EX-10.17 3 d658737dex1017.htm EX-10.17 EX-10.17

Exhibit 10.17

EQUITY CONTRIBUTION AGREEMENT

(FINANCING DOCUMENTS)

Dated as of June 27, 2013

by and among

MIDAMERICAN ENERGY HOLDINGS COMPANY,

as the Contributor,

SOLAR STAR FUNDING, LLC,

as the Company,

SSC XIX, LLC

as the SS1 Company Owner,

SSC XX, LLC

as the SS2 Company Owner,

SOLAR STAR CALIFORNIA XIX, LLC

and

SOLAR STAR CALIFORNIA XX, LLC,

as the Project Companies,

and

WELLS FARGO BANK, NATIONAL ASSOCIATION,

as the Collateral Agent

 

 


TABLE OF CONTENTS

 

 

         Page  

ARTICLE I. DEFINITIONS; INTERPRETATION

     2   

Section 1.1.

  Definitions      2   

Section 1.2.

  Interpretation      6   

ARTICLE II. EQUITY CONTRIBUTIONS

     6   

Section 2.1.

  Equity Contributions      6   

Section 2.2.

  Contribution Mechanics      7   

Section 2.3.

  Accelerated Equity Contributions      8   

Section 2.4.

  Deemed Equity Contributions      8   

ARTICLE III. EQUITY CREDIT SUPPORT

     8   

Section 3.1.

  General      8   

Section 3.2.

  Extraordinary Draw Circumstances      9   

Section 3.3.

  Excess Amounts      9   

Section 3.4.

  Cancellation or Return of Funds      10   

ARTICLE IV. BANKRUPTCY

     10   

Section 4.1.

  Bankruptcy Waiver by Contributor      10   

Section 4.2.

  Bankruptcy Events      11   

ARTICLE V. WAIVERS; UNCONDITIONALITY; SUBROGATION; REINSTATEMENT

     11   

Section 5.1.

  Waiver of Defenses      11   

Section 5.2.

  Obligations Unconditional      12   

Section 5.3.

  Subrogation      13   

Section 5.4.

  Reinstatement      13   

ARTICLE VI. PURCHASED INTERESTS IN BANKRUPTCY

     14   

Section 6.1.

  Required Purchase of Interests      14   

Section 6.2.

  Effect of Purchase of Purchased Interests      14   

Section 6.3.

  Subordinate Nature of Purchased Interests      14   

Section 6.4.

  No Voting Rights      15   

Section 6.5.

  Obligations Unconditional      15   

Section 6.6.

  Notice of Purchase      15   

ARTICLE VII. REPRESENTATIONS AND WARRANTIES

     15   

Section 7.1.

  Organization; Authority; Powers      15   

Section 7.2.

  No Conflict      15   

Section 7.3.

  Enforceability      16   

Section 7.4.

  No Litigation      16   

Section 7.5.

  Equity Interests      16   


Section 7.6.

  Compliance with Law      16   

Section 7.7.

  Financial Statements      16   

Section 7.8.

  Adequate Information      16   

Section 7.9.

  Investment Company Act      16   

Section 7.10.

  Solvency      16   

Section 7.11.

  Pari Passu Obligations      16   

ARTICLE VIII. COVENANTS

     17   

Section 8.1.

  Existence      17   

Section 8.2.

  Compliance with Laws      17   

Section 8.3.

  Fundamental Changes      17   

Section 8.4.

  Further Assurances      17   

ARTICLE IX. MISCELLANEOUS

     17   

Section 9.1.

  Notices      17   

Section 9.2.

  Entire Agreement      17   

Section 9.3.

  Severability      18   

Section 9.4.

  Headings      18   

Section 9.5.

  GOVERNING LAW      18   

Section 9.6.

  Jurisdiction; Consent to Service of Process      18   

Section 9.7.

  WAIVERS      18   

Section 9.8.

  Amendments      19   

Section 9.9.

  Assignments      19   

Section 9.10.

  Counterparts      20   

Section 9.11.

  No Waiver      20   

Section 9.12.

  Specific Performance      20   

Section 9.13.

  Termination      20   

Section 9.14.

  Rights of Collateral Agent      20   

 

ii


This EQUITY CONTRIBUTION AGREEMENT (FINANCING DOCUMENTS) (this “Agreement”), dated as of June 27, 2013, is entered into by and among MIDAMERICAN ENERGY HOLDINGS COMPANY, an Iowa corporation (the “Contributor”), SOLAR STAR FUNDING, LLC, a Delaware limited liability company (the “Company”), SSC XIX, LLC, a Delaware limited liability company (the “SS1 Company Owner”), SSC XX, LLC, a Delaware limited liability company (“SS2 Company Owner” and, together with the SS1 Company Owner, the “Project Company Owners”), SOLAR STAR CALIFORNIA XIX, LLC, a Delaware limited liability company (“SS1 Company”), SOLAR STAR CALIFORNIA XX, LLC, a Delaware limited liability company (“SS2 Company” and together with SS1 Company, the “Project Companies” and each individually, a “Project Company”) and Wells Fargo Bank, National Association, as the Collateral Agent under the Intercreditor Agreement referenced below (in such capacity, together with any successor Collateral Agent appointed pursuant to the Intercreditor Agreement, the “Collateral Agent”). Capitalized terms used in this Agreement are defined as set forth in Section 1.1.

R E C I T A L S:

WHEREAS, the Contributor indirectly owns 100% of the outstanding Equity Interests in ASVP Holding, LLC (the “Pledgor”), and the Pledgor directly or indirectly owns 100% of the outstanding Equity Interests in each of the Obligors.

WHEREAS, (a) the Company, SS1 Company Owner and SS1 Company intend to develop, design, engineer, procure, construct, commission, finance, own, operate, maintain and use an alternating current solar photovoltaic electric generating facility with a capacity of approximately 309 MW at the delivery point (approximately 318 MW nameplate capacity) owned by SS1 Company, together with an on-site electrical substation, a 230 kV switching station, certain monitoring and maintenance infrastructure and other ancillary facilities to be located in Kern and Los Angeles Counties, California (as more fully defined in the Intercreditor Agreement, the “SS1 Project”) and (b) the Company, SS2 Company Owner and SS2 Company intend to develop, design, engineer, procure, construct, commission, finance, own, operate, maintain and use an alternating current solar photovoltaic electric generating facility with a capacity of approximately 270 MW at the delivery point (approximately 279 MW nameplate capacity) owned by SS2 Company, together with two on-site electrical substations, two 230 kV switching stations, certain monitoring and maintenance infrastructure and other ancillary facilities to be located in Kern County, California (as more fully defined in the Intercreditor Agreement, the “SS2 Project” and, together with the SS1 Project, the “Projects” and each individually, a “Project”);

WHEREAS, the Obligors intend to incur certain Indebtedness pursuant to the Financing Documents and, in connection therewith, enter into the Collateral Agency and Intercreditor Agreement, dated as of the Closing Date (as amended, amended and restated, supplemented, refinanced, replaced or otherwise modified and in effect from time to time, the “Intercreditor Agreement”), among the Company, the Project Company Owners, the Project Companies, the Pledgor, the Administrative Agent, the Collateral Agent and Indenture Trustee named therein and each other Person party thereto from time to time;


WHEREAS, the Contributor has agreed to make or cause to be made Equity Contributions to the Obligors from time to time in accordance with the terms hereof; and

WHEREAS, in order to induce the Secured Parties to extend credit and other financial accommodations to or for the benefit of, and purchase debt securities of, the Company pursuant to the Financing Documents, the parties have agreed to the provisions set forth in this Agreement.

