Property or any part thereof without in each
case obtaining Beneficiary’s prior written consent thereto.

 

g.                                       No Mechanics’
Liens.  Trustor will not suffer any
construction, mechanic’s, laborer’s or materialmen’s lien or similar liens to
be created or remain outstanding upon the Subject Property or any part thereof,
other than those liens that are Permitted Encumbrances.  Trustor agrees to promptly deliver to
Beneficiary a copy of any notices that Trustor receives with respect to any
recorded lien or the foreclosure thereof.

 

h.                                      Continuing Priority.  Trustor will pay such fees, taxes and
charges, execute and record or file (at Trustor’s expense) such deeds,
conveyances, mortgages and financing statements and do all such other acts and
things as Beneficiary may from time to time reasonably request to establish and
maintain this Deed of Trust as a valid and perfected first and prior lien on
and security interest in the Subject Property.

 

i.                                          Environmental
Laws. Trustor shall take all appropriate response actions, including any
removal and remedial actions, in the event of a release, emission, discharge or
disposal of Hazardous Materials, as defined hereinafter, in, on, under, or
about the Subject Property and shall operate and maintain the Subject Property
in compliance with all

 

E-5

 

Environmental Laws, as
defined hereinafter. The term “Hazardous Materials” shall mean dangerous,
toxic, or hazardous pollutants, contaminants, chemicals, wastes, materials or
substances, as defined in or governed by the provisions of any Environmental
Law. “Environmental Law” shall mean any federal, state or local laws,
statutes, ordinances, rules, regulations, orders, or permits now in effect or
hereinafter enacted, pertaining to the public health, safety, industrial hygiene,
or the environmental conditions on, under or about the Real Estate.

 

j.                                         Corrective
Action. In the event Trustor is in material breach of any of its
representations, warranties or agreements as set forth in this Deed of Trust,
then, without limiting Beneficiary’s other rights hereunder, Trustor, at its
sole expense, shall take all actions required, including, without limitation,
environmental cleanup of the Subject Property, to comply with the
representations, warranties, and covenants contained herein and with all
applicable legal requirements and, in any event, shall take all actions deemed
necessary under all applicable Environmental Laws.

 

k.                                      Right of
Inspection.  Trustor
hereby grants to Beneficiary, its agents, attorneys, employees, consultants, contractors,
successors and assigns, an irrevocable license and authorization, upon
reasonable notice, to enter upon and inspect the Subject Property and
facilities thereon, and perform such tests (including without limitation, if a
Phase I Environmental Site Assessment, as hereinafter defined, provides
evidence of a breach of Trustor’s covenants with respect to Hazardous Materials
hereunder, subsurface testing, soils and groundwater testing, and other tests
which may physically invade the Subject Property) as Beneficiary, in its
reasonable discretion, determines are necessary to protect its interest in the
Subject Property or in connection with any foreclosure (or transfer in lieu of
foreclosure) with respect to the Subject Property; provided, however, that under
no circumstances shall Beneficiary be obligated to perform such inspections or
tests, and provided further that Beneficiary indemnifies Trustor for the gross
negligence or willful misconduct of Beneficiary with respect to any such tests.
In making such inspections, Beneficiary shall be accompanied by a
representative of Trustor, if requested by Trustor, and shall comply with
Trustor’s safety requirements. Trustor shall make its representative reasonably
available to Beneficiary in order to accommodate Beneficiary’s inspections as
provided in this paragraph.  The term “Phase
I Environmental Site Assessment” shall mean an assessment of the
environmental condition of the Real Estate conducted in accordance with
American Society for Testing Materials (“ASTM”) standards.

 

l.                                          Indemnity.  Trustor agrees to indemnify and hold
Beneficiary, its directors, employees, agents, and its successors and assigns,
harmless from and against any and all claims, losses, damages, liabilities,
fines, penalties, charges, judgments, administrative orders, remedial action
requirements, enforcement actions of any kind, and all costs and expenses
incurred in connection therewith (including without limitation reasonable
attorneys’ fees and expenses) arising directly or indirectly, in whole or in
part, out of any failure of Trustor to comply with the environmental
representations, warranties, and covenants contained herein. This indemnity
shall in no way diminish any additional indemnification obligations of the
parties set forth in the Power Purchase Agreement.

 

E-6

 

m.                                  Continuation of
Representations, Warranties, Covenants and Indemnities. Trustor’s
representations, warranties, covenants, and indemnities contained herein shall
survive the occurrence of any event whatsoever, including, without limitation,
the satisfaction of the obligations secured hereby, the reconveyance or
foreclosure of this Deed of Trust, the acceptance by Beneficiary of a deed in
lieu of foreclosure, or any transfer or abandonment of the Subject Property

 

n.                                      Beneficiary’s
Performance.  If Trustor
fails to pay or perform any of its obligations herein contained (including
payment of expenses of foreclosure and court costs), Beneficiary may (but need
not), as agent or attorney-in-fact of Trustor, make any payment or perform (or
cause to be performed) any obligation of Trustor hereunder, in any form and
manner deemed expedient by Beneficiary, and any amount so paid or expended
(plus reasonable compensation to Beneficiary for its out-of-pocket and other
expenses for each matter for which it acts under this Deed of Trust), with
interest thereon at the rate of one percent (1%) per month, or the maximum rate
permitted by law, whichever is less (the “Default Rate”), shall be added
to amount hereby secured and shall be repaid to Beneficiary upon demand. By way
of illustration and not in limitation of the foregoing, Beneficiary may (but
need not) do all or any of the following: 
make lease payments, payments of principal or interest, or other amounts
on the Ground Lease or the BLM Grants and any other lien, encumbrance or charge
on any of the Subject Property; complete construction; make payments with
respect to maintaining and operating the Subject Property, make repairs; obtain
insurance and pay premiums therefor; purchase, discharge, compromise or settle
any tax lien or any other lien, encumbrance, suit, proceeding, title or claim
thereof; contest any tax or assessment; and redeem from any tax sale or
forfeiture affecting the Subject Property. In making any payment or securing
any performance relating to any obligation of Trustor hereunder, Beneficiary
shall be the sole judge of the legality, validity and amount of any lien or
encumbrance and of all other matters necessary to be determined in satisfaction
thereof. No such action of Beneficiary shall ever be considered as a waiver of
any right accruing to it on account of the occurrence of any matter which
constitutes a Default or a breach of Trustor’s obligations under this Deed of Trust.

 

o.                                      Subrogation.  To the extent that Beneficiary, on or after
the date hereof, pays any sum under any provision of law or any instrument or
document creating any lien or other interest prior or superior to the lien of
this Deed of Trust, Beneficiary shall have and be entitled to a lien or other
interest on the Subject Property equal in priority to the lien or other
interest discharged and Beneficiary shall be subrogated to, and receive and
enjoy all rights and liens possessed, held or enjoyed by, the holder of such
lien, which shall remain in existence and benefit Beneficiary in securing the
obligations secured hereby.

 

p.                                      Covenants
Regarding Ground Leases, BLM Grants, and Appurtenance Instruments.

 

i.                                          Each of the
Ground Leases, BLM Grants and other instruments creating Trustor’s rights in
the Appurtenances, including, written easements, licenses, crossing permits or
other permits or agreements within the Subject Property (the “Appurtenance
Instruments”) is valid and is in full force and effect in accordance with
the terms thereof and has not been modified except as herein set forth. All of
the rents and other charges due and payable under the Ground Leases, BLM Grants
and Appurtenance Instruments prior to the execution

 

E-7

 

hereof have been paid, all
of the terms, conditions and agreements contained in the Ground Leases, BLM
Grants and Appurtenance Instruments have been performed and no default exists
under any of the Ground Leases, BLM Grants, or Appurtenance Instruments. This
Deed of Trust is lawfully executed and delivered and is, and will be kept, a
valid lien on the interests of Trustor therein.

 

ii.                                       Trustor will
promptly pay, or cause to be paid, all rents, charges and other sums or amounts
required to be paid by Trustor under the terms of the Ground Leases, BLM
Grants, and Appurtenance Instruments and will further timely and fully keep and
perform all of the covenants, terms, conditions and provisions of the Ground
Leases, BLM Grants, and Appurtenance Instruments required to be performed and
complied with by the tenant or grantee thereunder, and will not do or suffer to
be done anything the doing of which, or refrain from doing anything the
omission of which, will materially impair or have a material adverse effect upon
the security of this Deed of Trust. 
Trustor shall provide evidence of such payments promptly upon the
written request of Beneficiary.  Until
the obligations secured hereby have been indefeasibly paid in full, Trustor
shall exercise all options to renew the Ground Leases, BLM Grants, and
Appurtenance Instruments to the extent provided for in such agreements. Trustor
shall do, or cause to be done, all things necessary to preserve and keep
unimpaired the rights of Trustor as lessee or grantee under the Ground Leases,
BLM Grants, and Appurtenance Instruments and to prevent any default under such
agreements or any termination, surrender, cancellation, forfeiture or
impairment thereof, except as permitted under the Power Purchase Agreement.

 

iii.                                    Except as
permitted or required under the Power Purchase Agreement and under Section 3(p)(ii)
above, Trustor shall not extend, supplement, cancel or surrender or in any
material way modify the terms of any Ground Lease, the BLM Grants, or Appurtenance
Agreements without Beneficiary’s prior written consent, which consent shall not
be withheld unless such action is likely to adversely affect the security of
this Deed of Trust. Trustor expressly releases and surrenders unto Beneficiary
all its right, power and authority to cancel, surrender, amend, modify,
supplement or alter in any way the terms and provisions of the Ground Leases,
BLM Grants, or Appurtenance Agreements, except as specifically provided in the
Power Purchase Agreement or except with Beneficiary’s prior written consent,
which consent not be withheld unless such action is likely to adversely affect
the security of this Deed of Trust. 
Trustor will use commercially reasonable efforts to enforce the
provisions of the Ground Leases, BLM Grants, and Appurtenance Instruments short
of termination thereof to the end that Trustor may enjoy all of the rights
granted to it as lessee or grantee under the Ground Leases, BLM Grants, or
Appurtenance Agreements. Trustor will promptly notify Beneficiary of any
material breach by the lessor or grantor under any of the Ground Leases, BLM
Grants, or Appurtenance Agreements, and of any inability of such lessor or
grantor to perform its obligations under any of the Ground Leases, BLM Grants,
or Appurtenance Agreements. Upon a Default, Trustor assigns to Beneficiary the
proceeds of any claim Trustor may have against such lessor or grantor for such
breach or inability. In the event of a Default or a material breach by Trustor
of its obligations under this Deed of Trust, Beneficiary shall have the sole
right to choose either (i) to proceed against such lessor or grantor in
Trustor’s name or in Beneficiary’s name as agent for Trustor, and Trustor
agrees to cooperate with Beneficiary in such action and to execute all
documents required by Beneficiary in furtherance of such action, or (ii) to
have Trustor proceed on its and Beneficiary’s behalf, in which event
Beneficiary may participate in

 

E-8

 

such proceedings, and
Trustor will deliver to Beneficiary all documents required by Beneficiary for
such participation. Trustor shall, at its expense, diligently prosecute such
proceedings, shall deliver to Beneficiary copies of all papers served in
connection therewith and shall consult and cooperate with Beneficiary and its
attorneys and agents, provided that no settlement of such proceedings may be
made by Trustor without Beneficiary’s prior written consent.

 

iv.                                   Trustor shall
promptly notify Beneficiary of any material default by Trustor under any Ground
Lease, BLM Grant or Appurtenance Instrument, or of the receipt by it of any
notice of default from the lessor or grantor thereunder or notice of
termination of any Ground Lease, BLM Grant or Appurtenance Instrument pursuant
to the provisions thereof and shall furnish to Beneficiary promptly any and all
information which Beneficiary may reasonably request concerning the performance
by Trustor of the covenants of the Ground Leases, the BLM Grants, the
Appurtenance Instruments, or of this Deed of Trust. Trustor shall promptly
deposit with Beneficiary a copy of the Ground Leases, BLM Grants, and the
Appurtenance Instruments, certified as true, correct and complete by Trustor,
and any and all documentary evidence received by it showing compliance by
Trustor with the provisions of the Ground Leases, BLM Grants, and Appurtenance
Instruments, and will also deliver to Beneficiary a copy of any notice,
communication, plan, specification or other instrument or document received or
given by it in any way relating to or affecting the Ground Leases, BLM Grants,
or Appurtenance Instruments, which may adversely affect the estate of the
lessor or the lessee in or under the Ground Leases or in the real estate
thereby demised, or the estate of the Trustor under the BLM Grants or
Appurtenance Instruments.

 

q.                                      Covenants
Regarding Facility Transmission Line Interests and the Facility Common
Facilities’ Interests.

 

i.                                          Trustor has
provided Beneficiary with true and correct copies of all easements, rights of
way, common ownership, maintenance and other agreements existing with regard to
the Facility Transmission Line Interests and the Facility Common Facilities’
Interests (collectively, and together with any other similar agreement entered
into by Trustor after the date hereof, the “Transmission and Common Facility
Agreements”). Each of the Transmission and Common Facility Agreements is a
valid and existing agreement, is in full force and effect in accordance with
the terms thereof and has not been modified, except as set forth herein. All of
payments and other charges payable by Trustor under the Transmission and Common
Facility Agreements prior to the execution hereof have been paid, all of the
terms, conditions and agreements contained in the Transmission and Common
Facility Agreements have been performed and no default exists under the
Transmission and Common Facility Agreements. This Deed of Trust is and will be
kept a valid lien on the rights and interests of Trustor therein.

 

ii.                                       Trustor will
promptly pay, or cause to be paid, all rents, charges and other sums or amounts
required to be paid by Trustor under the terms of the Transmission and Common
Facility Agreements, will further timely and fully keep and perform all of the
covenants, terms, conditions and provisions of the Transmission and Common
Facility Agreements required to be performed and complied with by Trustor
thereunder, and will not do or suffer to be done anything the doing of which,
or refrain from doing anything the omission of which, will impair the security
of this Deed of Trust.  Trustor shall
provide evidence of such payments promptly upon the request of Beneficiary.
Until the obligations secured hereby have

 

E-9

 

been indefeasibly paid in
full, Trustor shall keep the Transmission and Common Facility Agreements in
full force and effect. Trustor shall do, or cause to be done, all things
necessary to preserve and keep unimpaired the rights of Trustor under the
Transmission and Common Facility Agreements and to prevent any default that
will impair or have an adverse effect upon the security of this Deed of Trust
under the Transmission and Common Facility Agreements, or any termination,
surrender, cancellation, forfeiture or impairment thereof.

 

iii.                                    Trustor
covenants that it will not modify, extend, supplement or cancel any of the
Transmission and Common Facility Agreements as to which Beneficiary has rights
of review and approval under Sections 2.7 or 2.8 of the Power Purchase
Agreement, or waive or release the other parties thereto of or from any
obligations, conditions or agreements by said parties, and shall not have the
power to do so, without Beneficiary’s prior written consent, which consent
shall be granted upon confirmation by Beneficiary that such action is not
likely to have a material adverse effect on, or materially increase the risk of
Beneficiary with regard to, the security provided to Beneficiary under this
Deed of Trust. Trustor agrees to promptly notify Beneficiary of any breach by
any party to the Transmission and Common Facility Agreements and to enforce the
obligations of the other parties to the Transmission and Common Facility
Agreements, to the end that Trustor may enjoy all of its rights under the
Transmission and Common Facility Agreements. In the event of a Default or a
material breach by Trustor of its obligations under this Deed of Trust,
Beneficiary shall have the sole right to choose either (i) to proceed
against such other parties in Trustor’s name or in Beneficiary’s name as agent
for Trustor, and Trustor agrees to cooperate with Beneficiary in such action
and to execute all documents required by Beneficiary in furtherance of such
action, or (ii) to have Trustor proceed on its and Beneficiary’s behalf,
in which event Beneficiary may participate in such proceedings, and Trustor
will deliver to Beneficiary all documents required by Beneficiary for such
participation. Trustor shall, at its expense, diligently prosecute such
proceedings, shall deliver to Beneficiary copies of all papers served in
connection therewith and shall consult and cooperate with Beneficiary and its
attorneys and agents, provided that no settlement of such proceedings may be
made by Trustor without Beneficiary’s prior written consent.

 

iv.                                   Trustor shall
promptly give Beneficiary notice of any material default by Trustor under the
Transmission and Common Facility Agreements or of the receipt by it of any
notice of default from any party thereunder or notice of termination of any of
the Transmission and Common Facility Agreements pursuant to the provisions
thereof and shall furnish to Beneficiary promptly any and all information which
Beneficiary may reasonably request concerning the performance by Trustor of the
covenants of the Transmission and Common Facility Agreements. Upon the request
of Beneficiary, Trustor shall promptly deposit with Beneficiary a copy of the
Transmission and Common Facility Agreements, certified as true, correct and
complete by Trustor, and any and all documentary evidence received by it
showing compliance by Trustor with the provisions of the Transmission and
Common Facility Agreements.

 

r.                                         Bankruptcy
Rights and Remedies. The lien of this Deed of Trust attaches to all of
Trustor’s rights and remedies at any time arising under or pursuant to Section 365
of the Bankruptcy Code (the “Bankruptcy Code”), including, without
limitation, all of Trustor’s rights to remain in possession of the Subject
Property.  Trustor shall not commence any
action, suit, proceeding or case, or file any application or make any motion,
in respect of the Ground Leases,

 

E-10

 

BLM Grants, or Appurtenance
Instruments in any such case under the Bankruptcy Code without the prior
written consent of Beneficiary.  Trustor
shall promptly, after obtaining knowledge thereof, notify Beneficiary orally of
any filing by or against the lessor or Trustor of a petition under the
Bankruptcy Code. Trustor shall thereafter forthwith give written notice of such
filing to Beneficiary, setting forth any information available to Trustor as to
the date of such filing, the court in which such petition was filed and the
relief sought therein.  Trustor shall
promptly deliver to Beneficiary, following receipt, any and all notices,
summons, pleadings, applications and other documents received by Trustor in
connection with any such petition and any proceedings relating thereto.

 

s.                                        Beneficiary’s
Lease.  Notwithstanding the provisions
of the foregoing paragraphs regarding termination of the Ground Leases, BLM
Grants, or Appurtenance Instruments, upon a termination or rejection of one or
more of the Ground Leases, BLM Grants, or Appurtenance Instruments by or for
Trustor as a debtor under the Bankruptcy Code, Trustor acknowledges that
Beneficiary may enter into (1) an instrument recognizing, confirming and
giving legal effect to the continued existence of such Ground Lease, BLM Grant,
or Appurtenance Instrument in favor of Beneficiary or its designee, or (2) a
new lease or right-of-way grant in favor of Beneficiary or its designee (in
either event the “Beneficiary’s Lease”) for the Subject Property
pursuant to the terms of such Ground Lease, BLM Grant, or Appurtenance
Instrument, or the provisions of a separate agreement between Beneficiary and
the lessor, in such event, Beneficiary’s execution of the Beneficiary’s Lease
shall not be deemed to be in satisfaction in whole or in part of the
obligations secured hereby and all of the other terms, covenants and conditions
contained in this Deed of Trust shall remain as a lien on the Subject Property.
Trustor hereby releases, remises, and quitclaims to Beneficiary any interest
Trustor may have in the Beneficiary’s Lease and further agrees and acknowledges
that Beneficiary may assign the Beneficiary’s Lease without notice, consent or
joinder of Trustor.  Trustor further
waives any right Trustor may have to challenge the adequacy of any
consideration received therefore.

 

4.                                      Default and
Remedies.  Should (i) a
Default occur under the Power Purchase Agreement, as provided and defined
therein; (ii) Trustor fail to pay any amount when due under this Deed of
Trust or other amounts due under any Ground Lease, BLM Grant, Appurtenance
Instrument, any of the Transmission and Common Facility Agreements, or other
Intangible Rights and Interests, which is not cured within thirty (30) days
after receiving written notice thereof from Beneficiary or such shorter cure
period that may be provided under any such Ground Lease, BLM Grant,
Appurtenance Instrument, or any of the Transmission and Common Facility
Agreements; or (iii) Trustor fail to perform any of its other material
duties or obligations under this Deed of Trust, which failure is not cured
within sixty (60) days after receipt of written of such failure from
Beneficiary (provided that if (A) such breach cannot be cured within such
period, (B) such breach is susceptible of cure within an additional thirty
(30) days, (C) Trustor is proceeding with diligence and in good faith to
cure such breach, and (D) the existence of such breach has not resulted
in, and would not after considering the nature of the cure be reasonably
expected to give rise to, a termination by the counterparty to any Ground
Lease, BLM Grant, Appurtenance Instrument, or Transmission and Common Facility
Agreement, or other Intangible Rights and Interests which is subject to breach,
or to otherwise have a material adverse effect on the Subject Property or the
validity or priority of Beneficiary’s security interests and lien on the Subject
Property, then such cure period shall be extended an additional thirty (30)
days), then

 

E-11

 

Beneficiary shall have the
right to foreclose the lien of this Deed of Trust.  In addition, Beneficiary may exercise any
remedy available at law or in equity or under the Power Purchase Agreement to
Beneficiary, including but not limited to those listed below, in such sequence
or combination as Beneficiary may determine in Beneficiary’s sole discretion:

 

a.                                      Performance of
Defaulted Obligations. 
Beneficiary may make any payment or perform any other obligation under
this Deed of Trust which Trustor has failed to make or perform as provided for
herein. All payments made and expenses (including reasonable attorney’s fees)
incurred by Beneficiary in this connection, together with interest thereon at
the Default Rate from the date paid or incurred until repaid, will be part of
the obligations secured by this Deed of Trust and will be immediately due and
payable by Trustor to Beneficiary. In lieu of advancing Beneficiary’s own funds
for such purposes, Beneficiary may use any funds of Trustor which may be in
Beneficiary’s possession, including but not limited to insurance or
condemnation proceeds and amounts deposited for taxes, insurance premiums, or
other purposes.

 

b.                                      Specific
Performance and Injunctive Relief.  Notwithstanding the availability of legal
remedies, Beneficiary will be entitled to obtain specific performance,
mandatory or prohibitory injunctive relief, or other equitable relief requiring
Trustor to cure or refrain from repeating any default.

 

c.                                       Possession of
Subject Property.  Beneficiary
may enter and take possession of the Subject Property without seeking or
obtaining the appointment of a receiver, may employ a managing agent for the
Subject Property, and may lease or rent all or any part of the Subject
Property, either in Beneficiary’s name or in the name of Trustor, and may
collect the rents, issues, and profits of the Subject Property. Any revenues
collected by Beneficiary under this section will be applied first toward
payment of all expenses (including reasonable attorney’s fees) incurred by
Beneficiary, together with interest thereon at the Default Rate from the date
incurred until repaid, and the balance, if any, will be applied against the obligations
secured hereby.

 

d.                                      Other Remedies.  Beneficiary may exercise all rights and
remedies set forth in the Power Purchase Agreement or in this Deed of Trust,
including all rights of a secured party under the UCC, as defined in Article 5
hereof.

 

e.                                       Foreclosure.

 

i.                                          Trustee’s Sale.  Beneficiary may foreclose this Deed of Trust
by way of a trustee’s sale pursuant to the provisions of Title 57, Chapter 1, Utah Code Annotated, as currently in
effect, as amended, or in any other manner then permitted by law (“Trustee’s
Sale”). After the lapse of such time as may then be required by law
following the recordation of said notice of default, and notice of default and
notice of sale having been given as then required by law, Trustee, without
demand on Trustor, shall sell the Subject Property on the date and at the time
and place designated in said notice of sale, either as a whole or in separate
parts or parcels, and in the absence of direction by Trustor, in such order as
it may determine, at public auction to the highest bidder, the purchase price
payable in lawful money of the United States at the time of the sale. To the
extent allowed by law, the person conducting the sale may, for any cause he or
she deems expedient, postpone the sale from time to time until it shall be
completed and, in

 

E-12

 

every such case,
postponement shall be given by public declaration thereof at the time and place
last appointed for sale.  Trustee shall
execute and deliver to the purchaser its trustee’s deed conveying said property
so sold, but without any covenant or warranty, express or implied. The recitals
in the trustee’s deed of any matters or facts shall be conclusive proof as to
bona fide third parties of the truthfulness thereof.  Any person, including Beneficiary, may bid at
the sale. Trustee shall apply the proceeds of the sale to payment of (1) the
costs and expenses of exercising the power of sale and of the sale, including
the payment of Trustee’s and reasonable attorney’s fees; (2) the
obligations secured hereby; and (3) the remainder, if any, to the person
or persons entitled thereto.

 

ii.                                       Judicial
Foreclosure.  Beneficiary
shall also have the right to foreclose this Deed of Trust as a mortgage by
appropriate proceedings in any court of competent jurisdiction (“Judicial
Foreclosure”).

 

iii.                                    Expenses of
Trustee’s Sale or Foreclosure.  All reasonable fees, costs and expenses of
any kind incurred by Beneficiary in connection with foreclosure of this Deed of
Trust, including, without limitation, the reasonable costs of any appraisals of
the Subject Property obtained by Beneficiary, all reasonable costs of any
receivership for the Subject Property advanced by Beneficiary, and all
reasonable attorneys’ and consultants’ fees incurred by Beneficiary, appraisers’
fees, outlays for documentary and expert evidence, stenographers’ charges,
publication costs and costs (which may be estimates as to items to be expended
after entry of the decree) of procuring all such abstracts of title, title
searches and examination and similar data and assurances with respect to title,
as Trustee or Beneficiary may deem necessary either to prosecute such suit or
to evidence to bidders at the sales that may be had pursuant to such
proceedings the true conditions of the title to or the value of the Subject
Property, together with and including a reasonable compensation to Trustee,
shall constitute a part of the obligations secured hereby and may be included
as part of the amount owing from Trustor to Beneficiary at any foreclosure
sale.

 

iv.                                   Proceeds of
Trustee’s or Foreclosure Sale.  The proceeds of foreclosure sale of the
Subject Property shall be distributed and applied in the following order of
priority: first, on account of all costs and expenses incident to the
foreclosure proceedings, second, to the obligations secured hereby, and lastly,
to Trustor, or, if applicable to such person or persons legally entitled
thereto.

 

v.                                      Insurance Upon
Foreclosure.  In case of
an insured loss after Judicial Foreclosure or Trustee’s Sale proceedings have
been instituted, the proceeds of any insurance policy or policies, if not
applied to rebuilding or restoring the buildings or improvements, shall be used
to pay the amount due under the obligations secured hereby. In the event of
Judicial Foreclosure or Trustee’s Sale, Beneficiary or Trustee is hereby
authorized, without the consent of Trustor, to assign any and all insurance
policies to the purchaser at the sale, or to take such other steps as
Beneficiary or Trustee may deem advisable to cause the interest of such
purchaser to be protected by any of the said insurance policies.

 

f.                                        Appointment of
Receiver. Beneficiary shall be entitled to the appointment
of a receiver.  Such receiver and his
agents shall be empowered (a) to take possession of the Subject Property
and any businesses conducted by Trustor or any other person (other than the

 

E-13

 

lessor or other persons
authorized by the lessor with respect to any rights to use portions of the
Subject Property retained by the lessor as provided in the Ground Leases or by
the BLM under the BLM Grants) thereon and any business assets used in
connection therewith and, if the receiver deems it appropriate, to operate the
same, (b) to exclude Trustor and Trustor’s agents and employees from the
Subject Property, (c) to collect the rents, issues, profits, and income
therefrom, (d) to complete any construction which may be in progress, (e) to
do such maintenance and make such repairs and alterations as the receiver deems
necessary, (f) to pay all taxes and assessments against the Subject
Property and all premiums for insurance thereon, (g) to pay all utility
and other operating expenses, and all sums due under any prior or subsequent
encumbrance, and (h) generally to do anything which Trustor could legally
do if Trustor were in possession of the Subject Property.  All reasonable expenses incurred by the
receiver or his agents shall constitute a part of the obligations secured
hereby. Any revenues collected by the receiver shall be applied first to the
expenses of the receivership, including reasonable attorneys’ fees incurred by
the receiver and by Beneficiary, together with interest thereon at the Default
Rate from the date incurred until repaid, and the balance shall be applied
toward the obligations secured hereby and then to Trustor or in such other
manner as the court may direct.  Unless
sooner terminated with the express consent of Beneficiary, any such
receivership will continue until the obligations secured hereby have been
discharged in full, or until title to the Subject Property has passed after
foreclosure sale and all applicable periods of redemption have expired.

 

g.                                       Right to Make
Repairs, Improvements.  Should any part of the Subject Property come
into the possession of Beneficiary after a Default under the Power Purchase
Agreement, as provided and defined therein, or after a default under this Deed
of Trust, Beneficiary may use, operate, and/or make repairs, alterations, additions
and improvements to the Subject Property for the purpose of preserving it or
its value. Trustor covenants to promptly reimburse and pay to Beneficiary, at
the address set forth in the first paragraph of this Deed of Trust, or at such
other place as may be designated by Beneficiary in writing, the amount of all
reasonable expenses (including the cost of any insurance, taxes, or other
charges) incurred by Beneficiary in connection with its custody, preservation,
use or operation of the Subject Property, together with interest thereon from
the date incurred by Beneficiary at the Default Rate, and all such expenses,
costs, taxes, interest, and other charges shall be a part of the obligations
secured hereby. It is agreed, however, that the risk of accidental loss or
damage to the Subject Property is undertaken by Trustor and, except for
Beneficiary’s willful misconduct or gross negligence, Beneficiary shall have no
liability whatsoever for decline in value of the Subject Property, for failure
to obtain or maintain insurance, or for failure to determine whether any
insurance ever in force is adequate as to amount or as to the risks insured.

 

h.                                      Waivers.  To the full extent that the covenants and
waivers contained in this paragraph are permitted by law, but not otherwise,
Trustor hereby waives any and all rights under, and covenants and agrees that
it will not at any time insist upon or plead or in any manner whatsoever claim
or take advantage of, any stay, exemption, moratorium or extension law now or
hereafter in effect or any law now or hereafter in effect providing for the
valuation or appraisement of the Subject Property or any part thereof prior to
any sale or sales thereof and Trustor will not invoke or utilize any such law
or laws or otherwise hinder, delay or impede the execution of any right, power
or remedy herein or otherwise granted or delegated to Trustee or Beneficiary,
but will suffer and permit the execution of every such right, power and remedy
as though no such law or laws have been made or enacted.

 

E-14

 

5.                                      Uniform
Commercial Code. This Deed of Trust, to the extent that it conveys
or otherwise deals with (i) personal property, or (ii) items of personal
property which are or may become fixtures, shall also be construed as a
security agreement under the Uniform Commercial Code as in effect in the state
of Utah (“UCC”), and this Deed of Trust constitutes a financing
statement filed as a fixture filing in the Official Records of the county
recorder of the county or counties in which the Subject Property, or any
portion thereof is located with respect to any and all fixtures included within
the term “Subject Property” as used herein and with respect to any personal
property that may now be or hereafter become such fixtures.  For purposes of the foregoing, Trustor is the
debtor and owner of the Subject Property (with its address as set forth above),
Beneficiary is the secured party (with its address as set forth below). Trustor
grants to Beneficiary a valid and effective first priority security interest in
all of Trustor’s right, title and interest in and to all portions of the
Subject Property which constitute personal property, together with all
replacements, additions, and proceeds. 
Except for Permitted Encumbrances, Trustor agrees that, without the
written consent of Beneficiary and except as otherwise permitted under the
Power Purchase Agreement, no other security interest will be created under the
provisions of the UCC and no lease having a market value of over $500,000 will
be entered into with respect to any goods, fixtures, equipment, appliances, or
articles of personal property now attached to or used or to be attached to or
used in connection with the Subject Property; provided that any lease entered
into by Trustor having a market value of over $50,000 shall constitute Subject
Property subject to the security interest under this Deed of Trust. Subject to
the cure provisions of Article 4 herein, upon Trustor’s failure to perform any
of its material obligations under this Deed of Trust or upon the occurrence of
a Default under the Power Purchase Agreement, as provided and defined therein,
Beneficiary shall have the remedies of a secured party under the UCC and, at Beneficiary’s
option, may also invoke the power of sale and all other remedies provided in
this Deed of Trust as to the personal property and any other items of the
Subject Property subject to this security interest. In exercising any remedies,
Beneficiary may proceed against the items of Real Estate and any other items of
personal property specified in Article 1 as part of the Subject Property
separately or together and in any order whatsoever, without in any way
affecting the availability of Beneficiary’s remedies under the UCC or of the
remedies provided in this Deed of Trust.

 

6.                                      Beneficiary’s
Actions. Without affecting the lien of this instrument, Beneficiary may, from
time to time, release any obligation, extend, alter or renew the terms of
payment or performance, substitute security, and/or release any portion of the
Subject Property.

 

7.                                      Reconveyance by
Trustee.  Trustee may from time to time
and only upon the written request of Beneficiary, reconvey, without warranty,
any part of said property and/or join in any agreement subordinating the lien
or charge hereof.

 

8.                                      Partial Payment. The
acceptance by Beneficiary of any sum in payment, or part payment, of any
obligation secured hereby, after the same is due or after the recording of a
notice of default, shall not be considered a waiver of the right to require
prompt payment when due, of other sums, nor shall such acceptance cure or waive
any remaining default or invalidate any sale held pursuant to Notice for any
remaining default.

 

9.                                      Severability.  The invalidity of any one or more covenants,
phrases, clauses, sentences or paragraphs of this Deed of Trust shall not
affect the remaining portions of this Deed

 

E-15

 

of Trust or any part
thereof, and this Deed of Trust shall be construed as if such invalid
covenants, phrases, clauses, sentences or paragraphs, if any, had not been
inserted herein.

 

10.                               Successors and
Assigns. This Deed of Trust shall inure to the benefit of and be binding upon
the heirs, legatees, devisees, administrators, executors, successors and
assigns of the parties hereto. The use of the singular number shall include the
plural number and the use of the plural number shall include the singular
number.  The use of the masculine gender
shall include the feminine gender, and corporation or corporations that may be
a party or parties hereto.  The term “Beneficiary”
shall mean the owners and holders of the obligation secured hereby, whether or
not named as Beneficiary herein.

 

11.                               Notices. Trustor
requests all notices to be given to it shall be made to the address stated on
the first page of this Deed of Trust. 
All notices required or permitted to be given hereunder shall be in
writing and may be given in person or by United States mail, by commercial
delivery service or by electronic transmission with verified receipt.  Any notice directed to a party to this Deed
of Trust shall become effective upon the earliest of the following: (i) actual
receipt by that party; (ii) delivery to the designated address of that
party, addressed to that party; or (iii) if given by certified or
registered United States mail, two (2) days after deposit with the United
States Postal Service, postage prepaid, addressed to that party at its
designated address.  Notwithstanding the
foregoing, any copy of a notice of default recorded pursuant to Utah law and
any notice of sale shall be sent to Trustor by certified or registered
mail.  The designated address of a party
shall be the address of that party shown at the beginning of this Deed of Trust
or such other address as that party, from time to time, may specify by notice
to the other parties.

 

12.                               Termination of
Deed of Trust. This Deed of Trust shall terminate and be of no
further force or effect upon the expiration or termination of the Power
Purchase Agreement and the payment by Trustor of the Termination Payment, if
any, as defined in and required in accordance with the Power Purchase Agreement
and any other payments due to Beneficiary thereunder.  Beneficiary agrees to deliver to Trustee
(with a copy to Trustor) a release, satisfaction and request for reconveyance
in recordable form within ten (10) days after such occurrence as provided
in the preceding sentence. Upon receipt of such release, satisfaction and
request for reconveyance and this Deed of Trust for cancellation (if required
under applicable law), Trustee shall reconvey, without warranty, the estate in
the Subject Property then held by Trustee. The grantee in such reconveyance may
be designated and described as the “person or persons legally entitled thereto.

 

13.                               Time of Essence
and Waiver. Time is declared to be of the essence in this Deed
of Trust.  If Beneficiary chooses to
waive any covenant, section, or provision of this Deed of Trust, or if any
covenant, section, or provision of this Deed of Trust is construed by a court
of competent jurisdiction to be invalid or unenforceable, it shall not affect
the applicability, validity, or enforceability of the remaining covenants,
paragraphs, or provisions.

 

14.                               Conflicts. In the event
of a conflict or inconsistency with the terms of this Deed of Trust and the
terms of the Power Purchase Agreement, the terms of the Power Purchase
Agreement shall control.  Notwithstanding
the foregoing, the rights and remedies afforded to beneficiaries under deeds of
trust and provided to Beneficiary in this Deed of Trust shall be in

 

E-16

 

addition to, and not in lieu
of, rights and remedies provided to Beneficiary under the Power Purchase
Agreement.

 

15.                               Estoppel
Certificate.  Beneficiary
agrees to provide Trustor with an estoppel certificate specifying whether there
are any defaults hereunder (which shall include the amount of any outstanding
Termination Payment then due), within ten (10) days after Trustor’s
written request therefore.

 

16.                               Release
Provisions.  Beneficiary
agrees to execute and deliver (or cause the Trustee to execute and deliver) a
partial release of lien and amendment to this Deed of Trust in recordable form
releasing any portion of the Subject Property for which the conditions of
release pursuant to Sections 2.7 and 2.8 of the Power Purchase Agreement have
been met, as soon as practicable following Trustor’s written request therefore

 

Executed
as of this
                    
day of
                                          ,
20      .

 

E-17

 

[TO BE EXECUTED
AND DELIVERED  AFTER RELEASE OF CONSTRUCTION
FINANCING]

 

	
   

  	
  TRUSTOR:

  
	
   

  	
   

  
	
   

  	
  Milford Wind Corridor
  Phase II, LLC, a Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name: Evelyn Lim

  
	
   

  	
  Title: Secretary

  

 

 

	
  STATE or COMMONWEALTH OF
  MASSACHUSETTS

  	
  )

  
	
   

  	
  : ss.

  
	
  COUNTY OF MIDDLESEX

  	
  )

  

 

The foregoing instrument was
acknowledged before me this               day
of                       ,                    ,
by Evelyn Lim, the Secretary of Milford Wind Corridor Phase II, LLC, a Delaware
limited liability company.

 

 

	
  My Commission Expires:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  NOTARY PUBLIC

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Residing at:

  	
   

  

 

E-18

 

 

EXHIBIT A

TO

DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING

 

[Legal Descriptions of
Leasehold Parcels and BLM Parcels, which include the Facility Premises, to be
provided prior to execution of the Deed of Trust]

 

E-19

 

EXHIBIT B

TO

DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING

 

[Descriptions of each Ground
Lease and BLM Grant to be provided prior to the execution of the Deed of Trust]

 

E-20

 

EXHIBIT C

TO

DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING

 

[Legal description of the
real property interests and description of all improvements, supporting
equipment and property agreements pertaining to the Facility Transmission Line
Interests, as defined in the Power Purchase Agreement, to be provided prior to
the execution of the Deed of Trust]

 

E-21

 

EXHIBIT D

TO

DEED OF TRUST, SECURITY AGREEMENT AND FIXTURE FILING

 

[Facility Common Facility
Interests, as defined in the Power Purchase Agreement, to be provided prior to
execution of the Deed of Trust]

 

E-22

 

APPENDIX F

 

TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

AND

MILFORD WIND CORRIDOR PHASE II, LLC

 

INSURANCE

 

I.                                        GENERAL REQUIREMENTS

 

Prior to the start of work,
but not later than thirty (30) days after the date of award of contract, Seller
shall furnish Buyer evidence of coverage from insurers acceptable to Buyer and
in a form acceptable to Buyer’s Risk Manager. 
Such insurance shall be maintained by Seller at Seller’s sole cost and
expense.

 

Such insurance shall not
limit or qualify the liabilities and obligations of Seller assumed under this
Agreement. Buyer shall not by reason of its inclusion under these policies
incur liability to the insurance carrier for payment of premium for these
policies.

 

Any insurance carried by
Buyer which may be applicable shall be deemed to be excess insurance and Seller’s
insurance is primary for all purposes despite any conflicting provision in
Seller’s policies to the contrary.

 

Said evidence of insurance
shall contain a provision that the policy cannot be canceled or reduced in
coverage or amount without first giving thirty (30) calendar days prior notice
thereof (ten (10) days for non-payment of premium) to Southern California
Public Power Authority, 225 S. Lake Avenue, Suite 1250, Pasadena,
California 91101.

 

Should any portion of the
required insurance be on a “Claims Made” policy, Seller shall, at the policy
expiration date following completion of work, provide evidence that the “Claims
Made” policy has been renewed or replaced with the same limits, terms and
conditions of the expiring policy, or that an extended discovery period has
been purchased on the expiring policy at least for the contract under which the
work was performed.

 

Failure to maintain and
provide acceptable evidence of the required insurance for the required period
of coverage shall constitute a breach of contract, upon which Buyer may
immediately terminate or suspend the Agreement.

 

Seller shall be responsible
for all subcontractors’ compliance with the insurance requirements. All
contractors and subcontractors shall maintain the same types of insurance with
limits and terms that are normal and customary for the industry and types of
services being provided.

 

F-1

 

II.                                   SPECIFIC COVERAGES REQUIRED

 

A.                                    Commercial Automobile Liability

 

Seller
shall provide Commercial Automobile Liability insurance which shall include
coverages for liability arising out of the use of owned, non-owned, and hired
vehicles for performance of the work as required to be licensed under the
California or any other applicable state vehicle code. The Commercial
Automobile Liability insurance shall have not less than $1,000,000.00 combined
single limit per occurrence and shall apply to all operations of Seller.

 

The
Commercial Automobile Liability policy shall include Buyer and its members,
officers, agents, and employees while acting within the scope of their employment,
as additional insured with Seller, and shall insure against liability for
death, bodily injury, or property damage resulting from the performance of this
Agreement. The form of evidence of insurance shall be a Buyer’s Additional
Insured Endorsement or an endorsement to the policy acceptable to Buyer’s Risk
Manager.

 

B.                                    Commercial General Liability

 

Seller
shall provide Commercial General Liability insurance with Blanket Contractual
Liability, Independent Contractors, Broad Form Property Damage,
Premises and Operations, Products and Completed Operations, Sudden and
Accidental Pollution, Fire Legal Liability and Personal Injury coverages
included. Except for Sudden and Accidental Pollution, which shall provide
coverage with limits of liability of not less than $1,000,000, such insurance
shall provide coverage with limits of liability not less than $25,000,000.00
combined single limit per occurrence and in the aggregate. The limits of
liability are to be specific for this Agreement. Umbrella or Excess Liability
coverages may be used to supplement primary coverages to meet the required
limits. Evidence of such coverage shall be on an endorsement to the policy
acceptable to the Buyer’s Risk Management Section, and shall provide for the
following:

 

1.                                      Include Buyer
and its members, officers, agents, and employees as additional insureds with
the Named Insured for the activities and operations under this Agreement.

 

2.                                      Severability-of-Interest
or Cross-Liability Clause such as: “The policy to which this endorsement is
attached shall apply separately to each insured against whom a claim is made or
suit is brought, except with respect to the limits of the company’s liability.”

 

3.                                      A description
of the coverages included under the policy.

 

C.                                    Excess Liability

 

Seller
may use an Umbrella or Excess Liability Coverage to meet coverage limits
specified in this Agreement.  Seller
shall require the carrier for Excess Liability to properly schedule and to
identify the underlying policies as provided for Buyer on an

 

F-2

 

endorsement
to the policy acceptable to Buyer’s Risk Management Section. Such policy shall
include, as appropriate, coverage for Commercial General Liability, Commercial
Automobile Liability, Employer’s Liability, or other applicable insurance
coverages.

 

D.                                    Workers’ Compensation/Employer’s Liability Insurance

 

Seller
shall provide Workers’ Compensation insurance covering all of Seller’s employees
in accordance with the laws of any state in which the work is to be performed
and including Employer’s Liability insurance and a Waiver of Subrogation in
favor of Buyer. The limit for Employer’s Liability coverage shall be not less
than $1,000,000.00 each accident and shall be a separate policy if not included
with Workers’ Compensation coverage. 
Umbrella or Excess Liability coverages may be used to supplement primary
coverages to meet the required limits. Evidence of such insurance shall be in
the form of a Buyer Special Endorsement of insurance or on an endorsement to
the policy acceptable to Buyer’s Risk Management Section.  Workers’ Compensation/Employer’s Liability
exposure may be self-insured provided
that Buyer is furnished with a copy of the certificate issued by the state
authorizing Seller to self-insure. Seller shall notify Buyer’s Risk Management Section by
receipted delivery as soon as possible of the state withdrawing authority to
self-insure.

 

E.                                    Builders’ Risk

 

Builder’s
Risk insurance shall be of the “all risk” type, shall be written in completed
value form, and shall protect Seller and Buyer against risks of damage to
buildings, structures, and materials and equipment, that constitute part of the
project, whether on site or in transit, unless transit is covered under a
separate policy, at any location world wide. The amount of such insurance shall
be not less than the insurable value of the work at completion.  The Builder’s Risk insurance shall provide
for losses to be payable to Seller.  The
policy shall contain a provision that in the event of payment for any loss
under the coverage provided, the insurance company shall have no rights of
recovery against Seller. The Builders’ Risk policy shall insure against all
risks of direct physical loss or damage to property from any cause including
testing, ensuing loss, commissioning, earthquake and flood. The policy shall
also provide for a one (1) year maintenance extension from the date of
Final Completion.  The policy shall be in
full force and effect until the Commercial Operation Date or final completion
of the Facility whichever date is the later.

 

F.                                     Property All Risk Insurance

 

Seller
shall procure and maintain or cause to be procured and maintained an All Risk
Physical Damage policy to insure the full replacement value of the property
located at Facility as described in this Agreement. The policy shall include
coverage for boiler and machinery breakdown, earthquake, flood, expediting
expense, extra expense, Business Interruption, ensuing loss from faulty
workmanship, faulty materials, and/or faulty design.  This policy shall incept in full force and
effect as of the date of Final Completion. This policy shall name Buyer as an
additional insured, and all losses shall be payable in the same manner, as
provided for the Builders’ Risk Policy in Paragraph E.

 

F-3

 

APPENDIX G

 

TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

AND

MILFORD WIND CORRIDOR PHASE II, LLC

 

REMAINING PREPAYMENT AMOUNT

 

	
   

  	
   

  	
  Remaining Prepayment Amount

  	
   

  
	
  Contract Year

  	
   

  	
  (assuming 4,467,600 MWh)

  	
   

  
	
  0.5

  	
   

  	
  $

  	
  209,980,000

  	
   

  
	
  1

  	
   

  	
  $

  	
  206,505,000

  	
   

  
	
  1.5

  	
   

  	
  $

  	
  202,960,000

  	
   

  
	
  2

  	
   

  	
  $

  	
  199,345,000

  	
   

  
	
  2.5

  	
   

  	
  $

  	
  195,655,000

  	
   

  
	
  3

  	
   

  	
  $

  	
  191,890,000

  	
   

  
	
  3.5

  	
   

  	
  $

  	
  188,050,000

  	
   

  
	
  4

  	
   

  	
  $

  	
  184,135,000

  	
   

  
	
  4.5

  	
   

  	
  $

  	
  180,140,000

  	
   

  
	
  5

  	
   

  	
  $

  	
  176,065,000

  	
   

  
	
  5.5

  	
   

  	
  $

  	
  171,910,000

  	
   

  
	
  6

  	
   

  	
  $

  	
  167,670,000

  	
   

  
	
  6.5

  	
   

  	
  $

  	
  163,345,000

  	
   

  
	
  7

  	
   

  	
  $

  	
  158,935,000

  	
   

  
	
  7.5

  	
   

  	
  $

  	
  154,440,000

  	
   

  
	
  8

  	
   

  	
  $

  	
  149,855,000

  	
   

  
	
  8.5

  	
   

  	
  $

  	
  145,175,000

  	
   

  
	
  9

  	
   

  	
  $

  	
  140,405,000

  	
   

  
	
  9.5

  	
   

  	
  $

  	
  135,535,000

  	
   

  
	
  10

  	
   

  	
  $

  	
  130,570,000

  	
   

  
	
  10.5

  	
   

  	
  $

  	
  125,505,000

  	
   

  
	
  11

  	
   

  	
  $

  	
  120,340,000

  	
   

  
	
  11.5

  	
   

  	
  $

  	
  115,070,000

  	
   

  
	
  12

  	
   

  	
  $

  	
  109,695,000

  	
   

  
	
  12.5

  	
   

  	
  $

  	
  104,215,000

  	
   

  
	
  13

  	
   

  	
  $

  	
  98,625,000

  	
   

  
	
  13.5

  	
   

  	
  $

  	
  92,920,000

  	
   

  
	
  14

  	
   

  	
  $

  	
  87,105,000

  	
   

  
	
  14.5

  	
   

  	
  $

  	
  81,170,000

  	
   

  
	
  15

  	
   

  	
  $

  	
  75,120,000

  	
   

  

 

G-1

 

	
   

  	
   

  	
  Remaining Prepayment Amount

  	
   

  
	
  Contract Year

  	
   

  	
  (assuming 4,467,600 MWh)

  	
   

  
	
  15.5

  	
   

  	
  $

  	
  68,945,000

  	
   

  
	
  16

  	
   

  	
  $

  	
  62,650,000

  	
   

  
	
  16.5

  	
   

  	
  $

  	
  56,225,000

  	
   

  
	
  17

  	
   

  	
  $

  	
  49,675,000

  	
   

  
	
  17.5

  	
   

  	
  $

  	
  42,995,000

  	
   

  
	
  18

  	
   

  	
  $

  	
  36,180,000

  	
   

  
	
  18.5

  	
   

  	
  $

  	
  29,230,000

  	
   

  
	
  19

  	
   

  	
  $

  	
  22,140,000

  	
   

  
	
  19.5

  	
   

  	
  $

  	
  14,905,000

  	
   

  
	
  20

  	
   

  	
  $

  	
  7,525,000

  	
   

  

 

G-2

 

APPENDIX H

 

TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

AND

MILFORD WIND CORRIDOR PHASE II, LLC

 

CIRCLE FOUR LEASE

[financial terms redacted]

 

THIS AMENDED AND RESTATED
LAND LEASE AGREEMENT (this “Lease”) is made effective as of February 22,
2007 (the “Effective Date”), between Circle Four LLC, a Delaware limited
liability company with an address at 341 South Main Street, PO. Box 100,
Milford, UT 84751 (together with its successors and assigns, the “Lessor”), and
Milford Wind Corridor Phase II, LLC, a Delaware limited liability company with
an address c/o First Wind Energy, LLC, 85 Wells Avenue, Suite 305, Newton,
MA 02459 (together with its successors and assigns, the “Lessee”). Lessor and
Lessee are at times collectively referred to herein as the “Parties” or
individually as a “Party.”

 

A.                                    Lessor owns
land situated in Beaver and Millard Counties, Utah. Approximately 13,130 acres
of that land (the “Lessor Lands”), which, together with all other rights,
interests, privileges and appurtenances pertaining to the Lessor Lands,
including (i) such rights as may exist under law allowing an owner to
exploit wind energy occurring on the Lessor Lands (“Wind Rights”), and (ii) other
easements and rights of ingress, egress and maintenance of the Lessor Lands and
any rights as to adjacent roads, streets, and rights-of-way (such items in
clause (ii) collectively, the “Other Appurtenances”) are the subject of
this Lease and the Beaver County Land Lease (defined below).

 

B.                                    Lessor and Milford
Wind Corridor Phase I, LLC, a Delaware limited liability company (“Beaver
County Lessee”) are parties to that certain Land Lease Agreement dated
effective as of February 22, 2007 (“Original Land Lease”), concerning the
Lessor Lands more particularly described in the Original Land Lease and
evidenced by that certain Memorandum of Lease (“Original Memorandum”) recorded
in the Beaver County Recorder’s Office on February 26, 2007, as Entry No. 230418,
in Book 402, beginning at Page 392 and in the Millard County Recorder’s
Office on February 26, 2007, as Entry No. 160231, in Book 462,
beginning at Page 467.

 

C.                                    Pursuant to Section 17.1
and Section 17.5 of the Original Land Lease, Lessor and the Beaver County
Lessee have agreed to amend the Original Land Lease to remove from the Original
Land Lease all portions of the Lessor Lands located in Millard County, Utah
together with a portion of the Lessor Lands located in Beaver County, Utah in Section 6,
Township 26 South, Range 9 West, Salt Lake Base and Meridian (collectively, “Premises”)
and to execute a separate lease with respect to Premises as more particularly
described on Exhibit “A” attached hereto.

 

H-1

 

D.                                    Lessor and
Beaver County Lessee have entered into that certain Amended and Restated Land
Lease Agreement made effective as of February 22, 2007 and executed on or
about the date hereof (“Beaver County Lease”), concerning portions of the
Lessor Lands located in Beaver County, Utah (“Beaver County Premises”).

 

E.                                     Beaver County
Lessee has assigned or will assign to Lessee all right, title and interest of
Lessee in and to the Premises under the Original Land Lease.

 

F.                                      Lessor and
Lessee desire to amend and restate the Original Land Lease to provide that the
Lessee lease from Lessor, and Lessor lease to Lessee, the Premises, the Wind
Rights and the Other Appurtenances (collectively, the “Leased Property”) for
purposes of wind energy generation and related uses on the terms and conditions
set forth herein.

 

NOW, THEREFORE, for good and
valuable consideration, the Parties agree as follows:

 

1.                                      DEFINITIONS.

 

1.1                               “Commencement
Date” shall have the meaning set forth in the Beaver County Lease.

 

1.2                               “Improvements”
is as defined in Section 6.

 

1.3                               “Inflation
Index” means the Consumer Price Index — Seasonally Adjusted U.S. City Average
For All Items For All Urban Consumers, “CPI-U” of the Bureau of Labor
Statistics of the United States Department of Labor (or any successor
Department of Labor index).

 

1.4                               “Lender(s)” means
the banks, entities, or institutions providing financing for a Wind Energy
Improvement from time to time.

 

1.5                               “Liens” is as
defined in paragraph 13.4.1.

 

1.6                               “Security
Assignee” is as defined in Subsection 17.2.

 

1.7                               “Transportation
Facilities” is as defined in Subsection 3.5.

 

1.8                               “Transmission
Facilities Easement” is as defined in Section 7.

 

1.9                               “Wind Energy
Improvement” is as defined in Section 6.

 

1.10                        “WTG” means a
wind turbine generator, consisting of pedestal, tower, rotors, generators,
control equipment, electrical connections, and any other related or appurtenant
facilities or equipment necessary to generate and transmit electricity.

 

2.                                      LEASE. Lessor hereby
leases to Lessee and Lessee leases from Lessor the Leased Property upon and
subject to the terms and conditions hereof. Except as provided herein, the
Parties agree that, upon the execution and delivery of this Lease by each
Party, the terms and

 

H-2

 

provisions of the Original
Land Lease shall be and hereby are amended, superseded and restated in their
entirety by the terms and provisions of this Lease. In the event of any
conflict or inconsistency between the terms of this Lease and the terms of the
Original Land Lease, the terms of this Lease shall control. Except for Lessor’s
obligations arising under the Original Land Lease prior to the execution of
this Lease, Lessor shall have no further obligation or liability under the
Original Land Lease nor any further obligation or liability with respect to the
Beaver County Premises other than those obligations and liabilities agreed upon
in the Beaver County Lease. Except for the Lessee’s obligations, if any,
arising under the Original Land Lease with respect to the Premises prior to the
date of this Lease, Lessee shall have no further obligation or liability under
the Original Land Lease nor any obligation or liability with respect to the
Beaver County Premises. Notwithstanding the foregoing, for purposes of priority
the Parties intend this Lease to relate back to the Effective Date.

 

3.                                      PURPOSE AND
SCOPE OF LEASE. The Lease is for the use of the Leased Property
for the purpose of converting wind energy to electricity and exploiting the
Wind Rights, including the collection and transmission of electric power by
installing, operating, maintaining, and integrating WTGs on the Leased Property
in conjunction with similar uses on other properties, and for related
activities. Without limiting the generality of the foregoing, Lessee shall
have, subject to the limitations contained in this Lease, the following rights
and privileges under this Lease:

 

3.1                               The right to
develop, erect, construct, install, replace, repair, relocate, remove,
maintain, operate, and use, from time to time, WTGs, underground and above-ground
electrical transmission and communications lines related to the operation of
WTGs, electric transformers and substations, energy storage facilities,
telecommunications equipment, roads, meteorological towers and wind measurement
equipment, control buildings, maintenance yards, and related facilities and
equipment on the Leased Property, which WTGs may be integrated with each other
and with WTGs located on other properties; 

 

3.2                               The right to capture and to convert any
or all of the wind resources of premises.

 

3.3                               The right to investigate the potential of
wind energy conversion but not limited to, conducting
environmental and paleontological studies, soil tests, and studies of wind
speed, wind direction and other meteorological data and geological studies, and
other studies as may be required in connection with permitting the WTGs;

 

3.4                               The right to
develop, erect, construct, install, replace, repair, relocate, remove,
maintain, operate, and use the following from time to time in connection with
the WTGs (i) a line or lines of poles or towers, together with such wires
and cables as from time to time are suspended there from, and/or underground
wires and cables, for the transmission of electrical energy and/or for
communication purposes, and all necessary and proper anchors, support
structures, foundations, footings, crossarms and other appliances and fixtures
for use in connection with said towers, wires and cables; (ii) one or more
substations or interconnection or switching facilities from which the WTGs may
interconnect to a utility transmission system or the transmission system of
another purchaser of electrical energy; and (iii) roads associated with

 

H-3

 

the foregoing (such towers,
wires, cables, substations, facilities and other enumerated items in clauses
(i), (ii) and (iii) are herein collectively called the “Transmission
Facilities”);

 

3.5                               The right of
pedestrian and vehicular ingress, egress, and access over and across the Leased
Property by means of roads and lanes thereon if existing, or otherwise by such
roads, structure, route or routes as Lessee may construct or improve from time
to time (“Transportation Facilities”);

 

3.6                               The right of
subjacent and lateral support to whatever is necessary for the operation and
maintenance of improvements on the Leased Property and other property used in
connection with Wind Energy Improvements, including, without limitation, guy
wires and supports;

 

3.7                               The right to
permit the rotors of WTGs located on adjacent properties to overhang the Leased
Property and the right to permit the rotors of WTGs on the Leased Property to
overhang any adjacent property owned by Lessor;

 

3.8                               The right to
grade, level, fill, clear and replant ground; and to excavate and use sand,
gravel, caliche or other materials suitable for road cover solely to construct
the Transportation Facilities on the Leased Property, all to the extent
permitted by law and only at locations and in amounts approved by Lessor in its
reasonable discretion;

 

3.9                               The right to
enter upon the Premises and to conduct Phase I and other environmental studies
or audits of the Premises, including the air, soil, and water in and about the
Premises, at any time; and

 

3.10                        The right to
undertake any other activities, whether accomplished by Lessee or a third party
authorized by Lessee, that are reasonably necessary, useful or appropriate to
accomplish any of the purposes or uses of the Lease set forth above.

 

4.                                      USES RESERVED
BY LESSOR

 

4.1                               Subject to
Subsections 4.2 (including Sub-subsection 4.2.6) and 13.3 below, Lessor
expressly reserves all rights to use the Leased Property (excluding any Wind
Rights) for purposes not granted to Lessee, including the installation and
operation of animal husbandry facilities, to the extent that the lawful
exercise of such reserved rights does not materially interfere with the
construction, operation, or maintenance of the Improvements. Lessor will give
sixty (60) days’ prior written notice to Lessee of any intended and new
material use or development of the Premises or Other Appurtenances. If Lessee
believes that interference with Lessee’s use of such Premises and Other
Appurtenances will result from the proposed use of the Premises and Other
Appurtenances by Lessor or its designees, Lessor will take all steps reasonably
necessary to ensure the compatibility of Lessor’s intended use with Lessee’s
use of such property. Lessee shall have no liability for costs associated with
any use of the Premises or Other Appurtenances by Lessor pursuant to the rights
reserved or not granted herein.

 

4.2                               In furtherance
of Subsection 4.1, and subject to Sub-subsection 4.2.6 below, in consideration
of Lessee’s investment in the Improvements and the other covenants contained in
this Lease, Lessor shall limit its future activities on the Premises, and any
grant of

 

H-4

 

rights Lessor makes to any
third party, whether the right of use is located on the Premises or elsewhere,
as follows:

 

4.2.1                     Except to the
extent specifically provided in this Lease, Lessor shall not, and shall not
authorize other persons or entities to, install structures or undertake other
activities on the Premises that materially interfere with the wind speed or
wind direction over the Premises or materially decrease efficiency of any WTG,
including any WTGs located on lands adjoining the Premises, or the installation
or operation of the Improvements.

 

4.2.2                     Lessor will not
grant or authorize any mineral extraction rights or mineral estates, geothermal
rights, hunting rights, or similar types of usage rights on the Premises in a
form that materially interferes with the construction or operation of the
Improvements or other allowed uses of the Leased Property; provided that Lessor
shall have no liability to Lessee for any damages incurred by Lessee and caused
by unauthorized uses, or caused by trespasses by unrelated third parties.
Lessor shall not interfere with Lessee’s efforts reasonably necessary to
mitigate unauthorized uses or trespasses.

 

4.2.3                     Lessor will
not, and will not authorize any third party, to construct or install any
structure or other improvement that is within the Minimum Distance of any WTG.
The Minimum Distance for any such structure is as follows:

 

MD = 100 tf. + (H*20)

Where: MD = the Minimum
Distance

H = maximum height above
ground (in ft.) of any structure in excess of 15 tf.

 

Thus, for example, the
Minimum Distance for a building with a maximum height above ground of 20tf.
would be calculated as (20f1 -15ft = 5ft=f1; 5ft*20 = 100tf; 100tf + 100tf = 200tf
= MD).

 

4.2.4                     Lessor will
consult with and obtain Lessee’s prior written approval as to all animal
husbandry facilities and other structures constructed under 4.1 to be located
by or under the direction of Lessor or its permittees within the Minimum
Distance, whether located on or off the Premises. Lessee shall cooperate with
Lessor in any such review, and Lessee shall consent to any such structures so
long as, based upon appropriate professional engineering and meteorological
opinions, the proposed structures at the proposed location are not likely to
materially interfere with wind speed or wind direction over any portion of the
Premises, cause a material decrease in the output or efficiency of any WTG, or
otherwise materially interfere with Lessee’s operations on the Leased Property.

 

4.2.5                     Each of Lessor
and Lessee will use good faith, commercially reasonable efforts to avoid or
minimize material interference with each Party’s respective operations on the Leased
Property.

 

4.2.6                     Notwithstanding
the balance of this Subsection 4.2, if Lessee has not commenced commercial
electrical power production on the Premises by April 15, 2013, then unless
and until such construction commences, Lessor shall have the right to proceed
with any use of the Premises reserved by Lessor in Subsection 4.1, but shall
not be subject to the

 

H-5

 

limitations of
Subsubsections 4.2.1 — 4.2.4 above. Thereafter if Lessee elects to commence
installation of WTGs and/or Wind Energy Improvements on the Premises, Lessee
shall give written notice of its election and the Parties will remain subject
to Subsection 4.2.5 above with respect to the design, installation and
operation of their respective facilities on the Premises, provided that Lessor
shall not be obligated to remove or relocate any facilities or uses previously
installed or allowed by it on the Premises. Any such notice from Lessee
electing to commence installation of WTGs and/or Wind Energy Improvements on
the Premises shall lapse without opportunity for extension or renewal if
commercial electrical power production does not commence within two years from
the date of the notice.

 

5.                                      EXCLUSIVENESS
OF LEASE. Lessee’s granted rights hereunder to the Wind Rights
and rights to erect and maintain WTGs and Wind Energy Improvements on the
Premises set forth in Section 3.1-3.4 and 3.6-3.7 are exclusive of all
other persons, including Lessor. Without limiting the generality of the
foregoing, Lessor covenants not to convey or authorize the exploitation of Wind
Rights or otherwise to grant or suffer any conflicting rights with respect to
the Leased Property.

 

6.                                      OWNERSHIP OF
WIND ENERGY IMPROVEMENTS. Lessor shall have no ownership or other
interest in any Improvements (as defined below). Lessee shall have title to all
Improvements at all times, whether or not the same shall be affixed to the
Premises, and Lessee may remove any or all such Improvements at any time. As
used in this Lease, the term “Improvements” means all facilities or equipment
installed on the Leased Property for the purpose of producing electricity by
wind power, including but not limited to WTGs, Transmission Facilities,
structures, equipment, machinery, wire, conduit, fiber, cable, poles, materials
and property of every kind and character constructed, installed and/or placed
on, above or below the Leased Property by or on behalf of Lessee. This Lease
contemplates that Improvements may be installed at separate times, in multiple
stages to create one or more sets of integrated Improvements under separate
capital structures and power sales arrangements, each defined as a “Wind Energy
Improvement.” The Wind Energy Improvements may share some common facilities
such as substations, transmission lines, and roads.

 

7.                                      TRANSMISSION
FACILITIES EASEMENT. Lessee shall have the right to sublease to any
utility, power provider, or other party (collectively, “Transmission Facility
Assignees”) any of its rights granted hereunder to (a) construct, operate,
and maintain the Transmission Facilities on the Leased Property, and (b) access
such Transmission Facilities, including the right of ingress and egress into
and across portions of the Leased Property and other adjacent property of
Lessor, if any. All such sublease rights shall remain subject to the terms and
conditions hereof If requested by a Transmission Facility Assignee and Lessee,
Lessor will provide written affirmation to such Transmission Facility Assignee
of such easements and access rights as granted to Lessee herein (each a “Transmission
Facility Easement”).

 

8.                                      SURVEY AND SITE
PLAN. Lessee may survey the Premises and all elements of any Wind Energy
Improvements at its own expense. Any site and/or construction plan(s) intended
to be used by Lessee with respect to the Improvements, Transportation
Facilities, or Transmission Facilities, including any plans required to be
filed from time to time in connection with permitting each Wind Energy
Improvement, shall be subject to the review and consent of Lessor; provided that
such review shall be as timely as practical so as to avoid permitting or

 

H-6

 

construction delays, and
such consent will be provided so long as such plans maintain a distance between
lines of WTGs, such that Lessor may install buildings up to 30 tf. in height
above ground between such lines or arrays while conforming to the Minimum
Distance. Once accepted by Lessor, Lessee may make immaterial alterations to
such plans without prior Lessor consent and shall locate, construct, operate,
and replace all Improvements in accordance with such plans. While the wind
resource will dictate the location of the WTGs, Lessee shall use commercially
reasonable efforts to accommodate requests of Lessor regarding the location of
Transportation Facilities, Transmission facilities, and substations. To the
best of Lessor’s knowledge and only insofar as such plans have been provided to
Lessor by Lessee prior to the execution of this Lease, Lessor has reviewed and
approved the site and construction plans intended to be used by Lessee with
respect to the Improvements, Transportation Facilities, or Transmission
Facilities, including any plans required to be filed from time to time in
connection with permitting the Wind Energy Improvement related to the Premises.
No review and consent by Lessor shall constitute any warranty of Lessor or
create any liability of Lessor. Lessee shall be solely responsible for
designing, permitting, financing, constructing, operating, repairing, replacing,
and maintaining each Wind Energy Improvement. Lessor is solely responsible for
the placement and operation of its facilities on the Premises.

 

9.                                      TERM

 

9.1                               This Lease
shall be effective as of the Effective Date. The initial term of this Lease
shall be until the last day in the December following the fortieth (40th)
anniversary of the Commencement Date (“Initial Term”). The Lessee shall have
the option to renew this Lease for up to two additional ten (10) year
terms. If the Lessee is then in possession of the Premises and if there is not
a notice of default from Lessor pending at the time the lease term ends
(whether at the end of the Initial Term or the first extension), Lessee will be
deemed to have exercised its option to extend the term hereof absent Lessee
providing a written notice to Lessor to the effect that the extension will not
be undertaken. If a notice of default is pending, the lease term may be
extended only upon written consent from Lessor. Any such Lessee notice that it
will not extend the lease shall be in writing by certified or registered mail,
and made on or before sixty (60) days prior to the end of the Initial Term or
any extension of the Initial Term. For the purposes of this Section 9, a
notice of default shall be deemed to be pending if notice of default has been
given by Lessor as provided in Section 18 and the default specified in the
notice has not been corrected.

 

9.2                               If the Beaver
County Lease terminates pursuant to Section 9.2 of the Beaver County
Lease, this Lease shall automatically terminate as of the termination of the Beaver
County Lease. If Lessor’s right to terminate the Beaver County Lease pursuant
to Section 9.2 thereof is extinguished, this Section 9.2 shall have
no further effect. At Lessee’s request and expense, Lessor will provide written
acknowledgement in recordable form of the occurrence of Commencement Date.

 

9.3                               When the Lease
terminates for any reason, Lessor shall be entitled to file a notice thereof in
the office of the recorder of each county in which a portion of the Premises is
located.

 

H-7

 

9.4                               Notwithstanding
the foregoing, Lessee shall not be entitled to erect WTGs on the Premises until
such time as Lessee has demonstrated to Lessor’s reasonable satisfaction that
Lessee is financially capable of performing its obligations under Section 21.
Within 15 business days of Lessee’s delivery of evidence of Lessee’s financial
capability to perform under Section 21, Lessor shall either deliver
written notice to Lessee of its acceptance of such evidence or provide a
detailed written explanation of its basis for not accepting such evidence. If
Lessor fails to respond in writing with such 15-day period, such failure shall
be deemed to waive objection to Lessee’s ability to perform its obligations
under Section 21 and Lessee shall be entitled to erect WTGs on the
Premises.

 

9.4.1                     The evidence of
Lessee’s financial capability to be provided under this Subsection 9.4 shall
include information represented and warranted by Lessee as providing an
accurate and complete statement of Lessee’s financial capability as of the date
furnished, together with any other additional assurances reasonably necessary
to demonstrate Lessee’s capability under Section 21.

 

10.                               RENT: TAXES AND
UTILITIES

 

10.1                        The rent
payable by Lessee to Lessor for use of the Premises shall be determined and
paid as set out in this Lease. All rents shall accrue and be deemed fully
earned by Lessor on a daily basis.

 

10.2                        Rent Payment. Payments due
Lessor hereunder will be made to Lessor at the address provided for notices
under this Lease, or to such other person, firm, or place as Lessor may from
time to time designate.

 

10.3                        Due Dates. All rent
payments shall be paid annually, except as otherwise specifically provided
herein. Rent shall be computed on a calendar year basis beginning on the
Commencement Date and thereafter shall be paid in annual payments. All annual
payments due hereunder shall be paid in arrears, and shall be due and payable
on or before March 31 of the calendar year following the year in which the
rental obligation accrues.

 

10.4                        Initial
Payments. In consideration of Lessor entering into this
exclusive wind resources Lease with Lessee, assistance with initial wind
assessments, and status as the primary private land owner necessary for the
Improvements, Lessee shall pay [language redacted ]. The payment under this
section shall be deemed fully earned when paid. Lessee shall be deemed in
default under this Lease if such payments are not received by Lessor within
sixty (60) days of the due date.

 

10.5                        Proration of
Rent. All annual Base Rent payments shall be prorated from the date rent
begins or the date on which an adjustment to rental rates occurs during any
partial calendar year during which this Lease is in effect. [language
redacted].

 

10.6                        Base Rent. [language
redacted]. Beginning as of the Commencement Date, the Base Rent due hereunder
shall be:

 

10.6.1              [language redacted].

 

H-8

 

10.6.2              [language redacted].

 

10.6.3              [language redacted].

 

10.6.4              [language redacted]..

 

10.6.5              [language redacted].

 

10.6.6              [language redacted]

 

10.6.7              [language redacted].

 

10.7                        Lessor’s Taxes. [language
redacted].

 

10.8                        Lessee’s Taxes. [language
redacted].

 

10.9                        Utilities. To the extent
that Lessee’s use of the Leased Property or operation of any Wind Energy
Improvement involves the joint use with Lessor of electricity, gas, telephone
services or other utilities, the Parties shall cooperate in good faith to
apportion the cost of such utilities. Subject to the specific written consent
of Lessor, Lessee may construct, install, maintain and use one or more water
wells upon the Leased Property for potable water uses; in such event, Lessor
shall retain ownership of all water available from such well(s), but Lessor
will allow Lessee to use water from such wells at no cost to Lessee for the
limited use of potable water reasonably necessary for Lessee’s personnel and
minor cleaning and maintenance. The water rights to be furnished at no cost by
Lessor to Lessee shall not exceed 1.0 acre feet per year for all uses under
this Lease, except upon the prior written consent of Lessor. Lessor shall have
the right, but not the obligation, to conduct all proceedings before the Utah
Division of Water Rights and in any judicial review proceedings for all
applications pertaining to such water rights. Lessee shall bear the cost of all
such proceedings. Lessor shall reasonably cooperate with Lessee to obtain such
water rights approvals.

 

11.                               USE: GOVERNMENTAL
APPROVALS. Lessee’s uses of the Leased Property are subject
to receipt of all of the certificates, permits, zoning changes or variances,
easements, rights of way, and other federal, state or local authorizations
and/or approvals (collectively, the “Governmental Approvals”) that may be
required by any federal, state or local government, agency or other authority (“Governmental
Authorities”) under any applicable federal, state, or local law, rule,
regulation, ordinance, statute, order or decree (“Legal Requirements”) as well
as satisfactory soil boring tests which will permit the Lessee use of the
Leased Property as set forth above. Lessee shall have the right in its sole
discretion, to contest by appropriate legal proceedings, brought in the name of
Lessee or in the names of both Lessee and Lessor where appropriate or required,
the validity or applicability to the Leased Property, Transmission Facilities, Improvements,
or Wind Energy Improvements of any Legal Requirement, Taxes or the like, now or
hereafter made or issued by any Governmental Authority. Lessor shall cooperate
in every reasonable way in such contest, at no material out-of-pocket expense
to Lessor. If any of such Governmental Approvals should be finally rejected or
denied or any Governmental Approval issued to the Lessee is canceled, expires,
lapses or is otherwise withdrawn or terminated, or soil boring tests are found
to be unsatisfactory so that the Lessee in its sole discretion will be unable
to use the Leased Property for its intended purposes or the Lessee

 

H-9

 

determines that the Leased
Property is no longer technically compatible for its intended use, the Lessee
shall have the right to terminate this Lease. Notice of the Lessee’s exercise
of its right to terminate shall be given to the Lessor in writing by certified
mail, return receipt requested, and shall be effective upon the mailing of such
notice by the Lessee. Except with respect to any surviving provisions hereof,
including provisions with respect to indemnity, taxes, removal of Improvements
and any outstanding rent due, this Lease shall become null and void and the
Parties shall have no further obligations.

 

12.                               LESSEE’S
REPRESENTATIONS, WARRANTIES AND COVENANTS. Lessee hereby represents,
warrants and covenants to Lessor as follows:

 

12.1                        Lessee’s
Authority. Lessee has full power, authority, capacity and
legal right to enter into, execute and deliver this Lease. Each person signing
this Lease on behalf of Lessee is authorized to do so. This Lease constitutes a
valid and binding agreement enforceable against Lessee in accordance with its
terms.

 

12.2                        Legal
Status/Approvals. Lessee (a) is duly organized or formed,
validly existing and in good standing under the laws of its state of
organization or formation; (b) is duly qualified to transact business and
is in good standing in the state of Utah; and (c) has full power and
authority to lease the Leased Property and carry on its business as now
conducted. Lessee has all necessary approvals, governmental and otherwise, to
execute and deliver this Lease and the execution and delivery of this Lease by
Lessee will not place Lessee in default of any agreements to which Lessee is a
party or bound.

 

12.3                        Liens. Lessee shall
keep Lessor’s interest in the Leased Property free and clear of all Liens and
mechanics liens and claims of liens for labor and services performed on, and
materials, supplies or equipment furnished to, the Leased Property in
connection with Lessee’s use of the Leased Property; provided, however, that if
(a) such a Lien does arise on Lessor’s interest in the Leased Property, (b) Lessee
has a right to contest such Lien and (c) Lessee, within thirty (30) days after
it receives notice of the filing of such Lien, either bonds around such Lien or
establishes appropriate reserves therefore, or, otherwise, removes such Lien
from the Leased Property pursuant to applicable law, then Lessee shall not be
deemed to have breached this Section. Lessee shall indemnify and defend Lessor
and the Premises against any lien or claim of lien arising in any way from
Lessee’s use of the Premises.

 

12.4                        Hazardous
Materials. Lessee shall not violate in any material respect
any Legal Requirement relating to the generation, manufacture, production, use,
storage, release or threatened release, discharge, disposal, transportation or
presence of any substance, material or waste which is now or hereafter
classified as hazardous or toxic, or which is regulated under current or future
Legal Requirement (collectively, “Hazardous Materials”) on or under the Leased
Property. Lessee will at the end of this Lease remove any Hazardous Materials
from the Premises deposited there by Lessee, except as specifically approved in
writing by Lessor.

 

12.5                        Estoppel
Certificate by Lessee. Lessee shall at any time, and from time to
time, within fifteen (15) days after a written request by Lessor, execute and
deliver to Lessor a written statement certifying that this Lease is in full
force and effect (or modified and stating the modification). Such statement
shall also state that, to Lessee’s knowledge, there are no defaults

 

H-10

 

existing at the time of
execution of the statement, or (to the extent applicable) if existing, the
nature of such defaults.

 

12.6                        Gates and
Fences. Lessee shall have the right to install and maintain gates, cattle
guards and other security structures where necessary or useful in connection
with Lessee’s use of the Leased Property. The location of all gates and fences
remains subject to Lessor review pursuant to Section 8 above.

 

12.7                        Bio-Security
and Animal Welfare. If Lessor installs any animal husbandry facilities
on the Premises, Lessee shall cause its personnel entering any such facility or
bringing a vehicle within fifty yards of such facility to comply with Lessor’s
Bio-Security Management System and Animal Welfare System Requirements, each as
currently in effect, or as supplemented or changed from time to time (copies of
which shall promptly be provided to Lessee). Lessor shall be entitled to
immediately prevent any officers, employees, agents, subcontractors, or others,
as well as any equipment, materials, tools, or any other substance or item from
entering or approaching any Lessor facility if such entry would breach Lessor’s
bio-security or animal welfare protocols.

 

13.                               LESSOR’S
REPRESENTATIONS, WARRANTIES AND COVENANTS. Lessor hereby represents,
warrants, and covenants to Lessee as follows:

 

13.1                        Lessor’s
Authority. Lessor has full power, authority, capacity and
legal right to enter into, execute and deliver this Lease, and to assign,
warrant, set-over, transfer and convey the Leased Property pursuant to the
terms of this Lease. Each person signing this Lease on behalf of Lessor is
authorized to do so. This Lease constitutes a valid and binding agreement
enforceable against Lessor and the Leased Property in accordance with its
terms.

 

13.2                        Legal Status;
Approvals. Lessor (a) is duly organized or formed,
validly existing and in good standing under the laws of its state of
organization or formation; (b) is duly qualified to transact business and
is in good standing in the state of Utah; and (c) has full power and
authority to own the Leased Property and carry on its business as now conducted
and proposed to be conducted. Lessor has all necessary approvals to execute and
deliver this Lease and the execution and delivery of this Lease by Lessor will
not place Lessor in default of any agreements to which Lessor is a party or
bound.

 

13.3                        Quiet Use. Lessor
covenants and agrees that Lessee shall have the quiet use and enjoyment of the
Leased Property in accordance with the terms of this Lease without hindrance or
interruption from Lessor or any other person or persons, subject to all items
of record as of the date hereof or arising from prescriptive or adverse use of
the Premises.

 

13.4                        Liens.

 

13.4.1              Lessor
represents that as of the Effective Date, to Lessor’s knowledge without further
inquiry, there are no liens, encumbrances, leases for wind energy or that will
interfere with the rights granted to Lessee under this Lease, mortgages, deeds
of trust, security interests, licenses, mineral estates, or other exceptions
(collectively, “Liens”) encumbering or affecting all or any portion of the
Leased Property that could materially and

 

H-11

 

adversely affect Lessee’s
use of the Leased Property, except to the extent disclosed in the public record
or arising from adverse or prescriptive uses not known to Lessor.

 

13.4.2              To Lessor’s
knowledge, there are no currently existing options, rights of refusal, sales
contracts, or other such rights in favor of any third parties relating to the
Leased Property or any interest therein that could materially interfere with
the development, construction, installation, maintenance, or operation by
Lessee of the Improvements or that allow any party other than Lessee to exploit
the Wind Rights or that could materially and adversely affect Lessee’s use of
the Leased Property, except to the extent disclosed in the public record.

 

13.4.3              At Lessee’s
request, Lessor will use commercially reasonable efforts to remove, or
subordinate to Lessee’s reasonable satisfaction, any existing liens or
encumbrances that, in the opinion of Lessee, materially interfere with Lessee’s
use of the Leased Property.

 

13.4.4              If, after the
date hereof, Lessor creates or allows additional Liens with respect to the Leased
Property or any part thereof, Lessor shall, prior to granting such Lien, notify
such Lien holder of this Lease, and obtain from such holder a written
subordination agreement with Lessee providing that such holder will (i) subordinate
such Lien to Lessee’s interest under this Lease, (ii) agree not to disturb
Lessee’s possession or rights under this Lease or terminate this Lease, so long
as Lessor is not entitled to terminate this Lease under the provisions hereof, (iii) provide
notice to Lessee, its Lenders and any Security Assignee under Section 17.2
of defaults under the Lien documents, and (iv) comply with such other
requirements as may be reasonably required by Lessee, its Lenders and any
Security Assignee under Section 17.2 to protect the interests of Lessee,
its Lenders, or any Security Assignee under Section 17.2, all in a form
reasonably acceptable to Lessee and in recordable form. Lessee may, at its sole
option, cure or correct Lessor’s default and upon doing so, Lessee shall be
subrogated to any and all rights, titles, liens and equities of the holders of
such mortgage or security interest to the extent of such cure, and the Lessee
shall be entitled to deduct and setoff against all rents that may otherwise
become due under this Lease the sums paid by Lessee to cure or correct such
defaults.

 

13.5                        Requirements of
Governmental Authorities. Lessor shall fully cooperate with Lessee,
at no out-of-pocket expense to Lessor, in connection with (i) obtaining
and complying with any land use, environmental or other Governmental Approvals
required for the financing, construction, installation, relocation,
replacement, maintenance, operation or removal of any Wind Energy Improvements,
including without limitation execution of applications for such Approvals and (ii) providing
affidavits or documents from Lessor customarily required by title companies.

 

13.6                        Hazardous
Materials. Lessor represents that to its knowledge: there are
no Hazardous Materials located on the Leased Property in any amount which would
require reporting under applicable Legal Requirements; the Leased Property has
not been used for the generation, treatment, storage, or disposal of Hazardous
Materials; and there are no underground storage tanks located on the Leased
Property.

 

13.7                        No Litigation. Lessor is not
a party to any, and to Lessor’s knowledge there are no pending or threatened,
legal, administrative, arbitral or other proceedings, claims,

 

H-12

 

actions or governmental or
regulatory investigations of any kind or nature whatsoever against Lessor (a) challenging
the validity or propriety of this Lease, the documents executed in connection
herewith, and/or transactions contemplated in this Lease and/or such documents
or (b) which could reasonably be expected to have a material adverse
effect on the ownership, operation or value of the Leased Property or any part
thereof or interest therein. Lessor shall promptly (i) inform Lessee of
any disagreements, disputes, threatened litigation or pending litigation
between any Lessor and any other party that may materially impact Lessee’s use
of the Leased Property, (ii) promptly give Lessee copies of any notices,
correspondence or other written or digital communication received by Lessor in
connection with any such disagreement, dispute, threatened litigation or
pending litigation.

 

13.8                        Estoppel
Certificates from Lessor. Lessor shall at any time and from time to
time, within fifteen (15) days after a written request by Lessee, execute and
deliver to Lessee a written statement certifying that this Lease is in full
force and effect (or modified and stating the modification). Such statement
shall also state that, to Lessor’s knowledge, there are no defaults existing at
the time of execution of the statement, or (to the extent applicable) if
existing, the nature of such defaults, and (b) attest to such other
factual matters relating to this Lease as Lessee shall reasonably request.

 

13.9                        Noise/Interference. Lessor
acknowledges and agrees that incident to the uses permitted by the Lease shall
be the continuous creation of audible and electromagnetic noise and
interference, radio frequency interference or cell tower interference related
to the maintenance, operation and use of the Wind Energy Improvements, including
WTGs, Transmission Facilities and other Improvements, and as further set forth
in Section 16.2, Lessor waives, on behalf of Lessor and its officers,
employees, permittees, invitees and agents (the “Lessor Parties”), the right to
make any claims for Losses as a result thereof.

 

13.10                 No Liability
for Failure to Develop or Operate. Lessor acknowledges and
agrees that Lessee may or may not elect to construct, install or develop WTGs,
Wind Energy Improvements, Transmission Facilities and/or Improvements on the
Leased Property in its sole discretion, and Lessee shall have no responsibility
or liability to Lessor or any other party in the event Lessee does not
construct, install or develop WTGs, Wind Energy Improvements, Transmission
Facilities and/or Improvements on the Leased Property. Furthermore, nothing in
this Lease may be interpreted as imposing on Lessee, or any other party, any
obligation to continuously operate any Wind Energy Improvements constructed,
developed or installed on the Leased Property, subject to the provisions of
10.6.

 

13.11                 Confidentiality. Lessor shall
maintain in confidence, except to the extent required by law, for the sole
benefit of Lessee, all information pertaining to the financial terms of or
payments under this Lease, Lessee’s site or product design, methods of
operation, methods of construction, power production or availability of the
Wind Energy Improvements whether disclosed by Lessee or discovered by Lessor,
unless such information either (a) is in the public domain by reason of
prior publication through no act or omission of Lessor or the other Lessor
Parties, or (b) was already known to Lessor at the time of disclosure and
which Lessor is free to use or disclose without breach of any obligation to any
person or entity. Lessor shall not publish or otherwise disclose such
information to others, except as necessary to financial advisors,

 

H-13

 

consultants, retained
experts, constituent entities of any Lessor, and lawyers or other
professionals, who receive such information under an obligation of
confidentiality.

 

13.12                 Surface Waivers. At its
discretion, Lessee may seek executed waivers from each party owning or leasing
a mineral interest underlying any portion of the Premises the development of
which might interfere with Lessee’s rights under this Lease by each such
mineral owner or lessee, on terms reasonably satisfactory to Lessee. Lessor
will use reasonable efforts to cooperate with Lessee in such efforts. With
respect to any and all existing mineral and geothermal interests: (a) Lessor
is not and has not received any lease, rent or royalty payment arising out of
any mineral and/or geothermal production related to the Premises; (b) Lessor
is not aware of any mining and/or geothermal development or production activity
on or related to the Premises; and (c) Lessor hereby confirms to its
actual knowledge without duty of inquiry that there are no unexpired mineral
leases or geothermal leases on or related to the Premises.

 

14.                               LESSEE
INSURANCE. Prior to commencing any activities at the Premises
Lessee at its own cost and expense will obtain and maintain and comply with the
following insurance requirements throughout the Initial Term and any extensions
thereof:

 

14.1                        General
Liability. Lessee shall obtain and maintain, from an
insurance company or companies and in a form acceptable to Lessor, a policy or
policies of commercial general liability insurance, or its equivalent, covering
all of Lessee’s activities and operations on the Premises or that in any way
may be the source of any liability claim against Lessor. Such policy or
policies shall provide protection against liability for bodily injury and death
and for damage to property. Liability coverage shall provide at least [language
redacted] in any one occurrence, with an annual aggregate limit of at least
[language redacted]. Lessee shall have Lessor named as an additional insured on
each such policy, or as an insured indemnitee, or provide contractual liability
endorsement in favor of and satisfactory to Lessor.

 

14.2                        Property
Coverage for Lessee’s Improvements. Lessee shall maintain
commercially adequate property insurance for damage or destruction to its
Improvements situated on the Premises.

 

14.3                        Worker’s
Compensation. Lessee shall maintain any required workers’
compensation insurance protecting against liability to each of its employees
regarding activities and operations related to the transportation and delivery
services required by this Lease. Employer liability coverage under workers’
compensation shall be at least [language redacted] in all areas in which
workers’ compensation insurance provides coverage.

 

14.4                        Auto and Truck
Insurance. Lessee shall obtain vehicle insurance on all
vehicles used on the Premises. This insurance coverage shall include liability
coverage of at least [language redacted].

 

14.5                        Evidence of
Insurance. Lessee shall provide to Lessor, upon request,
evidence of all insurance policies (or self-insurance plans) required under
this Lease. Such insurance policies shall provide for thirty (30) days written
notice to Lessor prior to cancellation of any coverage required herein, unless
a shorter notice period is approved in writing by Lessor. Lessor will consider
in good faith, and will not unreasonably withhold its consent to, any request

 

H-14

 

by Lessee to self-insure any
of the required coverages upon a showing by Lessee of the legality of
self-insurance and sufficient financial resources to support a self-insurance
program.

 

14.6                        Failure to
Obtain Required Insurance. Failure to obtain satisfactory insurance
and proof of insurance, or to provide self-insurance and evidence thereof,
shall constitute a default under this Lease. If Lessee fails to obtain any types
or amounts of insurance required under this Lease, Lessor shall have the right,
but shall not be obligated, to immediately obtain such insurance and keep the
same in effect. In such an event, Lessee shall pay Lessor the premium costs of
such insurance and any other actual costs incurred by Lessor in obtaining such
insurance within ten (10) days after demand.

 

14.7                        Increase in
Insurance Limits. Lessor may require by written notice an increase
in the insurance limits specified in this Section 14 based on inflation or
commercial adequacy. The inflation adjustment shall be made by one of the
following methods:

 

14.7.1              The coverage
limits for each policy of insurance required shall be increased on each
five-year anniversary of the Effective Date using the Inflation Index, with
2007 as the base year, or another index approved in writing by Lessor, for each
year that the Inflation Index is greater than the base year. The limits
required by this paragraph shall not exceed commercially reasonable limits.

 

14.7.2              Notwithstanding
the provision for inflation adjustment, if the policy limits established by
such adjustment do not comply with applicable law or are substantially less
than prevailing commercial practices for the activities conducted by Lessee,
then upon request from Lessor to Lessee, Lessee shall revise its policies to
provide commercially reasonable coverage limits.

 

15.                               LESSOR
INSURANCE. If Lessor commences new and material commercial
activities on the Premises, then at the request of Lessee, Lessor shall procure
and maintain during the Initial Term and any extension thereof, at its sole
cost and expense, a policy or policies of insurance in amounts not less than a
combined single limit of [language redacted] per occurrence and [language
redacted] in the aggregate, insuring against any and all liability to the
extent obtainable for injury or death of a person or persons or damage to
property occasioned by or arising out of or in connection with Lessor’s
occupation and material use of the Leased Property.  Lessee shall be named as an additional insured
on such policy or policies. Lessor shall provide copies of certificates
evidencing such coverage from time to time upon Lessee’s request. The limits of
any insurance coverage required under this Section 15 shall be subject to
adjustment as required under Subsection 14.7.

 

16.                               INDEMNITY AND
RELEASE

 

16.1                        Indemnity. To the
fullest extent permitted by law, each Party (an “Indemnifying Party”) shall
indemnify, defend and hold harmless the other Party and its consultants,
owners, agents, employees, and any company of which such Party is a subsidiary
or any company owned by an entity of which such Party is a subsidiary (the “Indemnified
Parties”) from and against claims, damages, losses and expenses, including, but
not limited to attorneys fees (collectively, “Losses”), arising out of or
resulting from (a) the Indemnifying Party’s

 

H-15

 

activities or operations (i) on
the Premises or (ii) which may create any liability claim against the
Indemnified Parties, including, without limitation, in the case of Lessee,
liens for material or labor furnished to the Premises at the instance of
Lessee, except to the extent that such Losses are caused by one or more
Indemnified Parties, or (b) inaccuracies in or breaches of the Indemnifying
Party’s representations, warranties, covenants or agreements contained herein.  Should either Party suffer a Loss because of
an act or omission of the other Party, the other Party’s employees or agents,
or another for whose acts the other Party is legally liable, claim shall be
made in writing to the other Party within a reasonable time after such Loss
occurred. Any obligation of indemnity hereunder will be limited to claims in
excess of $10,000. This duty to indemnify the Indemnified Parties shall extend
beyond termination of the Lease provided for in this Lease and shall continue
for so long as the Indemnified Parties can be held liable for any claim or
injury arising from any activities of Lessee, whether such activity occurs on
the Premises or elsewhere.

 

16.2        Release by Lessor. LESSOR, ON ITS OWN BEHALF AND ON BEHALF
OF EACH INDEMNIFIED PARTY, HEREBY IRREVOCABLY RELEASES AND DISCHARGES EACH
LESSEE INDEMNIFIED PARTY FROM ANY LOSSES ATTRIBUTABLE TO (i) INTERFERENCE
WITH WIND ON ANY PROPERTY OWNED IN WHOLE OR IN PART BY LESSOR THAT IS
ADJACENT TO THE LEASED PROPERTY, OR (ii) AUDIBLE NOISE, ANY EFFECT OF ELECTROMAGNETIC
FIELDS OR BACKGROUND STRAY VOLTAGE ON PERSONS OR LIVESTOCK ELECTROMAGNETIC NOISE
OR INTERFERENCE, RADIO FREQUENCY INTERFERENCE OR CELL TOWER INTERFERENCE. IN
EACH CASE TO THE EXTENT CAUSED BY ANY OF THE IMPROVEMENTS.

 

17.                               ASSIGNMENT AND
SUBDIVISION

 

17.1                        Assignment by
the Parties. This Lease and the rights of any Party to this Lease
and the Leased Property, Wind Energy Improvements, Transmission Facilities and
Improvements may be assigned, encumbered, or mortgaged, in whole or in part,
(and may be sublet by Lessee) without the prior written consent of the
non-assigning Party, but no such assignment, encumbrance, mortgage, deed of
trust, or sublease shall operate to enlarge the obligations or diminish the
rights of the non-assigning Party hereto, nor relieve the assigning Party of
its indemnification obligations hereunder (except as expressly provided below,
with respect to the release of the assigning Party). Notwithstanding the
foregoing, no assignment, encumbrance, mortgage, or sublease of this Lease or
the rights of any Party hereunder or to the Leased Property, Wind Energy
Improvements, Transmission Facilities or Improvements, however accomplished,
shall be binding on the non-assigning Party until after the non-assigning Party
has been furnished with written notice thereof and an executed original
counterpart of the instrument establishing such persons’ rights under this
Lease and/or to the Leased Property, Wind Energy Improvements, Transmission
Facilities and Improvements. Except as otherwise provided herein, in the event
of an assignment or sublease of this Lease by any Party hereto that is not for
collateral or other security purposes, such Party shall be relieved of all
obligations under this Lease as to the interest so assigned to the extent that
such obligations relate to periods of time following such assignment and are
assumed by the party to whom assigned, and liability for obligations relating
to the interest so assigned and assumed and relating to the periods of time
from and after such assignment shall rest exclusively upon such assignee;
provided, that no such

 

H-16

 

assignment shall release the
assigning Party from its removal obligations under Section 21 hereof
absent a demonstration to Lessor’s reasonable satisfaction that the assignee is
financially capable of assuming such obligations. Without limiting the
generality of the foregoing, any such assignment shall not relieve the
assigning Party from any obligation that arose or accrued prior to such
assignment.

 

17.2                        Security
Assignment by Lessee; Cure Rights of Security Assignee.

 

17.2.1              In connection
with Lessee’s financing of the Project, Lessee and every successor and assign
of Lessee may, without Lessor’s prior written consent, mortgage, collaterally
assign, or otherwise encumber and grant security interests in all or any part
of Lessee’s rights or interests in this Lease, or any part or parts thereof, or
any of the Wind Energy Improvements, Improvements or Transmission
Facilities, under one or more leasehold mortgage(s), or deed(s) of trust,
and may assign this Lease, or any part or parts thereof, and any subleases as
collateral security for such leasehold mortgage(s), upon the condition that all
rights acquired under such leasehold mortgage(s) or trustee(s) shall
be subject to each and all of the covenants, conditions, and restrictions set
forth in this Lease, and to all rights and interests of Lessor herein, none of
which covenants, conditions, or restrictions is or shall be waived by Lessor by
reason of the right given to so grant leasehold mortgages or deed(s) of
trust with respect to such interest in this Lease.

 

17.2.2              If Lessee
grants to any party (a “Security Assignee”) a Lien on or security interest in
all or any part of or any interest in its rights hereunder, Wind Energy
Improvements, Transmission Facilities, or Improvements for security purposes,
the Security Assignee shall have no obligation or liability under this Lease
prior to the time, if ever, that that such Security Assignee succeeds to the
rights of the Lessee under the Lease, or to the Wind Energy Improvements, Transmission
Facilities or Improvements by foreclosure or conveyance in lieu of foreclosure.

 

17.2.3              A Security
Assignee shall have the right, but not the obligation, at any time prior to the
termination or exercise of any other remedy, to pay any or all amounts due from
Lessee hereunder and to do any other act or thing required of Lessee as
necessary to cure any Lessee default and to prevent the termination of the
Lease or the exercise of any other remedy. Security Assignee shall be entitled
to a minimum of thirty (30) days to cure a monetary default if Lessee fails to
cure within Lessee’s cure period, and sixty (60) days to cure a non-monetary
default, if Lessee fails to cure within Lessee’s cure period; provided,
further, that such period shall be extended for non-monetary defaults as
reasonably necessary to effect a cure if and to the extent the same is not
susceptible of cure within such sixty (60) day period but Security Assignee
commences such cure within such period (or as soon as Security Assignee obtains
possession of the Leased Property) and diligently prosecutes the same to
completion. In furtherance of the foregoing, as a precondition to exercising
any rights or remedies as a result of any alleged default by Lessee, Lessor
shall give written notice of the alleged default to each Security Assignee of
which Lessor has received notice concurrently with delivery of such notice to
Lessee, specifying in detail the alleged default and not less than thirty (30)
days prior written notice of the date Lessor (subject to the notice provision
set forth in Section 18.2) will commence the exercise of termination or
any other remedy under this Lease. Upon any payment or cure by Security
Assignee provided for in this Section 17.2.3, Security Assignee shall be

 

H-17

 

subrogated to the rights of
the Lessor in respect of the defaulted payment and interest payable thereon and
shall be entitled to receive such defaulted payment and interest as shall be
provided in the agreement or other instrument granting the Security Assignee a
Lien or security interest in all or any part of or interest in this Lease, the
Leased Property, the Wind Energy Improvement, Transmission Facilities or
Improvements or as shall be provided in any other agreement between the Lessee
and the Security Assignee, and Lessor shall not be entitled to terminate this
Lease and any notice of termination or breach previously given shall be void.

 

17.2.4              There shall be
no voluntary cancellation, surrender or amendment to this Lease by joint action
of Lessor and Lessee without the prior written consent of the Secured Assignee.

 

17.2.5              Lessor shall
execute any instruments that a Secured Party may reasonably request with
respect to acknowledging (i) the right of Lessee or its assignee or
sublessee to erect or install the Improvements, and that same shall not be
deemed to be nor become part of the Premises, (ii) the right of the
Secured Party to maintain a lien or security interest in the Improvements
superior to any claim or interest of Lessor, and (iii) the right to remove
any or all Improvements in the event of default in the instrument creating the
lien or security interest, subject to the terms hereof regarding remediation of
the Premises.

 

17.3                        New Lease. If this Lease
is rejected by a trustee or debtor-in-possession in any bankruptcy or
insolvency preceding except in the case where Lessee shall elect to retain its
rights under the Lease pursuant to Section 365(h) of the U.S.
Bankruptcy Code or other similar applicable law, or the Lease is terminated by
operation of law or as a result of any default, and within one hundred twenty
(120) days after such rejection or termination a Security Assignee shall have
arranged to the reasonable satisfaction of Lessor for the payment of all fees
or other charges due and payable by Lessee as of the date of such rejection or
termination, then Lessor shall execute and deliver to Security Assignee or its
designee a new lease to the Leased Property which (a) shall be for a term
equal to the remainder of the term of the Lease before giving effect to such
rejection or termination, (b) shall contain the same covenants,
agreements, terms, provisions and limitations as this Lease (except for any
requirements that have been fulfilled by Lessee prior to rejection or
termination of the Lease), (c) shall include that portion of the Lease,
Leased Property, Wind Energy Improvements or Improvements in which Security
Assignee had a security interest on the date of rejection or termination, (d) shall
enjoy the same priority as this Lease over any Lien or other interest created
by Lessor, (e) may be made subject to the same security interest held by
Security Assignee prior to any such rejection by a trustee or debtor-in
possession in any bankruptcy or insolvency proceeding; and, until such time as
such new lease is executed and delivered, the Security Assignee may enter, use
and enjoy the Leased Property and conduct operations thereon as if this Lease
were still in effect.

 

17.4                        Third Party
Beneficiary. For purposes of enforcing it rights and remedies
and the obligations of the Lessor and the Lessee under this Lease, Security
Assignee shall be an express third party beneficiary thereof and may enforce
such rights and remedies and such obligations of the Lessor and Lessee.

 

H-18

 

17.5                        Subdivision/Separation. In order to
satisfy the financing and transactional requirements of the separate Lenders
and power purchasers of each Wind Energy Improvement, the Lessee may, upon
prior written notice to Lessor and subject to applicable law, (i) subdivide
the leasehold estate and all rights and obligations of Lessee granted hereby
into separate leasehold estates (the “Subdivided Leaseholds”), referencing
specific portions of the Premises to be included in each Subdivided Leasehold;
and (ii) assign each Subdivided Leasehold to a single purpose limited
liability company or legal entity that will own the Wind Energy Improvement
located within the Subdivided Leasehold. In lieu of such subdivisions, at the
request of Lessee, Lessor and Lessee will (i) amend this Lease to remove
portions of the Leased Property other than that required for the initial Wind
Energy Improvement; and (ii) cause Lessor and any designee of Lessee to
execute one or more separate leases with respect to such removed portions of
the Leased Property, each in form and substance materially identical to this
Lease (with such changes as shall be necessary to reflect such removal). In
order to comply with the separate financial and security requirements of
separate Wind Energy Improvements, the segregated leasehold estates will not be
subject to cross defaults with each other, allowing each lessee and its
Security Assignees to enjoy quiet title to their respective leasehold rights
and interests regardless of any default of another lessee.

 

18.                               DEFAULT AND
TERMINATION

 

18.1                        Lessee’s Right
to Terminate. In addition to its other termination rights herein,
Lessee shall have the right to terminate the Lease as to all or any part of the
Leased Property at any time, effective upon thirty (30) days’ written notice to
Lessor from Lessee.

 

18.2                        Lessor’s Right
to Terminate. Subject to Section 17.2.3, Lessor shall have
the right to terminate the Lease if (a) a material default in the
performance of Lessee’s obligations under this Lease shall have occurred and
remains uncured, (b) Lessor notifies Lessee and Security Assignee in
writing of the default, which notice sets forth in reasonable detail the facts
pertaining to the default, and (c)(i) if the default is a failure to pay
undisputed charges or sums due and payable, then if the default, shall not have
been remedied within sixty (60) days after Lessee and Security Assignee receive
notice thereof, or (ii) if the default is other than a payment default
described in clause (c)(i), then if the default shall not have been remedied
within one hundred twenty (120) days after Lessee and Security Assignee receive
notice thereof, or if the default will take longer than one hundred twenty (120)
days for Lessee to remedy, Lessee is not working diligently to remedy such
default.

 

18.3                        Effect of
Termination. Upon termination of the Lease, whether as to the
entire Leased Property or a portion thereof, Lessee shall, upon written request
by Lessor, prepare and place of record in the county or counties in which the
Leased Property is located, a release of all of Lessee’s right, title and
interest in and to the Leased Property, or to that part thereof as to which the
Lease has been terminated. Subject to Section 21, following termination of
the Lease as to all or any part of the Leased Property, Lessee shall peaceably
and quietly leave, surrender and return the Leased Property (or applicable
portion thereof) to Lessor. All further rights and obligations of Lessor and
Lessee under this Lease will cease and terminate as of the date of any
termination with respect or in regard to the Leased Property, or to that part
as to which the Lease has been terminated; except for the provisions of Section 21
and those obligations that expressly survive the termination of this Lease.

 

H-19

 

18.4                        Remedies. If either
Lessor or Lessee breaches this Lease, the non-breaching Party shall have all
rights and remedies available to such non-breaching Party at law and in equity.
In consideration of the investment being made by Lessee in reliance on the
provisions herein, including Sections 3 and 4 hereto regarding coordination of
Lessor and Lessee activities on the Premises, Lessee shall have the special
remedy of specific enforcement with respect to Lessor breaches of this Lease
that adversely affect the operation of any Wind Energy Improvement. In order to
protect its investment in future agricultural installations, Lessor shall have
the special remedy of specific performance with respect to the bio-security
provisions set forth in Section 12.7.

 

18.5                        Safety
Risks/Emergency. Notwithstanding any other term hereof, each Party
may undertake such actions as may be reasonable under the circumstances to
avoid imminent death, injury or damage to the persons or property of themselves
or others, without incurring liability hereunder or to avoid violation of any
federal, state, or local government, agency, or other authority under any
applicable federal, state, or local law, rule, regulation, ordinance, statute,
order, or decree. Lessor may undertake any action it deems necessary under the
circumstances to cure a breach by Lessee of Lessor’s Bio-Security Management
System or Animal Welfare System requirements, and Lessee shall reimburse Lessor
the reasonable cost of any such cure.

 

19.                               CONDEMNATION.

 

19.1                        Complete Taking. If during the
Initial Term or any extension thereof there shall be taken for any public or
quasi-public use under any statute or by right of eminent domain or by private
purchase in lieu thereof, the entire Leased Property or any substantial portion
of the Leased Property which is sufficient to render the remaining portion
thereof unsuitable, in the sole judgment of Lessee, for restoration for
continued use by Lessee for the purposes of this Lease, Lessee shall have the
right to terminate this Lease as of the date of such taking. Such termination
shall be without prejudice to the rights of either Lessor or Lessee to recover
compensation from the condemning authority for any Loss caused by such
condemnation.

 

19.2                        Partial Taking. If during the
Term there shall be taken for any public or quasi-public use under any statute
or by right of eminent domain or by private purchase in lieu thereof, a portion
of the Leased Property which is not sufficient to require termination of this
Lease as provided in Section 19.1 above, then this Lease shall continue in
full effect as to the untaken portion notwithstanding such taking, and the rent
payable hereunder shall be equitably adjusted based on the circumstances. In
the event of any lesser taking as described in this Section 19.2, Lessee
shall be entitled to the portion of the net award for such taking (whether paid
by way of damages, rent or otherwise) allocable to the Improvements placed on
the Leased Property by Lessee, or to the relocation of the same.

 

19.3                        Apportionment,
Distribution of Award. On any taking, all sums awarded shall be
apportioned between the Parties in proportion to their respective: (i) costs
of relocating or removing property; (ii) anticipated lost revenues or
profits; (iii) other remaining values of their respective interests.

 

H-20

 

20.          RIGHTS UPON SALE. If Lessor
desires during the Initial Term or any extension thereof to sell, transfer or
otherwise dispose (a “Sale”) of all or any portion of its interest in the
Leased Property to a third party (“Purchaser”), Lessor shall (a) obtain
from the Purchaser a bona fide written offer to acquire such interest, stating
the terms and conditions upon which the Sale is to be made and the
consideration offered therefore, and (b) give written notification to
Lessee of its intention to so sell or otherwise dispose of its interest in the
Leased Property, which notification shall be accompanied by a copy of Purchaser’s
offer. Lessee shall have the option to purchase all but not less than all of
the interest in the Leased Property offered by Lessor upon the same terms and
conditions as offered by the Purchaser, which option may be exercised by giving
written notification to Lessor within twenty (20) days after notice of Lessor’s
intent to sell or otherwise dispose of the interest in the Leased Property. If
Lessee fails to timely exercise its purchase option, Lessor shall be entitled
to consummate the Sale to the Purchaser upon terms and conditions that are
materially no less favorable than are set forth in Purchaser’s offer, with such
Purchaser taking subject to this Lease. If Lessee timely elects to exercise its
purchase option, it shall designate the time, date, and place of closing,
provided that the date of closing shall be within sixty (60) days of the date
of Lessee’s exercise of its purchase option.

 

21.          REMOVAL UPON TERMINATION. Upon
termination of the Lease, Lessee shall, within ninety (90) days, remove its
building(s), equipment, cables, fixtures, and all personal property and
otherwise restore the Premises, reasonable wear and tear and casualty excepted,
it being understood that WTG foundations shall be removed to at least five feet
(5’) below grade and covered with topsoil, and at the request of Lessor, any
access roads and crane pads will be contoured to match the surrounding terrain
and seeded. Lessor agrees and acknowledges that all of the Improvements,
equipment, fixtures and personal property of Lessee shall remain the property
of Lessee, and Lessee shall have the right to remove the same, whether or not
said items are considered fixtures and attachments to real property under
applicable law. If such time for removal causes Lessee to remain on the
Premises after the 90th day following termination of this Lease, Lessee shall
pay Base Rent at the then existing monthly rate until such time as the removal
of the building(s), equipment, cables, fixtures and all personal property are
completed. Lessee shall be responsible to remove any hazardous materials or
environmental contamination from the Premises that it caused to be located
thereon.

 

22.          MISCELLANEOUS

 

22.1        Force Majeure. If
performance of this Lease or of any obligation hereunder (other than an
obligation to pay any amounts described in Section 10) is prevented or
substantially restricted or interfered with by reason of an event of Force Majeure
(defined below), the affected Party shall be excused from such performance to
the extent of and for the duration of such prevention, restriction, or
interference. The affected Party shall promptly notify the other Party in
writing of the event of Force Majeure and shall use its reasonable efforts to
avoid or remove such causes of nonperformance, and shall continue performance
hereunder whenever such causes are removed. The term “Force Majeure” means
causes beyond the reasonable control of and without the fault or negligence of
the Party claiming Force Majeure, including, but not limited to, acts of God,
labor unrest (including, but not limited to, slowdowns, picketing, boycotts or
strikes), floods, earthquakes, storms, fires, lightning, explosions, power
failures or power surges, vandalism, theft, terrorism, the unauthorized cutting
of power, transmission or other lines, wires or cables to a Wind Energy
Improvement, epidemics, wars,

 

H-21

 

revolutions, riots, civil
disturbances, sabotage, changes in law or applicable regulations subsequent to
the date hereof and actions or inactions by any federal, state or local
legislative, executive, administrative judicial agency or body which in any of
the foregoing cases, by exercise of due foresight such Party could not
reasonably have expected to avoid, and which, by the exercise of due diligence,
it is unable to overcome.

 

22.2        Exclusion of Warranties. Lessor and
Lessee specifically acknowledge that Lessee is responsible to evaluate the
condition and suitability of the Leased Property for use by Lessee for the
purposes set out in this Lease. LESSOR EXPRESSLY EXCLUDES ANY WARRANTY THAT THE
PREMISES OR ANY IMPROVEMENTS OR EQUIPMENT LOCATED ON THE PREMISES ARE SUITABLE
OR FIT FOR LESSEE’S USE FOR THE PURPOSES INTENDED BY LESSEE OR FOR ANY PURPOSE.

 

22.3        Further Assurances. Each Party
shall, whenever reasonably requested by the other, execute, acknowledge and
deliver, or cause to be executed, acknowledged and delivered, all conveyances,
assignments and all other instruments and documents as may be reasonably
necessary in order to complete the transactions herein provided and to carry
out the terms and provisions of this Lease.

 

22.4        Severability. If, at any
time, any provision of this Lease is or becomes illegal, invalid, or
unenforceable in any respect under the law of any jurisdiction, neither the
legality, validity, or enforceability of the remaining provisions hereof nor
shall the legality, validity, or enforceability of such provision under the law
of any other jurisdiction in any way be affected or impaired thereby and the
Parties shall promptly negotiate to restore this Lease as near as possible to
its original intent and economic effect.

 

22.5        Tax Credits. Lessee and
Lessor acknowledge and agree that as between Lessee and Lessor, Lessee is, to
the extent allowed by law, to have the benefit of all federal, state, and local
tax credits and other benefits associated with the generation of electricity
from a “clean” or renewable power source. Except as provided above, if under
applicable law the holder of a leasehold interest becomes ineligible for any
tax credit, benefit, or incentive for alternative energy expenditure
established by any local, state, or federal government, then, at Lessee’s
option, Lessor and Lessee, to the extent practicable, shall amend this Lease or
replace it with a different instrument, so as to convert Lessee’s interest in
the Leased Property to a substantially equivalent interest that makes Lessee
eligible for such tax credit, benefit, or incentive; provided, however, that
any such change shall not materially reduce Lessor’s rights or benefits
hereunder.

 

22.6        No Partnership. Nothing
contained in this Lease shall be construed to create a partnership or joint
venture between the Parties or their successors in interest and Lessor shall
not have any ownership in the Wind Energy Improvements or any rights to the
electricity generated thereby except and to the extent set forth in a written
agreement by and between Lessor and Lessee.

 

22.7        Construction. The Parties
acknowledge that their attorneys have reviewed and revised this Lease and that
any rule of construction to the effect that any ambiguities are to be
resolved against the drafting Party shall not be employed in the interpretation
of this Lease or

 

H-22

 

any amendments or exhibits
hereto. Each Party was represented by legal counsel in the negotiations of this
Lease.

 

22.8        Counterparts. This Lease may
be executed by facsimile [provided that a duplicate copy with an original
signature is transmitted to the other Party within the following ten (10) days]
and in multiple counterparts, no one of which need be executed by all Parties
hereto, each of which shall constitute an original. Counterparts thus executed
shall together constitute one and the same instrument.

 

22.9        Integration. This Lease
contains all agreements, promises and understandings between the Lessor and the
Lessee and that no verbal or oral agreements, promises or understandings shall
be binding upon either the Lessor or the Lessee in any dispute, controversy or
proceeding at law, and any addition, variation or modification to this Lease
shall be void and ineffective unless made in writing and signed by the Parties.
This Lease supersedes in all respects that certain Option Agreement between the
Parties hereto, dated October 8, 2003, as subsequently amended on April 15,
2005 and April 1, 2006, and such Option Agreement is of no further effect.

 

22.10      Governing Law. This Lease
and the performance thereof shall be governed, interpreted, construed and
regulated in accordance with the laws of the State of Utah.

 

22.11      Notices. All notices
hereunder must be in writing and shall be deemed validly given if sent by
certified mail, return receipt requested, or by commercial courier, provided
the courier’s regular business is delivery service and provided further that it
guarantees delivery to the addressee by the end of the next business day
following the courier’s receipt from the sender, addressed as follows (or any
other address that the Party to be notified may have designated to the sender
by like notice):

 

	
  To the Lessor:

  	
   

  	
  Circle Four LLC

  
	
   

  	
   

  	
  ATTN: Jim Webb

  
	
   

  	
   

  	
  Circle Four Farms

  
	
   

  	
   

  	
  PO Box 100

  
	
   

  	
   

  	
  Milford, UT 84751-0100

  
	
   

  	
   

  	
   

  
	
  With a copy (which shall
  not constitute notice) to:

  	
   

  	
  Waddingham &
  Associates, PC

  
	
   

  	
   

  	
  Attorney at Law

  
	
   

  	
   

  	
  362 West Main

  
	
   

  	
   

  	
  Delta, UT 84625

  
	
   

  	
   

  	
   

  
	
  To the Lessor:

  	
   

  	
  Milford Wind Corridor
  Phase II, LLC

  
	
   

  	
   

  	
  c/o First Wind Energy, LLC

  
	
   

  	
   

  	
  85 Wells Avenue,
  Suite 305

  
	
   

  	
   

  	
  Newton, MA 02459

  
	
   

  	
   

  	
   

  
	
  With Copy to:

  	
   

  	
  First Wind Energy, LLC

  
	
   

  	
   

  	
  85 Wells Avenue,
  Suite 305

  
	
   

  	
   

  	
  Newton, MA 02459

  

 

H-23

 

Notice shall be effective
upon mailing or delivering the same to a commercial courier, as permitted
above.

 

22.12      Successors. This Lease
shall extend to and bind the heirs, personal representatives, successors,
trustees, and assigns of the Parties hereto.

 

22.13      Recording. Concurrent
with the execution of this Lease, the Parties shall each execute and
acknowledge an amended and restated memorandum to replace and supersede the
Original Memorandum and either Party may thereafter record such amended and
restated memorandum in the Official Records of the Millard County Recorder and
the Beaver County Recorder. The date set forth in any such amended and restated
memorandum is for recording purposes only and bears no reference to
commencement of either term or rent payments.

 

22.14      Casualty. In the event
of damage by fire or other casualty whatsoever to the Leased Property that
cannot reasonably be expected to be repaired within forty-five (45) days
following same or, if the Premises is damaged by fire or other casualty
whatsoever so that such damage may reasonably be expected to disrupt the Lessee’s
operations at the Premises for more than forty-five (45) days, or if any event
makes it impossible for the Lessee to effectively and practicably operate
Lessee’s business at a reasonable profit as determined by Lessee, then the
Lessee may at any time following such fire or other casualty or event,
terminate this Lease upon sixty (60) days written notice to the Lessor. Any
such notice of termination shall cause this Lease to expire with the same force
and effect as though the date set forth in such notice were the date originally
set as the expiration date of this Lease, and the Parties shall make an
appropriate adjustment, as of such termination date, with respect to payments
due to the other under this Lease.

 

22.15      Submission of Lease. The
submission of this Lease for examination does not constitute an offer to lease
the Premises, and this Lease becomes effective only upon the full execution of
this Lease by the Parties.

 

22.16      Authority to Execute
Agreement. Each of the Parties hereto warrants to the other
that the person or persons executing this Lease on behalf of such Party has the
full right, power and authority to enter into and execute this Lease on such
Party’s behalf and that no consent from any other person or entity is necessary
as a condition precedent to the legal effect of this Lease.

 

22.17      Applicable Legal
Requirements. The Lessee shall use the Leased Property as may be
required or as permitted by applicable Legal Requirements. The Lessee agrees to
keep the Leased Property in material conformance with all applicable Legal
Requirements and agrees to reasonably cooperate with the Lessor regarding any
compliance required by the Lessor in respect to its use of the Premises.

 

22.18      Arbitration.

 

22.18.1          Any claim shall, at the request
of either Party, be referred to a senior representative of each of the Parties
for resolution on an informal basis as promptly as

 

H-24

 

practicable. If the senior
representatives are unable to resolve the dispute within thirty (30) calendar
days of such referral or such other period as the Parties may mutually agree,
the Parties may submit the matter to binding arbitration in accordance with
this Section 22.18.

 

22.18.2          Any controversy arising out
of or relating to this Lease, including but not limited to the interpretation
of the Lease, may be subject to arbitration upon the mutual agreement of the
Parties. Should the Parties elect to proceed with arbitration, an award shall
be final and judgment may be entered on the award. All Parties to this Lease
are bound, each to the other, by this arbitration clause, provided that each
such Party has signed this Lease or has signed another agreement or document
that incorporates this Lease by reference, or signs any other agreement to be
bound by this arbitration clause.

 

22.18.3          The Parties hereto agree to
be bound by the Utah Uniform Arbitration Act, Utah Code Ann. §§ 78-31a-101, et
seq., or any subsequent recodification or enactment of a replacement to these
provisions. The arbitrators shall apply Utah law in evaluating the evidence
presented.

 

22.18.4          Arbitration shall be in
accordance with the Commercial Arbitration Rules of the American
Arbitration Association in effect at the time arbitration is initiated. The scope
of the arbitration shall be determined by the arbitrator or arbitrators
depending upon the size of the claim and the controlling Commercial Arbitration
Rules. The arbitration hearings shall be held at the Offices of the American
Arbitration Association located in Salt Lake City, Utah. Should any Party
refuse or neglect to appear or participate in the arbitration proceedings after
due notice, the arbitrator or arbitrators are empowered to decide the
controversy in accordance with whatever evidence is presented ex parte. Each
side shall bear its own costs and attorney fees incurred for the time, expense,
and trouble of the arbitration. The costs and fees associated with pursuing the
arbitration with the American Arbitration Association shall be borne equally by
all the Parties.

 

22.18.5          This Section 22.18
shall survive the termination or expiration of this lease.

 

22.18.6          Judgment upon the award
rendered by the arbitrators may be entered in any court having jurisdiction.

 

22.19      Captions. The captions
contained in this Lease are inserted for convenience only and are not intended
to be part of this Lease. They shall not affect or be utilized in the
construction or interpretation of this Lease.

 

22.20      Publicity. Neither Party
shall use the name, trademark, logo, or other identifying information of the
other Party or its affiliates in any publicity display or advertising without
the other Party’s prior written approval.

 

22.21      Survival. Any provision
of this Lease that expressly or by implication comes into or remains in force
following the termination of this Lease shall survive the termination or
expiration of this Lease for the period set forth in such provision, or if no
period is set forth in such provision, for the period that is coextensive with
the applicable statute of limitations. The provisions of the Lease relating to
indemnification from one Party to the other

 

H-25

 

Party for events prior to
such termination shall survive any termination or expiration of this Lease.
Additionally, any provisions of this Lease which require performance subsequent
to the termination or expiration of this Lease shall also survive such
termination or expiration.

 

22.22      Attorneys Fees. Each Party
shall bear its own attorney’s fees and costs incurred in connection with any
claim, controversy or dispute arising under or in connection with this Lease.

 

[THIS
SPACE INTENTIONALLY LEFT BLANK]

 

H-26

 

IN WITNESS WHEREOF, the
Parties hereto have set their hands and affixed their respective seals to this
Amended and Restated Land Lease Agreement the day and year set forth below to
be effective as of the Effective Date.

 

 

	
  WITNESS

  	
  LESSOR:

  
	
   

  	
   

  
	
   

  	
  CIRCLE FOUR LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  Date:

  	
  April           ,
  2009

  

 

	
  WITNESS

  	
  LESSEE:

  
	
   

  	
   

  
	
   

  	
  MILFORD WIND CORRIDOR
  PHASE II, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  Date:

  	
  April           ,
  2009

  

 

H-27

 

Acknowledgement
of Lessor

 

	
  STATE OF

  	
   

  	
  )

  	
   

  
	
   

  	
  :ss

  	
   

  	
   

  
	
  COUNTY OF

  	
   

  	
  )

  	
   

  

 

The Foregoing instrument was
acknowledged before me this
              
day of April, 2009, by
                                                                ,
as
                                                                    
of Circle Four LLC, a Delaware limited liability company.

 

 

	
   

  	
   

  
	
   

  	
  NOTARY
  PUBLIC

  
	
   

  	
  Residing at:

  	
   

  

 

	
  My
  Commission Expires:

  	
   

  
	
   

  	
   

  

 

 

Acknowledgement
of Lessee

 

	
  STATE OF

  	
   

  	
  )

  	
   

  
	
   

  	
  :ss

  	
   

  	
   

  
	
  COUNTY OF

  	
   

  	
  )

  	
   

  

 

The Foregoing instrument was
acknowledged before me this
              
day of April, 2009, by                                                                 ,
as
                                                                        
of Milford Wind Corridor Phase II, LLC, a Delaware limited liability company.

 

 

	
   

  	
   

  
	
   

  	
  NOTARY
  PUBLIC

  
	
   

  	
  Residing at:

  	
   

  

 

	
  My
  Commission Expires:

  	
   

  
	
   

  	
   

  

 

H-28

 

	
  WITNESS

  	
  LESSOR:

  
	
   

  	
   

  
	
   

  	
  CIRCLE FOUR LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  Date:

  	
  April           ,
  2009

  

 

	
  WITNESS

  	
  LESSEE:

  
	
   

  	
   

  
	
   

  	
  MILFORD WIND CORRIDOR PHASE
  II, LLC

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
  Date:

  	
  April           ,
  2009

  

 

H-29

 

	
  STATE OF

  	
   

  	
  )

  	
   

  
	
   

  	
  :ss

  	
   

  	
   

  
	
  COUNTY OF

  	
   

  	
  )

  	
   

  

 

The Foregoing instrument was
acknowledged before me this
              
day of April, 2009, 2007, by
                                                      ,
as
                                                                  
of Circle Four LLC, a Delaware limited liability company.

 

 

	
   

  	
   

  
	
   

  	
  NOTARY
  PUBLIC

  
	
   

  	
  Residing at:

  	
   

  

 

	
  My
  Commission Expires:

  	
   

  
	
   

  	
   

  

 

 

Acknowledgement
of Lessee

 

	
  COMMONWEALTH OF

  	
   

  	
  )

  	
   

  
	
   

  	
  :ss

  	
   

  	
   

  
	
  COUNTY OF

  	
   

  	
  )

  	
   

  

 

The Foregoing instrument was
acknowledged before me this
              
day of April, 2009, 2007, by                                                       ,
as
                                                                  
of Milford Wind Corridor Phase II, LLC, a Delaware limited liability company.

 

 

	
   

  	
   

  
	
   

  	
  NOTARY
  PUBLIC

  
	
   

  	
  Residing at:

  	
   

  

 

	
  My
  Commission Expires:

  	
   

  
	
   

  	
   

  

 

H-30

 

EXHIBIT A

TO

AMENDED AND RESTATED LAND LEASE AGREEMENT 

(Millard County)

 

PREMISES

 

The Premises consist of the
following Parcels located in Millard County and Beaver County, Utah:

 

PARCEL 1:

 

THE SOUTH HALF OF SECTION 31,
TOWNSHIP 25, SOUTH, RANGE 9 WEST, SALT LAKE BASE AND MERIDIAN.

 

PARCEL 2:

 

ALL OF SECTION 32,
TOWNSHIP 25 SOUTH, RANGE 9 WEST, SALT LAKE BASE AND MERIDIAN

 

PARCEL 3:

 

THE NORTHEAST QUARTER OF SECTION 33,
TOWNSHIP 25 SOUTH, RANGE 9 WEST, SALT LAKE BASE AND MERIDIAN

 

PARCEL 4:

 

THE NORTHEAST QUARTER OF SECTION 33,
TOWNSHIP 25 SOUTH, RANGE 9 WEST, SALT LAKE BASE AND MERIDIAN

 

PARCEL 5

 

THE NORTH 120.32 ACRES OF
THE SOUTHEAST QUARTER OF SECTION 6, TOWNSHIP 26 SOUTH, RANGE 9 WEST, SALT
LAKE BASE AND MERIDIAN

 

PARCEL 6:

 

THE SOUTH HALF OF SECTION 29,
TOWNSHIP 25, SOUTH, RANGE 9 WEST, SALT LAKE BASE AND MERIDIAN.

 

H-31

 

APPENDIX I

 

TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

AND

MILFORD WIND CORRIDOR PHASE II, LLC

 

GUARANTEED GENERATION AND PREPAYMENT AMOUNT TABLE

 

Guaranteed
Generation

 

	
   

  	
   

  	
  Through and

  	
   

  	
   

  	
   

  
	
  From (MWH)

  	
   

  	
  Including(MWH)

  	
   

  	
  Prepayment Amount

  	
   

  
	
  4,458,666

  	
   

  	
  4,467,600

  	
   

  	
  $

  	
  209,977,200

  	
   

  
	
  4,449,731

  	
   

  	
  4,458,665

  	
   

  	
  $

  	
  209,557,246

  	
   

  
	
  4,440,795

  	
   

  	
  4,449,730

  	
   

  	
  $

  	
  209,137,291

  	
   

  
	
  4,431,860

  	
   

  	
  4,440,794

  	
   

  	
  $

  	
  208,717,337

  	
   

  
	
  4,422,925

  	
   

  	
  4,431,859

  	
   

  	
  $

  	
  208,297,382

  	
   

  
	
  4,413,990

  	
   

  	
  4,422,924

  	
   

  	
  $

  	
  207,877,428

  	
   

  
	
  4,405,055

  	
   

  	
  4,413,989

  	
   

  	
  $

  	
  207,457,474

  	
   

  
	
  4,396,119

  	
   

  	
  4,405,054

  	
   

  	
  $

  	
  207,037,519

  	
   

  
	
  4,387,184

  	
   

  	
  4,396,118

  	
   

  	
  $

  	
  206,617,565

  	
   

  
	
  4,378,249

  	
   

  	
  4,387,183

  	
   

  	
  $

  	
  206,197,610

  	
   

  
	
  4,369,314

  	
   

  	
  4,378,248

  	
   

  	
  $

  	
  205,777,656

  	
   

  
	
  4,360,379

  	
   

  	
  4,369,313

  	
   

  	
  $

  	
  205,357,702

  	
   

  
	
  4,351,443

  	
   

  	
  4,360,378

  	
   

  	
  $

  	
  204,937,747

  	
   

  
	
  4,342,508

  	
   

  	
  4,351,442

  	
   

  	
  $

  	
  204,517,793

  	
   

  
	
  4,333,573

  	
   

  	
  4,342,507

  	
   

  	
  $

  	
  204,097,838

  	
   

  
	
  4,324,638

  	
   

  	
  4,333,572

  	
   

  	
  $

  	
  203,677,884

  	
   

  
	
  4,315,703

  	
   

  	
  4,324,637

  	
   

  	
  $

  	
  203,257,930

  	
   

  
	
  4,306,767

  	
   

  	
  4,315,702

  	
   

  	
  $

  	
  202,837,975

  	
   

  
	
  4,297,832

  	
   

  	
  4,306,766

  	
   

  	
  $

  	
  202,418,021

  	
   

  
	
  4,288,897

  	
   

  	
  4,297,831

  	
   

  	
  $

  	
  201,998,066

  	
   

  
	
  4,279,962

  	
   

  	
  4,288,896

  	
   

  	
  $

  	
  201,578,112

  	
   

  
	
  4,271,027

  	
   

  	
  4,279,961

  	
   

  	
  $

  	
  201,158,158

  	
   

  
	
  4,262,091

  	
   

  	
  4,271,026

  	
   

  	
  $

  	
  200,738,203

  	
   

  
	
  4,253,156

  	
   

  	
  4,262,090

  	
   

  	
  $

  	
  200,318,249

  	
   

  
	
  4,244,221

  	
   

  	
  4,253,155

  	
   

  	
  $

  	
  199,898,294

  	
   

  
	
  4,235,286

  	
   

  	
  4,244,220

  	
   

  	
  $

  	
  199,478,340

  	
   

  
	
  4,226,351

  	
   

  	
  4,235,285

  	
   

  	
  $

  	
  199,058,386

  	
   

  
	
  4,217,415

  	
   

  	
  4,226,350

  	
   

  	
  $

  	
  198,638,431

  	
   

  
	
  4,208,480

  	
   

  	
  4,217,414

  	
   

  	
  $

  	
  198,218,477

  	
   

  

 

I-1

 

Guaranteed
Generation

 

	
   

  	
   

  	
  Through and

  	
   

  	
   

  	
   

  
	
  From (MWH)

  	
   

  	
  Including(MWH)

  	
   

  	
  Prepayment Amount

  	
   

  
	
  4,199,545

  	
   

  	
  4,208,479

  	
   

  	
  $

  	
  197,798,522

  	
   

  
	
  4,190,610

  	
   

  	
  4,199,544

  	
   

  	
  $

  	
  197,378,568

  	
   

  
	
  4,181,675

  	
   

  	
  4,190,609

  	
   

  	
  $

  	
  196,958,614

  	
   

  
	
  4,172,739

  	
   

  	
  4,181,674

  	
   

  	
  $

  	
  196,538,659

  	
   

  
	
  4,163,804

  	
   

  	
  4,172,738

  	
   

  	
  $

  	
  196,118,705

  	
   

  
	
  4,154,869

  	
   

  	
  4,163,803

  	
   

  	
  $

  	
  195,698,750

  	
   

  
	
  4,145,934

  	
   

  	
  4,154,868

  	
   

  	
  $

  	
  195,278,796

  	
   

  
	
  4,136,999

  	
   

  	
  4,145,933

  	
   

  	
  $

  	
  194,858,842

  	
   

  
	
  4,128,063

  	
   

  	
  4,136,998

  	
   

  	
  $

  	
  194,438,887

  	
   

  
	
  4,119,128

  	
   

  	
  4,128,062

  	
   

  	
  $

  	
  194,018,933

  	
   

  
	
  4,110,193

  	
   

  	
  4,119,127

  	
   

  	
  $

  	
  193,598,978

  	
   

  
	
  4,101,258

  	
   

  	
  4,110,192

  	
   

  	
  $

  	
  193,179,024

  	
   

  
	
  4,092,323

  	
   

  	
  4,101,257

  	
   

  	
  $

  	
  192,759,070

  	
   

  
	
  4,083,387

  	
   

  	
  4,092,322

  	
   

  	
  $

  	
  192,339,115

  	
   

  
	
  4,074,452

  	
   

  	
  4,083,386

  	
   

  	
  $

  	
  191,919,161

  	
   

  
	
  4,065,517

  	
   

  	
  4,074,451

  	
   

  	
  $

  	
  191,499,206

  	
   

  
	
  4,056,582

  	
   

  	
  4,065,516

  	
   

  	
  $

  	
  191,079,252

  	
   

  
	
  4,047,647

  	
   

  	
  4,056,581

  	
   

  	
  $

  	
  190,659,298

  	
   

  
	
  4,038,711

  	
   

  	
  4,047,646

  	
   

  	
  $

  	
  190,239,343

  	
   

  
	
  4,029,776

  	
   

  	
  4,038,710

  	
   

  	
  $

  	
  189,819,389

  	
   

  
	
  4,020,841

  	
   

  	
  4,029,775

  	
   

  	
  $

  	
  189,399,434

  	
   

  
	
  4,011,906

  	
   

  	
  4,020,840

  	
   

  	
  $

  	
  188,979,480

  	
   

  
	
  4,002,971

  	
   

  	
  4,011,905

  	
   

  	
  $

  	
  188,559,526

  	
   

  
	
  3,994,035

  	
   

  	
  4,002,970

  	
   

  	
  $

  	
  188,139,571

  	
   

  
	
  3,985,100

  	
   

  	
  3,994,034

  	
   

  	
  $

  	
  187,719,617

  	
   

  
	
  3,976,165

  	
   

  	
  3,985,099

  	
   

  	
  $

  	
  187,299,662

  	
   

  
	
  3,967,230

  	
   

  	
  3,976,164

  	
   

  	
  $

  	
  186,879,708

  	
   

  
	
  3,958,295

  	
   

  	
  3,967,229

  	
   

  	
  $

  	
  186,459,754

  	
   

  
	
  3,949,359

  	
   

  	
  3,958,294

  	
   

  	
  $

  	
  186,039,799

  	
   

  
	
  3,940,424

  	
   

  	
  3,949,358

  	
   

  	
  $

  	
  185,619,845

  	
   

  
	
  3,931,489

  	
   

  	
  3,940,423

  	
   

  	
  $

  	
  185,199,890

  	
   

  
	
  3,922,554

  	
   

  	
  3,931,488

  	
   

  	
  $

  	
  184,779,936

  	
   

  
	
  3,913,619

  	
   

  	
  3,922,553

  	
   

  	
  $

  	
  184,359,982

  	
   

  
	
  3,904,683

  	
   

  	
  3,913,618

  	
   

  	
  $

  	
  183,940,027

  	
   

  
	
  3,895,748

  	
   

  	
  3,904,682

  	
   

  	
  $

  	
  183,520,073

  	
   

  
	
  3,886,813

  	
   

  	
  3,895,747

  	
   

  	
  $

  	
  183,100,118

  	
   

  
	
  3,877,878

  	
   

  	
  3,886,812

  	
   

  	
  $

  	
  182,680,164

  	
   

  
	
  3,868,943

  	
   

  	
  3,877,877

  	
   

  	
  $

  	
  182,260,210

  	
   

  
	
  3,860,007

  	
   

  	
  3,868,942

  	
   

  	
  $

  	
  181,840,255

  	
   

  
	
  3,851,072

  	
   

  	
  3,860,006

  	
   

  	
  $

  	
  181,420,301

  	
   

  

 

I-2

 

Guaranteed
Generation

 

	
   

  	
   

  	
  Through and

  	
   

  	
   

  	
   

  
	
  From (MWH)

  	
   

  	
  Including(MWH)

  	
   

  	
  Prepayment Amount

  	
   

  
	
  3,842,137

  	
   

  	
  3,851,071

  	
   

  	
  $

  	
  181,000,346

  	
   

  
	
  3,833,202

  	
   

  	
  3,842,136

  	
   

  	
  $

  	
  180,580,392

  	
   

  
	
  3,824,267

  	
   

  	
  3,833,201

  	
   

  	
  $

  	
  180,160,438

  	
   

  
	
  3,815,331

  	
   

  	
  3,824,266

  	
   

  	
  $

  	
  179,740,483

  	
   

  
	
  3,806,396

  	
   

  	
  3,815,330

  	
   

  	
  $

  	
  179,320,529

  	
   

  
	
  3,797,461

  	
   

  	
  3,806,395

  	
   

  	
  $

  	
  178,900,574

  	
   

  
	
  3,788,526

  	
   

  	
  3,797,460

  	
   

  	
  $

  	
  178,480,620

  	
   

  
	
  3,779,591

  	
   

  	
  3,788,525

  	
   

  	
  $

  	
  178,060,666

  	
   

  
	
  3,770,655

  	
   

  	
  3,779,590

  	
   

  	
  $

  	
  177,640,711

  	
   

  
	
  3,761,720

  	
   

  	
  3,770,654

  	
   

  	
  $

  	
  177,220,757

  	
   

  
	
  3,752,785

  	
   

  	
  3,761,719

  	
   

  	
  $

  	
  176,800,802

  	
   

  
	
  3,743,850

  	
   

  	
  3,752,784

  	
   

  	
  $

  	
  176,380,848

  	
   

  
	
  3,734,915

  	
   

  	
  3,743,849

  	
   

  	
  $

  	
  175,960,894

  	
   

  
	
  3,725,979

  	
   

  	
  3,734,914

  	
   

  	
  $

  	
  175,540,939

  	
   

  
	
  3,717,044

  	
   

  	
  3,725,978

  	
   

  	
  $

  	
  175,120,985

  	
   

  
	
  3,708,109

  	
   

  	
  3,717,043

  	
   

  	
  $

  	
  174,701,030

  	
   

  
	
  3,699,174

  	
   

  	
  3,708,108

  	
   

  	
  $

  	
  174,281,076

  	
   

  
	
  3,690,239

  	
   

  	
  3,699,173

  	
   

  	
  $

  	
  173,861,122

  	
   

  
	
  3,681,303

  	
   

  	
  3,690,238

  	
   

  	
  $

  	
  173,441,167

  	
   

  
	
  3,672,368

  	
   

  	
  3,681,302

  	
   

  	
  $

  	
  173,021,213

  	
   

  
	
  3,663,433

  	
   

  	
  3,672,367

  	
   

  	
  $

  	
  172,601,258

  	
   

  
	
  3,654,498

  	
   

  	
  3,663,432

  	
   

  	
  $

  	
  172,181,304

  	
   

  
	
  3,645,563

  	
   

  	
  3,654,497

  	
   

  	
  $

  	
  171,761,350

  	
   

  
	
  3,636,627

  	
   

  	
  3,645,562

  	
   

  	
  $

  	
  171,341,395

  	
   

  
	
  3,627,692

  	
   

  	
  3,636,626

  	
   

  	
  $

  	
  170,921,441

  	
   

  
	
  3,618,757

  	
   

  	
  3,627,691

  	
   

  	
  $

  	
  170,501,486

  	
   

  
	
  3,609,822

  	
   

  	
  3,618,756

  	
   

  	
  $

  	
  170,081,532

  	
   

  
	
  3,600,887

  	
   

  	
  3,609,821

  	
   

  	
  $

  	
  169,661,578

  	
   

  
	
  3,591,951

  	
   

  	
  3,600,886

  	
   

  	
  $

  	
  169,241,623

  	
   

  
	
  3,583,016

  	
   

  	
  3,591,950

  	
   

  	
  $

  	
  168,821,669

  	
   

  
	
  3,574,081

  	
   

  	
  3,583,015

  	
   

  	
  $

  	
  168,401,714

  	
   

  
	
  3,565,146

  	
   

  	
  3,574,080

  	
   

  	
  $

  	
  167,981,760

  	
   

  
	
  3,556,211

  	
   

  	
  3,565,145

  	
   

  	
  $

  	
  167,561,806

  	
   

  
	
  3,547,275

  	
   

  	
  3,556,210

  	
   

  	
  $

  	
  167,141,851

  	
   

  
	
  3,538,340

  	
   

  	
  3,547,274

  	
   

  	
  $

  	
  166,721,897

  	
   

  
	
  3,529,405

  	
   

  	
  3,538,339

  	
   

  	
  $

  	
  166,301,942

  	
   

  
	
  3,520,470

  	
   

  	
  3,529,404

  	
   

  	
  $

  	
  165,881,988

  	
   

  
	
  3,511,535

  	
   

  	
  3,520,469

  	
   

  	
  $

  	
  165,462,034

  	
   

  
	
  3,502,599

  	
   

  	
  3,511,534

  	
   

  	
  $

  	
  165,042,079

  	
   

  
	
  3,493,664

  	
   

  	
  3,502,598

  	
   

  	
  $

  	
  164,622,125

  	
   

  

 

I-3

 

Guaranteed
Generation

 

	
   

  	
   

  	
  Through and

  	
   

  	
   

  	
   

  
	
  From (MWH)

  	
   

  	
  Including(MWH)

  	
   

  	
  Prepayment Amount

  	
   

  
	
  3,484,729

  	
   

  	
  3,493,663

  	
   

  	
  $

  	
  164,202,170

  	
   

  
	
  3,475,794

  	
   

  	
  3,484,728

  	
   

  	
  $

  	
  163,782,216

  	
   

  
	
  3,466,859

  	
   

  	
  3,475,793

  	
   

  	
  $

  	
  163,362,262

  	
   

  
	
  3,457,923

  	
   

  	
  3,466,858

  	
   

  	
  $

  	
  162,942,307

  	
   

  
	
  3,448,988

  	
   

  	
  3,457,922

  	
   

  	
  $

  	
  162,522,353

  	
   

  
	
  3,440,053

  	
   

  	
  3,448,987

  	
   

  	
  $

  	
  162,102,398

  	
   

  
	
  3,431,118

  	
   

  	
  3,440,052

  	
   

  	
  $

  	
  161,682,444

  	
   

  
	
  3,422,183

  	
   

  	
  3,431,117

  	
   

  	
  $

  	
  161,262,490

  	
   

  
	
  3,413,247

  	
   

  	
  3,422,182

  	
   

  	
  $

  	
  160,842,535

  	
   

  
	
  3,404,312

  	
   

  	
  3,413,246

  	
   

  	
  $

  	
  160,422,581

  	
   

  
	
  3,395,377

  	
   

  	
  3,404,311

  	
   

  	
  $

  	
  160,002,626

  	
   

  
	
  3,386,442

  	
   

  	
  3,395,376

  	
   

  	
  $

  	
  159,582,672

  	
   

  
	
  3,377,507

  	
   

  	
  3,386,441

  	
   

  	
  $

  	
  159,162,718

  	
   

  
	
  3,368,571

  	
   

  	
  3,377,506

  	
   

  	
  $

  	
  158,742,763

  	
   

  
	
  3,359,636

  	
   

  	
  3,368,570

  	
   

  	
  $

  	
  158,322,809

  	
   

  
	
  3,350,701

  	
   

  	
  3,359,635

  	
   

  	
  $

  	
  157,902,854

  	
   

  
	
  3,341,766

  	
   

  	
  3,350,700

  	
   

  	
  $

  	
  157,482,900

  	
   

  
	
  3,332,831

  	
   

  	
  3,341,765

  	
   

  	
  $

  	
  157,062,946

  	
   

  
	
  3,323,895

  	
   

  	
  3,332,830

  	
   

  	
  $

  	
  156,642,991

  	
   

  
	
  3,314,960

  	
   

  	
  3,323,894

  	
   

  	
  $

  	
  156,223,037

  	
   

  
	
  3,306,025

  	
   

  	
  3,314,959

  	
   

  	
  $

  	
  155,803,082

  	
   

  
	
  3,297,090

  	
   

  	
  3,306,024

  	
   

  	
  $

  	
  155,383,128

  	
   

  
	
  3,288,155

  	
   

  	
  3,297,089

  	
   

  	
  $

  	
  154,963,174

  	
   

  
	
  3,279,219

  	
   

  	
  3,288,154

  	
   

  	
  $

  	
  154,543,219

  	
   

  
	
  3,270,284

  	
   

  	
  3,279,218

  	
   

  	
  $

  	
  154,123,265

  	
   

  
	
  3,261,349

  	
   

  	
  3,270,283

  	
   

  	
  $

  	
  153,703,310

  	
   

  
	
  3,252,414

  	
   

  	
  3,261,348

  	
   

  	
  $

  	
  153,283,356

  	
   

  
	
  3,243,479

  	
   

  	
  3,252,413

  	
   

  	
  $

  	
  152,863,402

  	
   

  
	
  3,234,543

  	
   

  	
  3,243,478

  	
   

  	
  $

  	
  152,443,447

  	
   

  
	
  3,225,608

  	
   

  	
  3,234,542

  	
   

  	
  $

  	
  152,023,493

  	
   

  
	
  3,216,673

  	
   

  	
  3,225,607

  	
   

  	
  $

  	
  151,603,538

  	
   

  
	
  3,207,738

  	
   

  	
  3,216,672

  	
   

  	
  $

  	
  151,183,584

  	
   

  
	
  3,198,803

  	
   

  	
  3,207,737

  	
   

  	
  $

  	
  150,763,630

  	
   

  
	
  3,189,867

  	
   

  	
  3,198,802

  	
   

  	
  $

  	
  150,343,675

  	
   

  
	
  3,180,932

  	
   

  	
  3,189,866

  	
   

  	
  $

  	
  149,923,721

  	
   

  
	
  3,171,997

  	
   

  	
  3,180,931

  	
   

  	
  $

  	
  149,503,766

  	
   

  
	
  3,163,062

  	
   

  	
  3,171,996

  	
   

  	
  $

  	
  149,083,812

  	
   

  
	
  3,154,127

  	
   

  	
  3,163,061

  	
   

  	
  $

  	
  148,663,858

  	
   

  
	
  3,145,191

  	
   

  	
  3,154,126

  	
   

  	
  $

  	
  148,243,903

  	
   

  
	
  3,136,256

  	
   

  	
  3,145,190

  	
   

  	
  $

  	
  147,823,949

  	
   

  

 

I-4

 

Guaranteed
Generation

 

	
   

  	
   

  	
  Through and

  	
   

  	
   

  	
   

  
	
  From (MWH)

  	
   

  	
  Including(MWH)

  	
   

  	
  Prepayment Amount

  	
   

  
	
  3,127,321

  	
   

  	
  3,136,255

  	
   

  	
  $

  	
  147,403,994

  	
   

  
	
  3,118,386

  	
   

  	
  3,127,320

  	
   

  	
  $

  	
  146,984,040

  	
   

  
	
  3,109,451

  	
   

  	
  3,118,385

  	
   

  	
  $

  	
  146,564,086

  	
   

  
	
  3,100,515

  	
   

  	
  3,109,450

  	
   

  	
  $

  	
  146,144,131

  	
   

  
	
  3,091,580

  	
   

  	
  3,100,514

  	
   

  	
  $

  	
  145,724,177

  	
   

  
	
  3,082,645

  	
   

  	
  3,091,579

  	
   

  	
  $

  	
  145,304,222

  	
   

  
	
  3,073,710

  	
   

  	
  3,082,644

  	
   

  	
  $

  	
  144,884,268

  	
   

  
	
  3,064,775

  	
   

  	
  3,073,709

  	
   

  	
  $

  	
  144,464,314

  	
   

  
	
  3,055,839

  	
   

  	
  3,064,774

  	
   

  	
  $

  	
  144,044,359

  	
   

  
	
  3,046,904

  	
   

  	
  3,055,838

  	
   

  	
  $

  	
  143,624,405

  	
   

  
	
  3,037,969

  	
   

  	
  3,046,903

  	
   

  	
  $

  	
  143,204,450

  	
   

  
	
  3,029,034

  	
   

  	
  3,037,968

  	
   

  	
  $

  	
  142,784,496

  	
   

  
	
  3,020,099

  	
   

  	
  3,029,033

  	
   

  	
  $

  	
  142,364,542

  	
   

  
	
  3,011,163

  	
   

  	
  3,020,098

  	
   

  	
  $

  	
  141,944,587

  	
   

  
	
  3,002,228

  	
   

  	
  3,011,162

  	
   

  	
  $

  	
  141,524,633

  	
   

  
	
  2,993,293

  	
   

  	
  3,002,227

  	
   

  	
  $

  	
  141,104,678

  	
   

  
	
  2,984,358

  	
   

  	
  2,993,292

  	
   

  	
  $

  	
  140,684,724

  	
   

  
	
  2,975,423

  	
   

  	
  2,984,357

  	
   

  	
  $

  	
  140,264,770

  	
   

  
	
  2,966,487

  	
   

  	
  2,975,422

  	
   

  	
  $

  	
  139,844,815

  	
   

  
	
  2,957,552

  	
   

  	
  2,966,486

  	
   

  	
  $

  	
  139,424,861

  	
   

  
	
  2,948,617

  	
   

  	
  2,957,551

  	
   

  	
  $

  	
  139,004,906

  	
   

  
	
  2,939,682

  	
   

  	
  2,948,616

  	
   

  	
  $

  	
  138,584,952

  	
   

  
	
  2,930,747

  	
   

  	
  2,939,681

  	
   

  	
  $

  	
  138,164,998

  	
   

  
	
  2,921,811

  	
   

  	
  2,930,746

  	
   

  	
  $

  	
  137,745,043

  	
   

  
	
  2,912,876

  	
   

  	
  2,921,810

  	
   

  	
  $

  	
  137,325,089

  	
   

  
	
  2,903,941

  	
   

  	
  2,912,875

  	
   

  	
  $

  	
  136,905,134

  	
   

  
	
  2,895,006

  	
   

  	
  2,903,940

  	
   

  	
  $

  	
  136,485,180

  	
   

  
	
  2,886,071

  	
   

  	
  2,895,005

  	
   

  	
  $

  	
  136,065,226

  	
   

  
	
  2,877,135

  	
   

  	
  2,886,070

  	
   

  	
  $

  	
  135,645,271

  	
   

  
	
  2,868,200

  	
   

  	
  2,877,134

  	
   

  	
  $

  	
  135,225,317

  	
   

  
	
  2,859,265

  	
   

  	
  2,868,199

  	
   

  	
  $

  	
  134,805,362

  	
   

  
	
   

  	
   

  	
  2,859,264

  	
   

  	
  $

  	
  134,385,408

  	
   

  

 

I-5

 

APPENDIX J

 

TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

AND

MILFORD WIND CORRIDOR PHASE II, LLC

 

QUALITY ASSURANCE PROGRAM

 

Seller shall implement a
Quality Assurance (“Q/A”) Program to ensure that the performance of the
development, design and construction of the Facility fulfills the requirements
of this Agreement. The Q/A Program shall provide assurance that design,
purchasing, manufacturing, shipping, storage, construction, testing and
examination of all equipment, materials, services and maintenance of the
Facility will comply with the requirements of this Agreement, all applicable
Requirements of Law and the manufacturers and/or suppliers requirements for
successful operation of the Facility.

 

Quality at
Seller

 

What is quality? Seller
believes that quality is the unit of measure for assessing fulfillment of
project goals.  A quality project meets
or exceeds the contract requirements and accepted standards of professional and
industry practice. Furthermore, high quality projects are those that address
client and societal needs more successfully than “low” quality projects. While
this may seem like a straightforward definition, the process to ensure quality
is much more involved and includes quality management, quality planning,
quality control, quality assurance, a quality system, and total quality
management.

 

“Quality assurance” refers
to a process that reduces the potential for error throughout the phases of a
project.  On projects with a Q/A Program,
the chances of producing a poor quality deliverable are substantially reduced.
Quality control procedures are an integral part of quality assurance.  Historically, industry has used the term “quality
control” to indicate a checking procedure for verifying the quality of
deliverables. This checking commonly occurs at the end of the process, long
after an error may have been made and compounded by subsequent work. While
quality control checks at the end of a project are an essential exercise,
scheduled periodic reviews at each phase of project conceptual and final design
are integral to Seller’s Q/A Program.  In
addition, quality maintenance which meet or exceed manufacturers’ and/or
suppliers’ requirements and best industry practices must be an integral part of
Seller’s Q/A Program.

 

The Quality
Management Process

 

The surest way to achieve
satisfactory quality is to adhere to a proven quality process. The term “quality”
most accurately refers to a project’s ability to satisfy needs when considered
as a whole and each part of the process meets or exceeds the standards of
Prudent Utility Practices.

 

J-1

 

Seller project management
team is responsible for proactively planning and directing the quality of the
work process, services, and deliverables. Seller’s project management team will
target six (6) areas to monitor quality:

 

1)            A written work plan with
accompanying Q/A Manual (as defined below).

 

2)            Detailed review of the
project design at the planning and conceptual design phase.

 

3)            Detailed review of project
final design prior to construction.

 

4)            A quality control program
during construction to verify implementation is in compliance with design documents
and document any changes.

 

5)            Independent engineering
review of the entire project process, from design review through commercial
operation.

 

6)            A written maintenance manual
for the Facility for the duration of the commercial operation that complies
with the maintenance manuals of the manufacturers and suppliers from whom the
Seller has purchased equipment and/or material and best industry practices.

 

Written
Work Plan and Q/A Manual

 

The idea of a written work
plan and Q/A manual is to incorporate quality assurance in all areas of project
execution. Seller has found that quality needs to be institutionalized into the
project process, not only in the budgeting process, but everywhere.  For example, specific tasks and duties need
to be allocated to specific individuals; roles and interface points need to be
clearly defined; individual assignments need to be realistic; special attention
needs to be paid to complex areas within projects; schedules need to be
realistic and achievable; and, lastly, the work culture needs to be enjoyable
and open so that employees are empowered to react quickly to symptoms of
quality problems before they actually manifest.

 

Seller’s quality program
shall be documented in a written work plan and Quality Assurance manual (the “Q/A
Manual”). The form and the format of the Q/A Manual shall be developed by
Seller, but must comply with Prudent Utility Practices and follow manufacturers
and suppliers recommendations without deviation.  The content of the Q/A Manual shall provide
written descriptions of policies, procedures and methodology to accomplish a
quality project.  Seller shall submit
three (3) copies of the Q/A Manual within ninety (90) days after the
Effective Date to Buyer or Buyer’s Agent. The Q/A Manual shall be kept current
by Seller throughout the term of this Agreement through the submittal of
revisions, as appropriate, by Seller to Buyer or Buyer’s Agent.

 

The Q/A Manual shall
describe the authority and the responsibility of the Persons in charge of the
Q/A Program and inspection activities. It shall also provide the plan for
detailed review of project conceptual design and final design, hold points, and
methodology for document control and comment. Furthermore, it shall provide the
plan and strategy for quality control and review during the construction of the
project and for maintenance and operations during commercial

 

J-2

 

operation. The Q/A Manual
shall strive; at a minimum, to define control procedures or methods to assure
the following:

 

(a)           The design
documents, drawings, specifications, Q/A procedures, records, inspection
procedures and purchase documents are maintained to be current, accurate and in
compliance with all applicable law.

 

(b)           The purchased
materials, equipment and services comply with the requirements of this
Agreement and all applicable Requirements of Law.

 

(c)           The materials
received at the site are inspected for compliance with specifications.

 

(d)           The
subcontracted work is adequately inspected by third parties.

 

(e)           Proper methods
are employed for the qualification of personnel who are performing work for the
development, design and construction of the Facility.

 

(f)            Proper
documentation, control and disposition of nonconforming equipment and materials
is maintained.

 

(g)           Proper records
are kept and available following project completion to ensure accurate
documentation of as-built conditions.

 

(h)           Detailed and
complete plan for maintenance and operation during commercial operations
consistent with manufacturers and suppliers recommendations and best industry
practices.

 

Conceptual
Design Review

 

Seller shall have a team of
professionals who develop and review the project layout and project conceptual
design.  The team shall consist of
specialists in land-use and planning, permitting, meteorology, engineering,
construction, project management, and finance. 
A preliminary site plan is developed and meetings are held to assess
optimization of the resource, constructability, minimization of cultural and biological
impacts, land use restrictions, and landowner requirements. Preliminary road
design will also be started and access to the site will be reviewed in detail.
When this plan is ready for review, a formal plan and map shall be created and
a final internal review is conducted. Following that shall be detailed studies
for biological, cultural and other types of impacts by third parties. The site
plan will be reviewed, modified as necessary, and then used to begin the
permitting and public review process. The site plan shall be further modified
based on comments in that process.  At
that point, the site plan can be issued for construction, and final engineering
can commence.

 

In parallel with this
process, preliminary conceptual design will start for the major areas of the
project, including the substation, transmission line, foundations, underground
collection system, and communications system; and road and grading done to
develop construction estimates as well as materials specifications. All of
these areas of conceptual designs shall be used to check and verify the
assumptions used for development of the site plan.

 

J-3

 

Final
Engineering Design

 

Following finalization of
the site plan, the detailed design will be done for the collection system,
fiber-optic network, foundations, roads and grading, transmission line, and
substation by third party engineering firms licensed to practice in the state
in which the project is to be constructed. Each firm shall have its own quality
assurance and checking procedures, however, Seller shall review the final work
products in detail to check with conformance with this Agreement and provide
comments as a second round of quality assurance. When Seller’s comments have
been incorporated, the design of each area will be considered final, and that
design will then be submitted to an independent engineer for review and
comment. This ensures that another entity, in addition to Seller, has done a
comprehensive review of all project areas and details to ensure conformance
with this Agreement.

 

In parallel with final
design and checking activities, final geotechnical studies will be conducted at
the site, and a final resource assessment will be performed with the
issued-for-construction project layout. 
If existing subsurface conditions are different from what is expected,
the foundation locations could be slightly modified or the foundation design on
a specific turbine could be modified. Any changes of this nature would be
documented in as-built design drawings and approved of in advance by Seller.

 

Quality
Assurance at the Construction Site

 

Seller will hire a third
party general contractor to construct the project. This contractor will be
required to have its own quality assurance program in place using its own
staff, as well as third party inspectors. The two primary areas of focus at the
site will be (1) assuring conformance of construction to design drawings,
and (2) conformance of materials to specifications. The general contractor
will be required to provide third party inspectors and testing for materials
including concrete slump testing, rebar and concrete placement, cable
trenching, soil compaction testing, etc. The general contractor will also
be required to maintain a set of red-line drawings during the course of
construction to document any changes to the design documents.  Proposed project changes would be reviewed
and approved in the field by Seller construction management team prior to
implementation.

 

Quality assurance of turbine
erection shall be achieved through a combination of procedures and processes.
The general contractor will provide rigorous inspection of its installation
crew. The turbine supplier will have technical advisors on site to inspect and
sign off on turbine components received, oversee and monitor turbine erection,
and approve mechanical completion. In addition, Seller will have its own
construction management team on site, consisting of a construction manager and
quality inspectors who will observe performance of all areas of the work and
ensure compliance with design documents. A team consisting of the turbine
supplier, Seller, and the general contractor will walk down each turbine at
mechanical completion to develop a comprehensive punchlist of any un-finished
or incorrect work.  This punchlist is
maintained by the contractor, and is signed off by Seller upon completion of
the punchlist items. Lastly, the independent engineer shall perform periodic
audits during construction to oversee critical items, spot check individual
turbines, confirm construction progress, report on any perceived issues, and
provide independent reporting and assessments to the project stakeholders.

 

J-4

 

Following completion of the project,
the general contractor will be required to provide as-built all design drawings
and records of all materials testing conducted at the site. This documentation
will be maintained at the project site during operation of the Facility.

 

Quality
Assurance During Commercial Operation

 

Seller shall supply a
Quality Assurance Plan for Buyer’s review and approval, such approval not to be
unreasonably withheld, no less than sixty (60) days prior to the anticipated
Commercial Operation Date.

 

J-5

 

APPENDIX K

 

TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

AND

MILFORD WIND CORRIDOR PHASE II, LLC

 

PERMITS

 

	
   

  	
  Federal

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  FAA Determination of No
  Hazard to Air Navigation

  	
   

  
	
   

  	
  BLM FONSI &
  Decision Record — EA-UT-0400-8035

  	
   

  
	
   

  	
  BLM Right-of-Way for the
  Phase II facilities located on BLM land. Note subject to 30-day appeal
  period.

  	
   

  
	
   

  	
  BLM Right-of-Way for the
  Transmission Line

  	
   

  
	
   

  	
  BLM Notice to Proceed
  (General)

  	
   

  
	
   

  	
  BLM Notice to Proceed (Cultural
  Resource Sites)

  	
   

  
	
   

  	
  BLM approval of assignment
  by MWC Phase I to MWC Phase II of undivided interest in BLM Right of Way for
  the Transmission Line. Note subject to 30-day appeal period

  	
   

  
	
   

  	
  ACOE Nationwide Permit 12:
  Utility Line Activities

  	
   

  
	
   

  	
  ACOE Nationwide Permit 14:
  Linear Transportation Crossings

  	
   

  
	
   

  	
  BATFE, ATF Explosives
  Permit if needed during construction

  	
   

  
	
   

  	
  State and
  Local

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  UPDES Storm Water Permit
  UTR302754 (Coverage under Storm Water General Construction Permit
  No. UTR300000)

  	
   

  
	
   

  	
  Millard Co. Conditional
  Use Permit - CUP #Z-2008-012

  	
   

  
	
   

  	
  UDAQ, Batch Plant and
  Temporary Relocation Permit DAQC-368-09; Site ID: 12575(B)

  	
   

  

 

K-1

 

	
   

  	
   

  	
   

  
	
   

  	
  Millard Co. Building
  Permit

  	
   

  
	
   

  	
  Utah DWR, Approval of
  Temporary Change of Use of Water Right

  	
   

  
	
   

  	
  SITLA cultural resource
  clearance and consent to POD amendment

  	
   

  
	
   

  	
  Beaver Co. Conditional Use
  Permit No. 2006-09 Amended

  	
   

  
	
   

  	
  Beaver Co. Building Permit

  	
   

  

 

K-2

 

APPENDIX L

 

TO THE

POWER PURCHASE AGREEMENT 

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

AND

MILFORD WIND CORRIDOR PHASE II, LLC

 

CLOSING CONDITIONS FOR PURCHASE OF FACILITY

 

The closing for the purchase
and sale (the “Closing”)
of the Facility and Related Interests and Rights shall take place at the
offices of Southern California Public Power Authority, 225 South Lake Ave,
Pasadena, CA 91101 on the third Business Day after the conditions to Closing
have been satisfied or waived, or at such place as Buyer and Seller mutually
agree in writing (“Closing
Date”).  The Closing shall
be deemed effective as of 11:59 p.m. (Pacific Prevailing Time) on the date
of the Closing. The obligation of Buyer to purchase the Facility and Related
Interests and Rights shall be subject to the following terms and conditions:

 

1.             Representations and
Warranties.  Seller
shall provide representations and warranties customary for transactions
involving the purchase and sale of wind generating facilities, including,
without limitation, those identified on Appendix L-1.

 

2.             Adjustments. All items
relating to the ownership and operation of the Facility and Related Interests
and Rights, which are customarily prorated, including without limitation Taxes,
insurance premiums, permit fees, utilities, and rentals or other payments under
leases and property agreements, shall be prorated as of the date of the
Closing, with Seller being liable therefor to the extent such items relate to
any time period prior to the Closing Date and Buyer being liable therefor to
the extent that Buyer is not exempt therefrom and such items related to period
on or after the Closing Date with, to the extent practicable, a cash settlement
on the Closing Date.  Any unknown or
disputed adjustments will not delay the Closing, but will be estimated and
escrowed for post-Closing resolution.

 

3.             Assumed Liabilities.  At the Closing, Buyer shall assume, and agree
to pay, perform, fulfill and discharge, all obligations of Seller and the
contracts required for the ownership and operation of the Facility and Related
Interests and Rights and to be assumed by Buyer, as determined by Buyer in its
sole discretion (the “Assumed
Contracts”) and the Permits required for the ownership,
operation and maintenance of the Facility and Related Interests and Rights (the
“Transferred Permits”)
but only to the extent such obligations (i) arise after the Closing, (ii) do
not arise from or relate to any breach by Seller of any provision of any of
such Assumed Contracts or Transferred Permits, (iii) do not arise from or
relate to any event, circumstance or condition occurring or existing prior to
the Closing that, with notice or lapse of time, could constitute or result in a
breach of any of such Assumed Contracts or Transferred Permits, and (iv) are
ascertainable, in nature and amount, solely by reference to the express

 

L-1

 

written terms of such
Assumed Contracts or Transferred Permits. The Obligations of Seller to be so
assumed by Buyer are herein referred to as the “Assumed Liabilities.”

 

4.             Excluded Liabilities.  Anything in this Agreement to the contrary notwithstanding,
Buyer shall not assume, and shall not be deemed to have assumed, any liability
or obligation of any nature, fixed or contingent or known or unknown, of Seller
whatsoever other than as specifically set forth in this Paragraph 4 (with all
such unassumed obligations referred to in this Agreement as the “Excluded Liabilities”).  Without limiting the generality of the
preceding sentence, it is agreed that Buyer shall have no liability with
respect to any of the following liabilities or obligations (whether asserted
before or after the Closing and regardless of whether the same or the basis
therefor may have been disclosed to Buyer by Seller or otherwise be known to
Buyer), all of which are included in the Excluded Liabilities:

 

(a)           Any liability or obligation
of Seller in respect of Taxes;

 

(b)           Any liability or obligation
of Seller, other than the Assumed Liabilities, arising out of Seller’s
ownership and operation of the Purchased Assets (as defined below) or the
Facility and Related Interests and Rights prior to the Closing;

 

(c)           Any liability or obligation
of Seller arising out of Seller’s ownership and operation of any assets other
than the Purchased Assets (as defined below) or the Facility and Related
Interests and Rights;

 

(d)           Any liability or obligation
of Seller under this Agreement;

 

(e)           Any liability or obligation
of Seller under any Assumed Contract or Transferred Permit other than as expressly
set forth in Paragraph 3;

 

(f)            Any liability or obligation
of Seller with respect to the employment or termination of any employee or
group of employees by Seller, or the terms thereof, whether union or nonunion,
whether the liability or obligation calls for performance or observance before
or after the Closing and whether the liability or obligation arises from a
collective bargaining agreement, pension trust fund plan or other agreement or
arrangement to which Seller is a party or by which the Seller is bound (whether
oral or written and whether express or implied in fact or in law) or any past
practice or custom or otherwise, it being understood and agreed that Buyer will
itself be specifying the terms on which it offers employment to any individual
to whom it, in its sole discretion, chooses to offer employment and will not be
bound by any term of employment in effect at or at any time prior to the
Closing;

 

(g)           Any liability or obligation
of Seller for pension fund payments or unfunded pension fund liabilities; and

 

(h)           Any liability or obligation
arising from or related to any asset that will not be purchased by Buyer, as
determined by Buyer in its sole discretion (collectively, the “Excluded Assets”).

 

L-2

 

5.             Conditions to Closing.  The obligation of Buyer to Close will be
subject to satisfaction of the following conditions:

 

(a)           Default. Seller shall
not be in Default under the Agreement.

 

(b)           Resolutions;
Incumbency Certificates. Buyer shall have received copies of all
requisite resolutions and incumbency certificates of Seller and any other
documents evidencing all actions taken by Seller to authorize the consummation
of the transactions contemplated by the Closing, such resolutions to be
certified as of the Closing Date by an Authorized Representative of Seller..

 

(c)           Consents.  Each approval, consent, ratification, waiver,
license, permit, certification, registration or other authorization (including
any governmental approval by a Governmental Authority) (“Consent”) as
identified in Schedule
     must
have been obtained and must be in full force and effect.

 

(d)           Deliveries. Each of the
following documents must have been delivered to Buyer:

 

(i)        an opinion of Seller’s
Counsel dated the Closing Date, substantially in the form of Exhibit     ;

 

(ii)           Seller shall have delivered
to Buyer in writing, at and as of the Closing, a certificate, in form and
substance satisfactory to Buyer, executed by an officer of Seller certifying
that each of the conditions specified in this Paragraph 5 have been satisfied;

 

(iii)          a Bill of Sale, dated the
Closing Date, substantially in the form of Exhibit     ;

 

(iv)          transfer documents for the
Facility Premises, dated the Closing Date, substantially in the form of Exhibit     ;

 

(v)           an Assignment and Assumption
Agreement, dated the Closing Date, substantially in the form of Exhibit     ;

 

(vi)          a title insurance policy is
in form and substance and containing such requirements, modifications and
endorsements as Buyer may reasonably approve; and

 

(vii)         such other documents as
Buyer may reasonably request for the purpose of (i) evidencing the
accuracy of any of Seller’s representations and warranties, (ii) evidencing
the performance by Seller of, or the compliance by Seller with, any covenant or
obligation required to be performed or complied with by Seller, or (iii) evidencing
the satisfaction of any condition referred to in this Paragraph 5.

 

(e)           Litigation.  No action, order, writ, judgment or decree
outstanding, arbitration, audit, hearing, investigation, claim, litigation, or
suit (whether civil, criminal, regulatory, administrative, investigative, or
informal) commenced, brought, conducted, or heard

 

L-3

 

by or before, or otherwise
involving, any Person (“Proceeding”)
shall have been instituted by any Governmental Authority or by any other Person
and, at what would otherwise have been the Closing Date, remain pending to
delay, restrain or prohibit any part of the transactions contemplated by this
Agreement or to seek any divestiture or to revoke or suspend any Permit by
reason of any or all of the transactions contemplated by this Agreement; nor
shall any Governmental Authority have notified either Party or any of their
respective Affiliates that consummation of any part of the transactions
contemplated by this Agreement would constitute a violation of any Requirements
of Law of any jurisdiction or that it intends to commence a Proceeding to
restrain or prohibit any part of the transactions contemplated by this
Agreement or to require such divestiture, revocation or suspension; unless, in
any such case, such Governmental Authority or other Person shall have withdrawn
such notice and abandoned such Proceeding to the satisfaction of Buyer.

 

(f)            Assets and
Property.  From the
date hereof to the Closing Date, there must not have been damage to or
destruction or loss of the machinery or equipment in the Facility or the
Purchased Assets (as defined below), whether or not covered by insurance, or
any taking which could reasonably be expected to materially and adversely
affect the operation and use of the Facility or the Purchased Assets as of the
Closing Date.

 

(g)           No Material
Adverse Effect.  Buyer shall
have confirmed, in its reasonable determination, that since the date hereof,
that no facts or circumstances exist that do or could reasonably be expected to
have, and no action shall have been taken or omitted and no event shall have
occurred or be threatened which has had or could reasonably be expected to
result in, a Material Adverse Effect.

 

(h)           Title. Title to the
Facility and Related Interests and Rights shall be good and marketable, subject
only to Permitted Encumbrances.

 

(i)            Permits. Buyer shall
have obtained or Seller shall have validly assigned to Buyer at Closing, all
Permits necessary or desirable for Buyer’s ownership and operation of the
Facility.

 

(j)            All amounts owed by Seller
to Buyer under the Agreement, including if any Shortfall Energy or Replacement
Energy has not been made up by Seller as of the closing date, an amount equal
to the product of (x) the amount of such Shortfall Energy (measured in
MWh), or the amount of such Replacement Energy (measured in MWh), as the case
may be, multiplied by (y) the Prepaid Energy Price; and (iii) any
amounts owed to Buyer under Section 10.3 for Replacement Energy purchased
by Buyer in accordance with Section 10.3, or if Buyer has not purchased
such Replacement Energy in accordance with Section 10.3, such Replacement
Energy (measured in MWh) multiplied by the Prepaid Energy Price.

 

6.             Actions at Closing.  Buyer shall release and return to Seller the
Performance Security provided under the Agreement, and Seller shall transfer
the Facility and Related Interests and Rights to Buyer free and clear of all
liens and encumbrances, other than Permitted Encumbrances. Seller shall assign
and transfer to Buyer all of its right, title and interest in the “Purchased Assets,”
which means the following:

 

L-4

 

(a)           all Assumed Contracts;

 

(b)           all fixtures, equipment
(including turbines, control rooms and other auxiliaries, furniture, office
equipment, communications equipment, fixtures, furnishings, machinery,
vehicles, equipment, computers, air conditioning ventilation and heating
equipment and control stations) and other tangible personal property owned or
used by Seller in connection with the operation of the Facility and listed on Exhibit     
(the “Fixtures and
Equipment”);

 

(c)           the Facility Premises;

 

(d)           to the extent relating to
periods of time prior to the Closing, (i) all books, records, purchasing
records, lists, files and papers in the possession of Seller or its agents
pertaining to the Purchased Assets and the Facility, and all records and lists
concerning suppliers to and personnel of the Facility, (ii) all ledgers,
and reports, plans, drawings, maps, photographs, technical manuals and
operating records of every kind maintained by Seller with respect to the
Facility, whether in hard copy or computer format, and (iii) all software
used by Seller primarily in connection with the operation of the Facility, to
the extent transferable (the “Books and Records”);

 

(e)           all Transferred Permits;

 

(f)            all patents, patent
applications, inventions, improvements, computer programs, computer
applications, operating programs, other programs and software, including
without limitation, system documentation and instructions, engineering,
construction and other drawings (other than drawings not needed for the
operation, maintenance or repair of the Facility), designs, technology,
know-how, trade secrets, trademarks, trademark applications, trade names,
copyrights and other proprietary rights and proprietary information (to the
extent any of the foregoing are used at the Facility) (the “Intellectual Property Assets”);

 

(g)           the supplies, inventories
and spare parts used or held for use by Seller in connection with the operation
of the Facility (the “Supplies”);

 

(h)           all Facility Transmission
Line Interests;

 

(i)            all rights of Seller under
or pursuant to all warranties, representations and guarantees made by
manufacturers and suppliers in connection with the Purchased Assets or services
furnished to Seller pertaining to the Facility or affecting the Purchased
Assets, as more particularly described on Schedule        (the
“Warranties”);

 

(j)            all common or joint
ownership, construction and operating agreements entered into by Seller with
respect to the Facility and Related Interests and Rights, and

 

(k)           all other agreements for third-party
operation of the Facility and Related Interests and Rights or any portion
thereof or of any capacity or capability of the Facility Transmission Line
Interests, all of which shall be assignable and transferable to Buyer in
accordance with the terms thereof.

 

L-5

 

7.             Further Assurances. At any time
or from time to time after the Closing, at either Party’s request and without
further consideration, the other Party shall execute and deliver to the requesting
Party such other instruments of sale, transfer, conveyance, assignment and
confirmation, provide such materials and information and take such other
actions as the requesting Party may reasonably deem necessary or desirable in
order to more effectively (i) transfer, convey and assign to Buyer, and
confirm Buyer’s title to, all of the transferred assets, free and clear of all
liens other than Permitted Encumbrances; (ii) to the full extent permitted
by law, put Buyer in actual possession of the transferred assets and assist
Buyer in exercising all rights with respect to such transferred assets; (iii) include
within the transferred assets, and transfer, convey and assign to Buyer, free
and clear of all liens other than Permitted Encumbrances, any assets that are
held or owned by Seller but that have not been expressly identified in
paragraph (4) of this Appendix L and that Buyer has requested be
transferred to it; and (iv) otherwise to consummate the transactions
contemplated by this Agreement.

 

L-6

 

APPENDIX L-1

 

TO THE

POWER PURCHASE AGREEMENT 

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

AND

MILFORD WIND CORRIDOR PHASE II, LLC

 

REPRESENTATIONS AND WARRANTIES

 

Seller represents and
warrants to Buyer as follows:

 

1.     Organization
and Good Standing.  Seller is a
corporation or limited liability company duly organized, validly existing and
in good standing under the laws of its state of incorporation or organization,
is qualified to do business in the State of California and the state where
Facility is located, if different, and has the legal power and authority to own
its properties, to carry on its business as now being conducted and to enter
into and perform its obligations under the Agreement and each agreement between
the Parties (the “Operative
Documents”).

 

2.     Authority;
Absence of Conflict or Breach.  The execution, delivery and performance by
Seller of its obligations under each of the Operative Documents have been duly
authorized by all necessary action on the part of Seller and the owners of any
interest in Seller, and do not and will not require any consent or approval
other than those which have already been obtained. Each of the Operative
Documents constitutes the legal, valid and binding obligation of Seller,
enforceable in accordance with its terms, except as such enforceability may be
limited by bankruptcy, insolvency, reorganization or similar laws relating to
or affecting the enforcement of creditors’ rights generally or by general
equitable principles, regardless of whether such enforceability is considered
in a proceeding in equity or at law. The execution and delivery of the
Operative Documents, the consummation of the transactions contemplated thereby
and the fulfillment of and compliance with the provisions of the Operative
Documents, do not and will not conflict with or constitute a breach of or a
default under, any of the terms, conditions or provisions of any Requirements
of Law, or any organizational documents, agreement, deed of trust, mortgage,
loan agreement, other evidence of indebtedness or any other agreement or
instrument to which Seller is a party or by which it or any of its property is
bound, or result in a breach of or a default under any of the foregoing or
result in or require the creation or imposition of any Lien upon any of the
properties or assets of Seller (except as contemplated hereby), and Seller has
obtained or shall timely obtain all permits, licenses, approvals and consents
of Governmental Authorities required for the performance of its obligations
thereunder and operation of the Facility in accordance with the requirements of
the Operative Documents and all applicable Requirements of Law.

 

3.     Purchased
Assets.  Schedule        (with
respect to the Assumed Contracts), Schedule       
(with respect to the Fixtures and Equipment), Schedule        (with
respect to the Facility Premises), Schedule       
(with respect to the Books and Records), Schedule       
(with

 

L-1-1

 

respect to the Transferred
Permits), Schedule       
(with respect to the Intellectual Property Assets), Schedule       
(with respect to the Supplies), Schedule       
(with respect to Facility Transmission Line Interests), Schedule       
(with respect to the Warranties), Schedule        (with
respect to the common or joint ownership, construction and operating
agreements); and Schedule
       (with respect to other
agreements for third-party operation of the Facility and Related Interests and
Rights or any portion thereof or of any capacity or capability of the Facility
Transmission Line Interests) contain a true and complete listing of the
Purchased Assets. The Fixtures and Equipment are in good repair and operating
condition, ordinary wear and tear excepted, and are suitable for continued use
in the ordinary course of the Facility and Related Interests and Rights.

 

4.               Title to
Purchased Assets. Prior to the Closing, Seller has good and
marketable title to the Purchased Assets, free and clear of all Liens except
for Permitted Encumbrances. At the Closing, Buyer will acquire good and
marketable title to the Purchased Assets free and clear of all Liens, except
for Permitted Encumbrances solely of the type described in clause (iv) of the
definition thereof.

 

5.               Assets of
the Business.  The
Purchased Assets constitute all of the assets, properties, rights, privileges,
claims and contracts of every kind and nature, real or personal, tangible or
intangible, absolute or contingent, wherever located, owned or used (including
those necessary to access and utilize any common use facilities), necessary to
operate the Facility and to sell and deliver Energy generated by the Facility
in substantially the same manner as it has historically been operated.

 

6.               Environmental.

 

(a)                                     Except as set
forth in Schedule        , there are no
pending or outstanding notices of violation, complaints, orders, consent
orders, consent agreements, assessments of a fine or penalty or other similar
demands for action brought by a Governmental Authority having the requisite
authority and jurisdiction to bring such action (“Agency Actions”) concerning the Facility
or the Facility Premises with respect to any current or future treaty,
constitution, law, statute, ordinance, rule, order, decree, regulation or other
directive which is legally binding and has been enacted, issued or promulgated
by any Governmental Authority that imposes liability for or standards of
conduct or compliance or other requirements or obligations concerning
protection of health, or safety (in each case, to the extent relating to
exposure to Hazardous Substances), natural resources or the environment and
includes all Hazardous Substances Law (as defined below) (collectively, “Environmental Laws”)
applicable to Seller, the Facility or the Facility Premises, and Seller’s
operation and use of the Facility and the Facility Premises have at all times
been in compliance with all Environmental Laws. 
There are no writs, injunctions, decrees, orders or judgments
outstanding, or any notices, actions, suits, Proceedings or investigations
pending or threatened involving Seller relating to (i) its compliance with any
Environmental Laws with respect to any of the Purchased Assets or the Facility
Premises, or (ii) the release, spill, emission, leaking, pumping, injection,
deposit, disposal, discharge, dispersal, dumping, leaching or migration of
Hazardous Substances in the indoor or outdoor environment, including the
movement of Hazardous Substances through or in the air, soil, surface water,
ground water or property (“Release”)
of any substance, material or waste that is regulated by or

 

L-1-2

 

forms the basis of liability
now or hereafter under, any current or future treaty, constitution, law,
statute, ordinance, rule, order, decree, regulation or other directive which is
legally binding and has been enacted, issued or promulgated by any Governmental
Authority that imposes liability for or standards of conduct or compliance
concerning the generation, distribution, use, treatment, storage, disposal,
cleanup, transport or handling of Hazardous Substances, including, the Federal
Water Pollution Control Act, the Resource Conservation and Recovery Act of
1976, CERCLA, the Toxic Substances Control Act, the Oil Pollution Act, the Safe
Drinking Water Act, and includes the Occupational Safety and Health Act of
1970, to the extent that it relates to the handling of and exposure to
hazardous or toxic materials or similar substances (collectively, “Hazardous Substances Law”),
including any material, substance or waste that is (1) defined as a “solid
waste,” “hazardous waste,” “hazardous material,” “hazardous substance,” “extremely
hazardous waste,” “restricted hazardous waste,” “pollutant,” “contaminant,” “hazardous
constituent,” “special waste,” “toxic substance” or other similar term or
phrase under any Environmental Law, (2) petroleum or any fraction or by-product
thereof, asbestos, polychlorinated biphenyls (PCB’s), or any radioactive
substance (collectively, “Hazardous
Substances”) at the Facility Premises.

 

(b)                                 All Permits
required by Environmental Laws and necessary for the operation of the Facility
as configured and as operated by Seller, have been obtained, are currently in
effect, and are set forth in Schedule       ; Seller’s
operations at the Facility Premises and in connection with the Purchased Assets
are in compliance with all the requirements of such Permits; and there is no
circumstance or condition that would preclude continued operation of the
Purchased Assets, including the Facility Premises, by Buyer under any of these
Permits.

 

(c)                                  Schedule        
sets forth all Agency Actions relating to Environmental Laws and
involving Seller’s operation and use of the Facility.  Schedule          
sets forth all information, reports, notices or inquiries from
any Governmental Authority received by Seller relating to the presence of
Hazardous Substances which have been released into the Environment or the
presence of Hazardous Substances which pose a threat of release of Hazardous
Substances into the Environment (“Environmental Conditions”) at, upon or
beneath the Facility or the Facility Premises regardless of whether such
Environmental Conditions were caused by or arose from Seller’s operation of the
Facility.