NOW, THEREFORE, in consideration of the foregoing premises and the agreements, provisions and covenants herein contained, and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties hereto agree as follows:

A G R E E M E N T:

ARTICLE I.

DEFINITIONS; INTERPRETATION

Section 1.1. Definitions. Each capitalized term used and not otherwise defined herein (including in the introductory paragraph and recitals hereto) shall have the meaning assigned to such term (whether directly or by reference to another agreement or document) in the Intercreditor Agreement. In addition to the terms defined in the Intercreditor Agreement, the following terms used herein, including in the introductory paragraph and recitals hereto, shall have the following meanings:

Acceptable L/C Issuer” shall mean a financial institution whose unsecured and unguaranteed long-term senior debt obligations are rated at least A3 by Moody’s Investors Service, Inc. or at least A- by Standard & Poor’s Ratings Group, Inc.

Account Bank” shall mean, with respect to a Cash Collateral Account, the bank at which such Cash Collateral Account is established and maintained.

Agreement” shall have the meaning assigned to such term in the introductory paragraph of this Agreement.

Cash Collateral Account” shall have the meaning assigned to such term in Section 3.1(a).

Collateral Agent” shall have the meaning assigned to such term in the introductory paragraph of this Agreement.

Commitments” shall have the meaning assigned to such term in the Reimbursement Agreement.

Company” shall have the meaning assigned to such term in the introductory paragraph of this Agreement.

Construction Account” shall have the meaning assigned to such term in the Depositary Agreement.

 

2


Contribution Date” shall mean each date that an Equity Contribution is required to be made or is made by the Contributor.

Contribution Notice” shall mean a notice delivered by the Company (or the Collateral Agent, as permitted under Section 2.2(a)) to the Contributor setting forth the requested Contribution Date (which shall be no sooner than five Business Days following the date such notice is delivered) and the amount of the requested Equity Contribution.

Contributor” shall have the meaning set forth in the introductory paragraph of this Agreement.

Defaulted Payment” shall have the meaning assigned to such term in Section 6.1.

EPC ECA (SS1 Project)” shall mean the Sponsor Equity Contribution Agreement, dated as of December 28, 2012, among the SS1 Company, the SS1 Company Owner, the Contributor, SunPower Corporation, Systems, and SunPower Corporation.

EPC ECA (SS2 Project)” shall mean the Sponsor Equity Contribution Agreement, dated as of December 28, 2012, among the SS2 Company, the SS2 Company Owner, the Contributor, SunPower Corporation, Systems, and SunPower Corporation.

EPC ECAs” shall mean, collectively, the EPC ECA (SS1 Project) and the EPC ECA (SS2 Project).

Equity Commitment” shall mean $2,750,600,000.00

Equity Contribution” shall mean, without duplication, (a) a deemed (in accordance with Section 2.4) cash equity contribution by the Contributor to equity of the Pledgor and (b) a deemed (in accordance with Section 2.4) cash equity contribution (with the cash equity contribution made under clause (a) above) by the Pledgor to equity of the Company or either Project Company.

Equity Letter of Credit” shall mean an irrevocable letter of credit (including any replacement irrevocable letter of credit provided therefor from time to time in accordance with Section 3.1(b)) (a) that is provided by, or on behalf of, the Contributor in support of the Equity Commitment, (b) that is issued by an Acceptable L/C Issuer, (c) that names the Collateral Agent (for the benefit of the Secured Parties) as the beneficiary thereunder, (d) for which the reimbursement obligations are not secured by any of the Collateral, (e) that names a Person other than any Obligor as the account party subject to payment of reimbursement obligations thereunder (and with respect to which none of the Obligors is directly or indirectly liable for the payment of reimbursement obligations) and (f) is in form and substance reasonably satisfactory to the Collateral Agent.

Intercreditor Agreement” shall have the meaning assigned to such term in the recitals to this Agreement.

Material Adverse Effect” shall mean a material and adverse effect on the Contributor’s ability to perform its obligations under this Agreement.

 

3


MIPA (AV 1 Project)” shall mean the Membership Interest Purchase Agreement for purchase of membership interests in Solar Star California XIX, LLC, dated as of December 28, 2012, by and among SunPower Corporation, Systems, SunPower Corporation and the SS1 Company Owner.

MIPA (AV 2 Project)” shall mean the Membership Interest Purchase Agreement for purchase of membership interests in Solar Star California XX, LLC, dated as of December 28, 2012, by and among SunPower Corporation, Systems, SunPower Corporation and the SS2 Company Owner.

MIPAs” shall mean, collectively, the MIPA (AV 1 Project) and the MIPA (AV 2 Project).

Pledgor” shall have the meaning assigned to such term in the recitals to this Agreement.

Pre-Closing Contributions” shall mean all amounts which have been loaned or contributed by or on behalf of the Contributor or the Pledgor to or for the benefit of the Obligors on or prior to the date hereof, which amounts are equal to $292,784,486.36.

Pre-Closing Purchase Price Payments” shall mean all amounts paid by or on behalf of the Project Company Owners to SunPower Corporation, Systems and SunPower Corporation prior to the date hereof as purchase price for the Equity Interests of the Project Companies pursuant to the MIPAs, which amounts are equal to $34,209,096.

Project Company” and “Project Companies” shall have the meaning assigned to such terms in the introductory paragraph of this Agreement.

Project Company Owners” shall have the meaning assigned to such term in the introductory paragraph of this Agreement.

Project” and “Projects” shall have the meaning assigned to such terms in the recitals to this Agreement.

Project Costs” shall have the meaning assigned to such term in the Depositary Agreement.

Purchased Interests” shall have the meaning assigned to such term in Section 6.1.

Reimbursed Contributions” shall mean amounts repaid or reimbursed by the Obligors to the Contributor or an Affiliate of the Contributor as described in clause (g) of the definition of “Project Costs” in the Depositary Agreement.

Required Equity Contribution” shall have the meaning assigned to such term in Section 2.1(a).

Required Ratings” of any Person shall mean credit ratings of such Person’s unsecured long-term senior debt obligations of at least two of the following: (a) Baa3 from Moody’s Investors Service, Inc., (b) BBB- from Standard & Poor’s Ratings Group, Inc. and (c) BBB- from Fitch Ratings.