 

(d)                                 The Purchased
Assets and Seller each are in compliance with all applicable Environmental
Laws. There are no circumstances, conditions or proposed regulations which
could reasonably be expected to prevent or substantially interfere with Buyer’s
compliance with Environmental Laws in connection with Buyer’s operation of the
Facility in the foreseeable future in a manner consistent with Seller’s
operation of the Facility during the term of the Agreement.

 

(e)                                  Hazardous
Substances have not been generated, used, treated or stored on, or transported
to or from, any of the Facility Premises in violation of applicable
Environmental Laws.

 

(f)                                    There is no
asbestos contained in or forming any part of any building, building component,
structure or other asset that is part of the Purchased Assets, and no asbestos

 

L-1-3

 

is or has been stored,
disposed of or otherwise been present at the Facility Premises or on or in any
of the Purchased Assets and Seller does not have any liability for asbestos in
connection with the use, operation, renovation or demolition of any of the
Purchased Assets.

 

(g)                                 There has been
no Release or threatened Release of Hazardous Substances at, on, under or from
any of the Facility Premises or at, on, under or from any property adjoining
any of the Facility Premises.

 

(h)                                 In connection
with its ownership and operation of the Purchased Assets, Seller has disposed
of all wastes, including those containing any Hazardous Substances, in compliance
with all applicable Environmental Laws, and Seller has not received any notice
or claim of liability for any on- or off-site Release or threatened Release of
Hazardous Substances.

 

(i)                                     There are not
now, and never have been, any above-ground or underground storage tanks or
PCB-containing transformers or equipment located at the Facility Premises.

 

(j)                                     Seller has
provided Buyer with all reports, surveys, studies, correspondence,
investigations, tests and environmental sampling and analyses (whether commissioned
by Seller or otherwise) relating in any way to the environmental condition of
any of the Purchased Assets or Seller’s compliance with applicable
Environmental Laws in the operation of the Facility, the use of the Purchased
Assets or otherwise.

 

(k)                                  Seller has not
received any written request for information nor any written notification that
it is a potentially responsible party under the federal Comprehensive
Environmental Response, Compensation and Liability Act (“CERCLA”) or any
similar state law, including any such request or notification relating directly
or indirectly to any of the Purchased Assets and none of the Facility Premises
is proposed to be listed or is listed on the National Priorities List under
CERCLA or any similar state law requiring environmental investigation or
cleanup.

 

7.               No
Undisclosed Liabilities. 
Seller has no liabilities (absolute, accrued, contingent or otherwise),
except for (i) those set forth Seller’s “Financial Statements” (the unaudited
statements of income, cash flow and changes in shareholder/member equity for
such month and for the period from the beginning the then current fiscal year
of Seller to the end of such month, and a balance sheet of Seller as at the end
of such month, setting forth in comparative form figures for the corresponding
period of the preceding fiscal year, accompanied by a certificate signed by the
chief financial officer of Seller stating that such financial statements
present fairly the financial condition of Seller and that the same have been
prepared in accordance with GAAP, subject in the case of financial statements
other than Seller’s annual financial statement to the absence of footnote
disclosure and to normal, recurring end-of-period adjustments, the effect of
which, both individually and in the aggregate, will not be material, and copies
of all financial statements or other financial information delivered to any
Facility Lender contemporaneously with the delivery thereof to such Facility
Lender)  most recently delivered to
Buyer by Seller, (ii) those set forth in Schedule        ,
(iii) those arising under the Assumed Contracts, and (iv) those associated with
any litigation listed in Schedule
      .  All Financial

 

L-1-4

 

Statements delivered by
Seller to Buyer are true and correct and have been prepared in accordance with
GAAP applied on a basis consistent with prior periods; each balance sheet
included in such Financial Statements fairly represents the financial condition
of Seller as of its respective date; and each statement of income and retained
earnings and cash flow included in such Financial Statements fairly represents
the results of operations and retained earnings and cash flow of Seller for the
period covered thereby; subject, with respect to any unaudited Financial
Statements other than Seller’s unaudited annual Financial Statements, to the
absence of footnote disclosure and to normal, recurring end-of-period
adjustments, the effect of which, both individually and in the aggregate, will
not be material.

 

8.               Consents. No Consent of,
or registration, qualification or filing with any Person, including any
Governmental Authority, is required for the execution and delivery by Seller of
this Agreement other than those that have been obtained. Except for those set
forth in Schedule         , no Consent of, or registration,
qualification or filing with any Person, including any Governmental Authority,
is required for the consummation by Seller of any of the transactions which
this Agreement or any of the other Operative Documents requires to be
consummated by Seller at the Closing.

 

9.               Taxes. Seller has
filed or caused to be filed with the appropriate Governmental Authorities all
returns, reports, information return or other documents (including any related
or supporting information) required to be supplied to any authority with
respect to Taxes (“Tax
Returns”) and reports relating to Seller required to be filed,
all such Tax Returns were correct and complete in all respects and all Taxes of
Seller due and payable have been paid whether or not shown to be due on such
Tax Returns and reports. Seller has not received any notice from any
Governmental Authority of any outstanding claims or assessments with respect to
any Tax relating to the Purchased Assets and no such claim is pending or is
presently being asserted against the Seller or with respect to any of the
Purchased Assets. Seller knows of no proposed tax assessment against the
Purchased Assets that is not being actively contested by it in good faith and
by appropriate proceedings. Seller has timely paid all Taxes shown to be due on
such Tax Returns, all Tax assessments received, and all Taxes that have or may
become due under applicable Law with respect to all periods or portions thereof
ending on or prior to the Closing Date. There are no Liens for Taxes on any of
the Purchased Assets. The Purchased Assets do not include any equity interest
in any corporation or other entity. 
Seller is not a party to any pending Tax audit, investigation, action or
Proceeding with any Governmental Authority, and there is no threatened audit,
investigation, action or Proceeding by any Governmental Authority with respect
to any of the Purchased Assets. Seller has not received written notice of any
claim by any Governmental Authority in any jurisdiction where it does not file
Tax Returns or pay Taxes that it is or may be subject to Tax by that
jurisdiction.  Seller has timely withheld
and timely paid all Taxes that are required to have been withheld and paid by
it in connection with amounts paid or owing to any employee, independent
contractor, creditor or other Person. Seller is not a party to or bound by any
Tax sharing agreement, Tax allocation agreement, or Tax indemnity agreement.  Seller is not presently liable for the Taxes
of another Person under applicable Law, as transferee or successor, or by
contract, indemnity or otherwise. None of the Assumed Liabilities is an
obligation to make a payment that will not be deductible by reason of the
limitations of Code Sections 280G or 162(m).

 

L-1-5

 

10.         Compliance
With Requirements of Law. Except as set forth on Schedule        ,
Seller is in compliance with all Requirements of Law (other than Environmental
Laws) applicable to the Purchased Assets and operation and use of the
Facility.  There are no condemnations or
similar proceedings applicable to any part of the Facility.

 

11.         Litigation.

 

(a)                                  Except as set
forth in Schedule        ,
there are no Proceedings pending, or to Seller’s knowledge threatened in
writing, against Seller.

 

(b)                                 Except as set
forth in Schedule       
there are no existing orders, writs, injunctions, judgments or decrees of any
court, arbitrator, tribunal or other Governmental Authority against Seller.

 

12.         Assumed
Contracts.  All Assumed
Contracts are in full force and effect, and neither Seller, nor to Seller’s
knowledge, any other party thereto, is in default under or breach of any of
them, nor does any event or condition exist that after notice or lapse of time
or both could constitute a default thereunder or breach thereof on the part of
Seller, or to Seller’s knowledge, any other party thereto. No approval,
consent, or waiver of or by any Person that has not already been obtained is
needed in order that the Assumed Contracts continue in full force and effect
following the consummation of the transactions contemplated by this Agreement,
and no Assumed Contract includes any provision, the effect of which may be to
terminate (or give rise to a right of termination under) such Assumed Contract,
to give rise to, enlarge, or accelerate any obligations of Seller thereunder,
or to give additional rights to any other Person, upon or by reason of the
consummation of the transactions contemplated by this Agreement.  Seller has delivered or made available to the
Buyer true and complete copies of all Assumed Contracts.

 

13.         Intellectual
Property.

 

(a)                                  Seller is the
licensee of, or has, such rights under the Intellectual Property Assets
necessary to operate and maintain the Facility in substantially the same manner
as it has historically been operated and maintained.  Seller has not received notice that any of
the Intellectual Property Assets infringes on or conflicts with the
intellectual property of others. No assignment or Consent of third parties is
necessary to transfer, license, assign or convey to Buyer, as appropriate, any
of the Intellectual Property Assets. 
Seller has the right to use, and from and after the Closing Date, Buyer
will have the right to use, the Intellectual Property Assets in connection with
the ongoing operation and maintenance of the Facility.

 

(b)                                 There have been
no claims, and, to Seller’s knowledge, there is no basis for any claim,
challenging the scope, validity or enforceability of any of the Intellectual
Property Assets.  There are no instances
where it has been held, or to Seller’s knowledge claimed or alleged, whether
directly or indirectly, and, to Seller’s knowledge, there is no basis upon
which a claim may be made, that any activity of Seller relating to the
operation or maintenance of the Facility, infringes or may infringe upon, is in
violation of, or misappropriates, any rights of a third party.

 

L-1-6

 

(c)                                  Schedule         lists the
software currently used in connection with the operation of the Facility[, INCLUDING CONTROL ROOM OPERATING SYSTEM SOFTWARE,]
all of which will remain available at the Facility for use by Buyer.

 

14.         Brokers or
Finders. Neither Seller nor any of its officers, directors, employees,
shareholders or Affiliates has employed or made any agreement with any broker,
finder or similar agent or any Person which will result in the obligation of
Buyer or any of its Affiliates to pay any finder’s fee, brokerage fees or
commission or similar payment in connection with the transactions contemplated
hereby.

 

15.         Permits.  All non-environmental Permits required by
Requirement of Law and necessary or useful for the operation of the Facility as
configured and operated by Seller have been obtained, are currently in effect
and are final and non-appealable, and are set forth in Schedule        .
 Seller’s operations at
the Facility Premises and in connection with the Purchased Assets are in
compliance with all the requirements of such Permits; and there is no
circumstance or condition that could preclude continued operation of the
Purchased Assets, including the Facility Premises, by the Buyer under any of
these Permits. Seller has made available to Buyer complete and correct copies
of each Permit, together with all amendments thereto. No suspension,
cancellation of termination of any such Permit is threatened or imminent.

 

16.         Investment
Company Act. Seller is not an “investment company” or a company
“controlled” by an “investment company” within the meaning of the Investment
Company Act.

 

18.         Employees
and Employee Benefit Plans.  Seller does not have and has never had any
employees. Seller does not now maintain or contribute to, and has not ever
maintained or contributed to, any pension, profit-sharing, deferred
compensation, bonus, stock, option, share, appreciation right, severance, group
or individual health, dental, medical, life, insurance, survivor benefit or
similar plan, policy or arrangement for the benefit of any director, officer,
consultant or employee, whether active or terminated of Seller.

 

19.         General
Representation. The representations and warrantees made by Seller,
its agents and representatives, in this Agreement, the Operative Documents or
in any certificate or other agreement delivered by Seller to Buyer in
connection with the transactions contemplated by this Agreement, when taken as
a whole, do not contain any untrue statement of a material fact, or omit to
state a material fact necessary in order to make the statements contained
herein, in light of the circumstances under which they were made and at the
time they were made, not misleading in any material respect. At Buyer’s
request, Seller has provided various documents, other materials and information
to Buyer and its representatives during the course of the negotiations and
documentation, and Buyer’s investigation and evaluation, of the transactions
contemplated by the Agreement and will from time to time provide various
documents, other materials and information to Buyer and its representatives
(collectively, the “Provided
Materials”). The Provided Materials which are in written or
recorded form are and will be true and correct copies of what they purport to
be and all information contained in the Provided Materials: (i) was and will be
drawn from the books and records of Seller; (ii) is or will be, or is or will
be in all material respects consistent with, the information which has been
used by Seller in the operation and management of the Facility and the Related
Rights and Interests and also

 

L-1-7

 

with what has been or will
be reported to Seller’s management, equity holders and the Facility Lender in
connection with the Facility and the Related Rights and Interests; and (iii) is
or will be, or is or will be in all material respects consistent with,
information provided or to be provided to Seller’s auditors in connection with
their audit of Seller’s financial statements.

 

L-1-8

 

APPENDIX M

 

TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

AND

MILFORD WIND CORRIDOR PHASE II, LLC

 

FORM OF LETTER OF CREDIT

 

IRREVOCABLE AND UNCONDITIONAL DOCUMENTARY

LETTER OF CREDIT NO.               

 

Applicant:

 

Beneficiary:

 

SOUTHERN CALIFORNIA PUBLIC
POWER AUTHORITY

225 S. Lake Avenue, Suite
1250

Pasadena, California 91101

Telephone:     (626) 793-9364

Facsimile:      (626) 793-9461

 

Amount:

Expiry Date:

Expiration Place:

 

Ladies and Gentlemen:

 

We hereby issue our
Irrevocable Unconditional Documentary Letter of Credit in favor of the
beneficiary by order and for the account of the applicant which is available at
sight for USD $XX,XXX,XXX by sight payment

 

M-1

 

(a)          upon
presentation to us at our office at [bank’s
address],(1) of: (i) your written demand for payment containing the
text of Exhibit I and (ii) your signed statement containing the
text of Exhibit II; or

 

(b)         upon both your
telephone or fax advice of demand to the attention of                                       
at telephone and/or fax number                                  
and presentation to us by fax of: (i) your written demand for payment
containing the text of Exhibit I and (ii) your statement containing the
text of Exhibit II.(2) Funds may be drawn under this Letter of Credit,
from time to time, in one or more drawings, in amounts not exceeding in the
aggregate the amount specified above.

 

Upon presentation to us in
conformity with the foregoing, we will, within sixty (60) minutes after such
presentation (unless such presentation occurs after 3:00 p.m., Pacific Standard
Time, on the day of such presentation, in which event payment will be made
within sixty (60) minutes after the opening of business at the office specified
above on the next business day), but without any other delay whatsoever,
irrevocably and without reserve or condition: (a) if the office set forth above
for presentation is in Los Angeles, California, pay to your order in the
account at the bank designated by you in the demand, the full amount demanded
by you in the same-day funds which are immediately available to you, or (b) if
the office set forth above for presentation is not in Los Angeles, California,
issue payment instructions to the Federal Reserve wire transfer system in
proper form to transfer to the account at the bank designated by you in the
demand, the full amount demanded by you in the same-day funds which are
immediately available to you in Los Angeles, California.  We agree that if, on the expiration date of
this Letter of Credit, the office specified above is not open for business,
this Letter of Credit will be duly honored if the specified statements are
presented by you within three (3) full banking days after such office is
reopened for business.

 

Payment hereunder shall be
made regardless of: (a) any written or oral direction, request, notice or other
communication now or hereafter received by us from the Applicant or any other
person except you, including without limitation any communication regarding
fraud, forgery, lack of authority or other defect not apparent on the face of
the documents presented by you, but excluding solely an effective written order
issued otherwise than at our instance by a court of competent jurisdiction,
which order is legally binding upon us and specifically orders us not to make
such payment;  (b)  the solvency, existence or condition,
financial or other, of the

 

(1) Note to Issuer: The
Letter of Credit must be payable in U.S. dollars within the continental U.S.

 

(2) Note to Issuer: If the
office specified for presentation is outside of Los Angeles, California,
alternative (b) must appear in the Letter of Credit when issued. If the office
is in Los Angeles, California, alternative (b) may be included only if the bank
establishes and maintains with Southern California Public Power Authority the
necessary electronic arrangements.

 

M-2

 

Applicant or any other person
or property from whom or which we may be entitled to reimbursement for such
payment; and (c) without limiting clause (b) above, whether we are in receipt
of or expect to receive funds or other property as reimbursement in whole or in
part for such payment.  We agree that we
will not take any action to cause the issuance of an order described in clause
(a) of the preceding sentence.  We agree
that the time set forth herein for payment of any demand(s) for payment is
sufficient to enable us to examine such demand(s) and the related documents(s)
referred to above with care so as to ascertain that on their face they appear
to comply with the terms of this credit and that if such demand(s) and
document(s) on their face appear to so comply, failure to make any such payment
within such time shall constitute dishonor of such demand(s) and this credit.

 

The stated amount of this
Letter of Credit may be increased or decreased, and the expiration date of this
Letter of Credit may be extended, by an amendment to this Letter of Credit in
the form of Exhibit III.  Any such
amendment shall become effective only upon acceptance by your signature on a
hard copy amendment.

 

You shall not be bound by
any written or oral agreement of any type between us and the Applicant or any
other person relating to this credit, whether now or hereafter existing.

 

We hereby engage with you
that your demand(s) for payment in conformity with the terms of this credit
will be duly honored as set forth above. All fees and other costs associated with
the issuance of and any drawing(s) against this Letter of Credit shall be for
the account of the Applicant. All of the rights of the Southern California
Public Power Authority (“SCPPA”) set forth above shall inure to the benefit of
your successors.  In this connection, in
the event of a drawing made by a party other than SCPPA, such drawing must be
accompanied by the following signed certification:

 

“The undersigned does hereby
certify that [drawer] is the successor by operation of law to SCPPA, a beneficiary
named in [name of Bank] Letter of Credit no.                   .

 

	
   

  	
  [name and title]

  

 

 

Except so far as otherwise
expressly stated herein, this documentary credit is subject to the “Uniform
Customs and Practices for Documentary Credits,” International Chamber of
Commerce, in effect on the date of issuance of this credit.

 

	
   

  	
  Yours faithfully,

  
	
   

  	
   

  
	
   

  	
  (name of issuing bank)

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
  Title

  	
   

  

 

M-3

 

 

EXHIBIT I

Demand for Payment

 

Re:                               Irrevocable and
Unconditional Documentary Letter of Credit

 

No.                                       Dated
                  ,
20    

 

To Whom It May Concern:

 

Demand is hereby made upon
you for payment to us of $                 
by deposit to our account no.                        
at [insert name of bank]. This demand is made under, and is subject to and
governed by, your Irrevocable and Unconditional Documentary Letter of Credit
no.                           
dated                     ,
20     in the amount of $                        
established by you in our favor for the account of                                   
as the Applicant.

 

DATED:                                          ,
20   .

 

 

	
   

  	
  SOUTHERN CALIFORNIA PUBLIC
  POWER

  
	
   

  	
  AUTHORITY

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  

 

M-4

 

EXHIBIT II

Statement

 

Re:                               Your
Irrevocable and Unconditional Documentary Letter of Credit

 

No.                                    
Dated                 ,
20               

 

To Whom It May Concern:

 

Reference is made to your
Irrevocable and Unconditional Documentary Letter of Credit no.                       ,
dated                      
, 20      in the amount of $                            
established by you in our favor for the account of                                           .

 

We hereby certify to you
that $                                           
is payable to us as provided in our agreement with the Applicant.

 

DATED:                             ,
20    .

 

	
   

  	
  SOUTHERN CALIFORNIA PUBLIC
  POWER

  
	
   

  	
  AUTHORITY

  
	
   

  	
   

  
	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Title

  	
   

  

 

M-5

 

EXHIBIT III

Amendment

 

Re:                               Irrevocable and
Unconditional Documentary Letter of Credit

 

No.                                     
Dated                               ,
20    

 

	
  Beneficiary:

  	
   

  	
  Applicant:

  

 

Southern California Public
Power Authority

225 S. Lake Avenue, Suite
1250

Pasadena, CA 91101

 

To Whom It May Concern:

 

The above referenced
Irrevocable and Unconditional Documentary Letter of Credit is hereby amended as
follows: by increasing / decreasing / leaving unchanged (strike two) the stated amount by $                                 
to a new stated amount of $                                 
or by extending the expiration date to                                     
from                                  .  All other terms and conditions of the Letter
of Credit remain unchanged.

 

This amendment is effective
only when accepted by Southern California Public Power Authoirty, which
acceptance may only be valid by a signature of an authorized representative.

 

	
  Dated:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Yours faithfully,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  (name of issuing bank)

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  By

  	
   

  
	
   

  	
   

  	
   

  	
  Title

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  ACCEPTED

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Southern
  California Public Power Authoirty

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By

  	
   

  	
   

  	
   

  
	
  Title

  	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  	
   

  
						

 

M-6

 

APPENDIX N

 

TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

AND

MILFORD WIND CORRIDOR PHASE II, LLC

 

FACILITY OPERATOR

 

First Wind O&M, LLC.

 

N-1

 

APPENDIX O

 

TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

AND

MILFORD WIND CORRIDOR PHASE II, LLC

 

FORM OF CONSENT AND AGREEMENT

 

This CONSENT AND AGREEMENT,
dated as of                     ,
                  
(“Consent”) by and among Southern California Public Power Authority (“Buyer”),
                    
(in its capacity as agent for the lenders under the credit Agreement, as
defined below, “Agent”) and Milford Wind Corridor Phase II, LLC, a
Delaware limited liability company (“Seller”). Each of Buyer, Seller and
Agent is referred to under this Agreement as a “Party” and together they
are referred to as the “Parties”.

 

RECITALS

 

A.                                   Seller entered
into a Credit Agreement with Agent and certain other lenders, dated as of                 ,
20     (the “Credit Agreement”), under which Seller
will finance the construction of a nominal 102 MW electric generating and
transmission facility (the “Facility” as defined in the Contract (as
defined below)).  Seller and Agent also
entered into a Security Agreement (the “Security Agreement”), under
which Seller assigned its interest under the Contract (as defined below) to
Agent as collateral for the credit facilities under the Credit Agreement and a
deed of trust or mortgage under which Seller has granted to Agent a lien on the
Facility to be recorded in the real property records of the county in which the
Facility is located (the “Deed of Trust”).  Additionally, [Insert name of Seller’s immediate
parent entity] (“Pledgor”) has entered into a
Pledge and Security Agreement pursuant to which it has pledged to Agent all of
the membership interests in Seller, to secure Seller’s obligations under the
Credit Agreement (the “Pledge Agreement” and, together with the Security
Agreement and Deed of Trust, the “First Lien Collateral Documents”).  A copy of each of the First Lien Collateral
Documents has been furnished to Buyer.

 

B.                                     Buyer and
Seller entered into that certain Power Purchase Agreement, dated as of                  ,
20      (the “Contract”), pursuant to which
Seller will develop, finance, construct, own, and operate the Facility, and
will sell the Energy (as defined in the Contract), except as otherwise provided
in the Contract.

 

O-1

 

C.                                     Pursuant to
Section 15.7(e) of the Contract, Seller has requested Buyer’s consent to the
assignment, pursuant to the Security Agreement, by Seller to Agent of Seller’s
interest under the Contract. In addition, this Consent is entered into in
compliance with Section 15.7(g) of the Contract.

 

AGREEMENT

 

1.                                      Assignment and Agreement.

 

1.1                                 Consent to Assignment. Buyer hereby consents to
the collateral assignment to Agent pursuant to the Security Agreement of
Seller’s rights to and under the Contract, pursuant to the Deed of Trust of
Seller’s interests in the Facility and pursuant to the Pledge Agreement of
Pledgor’s membership interests in Seller (together, the “Assigned Interests”)
as security for Seller’s obligations under the Credit Agreement. Subject to the
terms and conditions of this Consent, Buyer agrees that in exercising its
remedies, Agent may exercise Seller’s rights under the Contract.

 

1.2                                 Subsequent Owner. Subject to the terms and conditions of this
Consent, the Parties agree that if Agent notifies Buyer in writing that it has
foreclosed on the Assigned Interests pursuant to the First Lien Collateral
Documents, or taken a “deed in lieu of foreclosure,” Agent or its successor,
any assignee of Agent, or any other purchaser of the Assigned Interests shall
be recognized as a party substituting for Seller under the Contract so long as
it meets the qualifications set forth below for a Qualified Purchaser (as
defined below) (each, a “Subsequent Owner”), and the terms and
conditions of the Contract as in effect on such date of assignment or
foreclosure shall continue to apply to such Subsequent Owner.  For purposes of the previous sentence, “Qualified
Purchaser” means an entity that (a) is, or has contracted with an operator
who is, at least as experienced as Seller and its ultimate parent  on the date hereof in the ownership and
operation of windpower and electric transmission facilities, (b) has invested
at least [$100 million] of equity
capital in the Facility, minus any equity capital already invested therein by
Pledgor, (c) agrees to assume and perform the obligations of Seller under the
Contract and to otherwise comply with the terms and provisions of the Contract,
and (d) is not then in litigation or arbitration against Buyer or any member of
Buyer that is a purchaser from Buyer of electric energy produced by the
Facility.

 

 

1.3                                 Buyer’s Purchase in Lieu of Foreclosure.

 

(a)                                  In the event of
any default by Seller under the Credit Agreement that has not been cured as
provided thereunder, prior to taking any action, whether judicial or
non-judicial to foreclose upon and sell the Facility or the membership
interests in Seller (a “Foreclosure Sale”) pursuant to the First Lien
Collateral Documents, or to taking a deed in lieu of foreclosure, Agent shall
give notice in writing to Buyer in the form of, and containing the information
specified in, Exhibit A hereto (the “Foreclosure Notice”)
concurrent with any

 

O-2

 

statutory notice required to
be delivered to Seller, which notice shall be given not less than ninety (90)
days prior to the date of such Foreclosure Sale or taking of a deed in lieu of
foreclosure.

 

(b)                                 In the event
that Buyer shall, within sixty (60) days following Buyer’s receipt of the
Foreclosure Notice, furnish written notice to Agent in the form of, and
containing the information specified in, Exhibit B hereto (the “Purchase
Notice”), that Buyer will exercise its option under Section 15.21 of the
Contract, Buyer shall purchase the Facility from Seller in accordance with
Section 15.21 of the Contract prior to the end of the ninety (90) day period
following receipt of the Foreclosure Notice, and will give Agent fifteen (15)
days’ notice of the date of such purchase. Upon such purchase, Buyer shall pay
to an account designated by Agent the purchase price for the Facility in an
amount equal to the Facility Debt, as defined in the Contract, which amount
shall be provided by Agent to Buyer as an estimate at the time of the Purchase
Notice by Buyer, and as a fixed amount immediately prior to the purchase.  In consideration of such payment, Agent shall
release of record all of the liens and security interests under the First Lien
Collateral Documents.

 

(c)                                  If Buyer
believes that the purchase of the Facility will not take place within such
ninety (90) day period, and, prior to the end of such ninety (90) day period
provides notice to Agent in the form of Exhibit C, then the Foreclosure
Sale (or, as applicable, the taking of a deed in lieu of foreclosure) shall not
be held and Buyer shall, within ten (10) days after the end of such ninety (90)
day period, purchase from the Facility Lenders all of their right, title and
interest in, to and under the Credit Agreement and the First Lien Collateral
Documents, free and clear of all liens, claims and encumbrances. Upon such
purchase, Agent agrees to cause the transfer, sale and assignment of all of the
right, title and interest of the Facility Lenders in, to and under the Credit
Agreement, related promissory notes, and the First Lien Collateral Documents to
be made to Buyer (or, if and to the extent designated by Buyer, to a member of
Buyer that is a purchaser from Buyer of Energy (as defined under the Contract)
produced by the Facility) upon the payment by Buyer (and/or such member) to
Agent of the amount of the Facility Debt.

 

(d)                                 If Buyer has
not provided Agent a notice in the form of Exhibit C prior to the end of
such ninety (90) day period, then the Facility Lenders may effect the
Foreclosure Sale or take a deed in lieu of foreclosure at any time after the
end of such ninety (90) day period.

 

1.4                               Foreclosure
Sale. In the event Buyer does not exercise its option or rights as provided
under Section 1.3 above, and a Foreclosure Sale under the First Lien
Collateral Documents shall take place, (a) Buyer and/or any member of Buyer
that is a purchaser from Buyer of Energy (as defined under the Contract)
produced by the Facility shall have the right to bid at such Foreclosure Sale
for the purchase of the Facility or the membership interests in Seller, as
applicable, and (b) failing a successful bid by Buyer and/or any such member of
Buyer

 

O-3

 

at such Foreclosure Sale, Agent
may sell the Assigned Interests pursuant to such Foreclosure Sale, free of any
rights of Buyer under this Section 1.4, and, in each such case, Seller
waives, to the extent permitted by law, all rights of redemption, stay or
appraisal.

 

1.5                               Notices; Right
to Cure by Agent.  Upon the
occurrence of a Default (as defined under the Contract) by Seller under the
Contract, Buyer shall give notice of such Default to Agent. Buyer shall not
terminate or suspend its performance under the Contract until Agent has been
given thirty (30) days from receipt of such notice to cure a monetary Default
or, if such Default is a nonmonetary Default, forty-five (45) days from receipt
of such notice to cure such Default (or up to one hundred twenty (120) days, so
long as Agent is diligently pursuing appropriate action to cure and has made
progress toward curing such Default). Failure of Buyer to provide such notice
to Agent shall not constitute a breach of the Contract or this Consent by Buyer
and Agent agrees that Buyer shall have no liability to Agent for such failure
whatsoever; provided that no claim of Default or termination of the
Contract by Buyer shall be binding without such notice and the lapsing of the
applicable cure period. If Agent fails to cure a Default within the applicable
cure period, Buyer shall have all its rights and remedies with respect to such
Default as set forth in the Contract.

 

1.6                                 No Assignment. Buyer agrees that it shall not, without the
prior written consent of Agent (such consent to not be unreasonably withheld,
conditioned or delayed, and Agent shall be deemed to have consented forty-five
(45) days after receiving notice from Buyer if Agent does not indicate
otherwise), sell, assign or transfer any of its rights under the Contract other
than in accordance with Section 15.7 of the Contract.

 

2.                                      Payments under the Contract. Without limiting the
rights of Buyer under the Contract, Buyer shall pay any amounts owed in the
manner and when required under the Contract directly to the account specified
by Agent to Buyer in writing.  From and
after such time as an entity qualifies as a Subsequent Owner, Buyer shall pay
all such amounts owed directly to such Subsequent Owner.

 

3.                                      Right
to Cure by Buyer.  Buyer’s
rights to cure defaults by Seller under the Credit Agreement shall be set forth
in Section        of the Credit Agreement.

 

4.                                      Representations
and Warranties.

 

4.1                                 Buyer. To Buyer’s knowledge, Seller is not in default
under the Contract and all applicable milestone dates have been met under the
Contract.

 

4.2                                 Agent. Agent is duly authorized under the Credit
Agreement and the First Lien Collateral Documents to enter into and perform its
obligations thereunder and otherwise comply with the terms of this Consent on
behalf of the lenders under the Credit Agreement and the First Lien Collateral
Documents.

 

O-4

 

5.                                      Miscellaneous.

 

5.1                                 Governing Law; Submission to Jurisdiction.

 

(a)                                  This Consent
shall be governed by, interpreted and enforced in accordance with the laws of
the State of California, without regard to conflict of law principles.

 

(b)                                 All litigation
arising out of, or relating to this Consent, shall be brought in a State or
Federal court in the County of Los Angeles in the State of California. The
Parties irrevocably agree to submit to the exclusive jurisdiction of such
courts in the State of California and waive any defense of forum non conveniens.

 

5.2                                 Counterparts.  This
Consent may be executed in any number of counterparts and by the different
Parties on separate counterparts, each of which, when so executed and
delivered, shall be an original, but all of which shall together constitute one
and the same instrument.

 

5.3                                 Amendment, Waiver. Neither this Consent nor
any of the terms hereof may be terminated, amended, supplemented, waived or
modified except by an instrument in writing signed by Buyer and Agent.

 

5.4                                 Successors
and Assigns. This Consent shall bind and benefit Buyer and
Agent, and their respective successors and permitted assigns.

 

5.5                                 No
Attorneys’ Fees. Each Party agrees that in any action to enforce
the terms of this Consent, each Party shall be responsible for its own
attorneys’ fees and costs.

 

5.6                                 Representation by Counsel. Each of the Parties was represented by its respective
legal counsel during the negotiation and execution of this Consent.

 

5.7                                 Notices.  Any
communications between the Parties or notices provided herein to be given may
be given to the following addresses:  

 

	
  If to Seller:

  	
   

  	
  If to Buyer:

  
	
   

  	
   

  	
   

  
	
  Milford Wind Corridor
  Phase II, LLC

  	
   

  	
  Southern California.
  Public Power Authority

  
	
  [                       ]

  	
   

  	
  225 S. Lake Avenue, Suite
  1250

  
	
  Telephone:  [               ]

  	
   

  	
  Pasadena, CA 91101

  
	
  Facsimile:   [               ]

  	
   

  	
  Facsimile:  (626)
  793-9461

  
	
  Attn: [                         ]

  	
   

  	
  Telephone:  (626)
  793-9364

  
	
   

  	
   

  	
  Attention:      Executive
  Director

  

 

O-5

 

	
  If to Agent:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  [                       ]

  	
   

  	
   

  
	
  [                       ]

  	
   

  	
   

  
	
  Telephone:  [               ]

  	
   

  	
   

  
	
  Facsimile:   [               ]

  	
   

  	
   

  
	
  Attn: [                         ]

  	
   

  	
   

  

 

All notices or other
communications required or permitted to be given hereunder shall be in writing
and shall be considered as properly given (a) if delivered in person, (b) if
sent by overnight delivery service, (c) if mailed by first class United States
Mail, postage prepaid, registered or certified with return receipt requested,
(d) if sent by prepaid telegram or by facsimile, or (e) if sent by other
electronic means confirmed by facsimile or telephone.  Any Party may change its address for notice
hereunder by giving written notice of such change to the other Parties.

 

IN WITNESS WHEREOF, the
Parties have caused this Consent and Agreement to be duly executed and
delivered as of the date first above written.

 

	
   

  	
  SOUTHERN CALIFORNIA PUBLIC

  
	
   

  	
  POWER AUTHORITY,

  
	
   

  	
  a California joint powers
  authority

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [AGENT]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  MILFORD WIND CORRIDOR
  PHASE II,

  
	
   

  	
  LLC

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  

 

O-6

 

 

	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

O-7

 

EXHIBIT A

 

FORM OF FORECLOSURE NOTICE

 

[Letterhead of Agent]

 

[Insert date]

 

Via Certified Mail, Return
Receipt Requested

 

Southern California Public
Power Authority

225 South Lake Avenue

Suite
1250

Pasadena,
CA 91101

Attn:
Executive Director

 

Re:                             [       ]
Project

 

Ladies and Gentlemen:

 

This notice is provided to
you pursuant to the Consent and Agreement (“Consent”) dated as of                  
20    , among Southern California Public Power Authority (“Buyer”),
[Agent] (“Agent”)
and [     ] (“Seller”).  This is a Foreclosure Notice, as defined in
the Consent. Capitalized terms used herein and not defined herein have the
respective meanings given in the Consent.

 

As of the date hereof, the
following amounts are due and owing by Seller under the Credit Agreement:

 

	
  Principal
  amount of loans:

  	
   

  	
  $

  	
   

  	
   

  
	
  Accrued
  Interest:

  	
   

  	
  $

  	
   

  	
   

  
	
  Reimbursable
  Amounts

  	
   

  	
  $

  	
   

  	
   

  
	
  Fees:

  	
   

  	
  $

  	
   

  	
   

  

 

As of the date hereof,
interest is accruing at the rate of       % per
annum [Insert if
applicable: and fees are accruing at the rate of      
% per annum]. This interest rate
will apply until [insert date which is end
of current interest period], from which time the interest rate may
be higher or lower. A default rate of interest equal to 2% above the otherwise
applicable rate [does/does not]
currently apply [If does not currently
apply, add: but may be

 

O-8

 

applied at
any time]. [If applicable, state: The
principal amount of loans shown above does not reflect the entire loan
commitment under the Credit Agreement. Additional loans may be made, with or
without the Seller’s consent, and such additional loans will accrue interest as
provided in the Credit Agreement.]

 

An Event of Default, as
defined in the Credit Agreement, has occurred and is continuing. The Agent
intends to foreclose upon the Assigned Interests or take a deed in lieu of
foreclosure on a date estimated to be [insert day no less than ninety (90) days from the date of
notice]. Such date may be modified as permitted by law, but will
in no event be prior to ninety (90) days after the date hereof.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  [Agent]

  

 

O-9

 

EXHIBIT B

 

FORM OF PURCHASE NOTICE

 

[Letterhead of SCPPA]

 

[Insert date]

 

Via Certified Mail, Return
Receipt Requested

[Agent]

Attn:

 

Re:                             [      ]
Project

 

Ladies and Gentlemen:

 

This notice is provided to
you pursuant to the Consent and Agreement (“Consent”), dated as of                 ,
20    , among Southern California Public Power Authority (“Buyer”),
[Agent] (“Agent”)
and [      ] (“Seller”). This is a Purchase
Notice, as defined in the Consent. Capitalized terms used and not defined
herein have the respective meanings given in the Consent.

 

We have received your
foreclosure Notice, dated [insert
date of Foreclosure Notice].
By this Purchase Notice, we hereby notify Agent that we will exercise our
option and purchase the Facility pursuant to our rights under Section 15.21 of
the Contract no later than ninety (90) days from the date of the Foreclosure
Notice, and upon consummation of such purchase, pay to Agent, for the account
of the Facility Lenders, the Facility Debt (as defined in the Contract).

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  SOUTHERN CALIFORNIA PUBLIC
  POWER

  
	
   

  	
  AUTHORITY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

O-10

 

EXHIBIT C

 

[Letterhead of SCPPA]

 

[Insert date]

 

Via Certified Mail, Return
Receipt Requested

 

[Agent]

Attn:

 

Re:                             [      ]
Project

 

Ladies and Gentlemen:

 

This notice is provided to
you pursuant to the Consent and Agreement (“Consent”), dated as of                ,
20     , among Southern California Public Power
Authority, [Agent]
(“Agent”) and [       ] (“Seller”). Capitalized terms used
herein and not defined herein have the respective meanings given in the
Consent.

 

We have received your
Foreclosure Notice, dated [insert
date of Foreclosure Notice]. By
this notice, we hereby notify Agent that we believe that the purchase of the
Facility pursuant to Section 15.21 of the Contract will not take place within
the ninety (90) day period following our receipt of such Foreclosure Notice. We
will, within ten (10) days after the end of such ninety (90) day period,
purchase from the Facility Lenders all of their right, title and interest in,
to and under the Credit Agreement, related promissory notes, and First Lien
Collateral Documents, for a price equal to the Facility Debt.

 

	
   

  	
  Very truly yours,

  
	
   

  	
   

  
	
   

  	
  SOUTHERN CALIFORNIA PUBLIC
  POWER

  
	
   

  	
  AUTHORITY

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

O-11

 

APPENDIX P

 

TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

AND

MILFORD WIND CORRIDOR PHASE II, LLC

 

BUYER’S SYSTEM PROTECTION DESIGN

 

	
  Line or Apparatus

  	
   

  	
  Position Trip

  	
   

  	
  Current

  	
   

  	
  Other

  	
   

  	
  Relays

  
	
  J28      250
  VDC Intermountain

  	
   

  	
  Delta,
  Utah Delta UT

  	
   

  	
  (000)
  279-0000 / none

  
	
  46/7.2KV Reserve Aux Bank
  1&2

  	
   

  	
  EA268

  	
   

  	
  EA267

  	
   

  	
   

  	
   

  	
  ITE51, LOR, MBCH, RFL6745
  TT, SUDD PRESS

  
	
  Bank K 345/46KV

  	
   

  	
  EA105

  	
   

  	
  EA105

  	
   

  	
   

  	
   

  	
  CO-8, RADSE

  
	
  Bank L 345/46KV

  	
   

  	
  EA105

  	
   

  	
  EA105

  	
   

  	
   

  	
   

  	
  CO-8, RADSE

  
	
  Bank M 345/230KV

  	
   

  	
  EA168

  	
   

  	
  EA167

  	
   

  	
   

  	
   

  	
  CO-8, HU, IAV, RADSE

  
	
  345KV Bus I

  	
   

  	
  EA94

  	
   

  	
  EA94

  	
   

  	
   

  	
   

  	
  RADSS

  
	
   

  	
   

  	
  EA95

  	
   

  	
  EA95

  	
   

  	
   

  	
   

  	
  LOR/ER, SBD

  
	
  345KV Bus 2

  	
   

  	
  EA96

  	
   

  	
  EA96

  	
   

  	
   

  	
   

  	
  RADSS

  
	
   

  	
   

  	
  EA97

  	
   

  	
  EA97

  	
   

  	
   

  	
   

  	
  LOR/ER, SBD

  
	
  46kV Buses 1 & 2

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  J28-EA2828

  	
   

  	
  IAC, LOR

  
	
  46kV lines

  	
   

  	
  EA126

  	
   

  	
  EA126

  	
   

  	
   

  	
   

  	
  CO-8

  
	
  Generator Tie Line 1 &
  2

  	
   

  	
  EA133

  	
   

  	
  EA132

  	
   

  	
   

  	
   

  	
  GEL90

  
	
   

  	
   

  	
  EA134

  	
   

  	
  EA132

  	
   

  	
   

  	
   

  	
  RFL GARD FOTT, SEL311L

  
	
  IPP-Gonder Line 1

  	
   

  	
  EA189

  	
   

  	
  EA169

  	
   

  	
   

  	
   

  	
  CRQ, K-10, KD-11, TCF-10

  
	
   

  	
   

  	
  EA170

  	
   

  	
  EA169

  	
   

  	
   

  	
   

  	
  KD-10, KRQ, RFL6745

  
	
  IPP-Milford Wind Line 1

  	
   

  	
  EA623

  	
   

  	
  EA622

  	
   

  	
   

  	
   

  	
  GE L90

  
	
   

  	
   

  	
  EA624

  	
   

  	
  EA622

  	
   

  	
   

  	
   

  	
  GE D60, RFL GARD MWTT,
  SEL421

  
	
  IPP-Mona Line 1

  	
   

  	
  EA138

  	
   

  	
  EA137

  	
   

  	
   

  	
   

  	
  71A PLC PILOT, 71A PLC TT,
  KD-11, KRQ EM BU, SLYP-SLCN, TYPE 40 MW PILOT, TYPE 40 MW TT

  
	
  IPP-Mona Line 2

  	
   

  	
  EA138

  	
   

  	
  EA137

  	
   

  	
   

  	
   

  	
  71A PLC PILOT, 71A PLC TT,
  KD-11, KRQ EM BU, SLYP-SLCN, TYPE 40 MW PILOT, TYPE 40 MW TT

  
	
  46kV Cable

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  J28-EA2828

  	
   

  	
  CO-8, RFL6745

  
	
  Over/Under Frequency

  	
   

  	
  EDR117

  	
   

  	
  EDR117

  	
   

  	
   

  	
   

  	
  BEI-81 O/U

  
	
  Converter Filter

  	
   

  	
  EA121

  	
   

  	
  EA121

  	
   

  	
  EDR116

  	
   

  	
  RADSB, RXEG, RXKE

  
	
  Black Trip Reclosure
  (RVAR)

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  J28-EA35

  	
   

  	
  AR, BEI-27, BEI-79S

  

 

P-1

 

	
  Contingency Arming Trigger

  	
   

  	
  EA165

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Contingency Arming Trip

  	
   

  	
  EA171

  	
   

  	
   

  	
   

  	
   

  	
   

  	
  RFL6745

  
	
  Converter Pole

  	
   

  	
  EA145

  	
   

  	
  EA145

  	
   

  	
   

  	
   

  	
  RADSB

  
	
  Station Block Diagram

  	
   

  	
  EA109, EA110

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  345KV
  Brkr Fail E12, E13

  	
   

  	
  EA117

  	
   

  	
  EA117

  	
   

  	
   

  	
   

  	
  LOR, SBFU

  
	
  345KV
  Brkr Fail E5, E6, E8

  	
   

  	
  EA119

  	
   

  	
  EA119

  	
   

  	
   

  	
   

  	
  LOR, SBFU

  
	
  345KV
  Brkr Fail E9, E10, E11

  	
   

  	
  EA118

  	
   

  	
  EA118

  	
   

  	
   

  	
   

  	
  LOR, SBFU

  
	
  45kV Breaker Vailure

  	
   

  	
  EA193, EA194

  	
   

  	
  EA192

  	
   

  	
   

  	
   

  	
  LOR, SBF-1

  

 

P-2

 

APPENDIX Q

 

TO THE

POWER PURCHASE AGREEMENT

BETWEEN

SOUTHERN CALIFORNIA PUBLIC POWER AUTHORITY

AND

MILFORD WIND CORRIDOR PHASE II, LLC

 

METERING PROCEDURES

 

Milford
Phase II Metering Solution

 

This document outlines the
method to be used for metering the Facility (referred to in this Appendix Q as,
“Phase II”)
turbines being connected to the Milford Wind Phase I Facility (referred to in
this Appendix Q as, “Phase
I”) Substation bus 1.  The
Energy from the Phase II turbines is also to be purchased by Buyer pursuant to
the terms and conditions of this Agreement. 
The metering scheme proposed for Phase II is outlined below.

 

·                  Setup a master/slave
scheduling arrangement for Energy metered by the two phases.

 

·                  Implement a method for split
metering of the Energy produced at the substation as shown below. This will
provide the net Energy delivered for Phase II and Phase I at the Point of
Delivery.

 

The split metering method
takes the ratio of the Phase II power at Milford over total Milford power and
applies it to the net metered value at the Point of Delivery. This ratio varies
dynamically based on generation and all losses are split in accordance with the
amount of Energy each phase is producing.

 

To accomplish the split metering,
the two new Phase II collector circuits and the station service circuit will
each be equipped with revenue class CTs and individual meters. The gross Energy
values for each feeder are then added together and reduced by the Phase II
station service power to determine the total generation of Phase II. The Phase
II station service power will be deemed to be one third of the total station
service power. This total generation of Phase II is divided by the total Phase
I and II power determined by adding the values of the two 34.5kV bus meters.

 

The meters are shown in
Figure 1. The following equations show the math to be used for the splitting:

 

Q-1

 

Phase II
Net Energy = Energy @ Interconnect Meter × (Energy @ F1 Meter
+ Energy @ F2 Meter – (Energy @ Station Service Meter × 1/3)) / (Energy @ Bus 1 Meter + Energy @ Bus 2 Meter)

 

Phase I Net
Energy = Energy @ Interconnect Meter – Phase II Net Energy

 

Q-2

 

FIGURE
1

 

 

Q-3Exhibit 10.58

 

[Execution Version]

 

 

CREDIT
AGREEMENT

 

dated as of October 20, 2010

 

among

MILFORD WIND CORRIDOR PHASE
II, LLC

(as Borrower)

 

RBS SECURITIES INC.

(as Lead Arranger and
Bookrunner)

 

BANCO
ESPÍRITO SANTO S.A. NEW YORK BRANCH,

COBANK, ACB,

SANTANDER INVESTMENT SECURITIES INC., and

SG AMERICAS SECURITIES, LLC,

 

(as Co-Syndication Agents, Joint Bookrunners
and Joint Lead Arrangers)

 

THE FINANCIAL INSTITUTIONS
PARTIES HERETO

(as Lenders)

 

and

 

THE ROYAL BANK OF SCOTLAND PLC,

(as Administrative Agent, Collateral Agent
and Lender)

 

 

102 Megawatt Facility and an undivided interest in the 345 kV generator
lead line and substation

Beaver and Millard Counties, Utah

 

 

 

TABLE OF CONTENTS

 

	
   

  	
   

  	
  Page

  
	
   

  	
   

  	
   

  
	
  ARTICLE 1 DEFINITIONS

  	
  1

  
	
   

  	
   

  	
   

  
	
  1.1

  	
  Definitions

  	
  1

  
	
  1.2

  	
  Rules of Interpretation

  	
  1

  
	
  1.3

  	
  Accounting Terms; GAAP

  	
  2

  
	
   

  	
   

  	
   

  
	
  ARTICLE 2 THE CREDIT
  FACILITY

  	
  2

  
	
   

  	
   

  
	
  2.1

  	
  Loan Facility

  	
  2

  
	
  2.2

  	
  Total Commitments

  	
  8

  
	
  2.3

  	
  Fees

  	
  9

  
	
  2.4

  	
  Other Payment Terms

  	
  9

  
	
  2.5

  	
  Pro Rata Treatment

  	
  13

  
	
  2.6

  	
  Change of Circumstances

  	
  14

  
	
  2.7

  	
  Funding Losses

  	
  16

  
	
  2.8

  	
  Alternate Office; Minimization of Costs

  	
  17

  
	
  2.9

  	
  Register

  	
  18

  
	
   

  	
   

  	
   

  
	
  ARTICLE 3 CONDITIONS
  PRECEDENT

  	
  19

  
	
   

  	
   

  
	
  3.1

  	
  Conditions Precedent to the Closing Date

  	
  19

  
	
  3.2

  	
  Conditions Precedent to Each Credit Event

  	
  29

  
	
  3.3

  	
  No Approval of Work

  	
  31

  
	
  3.4

  	
  Adjustment of Drawdown Requests

  	
  31

  
	
  3.5

  	
  Determinations Under Section 3.1

  	
  32

  
	
   

  	
   

  	
   

  
	
  ARTICLE 4 REPRESENTATIONS
  AND WARRANTIES

  	
  32

  
	
   

  	
   

  
	
  4.1

  	
  Organization

  	
  32

  
	
  4.2

  	
  Authorization; No Conflict

  	
  32

  
	
  4.3

  	
  Enforceability

  	
  33

  
	
  4.4

  	
  Compliance with Law

  	
  33

  
	
  4.5

  	
  Single Purpose, Debt, Contracts, Joint Ventures,
  Proceeds, Etc.

  	
  33

  
	
  4.6

  	
  Adverse Change

  	
  34

  
	
  4.7

  	
  Investment Company Act

  	
  34

  
	
  4.8

  	
  ERISA

  	
  34

  
	
  4.9

  	
  Permits

  	
  34

  
	
  4.10

  	
  Hazardous Substances

  	
  35

  
	
  4.11

  	
  Litigation

  	
  36

  
	
  4.12

  	
  No Labor Disputes; Force Majeure

  	
  37

  
	
  4.13

  	
  Operative Documents

  	
  37

  
	
  4.14

  	
  Disclosure

  	
  37

  
	
  4.15

  	
  Taxes

  	
  38

  
	
  4.16

  	
  Governmental Regulation

  	
  38

  

 

i

 

	
  4.17

  	
  Regulation U, Etc.

  	
  39

  
	
  4.18

  	
  Budgets; Projections

  	
  39

  
	
  4.19

  	
  Financial Statements

  	
  39

  
	
  4.20

  	
  No Default

  	
  40

  
	
  4.21

  	
  Organizational ID Number; Location of Tangible Collateral

  	
  40

  
	
  4.22

  	
  Title and Liens

  	
  40

  
	
  4.23

  	
  Intellectual Property

  	
  40

  
	
  4.24

  	
  Collateral

  	
  41

  
	
  4.25

  	
  Sufficiency of Project Documents

  	
  41

  
	
  4.26

  	
  Utilities

  	
  42

  
	
  4.27

  	
  Other Facilities

  	
  42

  
	
  4.28

  	
  Flood Zone Disclosure

  	
  42

  
	
  4.29

  	
  Insurance

  	
  42

  
	
  4.30

  	
  Anti-Terrorism Law

  	
  42

  
	
  4.31

  	
  Investments

  	
  43

  
	
  4.32

  	
  No Recordation, Etc.

  	
  43

  
	
  4.33

  	
  Entitlement to Grant

  	
  43

  
	
  4.34

  	
  No Ownership by Disqualified Persons

  	
  44

  
	
  4.35

  	
  Solvency

  	
  44

  
	
  4.36

  	
  PPA

  	
  44

  
	
   

  	
   

  	
   

  
	
  ARTICLE 5 AFFIRMATIVE
  COVENANTS

  	
  44

  
	
   

  	
   

  
	
  5.1

  	
  Use of Proceeds, Equity Contributions and Project Revenues

  	
  44

  
	
  5.2

  	
  Payment

  	
  45

  
	
  5.3

  	
  Maintenance of Property

  	
  45

  
	
  5.4

  	
  Notices

  	
  45

  
	
  5.5

  	
  Financial Reporting

  	
  49

  
	
  5.6

  	
  Books, Records, Access

  	
  50

  
	
  5.7

  	
  Compliance with Laws, Instruments, Applicable
  Permits, Etc.

  	
  51

  
	
  5.8

  	
  Reports

  	
  51

  
	
  5.9

  	
  Existence, Conduct of Business, Properties, Etc.

  	
  53

  
	
  5.10

  	
  Indemnification

  	
  53

  
	
  5.11

  	
  Regulation

  	
  56

  
	
  5.12

  	
  Construction of the Project

  	
  56

  
	
  5.13

  	
  Completion and Commercial Operation

  	
  57

  
	
  5.14

  	
  Operation and Maintenance of Project; Operating Budget

  	
  57

  
	
  5.15

  	
  Preservation of Rights; Further Assurances

  	
  58

  
	
  5.16

  	
  Additional Consents

  	
  60

  
	
  5.17

  	
  Maintenance of Insurance

  	
  60

  
	
  5.18

  	
  Taxes, Other Government Charges and Utility Charges

  	
  60

  
	
  5.19

  	
  Event of Eminent Domain

  	
  60

  
	
  5.20

  	
  Environmental Laws

  	
  61

  
	
  5.21

  	
  Independent Consultants

  	
  61

  
	
  5.22

  	
  PPA

  	
  61

  
	
  5.23

  	
  Updates to Wind Report, IE Report and Cost Segregation
  Report

  	
  62

  
	
  5.24

  	
  Grant

  	
  62

  

 

ii

 

	
  5.25

  	
  Turbine Placement

  	
  62

  
	
  5.26

  	
  CoBank Equity and Security

  	
  62

  
	
   

  	
   

  	
   

  
	
  ARTICLE 6 NEGATIVE COVENANTS

  	
  63

  
	
   

  	
   

  
	
  6.1

  	
  Contingent Obligations

  	
  63

  
	
  6.2

  	
  Limitations on Liens

  	
  63

  
	
  6.3

  	
  Debt

  	
  63

  
	
  6.4

  	
  Sale or Lease of Assets

  	
  63

  
	
  6.5

  	
  Changes

  	
  64

  
	
  6.6

  	
  Restricted Payments

  	
  64

  
	
  6.7

  	
  Investments

  	
  64

  
	
  6.8

  	
  Transactions With Affiliates

  	
  64

  
	
  6.9

  	
  Margin Loan Regulations

  	
  65

  
	
  6.10

  	
  Partnerships, etc.

  	
  65

  
	
  6.11

  	
  Dissolution; Merger

  	
  65

  
	
  6.12

  	
  Amendments; Completion

  	
  65

  
	
  6.13

  	
  Name and Location; Fiscal Year

  	
  67

  
	
  6.14

  	
  Use of Site

  	
  67

  
	
  6.15

  	
  Assignment

  	
  67

  
	
  6.16

  	
  Accounts

  	
  67

  
	
  6.17

  	
  Hazardous Substances

  	
  67

  
	
  6.18

  	
  Project Documents

  	
  67

  
	
  6.19

  	
  Project Budget and Schedule Amendments

  	
  68

  
	
  6.20

  	
  Assignment By Third Parties

  	
  68

  
	
  6.21

  	
  Acquisition of Real Property

  	
  68

  
	
  6.22

  	
  No Merchant Sales

  	
  68

  
	
  6.23

  	
  Lease Obligations

  	
  68

  
	
  6.24

  	
  Disputes

  	
  68

  
	
  6.25

  	
  Anti-Terrorism Law; Anti-Money Laundering

  	
  69

  
	
  6.26

  	
  Embargoed Persons

  	
  69

  
	
  6.27

  	
  Regulatory Status

  	
  69

  
	
  6.28

  	
  Capital Expenditures

  	
  69

  
	
  6.29

  	
  Separateness

  	
  70

  
	
  6.30

  	
  Interconnection

  	
  70

  
	
  6.31

  	
  General Electric O&M Agreement

  	
  70

  
	
   

  	
   

  	
   

  
	
  ARTICLE 7 Accounts

  	
  71

  
	
   

  	
   

  
	
  7.1

  	
  Account Withdrawals, Transfers and Payments

  	
  71

  
	
  7.2

  	
  Construction Account

  	
  72

  
	
  7.3

  	
  Revenue Account

  	
  73

  
	
  7.4

  	
  Application of Insurance Proceeds

  	
  74

  
	
  7.5

  	
  Application of Eminent Domain Proceeds

  	
  76

  
	
  7.6

  	
  Asset Sale Account

  	
  76

  
	
  7.7

  	
  SCPPA Cure Reserve Account

  	
  77

  
	
  7.8

  	
  Repayment Account

  	
  77

  

 

iii

 

	
  7.9

  	
  Proceeds and Accounts

  	
  78

  
	
  7.10

  	
  Permitted Investments

  	
  78

  
	
   

  	
   

  	
   

  
	
  ARTICLE 8 EVENTS OF DEFAULT;
  REMEDIES

  	
  78

  
	
   

  	
   

  
	
  8.1

  	
  Events of Default

  	
  78

  
	
  8.2

  	
  Remedies

  	
  85

  
	
   

  	
   

  	
   

  
	
  ARTICLE 9 SCPPA and PPA
  PROVISIONS

  	
  86

  
	
   

  	
   

  
	
  9.1

  	
  SCPPA Cure Rights

  	
  86

  
	
  9.2

  	
  SCPPA Cure Loans

  	
  87

  
	
  9.3

  	
  Power of Attorney

  	
  87

  
	
  9.4

  	
  SCPPA as Third Party Beneficiary

  	
  87

  
	
  9.5

  	
  Assignment of the Loans to SCPPA

  	
  87

  
	
   

  	
   

  	
   

  
	
  ARTICLE 10 SCOPE OF
  LIABILITY

  	
  87

  
	
   

  	
   

  
	
  ARTICLE 11 AGENTS;
  SUBSTITUTION

  	
  89

  
	
   

  	
   

  
	
  11.1

  	
  Appointment and Authority

  	
  89

  
	
  11.2

  	
  Rights as a Lender

  	
  89

  
	
  11.3

  	
  Exculpatory Provisions

  	
  89

  
	
  11.4

  	
  Reliance

  	
  90

  
	
  11.5

  	
  Delegation of Duties

  	
  91

  
	
  11.6

  	
  Resignation

  	
  91

  
	
  11.7

  	
  Non-Reliance

  	
  92

  
	
  11.8

  	
  Administrative Agent May File Proofs of Claim

  	
  92

  
	
  11.9

  	
  Collateral Matters

  	
  93

  
	
  11.10

  	
  Other Holders of Titles

  	
  93

  
	
  11.11

  	
  Indemnification

  	
  93

  
	
  11.12

  	
  Withholding Tax

  	
  94

  
	
  11.13

  	
  General Provisions as to Payments

  	
  94

  
	
  11.14

  	
  Substitution of Lender

  	
  95

  
	
  11.15

  	
  Joinder By Secured Parties

  	
  95

  
	
  11.16

  	
  Delivery of Copies to Lenders

  	
  95

  
	
   

  	
   

  	
   

  
	
  ARTICLE 12 INDEPENDENT
  CONSULTANTS

  	
  95

  
	
   

  	
   

  
	
  12.1

  	
  Removal and Fees

  	
  95

  
	
  12.2

  	
  Duties

  	
  95

  
	
  12.3

  	
  Independent Consultants’ Certificates

  	
  96

  
	
  12.4

  	
  Certification of Dates

  	
  96

  
	
   

  	
   

  	
   

  
	
  ARTICLE 13 MISCELLANEOUS

  	
  96

  
	
   

  	
   

  
	
  13.1

  	
  Notices; Signatures

  	
  96

  
	
  13.2

  	
  Additional Security; Right to Set-Off

  	
  98

  

 

iv

 

	
  13.3

  	
  Delay and Waiver

  	
  99

  
	
  13.4

  	
  Costs, Expenses and Attorneys’ Fees

  	
  99

  
	
  13.5

  	
  Entire Agreement

  	
  101

  
	
  13.6

  	
  Governing Law

  	
  101

  
	
  13.7

  	
  Severability

  	
  101

  
	
  13.8

  	
  Headings

  	
  101

  
	
  13.9

  	
  Accounting Terms

  	
  101

  
	
  13.10

  	
  Additional Financing, Etc.

  	
  101

  
	
  13.11

  	
  No Partnership, Etc.

  	
  102

  
	
  13.12

  	
  Trust Deed/Collateral Documents

  	
  102

  
	
  13.13

  	
  Limitation on Liability

  	
  102

  
	
  13.14

  	
  Waiver of Jury Trial

  	
  102

  
	
  13.15

  	
  Consent to Jurisdiction

  	
  103

  
	
  13.16

  	
  Effectiveness

  	
  104

  
	
  13.17

  	
  Successors and Assigns

  	
  104

  
	
  13.18

  	
  Counterparts

  	
  107

  
	
  13.19

  	
  Survival

  	
  108

  
	
  13.20

  	
  Amendments; Waivers

  	
  108

  
	
  13.21

  	
  Laws

  	
  110

  
	
  13.22

  	
  Assignability as Collateral

  	
  110

  
	
  13.23

  	
  Service of Process

  	
  111

  
	
  13.24

  	
  Interest Rate Limitation

  	
  111

  
	
  13.25

  	
  Confidentiality

  	
  111

  
	
  13.26

  	
  Marshalling; Assets Set Aside

  	
  112

  
	
  13.27

  	
  Independence of Covenants

  	
  112

  
	
  13.28

  	
  Construction of the Documents

  	
  112

  
	
  13.29

  	
  Syndication

  	
  112

  
	
  13.30

  	
  The Platform

  	
  113

  
	
  13.31

  	
  Patriot Act

  	
  113

  

 

v

 

Index of Exhibits

 

	
  Exhibit A

  	
  Definitions
  and Rules of Interpretation

  
	
   

  	
   

  
	
  Exhibit B

  	
  [Reserved]

  
	
   

  	
   

  
	
  Exhibit C

  	
  Loan
  Disbursement Procedures

  
	
  Exhibit C-1

  	
  Form of
  Notice of Borrowing

  
	
  Exhibit C-2

  	
  Form of
  Notice of Interest Terms

  
	
  Exhibit C-3

  	
  Form of
  Drawdown Certificate

  
	
  Exhibit C-4

  	
  Form of
  Independent Engineer’s Drawdown Certificate

  
	
   

  	
   

  
	
  Exhibit D

  	
  Security-Related
  Documents

  
	
  Exhibit D-1

  	
  Form of
  Trust Deed

  
	
  Exhibit D-2

  	
  Form of
  Security Agreement

  
	
  Exhibit D-3

  	
  Form of
  Pledge Agreement

  
	
  Exhibit D-4

  	
  Form of
  Depositary Agreement

  
	
  Exhibit D-5

  	
  Schedule
  of Security Filings

  
	
   

  	
   

  
	
  Exhibit E

  	
  Consents

  
	
  Exhibit E-1

  	
  Form of
  Consent for Contracting Party (Long Form)

  
	
  Exhibit E-2

  	
  Form of
  Consent for Contracting Party (Short Form)

  
	
  Exhibit E-3

  	
  Schedule
  of Closing Date Consents and Opinions

  
	
   

  	
   

  
	
  Exhibit F

  	
  Closing
  Certificates

  
	
  Exhibit F-1

  	
  Form of
  Borrower’s Closing Certificate

  
	
  Exhibit F-2

  	
  Form of
  Pledgor Closing Certificate

  
	
  Exhibit F-3

  	
  Form of
  Borrower Entity Closing Certificate

  
	
  Exhibit F-4

  	
  Form of
  Insurance Consultant’s Certificate

  
	
  Exhibit F-5

  	
  Form of
  Independent Engineer’s Certificate

  
	
  Exhibit F-6

  	
  Form of
  Solvency Certificate

  
	
   

  	
   

  
	
  Exhibit G

  	
  Project
  Description Exhibits

  
	
  Exhibit G-1

  	
  Permit
  Schedule

  
	
  Exhibit G-2

  	
  Project
  Budget

  
	
  Exhibit G-3

  	
  Project
  Schedule

  
	
  Exhibit G-4

  	
  Litigation

  
	
  Exhibit G-5

  	
  Hazardous
  Substances Disclosure

  
	
   

  	
   

  
	
   

  	
  Other

  
	
  Exhibit H

  	
  Lenders
  Proportionate Shares

  
	
  Exhibit I

  	
  Form of
  Non-Bank Certificate

  
	
  Exhibit J

  	
  Form of
  Account Withdrawal Request

  
	
  Exhibit K

  	
  Insurance
  Requirements

  
	
  Exhibit L

  	
  Form of
  Annual Insurance Certificate

  
	
  Exhibit M

  	
  Form of
  Assignment and Assumption

  
	
  Exhibit N

  	
  Form of
  Credit Agreement Joinder

  

 

vi

 

This
CREDIT AGREEMENT, dated as of October 20, 2010 (“Agreement”), among
MILFORD WIND CORRIDOR PHASE II, LLC, a Delaware limited liability company, as
borrower (“Borrower”), THE FINANCIAL INSTITUTIONS LISTED ON EXHIBIT H
OR WHICH LATER BECOME A PARTY HERETO, (the financial institutions party to this
Agreement being collectively referred to as the “Lenders”), THE ROYAL
BANK OF SCOTLAND PLC, as administrative agent for the Lenders (in such
capacity, together with its successors and assigns in such capacity, the “Administrative
Agent”), RBS SECURITIES INC., as lead arranger (in such capacity, together
with its successors and assigns in such capacity, the “Lead Arranger”)
and bookrunner (in such capacity, together with its successors and assigns in such
capacity, the “Bookrunner”), THE ROYAL BANK OF SCOTLAND PLC, as
collateral agent for the Secured Parties referred to herein (in such capacity,
together with its successors and assigns in such capacity, “Collateral Agent”),
BANCO ESPÍRITO SANTO S.A. NEW YORK BRANCH (“BESI”), COBANK, ACB (“CoBank”),
SANTANDER INVESTMENT SECURITIES INC. (“Santander”), and SG AMERICAS
SECURITIES, LLC (“SGAS”), as co-syndication agents (each in such
capacity, together with its respective successors and assigns in such capacity,
the a “Co-Syndication Agent” and, collectively, the “Co-Syndication
Agents”), as joint bookrunners (each in such capacity, together with its
respective successors and assigns in such capacity, a “Joint Bookrunner”
and, collectively, the “Joint Bookrunners”) and as joint lead arrangers
(each in such capacity, together with its respective successors and assigns in
such capacity, a “Joint Lead Arranger” and, collectively, the “Joint
Lead Arrangers”).

 

RECITALS

 

A.                                    Borrower
desires to develop, construct, install, finance, own, operate and maintain the
Project referred to herein to be located in Millard and Beaver Counties, Utah,
and, in connection therewith, Borrower has requested that the Lenders provide
the credit facility described herein.

 

B.                                    The Lenders are
willing to provide such credit facility upon the terms and subject to the
conditions set forth herein and in the other Credit Documents.

 

AGREEMENT

 

NOW,
THEREFORE, in consideration of the foregoing and the agreements, covenants and
promises set forth herein and in the other Credit Documents and in reliance
upon the representations and warranties set forth herein and therein, the
parties hereto agree as follows:

 

ARTICLE 1

DEFINITIONS

 

1.1                               DEFINITIONS.  For all purposes of the Credit Documents,
except as otherwise expressly provided, capitalized terms used in the Credit
Documents (including annexes, appendices, exhibits and schedules thereto) shall
have the meanings given to such terms in Exhibit A.

 

1.2                               RULES
OF INTERPRETATION.  Except as
otherwise expressly provided, the “Rules of Interpretation” set forth in Exhibit A
shall apply to the Credit Documents.

 

1

 

1.3                               ACCOUNTING
TERMS; GAAP.  Except as
otherwise expressly provided herein, all terms of an accounting or financial
nature shall be construed in accordance with GAAP, as in effect from time to
time and as applied by the accounting entity to which they refer; provided,
that if Borrower notifies Administrative Agent that Borrower requests an
amendment to any provision hereof to eliminate the effect of any change
occurring after the date hereof in GAAP or in the application thereof on the
operation of such provision (or if Administrative Agent notifies Borrower that
the Required Lenders request an amendment to any provision hereof for such
purpose), regardless of whether any such notice is given before or after such
change in GAAP or in the application thereof, then such provision shall be
interpreted on the basis of GAAP as in effect and applied immediately before
such change shall have become effective until such notice shall have been
withdrawn or such provision amended in accordance herewith.

 

ARTICLE 2

THE CREDIT FACILITY

 

2.1                               LOAN
FACILITY.

 

2.1.1                     Loan
Facility.

 

(a)                                 Availability.  Subject to the terms and conditions set forth
in this Agreement and in reliance upon the representations and warranties of
Borrower set forth herein, each Lender severally agrees to advance to Borrower
from time to time during the Loan Availability Period such loans as Borrower
may request pursuant to this Section 2.1.1 (individually, a “Loan”
and, collectively, the “Loans”), in an aggregate principal amount which,
when added to such Lender’s Proportionate Share of the aggregate principal
amount of all prior Loans made by such Lender, does not exceed such Lender’s
Loan Commitment.

 

(b)                                 Notice of
Borrowing; Denominations, Etc.  Borrower shall request Loans by delivering to
Administrative Agent a written notice in the form of Exhibit C-1,
appropriately completed (“Notice of Borrowing”), which contains or
specifies, among other things:

 

(i)                                     the portion of
the requested Borrowing that will be Base Rate Loans and the portion that will
be Eurodollar Loans;

 

(ii)                                  the aggregate
principal amount of the requested Borrowing, which shall be in the minimum
amount of $1,000,000 or an integral multiple of $100,000 in excess thereof; provided
that such minimum amount shall not apply to the final Borrowing of Loans;

 

(iii)                               the proposed
date of the requested Borrowing (which shall be a Business Day);

 

(iv)                              the initial
Interest Period requested for a Borrowing of a Eurodollar Loan;

 

(v)                                 a certification
by Borrower that the conditions set forth in Section 3.2 are satisfied as
of the date of the Notice of Borrowing;

 

2

 

(vi)                              a certification
by Borrower that, as of the date such requested Loan is proposed to be made,
the Loan proposed to be made on such date, when added with all other Loans,
does not exceed the Total Loan Commitment; and

 

(vii)                           the itemization
of the Project Costs to be paid with such Borrowing.

 

Notwithstanding
any provision to the contrary in this section, Borrower (x) shall request
no more than two Loan Borrowings per calendar month and (y) may not select
Eurodollar Loans if the obligations of the Lenders to make Eurodollar Loans
shall then be suspended pursuant to Section 2.6.  Borrower shall give each Notice of Borrowing
to Administrative Agent with at least the Minimum Notice Period applicable to
Loans of the Type requested.  Any Notice
of Borrowing shall be irrevocable and binding on Borrower.

 

(c)                                  Address of
Notice of Borrowing.  Each Notice
of Borrowing shall be delivered to Administrative Agent as provided in Section 13.1;
provided, however, that Borrower shall promptly deliver to
Administrative Agent the original of any Notice of Borrowing initially
delivered by facsimile or email.

 

(d)                                 Loan Principal
Payments.  Borrower
shall repay to Administrative Agent, for the account of each Lender, in full on
the Maturity Date the unpaid principal amount of all Loans made by such
Lender.  Borrower may not re-borrow the
principal amount of any Loan repaid.

 

2.1.2                     Interest
Provisions.

 

(a)                                 Interest Rate.  Subject to Section 2.4.3, Borrower shall
pay interest on the unpaid principal amount of each Loan from the date of
Borrowing of such Loan until the repayment thereof at either the Adjusted
Eurodollar Rate for Eurodollar Loans or at the Base Rate for Base Rate Loans, plus in each case the applicable Rate Margin.

 

(b)                                 Changes of Loan
Type.  The basis for determining the
interest rate with respect to any Loan may be changed from time to time as
specified in a Notice of Interest Terms delivered pursuant to
Section 2.1.6.  If on any day a Loan
is outstanding with respect to which notice has not been delivered to Administrative
Agent in accordance with the terms of this Agreement specifying the applicable
basis for determining the rate of interest, then for that day such Loan shall
bear interest determined by reference to the Base Rate.

 

(c)                                  Interest
Payment Dates.  Borrower
shall pay accrued interest on the unpaid principal amount of each Loan
(i) in the case of each Base Rate Loan, on the last Business Day of each
March, June, September and December, (ii) in the case of each
Eurodollar Loan, on the last day of each Interest Period related to such
Eurodollar Loan and, with respect to Interest Periods longer than three months,
the last Business Day of each third month in which such Eurodollar Loan is
outstanding, (iii) in all cases, for any Loan upon its conversion from one
Type of Loan to another Type of Loan, on the effective date of such conversion,
and (iv) in all cases, upon the repayment or prepayment (whether at stated
maturity or otherwise, and including any optional prepayments or Mandatory
Prepayments) of any Loan on the date of payment thereof in full.  Each date on which any such interest payment
is due is an “Interest Payment Date”.

 

3

 

(d)                                 Eurodollar Loan
Interest Periods.

 

(i)                                     Each Interest
Period selected by Borrower for all Eurodollar Loans shall be one, two, three
or six months; provided, however, that, (A) any Interest
Period which would otherwise end on a day which is not a Business Day shall be
extended to the next succeeding Business Day unless such next Business Day
falls in another calendar month, in which case such Interest Period shall end
on the immediately preceding Business Day; (B) any Interest Period which
begins on the last Business Day of a calendar month (or on a day for which
there is no numerically corresponding day in the calendar month at the end of
such Interest Period) shall end on the last Business Day of the last full
calendar month of such Interest Period; (C) Borrower may not select
Interest Periods which would leave a greater principal amount of Loans subject
to Interest Periods ending after a date upon which Loans are or may be required
to be repaid (including the Maturity Date) than the principal amount of Loans
scheduled to be outstanding after such date; (D) Eurodollar Loans for each
Interest Period shall be in the minimum amount of $1,000,000 or an integral
multiple of $100,000 in excess thereof; (E) during the Initial Period,
Borrower may not have selected Interest Periods of greater than one month; and
(F) Borrower may not at any time have outstanding more than (x) during
the period prior to Final Completion, six different Interest Period end-dates
relating to Eurodollar Loans, and (y) during the period after Final
Completion, three different Interest Period end-dates relating to Eurodollar
Loans.

 

(ii)                                  Borrower may
contact Administrative Agent at any time prior to the end of an Interest Period
for an indicative quotation of Interest Rates in effect at such time for given
Interest Periods and Administrative Agent shall promptly provide such quotation
with the understanding that such quotation may change by the time Borrower
formally requests a borrowing or continuation thereunder.  Borrower may, subject to Section 2.1.5,
select to continue any Eurodollar Loan for any permissible Interest Period by
communicating such selection to Administrative Agent by telephone or by email,
which selection shall be irrevocable. 
Borrower shall promptly confirm such telephonic or email notice to
Administrative Agent within the time periods required by Section 2.1.6 by
delivering to Administrative Agent by facsimile, an emailed pdf or
hand-delivery of a Notice of Interest Terms, appropriately completed in
accordance with the instructions contained in such form.  Borrower shall promptly deliver to Administrative
Agent any original Notice of Interest Terms initially delivered by facsimile or
email.  If Borrower fails to notify
Administrative Agent of the next Interest Period for any Eurodollar Loans in
accordance with this Section 2.1.2(d)(ii), such Loans shall automatically
convert to Base Rate Loans on the last day of the current Interest Period
therefor.  Administrative Agent shall as
soon as practicable notify Borrower of each determination of the Interest Rate
applicable to each Loan.

 

(e)                                  Interest
Computations.  All
computations of interest based on the Base Rate when calculated using the Prime
Rate shall be based upon a year of 365 days or, in the case of a leap
year, 366 days, shall be payable for the actual days elapsed (including
the first day but excluding the last day) in the period for which such interest
is payable, and shall be adjusted in accordance with any changes in the Base
Rate to take effect on the beginning of the day of such change in the Base
Rate.  All computations of interest based
on the Eurodollar Rate and the Federal Funds Rate shall be based upon a year of
360 days and shall be payable for the actual days elapsed (including the
first day but excluding the last day) in the period for which such 

 

4

 

interest or fees are payable.  Borrower agrees that all computations by
Administrative Agent of interest shall be conclusive and binding in the absence
of manifest error.

 

2.1.3                     [Reserved]

 

2.1.4                     Loan
Funding.

 

(a)                                 Notice to
Lenders.  Administrative Agent shall
promptly notify each Lender of the contents of each Notice of Borrowing and
Notice of Interest Terms.

 

(b)                                 Pro
Rata Loans.  All Loans shall be made on a pro rata basis by the Lenders in accordance with their
respective Proportionate Shares of such Loans, with each Borrowing to consist
of a Loan by each Lender equal to such Lender’s Proportionate Share of such
Loan.

 

(c)                                  Lender Funding.  Before 11:00 a.m. on the date of each
Borrowing of a Eurodollar Loan and before 2:00 p.m. on the date of each
Borrowing of a Base Rate Loan, each Lender shall make available to the account
of Administrative Agent most recently designated by it for such purpose, by
wire transfer, immediately available funds in Dollars, such Lender’s
Proportionate Share of the Loan to be made on such date.  The failure of any Lender to make the Loan to
be made by it as part of any Borrowing shall not relieve any other Lender of
its obligation hereunder to make its Loan on the date of such Loan.  No Lender shall be responsible for the
failure of any other Lender to make the Loan to be made by such other Lender on
the date of any Borrowing.

 

(d)                                 Failure of
Lender to Fund.  Unless
Administrative Agent shall have been notified by any Lender prior to the
applicable date of a Borrowing that such Lender does not intend to make
available to Administrative Agent the amount of such Lender’s Proportionate
Share of the Loan requested on such date, Administrative Agent may assume that
such Lender has made such amount available to Administrative Agent on such date
in accordance with the prior paragraph and Administrative Agent may, in its
sole discretion and in reliance upon such assumption, make available to
Borrower a corresponding amount on such date. 
If such corresponding amount is not in fact made available to
Administrative Agent by such Lender, Administrative Agent shall be entitled to
recover such corresponding amount on demand (and, in any event, within two
Business Days from the applicable date of such Borrowing) from such Lender
together with interest thereon, for each day from the applicable date of such
Borrowing until the date such amount is paid to Administrative Agent, at the
Federal Funds Rate for the first two Business Days after such date.  If such Lender pays such amount to
Administrative Agent, then such amount shall constitute such Lender’s
Proportionate Share of such Loan.  If
such Lender does not pay such corresponding amount forthwith upon
Administrative Agent’s demand therefor or within two Business Days from the
applicable date of such Borrowing, Administrative Agent shall promptly notify
Borrower and Borrower shall immediately pay such corresponding amount to
Administrative Agent together with interest thereon, for each day from the
applicable date of such Borrowing until the date such amount is paid to
Administrative Agent, at the rate then payable under this Agreement for Base
Rate Loans.  Any amounts repaid by
Borrower pursuant to this Section 2.1.4(d) shall be available for
re-borrowing if (i) the non-funding Lender makes available to
Administrative Agent the amount of such Lender’s 

 

5

 

Proportionate Share of the Loan requested, including
interest thereon, or (ii) a substitute Lender advances such repaid amounts
pursuant to Section 11.14.  Nothing
in this Section 2.1.4(d) shall be deemed to relieve any Lender from
its obligation to fulfill its obligations hereunder or to prejudice any rights
that Borrower may have against any Lender as a result of any default by such
Lender hereunder.

 

(e)                                  Construction
Account.  No later than 2:00 p.m.
on the date specified in each Notice of Borrowing, if the applicable conditions
precedent listed in Article 3 have been satisfied or waived in accordance
with the terms thereof and, subject to Section 2.1.4(d), to the extent
Administrative Agent shall have received the appropriate funds from the
Lenders, Administrative Agent shall make available the Loans requested in such
Notice of Borrowing (or so much thereof as shall have been determined pursuant
to Section 3.4) in Dollars and in immediately available funds, and shall
deposit or cause to be deposited the proceeds of such Loans into the
Construction Account.

 

2.1.5                     Conversion
of Loan Type; Continuation of Eurodollar Loans.  Upon notice as provided in
Section 2.1.6, Borrower may convert Loans from one Type to another Type or
continue a Eurodollar Loan; provided, that:

 

(a)                                 any conversion
of Eurodollar Loans into Base Rate Loans shall be made on, and only on, the
first day after the last day of an Interest Period for such Eurodollar Loans; provided
that such conversion may be made on another date so long as Borrower pays any
applicable Eurodollar Breakage Costs;

 

(b)                                 Loans shall be
converted into Eurodollar Loans only in amounts of $1,000,000 and increments of
$100,000  in excess thereof;

 

(c)                                  any portion of
a Loan maturing or required to be repaid in less than one month may not be
converted into or continued as a Eurodollar Loan;

 

(d)                                 notwithstanding
any contrary provision hereof, if an Event of Default has occurred and is
continuing, Administrative Agent or the Required Lenders may require, by notice
to Borrower (provided that if such Event of Default is an Event of
Default under Section 8.1.2 applicable to Borrower, then the following
shall be automatic rather than following notice), that (i) no outstanding
Loan may be converted to or continued as a Eurodollar Loan and (ii) unless
repaid, each Eurodollar Loan shall be converted to a Base Rate Loan at the end
of the Interest Period applicable thereto; and

 

(e)                                  any portion of
a Eurodollar Loan that cannot be converted or continued as a Eurodollar Loan,
or with respect to which Borrower fails to give a timely Notice of Interest
Terms, appropriately completed in accordance with the instructions contained in
such form, shall be converted at the end of an Interest Period then in effect
for such Eurodollar Loan into a Base Rate Loan.

 

2.1.6                     Notice
of Interest Terms.  Borrower shall
request a Loan conversion or continuation, as the case may be, by delivering to
Administrative Agent a Notice of Interest Terms in the form of Exhibit C-2,
appropriately completed in accordance with the instructions contained in such
form (a “Notice of Interest Terms”). 
Borrower shall deliver each Notice of 

 

6

 

Interest Terms within the applicable Minimum Notice
Period.  Any Notice of Interest Terms
shall be irrevocable.

 

2.1.7                     Prepayments.

 

(a)                                 Terms of All
Prepayments.

 

(i)                                     Upon the
prepayment of any Loan (whether such prepayment is an optional prepayment under
Section 2.1.7(b) or a Mandatory Prepayment), Borrower shall pay to
Administrative Agent for the account of each Lender which made such Loan,
(A) all accrued interest to the date of such prepayment on the amount of
such Loan prepaid, (B) all accrued fees to the date of such prepayment
relating to the amount of such Loan being prepaid, and (C) if such
prepayment is the prepayment of a Eurodollar Loan on a day other than the last
day of an Interest Period for such Eurodollar Loan, all Eurodollar Breakage
Costs incurred by such Lender as a result of such prepayment.

 

(ii)                                  Notwithstanding
the foregoing, but only in respect of any Mandatory Prepayment, Borrower shall
have the right, by giving five Business Days’ notice to Administrative Agent,
in lieu of prepaying a Eurodollar Loan on a day other than the last day of an
Interest Period for such Eurodollar Loan, to deposit or cause Administrative
Agent to deposit into the Repayment Account an amount equal to the Eurodollar
Loans to be prepaid.  Such funds shall be
held in the Repayment Account until the expiration of the Interest Period
applicable to the Eurodollar Loan to be prepaid at which time such amount shall
be used to prepay such Eurodollar Loan and any interest accrued on such amount
shall be deposited into the Revenue Account. 
The deposit of amounts into the Repayment Account shall be deemed to
satisfy Borrower’s obligation to make the relevant Mandatory Prepayment on its
due date, but shall not, however, constitute a prepayment of Loans and all
Loans to be prepaid using the proceeds from the Repayment Account shall
continue to accrue interest at the then applicable interest rate for such Loans
until actually prepaid.  All amounts in
the Repayment Account shall only be invested in Permitted Investments as
directed in the sole discretion of Administrative Agent.  Borrower shall bear the expense and risk of
any such investment.

 

(b)                                 Optional
Prepayments.  Subject to
Section 2.1.7(a), Borrower may, at its option and without premium or
penalty, upon three Business Days’ notice to Administrative Agent, prepay any
Loans in whole or from time to time in part in minimum principal amounts of
$1,000,000 or an incremental multiple of $100,000 in excess thereof (provided,
that such minimum amounts shall not apply to a prepayment of all outstanding
Loans).

 

(c)                                  Mandatory
Prepayments.  Borrower
shall prepay Loans (i) to the extent required by Sections 7.4, 7.5
and 7.6, (ii) with the Net Cash Proceeds received in connection with the
issuance of Debt (other than Debt permitted under the Credit Documents),
(iii) with the Net Cash Proceeds of any Equity Issuance (including, but
not limited to any tax equity contribution relating to Borrower or the
Project), (iv) with the proceeds of any Grant unless the Tax Equity
Contribution Conditions have been met, (v) with any Prepayment Amount, or
(vi) as required under any other provision of the Credit Documents which
requires such prepayment (each such prepayment, a “Mandatory Prepayment”).  The provisions of this Section 2.1.7(c) 

 

7

 

shall not be deemed to be implied consent to any
issuance, incurrence or sale otherwise prohibited by the terms and conditions
of this Agreement.

 

(d)                                 Notice of Prepayment.  Borrower shall notify Administrative Agent by
notice of any prepayment hereunder (i) in the case of prepayment of a
Eurodollar Loan, not later than 11:00 a.m. three Business Days before the
date of prepayment, (ii) in the case of prepayment of a Base Rate Loan,
not later than 11:00 a.m. two Business Days before the date of
prepayment.  Each such notice shall be
irrevocable.  Each such notice shall
specify the prepayment date and the principal amount of each Loan or portion
thereof to be prepaid and, in the case of a Mandatory Prepayment, a reasonably
detailed calculation of the amount of such prepayment.  If any notice of prepayment is given, the
amount specified in such notice shall be due and payable on the date specified
therefor, together with accrued interest to the payment date on the principal
amount to be prepaid.  Upon receipt of
any notice of prepayment, Administrative Agent shall promptly advise the
Lenders of the contents thereof.

 

(e)                                  Repayment
Account.  All prepayments (whether
optional prepayments or Mandatory Prepayments) shall be deposited in the
Repayment Account for immediate application to the repayment of Loans (subject
to Sections 2.1.7(a)(ii) and 2.7.1).

 

2.2                               TOTAL
COMMITMENTS.

 

2.2.1                     Total
Loan Commitment.  The
aggregate principal amount of all Loans made by the Lenders shall not exceed
$247,000,000, as such amount may be reduced
pursuant to Section 2.2.2 (such amount, so reduced from time to time, the “Total
Loan Commitment”).

 

2.2.2                     Reductions
and Cancellations.

 

(a)                                 Voluntary Reductions
and Cancellations.  Borrower
may, from time to time upon five Business Days notice to Administrative Agent,
permanently reduce (without premium or penalty), by an amount of $1,000,000  or an integral multiple of $100,000 in
excess thereof or cancel in its entirety the Total Loan Commitment, subject to
the provisions of Section 2.1.7(b) and this
Section 2.2.2(a).  Borrower may not
reduce or cancel the Total Loan Commitment if, after giving effect to such
reduction or cancellation, (a) the aggregate principal amount of all Loans
then outstanding would exceed the Total Loan Commitment, (b) the Available
Construction Funds would not, in the reasonable judgment of Administrative
Agent and the Independent Engineer, equal or exceed remaining Project Costs
(including budgeted contingency (or the appropriate part thereof) and
anticipated Eurodollar Breakage Costs, if any, arising from any prepayment
related to such reduction or cancellation), or (c) such reduction or
cancellation would cause a Default or Event of Default or have a Material
Adverse Effect.

 

(b)                                 Mandatory
Reduction.  In the
event that there is an update to the Cost Segregation Report, as provided in Section 5.23,
that anticipates a reduction in the expected amount of the Grant, as compared
to the prior Cost Segregation Report, the Total Loan Commitment shall be
provisionally reduced by an amount equal to the amount of such reduction multiplied by 95%. 
Such reduction shall become permanent upon achievement of the Commercial
Operation Date in the event that no update to the Cost Segregation Report at
that 

 

8

 

time has restored the expected amount of the Grant
(without taking into account any increase in the expected amount of the Grant
resulting from expenditure of contingency).

 

(c)                                  Commitment Fee
for Reductions and Cancellations.  Borrower shall pay to Administrative Agent
any Commitment Fee then due in respect of the canceled or reduced portion of
the Total Loan Commitment (if applicable) upon any cancellation or reduction
and, from the effective date of any cancellation or reduction, the Commitment
Fee shall be computed on the basis of the amount of the Total Loan Commitment
as so canceled or reduced.  No such
reduction shall apply to Total Loan Commitments that are only provisionally
reduced pursuant to Section 2.2.2(b).

 

(d)                                 Increase or
Reinstatement; Ratable Application.  Once reduced or canceled, the applicable
Commitment may not be increased or reinstated. 
Any reduction in the Total Loan Commitment pursuant to this
Section 2.2.2 shall be applied ratably to each Lender’s Loan Commitments
in accordance with Section 2.5.1.

 

2.3                               FEES.

 

2.3.1                     Administrative
Agent Fees.  Borrower
shall pay to Administrative Agent solely for Administrative Agent’s account the
fees and other amounts described in the Fee Letter.

 

2.3.2                     Commitment
Fee.  On the last Business Day in
each calendar quarter and on and until the Maturity Date (or, if the Total Loan
Commitment is canceled prior to such date, on the date of such cancellation),
Borrower shall pay to Administrative Agent, for the benefit of the Lenders
(other than any Defaulting Lender which becomes a Defaulting Lender by virtue
of clause (a) of the definition of “Defaulting Lender”), accruing from the
Closing Date or the first day of such quarter, as the case may be, a commitment
fee for such quarter (or portion thereof) then ending equal to the product of
(a) the daily average Available Loan Commitment (excluding any of the
Available Loan Commitment of any such Defaulting Lender) for such quarter (or
portion thereof), multiplied by (b) a
fraction, the numerator of which is the number of days in such quarter (or
portion thereof) and the denominator of which is the number of days in that
calendar year (365 or 366, as the case may be), multiplied by (c) 0.75%.

 

2.3.3                     Arrangement
Fees.  Borrower shall pay to the Lead
Arranger, solely for the account of such Person  in such capacity, the fees as described and in the manner set
forth in the Fee Letter.

 

2.4                               OTHER
PAYMENT TERMS.

 

2.4.1                     Place
and Manner.  Except as
otherwise provided in the Fee Letter or any other provision contained in any of
the Credit Documents, Borrower shall make all payments due hereunder to
Administrative Agent, to the account in the name of Milford Wind Corridor
Phase II, Account No. 400931052, at JPMorgan Chase Bank, ABA
No. 021000021, or such other account as Administrative Agent shall notify
Borrower from time to time, in Dollars and in immediately available funds not
later than 12:00 noon on the date on which such payment is due.  Any payment made after such time on any day
shall be deemed received on the Business Day after such payment is
received.  Administrative Agent shall
distribute to each Secured Party each such payment received by Administrative
Agent for such Secured Party to be applied in accordance 

 

9

 

with the terms of this Agreement, such disbursement
to occur on the day such payment is received if received by 12:00 noon or
if otherwise reasonably possible, or otherwise on the next Business Day.  Upon its acceptance and recording in the
Register of any Assignment and Assumption entered into under Section 13.17,
from and after the effective date specified therein, Administrative Agent shall
make all the payments hereunder in respect of this Agreement interest assigned
thereby to the Lender assignee thereunder, and the parties to such Assignment
and Assumption shall make all appropriate adjustments in such payments for
periods prior to such effective date directly between themselves.

 

2.4.2                     Date.  Whenever any payment due hereunder shall fall
due on a day other than a Business Day, such payment shall be made on the next
succeeding Business Day, and such extension of time shall be included in the
computation of interest or fees, as the case may be, without duplication of any
interest or fees so paid in the next subsequent calculation of interest or fees
payable; provided, however, that, if such extension would cause
payment of interest on or principal of a Eurodollar Loan to be made in the next
succeeding calendar month, such payment shall be made on the immediately
preceding Business Day.

 

2.4.3                     Default
Rate.  Notwithstanding anything to
the contrary herein, upon the occurrence and during the continuation of any
Event of Default, the outstanding principal amount of all Loans and, to the
extent permitted by applicable Legal Requirements, any accrued but unpaid
interest payments thereon and any accrued but unpaid fees and other amounts
hereunder, shall thereafter bear interest (including post-petition interest in
any proceeding under applicable Bankruptcy Laws) from the date of such Event of
Default until the Event of Default is cured or waived, after as well as before
judgment, payable upon demand at a rate that is (a) 2% per annum in excess
of the interest rate then otherwise payable under this Agreement with respect
to the applicable Loans or (b) in the case of any such fees and other
amounts, at a rate that is 2% per annum in excess of the interest rate then
otherwise payable under this Agreement for Base Rate Loans (the “Default
Rate”).  Payment or acceptance of the
increased rates of interest provided for in this Section is not a
permitted alternative to timely payment and shall not constitute a waiver of
any Event of Default or otherwise prejudice or limit any rights or remedies of
any Secured Party.

 

2.4.4                     Net
of Taxes, Costs, Etc.

 

(a)                                 Taxes.  Any and all payments to or for the benefit of
any Secured Party by Borrower under any Credit Document shall be made free and
clear of and without deduction, set-off or counterclaim of any kind whatsoever
and in such amounts as may be necessary in order that all such payments, after
deduction for or on account of any present or future taxes, assessment, levies,
imposts, duties, deductions, charges or withholdings, and all liabilities with
respect thereto (excluding (i) income or franchise taxes imposed on or
measured by the net income, net profits or capital of such Secured Party by any
jurisdiction or any political subdivision or taxing authority thereof or
therein as a result of a connection between such Secured Party and such
jurisdiction or political subdivision, unless such connection results solely
from such Secured Party’s executing, delivering or performing its obligations
or receiving a payment under, or enforcing, this Agreement (such excluded taxes
described in (i) being hereinafter referred to as “Excluded Lender
Income Taxes”), and (ii) any withholding tax that is imposed on
amounts payable to a Secured Party at the time it becomes a party to this
Agreement, 

 

10

 

except to the extent that such Secured Party’s
assignor was entitled to receive additional amounts from Borrower with respect
to such withholding tax pursuant to this Section 2.4.4) (all such
non-excluded taxes, assessment, levies, imposts, duties, deductions, charges or
withholdings and liabilities being hereinafter referred to as “Taxes”),
shall be equal to the amounts otherwise specified to be paid under the Credit
Documents.  If Borrower shall be required
by applicable Legal Requirements to withhold or deduct any Taxes from or in
respect of any sum payable under any Credit Document to any Secured Party,
(i) subject to such Secured Party’s compliance with Section 2.4.6,
the sum payable shall be increased as may be necessary so that after making all
required deductions (including deductions applicable to additional sums payable
under this Section 2.4.4), such Secured Party receives an amount equal to
the sum it would have received had no such deductions been made,
(ii) Borrower shall make such deductions and (iii) Borrower shall pay
the full amount deducted to the relevant taxation authority or other authority
in accordance with applicable Legal Requirements.  In addition, Borrower agrees to pay any
present or future stamp, recording or documentary taxes and any other excise or
property taxes, charges or similar levies (not including Excluded Lender Income
Taxes) that arise under the laws of the United States of America, the State of
New York, the Project Jurisdiction, the state of Borrower’s formation or any
other jurisdiction from any payment made under any Credit Document or from the
execution or delivery or otherwise with respect to any Credit Document
(hereinafter referred to as “Other Taxes”).

 

(b)                                 Tax Indemnity.  Borrower shall indemnify such Secured Party
for and hold it harmless against the full amount of Taxes and Other Taxes
(including any Taxes or Other Taxes imposed by any jurisdiction on amounts
payable under this Section 2.4.4) paid by any Secured Party, or any
liability (including penalties, interest and expenses) arising therefrom or
with respect thereto, whether or not such Taxes or Other Taxes were correctly
or legally asserted.  Payments by
Borrower pursuant to this indemnification shall be made within 30 days
from the date such Secured Party makes written demand therefor (submitted
through Administrative Agent), which demand shall be accompanied by a
certificate describing in reasonable detail the basis thereof; provided,
that if such Secured Party procures the refund of any indemnified amount, such
Secured Party shall pay the amount of such refund, net of costs and taxes
incurred by such Secured Party as a result of such refund, to Borrower within
30 days after receipt of such refund amount, provided, however,
that for the avoidance of doubt, this sentence shall not be construed to grant
the Borrower any right to review the tax returns of such Secured Party.

 

(c)                                  Notice.  Within 30 days after the date of any
payment of Taxes by Borrower, Borrower shall furnish to Administrative Agent,
at its address referred to in Section 13.1.1, the original or a certified
copy of a receipt evidencing payment thereof or, if such receipt is not obtainable,
other evidence of such payment by Borrower reasonably satisfactory to
Administrative Agent.  Borrower shall
compensate each Secured Party for all reasonable losses and expenses sustained
by such Secured Party as a result of any failure by Borrower to so furnish such
copy of such receipt.  In the event of
any payment hereunder by or on behalf of Borrower through an account or branch
outside the United States or on behalf of Borrower by a payor that is not a United
States person, if Borrower determines that no Taxes are payable in respect
thereof, Borrower shall furnish, or cause such payor to furnish, to
Administrative Agent an opinion of counsel reasonably acceptable to
Administrative Agent stating that such payment is exempt from Taxes.  For purposes of this Section, the terms “United
States” and “United States person” have the respective meanings specified in
Section 7701 of the Code.

 

11

 

2.4.5                     Application
of Payments.  Except as
otherwise expressly provided in any Credit Document, payments made under the
Credit Documents and other amounts received by the Secured Parties under the
Credit Documents shall first be applied to any fees, costs, charges or expenses
payable to the Secured Parties under the Credit Documents, next to any accrued
but unpaid interest then due and owing, then to outstanding principal then due
and owing or otherwise to be prepaid, in each case, such application to be made
on a pro rata basis among such applicable Persons.

 

2.4.6                     Withholding
Exemption Certificates. 
Administrative Agent on the Closing Date and each Lender upon becoming a
Lender and each Person to which any Lender grants a participation (or otherwise
transfers its interest in this Agreement) agree that such Lender or Person will
deliver to Administrative Agent and Borrower either (a) if such Lender or
Person is organized under the laws of the United States or any political
subdivision thereof, an executed copy of a United States Internal Revenue
Service Form W-9, or (b) if such Lender or Person is not organized
under the laws of the United States or any political subdivision thereof two
duly completed copies of United States Internal Revenue Service
Form W-8BEN or W-8ECI or successor applicable form, as the case may be
(certifying therein (i) in case such Lender is not a “bank” within the
meaning of Section 881(c)(3)(A) of the Code, an entitlement to a
reduction in, or an exemption from, United States withholding taxes with
respect to payments of interest, and (ii) otherwise, an entitlement to an
exemption from United States withholding taxes) and, in case such Lender is not
a “bank” within the meaning of Section 881(c)(3)(A) of the Code, a
duly completed and executed non-bank certificate in the form of Exhibit I.  Each Lender which delivers to Borrower and
Administrative Agent a Form W-8BEN or W-8ECI pursuant to the preceding
sentence further undertakes to deliver to Borrower and Administrative Agent
further copies of the Form W-8BEN or W-8ECI, or successor applicable forms,
or other manner of certification or procedure, as the case may be, on or before
the date that any such form expires or becomes obsolete or within a reasonable
time after gaining knowledge of the occurrence of any event requiring a change
in the most recent forms previously delivered by it to Borrower, and such
extensions or renewals thereof as may reasonably be requested by Borrower,
certifying in the case of a Form W-8BEN or W-8ECI that such Lender is
entitled to receive payments under this Agreement without deduction or
withholding of any United States federal income taxes, unless in any such cases
any change in treaty, law or regulation has occurred prior to the date on which
any such delivery would otherwise be required which renders such forms inapplicable
or which would prevent a Lender from duly completing and delivering any such
form with respect to it and such Lender advises Borrower that it is not capable
of receiving payments without any deduction or withholding of United States
federal income tax, and in the case of Form W-8BEN or W-8ECI, establishing
an exemption from United States backup withholding tax.  Notwithstanding any other provision of this
Section 2.4.6, a Lender shall not be required to deliver any form pursuant
to this Section 2.4.6 that such Lender is not legally able to
deliver.  Borrower shall not be obligated
to pay any additional amounts in respect of United States federal income tax
pursuant to Section 2.4.4 (or make an indemnification payment pursuant to
Section 2.4.4) to any Lender (including any entity to which any Lender
sells, assigns, grants a participation in, or otherwise transfers its rights
under this Agreement) to the extent the obligation to pay such additional
amounts (or such indemnification) would not have arisen but for a failure of
such Lender to comply with its obligations under this Section 2.4.6.

 

12

 

2.4.7                     Authorization.  Borrower hereby authorizes Administrative
Agent and each Lender, if and to the extent payment owed to such Lender is not
made when due, to charge from time to time against any or all of Borrower’s
accounts with such Lender any amounts so due.

 

2.4.8                     Administrative
Agent Assumption.  Unless
Administrative Agent shall have been notified by Borrower prior to the date on
which any payment from Borrower is due hereunder that Borrower does not intend
to make such payment in full, Administrative Agent may assume that Borrower has
made such payment in full to Administrative Agent on such date and
Administrative Agent may, in its sole discretion and in reliance upon such
assumption, cause to be distributed to each Secured Party on such due date an
amount equal to the amount then due such Secured Party.  If and to the extent Borrower shall not have
so made such payment in full to Administrative Agent, each Secured Party shall
repay to Administrative Agent forthwith on demand such amount distributed to
such Secured Party together with interest thereon, for each day from the date
such amount is distributed to such Secured Party until the date such Secured
Party repays such amount to Administrative Agent, at the Federal Funds Rate.

 

2.5                               PRO
RATA TREATMENT.

 

2.5.1                     Borrowings,
Commitment Reductions, Etc.  Except as otherwise provided herein,
(a) each Borrowing and each reduction of the Total Loan Commitment shall
be made or allocated among the Lenders pro rata
according to their respective Proportionate Shares of the Loans or Loan
Commitments, as the case may be and (b) each payment of principal of and
interest on Loans shall be made or shared among the Lenders holding such Loans pro rata according to their respective unpaid principal
amounts of such Loans held by such Lenders, and (c) each payment of
Commitment Fee upon reduction of the Total Loan Commitment shall be shared
among the Lenders pro rata according to
(i) their respective Proportionate Shares of the Total Loan Commitment,
and (ii) in the case of each Lender which becomes a party to this
Agreement hereunder after the Closing Date, the date upon which such Lender so
became a party hereunder.

 

2.5.2                     Sharing
of Payments, Etc.  If
any Secured Party shall obtain any payment (whether voluntary, involuntary,
through the exercise of any right of set-off, or otherwise) on account of Loans
owed to it, in excess of its Proportionate Share of payments on account of such
Loans obtained by all Secured Parties entitled to such payments, such Secured
Party shall forthwith purchase from the other Secured Parties such
participation in the Loans as shall be necessary to cause such purchasing
Secured Party to share the excess payment ratably with each of them; provided,
that if all or any portion of such excess payment is thereafter recovered from
such purchasing Secured Party, such purchase from such Secured Party shall be
rescinded and each other Secured Party shall repay to the purchasing Secured
Party the purchase price to the extent of such recovery together with an amount
equal to such other Secured Party’s Proportionate Share (according to the
proportion of (a) the amount of such other Secured Party’s required
repayment to (b) the total amount so recovered from the purchasing Secured
Party) of any interest or other amount paid or payable by the purchasing
Secured Party in respect of the total amount so recovered.  Borrower agrees that any Secured Party so
purchasing a participation from another Secured Party pursuant to this
Section 2.5.2 may, to the fullest extent permitted by law, exercise all
its rights of payment (including the right of set-off) with respect to such 

 

13

 

participation as fully as if such Secured Party were
the direct creditor of Borrower in the amount of such participation.

 

2.6                               CHANGE
OF CIRCUMSTANCES.

 

2.6.1                     Inability
to Determine Rates.  If, on or
before the first day of any Interest Period for any Eurodollar Loans,
(a) Administrative Agent determines that the Adjusted Eurodollar Rate for such Interest Period cannot be
adequately and reasonably determined due to the unavailability of funds in or
other circumstances affecting the London interbank market, or (b) Lenders
holding aggregate Proportionate Shares of 25% or more of the Loan Commitments
shall advise Administrative Agent that (i) the rates of interest for such
Eurodollar Loans do not adequately and fairly reflect the cost to such Lenders
of making or maintaining such Loans or (ii) deposits in Dollars in the
London interbank market are not available to such Lenders (as conclusively
certified by each such Lender in good faith to Administrative Agent and to
Borrower) in the ordinary course of business in sufficient amounts to make
and/or maintain their Eurodollar Loans, then Administrative Agent shall
immediately give notice of such condition to Borrower and the Lenders.  After the giving of any such notice and until
Administrative Agent shall otherwise notify Borrower and the Lenders that the
circumstances giving rise to such condition no longer exist Borrower’s right to
request the making of or conversion to, and the Lenders’ obligations to make or
convert to, Eurodollar Loans shall be suspended and any Eurodollar Loans
outstanding at the commencement of any such suspension shall be converted at
the end of the then current Interest Period for such Loans into Base Rate Loans
unless such suspension has then ended. 
In the alternative, if clause (b)(i) has been triggered and
Borrower so requests, Borrower’s right to request the making of or conversion
to, and the Lenders’ obligations to make or convert to, Eurodollar Loans shall
not be suspended and any Eurodollar Loans outstanding at the commencement of
any such suspension need not be converted at the end of the then current
Interest Period for such Loans into Base Rate Loans, and, until Administrative
Agent shall otherwise notify Borrower and the Lenders that the circumstances
giving rise to such condition no longer exist, Eurodollar Loans shall bear
interest at a rate equal to the weighted average of the rates per annum
(calculated on the basis of a year of 365 days) certified to Administrative
Agent by each Lender as soon as practicable but, in any event, before interest
is due to be paid in respect of such Interest Period, constituting the cost to
such Lender of funding its participation in such Borrowing from whatever source
it may reasonably select; provided that, in calculating such average the
Administrative Agent shall ignore the highest and the lowest rate so certified
and any Lender that does not respond (A) within 5 Business Days or (B) prior
to interest being due in respect of such Interest Period shall be deemed to
have certified the applicable Eurodollar Rate.

 

2.6.2                     Illegality.  If, after the date of this Agreement, the
adoption of any Governmental Rule, any change in any Governmental Rule or
the application or requirements thereof (whether such change occurs in
accordance with the terms of such Governmental Rule as enacted, as a
result of amendment, or otherwise), any change in the interpretation or
administration of any Governmental Rule by any Governmental Authority, or
compliance by any Lender or Borrower with any request or directive (whether or
not having the force of law, but if not having the force of law, being of a
type with which a Lender customarily complies) of any Governmental Authority (a
“Change of Law”) shall make it unlawful or impossible for any Lender to
make or maintain any Eurodollar Loan, then such Lender shall immediately notify

 

14

 

Administrative Agent and Borrower of such Change of
Law.  Upon receipt of such notice,
(a) Borrower’s right to request the making of or conversion to, and the
Lender’s obligations to make or convert to, Eurodollar Loans shall be suspended
for so long as such condition shall exist, and (b) Borrower shall at its
option, upon request of such Lender, either (i) pursuant to
Section 2.1.5, convert any then outstanding Eurodollar Loans into Base
Rate Loans, in accordance with such request, immediately or at the end of the
current Interest Periods for such Loans, or (ii) prepay pursuant to
Section 2.1.7 any then outstanding Eurodollar Loans.  Any conversion or prepayment of Eurodollar
Loans made pursuant to the preceding sentence prior to the last day of an
Interest Period for such Loans shall be deemed a prepayment thereof for
purposes of Section 2.7.

 

2.6.3                     Increased
Costs.  If, after the date of this
Agreement, any Change of Law:

 

(a)                                 shall subject
any Lender to any tax, duty or other charge with respect to any Eurodollar Loan
or Commitment in respect thereof, or shall change the basis of taxation of
payments by Borrower to any Lender on such a Loan or with respect to any such
Commitment (except for Taxes, Other Taxes or changes in the rate of taxation of
Excluded Lender Income Taxes); or

 

(b)                                 shall impose,
modify or hold applicable any reserve, special deposit or similar requirement
(without duplication of any reserve requirement included within the applicable
Interest Rate through the definition of “Reserve Requirement”) against assets
held by, deposits or other liabilities in or for the account of, advances or
loans by, or any other acquisition of funds by any Lender for any Eurodollar
Loan; or

 

(c)                                  shall impose on
any Lender any other condition directly related to any Eurodollar Loan or
Commitment in respect thereof;

 

and
the effect of any of the foregoing is to increase the cost to such Lender of
making, issuing, creating, renewing, participating in (subject to the
limitations in Section 13.17.3) or maintaining any such Eurodollar Loan or
Commitment in respect thereof or to reduce any amount receivable by such Lender
hereunder, then Borrower shall from time to time, within 10 days after
demand by such Lender, pay to such Lender additional amounts sufficient to
reimburse such Lender  for such
increased costs or to compensate such Lender  for
such reduced amounts.  A certificate
setting forth in reasonable detail the amount of such increased costs or
reduced amounts and the basis for determination of such amount, submitted by
such Lender  to Borrower, shall, in the
absence of manifest error, be conclusive and binding on Borrower for purposes
of this Agreement.

 

2.6.4                     Capital
Requirements.  If any
Lender  determines that (a) the adoption,
effectiveness, phase-in or applicability after the date hereof of any law, rule or
regulation (or any provision thereof) regarding capital adequacy, or any change
therein or in the interpretation or administration thereof by any Governmental
Authority charged with the interpretation or administration thereof, or
compliance by any Lender  with any
guideline, request or directive regarding capital adequacy (whether or not
having the force of law) of any such Governmental Authority has or would have
the effect of reducing the rate of return on the capital of such Lender, or the
Lending Office of such Lender  or any Person
controlling such Lender  (a “Capital
Adequacy Requirement”) as a consequence of, or with reference to, such
Lender’s Loans or 

 

15

 

Loan Commitments or other obligations hereunder to a
level below that which such Lender  or such Person
could have achieved but for such adoption, effectiveness, phase-in,
applicability, change or compliance (taking into consideration the policies of
such Lender  or such controlling Person with
regard to capital adequacy), and (b) the amount of capital maintained by
such Lender or such Person which is attributable to or based upon the Loans,
the Commitments or this Agreement must be increased as a result of such Capital
Adequacy Requirement (taking into account such Lender’s or such Person’s
policies with respect to capital adequacy), then Borrower shall pay to such
Lender or such Person, within 10 days after delivery of demand by such
Lender or such Person, such amounts as such Lender or such Person shall
reasonably determine are necessary to compensate such Lender or such Person for
such reduced return or the increased costs to such Lender or such Person of
such increased capital.  A certificate of
such Lender or such Person, setting forth in reasonable detail the computation
of any such increased costs, delivered to Borrower by such Lender or such
Person shall, in the absence of manifest error, be conclusive and binding on
Borrower for purposes of this Agreement.

 

2.6.5                     Notice.  Each Lender shall notify Borrower of any
event occurring after the date of this Agreement that will entitle such Lender
to compensation pursuant to this Section 2.6, as promptly as practicable,
and in no event later than 180 days after the principal officer of such
Lender responsible for administering this Agreement obtains knowledge thereof; provided,
that any Lender’s failure to notify Borrower within such 180-day period shall
not relieve Borrower of its obligation under this Section 2.6 with respect
to claims arising prior to the end of such period, but shall relieve Borrower
of its obligations under this Section 2.6 with respect to the time between
the end of such period and such time as Borrower receives notice from the
indemnitee as provided herein, except that if the event which entitles such
Lender to compensation under this Section 2.6 shall be retroactive to a
time prior to the commencement of such 180-day period, such period shall
commence from such earlier date.  No
Person purchasing from a Lender a participation in the Loan Commitment (as
opposed to an assignment) shall be entitled to any payment from or on behalf of
Borrower pursuant to Section 2.6.3 or Section 2.6.4 which would be in
excess of the applicable proportionate amount (based on the portion of the Loan
Commitment) which would then be payable to such Lender if such Lender had not
sold a participation in that portion of the Loan Commitment.

 

2.7                               FUNDING
LOSSES.

 

2.7.1                     Eurodollar
Funding Costs.  If Borrower
shall (a) repay or prepay any Eurodollar Loan on any day other than the
last day of an Interest Period for such Loan (whether an optional prepayment or
a Mandatory Prepayment), (b) fail to borrow any Eurodollar Loan in
accordance with a Notice of Borrowing delivered to Administrative Agent
(whether as a result of the failure to satisfy any applicable conditions or
otherwise), (c) fail to convert any Loan into a Eurodollar Loan in
accordance with a Notice of Interest Terms delivered to Administrative Agent
(whether as a result of the failure to satisfy any applicable conditions or
otherwise), (d) fail to continue any Eurodollar Loan in accordance with a
Notice of Interest Terms delivered to Administrative Agent, (e) fail to
make any prepayment in accordance with any notice of prepayment delivered to
Administrative Agent, (f) fail to pay when due the principal amount of or
interest on any Eurodollar Loan, or (g) convert a Eurodollar Loan to a
Base Rate Loan on any date other than the last day of an Interest Period, then
Borrower shall, within five days after demand by any Lender, indemnify such
Lender and hold it harmless from any and all costs, 

 

16

 

expenses, losses and liabilities (collectively, the “Eurodollar
Breakage Costs”) incurred by such Lender as a result of such repayment,
prepayment, conversion or failure. 
Borrower understands and agrees that Eurodollar Breakage Costs may
include costs, expenses, losses and liabilities, but not loss of the Rate
Margin, incurred by a Lender as a result of funding and other contracts entered
into by such Lender to fund Eurodollar Loans or otherwise arising from the
redeployment of funds obtained by it or from fees payable to terminate the
deposits from which such funds are obtained. 
If for any reason (other than final Maturity of the Loans or upon
acceleration of the Loans upon the occurrence and during the continuation of an
Event of Default) Borrower is required to repay a portion of the Loans pursuant
to the terms of any Credit Document and such repayment would cause Eurodollar
Breakage Costs, Administrative Agent agrees, at Borrower’s request, to hold any
such funds and only apply such funds to the repayment of the Loans upon the
last day of Interest Periods in order to minimize Eurodollar Breakage Costs; provided,
that Borrower shall remain liable for any additional interest that accrues on
such held funds.

 

2.7.2                     Calculation
of Eurodollar Breakage Costs.  Each Lender demanding payment under this
Section 2.7 shall deliver to Borrower a certificate setting forth in
reasonable detail the basis for and the amount of costs, expenses and losses
for which the demand is made.  Such
certificate so delivered to Borrower shall, in the absence of manifest error,
be conclusive and binding as to the payable amount for purposes of this
Agreement.  For the purpose of
calculation of any Eurodollar Breakage Costs each Lender shall be deemed to
have actually funded its relevant Eurodollar Loan through the purchase of a
deposit bearing interest at the Adjusted
Eurodollar Rate in an amount equal to the amount of such Eurodollar Loan
and having a maturity comparable to the relevant Interest Period, provided,
however, that each Lender may fund each of its Eurodollar Loans in any
manner it deems appropriate, and the foregoing assumption shall be utilized
only for the calculation of amounts payable under Section 2.7.1.

 

2.8                               ALTERNATE
OFFICE; MINIMIZATION OF COSTS.

 

2.8.1                     To the extent
reasonably possible, each Lender shall designate an alternative Lending Office
with respect to its Eurodollar Loans and otherwise take any reasonable actions
to reduce any liability of Borrower to any Lender under Section 2.4.4,
2.6.3 or 2.6.4, to avoid triggering clause (b)(i) of Section 2.6.1 or
to avoid the unavailability of any Type of Loans under Section 2.6.2 so
long as (in the case of the designation of an alternative Lending Office) such
Lender, in its sole discretion, determines that (a) such designation is
not disadvantageous to such Lender and (b) such actions would eliminate or
reduce a material liability to such Lender. 
Borrower hereby agrees to pay all reasonable costs and expenses incurred
by any Lender  in connection with any such
designation or actions within 10 Business Days of demand thereof to
Borrower.

 

2.8.2                     If and with
respect to each occasion that a Lender (a) makes a
demand for compensation pursuant to Section 2.4.4, 2.6.3 or 2.6.4, (b) has
notified Administrative Agent of a circumstance under clause (b)(i) of
Section 2.6.1 or (c) is unable for a period of three consecutive
months to fund Eurodollar Loans pursuant to Section 2.6.2 or such Lender
is a Defaulting Lender then Borrower may, upon at least five Business Days’
prior irrevocable notice to each of such Lender and Administrative Agent, in
whole permanently replace the Loans and Loan Commitments of such Lender; provided,
that Borrower shall replace such Loans and Loan 

 

17

 

Commitments of such Lender with the Loans and Loan
Commitments of a commercial bank reasonably satisfactory to Administrative
Agent.  Such replacement Lender shall
upon the effective date of replacement purchase the Obligations owed to such
replaced Lender for the aggregate amount thereof and shall thereupon for all
purposes become a “Lender” hereunder. 
Such notice from Borrower shall specify an effective date for the
replacement of such Lender’s Loans and Loan Commitments, which date shall not
be later than the 14th day after the day such notice is given.  On the effective date of any replacement of
such Lender’s Loans and Loan Commitments pursuant to this Section 2.8.2,
Borrower shall pay to Administrative Agent for the account of such Lender (a) any
fees due to such Lender to the date of such replacement, (b) the principal
of and accrued interest on the principal amount of outstanding Loans held by
such Lender to the date of such replacement (such amount to be represented and
funded by the purchase of the Obligations of such replaced Lender by the
replacing Lender and not as a prepayment of such Loans), and (c) the
amount or amounts due to such Lender pursuant to each of Sections 2.4.4, 2.6.3
or 2.6.4, as applicable, and any other amount then payable hereunder to such
Lender.  Borrower will remain liable to
such replaced Lender for any Eurodollar Breakage Costs that such Lender
sustains or incurs as a consequence of the purchase of such Lender’s Loans
(unless such Lender has defaulted on its obligation to fund a Loan
hereunder).  Upon the effective date of
the purchase of any Lender’s Loans owed to such Lender and termination of such
Lender’s Loan Commitments pursuant to this Section 2.8.2, such Lender
shall cease to be a Lender hereunder.  No
such termination of any such Lender’s Loan Commitments and the purchase of such
Lender’s Loans pursuant to this Section 2.8.2 shall affect (i) any
liability or obligation of Borrower or any other Lender to such terminated
Lender, or any liability or obligation of such terminated Lender  to Borrower or any other Lender, or any obligation under
Section 5.10, which accrued on or prior to the date of such termination or
(ii) such terminated Lender’s rights hereunder in respect of any such
liability or obligation.

 

2.8.3                     Upon notice to
Administrative Agent, any Lender may designate a Lending Office other than the
Lending Office most recently designated to Administrative Agent and may assign
all of its interests under the Credit Documents to such Lending Office; provided,
that such designation and assignment do not at the time of such designation and
assignment increase the reasonably foreseeable (a) liability of Borrower
under Section 2.4.4, 2.6.3 or 2.6.4, (b) trigger clause (b)(i) of
Section 2.6.1 or (c) make an Interest Rate option unavailable
pursuant to Section 2.6.2.

 

2.9                               REGISTER.  Administrative Agent shall maintain a
register at its offices (the “Register”) for the recordation of certain
information hereunder from time to time. 
The Register shall be available for inspection by Borrower or any
Secured Party (as to its Commitment only) at any reasonable time and from time
to time upon reasonable prior notice. 
Administrative Agent shall record in the Register (a) the Loan
Commitments and the Loans from time to time of each Lender, (b) the
interest rates applicable to all Loans and the effective dates of all changes
thereto, (c) the Interest Period for each Eurodollar Loan, (d) the
date and amount of any principal or interest due and payable or to become due
and payable from Borrower to each Lender hereunder, (e) each repayment or
prepayment in respect of the principal amount of the Loans of each Lender,
(f) the amount of any sum received by Administrative Agent hereunder for
the account of the Secured Parties and each Secured Party’s share thereof,
(g) a copy of each Assignment and Assumption, and (h) such other
information as Administrative Agent may determine is necessary for the
administering of the Loans and this Agreement. 
Any such 

 

18

 

recording shall be conclusive and binding in the
absence of manifest error; provided, that neither the failure to make
any such recordation, nor any error in such recordation, shall affect any
Lender’s Loan Commitment or the Obligations in respect of any applicable Loans
or otherwise; and provided, further, that in the event of any
inconsistency between the Register and any Secured Party’s records, the
Register shall govern absent manifest error.

 

ARTICLE 3

CONDITIONS PRECEDENT

 

3.1                               CONDITIONS
PRECEDENT TO THE CLOSING DATE.  The funding of the initial Borrowing
hereunder is subject to the prior satisfaction of each of the following
conditions unless waived by all Lenders (the date such conditions precedent are
so satisfied or waived being referred to as the “Closing Date”):

 

3.1.1                     Resolutions.  Delivery to Administrative Agent and each
Lender of a copy of one or more resolutions or other authorizations, in form
and substance reasonably satisfactory to Administrative Agent and each Lender,
of each Credit Party and each other Affiliate of Borrower that is a party to a
Project Document (each such
affiliate, together with the Credit Parties, the “Borrower Entities”)
certified by a Responsible Officer of each such Borrower Entity as being true,
complete, in full force and effect on the Closing Date and not amended,
modified, revoked or rescinded, authorizing, as applicable and among other
things, the Borrowings herein provided for, the granting of the Liens under the
Collateral Documents, the provision of the guaranties, the contribution of
equity to Borrower and the execution, delivery and performance of this
Agreement, the other Operative Documents and any instruments or agreements
required hereunder or thereunder to which such Borrower Entity is a party.

 

3.1.2                     Incumbency.  Delivery to Administrative Agent and each
Lender of a certificate, in form and substance reasonably satisfactory to
Administrative Agent and each Lender, from each Borrower Entity signed by the
appropriate authorized officer or manager of each such Borrower Entity and
dated as of the Closing Date, as to the incumbency and specimen signature of
each natural Person authorized to execute and deliver this Agreement, the other
Operative Documents and any instruments or agreements required hereunder or
thereunder to which such Borrower Entity is a party, including various
certificates to be delivered by such Borrower Entity pursuant to this
Section 3.1.

 

3.1.3                     Governing
Documents.  Delivery to Administrative Agent and each Lender, in each case certified by a Responsible Officer of such Borrower Entity as being true, correct and complete on the Closing Date, of (a) copies
of the certificate of formation, charter or other state certified constituent
documents of each  Borrower Entity, certified as of a recent date by the secretary of state of such Borrower Entity’s state of organization, and (b) copies of the bylaws, limited
liability company operating agreement, partnership agreement or other
comparable operating documents, if applicable, of each Borrower Entity.

 

3.1.4                     Good
Standing Certificates. 
Delivery to Administrative Agent and each Lender of certificates (in
so-called “long-form” if available) issued by (a) the secretary of state
of the state in which each Borrower Entity and Major Project Participant
(except SCPPA, BLM and SITLA) is formed or incorporated, as applicable, and
(b) in the case of Borrower and each Major 

 

19

 

Project Participant (except SCPPA, BLM, SITLA, E.W.
Wylie Corporation, a North Dakota corporation, and the Bailees), the Secretary
of the State of Utah, in each case (i) dated a date reasonably close to
the Closing Date and (ii) certifying that such Borrower Entity and Major
Project Participant is in good standing and is qualified to do business in, and
has paid all franchise taxes or similar taxes due to, such states.

 

3.1.5                     Third
Party Approvals.  Except for
the Permits listed in Part II of the Permit Schedule, Administrative Agent
and each Lender shall have received all information and copies of all documents
and copies of any consent or approval by any Person (including any Governmental
Authority) reasonably required by any Borrower Entity or any other Major
Project Participant as of the Closing Date in connection with any transaction
contemplated in any Credit Document; provided that copies of documents,
consents and approvals with respect to Major Project Participants other than
the Borrower Entities must only be delivered to the extent such copies are
obtainable by Borrower.

 

3.1.6                     Credit
Documents and Project Documents.  Delivery to Administrative Agent and each
Lender of (a) originals of each Credit Document other than any expressly
contemplated hereby to be executed and delivered after the Closing Date, all of
which shall (i) have been duly authorized, executed and delivered by the
parties thereto and are in form and substance reasonably satisfactory to
Administrative Agent and each Lender, and (ii) be in full force and effect
and accompanied by a certificate of Borrower certifying to the foregoing in
accordance with Section 3.1.7, and (b) a certified list of, and true,
correct and complete copies of, each Project Document (other than any Project
Document which is only incidental to the development, construction, leasing,
ownership or operation of the Project) executed on or prior to the Closing
Date, each in form and substance reasonably satisfactory to the Administrative
Agent and each Lender, all of which shall (x) have been duly authorized,
executed and delivered by the parties thereto, (y) be certified by
Borrower as being true, complete and correct and in full force and effect on
the Closing Date in accordance with Section 3.1.7, and (z) be in form
and substance reasonably satisfactory to Administrative Agent and each Lender.

 

3.1.7                     Certificate
of Borrower Entities.  Delivery to
Administrative Agent and each Lender of a certificate, dated as of the Closing
Date, duly executed by a Responsible Officer of Borrower, in substantially the
form of Exhibit F-1, of Pledgor in substantially the form of Exhibit F-2,
and of the other Borrower Entities, in substantially the form of Exhibit F-3.

 

3.1.8                     Legal
Opinions.  Delivery to
Administrative Agent and each Lender of legal opinions with respect to the
transactions contemplated hereby of counsel to the Borrower Entities and each Major
Project Participant as set forth on Exhibit E-3, in each case
addressed to the Secured Parties and in form and substance reasonably
satisfactory to Administrative Agent and each Lender.

 

3.1.9                     Certificate
of Insurance Consultant. 
Delivery to Administrative Agent and each Lender of the Insurance
Consultant’s certificate, dated as of the Closing Date and in substantially the
form of Exhibit F-4, together with the Insurance Consultant’s
report that (i) summarizes the proposed insurance arrangements for the
Project, (ii) concludes that such insurance is adequate and customary and (iii) is
otherwise in form and substance reasonably satisfactory to Administrative Agent
and each Lender, attached thereto.

 

20

 

3.1.10              Insurance.  Insurance complying with terms and conditions
set forth in Exhibit K shall be in full force and effect to the
extent then required by such terms and conditions and Administrative Agent,
each Lender and the Insurance Consultant shall have (i) received a
certificate from Borrower’s insurance broker(s), dated as of the Closing Date
and in form and substance reasonably satisfactory to Administrative Agent and
each Lender, (a) identifying underwriters, type of insurance, insurance
limits and policy terms, (b) listing the special provisions required as
set forth in Exhibit K, (c) describing the insurance obtained
and (d) stating that such insurance is in full force and effect and that
all premiums then due thereon have been paid and that, in the opinion of such
broker(s), such insurance complies with the terms and conditions set forth in Exhibit K,
and (ii) certified copies of all policies evidencing such insurance (or a
binder, commitment or certificates signed by the insurer or a broker authorized
to bind the insurer), in form and substance reasonably satisfactory to
Administrative Agent, each Lender and the Insurance Consultant.

 

3.1.11              Certificate
of the Independent Engineer.  Delivery to Administrative Agent and each
Lender of Independent Engineer’s certificate, dated as of the Closing Date and
in substantially the form of Exhibit F-5, together with the
Independent Engineer’s report (the “IE Report”), which (i) addresses
the capital budget, construction plan and responsibilities, overall Project
design (including the appropriateness of the turbine technology for the
Project), turbine warranty, turbine output, turbine reliability, fleet history
and design, availability and noise guaranties (if applicable), total Project
Costs to complete, adequacy of all civil works (including the balance of plant
contracts in relation to the Turbine Supply Agreement), electrical works,
interconnection, transmission, overall wind farm and grid engineering and
functionality, feasibility of the Project Schedule, equipment selection,
probable performance and environmental matters, (ii) contains a
construction budget in the form attached hereto as Exhibit G-2, and
(iii) is in form and substance reasonably satisfactory to Administrative
Agent and each Lender, attached thereto.

 

3.1.12              Reports
of Borrower’s Environmental Consultant.  Delivery to Administrative Agent and each
Lender of the Phase I Environmental Report along with a reliance letter, in
form and substance reasonably satisfactory to Administrative Agent and each
Lender, permitting the Secured Parties to rely on such Phase I Environmental
Report.

 

3.1.13              Independent
Wind Consultant Report. 
Delivery to Administrative Agent and each Lender of the Wind Report
along with a reliance letter, in form and substance reasonably satisfactory to
Administrative Agent and each Lender.

 

3.1.14              Permit
Schedule and Applicable Third Party Permits.

 

(a)                                 Delivery to
Administrative Agent and each Lender of Exhibit G-1, the schedule
of Permits (“Permit Schedule”), in form and substance reasonably
satisfactory to Administrative Agent and each Lender, of which
(i) Part I(A) shall be Permits which are Applicable Permits as
of the Closing Date, (ii) Part I(B) shall be Permits which to
Borrower’s knowledge are Applicable Third Party Permits as of the Closing Date,
(iii) Part II(A) shall be Permits which are to Borrower’s
knowledge expected to become Applicable Permits after the Closing Date, and
(iv) Part II(B) shall be Permits which to Borrower’s knowledge
are expected to become Applicable Third Party Permits after the Closing
Date.  Borrower shall also deliver to 

 

21

 

Administrative Agent and each Lender copies of each
Permit listed in Part I(A) and, to the extent obtainable,
Part I(B), in form and substance reasonably satisfactory to Administrative
Agent and each Lender.  The Permits
listed in Part I(A) and Part I(B) shall in Administrative
Agent’s and each Lender’s reasonable opinion comprise all of the Applicable
Permits and Applicable Third Party Permits, respectively, as of the Closing
Date.

 

(b)                                 Except as
disclosed in the Permit Schedule, each Permit listed in Part I(A) shall
(i) have been duly obtained or been assigned in Borrower’s name,
(ii) be in full force and effect, (iii) not be subject to any current
legal proceeding, and (iv) not be subject to any Unsatisfied Condition
that could reasonably be expected to result in material modification or
revocation of such Permit, and all applicable appeal periods with respect to
each such Permit shall have expired. 
Except as disclosed in the Permit Schedule, to Borrower’s knowledge each
Permit listed in Part I(B) shall (A) have been duly obtained or
have been assigned in the name of the applicable Major Project Participant or
its contractor or subcontractor (B) be in full force and effect,
(C) not be subject to any current legal proceeding and (D) not be
subject to any Unsatisfied Condition that could reasonably be expected to
result in material modification or revocation of such Permit, and all
applicable appeal periods with respect to each such Permit shall have expired.

 

(c)                                  The Permits
listed in Part II of the Permit Schedule shall, in Administrative Agent’s
and each Lender’s reasonable opinion, be timely obtainable (i) on or
before the date Borrower or the applicable other Person (as identified in the
Permit Schedule) requires such Permit, (ii) without delay materially in
excess of the time provided therefor in the Project Schedule (if applicable),
and (iii) without expense materially in excess of the amounts provided
therefor in the Project Budget by Borrower or such other Person.

 

(d)                                 No Permit
listed in Part I of the Permit Schedule shall be subject to any
restriction, condition, limitation or other provision which could reasonably be
expected to have a Material Adverse Effect or result in the Project being
operated in a manner substantially inconsistent with the assumptions underlying
the Base Case Projections.

 

3.1.15              Absence
of Litigation.  Except as set forth in Exhibit G-4, there are no actions,
suits, investigations or proceedings by or before any Governmental Authority or
arbitrator pending  or, to
Borrower’s knowledge, threatened in writing by or  against  Borrower, any Major Project Participant related to the
Project or the Project.

 

3.1.16              Payment
of Fees.  All taxes, fees and other
costs payable in connection with the execution, delivery, title premiums,
survey charges, recordation and filing of the documents and instruments
referred to in this Section 3.1 and due on or before the Closing Date
shall have been paid in full or, if and in the manner specifically approved by
the Lenders, provided for.  Borrower
shall have paid (or caused to be paid) or shall have made arrangements in the
manner reasonably satisfactory to the payee for the payment from the proceeds
of the initial disbursement of the Loans of all outstanding amounts due, as of
the Closing Date, and owing to (a) the Secured Parties under any fee or
other letter or otherwise pursuant to Section 2.3, and (b) the
Secured Parties’ attorneys and consultants (including the Independent
Consultants) and the Title Insurer for all services rendered and billed prior
to the Closing Date.

 

22

 

3.1.17              Financial
Statements.  Delivery to
Administrative Agent and each Lender of accurate and complete copies of audited
annual financial statements or Form 10-K or equivalent of RMT Parent,
SCPPA and Turbine Supplier, for the most recent fiscal year end for which such
of such audited financial statements or Form 10-K or equivalent are
available (it being acknowledged that such financial statements shall be deemed
to be delivered if a Form 10-K or equivalent filed with the SEC for such
Person is publicly available); provided, however, if any of the
Turbine Supplier, RMT Parent or SCPPA does not have audited financial
statements or a Form 10-K or equivalent, then Administrative Agent and
each Lender shall have been provided with other materials relating to creditworthiness
of such Person reasonably satisfactory to Administrative Agent and each Lender.

 

3.1.18              Collateral
Requirements.  Delivery to
Administrative Agent and each Lender of evidence reasonably satisfactory to
Administrative Agent and each Lender, to the extent not otherwise satisfied
pursuant to Section 3.1.24, that Borrower has taken or caused to be taken
all such actions, executed and delivered or caused to be executed and delivered
all such agreements, documents and instruments, and made or caused to be made
all such filings and recordings that may be necessary or, in the opinion of
Administrative Agent and each Lender, desirable in order to create in favor of
Collateral Agent a valid and (upon such filing and recording) perfected first
priority Lien in Borrower’s right, title and interest in and to the Collateral
subject to Permitted Liens, Title Exceptions and CoBank’s Lien on the CoBank
Equities.  Such actions shall include
delivery to Administrative Agent and each Lender of:

 

(a)                                 The Pledge Agreement,
the Security Agreement and the Depositary Agreement, duly executed by each
Credit Party party thereto;

 

(b)                                 all pledged
securities, including all certificates, agreements or instruments representing
or evidencing such pledged securities, accompanied by instruments of transfer
and membership interest powers undated and endorsed in blank to the extent such
pledged interests are certificated;

 

(c)                                  all promissory
notes or other instruments (duly endorsed, where appropriate, in a manner
reasonably satisfactory to Administrative Agent and each Lender) evidencing any
Collateral;

 

(d)                                 all other
certificates, agreements, including control agreements, or instruments
necessary to perfect Collateral Agent’s security interest in all Chattel Paper,
all Instruments, all Deposit Accounts and all Investment Property of Borrower
(as each such term is defined in the Security Agreement and to the extent
required by the Security Agreement);

 

(e)                                  UCC financing
statements in appropriate form for filing under the UCC, and, where
appropriate, fixture filings, and such other documents under applicable Legal
Requirements in each jurisdiction as may be necessary or appropriate or, in the
opinion of Administrative Agent and each Lender, desirable to perfect the first
priority Liens created, or purported to be created, by the Collateral
Documents;

 

(f)                                   certified
copies of UCC, tax and judgment lien searches, bankruptcy and pending lawsuit
searches or equivalent reports or searches, each of a date no less recent than
10 

 

23

 

Business Days before the Closing Date or as
otherwise acceptable to Administrative Agent and each Lender listing all
effective financing statements, lien notices or comparable documents that name
Borrower and Pledgor as debtor and that are filed in those state and county
jurisdictions in which any property of such Person is located and the state and
county jurisdictions in which any such Person is organized or maintains its
principal place of business and such other searches that Administrative Agent
and each Lender reasonably deems necessary or appropriate, none of which
encumber the Collateral covered or intended to be covered by the Collateral
Documents (other than Permitted Liens) showing that upon due filing or
recordation (assuming such filing or recordation occurred on the date of such
respective reports), as the case may be, the security interests created under
the Collateral Documents, with respect to the Collateral, will be prior to all
other financing statements, fixture filings or other security documents wherein
the security interest is perfected by filing or recording in respect of the
Collateral,

 

(g)                                  UCC termination
statements duly executed (if required) by all applicable Persons for filing in
all applicable jurisdictions as may be necessary to terminate any effective UCC
financing statements or fixture filings disclosed in such search (other than
any such financing statements or fixture filings in respect of Liens permitted
to remain outstanding pursuant to the terms of this Agreement);

 

(h)                                 an opinion of
counsel (which counsel shall be reasonably satisfactory to Administrative Agent
and each Lender) with respect to the perfection of the security interests in
favor of Collateral Agent in personal or mixed property Collateral and such
other matters governed by the laws of such jurisdiction regarding such security
interests as Collateral Agent may reasonably request, in each case in form and
substance reasonably satisfactory to Administrative Agent and each Lender; and

 

(i)                                     evidence
reasonably satisfactory to Administrative Agent and each Lender of payment or
arrangements for payment by Borrower of all applicable recording taxes,
registration fees or charges, filing costs and other similar expenses, if any,
required to be paid in connection with the execution, delivery, or filing of,
or the perfection of any Operative Document or otherwise in connection with the
Collateral.

 

3.1.19              Project
Budget and Drawdown Schedule.  Delivery to Administrative Agent and each
Lender of a budget and drawdown schedule in substantially the form of Exhibit G-2
(the “Project Budget”) for all anticipated costs to be incurred in
connection with the development, construction, installation and start-up of the
Project and schedule of Borrowings, which Project Budget shall be satisfactory
to Administrative Agent and each Lender.

 

3.1.20              Base
Case Projections.  Delivery to
each Lender of the Base Case Projections.

 

3.1.21              No
Material Adverse Effect. 
Since the date of the most recent audited financial statements of each
Major Project Participant delivered pursuant Section 3.1.17, no event,
circumstance or condition shall have occurred and be continuing (and
Administrative Agent or any Lender shall have become aware of no such facts or
conditions not previously known) that constitutes or could reasonably be
expected to result in a Material Adverse Effect.

 

24

 

3.1.22              ALTA
Surveys.  Administrative Agent and each
Lender shall have received either (i) ALTA surveys of the Site (which
surveys shall be reasonably current and in form and substance reasonably
satisfactory to Administrative Agent, each Lender and the Title Insurer),
certified to Borrower, Administrative Agent and the Title Insurer by Demille
Engineering, Inc., Westwood Professional Services, or such other licensed
surveyor reasonably satisfactory to Administrative Agent and each Lender or
(ii) a certificate from a licensed third-party engineering firm or
surveyor confirming that the Easements provide contiguous real property
interests, in each case showing  such matters
as shall be necessary for the Title Insurer to issue to the Secured Parties the
Title Policy described in Section 3.1.23.

 

3.1.23              Title
Policy.  Delivery to Administrative
Agent and each Lender of a lender’s ALTA extended coverage policy of title
insurance (2006 form) with any standard coverage exception reasonably
acceptable to Administrative Agent and each Lender but without a mechanics’ and
materialmen’s exception included therein (except where applicable Governmental Rules prevent
the deletion of such exception, in which case Borrower shall provide the Title
Insurer with any affidavits or indemnities (with respect to which Borrower
shall have no reimbursement obligations) necessary to cause the Title Insurer
to issue affirmative coverage for mechanics’ and materialmens’ liens in form
and substance reasonably satisfactory to Administrative Agent and each Lender),
together with such endorsements thereto (or where such endorsements are not
available, opinions of special counsel, architects or other professionals
reasonably acceptable to Administrative Agent and each Lender) as are
reasonably requested by Administrative Agent or any Lender, or the
unconditional and irrevocable commitment of the Title Insurer to issue such a
policy, dated as of the Closing Date, in each case in a coverage amount equal
to $247,000,000 (with such reinsurance as is reasonably satisfactory to
Administrative Agent and each Lender) issued by the Title Insurer in form and
substance satisfactory to Administrative Agent and each Lender.

 

3.1.24              Real
Estate Requirements.  Delivery  to  Administrative
Agent and each Lender of:

 

(a)                                 The Trust Deed
encumbering the Mortgaged Property in favor of Collateral Agent, duly executed
and acknowledged by Borrower, and otherwise in form for recording in the
recording office of each applicable political subdivision where the Mortgaged
Property is situated, together with such certificates, affidavits,
questionnaires or returns as shall be required in connection with the recording
or filing thereof to create a Lien of record under applicable law, and such
financing statements, fixture filings any and any other instruments necessary
to grant a Lien on Borrower’s right, title and interest in and to the Mortgaged
Property under the laws of any applicable jurisdiction, all of which shall be
in form and substance reasonably satisfactory to Administrative Agent and each
Lender;

 

(b)                                 with respect to
the Mortgaged Property, such consents, approvals, amendments, supplements,
estoppels, tenant subordination agreements or other instruments as are
necessary to consummate the transactions hereunder contemplated or as shall
reasonably be deemed necessary by Administrative Agent and the Lenders;

 

25

 

(c)                                  with respect to
the Mortgaged Property, such affidavits, certificates, information (including
financial data) and instruments of indemnification (including a so-called “gap”
indemnification) as shall be required to induce the Title Insurer to issue the
Title Policy;

 

(d)                                 evidence
reasonably acceptable to Administrative Agent and each Lender of payment by
Borrower of all Title Policy premiums, search and examination charges, and
related charges, Trust Deed recording taxes, fees, charges, costs and expenses
required for the recording of the Trust Deed and issuance of the Title Policy;

 

(e)                                  with respect to
any Real Property in which Borrower holds possession by lease (other than for
Real Property that is not necessary for the Project), both (i) any
agreement by the fee owner to obtain a nondisturbance agreement from each
lienholder against the fee interest in such Real Property, and (ii) a
nondisturbance agreement from any such existing lienholder, in each case in
form and substance reasonably satisfactory to Administrative Agent and each
Lender;

 

(f)                                   copies of all
leases or easements in which Borrower holds the lessor’s interest or other
agreements relating to possessory interests, if any, in the Real Property.  To the extent any of the foregoing affect any
Real Property, such agreement shall be subordinate to the Lien of the Trust
Deed to be recorded against such Mortgaged Property, either expressly by its terms
or pursuant to a subordination, non-disturbance and attornment agreement, and
shall otherwise be acceptable to Administrative Agent and each Lender;

 

(g)                                  evidence
reasonably acceptable to Administrative Agent and each Lender that Borrower and
each other Major Project Participant have obtained and hold all easements or
other possessory rights in real estate, together with necessary real property
permits and crossing rights (collectively, “Rights of Way”) necessary
for (i) performance in full of each such Person’s obligations under the
Operative Documents and each Permit by which such Person or its assets is
bound, and (ii) the development, leasing, construction and operation of
the Project in accordance with the Base Case Projections.  The use of such Rights of Way shall not
encroach on or interfere (except immaterial encroachments and interferences
expressly permitted by the terms of the applicable Rights of Way) with property
adjacent to such Rights of Way or existing easements or other rights (whether
on, above or below ground) and the full length of the Rights of Way shall be
continuous, without break, gap or interruption;

 

(h)                                 evidence
reasonably acceptable to Administrative Agent and each Lender that Borrower has
a good, marketable and insurable (i) fee or leasehold interest in the Site
(other than the BLM Right of Way (Phase
II), the BLM Right of Way (Generator Lead Line), the Site Common Facilities,
the Circle Four Easements and the SITLA Right
of Way), (ii) interest in the BLM Right
of Way (Phase II) and the Circle Four Easements, (iii) undivided tenant in
common interest in the Easements, the BLM Right of Way (Generator Lead Line),
the SITLA Right of Way and the Site Common Facilities, and (iv) interest
in any other Real Property (provided, however, that the title
policy to be provided pursuant to this Section 3.1.24 shall not be
required to include as part of the insured estate any such other Real Estate
Interests which are permits or licenses not customarily insurable by title
insurance, including the BLM Right of Way
(Phase II) and the BLM Right of Way (Generator Lead Line)), in each case
free and clear of Liens, encumbrances or other exceptions to title, other than (A) the
Title Exceptions and (B) such 

 

26

 

Liens, encumbrances or other exceptions to title as
are reasonably satisfactory to Administrative Agent and each Lender; and

 

(i)                                     evidence
reasonably acceptable to Administrative Agent and each Lender that the Trust
Deed is a valid first Lien on Borrower’s right, title and interest in the
Mortgaged Property (including, without limitation, the Rights of Way), free and
clear of all Liens, encumbrances and exceptions to title whatsoever, other than
(i) the Title Exceptions and (ii) such Liens, encumbrances or other
exceptions to title as are reasonably satisfactory to Administrative Agent and
each Lender, and, in the case of the BLM Right
of Way (Phase II), the BLM Right of Way (Generator Lead Line), the SITLA
Lease, and the SITLA Right of Way, subject to applicable Governmental Rules limiting
the enforceability of Liens therein.

 

3.1.25              [Reserved]

 

3.1.26              Establishment
of Accounts.  The Accounts
shall have been established to the satisfaction of Administrative Agent and
each Lender.

 

3.1.27              Representations
and Warranties.  Each
representation and warranty of each Credit Party under the Credit Documents
shall be true and correct as of the Closing Date (unless such representation
and warranty refers to an earlier date, in which case such representation and
warranty shall have been true and correct as of such earlier date) and Borrower
shall have provided to Administrative Agent and each Lender a certificate of a
Responsible Officer of Borrower that each representation and warranty of
Borrower and Pledgor under the Credit Documents is true and correct as of the
Closing Date (unless such representation and warranty refers to an earlier
date, in which case such representation and warranty was true and correct as of
such earlier date).

 

3.1.28              No
Default.  Each Borrower Entity shall be
in compliance in all material respects with all the terms and provisions set
forth in each Credit Document and all material provisions of the Major Project
Documents on its part to be observed or performed, and no Default or Event of
Default exists or shall occur as a result of any of the transactions
consummated as of the Closing Date.

 

3.1.29              Utilities.  Delivery to Administrative Agent and each
Lender of reasonably satisfactory evidence that all potable water, sewer,
telephone, electric and all other utility services necessary for the
development, construction, ownership and operation of the Project are either
contracted for, or readily available on commercially reasonable terms, at the
Project.

 

3.1.30              Project
Schedule.  Delivery to
Administrative Agent and each Lender of the Project Schedule in substantially
the form of Exhibit G-3, which Project Schedule shall be reasonably
satisfactory to Administrative Agent and each Lender.

 

3.1.31              Consents.  Delivery to Administrative Agent and each
Lender of executed Consents from each of the Major Project Participants as set
forth on Exhibit E-3, which Consents shall be in substantially the
form of Exhibit E-1 or, if approved by Administrative Agent in
advance, Exhibit E-2, or otherwise reasonably satisfactory to
Administrative Agent and each Lender.

 

27

 

3.1.32              Use
of Equity.  Borrower
shall have certified to Administrative Agent and each Lender (in form and
substance reasonably satisfactory to Administrative Agent and each Lender), and
Administrative Agent and the Independent Engineer shall have confirmed, that in
an aggregate amount not less than the Base Equity Requirement Borrower has
(a)  applied the proceeds of cash equity contributions made by Sponsor to
the payment of Project Costs, (b)  deposited into the Construction Account
the proceeds of cash equity contributions made by Sponsor, and/or
(c) otherwise received in-kind equity contributed by Sponsor or its
Affiliates.

 

3.1.33              Assignment
of Agreements.  All Project
Documents pursuant to which Borrower is not party shall have been subleased or
irrevocably assigned to Borrower.

 

3.1.34              Anti-Terrorism
Compliance.  At least
five days prior to the Closing Date, Administrative Agent and each Lender shall
have received all documentation and other information requested by
Administrative Agent or any Lender, which is required by bank regulatory
authorities under applicable “know your customer” and anti-money laundering rules and
regulations, including the Patriot Act.

 

3.1.35              Solvency
Certificate.  Delivery to
Administrative Agent and each Lender of a certificate in the form of Exhibit F-6
from the chief financial officer or treasurer of Borrower certifying that
Borrower is Solvent after giving effect to the transactions contemplated hereby.

 

3.1.36              Legality.  No federal or state law or regulation, or any
interpretation thereof, exists which would make any Loan, or the securing of
any Loan by the Collateral, or any other aspect of the transactions
contemplated herein, illegal, or which would subject the Lenders or any of
their Affiliates to any penalties, sanctions or fines.

 

3.1.37              Utility
Laws.  No federal, state or local law
or regulation, or interpretation thereof, will then exist under which the
Lenders would become an “electric utility,” “electric corporation,” “electrical
company,” “public utility,” or “holding company,” or any similar Person under
such law or regulation solely as a result of this transaction, except as a
Lender may become an “electric utility,” “electric corporation,” “electrical
company,” “public utility,” or “holding company” upon the exercise of remedies
under the Credit Documents.

 

3.1.38              Repayment
of Existing Debt.  Delivery to
Administrative Agent and each Lender of evidence that the loans made with
respect to the Turbine Supply Agreement under the Turbine Supply Financing have
been repaid in full and that any liens related thereto have been released (or
arrangements for such release satisfactory to Administrative Agent and each
Lender shall have been made).

 

3.1.39              SCPPA
Confirmation Letter.  SCPPA shall
have delivered a letter to Borrower, in form and substance reasonably
satisfactory to Administrative Agent and the Lenders.

 

3.1.40              Wind
Study.  The Lenders shall have been
provided evidence that SCPPA has received the wind study required to be
provided pursuant to Section 7.1(f) of the PPA.

 

28

 

3.1.41              Transmission
Rights.  Borrower shall have
unencumbered rights to an undivided tenant in common interest in adequate
capacity on the Transmission Line to the point of delivery under the PPA, in
form and substance satisfactory to the Lenders.

 

3.1.42              Cost
Segregation Report.  The Cost
Segregation Consultant shall have delivered a current Cost Segregation Report,
in form and substance reasonably satisfactory to Administrative Agent and each
Lender.

 

3.1.43              Grant
Eligible.  Each Lender
shall have been provided with all information as to Borrower and the Project
being Grant Eligible.

 

3.1.44              Effective
Date under the PPA.  The
Effective Date under and defined in the PPA shall have occurred.

 

3.1.45              Other
Documents and Proceedings.  Delivery to Administrative Agent and each
Lender of such other documents and completion of such other proceedings as
Administrative Agent or any Lender may reasonably request.

 

3.2                              CONDITIONS
PRECEDENT TO EACH CREDIT EVENT.  The obligation of each Lender in respect of
each Credit Event is subject to the occurrence of the Closing Date and prior
satisfaction (or waiver by Administrative Agent with the consent of the
Required Lenders) of each of the following conditions:

 

3.2.1                     Representations
and Warranties.

 

(a)                                 Each
representation and warranty of each Borrower Entity in any of the Operative
Documents shall be true and correct in all material respects (except that any
representation and warranty that is qualified as to “materiality” or “Material
Adverse Effect” shall be true and correct in all respects) on and as of the
date of such Credit Event, before and after giving effect to the applicable
Borrowing, with the same effect as though made on and as of such date, unless
such representation or warranty expressly relates solely to an earlier date.

 

(b)                                 To Borrower’s
knowledge, each representation and warranty of each Major Project Participant
(other than the Borrower Entities) contained in the Operative Documents shall
be true and correct in all material respects (except that any representation
and warranty that is qualified as to “materiality” or “Material Adverse Effect”
or the like shall be true and correct in all respects) on and as of the date of
such Credit Event, before and after giving effect to the Credit Event, with the
same effect as though made on and as of such date, unless such representation
and warranty expressly relates solely to an earlier date, and except to the
extent that the failure of such representations and warranties to be true and
correct in all material respects could not reasonably be expected to have a
Material Adverse Effect.

 

3.2.2                     No
Default or Event of Default.  No Default or Event of Default shall have
occurred and be continuing or will result from the relevant Credit Event.

 

3.2.3                     Additional
Documentation.  With
respect to Additional Project Documents entered into or obtained, transferred
or required (whether because of the status of the development, construction or
operation of the Project or otherwise) since the date of the most 

 

29

 

recent Credit Event, there shall be
(a) redelivery of such matters as are described in Section 3.1.6(b) to
the extent applicable to such Additional Project Documents, and (b) if
reasonably requested by Administrative Agent, delivery of such matters as are
described in Sections 3.1.1 and 3.1.8 from Borrower, and
Section 3.1.8 and, to the extent required by Section 6.18,
Section 3.1.31, from the counterparty to such Additional Project Document.

 

3.2.4                     Notice
of Borrowing; Calculations.  Borrower shall have delivered a Notice of
Borrowing to Administrative Agent in accordance with the procedures specified
in Section 2.1.1(b).  To the extent
that the proceeds of the requested Loan are intended to be used to reimburse
Sponsor for certain equity contributions made by it as contemplated by
Section 5.1.1, then Independent Engineer shall have verified the Project
Costs previously paid by Sponsor.

 

3.2.5                     Drawdown
Certificate and Independent Engineer’s Drawdown Certificate.

 

(a)                                 At least three
Business Days prior to the submission of each Notice of Borrowing for each
Credit Event, Borrower shall have provided Administrative Agent and the
Independent Engineer with a duly executed copy of the Drawdown Certificate,
dated the date of delivery of such certificate, setting forth the date of the
proposed occurrence of such Credit Event and signed by a Responsible Officer of
Borrower.

 

(b)                                 At least one
Business Day prior to the submission of each Notice of Borrowing for each
Credit Event, the Independent Engineer shall have provided Administrative Agent
(with a copy to Borrower) with a certificate of the Independent Engineer, dated
the date of delivery of such certificate, setting forth the date of the
proposed occurrence of such Credit Event and signed by an authorized
representative of the Independent Engineer, substantially in the form of Exhibit C-4
(the “Independent Engineer’s Drawdown Certificate”).

 

(c)                                  Borrower shall
use all reasonable efforts to provide Administrative Agent and the Independent
Engineer with drafts of any certificates and other materials to be delivered
pursuant to this Section 3.2.5 in advance of the time frames listed above
as reasonably requested by Administrative Agent.

 

3.2.6                     Amount.  The Loans
shall be in such amounts as shall ensure that all Project Costs then due and
owing for which the applicable Notice of Borrowing relates can be paid, taking into account uncommitted funds remaining in the Construction Account
and the minimum denomination requirements of Section 2.1.1(b).

 

3.2.7                     Available Construction Funds.  After
taking into consideration the requested Borrowing, Administrative Agent (based
on consultation with Independent Engineer) shall have reasonably determined
that Available Construction Funds will be sufficient to achieve Commercial
Operation by the Date Certain in
accordance with all Legal Requirements, the Construction Contract, each other
Project Document pursuant to which construction work with respect to the
Project is being performed and the Credit Documents and to pay or provide for
all anticipated non-construction Project Costs, all as set forth in the
then-current Project Budget.

 

3.2.8                     Title
Policy Endorsements.  Borrower
shall provide, or Administrative Agent shall be adequately assured, that the
Title Insurer is committed at the time of each Credit 

 

30

 

Event to issue to Administrative Agent, a date-down
endorsement of the Title Policy dated as of the date of such Credit Event,
insuring the continuing first priority of the Trust Deed (subject only to
(a) the Title Exceptions and (b) Permitted Liens described in clause (a),
(b) or (j) of the definition thereof (to the extent the same are
afforded priority over the Lien of the Trust Deed by operation of law)) and
otherwise in form and substance reasonably satisfactory to Administrative
Agent.

 

3.2.9                     Lien
Releases.  Subject to Borrower’s
right to contest Liens as described in the definition of “Permitted Liens,”
Borrower shall have delivered (such delivery may be conditioned upon concurrent
receipt of payment by the applicable Person), if applicable, to Administrative
Agent duly executed Lien waivers relating to mechanics’ and materialmen’s
Liens, substantially in the form attached to the relevant Major Project
Document or otherwise in form and substance reasonably acceptable to
Administrative Agent, from each supplier and Construction Contractor that has a
statutory right to file a mechanics’ and/or materialmen’s Lien for all work,
services and materials (including equipment and fixtures of all kinds, done,
previously performed or furnished for the construction of the Project), for
which the related Project Costs have been or will, from the proceeds of the
requested Borrowing, be paid.

 

3.2.10              Acceptable
Work; No Liens.  All work
that has been done on the Project has been done in a good and workmanlike
manner and in accordance with the Construction Contract, and in accordance with
the standard of care set forth in the Construction Contract, and there shall
not have been filed against any of the Collateral or otherwise filed with or
served upon Borrower with respect to the Project or any part thereof, notice of
any Lien, claim of Lien or attachment upon or claim (except any Notice of
Commencement filed by the Construction Contractor and any Preliminary Notices
filed by suppliers, or similar filings by the Construction Contractor’s subcontractors)
affecting the right to receive payment of any of the moneys payable to any of
the Persons named on such request which has not been released by payment or
bonding or otherwise or which will not be released with the payment of such
obligation out of such Loan or non-Loan proceeds, other than Permitted Liens.

 

3.2.11              Permits.  All Permits required for the
stage of construction and development of the Project at the time of the
requested Credit Event have been obtained in form satisfactory to Administrative
Agent and Independent Engineer (and if the applicable statute, rule or
regulation provides for a fixed period for judicial or administrative review
thereof, such period has expired), and neither Borrower nor Independent
Engineer has reason to expect that any other Permits customarily obtained at a
later stage of construction, development or operation will not be obtained as
and when required.

 

3.3                               NO
APPROVAL OF WORK.  The making
of any Loan hereunder shall in no event be deemed an approval or acceptance by
any Secured Party of any work, labor, supplies, materials or equipment
furnished or supplied with respect to the Project.

 

3.4                               ADJUSTMENT
OF DRAWDOWN REQUESTS.  In
the event Administrative Agent reasonably determines, in consultation with
Independent Engineer, that an item or items listed in a Drawdown Certificate as
a Project Cost is or are not properly included in such Drawdown Certificate,
Administrative Agent may in its reasonable discretion cause to be made a Loan
or Loans in the amount requested in such Drawdown Certificate less the amount
of such 

 

31

 

item or items or may reduce the amount of Loans made
pursuant to any subsequent Drawdown Certificate.  In the event that Borrower prevails in any
dispute as to whether such Project Costs were properly included in such
Drawdown Certificate, Loans in the amount requested but not initially made
shall forthwith be made.

 

3.5                               DETERMINATIONS
UNDER SECTION 3.1.  For
purposes of determining satisfaction of the conditions set forth in
Section 3.1, each Lender shall be deemed to have consented to, approved or
accepted or to be satisfied with each document or other matter required
thereunder to be consented to or approved by or acceptable or satisfactory to the
Lenders unless Administrative Agent shall have received notice from such Lender
prior to the contemplated Closing Date, as notified by Borrower to the Lenders,
specifying its objection thereto. 
Administrative Agent shall promptly notify the Lenders of the actual
occurrence of the Closing Date.

 

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

 

Borrower
makes the following representations and warranties to and in favor of the
Secured Parties as of the Closing Date (unless such representation and warranty
expressly relates solely to another time) and, to the extent set forth in
Article 3, as of the date of each Credit Event (unless such representation
and warranty relates solely to another time), all of which shall survive the
execution and delivery of this Agreement, the Closing Date and the making of
the Loans:

 

4.1                               ORGANIZATION.  Borrower is (a) a limited liability
company duly organized, validly existing and in good standing under the laws of
Delaware and (b) is duly qualified as a foreign limited liability company,
and is in good standing, in each jurisdiction in which such qualification is
required by law.  Borrower has all
requisite power and authority to (i) own or hold under lease and operate
the property it purports to own or hold under lease, (ii) carry on its
business as now being conducted and as now proposed to be conducted in respect
of the Project, (iii) execute, deliver and perform each Operative Document
to which it is a party and (iv) take each action as may be necessary to
consummate the transactions contemplated hereunder and thereunder.  Pledgor is the sole member of Borrower.

 

4.2                               AUTHORIZATION;
NO CONFLICT.  The
execution, delivery and performance by Borrower of the Operative Documents to
which Borrower is a party are within Borrower’s power, authority and legal
right and have been duly authorized by all necessary action.  Borrower has duly executed and delivered each
Operative Document to which Borrower is a party (or such Operative Documents
have been duly and validly assigned to Borrower and Borrower has authorized the
assumption thereof, and has assumed the obligations of the assignor thereunder)
and neither Borrower’s execution and delivery thereof nor its consummation of
the transactions contemplated thereby nor its compliance with the terms thereof
(a) does or will contravene the Governing Documents or any other Legal
Requirement applicable to or binding on the Borrower Entities or any of their
respective properties, (b) does or will contravene or result in any breach
of or constitute any default under, or result in or require the creation of any
Lien (other than Permitted Liens) upon any Borrower Entity’s property under,
any agreement or instrument to which it is a party or by which it or any of its
properties may be bound or affected,

 

32

 

(c) does or will violate or result in a default
under any indenture, credit agreement, loan, lease or other agreement or
instrument binding upon the Borrower Entities or their respective properties,
or (d) does or will require the consent or approval of any Person, and
with respect to any Governmental Authority, does or will require any
registration with, or notice to, or any other action of, with or by any
applicable Governmental Authority, in each case which has not already been
obtained and disclosed to Administrative Agent (except as set forth in
Part II(A) of the Permit Schedule or otherwise provided in
Sections 4.9.1 and 4.9.2).

 

4.3                               ENFORCEABILITY.  As of each date on which this representation
and warranty is made or deemed made, each of the Operative Documents to which
Borrower is a party is a legal, valid and binding obligation of Borrower and,
to Borrower’s knowledge, each other Major Project Participant party thereto,
enforceable against Borrower and, to Borrower’s knowledge, each other Major
Project Participant party thereto in accordance with its terms.  None of the Operative Documents to which
Borrower is a party has been amended or modified after the Closing Date except
in accordance with this Agreement.

 

4.4                               COMPLIANCE
WITH LAW.  There are no
material violations by Borrower or, to Borrower’s knowledge, any Borrower
Entity, of any Legal Requirement (including any Hazardous Substance Laws).  Except as otherwise have been delivered to
Administrative Agent, no notices of any material violation of any Legal
Requirement (including any Hazardous Substance Laws) relating to the Project or
the Site have been issued, entered or received by Borrower or, to Borrower’s
knowledge, any Borrower Entity or any Person that owns or operates (or has
owned or operated) the Real Property. 
None of the execution, delivery nor performance of any of the Operative
Documents, nor the consummation of any of the transactions contemplated
thereby, will (a) contravene or violate any applicable law or contractual
obligation of Borrower or, to Borrower’s knowledge, any other Major Project
Participant or other Operative Document, or (b) result in or require the
creation or imposition of any Lien (other than Liens created or permitted under
the Operative Documents) on any of the Collateral.

 

4.5                               SINGLE
PURPOSE, DEBT, CONTRACTS, JOINT VENTURES, PROCEEDS, ETC.

 

4.5.1                     Borrower (a) has
not conducted any business other (i) than the business contemplated by the
Operative Documents or otherwise related to the development, construction, operation
and financing of the Project, (b) does not have any outstanding Debt or
other material liabilities other than pursuant to or allowed by the Operative
Documents, and (c) is not a party to or bound by any material contract
other than the Credit Documents and the Major Project Documents to which it is
a party.

 

4.5.2                     Borrower is not
a general partner or a limited partner in any general or limited partnership or
a joint venturer in any joint venture.

 

4.5.3                     Borrower does
not have any Subsidiaries.

 

4.5.4                     The proceeds of
each Loan received by Borrower prior to, or concurrently with, the date on
which this representation and warranty is made or deemed made has been or will
be used solely in accordance with, and solely for the purposes contemplated by,
Section 5.1.

 

33

 

4.5.5                     Borrower has no
obligation to any Person in respect of any finder’s, broker’s or investment
banking fee with respect to the Operative Documents or the transactions
contemplated thereby or under any other agreement, document or instrument with
any Person, other than fees payable under this Agreement and the Fee Letter.

 

4.5.6                     No proceeds of
any Loan will be used to acquire any equity security of a class that is
registered pursuant to Section 12 of the Exchange Act.

 

4.6                               ADVERSE
CHANGE.

 

4.6.1                     As of the
Closing Date, there is no fact known to Borrower which has had or could
reasonably be expected to have a Material Adverse Effect which has not been
disclosed to Administrative Agent or the Lenders (as of such date) by or on
behalf of Borrower on or prior to the Closing Date in connection with the
transactions contemplated hereby.

 

4.6.2                     Since the
Closing Date, no event, circumstance or condition shall have occurred and be
continuing that constitutes or could reasonably be expected to result in a
Material Adverse Effect.

 

4.7                               INVESTMENT
COMPANY ACT.  No Borrower
Entity is an “investment company” or a company “controlled by” an “investment
company,” each within the meaning of, or subject to regulation under, the
Investment Company Act of 1940, as amended.

 

4.8                               ERISA.  Either (a) there are no ERISA Plans or
Multiemployer Plans for any Borrower Entity or any ERISA Affiliate or
(b) (i) each Borrower Entity and each ERISA Affiliate has fulfilled
its obligations (if any) under the applicable minimum funding standards of
ERISA and the Code for each ERISA Plan, (ii) each such ERISA Plan is in
compliance in all material respects with the currently applicable provisions of
ERISA, the Code and other Governmental Rules, (iii) neither any Borrower
Entity nor any ERISA Affiliate has incurred any material liability to the PBGC
or an ERISA Plan or Multiemployer Plan under Title IV of ERISA (other than
liability for premiums due in the ordinary course), (iv) each such ERISA
Plan that is intended to qualify under Section 401(e) of the Code has
received a favorable determination or opinion letter from the Internal Revenue
Service, or the remedial amendment period with respect thereto has not yet
expired, or an application for such letter is currently being processed by the
Internal Revenue Service with respect thereto, and nothing has occurred which
could reasonably be expected to cause the loss of such qualification, and (v) no
Borrower Entity or any ERISA Affiliate has incurred, or reasonably expects to
incur, any material liability (and no event has occurred which with the giving
of notice under Section 4219 of ERISA, would result in such liability)
under Section 4201 or 4243 of ERISA. 
The Borrower’s assets do not constitute assets of an employee benefit
plan within the meaning of 29 C.F.R. Section 2510.3-101.  Borrower does not maintain, nor has it at any
point of its existence maintained, any employee-benefit plans that were subject
to Title IV of ERISA.

 

4.9                               PERMITS.

 

4.9.1                     There are no
Permits under the existing Legal Requirements with respect to the Project as it
is currently designed that are or will become Applicable Permits other than the
Permits listed in the Permit Schedule. 
Except as disclosed in the Permit Schedule, all Applicable 

 

34

 

Permits and, to the knowledge of Borrower,
Applicable Third Party Permits have been issued and are in full force and
effect and not subject to current legal proceedings or to any Unsatisfied
Condition that could reasonably be expected to result in material modification
or revocation, all applicable appeal periods with respect thereto have expired,
and the permittee thereunder is in compliance therewith.

 

4.9.2                     With respect to
any of the Permits which are not yet Applicable Permits or, to the knowledge of
Borrower, Applicable Third Party Permits, to Borrower’s knowledge, no fact or
circumstance exists which makes it likely that any such Permit will not be
obtainable by Borrower or the applicable Person identified in the Permit
Schedule (a) prior to the time that it becomes an Applicable Permit or
Applicable Third Party Permit, as applicable, (b) without delay materially
in excess of the time periods thereof in the Project Schedule (if applicable)
and (c) without expense materially in excess of the amounts provided
therefor in the then-current Project Budget.

 

4.9.3                     Except as
disclosed in the Permit Schedule, the Permits which have been obtained by
Borrower or, to Borrower’s knowledge, any other person identified in the Permit
Schedule are not and shall not be subject to any restriction, condition,
limitation or other provision that could reasonably be expected to have a
Material Adverse Effect.

 

4.10                        HAZARDOUS
SUBSTANCES.

 

4.10.1              Except as set
forth in Exhibit G-5: 
(a) Borrower, with respect to the Real Property, is not and has not
in the past received written notice that it has been in violation of any
Hazardous Substance Law which violation could reasonably be expected
(i) to result in a material liability to, or material Environmental Claims
against, Borrower or its properties and assets, (ii) to result in an
inability of Borrower to perform its obligations under the Operative Documents,
(iii) to materially and adversely interfere with the continuing operation
of the Project, or (iv) to materially and adversely impair the fair market
value of any Mortgaged Property; (b) neither Borrower nor, to Borrower’s
knowledge, any other Person has used, Released, threatened to Release, generated,
manufactured, produced or stored in, on, under, or about the Real Property, or
transported thereto or therefrom, any Hazardous Substances that could
reasonably be expected to subject any Secured Party to liability, or Borrower  to material liability, under any Hazardous Substance Law;
(c) to Borrower’s knowledge, there are no underground tanks, whether
operative or temporarily or permanently closed, located on the Real Property;
(d) to Borrower’s knowledge, there are no Hazardous Substances used, stored
or present at or on the Real Property, except in compliance with Hazardous
Substance Laws and other Legal Requirements or as disclosed in the Phase I
Environmental Report; (e) to Borrower’s knowledge, there are no Hazardous
Substances that could reasonably be expected to migrate onto the Real Property,
except as disclosed in the Phase I Environmental Report; and (f) to
Borrower’s knowledge, there neither is nor has been any condition,
circumstance, action, activity or event that could reasonably be expected to
be, or result in, a material violation by Borrower of any Hazardous Substance
Law, or to result in liability to any Secured Party or material liability to
Borrower under any Hazardous Substance Law or any other material Environmental
Claims against Borrower or any Secured Party.

 

35

 

4.10.2              Except as set
forth on Exhibit G-4 or Exhibit G-5, with respect to
the Real Property, (a) as of the Closing Date, there is no pending or,
threatened in writing or, to Borrower’s knowledge, contemplated, action, suit
or proceeding under any Hazardous Substance Law by any Governmental Authority
or any other Person which is not a Governmental Authority to which Borrower is
or will be named as a party, and (b) thereafter, there is no pending or,
threatened in writing or, to Borrower’s knowledge, contemplated, action, suit
or proceeding by any Governmental Authority or any non-governmental third party
under any Hazardous Substance Law which could reasonably be expected to have a Material Adverse Effect.

 

4.10.3              With respect to
the Real Property, (a) there is no consent or other decree, consent order,
administrative or other order, or other administrative or judicial requirement
outstanding under any Hazardous Substance Law, and (b) Borrower has not
received written notice and is not aware of any claim or notice of violation,
alleged violation, non-compliance, liability or potential liability under any
Hazardous Substance Law, nor does Borrower have knowledge or reason to believe
that any such action is being contemplated, considered or threatened.

 

4.10.4              Except as set
forth in the Phase I Environmental Report, to Borrower’s knowledge there are no
past violations that have not been finally resolved or existing violations of
any Hazardous Substances Laws by any Person affecting the Real Property.

 

4.10.5              As of the
Closing Date, there are no environmental reports, investigations, studies,
audits, reviews or other analyses conducted by or which are in the possession
of or known to Borrower in relation to the use, storage or presence of
Hazardous Substances at or on the Site other than the Phase I Environmental
Report.

 

4.11                        LITIGATION.

 

4.11.1              As of the
Closing Date, except as set forth on Exhibit G-4, no action,
litigation, suit, proceeding or investigation before or by any court,
arbitrator or other Governmental Authority is pending or, to Borrower’s
knowledge, threatened in writing by or against Borrower, or any other Borrower
Entity or Major Project Participant as relates to the Project, or any of their
respective properties that relate to the Project.

 

4.11.2              As of the
Closing Date, Borrower has no knowledge of any order, judgment or decree having
been issued or proposed to be issued by any Governmental Authority that, as a
result of the construction, development, ownership or operation of the Project
by Borrower, the sale of electricity therefrom by Borrower or the entering into
of any Operative Document or any transaction contemplated hereby or thereby,
could reasonably be expected to cause or deem any Secured Party or Borrower or
any Affiliate of any of them to be subject to, or not exempted from, regulation
under PUHCA, or treated as a public utility under the laws of the Project
Jurisdiction as presently constituted and as construed by the courts of the
Project Jurisdiction, respecting the rates or the financial or organizational
regulation of electric utilities.

 

4.11.3              After the
Closing Date, except as set forth on Exhibit G-4, (a) there
are no pending or, to Borrower’s knowledge, threatened action, litigation,
suit, proceeding or investigation of any kind, including actions or proceedings
of or before any Governmental Entity 

 

36

 

or arbitrator to which Borrower or any other Borrower
Entity is a party, or by which any of them or any of their properties that
relate to the Project are bound and (b) there are to Borrower’s knowledge,
no pending or threatened action, litigation, suit, proceeding or investigation
of any kind, including actions or proceedings of or before any Governmental
Authority to which any Major Project Participant is a party, or by which any of
them or any of their properties that relate to the Project are bound, which, in
either case, have not been disclosed by Borrower to Administrative Agent in
accordance with, and to the extent required by, Section 5.4, other than
any such actions or proceedings which could not reasonably be expected to have
a Material Adverse Effect.

 

4.12                        NO
LABOR DISPUTES; FORCE MAJEURE.  Neither the business nor the properties of
Borrower or, to Borrower’s knowledge, any other Major Project Participant are
currently affected by any fire, explosion, accident, strike, “force majeure”
(as defined in any Project Document), lockout or other labor dispute, drought,
storm, hail, earthquake, embargo, act of God or of the public enemy, or other
casualty (whether or not covered by insurance), which could reasonably be
expected to have a Material Adverse Effect.

 

4.13                        OPERATIVE
DOCUMENTS.

 

4.13.1              Copies of all
of the Project Documents (other than any Project Document that is only
incidental to the development, construction, leasing, ownership or operation of
the Project) executed on or prior to such date have been delivered to
Administrative Agent by Borrower.  Since
the Closing Date, except as has been disclosed to Administrative Agent in
writing and as permitted hereunder, as of such date, none of such Project
Documents has been amended, modified or terminated (other than expiration
thereof in accordance with its terms and the Credit Documents) and all such
Project Documents are in full force and effect.

 

4.13.2              To Borrower’s
knowledge, except as disclosed to Administrative Agent in writing at or prior
to the time the representation and warranty in this Section 4.13.2 is
being made, the representations and warranties of the Major Project
Participants contained in the Operative Documents (other than this Agreement)
are true and correct in all material respects.

 

4.14                        DISCLOSURE.  The information regarding the Project and any
Borrower Entity included in this Agreement  and the
reports, financial statements, certificates, Notices of Borrowing, exhibits,
schedules and other documents furnished to any Secured Party, or to the
Independent Engineer, Insurance Consultant, Wind Consultant or
Environmental Consultant, by or, to Borrower’s knowledge, on behalf of
Borrower, taken as a whole, did not contain and do not contain any material
misstatement of fact or omitted or omits to state any material fact necessary
to make the statements therein, in the light of the circumstances under which
they were or are made, taken as a whole, not misleading as of the date such
information is dated or certified; provided, that to the extent any such
information, report, financial statement, exhibit or schedule was based upon or
constitutes a forecast or projection, Borrower represents only that it acted in
good faith and utilized reasonable assumptions and due care in the preparation
of such information, report, financial statement, exhibit or schedule.

 

37

 

4.15                        TAXES.

 

4.15.1              All federal,
state, local, and foreign tax returns, information statements and reports that
are required to be filed by or with respect to Borrower have been timely filed,
and all taxes (or, with respect to the item listed on Exhibit G-4
as of the Closing Date, the Project Budget includes a line-item for the maximum
amount of taxes claimed by the applicable taxing authorities that is the
subject of such contested tax), material assessments, utility charges, fees and
other governmental charges required to be paid by or with respect to Borrower
have been timely paid (other than those taxes, if any, that it is contesting in
good faith and by appropriate proceedings in accordance with the requirements
of Section 5.18).  Borrower knows of
no proposed tax assessment against any Borrower Entity which could reasonably
be expected to have a Material Adverse Effect. 
In either case, to the extent such taxes, assessments, charges and fees
are not due, the applicable Borrower Entity has established reserves that are
adequate for the payment thereof in conformity with GAAP.

 

4.15.2              At all times
since its formation, each of Pledgor and Borrower has been an entity with a
single owner that is disregarded as separate from its owner for federal (and
where applicable, state) tax purposes. 
No IRS Form 8832 has ever been filed with respect to Pledgor or
Borrower as other than a disregarded entity.

 

4.15.3              Borrower has no
liability for the taxes of any Person (other than Borrower) (a) under
Treasury Regulations Section 1.1502-6 (or any similar provision of state,
local or foreign law), (b) as a transferee or successor, (c) by
contract or (d) otherwise.

 

4.15.4              Borrower does
not intend to treat the Loans (including the incurrence thereof) as being a “reportable
transaction” (within the meaning of Treasury Regulation Section 1.6011-4).

 

4.16                        GOVERNMENTAL
REGULATION.  None of Parent,
Pledgor, Borrower or any Secured Party or any Affiliate of any of them will,
solely as a result of the construction, ownership, leasing or operation of the
Project, the sale of wholesale electric capacity, energy or ancillary services
therefrom, the making of the Loans, or the entering into any Operative Document
in respect of the Project or any transaction contemplated hereby or thereby, be
subject to, or not exempt from, regulation under the FPA or PUHCA or under
state laws and regulations respecting the rates or the financial regulation of
electric utilities, except that (a) Borrower will be subject to the
compliance requirements under PUHCA applicable to an Exempt Wholesale Generator
and an owner of an Eligible Facility, (b) Borrower will be a “public
utility” under the FPA with authority to sell wholesale electric capacity,
energy and ancillary services at market-based rates and with all waivers of
regulations and blanket authorizations as are customarily granted by FERC to a “public
utility” that sells at wholesale electric power and ancillary services at
market-based rates, and (c) the exercise of remedies, as provided for
under the Credit Documents, may cause any such Persons to be subject to
regulation (i) under the FPA (ii) under state laws and regulations
respecting the financial or organizational regulation of electric utilities, (iii) to
the extent the Project is no longer an Exempt Wholesale Generator, under PUHCA,
and (iv) to the extent the Project sells at retail or otherwise furnishes
electric capacity, energy, ancillary services, or transmission or distribution
services to consumers for domestic, commercial, or industrial use, under state
laws and regulations respecting the rates and the financial or organizational
regulation of electric utilities.  Except
to the extent provided in the first sentence of this Section 4.16,
Borrower will not be deemed by any Governmental Authority

 

38

 

having
jurisdiction to be subject to, or not exempt from, financial or rate regulation
as an “electric utility”, “electric corporation”, “electrical company”, “public
utility”, or “holding company” or any similar Person under any applicable
Governmental Rule then in effect.

 

4.17                        REGULATION
U, ETC.  Borrower is
not engaged principally, or as one of its principal or important activities, in
the business of extending credit for the purpose of “buying,” “carrying” or “purchasing”
any “margin stock” (each as defined in Regulations T, U or X of the Federal
Reserve Board, each as now and from time to time hereafter in effect), and no
part of the proceeds of the Loans or the Project Revenues will be used whether
directly or indirectly, and whether immediately, incidentally or ultimately,
for the purpose of “buying,” “carrying” or “purchasing” any such margin stock
or for any other purpose that entails a violation of, or that is inconsistent
with, the provisions of the regulations of the Federal Reserve Board, including
Regulation T, U or X.  Pledgor’s pledge
of the membership interests in Borrower pursuant to the Pledge Agreement does
not violate such regulations.

 

4.18                        BUDGETS;
PROJECTIONS.  Borrower has
prepared the Project Budget and the Base Case Projections in good faith, is
responsible for developing the assumptions on which the Project Budget and the
Base Case Projects are based, and the Project Budget and Base Case Projections
(a) as of the date delivered, updated or supplemented are based on
reasonable assumptions (including as to all legal and factual matters material
to the estimates set forth therein), (b) as of the date delivered, updated
or supplemented are consistent in all material respects with the provisions of
the Project Documents executed on or prior to such date, (c) as of the
date delivered, updated or supplemented indicate that the estimated aggregate
Project Costs will not exceed Available Construction Funds; and (d) disclose
all material assumptions made in the preparation thereof, including assumptions
with respect to general economic, financial and market conditions.

 

4.19                        FINANCIAL
STATEMENTS.

 

4.19.1              In the case of
each financial statement of Borrower and accompanying information delivered by
Borrower under the Credit Documents, each such financial statement and
information has been prepared in conformity with GAAP applied consistently
throughout the relevant periods (except as otherwise approved and disclosed
therein) and fairly presents, in all material respects, the financial position
(on a consolidated and, where applicable, consolidating basis) of Borrower,
described in such financial statements as at the respective dates thereof and
the results of operations and cash flows (on a consolidated and, where
applicable, consolidating basis) of Borrower described therein for each of the
periods then ended, subject, in the case of any such unaudited financial
statements, to changes resulting from audit and normal year-end adjustments and
the absence of footnote disclosure.

 

4.19.2              Except for the
obligations under the Operative Documents to which it is a party, Borrower does
not (and will not following the funding of the initial Loans) have any
contingent obligations, undisclosed liabilities, unmatured liabilities,
contingent liability or liability for taxes, long-term lease or forward or
long-term commitment (including any interest rate or foreign currency swap or
exchange transaction or other financial derivative) required to be shown under
GAAP that are not reflected in the foregoing financial statements or the notes
thereto and which in any such case are material in relation to the business,
results of operations, 

 

39

 

properties or financial condition of Borrower, nor
has a Material Adverse Effect occurred during such period.

 

4.19.3              There has been
no sale, transfer or other disposition by Borrower of any material part of its
business or property, including the Project, and no purchase or other
acquisition of any business or property (including capital stock of any
Person).

 

4.20                        NO
DEFAULT.  No Default
or Event of Default which has not been disclosed to Administrative Agent in
writing has occurred and is continuing.

 

4.21                        ORGANIZATIONAL
ID NUMBER; LOCATION OF TANGIBLE COLLATERAL.

 

4.21.1              Borrower’s
organizational identification number is 4244523.

 

4.21.2              All of the
tangible Collateral is, or when installed pursuant to the Project Documents
will be, located on the Site, the Easements or at Borrower’s address set forth
in Section 13.1.1; provided, that equipment may be temporarily
removed from the Site and/or the Easements from time to time in the ordinary
course of business.

 

4.22                        TITLE
AND LIENS.Borrower has (a) good, marketable and insurable
(i) fee or leasehold interest in the Site (other than the BLM Right of Way (Phase II), the BLM Right of Way (Generator Lead Line),
the Site Common Facilities, the Circle Four Easements and the SITLA Right of
Way), (ii) interests in the BLM Right
of Way (Phase II) and Circle Four Easements, and (iii) an undivided tenant
in common interest in the Easements, the BLM Right of Way (Generator Lead Line), the SITLA Right of Way and the Site Common Facilities, in each case free of all
Liens other than the Title Exceptions, and (iv) interest in any other Real
Property, and (b) good, legal and valid title to all other Collateral,
free of all Liens other than Permitted Liens.

 

4.23                        INTELLECTUAL
PROPERTY.

 

4.23.1              Borrower owns
or has the right to use all licenses, permits, franchises, authorizations,
patents, copyrights, service marks, trademarks and trade names, or rights
thereto, that are necessary for the operation of its business, without known conflict
with the rights of others.  No product of
Borrower infringes in any material respect any license, permit, franchise,
authorization, patent, copyright, service mark, trademark, trade name or other
right owned by any other Person;

 

4.23.3              To the knowledge
of Borrower, there is no violation by any Person of any right of Borrower with
respect to any patent, copyright, service mark, trademark, trade name or other
right owned or used by Borrower; and

 

4.23.4              There exists no
pending or threatened in writing claim or litigation against or affecting
Borrower contesting its right to sell or use any such product, process, method,
substance, part or other material.