 

4


Solvent” shall mean, with respect to any Person, that, as of the date of determination, both (a) (i) the sum of such Person’s debt (including contingent liabilities) does not exceed the present fair saleable value of such Person’s present assets, (ii) such Person’s capital is not unreasonably small in relation to its business as contemplated on the applicable date of determination and (iii) such Person has not incurred and does not intend to incur, or believe (nor should it reasonably believe) that it will incur, debts beyond its ability to pay such debts as they become due (whether at maturity or otherwise); and (b) such Person is “solvent” within the meaning given that term and similar terms under the Bankruptcy Law and other applicable Governmental Rules relating to fraudulent transfers and conveyances. For purposes of this definition, the amount of any contingent liability at any time shall be computed as the amount that, in light of all of the facts and circumstances existing at such time, represents the amount that can reasonably be expected to become an actual or matured liability (irrespective of whether such contingent liabilities meet the criteria for accrual under Statement of Financial Accounting Standard No. 5).

SS1 Company” shall have the meaning assigned to such term in the introductory paragraph of this Agreement.

SS1 Company Owner” shall have the meaning assigned to such term in the introductory paragraph of this Agreement.

SS1 Project” shall have the meaning assigned to such term in the recitals to this Agreement.

SS2 Company” shall have the meaning assigned to such term in the introductory paragraph of this Agreement.

SS2 Company Owner” shall have the meaning assigned to such term in the introductory paragraph of this Agreement.

SS2 Project” shall have the meaning assigned to such term in the recitals to this Agreement.

Termination Date” shall have the meaning set forth in Section 9.13.

Unfunded Commitment” shall mean, as of any date of determination, the positive result (if any) of the following (without duplication):

(a) the Equity Commitment, minus

(b) the total Equity Contributions made or deemed made hereunder (including as a result of (i) any drawing on the Equity Letter of Credit or a Cash Collateral Account pursuant to Section 2.2(b), (ii) voluntary Equity Contributions made as described in Section 2.1(c)(x), (iii) accelerated Equity Contributions made pursuant to Section 2.3 or (iv) the purchase by the Contributor of Purchased Interests pursuant to Section 6.1) on or prior to such date, minus

 

5


(c) the total amount of any Pre-Closing Contributions, minus

(d) the total amount of any (i) Pre-Closing Purchase Price Payments and (ii) any additional amounts paid by or on behalf of the Project Company Owners to SunPower Corporation, Systems and SunPower Corporation as additional “Purchase Price” adjustments under, and as defined in, the MIPAs, minus

(e) the total equity contributions made on or prior to such date by the Contributor pursuant to the EPC ECAs (but, for certainty, without duplication of the Equity Contributions), minus

(f) the aggregate principal amount of the Series A Senior Secured Notes and, to the extent issued on or prior to such date, the Additional Senior Secured Notes, minus

(g) all Project Revenues (as defined in the Depositary Agreement) deposited into the Revenue Account (as defined in the Depositary Agreement) on or prior to such date, plus

(h) all Reimbursed Contributions that have been paid to the Contributor or an Affiliate of the Contributor on or prior to such date.

Section 1.2. Interpretation. Unless otherwise provided herein, the rules of interpretation set forth in the Intercreditor Agreement shall apply, mutatis mutandis, to this Agreement (including its introductory paragraph and recitals).

ARTICLE II.

EQUITY CONTRIBUTIONS

Section 2.1. Equity Contributions.

(a) Required Equity Contributions. At any time prior to the Termination Date that there are no amounts on deposit in the Construction Account to pay for Project Costs or amounts on deposit in the Construction Account are not available for the payment of Project Costs (including as a result of the occurrence and continuance of an Event of Default), the Contributor shall make, or cause to be made, an Equity Contribution (a “Required Equity Contribution”), in accordance with the mechanics set forth in Section 2.2(a), in an amount (as set forth in the Contribution Notice described below) equal to (subject to Section 2.1(b)) the amount of Project Costs then due and payable or reasonably anticipated to become due and payable within the following 30-day period on the Contribution Date set forth in a Contribution Notice delivered by the Company to the Contributor no less than five Business Days prior to such Contribution Date.

(b) Maximum Equity Contributions. Notwithstanding anything to the contrary set forth therein, the Contributor shall not be obligated to make any Equity Contribution pursuant to Section 2.1(a) in an amount that would exceed the then Unfunded Commitment.

 

6


(c) No Limitation on Voluntary Equity Contributions. Nothing herein shall be construed to prohibit or otherwise limit the Contributor or any of its Affiliates from depositing or causing to be deposited voluntary Equity Contributions (x) in the Construction Account or (y) other accounts, in each case at the time and in the amount elected by the Contributor in its sole discretion.

Section 2.2. Contribution Mechanics.

(a) Cash Funding. The Contributor (i) shall make each Required Equity Contribution by depositing an amount equal to such Required Equity Contribution, as specified in the applicable Contribution Notice, in the Construction Account no later than 1:00 p.m. (New York City time) on the Contribution Date specified in such Contribution Notice and (ii) may make, from time to time in its sole discretion, Equity Contributions upon delivery of notice thereof to the Collateral Agent by depositing an amount equal to such Equity Contribution in the Construction Account. If the Company shall not have delivered a Contribution Notice for any Required Equity Contribution to the Contributor on or prior to the Business Day prior to the first payment date for the Project Costs that are to be paid with the proceeds of such Required Equity Contribution, the Collateral Agent shall be permitted (but shall not be required) to deliver such Contribution Notice on behalf of the Company to the Contributor.

(b) Funding by Draws or Transfers. If, at any time that the Equity Letter of Credit is then in effect or a Cash Collateral Account is then being maintained, the Contributor does not deposit, or cause to be deposited, a Required Equity Contribution in the Construction Account on the Contribution Date specified in the applicable Contribution Notice, the Collateral Agent may (or, if the Collateral Agent receives a written notice from the Contributor certifying that it does not have sufficient funds to make, or intends for any reason not to make, a Required Equity Contribution on any Contribution Date and stating the amount of such unfunded Required Equity Contribution, the Collateral Agent shall):

(i) if the Equity Letter of Credit is then in effect, draw the Equity Letter of Credit in the amount of such unfunded Required Equity Contribution, and the Collateral Agent shall deposit, or cause to be deposited, the proceeds of such drawing directly into the Construction Account; or

(ii) if a Cash Collateral Account has been established and funded pursuant to Section 3.1(a) or 3.2 and is then being maintained, direct the applicable Account Bank to transfer funds in the amount of such unfunded Required Equity Contribution from such Cash Collateral Account to the Construction Account.

The Collateral Agent’s failure to draw upon the Equity Letter of Credit or direct funds to be withdrawn from a Cash Collateral Account in accordance with this Section 2.2(b) shall not limit or relieve the obligations of the Contributor under Section 2.2(a); provided that any failure of the Contributor to fund a Required Equity Contribution resulting from a failure by the Collateral Agent to draw or direct in accordance with this Section 2.2(b) shall not constitute a default of the Contributor hereunder, a Default or an Event of Default.