 

4.23.5              Borrower owns
no registered patents, copyrights or trademarks, or applications therefor.

 

40

 

4.24                        COLLATERAL.  The respective liens and security interests
granted to Collateral Agent pursuant to the Collateral Documents
(a) constitute as to personal property included in the Collateral a valid
security interest under the applicable UCC and (b) constitute as to the
Mortgaged Property included in the Collateral a valid lien and security
interest in the Mortgaged Property under the laws of the State of Utah.  The security interest granted to Collateral
Agent pursuant to the Collateral Documents in the Collateral consisting of
personal property has been perfected (i) with respect to any property that
can be perfected by filing, upon the filing of financing statements in the
filing offices identified in Exhibit D-5 (provided that the
recording of the Trust Deed shall fulfill this requirement with respect to
fixtures described therein), (ii) with respect to any property that can be
perfected by control, upon execution of the Depositary Agreement, and (iii) with
respect to any property (if any) that can be perfected by possession, upon
Collateral Agent receiving possession thereof, and in each case such security
interest will be, as to Collateral perfected under the UCC or otherwise as
aforesaid, superior and prior to the rights of all third Persons now existing
or hereafter arising whether by way of Lien of any type, assignment or
otherwise, except (I) Title Exceptions and Permitted Liens described in
clauses (a) and (e) of the definition of “Permitted Liens” and
(II) to the extent required by Governmental Rule, Permitted Liens
described in the other clauses of the definition of “Permitted Liens.”  All such action as is necessary to establish
and perfect Collateral Agent’s rights in and to existing Collateral has been
taken to the extent Collateral Agent’s security interest can be perfected by
filing, including any recording, filing, registration, giving of notice or
other similar action.  As of the Closing
Date, no filing, recordation, re-filing or re-recording other than those listed
on Exhibit D-5 is necessary to perfect and maintain the perfection
of the interest, title or Liens on the Collateral comprising personal property,
and on the Closing Date all such filings or recordings will have been made to
the extent Collateral Agent’s security interest can be perfected by
filing.  Borrower has properly delivered
or caused to be delivered, or provided control, to Collateral Agent or
Depositary all Collateral that permits perfection of the Lien and security
interest described above by possession or control.

 

4.25                        SUFFICIENCY OF PROJECT DOCUMENTS.

 

4.25.1              Other than
those that can be reasonably expected to be commercially available when and as
required, the services to be performed, the materials to be supplied and the
real property interests, the Easements and other rights granted, or to be
granted, pursuant to the Project Documents in effect as of such date:

 

(a)                                  comprise all of
the property interests necessary to secure any right material to the
acquisition, leasing, development, construction, installation, completion,
operation and maintenance of the Project in material accordance with all Legal
Requirements and in material accordance with the Project Schedule, all without
reference to any proprietary information not owned by or available to Borrower;

 

(b)                                 are sufficient
to enable the Project to be located, constructed, developed, owned, occupied,
operated, maintained and used on the Site and the Easements; and

 

(c)                                  provide
adequate ingress and egress from the Site for any reasonable purpose in
connection with the construction and operation of the Project.

 

41

 

4.25.2              There are no
services, materials or rights required for the construction or operation of the
Project in accordance with the Construction Contract, the other Major Project
Documents and the assumptions that form the basis of the Base Case Projections,
other than those (a) to be provided under the Project Documents or
(b) that can reasonably be expected to be commercially available at or for
delivery to the Site on commercially reasonable terms consistent with the
then-current Project Budget and the then-current Annual Operating Budget and
the Base Case Projections.

 

4.26                        UTILITIES.  All utility services necessary for the
construction and the operation of the Project for its intended purposes are
available at the Project or can reasonably be expected to be so available as
and when required upon commercially reasonable terms substantially consistent
with the then-current Project Budget, the Project Schedule and the then-current
Annual Operating Budget and the Base Case Projections.

 

4.27                        OTHER
FACILITIES.

 

4.27.1              All roads
necessary for the construction and full utilization of the Project for its
intended purposes have either been completed or Borrower possesses the
necessary rights of way therefor, other than rights of way that can reasonably
be expected to be available on commercially reasonable terms as and when
needed.

 

4.27.2              Borrower possesses, or to Borrower’s
knowledge the counterparties to the Major Project Documents pursuant to which
interconnection facilities will be constructed and, if applicable, operated for
the benefit of the Project, possess and are obligated, except for restrictions
or limitations contained in the applicable Project Documents, to provide or
make available to Borrower, all necessary easements, rights of way, licenses,
agreements and other rights for the construction, interconnection and
utilization of the interconnection facilities (including water, wastewater and
electrical).

 

4.28                        FLOOD
ZONE DISCLOSURE.  The Site and
Easements do not and will not include improvements located in an area that has
been identified by the Federal Emergency Management Agency as an area having
special flood or mudslide hazards and in which flood insurance has been made
available under the National Flood Insurance Act of 1968, as amended.

 

4.29                        INSURANCE.  All insurance policies then required to be
maintained by Borrower and, to Borrower’s knowledge, each other Major Project
Participant pursuant to the terms of any Operative Document are in full force
and effect, and all premiums then due and payable have been paid.

 

4.30                        ANTI-TERRORISM
LAW.

 

(a)                                  Neither
Borrower nor, to the knowledge of Borrower, any other Credit Party or any
Affiliate is in violation of (i) any of the foreign assets control
regulations of the United States Treasury Department (31 C.F.R.,
Subtitle B, Chapter V, as amended) or any enabling legislation or
executive order relating thereto, (ii) Executive Order No. 13,224, 66
Fed. Reg. 49,079 (2001), issued by the President of the United States
(Executive Order Blocking Property and Prohibiting Transactions with Persons
Who Commit, Threaten to Commit or Support Terrorism) (the “Executive Order”)
or (iii) the anti-money laundering provisions of the

 

42

 

Uniting and Strengthening America by Providing
Appropriate Tools Required to Intercept and Obstruct Terrorism (USA Patriot
Act) Act of 2001, Public Law 107-56 (October 26, 2001) (the “Patriot
Act”), amending the Bank Secrecy Act, 31 U.S.C. Section 5311 et
seq., and any other laws relating to terrorism or money laundering
(collectively, “Anti-Terrorism Laws”).

 

(b)                                 None of the
Affiliates, brokers or other agents of any Credit Party acting or benefiting in
any capacity in connection with the Loans is any of the following:  (i) a Person that is listed in the annex
to, or is otherwise subject to the provisions of, the Executive Order;
(ii) a Person owned or controlled by, or acting for or on behalf of, any
person that is listed in the annex to, or is otherwise subject to the
provisions of, the Executive Order; (iii) a Person with which any Lender
is prohibited from dealing or otherwise engaging in any transaction by any
Anti-Terrorism Law; (iv) a Person that commits, threatens or conspires to
commit or supports “terrorism” as defined in the Executive Order; or (v) a
Person that is named as a “specially designated national and blocked person” on
the most current list published by OFAC at its official website or any
replacement website or other replacement official publication of such list.

 

(c)                                  No broker or
other agent of any Borrower Entity acting in any capacity in connection with
the Loans (i) conducts any business or engages in making or receiving any
contribution of funds, goods or services to or for the benefit of any person
described in paragraph (b) above, (ii) deals in, or otherwise
engages in any transaction relating to, any property or interests in property
blocked pursuant to the Executive Order, or (iii) engages in or conspires
to engage in any transaction that evades or avoids, or has the purpose of
evading or avoiding, or attempts to violate, any of the prohibitions set forth
in any Anti-Terrorism Law.

 

4.31                        INVESTMENTS.  Other than Permitted Investments, Borrower
has not acquired an equity interest in, acquired all or substantially all of
the assets of, loaned money, extended credit or made advances to, or made
deposits with (other than deposits or advances in relation to the payment for
goods and equipment in the ordinary course of business the making of which is
expressly contemplated pursuant to the Operative Documents), any Person.

 

4.32                        NO
RECORDATION, ETC.  Each
Operative Document is in proper legal form under the respective governing laws
selected in such Operative Document for the enforcement thereof in such
jurisdictions against Borrower and each other party thereto without any further
action on the part of Administrative Agent or other Secured Parties.  To ensure the legality, validity,
enforceability, priority or admissibility in evidence of any such document it
is not necessary that such document or any other document be filed, registered
or recorded with, or executed or notarized before, any court or other authority
in such jurisdiction or that any registration charge or stamp or similar tax be
paid on or in respect of any such document, except for the recordation of
Collateral Documents and filing and recordation of such other documents as
specifically contemplated pursuant to this Agreement.

 

4.33                        ENTITLEMENT
TO GRANT.  The
Borrower and the Project meet the standards for applicant and property
eligibility set forth in the Treasury Guidance. 
The risk of recapture liability in respect of the Grant proceeds is
limited to those circumstances described in the Treasury Guidance as of the
Closing Date.  As of the Closing Date,
the Borrower’s commercially reasonable estimate is that the proceeds of the
Grant will be approximately $78,139,544. 
Such estimate (a) is, as of the Closing Date, based on reasonable
assumptions as to 

 

43

 

all legal and factual matters material to the
estimates set forth therein, (b) as of the Closing Date, is consistent
with the provisions of the Credit Documents, (c) has been calculated in
good faith and with due care, (d) fairly represents the Borrower’s
reasonable expectations as to the matters covered thereby as of their date and (e) is
consistent with the Cost Segregation Report delivered hereunder.  There are no taxes, assessments or other
governmental charges or levies imposed or payable on or with respect to the
Grant.  As of the date upon which the
Project is placed into service, Borrower is not a Disqualified Person and will
have made every election that is necessary to claim and apply for the Grant in
accordance with the Treasury Guidance and applicable law.

 

4.34                        NO
OWNERSHIP BY DISQUALIFIED PERSONS.  None of Borrower, Pledgor or Parent is a
Disqualified Person.  Parent is a
corporation for tax purposes.

 

4.35                        SOLVENCY.  Borrower is Solvent both before and after taking
into account the transactions contemplated by the Credit Documents.

 

4.36                        PPA.

 

4.36.1              Borrower has
not requested early termination of the PPA.

 

4.36.2              Borrower is a “Special
Purpose Entity” as such term is defined in the PPA.

 

4.36.3              Each of the
Leases, the SITLA Right of Way, the BLM Right of Way (Phase II) and the BLM
Right of Way (Generator Lead Line) have been approved by SCPPA.

 

4.36.4              Borrower has
provided SCPPA each of the reports required under Section 3.3 of the PPA.

 

4.36.5              Borrower has
enforced the Leases and the other Major Project Documents to which it is a
party in accordance with their terms.

 

ARTICLE 5

AFFIRMATIVE COVENANTS

 

5.1                               USE OF
PROCEEDS, EQUITY CONTRIBUTIONS AND PROJECT REVENUES.

 

5.1.1                     Proceeds
and Equity Contributions.

 

(a)                                 Unless
otherwise applied by Administrative Agent pursuant to any Credit Document,
Borrower shall (i) deposit the proceeds of the Loans and any cash equity
contributions in the Construction Account, (ii) hold such proceeds in
trust until deposited in the Construction Account and (iii) subject to
Section 5.1.1(b), use them solely to pay Project Costs.

 

(b)                                 Notwithstanding
anything to the contrary herein, Borrower shall be permitted to: (i) use
the proceeds of Loans made available on the initial borrowing date to reimburse
Sponsor or its Affiliates for Project Costs previously incurred and paid by
such Person; provided that (A) such Project Costs are verified by
Independent Engineer and (B) such reimbursement does not exceed the
difference between the aggregate amount of such Project 

 

44

 

Costs and the Base Equity Requirement; and (ii) use
the Proceeds of the Loan to make the Performance LC Distribution.

 

5.1.2                     Revenues.  Unless otherwise applied by Administrative Agent
or Collateral Agent pursuant to any Credit Document, Borrower shall apply any
Project Revenues, equity contributions, Loan proceeds, Insurance Proceeds
and damage payments solely for the purpose, and in the order and manner,
provided for in Article 7.

 

5.1.3                     Misapplication
of Funds. 
Notwithstanding anything to the contrary herein, in the event that funds
required to be deposited in one Account are erroneously deposited into another
Account, it shall not be an Event of Default so long as Borrower issues an
Account Withdrawal Request requesting Administrative Agent to issue Account
Withdrawal Instructions correcting such misapplication within three Business
Days after Borrower has actual knowledge of such misapplication.

 

5.2                               PAYMENT.

 

5.2.1                     Credit
Documents.  Borrower
shall pay all sums due under the Credit Documents to which it is a party
according to the terms hereof and thereof.

 

5.2.2                     Other
Obligations.  Borrower
shall pay, discharge or otherwise satisfy at or before maturity or before they
become delinquent, as the case may be, all of its obligations under  the Project Documents and all of its other obligations of
whatever nature and howsoever arising, except (a) such as may be contested
in good faith or as to which a bona fide dispute may exist, provided,
that adequate cash reserves have been established in conformity with GAAP, or
Administrative Agent is satisfied in its reasonable discretion that non-payment
of such obligation pending the resolution of such contest or dispute will not
in any way endanger the Project or result in a Material Adverse Effect or that
provision is made to the satisfaction of Administrative Agent in its reasonable
discretion for the posting of security (other than the Collateral) for or the
bonding of such obligations or the prompt payment thereof in the event that
such obligation is payable and (b) Borrower’s trade payables which shall
be paid in the ordinary course of business.

 

5.3                               MAINTENANCE
OF PROPERTY.  Other than
property disposed of in accordance with Section 6.4, Borrower shall
maintain (a) a good, marketable and insurable (i) fee or leasehold
interest in the Site (other than the BLM Right of Way (Phase II), the BLM Right
of Way (Generator Lead Line), the Site Common Facilities, the Circle Four
Easements and the SITLA Right of Way), (ii) interest in the BLM Right of
Way (Phase II) and the Circle Four Easements, (iii) undivided tenant in
common easement interest in the Easements, the BLM Right of Way (Generator Lead
Line), the Site Common Facilities and the SITLA Right of Way, and (iv) interest
in any other Real Property, and (b) good, legal and valid title to all of
its other material properties and assets, in each case free and clear of all
Liens other than Permitted Liens. 
Borrower shall generally keep all property useful and necessary in its
business in good working order and condition.

 

5.4                               NOTICES.  Borrower shall upon acquiring notice or
giving notice (except as otherwise specified below), as the case may be, or
obtaining knowledge thereof, promptly (and in any event, within 10 Business
Days unless otherwise noted below) give notice (with copies of 

 

45

 

any underlying notices, papers, files or related
documentation) to Administrative Agent, accompanied by a statement of a
Responsible Officer setting forth details of the occurrence referred to therein
and stating what action Borrower proposes to take with respect thereto, of:

 

5.4.1                     any litigation
pending or, to Borrower’s knowledge, threatened in writing against Borrower
involving claims against Borrower or the Project in excess of $1,000,000
individually or in the aggregate per calendar year or involving any injunctive,
declaratory or other equitable relief, such notice to include, if requested in
writing by Administrative Agent, copies of all papers filed in such litigation
and to be given monthly if any such papers have been filed since the last
notice given;

 

5.4.2                     any dispute or
disputes for which written notice has been received by Borrower which may exist
between Borrower or any holder of an Applicable Third Party Permit and any
Governmental Authority and which involve (a) claims against Borrower which
exceed $500,000 individually or in the aggregate per calendar year,
(b) injunctive or declaratory relief, or (c) revocation,
modification, failure to renew or the like of any Applicable Permit or
Applicable Third Party Permit;

 

5.4.3                     within five
days after a Responsible Officer having knowledge thereof, any Default or Event
of Default;

 

5.4.4                     any casualty,
damage or loss, whether or not insured, through fire, theft, other hazard or
casualty, or any act or omission of (a) Borrower, its employees, agents,
contractors or representatives in excess of $500,000 for any one event or in
the aggregate in any calendar year, or (b) to Borrower’s knowledge, any
other Material Project Participant if such casualty, damage or loss could
reasonably be expected to have a material adverse effect on the business, costs
or property of such Person or the ability of such Person to perform its
obligations under the Operative Documents;

 

5.4.5                     within five
Business Days, any cancellation, suspension or material change in the terms,
coverage or amounts of any insurance described in Exhibit K;

 

5.4.6                     any contractual
obligations incurred by Borrower exceeding $250,000 per year in the aggregate
for the Project, not including any obligations incurred pursuant to the Credit
Documents or the Project Documents or any obligation contemplated in the
then-current Project Budget or the then-current Annual Operating Budget;

 

5.4.7                     any intentional
withholding of compensation to, or any right to withhold compensation claimed
by, any Major Project Participant or pursuant to any Major Project Document,
other than retention provided by the express terms of any such contracts;

 

5.4.8                     any
(a) termination (other than expiration in accordance with its terms and
any applicable Consent) of, or material default of which Borrower has knowledge
or written notice thereof under, any Major Project Document, (b) material
Project Document Modification (with copies of all such Project Document
Modifications whether or not requiring approval of Administrative Agent or the
Required Lenders pursuant to Section 6.12) and (c) without
duplication, any material dispute, relating to the Project, between Borrower
and any Major Project Participant;

 

46

 

5.4.9                     any written
claim of events of force majeure, change orders in excess of $250,000, or
Borrower caused delay under any Major Project Document (including claims
therefor regardless of whether Borrower believes such claim has merit) and, to
the extent requested by Administrative Agent, copies of invoices or statements
which are reasonably available to Borrower under any Major Project Document,
certified by an authorized representative of Borrower, together with a copy of
any supporting documentation, schedule, data or affidavit delivered under such
Major Project Document; provided, however, Borrower shall provide
copies of any notices received under the PPA as promptly as practicable after
the date of such receipt (and in any event within three Business Days after the
date of such receipt);

 

5.4.10              any
(a) material noncompliance with any Hazardous Substance Law or any
material Release, or material threat of Release, of Hazardous Substances on or
from the Real Property that has resulted or could reasonably be expected to
result in personal injury or material property damage or to have a Material
Adverse Effect or is required to be reported to any Governmental Authority
under any Hazardous Substance Law, (b) pending or, to Borrower’s
knowledge, threatened in writing, Environmental Claim against Borrower or, to
Borrower’s knowledge, any of its Affiliates, contractors, lessees or any other
Persons, arising in connection with their occupying or conducting operations on
or at the Real Property which, if adversely determined, could reasonably be
expected to have a Material Adverse Effect, (c) any condition,
circumstance, occurrence or event that could reasonably be expected to result
in a material liability under Hazardous Substance Laws or in the imposition of
any Lien or any other restriction on the title, ownership or transferability of
any Real Property, (d) any proposed action to be taken by Borrower that
could reasonably be expected to subject it to any material additional or
different requirements or liabilities under Hazardous Substance Laws, or
(e) existence of any underground tank, whether operative or temporarily or
permanently closed, located on the Real Property;

 

5.4.11              promptly, but
in no event later than 15 days prior to the time any Person will become a
member of Borrower or the occurrence of any other change in or transfer of
ownership interests in Borrower or the Project, notice thereof, which notice
shall identify such Person and such Person’s interest in Borrower or shall
describe, in reasonable detail, such other change or transfer;

 

5.4.12              any material
written notices, reports or information (including any notice that the Project
has achieved mechanical completion, substantial completion and final completion
(or any similar concepts) under the Construction Contract) delivered to or
received by Borrower or any Operator from the parties to the Major Project
Documents;

 

5.4.13              any proceeding
or legislation by any Governmental Authority to confiscate, condemn,
expropriate, nationalize or otherwise acquire compulsorily Borrower, all or any
portion of the Collateral, or all or any portion of Borrower’s business or
assets (whether or not constituting an Event of Default);

 

5.4.14              promptly, but
in no event later than 30 days after the receipt thereof by Borrower,
copies of (a) all Applicable Permits obtained by Borrower after the
Closing Date, (b) any amendment, supplement or other modification to any
Applicable Permit received by 

 

47

 

Borrower after the Closing Date and (c) all
material notices relating to the Project received by Borrower from, or
delivered by Borrower to, any Governmental Authority;

 

5.4.15              promptly, but
in no event later than five days after occurrence thereof, (a) the
scheduling of any substantial outage with an anticipated duration in excess of
five days and (b) any substantial outage (scheduled or otherwise) with a
duration in excess of five days;

 

5.4.16              within five
Business Days of receipt thereof, copies of any recovery plan proposed by any
Construction Contractor for review by Administrative Agent and the Independent
Engineer;

 

5.4.17              any default or
event of default under any contractual obligations of Borrower, which if not
cured would have a Material Adverse Effect;

 

5.4.18              any Lien (other
than a Permitted Lien) being granted or established or becoming enforceable
over any portion of Collateral;

 

5.4.19              the occurrence
of any event, condition, circumstance or change that has caused or evidences,
individually or in the aggregate, the occurrence of any event having, a
Material Adverse Effect;

 

5.4.20              (a) within
10 days prior to the occurrence of a Reportable Event with respect to any
ERISA Plan; (b) promptly, but in no event later than 15 days, after
the complete or partial withdrawal of any Credit Party or any ERISA Affiliate
from a Multiemployer Plan or receipt by any Credit Party of notification that a
Multiemployer Plan is in reorganization (within the meaning of Section 4241
of ERISA); (c) promptly, but in no event later than five days, after any
Credit Party has knowledge that the PBGC has instituted any proceedings to
terminate any ERISA Plan or Multiemployer Plan or has taken action to appoint a
trustee of any ERISA Plan under Section 4042 of ERISA; (d) promptly,
but in no event later than 10 days, after the occurrence of any event
which could reasonably be expected to give rise to a lien in favor of the IRS
or the PBGC under any ERISA Plan; (e) promptly, but in no event later than
30 days, after any Credit Party has knowledge that a Multiemployer Plan is
in “critical” or “endangered” status within the meaning of Section 305 of
ERISA, is insolvent or intends to terminate an ERISA Plan under
Section 4041A of ERISA and (f) promptly, but in no event later than
10 days prior to the date any Credit Party or any ERISA Affiliate shall
apply for a minimum funding waiver under Section 412 of the Code with
respect to an ERISA Plan, a description thereof and copies of documents and
materials related thereto;

 

5.4.21              any Change of
Control or Recapture Event;

 

5.4.22              At least 90
days prior to Commercial Operation, Borrower shall notify Administrative Agent
of the earliest possible expected date upon which Commercial Operation may be
achieved;

 

5.4.23              within 15 days
after the filing or certification thereof, copies of any and all reports filed
with, or certifications made to, the U.S. Treasury Department with respect to
the Grant and, promptly upon the receipt thereof, a copy of any acknowledgement
or notice from the 

 

48

 

U.S. Treasury Department (including any notice
acknowledging receipt of the application of the Grant);

 

5.4.24              within 10 days
of the receipt thereof, any assertion, claim, demand, or request by the United
States for repayment of any or all amounts received by Borrower as Grant,
whether with respect to an alleged overpayment of such amount, as a result of
an event resulting in any recapture, or any other reason;

 

5.4.25              promptly any
information Borrower obtains related to the STS Upgrade (as such term is
defined in the PPA); and

 

5.4.26              any other
information relating to Borrower or the Project that Administrative Agent or
any Lender may reasonably request.

 

5.5                               FINANCIAL
REPORTING.

 

5.5.1                     Financial
Statements.  Borrower
shall deliver to Administrative Agent, in form and detail reasonably
satisfactory to Administrative Agent, the following:

 

(a)                                 As soon as
practicable and in any event within 120 days after the close of each
applicable fiscal year, audited financial statements of Borrower, SCPPA,
Turbine Supplier and RMT Parent (it being acknowledged that such financial
statements shall be deemed to be delivered if a Form 10-K or equivalent
filed with the SEC for such Person is publicly available); provided,
that the foregoing financial statements with respect to (i) Turbine
Supplier shall only be required with respect to fiscal years prior to
expiration of the applicable warranty periods under the applicable Turbine
Supply Agreement and (ii) RMT Parent shall only be required prior to the
expiration of the RMT Guaranty and to expiration of the applicable warranty
periods under the Construction Contract. 
Such financial statements shall include a statement of equity, a balance
sheet as of the close of such year, an income and expense statement,
reconciliation of capital accounts (where applicable), a statement of cash flow
and summary results of hedging and trading activities (in the case of Borrower
only), all prepared in accordance with GAAP consistently applied reported on
without a “going concern” or like qualification or exception, or qualification
arising out of the scope of the audit, and certified by an independent
certified public accountant of nationally recognized standing reasonably
acceptable to Administrative Agent.  Such
certificate shall not be qualified or limited because of restricted or limited
examination by such accountant.  The
relevant accountants shall also certify that in making the examination
necessary for reporting on the foregoing financial statements no knowledge was
obtained of any Default or Event of Default, except as disclosed in such
certificate;

 

(b)                                 As soon as
practicable and in any event within 60 days after the end of the first,
second and third quarterly accounting periods of its fiscal year (commencing
with the fiscal quarter ending September 30, 2010), unaudited quarterly
financial statements of Borrower, SCPPA, Turbine Supplier and RMT Parent (it being
acknowledged that such financial statements shall be deemed to be delivered if
a Form 10-Q or equivalent filed with the SEC for such Person is publicly
available) as of the last day of such quarterly period and the related
statements of income, cash flow, and shareholders’ or members’ equity (as
applicable) for such quarterly period and (in the case of second and third
quarterly periods) for the portion of the fiscal year 

 

49

 

ending with the last day of such quarterly period,
setting forth in each case in comparative form corresponding unaudited figures
from the preceding fiscal year (it being acknowledged that such financial
statements shall be deemed to be delivered if a Form 10-K or equivalent
filed with the SEC for such Person is publicly available), all prepared in
accordance with GAAP consistently applied (subject to changes resulting from
audit and normal year-end adjustments and the absence of footnote disclosure); provided,
that the foregoing financial statements with respect to Turbine Supplier and
RMT Parent shall be limited as to time as set forth in Section 5.5.1(a);
and

 

5.5.2                     Certification.  Borrower shall cause to be delivered, along
with any financial statements of Borrower delivered pursuant to Section 5.5.1,
a certificate signed by a Responsible Officer of Borrower, certifying that
(a) such Responsible Officer has made or caused to be made a review of the
transactions and financial condition of Borrower during the relevant fiscal
period and that such review has not disclosed the existence of any event or
condition which constitutes a Default or Event of Default, or if any such event
or condition existed or exists, the nature thereof and the corrective actions
that Borrower has taken or proposes to take with respect thereto,
(b) Borrower is in compliance with all applicable material provisions of
each Operative Document to which Borrower is a party or, if such is not the
case, stating the nature of such non-compliance and the corrective actions
which such Person has taken or proposes to take with respect thereto, and
(c) such financial statements are true and correct in all material
respects and that no material adverse change in the consolidated assets,
liabilities, operations, or financial condition of Borrower has occurred since
the date of the immediately preceding financial statements provided to
Administrative Agent or, if a material adverse change has occurred, the nature
of such change.

 

5.6                               BOOKS,
RECORDS, ACCESS.  Borrower
shall (a) maintain, or cause to be maintained, adequate books, accounts
and records with respect to Borrower and the Project, in which full and correct
entries shall be made of all financial transactions and the assets and business
of Borrower, and prepare all financial statements required hereunder, in each
case in accordance with GAAP (subject, in the case of unaudited financial
statements, to changes resulting from audit and normal year-end adjustments and
the absence of footnote disclosure) and in compliance with the regulations of
any Governmental Authority having jurisdiction thereof; and, (b) subject
to requirements of Governmental Rules, safety requirements and existing
confidentiality restrictions imposed upon Borrower by any other Person, permit
employees or agents of Administrative Agent and Independent Engineer at any
reasonable times and upon reasonable prior notice to Borrower, Construction
Contractor or Operators, as applicable, (i) to inspect all of Borrower’s
properties, including the Site, (ii) to examine or audit all of Borrower’s
books, accounts and records and make copies and memoranda thereof,
(iii) to communicate with Borrower’s auditors outside the presence of
Borrower, (iv) to discuss the business, operations, properties and
financial and other conditions of Borrower with officers and employees of
Borrower and with its independent certified public accountants, and (v) to
witness any Performance Tests; provided however, that Borrower shall
bear the costs of only one such inspection annually, unless an Event of Default
has occurred and is continuing or Borrower has failed to deliver the report
required pursuant Section 5.8.1(b) on a timely basis (without
amending any cure period in 8.1.8(b)), in which case Borrower shall bear the
cost all such inspections as Administrative Agent may require in its sole
discretion.

 

50

 

5.7                               COMPLIANCE
WITH LAWS, INSTRUMENTS, APPLICABLE PERMITS, ETC.  Borrower shall promptly comply, or cause
compliance, in all material respects with all Legal Requirements (including
Legal Requirements and Applicable Permits relating to pollution control,
environmental protection, employment practices, terms and conditions of
employment, wages and hours, equal employment opportunity or employee benefit
plans, ERISA Plans and employee safety, with respect to Borrower or the
Project), and make such alterations to the Project and the Site as may be
required for such compliance.

 

5.8                               REPORTS.

 

5.8.1                     Construction
Progress Reports.  Borrower
shall:

 

(a)                                 promptly after
receipt thereof, deliver to Administrative Agent and the Independent Engineer
copies of all progress reports of the construction of the Project issued by
Construction Contractor and received by Borrower, supplementing such reports in
reasonable detail with material information not already included therein or in
the last prior report delivered by Borrower pursuant to Section 5.8.1(b),
detailing the progress of the development and construction of the Project since
the last prior report delivered by Construction Contractor (including any
change orders then requested by Borrower or Construction Contractor); and

 

(b)                                 deliver to
Administrative Agent and the Independent Engineer as soon as available, but in
no event later than the 10th Business Day of each month prior to Completion, a
summary of construction on the Project during such month, describing, to the
extent not included in the reports described in Section 5.8.1(a),
(i) physical progress and expenditures, (ii) cumulative expenditures to
date, (iii) any material variations from the then-current Project Budget
or Project Schedule, (iv) any fact, event or occurrence of which Borrower
is aware that (A) may increase the total capital costs of the Project
above those provided in the Project Budget, delay Completion or Commercial
Operation beyond the then-estimated dates therefor or otherwise have a Material
Adverse Effect, or (B) may render unreasonable or inappropriate any
material assumption on which the Project Budget was based, and the anticipated
manner and timing of actions proposed to be taken by Borrower in reaction to
any such fact, event or occurrence, together with an estimate (if available) of
the costs associated with the taking of such actions, (v) delivery status
of major equipment and the effect, if any, that the anticipated delivery dates
of such equipment may have on the Project Schedule and (vi) compliance
with Sections 6.2 and 6.3 or the PPA.

 

5.8.2                     Operating
Report.  Deliver to Administrative Agent
within 26 days of the end of each month after Commercial Operation, a
summary operating report with respect to the Project, which shall include, with
respect to the period most recently ended, (i) a monthly and year-to-date
numerical and brief narrative assessment of (A) the Project’s compliance
with each material category in the then-current Annual Operating Budget,
(B) electrical production, capacity, availability and delivery,
(C) plant and unit availability, including trips and scheduled and
unscheduled outages, (D) maintenance activity, (E) replacement of
material equipment, (F) transactions involving the provision of electrical
products from sources other than the Project, if any, and (G) material
unresolved disputes with contractors, materialmen, suppliers or others and any
related claims against Borrower, if any; and (ii) to the extent
applicable, a comparison of year-to-date figures to corresponding figures
provided in the prior year.

 

51

 

5.8.3                     Insurance.  (i) As soon as practicable and in any
event by the last day of each calendar year, a report in form and substance
reasonably satisfactory to Administrative Agent outlining all material
insurance coverage maintained as of the date of such report by Borrower and all
material insurance coverage planned to be maintained by Borrower in the
immediately succeeding calendar year, and (ii) together with the delivery
of the insurance report required pursuant to this Section, Borrower shall
furnish to Administrative Agent a certificate executed by Borrower’s insurance
broker substantially in the form of Exhibit L, detailing the
insurance then maintained by or on behalf of Borrower pursuant to Exhibit K
and stating that such insurance is in full force and effect and complies in all
material respects with the terms hereof, together with evidence of payment of
the premiums then due thereon and a schedule of policy expiration dates.

 

5.8.4                     New
Documents.  Promptly,
but in no event later than five Business Days after execution and delivery thereof,
a copy of each Additional Project Document.

 

5.8.5                     Performance
Tests.  Within five Business Days
after Borrower receives notice pursuant to any Major Project Document of the
proposed conduct of Performance Tests for the Project or material portion thereof
and promptly prior to the proposed conduct of any subsequent Performance Tests,
deliver to Administrative Agent notice of such proposed Performance Tests.

 

5.8.6                     Management
Letters.  Promptly after the receipt
thereof by Borrower, deliver to Administrative Agent a copy of any “management
letter” received by it from its certified public accountants and the management’s
responses thereto.

 

5.8.7                     Governing
Documents.  Promptly
provide Administrative Agent copies of any Governing Documents (delivered pursuant
to Section 3.1.3) that have been amended or modified in accordance with
the terms hereof and deliver a copy of any notice of default given or received
by any Credit Party under any Governing Document within 10 days after such
Person gives or receives such notice.

 

5.8.8                     Turbine
Reports.  Promptly after receipt
thereof, deliver to Administrative Agent and Independent Engineer a copy of
each report (if any) pertaining to the turbines for the Project or the
equipment and machinery relating to such turbines.

 

5.8.9                     As-Built
ALTA Survey.  On or
before the date that is 45 Business Days after the Completion Date, Borrower
shall provide an ALTA as-built survey of the Project which (i) depicts all
of the Real Property, (ii) certified to Borrower, Administrative Agent and
the Title Insurer by Demille Engineering, Inc., Westwood Professional
Services, or such other licensed surveyor reasonably satisfactory to
Administrative Agent, (iii) discloses no title defects, encroachments or
encumbrances affecting the Real Property other than Permitted Liens, and (iv) is
otherwise in a form reasonably acceptable to Administrative Agent.

 

5.8.10              Additional
Information.  Provide to
Administrative Agent promptly upon request such reports, statements, lists of
property, accounts, budgets, forecasts and other information concerning
Borrower and the Project and, to the extent reasonably available, the Major
Project Participants reasonably requested by Administrative Agent and at such
times as

 

52

 

 

Administrative Agent shall reasonably require,
including such reports and information as are reasonably required by the
Independent Consultants.

 

5.9                             EXISTENCE,
CONDUCT OF BUSINESS, PROPERTIES, ETC.  Except as otherwise expressly permitted under
this Agreement, Borrower shall (a) maintain and preserve its existence as
a Delaware limited liability company and all material rights, privileges and
franchises necessary in the conduct of its business, (b) subject to
Section 5.2.2, perform (to the extent not excused by force majeure events
or the nonperformance of the other party and not subject to a good faith
dispute) all of its material contractual obligations under the Major Project
Documents, (c) maintain all Applicable Permits and use all reasonable efforts
to cause all Major Project Participants to maintain all Applicable Third Party
Permits, except to the extent that any such failure to maintain could not
reasonably be expected to have a Material Adverse Effect, (d) at or before
the time that any Permit becomes an Applicable Permit, obtain such Permit and (e) otherwise
continue to engage in business of the same general type as now conducted by it.

 

5.10                        INDEMNIFICATION.

 

5.10.1              Borrower shall
indemnify, defend and hold harmless the Secured Parties, in their respective
capacities, and their respective Related Parties (collectively, the “Indemnitees”)
from and against, and indemnify and reimburse the Indemnitees for:

 

(a)                                 any and all
claims, obligations, liabilities, losses, damages, injuries (to Person, property,
or natural resources), penalties, stamp or other similar taxes, actions, suits,
judgments, costs and expenses (including reasonable attorney’s fees) of
whatever kind or nature, whether or not well founded, meritorious or
unmeritorious, payable to third parties, that have been incurred by, or
demanded, asserted, claimed or awarded against any such Indemnitee
(collectively, “Subject Claims”) in any way relating to, or arising out
of or in connection with (i) any Operative Documents to which it is a
party, (ii) the performance by the parties hereto of their respective
obligations hereunder or the consummation of the transactions contemplated
hereby or thereby, and (iii) any Loan  or the use of
the proceeds therefrom;

 

(b)                                 any and all
Subject Claims arising in connection with any Environmental Claims, whether
foreseeable or unforeseeable, including all costs of removal, investigation,
remediation and disposal of any Hazardous Substances, together with all
reasonable costs required to be incurred in (i) determining whether the
Project or any Person is in compliance and (ii) causing the Project or any
Person to be in compliance, with all applicable Legal Requirements, all
reasonable costs associated with claims for damages to Persons or property,
reasonable attorneys’ and consultants’ fees, investigation and laboratory fees,
response costs and court costs; and

 

(c)                                  any and all
Subject Claims in any way relating to, or arising out of or in connection with
any claims, suits or liabilities against Borrower  or
any of its Affiliates to the extent related to the Project or the transactions
contemplated by the Operative Documents.

 

5.10.2              The foregoing
indemnities shall not apply with respect to an Indemnitee, to the extent
determined by final and non-appealable judgment of a court of competent 

 

53

 

jurisdiction to have arisen as a result of the gross
negligence or willful misconduct of such Indemnitee, but shall continue to
apply to other Indemnitees.

 

5.10.3              The provisions
of this Section 5.10 shall survive the termination of this Agreement, the
foreclosure of the Collateral Documents and satisfaction or discharge of
Borrower’s Obligations under the Credit Documents to which it is a party, and
shall be in addition to any other rights and remedies of any Indemnitee.

 

5.10.4              In case any
action, suit or proceeding shall be brought against any Indemnitee, such
Indemnitee shall notify Borrower of the commencement thereof, and Borrower
shall be entitled, at its expense, acting through counsel reasonably acceptable
to such Indemnitee, to participate in, and, to the extent that Borrower
desires, to assume and control the defense thereof.  Such Indemnitee shall be entitled, at its
expense, to participate in any action, suit or proceeding the defense of which
has been assumed by Borrower. 
Notwithstanding the foregoing, Borrower shall not be entitled to assume
and control the defenses of any such action, suit or proceedings if and to the
extent that, in the reasonable opinion of such Indemnitee and its counsel, such
action, suit or proceeding involves the potential imposition of criminal
liability upon such Indemnitee or a conflict of interest between such
Indemnitee and Borrower or between such Indemnitee and another Indemnitee (unless
such conflict of interest is waived by the affected Indemnitees), and in such
event (other than with respect to disputes between such Indemnitee and another
Indemnitee) Borrower shall pay the reasonable expenses of such Indemnitee in
such defense.

 

5.10.5              If Borrower has
assumed the defense of any action, suit or proceeding pursuant to
Section 5.10.4, Borrower shall promptly report to such Indemnitee on the
status of such action, suit or proceeding as material developments shall occur
and from time to time as requested by such Indemnitee (but not more than every
60 days).  Borrower shall deliver to such
Indemnitee a copy of each document filed or served on any party in such action,
suit or proceeding, and each material document which Borrower possesses relating
to such action, suit or proceeding.

 

5.10.6              Notwithstanding
Borrower’s rights hereunder to control certain actions, suits or proceedings:

 

(a)                                 if any
Indemnitee reasonably determines that failure to compromise or settle any
Subject Claim made against such Indemnitee is reasonably likely to subject such
Indemnitee to civil, criminal or administrative penalties, to result in the
loss, suspension or impairment of a license or Permit held by such Indemnitee
or to cause material damage to such Indemnitee’s reputation, such Indemnitee
shall be entitled to compromise or settle such Subject Claim; and

 

(b)                                 if the Required
Lenders reasonably determine that failure to compromise or settle any Subject
Claim made against such Indemnitee is reasonably likely to have a Material
Adverse Effect, Administrative Agent shall provide Borrower with notice of a
proposed compromise or settlement of such claim specifying in detail the nature
and amount of such proposed settlement or compromise.  Borrower (or any other relevant Borrower
Entity shall be deemed to have approved such proposed compromise or settlement
unless, within 30 days after 

 

54

 

the date Borrower receives such notice of intended
compromise or settlement, Borrower provides the Lenders with a written legal
analysis from counsel reasonably acceptable to Administrative Agent reasonably
concluding that, based on the magnitude of the Subject Claim, the legal basis
for such Subject Claim, the cost of defending such Subject Claim or the amount
of such proposed settlement or compromise is not within a reasonable range of
settlements or compromises for such Subject Claim, and indicating, based on
such factors, such counsel’s view as to the appropriate amount of a reasonable
settlement or compromise for such Subject Claim (the “Settlement Amount”).  If the Lenders receive such legal analysis
required by this Section 5.10.6 within such 30-day period, then
(i) the Required Lenders may elect to settle or compromise such Subject
Claim and Borrower shall be responsible for the payment of all amounts of such
compromise or settlement up to 125% of the Settlement Amount, (ii) such
Indemnitee shall be responsible for payment of all amounts of such compromise
or settlement in excess of such 125% limit and (iii) such compromise or
settlement shall be binding upon Borrower. 
If Borrower does not provide such legal analysis within such period, or
if such legal analysis is not reasonable, in the determination of the Required
Lenders, then such Indemnitee may settle or compromise such Subject Claim (and
Borrower shall cause any other relevant Borrower Entity to agree to the same)
and shall be fully indemnified by Borrower therefor.  The Lenders shall not otherwise settle or
compromise any such Subject Claim other than at their own expense.

 

5.10.7              Upon payment of
any Subject Claim by Borrower pursuant to this Section 5.10 or other
similar indemnity provisions contained herein to or on behalf of an Indemnitee,
Borrower, without any further action, shall be subrogated to any and all claims
that such Indemnitee may have relating thereto, and such Indemnitee shall
cooperate with Borrower and Borrower’s insurance carrier and give such further
assurances as are necessary or advisable to enable Borrower vigorously to
pursue such claims.

 

5.10.8              Any amounts
payable by Borrower pursuant to this Section 5.10 shall be regularly
payable within 30 days after Borrower receives an invoice for such amounts
from any applicable Indemnitee, and if not paid within such 30-day period shall
bear interest at the Default Rate.

 

5.10.9              Notwithstanding
anything to the contrary set forth herein, Borrower shall not, in connection
with any one legal proceeding or claim, or separate but related proceedings or
claims arising out of the same general allegations or circumstances, in which
the interests of the Indemnitees do not materially differ, be liable to the
Indemnitees (or any of them) under any of the provisions set forth in this
Section 5.10 for the fees and expenses of more than one separate firm of
lead attorneys and a number of firms of “local counsel” equal to the number of
jurisdictions involved (which firms shall be selected by the affected
Indemnitees, or upon failure to so select, by Administrative Agent).

 

5.10.10                   Subject to the
provisions of this Section 5.10, any of Borrower’s indemnification
obligations pursuant to Section 5.10.1 that arise out of or in connection
with or by reason of, or in connection with a preparation of a defense of, any
investigation, litigation or proceeding shall be, in each case, binding upon
Borrower regardless of whether such investigation, litigation or proceeding is
brought by any Borrower Entity or its respective 

 

55

 

directors, officers, shareholders or creditors or
any Indemnitee or whether any Indemnitee or any other Person is otherwise a
party thereto.

 

5.10.11                   If, for any
reason whatsoever, the indemnification provided under this Section 5.10 is
unavailable to any Indemnitee or is insufficient to hold it harmless to the
extent provided in this Section 5.10, then provided such payment is not
prohibited by or contrary to any applicable Legal Requirement or public policy,
Borrower shall contribute to the amount paid or payable by such Indemnitee as a
result of the Subject Claim in such proportion as is appropriate to reflect the
relative economic interests of Borrower and its Affiliates on the one hand, and
such Indemnitee on the other hand, in the matters contemplated by this Agreement
as well as the relative fault of Borrower (and its Affiliates) and such
Indemnitee with respect to such Subject Claim, and any other relevant equitable
considerations.

 

5.10.12                   Nothing in this
Section 5.10 shall constitute a release by Borrower of any claims that it
has as a result of a breach or a default by any of the Secured Parties of their
respective obligations under any Credit Document.

 

5.11                        REGULATION.

 

5.11.1              Borrower shall
take or cause to be taken all necessary or appropriate actions so that (a) (i) Borrower
will be an Exempt Wholesale Generator, and (ii) the Project will be an
Eligible Facility at all times hereunder or (b) Borrower and the Project
shall not be subject to, or shall be exempt from, (i) financial or organizational
regulation as a “electric utility company,” “public
utility,” “public-utility company” or “holding company” under PUHCA, or
(ii) rate regulation or financial regulation as a “public utility” or “electrical
corporation” under the laws of Utah except as otherwise provided in the orders
of the Utah Public Service Commission itemized in the Permit Schedule,
and (c) Borrower will be authorized to sell wholesale electricity at
market-based rates.

 

5.11.2              At least 75
days prior to Commercial Operation, Borrower shall deliver to Administrative
Agent certified true and correct copies of validly filed notices of
self-certification or validly issued final orders from FERC under the FPA, as
applicable, not subject to any pending rehearing, challenge, appeal,
investigation, or proceeding (a) confirming that the Project is an
Eligible Facility and that Borrower is an Exempt Wholesale Generator,
(b) authorizing Borrower to sell electricity at market-based rates and
granting such waivers and blanket authorizations (including blanket authorizations
to issue securities and to assume liabilities under Section 204 of the FPA
and 18. C.F.R. Part 34), as customarily are granted to entities with
market-based rate authority, and (c) all necessary approvals from any
Governmental Authority in respect of the Interconnection Agreement and the PPA,
to the extent applicable.

 

5.12                  CONSTRUCTION
OF THE PROJECT.  Borrower
shall cause the Project to be designed, engineered, constructed, developed,
installed, equipped, maintained and operated in a good and workmanlike manner
with due diligence, and substantially in accordance with (a) the Plans and
Specifications, (b) the then-current Project Budget, (c) the Project
Schedule, (d) the Construction Contract and the other Major Project Documents,
as any of the same may be amended from time to time in accordance with
Sections 6.12 and 6.19.2, and in compliance with all applicable Legal
Requirements, Permits and good industry practices.

 

56

 

5.13                        COMPLETION
AND COMMERCIAL OPERATION.

 

5.13.1              Borrower shall
achieve Completion and Commercial Operation in a timely and diligent manner
substantially in accordance with the Project Schedule, the then-current Project
Budget, the Plans and Specifications, the Major Project Documents, as any of
the same may be amended from time to time pursuant to Sections 6.12 and
6.19.2 and, in the case of Completion, in no event later than 30 days after
Commercial Operation.

 

5.13.2              If at any time
after the Closing Date, Independent Engineer determines that construction
of the Project is unlikely to achieve Commercial Operation by the Date Certain,
Borrower shall, within 10 Business Days from the date of receipt of notice from
Administrative Agent of Independent Engineer’s determination, submit to
Administrative Agent and Independent Engineer a remedial plan for achieving
Commercial Operation by the Date Certain (the “Remedial Plan”), which
Remedial Plan shall be subject to the approval of Administrative Agent in
consultation with Independent Engineer, and shall diligently implement such
Remedial Plan.  Borrower shall have 10
Business Days to adequately address Administrative Agent’s and Independent
Engineer’s objections to the Remedial Plan and shall submit a new Remedial Plan
addressing those objections.

 

5.13.3              On or prior to December 31,
2010, Borrower shall have commenced construction of the Project to the extent
necessary to ensure that the Project is Grant Eligible.

 

5.14                        OPERATION
AND MAINTENANCE OF PROJECT; OPERATING BUDGET.

 

5.14.1              Borrower shall
keep the Project, or cause the same to be kept, in good operating condition
consistent with the standard of care set forth in the O&M Agreements, all
Applicable Permits and Applicable Third Party Permits, Legal Requirements and
the Operative Documents, and make or cause to be made all repairs (structural
and non-structural, extraordinary or ordinary) necessary to keep the Project in
such condition.

 

5.14.2              Borrower shall
operate the Project, or cause the same to be operated, in a manner consistent with
Prudent Industry Practices and in compliance with the terms of the PPA.

 

5.14.3              On or before
the date that is 60 days prior to the anticipated date of commencement of
Commercial Operations and thereafter 60 days prior to the beginning of
each subsequent calendar year, Borrower shall submit an operating plan and a
budget, detailed by month, of anticipated revenues and anticipated
expenditures, such budget to include Debt Service and all anticipated O&M
Costs (including reasonable allowance for contingencies) applicable to the
Project for the ensuing calendar year (or, in the case of the initial Annual
Operating Budget, partial calendar year) (each such annual operating plan and
budget, including the initial Annual Operating Budget, an “Annual Operating
Budget”).  Each Annual Operating
Budget shall be subject to the approval of Administrative Agent acting in
consultation with the Independent Engineer, such approval not to be
unreasonably withheld.  Borrower shall
prepare a final Annual Operating Budget no less than 30 days in advance of
the anticipated date of Commercial Operation and each subsequent calendar
year.  The O&M Costs in each Annual
Operating Budget which are subject to escalation limitations in the Project
Documents shall not, absent 

 

57

 

extraordinary circumstances, be increased by more
than the amounts provided in such Project Documents.

 

5.14.4              Borrower shall
operate and maintain the Project, or cause the Project to be operated and
maintained, within amounts for (a) any Operating Budget Category of an
amount greater than $50,000 not to exceed 110% (on a year-to-date basis) and
(b) for all Operating Budget Categories not to exceed 105% (on a
year-to-date basis), in each case of the amounts budgeted therefor as set forth
in the then-current Annual Operating Budget as approved or deemed approved by
Administrative Agent; provided, however,  that subject to Section 6.12, Borrower
may propose an amendment to the Annual Operating Budget for Administrative
Agent’s approval if at any time Borrower cannot comply with this requirement
(and Administrative Agent shall consider each such amendment in good faith and
shall not unreasonably withhold its consent to the approval of any such
amendment).  Pending approval of any
Annual Operating Budget or amendment thereto in accordance with the terms of
this Section 5.14.4, Borrower shall use all reasonable efforts to operate
and maintain the Project, or cause the Project to be operated and maintained,
within the then-current Annual Operating Budget (it being acknowledged that if
a particular calendar year’s Annual Operating Budget has not been approved by
the time periods provided in Section 5.14.3, then the then-current Annual
Operating Budget shall be deemed to be the Annual Operating Budget in effect
prior to the delivery of the proposed final Annual Operating Budget pursuant to
Section 5.14.3); provided, that the amounts specified therein shall
be increased to the extent specified in the Project Documents.

 

5.14.5              Commencing with
the first possible date for commissioning of the turbines, Borrower shall make
available at the Project site one or more qualified personnel to meet the
obligations under Section 5 of the Construction Contract.

 

5.15                        PRESERVATION
OF RIGHTS; FURTHER ASSURANCES.

 

5.15.1              Major
Project Documents.  Borrower
shall maintain in full force and effect, perform (subject to
Section 5.2.2) the material obligations of Borrower under, preserve,
protect and defend the material rights of Borrower under and take all
reasonable action necessary to prevent termination (except by expiration in
accordance with its terms) of each and every Major Project Document, including
prosecution of suits to enforce any material right of Borrower thereunder and
enforcement of any material claims with respect thereto; provided, that
upon the occurrence and during the continuance of an Event of Default or, with
respect to any Project Document between Borrower and any Affiliate, when such
Affiliate has acted or failed to act in a manner that with the giving of notice
by Borrower or the passage of time, an event of default will occur under such
Project Document, if Administrative Agent requests that certain actions be
taken and Borrower fails to take the requested actions within five Business
Days, Administrative Agent or Collateral Agent may enforce in its own name or
in Borrower’s name, such rights of Borrower (if and to the extent not
prohibited by Governmental Rule), in addition to such rights as may be more
particularly provided in the Security Agreement and the other Credit Documents.

 

5.15.2              Preservation
of Collateral.  From time
to time promptly, upon the reasonable request of Administrative Agent,
Collateral Agent or any Lender, Borrower shall 

 

58

 

execute, acknowledge or deliver, or cause the
execution, acknowledgment and delivery of, and thereafter register, file or
record, or cause to be registered, filed or recorded in an appropriate
governmental office, all such notices, statements, instruments and other
documents (including any memorandum of lease or other agreement, financing
statement, continuation statement, certificate of title or estoppel
certificate) supplemental to or confirmatory of the Collateral Documents,
relating to the Loans, stating the interest and charges then due and any known
Defaults or Events of Default, and take such other steps as may be deemed by
Administrative Agent necessary or advisable to render fully valid and
enforceable (subject, in the case of the BLM Right of Way (Phase II), the BLM
Right of Way (Generator Lead Line), the SITLA Lease, and the SITLA Right of
Way, to applicable Governmental Rules limiting the enforceability of Liens
therein) under all applicable laws the rights, liens and priorities of the
Secured Parties with respect to all Collateral and other security from time to
time furnished under the Credit Documents or intended to be so furnished, or
for the continued validity, perfection and priority of the Liens on the
Collateral covered thereby subject to no other Liens except as permitted by the
applicable Collateral Document, or obtain any consents or waivers as may be
necessary or appropriate in connection therewith, in each case in such form and
at such times as shall be reasonably requested by Administrative Agent or
Collateral Agent, and pay all reasonable fees and expenses (including
reasonable attorneys’ fees) incident to compliance with this
Section 5.15.2.  Upon the exercise
by Administrative Agent, Collateral Agent or any Lender of any power, right,
privilege or remedy pursuant to any Credit Document which requires any consent,
approval, registration, qualification or authorization of any Governmental
Authority execute and deliver all applications, certifications, instruments and
other documents and papers that Administrative Agent, Collateral Agent or such
Lender may require.  If Administrative
Agent, Collateral Agent or the Required Lenders determine that they are
required by law or regulation to have appraisals prepared in respect of the
Real Property, Borrower shall provide to Administrative Agent appraisals that
satisfy the applicable requirements of the Real Estate Appraisal Reform
Amendments of FIRREA and are otherwise in form and substance satisfactory to
Administrative Agent.

 

5.15.3              Additional
Collateral.  If Borrower
shall at any time acquire any real property or leasehold or other interest in
real property not covered by the Trust Deed, then promptly upon such
acquisition, Borrower shall execute, deliver and record a supplement to the
Trust Deed, reasonably satisfactory in form and substance to Administrative
Agent, subjecting the real property or leasehold or other interests to the Lien
and security interest created by the Trust Deed.  If reasonably requested by Administrative
Agent, Borrower shall obtain an appropriate endorsement or supplement to, as
applicable, the Title Policy, insuring the Lien of the Secured Parties in such
additional property, subject only to Liens and other exception to title
reasonably agreed by Collateral Agent of a type similar to Title Exceptions.

 

5.15.4              Further
Assurances.  Upon the
request of Administrative Agent or Collateral Agent, Borrower shall execute and
deliver all documents as shall be necessary or that Administrative Agent or
Collateral Agent (as the case may be) shall reasonably request in connection
with the rights and remedies of Administrative Agent or Collateral Agent (as
the case may be) and the Lenders under the Operative Documents, and perform,
such other reasonable acts as may be necessary to carry out the intent of the
Credit Documents.

 

59

 

5.15.5              Proper
Legal Form.  Borrower
shall diligently take all such further action within its control required to
ensure that each of the Operative Documents is in proper legal form under the
laws of the respective governing laws selected in such Operative Document for
the enforcement thereof in such jurisdictions without any further action on the
part of Administrative Agent or other Secured Parties.

 

5.16                  ADDITIONAL
CONSENTS.  With
respect to any Major Project Document entered into after the Closing Date,
Borrower shall cause the applicable counterparty to execute and deliver to
Administrative Agent a Consent in substantially the form of Exhibit E-1
or, if approved by Administrative Agent in advance, Exhibit E-2,
with such changes as are reasonably acceptable to Administrative Agent.

 

5.17                  MAINTENANCE
OF INSURANCE.  Without cost
to the Secured Parties, Borrower shall maintain or cause to be maintained on
its behalf in effect at all times the types of insurance required pursuant to Exhibit K,
in the amounts and on the terms and conditions specified therein, from the
quality of insurers specified in such Exhibit or other insurance companies
of recognized responsibility reasonably satisfactory to Administrative Agent.

 

5.18                  TAXES,
OTHER GOVERNMENT CHARGES AND UTILITY CHARGES.  Subject to the second sentence of this
Section 5.18, Borrower shall timely file all tax returns and pay, or cause
to be paid, as and when due and prior to delinquency, all taxes, assessments
and governmental charges of any kind that may at any time be lawfully assessed
or levied against or with respect to Borrower or the Project, including sales
and use taxes and real estate taxes, all utility and other charges incurred in
the operation, maintenance, use, occupancy and upkeep of the Project, and all
assessments and charges lawfully made by any Governmental Authority for public
improvements that may be secured by a Lien on the Project.  Borrower may contest in good faith any such
taxes, assessments and other charges and, in such event, may permit the taxes,
assessments or other charges so contested to remain unpaid during any period,
including appeals, when Borrower is in good faith contesting the same, so long
as (a) reserves to the extent required by GAAP have been established in an
amount sufficient to pay any such taxes, assessments or other charges, accrued
interest thereon and potential penalties or other costs relating thereto, or
other adequate provision for the payment thereof shall have been made and
maintained at all times during such contest, (b) enforcement of the
contested tax, assessment or other charge is effectively stayed for the entire
duration of such contest, and (c) any tax, assessment or other charge
determined to be due, together with any interest or penalties thereon, is
promptly paid after resolution of such contest, and (d) such proceedings
shall not involve any substantial danger of the sale, forfeiture or loss of the
Project, the Site or any Easements, as the case may be, title thereto or any
interest therein and shall not interfere in any material respect with the use
or disposition of the Project, the Site or any Easements.

 

5.19                  EVENT
OF EMINENT DOMAIN.  If an Event
of Eminent Domain shall occur with respect to any Collateral, Borrower shall
(a) diligently pursue all its rights to compensation against the relevant
Governmental Authority in respect of such Event of Eminent Domain,
(b) not, without the consent of the Required Lenders (which consent shall
not be unreasonably withheld or delayed), compromise or settle any claim
against such Governmental Authority, and (c) pay or apply all Eminent
Domain Proceeds in accordance with Section 7.5.  Borrower consents to, and agrees not to
object to or otherwise impede or impair, the participation of 

 

60

 

Administrative Agent and/or Collateral Agent in any
Eminent Domain proceedings, and Borrower shall from time to time deliver to
Administrative Agent and Collateral Agent all documents and instruments
requested by it to permit such participation.

 

5.20                  ENVIRONMENTAL
LAWS.  Borrower shall (a) comply
in all material respects with, and ensure compliance by all tenants, licensees
and invitees, if any, in all material respects with all applicable Hazardous
Substance Laws and obtain and comply in all material respects with, and
maintain, and ensure that all tenants, licensees and invitees obtain and comply
in all material respects with, and maintain all Permits required by applicable
Hazardous Substance Laws; (b) conduct and complete, or cause to be
conducted and completed, all investigations, studies, sampling and testing, and
all clean-up, remedial, removal, recovery and other actions required pursuant
to Hazardous Substance Laws or otherwise as necessary to prevent itself, any
other Credit Party or any Secured Party from incurring any material liability;
(c) promptly comply in all material respects with all orders and directives
of all Governmental Authorities in respect of Hazardous Substance Laws, except
to the extent that the same are being contested in good faith by appropriate
proceedings; (d) exercise care, custody and control over the Site and the
Project in such manner as not to pose a material or unreasonable hazard to the
environment, health or safety in general; and (e) give (and shall cause
the Operators and Construction Contractor, to the extent applicable, to give)
due attention to the protection and conservation of the environment in the
implementation of each aspect of the Project, all in material accordance with
applicable Hazardous Substance Laws, Permits and Legal Requirements, and good
industry practices.

 

5.21                  INDEPENDENT
CONSULTANTS.  Borrower
shall (a) cooperate in all reasonable respects with the Independent
Consultants and (b) ensure that each Independent Consultant is provided
with all information reasonably requested by such consultant with respect to
the financing, construction or operation of the Project and will exercise due
care to ensure that any factual information which it may supply to such
consultant is materially accurate in all respects, and not, by omission of
information or otherwise, misleading in any material respect at the time such information
is provided, to the extent that such consultant relied on such information in
preparing its report.

 

5.22                  PPA.

 

5.22.1              Notices.  Borrower shall consult with Administrative
Agent prior to sending any notices or certifications pursuant to Section 3.2
of the PPA, and any such notices and certifications shall be in form and
substance satisfactory to Administrative Agent in its sole discretion.

 

5.22.2              Prepayment
Conditions.  As and when
each condition to the Prepayment (as defined in the PPA) in Section 7.2 of
the PPA is completed, Borrower will request and shall use commercially
reasonable efforts to obtain from SCPPA written confirmation that such closing
condition has been completed and shall provide a copy of such confirmation to
Administrative Agent.  Borrower shall use
its commercially reasonable efforts to cause each such condition to be
completed as expeditiously as possible.

 

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5.22.3              Reports.  Borrower shall provide Administrative Agent
copies of each report delivered to SCPPA under Section 3.3 the PPA.

 

5.23                        UPDATES
TO WIND REPORT, IE REPORT AND COST SEGREGATION REPORT.  If reasonably requested by the Administrative
Agent and the Required Lenders, Borrower shall obtain updates to the Wind Report,
the IE Report and the Cost Segregation Report; provided
that Administrative Agent and the Required Lenders shall not request an update
to the Cost Segregation Report unless there is a 5% or more reduction in the
Project Costs that were included in the “Total Eligible Property” amount set
forth in the table “Preliminary Grant Eligible Summary” within Exhibit IV
of the Cost Segregation Report (as determined by the Independent
Engineer).  In addition, the Cost
Segregation Report shall be updated as of (a) the Closing Date, (b) the
delivery to a tax equity investor who has committed to make a tax equity
contribution relating to the Borrower, and (c) the filing of the Grant
application.

 

5.24                        GRANT.  Borrower shall apply for the Grant within 60
days after the Commercial Operation Date (as such term is defined in the
PPA).  Unless the Tax Equity Contribution
Conditions have been satisfied, (a) the draft application for the Grant
shall be presented to Administrative Agent five Business Days prior to the
submission thereof, (b) the draft application shall be in form and
substance reasonably satisfactory to Administrative Agent prior to the
submission thereof and (c) Borrower shall cause the proceeds of the Grant
to be paid into the Repayment Account on or prior to the Maturity Date.

 

5.25                        TURBINE
PLACEMENT.  In the
event that any turbine located on the BLM Right of Way (Phase II) is planned to
be located in a position that would violate BLM Instruction Memorandum No. 2009-043
(the “BLM Memo”) and the affected adjacent landowner does not waive
application of such restrictions in a recordable document, Borrower shall
either (a) use commercially reasonable efforts to obtain a waiver of such
restrictions in a recordable document or (b) (i) designate an
alternative location for such turbine(s) on the BLM Right of Way (Phase
II) that does not violate the BLM Memo or on such other portion of the Site
that is encumbered by the Trust Deed, (ii) provide to Administrative Agent
an update to the Wind Report and IE Report with respect to such alternative
location, each in form and substance reasonably satisfactory to Administrative
Agent, and (iii) obtain all Permits necessary for the construction and
operation of such turbines in such new location.

 

5.26                        COBANK
EQUITY AND SECURITY.

 

5.26.1              So long as
CoBank is a Lender hereunder, Borrower will acquire equity in CoBank in such
amounts and at such times as CoBank may require in accordance with CoBank’s
Bylaws and Capital Plan (as each may be amended from time to time), except that
the maximum amount of equity that Borrower may be required to purchase in
CoBank in connection with the Loans made by CoBank may not exceed the maximum
amount permitted by such Bylaws and the Capital Plan as of the Closing Date.  Borrower acknowledges receipt of a copy of
(a) CoBank’s most recent annual report and, if more recent, CoBank’s
latest quarterly report, (b) CoBank’s Notice to Prospective Stockholders
and (c) CoBank’s Bylaws and Capital Plan, which describe the nature of all
of Borrower’s stock and other equities in CoBank acquired in connection with
its patronage loan from CoBank (the “CoBank Equities”) as well as
capitalization requirements, and agrees to be bound by the terms thereof.

 

62

 

 

5.26.2              Each party
hereto acknowledges that CoBank’s Bylaws and Capital Plan (as each may be
amended from time to time) shall govern (a) the rights and obligations of
the parties with respect to the CoBank Equities and any patronage refunds or
other distributions made on account thereof or on account of Borrower’s
patronage with CoBank, (b) Borrower’s eligibility for patronage
distributions from CoBank (in the form of CoBank Equities and cash) and (c) patronage
distributions, if any, in the event of a sale of a participation interest.
CoBank reserves the right to assign or sell participations in all or any part
of its Commitments or outstanding Loans hereunder on a non-patronage basis.

 

5.26.3              Each party
hereto acknowledges that CoBank has a statutory first lien pursuant to the Farm
Credit Act of 1971 (as amended from time to time) on all CoBank Equities that
the Borrower may now own or hereafter acquire, which statutory lien shall be
for CoBank’s sole and exclusive benefit. 
The CoBank Equities shall not constitute security for the Obligations
due to any other Lender.  To the extent
that any of the Credit Documents create a Lien on the CoBank Equities or on
patronage accrued by CoBank for the account of Borrower (including, in each
case, proceeds thereof), such Lien shall be for CoBank’s sole and exclusive
benefit and shall not be subject to pro rata sharing hereunder.  Neither the CoBank Equities nor any accrued
patronage shall be offset against the Obligations except that, in the event of
an Event of Default, CoBank may elect to apply the cash portion of any
patronage distribution or retirement of equity to amounts due under this
Agreement.  Borrower acknowledges that
any corresponding tax liability associated with such application is the sole
responsibility of Borrower.  CoBank shall
have no obligation to retire the CoBank Equities upon any Event of Default,
Default or any other default by Borrower or any other Credit Party, or at any
other time, either for application to the Obligations or otherwise.

 

ARTICLE 6

NEGATIVE COVENANTS

 

6.1                               CONTINGENT
OBLIGATIONS.  Except as
provided in the Credit Documents, Borrower shall not become liable as a surety,
guarantor, accommodation endorser or otherwise, for or upon the obligation of
any other Person or incur any Contingent Obligations; provided, however,
that this Section 6.1 shall not be deemed to prohibit or otherwise limit
the occurrence of Permitted Debt.

 

6.2                               LIMITATIONS
ON LIENS.  Borrower
shall not create, assume or suffer to exist any Lien, except Permitted Liens,
securing a charge or obligation on the Project or on or with respect to any of
the Collateral, whether now owned or hereafter acquired or assign any right to
receive income.

 

6.3                               DEBT.  Borrower shall not incur, create, assume or
permit to exist, directly or indirectly, any Debt except Permitted Debt and
current accounts incurred in the ordinary course of business with respect to
O&M Costs.

 

6.4                               SALE OR
LEASE OF ASSETS.  Borrower
shall not sell, lease, assign, transfer or otherwise dispose of assets, whether
now owned or hereafter acquired, except (a) prior to Commercial Operation,
to the extent that such asset is unnecessary, worn out or no longer useful or
usable in connection with the operation or maintenance of the Project, at fair
market value, 

 

63

 

(b) prior to Commercial Operation, the sale,
transfer or release, with or without consideration, of real property or
interests in real property related to the Project to the extent that such real
property or interests in real property is only incidental to the development,
construction, leasing, ownership or operation of the Project, (c) the
granting of easements or other interests in real property related to the
Project to other Persons if Administrative Agent has determined that such sale,
transfer or release could not reasonably be expected to have a Material Adverse
Effect and (d) as expressly contemplated by the Operative Documents.  Upon any such sale, lease, assignment,
transfer or other disposition of any such assets, all Liens in favor of any
Secured Party relating to such transferred asset shall be released.  Borrower shall not enter into any sale and
leaseback transactions.

 

6.5                               CHANGES.  Borrower shall not (a) change the nature
of its business or expand its business beyond the business contemplated in the
Operative Documents or activities incidental thereto or take any action,
whether by acquisition or otherwise, which would constitute or result in any
material alteration to the nature of such business; (b) establish, create
or acquire any Subsidiaries; or (c) directly or indirectly, change its
legal form or any of its Governing Documents (including by the filing or
modification of any certificate of designation) or otherwise terminate, amend
or modify any such Governing Document, other than any such amendments,
modifications or changes to which the prior consent of Administrative Agent and
Collateral Agent (if appropriate) has been obtained or which are not adverse in
any material respect to the interests of the Lenders.

 

6.6                               RESTRICTED
PAYMENTS.  Except as
set forth in Section 5.1.1(b) and in this Section 6.6, Borrower
shall not (a) directly or indirectly, make or declare any dividend payment
or other distribution (in cash, assets, property, rights, obligations or
securities) on, or other payment on account of, any interest in Borrower, (b) make
any payment on account of Permitted Debt prior to the due date thereof or (c) make
any payment of management fees or similar payments to Pledgor or any of its
Affiliates.  Borrower shall be permitted
to (i) so long as no Event of Default has occurred and is continuing at
the time of such distribution, make a one-time distribution of $5,000,000 to
its direct and indirect owners after the Commercial Operation Date and after
providing Administrative Agent with evidence, in form and substance reasonably
satisfactory to Administrative Agent in consultation with the Lenders, that the
Performance Security (as defined in the PPA) has been established by Sponsor or
an Affiliate of Sponsor other than Borrower or Pledgor (the “Performance LC
Distribution”), and (ii) so long as the Tax Equity Contribution
Conditions have been met, distribute the proceeds of the Grant to the tax
equity contributor or as otherwise agreed between Borrower and the tax equity
contributor.

 

6.7                               INVESTMENTS.  Borrower shall not (a) make any
investments (whether by purchase of stocks, bonds, notes, obligations or other
securities, loan, extension of credit, advance or otherwise) other than Permitted
Investments or make any capital contribution to any Person; or (b) own any
equity interest in, lend money, extend credit or make advances to, or any
deposits with (other than deposits or advances in relation to the payment for
services in the ordinary course of business), any Person other than Depositary.

 

6.8                               TRANSACTIONS
WITH AFFILIATES.  Borrower
shall not directly or indirectly enter into any transaction or series of
transactions relating to the Project with or for the benefit of an Affiliate
without the prior approval of Administrative Agent, except for (a) the 

 

64

 

Project Documents in effect on the Closing Date, and
the transactions permitted thereby, (b) transactions that contain terms
that are fair and reasonable and no less favorable to Borrower than would be
included in an arm’s-length transaction entered into by a prudent Person with a
non-Affiliated third party, (c) any employment, non-competition or
confidentiality agreement entered into by Borrower with any of its employees,
officers or directors in the ordinary course of business, (d) leases to
Affiliates of the Borrower for access to the operation and maintenance building
so long as such leases do not interfere with the operation and maintenance of
the Project, and (e) as otherwise expressly permitted or contemplated by
the Credit Documents.

 

6.9                               MARGIN
LOAN REGULATIONS.  Borrower
shall not directly or indirectly apply any part of the proceeds of any Loan,
any cash equity contributions received by Borrower or other funds or revenues
to the “buying,” “carrying” or “purchasing” of any margin stock within the
meaning of Regulations T, U or X of the Federal Reserve Board, or any
regulations, interpretations or rulings thereunder.

 

6.10                        PARTNERSHIPS, ETC.  Borrower shall not (a) become a general
or limited partner in any partnership or a joint venturer in any joint venture,
(b) create and hold stock in any Subsidiary or (c) engage in any
business other than owning and operating the Project and related activities.

 

6.11                        DISSOLUTION;
MERGER.  Borrower shall not
(a) wind up, liquidate or dissolve its affairs, (b) combine, merge or
consolidate with or into any other entity, or (c) purchase or otherwise
acquire all or substantially all of the assets of any Person.

 

6.12                        AMENDMENTS;
COMPLETION.  Borrower
shall not:

 

6.12.1              Directly
or indirectly, without the prior written consent of the Required Lenders, agree
to or acquiesce in (i) the cancellation, suspension or termination of any
Major Project Document (other than a Minor Project Document); (ii) the
assignment, release or relinquishment of the material rights of or material
obligations of any party to a Project Document (except as permitted by the
Security Documents or as permitted without the consent of Borrower by the terms
of the applicable Project Document); (iii) any amendment, supplement or
modification of, or any consent or waiver with respect to, any of the
provisions of the PPA, or (iv) any amendment, supplement or  modification of, or any consent or waiver of any material
provision of any other Project Document (each of the foregoing, being referred
to herein as a “Project Document Modification”).  Without limiting Section 6.19, change
orders under the Construction Contract shall not require the prior written
consent of the Required Lenders so long as such change orders and any costs
associated therewith are in an amount less than the available portion of the
contingency in the Project Budget so long as such change orders do not modify
the Project Schedule in any material respect (provided, it shall be deemed to
be a material modification to the Project Schedule if the date of Guaranteed
Project Substantial Completion Date (as defined in the Construction Contract)
is scheduled to occur later than June 16, 2011), but Borrower shall
provide Administrative Agent with advance written notice of any change
order.  Notwithstanding the foregoing,
Borrower shall not enter into any amendment, supplement or modification of any
Project Document that could reasonably be expected to cause the Project
not to comply with Legal Requirements or Borrower’s qualification for the
Grant.

 

65

 

6.12.2              (a) Declare, with respect to the Project
or material portion thereof, or agree that substantial completion and final
completion (or any similar concepts) under the Construction Contract has
occurred; (b) approve the successful completion of any Performance Test;
(c) approve, modify or amend the testing protocols under the Construction
Contract; or (d) agree to accept any facilities being constructed under
any other Major Project Document as “commercially operational,” “substantially
complete” or “complete” (however defined therein), in each case without the
approval of Administrative Agent acting in consultation with the Independent
Engineer, or use the proceeds of any Loan to make any payment under any
Construction Contract all or any portion of which payment the Independent
Engineer has given Borrower notice (prior to the due date thereof) that it
disputes is then due, without the approval of Administrative Agent acting in
consultation with the Independent Engineer, which approval, if given, shall not
be unreasonably delayed or withheld, taking into account applicable time
limitations imposed by the terms of the applicable Project Document;

 

6.12.3              agree on any punchlist with respect to any Project
work without the approval of Administrative Agent acting in consultation with
the Independent Engineer, which approval, if given, shall not be unreasonably
delayed or withheld, taking into account applicable time limitations imposed by
the terms of the Construction Contract;

 

6.12.4              consent,
without Administrative Agent’s prior approval, to (a) any action taken by
the Construction Contractor to modify the equipment or services provided by
Construction Contractor to conform to the intellectual property rights of
others if such action could reasonably be expected to materially and adversely
affect Borrower’s continued use of the Project or (b) the settlement by
Construction Contractor of any claim or proceeding which could reasonably be
expected to materially adversely affect Borrower’s rights;

 

6.12.5              direct Construction Contractor to suspend any
construction activities being performed under the Construction Contract without
Administrative Agent’s prior consent, except to avoid immediate danger to
personnel or property;

 

6.12.6              except for the
Site Common Facilities, construct, install, or permit the construction or
installation of, shared or joint facilities between the Project and any plants,
facilities, generating stations or other improvements (including any such
plants, facilities, generating stations or other improvements owned by SCPPA);

 

6.12.7              accept any
letter of credit, bond or other form of credit support in lieu of retainage
under any Project Document not in form and substance reasonably satisfactory to
Administrative Agent; and

 

6.12.8              without the
prior consent of Administrative Agent, submit any notice or certificate to
SCPPA declaring or acknowledging the occurrence of the “Commercial Operation
Date” under the PPA (which consent may not be requested if the Project is not
capable of producing at least 102 MW).

 

The
Administrative Agent or Lenders, as applicable, shall use reasonable efforts to
respond to each request pursuant to this Section 6.12 as soon as possible
and in all events 

 

66

 

within
10 days of its receipt of notification thereof.  Approval by the Administrative Agent or Lenders,
as applicable, hereunder shall be not be given unless until expressly approved.

 

6.13                        NAME
AND LOCATION; FISCAL YEAR.  Unless consented to by Administrative Agent,
Borrower shall not change its name, its jurisdiction of organization, the
location of its principal place of business, its organization identification
number, its fiscal year or, except as required by GAAP, its accounting policies
or reporting practices.

 

6.14                        USE OF
SITE.  Borrower shall not use,
maintain, operate or occupy, or allow the use, maintenance, operation or
occupancy of, any portion of the Project or the Site for any purpose
(a) which may (i) constitute a public or private nuisance or
(ii) make void, voidable, or cancelable, or materially increase the
premium of, any insurance policies then in force with respect to all or a
portion of the Project, or (b) other than for the construction, operation
and maintenance of the Project as contemplated by the Operative Documents that
could reasonably be expected to have a Material Adverse Effect.

 

6.15                        ASSIGNMENT.  Borrower shall not assign its rights or
obligations under any Credit Document or any Major Project Document to any
Person, except as specifically permitted by the Credit Documents.

 

6.16                        ACCOUNTS.  Borrower shall not maintain, establish or use
any account (other than the Accounts).

 

6.17                        HAZARDOUS
SUBSTANCES.  Borrower
shall not release into the environment any Hazardous Substances in violation of
any Hazardous Substance Laws, Legal Requirements or Applicable Permits, except
for (a) temporary unplanned exceedances not allowed under the Project’s
Permits, which temporary unplanned exceedances could not reasonably be expected
to have a Material Adverse Effect and which Borrower is diligently and in good
faith attempting to correct and (b) unintentional violations with respect
to which (i) the Release is not continuing or reasonably likely to
re-occur and is not reasonably susceptible to prevention or cure,
(ii) there are no unsatisfied reporting and/or remediation requirements
under applicable Hazardous Substance Laws, Legal Requirements or Applicable
Permits, (iii) no non-monetary penalties or sanctions have been imposed or
are reasonably likely to be imposed (except for the remediation of such
violation) under applicable Hazardous Substance Laws, Legal Requirements or
Applicable Permits, and (iv) the Release could not reasonably be expected
to materially impair the value of the Site or any other Collateral, and could
not otherwise reasonably be expected to have a Material Adverse Effect.

 

6.18                        PROJECT
DOCUMENTS..  Borrower
shall not enter into or become a party to any Additional Project Document
without obtaining (a) consent from Administrative Agent for Project
Documents of aggregate value less than $1,000,000 and consent from the Required
Lenders for all other Additional Project Documents, (b) obtaining from its
counterparty a consent in the form of Exhibit E-1 or, if approved
by Administrative Agent in advance, Exhibit E-2, and
(c) providing an executed copy thereof to Administrative Agent within five
Business Days after execution

 

67

 

6.19                        PROJECT BUDGET AND SCHEDULE
AMENDMENTS.

 

6.19.1              Project Budget.  Without the prior consent of Administrative
Agent in consultation with the Required Lenders, Borrower shall not amend,
allocate, re-allocate or modify the Project Budget to increase the aggregate
amount payable thereunder, unless such amendment, allocation, re-allocation or
modification is (a) a necessary conforming change related to an amendment
to a Project Document permitted by Section 6.12 and (b) concurrent
and consistent with cash equity contributions made available to Borrower which
were not theretofore contemplated in the Project Budget; provided, that
the foregoing shall not prevent Borrower from applying identified cost savings
in a budget category (after completing each of the items to which such category
relates), as confirmed by the Independent Engineer, to cost overruns in another
budget category (as confirmed by the Independent Engineer) without increasing
the aggregate amount payable under the Project Budget; provided, that
Borrower shall not apply identified cost savings in any budget category to cost
overruns in any budget category relating to management expenses or development
fees payable to any Person or any other fees and costs payable to any Affiliate
of Sponsor.

 

6.19.2              Project Schedule.  Without the prior consent of Required
Lenders, amend, modify or otherwise change the Project Schedule, in any
material respect (provided, it shall be deemed to be a material
modification to the Project Schedule if the date of Commercial Operation is
scheduled to occur later than Date Certain and the date of Completion is
scheduled for no later than one month after Commercial Operation), as to the
scheduled date of Performance Test completion thereunder, unless such
amendment, modification or change occurs by operation of the various terms and
conditions of the applicable Project Documents and is therefore not subject to
Borrower’s pre-approval or agreement.

 

6.20                        ASSIGNMENT
BY THIRD PARTIES.  Unless
expressly permitted in the applicable Major Project Document, without prior
consent of the Required Lenders or unless provided in a Consent, Borrower shall
not consent to the assignment of any obligations under any Major Project
Document by any counterparty thereto.

 

6.21                        ACQUISITION
OF REAL PROPERTY.  Borrower
shall not acquire or lease any real property or other interest in real property
other than the Site, Easements and other interests in real property acquired on
or prior to the Closing Date.

 

6.22                        NO
MERCHANT SALES.  Borrower shall not consent to, or
permit, the provision of electrical products to any Person other than to SCPPA
under the PPA.

 

6.23                        LEASE
OBLIGATIONS.  Except as existing on the Closing Date and
operating leases the rent under which does not exceed $100,000 in the
aggregate, Borrower shall not create, incur, assume or suffer to exist any
obligations as lessee for the rent or hire of any property under leases or
agreements to lease.

 

6.24                        DISPUTES.  Borrower shall not agree, authorize or
otherwise consent to any proposed settlement, resolution or compromise of any
litigation, arbitration or other dispute with any Person without the prior
authorization of Administrative Agent and the Required Lenders if such proposed
settlement, resolution or compromise could reasonably be expected to result in
a Material Adverse Effect.

 

68

 

6.25                        ANTI-TERRORISM
LAW; ANTI-MONEY LAUNDERING.

 

6.25.1              Borrower shall
not directly or indirectly, knowingly (a) conduct any business or engage
in making or receiving any contribution of funds, goods or services to or for
the benefit of any Person described in Section 4.30(b), (b) deal in,
or otherwise engage in any transaction relating to, any property or interests
in property blocked pursuant to the Executive Order or any other Anti-Terrorism
Law, or (c) engage in or conspire to engage in any transaction that evades
or avoids, or has the purpose of evading or avoiding, or attempts to violate,
any of the prohibitions set forth in any Anti-Terrorism Law (and Borrower shall
deliver to the Lenders any certification or other evidence requested from time
to time by any Lender in its reasonable discretion, confirming Borrower’s
compliance with this Section 6.25.1.

 

6.25.2              Borrower shall
not cause or permit any of the funds that are used to repay the Loans to be
derived from any unlawful activity with the result that the making of the Loans
would be in violation of law.

 

6.26                        EMBARGOED
PERSONS.

 

6.26.1              (a) Borrower
shall not become a Person whose property or interests in property are blocked
or subject to blocking pursuant to Section 1 of the Executive Order, or
(b) engage in any dealings or transactions prohibited by Section 2 of
the Executive Order, or be otherwise associated with any such Person in any
manner violative of such Section 2.

 

6.26.2              Borrower shall
not cause or permit (a) any of the funds or properties that are used to
repay the Loans to constitute property of, or be beneficially owned directly or
indirectly by, any Person subject to sanctions or trade restrictions under
United States law (each, an “Embargoed
Person”) that is identified on (1) the “List of Specially
Designated Nationals and Blocked Persons” maintained by OFAC or on any other
similar list maintained by OFAC pursuant to any authorizing statute including,
but not limited to, the International Emergency Economic Powers Act, 50 U.S.C.
§§ 1701 et seq., The Trading
with the Enemy Act, 50 U.S.C. App. 1 et seq.,
and any executive order or regulation promulgated thereunder, with the result
that the investment in the Borrower Entities (whether directly or indirectly)
is prohibited by law, or the Loans made by the Lenders would be in violation of
law, or (2) the Executive Order, any related enabling legislation or any
other similar executive orders, or (b) any Embargoed Person to have any
direct or indirect interest, of any nature whatsoever in the Project, Borrower
and the other Borrower Entities, with the result that the investment in the
Project or Borrower (whether directly or indirectly) is prohibited by law or
the Loans are in violation of law.

 

6.27                        REGULATORY
STATUS.  Without the consent of the
Lenders, cause or permit (a) the termination of the status of Borrower as
an Exempt Wholesale Generator so long as necessary to be eligible for the
exemptions from regulation available to Exempt Wholesale Generators and owners
of Exempt Wholesale Generators under PUHCA or (b) the loss or revocation
of its authorization to sell wholesale electric capacity, energy and ancillary
services at market-based rates.

 

6.28                        CAPITAL
EXPENDITURES.  Borrower
shall not make capital expenditures that are not in the then-current Project
Budget or Annual Operating Budget, as applicable.

 

69

 

6.29                        SEPARATENESS.  The Borrower covenants that it shall not:

 

6.29.1                          commingle
assets with those of any other entity;

 

6.29.2                          hold its assets
in any other name than its own;

 

6.29.3                          conduct its business
in any name other than its own;

 

6.29.4                          maintain bank
accounts, books, records and financial statements that are not in accordance
with generally accepted accounting principles or combined with any other person
or entity;

 

6.29.5                          fail to observe
all company formalities;

 

6.29.6                          allow any other
Person to pay its liabilities (except payments made by or from capital
contributed by the Pledgor or the letters of credit issued by Affiliates of the
Borrower);

 

6.29.7                          fail to
maintain adequate capital in light of its contemplated business operations;

 

6.29.8                          fail to use
separate stationery, invoices and checks;

 

6.29.9                          fail maintain
an arm’s-length relationship with its Affiliates;

 

6.29.10                   fail to pay the
salaries of its own employees;

 

6.29.11                   guarantee or
become obligated for the debts of any other entity or hold out its credit as
being available to satisfy the obligations of others;

 

6.29.12                   make any loans
to any other Person;

 

6.29.13                   fail to
allocate fairly and reasonably any overhead for shared office space;

 

6.29.14                   pledge its
assets for the benefit of any other entity; and

 

6.29.15                   fail to hold
itself out as a separate entity, with the exception that Borrower shall not be
considered as a separate entity from the Sponsor or Pledgor for federal, and,
where applicable, state and local, tax purposes, and fail to correct any known
misunderstanding regarding its separate identity.

 

6.30                        INTERCONNECTION.  Borrower shall not send any request to
Interconnector to increase the Project interconnection capabilities of the
Transmission Line without the prior consent of Administrative Agent.

 

6.31                        GENERAL
ELECTRIC O&M AGREEMENT.  On or prior to December 31, 2010,
Borrower shall have: (a) entered into an Operations Support Agreement with
General Electric International Incorporated, a Delaware corporation, in form
and substance reasonably 

 

70

 

satisfactory to Administrative Agent relating to the
operation and maintenance of the turbines on the Project; (b) obtained
from General Electric International Incorporated, a Delaware corporation,
relating to such Operations Support Agreement a consent in the form of Exhibit E-1
with such changes as may be approved by Administrative Agent; and
(c) delivered to Administrative Agent a good standing certificate for
General Electric International Incorporated, a Delaware corporation, in
Delaware and Utah.

 

ARTICLE 7

ACCOUNTS

 

7.1                               ACCOUNT
WITHDRAWALS, TRANSFERS AND PAYMENTS.

 

7.1.1                     General
Procedures.

 

(a)                                 For every
withdrawal, transfer or payment from any Account, Borrower shall execute and
deliver to Administrative Agent an Account Withdrawal Request and a proposed
Account Withdrawal Instruction related thereto. 
Borrower shall submit, together with each set of Account Withdrawal
Documents, a copy of all receipts in excess of $25,000, invoices in excess of
$25,000, purchase orders in excess of $25,000 and any other appropriate
documentation or materials reasonably requested by Administrative Agent to
enable it to substantiate the withdrawals and transfers specified in the
applicable Account Withdrawal Request and the other matters described therein.

 

(b)                                 Upon receipt of
such Account Withdrawal Documents, Administrative Agent shall promptly review
such Account Withdrawal Documents. 
Administrative Agent (after consulting with Borrower and Independent
Engineer) may elect not to approve part, and, accordingly, may reduce the
amount of, any individual withdrawal, transfer or payment requested in any
Account Withdrawal Request if Administrative Agent determines in its reasonable
discretion that Borrower has not provided all of the appropriate documentation
contemplated by 7.1.1(a) to properly document and support the making of
such part of the requested withdrawal, transfer or payment.  If Administrative Agent does not approve
(such approval not to be unreasonably withheld) any Account Withdrawal
Documents, Administrative Agent shall promptly so notify Borrower (such notice
to specify in reasonable detail the reasons for not approving such Account
Withdrawal Documents), and Borrower shall then be permitted to submit a revised
set of Account Withdrawal Documents to Administrative Agent.

 

(c)                                  If in
Administrative Agent’s reasonable judgment such Account Withdrawal Documents
are consistent with the terms hereof, subject to Administrative Agent’s
approval of the amounts and other details provided therein, Administrative
Agent shall execute and deliver the applicable Account Withdrawal Instruction
to Depositary.  Borrower agrees that
Administrative Agent may direct Depositary to transfer any or all sums on
deposit in or credited to any Account directly into the accounts identified by
Borrower in each Account Withdrawal Request without further authorization from
Borrower; provided that if Borrower has notified Administrative Agent
that it is contesting a claim for payment in accordance with Section 5.2.2
and the other applicable Operative Documents, Administrative Agent shall not be
entitled to directly pay any amount being contested, except (i) any
portion of such amount which is not 

 

71

 

being contested by Borrower or (ii) payments
which Administrative Agent reasonably believes if not promptly made could
reasonably be expected to have a Material Adverse Effect.

 

7.1.2                     Account
Withdrawal Documents.  A set
of Account Withdrawal Documents shall be deemed properly delivered by Borrower
to Administrative Agent if such Account Withdrawal Documents have been properly
completed to the satisfaction of Administrative Agent and delivered in
accordance with the applicable time requirements set forth herein.  Unless specifically stated herein, all
Account Withdrawal Instructions are to be completed by Borrower and submitted
to Administrative Agent for approval and signature and then forwarded by
Administrative Agent to Depositary in accordance with the applicable time
requirements set forth herein.  To the
extent that any directions to Depositary require actions to be taken by Borrower
and Borrower fails to perform such actions, or if any Account Withdrawal
Documents submitted by Borrower are incorrect or if an Event of Default has
occurred and is continuing or would occur based on Borrower’s failure to
submit, or to submit accurate and necessary, Account Withdrawal Instructions,
Administrative Agent is entitled to perform such actions by completing and
executing an Account Withdrawal Instruction and delivering such Account
Withdrawal Instruction to Depositary.

 

7.1.3                     Repayment
of Loans in Full.  In
connection with any repayment in full of the Loans and termination of the
Commitments, Borrower may submit a set of Account Withdrawal Documents to
Administrative Agent requesting Administrative Agent to direct Depositary to
transfer or apply all remaining monies in the Accounts (other than the
Repayment Account) to the Repayment Account for repayment of the Loans on the
anticipated date thereof.  After
approving a set of Account Withdrawal Documents (or any revision thereof),
Administrative Agent shall execute and deliver to Depositary the applicable
Account Withdrawal Instruction within two Business Days of Administrative Agent’s
receipt of such Account Withdrawal Request.

 

7.2                               CONSTRUCTION
ACCOUNT.

 

7.2.1                     Establishment
of Construction Account.  The
Construction Account shall be established pursuant to Section 2.1 of the
Depositary Agreement.

 

7.2.2                     Deposits
into the Construction Account.  Borrower shall immediately deposit or cause
to be deposited into the Construction Account each of the following (it being
acknowledged and agreed that, to the extent any amounts referred to in this
Section 7.2.2 are received directly by Administrative Agent, Collateral
Agent or Depositary, (a) upon receipt of any such amounts, Administrative
Agent or Collateral Agent, as the case may be, shall deposit, or shall cause
Depositary to deposit, such amounts into the Construction Account as
contemplated by this Section 7.2.2, and (b) the obligation of
Borrower under this Section 7.2.2 to deposit any such amounts into the
Construction Account shall be deemed satisfied upon such deposit to the
Construction Account):

 

(i)                                     the proceeds of
all Loans, except SCPPA Cure Loans;

 

(ii)                                  all amounts
received by Borrower, Administrative Agent or Collateral Agent in respect of
any delay in start- up; and

 

72

 

 

(iii)                               all amounts
received by Borrower in respect of any delay-related liquidated damages prior
to Commercial Operation.

 

7.2.3                     Disbursements
from the Construction Account.  Borrower shall submit a set of Account
Withdrawal Documents to Administrative Agent as and when, but no more
frequently than two times each month Borrower seeks to withdraw or transfer
funds from the Construction Account at least four Business Days prior to making
such withdrawal.  The applicable Account
Withdrawal Request shall request Administrative Agent to direct Depositary to
transfer or apply monies on deposit in the Construction Account only to Persons
specified by Borrower to Administrative Agent to (i) pay, to the extent
consistent with the then-current Project Budget or otherwise approved or
permitted hereunder, Project Costs due and owing or to become due and owing
within the next month by Borrower, (ii) reimburse Sponsor and its
Affiliates for Project Costs previously paid by them in accordance with, and
subject to, Section 5.1.1(b)(ii), in each case in accordance with a duly
completed Drawdown Certificate or (iii) to make the Performance LC
Distribution.  In addition, Borrower may
request pursuant to an Account Withdrawal Request that amounts on deposit in
the Construction Account (other than amounts necessary to reach Final
Completion, as confirmed by Independent Engineer) be transferred to the Revenue
Account.  Administrative Agent shall
execute and deliver to Depositary the applicable Account Withdrawal Instruction
within two Business Days of Administrative Agent’s receipt of such Account
Withdrawal Request.

 

7.3                               REVENUE
ACCOUNT.

 

7.3.1                     Establishment
of Revenue Account.  The Revenue
Account shall be established pursuant to Section 2.1(a) of the
Depositary Agreement.

 

7.3.2                     Deposits
into Revenue Account.  Borrower shall
deposit or cause to be deposited all Project Revenues into the Revenue Account
(it being acknowledged and agreed that, to the extent any all Project Revenues
are received directly by Administrative Agent, Collateral Agent or Depositary,
(a) upon receipt of any such amounts, Administrative Agent or Collateral
Agent, as the case may be, shall deposit, or shall cause the Depositary to
deposit, all Project Revenues into the Revenue Account, and (b) the obligation
of Borrower under this Section 7.3.2 to deposit all Project Revenues into
the Revenue Account shall be deemed satisfied upon such deposit to the Revenue
Account).

 

7.3.3                     Disbursements
from the Revenue Account.  Amounts on
deposit in the Revenue Account may only be withdrawn for purposes of paying
amounts due and payable under this Agreement, to make the Performance LC
Distribution (to the extent funds are not available in the Construction
Account) or to pay O&M Costs as follows:

 

(a)                                 To cause
withdrawal or transfer of amounts on deposit in the Revenue Account to pay
amounts due and payable under this Agreement, Borrower shall submit to
Administrative Agent a set of Account Withdrawal Documents at least four
Business Days prior to amounts becoming due and payable under this
Agreement.  The applicable Account
Withdrawal Request shall request Administrative Agent to direct Depositary to
transfer or apply monies on deposit in the Revenue Account only to the
Administrative Agent for payment of such amounts.  After approving a set of Account Withdrawal
Documents (or any revision thereof), 

 

73

 

Administrative Agent shall execute and deliver to
Depositary the applicable Account Withdrawal Instruction within two Business
Days of Administrative Agent’s receipt of such Account Withdrawal Request; or

 

(b)                                 To cause
withdrawal or transfer of amounts on deposit in the Revenue Account to pay
O&M Costs or to make the Performance LC Distribution (each of which may
only occur if no Event of Default has occurred and is continuing), Borrower
shall submit to Administrative Agent a set of Account Withdrawal Documents
requesting Administrative Agent to direct Depositary to transfer or apply
monies on deposit in the Revenue Account only to Persons specified by Borrower
in respect of O&M Costs or the Performance LC Distribution.  After approving a set of Account Withdrawal
Documents (or any revision thereof), Administrative Agent shall execute and
deliver to Depositary the applicable Account Withdrawal Instruction within two
Business Days of Administrative Agent’s receipt of such Account Withdrawal
Request.

 

7.4                               APPLICATION
OF INSURANCE PROCEEDS.

 

7.4.1                     Establishment
of Insurance Proceeds Account.  The Insurance Proceeds Account shall be established
pursuant to Section 2.1(a) of the Depositary Agreement.

 

7.4.2                     Insurance
Proceeds.  Borrower
shall notify Administrative Agent of any casualty and keep Administrative Agent
timely apprised of insurance claim proceedings. 
All amounts and proceeds (including instruments) in respect of the Net
Cash Proceeds of any property insurance policy required to be maintained by
Borrower hereunder (“Insurance Proceeds”) shall be deposited into the
Insurance Proceeds Account and applied as provided in this Section, including
any amounts paid by the insurers directly to Administrative Agent (as loss
payee or additional insured, as the case may be) and Administrative Agent shall
deposit such Insurance Proceeds into the Insurance Proceeds Account to be
applied as provided in this Section.  If
paid to Borrower, such Insurance Proceeds shall be received in trust for
Administrative Agent, shall be segregated from other funds of Borrower, and
shall be forthwith deposited into the Insurance Proceeds Account in the same form
as received (with any necessary endorsement).

 

7.4.3                     Application
of Insurance Proceeds. 
Unless each of the following conditions is satisfied or waived by
Administrative Agent with respect to Insurance Proceeds relating to a Casualty
Event, all Insurance Proceeds shall be transferred to the Repayment Account and
applied to the prepayment of Loans:

 

(a)                                 such damage or
destruction does not constitute the destruction of all or substantially all of
the man-made portion of the Project;

 

(b)                                 no Event of
Default has occurred and is continuing and after giving effect to any proposed
repair and restoration, such damage or destruction or proposed repair and
restoration will not result in a Default or Event of Default;

 

(c)                                  Borrower and
the Independent Engineer certify, and Administrative Agent determines in its
reasonable judgment, that repair or restoration of the Project is technically
and economically feasible by no later than Date Certain and that a sufficient
amount of funds is or 

 

74

 

will be available to Borrower to make such repairs
and restorations and, if during the construction period, to achieve Completion;

 

(d)                                 if such damage
or destruction occurs during construction, such repair or restoration will occur,
in the reasonable judgment of Administrative Agent after consultation with the
Independent Engineer, prior to the Date Certain;

 

(e)                                  Administrative
Agent determines that after repair and restoration the Project will be able to
repay the Loans and other amounts due the Lenders as and when due;

 

(f)                                   no material
Permit is necessary to proceed with the repair and restoration and no material
amendment to this Agreement or any of the Credit Documents and no other
instrument, is necessary for the purpose of effecting the repairs or
restorations or subjecting the repairs or restorations to the Liens of the
Collateral Documents or, if any such is necessary, Borrower will be able to
obtain such as and when required;

 

(g)                                  if requested by
Administrative Agent, the Lenders shall receive an opinion of counsel
acceptable to Administrative Agent opining as to the matters described in
paragraph (f) above, and such opinion shall also state that such
repairs or restoration will be subject to the Liens of the Collateral Documents
at the same level of priority as the other Collateral; and

 

(h)                                 Administrative
Agent shall receive such additional title insurance, title insurance
endorsements, mechanic’s lien waivers, certificates, opinions or other matters
as it may reasonably request as necessary or appropriate in connection with
such repairs or restoration or to preserve or protect the Lenders’ interests
hereunder and in the Collateral.

 

7.4.4                     Restoration.  If the conditions in Section 7.4.3 have
been met, then such Insurance Proceeds shall be applied by Borrower to the
prompt repair or restoration of the Project related to such Casualty Event in
accordance with the following procedures:

 

(a)                                 Borrower shall
submit a detailed report to Administrative Agent describing Borrower’s plan for
effectuating repairs or restoration, and such report shall be subject to the
review and approval of Administrative Agent.

 

(b)                                 From time to
time after Administrative Agent shall have duly approved the making of such
repairs or restoration, Administrative Agent’s release of Insurance Proceeds
for application toward such repairs or restoration shall be conditioned upon
Borrower’s request and the presentation to Administrative Agent of all
documents, certificates and information with respect to such Insurance Proceeds
which would be required in order to obtain a Loan under this Agreement,
including a certificate from Borrower (i) describing in reasonable detail
the nature of the repairs or restoration to be effected with such release,
(ii) stating the cost of such repairs or restoration and the specific
amount requested to be paid over to or upon the order of Borrower and that such
amount is requested to pay the cost thereof, (iii) stating that the
aggregate amount requested by Borrower in respect of such repairs or
restoration (when added to any other Insurance Proceeds received by Borrower in
respect of such damage of destruction) does not exceed the cost of such repairs
or restoration and that a sufficient amount of funds is or will be available to
Borrower to complete the Project, and (iv) stating that no Event of
Default has 

 

75

 

occurred and is continuing other than an Event of
Default resulting solely from such damage or destruction.

 

7.4.5                     Certain
Casualty Events. 
Notwithstanding Sections 7.4.3 and 7.4.4, Borrower shall be permitted to
apply Insurance Proceeds relating to a single Casualty Event of less than or
equal to $500,000 (as determined by the replacement value thereof) to the
prompt repair or restoration of the Project related to such Casualty Event (or
Borrower may apply the available amount of the contingency in the Project
Budget to such repair or restoration prior to the receipt of such Insurance
Proceeds and, upon receipt of such Insurance Proceeds, restore the available
amount of the contingency in the Project Budget).  Borrower shall provide Administrative Agent
with notice of such Casualty Event and completion of the repair or restoration
the Project related such Casualty Event.

 

7.4.6                     Account
Withdrawal Documents.  To cause
withdrawal or transfer of amounts on deposit in the Insurance Proceeds Account,
Borrower shall submit to Administrative Agent a set of Account Withdrawal
Documents.  The applicable Account
Withdrawal Request shall request Administrative Agent to direct Depositary to
transfer or apply monies on deposit in the Insurance Proceeds Account in
compliance with Section 7.4.3 or 7.4.5. 
After approving a set of Account Withdrawal Documents (or any revision
thereof), Administrative Agent shall promptly execute and deliver to Depositary
the applicable Account Withdrawal Instruction.

 

7.4.7                     Surplus
Proceeds.  If, after
Insurance Proceeds have been applied to the repair or restoration of the
Project as provided in Section  7.4.4 or 7.4.5, Administrative Agent
determines that the Project will be able to operate at a level enabling
Borrower to pay and perform the Obligations as well as before the damage or
destruction, any excess Insurance Proceeds shall be transferred to the Repayment
Account and applied to the prepayment of Loans.

 

7.4.8                     Business
Interruption Insurance Proceeds.  Any business interruption Insurance Proceeds
received by Administrative Agent or Borrower shall be deposited into the
Revenue Account.

 

7.4.9                     Insurance
Proceeds in an Event of Default.  If a Default or Event of Default shall have
occurred and be continuing, then any provisions of this Section 7.4 to the
contrary notwithstanding, the Insurance Proceeds (including any Permitted
Investments made with such proceeds, which shall be liquidated in such manner
as Administrative Agent shall deem reasonable and prudent under the
circumstances) may be applied by Administrative Agent (a) to curing such
Default or Event of Default, and any Insurance Proceeds remaining thereafter
shall be applied as provided in this Section 7.4 or (b) toward
payment of the Obligations, in connection with exercise of Administrative Agent’s
remedies pursuant to Article 8.

 

7.5                               APPLICATION
OF EMINENT DOMAIN PROCEEDS.  All Net Cash Proceeds received in respect of
any Eminent Domain (“Eminent Domain Proceeds”) shall be transferred to
the Repayment Account and applied to the prepayment of Loans.

 

7.6                               ASSET
SALE ACCOUNT.

 

7.6.1                     Establishment
of Asset Sale Account.  The
Asset Sale Account shall be established pursuant to Section 2.1(a) of
the Depositary Agreement.

 

76

 

7.6.2                     Deposits
into Asset Sale Account. 
Borrower shall deposit or cause to be deposited the Net Cash Proceeds of
any sale of assets of the Borrower (other than sales that generate Project
Revenues) (“Sale Proceeds”) into the Asset Sale Account.  Nothing in this Section shall be deemed
approval of any assets sales except in accordance with Section 6.4.

 

7.6.3                     Disbursements
from the Asset Sale Account.

 

(a)                                 Sale Proceeds
with respect to any asset sale where the consideration is less than $50,000
shall be deposited in the Construction Account, if such sale occurs prior to
Commercial Operation, or in the Revenue Account, if such sale occurs after
Commercial Operation.

 

(b)                                 Sale Proceeds
with respect to any asset sale where the consideration is equal to or greater
than $50,000 shall be transferred to the Repayment Account and applied to the
prepayment of Loans.

 

7.6.4                     Account
Withdrawal Documents.  To cause
withdrawal or transfer of amounts on deposit in the Asset Sale Account,
Borrower shall submit to Administrative Agent a set of Account Withdrawal
Documents.  The applicable Account
Withdrawal Request shall request Administrative Agent to direct Depositary to
transfer or apply monies on deposit in the Asset Sale Account in compliance
with Section 7.6.3.  After approving
a set of Account Withdrawal Documents (or any revision thereof), Administrative
Agent shall promptly execute and deliver to Depositary the applicable Account
Withdrawal Instruction.

 

7.7                               SCPPA
CURE RESERVE ACCOUNT.

 

7.7.1                     Establishment
of SCPPA Cure Reserve Account.  The SCPPA Cure Reserve Account shall be
established pursuant to Section 2.1(a) of the Depositary Agreement.

 

7.7.2                     Deposits
into SCPPA Cure Reserve Account.  Borrower shall immediately deposit or cause
to be deposited into the SCPPA Cure Reserve Account the proceeds of all SCPPA
Cure Loans.

 

7.8                               REPAYMENT
ACCOUNT

 

7.8.1                     Establishment
of Repayment Account.  The
Repayment Account shall be established pursuant to Section 2.1(a) of
the Depositary Agreement.

 

7.8.2                     Deposits
into Repayment Account. 
Borrower shall immediately deposit into the Repayment Account the amount
of any Mandatory Prepayment.

 

7.8.3                     Disbursements
from the Repayment Account.  Administrative Agent will be the only Person
that is permitted to direct disbursements from the Repayment Account.  Administrative Agent shall execute and
deliver to Depositary the applicable Account Withdrawal Instruction directing
that amounts in the Repayment Account be transferred to the Administrative
Agent for repayment of the Loans.  Except
as otherwise notified to Depositary Agent in respect of amounts to be held in
the Repayment Account pursuant to Sections 2.1.7(a)(ii) and 2.7.1, amounts
in the Repayment Account shall be transferred to Administrative Agent on a
daily basis.

 

77

 

7.9                               PROCEEDS
AND ACCOUNTS.  Borrower
shall not have any rights or powers with respect to any monies or Accounts
except to have funds on deposit therein applied in accordance with this
Agreement and as set forth in the Depositary Agreement.  Administrative Agent is hereby authorized to
reduce to cash any Permitted Investment (without regard to maturity) in order
to make any application required by any section of this Article 7 or
otherwise pursuant to the Credit Documents. 
Upon the occurrence of an Event of Default, Collateral Agent shall have
all rights and powers with respect to Proceeds and Accounts as it has with
respect to any other Collateral and may apply Proceeds and Accounts to the
payment of interest, principal, fees, costs, charges or other amounts due or
payable to the Secured Parties in such order as Administrative Agent may elect
in its sole discretion.

 

7.10                        PERMITTED
INVESTMENTS. 
Administrative Agent shall invest all amounts held in the Accounts or as
Insurance Proceeds only in Permitted Investments as directed by and at the
expense and risk of Borrower.

 

ARTICLE 8

EVENTS OF DEFAULT; REMEDIES

 

8.1                               EVENTS
OF DEFAULT.  The
occurrence of any of the following events shall constitute an event of default
(each, an “Event of Default”) hereunder:

 

8.1.1                     Failure
to Make Payments.  Borrower
shall fail to pay, in accordance with the terms of this Agreement (a) any
principal on any Loan, (b) any interest on any Loan within three days
after the date such sum is due, (c) any scheduled fee, cost, charge or sum
due hereunder or under any Credit Document within three days of the date that
such sum is due, or (d) any amount due for Mandatory Prepayment, within
three days of the date that such payment is due.

 

8.1.2                     Bankruptcy;
Insolvency.  Any
Bankruptcy Event shall occur with respect to (i) any Minor Project
Participant and such Bankruptcy Event could reasonably be expected to have a
Material Adverse Effect or (ii) any other Major Project Participant, in
each case so long as such Person shall have outstanding or unperformed
obligations under any Operative Document to which it is a party.

 

8.1.3                     Defaults
Under Other Debt.  Borrower
shall default for a period beyond any applicable grace period (not to exceed
30 days) (a) in the payment of any principal, interest or other
amount due under any agreement or instrument involving Debt (other than the
Debt hereunder) and the outstanding amount or amounts payable under any such
agreement or instrument equals or exceeds $500,000 in the aggregate,
(b) in the observance or performance of any other agreement or condition
relating to such Debt or contained in any agreement or instrument evidencing,
securing or relating thereto, or any other event shall occur or condition
exist, the effect of which default, event or condition is to cause, or to
permit any holder of such Debt (or a trustee or agent of such holder or
beneficiary) to cause, such Debt to become or be declared due and payable prior
to its stated maturity or the stated maturity of any underlying obligation, as
the case may be (upon the giving or receiving of notice, lapse of time, both,
or otherwise), or (c) any such Debt shall be declared to be due and
payable, or required to be prepaid or redeemed (other than by a regularly
scheduled required prepayment or redemption), 

 

78

 

purchased or defeased, or an offer to prepay, redeem,
purchase or defease such Debt shall be required to be made, in each case prior
to the stated maturity thereof and the outstanding amount or amounts payable in
respect of such Debt by Borrower equals or exceeds $500,000 in the aggregate.

 

8.1.4                     Judgments.  A final judgment or order for the payment of
money shall be entered against Borrower in the amount of $1,500,000 or more
individually or in the aggregate, other  than, in each case, a
judgment or order, (a) which is fully covered by insurance and the insurer
has been notified of, and has not disputed the claim made for the payment of,
the amount of such judgment or order, (b) which is vacated, stayed,
discharged or, if required for appeal, bonded pending such appeal within
30 days after its entry or, in the case of a stayed and/or bonded
judgment, the judgment is affirmed on appeal, or (c) the execution of
which is effectively stayed within 60 days after its entry unless, after the
entry of such stay, there shall be a period of more than 60 consecutive days
during which the execution of such judgment is not effectively stayed.  Any non-monetary judgment or order shall be
entered against Borrower that could reasonably be expected to have a Material
Adverse Effect other  than a judgment or order, which is discharged
within 60 days after its entry, unless, after the entry of such stay,
there shall be a period of not more than 60 consecutive days during which the
execution of such judgment is not effectively stayed.

 

8.1.5                     ERISA.  If any Credit Party or any ERISA Affiliate
should establish, maintain, contribute to or become obligated to contribute to
any ERISA Plan and (a) a Reportable Event (under Section 4043(b) or
(c) of ERISA for which notice to the PBGC is not waived) shall have
occurred with respect to any ERISA Plan and, within 30 days after the
reporting of such Reportable Event to Administrative Agent by Borrower (or
Administrative Agent otherwise obtaining knowledge of such event) and the
furnishing of such information as Administrative Agent may reasonably request
with respect thereto, Administrative Agent shall have notified Borrower that
(i)  Required Lenders have made a determination that, on the basis of such
Reportable Event, there are reasonable grounds for the termination of such
ERISA Plan by the PBGC or for the PBGC to ask for the appointment by the
appropriate United States District Court of a trustee to administer such ERISA
Plan and (ii) as a result thereof, an Event of Default exists hereunder;
or (b) a trustee shall be appointed by a United States District Court to
administer any ERISA Plan; or (c) the PBGC shall institute proceedings to
terminate any ERISA Plan; or (d) a complete or partial withdrawal by
Borrower or any ERISA Affiliate from any Multiemployer Plan shall have occurred
that could reasonably be expected to result in a material liability and, within
30 days after the reporting of any such occurrence to Administrative Agent
by Borrower (or Administrative Agent otherwise obtaining knowledge of such
event) and the furnishing of such information as Administrative Agent or
Required Lenders may reasonably request with respect thereto, Administrative
Agent shall have notified Borrower that Required Lenders have made a
determination that, on the basis of such occurrence, an Event of Default exists
hereunder; provided, that any of the events described in this
Section 8.1.5 shall not result in a Default or Event of Default unless
they result in joint liability to Borrower and all ERISA Affiliates in an
aggregate amount in excess of $250,000.

 

79

 

8.1.6                     Ownership
of Project.  Borrower
shall cease to be the sole owner of the Project.

 

8.1.7                     Pledgor.  Pledgor ceases to be a holding company whose
sole asset is its ownership interests in Borrower.

 

8.1.8                     Breach
of Terms of Agreement.

 

(a)                                 Defaults
Without Cure Periods.  Borrower
shall fail to perform or observe any of the covenants set forth in
Section 5.1, 5.4, 5.9(a), 5.15.5 or 5.17, or Article 6 of this Agreement.

 

(b)                                 Other Defaults.  Any Credit Party
shall fail to perform or observe any of the agreements set forth herein or in
any Credit Document not otherwise specifically provided for in Section 8.1.8(a) or
elsewhere in this Article 8, and such failure shall continue unremedied
for a period of 30 days after the earlier of Borrower becomes aware
thereof or receives notice thereof from Administrative Agent; provided,
that, if (i) such failure does not consist principally of the failure to
pay money and cannot be cured within such 30 day period, (ii) such
failure is susceptible of cure within 90 days, (iii) such Credit
Party is proceeding with diligence and in good faith to cure such failure,
(iv) the existence of such failure has not had and could not, after
considering the nature of the cure, be reasonably expected to have a Material
Adverse Effect, and (v) Administrative Agent shall have received an
officer’s certificate signed by a Responsible Officer to the effect of
clauses (i), (ii), (iii) and (iv) above and stating what action
such Credit Party is taking to cure such failure, then such 30-day cure period
shall be extended to such date, not to exceed a total of 90 days, as shall
be necessary for such Credit Party diligently to cure such failure.

 

(c)                                  Remedial Plan.  Borrower fails to deliver a Remedial
Plan within the required 10-day period following Independent Engineer’s
determination as set forth in Section 5.13.2, or Borrower fails to
adequately address Independent Engineer’s objections to such Remedial Plan
within the second 10-day period described in Section 5.13.2; or Borrower
fails at any time to diligently implement any Remedial Plan.

 

8.1.9                     Loss
of Collateral.  (a) All
or any material portion of the Collateral is damaged, seized or appropriated
without appropriate insurance proceeds (subject to the underlying deductible)
or without fair value being paid therefor so as to allow replacement of such
Collateral or prepayment of Loans and to allow Borrower to continue satisfying
its obligations hereunder and under the other Operative Documents, or
(b) any Person other than the Secured Parties attaches or institutes
proceedings to attach all or any material part of the Collateral (other than
Permitted Liens), and any such proceeding or attachment or any judgment Lien
against any such Collateral (i) remains unlifted, unstayed or undischarged
for a period of 30 days or (ii) is upheld in a final nonappealable
judgment of a court of competent jurisdiction.

 

8.1.10              Commercial
Operation.  Commercial
Operation shall not have occurred by the Date Certain.

 

80

 

8.1.11              Regulatory
Status.

 

(a)                                 If loss of
Exempt Wholesale Generator status for Borrower or loss of Eligible Facility
status for the Project could reasonably be expected to have a Material Adverse
Effect, (i) Borrower shall have tendered notice to FERC that Borrower has
ceased to be an Exempt Wholesale Generator, or (ii) FERC shall have issued
an order determining that Borrower no longer meets the criteria of an Exempt
Wholesale Generator or takes other action revoking such Exempt Wholesale
Generator status.

 

(b)                                 An Adverse PUHCA Event shall occur.

 

(c)                                  If loss of
Borrower’s market-based rate authority could
reasonably be expected to have a Material Adverse Effect, (i) Borrower
shall have tendered notice to FERC that it seeks to cancel its market-based
rate authority or (ii) FERC shall have issued an order determining that
the Borrower does not have authorization to make wholesale sales of electric
energy, capacity, or ancillary services specified in the Borrower’s FERC
Electric Tariff at market-based rates, or taken any other action revoking
Borrower’s market-based rate authority.

 

(d)                                 If Borrower’s failure to
comply with any requirements under the FPA that are applicable to Borrower,
including the requirements applicable to a “public utility” with authority to
sell at wholesale electric power at market-based rates could reasonably be expected to have a Material Adverse Effect, FERC
shall have issued an order finding that Borrower has not complied with such
requirement under the FPA applicable to a “public utility” with
authority to sell at wholesale electric power at market-based rates.

 

8.1.12              Abandonment.

 

(a)                                 At any time
prior to Commercial Operation, Borrower shall announce that it is abandoning
the Project or the Project shall be abandoned or work thereon shall cease for a
period of more than 15 consecutive days for any reason, which period
(i) shall be measured from the first occurrence of a work stoppage and
continuing until work of a substantial nature is resumed and thereafter
diligently continued, and (ii) shall not include delays caused by any
event of force majeure or actions of any Governmental Authority.

 

(b)                                 At any time following Commercial Operation, Borrower shall announce that
(i) it is abandoning the Project or (ii) the Project shall be
abandoned or operation thereof shall be suspended for a period of more than 30
consecutive days for any reason (other than force majeure or actions of any
Governmental Authority); provided, that none of (A) scheduled
maintenance of the Project, (B) repairs to the Project, whether or not
scheduled, or (C) a forced outage or scheduled outage of the Project,
shall constitute abandonment or suspension of the Project, so long as Borrower
is diligently attempting to end such suspension.

 

8.1.13              Security.  Any of the Collateral Documents, once
executed and delivered, shall, except as the result of the acts or omissions of
any Secured Party, fail to provide to Collateral Agent the Liens, first
priority security interests (subject to Permitted Liens described in
clauses (a) and (e) of the definition thereof, to the extent
required by Governmental Rule, clauses (b), (c) and (g) of the
definition thereof and CoBank’s Lien on the CoBank Equities), rights, titles,
interest, remedies permitted by law, powers or privileges intended to be
created 

 

81

 

thereby (including the priority intended to be
created thereby) or, except in accordance with its terms, cease to be in full
force and effect, or the first priority or validity thereof or the
applicability thereof to the Loans or any other Obligations purported to be
secured or guaranteed thereby or any part thereof shall be disaffirmed by or on
behalf of Borrower.

 

8.1.14              Loss
of or Failure to Obtain Applicable Permits.

 

(a)                                 Borrower shall
fail to obtain any Permit on or before the date that such Permit becomes an
Applicable Permit with respect to the Project, and such failure could
reasonably be expected to have a Material Adverse Effect.

 

(b)                                 Any Applicable
Permit or Applicable Third Party Permit shall be materially modified (other
than modifications contemplated in a Project Document requested by Borrower and
approved in advance of such modification by Administrative Agent acting at the
direction of the Required Lenders, which approval shall not be unreasonably
withheld), revoked, canceled or not renewed by the issuing agency or other
Governmental Authority having jurisdiction (or otherwise ceases to be in full
force and effect) and within 30 days thereafter Borrower is not able to
demonstrate to the reasonable satisfaction of the Required Lenders that such
modification of, revocation of, cancellation of, failure to renew, or failure
to maintain in full force and effect such Permit could not reasonably be
expected to have a Material Adverse Effect.

 

8.1.15              Credit
Document Matters.  At any time
after the execution and delivery thereof, (a) any Credit Document or any
material provision hereof or thereof (i) ceases to be in full force and
effect or to be valid and binding on any party thereto other than a Secured
Party (other than by reason of the satisfaction in full of the Obligations or
any termination of a Credit Document in accordance with the terms hereof or
thereof), or is assigned or otherwise transferred (except as otherwise required
or expressly permitted hereunder or thereunder) or is prematurely terminated by
any party thereto (other than a Secured Party), (ii) is or becomes
invalid, illegal or unenforceable, or any party hereto or thereto (other than a
Secured Party) repudiates or disavows or takes any action to challenge the
validity or enforceability of such agreement, (iii) is declared null and
void by a Governmental Authority of competent jurisdiction, or (iv) fails
to or ceases to provide the rights, powers and privileges purported to be
created thereby or hereby, or (b) any authorization or approval by any
Governmental Authority necessary to enable any Credit Party to comply with or
perform its Obligations or otherwise perform in accordance with the terms of
the Credit Documents shall be revoked, withdrawn or withheld, or shall
otherwise fail to be issued or remain in full force and effect; provided,
however, in the case of the BLM Right of Way (Phase II), the BLM Right
of Way (Generator Lead Line), the SITLA Lease and the SITLA Right of Way, the
foregoing is subject to applicable Governmental Rules limiting the
enforceability of Liens therein.

 

8.1.16              Misstatements;
Omissions.  Any representation or warranty made or deemed
made by any Credit Party in any Credit Document to which such Credit Party is a
party, or in any separate statement, certificate or document delivered to any
Secured Party under any Credit Document to which such Credit Party is a party,
proves to have been untrue, false or misleading in any material respect as of
the time made, deemed made, confirmed or furnished, and such material
misstatement, omission or other inaccuracy shall continue unremedied for a
period of 90 days after Borrower first obtained actual knowledge of such
misstatement,

 

82

 

 

ommission, or inaccuracy or first
received notice from Administrative Agent specificying such misstatement,
ommission, or inaccuracy and requiring it to be cured, provided that such cure
is feasible.  For purposes of this
paragraph, “cure” means to cause the underlying facts and circumstances to be
such that the representation or warranty becomes true, and to remove any
adverse effect the material misstatment, omission or inaccuracy may have
caused.

 

8.1.17              Project
Document Problems.

 

(a)                                 Borrower
Defaults.  Borrower
shall be in breach of, or in default of, any material obligation under a Major
Project Document (other than the PPA) and is not otherwise waived by the
counterparty of such Major Project Document and such breach or default shall
not be remediable or, if remediable, shall continue unremedied for the lesser
of (i) a period of 30 days after Borrower receives notice thereof
from the counterparty to such Major Project Document or (ii) such period
of time (without giving effect to any extension given to Collateral Agent under
any applicable Consent with respect thereto) under such Major Project Document
which Borrower has available to it in which to remedy such breach or default; provided,
that if (A) such breach does not involve the payment of money and cannot
be cured within such 30 day period (or such lesser period of time, as the
case may be), (B) such breach is susceptible of cure within 90 days
after such breach or default, (C) Borrower is proceeding with diligence
and in good faith to cure such breach, (D) the existence of such breach or
default has not had and could not after considering the nature of the cure, be
reasonably expected to give rise to termination by the counterparty of the
Major Project Document which is subject to breach or to otherwise have a
Material Adverse Effect, and (E) Administrative Agent shall have received
an officer’s certificate signed by a Responsible Officer to the effect of
clauses (A), (B), (C) and (D) above and stating the action
Borrower is taking to cure such breach, then such 30 day cure period (or
such lesser period of time, as the case may be) shall be extended to such date,
not to exceed a total of 90 days, as shall be necessary for Borrower
diligently to cure such breach.

 

(b)                                 Third Party
Defaults.  Any Person
other than Borrower shall be in breach of, or in default of a material
obligation under, a Major Project Document (other than the PPA) and such breach
or default shall not be remediable or, if remediable, shall continue unremedied
for a period beyond the applicable grace period or, in the event no grace
period is specified in such Major Project Document and no remedy is specified
for such failure to perform, such failure shall remain unremedied for 30 days
after the date of receipt by such Person of written notice thereof from the
counterparty thereto; provided, that if (i) such breach cannot be
cured within such grace period, (ii) such breach or default is susceptible
of cure within 90 days, (iii) the breaching Person or Borrower is
proceeding with diligence and in good faith to cure such breach, and
(iv) the existence of such breach has not had and could not after
considering the nature of the cure, be reasonably expected to result in a
Material Adverse Effect, then such 30 day cure period shall be extended to
such date, not to exceed a total of 90 days, as shall be necessary for
such breaching Person diligently to cure such breach; provided, further,
that a breach or default of a Minor Project Document shall not be deemed an
Event of Default if such Minor Project Document is replaced by a replacement
Project Document with a Replacement Project Participant within 30 days after
such breach or default.

 

83

 

(c)                                  PPA Defaults.  Any Person shall be in breach of, or in
default of, any obligation under the PPA and such breach or default shall not
be remediable or, if remediable, shall continue unremedied for a period beyond
any applicable grace period.

 

(d)                                 Third Party
Consents. 
(i) Any Person other than Borrower shall disaffirm or repudiate in
writing its material obligations under any Major Project Document or Consent,
(ii) any representation or warranty made by any Person other than Borrower
in a Consent shall be untrue or misleading in any material respect as of the
time made and such untrue or misleading representation or warranty could
reasonably be expected to materially adversely affect the rights of Collateral
Agent or the Secured Parties thereunder or to otherwise result in a Material
Adverse Effect, or (iii) a Person other than Borrower shall breach any
material covenant of a Consent and such breach or default shall not be
remediable or, if remediable, shall continue unremedied for a period of
30 days from the time Borrower obtains knowledge of such breach; provided,
that if (A) such breach cannot be cured within such 30 day period,
(B) such breach is susceptible of cure within 90 days, (C) the
breaching party or Borrower is proceeding with diligence and in good faith to
cure such breach, and (D) the existence of such breach has not had and
could not after considering the nature of the cure, be reasonably expected to
have a Material Adverse Effect, then such 30 day cure period shall be
extended to such date, not to exceed a total of 90 days, as shall be necessary
for such third party diligently to cure such breach; provided, that a
disaffirmation, repudiation, misrepresentation, breach or default in respect of
a Minor Project Document shall not be deemed an Event of Default if such Minor
Project Document is replaced by a replacement Project Document with a
Replacement Project Participant within 30 days after such Borrower has
knowledge of such disaffirmation, repudiation, misrepresentation, breach or
default.

 

(e)                                  Termination.  At any time after the execution and delivery
thereof, (a) any Major Project Document or any material provision thereof
(i) ceases to be in full force and effect or to be valid and binding on
any party thereto (other than by reason of the satisfaction of performance of
such agreement or provision or any other termination thereof in accordance with
the terms thereof), or is assigned or otherwise transferred (except as
otherwise required or expressly permitted hereunder or thereunder) or is
prematurely terminated by any party thereto, (ii) is or becomes invalid,
illegal or unenforceable, or any party hereto or thereto repudiates or disavows
or takes any action to challenge the validity or enforceability of such
agreement, (iii) is declared null and void by a Governmental Authority of competent
jurisdiction, or written notice is given by a Governmental Authority or
applicable counterparty contesting the validity or enforcement thereof, or
(iv) fails to or ceases to provide the rights, powers and privileges
purported to be created thereby; provided, that such event in respect of
a Minor Project Document shall not be deemed an Event of Default if such Minor
Project Document is replaced by a replacement Project Document with a
Replacement Project Participant within 30 days after such event.

 

8.1.18              Change
of Control.  There shall
be any Change of Control without the consent of the Required Lenders (which
shall not be unreasonably withheld or delayed).

 

8.1.19              Disqualified
Person.  Borrower, Pledgor or Parent
shall become a Disqualified Person, Parent shall cease to be a corporation for
tax purposes or there shall be a Recapture Event.

 

84

 

8.1.20              Eminent
Domain.  There shall have occurred any
act or series of acts attributable to any Governmental Authority which
(a) in the reasonable judgment of Administrative Agent has the effect of
depriving the Secured Parties of their fundamental rights as creditors in
respect of the Credit Documents, (b) confiscates, expropriates,
nationalizes or otherwise acquires compulsorily the ownership or control of all
or any material part of the Project, or (c) in the reasonable judgment of
Administrative Agent has the effect of materially impairing the value of any
Major Project Document, and such act or series of acts continues uncured for
90 days or more.

 

8.1.21              Letters
of Credit Provided by Sponsor.  Any letter of credit required under any
Project Document which, as of the Closing Date, is provided by Sponsor or any
Affiliate thereof (other than the Borrower) shall fail to be maintained as
required under the respective Project Document.

 

8.2                         REMEDIES.  Subject to Article 9, upon the
occurrence and during the continuation of an Event of Default, the Secured
Parties may, at the direction of Administrative Agent, and shall, at the
election of the Required Lenders, without further notice of default,
presentment or demand for payment, protest or notice of non-payment or
dishonor, or other notices or demands of any kind, all such notices and demands
(other than notices required by the Credit Documents) being waived, exercise
any or all of the following rights and remedies, in any combination or order
that the Required Lenders may elect, in addition to such other rights or
remedies as the Secured Parties may have hereunder, under the Collateral
Documents or at law or in equity:

 

8.2.1                     No
Further Loans.  Declare all
Commitments cancelled, refuse, and Administrative Agent and the Lenders shall
not be obligated to continue any Loans, make any additional Loans or make any
payments, or permit the making of payments, from any Account or the
Construction Fund  or any Proceeds or other funds
held by Administrative Agent or Collateral Agent under the Credit Documents or
on behalf of Borrower; provided, that in the case of an Event of Default
occurring under Section 8.1.2 with respect to Borrower, all such
Commitments shall be cancelled and terminated without further act of any
Secured Party.

 

8.2.2                     Cure
by Agents.  Without any
obligation to do so, make disbursements or Loans to or on behalf of Borrower or
disburse amounts from the Construction Account or any other Account to cure
(a) any Default or Event of Default and (b) any default and render
any performance under any Project Document as the Required Lenders in their
sole discretion may consider necessary or appropriate, whether to preserve and
protect the Collateral or the Secured Parties’ interests therein or for any
other reason.  All sums so expended
through new Loans, together with interest on such total amount at the Default
Rate (but in no event shall the rate exceed the maximum lawful rate), shall be
repaid by Borrower to Administrative Agent or Collateral Agent, as the case may
be, on demand and shall be secured by the Credit Documents, notwithstanding
that such expenditures may, together with amounts advanced under this
Agreement, exceed the aggregate amount of the Total Loan Commitment.

 

8.2.3                     Acceleration.  Declare and make all or a portion of the sums
of accrued and outstanding principal and accrued but unpaid interest remaining
under this Agreement, together with all unpaid fees, costs (including
Eurodollar Breakage Costs) and charges due under 

 

85

 

any Credit Document, immediately due and payable and
require Borrower immediately, without presentment, demand, protest or other
notice of any kind, all of which Borrower hereby expressly waives, to pay
Administrative Agent or the Secured Parties an amount in immediately available
funds equal to the aggregate amount of any outstanding Obligations; provided,
that, in the event of an Event of Default occurring under Section 8.1.2
with respect to Borrower, all such amounts shall become immediately due and
payable without further act of any Secured Party.

 

8.2.4                     Cash
Collateral.  Apply or execute
upon any amounts on deposit in any Account or any Proceeds, cash collateral,
proceeds of foreclosing or otherwise realizing upon Collateral, or any other
moneys of Borrower on deposit with any Secured Party in the manner provided in
the UCC and other relevant statutes and decisions and interpretations
thereunder with respect to cash collateral. 
Without limiting the foregoing, each of Administrative Agent and
Collateral Agent shall have all rights and powers with respect to Proceeds,
cash collateral, the Accounts and the contents of the Accounts as it has with
respect to any other Collateral and may apply, or cause the application of,
such amounts to the payment of interest, principal, fees, costs, charges or
other amounts due or payable to any Secured Party with respect to the Loans in
such order as the Required Lenders may elect in their sole discretion.

 

8.2.5                     Possession
of Project.  Enter into
possession of the Project and perform any and all work and labor necessary to
complete the Project substantially according to the Plans and Specifications or
to operate and maintain the Project, and all sums expended by Administrative
Agent, Collateral Agent or Depositary in so doing, together with interest on
such total amount at the Default Rate, shall be repaid by Borrower to
Administrative Agent, Collateral Agent or Depositary, as the case may be, upon
demand and shall be secured by the Credit Documents, notwithstanding that such
expenditures may, together with amounts advanced under this Agreement, exceed the
aggregate amount of the Total Loan Commitment.

 

8.2.6                     Remedies
Under Credit Documents. 
Exercise, and direct Administrative Agent Depositary or Collateral Agent
(as the case may be) to exercise, any and all rights and remedies available to
it under any of the Credit Documents, including judicial or non-judicial
foreclosure or public or private sale of any of the Collateral pursuant to the
Collateral Documents.

 

ARTICLE 9

SCPPA AND PPA PROVISIONS

 

9.1                               SCPPA
CURE RIGHTS. 
Notwithstanding anything to the contrary in this Agreement or any other
Credit Document, upon Administrative Agent learning of an Event of Default,
Administrative Agent and Collateral Agent shall provide written notice to SCPPA
of such Event of Default.  Prior to any
Secured Party exercising any remedies with respect to such Event of Default,
SCPPA shall have the right, but not the obligation, to cure such Event of
Default so long as such cure is completed within the SCPPA Cure Period and as
provided in this Article 9.  Any
such cure by SCPPA shall be treated as if Borrower had cured the applicable
default within the cure period afforded Borrower for such Event of Default
under this Agreement.

 

86

 

9.2                               SCPPA
CURE LOANS.

 

9.2.1                     Borrowing
of SCPPA Cure Loans.  In the
event that the cure of an Event of Default as set forth in Section 9.1
would reduce the purchase price of the Project under the PPA pursuant to Section 15.21
thereof, then Borrower shall be deemed to have requested the Borrowing of Loans
in the amount of such reduction on the date of such cure (each a “SCPPA Cure
Loan”) and Lenders shall make such SCPPA Cure Loan at any time on or after
the date of such cure notwithstanding any failure to meet the conditions in Section 3.2.  The proceeds of such SCPPA Cure Loans shall
be deposited in the SCPPA Cure Reserve Account.

 

9.2.2                     SCPPA
Holdback. 
Notwithstanding anything to the contrary in this Agreement and the other
Credit Documents, there shall be a reserve against the borrowing of Loans (other
than SCPPA Cure Loans) in the amount of (a) the Maximum SCPPA Cure Amount less (b) the aggregate amount of SCPPA Cure Loans
outstanding.

 

9.3                               POWER
OF ATTORNEY.  Borrower
hereby grants to each of Administrative Agent and Collateral Agent a power of
attorney to send any and all notices under the PPA, and take any actions under
the PPA, in its name and on its behalf; and such power of attorney shall be
deemed coupled with an interest. 
Notwithstanding anything to the contrary contained herein, such power of
attorney shall terminate upon the termination of this Agreement.

 

9.4                               SCPPA
AS THIRD PARTY BENEFICIARY.  Notwithstanding anything to the contrary in
this Agreement or any other Credit Document, SCPPA is an express third party
beneficiary of the provisions of Section 9.1 and definitions related
thereto and shall be entitled to exercise and enforce its rights thereunder,
and such section and related definitions may not be amended or modified without
SCPPA’s written consent.

 

9.5                               ASSIGNMENT
OF THE LOANS TO SCPPA. 
Notwithstanding anything to the contrary in this Agreement or any other
Credit Document (other than the SCPPA Consent), if the conditions in Section 1.3(c) of
the SCPPA Consent have been met, each Lender agrees to assign to SCPPA all of
such Lender’s rights, title, interests and obligations under this Agreement
(including the Loans and Loan Commitments) and the other Credit Documents as
set forth in Section 1.3(c) of the SCPPA Consent.  Borrower’s consent to such assignment shall
not be required and the fee set forth in Section 13.17.2(d) shall not
be charged.  Upon the consummation of
such sale, the Administrative Agent, Collateral Agent, each Co-Syndication
Agent, each Joint Lead Arranger and each Joint Bookrunner shall each be deemed
to have resigned in their respective capacities, and SCPPA shall, without any
further action, be entitled to exercise the Lenders’ rights and assume the
Lenders’ obligations under this Agreement and the other Credit Documents and
shall become Administrative Agent and Collateral Agent hereunder and under the
other Credit Documents.  Borrower agrees
to enter into any documents reasonably requested by SCPPA to evidence such
resignation and such agency appointments, as well as such rights and
obligations assigned to SCPPA.

 

ARTICLE 10

SCOPE OF LIABILITY

 

Except
as set forth in this Article 10, notwithstanding anything in any Credit
Document to the contrary (excluding Section 8.22 of the Pledge Agreement),
the Secured Parties shall have no recourse or claims with respect to the
transactions contemplated by the Operative 

 

87

 

Documents
against Pledgor, Sponsor or any of their respective Affiliates (other than
Borrower), shareholders, officers, directors or employees (collectively, the “Nonrecourse
Persons”) and the Secured Parties’ recourse against Borrower and the
Nonrecourse Persons shall be limited to the Collateral, the Project, all
Project Revenues, all Loan proceeds, Insurance Proceeds, Eminent Domain
Proceeds, and all income or revenues of the foregoing as and to the extent
provided herein and in the Collateral Documents (which, for the avoidance of
doubt, excludes the payments allowed to any Nonrecourse Person pursuant to the
terms of any Credit Document, including pursuant to Section 5.1.1(b) of
this Agreement); provided, that the foregoing provision of this
Article 10 shall not in any way (a) constitute a waiver, release or
discharge of any of the indebtedness, or of any of the terms, covenants,
conditions, or provisions of any Credit Document (and the same shall continue,
but without liability to the Nonrecourse Persons, until fully paid, discharged,
observed, or performed) or otherwise
relieve any such Person from its obligations under the Credit Documents to
which it is a party or shall preclude, restrict, reduce, limit or otherwise
affect the rights, powers and remedies of the Secured Parties to enforce (or
cause to be enforced) such obligations against such Person or such Person’s
properties to the extent permitted by any Credit Document;
(b) limit, reduce, restrict or otherwise affect the right of any Secured
Party (or any assignee, beneficiary or successor to any of them) to name
Borrower or any other Person as a defendant in any action or suit for a
judicial foreclosure or for the exercise of any other remedy under or with
respect to any Credit Document, or for injunction or specific performance, so
long as no judgment in the nature of a deficiency judgment shall be enforced
against any Nonrecourse Person, except as set forth in this Article 10;
(c) limit, reduce, restrict or otherwise affect any right or remedy of any
Secured Party (or any assignee or beneficiary thereof or successor thereto)
with respect to, and each of the Nonrecourse Persons shall remain fully liable
to the extent that it would otherwise be liable for its own actions with
respect to, any fraud, willful misrepresentation, or misappropriation of
Project Revenues, Loan proceeds, Insurance Proceeds, Eminent Domain
Proceeds or any other earnings, revenues, rents, issues, profits or proceeds
from or of the Collateral, that should or would have been paid as provided
herein or paid or delivered to any Secured Party (or any assignee or
beneficiary thereof or successor thereto) towards any payment required under
any other Credit Document; (d) affect or diminish or constitute a waiver,
release or discharge of any specific written obligation, covenant,
representation or agreement in respect of the transactions contemplated by the
Operative Documents made by any of the Nonrecourse Persons or any security
granted by the Nonrecourse Persons in support of the obligations of such
Persons under any Collateral Document (or as security for the obligations of
Borrower), including Pledgor’s obligations, covenants, representations and
agreements under the Pledge Agreement; and (e) limit the liability of any
Person who is a party to any Project Document or has issued any certificate or
other statement in connection therewith with respect to such liability as may
arise solely by reason of the terms and conditions of such Project Document
(but subject to any limitation of liability in such Project Document),
certificate or statement relating solely to such liability of such Person as
may arise under such referenced agreement or instrument.  The limitations on recourse set forth in this
Article 10 shall survive the termination of this Agreement, the
termination of all Commitments and the payment and performance in full of the
Obligations.

 

88

 

ARTICLE 11

AGENTS; SUBSTITUTION

 

11.1                        APPOINTMENT
AND AUTHORITY

 

11.1.1              Each of the
Secured Parties hereby irrevocably appoints The Royal Bank of Scotland plc to
act on its behalf as Administrative Agent hereunder and under the other Credit
Documents and hereby irrevocably appoints The Royal Bank of Scotland plc to act
on its behalf as Collateral Agent hereunder and under the other Credit
Documents for purposes of acquiring, holding and enforcing any and all Liens on
Collateral granted by any of the Credit Parties to secure any of the
Obligations and authorizes Administrative Agent and Collateral Agent to take
such actions on its behalf and to exercise such powers as are delegated to
Administrative Agent or Collateral Agent, as the case may be, by the terms
hereof or thereof, together with such actions and powers as are reasonably
incidental thereto.

 

11.1.2              Each of
Administrative Agent and Collateral Agent is hereby authorized by the Secured
Parties to execute, deliver and perform each of the Credit Documents to which
Administrative Agent or Collateral Agent (as the case may be) is or is intended
to be a party, and each Lender agrees to be bound by all of the agreements of
Administrative Agent and Collateral Agent contained in the Credit Documents.  Each of Administrative Agent and Collateral
Agent is further authorized by the Secured Parties to enter into agreements
supplemental hereto for the purpose of curing any formal defect, inconsistency,
omission or ambiguity in any Credit Document to which it is a party.

 

11.1.3              Each of the
Secured Parties hereby irrevocably appoints RBS Securities Inc. to act on its
behalf as Lead Arranger and Bookrunner hereunder and under the other Credit
Documents by the terms hereof or thereof, together with such actions and powers
as are reasonably incidental thereto.

 

11.1.4              The provisions
of this Article are solely for the benefit of the Secured Parties, and Borrower shall not have rights as a
third party beneficiary of any of such provisions.

 

11.2                        RIGHTS
AS A LENDER.  The Persons
serving as Administrative Agent and Collateral Agent shall have the same rights
and powers in its capacity as a Lender as any other Lender and may exercise the
same as though it were not Administrative Agent or Collateral Agent and the
term “Lender” or “Lenders” shall, unless otherwise expressly indicated or
unless the context otherwise requires, include the Person serving as
Administrative Agent hereunder in its individual capacity.  Such Persons and their respective Affiliates
may accept deposits from, lend money to, act as the financial advisor or in any
other advisory capacity for and generally engage in any kind of business with
Borrower or any Affiliate thereof as if such Person were not Administrative
Agent or Collateral Agent and without any duty to account therefor to the
Lenders.

 

11.3                        EXCULPATORY
PROVISIONS

 

11.3.1              Administrative
Agent and Collateral Agent shall not have any duties or obligations except
those expressly set forth herein and in the other Credit Documents.  Without limiting the generality of the
foregoing, Administrative Agent and Collateral Agent:

 

(a)                                 shall not be
subject to any fiduciary or other implied duties, regardless of whether a
Default or Event of Default has occurred and is continuing;

 

89

 

(b)                                 shall not have
any duty to take any discretionary action or exercise any discretionary powers,
except discretionary rights and powers expressly contemplated hereby or by the
other Credit Documents that Administrative Agent or Collateral Agent is
required to exercise as directed by the Required Lenders (or such other number
or percentage of the Lenders as shall be expressly provided for); provided,
that Administrative Agent and Collateral Agent shall not be required to take any
action that, in its opinion or the opinion of its counsel, may expose
Administrative Agent or Collateral Agent to liability or that is contrary to
any Credit Document or applicable law; and

 

(c)                                  shall not,
except as expressly set forth herein and in the other Credit Documents, have
any duty to disclose, and shall not be liable for the failure to disclose, any
information relating to Borrower or any of its Affiliates that is communicated
to or obtained by the Person serving as Administrative Agent, Collateral Agent
or any of their respective Affiliates in any capacity.

 

11.3.2              Administrative
Agent and Collateral Agent shall not be liable for any action taken or not
taken by it (a) with the consent or at the request of the Required Lenders
(or such other number or percentage of the Lenders as shall be necessary, or as
Administrative Agent or Collateral Agent, as the case may be, shall believe in
good faith shall be necessary, under the circumstances) or (b) in the
absence of its own gross negligence or willful misconduct as determined by the
non-appealable judgment of a court of competent jurisdiction.  Administrative Agent and Collateral Agent
shall be deemed not to have knowledge of any Default, Event of Default or Material
Adverse Effect unless and until notice describing such is given to
Administrative Agent or Collateral Agent, as the case may be, by Borrower or a
Lender.

 

11.3.3              Administrative
Agent and Collateral Agent shall not be responsible for or have any duty to
ascertain or inquire into (a) any statement, warranty or representation
made in or in connection with any Credit Document, (b) the contents of any
certificate, report or other document delivered hereunder or thereunder or in
connection herewith or therewith, (c) the performance or observance of any
of the covenants, agreements or other terms or conditions set forth herein or
therein or the occurrence of any Default or Event of Default, (d) the
validity, enforceability, effectiveness or genuineness of any Credit Document
or any other agreement, instrument or document, or the creation, perfection or
priority of any Lien purported to be created by the Collateral Documents,
(e) the value or the sufficiency of any Collateral, or (f) the
satisfaction of any condition set forth in Article 3 or elsewhere herein,
other than to confirm receipt of items expressly required to be delivered to
Administrative Agent or Collateral Agent, as the case may be.

 

11.4                        RELIANCE.  Administrative Agent and Collateral Agent
shall be entitled to rely upon, and shall not incur any liability for relying
upon, any notice, request, certificate, consent, statement, instrument,
document or other writing (including any electronic message, Internet or
intranet website posting or other distribution) believed by it to be genuine and
to have been signed, sent or otherwise authenticated by the proper Person.  Administrative Agent and Collateral Agent
also may rely upon any statement made to it orally or by telephone and believed
by it to have been made by the proper Person, and shall not incur any liability
for relying thereon.  In determining
compliance with any condition hereunder to the making of a Loan that by its
terms must be fulfilled to the satisfaction of a Lender, Administrative Agent and
Collateral 

 

90

 

Agent may presume that such condition is
satisfactory to such Lender unless Administrative Agent or Collateral Agent, as
the case may be, shall have received notice to the contrary from such Lender
prior to the making of such Loan. 
Administrative Agent may consult with legal counsel (who may be counsel
for Borrower), independent accountants and other experts selected by it, and
shall not be liable for any action taken or not taken by it in accordance with
the advice of any such counsel, accountants or experts.

 

11.5                        DELEGATION
OF DUTIES. 
Administrative Agent and Collateral Agent may perform any and all of
their respective duties and exercise their respective rights and powers under
the Credit Documents by or through Collateral Agent or Administrative Agent,
respectively, or any one or more sub-agents appointed by them, with or without
a written agency appointment. 
Administrative Agent and Collateral Agent and any such sub-agent may
perform any and all of its duties and exercise its rights and powers by or
through their respective Affiliates.  The
exculpatory and indemnification provisions of this Agreement shall apply to any
such sub-agent and to the Affiliates of Administrative Agent and Collateral
Agent and any such sub-agent, and shall apply to their respective activities in
connection with the syndication of the credit facility provided for herein as
well as activities as Administrative Agent and Collateral Agent.

 

11.6                        RESIGNATION.  Either Administrative Agent or Collateral Agent
may at any time give notice of its resignation to the Secured Parties and
Borrower.  Upon receipt of any such
notice of resignation, the Required Lenders shall have the right, in
consultation with Borrower so long as no Event of Default has occurred and is
continuing, to appoint a successor, which shall be a bank with an office in the
United States, or an Affiliate of any such bank with an office in the United
States.  If no such successor shall have
been so appointed by the Required Lenders and shall have accepted such
appointment within 30 days after the retiring Administrative Agent or
Collateral Agent gives notice of its resignation, then the retiring
Administrative Agent or Collateral Agent, as the case may be, may on behalf of
the Secured Parties, appoint a successor Administrative Agent or Collateral
Agent, as the case may be, meeting the qualifications set forth above; provided,
that if Administrative Agent or Collateral Agent shall notify Borrower and the
Secured Parties that no qualifying Person has accepted such appointment, then
such resignation shall nonetheless become effective in accordance with such
notice and (a) the retiring Administrative Agent or Collateral Agent, as
the case may be, shall be discharged from its duties and obligations under the
Credit Documents (except that in the
case of any collateral security held by Collateral Agent, the retiring
Collateral Agent shall continue to hold such collateral security until such
time as a successor Collateral Agent is appointed) and (b) all
payments, communications and determinations provided to be made by, to or
through Administrative Agent or Collateral Agent, as the case may be, shall
instead be made by or to each Lender directly, until such time as the Required
Lenders appoint a successor Administrative Agent or Collateral Agent as
provided for above in this Section.  Upon
the acceptance of a successor’s appointment as Administrative Agent or
Collateral Agent hereunder, such successor shall succeed to and become vested
with all of the rights, powers, privileges and duties of the retiring (or
retired) Administrative Agent or Collateral Agent, and the retiring
Administrative Agent or Collateral Agent shall be discharged from all of its
duties and obligations hereunder or under the other Credit Documents (if not
already discharged therefrom as provided above in this Section).  The fees payable by Borrower to a successor
Administrative Agent or Collateral Agent shall be the same as those payable to
its predecessor unless otherwise agreed between Borrower 

 

91

 

and such successor. 
After the retiring Administrative Agent’s or Collateral Agent’s
resignation under the Credit Documents, the provisions of the exculpatory and
indemnification provisions of this Agreement shall continue in effect for the
benefit of such retiring Administrative Agent or Collateral Agent, its
sub-agents and their respective Affiliates in respect of any actions taken or
omitted to be taken by any of them while the retiring Administrative Agent or
Collateral Agent was acting as such.

 

11.7                        NON-RELIANCE.  Each Lender acknowledges that it has,
independently and without reliance upon the Administrative Agent, Collateral
Agent, Lead Arranger or Lender or any of their Affiliates and based on such
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Agreement.  Each Lender also acknowledges that it will,
independently and without reliance upon Administrative Agent, Collateral Agent,
Lead Arranger or any Lender or any of their Affiliates and based on such
documents and information as it shall from time to time deem appropriate,
continue to make its own decisions in taking or not taking action under or
based upon any Credit Document or any related agreement or any document
furnished hereunder or thereunder.

 

11.8                        ADMINISTRATIVE
AGENT MAY FILE PROOFS OF CLAIM

 

11.8.1              In case of the
pendency of any proceeding under any Bankruptcy Law or any other judicial
proceeding relative to any Credit Party, Administrative Agent (irrespective of
whether the principal of any Loan shall then be due and payable as herein
expressed or by declaration or otherwise and irrespective of whether
Administrative Agent shall have made any demand on Borrower) shall be entitled
and empowered, by intervention in such proceeding or otherwise:

 

(a)                                 to file and
prove a claim for the whole amount of the principal and interest owing and
unpaid in respect of the Loans and all other Obligations that are owing and unpaid
and to file such other documents as may be necessary or advisable in order to
have the claims of the Secured Parties (including any claim for the reasonable
compensation, expenses, disbursements and advances of the Secured Parties and
their respective agents and counsel and all other amounts due the Secured
Parties hereunder) allowed in such judicial proceeding; and

 

(b)                                 to collect and
receive any monies or other property payable or deliverable on any such claims
and to distribute the same;

 

and
any custodian, receiver, assignee, trustee, liquidator, sequestrator or other
similar official in any such judicial proceeding is hereby authorized by each
Secured Party to make such payments to Administrative Agent and, if
Administrative Agent shall consent to the making of such payments directly to
the Secured Parties, to pay to Administrative Agent any amount due for the
reasonable compensation, expenses, disbursements and advances of Administrative
Agent and its agents and counsel, and any other amounts due Administrative
Agent hereunder.

 

11.8.2              Nothing
contained herein shall be deemed to authorize Administrative Agent to authorize
or consent to or accept or adopt on behalf of any Secured Party any plan of
reorganization, arrangement, adjustment or composition affecting the
Obligations or the rights of

 

92

 

 

any Secured Party to authorize Administrative
Agent to vote in respect of the claim of any Secured Party or in any such
proceeding.

 

11.9                        COLLATERAL
MATTERS.  The Secured
Parties irrevocably authorize Collateral Agent, at its option and in its
discretion, to release any Lien on any property granted to or held by
Collateral Agent under any Collateral Document (a) upon termination of the
Commitments and payment in full of all Obligations (other than contingent
indemnification obligations), (b) that is sold or to be sold as part of or
in connection with any sale permitted hereunder or under any Credit Document,
or (c) if approved, authorized or ratified in accordance herewith.  In addition, the Secured Parties irrevocably
authorize Collateral Agent to release any Lien upon the proceeds of the Grant
if the Tax Equity Contribution Conditions have been satisfied.

 

11.10                 OTHER
HOLDERS OF TITLES.  None of the
Lead Arranger, the Bookrunner, the Joint Lead Arrangers, the Joint Bookrunners
and the Co-Syndication Agents shall have any right, power, obligation,
liability, responsibility or duty under this Agreement.  Without limiting the foregoing, none of the
Lead Arranger, Bookrunner, Joint Lead Arrangers, the Joint Bookrunners and the
Co-Syndication Agents shall have or be deemed to have a fiduciary relationship
with any Secured Party.  Each Secured
Party hereby makes the same acknowledgments with respect to the Lead Arranger
and the Bookrunner as it makes with respect to Administrative Agent or
Collateral Agent in this Article 11. 
Notwithstanding the foregoing, the parties hereto acknowledge that the
Lead Arranger, Bookrunner, Joint Lead Arrangers, the Joint Bookrunners and the
Co-Syndication Agents hold such titles in name only, and that such titles
confer no additional rights or obligations relative to those conferred on any
Secured Party hereunder.

 

11.11                 INDEMNIFICATION.  Without limiting the Obligations of Borrower,
each Lender agrees to indemnify the Lead Arranger, Joint Lead Arrangers,
Collateral Agent and Administrative Agent and their respective officers,
directors, shareholders, controlling Persons, employees, agents and servants,
ratably in accordance with their Proportionate Shares for any and all
liabilities, obligations, losses, damages, penalties, actions, judgments,
suits, costs, expenses or disbursements of any kind or nature whatsoever which
may at any time be imposed on, incurred by or asserted against Administrative
Agent, the Lead Arranger, Joint Lead Arrangers, Collateral Agent or such Person
in any way relating to or arising out of this Agreement or any documents
contemplated by or referred to herein or therein or the transactions
contemplated hereby or thereby or the enforcement of any of the terms hereof or
thereof or of any such other documents in respect of actions taken by such
Persons in their respective capacities as Lead Arranger, Joint Lead Arrangers,
Collateral Agent and Administrative Agent or officers, directors, shareholders,
controlling Persons, employees, agents and servants thereof (to the extent
Borrower has not paid any such amounts pursuant to Section 5.10); provided,
however, that no Lender shall be liable for any of the foregoing to the
extent they arise from Administrative Agent’s, the Lead Arranger’s, such Joint
Lead Arranger’s, Collateral Agent’s or any such Person’s gross negligence or
willful misconduct as proven by the non-appealable judgment of a court of
competent jurisdiction.  Administrative
Agent or any such Person shall be fully justified in refusing to take or to
continue to take any action under any Credit Document unless it shall first be
indemnified to its satisfaction by the Lenders against any and all liability
and expense which may be incurred by it by reason of taking or continuing to
take any such 

 

93

 

action.  Without limitation of the foregoing, each
Lender agrees to reimburse Administrative Agent, the Lead Arranger, Joint Lead
Arrangers, Collateral Agent or any such Person promptly upon demand for its
Proportionate Share of any out-of-pocket expenses (including counsel fees)
incurred by Administrative Agent, the Lead Arranger, Joint Lead Arrangers,
Collateral Agent or any such Person in connection with the preparation,
execution, administration or enforcement of, or legal advice in respect of
rights or responsibilities under, the Operative Documents, to the extent that
Administrative Agent, the Lead Arranger, Joint Lead Arrangers, Collateral Agent
or any such Person is not reimbursed for such expenses by Borrower.  The agreements in this Section shall survive
the satisfaction or discharge of Borrower’s Obligations under the Credit
Documents.

 

11.12                 WITHHOLDING
TAX.  If the forms or other
documentation required by Section 2.4.6 are not delivered to
Administrative Agent, then Administrative Agent may withhold from any interest
payment to any Lender not providing such forms or other documentation, an
amount equivalent to the applicable withholding tax.

 

11.12.1                                     If the Internal
Revenue Service or any authority of the United States or other jurisdiction
asserts a claim that Administrative Agent did not properly withhold tax from
amounts paid to or for the account of any Lender (because the appropriate form
was not delivered, was not properly executed, or because such Lender failed to
notify Administrative Agent of a change in circumstances which rendered the
exemption from, or reduction of, withholding tax ineffective, or for any other
reason other than the gross negligence or willful misconduct of Administrative
Agent), then such Lender shall indemnify Administrative Agent fully for all
amounts paid, directly or indirectly, by Administrative Agent as tax or
otherwise, including penalties and interest, together with all reasonable
expenses incurred, including reasonable legal expenses, allocated reasonable
staff costs, and any reasonable out of pocket expenses.  Borrower shall not be responsible for any
amounts paid or required to be paid by a Lender under this
Section 11.12.1.

 

11.12.2                               If any Lender
sells, assigns, grants participation in, or otherwise transfers its rights
under this Agreement, the purchaser, assignee, participant or transferee, as
applicable, shall comply and be bound by the terms of Section 2.4.6 and
this Section 11.12 as though it were such Lender.

 

11.13                 GENERAL
PROVISIONS AS TO PAYMENTS.  Administrative Agent shall promptly
distribute to each Lender its pro rata share
of each payment of principal and interest payable to the Lenders on the Loans
and of fees hereunder received by Administrative Agent for the account of the
Lenders and of any other amounts owing under the Loans.  The payments made for the account of each
Lender shall be made, and distributed to it, at its Lending Office for the
account of (a) its domestic lending office in the case of payments of principal
of, and interest on, its Base Rate Loans, (b) its domestic or foreign lending
office, as each Lender may designate in writing to Administrative Agent, in the
case of Eurodollar Loans, and (c) its domestic lending office, or such other lending
office as it may designate for the purpose from time to time, in the case of
payments of fees and other amounts payable hereunder.  Lenders shall have the right to alter their
Lending Offices upon five Business Days prior notice to Administrative Agent
and Borrower.

 

94

 

11.14                 SUBSTITUTION
OF LENDER.  Should any
Lender fail to make a Loan (a “Non-Advancing Lender”), Administrative
Agent shall (a) in its sole discretion fund the Loan on behalf of the Non-Advancing
Lender or (b) if requested by Borrower, cooperate and consult with
Borrower or any other Lender to find another Person that shall be acceptable to
Administrative Agent and that shall be willing to assume the Non-Advancing
Lender’s obligations under this Agreement (including the obligation to make the
Loan which the Non-Advancing Lender failed to make but without assuming any
liability for damages for failing to have made such Loan or any previously
required Loan).  Subject to the
provisions of the next following sentence, such Person shall be substituted for
the Non-Advancing Lender hereunder upon execution and delivery to
Administrative Agent of an agreement acceptable to Administrative Agent by such
Person assuming the Non-Advancing Lender’s obligations (including its Loan
Commitments) under this Agreement, and all interest and fees which would
otherwise have been payable to the Non-Advancing Lender shall thereafter be
payable to such Person.  Nothing in (and
no action taken pursuant to) this Section 11.14 shall relieve the
Non-Advancing Lender from any liability it might have to Borrower or to the
other Lenders as a result of its failure to make any Loan.

 

11.15                 JOINDER
BY SECURED PARTIES.  Each Secured
Party which is not an Agent or Lender shall, by execution of a Credit Agreement
Joinder in the form of Exhibit N, agree to the terms of, benefit
from, and be bound by, Article 7, Article 11, Sections 2.5.2,
13.1 and 13.20, the defined terms referred to in such Article and Sections, and
such other provisions of the Credit Documents that bind and benefit the Secured
Parties.

 

11.16                 DELIVERY
OF COPIES TO LENDERS.  If
requested, Administrative Agent shall promptly deliver or make available to
each Lender copies of any financial statements, notices, reports, plans,
budgets or other documents received by Administrative Agent from or on behalf
of Borrower pursuant to Section 5.4 (Notices),
Section 5.5 (Financial Reports),
Section 5.8 (Reports), Section 5.13 (Completion; Commercial Operation) and Section 5.14 (Operation and Maintenance of Project; Operating Budget), as
applicable, and such other documents and other information available to
Administrative Agent as may be reasonably requested by any Secured Party.

 

ARTICLE 12

INDEPENDENT CONSULTANTS

 

12.1                        REMOVAL
AND FEES. 
Administrative Agent, in consultation with the Required Lenders, may
remove from time to time, any one or more of the Independent Consultants and,
after consulting with Borrower as to an appropriate Person, appoint
replacements as Administrative Agent, in consultation with the Required
Lenders, may choose.  Notice of any
replacement Independent Consultant shall be given by Administrative Agent to
Borrower, the Lenders and to the Independent Consultant being replaced.  All reasonable fees and expenses of the
Independent Consultants (whether the original ones or replacements) shall be
paid by Borrower pursuant to agreements reasonably acceptable to Borrower; provided,
that no such acceptance shall be required at any time an Event of Default shall
have occurred and be continuing.

 

12.2                        DUTIES.  Each Independent Consultant shall be
contractually obligated to (a) on or before the Closing Date, the Lead
Arranger and (b) thereafter, Administrative Agent to 

 

95

 

carry out the activities
required of it in this Agreement and as otherwise requested by the Lead
Arranger or Administrative Agent (as the case may be) and shall be responsible
solely to the Lead Arranger or Administrative Agent (as the case may be).  Borrower acknowledges that it will not have
any cause of action or claim against any Independent Consultant resulting from
any decision made or not made, any action taken or not taken or any advice
given by such Independent Consultant in the due performance in good faith of
its duties to the Lead Arranger or Administrative Agent (as the case may be).

 

12.3                        INDEPENDENT
CONSULTANTS’ CERTIFICATES.

 

(a)                                  Until the
receipt by Administrative Agent of certificates satisfactory to Administrative
Agent from each Independent Consultant whom Administrative Agent considers
necessary or appropriate certifying Completion or Final Completion, Borrower
shall provide such documents and information to the Independent Consultants as
any of the Independent Consultants may reasonably consider necessary in order
for the Independent Consultants to deliver to Administrative Agent the
following certificates:

 

(i)                                     certificates of
the Insurance Consultant and Independent Engineer delivered on and dated as of
the Closing Date as described in Sections 3.1.9 and 3.1.11, respectively,
and containing the matters set out therein;

 

(ii)                                  after the
Closing Date, all certificates to be delivered thereafter pursuant to this
Agreement; and

 

(iii)                               in the case of
the Independent Engineer, monthly after the Closing Date, a report and status
of the progress of the Project to that date, a detailed assessment of Project
Costs to Final Completion and such other information and certification as
Administrative Agent may reasonably require from time to time.

 

(b)                                 Following
Completion, Borrower shall provide such documents and information to the
Independent Consultants as they may reasonably consider necessary in order for
the Independent Consultants to deliver annually to Administrative Agent a
certificate setting forth a full report on the status of the Project and such
other information and certification as Administrative Agent may reasonably
require from time to time.

 

12.4                        CERTIFICATION
OF DATES. 
Administrative Agent will request that the Independent Consultants act
diligently in the issuance of all certificates required to be delivered by the
Independent Consultants hereunder, if their issuance is appropriate.  Borrower shall provide the Independent
Consultants with reasonable notice of the expected occurrence of any such dates
or events.

 

ARTICLE 13

MISCELLANEOUS

 

13.1                        NOTICES;
SIGNATURES

 

13.1.1              Notice
Addresses.  Any
communications between the parties hereto or notices provided herein to be
given may be given to the following addresses:

 

96

 

	
  If to Administrative Agent or Collateral Agent:

  	
   

  	
  The Royal Bank of Scotland plc

  600 Washington Boulevard

  Stamford, CT 06901

  Attn: Rana Khan

  Fax:  212 401-1494

  Phone: 203 897-4227

  Email: Agencyops@rbs.com

  
	
  With a copy to:

  	
   

  	
  The Royal Bank of Scotland plc

  600 Washington Boulevard

  Stamford, CT 06901

  Attn: Simon Mockford

  Fax: 203 873-3365

  Email: simon.mockford@rbs.com

  
	
  If to Borrower:

  	
   

  	
  Milford Wind Corridor Phase II, LLC

  179 Lincoln Street, Suite 500

  Boston, MA 02111

  Attn: General Counsel

  Fax:  617-960-2889

  Tel: 617-960-2888

  Email: 
  general.counsel@firstwind.com

  
	
  With a copy to:

  	
   

  	
  First Wind Energy, LLC

  179 Lincoln Street, Suite 500

  Boston, MA 02111

  Attn: General Counsel

  Fax:  617-960-2889

  

 

For the purposes hereof, the address of each party
hereto shall be (i) for Borrower and Administrative Agent, the address
specified in this Section and (ii) for each Lender, as set forth in its
Administrative Questionnaire; provided, that any party shall have the
right to change its address for notice hereunder to any other location within
the continental United States by giving of 30 days’ notice to the other
parties in the manner set forth above.

 

13.1.2              Means
of Transmittal.  Unless
otherwise specifically provided herein, any notice or other communication
herein required or permitted to be given shall be in writing and shall be
considered as properly given (a) if delivered in person, (b) if sent
by overnight courier service (including Federal Express, UPS and other similar
overnight delivery services), (c) if mailed by first class United States
Mail, postage prepaid, registered or certified with return receipt requested,
(d) if sent by facsimile, with the original sent by other means set forth
in this Section 13.1.2, or (e) other electronic means complying with
Section 13.1.4.

 

13.1.3              Effectiveness
of Notices.  Notices
delivered in person or by overnight courier service, or mailed by registered or
certified mail, or sent by telecopier shall be deemed to have been given when
received (except that, if not received during normal business hours for the
recipient, shall be deemed to have been given at the opening of business on the
next business day for the recipient). 
Notices delivered through electronic communications to the extent
provided in Section 13.1.4, shall be effective as provided in said
section.

 

97

 

13.1.4              Electronic
Communications.

 

(a)                                  Notices and
other communications hereunder may be delivered or furnished by electronic
communication (including email and Internet or intranet websites) pursuant to
procedures approved by Administrative Agent; provided, that the
foregoing shall not apply to notices pursuant to Article 2 if the party to
receive the notice has notified Administrative Agent that it is incapable of
receiving notices under such Article by electronic communication.  The Secured Parties and Borrower may, in
their discretion, agree to accept notices and other communications to it
hereunder by electronic communications pursuant to procedures approved by them,
respectively; provided, that approval of such procedures may be limited
to particular notices or communications.

 

(b)                                 Unless
Administrative Agent otherwise prescribes, (i) notices and other
communications sent to an email address shall be deemed received upon the
sender’s receipt of an acknowledgement from the intended recipient (such as by
the “return receipt requested” function, as available, return email or other
written acknowledgement); provided, that if such notice or other
communication is not sent during the normal business hours of the recipient,
such notice or communication shall be deemed to have been sent at the opening
of business on the next business day for the recipient, and (ii) notices
or communications posted to an Internet or intranet website shall be deemed
received upon the deemed receipt by the intended recipient at its email address
as described in the foregoing clause (i) of notification that such notice
or communication is available and identifying the website address therefor.

 

13.2                        ADDITIONAL
SECURITY; RIGHT TO SET-OFF.

 

13.2.1              Any deposits (general or
special, time or demand, provisional or final, including indebtedness evidenced
by certificates of deposit, whether matured or unmatured, but not including
trust accounts) or other sums at any time held or owing by any Secured Party or
any Affiliate thereof to or for the credit or the account of Borrower and any
Project Revenues, securities or other property of Borrower in the possession of
any Secured Party may at all times be treated as collateral security for the
payment of the Loans and all other obligations of Borrower to the Secured
Parties under the Credit Documents, and Borrower has pledged and granted to
Collateral Agent a security interest in and to all such deposits, sums,
securities or other property pursuant to the Collateral Documents.

 

13.2.2              In addition to any rights
and remedies (including other rights of set-off) now or hereafter granted to
the Secured Parties under applicable law and not by way of limitation of any
such rights, upon the occurrence and during the continuation of any Event of
Default and with the prior consent of Collateral Agent, subject to
Section 2.5.2, regardless of the adequacy of any other collateral, each
Secured Party (only with the prior consent of the Administrative Agent) is
hereby authorized by Borrower at any time or from time to time, without notice
to Borrower or to any other Person, any such notice being hereby expressly
waived, to set off and to appropriate and to apply any and all deposits and
sums referred to in the previous paragraph against and on account of the
Obligations to such Secured Party or to any other Secured Party, including all
claims of any nature or description arising out of or connected with any Credit
Document, irrespective of whether or not (a) such Secured Party shall have
made any demand hereunder or (b) the principal of or the interest on the
Loans or any other amounts due hereunder 

 

98

 

shall have become due and payable and
although said obligations and liabilities, or any of them, may be contingent or
unmatured.  Each Secured Party agrees to
notify Borrower promptly after any such set-off and application; provided,
that the failure to give such notice shall not affect the validity of such
set-off or application or the rights of such Secured Party under this
Section.  The rights of each Secured
Party under this Section are in addition to other rights and remedies
(including other rights of set-off) which such Secured Party may have.

 

13.3                        DELAY
AND WAIVER.

 

13.3.1              No delay, failure or
omission to exercise, and no course of dealing with respect to, any right,
power, privilege or remedy accruing to the Secured Parties upon the occurrence
of any Default, Event of Default, Material Adverse Effect or any breach or
default of any Credit Party or unsatisfied condition precedent under any Credit
Document shall impair any such right, power, privilege or remedy of the Secured
Parties, nor shall it be construed to be a waiver of any such breach or default
or unsatisfied condition precedent, or an acquiescence therein, or of any
similar breach or default or unsatisfied condition precedent thereafter
occurring; nor shall any single or partial exercise of any such right, power or
remedy, or any abandonment or discontinuance of steps to enforce such a right,
power or remedy, preclude any other or further exercise thereof or the exercise
of any other right or power.

 

13.3.2              Upon effectiveness of any
waiver of a Default or Event of Default, the parties shall be restored to their
former position and rights under the Credit Documents, and such Default or
Event of Default shall be deemed to be cured and not continuing; provided,
however, that any waiver of any single Default, Event of Default,
Material Adverse Effect or other breach or default or unsatisfied condition
precedent shall not be deemed a waiver of any other Default, Event of Default,
Material Adverse Effect or other breach or default or unsatisfied condition
precedent theretofore or thereafter occurring. 
Any waiver, permit, consent or approval of any kind or character on the
part of any Secured Party of any Default, Event of Default, Material Adverse
Effect or other breach or default or unsatisfied condition precedent under any
Credit Document, or any waiver on the part of any Secured Party of any
provision or condition of any Credit Document, must be in writing in accordance
with Section 13.1.2 and shall be effective only to the extent in such writing
specifically set forth and only in the specific instance and for the purpose
for which given.  All remedies, either
under any Credit Document or by law or otherwise afforded to the Secured
Parties, shall be cumulative and not alternative.

 

13.3.3              Without limiting the
generality of the foregoing, the making of a Loan shall not be construed as a
waiver of any Default or Event of Default, regardless of whether Administrative
Agent or any Lender may have had notice or knowledge of such Default or Event
of Default at the time.

 

13.4                        COSTS,
EXPENSES AND ATTORNEYS’ FEES.  Whether or not the transactions contemplated
hereby shall be consummated, Borrower agrees to promptly pay or reimburse each
of the Secured Parties, as applicable, promptly upon demand:

 

(a)                                  for (i) all
of actual/out-of-pocket and other reasonable costs and expenses in connection
with the preparation, negotiation and execution of this Agreement and the
documents contemplated hereby, any consents, amendments, waivers or other
modifications 

 

99

 

hereof or thereof, and consummation and
administration of the transactions contemplated hereby or thereby, including
all reasonable fees, charges, expenses and disbursements of Latham &
Watkins LLP as counsel to Administrative Agent, together with other legal
counsel retained by Administrative Agent in the Project Jurisdiction, provided,
that Borrower shall not be required to pay the fees of the other Lenders’
attorneys; (ii) all costs and expenses of furnishing all opinions by
counsel for Borrower (including any opinions requested by Administrative Agent
or the Lenders as to any legal matters arising hereunder) and of Borrower’s
performance of and compliance with all agreements and conditions on its part to
be performed or complied with under the Credit Documents including with respect
to confirming compliance with environmental, insurance and solvency
requirements; (iii) all costs and expenses incurred in connection with any
filing, recording, registration or perfection of any security interest
contemplated by any Collateral Document or any other document referred to
therein of creating, including filing and recording fees, expenses and taxes,
stamp or documentary taxes, search fees, title insurance premiums, and reasonable
fees, expenses and disbursements of counsel to Collateral Agent and of counsel
providing any opinions that Collateral Agent or the Lenders may request in
respect of the Collateral Documents or the Liens created pursuant thereto in
accordance with this Agreement or the Collateral Documents; (iv) all costs
and expenses (including the reasonable fees, expenses and disbursements of any
Advisors (as defined below) employed or retained by Administrative Agent or its
counsel) of obtaining and reviewing any appraisals provided for under this
Agreement and any environmental audits or reports provided for under this
Agreement; (v) all other reasonable costs and expenses incurred in
connection with the syndication of the Loan Commitments, the Loans or this
Agreement; and (vi) all reasonable costs and expenses, including
reasonable attorneys’ fees and fees, costs and expenses of Advisors, incurred
by Administrative Agent and its counsel relating to efforts to evaluate or
assess any Credit Party, its business or financial condition and protect,
evaluate, assess or dispose of any of the Collateral; and

 

(b)                                 for
(i) all costs and expenses incurred by Administrative Agent or Collateral
Agent, including the fees, charges and disbursements of Advisors, in connection
with any action, suit or other proceeding affecting the Collateral or any part
thereof, in which action, suit or proceeding Administrative Agent or Collateral
Agent is made a party or participates or in which the right to use the
Collateral or any part thereof is threatened, or in which it becomes necessary
in the judgment of Administrative Agent or Collateral Agent to defend or uphold
the Liens granted by the Collateral Documents (including any action, suit or
proceeding to establish or uphold the compliance of the Collateral with any
Legal Requirements); (ii) all costs and expenses incurred by the Lead
Arranger, Administrative Agent, Collateral Agent, or any Lender, including the
fees, charges and disbursements of Advisors and costs of settlement, incurred
in connection with the enforcement or protection of its rights under the Credit
Documents or the Obligations in connection with a Default or Event of Default,
in actions for declaratory relief in any way related to the Credit Documents or
in collecting any sum which becomes due under the Credit Documents (including
in connection with the sale of, collection from, or other realization upon any
of the Collateral); and (iii) all costs and expenses incurred by the Lead
Arranger, Administrative Agent, Collateral Agent, or any Lender, including
fees, charges and disbursements of Advisors, in connection with any refinancing
or restructuring of the credit arrangements provided under this Agreement in
the nature of a “work-out” (whether or not consummated) or related negotiations
pursuant to any insolvency or bankruptcy proceedings, or otherwise relating to
the occurrence of any Default or Event of Default.

 

100

 

For purposes of this Section, “Advisors” shall mean
legal counsel (including local counsel), auditors, accountants, consultants,
appraisers, experts or other advisors.

 

13.5                        ENTIRE
AGREEMENT.  This
Agreement and any agreement, document or instrument attached hereto or
expressly referred to herein integrate all the terms and conditions mentioned
herein or incidental hereto and supersede all oral negotiations and prior
writings in respect to the subject matter hereof.  In the event of any conflict between the
terms, conditions and provisions of this Agreement and any such agreement,
document or instrument, the terms, conditions and provisions of this Agreement
shall prevail.

 

13.6                        GOVERNING
LAW.  THE CREDIT
DOCUMENTS (UNLESS OTHERWISE EXPRESSLY PROVIDED FOR THEREIN), AND THE RIGHTS AND
OBLIGATIONS OF THE PARTIES HEREUNDER AND THEREUNDER, SHALL BE GOVERNED BY, AND
CONSTRUED, INTERPRETED AND ENFORCED IN ACCORDANCE WITH, THE INTERNAL LAW
OF THE STATE OF NEW YORK (INCLUDING
SECTION 5-1401 AND SECTION 5-1402 OF THE GENERAL OBLIGATIONS LAW OF
THE STATE OF NEW YORK), WITHOUT REGARD TO CONFLICTS OF LAWS PRINCIPLES THAT
WOULD REQUIRE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION.

 

13.7                        SEVERABILITY.  Any provision of this Agreement that is
invalid, illegal, prohibited or unenforceable in any respect in any
jurisdiction, shall as to such jurisdiction be ineffective to the extent of
such invalidity, illegality, prohibition or unenforceability without affecting,
invalidating or impairing the validity, legality and enforceability of the
remaining provisions hereof; and any such invalidity, illegality, prohibition
or unenforceability in any jurisdiction shall not affect, invalidate or impair
such provision in any other jurisdiction.

 

13.8                        HEADINGS.  Article, Section and Paragraph headings have
been inserted in this Agreement as a matter of convenience for reference only
and it is agreed that such headings are not a part of this Agreement and shall
not be used in the interpretation of any provision of this Agreement or be
given any substantive effect.

 

13.9                        ACCOUNTING
TERMS.  All accounting terms not
specifically defined herein shall be construed in accordance with GAAP and
practices consistent with those applied in the preparation of the financial
statements submitted by Borrower to Administrative Agent, and all financial
data submitted pursuant to this Agreement shall be prepared in accordance with
such principles and practices.

 

13.10                 ADDITIONAL
FINANCING, ETC.  The parties
hereto acknowledge that as of the Closing Date the Lenders have made no
agreement or commitment to provide any financing except as set forth
herein.  The obligations of the Lenders
hereunder are several and no Lender shall be responsible for the obligations or
Loan Commitments of any other Lender hereunder. 
The amounts payable at any time hereunder to each Lender shall be a
separate and independent debt, and each Lender shall be entitled to protect and
enforce its rights arising out of this Agreement and it shall not be necessary
for any other Lender to be joined as an additional party in any proceeding for
such purpose.

 

101

 

13.11                 NO
PARTNERSHIP, ETC.  The Secured
Parties and Borrower intend that the relationship between them shall be solely
that of creditor and debtor.  Nothing
contained in any of the Credit Documents, and no action taken by the Lenders
pursuant hereto or thereto, shall be deemed or construed to create a
partnership, an association, tenancy-in-common, joint tenancy, joint venture or
co-ownership by or between the Secured Parties and Borrower or any other
Person.  No Secured Party shall be in any
way responsible or liable for the debts, losses, obligations or duties of
Borrower or any other Person with respect to the Project or otherwise.  All obligations to pay real property or other
taxes, assessments, insurance premiums, and all other fees and charges arising
from the ownership, operation or occupancy of the Project (if any) and to
perform all obligations and other agreements and contracts relating to the
Project shall be the sole responsibility of Borrower.

 

13.12                 TRUST
DEED/COLLATERAL DOCUMENTS.  The Obligations are secured in part by the
Trust Deed encumbering certain properties in Beaver and Millard Counties,
Utah.  Reference is hereby made to the
Trust Deed and the other Collateral Documents for the provisions, among others,
relating to the nature and extent of the security provided thereunder, the
rights, duties and obligations of Borrower and the rights of the Secured
Parties with respect to such security.

 

13.13                 LIMITATION
ON LIABILITY.  No claim shall
be made by any party or any of their respective Affiliates, directors,
employees, attorneys or agents for any loss of profits, business or anticipated
savings, special or punitive damages or any indirect or consequential loss
whatsoever in respect of any breach or wrongful conduct (whether or not the
claim therefor is based on contract, tort or duty imposed by law), in
connection with, arising out of or in any way related to the transactions
contemplated by this Agreement or the other Operative Documents or any act or
omission or event occurring in connection therewith, and each party hereby
waives, releases and agrees not to sue upon any such claim for any such
damages, whether or not accrued and whether or not known or suspected to exist
in its favor.  No party or any of their
respective Affiliates, directors, employees, attorneys or agents shall be
liable for any damages arising from the use by unintended recipients of any
information or other materials distributed by it through telecommunications, electronic
or other information transmission systems in connection with the Credit
Documents or the transactions contemplated thereby, except such damages that
result from the gross negligence or willful misconduct of such person as
determined by the non-appealable judgment of a court of competent jurisdiction.

 

13.14                 WAIVER
OF JURY TRIAL.  EACH OF THE SECURED PARTIES AND BORROWER HEREBY KNOWINGLY, VOLUNTARILY,
AND INTENTIONALLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE
LAW,  ANY RIGHTS IT MAY HAVE TO A TRIAL
BY JURY IN RESPECT OF ANY LITIGATION BASED HEREON, OR ARISING OUT OF, UNDER, OR
IN CONNECTION WITH, THIS AGREEMENT, ANY OTHER CREDIT DOCUMENT OR ANY
TRANSACTIONS CONTEMPLATED HEREBY OR THEREBY, OR ANY COURSE OF CONDUCT, COURSE
OF DEALING, STATEMENTS (WHETHER VERBAL OR WRITTEN), OR ACTIONS OF SUCH SECURED
PARTIES, BORROWER, OR THE
LENDER/BORROWER RELATIONSHIP THAT IS BEING ESTABLISHED.  THIS PROVISION IS A
MATERIAL INDUCEMENT FOR EACH PARTY TO ENTER INTO THIS AGREEMENT.

 

102

 

The
scope of this waiver is intended to be all-encompassing of any and all disputes
that may be filed in any court and that relate to the subject matter of this
transaction, including contract claims, tort claims, breach of duty claims and
all other common law and statutory claims. 
Each party hereto acknowledges that (i) this waiver is a material
inducement to enter into a business relationship, (ii) it has already
relied on this waiver in entering into this Agreement, and (iii) it will
continue to rely on this waiver in their related future dealings.  Each party hereto further warrants and
represents that it has reviewed this waiver with its legal counsel and that it
knowingly and voluntarily waives its jury trial rights following consultation
with legal counsel.  In the event of
litigation, this Agreement may be filed as a written consent to a trial by the
court.  THIS
WAIVER IS IRREVOCABLE, MEANING THAT IT MAY NOT BE MODIFIED EITHER ORALLY
OR IN WRITING (OTHER THAN BY A MUTUAL WRITTEN WAIVER SPECIFICALLY REFERRING TO
THIS SECTION 13.14 AND EXECUTED BY EACH OF THE PARTIES HERETO), AND THIS
WAIVER SHALL APPLY TO ANY SUBSEQUENT AMENDMENTS, RENEWALS, SUPPLEMENTS OR
MODIFICATIONS TO THIS AGREEMENT OR ANY OF THE OTHER CREDIT DOCUMENTS OR TO ANY
OTHER DOCUMENTS OR AGREEMENTS RELATING TO THE LOANS MADE HEREUNDER.