 

7


Section 2.3. Accelerated Equity Contributions. At any time prior to the Termination Date, if (a) a Trigger Event has occurred and is continuing or (b) requested by the Required Secured Parties after the occurrence and during the continuance of an Event of Default (which request shall be made by the Required Secured Parties only if the Secured Parties comprising the Required Secured Parties shall have reasonably determined that such Event of Default could reasonably be expected to result in a Material Adverse Effect (as defined in the Depositary Agreement)), in either case, as indicated in a written notice of the Collateral Agent delivered to the Contributor, the Contributor shall make or cause to be made Equity Contributions, within five Business Days following receipt of such notice, to the Construction Account in an amount equal to the then Unfunded Commitment. If the Contributor fails to make or cause to be made the Equity Contributions as and when required to be made pursuant to the immediately preceding sentence, the Collateral Agent may, if applicable, draw upon the Equity Letter of Credit or direct the transfer of amounts from any Cash Collateral Account, in either case, in an amount equal to the lesser of (i) the amount of the Equity Contribution required to be made pursuant to this Section 2.3 and (ii) the stated amount of the Equity Letter of Credit or the amount then on deposit in such Cash Collateral Account, as applicable.

Section 2.4. Deemed Equity Contributions. Upon (a) the deposit by the Contributor of an Equity Contribution in the Construction Account pursuant to Section 2.1(c)(x) or 2.2(a), or the deposit by the Contributor of an Equity Contribution in any other account pursuant to Section 2.1(c)(y), (b) the deposit by the Collateral Agent of the proceeds of a drawing under the Equity Letter of Credit in the Construction Account pursuant to Section 2.2(b)(i) or (c) the transfer by the applicable Account Bank of amounts from a Cash Collateral Account to the Construction Account pursuant to Section 2.2(b)(ii), and notwithstanding that any such amounts shall be deposited directly into the Construction Account, (i) the Contributor shall be deemed to have made an equity contribution to MidAmerican Renewables, LLC in the amount of such Equity Contribution or deposited or transferred amount, (ii) MidAmerican Renewables, LLC shall be deemed to have made an equity contribution to MidAmerican Solar, LLC in the amount of such Equity Contribution or deposited or transferred amount, (iii) MidAmerican Solar, LLC shall be deemed to have made an equity contribution to the Pledgor in the amount of such Equity Contribution or deposited or transferred amount, and (iv) the Pledgor shall be deemed to have made an equity contribution to the Company in the amount of such Equity Contribution or deposited or transferred amount.

ARTICLE III.

EQUITY CREDIT SUPPORT

Section 3.1. General.

(a) Delivery; Maintenance. Within 30 days following any date on which the Contributor ceases to maintain the Required Ratings, the Contributor shall (i) deliver, or cause to be delivered, to the Collateral Agent the Equity Letter of Credit or (ii) fund, or cause to be funded, a cash collateral account established for the sole purpose of holding such amounts (which cash collateral account shall be pledged by the Contributor to the Collateral Agent (for the benefit of the Secured Parties) on customary terms) (a “Cash Collateral Account”), in either case, in an amount equal to the then Unfunded Commitment. At all times thereafter and prior to the earlier of (A) any date on which the Contributor reacquires the Required Ratings and (B) the Termination Date, the Contributor shall maintain the Equity Letter of Credit or a Cash Collateral Account, in either case, in an amount equal to the then Unfunded Commitment.

 

8


(b) Replacement. The Contributor may replace, or cause to be replaced, the Equity Letter of Credit or a Cash Collateral Account with one or more substitute Equity Letters of Credit and/or Cash Collateral Accounts from time to time, and the Collateral Agent shall deliver to the Contributor all documentation in its possession and reasonably requested by the Contributor in order to effect such replacement.

Section 3.2. Extraordinary Draw Circumstances. If at any time that an Equity Letter of Credit is in effect:

(a) the Contributor shall have failed to cause the Equity Letter of Credit to be maintained in a stated amount at least equal to the Unfunded Commitment and such failure has continued for a period of 30 days or more;

(b) the Contributor shall have failed to cause the Equity Letter of Credit to be renewed, extended or replaced at least 30 days prior to the stated expiration date thereof;

(c) the issuer of the Equity Letter of Credit shall cease to be an Acceptable L/C Issuer and such cessation has continued for a period of at least 30 days without replacement with a substitute Equity Letter of Credit or such issuer resuming its status as an Acceptable L/C Issuer; or

(d) the Contributor shall be subject to any Bankruptcy Event,

the Collateral Agent, promptly upon receiving written notice from the Company, the Contributor, the Administrative Agent, the Required L/C Facility Lenders or the Required Secured Parties of the conclusion or commencement, as applicable, of the above specified period, if applicable, shall draw upon the Equity Letter of Credit in an amount equal to the stated amount of the Equity Letter of Credit in accordance with the terms thereof, and the Collateral Agent shall promptly deposit or cause to be deposited the proceeds thereof into a Cash Collateral Account established for the sole purpose of holding such draw proceeds. Funds on deposit in any such Cash Collateral Account shall be, as applicable, (i) transferred to the Construction Account in accordance with Section 2.2(b)(ii) or (ii) released to the Contributor in an amount equal to the stated amount of any replacement Equity Letter of Credit provided by the Contributor pursuant to Section 3.1(b) or otherwise partially released to the Contributor from time to time in accordance with Section 3.3(b).

Section 3.3. Excess Amounts. If, at any time that the Equity Letter of Credit or a Cash Collateral Account is required to be in place, the stated amount of the Equity Letter of Credit or the amount on deposit in such Cash Collateral Account, as applicable, exceeds the then Unfunded Commitment:

(a) in case of an Equity Letter of Credit, the Contributor may (i) deliver to the Collateral Agent, and the Collateral Agent shall promptly thereafter sign and deliver to the Contributor, a reduction certificate in the form attached to the Equity Letter of Credit (or otherwise in a form reasonably acceptable to the issuer of the Equity Letter of Credit)

 

9


for countersignature by the Contributor requesting a reduction in the stated amount of the Equity Letter of Credit in the amount of such excess and (ii) deliver, or cause to be delivered, such reduction certificate to the issuer of the Equity Letter of Credit, and the stated amount of the Equity Letter of Credit shall thereupon be reduced as requested in such reduction certificate; or

(b) in the case of a Cash Collateral Account, upon request by the Contributor, the Collateral Agent shall instruct the applicable Account Bank to transfer an amount equal to such excess to, or as directed by, the Contributor.

Prior to taking any action under this Section 3.3, the Collateral Agent shall be entitled to receive an officer’s certificate from the Contributor (upon which it may conclusively rely) certifying that such action is permitted by this Agreement.

Section 3.4. Cancellation or Return of Funds. Promptly upon the earlier of (a) any date on which the Contributor reacquires the Required Ratings and (b) the Termination Date, the Collateral Agent shall, as applicable, (i) in case of an Equity Letter of Credit, return the Equity Letter of Credit to, or as directed by, the Contributor for cancellation, or (ii) in the case of a Cash Collateral Account, instruct the applicable Account Bank to transfer all amounts on deposit therein to, or as directed by, the Contributor. Prior to taking any action with respect to Sections 3.4(a) or (b), the Collateral Agent shall be entitled to receive an officer’s certificate from the Contributor (upon which it may conclusively rely) certifying that such action is permitted by this Agreement.