 

13.15                 CONSENT
TO JURISDICTION.  Each Secured
Party and Borrower, for itself and in connection with its properties, hereby
irrevocably and unconditionally, to the fullest extent it may legally and
effectively do so:

 

(a)                                  agrees that (i) any
legal action or proceeding by or against Borrower or with respect to or arising
out of any Credit Document, or for recognition or enforcement of any related
judgment, may be brought in or removed to the courts of the State of New York,
in and for the County of New York, or of the United States of America for the
Southern District of New York, in any appellate court from any thereof, and
(ii) a final judgment in any such action or proceeding shall be conclusive
and may be enforced in other jurisdictions by suit on the judgment or in any
other manner provided by law.  By
execution and delivery of this Agreement, the parties hereto accept, for
themselves and in respect of their property, generally and unconditionally, the
nonexclusive jurisdiction of the aforesaid courts.  Nothing herein shall affect the right of
Administrative Agent to bring any legal action or proceeding against Borrower
with respect to or arising out of any Credit Document, with respect to judicial
or non-judicial foreclosure of the Trust Deed, in the State of Utah.  The parties further agree that the aforesaid
courts of the State of New York and of the United States of America shall have
exclusive jurisdiction with respect to any claim or counterclaim of Borrower
based upon the assertion that the rate of interest charged by the Lenders on or
under the Credit Documents is usurious;

 

(b)                                 (i) waives, any
objection which it may now or hereafter have to the laying of venue of any
suit, action or proceeding under or in connection with any or all of the
Project, or any Credit Document in any court referred to in paragraph (a) of
this Section, and (ii) waives any right to stay or dismiss any such action
or proceeding brought before the foregoing courts on the basis of forum non-conveniens;

 

(c)                                  agrees that the provisions
of this Section 13.15 relating to jurisdiction and venue shall be binding
and enforceable to the fullest extent permissible under New York General
Obligations Law Section 5-1402 or otherwise; and

 

103

 

(d)                                 consents and agrees that in
the event that any claim, suit, action, arbitration or mediation proceedings or
any other proceedings arise under, or in connection with, any Credit Document
in any courts or other forum other than the courts described in paragraph (a) above,
Administrative Agent shall have full power and authority to remove such claim,
suit, action, proceedings, arbitration or mediation to one of the courts
described in paragraph (a) or to consolidate such claims, suits,
actions, proceedings, arbitration or mediation in one of such courts.  Each party hereto irrevocably designates,
appoints and empowers Administrative Agent hereby as its permitted designee,
appointee and agent to remove or consolidate such claims, suits, actions or
proceedings and waives, to the fullest extent permitted by law, any objection
to any such removal or consolidation.

 

13.16                 EFFECTIVENESS.  This Agreement shall become effective as of
the effective date hereof when it shall have been executed by all parties
hereto.

 

13.17                 SUCCESSORS
AND ASSIGNS

 

13.17.1                               Successors
and Assigns Generally.  The
provisions of this Agreement shall be binding upon and inure to the benefit of
the parties hereto and their respective successors and assigns permitted
hereby, except that Borrower may not
assign or otherwise transfer any of its rights or obligations hereunder without
the prior consent of Administrative Agent and each Lender and no Lender may
assign or otherwise transfer any of its rights or obligations hereunder except
(a) to an assignee in accordance with the provisions of
Section 13.17.2, (b) by way of participation in accordance with the
provisions of Section 13.17.3, (c) by way of pledge or assignment of
a security interest subject to the restrictions of Section 13.17.5, or (d) to an SPC in accordance with
the provisions of Section 13.17.7 (and any other attempted
assignment or transfer by any party hereto shall be null and void).  Nothing in this Agreement, expressed or implied,
shall be construed to confer upon any Person (other than the parties hereto,
their respective successors and assigns permitted hereby, Participants to the
extent provided in Section 13.17.3 and, to the extent expressly
contemplated hereby, the Affiliates of each of the Secured Parties) any legal
or equitable right, remedy or claim under or by reason of this Agreement.

 

13.17.2                               Assignments
by Lenders.  Any Lender
may at any time assign to one or more assignees all or a portion of its rights
and obligations under this Agreement (including all or a portion of its Loan
Commitment(s) and the Loans at the time owing to it); provided,
that any such assignment shall be subject to the following conditions:

 

(a)                                  Minimum Amounts.

 

(i)                                     In the case of
an assignment of the entire remaining amount of the assigning Lender’s Loan
Commitment hereunder and the Loans at the time owing to it or in the case of an
assignment to a Lender, an Affiliate of a Lender or an Approved Fund, no
minimum amount need be assigned.

 

(ii)                                  In any case not
described in Section 13.17.2(a)(i), the aggregate amount of the Loan
Commitment (which for this purpose includes Loans outstanding thereunder) or,
if the Loan Commitment is not then in effect, the principal outstanding balance
of the Loans 

 

104

 

of the assigning Lender subject to each such
assignment, determined as of the date the Assignment and Assumption with
respect to such assignment is delivered to Administrative Agent or, if “Trade
Date” is specified in the Assignment and Assumption, as of the Trade Date,
shall not be less than $1,000,000, unless each of Administrative Agent and, so
long as no Event of Default has occurred and is continuing, Borrower otherwise
consents (each such consent not to be unreasonably withheld or delayed); provided,
that concurrent assignments to members of an Assignee Group and concurrent
assignments from members of an Assignee Group to a single Eligible Assignee (or
to an Eligible Assignee and members of its Assignee Group) will be treated as a
single assignment for purposes of determining whether such minimum amount has
been met.

 

(b)                                 Proportionate Amounts.  Each partial assignment shall be made as an
assignment of a proportionate part of all the assigning Lender’s rights and
obligations under this Agreement with respect to the Loans or the Loan
Commitment assigned.

 

(c)                                  Required Consents.  No consent shall be required for any
assignment except to the extent required by Section 13.17.2(a)(ii) and,
in addition the consent of Borrower (such consent not to be unreasonably
withheld or delayed) shall be required unless (A) an Event of Default has
occurred and is continuing at the time of such assignment (B) such
assignment is to a Lender, an Affiliate of a Lender or an Approved Fund or
(C) during the Initial Period.

 

(d)                                 Assignment and Assumption.  The parties to each assignment shall execute
and deliver to Administrative Agent an Assignment and Assumption, together with
a processing and recordation fee in the amount of $3,500; provided, however,
that Administrative Agent may, in its sole discretion, elect to waive such
processing and recordation fee in the case of any assignment.  The assignee, if it shall not be a Lender,
shall deliver to Administrative Agent an Administrative Questionnaire and any
tax forms required under Section 2.4.6.

 

(e)                                  No Assignment to Borrower.  No such assignment shall be made to Borrower
or any of Borrower’s Affiliates.

 

(f)                                    No Assignment to Natural
Persons.  No such assignment shall be
made to a natural person.

 

(g)                                 Effectiveness of Assignment.  Subject to acceptance and recording thereof
by Administrative Agent in the Register, from and after the effective date
specified in each Assignment and Assumption, the assignee thereunder shall be a
party to this Agreement and, to the extent of the interest assigned by such
Assignment and Assumption, have the rights and obligations of a Lender under
this Agreement, and the assigning Lender thereunder shall, to the extent of the
interest assigned by such Assignment and Assumption, be released from its
obligations under this Agreement (and, in the case of an Assignment and
Assumption covering all of the assigning Lender’s rights and obligations under
this Agreement, such Lender shall cease to be a party hereto but shall continue
to be entitled to the benefits of Sections 13.4 and 13.13 with respect to
facts and circumstances occurring prior to the effective date of such
assignment).  Any assignment or transfer
by a Lender of rights or obligations under this Agreement that does not comply
with this Section 13.17.2 shall be treated for purposes of this Agreement
as a sale by such Lender of a participation in such rights and obligations in
accordance with Section 13.17.3.

 

105

 

13.17.3                               Participations.  Any Lender may at any time, without the
consent of, or notice to, Borrower or Administrative Agent, sell participations
to any Person (other than a natural person or Borrower or any of Borrower’s
Affiliates) (each, a “Participant”) in all or a portion of such Lender’s rights
and/or obligations under this Agreement (including all or a portion of its Loan
Commitment and/or the Loans; provided, that (a) such Lender’s
obligations under this Agreement shall remain unchanged, (b) such Lender
shall remain solely responsible to the other parties hereto for the performance
of such obligations and (c) Borrower and the Secured Parties shall
continue to deal solely and directly with such Lender in connection with such Lender’s
rights and obligations under this Agreement. 
Any agreement or instrument pursuant to which a Lender sells such a
participation shall provide that such Lender shall retain the sole right to
enforce this Agreement and to approve any amendment, modification or waiver of
any provision of this Agreement; provided, that such agreement or
instrument may provide that such Lender will not, without the consent of the
Participant, agree to any amendment, waiver or other modification described in
the first proviso to Section 13.20.1 that affects such Participant.  Subject to Section 13.17.4, Borrower
agrees that each Participant shall be entitled to the benefits of
Sections 2.4.4, 2.6.3 and 2.7 to the same extent as if it were a Lender
(subject to the requirements of such sections) and had acquired its interest by
assignment pursuant to Section 13.17.2. 
To the extent permitted by law, each Participant also shall be entitled
to the benefits of Section 13.2.2  as though it
were a Lender, provided, such Participant agrees to be subject to
Section 2.5.2 as though it were a Lender.

 

13.17.4                               Limitations
upon Participant Rights.  A
Participant shall not be entitled to receive any greater payment under
Section 2.4 or 2.6  than the
applicable Lender would have been entitled to receive with respect to the
participation sold to such Participant, unless the sale of the participation to
such Participant is made with Borrower’s prior consent.  A Participant that is not organized under the
laws of the United States or any State thereof shall not be entitled to the
benefits of Section 2.4.4 unless Borrower is notified of the participation
sold to such Participant and such Participant agrees, for the benefit of
Borrower, to comply with Section 2.4.5 as though it were a Lender.

 

13.17.5                               Certain
Pledges.  Any Lender may at any time
pledge or assign a security interest in all or any portion of its rights under
this Agreement to secure obligations of such Lender, including any pledge or
assignment to secure obligations to a Federal Reserve Bank; provided,
that no such pledge or assignment shall release such Lender from any of its
obligations hereunder or substitute any such pledgee or assignee for such
Lender as a party hereto.

 

13.17.6                               Electronic
Execution of Assignments.  The
words “execution,” “signed,” “signature,” and words of like import in any
Assignment and Assumption shall be deemed to include electronic signatures or
the keeping of records in electronic form, each of which shall be of the same
legal effect, validity or enforceability as a manually executed signature or
the use of a paper-based recordkeeping system, as the case may be, to the
extent and as provided for in any applicable law, including the Federal
Electronic Signatures in Global and National Commerce Act, the New York State Electronic
Signatures and Records Act, or any other similar state laws based on the
Uniform Electronic Transactions Act.

 

106

 

13.17.7                               Special Purpose Funding Vehicles.  Notwithstanding anything to the
contrary contained herein, any Lender (a “Granting Lender”) may grant to a special purpose funding
vehicle identified as such from time to time by the Granting Lender to
Administrative Agent and Borrower (an “SPC”) the option to provide all or any part of any Loan that
such Granting Lender would otherwise be obligated to make pursuant to this
Agreement; provided, that (a) nothing herein shall constitute a
commitment by any SPC to fund any Loan, and (b) if an SPC elects not to
exercise such option or otherwise fails to make all or any part of such Loan,
the Granting Lender shall be obligated to make such Loan pursuant to the terms
hereof or, if it fails to do so, to make such payment to Administrative Agent
as is required under Section 2.1.4(d). 
Each party hereto hereby agrees that (i) neither the grant to any
SPC nor the exercise by any SPC of such option shall increase the costs or
expenses or otherwise increase or change the obligations of Borrower under this
Agreement, (ii) no SPC shall be liable for any indemnity or similar
payment obligation under this Agreement for which a Lender would be liable, and
(iii) the Granting Lender shall for all purposes, including the approval
of any amendment, waiver or other modification of any provision of any Credit
Document, remain the lender of record hereunder.  The making of a Loan by an SPC hereunder
shall utilize the Loan Commitment of the Granting Lender to the same extent,
and as if, such Loan were made by such Granting Lender.  In furtherance of the foregoing, each party
hereto hereby agrees (which agreement shall survive the termination of this
Agreement) that, prior to the date that is one year and one day after the
payment in full of all outstanding commercial paper or other senior debt of any
SPC, it will not institute against, or join any other Person in instituting
against, such SPC any bankruptcy, reorganization, arrangement, insolvency, or
liquidation proceeding under the laws of the United States or any State
thereof.  Notwithstanding anything to the
contrary contained herein, any SPC may (A) with notice to, but without
prior consent of Borrower and Administrative Agent and with the payment of a
processing fee in the amount of $2,500, assign all or any portion of its right
to receive payment with respect to any Loan to the Granting Lender and
(B) disclose on a confidential basis any non-public information relating
to its funding of Loans to any rating agency, commercial paper dealer or
provider of any surety or guarantee or credit or liquidity enhancement to such
SPC.

 

13.17.8                               Provision
of Information.  Borrower authorizes each Lender to
disclose any information concerning any Credit Party in the possession of such
Lender from time to time to assignees and participants (including prospective
assignees and participants) in accordance with the provisions hereof.

 

13.17.9                               Cost to
Lenders.  Unless an Event of Default has
occurred and is continuing, any cost or expense incurred by a Lender in
connection with an assignment or participation permitted under this Agreement
shall be for the account of such Lender and not for the account of Borrower or
any of its Affiliates.

 

13.18                 COUNTERPARTS.  This Agreement and any amendments, waivers,
consents or supplements hereto or in connection herewith may be executed in one
or more duplicate counterparts and by different parties hereto in separate
counterparts, each of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the
same instrument.  Signature pages may
be detached from multiple separate counterparts and attached to a single
counterpart so that all signature pages are physically attached to the
same document.

 

107

 

13.19                 SURVIVAL.  All representations, warranties, covenants
and agreements made herein and in the certificates or other instruments
delivered in connection with or pursuant to this Agreement and the other Credit
Documents shall be considered to have been relied upon by the parties hereto
and shall survive the execution and delivery of this Agreement, the other
Credit Documents and the making of the Loans. 
Notwithstanding anything in this Agreement or implied by law to the
contrary, and without prejudice to the survival of any other agreement of Borrower
hereunder, the agreements and obligations of Borrower set forth in
Sections 2.4.4, 2.6.3, 2.6.4, 2.7, 5.10, 11.3 and 13.4 and the agreements
of the Lenders set forth in Sections 11.1, 11.5 and 11.11 shall survive
the payment and performance of the Loans and the other Obligations and the
reimbursement of any amounts drawn hereunder, the termination of the
Commitments and the termination or expiration of this Agreement or any
provision hereof, and, in the case of any Lender that may assign any interest
in its Commitment(s) or Loans hereunder, shall survive the making of such
assignment, notwithstanding that such assigning Lender may cease to be a “Lender”
hereunder.

 

13.20                 AMENDMENTS;
WAIVERS.

 

13.20.1                               Any provision
of the Credit Documents may be amended, modified, supplemented or waived, or
any consent thereunder granted, only by an instrument signed by the Required
Lenders and, where a provision requires consent from Administrative Agent or
Collateral Agent, signed by such Person, and the relevant Credit Party; provided,
that no amendment, modification, supplement, waiver or consent shall, without
the consent of all of the Lenders:

 

(a)                                  modify, in any respect
adverse to the Lenders, Section 2.1.1(d), 2.1.7(c) or 2.6;

 

(b)                                 increase the amount of the
Loan Commitment of any Lender hereunder;

 

(c)                                  amend the percentage
specified in the definition of “Required Lenders” or any other provision of the
Credit Documents specifying the number or percentage of the Secured Parties or
any subset thereof required to waive, amend or modify any rights hereunder,
make any determination or grant any consent hereunder,

 

(d)                                 amend Sections 2.1.4(b),
2.5.2 or 11.13 or the definition of “Proportionate Share” or any other
provisions relating to the pro rata
treatment of the Lenders;

 

(e)                                  permit Borrower to assign
its rights under this Agreement except as provided in Section 13.17.1;

 

(f)                                    amend this
Section 13.20.1;

 

(g)                                 amend any provision of any
Credit Document setting forth an order of payments to alter the relative
priority of payments set forth thereunder in a manner which disproportionately
and adversely effects a particular class of creditor (i.e.
Lender), in which case such amendment shall require the written consent of each
creditor within such directly affected class (i.e.
each Lender), or waive any condition set forth in Section 3.1;

 

108

 

(h)                                 release any Collateral
(other than immaterial portions thereof or as permitted in Section 6.4)
from the Lien of any of the Collateral Documents or allow release of any funds
from any Account other than in accordance with the terms of the Credit
Documents;

 

(i)                                     extend the Maturity Date or
reduce the rate or amount or change the time of payment of interest due on any
Loan;

 

(j)                                     reduce the amount or extend
the payment date for any amount due hereunder, whether principal, interest,
fees or other amounts, provided that the Required Lenders may elect to
not impose the Default Rate when the Lenders are otherwise entitled to do so;

 

(k)                                  increase the maximum
duration of Interest Periods permitted hereunder;

 

(l)                                     subordinate the Obligations
to any other Debt; or

 

(m)                               amend Section 13.17.2(e) or
13.17.3.

 

13.20.2                               No amendment,
modification, termination or waiver of any provision of this Agreement affecting
the rights or obligations of Administrative Agent, Collateral Agent or the Lead
Arranger shall be effective without the consent of Administrative Agent,
Collateral Agent or the Lead Arranger, as the case may be.

 

13.20.3                               Any amendment,
supplement, waiver or modification hereunder shall apply equally to each Lender
and be binding upon Borrower and the Secured Parties and each Lender that
becomes a party hereto.

 

13.20.4                               No Lender shall
be deemed to have waived, by reason of making any extension of credit
hereunder, any Default or Event of Default that may arise by reason of such
representation or warranty proving to have been false or misleading,
notwithstanding that such Lender or Administrative Agent may have had notice or
knowledge or reason to believe that such representation or warranty was false
or misleading at the time such extension of credit was made.

 

13.20.5                               Lender
Confirmation.

 

(a)                                  By executing and delivering
an Assignment and Assumption, each Lender assignee party thereto confirms to
each Lender assignor party thereto and the other parties hereto as
follows:  (i) such assignee is an
Eligible Assignee; (ii) such assignee has experience and expertise in the
making of or purchasing loans such as the Loans; (iii) such assignee will
make or purchase Loans for its own account in the ordinary course of its
business and without a view to distribution of such Loans within the meaning of
the Securities Act or the Exchange Act or other federal securities laws (it
being understood that, subject to the provisions of this Section, the
disposition of such Loans or any interests therein shall at all times remain
within its exclusive control); (iv) such assignee agrees that it will
perform in accordance with their terms all the obligations that by terms of this
Agreement are required to be performed by it as a Lender; (v) such
assignee has received a copy of the Credit Documents, together with the copies
of the current financial statements that will have been delivered by Borrower
hereunder and such other documents and information as it has deemed appropriate
to make its own credit analysis and 

 

109

 

decision to enter into such Assignment and
Assumption; (vi) such assignee will, independently and without reliance
upon Administrative Agent, such assigning Lender or any other Secured Party and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under this Agreement; and (vii) such assignee appoints and authorizes each
of Administrative Agent and Collateral Agent to take such action on its behalf
and to exercise such powers and discretion under the Credit Documents as are
delegated to each such agent respectively by the terms hereof and thereof,
together with such powers and discretion as are reasonably incidental thereto.

 

(b)                                 By executing and delivering
an Assignment and Assumption, each Lender assignor party thereto confirms to
each Lender assignee party thereto and the other parties hereto as
follows:  (i) other than as provided
in the Assignment and Assumption, such assigning Lender makes no representation
and warranty and assumes no responsibility with respect to any statements,
warranties or representations made in or in connection with the Credit
Documents or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of, or the perfection or priority of any lien or security
interest created or purported to be created under or in connection with, the
Credit Documents and any other document or instrument furnished hereunder or
thereunder; and (ii) such assigning Lender makes no representation or
warranty and assumes no responsibility with respect to the financial condition
of Borrower or the other Borrower Entities, or the performance or observance by
any such Person of its obligations under the Credit Documents.

 

13.21                 LAWS.  Notwithstanding the foregoing provisions of
this Agreement, no sale, assignment, transfer, negotiation or other disposition
of the interests of any Lender hereunder or under the other Credit Documents
shall be allowed if it would require registration under the Securities Act, any
other federal securities laws or regulations or the securities laws or
regulations of any applicable jurisdiction. 
Borrower shall, from time to time at the request of Administrative
Agent, execute and deliver to Administrative Agent, or to such party or parties
as Administrative Agent may designate, any and all further instruments as may
in the opinion of Administrative Agent be reasonably necessary or advisable to
give full force and effect to such sale, assignment, transfer, negotiation or
disposition which would not require any such registration.

 

13.22                 ASSIGNABILITY
AS COLLATERAL.  Notwithstanding
any other provision contained in this Agreement or any other Credit Document to
the contrary, any Lender may (without notice to Borrower, Administrative Agent
or any other Lender and without payment of any fee) assign all or any portion
of the Loans held by it in favor of any Federal Reserve Bank or the United
States Treasury as collateral security; provided, that any payment in
respect of such assigned Loans made by Borrower to or for the account of the
assigning or pledging Lender in accordance with the terms of this Agreement
shall satisfy Borrower’s obligations hereunder in respect of such assigned
Loans to the extent of such payment.  No
such assignment shall release the assigning Lender from its obligations
hereunder.  In the case of any Lender
that is a Fund, such Lender may, without the consent of Borrower or
Administrative Agent, collaterally assign or pledge all or any portion of its
rights under this Agreement, including the Loans or any other instrument
evidencing its rights as a Lender under this Agreement, to any holder of,
trustee for, or any other representative of holders of, obligations owed or
securities issued, by such fund, as security for such obligations or
securities.

 

110

 

13.23                 SERVICE
OF PROCESS.  The Secured
Parties and Borrower hereby consent to the service of process made by
registered or certified mail, return receipt requested, at its address provided
for notices in Section 13.1.1 and agrees that such service is sufficient
to confer personal jurisdiction over it in any relevant proceeding in any
relevant court, and otherwise constitutes effective and binding service in
every respect.  Nothing in this Agreement
or the other Operative Documents will affect the right of any party hereto to
serve process in any other manner permitted by law.

 

13.24                 INTEREST
RATE LIMITATION. 
Notwithstanding anything herein to the contrary, if at any time the
interest rate applicable to any Loan, together with all fees, charges and other
amounts which are treated as interest on such Loan under applicable law
(collectively the “Charges”), shall exceed the maximum lawful rate (the “Maximum
Rate”) which may be contracted for, charged, taken, received or reserved by
the Lender holding such Loan in accordance with applicable law, the rate of
interest payable in respect of such Loan hereunder, together with all Charges
payable in respect thereof, shall be limited to the Maximum Rate and, to the
extent lawful, the interest and Charges that would have been payable in respect
of such Loan but were not payable as a result of the operation of this Section shall
be cumulated and the interest and Charges payable to such Lender in respect of
other Loans or periods shall be increased (but not above the Maximum Rate
therefor) until such cumulated amount, together with interest thereon at the
Federal Funds Rate for each day to the date of repayment, shall have been
received by such Lender.

 

13.25                 CONFIDENTIALITY.

 

13.25.1                               Each of the
Secured Parties agrees to maintain the confidentiality of the Information (as
defined below), except that Information may be disclosed (a) to its
Related Parties (it being understood that the Persons to whom such disclosure
is made will be informed of the confidential nature of such Information and
instructed to keep such Information confidential), (b) to the extent
requested by any regulatory authority, (c) to the extent required by
applicable laws or regulations or by any subpoena or similar legal process,
(d) to any other party to this Agreement, (e) in connection with the
exercise of any remedies hereunder or any suit, action or proceeding relating
to this Agreement or the enforcement of rights hereunder, (f) subject to
an agreement containing provisions substantially the same as those of this
Section, (i) financial insurance providers or (ii) to any assignee of
or Participant in, or any prospective assignee of or Participant in, any of its
rights or obligations under this Agreement, (g) with the consent of
Borrower or (h) to the extent such Information (i) becomes publicly
available other than as a result of a breach of this Section or
(ii) becomes available to any such Secured Party on a nonconfidential
basis from a source other than Borrower. 
For the purposes of this Section, “Information” means all
information received from Borrower relating to Borrower or its business, other
than any such information that is available to any such Secured Party on a
nonconfidential basis prior to disclosure by Borrower; provided, that,
in the case of information received from Borrower after the date hereof, such
information is clearly identified at the time of delivery as confidential.  Any Person required to maintain the
confidentiality of Information as provided in this Section shall be
considered to have complied with its obligation to do so if such Person has
exercised the same degree of care to maintain the confidentiality of such
Information as such Person would accord to its own confidential information.

 

111

 

13.25.2                               In no event
shall any Lender be obligated or required to return any materials furnished by
any Credit Party.  In addition, the
Secured Parties may disclose the existence of this Agreement and information
about this Agreement to market data collectors, similar service providers to
the lending industry, and service providers to the Secured Parties, and the
Secured Parties or any of their respective Affiliates may place customary “tombstone”
advertisements (which may include any of Borrower’s and the other Borrower
Entities’ trade names or corporate logos) in publications of its choice
(including “e-tombstones” published or otherwise circulated in electronic form) at its own expense.

 

13.26                 MARSHALLING;
ASSETS SET ASIDE.  Neither
Administrative Agent, Collateral Agent nor any Lender shall be under any
obligation to marshal any assets in favor of Borrower or any other party or
against or in payment of any or all of the Obligations.  To the extent that Borrower makes a payment
or payments to any Secured Party, or any Secured Party enforces any security
interests or exercises its rights of set-off, and such payment or payments or
the proceeds of such enforcement or set-off or any part thereof are
subsequently invalidated, declared to be fraudulent or preferential, set aside
or required to be repaid to a trustee, receiver or any other party under any
bankruptcy law, any other state or federal law, common law or any equitable
cause (and whether as a result of any demand, settlement, litigation or otherwise),
then, to the extent of such recovery, the obligation or part thereof originally
intended to be satisfied, and all Liens, rights and remedies therefor or
related thereto, shall be revived and continued in full force and effect as if
such payment or payments had not been made or such enforcement or set-off had
not occurred.

 

13.27                 INDEPENDENCE
OF COVENANTS.  All
covenants hereunder shall be given independent effect so that if a particular
action or condition is not permitted by any of such covenants, the fact that it
would be permitted by an exception to, or would otherwise be within the
limitations of, another covenant shall not avoid the occurrence of a Default or
Event of Default if such action is taken or condition exists.

 

13.28                 CONSTRUCTION
OF THE DOCUMENTS.  Each of the
parties hereto acknowledges that (a) it has been represented by counsel in
the negotiation and documentation of the terms of the Credit Documents,
(b) it has had full and fair opportunity to review and revise the terms of
the Credit Documents, (c) the Credit Documents have been negotiated and
drafted jointly by all of the parties hereto, and (d) neither
Administrative Agent nor any Lender has any fiduciary relationship with or duty
to Borrower arising out of or in connection with any of the Credit Documents,
and the relationship between Administrative Agent and the Lenders, on one hand,
and Borrower, on the other hand, in connection herewith or therewith is solely
that of debtor and creditor. 
Accordingly, each of the parties hereto acknowledges and agrees that
(i) the Credit Documents shall be deemed to be the work product of all
parties hereto and thereto, (ii) the terms hereof and thereof shall not be
construed against or in favor of any party, and (iii) no ambiguity in any
Credit Document shall be construed in favor of or against any party solely as a
result of such party having drafted or proposed the ambiguous provision.

 

13.29                 SYNDICATION.  In connection with syndication of the Loans
and Loan Commitments, an information package containing certain relevant
information concerning Borrower, the Project and the other Project participants
(including a computer model prepared by

 

112

 

Borrower containing the Base Case Projections) has
been or will be prepared on behalf of Borrower and provided to potential
Lenders and participants.

 

13.30                 THE
PLATFORM.  Borrower
hereby acknowledges that Administrative Agent and/or the Lead Arranger will
make available to the Secured Parties materials and/or information provided by
or on behalf of Borrower hereunder (collectively, “Borrower Materials”)
by posting Borrower Materials on IntraLinks or another similar electronic
system (the “Platform”).  THE
PLATFORM IS PROVIDED “AS IS” AND “AS AVAILABLE.”  ADMINISTRATIVE AGENT DOES NOT WARRANT THE
ACCURACY OR COMPLETENESS OF BORROWER MATERIALS OR THE ADEQUACY OF THE PLATFORM,
AND EXPRESSLY DISCLAIMS LIABILITY FOR ERRORS IN OR OMISSIONS FROM BORROWER
MATERIALS.  NO WARRANTY OF ANY KIND,
EXPRESS, IMPLIED OR STATUTORY, INCLUDING ANY WARRANTY OF MERCHANTABILITY,
FITNESS FOR A PARTICULAR PURPOSE, NON-INFRINGEMENT OF THIRD PARTY RIGHTS OR
FREEDOM FROM VIRUSES OR OTHER CODE DEFECTS, IS MADE BY ADMINISTRATIVE AGENT IN
CONNECTION WITH BORROWER MATERIALS OR THE PLATFORM.  In no event shall Administrative Agent or any
of its Related Parties have any liability to Borrower or any other Secured
Party or any other Person for losses, claims, damages, liabilities or expenses
of any kind (whether in tort, contract or otherwise) arising out of Borrower’s
or Administrative Agent’s transmission of Borrower Materials through the
Internet, except to the extent that such losses, claims, damages, liabilities
or expenses are determined by a court of competent jurisdiction by a final and
nonappealable judgment to have resulted from the gross negligence or willful
misconduct of Administrative Agent; provided, that in no event shall
Administrative Agent or any Related Parties have any liability to Borrower, any
other Secured Party or any other Person for indirect, special, incidental,
consequential or punitive damages (as opposed to direct or actual damages).

 

13.31                 PATRIOT
ACT.  Each Lender that is subject to
the Patriot Act and the Administrative Agent (for itself and not on behalf of
any Lender) hereby notifies Borrower that pursuant to the requirements of the
Patriot Act, it is required to obtain, verify and record information that
identifies Borrower, which information includes the name and address of
Borrower and other information that will allow such Lender or the
Administrative Agent, as applicable, to identify Borrower in accordance with
the Act.

 

113

 

IN
WITNESS WHEREOF, the parties hereto, by their officers duly authorized,
intending to be legally bound, have caused this Agreement to be duly executed
and delivered as of the day and year first above written.

 

	
   

  	
  MILFORD
  WIND CORRIDOR PHASE II, LLC,

  
	
   

  	
  a
  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
  MILFORD
  II HOLDINGS, LLC,

  
	
   

  	
   

  	
   

  	
  its
  member

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

114

 

	
   

  	
  THE
  ROYAL BANK OF SCOTLAND PLC,

  
	
   

  	
  as
  Administrative Agent, Collateral Agent and Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:
  Jonathan Kim

  
	
   

  	
   

  	
  Title:   Senior Vice President

  

 

115

 

	
   

  	
  BANCO
  ESPÍRITO SANTO DE INVESTIMENTO S.A., NEW YORK BRANCH,

  
	
   

  	
  as
  Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

116

 

	
   

  	
  COBANK,
  ACB,

  
	
   

  	
  as
  Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

117

 

	
   

  	
  SOCIÉTE
  GÉNÉRALE,

  
	
   

  	
  as
  Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

118

 

	
   

  	
  SOVEREIGN
  BANK

  
	
   

  	
  as
  Lender

  
	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

[CREDIT
AGREEMENT SIGNATURE PAGE]

 

 

EXHIBIT A

to Credit Agreement

 

DEFINITIONS

 

Section, Article and Exhibit
references used herein refer to sections and articles

of and exhibits to this Agreement, unless otherwise specified.

 

“Account Withdrawal Documents” means,
collectively, any Account Withdrawal Request and the Account Withdrawal
Instruction related thereto, properly completed by Borrower and delivered to
Administrative Agent for approval and, in the case of the applicable Account
Withdrawal Instruction, signature, in accordance with the applicable provisions
of this Agreement and the Depositary Agreement.

 

“Account Withdrawal Instruction” has the
meaning given in the Depositary Agreement.

 

“Account Withdrawal Request” means a
certificate in the form of Exhibit J, signed by a duly authorized
representative of Borrower and delivered to Administrative Agent.

 

“Accounts” means the Construction Account,
the Revenue Account, the Insurance Proceeds Account, the Asset Sale Account,
the SCPPA Cure Reserve Account and each cash collateral account referred to in
the Credit Documents.

 

“Additional Project Documents” means any
material contracts or agreements related to the construction, testing,
maintenance, repair, operation or use of the Project entered into by Borrower
and any other Person, or assigned to Borrower, subsequent to the Closing Date; provided
that any such contracts and agreements providing for the payment by or to
Borrower of less than $250,000  in the aggregate  or the provision to Borrower of less than $250,000 per annum individually in value of
goods or services, shall be deemed not to constitute an Additional Project
Document.

 

“Adjusted
Eurodollar Rate” means, with respect to any Eurodollar Loan for any
Interest Period, (a) an interest rate per annum (rounded upward, if
necessary, to the next 1/100th of 1%) determined by Administrative Agent to be
equal to the Eurodollar Rate for such Eurodollar Loan in effect for such
Interest Period divided by (b) 1 minus the Reserve Requirement (if any) for
such Eurodollar Loan for such Interest Period.

 

“Administrative Agent” means The Royal Bank
of Scotland plc, acting in its capacity as administrative agent for the Secured
Parties under the Credit Documents.

 

“Administrative Questionnaire” means an
Administrative Questionnaire in a form supplied by Administrative Agent.

 

“Adverse PUHCA Event” means that Borrower or
any of its “affiliates” of PUHCA becomes an “electric utility company,” “public
utility,” “public-utility company,” or “holding company,” as each of these
terms is defined in PUHCA, required to register as such pursuant to PUHCA at a
time at which applicable provisions of PUHCA, or any successor statute 

 

A-1

 

thereof,
and the rules and regulations thereunder are in effect and such event or
occurrence has a Material Adverse Effect or a material and adverse effect on
Administrative Agent or the Lenders.

 

“Affiliate” of a specified Person means any
other Person that (a) directly, or indirectly through one or more
intermediaries, controls, is controlled by or is under common control with such
Person, or (b) only with respect to matters relating to PUHCA, (i) is an “affiliate”
as defined in Section 1262(1) of PUHCA or (ii) directly or indirectly owns,
controls or holds with power to vote, 5% or more of the outstanding voting
securities of such Person.  When used
with respect to Borrower, “Affiliate” shall include Pledgor and any Affiliate
thereof (other than Borrower).  For
purposes of this definition, “control” means the possession, directly or
indirectly (either alone or pursuant to an arrangement or understanding with
one or more other Persons), of the power to direct or cause the direction of
the management or policies of a Person, whether through the ownership of voting
securities, by contract or otherwise, and the terms “controlling” and “controlled”
shall have meanings correlative thereto.

 

“Agreement” has the meaning given in the
preamble.

 

“ALTA” means American Land Title Association.

 

“Annual Operating Budget” means the
certificate required pursuant to Section 5.14.3.

 

“Anti-Terrorism
Laws” has the meaning given in Section 4.30.

 

“Applicable Permit” means, at any time, any
Permit (a) that is necessary under applicable Legal Requirements or any of
the Operative Documents to have been obtained by or on behalf of Borrower at
such time in light of the stage of development, construction or operation of
the Project to construct, test, operate, maintain, repair, lease, own or use
the Project as contemplated by the Operative Documents, to sell electricity
from the Project, or for Borrower to enter into any Operative Document or to
consummate any transaction contemplated thereby, in each case in accordance
with all applicable Legal Requirements, or (b) that is necessary so that
none of Borrower or any Secured Party nor any Affiliate of any of them may be
deemed by any Governmental Authority to be subject to regulation under the FPA
or PUHCA (except as provided in Section 4.16) or treated as a public
utility under the Constitution and the laws of the Project Jurisdiction as
presently constituted and as construed by the courts of the Project
Jurisdiction with respect to the regulation of the rates of, or the financial
or organizational regulation of, electric utilities as a result of the
development and construction or operation of the Project or the sale of
electricity therefrom.

 

“Applicable Third Party Permit” means, at any
time, any Permit that is necessary to have been obtained by such time by any
Person (other than Borrower) that is a party to a Major Project Document or a
Credit Document in order to perform such Person’s obligations thereunder (other
than Permits necessary to conduct its business generally and maintain its
existence and good standing), or in order to consummate any transaction contemplated
thereby, in each case in accordance with all applicable Legal Requirements.

 

A-2

 

“Approved Fund” means any Fund that is
administered or managed by (a) a Lender, (b) an Affiliate of a Lender
or (c) an entity or an Affiliate of an entity that administers or manages
a Lender.

 

“Asset Sale Account” has the meaning given in
Section 1.1 of the Depositary Agreement.

 

“Assignee Group” means two or more Eligible
Assignees that are Affiliates of one another or two or more Approved Funds
managed by the same investment advisor.

 

“Assignment and Assumption” means an
assignment and assumption entered into by a Lender and an Eligible Assignee
(with the consent of any party whose consent is required by Section 13.17.2),
and accepted by Administrative Agent, in substantially the form of Exhibit M
or any other form approved by Administrative Agent.

 

“Available Construction Funds” means, at any
time and without duplication, the sum of (a) amounts in the Construction
Account, (b) the Available Loan Commitment, (c) undisbursed Insurance
Proceeds or Eminent Domain Proceeds which are available for payment of Project
Costs, (d) any delay liquidated damages which Borrower has received under
the Construction Contract or any other contract for construction related to the
Project, and (e) any other liquidated damages which Borrower has received
under the other Project Documents and which, by the terms of the Credit
Documents, are available for the payment of Project Costs.

 

“Available Loan Commitment” means (a) at
any time and from time to time during the Loan Availability Period, the Total
Loan Commitment at such time minus
the sum of (i) the aggregate principal amount of all Loans outstanding at
such time and (ii) the aggregate principal amount of all Loans that have
been repaid at such time, and (b) at any time after the Loan Availability
Period, zero.

 

“Bailees” means (a)
Dansville Properties, LLC, a New York corporation, (b) the Town of Houlton (c)
AKTEM Business Park, LLC, and (d) the Individual Bailees.

 

“Bankruptcy Event” shall be deemed to occur,
with respect to any Person, if (a) that Person shall commence any case,
proceeding or other voluntary action seeking to have an order for relief
entered with respect to it, or seeking to adjudicate it bankrupt or insolvent,
or seeking liquidation, arrangement, adjustment, winding-up, reorganization,
dissolution, composition under the Bankruptcy Law or other relief with respect
to it or its debts; (b) such Person shall apply for, or consent or
acquiesce to, the appointment of, a receiver, administrator, administrative
receiver, liquidator, sequestrator, trustee or other official with similar
powers for itself or any substantial part of its assets; (c) such Person
shall make a general assignment for the benefit of its creditors; (d) an
involuntary case shall be commenced seeking liquidation or reorganization of
such Person under the Bankruptcy Law, or seeking issuance of a warrant of
attachment, execution or distraint,  or
any similar proceedings shall be commenced against such Person under any other
applicable law and (i) such Person consents to the institution of the
involuntary case against it, (ii) the petition commencing the involuntary
case is not timely controverted, (iii) the petition commencing the
involuntary case is not dismissed within 45 days 

 

A-3

 

of
its filing, (iv) an interim trustee is appointed to take possession of all
or a portion of the property, and/or to operate all or any part of the business
of such Person and such appointment is not vacated within 45 days, or
(v) an order for relief shall have been issued or entered therein; or
(e) a decree or order of a court having jurisdiction in the premises for
the appointment of a receiver, administrator, administrative receiver,
liquidator, sequestrator, trustee or other official having similar powers, over
such Person or all or a part of its property shall have been entered; or
(f) any other similar relief shall be granted against such Person under
any applicable Bankruptcy Law, or such Person shall file a petition or consent
or shall otherwise institute any similar proceeding under any other applicable
law, or shall take any action in furtherance of, or indicating its consent to,
approval of, or acquiescence in any of the acts set forth above in this
definition; or (g) such Person shall generally not, or shall be unable to,
or shall admit in writing its inability to, pay its debts as they become due.

 

“Bankruptcy Law” means Title 11, United
States Code, and any other existing or future law (or any successor law or
statute) of any jurisdiction, domestic (including state and federal) or
foreign, relating to bankruptcy, insolvency, reorganization, conservatorship,
moratorium or similar law for the relief of debtors.

 

“Base Case Projections” means a projection of
operating results, showing Borrower’s good faith estimates, as of the Closing
Date, of revenues, operating expenses and sources and uses over a forecast
period of 20 years beyond the projected date of Commercial Operation, which
shall be of a nature and in an amount satisfactory to the Lenders in
consultation with Independent Engineer and based upon the findings in the Wind
Report.

 

“Base Equity Requirement” means equity funds
equal to $65,000,000.00, which may be contributed by obtaining for Borrower and
maintaining on its behalf any letters of credit required under the Project
Documents.

 

“Base Rate” means the greatest of (a) the
prime commercial lending rate announced from time to time by Administrative
Agent (the “Prime Rate”), (b) the Federal Funds Rate plus 0.50%, and (c)
the one-month Eurodollar Rate plus 1.25%. 
The Prime Rate may not necessarily be the highest or lowest rate of
interest charged by Administrative Agent to its commercial borrowers. Any
change in the Base Rate due to a change in the Prime Rate or the Federal Funds
Rate shall be effective as of the opening of business on the effective day of
such change in the Prime Rate or the Federal Funds  Rate, respectively.

 

“Base Rate Loans” means a Loan that bears
interest based upon the Base Rate.

 

“BESI” has the meaning given in the preamble.

 

“BLM” means the United States Department of
Interior, Bureau of Land Management.

 

“BLM Memo” has the meaning given in Section 5.25.

 

“BLM Right of Way
(Generator Lead Line)” means Right-of-Way Grant/Temporary Use Permit Serial
Number UTU-82973 dated effective as of October 15, 2008.

 

A-4

 

“BLM Right of Way
(Phase II)” means Right-of-Way Grant/Temporary Use Permit Serial Number
UTU-83073 dated effective as of February 9, 2010.

 

“Bookrunner” has the meaning given in the
preamble.

 

“Borrower” means Milford Wind Corridor Phase
II, LLC, a Delaware limited liability company.

 

“Borrower Materials” has the meaning given in
Section 13.30.

 

“Borrower Entity” has the meaning given in
Section 3.1.1.

 

“Borrowing” means a borrowing by Borrower of
any Loans of the same Type made on the same day by the Lenders.

 

“Business Day” means any day other than a
Saturday, Sunday or other day on which banks are or Administrative Agent is
authorized or required to be closed in the Project Jurisdiction or the State of
New York and, where such term is used in any respect relating to a Eurodollar
Loan, which is also a day on which dealings in Dollar deposits are carried out
in the London interbank market.

 

“Capital Adequacy Requirement” has the
meaning given in Section 2.6.4.

 

“Casualty Event” means the loss, damage or
destruction of any part of the Improvements or any personal property related to
the Project.

 

“Change of Control” means (a) Pledgor ceases
to directly own and control 100% of the economic and voting interest in
Borrower, (b) Parent ceases to directly own and control 100% of the economic
and voting interest in Pledgor, (c) except in connection with (i) exercise of
remedies under the Letter of Credit Facility, the Subordinated Loan Facility or
any other Debt facility entered into by First Wind Holdings Inc. or First Wind
Holdings, LLC (or their respective Subsidiaries) or (ii) any initial public
stock offering relating to First Wind Holdings, Inc., D.E. Shaw or Madison
Dearborn (or any of their respective Affiliates) shall cease to directly or
indirectly own and control an aggregate of 50.1% of the economic and voting
interests of Parent or (d) except in connection with a tax equity investment or
with exercise of remedies under the Letter of Credit Facility, the Subordinated
Loan Facility or any other Debt facility entered into by First Wind Holdings Inc.
or First Wind Holdings, LLC (or their respective Subsidiaries), First Wind
Holdings, LLC shall cease to directly or indirectly own and control an
aggregate of 80.0% of the economic and voting interests of Parent.

 

“Change of Law” has the meaning given in
Section 2.6.2.

 

“Charges” has the meaning given in
Section 13.24.

 

“Circle Four
Easements” means that certain Grant of Easements dated May 6, 2010, by and
between Murphy-Brown, LLC doing business as Circle Four Farms, as grantor, and
Borrower, as grantee.

 

A-5

 

“Closing Date” has the meaning given in
Section 3.1.

 

“CoBank” has the meaning given in the
preamble.

 

“CoBank Equities” has the meaning given in
Section 5.26.1.

 

“Code” means the Internal Revenue Code of
1986, as amended.

 

“Collateral” means all property which is
subject or is intended to become subject to the security interests or liens
granted by any of the Collateral Documents.

 

“Collateral Agent” means The Royal Bank of
Scotland plc, acting in its capacity as collateral agent for the Secured
Parties under the Credit Documents, and any successor.

 

“Collateral Documents” means the Trust Deed,
the Pledge Agreement, the Security Agreement, the Depositary Agreement, each
Consent, and any fixture filings, financing statements, or other similar
documents filed, recorded or delivered in connection with the foregoing.

 

“Commercial Operation” means the Commercial
Operation Date, as such term is defined in the PPA.

 

“Commitment Fee” means the fee payable pursuant
to Section 2.3.2.

 

“Commitments” means, (a) with respect to each
Lender, such Lender’s Loan Commitment and (b) with respect to all Lenders,
the Total Loan Commitment.

 

“Completion” means that (a) all work
under the Construction Contract (other than punchlist items) has been completed
substantially in accordance with the Plans and Specifications and the
requirements of all Applicable Permits, (b) Commercial Operation has been
achieved, (c) the Performance Tests, if applicable, either (i) have been
successfully completed or (ii) performance liquidated damages as provided
in Construction Contract have been paid in full, (d) necessary
interconnection facilities sufficient to transmit all power generated by the
Project have been completed in accordance with the Interconnection Agreement,
(e) all other aspects of the Project have been constructed, other than
items that could not reasonably be expected to materially affect the
performance, integrity, safety, or reliability of the Project or the status or
validity of any Applicable Permit (all as duly certified by the Independent
Engineer to Administrative Agent), (f) all real estate rights reasonably
necessary for completion of the foregoing and continued operations of the
Project have been obtained; and (g) receipt of all Applicable Permits.

 

“Completion Date” means the date on which
Completion occurs.

 

“Consents” means the consents specified on Exhibit E-3
and any other third party consents to the assignments or bailee waivers
contemplated by the Credit Documents.

 

“Construction Account” has the meaning given
in Section 1.1 of the Depositary Agreement.

 

A-6

 

“Construction Contract” means the Balance of
Plant Construction Contract dated as of September 15, 2010 between Construction
Contractor and Borrower.

 

“Construction Contractor” means RMT, Inc., a
Wisconsin corporation.

 

“Contingent
Obligation” means, as to any Person, any obligation, agreement,
understanding or arrangement (including purchase or repurchase agreements,
reimbursement agreements with respect to letters of credit or acceptances,
indemnity arrangements, grants of collateral to support the obligations of
another Person, keep-well agreements and take-or-pay or through-put
arrangements) of such Person guaranteeing or intended to guarantee any
indebtedness, leases, dividends or other obligations of any other Person in any
manner, whether directly or indirectly; provided, that
the term “Contingent Obligation” shall not include endorsements of instruments
for deposit or collection in the ordinary course of business.

 

“Cost Segregation Consultant” means KPMG LLP.

 

“Cost Segregation Report” means the Cost
Segregation Report prepared by the Cost Segregation Consultant, as updated and
revised from time to time pursuant to Section 5.23.

 

“Co-Syndication Agent” has the meaning given
in the preamble.

 

“Credit Agreement Joinder” means a joinder to
this Agreement substantially in the form of Exhibit N.

 

“Credit Documents” means this Agreement, the
Depositary Agreement, the Collateral Documents, the Fee Letter and any other
loan or security agreements or letter agreement or similar document, entered
into by any Secured Party, on the one hand, and Borrower or one or more
Affiliates of any Borrower Entity, on the other hand, in connection with the
transactions contemplated by the Credit Documents.

 

“Credit Event” means the Closing Date, each
Borrowing and resulting Loan.

 

“Credit Parties” means Borrower and Pledgor.

 

“Date Certain” means July 31, 2011; provided,
however, if the date by which the Commercial Operation Date (as such
term is defined in the PPA) must be achieved is extended pursuant to the PPA,
then Date Certain shall be extended day-for-day with the extension of the
deadline for the Commercial Operation Date under the PPA.

 

“Debt” of any Person at any date means,
without duplication, (a) all obligations (including contingent
obligations) of such Person for borrowed money, (b) all obligations of
such Person evidenced by bonds, debentures, notes or other similar instruments,
(c) all obligations of such Person to pay the deferred purchase price of
property or services, except trade accounts payable and other accrued expenses
arising in the ordinary course of business which in accordance with GAAP would
be shown on the liability side of the balance sheet of such Person,
(d) all obligations of such Person under leases which are or should be, in
accordance with GAAP, recorded as capital leases in respect of which such
Person is liable, (e) all obligations of such Person to purchase
securities (or other property) which arise out of or in connection with 

 

A-7

 

the
sale of the same or substantially similar securities (or property),
(f) all deferred obligations of such Person to reimburse any bank or other
Person in respect of amounts paid or advanced under a letter of credit or other
instrument, (g) all obligations, contingent or otherwise, of such Person
in respect of acceptances, letters of credit or similar extensions of credit,
(h) all Debt (as described in the preceding clauses) of others secured by
(or for which the holder of such Debt has an existing right, contingent or
otherwise, to be secured by) any Lien on any asset of such Person, whether or
not such Debt is assumed by such Person, (i) all Debt (as described in the
preceding clauses) of others guaranteed directly or indirectly by such Person
or as to which such Person has an obligation which is substantially the
economic equivalent of a guaranty and (j) all obligations of such Person in
respect of any “swap agreement”, as defined in Section 101 of the
Bankruptcy Law, that is intended to provide protection against fluctuations in
interest or currency exchange rates.

 

“Debt Service” means, for any period, the sum
of (a) all fees (other than fees paid on the Closing Date) payable during
such period to any Secured Party, and (b) interest on Loans.

 

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

 

“Default Rate” has the meaning given in
Section 2.4.3.

 

“Defaulting Lender” means any Lender that (a)
has failed to, or has notified Administrative Agent of its intent to not, fund
any portion of the Loans required to be funded by it hereunder within three
Business Days of the date required to be funded by it hereunder, (b) has
otherwise failed to pay over to Administrative Agent or any other Lender any
other amount required to be paid by it hereunder within one Business Day of the
date when due, unless the subject of a good faith dispute, or (c) has, or its
parent company has, been deemed insolvent or become the subject of a bankruptcy
or insolvency proceeding.

 

“Depositary” means RBS Citizens N.A., not in
its individual capacity but solely as depositary, bank and securities
intermediary under the Depositary Agreement.

 

“Depositary Agreement” means the Depositary
Agreement, dated as of the Closing Date, in substantially the form of Exhibit D-4,
among Borrower, Administrative Agent, Collateral Agent and Depositary.

 

“Disqualified Person” means (a) any Federal,
state or local government, including any political subdivision, agency, or
instrumentality thereof; (b) any organization that is described in Section
501(c) of the Code and is exempt from tax under Section 501(a) of the Code; (c)
any entity referred to in paragraph (4) of section 54(j) of the Code; (d) any
foreign person or entity as defined in Section 168(h)(2)(C) of the Code unless
the exception under Section 168(h)(2)(B) of the Code applies to such person or
entity; and (e) any partnership or other pass-through entity (including a
single-member disregarded entity) other than a real estate investment trust as
defined in Section 856(a) of the Code or a cooperative organization described
in Section 1381(a) of the Code, any direct and indirect partner (or other
holder of an equity or profits interest) of which is described in clauses (a)
through (e); provided that a taxable C 

 

A-8

 

corporation,
any of whose shareholders are ineligible to receive the Grant by virtue of
being described in clauses (a) through (e) above will not be considered a
Disqualified Person; provided further that a taxable C corporation’s direct or
indirect ownership of an interest in any partnership or other pass-through
entity described in clause (e) above shall not cause such partnership or
pass-through entity to be considered a Disqualified Person.  If and to the extent the types of
Disqualified Persons described in Sections 1603(f) and 1603(g) of Division B of
the American Recovery and Reinvestment Act of 2009 is amended after the date of
the Agreement, the definition of “Disqualified Person” under the Agreement
shall be interpreted to conform to such amendment and any Treasury guidance
with respect thereto.

 

“Dollars” and “$” means United States
dollars or such coin or currency of the United States of America as at the time
of payment shall be legal tender for the payment of public and private debts in
the United States of America.

 

“Drawdown Certificate” means a certificate
delivered to Administrative Agent substantially in the form of Exhibit C-3.

 

“Easements” has the meaning given in the
granting clause of the Trust Deed.

 

“Eligible Assignee” means any Person that
meets the requirements to be an assignee under Section 13.17.2(c), (e) and
(f) (subject to such consents, if any, as may be required under
Section 13.17.2(c)).

 

“Eligible Facility” means an “eligible
facility” within the meaning of PUHCA and FERC’s implementing regulations
pertaining thereto.

 

“Embargoed
Person” has the meaning given in Section 6.26.2.

 

“Eminent Domain” means any compulsory
transfer or taking by condemnation, eminent domain or exercise of a similar
power, or transfer under threat of such compulsory transfer or taking, of any
part of the Collateral, by any agency, department, authority, commission,
board, instrumentality or political subdivision of the Project Jurisdiction,
the United States or another Governmental Authority having jurisdiction.

 

“Eminent Domain Proceeds” has the meaning
given in Section 7.5.

 

“Environmental Claims” means any and all
liabilities, losses, administrative, regulatory or judicial actions, suits,
demands, decrees, claims, liens, judgments, warning notices, notices of
noncompliance or violation, investigations, proceedings, removal or remedial
actions or orders, or damages (foreseeable and unforeseeable, including
consequential and punitive damages), penalties, fees, out-of-pocket costs,
expenses, disbursements or attorneys’ or consultants’ fees, relating in any way
to (a) a violation or alleged violation of any Hazardous Substance Law or
Permit issued under any Hazardous Substance Law, (b) a Release or
threatened Release of Hazardous Substances, or (c) any legal or
administrative proceedings relating to any of the above.

 

“Environmental Consultant” means CH2M HILL,
Inc., a Florida corporation.

 

A-9

 

“Equity
Issuance” means any sale or issuance of any membership or other equity
interests by Borrower or any tax equity contribution related to the Project.

 

“ERISA”
means the Employee Retirement Income Security Act of 1974, as amended.

 

“ERISA
Affiliate” means any Person (whether or not incorporated) which is under
common control with Borrower within the meaning of Section 4001(a) of
ERISA or that is treated as a single employer together with Borrower under
Section 414(b) or (c) of the Code (and Section 414(m) and
(o) of the Code solely for purposes of provisions relating to Section 412
and 430 of the Code).

 

“ERISA
Plan” means any employee benefit plan (a) maintained by Borrower or
any ERISA Affiliate, or to which any of them contributed, contributes, or is
obligated to contribute, for its employees or former employees and
(b) covered by Title IV of ERISA or to which Section 412 of the Code
applies.

 

“Eurodollar
Breakage Costs” has the meaning given in Section 2.7.

 

“Eurodollar
Loan” means a Loan that bears interest based upon the Adjusted Eurodollar
Rate as provided herein.

 

“Eurodollar
Rate” means, with respect to any Eurodollar Loan for any Interest Period,
the rate per annum as calculated by the British Bankers’ Association and
obtained through a nationally recognized service such as the Dow Jones Market
Service (Telerate) or Reuters (the “Service”) (or on any successor or
substitute page of such Service, or any successor to or substitute for
such Service, providing rate quotations comparable to those currently provided
on such page of such Service, as determined by the Administrative Agent
from time to time for purposes of providing quotations of interest rates
applicable to dollar deposits in the London interbank market), rounded upward,
if necessary, to the nearest 1/100 of 1%, equal to the offered rate for
deposits in Dollars in amounts greater than $1,000,000 for a period equal to
such Interest Period, commencing on the first day of such Interest Period, at
approximately 11:00 a.m. (London time) on the Interest Rate Determination
Date.  In the event that such rate is not
available at such time for any reason, then the “Eurodollar Rate” with respect
to such Borrowing for such Interest Period shall be the rate (rounded upwards,
if necessary, to the next 1/100th of 1%) at which dollar deposits of $1,000,000
and for a maturity comparable to such Interest Period are offered by the
principal London office of the Administrative Agent in immediately available
funds in the London interbank market at approximately 11:00 a.m., London
time, two Business Days prior to the commencement of such Interest Period.

 

“Event
of Default” has the meaning given in Section 8.1.

 

“Evergreen”
means Evergreen Wind Power II, LLC, a Delaware limited liability company.

 

“Exchange
Act” means the Securities Exchange Act of 1934, as amended from time to
time, and any successor statute.

 

A-10

 

“Excluded
Lender Income Taxes” has the meaning given in Section 2.4.4(a).

 

“Executive Order” has the meaning
given in Section 4.30.

 

“Exempt
Wholesale Generator” means an “exempt wholesale generator” within the
meaning of PUHCA and FERC’s regulations implementing PUHCA.

 

“Federal
Funds Rate” means, for any day, the weighted average of the per annum rates
on overnight federal funds transactions with member banks of the Federal
Reserve System arranged by federal funds brokers as published by the Federal
Reserve Bank of New York for such day (or, if such rate is not so published for
any day, the average rate charged by Administrative Agent on such day on such
transactions as determined by Administrative Agent).

 

“Federal
Reserve Board” means the Board of Governors of the Federal Reserve System.

 

“Fee
Letter” means the letter agreement regarding fees, dated as of February 1,
2010, among Administrative Agent, the Lead Arranger and Sponsor.

 

“FERC”
means the Federal Energy Regulatory Commission and its successors.

 

“Final
Completion” means that (a) Completion shall have occurred and the
Independent Engineer shall have confirmed that all of the conditions to “final
completion” under the Construction Contract (howsoever defined therein), and (b) all
other work under the Construction Contract shall have been completed (other
than amounts in dispute with respect to Construction Contractor or any other
Person, so long as amounts reasonably satisfactory to Administrative Agent
(acting in consultation with the Independent Engineer) have been reserved in
the Construction Account for payment of such amounts (and as to which any
associated Lien falls within the definition of clause (c) of Permitted
Liens)).

 

“FIRREA” means the Federal
Institutions Reform, Recovery and Enforcement Act of 1989.

 

“First Wind O&M” means First Wind O &
M, LLC, a Delaware limited liability company.

 

“FPA” means the Federal Power Act, as
amended, and FERC’s implementing regulations related thereto.

 

“Fund”
means any Person (other than a natural person) that is (or will be) engaged in
making, purchasing, holding or otherwise investing in commercial loans and
similar extensions of credit in the ordinary course of its business.

 

“GAAP”
means generally accepted accounting principles in the United States of America.

 

A-11

 

“Gen
Lead Agreement” means the Tenant in Common Agreement (Generator Lead Line),
dated as of October 20, 2010, between Borrower and Milford I, as may be
joined by Affiliates of Borrower, SCPPA and the Secured Parties from time to
time.

 

“Gen
Lead O&M Agreement” means the Generator Lead Services and Maintenance
Agreement, dated as of October 20, 2010, among Borrower, First Wind
O&M and Milford I, as may be joined by Affiliates of Borrower, SCPPA and
the Secured Parties from time to time.

 

“Governing
Documents” means, with respect to any Person, the certificate or articles
of incorporation, bylaws, operating agreement or other organizational or
governing documents of such Person, and, in particular, (a) in the case of
any corporation, the certificate of incorporation and by-laws (or similar documents)
of such person, (b) in the case of any limited liability company, the
certificate of formation and operating agreement (or similar documents) of such
person, (c) in the case of any limited partnership, the certificate of
formation and limited partnership agreement (or similar documents) of such
person, (d) in the case of any general partnership, the partnership
agreement (or similar document) of such person and (e) in any other case,
the functional equivalent of the foregoing.

 

“Governmental
Authority” means (a) any nation or government (whether domestic or
foreign), (b) any federal, state, provincial, regional, municipal, local,
territorial, or other political, governmental or quasi-governmental subdivision
thereof, including any central bank thereof and any comparable authority,
(c) any other judicial, public, statutory or administrative agency,
authority, board, body, bureau, commission, department, entity or
instrumentality (including any zoning authority, FERC, the SEC, the Comptroller
of the Currency or the Federal Reserve Board) or any subdivision thereof,
(d) any other entity exercising executive, legislative, judicial, taxing,
regulatory or administrative powers or functions of or pertaining to government
or (e) any arbitrator with authority to bind a party at law.

 

“Governmental
Rule” means any constitution, code, statute, law, regulation, ordinance,
rule, judgment, order, decree, permit, concession, grant, franchise, license,
agreement, directive, guideline, treaty, judgment, policy or requirement of, or
other governmental restriction or any similar form of decision of or
determination by, or any interpretation or administration of any of the
foregoing by, any Governmental Authority.

 

“Grant”
means the cash grant offered in lieu of electricity production credits under Section 45
of the Code and energy credits under Section 48 of the Code from the U.S.
Department of Treasury under Section 1603 of Division B of the American
Recovery and Reinvestment Act of 2009.

 

“Grant
Eligible” means that (a) the Project qualifies for the Grant, (b) the
risk of recapture liability is limited to those circumstances described in the
Treasury Guidance; and (c) the Grant application procedures are no more
restrictive than those described in the Treasury Guidance.

 

“Granting
Lender” has the meaning given in Section 13.17.7.

 

A-12

 

“Hazardous
Substances” means (statutory acronyms and abbreviations having the meaning
given them in the definition of “Hazardous Substances Laws”) substances defined
as “hazardous substances,” “pollutants” or “contaminants” in Section 101
of the CERCLA; those substances defined as “hazardous waste,” “hazardous
materials” or “regulated substances” by the RCRA; those substances designated
as a “hazardous substance” pursuant to Section 311 of the CWA; those
substances defined as “hazardous materials” in Section 103 of the HMTA;
those substances regulated as a hazardous chemical substance or mixture or as
an imminently hazardous chemical substance or mixture pursuant to Section 6
or 7 of the TSCA; those substances defined as “contaminants” by Section 1401
of the SDWA, if present in excess of permissible levels; those substances
regulated by the Oil Pollution Act; those substances defined as a pesticide
pursuant to Section 2(u) of the FIFRA; those substances defined as a
source, special nuclear or by-product material by Section 11 of the AEA;
those substances defined as “residual radioactive material” by Section 101
of the UMTRCA; those substances defined as “toxic materials” or “harmful
physical agents” pursuant to Section 6 of the OSHA); those substances
defined as hazardous wastes in 40 C.F.R. Part 261.3; those substances
defined as hazardous waste constituents in 40 C.F.R.  Part 260.10, specifically including
Appendix VII and VIII of Subpart D of 40 C.F.R. Part 261; those substances
designated as hazardous substances in 40 C.F.R. Parts 116.4 and 302.4; those
substances defined as hazardous substances or hazardous materials in 49 C.F.R. Part 171.8;
those substances regulated as hazardous materials or wastes, hazardous
substances, or toxic substances in 40 C.F.R. Part 1910; those substances
regulated as hazardous materials or wastes, hazardous substances, or toxic
substances in any other Hazardous Substances Laws; and those substances
regulated as hazardous materials or wastes, hazardous substances, or toxic
substances in the regulations adopted and publications promulgated pursuant to
said laws, whether or not such regulations or publications are specifically
referenced herein.

 

“Hazardous
Substances Law” means any of:

 

(a)           the Comprehensive Environmental
Response, Compensation, and Liability Act of 1980, as amended (42 U.S.C. Section 9601
et seq.) (“CERCLA”);

 

(b)           the Federal Water Pollution Control
Act (33 U.S.C. Section 1251 et seq.) (“Clean
Water Act” or “CWA”);

 

(c)           the Resource Conservation and
Recovery Act (42 U.S.C. Section 6901 et seq.) (“RCRA”);

 

(d)           the Atomic Energy Act of 1954 (42
U.S.C. Section 2011 et seq.) (“AEA”);

 

(e)           the Clean Air Act (42 U.S.C. Section 7401
et seq.) (“CAA”);

 

(f)            the Emergency Planning and Community
Right to Know Act (42 U.S.C. Section 11001 et seq.)
(“EPCRA”);

 

(g)           the Federal Insecticide, Fungicide,
and Rodenticide Act (7 U.S.C. Section 136 et seq.)
(“FIFRA”);

 

(h)           the Oil Pollution Act of 1990 (P.L.
101-380, 104 Stat. 486);

 

A-13

 

(i)            the Safe Drinking Water Act (42
U.S.C.  Section 300f et seq.) (“SDWA”);

 

(j)            the Surface Mining Control and
Reclamation Act of 1974 (30 U.S.C. Section 1201 et seq.)
(“SMCRA”);

 

(k)           the Toxic Substances Control Act (15
U.S.C. Section 2601 et seq.) (“TSCA”);

 

(l)            the Hazardous Materials
Transportation Act (49 U.S.C. Section 1801 et seq.)
(“HMTA”);

 

(m)          the Uranium Mill Tailings Radiation
Control Act of 1978 (42 U.S.C. Section 7901 et seq.)
(“UMTRCA”);

 

(n)           the Occupational Safety and Health
Act (29 U.S.C. Section 651 et seq.) (“OSHA”);

 

(o)           applicable Project Jurisdiction
statutes related to the release of Hazardous Substances;

 

(p)           Project Jurisdiction ordinances and
regulations related to the release of Hazardous Substances; and

 

(q)           all other federal, state, local and
municipal Governmental Rules, any and all Legal Requirements, and any and all
common law requirements, rules and bases of liability regulating, relating
to, or imposing liability or standards of conduct concerning pollution or
protection of human health or the environment or which otherwise govern
Hazardous Substances, as are now or may at any time hereafter be in effect,
together with the regulations adopted and publications promulgated pursuant to
all foregoing.

 

“IE
Report” has the meaning given in Section 3.1.11.

 

“Improvements”
has the meaning given in the granting clause of the Trust Deed.

 

“Indemnitees”
has the meaning given in Section 5.10.1.

 

“Independent
Consultants” means, collectively, the Insurance Consultant, the Wind
Consultant and the Independent Engineer.

 

“Independent
Engineer” means Garrad Hassan and Partners, Inc.

 

“Independent
Engineer’s Drawdown Certificate” has the meaning given in
Section 3.2.5(b).

 

“Individual
Bailees” means Abdur Rahmann Sharper and Aneesa B. Sharper.

 

“Information”
has the meaning given in Section 13.25.1.

 

A-14

 

“Initial
Period” means the period from the Closing Date to the earlier of (a) 90
days after the Closing Date, and (b) the date that Administrative Agent
notifies Borrower that syndications have been completed.

 

“Insurance
Consultant” means Moore-McNeil LLC.

 

“Insurance
Proceeds” has the meaning given in Section 7.4.2.

 

“Insurance
Proceeds Account” has the meaning given in Section 1.1 of the
Depositary Agreement.

 

“Interconnection
Agreement” means the Generator Interconnection Agreement, dated as of October 12,
2010, between Interconnector and Borrower.

 

“Interconnector”
means Intermountain Power Agency, a political subdivision of the State of Utah.

 

“Interest
Payment Dates” shall be the dates described in Section 2.1.2(c).

 

“Interest
Period” means, with respect to any Eurodollar Loan comprising part of the
same Borrowing, initially, the time period selected by Borrower under
Section 2.1.2(d) or otherwise provided for pursuant to this Agreement
which commences on the first day of such Loan, or the effective date of any
conversion (as the case may be) and ends on the last day of such time period,
and thereafter, each subsequent period commencing on the last day of the
immediately preceding Interest Period and ending on the last day of the period
selected by Borrower or provided for pursuant to this Agreement; provided
that no single day shall be deemed to be a part of two Interest Periods.

 

“Interest
Rate” means the Base Rate or the Adjusted
Eurodollar Rate, as the case may be.

 

“Interest
Rate Determination Date” means, with respect to any Interest Period, two
Business Days prior to the first day of such Interest Period.

 

“Joint
Bookrunner” has the meaning given in the preamble.

 

“Joint
Lead Arranger” has the meaning given in the preamble.

 

“Lead
Arranger” has the meaning given in the preamble.

 

“Leases”
means “Ground Leases” as such term is defined in the Trust Deed.

 

“Legal
Requirements” means, as to any Person, the Governing Documents of such
Person, any requirement under a Permit, and any Governmental Rule in each
case applicable to or binding upon such Person or any of its properties or to
which such Person or any of its property is subject.

 

A-15

 

“Lender”
or “Lenders” means the banks and other financial institutions (including
any insurance company or other financial institution (whether a corporation,
partnership, trust or other entity) that are or become parties to this
Agreement and their successors and assigns.

 

“Lending
Office” means, with respect to any Lender, the office designated as such to
Administrative Agent and Borrower from time to time.

 

“Letter
of Credit Facility” means the letter of credit facility in favor of First
Wind Utah Holdings, LLC, a Delaware limited liability company, by The Royal
Bank of Scotland plc, as administrative agent and fronting bank, and various
financial institutions, pursuant to that certain Reimbursement Agreement, dated
as of March 23, 2010, and documents related thereto.

 

“Lien”
means, with respect to any property or asset, any mortgage, trust deed, deed of
trust, lien, pledge, charge, security interest, or encumbrance of any kind,
whether or not filed, recorded or otherwise perfected or effective under
applicable law, as well as the interest of a vendor or lessor under any
conditional sale agreement, capital lease or other title retention agreement
relating to such asset.

 

“Loan”
has the meaning given in Section 2.1.1(a).

 

“Loan
Availability Period” means the period from the Closing Date to the Maturity
Date.

 

“Loan
Commitment” means, at any time with respect to each Lender, such Lender’s
Proportionate Share of the Total Loan Commitment at such time.

 

“Major
Project Documents” means the Construction Contract, the Shared Facilities
Agreement, the Gen Lead Agreement the PPA, the O&M Agreements, the Transportation
Agreement, the Interconnection Agreement, the Leases, the Storage Agreements
(until the turbines are removed from the applicable location), Turbine Supply
Agreement, any guaranty agreements related to the foregoing executed by Persons
in favor of Borrower (including the RMT Guaranty), the Administrative Services
Agreement, dated as of Closing Date, between Borrower and First Wind Energy,
LLC, the Easements, the BLM Right of Way (Phase II), the BLM Right of Way
(Generator Lead Line), the SITLA Right of Way and, unless otherwise agreed by
Administrative Agent prior to its execution and delivery, any Additional
Project Documents.

 

“Major
Project Participants” means, without duplication, Borrower, Pledgor,
Operators, SCPPA, Interconnector, Milford I, Construction Contractor
(until the expiration of the warranty period under the Construction Contract
and complete performance by the Construction Contractor), the Bailees (until
the turbines are removed from the applicable location), the Turbine Supplier (until
expiration of the warranty period under the Turbine Supply Agreement and
complete performance by the Turbine Supplier), E.W. Wylie Corporation, a North
Dakota corporation (until complete performance under the Transportation
Agreement), First Wind Energy, LLC, any other Person which provides any
guaranty agreement which is a Major Project Document (including RMT Parent),
and to the extent not already included in this list, any counterparty to a
Major Project Document (until expiration of any warranty period thereunder and
complete performance by such counterparty).

 

A-16

 

“Mandatory
Prepayment” has the meaning given in Section 2.1.7(c).

 

“Material
Adverse Effect” means an event, circumstance, condition or occurrence of
whatever nature that materially and adversely affects (a) the business,
assets (including the Project), property, results of operation or financial
condition of Borrower, (b) Borrower’s rights to the Project and the
Project assets, (c) Borrower’s or any other Major Project Participant’s
ability to perform its obligations under the Operative Documents, (d) the
value, validity or priority of the Secured Parties’ security interests in the
Collateral, or (e) the validity or enforceability of any Operative
Document (including the ability of the Secured Parties to enforce any of their
remedies thereunder).

 

“Maturity”
or “maturity” means, with respect to any Loan, Borrowing, interest, fee
or other amount payable by Borrower under the Credit Documents, the date such
Loan, Borrowing, interest, fee or other amount becomes due, whether upon the
stated maturity or due date, upon acceleration or otherwise.

 

“Maturity
Date” means December 13, 2011.

 

“Maximum
Rate” has the meaning given in Section 13.24.

 

“Maximum
SCPPA Cure Amount” means $2,500,000.

 

“Milford
I” means Milford Wind Corridor Phase I, LLC, a Delaware limited liability
company.

 

“Minimum
Notice Period” means (a) prior to 11:00 a.m. at least three
Business Days before the date of any Borrowing, continuation or conversion of a
Type of Loan resulting in whole or in part in one or more Eurodollar Loans and
(b) prior to 10:00 a.m. on the Business Day of any Borrowing or
conversion of a Type of Loan resulting in only Base Rate Loans.

 

“Minor
Project Documents” means each of the Major Project Documents with the
exception of (a) the PPA, (b) the Turbine Supply Agreement, (c) the
Construction Contract, (d) the RMT Guaranty, (e) the Operations
Support Agreement, to be entered into after the Closing Date, between Borrower
and General Electric International Incorporated, a Delaware corporation, and (f) the
Interconnection Agreement.

 

“Minor
Project Participants” means each of the Major Project Participants with the
exception of (a) SCPPA, (b) the Turbine Supplier, (c) Construction
Contractor, (d) RMT Parent, (e) General Electric International, Inc.,
a Delaware corporation, and (f) Interconnector.

 

“Moody’s”
means Moody’s Investors Service, Inc.

 

“Mortgaged
Property” has the meaning given in the granting clause of the Trust Deed.

 

“Multiemployer
Plan” means a “multiemployer plan” (as such term is defined in
Section 3(37) or 4001(a)(3) of ERISA) to which any Borrower or any
ERISA Affiliate 

 

A-17

 

contributes
or is obligated to contribute for its employees or under which Borrower or any
ERISA Affiliate has any material obligations.

 

“Net Cash Proceeds” means:

 

(a)           with
respect to any sale of assets, the excess, if any, of (i) the sum of cash or instruments received by or for the account of
Borrower in connection with such sale of assets (including any cash or
instruments received by way of deferred payment pursuant to, or by monetization
of, a note receivable or otherwise, but only as and when so received) minus (ii) the sum of any bona
fide costs incurred in connection with such sale of assets, including (A) the
principal amount of, premium or penalty (if any) and interest on any Debt
(other than Loans) that is required to be repaid in connection with such sale
of assets to the extent such amounts were not deducted in determining the
amount referred to in clause (i), (B) the reasonable and customary out of
pocket costs, fees, commissions, premiums and expenses (including attorneys’
fees, investment banking fees, survey costs, title insurance premiums and
related search and recording charges and other customary expenses, and
brokerage, consultant and other customary fees) incurred by Borrower in
connection with such sale of assets to the extent such amounts were not deducted
in determining the amount referred to in clause (i), (C) federal, state,
foreign and local sales taxes payable in connection with such sale of assets,
and (D) any reserve for adjustment in respect of (i) the sale price
of such asset or assets established in accordance with GAAP and (ii) any
liabilities associated with such asset or assets and retained by Borrower after
the sale of assets thereof, including pension and other post-employment benefit
liabilities and liabilities related to environmental matters or against any
indemnification obligations associated with such transaction; provided
that any portion of the reserves or liabilities contemplated by this clause (D) that
are later reversed or cancelled will become Net Cash Proceeds at the time of
such reversal or cancellation;

 

(b)           with
respect to the incurrence or issuance of any Debt by Borrower, the excess if
any, of (i) the sum of the cash
or instruments received by or for the account of such Person in connection with
such incurrence or issuance, minus (ii) the
underwriting discounts and commissions or other similar payments, and other
reasonable and customary out of pocket costs, fees, commissions, premiums and
expenses incurred by Borrower in connection with such incurrence or issuance to
the extent such amounts were not deducted in determining the amount referred to
in clause (i);

 

(c)           with
respect to any Equity Issuance, the excess of (i) the sum of
the cash or instruments received by or for the account of Borrower in
connection with such sale or issuance, minus (ii) the
underwriting discounts and commissions or similar payments, and other
reasonable and customary out of pocket costs, fees, commissions, premiums and
expenses, incurred by Borrower in connection with such sale or issuance to the
extent such amounts were not deducted in determining the amount referred to in
clause (i); and

 

(d)           with
respect to any proceeds of or under any insurance, indemnity, condemnation
awards, warranty or guaranty in connection with the occurrence of any Eminent
Domain or property insurance policy, the excess, if any, of (i) the sum of cash or instruments received by or for the account of
Borrower in connection with such Eminent Domain or insurance, minus (ii) the reasonable and customary out of pocket
costs and expenses incurred by 

 

A-18

 

Borrower in connection with the collection,
enforcement, negotiation, consummation, settlement, proceedings, administration
or other activity related to the receipt or collection of the relevant proceeds
to the extent such amounts were not deducted in determining the amount referred
to in clause (i).

 

“Non-Advancing
Lender” has the meaning given in Section 11.14.

 

“Nonrecourse
Persons” has the meaning given in Article 10.

 

“Notice
of Borrowing” means a notice in the form of Exhibit C-1,
appropriately completed in accordance with the instructions contained in such
form.

 

“Notice
of Commencement” shall have the meaning given in Utah Code Ann.
§ 38-1-31.

 

“Notice
of Interest Terms” means a notice from Borrower to Administrative Agent, in
substantially the form of Exhibit C-2, appropriately completed in
accordance with the instructions contained in such form.

 

“O&M
Agreements” means the (a) Project O&M Agreement, (b) the
Shared Facilities O&M Agreement, (c) the Gen Lead O&M Agreement,
and (d) the Operations Support Agreement, to be entered into after the
Closing Date, between Borrower and General Electric International Incorporated,
a Delaware corporation.

 

“O&M
Costs” means, for any period, cash amounts incurred and paid by Borrower
(or paid by an Affiliate of Borrower; provided that satisfactory
evidence of such payment is provided to Administrative Agent) for the operation
and maintenance of the Project or any portion thereof and for the purchase of
goods and services in connection therewith, including (a) premiums for
insurance policies, (b) the cost of consumables, (c) costs of
obtaining any other materials, supplies, utilities or services for the Project,
(d) costs of maintaining, renewing and amending Permits,
(e) franchise, licensing, property, real estate, sales and excise taxes,
(f) general and administrative expenses, (g) employee salaries, wages
and other employment-related costs, (h) business management and administrative
service fees, (i) costs required to be paid by the Project under any
Project Document or Credit Document (other than scheduled Debt Service and
Project Costs but including scheduled interest or lease payments in respect of
other Permitted Debt) or to satisfy any Legal Requirement or obtain or maintain
any Permit, (j) legal, accounting and consulting fees and other
transaction costs and all other fees payable to the Lenders (other than amounts
constituting scheduled Debt Service), (k) necessary capital expenditures (other
than capital expenditures made in connection with the repair or restoration of
any casualty suffered by the Project to the extent funded with insurance or
similar proceeds applied pursuant to Section 7.4 or infusions of equity
pursuant to the Credit Documents), and (l) all other fees and expenses
necessary for the continued operation and maintenance of the Project and the
conduct of the business of the Project, but exclusive in all cases of non-cash
charges and also exclusive of all interest charges, Commitment Fee and charges
for the payment or amortization of principal of Loans.  O&M Costs shall not include
(i) depreciation, (ii) payments for restoration or repair of the
Project from the Insurance Proceeds Account or (iii) income taxes.

 

A-19

 

“Obligations” means and includes all
loans, advances, debts, liabilities, and obligations, howsoever arising, owed
by Borrower (or, if such term is used by reference to any other Person, by such
Person) to any of the Secured Parties of every kind and description (whether or
not evidenced by any note or instrument and whether or not for the payment of
money), direct or indirect, absolute or contingent, due or to become due, now
existing or hereafter arising, pursuant to the terms of the Credit Documents, including
(a) all interest  (including
interest which, but for the filing of a petition in bankruptcy, would have
accrued on any Obligation, whether or not a claim is allowed for such interest
in the related bankruptcy proceeding), fees, charges, expenses, attorneys’ fees
and accountants fees  chargeable to
Borrower (or such Person) and  payable by
Borrower (or such Person) hereunder or thereunder,  and
(b) the due and punctual performance of all covenants, agreements,
obligations and liabilities of Borrower (or such Person) to such parties under
or pursuant to the Credit Documents.

 

“OFAC” means the U.S. Treasury
Department Office of Foreign Assets Control.

 

“Operating
Budget Category” means (a) individually, any line item category set
forth in that portion of the then-current Annual Operating Budget showing
sources and uses of Project funds, and (b) collectively, all line item
categories set forth in that portion of the then-current Annual Operating
Budget showing sources and uses of Project funds.

 

“Operative
Documents” means, collectively, the Credit Documents and the Project
Documents.

 

“Operators”
means (a) General Electric International Incorporated, a Delaware
corporation, and (b) First Wind O&M.

 

“Other
Taxes” has the meaning given in Section 2.4.4(a).

 

“Parent”
means Milford II Utah Holdings, LLC, a Delaware limited liability company.

 

“Participant”
has the meaning given in Section 13.17.3.

 

“Patriot
Act” has the meaning given in Section 4.30(a).

 

“PBGC” means the Pension Benefit Guaranty
Corporation established pursuant to Subtitle A of Title IV of ERISA.

 

“Performance LC Distribution” has the meaning
given in Section 6.6.

 

“Performance Tests” means the conduct of any “Performance
Tests” or “acceptance tests” (however defined) required under the Construction
Contract, and any other similar tests, of the Project or any material portion
thereof, excluding the power curve tests.

 

“Permit”
means any action, approval, consent, waiver, exemption, variance, franchise,
order, permit, authorization, right or license of or from a Governmental
Authority or any other Person.

 

A-20

 

“Permit
Schedule” has the meaning given in Section 3.1.14(a).

 

“Permitted
Debt” means (a) Debt incurred under the Credit Documents,
(b) Debt pursuant to the terms of a Project Document (but not for borrowed
money), either not more than 90 days past due or being contested in good
faith, (c) trade or other similar Debt incurred in the ordinary course of
business (but not for borrowed money), either not more than 90 days past
due or being contested in good faith, (d) Contingent Obligations, to the
extent otherwise constituting Debt, including those related to (i) the
endorsement of negotiable instruments received in the normal course of its
business, and (ii) Contingent Obligations incurred with respect to any
Applicable Permit or Operative Document, (e) prior to Commercial
Operation, Contingent Obligations, to the extent otherwise constituting Debt,
including those related to the acquisition of goods, supplies or merchandise in
the normal course of business or normal trade credit, (f) prior to
Commercial Operation, purchase money obligations incurred to finance the
purchase price of discrete items of equipment not comprising an integral part
of the Project that extend only to the equipment being financed in an aggregate
amount of secured principal and capital lease obligations not exceeding
$250,000 at any one time outstanding, and (g) prior to Commercial
Operation, obligations in respect of surety bonds or similar instruments in an
aggregate amount not exceeding $125,000 at any one time outstanding.

 

“Permitted
Investments” means (a) securities issued or directly and fully
guaranteed or insured by the United States of America or any agency or instrumentality
thereof (provided that the full faith and credit of the United States of
America is pledged in support thereof) having a maturity not exceeding one year
from the date of issuance, (b) interest-bearing deposit accounts,
including time deposits and certificates of deposit, of any Lender or any
domestic or foreign commercial bank whose outstanding long-term debt is rated
at least A-1 or the equivalent thereof by S&P or at least P-1 or the
equivalent thereof by Moody’s having capital and surplus in excess of
$500,000,000 having a maturity not exceeding 90 days from the date of
acquisition, (c) commercial paper issued by any domestic corporation rated
at least A-1 or the equivalent thereof by S&P or at least P-1 or the
equivalent thereof by Moody’s and, in each case, having a maturity not
exceeding 90 days from the date of acquisition, (d) fully secured
repurchase obligations with a term of not more than seven days for underlying
securities of the types described in clause (a) above entered into
with any bank meeting the qualifications established in clause (b) above,
(e) high-grade corporate bonds rated at least AA or the equivalent thereof
by S&P or at least Aa2 or the equivalent thereof by Moody’s having a
maturity not exceeding 90 days from the date of acquisition,
(f) banker’s acceptances drawn on and accepted by any domestic or foreign
commercial bank whose long-term senior unsecured debt is rated at least A or
the equivalent thereof by S&P or at least A2 or the equivalent thereof by
Moody’s, (g) money market mutual funds whose investment criteria are
substantially similar to items (a) through (f) of this
definition, (h) instruments issued by an investment company rated at least
A or the equivalent thereof by S&P or at least A2 or the equivalent thereof
by Moody’s having a portfolio consisting of 95% or more of the securities
described in items (a) through (g) of this definition,
(i) investment contracts pursuant to which moneys are deposited (to bear
interest at an agreed rate) with a bank, insurance company or other financial
institution whose long-term senior unsecured debt is rated at least A or the
equivalent thereof by S&P or at least A2 or the equivalent thereof by Moody’s,
(j) tax exempt short-term securities having at least a credit rating A or
greater by S&P or Prime or greater by Moody’s maturing or being due or
payable in full not more than one hundred and eighty days after acquisition
thereof; (k) money 

 

A-21

 

market
funds for which the Depositary or any of its Affiliates is investment manager
or advisor; (l) any other investments approved by Collateral Agent (acting
with the consent of the Required Lenders) in a writing delivered to the
Depositary; and (m) the CoBank Equities and any other stock or securities
of, or Investments in, CoBank or its investment services or programs.

 

“Permitted
Liens” means (a) Liens granted in favor of the Secured Parties under
the Collateral Documents and the rights and interests of any Secured Party as
provided therein; (b) statutory Liens for any current tax, assessment or
other governmental charge not yet due and payable, and liens for taxes,
assessments or governmental charges being contested in accordance with the
requirements of Section 5.18, (c) materialmen’s, mechanics’, workers’,
repairmen’s, employees’ or other like Liens, arising in the ordinary course of
business or in connection with the construction of the Project, either for
amounts not yet delinquent or for amounts being contested in good faith and by
appropriate proceedings, so long as (i) such proceedings shall not involve
any substantial danger of the sale, forfeiture or loss of the Project, the Site
or any Easements, as the case may be, title thereto or any interest therein and
shall not interfere in any material respect with the use or disposition of the
Project, the Site or any Easements, (ii) a bond or other security
reasonably acceptable to Administrative Agent has been posted or provided in
such manner and amount as to assure Administrative Agent that any amounts
determined to be due will be promptly paid in full when such contest is
determined, or (iii) adequate cash reserves have been provided therefor;
(d) Liens arising out of judgments or awards so long as an appeal or
proceeding for review is being prosecuted in good faith and for the payment of
which adequate reserves, bonds or other security reasonably acceptable to
Administrative Agent have been provided or are fully covered by insurance;
(e) Title Exceptions; (f) Liens, deposits or pledges to secure
statutory obligations or performance of bids, tenders, contracts (other than
for the repayment of borrowed money) or leases, or for purposes of like general
nature in the ordinary course of its business, not to exceed $500,000  in the aggregate at any time, and with any
such Lien to be released as promptly as practicable; (g) other Liens
incident to the ordinary course of business that are not incurred in connection
with the obtaining of any loan, advance or credit and that do not in the aggregate
materially impair the use of the property or assets of Borrower or the value of
such property or assets for the purposes of such business; (h) involuntary
Liens as contemplated by the Operative Documents (including a lien of an
attachment, judgment or execution) securing a charge or obligation, on any of
Borrower’s property, either real or personal, whether now or hereafter owned in
the aggregate sum of less than $500,000; (i) pledges and deposits made in
the ordinary course of business in compliance with workers’ compensation,
unemployment insurance and other social security laws or regulations; (j) any
zoning, building or similar laws or rights reserved to or vested in any
Governmental Authority; and (k) CoBank’s statutory Lien on the Borrower’s
CoBank Equities.

 

“Person”
means any natural person, corporation, partnership, limited liability company,
firm, association, Governmental Authority or any other entity whether acting in
an individual, fiduciary or other capacity.

 

“Phase
I Environmental Report” means the Phase I Environmental Site Assessment,
dated as of January 2009, the Phase I Environmental Site Assessment
Update, dated as of March 2010, and a second Phase I Environmental Site
Assessment Update, dated as of September 1, 2010, each prepared by the
Environmental Consultant.

 

A-22

 

“Plans
and Specifications” means the plans and specifications for the construction
and design of the Project as set forth in the Construction Contract, as updated
from time to time, and any other similar design, engineering or technical
documents referred to in the Construction Contract.

 

“Platform”
has the meaning given in Section 13.30.

 

“Pledge
Agreement” means, the Pledge and Security Agreement, dated as of the
Closing Date, in substantially the form of Exhibit D-3, among
Pledgor, Borrower and Collateral Agent.

 

“Pledgor”
means Milford II Holdings, LLC, a Delaware limited liability company.

 

“PPA”
means the Power Purchase Agreement, dated as of March 1, 2010, between SCPPA
and Borrower.

 

“Preliminary
Notice” shall have the meaning given in Utah Code Ann. § 38-1-32.

 

“Prepayment
Amount” means the “Prepayment Amount” as such term is defined in the PPA.

 

“Project”
means the approximately 102 MW wind power generation plant and an
undivided ownership interest in the 345 kV generator lead line, operation and
maintenance building, roads and substation to be located on the Site and the
Easements.

 

“Project
Budget” has the meaning given in Section 3.1.19.

 

“Project
Budget Category” means any line item category set forth in that portion of
the Project Budget showing sources and uses of Project funds, as in effect on
the Closing Date.

 

“Project
Costs” means all costs associated with the development, design,
engineering, construction, testing, installation, equipping, assembly,
inspection, completion, and start-up of the Project and preparation of the
Site, including: (a) all amounts payable under the Project Documents,
including liquidated damages payable thereunder, any state taxes on equipment,
costs incurred for design, site acquisition and preparation, permitting,
manufacturing construction, project management, installation, and testing, any
utility interconnection costs payable by Borrower pursuant to the
Interconnection Agreement and all water and wastewater disposal interconnection
and pumping station or water well costs and all project development expenses
and fees incurred by Pledgor and Borrower; (b) financing, advisory, legal
and other fees; (c) all other Project-related costs and other development
costs (including all Site related costs payable to any Person, including
landowners or any Governmental Authority), insurance costs, management services
fees and expenses and expenses to complete the development, design, construction
and financing of the Project; (d) contingency funds, start-up costs and
initial working capital costs; (e) O&M Costs; (f) interest and
fees incurred on or in respect of any Loan or the Loan Commitment pursuant to
this Agreement; (g) costs associated with insurance and taxes; (h) fees
and expenses associated with arranging the credit facility under the Credit 

 

A-23

 

Documents;
(i) deposits made in connection with the Project Documents to the
applicable counterparties; (j) the purchase price and other payments made
in connection with the purchase, scope, modification, remediation, storage and
transportation of the turbines; (k) any deposit into the SCPPA Cure
Reserve Account as provided in Section 9.2; (l) any owner-furnished
equipment and spare parts; and (m) any support for Borrower’s contractual
and regulatory obligations which are deposited in to escrow account in form and
substance reasonably satisfactory to Administrative Agent so long as such
contractual or regulatory obligations require the drawing of such support to be
applied to such obligation.

 

“Project
Document Modification” has the meaning given in Section 6.12.1.

 

“Project
Documents” means, without duplication, the Major Project Documents and any
other agreement or document relating to the development, construction or
operation of the Project to which Borrower is a party.

 

“Project
Jurisdiction” means the State of Utah.

 

“Project
O&M Agreement” means the Project O&M Agreement, dated as
October 20, 2010, between Borrower and First Wind O&M.

 

“Project
Revenues” means, without duplication, all income and cash receipts of
Borrower derived from the ownership or operation of the Project, including
payments received by Borrower under the PPA, the Construction Contract, the
Turbine Supply Agreement and the O&M Agreements, proceeds of any delay in
start up or business interruption or liability insurance (to the extent such
liability insurance proceeds represent reimbursement of third party claims
previously paid by Borrower), income derived from the sale or use of electric
capacity or energy transmitted or distributed or ancillary services produced by
the Project, payments for transmission rights and investment income on amounts
in the Accounts (solely to the extent deposited in the applicable Account); provided,
however, “Project Revenues” shall not include liquidated damages
received prior to Commercial Operation.

 

“Project
Schedule” means the schedule for construction and completion of the Project
as set forth in the schedule attached as Exhibit G-3.