ARTICLE IV.

BANKRUPTCY

Section 4.1. Bankruptcy Waiver by Contributor. The Contributor hereby irrevocably waives, to the extent it may do so under applicable Governmental Rules, any protection to which it may be entitled under Sections 365(c)(1), 365(c)(2) and 365(e)(2) of the U.S. Bankruptcy Code or equivalent provisions of any other Bankruptcy Laws, or any successor provision of any Bankruptcy Law of similar import, in the event of any Bankruptcy Event with respect to any Obligor or the Pledgor. Specifically, in the event that the trustee (or similar official) in a Bankruptcy Event with respect to any Obligor or the Pledgor or the debtor-in-possession takes any action (including the institution of any action, suit or other proceeding for the purpose of enforcing the rights of any Obligor under this Agreement), the Contributor shall not assert any defense, claim or counterclaim denying liability hereunder on the basis that this Agreement is an executory contract or a “financial accommodation” that cannot be assumed, assigned or enforced or on any other theory directly or indirectly based on Section 365(c)(1), 365(c)(2) or 365(e)(2) of the U.S. Bankruptcy Code or equivalent provisions of any other Bankruptcy Laws, or any successor provision of any Bankruptcy Law of similar import. If a Bankruptcy Event with respect to any Obligor or the Pledgor shall occur, the Contributor agrees, after the occurrence of such Bankruptcy Event, to reconfirm in writing, to the extent permitted by applicable Governmental Rules, its pre-petition waiver of any protection to which it may be entitled under Sections 365(c)(1), 365(c)(2) and 365(e)(2) of the U.S. Bankruptcy Code or equivalent provisions of any other Bankruptcy Laws, or any successor provision of any Bankruptcy Law of similar import, and, to give effect to such waiver, the Contributor consents, to the extent permitted by applicable Governmental Rules, to the assumption and enforcement of each provision of this Agreement by the debtor-in-possession or such Obligor’s or the Pledgor’s trustee in bankruptcy, as the case may be.

 

10


Section 4.2. Bankruptcy Events. No obligation of the Contributor under this Agreement shall be altered, limited or affected by any Bankruptcy Event relating to any Obligor or the Pledgor, or by any defense which any Obligor may have by reason of any order, decree or decision of any court or administrative body resulting from any such Bankruptcy Event.

ARTICLE V.

WAIVERS; UNCONDITIONALITY; SUBROGATION; REINSTATEMENT

Section 5.1. Waiver of Defenses. The Contributor hereby unconditionally and irrevocably waives and relinquishes, to the maximum extent permitted by applicable Governmental Rules, all rights or remedies accorded by applicable Governmental Rules to sureties or guarantors and agrees not to assert or take advantage of any such right or remedies, including:

(a) any right to require any Secured Party to proceed against any Obligor or any other Person or to proceed against or exhaust any security held by any Secured Party at any time or to pursue any other remedy in any Secured Party’s power before proceeding against the Contributor to enforce the provisions of this Agreement;

(b) any defense that may arise by reason of the incapacity, lack of power or authority, death, dissolution, merger, termination or disability of any Obligor, the Pledgor or any other Person or the failure of any Secured Party to file or enforce a claim against the estate (in administration, bankruptcy or any other proceeding) of any Obligor, the Pledgor or any other Person;

(c) demand, presentment, protest and notice of any kind (other than any notices expressly required to be delivered to the Contributor hereunder), creation or incurring of any new or additional indebtedness or obligation or of any action or non-action on the part of any Obligor, the Pledgor or any Secured Party, any endorser or creditor of the foregoing or on the part of any other Person under any Financing Document;

(d) any defense based upon an election of remedies by the Secured Parties, including an election to proceed by non-judicial rather than judicial foreclosure, which destroys or otherwise impairs the subrogation rights of the Contributor, the right of the Contributor to proceed against any Obligor, the Pledgor or another Person for reimbursement, or both;

(e) any defense based on any offset against any amounts which may be owed by any Person to the Contributor, any Obligor or the Pledgor or for any reason whatsoever;

 

11


(f) any defense based upon any Governmental Rule which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal;

(g) any defense based on any failure to act, delay or omission whatsoever on the part of any Obligor, the Pledgor or the Contributor or the failure by any Obligor, the Pledgor or the Contributor to do any act or thing or to observe or perform any covenant, condition or agreement to be observed or performed by it under the Financing Documents;

(h) any defense, setoff or counterclaim which may at any time be available to or asserted by any Obligor, the Pledgor or the Contributor against any Secured Party or any other Person under the Financing Documents based on or related to the bankruptcy or insolvency of any Obligor or the Pledgor;

(i) any duty on the part of any Secured Party to disclose to the Contributor any facts such Secured Party may now or hereafter know about any Obligor or the Pledgor, regardless of whether such Secured Party has reason to believe that any such facts materially increase the risk beyond that which the Contributor intends to assume, or have reason to believe that such facts are unknown to the Contributor, or have a reasonable opportunity to communicate such facts to the Contributor (the Contributor acknowledging that it is fully responsible for being and keeping informed of the financial condition of each Obligor and the Pledgor);

(j) any defense based on any change in the time, manner or place of any payment under, or in any other term of, the Financing Documents or any other amendment, renewal, extension, acceleration, compromise or waiver of or any consent or departure from the terms of the Financing Documents (other than this Agreement);

(k) any defense based upon any borrowing or grant of a security interest under Section 364 of the U.S. Bankruptcy Code; and

(l) any other circumstance (including any statute of limitations) or any existence of or reliance on any representation by any Secured Party that might otherwise constitute a defense available to, or discharge of, any guarantor or surety (other than setoff against the Contributor or, subject to Section 5.4, the defense of payment of the applicable amounts).

Section 5.2. Obligations Unconditional. All rights of the Secured Parties and all obligations of the Contributor hereunder shall be absolute and unconditional irrespective of:

(a) any lack of validity, legality or enforceability of any Financing Document (other than this Agreement);

(b) the failure of any Secured Party to (i) assert any claim or demand or to enforce any right or remedy against any Obligor, the Pledgor, the Contributor or any other Person under the provisions of the Financing Documents or otherwise or (ii) exercise any right or remedy against any Collateral;

 

12


(c) any change in the time, manner or place of payment of, or in any other term of, all or any portion of the Secured Obligations, or any other extension or renewal of any obligation of any Obligor, the Pledgor, the Contributor or otherwise;

(d) any reduction, limitation, impairment or termination of any of the Secured Obligations for any reason other than the full payment in cash thereof or the occurrence of the Discharge Date, including any claim of waiver, release, surrender, alteration or compromise;

(e) any amendment to, rescission, waiver or other modification of, or any consent to departure from, any term of any Financing Document unless entered into and approved in accordance therewith;

(f) any addition, exchange, release, surrender or non-perfection of any collateral, or any amendment to or waiver or release or addition of, or consent to departure from, any other security interest held by any Secured Party; or

(g) any other circumstance which might otherwise constitute a defense available to, or a legal or equitable discharge of, any Obligor, the Pledgor, the Contributor or any surety or guarantor (other than the defense of payment of the applicable amounts).