 

“Proportionate Share” means the percentage
interest of each Lender in the Total Loan Commitment as set forth on Exhibit H.

 

“Prudent
Industry Practices” means those practices, methods, equipment,
specifications and standards of safety and performance, as the same may change
from time to time, as are commonly used by wind powered electric generation
stations in the region and of a type and size similar to the Project as good,
safe and prudent engineering practices in connection with the design,
construction, operation, maintenance, repair and use of electrical and other
equipment, facilities and improvements of such electrical station, with
commensurate standards of safety, performance, dependability, efficiency and
economy.  “Prudent Industry Practices”
does not necessarily mean one particular practice, method, equipment
specification or standard in all cases, but is instead intended to encompass a
broad range of acceptable practices, methods, equipment specifications and
standards.

 

A-24

 

“PUHCA”
means the Public Utility Holding Company Act of 2005, as it may be amended (42
U.S.C. §§ 16451-16463), and FERC’s implementing regulations related thereto (18
C.F.R. Part 366).

 

“Rate
Margin” means for all Eurodollar Loans 3.00%, and for all Base Rate Loans
2.00%.

 

“Real
Property” means the real property, including the Site and the Improvements,
which is the subject of the Trust Deed.

 

“Recapture
Event” means any event that could lead to a required repayment of all or
any portion of the Grant as a result of a disallowance claim or a recapture as
set forth in Section 1603 of the American Recovery and Reinvestment Act of
2009 and the Treasury Guidance.

 

“Register”
has the meaning given in Section 2.9.

 

“Regulation
D” means Regulation D of the Board of Governors of the Federal Reserve
System (or any successor).

 

“Regulatory
Change” means any change after the Closing Date in federal, state, local or
foreign laws, regulations, Legal Requirements or requirements under Applicable
Permits, or the adoption or making after such date of any interpretations,
directives or requests of or under any federal, state, local or foreign laws,
regulations, Legal Requirements or requirements under Applicable Permits
(whether or not having the force of law) by any Governmental Authority charged
with the interpretation or administration thereof.

 

“Related
Parties” means, with respect to any specified Person, such Person’s
Affiliates and the respective directors, officers, employees, agents and
advisors of such Person and such Person’s Affiliates.

 

“Release”
means disposing, discharging, injecting, spilling, leaking, leaching, dumping,
pumping, pouring, emitting, escaping, emptying, seeping, placing or the like,
into or upon any land or water or air, or otherwise entering into the
environment.

 

“Remedial
Plan” has the meaning given in Section 5.13.2.

 

“Repayment
Account” has the meaning given in Section 1.1 of the Depositary
Agreement.

 

“Replacement
Project Participant” means, with respect to any Minor Project Participant,
any Person having credit, or acceptable credit support, and/or experience, as
applicable, equal to or greater than that of the replaced Minor Project
Participant on the date that the applicable Minor Project Document was entered
into (as reasonably determined by Administrative Agent) who, pursuant to a
definitive agreement, assumes the remaining obligations of the replaced Minor
Project Participant under the applicable Minor Project Document on terms and
conditions (taken as a whole) substantially similar to or more favorable 

 

A-25

 

to
Borrower than those applicable to the replaced Minor Project Participant
pursuant to the applicable Minor Project Document (as reasonably determined by
Administrative Agent).

 

“Reportable
Event” means any of the events set forth in Section 4043(b) or (c) of
ERISA for which notice to the PBGC has not been waived.

 

“Required
Lenders” means, at any time, Lenders having Proportionate Shares which in
the aggregate exceed 50%.  Notwithstanding the foregoing, the Loan
Commitment of, and the portion of the Loans held or deemed held by, any
Defaulting Lender shall be excluded for purposes of making a determination of
Required Lenders.

 

“Reserve
Requirement” means, for any Interest Period for any Eurodollar Loans, the
average maximum rate (expressed as a percentage) at which reserves (including
any marginal, supplemental or emergency reserves) are required to be maintained
during the Interest Period therefor under Regulation D by member banks of the
Federal Reserve System in New York City with deposits exceeding $1,000,000,000
against “Eurocurrency liabilities” (as such term is used in
Regulation D).  Without limiting the
effect of the foregoing, the Reserve Requirement shall reflect any other
reserves required to be maintained by such member banks by reason of any
Regulatory Change against (a) any category of liabilities which includes
deposits by reference to which the Eurodollar Rate or Eurodollar Loans is to be
determined, (b) any category of liabilities or extensions of credit or
other assets which include Eurodollar Loans or (c) any category of
liabilities or extensions of credit which are considered irrevocable commitments
to lend.  Eurodollar Loans shall be
deemed to constitute Eurocurrency liabilities and to be subject to such reserve
requirements without benefit of or credit for proration, exceptions or offsets
which may be available from time to time to any Lender under Regulation D.

 

“Responsible
Officer” means, as to any Person, its president, chief executive officer,
any vice president, treasurer, or secretary or any natural Person who is a
managing general partner or manager or managing member of a limited liability
company (or any of the preceding with regard to any such managing general
partner, manager or managing member).

 

“Revenue
Account” has the meaning given in Section 1.1 of the Depositary
Agreement.

 

“Rights
of Way” has the meaning given in Section 3.1.24(g).

 

“RMT
Guaranty” means the Parent Company Guaranty dated as of September 15,
2010 between RMT Parent and Borrower.

 

“RMT
Parent” means Alliant Energy Corporation, a Wisconsin corporation.

 

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

 

“Sale
Proceeds” has the meaning given in Section 7.6.2.

 

“Santander”
has the meaning given in the preamble.

 

A-26

 

“SCPPA”
means the Southern California Public Power Authority.

 

“SCPPA
Consent” means that certain Consent and Agreement dated as of the date
hereof between Collateral Agent/Administrative Agent and SCPPA.

 

“SCPPA
Cure Loan” has the meaning given in Section 9.2

 

“SCPPA
Cure Period” means (a) with respect to monetary Events of Default, 30
days from SCPPA’s receipt of notice of such Event of Default, and (b) with
respect to non-monetary Events of Default, 60 days from SCPPA’s receipt of
notice of such Event of Default (provided, that such 60 day period shall
be extended to 90 days if SCPPA is diligently pursuing appropriate action to
cure and has made progress toward curing such non-monetary Event of Default
during such 60 day period).

 

“SCPPA
Cure Reserve Account” has the meaning given in Section 1.1 of the
Depositary Agreement.

 

“SEC”
means the United States Securities and Exchange Commission.

 

“Secured
Parties” means Administrative Agent, Collateral Agent, the Lenders, and
each of their respective successors, transferees and permitted assigns and
shall include, without limitation, all former Administrative Agents, Collateral
Agents and Lenders to the extent that the Obligations owing to such Persons
were incurred while such Persons were in such capacities and such Obligations
have not been paid or satisfied in full; provided, that no Affiliate of
Sponsor shall be a “Secured Party” under any Credit Document.

 

“Securities
Act” means the Securities Act of 1933, as amended from time to time, and
any successor statute.

 

“Security
Agreement” means the Security Agreement, dated as of the Closing Date, in
substantially the form of Exhibit D-2, between Borrower and
Collateral Agent.

 

“Settlement
Amount” has the meaning given in Section 5.10.6(b).

 

“SGAS”
has the meaning given in the preamble.

 

“Shared
Facilities Agreement” means the Tenant in Common Agreement (Site Common
Facilities), dated as of October 20, 2010, between Borrower and Milford I.

 

“Shared
Facilities Agreement O&M Agreement” means the Site Common Facilities
Services and Maintenance Agreement, dated as of October 20, 2010, among
Borrower, Milford I and First Wind O&M.

 

“Site”
has the meaning given in the Trust Deed (as they may be amended from time to
time).

 

“Site
Common Facilities” has the meaning given in the PPA.

 

A-27

 

“SITLA”
means the State of Utah, Institution of Trust Lands Administration.

 

“SITLA
Lease” means the Amended and Restated Special Use Lease Agreement No. 1599B, with an effective date of April 22, 2009, between SITLA
and Borrower.

 

“SITLA
Right of Way” means the Easement No. 1280 between SITLA and Milford I.

 

“Solvent”
means, with respect to any Person on a particular date, that, at fair
valuations, the sum of such Person’s assets is greater than all of such Person’s
debts.

 

“SPC”
has the meaning given in Section 13.17.7.

 

“Sponsor”
means First Wind Holdings, LLC, a Delaware limited liability company.

 

“Storage
Agreements” means (a) the Lease Agreement, dated as of August 16,
2010, by and between Danville Properties, LLC, a New York corporation, and
Windfarm Prattsburgh, LLC, a Delaware limited liability company, as subleased
to Borrower pursuant to the Storage Sublease, dated as of October 20,
2010, by and between Windfarm Prattsburgh, LLC, a Delaware limited liability
company, and Borrower, (b) the Storage Sublease, dated as of September 1,
2010, by and between Evergreen and AKTEM Business Park, LLC, as subleased to
Borrower pursuant to the Storage Sub-Sublease Houlton, Maine: Evergreen to
Milford, dated as of October 20, 2010, by and between Evergreen and Borrower,
and (c) the Storage Lease, dated as of July 6, 2010, by and among the
Individual Bailees and Evergreen, as subleased to Borrower pursuant to the
Storage Sublease Oakfield, Maine: Evergreen to Milford, dated as of October 20,
2010, by and between Evergreen and Borrower.

 

“Subject
Claims” has the meaning given in Section 5.10.1(a).

 

“Subordinated
Loan Facility” means the term loan in favor of First Wind Holdings, LLC, a
Delaware limited liability company, by Credit Suisse AG, Cayman Islands Branch,
as administrative agent, and various financial institutions, pursuant to that
certain Term Loan Agreement, dated as of March 23, 2010, and documents
related thereto.

 

“Subsidiary”
means, as to any Person, a corporation, partnership, limited liability company
or other entity of which such Person: (a) owns 10% or more of the shares
of stock or other ownership interests having ordinary voting power (other than
stock or such other ownership interests having such power only by reason of the
happening of a contingency) to elect a majority of the board of directors or
other managers of such corporation, partnership or other entity and/or
(b) controls the management, directly or indirectly through one or more
intermediaries.  Unless otherwise
qualified, all references to a “Subsidiary” or to “Subsidiaries” in this
Agreement shall refer to a Subsidiary or Subsidiaries of a Person.

 

“Tax
Equity Contribution Conditions” means (a) a tax equity contribution
has been made to the Borrower (or an Affiliate of the Borrower and such
proceeds have been contributed to the Borrower) and (b) the Net Cash
Proceeds of such tax equity contribution have 

 

A-28

 

been
applied to prepay the Loans pursuant to Section 2.1.7(c) in an amount
at least equal to the expected proceeds of the Grant as of the Closing Date.

 

“Taxes”
has the meaning given in Section 2.4.4(a).

 

“Title
Exception” means the exceptions to title set forth in the Title Policy.

 

“Title
Insurer” means the First American Title Insurance Company.

 

“Title
Policy” means that certain policy of the title insurance issued by the
Title Insurer dated as of the Closing Date, as provided in Section 3.1.23,
including all amendments thereto, endorsements thereof and substitutions or
replacements therefor.

 

“Total
Loan Commitment” has the meaning given in Section 2.2.1.

 

“Transmission
Line” has the meaning given in the PPA.

 

“Transportation
Agreement” means Transportation Facilitation Agreement, dated as of September 15,
2010, by and between Borrower (as assignee from First Wind Energy, LLC) and
E.W. Wylie Corporation, a North Dakota corporation.

 

“Treasury
Guidance” means the U.S. Treasury Department’s program guidance publication
entitled “Payments for Specific Energy Property in Lieu of Tax Credits under
the American Recovery and Reinvestment Act of 2009,” dated July 2009 as
revised in March 2010, and any other guidance, instructions or terms and
conditions published or issued by the U.S. Treasury Department in respect of
the ITC Cash Grant or any application therefor.

 

“Trust
Deed” means the Fee and Deed of Trust, Assignment of Rents, Security
Agreement and Fixture Filing, dated as of the Closing Date, in substantially
the form of Exhibit D-1, by Borrower, to First American Title
Insurance Company for the benefit of Collateral Agent.

 

“Turbine
Supplier” means General Electric Company, a New York corporation, acting
through its GE Energy business.

 

“Turbine
Supply Agreement” means the Contract for the Sale of (68 by 1.5sle Wind
Turbine Generators) Power Generation Equipment and Related Services, dated as
of April 9, 2010, between Turbine Supplier and Borrower, as successor in
interest to First Wind Acquisition, LLC, a Delaware limited liability company.

 

“Turbine
Supply Financing” means the financing for the purchase of the turbines for
use in connection the Project.

 

“Type”
means the type of Loan, whether a Base Rate Loan or Eurodollar Loan.

 

“UCC”
means the Uniform Commercial Code as the same may, from time to time, be in
effect in the State of New York; provided, in the event that, by reason
of mandatory provisions of law, any or all of the perfection or priority of the
security interest in any Collateral 

 

A-29

 

is
governed by the Uniform Commercial Code as in effect in a jurisdiction other
than the State of New York the term “UCC” shall mean the Uniform Commercial
Code as in effect in such other jurisdiction for purposes of the provisions of
the Credit Documents relating to such perfection or priority and for purposes
of definitions related to such provisions.

 

“Unsatisfied
Condition” means a condition in a Permit that has not been satisfied and
that either (a) must be satisfied before such Permit can become effective,
(b) must be satisfied as of the date on which a representation is made or
a condition precedent must be satisfied under this Agreement, or (c) must
be satisfied as of a future date but with respect to which facts or
circumstances exist which, to Borrower’s knowledge, could reasonably be
expected to result in a failure to satisfy such Permit condition.

 

“Wind
Consultant” means AWS Truewind, LLC.

 

“Wind
Report” means that certain Estimation of the Wind Resource and Energy
Production of the Proposed Milford Phase II Wind Project, dated November 22,
2009, prepared for First Wind by the Wind Consultant.

 

A-30

 

RULES OF INTERPRETATION

 

The
following rules of interpretation shall apply to all Credit Documents:

 

1.             The singular includes the plural
and the plural includes the singular. 
The definitions of terms apply equally to the singular and plural forms
of the terms defined.

 

2.             The word “or” is not exclusive.

 

3.             A reference to a Governmental Rule includes
any amendment or modification to such Governmental Rule (including any
successor Governmental Rules and section references to such Governmental Rule shall
be construed to refer to any successor sections), and all regulations, rulings
and other Governmental Rules promulgated under such Governmental Rule.

 

4.             A reference to a Person includes
its permitted successors, permitted replacements and permitted assigns.

 

5.             The words “asset” and “property”
shall be construed to have the same meaning and effect and to refer to any and
all tangible and intangible assets and properties, including cash, securities,
accounts and contract rights.

 

6.             The words “include,” “includes” and
“including” are not limiting.

 

7.             A reference in a document to an
Article, Section, Exhibit, Schedule, Annex or Appendix is to the Article,
Section, Exhibit, Schedule, Annex or Appendix of such document unless otherwise
indicated.  Exhibits, Schedules, Annexes
or Appendices to any document shall be deemed incorporated by reference in such
document.  In the event of any conflict
between the provisions of the Credit Agreement (exclusive of the Exhibits,
Schedules, Annexes and Appendices thereto) and any Exhibit, Schedule, Annex or
Appendix thereto, the provisions of the Credit Agreement shall control.

 

8.             References to any document, instrument
or agreement (a) shall include all exhibits, schedules and other
attachments thereto, (b) shall include all documents, instruments or
agreements issued or executed in replacement thereof, and (c) shall mean
such document, instrument or agreement, or replacement or predecessor thereto,
as amended, amended and restated, modified and supplemented from time to time
and in effect at any given time.

 

9.             The words “hereof,” “herein” and “hereunder”
and words of similar import when used in any document shall refer to such
document as a whole and not to any particular provision of such document.

 

10.           References to “days” shall mean
calendar days, unless the term “Business Days” shall be used.

 

11.           Whenever the context may require, any
pronoun shall include the corresponding masculine, feminine and neuter
forms.  The word “will” has the same
meaning and effect as the word “shall.”

 

A-31

 

12.           In the computation of periods of time
from a specified date to a later specified date, the word “from” means “from
and including” and the words “to” and “until” each mean “to but excluding.”

 

13.           A reference to a time of day refers
to the prevailing time in New York City.

 

14.           If, at any time after the Closing
Date, Moody’s or S&P shall change its respective system of classifications,
then any Moody’s or S&P “rating” referred to herein shall be considered to
be at or above a specified level if it is at or above the new rating which most
closely corresponds to the specified level under the old rating system.

 

A-32

 

Exhibit B

to the Credit Agreement

 

[RESERVED]

 

B

 

Exhibit C-1

to the Credit Agreement

 

FORM OF NOTICE OF BORROWING

 

[INSERT
LETTERHEAD OF BORROWER]

 

Date:                        ,             

 

The
Royal Bank of Scotland plc,

as Administrative Agent

600
Washington Boulevard

Stamford,
CT 06901

Attn:
Rana Khan

Fax:  212 401-1494

Phone:
203 897-4277

Email:
Agencyops@rbs.com

 

Re:  Milford Wind Corridor Phase II, LLC —
Notice of Borrowing

 

Ladies
and Gentlemen:

 

This
Notice of Borrowing is delivered to you pursuant to Section 2.1.1(b) of
the Credit Agreement, dated as of October 20, 2010 (the “Credit Agreement”), among Milford
Wind Corridor Phase II, LLC, as borrower, The Royal Bank of Scotland plc, as administrative
agent, collateral agent and a lender, and the financial institutions party
thereto from time to time.  Unless
otherwise defined herein, capitalized terms used herein have the meanings
provided in the Credit Agreement.

 

Borrower
hereby gives you notice in accordance with Section 2.1.1(b) of the
Credit Agreement that Borrower requests the Lenders to advance to Borrower
certain Loans as described below (the “Proposed Borrowing”):

 

The requested date of the
Proposed Borrowing is
                    
    ,         ,
which is a Business Day.

 

The Proposed Borrowing
shall consist of an aggregate principal amount of Loans equal to
$                .

 

The Proposed Borrowing
shall consist of [$                
in Base Rate
Loans][and][$                
in Eurodollar Loans with an initial Interest Period as set forth below].

 

C-1-1

 

	
  Amount Requested

  	
   

  	
  Initial Interest Period

  
	
   

  	
   

  	
   

  
	
  $

  	
   

  	
   

  	
                   month(s)

  
	
  $

  	
   

  	
   

  	
                   month(s)

  
	
  $

  	
   

  	
   

  	
                   month(s)

  

 

The Project Costs to be paid with the Proposed Borrowing are set forth
below.

 

	
  Project Cost

  	
   

  	
  Amount to be Allocated

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
  $

  	
   

  
	
   

  	
   

  	
  $

  	
   

  

 

Borrower
hereby certifies to Administrative Agent and the Lenders that the following
statements are accurate, true and complete as of the date hereof, and will be
accurate, true and complete as of the date of the Proposed Borrowing:

 

A.            Each statement
certified to by Borrower in the Drawdown Certificate, dated as of
                    
    ,         , with
respect to the Proposed Borrowing is accurate, true and complete.

 

B.            The amount of the
Proposed Borrowing (i) does not exceed the Available Loan Commitment
determined as of the date of the Proposed Borrowing, and (ii) when
aggregated with all other Loans made under the Credit Agreement, does not
exceed the Total Loan Commitment.

 

C.            Each of the
conditions precedent set forth in Section 3.2 of the Credit Agreement has
been satisfied or waived with respect to the Proposed Borrowing in accordance
with the terms thereof.

 

[Signature page follows]

 

C-1-2

 

IN
WITNESS WHEREOF, Borrower has caused this Notice of Borrowing to be duly
executed and delivered by an authorized officer of Borrower as of the date
first above written.

 

	
   

  	
  MILFORD WIND CORRIDOR
  PHASE II, LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

Notice of Borrowing – Signature Page

 

C-1-3

 

Exhibit C-2

to the Credit Agreement

 

FORM OF NOTICE OF INTEREST TERMS

 

[LETTERHEAD
OF BORROWER]

 

Date:                                 ,          

 

The
Royal Bank of Scotland plc,

as Administrative Agent

600
Washington Boulevard

Stamford,
CT 06901

Attn:
Rana Khan

Fax:  212 401-1494

Phone:
203 897-4277

Email:
Agencyops@rbs.com

 

Re:  Milford Wind Corridor Phase II, LLC —
Notice of Interest Terms

 

Ladies
and Gentlemen:

 

This
Notice of Interest Terms is delivered to you pursuant to the requirements of
the Credit Agreement, dated as of October 20, 2010 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”), among Milford
Wind Corridor Phase II, LLC, a Delaware limited liability company, as borrower,
The Royal Bank of Scotland plc, as administrative agent, collateral agent and a
lender, and the financial institutions party thereto from time to time.  Unless otherwise defined herein, capitalized
terms used herein have the meanings provided in the Credit Agreement.

 

(Borrower to check the appropriate box)

 

o                                                            This Notice of
Interest Terms, delivered pursuant to Section 2.1.6 of the Credit
Agreement, confirms our [telephonic/electronic]
notice of even date herewith relating to the following Eurodollar
Loans:

 

	
  Amount

  	
   

  	
  Last Rollover Date or Initial

  Funding Date (as applicable)

  	
   

  	
  Last Date of Current Interest

  Period

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Total

  	
   

  	
   

  	
   

  	
   

  

 

C-2-1

 

This
Notice of Interest Terms constitutes a confirmation that effective
                  
    ,        (which date is
the last day of the applicable Interest Period), the requested Interest Period
for each of the above referenced Eurodollar Loans (which Eurodollar Loans, to
the extent that they each have the same rollover date and the same Interest
Period selection, shall hereafter be considered a single Eurodollar Loan for
all purposes under the Credit Agreement) shall be
       month(s) (the “Interest Period
Selection”) [Borrower
to modify as necessary if more than one
Interest Period is being selected for such Eurodollar Loans].

 

o            Borrower  hereby
requests in accordance with Section 2.1.5 of the Credit Agreement that
certain Loans be converted from one Type of Loan to another Type of Loan, as
more particularly described below (the “Proposed Loan Conversion”):

 

(a)           Borrower
hereby requests that
$        ,    00,000
of Loans be converted from [Base Rate Loans]
[Eurodollar Loans] to [Base Rate Loans] [Eurodollar Loans].

 

(b)           [If such Loans are to be converted from Base Rate
Loans into Eurodollar Loans, then insert the following:  Borrower hereby requests that such Base Rate Loans be converted to
Eurodollar Loans with an initial Interest Period of
       month(s).] [Borrower to modify as
necessary if more than one Interest Period is selected]

 

(c)           The proposed date of the Proposed Loan
Conversion is
                  
      ,
           (which date is a
Business Day [If converting from
Eurodollar Loans into Base Rate Loans, then insert the following: and is the first day after the last day of an
Interest Period for such Eurodollar Loans]).

 

Borrower hereby certifies to
Administrative Agent and the Lenders that the following statements are
accurate, true and complete as of the date hereof, and will be accurate, true
and complete as of the date of the Proposed Loan Conversion or Interest Period
Selection, as applicable:

 

1.             This Notice of
Interest Terms is being delivered to Administrative Agent pursuant to, and in
accordance with, Section 2.1.6 of the Credit Agreement.

 

2.             [If there will be
no Eurodollar Loans outstanding after effectuation of this Notice of Interest
Terms, Borrower may delete the following:  No Event of Default under Section 8.1.2
of the Credit Agreement has occurred and is continuing.  If an Event of Default has occurred and is
continuing under Article 8 of the Credit Agreement other than Section 8.1.2,
Borrower has not received a notice from Administrative Agent or the Required
Lenders pursuant to Section 2.1.5(d) of the Credit Agreement with
respect to the Proposed Loan Conversion.]

 

3.             [If there will be
no Eurodollar Loans outstanding after effectuation of this Notice of Interest
Terms, Borrower may delete the following:  The Interest Period(s) selected by
Borrower comply with, and are in accordance with, Section 2.1.2(d)(i) of
the Credit Agreement.]

 

C-2-2

 

IN
WITNESS WHEREOF, Borrower  has caused
this Notice of Interest Terms to be duly executed and delivered by an
authorized officer of Borrower  as of the date
first above written.

 

 

	
   

  	
  MILFORD WIND CORRIDOR
  PHASE II, LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  

 

Notice of
Interest Terms — Signature Page

 

C-2-3

 

Exhibit C-3

to the Credit Agreement

 

FORM OF DRAWDOWN
CERTIFICATE

 

[LETTERHEAD
OF BORROWER]

 

Date:                  
    ,
        (1)

 

Funding Date: 
                
    ,

 

The
Royal Bank of Scotland plc,

as Administrative Agent

600
Washington Boulevard

Stamford,
CT 06901

Attn:
Rana Khan

Fax:  212 401-1494

Phone:
203 897-4277

Email:
Agencyops@rbs.com

 

Garrad Hassan America, Inc.

as Independent Engineer

9665
Chesapeake Drive, Suite 435

San
Diego, CA 92123

Attention:  Bridget McEwen

Facsimile:  (858) 866-4069

Email:  Bridget.McEwen@garradhassan.com

 

Re:          Milford Wind
Corridor Phase II, LLC — Drawdown Certificate

 

Ladies
and Gentlemen:

 

This
Drawdown Certificate is delivered to you pursuant to Section 3.2.5(a) of
the Credit Agreement, dated as of October 20, 2010 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Milford Wind Corridor Phase II, LLC, a Delaware limited liability
company, as borrower, The Royal Bank of Scotland plc, as administrative agent,
collateral agent and a lender, and the financial institutions party thereto
from time to time.  Capitalized terms
used herein and not otherwise defined have the meanings provided in the Credit
Agreement.

 

I,
[                              ],
am a Responsible Officer of Borrower.  I
have reviewed the provisions of the Credit Documents which are relevant to the
furnishing of this Drawdown Certificate. 
To the extent that this Drawdown Certificate evidences, attests or
confirms 

 

(1)  Certificate must be submitted to
Administrative Agent and Independent Engineer at least three Business Days
prior to the submission of each Notice of Borrowing for each Credit Event.

 

C-3-1

 

compliance
with any covenants, representations, warranties or conditions precedent
provided for in the Credit Documents, I have made such examination or
investigation as was, in my opinion, reasonably necessary to enable me to
express an informed opinion as to whether such covenants, representations,
warranties or conditions have been complied with.  This Drawdown Certificate relates to a Credit
Event to take place on the date specified above as the “Funding Date” (the “Funding
Date”).

 

I,
on behalf of Borrower, in my capacity as the
[                  ]
thereof, and not in my individual capacity, do hereby certify to the Secured
Parties that the following statements [are accurate, true and complete on the
date hereof, and ](2) will be accurate, true and complete on and as of the
Funding Date, except as waived in writing by Administrative Agent (with the
consent of the Required Lenders if required under the terms of the Credit
Agreement):

 

(1)           The aggregate Project Costs incurred,
but not yet paid, through the date of the requested Credit Event are anticipated
to be $                        .

 

(2)           All proceeds of all Loans and other
amounts deposited into, or credited to, the Construction Account on or prior to
the date hereof[, except for funds remaining in the Construction Account since
the last Funding Date,](3) have been expended and have been applied to (a) Project
Costs or (b) to reimburse Affiliates of Borrower for prior Project Costs
paid by them in accordance with the applicable Drawdown Certificate, the
applicable Project Documents, the Credit Agreement and the Depositary
Agreement.

 

(3)           The Project Costs to be paid with the
funds requested in connection with this Drawdown Certificate are to be paid
with proceeds of the Loans in the amounts shown on Appendix I
hereto.

 

(4)           The currently estimated aggregate
Project Costs are as described and segregated in Appendix I
hereto.  Such amount is consistent with
the current Project Budget or has otherwise been approved or permitted pursuant
to the Credit Agreement.

 

(5)           [Appendix I hereto indicates
the actual amount of Project Costs that were estimated on the previous Drawdown
Certificate.](4)

 

(6)           [The variances in estimated Project
Costs (from the Closing Date to the proposed Funding Date) are summarized in Appendix I
hereto and such variances are described in the current or past construction
progress reports delivered pursuant to Section 5.8.1 of the Credit
Agreement.](5)

 

(7)           Attached in Appendix II hereto
are the previously paid or due and payable invoices, purchase orders or other
documents evidencing the Project Costs that are to be

 

(2)  Delete for first Credit Event.

 

(3)  Delete for first Credit Event.

 

(4)  Delete for first Credit Event.

 

(5)  Delete for first Credit Event.

 

C-3-2

 

reimbursed or paid with the
funds requested in connection with this Drawdown Certificate.

 

(8)           After taking into consideration the
making of the Credit Event hereby requested, Available Construction Funds are not less than the
aggregate unpaid amount required to achieve Commercial Operation by the Date
Certain in accordance with all Legal Requirements, the Construction Contracts,
each other Project Document pursuant to which construction work with respect to
the Project is being performed and the Credit Documents and to pay or provide
for all anticipated non-construction Project Costs, all as set forth in the
current Project Budget.

 

(9)           The estimated (a) Commercial
Operation Date, under and as defined in the PPA, and (b) Completion Date,
under and as defined in the Credit Agreement, are each set forth on Appendix III
hereto.

 

(10)         Each representation and warranty of
each Borrower Entity in any of the Operative Documents is true and correct in
all material respects (except that any representation and warranty that is qualified
as to “materiality” or “Material Adverse Effect” is true and correct in all
respects) on and as of the date of the Funding Date, before and after giving
effect to the Credit Event requested hereby, with the same effect as though
made on and as of such date, unless such representation or warranty expressly
relates solely to an earlier date.

 

(11)         To
Borrower’s knowledge, each representation and warranty of each Major Project
Participant (other than the Borrower Entities) contained in the Operative Documents
is true and correct in all material respects (except that any representation
and warranty that is qualified as to “materiality” or “Material Adverse Effect”
or the like is true and correct in all respects) on and as of the Funding Date,
before and after giving effect to the Credit Event requested hereby, with the
same effect as though made on and as of such date, unless such representation
and warranty expressly relates solely to an earlier date, and except to the
extent that the failure of such representations and warranties to be true and
correct in all material respects could not reasonably be expected to have a
Material Adverse Effect.

 

(12)         No Default or Event of Default has
occurred and is continuing or will result from the funding of the Credit Event
hereby requested.

 

(13)         All work that has been done on the
Project to date has been done in a good and workmanlike manner and in
accordance with the Construction Contracts, and in accordance with the standard
of care set forth in the Construction Contracts, and there has not been filed
against any of the Collateral or otherwise filed with or served upon Borrower
with respect to the Project or any part thereof, notice of any Lien, claim of
Lien or attachment upon or claim (except any Notice of Commencement filed by
the Construction Contractors and any Preliminary Notices filed by Suppliers, or
similar filings by the Construction Contractors’ respective subcontractors)
affecting the right to receive payment of any of the moneys payable to any of
the Persons named on such request which has not been released by payment or
bonding or otherwise or which will

 

C-3-3

 

not be released with the
payment of such obligation out of the Loan or non-Loan proceeds hereby
requested, other than Permitted Liens.

 

(14)         Subject
to Borrower’s right to contest Liens as described in the definition of “Permitted
Liens,” attached in Appendix IV are duly executed Lien waivers relating
to mechanics’ and materialmen’s Liens from each Supplier and Construction
Contractor that has a statutory right to file a mechanics’ and/or materialmen’s
Lien for all work, services and materials (including equipment and fixtures of
all kinds, done, previously performed or furnished for the construction of the
Project), for which the related Project Costs have been or will, from the
proceeds of the requested Borrowing, be paid.

 

(15)         All Permits required for the stage of
construction and development of the Project have been obtained (and if the
applicable statute, rule or regulation provides for a fixed period for
judicial or administrative review thereof, such period has expired), and
Borrower has no reason to expect that any other Permits customarily obtained at
a later stage of construction, development or operation will not be obtained as
and when required.

 

[The Remainder of this Page is
Intentionally Left Blank]

 

C-3-4

 

IN WITNESS WHEREOF, the undersigned, the
[                ]
of Borrower, has caused this Drawdown Certificate to be duly executed and
delivered on behalf of Borrower as of the date first above written.

 

	
   

  	
  MILFORD WIND CORRIDOR
  PHASE II, LLC,

  
	
   

  	
  a Delaware limited
  liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  	
   

  
	
   

  	
  Title:

  	
   

  

 

Drawdown
Certificate — Signature Page

 

C-3-5

 

APPENDIX I to Drawdown Certificate

Milford Wind Corridor Phase II, LLC

 

Currently Estimated Aggregate Project Costs

 

	
   

  	
  Project Cost

  	
   

  	
  Amount

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
  Total: $

  	
   

  	
   

  

 

Actual Amount of Project Costs Estimate in Prior Drawdown Certificate

 

	
   

  	
  Project Cost

  	
   

  	
  Estimate Amount

  	
   

  	
  Actual Amount

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
  $

  	
   

  	
   

  

 

Summary of Variances in Estimated Project Costs (from the Closing Date
to the Proposed Funding Date)

 

C-3-6

 

APPENDIX II

to Drawdown Certificate

 

Invoices

 

C-3-7

 

APPENDIX III

to Drawdown Certificate

 

Estimated Dates

 

Expected Commercial Operation Date:
                    ,
201 

 

Expected Completion Date:
                    ,
201 

 

C-3-8

 

APPENDIX IV

to Drawdown Certificate

 

Lien Waivers

 

C-3-9

 

Exhibit C-4

to the Credit Agreement

 

FORM OF INDEPENDENT ENGINEER’S DRAWDOWN
CERTIFICATE

 

[LETTERHEAD OF INDEPENDENT
ENGINEER]

 

Date:                  
    ,

 

The
Royal Bank of Scotland plc,

     as
Administrative Agent

600
Washington Boulevard

Stamford,
CT 06901

Attn:
Rana Khan

Fax:  212 401-1494

Phone:
203 897-4277

Email:
Agencyops@rbs.com

 

	
  Milford
  Wind Corridor Phase II, LLC

  	
   

  	
  with
  a copy to: 

  
	
  179
  Lincoln Street, Suite 500

  Boston,
  Massachusetts 02111

  Attn:
  Secretary

  Fax:
  (617) 960-2888

  Tel:
  (617) 960-2889

  Email:
  general.counsel@firstwind.com

  	
   

  	
   

  	
   

  First
  Wind Energy, LLC

  179
  Lincoln Street, Suite 500

  Boston,
  Massachusetts 02111

  Attn:
  General Counsel

  Fax:
  (617) 960-2888

  Tel:
  (617) 960-2889

  

 

Re:          Milford Wind
Corridor Phase II — Independent Engineer’s Drawdown Certificate

 

Ladies
and Gentlemen:

 

This
Independent Engineer’s Drawdown Certificate is delivered to you pursuant to
Section 3.2.5(b) of the Credit Agreement, dated as of October 20,
2010 (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among Milford Wind Corridor Phase II, a Delaware limited
liability company, as borrower, The Royal Bank of Scotland plc, as
administrative agent, collateral agent and a lender, and the financial
institutions party thereto from time to time. 
Capitalized terms used herein and not otherwise defined have the
meanings provided in the Credit Agreement.

 

[                          ] (“Independent
Engineer”) hereby makes the following statements in favor of the Secured
Parties with respect to the Project as of the date hereof:

 

C-4-1

 

(1)           We have reviewed the
material and data made available to us by the parties to the Construction
Contracts and the relevant Borrower Entities [since the [date of the most recent Credit Event]](6), which information consists of:
the executed Drawdown Certificate and the Appendices thereto, dated                 
    ,          (the “Current
Drawdown Certificate”) and on which the specified “Funding Date” is                 
    ,          (the “Funding Date”), and
drawings, specifications and other data made available to us by the
Construction Contractors and Borrower with respect to the Project.  We have also observed the status of
construction progress and startup activities at the Site.  Our review and observations were performed in
accordance with generally accepted consulting practices consisting of a
walk-through of such Site conducted on                 
    ,         ,
observation of installed equipment and material, observation of work
procedures, review of “Quality Assurance”, “Quality Control” and like reports
as made available by Borrower with respect to the Project and attendance at
monthly construction progress review meetings. 
We have reviewed the Current Drawdown Certificate[, and we have reviewed
all previous Drawdown Certificates delivered in connection with previous Credit
Events. We have also reviewed Borrower’s monthly progress report](7).

 

(2)           To the extent practical, we
have periodically reviewed the progress of the engineering, procurement and
construction for the Project and in the course of this review we have not
discovered any errors or omissions in the claims for materials that have been
procured and work performed in respect of the Project.

 

(3)           Based on our review of the
aforementioned information, and of data provided to us by others, which we have
not independently verified, we are of the opinion that, as of the Funding Date:

 

(a)           The estimated Project Costs
necessary to achieve Completion [are/are not]
as set forth in the Current Drawdown Certificate.  [If not,
continue as follows: In our opinion, the estimated Project Costs
necessary to achieve Completion vary from the estimated Project Costs set forth
in the Current Drawdown Certificate because: [Insert
description of reasons and approximate amount of variance, if possible];

 

(b)           The amount of the currently
estimated aggregate Project Costs [is/is not]
consistent with the Project Budget, as amended or otherwise modified as permitted under the Credit Agreement [Note: If not
consistent with the Project Budget, describe variance];

 

(c)           The work accomplished with
respect to the Project [is/is not] in
accordance with the Project Schedule [Note: If not
in accordance with schedule, specify reasons];

 

(d)           Our scope of review [has/has not] brought to our actual attention any errors in
the information contained in the Current Drawdown Certificate

 

(6)  Delete for first Credit Event.

 

(7)  Delete for first Credit Event.

 

C-4-2

 

[Note: If any
provision or statement in the Current Drawdown Certificate, or any item
included as a “Project Cost” in the Current Drawdown Certificate, is incorrect
or improper, list and specify reasons and identify such improper costs];

 

(e)           Except as disclosed in the
Permit Schedule, to our knowledge, no other Permits or authorizations from any
Governmental Authority are required in connection with the construction and
operation of the Project;

 

(f)            The quality of construction
performed with respect to the Project [is/is not] in
accordance with generally accepted engineering, construction and project management practices and [appears to
have been/does not appear to have been] performed in a good and
workmanlike manner and in conformance with the applicable Major Project
Documents [Note: If unsatisfactory,
specify reasons];

 

(g)           After taking into
consideration the funding of the Credit Event requested in the Current Drawdown
Certificate, Available Construction Funds are not less than the aggregate unpaid
amount required to achieve Commercial Operation by the Date Certain in
accordance with all Legal Requirements, the Construction Contracts, each other
Project Document pursuant to which construction work with respect to the Project
is being performed and the Credit Documents and to pay or provide for all
anticipated non-construction Project Costs, all as set forth in the current
Project Budget, as amended or otherwise modified as permitted
under the Credit Agreement;

 

(h)           [The aggregate amount of
Project Costs previously paid by [Sponsor/Pledgor]
is
$                  ;](8) [and]

 

(i)            [In an
aggregate amount of not less than the Base Equity Requirement, Borrower has
(a)  applied the proceeds of cash equity contributions made by Sponsor to
the payment of Project Costs, (b)  deposited into the Construction Account
the proceeds of cash equity contributions made by Sponsor and/or
(c) otherwise received in-kind equity contributed by Sponsor or its
Affiliates.](9)

 

Except
as specified above, the undersigned has not discovered any error in the matters
set forth in the Current Drawdown Certificate that are within its scope of
work.

 

[The Remainder of this Page is
Intentionally Left Blank]

 

(8) 
Only include if (i) the Credit Event requested in the Current Drawdown
Certificate is a Loan and (ii) the proceeds of such Loan are intended to
be used to reimburse Sponsor for certain equity contributions made by it as
contemplated under the Credit Agreement.

 

(9)  Only include for the first Credit Event.

 

C-4-3

 

IN WITNESS WHEREOF, Independent Engineer has caused this
Independent Engineer’s Drawdown Certificate to be duly executed and delivered
by an authorized officer of Independent Engineer as of the date first above
written.

 

	
   

  	
  [                                  ]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Independent Engineer’s Drawdown Certificate – Signature Page

 

C-4-4

 

Exhibit D-1

to the Credit Agreement

 

FORM OF TRUST DEED

 

[see attached]

 

D-1-1

 

Exhibit D-2

to the Credit Agreement

 

FORM OF SECURITY AGREEMENT

 

[see attached]

 

D-2-1

 

Exhibit D-3

to the Credit Agreement

 

FORM OF PLEDGE AGREEMENT

 

[see attached]

 

D-3-1

 

Exhibit D-4

to the Credit Agreement

 

FORM OF DEPOSITARY AGREEMENT

 

[see attached]

 

D-4-1

 

Exhibit D-5

to the Credit Agreement

 

SCHEDULE OF SECURITY FILINGS

 

	
  Entity

  	
   

  	
  Filing Office

  	
   

  	
  Type of Filing

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Milford
  Wind Corridor Phase II, LLC

  	
   

  	
  Delaware Secretary of State

  	
   

  	
  UCC-1 (Personalty)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Milford
  II Holdings, LLC

  	
   

  	
  Delaware Secretary of State

  	
   

  	
  UCC-1 (Personalty)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Milford
  Wind Corridor Phase II, LLC

  	
   

  	
  Utah Department of Commerce, Division of Corporations

  	
   

  	
  UCC-1 (Transmitting Utility)

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Milford
  Wind Corridor Phase II, LLC

  	
   

  	
  Register of Deeds, Millard County, Utah

  	
   

  	
  Leasehold Deed of Trust, Assignment of Rents and Leases, Security
  Agreement and Fixture Filing

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Milford
  Wind Corridor Phase II, LLC

  	
   

  	
  Register of Deeds, Beaver County, Utah

  	
   

  	
  Leasehold Deed of Trust, Assignment of Rents and Leases, Security
  Agreement and Fixture Filing

  

 

D-5-1

 

Exhibit E-1

to the Credit Agreement

 

FORM OF CONSENT FOR CONTRACTING PARTY (LONG FORM)

 

[see attached]

 

E-1-1

 

Exhibit E-2

to the Credit Agreement

 

FORM OF CONSENT FOR CONTRACTING PARTY (SHORT FORM)

 

[see attached]

 

E-2-1

 

Exhibit E-3

to the Credit Agreement

 

SCHEDULE OF CLOSING DATE CONSENTS AND OPINIONS

 

Consents

 

	
  Contracting Party

  	
   

  	
  Major Project Document

  	
   

  	
  Long Form/ Short Form/

  Customized Form

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  SCPPA

  	
   

  	
  PPA

  	
   

  	
  Customized

  
	
  Interconnector

  	
   

  	
  Interconnection
  Agreement

  	
   

  	
  Customized

  
	
  Construction
  Contractor

  	
   

  	
  Construction
  Contract

  	
   

  	
  Long

  
	
  RMT
  Parent

  	
   

  	
  RMT
  Guaranty

  	
   

  	
  Customized

  
	
  Turbine
  Supplier

  	
   

  	
  Turbine
  Supply Agreement

  	
   

  	
  Long

  
	
  First
  Wind O&M

  	
   

  	
  Project
  O&M Agreement

  	
   

  	
  Long

  
	
  First
  Wind Energy

  	
   

  	
  Administrative
  Services Agreement

  	
   

  	
  Long

  
	
  Milford
  I

  	
   

  	
  Gen
  Lead Agreement, Gen Lead O&M Agreement, Shared Facilities Agreement and
  Shared Facilities O&M Agreement

  	
   

  	
  Long

  
	
  E.W.
  Wylie

  	
   

  	
  Transportation
  Agreement

  	
   

  	
  Long

  
	
  Evergreen

  	
   

  	
  Bailee
  Agreement

  	
   

  	
  Customized

  
	
  Town
  of Houlton

  	
   

  	
  Bailee
  Agreement

  	
   

  	
  Customized

  
	
  Dansville
  Properties, LLC

  	
   

  	
  Bailee
  Agreement

  	
   

  	
  Customized

  
	
  Rahmann/Sharper

  	
   

  	
  Bailee
  Agreement

  	
   

  	
  Customized

  

 

Opinions

 

None

 

E-3-1

 

Exhibit F-1

to the Credit Agreement

 

FORM OF BORROWER’S CLOSING CERTIFICATE

 

MILFORD WIND CORRIDOR PHASE II, LLC,

a Delaware limited liability company

 

[            ]
[    ], 2010

 

CLOSING CERTIFICATE

 

I
hereby certify that I am the duly elected and qualified
[        ] of Milford Wind Corridor
Phase II, LLC, a Delaware limited liability company (“Borrower”), and
that, as such, I am authorized to execute this certificate on behalf of
Borrower.  This certificate is being
delivered pursuant to Section 3.1.7 of the Credit Agreement, dated as of October 20,
2010 (the “Credit Agreement”), among Borrower, The Royal Bank of
Scotland plc, as administrative agent, collateral agent and a lender, and the
financial institutions party thereto from time to time.  Capitalized terms used herein and not
otherwise defined have the meanings provided in the Credit Agreement.

 

I
hereby certify, on behalf of Borrower, in my capacity as the
[            ]
thereof, and not in my individual capacity, to the Secured Parties as follows:

 

1.             Each Credit Document delivered to
Administrative Agent on or prior to the date hereof has been duly authorized,
executed and delivered by the parties thereto and is in full force and effect.

 

2.             The agreements listed in Appendix
I hereto constitute all of the Project Documents in effect as of the
Closing Date (other than any Project Document which is only incidental to the
development, construction, leasing, ownership or operation of the Project), and
a true, complete and correct copy of each such Project Document has been
delivered to Administrative Agent on or prior to the date hereof pursuant to Section 3.1.6(b) of
the Credit Agreement.  Each Project
Document has been duly authorized, executed and delivered by the parties
thereto and is in full force and effect.

 

3.             Borrower has (a) applied the
proceeds of cash equity contributions made by Sponsor to the payment of Project
Costs, (b) deposited into the Construction Account the proceeds of cash
equity contributions made by Sponsor which collectively are in an aggregate
amount not less than the Base Equity Requirement, and/or (c) otherwise
received in-kind equity contributed by Sponsor of its Affiliates.

 

4.             To the knowledge of Borrower, since
the date of the most recent audited financial statements of each of RMT Parent,
SCPPA and Turbine Supplier delivered pursuant to Section 3.1.17 of the
Credit Agreement, no event, circumstance or condition has occurred and is continuing
that constitutes or could reasonably be expected to result in a Material
Adverse

 

F-1-1

 

Effect.

 

5.             Each of Borrower’s and Pledgor’s
representations and warranties contained in each of the Credit Documents is
true and correct as of the date hereof (unless such representation and warranty
refers to an earlier date, in which case such representation and warranty was
true and correct as of such earlier date).

 

6.             Each of the conditions precedent
set forth in Section 3.1 of the Credit Agreement has been satisfied or
waived in accordance with the terms and conditions of the Credit Agreement as
of the date hereof.

 

7.             As of the date hereof, no event has
occurred and is continuing that constitutes a Default or an Event of Default
under any of the Credit Documents.

 

8.             All potable water, sewer,
telephone, electric and all other utility services necessary for the
development, construction, ownership and operation of the Project are either
contracted for, or readily available on commercially reasonable terms, at the
Project.

 

[The Remainder of this Page is Intentionally Left Blank]

 

F-1-2

 

IN WITNESS WHEREOF, I, the
[            ] of
Borrower, have signed my name to this Closing Certificate as of the date first
set forth above.

 

 

	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
  Milford
  Wind Corridor Phase II, LLC

  

 

Borrower’s Closing Certificate — Signature Page

 

F-1-3

 

Appendix I

to Borrower’s Closing Certificate

 

Project Documents

 

[First Wind
to provide complete list using specific document names]

 

F-1-4

 

Exhibit F-2

to the Credit Agreement

 

FORM OF PLEDGOR CLOSING CERTIFICATE

 

MILFORD II HOLDINGS, LLC,

a Delaware limited liability company

 

[            ]
[    ], 2010

 

CLOSING CERTIFICATE

 

I
hereby certify that I am the duly elected and qualified
[        ] of Milford II Holdings, LLC,
a Delaware limited liability company (“Pledgor”), and that, as such, I
am authorized to execute this certificate on behalf of Pledgor.  This certificate is being delivered pursuant
to Section 3.1.7 of the Credit Agreement, dated as of October 20,
2010 (the “Credit Agreement”), among Milford Wind Corridor Phase II, LLC,
as borrower, The Royal Bank of Scotland plc, as administrative agent,
collateral agent and a lender, and the financial institutions party thereto
from time to time.  Capitalized terms
used herein and not otherwise defined have the meanings provided in the Credit
Agreement.

 

I
hereby certify, on behalf of Pledgor, in my capacity as the
[              ]
thereof, and not in my individual capacity, to the Secured Parties as follows:

 

1.             Each of Pledgor’s representations
and warranties contained in each of the Credit Documents to which Pledgor is a
party is true and correct as of the date hereof (unless such representation and
warranty refers to an earlier date, in which case such representation and
warranty was true and correct as of such earlier date).

 

2.             As of the date hereof, no event has
occurred and is continuing that constitutes a Default or an Event of Default
under any of the Credit Documents to which Pledgor is a party.

 

[The
Remainder of this Page is Intentionally Left Blank]

 

F-2-1

 

IN WITNESS WHEREOF, I, the
[            ] of
Pledgor, have signed my name to this Closing Certificate as of the date first
set forth above.

 

 

	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
  [    ]

  

 

Pledgor’s Closing Certificate – Signature
Page

 

F-2-2

 

Exhibit F-3

to the Credit Agreement

 

FORM OF BORROWER ENTITY’S CLOSING CERTIFICATE

 

[                          ]

a
[                          ]

 

[            ]
[    ], 2010

 

 

CLOSING CERTIFICATE

 

I
hereby certify that I am the duly elected and qualified
[        ] of
[                    ],
a [                          ]
(“[X]”), and that, as such, I am authorized to execute this
certificate on behalf of [X].  This
certificate is being delivered pursuant to Section 3.1.7 of the Credit
Agreement, dated as of October 20, 2010 (the “Credit Agreement”),
among Milford Wind Corridor Phase II, LLC, a Delaware limited liability
company, as borrower, The Royal Bank of Scotland plc, as administrative agent,
collateral agent and a lender, and the financial institutions party thereto
from time to time.  Capitalized terms
used herein and not otherwise defined have the meanings provided in the Credit
Agreement.

 

I
hereby certify, on behalf of [X], in my capacity as the [              ]
thereof, and not in my individual capacity, to the Secured Parties as follows:

 

1.             Each of [X]’s representations and
warranties contained in each of the Credit Documents to which [X] is a party is
true and correct as of the date hereof (unless such representation and warranty
refers to an earlier date, in which case such representation and warranty was
true and correct as of such earlier date).

 

2.             As
of the date hereof, no event has occurred and is continuing that constitutes a
Default or an Event of Default under any of the Credit Documents to which [X]
is a party.

 

[The
Remainder of this Page is Intentionally Left Blank]

 

F-3-1

 

IN WITNESS WHEREOF, I, the
[            ] of
[X], have signed my name to this Closing Certificate as of the date first set
forth above.

 

 

	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
  [X]

  

 

Borrower Entity’s Closing
Certificate – Signature Page

 

F-3-2

 

Exhibit F-4

to the Credit Agreement

 

FORM OF INSURANCE CONSULTANT’S CERTIFICATE

 

[LETTERHEAD OF MOORE-MCNEIL, LLC]

 

,
2010

 

The
Royal Bank of Scotland plc,

as
Administrative Agent, Collateral Agent and Lender

600
Washington Boulevard

Stamford,
CT 06901

Attn:
Rana Khan

Fax:  212 401-1494

Phone:
203 897-4277

Email: Agencyops@rbs.com

 

Re:                               Milford Wind
Corridor Phase II, LLC — Insurance Consultant’s Certificate

 

Ladies
and Gentlemen:

 

The undersigned, a duly authorized representative of Moore-McNeil, LLC,
a Tennessee limited liability company (the “Insurance Consultant”),
hereby delivers this Insurance Consultant’s Certificate to you in accordance
with Section 3.1.9 of that
certain  Credit Agreement, dated as of the date
hereof (as amended, supplemented or otherwise modified from time to time, the “Credit
Agreement”), among Milford Wind Corridor Phase II, LLC, a Delaware limited
liability company, as borrower, The Royal Bank of Scotland plc, as
administrative agent, collateral agent and a lender, and the financial
institutions party thereto from time to time. 
Capitalized terms used herein and not otherwise defined have the
meanings provided in the Credit Agreement.

 

The
Insurance Consultant hereby makes the following statements in favor of the
Secured Parties with respect to Borrower and the Project as of the date hereof:

 

1.                                       The Insurance
Consultant acknowledges that pursuant to the Credit Agreement, the Lenders are
providing financing to Borrower for, among other things, the construction and development of the Project and in so doing are relying on
this Insurance Consultant’s Certificate and the Insurance Consultant’s report
dated [        ],
2010  (the “Insurance Consultant’s
Report”), with respect to the Project.

 

2.                                       Attached hereto
as Annex I is an accurate and complete copy of the Insurance Consultant’s
Report.

 

F-4-1

 

3.                                       The Insurance
Consultant’s Report was prepared in good faith by the Insurance Consultant
pursuant to the scope of services in accordance with generally accepted
consulting practices.

 

4.                                       Nothing has
come to the attention of the Insurance Consultant that causes the Insurance
Consultant to believe that the Insurance Consultant’s Report, as of the date
hereof, contains any untrue statement of material fact or omits to state a
material fact necessary in order to make the statements made therein, in light
of the circumstances under which they were made, not misleading.

 

5.                                       The Insurance
Consultant hereby confirms, as of the date hereof, based on the legal notice
provided in the Insurance Consultant’s report, that the evaluation, conclusions
and recommendations contained in the Insurance Consultant’s Report are accurate
and complete in all material respects.

 

6.                                       In connection
with the preparation of the Insurance Consultant’s Report, personnel of the
Insurance Consultant have participated in telephonic or electronic discussions
with representatives of Borrower and its Affiliates, Borrower’s insurance
broker, Administrative Agent, Collateral Agent and counsel to Administrative
Agent and Collateral Agent in respect of the Project.

 

7.                                       Attached hereto
as Annex II is an accurate and complete list of the coverages which have
been obtained to date in connection with the Project as evidenced by certificates of insurance and other materials supplied by
Borrower.

 

8.                                       Upon delivery
of the certificate from Borrower’s insurance broker and the original
certificates of insurance, copies of which are attached hereto as Annex II,
Borrower will have provided satisfactory evidence of compliance with the terms
and conditions of Section 3.1.10 of the Credit Agreement and Section 5.17
of the Credit Agreement.

 

The
undersigned, on behalf of the Insurance Consultant, hereby confirms that the
Secured Parties shall be permitted to rely on the Insurance Consultant’s Report
as if the Insurance Consultant’s Report was specifically addressed to each of
them.

 

[the
remainder of this page is intentionally left blank]

 

F-4-2

 

IN
WITNESS WHEREOF, the Insurance Consultant has caused this Insurance Consultant’s
Certificate to be duly executed and delivered by an authorized officer of the
Insurance Consultant as of the date first above written.

 

 

	
   

  	
  MOORE
  MCNEIL, LLC,

  
	
   

  	
  a
  Tennessee limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Insurance
Consultant’s Certificate — Signature Page

 

F-4-3

 

Annex I

to Insurance Consultant’s Certificate

 

Insurance Consultant’s
Report

 

[see attached]

 

F-4-4

 

Annex II

to Insurance Consultant’s Certificate

 

Insurance Coverages and
Certificates

 

[see attached]

 

F-4-5

 

Exhibit F-5

to the Credit Agreement

 

FORM OF INDEPENDENT ENGINEER’S CERTIFICATE

 

[LETTERHEAD OF GARRAD HASSAN
AMERICA, INC.]

 

, 2010

 

The Royal Bank of Scotland plc,

as Administrative Agent, Collateral Agent and Lender

600
Washington Boulevard

Stamford,
CT 06901

Attn:
Rana Khan

Fax:  212 401-1494

Phone:
203 897-4277

Email:
Agencyops@rbs.com

 

Re:                               Milford Wind Corridor Phase
II, LLC — Independent Engineer’s Certificate

 

Ladies
and Gentlemen:

 

The
undersigned, a duly authorized representative of Garrad Hassan America, Inc.,
a California corporation (“Independent Engineer”), hereby provides this
letter in accordance with Section 3.1.11 of that certain Credit Agreement,
dated as of October 20, 2010 (as amended, supplemented or otherwise
modified from time to time, the “Credit Agreement”), among Milford Wind
Corridor Phase II, LLC, a Delaware limited liability company, as borrower, The
Royal Bank of Scotland plc, as administrative agent, collateral agent and a
lender, and the financial institutions party thereto from time to time.  Capitalized terms used herein and not
otherwise defined have the meanings ascribed to such terms in the Credit
Agreement.

 

Independent
Engineer was retained by Administrative Agent to act under the direction of
Administrative Agent as the Independent Engineer, and Independent Engineer has
prepared an Independent Engineer’s Report, dated [                      ],
2010 (the “Report”), a complete copy of which is attached hereto
as Annex I.  The Report was
prepared pursuant to the scope of services under our Agreement for Independent
Engineering Services, dated [    ], 2010 (the “Services
Agreement”), entered into with Administrative Agent, and those services
were provided in accordance with generally accepted engineering practices.  Further, since the date of the Report,
nothing has come to our attention that would cause us to change that Report.

 

In
connection with the preparation of the Report, personnel of Independent
Engineer have participated in meetings or telephone discussions with
representatives of Borrower and its Affiliates, counsel to Borrower,
Administrative Agent, Collateral Agent and counsel to Administrative Agent and
Collateral Agent in respect of the Project.

 

This
letter is solely for the information of, and assistance to, the Secured
Parties, in conducting and documenting their investigation of the matters
covered by the Report in

 

F-5-1

 

connection
with the Project, and it is not to be used, circulated, quoted, or otherwise
referred to within or without the lending group for any purpose, nor is it to
be referred to in whole or in part in any other document, except that reference
may be made to it in the above-mentioned Credit Agreement and the other Credit
Documents, the syndication materials provided to proposed Lenders or in any
list of closing documents pertaining to the Project.

 

Independent
Engineer disclaims any obligation to update this letter after the date
hereof.  This letter is not intended to
be, and may not be, relied upon by any parties other than the Secured Parties; provided that each such actual or proposed Secured Party by
its receipt of and reliance on this letter shall be deemed to have agreed to
the terms of the Services Agreement, including the limitations on Independent
Engineer’s liability set forth therein.

 

 

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  
	
   

  	
  GARRAD
  HASSAN AMERICA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

Independent
Engineer’s Certificate — Signature Page

 

F-5-2

 

Annex I

to Independent Engineer’s Certificate

 

Report

 

[see attached]

 

F-5-3

 

Exhibit F-6

to the Credit Agreement

 

FORM OF SOLVENCY CERTIFICATE

 

This certificate is furnished pursuant to Section 3.1.35 of the
Credit Agreement, dated as of October 20, 2010 (as amended, supplemented
or otherwise modified from time to time, the “Credit Agreement”), among
Milford Wind Corridor Phase II, LLC, a Delaware limited liability company, as
borrower, The Royal Bank of Scotland plc, as administrative agent, collateral
agent and a lender, and the financial institutions party thereto from time to
time.  Capitalized terms used but not
otherwise defined in this certificate shall have the meanings assigned to such
terms in the Credit Agreement.

 

The undersigned hereby certifies, on behalf of Borrower, in his
capacity as the [Chief Financial Officer][Treasurer] thereof, and not in his
individual capacity, as follows:

 

1.  I have reviewed the
provisions of the Credit Documents which are relevant to the furnishing of this
certificate, and, in my opinion, have made, or have caused to be made under my
supervision, such examination or investigation as is necessary to enable me to
express an informed opinion as to the matters referred to herein.

 

2.  Based upon my review and
examination described in paragraph 1 above, I certify that as of the date
hereof, immediately after giving effect to the transactions to occur on the
Closing Date and immediately following the occurrence of the first Credit
Event, (a) the fair value of the assets of Borrower, at a fair valuation,
will exceed the debts and liabilities, direct, subordinated, contingent or
otherwise, of Borrower, (b) the present fair saleable value of the
property of Borrower will be greater than the amount that will be required to
pay the probable liability of Borrower on its debts and other liabilities,
direct, subordinated, contingent or otherwise, as such debts and other
liabilities become absolute and matured, (c) Borrower will be able to pay
its debts and liabilities, direct, subordinated, contingent or otherwise, as
such debts and liabilities become absolute and matured (after giving effect to
any guarantees and credit support) and (d) Borrower will not have
unreasonably small capital with which to conduct the business in which it is
engaged as such business is now conducted and is proposed to be conducted
following the Closing Date.  For purposes
of this certificate, (i) “able to pay its debts and liabilities, direct,
subordinated, contingent or otherwise, as such debts and liabilities become
absolute and matured (after giving effect to any guarantees and credit support)”
means that Borrower will be able to generate enough cash from operations, asset
dispositions or refinancings, or a combination thereof, to meet its obligations
as they become due, and (ii) the amount of contingent liabilities at any
time shall be computed as the amount that, in the light of all the facts and
circumstances existing at such time, represents the amount that can reasonably
be expected to become an actual or matured liability.

 

F-6-1

 

IN WITNESS WHEREOF, the undersigned, the [Chief Financial
Officer][Treasurer] of Borrower, has duly executed and delivered this
certificate as of the date first written above.

 

	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:
  [Chief Financial

  Officer][Treasurer] of

  
	
   

  	
  Milford
  Wind Corridor Phase II, LLC

  

 

Solvency
Certificate — Signature Page

 

F-6-2

 

Exhibit G-1

to the Credit Agreement

 

PERMIT SCHEDULE

 

[See attached.]

 

G-1-1

 

Exhibit G-2

to the Credit Agreement

 

PROJECT BUDGET

 

[See attached.]

 

G-2-1

 

Exhibit G-3

to the Credit Agreement

 

PROJECT SCHEDULE

 

[See attached.]

 

G-3-1

 

Exhibit G-4

to the Credit Agreement

 

LITIGATION

 

[See Attached]

 

G-4-1

 

Exhibit G-5

to the Credit Agreement

 

HAZARDOUS SUBSTANCES DISCLOSURE

 

[See Attached]

 

G-5-1

 

Exhibit G-6

to the Credit Agreement

 

BASE CASE PROJECTIONS

 

[See Attached]

 

G-5-1

 

Exhibit H

to the Credit Agreement

 

LENDERS’ PROPORTIONATE SHARES

 

	
  Lenders

  	
   

  	
  Total Loan

  Commitment

  	
   

  	
  Percentage

  	
   

  
	
  The Royal Bank of Scotland
  plc

  	
   

  	
  $

  	
  49,400,000.00

  	
   

  	
  20.0

  	
  %

  
	
  Banco
  Espírito Santo SA New York Branch

  	
   

  	
  $

  	
  49,400,000.00

  	
   

  	
  20.0

  	
  %

  
	
  CoBank, ACB

  	
   

  	
  $

  	
  49,400,000.00

  	
   

  	
  20.0

  	
  %

  
	
  Société Générale

  	
   

  	
  $

  	
  49,400,000.00

  	
   

  	
  20.0

  	
  %

  
	
  Sovereign Bank

  	
   

  	
  $

  	
  49,400,000.00

  	
   

  	
  20.0

  	
  %

  
	
  Total

  	
   

  	
  $

  	
  247,000,000.00

  	
   

  	
  100.0000

  	
  %

  

 

H-1

 

Exhibit I

to the Credit Agreement

 

FORM OF NON-BANK CERTIFICATE

 

[LETTERHEAD OF NON-U.S. LENDER]

 

Date:                   ,       

 

The
Royal Bank of Scotland plc,

as
Administrative Agent

600
Washington Boulevard

Stamford,
CT 06901

Attn:
Rana Khan

Fax:  212 401-1494

Phone:
203 897-4277

Email:
Agencyops@rbs.com

 

Milford
Wind Corridor Phase II, LLC

179
Lincoln Street, Suite 500

Boston,
Massachusetts 02111

Attn:
Secretary

Fax: (617) 960-2888

Tel:
(617) 960-2889

Email:  general.counsel@firstwind.com

 

with a copy to:

 

First
Wind Energy, LLC

179
Lincoln Street, Suite 500

Boston,
Massachusetts 02111

Attn: General Counsel

Fax: (617) 960-2888

Tel: (617) 960-2889

 

Re:                               Milford Wind
Corridor Phase II, LLC — Non-Bank Certificate

 

Ladies
and Gentlemen:

 

[Insert name of applicable Bank] (“Non-U.S.
Lender”) hereby delivers this Non-Bank Certificate to you pursuant to Section 2.4.6
of the Credit Agreement, dated as of October 20, 2010 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Milford Wind Corridor Phase II, LLC, a Delaware limited liability
company, as borrower, The Royal Bank of Scotland plc, as administrative agent,
collateral agent and a lender, and the financial institutions party thereto
from time to time.  Unless otherwise

 

I-1

 

defined
herein, capitalized terms used herein have the meanings provided in the Credit
Agreement.

 

Non-U.S.
Lender hereby represents and warrants that:

 

1.                                       Non-U.S. Lender
is the sole record and beneficial owner of the Loans in respect of which it is
providing this Non-Bank Certificate. 
Non-U.S. Lender is not a “bank” for purposes of Section 881(c)(3)(A) of
the Internal Revenue Code of 1986, as amended (the “Code”).  In this regard, Non-U.S. Lender further
represents and warrants that Non-U.S. Lender is not subject to regulatory or
other Legal Requirements as a bank in any jurisdiction.

 

2.                                       Non-U.S. Lender
is not a 10-percent shareholder of Borrower within the meaning of Section 871(h) or
881(c)(3)(B) of the Code.

 

3.                                       Non-U.S. Lender
is not a controlled foreign corporation receiving interest from a related
person within the meaning of Section 881(c)(3)(C) of the Code.

 

IN
WITNESS WHEREOF, the undersigned has duly executed this Non-Bank Certificate as
of the date first written above.

 

 

	
   

  	
  [INSERT NAME OF NON-U.S. LENDER]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

I-2

 

Exhibit J

to the Credit Agreement

 

FORM OF ACCOUNT WITHDRAWAL REQUEST

 

Date:
                
    ,  

 

The
Royal Bank of Scotland plc,

as Administrative Agent

600
Washington Boulevard

Stamford,
CT 06901

Attn:
Rana Khan

Fax:  212 401-1494

Phone:
203 897-4277

Email:
Agencyops@rbs.com

 

Re:                               Milford Wind Corridor Phase
II, LLC — Account Withdrawal Request

 

Ladies
and Gentlemen:

 

I,
                                      ,
am a Responsible Officer of Milford Wind Corridor Phase II, LLC, a Delaware
limited liability company (“Borrower”), and am delivering this Account
Withdrawal Request pursuant to the Credit Agreement, dated as of October 20,
2010 (the “Credit Agreement”), among Borrower, The Royal Bank of
Scotland plc, as administrative agent, collateral agent and a lender, and the
financial institutions party thereto from time to time.  Unless otherwise defined herein or unless the
context otherwise requires, capitalized terms used in this Account Withdrawal
Request have the meanings provided in the Credit Agreement and section
references are references to sections of the Credit Agreement.

 

In
this Account Withdrawal Request, Borrower requests Administrative Agent to
direct Depositary to withdraw funds from the following Accounts and apply such
funds as provided herein (check each Account that
applies and include only the pages applicable to the Account(s) which
have been checked and only the applicable Schedules and/or Exhibits):

 

 

CONSTRUCTION ACCOUNT

 

Borrower
hereby requests that Administrative Agent instruct Depositary to withdraw from
the Construction Account the following amounts and to apply such amounts to the
following uses on
                  ,
20     (check each that applies):

 

o            Transfer  $                  
to the account and/or the designated payee(s) specified on Schedule I
hereto, using the account information, the address(es) and/or the wiring
instructions set forth therein, to pay the Project Costs specified on Schedule
I hereto.

 

o            [Only if
remaining amount is sufficient to reach Final Completion, as confirmed by the
Independent Engineer:]  Transfer
$                  
to the Revenue Account.

 

o            [Only on the
Closing Date:] 
Transfer
$                    
to the Affiliates as specified on Schedule I hereto, using the account
information, the address(es) and/or the wiring instructions set forth therein,
as reimbursement for Project Costs previously paid and specified on Schedule
I hereto.

 

o            [Only if the
Loans are repaid in full and Commitments terminated:]  Transfer
$                    
to the Repayment Account.

 

 

REVENUE ACCOUNT

 

Borrower
hereby requests that Administrative Agent instruct Depositary to withdraw from
the Revenue Account the following amounts and to apply such amounts to the
following uses on
                  ,
20    :

 

o            Transfer
$                  
to Administrative Agent for payment of amounts becoming due and payable under
the Credit Agreement.

 

o            Transfer
$                  
to the account and/or the designated payee(s) specified on Schedule I
hereto, using the account information, the address(es) and/or the wiring
instructions set forth therein, to pay the O&M Costs specified on Schedule
I hereto.

 

o            Transfer $5,000,000 to Pledgor at
the account listed below:

 

[                        ]

 

o            [Only if the
Loans are repaid in full and Commitments terminated:]  Transfer
$                    
to the Repayment Account.

 

 

INSURANCE PROCEEDS ACCOUNT

 

o            [Only if
related to a single Casualty Event of less than or equal to $500,000 (as
determined by the replacement value thereof):]  Transfer
$                  
to the account and/or the designated payee(s) specified on Schedule II
hereto, using the account information, the address(es) and/or the wiring
instructions set forth therein, to pay the repair or restoration costs
specified on Schedule II hereto.

 

o            [Only if
related to a single Casualty Event of less than or equal to $500,000 (as
determined by the replacement value thereof) and Borrower previously applied
the available amount of the contingency in the Project Budget to such repair or
restoration prior to the receipt of such Insurance Proceeds and Borrower now
seeks to transfer received Insurance Proceeds to the Construction Account (if
prior to Commercial Operation) or the Revenue Account (if after Commercial
Operation) and restore the available amount of the contingency in the Project
Budget:]

 

[If prior to Commercial Operation:]

 

o            Transfer
$                                  
to the Construction Account.

 

Such amount shall restore the available amount of
the contingency in the Project Budget.

 

[If after Commercial Operation:]

 

o            Transfer
$                                  
to the Revenue Account.

 

Such amount shall restore the available amount of
the contingency in the Project Budget.

 

o            [Only if the
conditions in Section 7.4.3 of the Credit Agreement have been met and
Administrative Agent has duly approved the making of repairs or restoration:]

 

Borrower hereby requests that Administrative Agent instruct Depositary
to withdraw from the Insurance Proceeds Account and transfer  $                  
to the designated payee(s) specified on Schedule II hereto, using
the account information, the address(es) and/or the wiring instructions set
forth therein, to pay or reimburse such Person(s) for the costs associated
with repairs or restoration of the Project related to the Casualty Event as
described on Schedule II hereto, on
                  ,
20    .

 

Borrower makes the following certifications with respect to the
transfer(s) requested above:

 

(a)           the repairs or restoration to be effected with such
withdrawal(s), payment(s) and transfer(s) are accurately described on
Schedule II hereto;

 

 

(b)           the cost of such repairs or restoration and the specific
amount requested to be paid over to or upon Borrower’s order are accurately set
forth on Schedule II hereto and Borrower requests such amount to pay the
cost thereof;

 

(c)           the aggregate amount requested by Borrower in respect of
such repairs or restoration (when added to any other Insurance Proceeds
received by Borrower in respect of the damage or destruction) does not exceed
the cost of such repairs or restorations;

 

(d)           a sufficient amount of funds is or will be available to
Borrower to complete the Project;

 

(e)           no Event of Default has occurred and is continuing other
than an Event of Default resulting solely from the damage or destruction from
the Casualty Event to be repaired or restored;

 

(f)            the conditions precedent in Section 7.4.3 of the
Credit Agreement have been satisfied or waived pursuant to the terms of the
Credit Agreement and such documents required to be delivered in connection with
such conditions precedent are attached hereto as Exhibits A, B
and C; and

 

(g)           repair or restoration of the Project is technically and
economically feasible by no later than the [    ],
20[    ] and a sufficient amount of funds is or will be
available to Borrower to make such repairs and restorations and, if during the
construction period, to achieve Completion.

 

o            Transfer
$                    
to the Repayment Account.

 

 

ASSET SALE ACCOUNT

 

Borrower
hereby requests that Administrative Agent instruct Depositary to withdraw from
the Asset Sale Account the following amounts and to apply such amounts to the
following uses on
                  ,
20     (check each that applies):

 

o            Transfer
$                    
to the Repayment Account.

 

[Only if Sale Proceeds are less than $50,000:]

 

[If such sale occurred prior to Commercial
Operation:]

 

o            Transfer
$                  
to the Construction Account.

 

[If such sale occurred after Commercial Operation:]

 

o            Transfer
$                  
to the Revenue Account.

 

 

REPAYMENT ACCOUNT

 

Borrower
hereby requests that Administrative Agent instruct Depositary to withdraw from
the Repayment Account the following amounts and to apply such amounts to the
following uses on
                  ,
20    :

 

o            Transfer
$                  
to Administrative Agent for repayment of loans[; provided, however, that
Borrower requests Administrative Agent to hold such funds until the last day of
the following Interest Periods: 
[                  ]].

 

 

[Include the following for all Account Withdrawal
Requests:]

 

I
have reviewed the provisions of the Credit Agreement and the Depositary
Agreement which are relevant to the furnishing of this Account Withdrawal
Request and hereby certify, on behalf of Borrower, in my capacity as
[                ]
thereof, and not in my individual capacity, that:

 

(i)            the withdrawals and transfers
requested herein comply with the terms and conditions of the Credit Agreement
(including but not limited to Article 7 of the Credit Agreement) and the
Depositary Agreement;

 

(ii)           to the extent that this Account
Withdrawal Request evidences, attests or requires compliance with any
covenants, representations, warranties or conditions precedent in the Credit
Agreement or the Depositary Agreement, I have made such examination or
investigation as was reasonably necessary to confirm that such covenants,
representations, warranties or conditions have been complied with; and

 

(iii)          no Default or Event of Default has
occurred and is continuing.

 

IN
WITNESS WHEREOF, I, the
[                ]
of Borrower, have caused this Account Withdrawal Request to be duly executed
and delivered as of the date first above written.

 

	
   

  	
  MILFORD
  WIND CORRIDOR PHASE II, LLC,

  
	
   

  	
  a
  Delaware limited liability company

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Schedule I

 

Payees of Proceeds of Withdrawal from the Construction Account

 

	
  Amount:

  	
   

  	
  Cost/Purpose:

  	
   

  	
  Name and Address of Designated Payee or

  Affiliate; Account Name and Number/Wire

  Transfer Information:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

Payees of Proceeds of Withdrawal from the Revenue Account

 

	
  Amount:

  	
   

  	
  Cost/Purpose:

  	
   

  	
  Name and Address of Designated Payee or

  Affiliate; Account Name and Number/Wire

  Transfer Information:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

 

Schedule II

 

Payees of Proceeds of Withdrawal from the Insurance Proceeds Account

 

	
  Amount:

  	
   

  	
  Cost/Purpose:

  	
   

  	
  Name and Address of Designated Payee;

  Account Name and Number/Wire Transfer

  Information:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

[Only if Insurance Proceeds relate to a Casualty Event of greater than
$500,000:]  Nature
of the repairs or restoration to be effected (categorized by each Person
performing such repairs or restoration):

 

 

Exhibit A

 

Independent Engineer’s Certificate

 

Based
on our review of the information provided to us by Milford Wind Corridor Phase
II, LLC, we hereby certify that the repair or restoration of the Project is
technically and economically feasible by no later than
[    ], 20[    ] and that a sufficient
amount of funds is or will be available to Borrower to make such repairs and
restorations and, if during the construction period, to achieve Completion.

 

 

	
  Date:
                ,
  20

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  GARRAD
  HASSAN AMERICA, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
  Title:

  

 

 

Exhibit B

 

Opinion of Counsel

(if requested)

 

[See Attached]

 

 

Exhibit C

 

Title Insurance, Endorsements, Mechanic’s Lien Waivers, Certificates,

Opinions or Other Documents

(if requested)

 

[See Attached]

 

 

Exhibit K

to the Credit Agreement

 

INSURANCE REQUIREMENTS

 

[to be provided]

 

K-1

 

Exhibit L

to the Credit Agreement

 

FORM
OF ANNUAL INSURANCE CERTIFICATE

 

[LETTERHEAD OF BORROWER’S INSURANCE BROKER]

 

Date:

 

The Royal Bank of Scotland
plc,

as Administrative Agent,
Collateral Agent and Lender

600
Washington Boulevard

Stamford,
CT 06901

Attn:
Rana Khan

Fax:  212 401-1494

Phone:
203 897-4277

Email:
Agencyops@rbs.com

 

Re:  Milford Wind Corridor Phase II, LLC - Annual
Insurance Certificate

 

Ladies and Gentlemen:

 

The undersigned, a duly
authorized representative of [    ],  (“Insurance
Broker”), hereby delivers this Annual Insurance Certificate to you in
accordance with Section 5.8.3 of that certain Credit Agreement, dated as of
October 20, 2010 (as amended, supplemented or otherwise modified from time to
time, the “Credit Agreement”), among Milford Wind Corridor Phase II,
LLC, a Delaware limited liability company, as borrower, The Royal Bank of
Scotland plc, as administrative agent, collateral agent and lender, and the
financial institutions party thereto from time to time.  Except as provided herein, all terms used
herein that are defined in the Credit Agreement shall have the meanings given
therein.

 

Insurance Broker hereby
makes the following statements in favor of Administrative Agent, Collateral
Agent and the Lenders as of the date hereof:

 

(1)          Insurance
Broker acknowledges that pursuant to the Credit Agreement, the Lenders are
providing financing to Borrower for, among other things, the development and
construction of the Project and in so doing are relying on this Annual
Insurance Certificate and on Borrower’s continued compliance with Section 5.17
of the Credit Agreement and Exhibit K to the Credit Agreement.

 

(2)          Attached as
Annex I is a description of the insurance, including a schedule of policy
expiration dates, maintained by or on behalf of the Borrower pursuant to
Exhibit K to the Credit Agreement.  All
premiums, whether financed or not, due thereon have been paid and are not in
arrears.

 

(3)          Insurance
Broker hereby certifies that, as of the date hereof, the insurance policies 

 

L-1

 

described
in Annex I hereto are in full force and effect and comply in all material
respects with the terms set forth in the Credit Agreement.

 

[the remainder of this page is intentionally left blank]

 

L-2

 

IN WITNESS WHEREOF,
Insurance Broker has caused this Annual Insurance Certificate to be duly
executed and delivered by an authorized officer of Insurance Broker as of the
date first above written.

 

 

	
   

  	
  [    ]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:
  [    ]

  
	
   

  	
  Title:
  [    ]

  

 

L-3

 

Exhibit M

to the Credit Agreement

 

FORM OF ASSIGNMENT AND ASSUMPTION

 

This Assignment and Assumption (the “Assignment and Assumption”)
is dated as of the Effective Date set forth below and is entered into by and
between the Assignor identified in item 1 below (the “Assignor”) and the
Assignee identified in item 2 below (the “Assignee”).  Capitalized terms used but not defined herein
shall have the meanings given to them in the Credit Agreement identified below
(as amended, the “Credit Agreement”), receipt of a copy of which is
hereby acknowledged by the Assignee.  The
Standard Terms and Conditions set forth in Annex 1 attached hereto (the “Standard
Terms and Conditions”) are hereby agreed to and incorporated herein by
reference and made a part of this Assignment and Assumption as if set forth
herein in full.

 

For an agreed consideration, the Assignor hereby irrevocably sells and
assigns to the Assignee, and the Assignee hereby irrevocably purchases and
assumes from the Assignor, subject to and in accordance with the Standard Terms
and Conditions and the Credit Agreement, as of the Effective Date inserted by
Administrative Agent as contemplated below (i) all of the Assignor’s rights and
obligations(10) in its capacity as a Lender under the Credit Agreement and any
other documents or instruments delivered pursuant thereto to the extent related
to the amount and percentage interest identified in Section 6 below of all of
such outstanding rights and obligations of the Assignor under the Credit
Agreement and the other Credit Documents and (ii) to the extent permitted to be
assigned under applicable law, all claims, suits, causes of action and any
other right of the Assignor (in its capacity as a Lender) against any Person,
whether known or unknown, arising under or in connection with the Credit
Agreement, the other Credit Documents and any other documents or instruments
delivered pursuant thereto or the loan transactions governed thereby or in any
way based on or related to any of the foregoing, including, but not limited to,
contract claims, tort claims, malpractice claims, statutory claims and all
other claims at law or in equity related to the rights and obligations sold and
assigned pursuant to clause (i) above (the rights and obligations sold and
assigned by the Assignor to the Assignee pursuant to clauses (i) and (ii) above
being referred to herein collectively as the “Assigned Interest”).  Each such sale and assignment is without
recourse to the Assignor and, except as expressly provided in this Assignment
and Assumption, without representation or warranty by the Assignor.

 

	
  1.

  	
  Assignor:

  	
   

  
	
   

  	
   

  	
   

  
	
  2.

  	
  Assignee:

  	
   

  
	
   

  	
   

  
	
   

  	
  [indicate
  [Affiliate][Approved Fund] of [identify Lender]]

  
	
   

  	
   

  
	
  3.

  	
  Borrower:

  	
  Milford
  Wind Corridor Phase II, LLC

  
	
   

  	
   

  	
   

  
	
  4.

  	
  Administrative
  Agent:

  	
  The
  Royal Bank of Scotland plc

  

 

(10)  The assignment under this Assignment and
Assumption is subject to the consent of Borrower pursuant to Section
13.17.2(c)(i) of the Credit Agreement.

 

M-1

 

	
  5.

  	
  Credit
  Agreement:

  	
  The
  $250,000,000.00  Credit Agreement, dated as of
  October 20, 2010, among Borrower, The Royal Bank of Scotland plc, as
  Administrative Agent, Collateral Agent and Lender, and the financial
  institutions party thereto from time to time.

  
	
   

  	
   

  	
   

  
	
  6.

  	
  Assigned
  Interest:

  	
   

  

 

Total Loan Commitment:

 

	
  Aggregate Principal

  Amount of Total Loan

  Commitment

  for all Lenders

  	
   

  	
  Aggregate Principal

  Amount of Total Loan

  Commitment

  Assigned

  	
   

  	
  Percentage of Aggregate

  Principal Amount of Total

  Loan Commitment

  Assigned(11)

  	
   

  
	
  $

  	
  [              ]

  	
   

  	
  $

  	
  [          ]

  	
   

  	
  [    ]

  	
  %

  
								

 

Effective
Date:  
                          
      , 20      .

 

[The Remainder of this Page is Intentionally Left
Blank]

 

(11) Must be equal to the percentage of Total LC
Commitment assigned in 6(a) above.

 

M-2

 

The terms set forth in this Assignment and Assumption are hereby agreed
to:

 

	
   

  	
  ASSIGNOR

  
	
   

  	
  [NAME
  OF ASSIGNOR]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:

  
	
   

  	
  Title:

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  ASSIGNEE

  
	
   

  	
  [NAME
  OF ASSIGNEE]

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  
	
   

  	
  Name:   

  
	
   

  	
  Title:

  

 

Assignment
and Assumption – Signature Pages

 

M-3

 

Acknowledged
and Approved:

 

	
  MILFORD
  WIND CORRIDOR PHASE II, LLC,

  	
   

  
	
  as Borrower(12)

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
			

 

(12)  If an Event of Default has occurred and
is continuing, do not include Borrower’s signature block.

 

Assignment and Assumption – Signature Pages

 

M-4

 

Acknowledged
and Approved:

 

	
  THE
  ROYAL BANK OF SCOTLAND PLC,

  	
   

  
	
  as Administrative Agent(13)

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  
	
  Name:

  	
   

  
	
  Title:

  	
   

  
			

 

(13)  Include if Administrative Agent’s consent
is required under Section 13.17.2(a)(ii) of the Credit Agreement.

 

Assignment and Assumption –
Signature Pages

 

M-5

 

ANNEX 1

To Assignment and Assumption

 

STANDARD TERMS AND CONDITIONS FOR

ASSIGNMENT AND ASSUMPTION

 

1.  Representations and Warranties.

 

1.1  Assignor.  The Assignor (a) represents and warrants
that (i) it is the legal and beneficial owner of the Assigned Interest, (ii) the
Assigned Interest is free and clear of any lien, encumbrance or other adverse
claim and (iii) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to
consummate the transactions contemplated hereby; and (b) assumes no
responsibility with respect to (i) any statements, warranties or
representations made in or in connection with the Credit Agreement or any other
Credit Document, (ii) the execution, legality, validity, enforceability,
genuineness, sufficiency or value of the Credit Documents or any collateral
thereunder, (iii) the financial condition of Borrower, any of its
Subsidiaries or Affiliates or any other Person obligated in respect of any
Credit Document or (iv) the performance or observance by Borrower, any of
its Subsidiaries or Affiliates or any other Person of any of their respective
obligations under any Credit Document.

 

1.2.  Assignee.  The Assignee (a) represents and warrants
that (i) it has full power and authority, and has taken all action
necessary, to execute and deliver this Assignment and Assumption and to consummate
the transactions contemplated hereby and to become a Lender under the Credit
Agreement, (ii) it meets all requirements of a Lender under the Credit
Agreement, (iii) the representations and warranties set forth in Section 13.20.5
of the Credit Agreement are accurate in all material respects with respect to
it, (iv) from and after the Effective Date, it (x) shall be bound by
the provisions of the Credit Agreement(14) and the other Credit Documents,
in each case, to the extent of the Assigned Interest, and (y) shall have
the obligations of a Lender thereunder, (v) it is sophisticated with
respect to decisions to acquire assets of the type represented by the Assigned
Interest and either it, or the Person exercising discretion in making its
decision to acquire the Assigned Interest, is experienced in acquiring assets
of such type, (vi) it has received a copy of the Credit Agreement, and has
received or has been accorded the opportunity to receive copies of the most
recent financial statements delivered pursuant to the Credit Agreement and such
other documents and information as it deems appropriate to make its own credit
analysis and decision to enter into this Assignment and Assumption and to
purchase the Assigned Interest, (vii) it has, independently and without
reliance upon Administrative Agent or any other Lender and based on such
documents and information as it has deemed appropriate, made its own credit
analysis and decision to enter into this Assignment and Assumption and to
purchase the Assigned Interest, and (viii) if it is a foreign Lender,
attached to the Assignment and Assumption is any documentation required to be
delivered by it pursuant to the terms of the Credit Agreement, duly completed
and executed by the Assignee; and (b) agrees that (i) it will,
independently and without reliance on Administrative Agent, the Assignor or any
other Lender, 

 

(14) 
One such provision is the requirement under Section 2.4.6 of the Credit
Agreement to deliver United States Internal Revenue Service Forms W-9, W-8BEN
or W-8ECI, as applicable, to Administrative Agent and Borrower.

 

M-6

 

and
based on such documents and information as it shall deem appropriate at the
time, continue to make its own credit decisions in taking or not taking action
under the Credit Documents, and (ii) it will perform in accordance with
their terms all of the obligations which by the terms of the Credit Documents
are required to be performed by it as a Lender.

 

2.  Payments.  From and after the Effective Date,
Administrative Agent shall make all payments in respect of the Assigned
Interest (including payments of principal, interest, fees and other amounts) to
the Assignor for (i) amounts which have accrued to but excluding the
Effective Date and (ii) amounts which have accrued from and after the
Effective Date.

 

3.  General Provisions.  This Assignment and Assumption shall be
binding upon, and inure to the benefit of, the parties hereto and their
respective successors and assigns.  This
Assignment and Assumption may be executed in any number of counterparts, which
together shall constitute one instrument. 
Delivery of an executed counterpart of a signature page of this
Assignment and Assumption by telecopy shall be effective as delivery of a
manually executed counterpart of this Assignment and Assumption.  This Assignment and Assumption shall be
governed by, and construed, interpreted and enforced in accordance with, the
internal law of the State of New York (including Section 5-1401 and Section 5-1402
of the General Obligations Law of the State of New York), without regard to
conflicts of laws principles that would require application of the laws of
another jurisdiction.

 

4.  Cost to Lenders.  Section 13.17.9 of the Credit Agreement
is incorporated herein by this reference.

 

M-7

 

Exhibit N

to the Credit Agreement

 

FORM OF CREDIT AGREEMENT JOINDER

 

[LETTERHEAD OF JOINING PARTY]

 

	
  Date:         
      ,   

  

 

	
  The
  Royal Bank of Scotland plc,

  
	
  as Administrative Agent

  
	
  600
  Washington Boulevard

  
	
  Stamford,
  CT 06901

  
	
  Attn:
  Rana Khan

  
	
  Fax:
  212 401-1494

  
	
  Phone:
  203 897-4277

  
	
  Email:
  Agencyops@rbs.com

  
	
   

  
	
  Milford
  Wind Corridor Phase II, LLC

  
	
  179
  Lincoln Street, Suite 500

  
	
  Boston,
  Massachusetts 02111

  
	
  Attn:
  Secretary

  
	
  Fax:
  (617) 960-2888

  
	
  Tel:
  (617) 960-2889

  
	
  Email:
  general.counsel@firstwind.com

  
	
   

  
	
  with a copy to:

  
	
   

  
	
  First Wind Energy, LLC

  
	
  179 Lincoln Street, Suite 500

  
	
  Boston, Massachusetts 02111

  
	
  Attn: General Counsel

  
	
  Fax: (617) 960-2888

  
	
  Tel: (617) 960-2889

  
	
   

  
	
  Re:

  	
  Milford
  Wind Corridor Phase II, LLC — Credit Agreement Joinder

  

 

Ladies
and Gentlemen:

 

[Insert name of applicable Joining Party] (“Joining
Party”) hereby delivers this Credit Agreement Joinder to you pursuant to Section 11.15
of the Credit Agreement, dated as of October 20, 2010 (as amended,
supplemented or otherwise modified from time to time, the “Credit Agreement”),
among Milford Wind Corridor Phase II, LLC, a Delaware limited liability
company, as borrower, The Royal Bank of Scotland plc, as administrative agent,
collateral agent 

 

N-1

 

and
a lender, and the financial institutions party thereto from time to time.  Capitalized terms used herein and not
otherwise defined have the meanings ascribed to such terms in the Credit
Agreement.

 

Joining
Party hereby requests to be joined as a Secured Party under the Credit
Documents, and by its signature and the acknowledgement of Administrative Agent
below, shall become a Secured Party under the Credit Documents.

 

Joining
Party agrees to be, and hereby is, bound by the terms, conditions and
obligations of Article 7, Article 11 and Sections 2.5.2, 13.1 and
13.20 of the Credit Agreement,  the
defined terms referred to in such Article and Sections and such other
provisions of the Credit Documents that bind and benefit the Secured Parties,
and agrees to be, and hereby is, entitled to all of the rights and benefits
provided under such Article, Sections and other provisions.

 

[The Remainder of this Page is Intentionally
Left Blank]

 

N-2

 

IN
WITNESS WHEREOF, the undersigned has duly executed this Credit Agreement
Joinder as of the date first written above.

 

 

	
   

  	
   

  	
  [INSERT NAME OF JOINING PARTY]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  
	
   

  	
   

  	
   

  	
  Title:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Accepted and Agreed to:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  THE ROYAL BANK OF SCOTLAND
  PLC,

  	
   

  	
   

  
	
  as Administrative Agent

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
   

  
	
   

  	
  Name:

  	
   

  	
   

  
	
   

  	
  Title:

  	
   

  	
   

  

 

Credit Agreement Joinder – Signature Page

 

N-3

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