Section 5.3. Subrogation. Prior to the Termination Date, the Contributor waives any claim, right or remedy which it may now have or hereafter acquire against any Obligor that arises hereunder and/or from the performance by the Contributor of its obligations hereunder, whether or not such claim, right or remedy arises in equity, under contract, by statute, under common law or otherwise. Any amount paid by any Obligor to the Contributor in violation of the immediately preceding sentence prior to the Termination Date shall be held in trust for the benefit of the Collateral Agent (on behalf of the Secured Parties) and shall promptly thereafter be paid to the Collateral Agent for application in accordance with the Financing Documents.

Section 5.4. Reinstatement. This Agreement and the obligations of the Contributor and each Obligor hereunder shall automatically be reinstated if and to the extent that (a) for any reason any payment made by or on behalf of the Contributor in respect of any portion of the Equity Commitment pursuant to this Agreement is rescinded or otherwise restored to the Contributor or any Obligor, whether as a result of any Bankruptcy Event with respect to any Obligor, the Pledgor or any other Person or as a result of any settlement or compromise with any Person (including the Contributor) in respect of such payment, in each case as if such payment had not been made, or (b) after the occurrence of the Termination Date as a result of the occurrence of the circumstance described in clause (b) of Section 9.13, and provided that the circumstances described in clause (a) or (c) of Section 9.13 have not occurred, the Contributor is paid any Reimbursed Contribution and, as a result thereof, there is a positive Unfunded Commitment; provided however that any such reinstated obligations shall be subject to the conditions to the making of an Equity Contribution that are set forth in Article II (including Section 2.1(c)).

 

13


ARTICLE VI.

PURCHASED INTERESTS IN BANKRUPTCY

Section 6.1. Required Purchase of Interests. If by reason of a Bankruptcy Event with respect to the Contributor, the Pledgor or any Obligor, or any act of a Governmental Authority, (a) any Equity Contribution due hereunder has not been deposited in the Construction Account within five Business Days after the date on which such amount is payable hereunder or (b) any Equity Contribution theretofore deposited pursuant to Article II is rescinded or otherwise restored to the Contributor and five Business Days have elapsed after the date that such Equity Contribution was rescinded or otherwise restored (such Equity Contribution, whether required but not made as provided in clause (a) above or made and returned as provided in clause (b) above, the “Defaulted Payment”), the Contributor shall, without any further notice or demand by the Collateral Agent, purchase (i) an undivided participating interest in each of the L/C Loans, Letters of Credit and Commitments and (ii) Series A Senior Secured Notes and Additional Senior Secured Notes, in each case, then outstanding (the purchased participating interests and notes described in clauses (i) and (ii) above, the “Purchased Interests”) as provided in the following sentence, in an aggregate principal amount equal to the amount of the Defaulted Payment. The Contributor’s purchase of the Purchased Interests shall be made pro rata among the Purchased Interests based on the respective outstanding amounts thereof. The Contributor shall effect its purchase of the Purchased Interests constituting L/C Loans, Letters of Credit and Commitments pursuant to this Section 6.1 in accordance with the relevant procedures set forth in the Reimbursement Agreement. The purchase by the Contributor of the Series A Senior Secured Notes and the Additional Senior Secured Notes constituting the Purchased Interests by the Contributor pursuant to this Section 6.1 shall be at par (plus accrued interest) and shall comply with all Governmental Rules (including those of the Securities and Exchange Commission in relation to tenders for debt securities), and all such Series A Senior Secured Notes and Additional Senior Secured Notes shall be held by the Contributor until such time as it is able to contribute all such Series A Senior Secured Notes and Additional Senior Secured Notes to the Company for cancellation. The failure of any holder of Series A Senior Secured Notes or the Additional Senior Secured Notes to tender its Notes pursuant to the such tender offer shall not result in a Default or Event of Default, and the Contributor’s obligation in any such circumstance shall be to pay any amounts that would otherwise have been paid to non-tendering holders of Series A Senior Secured Notes or Additional Senior Secured Notes to the Company as promptly as the Contributor is able to do so.

Section 6.2. Effect of Purchase of Purchased Interests. The Contributor’s purchase of the Purchased Interests following a Defaulted Payment in respect of Equity Contributions shall satisfy the Contributor’s obligation pursuant to Section 2.1 to make Equity Contributions to the extent of the Purchased Interests so purchased by the Contributor.

Section 6.3. Subordinate Nature of Purchased Interests. The Contributor hereby agrees that the Purchased Interests shall be subordinate in all respects to the interests in the L/C Loans, Letters of Credit, Commitments, Series A Senior Secured Notes and Additional Senior Secured Notes retained by the Secured Parties, so that all payments received or collected on account of the Purchased Interests and applied to the payment or termination thereof, whether received or collected through repayment of the Purchased Interests by any Obligor or through right of set-off with respect thereto or realization upon any Collateral or otherwise, shall first be applied to the

 

14


payment of the principal, interest, fees and other amounts then due (whether at its stated maturity, by acceleration or otherwise) on the interests in the L/C Loans, Letters of Credit, Commitments, Series A Senior Secured Notes and Additional Senior Secured Notes retained by the Secured Parties until such principal, interest, fees and other amounts are paid in cash in full, before any such payments are applied on account of the Purchased Interests.

Section 6.4. No Voting Rights. Without limiting the generality of the provisions of Article VI, in determining whether the consent of the applicable Secured Parties required for any action under a Financing Document has been obtained for all purposes under the Financing Documents, the Purchased Interests shall not be deemed to be outstanding.

Section 6.5. Obligations Unconditional. The obligations of the Contributor under this Article VI to purchase the Purchased Interests are absolute and unconditional and shall not be affected by the occurrence of any Default or Event of Default or any other circumstance, including any circumstance of the nature described in Section 5.2.

Section 6.6. Notice of Purchase. The Contributor will promptly notify the Collateral Agent of any purchase made by it under this Article VI.

ARTICLE VII.

REPRESENTATIONS AND WARRANTIES

The Contributor represents and warrants to each Obligor and the Collateral Agent (on behalf of the Secured Parties), as of the Closing Date and each other relevant date set forth in the Financing Documents, that:

Section 7.1. Organization; Authority; Powers. The Contributor (a) is duly incorporated, validly existing and in good standing under the laws of its jurisdiction of organization, (b) has all requisite corporate power and authority to (i) own or hold under lease and operate the property and assets it purports to own or hold under lease, (ii) carry on its business as now conducted and as now proposed to be conducted and (iii) execute, deliver and perform its obligations under this Agreement, and (c) is qualified to do business and in good standing in each jurisdiction where such qualification is required by law. The execution, delivery and performance by the Contributor of this Agreement have been duly authorized by all corporate action required to be taken or obtained by the Contributor.

Section 7.2. No Conflict. The execution, delivery and performance by the Contributor of this Agreement will not (a) violate (i) the organizational or governing documents of the Contributor, (ii) any provision of any Governmental Rule applicable to or binding on the Contributor or any of its properties or (iii) any applicable order of any court or any rule, regulation or order of any Governmental Authority, (b) be in conflict with, result in a breach of or constitute (alone or with notice or lapse of time or both) a default under, give rise to a right of or result in any cancellation or acceleration of any right or obligation (including any payment) or to a loss of a benefit under any agreement or other instrument to which the Contributor is a party or by which it or any of its property is or may be bound, or (c) result in the creation or imposition of any Lien upon or with respect to any property or assets now owned or hereafter acquired by the Contributor, except, in the case of clause (a)(ii) or (iii), (b) or (c) above, where such violation, creation or imposition could not reasonably be expected to have a Material Adverse Effect.

 

15


Section 7.3. Enforceability. This Agreement has been duly executed and delivered by the Contributor and, assuming due authorization, execution and delivery by each other party hereto, this Agreement constitutes a legal, valid and binding obligation of the Contributor enforceable against the Contributor in accordance with its terms, subject to (a) the effects of bankruptcy, insolvency, moratorium, reorganization, fraudulent conveyance or other similar laws affecting creditors’ rights generally and (b) general principles of equity (regardless of whether such enforceability is considered in a proceeding in equity or at law).

Section 7.4. No Litigation. There are no actions, suits, investigations or proceedings by or before any arbitrator or Governmental Authority pending against or, to the knowledge of the Contributor, threatened against or affecting the Contributor that, if adversely determined to or against the Contributor, could reasonably be expected to have a Material Adverse Effect.

Section 7.5. Equity Interests. The Contributor indirectly owns 100% of the outstanding Equity Interests in the Pledgor, and the Pledgor directly or indirectly owns 100% of the outstanding Equity Interests in each of the Obligors.

Section 7.6. Compliance with Law. The Contributor is in compliance with all applicable Governmental Rules, other than any non-compliance that could not reasonably be expected to have a Material Adverse Effect.

Section 7.7. Financial Statements. In the case of the financial statements of the Contributor most recently delivered to the Secured Parties pursuant to Section 4.02(k) or 5.04, as applicable, of the Reimbursement Agreement or, if applicable, the corresponding provisions of the Note Documents, each such financial statement and information has been prepared in conformity with GAAP and fairly presents, in all material respects, the financial position of the Contributor described in such financial statements as at the respective dates thereof and the results of operations and cash flows of the Contributor 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.

Section 7.8. Adequate Information. The Contributor is informed of the financial condition and prospects of each Obligor and has reviewed and is familiar with the terms of the Financing Documents that are material to its obligations hereunder.

Section 7.9. Investment Company Act. The Contributor is not an “investment company” within the meaning of the Investment Company Act of 1940, as amended.

Section 7.10. Solvency. The Contributor is Solvent.

Section 7.11. Pari Passu Obligations. The Contributor’s obligation to make Equity Contributions as required hereunder ranks, according to its terms, at least pari passu with the Contributor’s obligations under its outstanding senior unsecured Indebtedness.

 

16


ARTICLE VIII.

COVENANTS

The Contributor covenants and agrees to comply with the following covenants at all times prior to the Termination Date:

Section 8.1. Existence. Subject to Section 8.3, the Contributor shall maintain and preserve its existence.

Section 8.2. Compliance with Laws. The Contributor shall comply with all applicable Governmental Rules, except where the failure to so comply could not reasonably be expected to have a Material Adverse Effect.

Section 8.3. Fundamental Changes. The Contributor shall not liquidate, terminate, wind-up or dissolve, or combine, merge or consolidate with or into any other entity, other than any such merger in which (a) the Contributor is the surviving Person or (b) if another Person is the surviving Person, such Person shall have assumed in writing or by operation of law the obligations of the Contributor under this Agreement and, if such surviving Person does not have the Required Ratings, (i) the Equity Letter of Credit with a stated amount equal to the then Unfunded Commitment shall remain in full force and effect or shall be replaced in accordance with Section 3.1(b) or (ii) a Cash Collateral Account shall be funded in an amount equal to the then Unfunded Commitment.

Section 8.4. Further Assurances. The Contributor shall perform, upon the reasonable request of the Collateral Agent or as necessary, all reasonable acts as may be necessary to carry out the intent of this Agreement.

ARTICLE IX.

MISCELLANEOUS

Section 9.1. Notices. All notices required or permitted under the terms and provisions hereof shall be in writing, and any such notice shall become effective upon delivery in accordance with Section 9.11 of the Intercreditor Agreement. Notices to the Obligors or the Collateral Agent may be given at the addresses set forth in Section 9.11 of the Intercreditor Agreement (or as otherwise instructed in writing by such Person to the other parties hereto), and notices to the Contributor may be given at the address set forth below (or as otherwise instructed in writing by the Contributor to the other parties hereto):

 

  

MidAmerican Energy Holdings Company

666 Grand Avenue, Suite 500

Des Moines, Iowa 50309-2580

Attention: General Counsel

Facsimile: 402.231.1658

  

Section 9.2. Entire Agreement. This Agreement constitutes the entire contract between the parties relative to the subject matter hereof. Any previous agreement, whether written or oral, among the parties or their Affiliates with respect to the subject matter hereof is superseded by this Agreement.

 

17


Section 9.3. Severability. In case any provision in or obligation hereunder shall be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions or obligations shall not in any way be affected or impaired thereby. If any such provision of this Agreement is so declared invalid, illegal or unenforceable, the parties shall promptly negotiate in good faith new provisions to eliminate such invalidity and to restore this Agreement as near as possible to its original intent and effect.

Section 9.4. Headings. Article and Section headings and the Table of Contents used herein are for convenience of reference only, are not part of this Agreement and are not to affect the construction of, or to be taken into consideration in interpreting, this Agreement.

Section 9.5. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK.

Section 9.6. Jurisdiction; Consent to Service of Process.

(a) Jurisdiction. Each party hereto hereby irrevocably and unconditionally submits, for itself and its property, to the exclusive jurisdiction of any New York State court or federal court of the United States of America sitting in New York City, and any appellate court from any thereof, in any action or proceeding arising out of or relating to this Agreement, or for recognition or enforcement of any judgment, and each of the parties hereto hereby irrevocably and unconditionally agrees that all claims in respect of any such action or proceeding may be heard and determined in such New York State Court or, to the extent permitted by law, in such federal court. Each of the parties hereto agrees that 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. Each party hereto hereby irrevocably and unconditionally waives, to the fullest extent it may legally and effectively do so, any objection which it may now or hereafter have to the laying of venue of any suit, action or proceeding arising out of or relating to this Agreement in any New York State or federal court. Each of the parties hereto hereby irrevocably waives, to the fullest extent permitted by law, the defense of an inconvenient forum to the maintenance of such action or proceeding in any such court.

(b) Consent to Service of Process. Each party hereto further irrevocably consents to the service of process in any action or proceeding in such courts by the mailing thereof by any parties thereto by registered or certified mail, postage prepaid, to such party at its address specified in Section 9.11 of the Intercreditor Agreement or Section 9.1 above, as applicable. Nothing herein shall affect the right to serve process in any other manner permitted by law.

Section 9.7. WAIVERS. EACH PARTY HERETO HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF, UNDER OR IN CONNECTION WITH THIS AGREEMENT. EACH

 

18


PARTY HERETO (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION 9.7.

Section 9.8. Amendments. No amendment, supplement or waiver of any provision of this Agreement nor consent to any departure by any of the parties hereto from any provision of this Agreement shall in any event be effective unless the same shall be in writing and signed by each of the parties hereto and is otherwise in accordance with the terms of the Intercreditor Agreement. Any such amendment, supplement, waiver or consent shall be effective only in the specific instance and for the specified purpose for which given.

Section 9.9. Assignments.

(a) General. This Agreement and the rights, interests or obligations hereunder may not be assigned by any of the parties hereto without the prior written consent of the other parties hereto; provided however that (a) each Obligor may, without consent of the other parties, collaterally assign its rights under this Agreement to the Collateral Agent, for the benefit of the Secured Parties, as collateral security for the Secured Obligations of such Obligor pursuant to the Security Agreement (and as further described in Section 9.9(b)) and (b) the Contributor may, without consent of the other parties, assign its rights under this Agreement as permitted under Section 8.3. This Agreement shall inure to the benefit of and be binding upon the Contributor, each Obligor and the Collateral Agent (on behalf of the Secured Parties), and their respective successors and permitted assigns. Nothing in this Agreement will confer upon any Person not a party to this Agreement, or the legal representatives of such person or entity, any rights or remedies of any nature or kind whatsoever under or by reason of this Agreement. Any purported assignment of this Agreement in violation of this Section 9.9 shall be null and void and shall be ineffective to relieve any party of its obligations hereunder.

(b) Consent to Collateral Assignment. The Contributor hereby consents to the collateral assignment by each Obligor of all of its right, title and interest in, to and under this Agreement to the Collateral Agent (for the benefit of the Secured Parties) pursuant to the Security Agreement. The Contributor and each Obligor agree that the Collateral Agent (or its designee or assignee) shall, subject to the Intercreditor Agreement, be entitled to enforce this Agreement in its own name and to exercise any and all rights of each Obligor under this Agreement in accordance with the terms hereof (either in its own name or in the name of each Obligor, as the Collateral Agent may elect), and the Contributor and each Obligor agree to comply and cooperate in all respects with such exercise. Without limiting the generality of the foregoing, upon the occurrence and during the continuance of an Event of Default, the Collateral Agent (or its designee or assignee), subject to the Intercreditor Agreement, shall have the full right and power to enforce directly against the Contributor all obligations of the Contributor under this Agreement and otherwise to exercise all remedies available to each Obligor hereunder, and to make all demands and give all notices and make all requests (either in its own name or in the name of any Obligor, as the Collateral Agent may elect) required or permitted to be made or

 

19


given by any Obligor under this Agreement (including the right to make demand for payment of Equity Contributions in accordance with Section 2.2(a)), and the Contributor acknowledges and agrees that any such action taken by the Collateral Agent shall be deemed effective for all purposes of this Agreement to the same extent as if such action had been taken directly by the such Obligor. If the Contributor shall receive inconsistent directions under this Agreement from the Company and the Collateral Agent, the directions of the Collateral Agent shall be deemed the superseding directions (so long as such directions are consistent with the provisions of this Agreement) and the Contributor shall accordingly comply with such directions of the Collateral Agent.

Section 9.10. Counterparts. This Agreement may be executed in any number of 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. Delivery of an executed counterpart to this Agreement by facsimile transmission or electronic transmission in “.pdf” format shall be as effective as delivery of a manually signed original.

Section 9.11. No Waiver. No failure on the part of the Collateral Agent to exercise, and no delay in exercising, any right, power or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial exercise of any such right, power or remedy by the Collateral Agent preclude any other or further exercise thereof or the exercise of any other right, power or remedy. All remedies hereunder are cumulative and are not exclusive of any other remedies provided by applicable law. The Collateral Agent shall not be deemed to have waived any rights hereunder or under any other agreement or instrument unless such waiver shall be in writing and signed by the Collateral Agent.

Section 9.12. Specific Performance. To the extent it may do so under applicable Governmental Rules, the Collateral Agent may demand specific performance of this Agreement. The Contributor hereby irrevocably waives, to the extent it may do so under applicable Governmental Rules, any defense based on the adequacy of a remedy at law that may be asserted as a bar to the remedy of specific performance in any action brought against the Contributor for specific performance of this Agreement by the Collateral Agent or for its benefit by a receiver, custodian or trustee appointed for any Obligor or the Pledgor, or in respect of all or a substantial part of their respective assets, under any Bankruptcy Law.

Section 9.13. Termination. Notwithstanding any provision hereof to the contrary (but subject to Section 5.4), this Agreement and the obligations of the Obligors and the Contributor hereunder shall terminate on the earliest to occur of (a) the Project Completion Date (as defined in the Reimbursement Agreement), (b) the date upon which the Equity Commitment has been fully funded by the Contributor hereunder and (c) the Discharge Date (such earliest date, the “Termination Date”), and any Unfunded Commitment as of the Termination Date shall be deemed to be automatically cancelled on the Termination Date.

Section 9.14. Rights of Collateral Agent. The Collateral Agent is entitled to the rights, privileges, protections, immunities, benefits and indemnities set forth in the Intercreditor Agreement and the respective Financing Documents as if specifically set forth herein.

[Signature page follows.]

 

20


IN WITNESS WHEREOF, the parties hereto have caused this Equity Contribution Agreement to be duly executed by their respective authorized representatives as of the day and year first written above.

 

MIDAMERICAN ENERGY HOLDINGS COMPANY, as the Contributor
By:   /s/ Calvin D. Haack
Name: Calvin D. Haack
Title: Vice President and Treasurer

 

SOLAR STAR FUNDING, LLC,

as the Company

By:   /s/ Kevin D. Dodson
Name: Kevin D. Dodson
Title: Vice President

 

SSC XIX, LLC,

as SS1 Company Owner

By:   /s/ Kevin D. Dodson
Name: Kevin D. Dodson
Title: Vice President

 

SSC XX, LLC,

as SS2 Company Owner

By:   /s/ Kevin D. Dodson
Name: Kevin D. Dodson
Title: Vice President


SOLAR STAR CALIFORNIA XIX, LLC,

as a Project Company

By:   /s/ Kevin D. Dodson
Name: Kevin D. Dodson
Title: Vice President

 

SOLAR STAR CALIFORNIA XX, LLC,

as a Project Company

By:   /s/ Kevin D. Dodson
Name: Kevin D. Dodson
Title: Vice President

 

2


WELLS FARGO BANK, NATIONAL ASSOCIATION, as the Collateral Agent
By:   /s/ Julius R. Zamora
Name: Julius R. Zamora
Title: Vice President

 

3