<SUBMISSION>
<ACCESSION-NUMBER>0001193125-08-048030
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>6
<PERIOD>20080229
<ITEMS>1.02
<ITEMS>2.01
<ITEMS>9.01
<FILING-DATE>20080306
<DATE-OF-FILING-DATE-CHANGE>20080305
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ENVIRONMENTAL POWER CORP
<CIK>0000805012
<ASSIGNED-SIC>4991
<IRS-NUMBER>042782065
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>1231
</COMPANY-DATA>
<FILING-VALUES>
<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>001-32393
<FILM-NUMBER>08669019
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>ONE CATE STREET
<STREET2>4TH FLOOR
<CITY>PORTSMOUTH
<STATE>NH
<ZIP>03801
<PHONE>6034311780
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>ONE CATE STREET
<STREET2>4TH FLOOR
<CITY>PORTSMOUTH
<STATE>NH
<ZIP>03801
</MAIL-ADDRESS>
</FILER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>d8k.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML><HEAD>
<TITLE>Form 8-K</TITLE>
</HEAD>
 <BODY BGCOLOR="WHITE">

 <P STYLE="line-height:0px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P
STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P STYLE="margin-top:3px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>UNITED STATES </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>SECURITIES AND EXCHANGE COMMISSION </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="3"><B>WASHINGTON, D.C. 20549 </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P
STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="5"><B>FORM 8-K </B></FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>CURRENT REPORT </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>PURSUANT TO SECTION 13 OR 15(D) OF THE </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="3"><B>SECURITIES EXCHANGE ACT OF 1934 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="2"><B>Date of report (Date of earliest event reported): February&nbsp;29, 2008 </B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><center> <P
STYLE="line-height:6px;margin-top:0px;margin-bottom:2px;border-bottom:1pt solid #000000;width:21%">&nbsp;</P></center> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="6"><B>ENVIRONMENTAL POWER
CORPORATION </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Exact name of Company as specified in its charter) </B></FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>Delaware</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>001-32393</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>75-3117389</B></FONT></TD></TR>
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<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(State or other jurisdiction</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="1"><B>of incorporation)</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Commission File Number)</B></FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top" ALIGN="center"> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(IRS Employer</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="1"><B>Identification Number)</B></FONT></P></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>One Cate Street, Fourth Floor, Portsmouth, New Hampshire 03801 </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Address of principal executive offices, including zip code) </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>(603) 431-1780 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Company&#146;s telephone number, including area code) </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>NONE </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="1"><B>(Former name or former
address, if changed since last report) </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing
obligation of the Company under any of the following provisions: </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425) </FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>

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<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12) </FONT></TD></TR></TABLE> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b) </FONT></TD></TR></TABLE> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="4%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><FONT FACE="WINGDINGS">&#168;</FONT></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c)) </FONT></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P> <P STYLE="line-height:0px;margin-top:0px;margin-bottom:0px;border-bottom:0.5pt solid #000000">&nbsp;</P> <P
STYLE="line-height:3px;margin-top:0px;margin-bottom:2px;border-bottom:0.5pt solid #000000">&nbsp;</P>

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<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>ITEM&nbsp;1.02</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>TERMINATION OF MATERIAL DEFINITIVE AGREEMENT </B></FONT></TD></TR></TABLE> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
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<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>ITEM&nbsp;2.01</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>COMPLETION OF ACQUISITION OR DISPOSITION OF ASSETS </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">Environmental Power Corporation (the &#147;Company&#148;) is reporting the closing of transactions providing for the termination of the leasehold interest held by its subsidiary Buzzard Power Corporation (&#147;Buzzard&#148;) in the
Scrubgrass Generating Facility located in Venango County, Pennsylvania (the &#147;Scrubgrass Facility&#148;) under the Amended and Restated Lease Agreement between Buzzard and SGC dated as of December&nbsp;22, 1995, as amended or supplemented to
date (as so amended or supplemented, the &#147;Lease Agreement&#148;). and for the termination of the obligations of Buzzard&#146;s parent, EPC Corporation (&#147;EPC&#148;), to Crystal Creek Coalpower Funding, LLC (&#147;Crystal Creek&#148;), under
a Note Purchase Agreement dated September&nbsp;4, 2003, and related agreements (the &#147;Loan Agreements&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">As a result of the
closing of these transactions, the Company now operates solely as a developer of renewable energy facilities for the production and commercial application of methane-rich biogas from agricultural and food industry wastes, through its subsidiary,
Microgy, Inc., and related companies. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">As previously reported, on November&nbsp;30, 2007, Buzzard and Scrubgrass Generating Company, L.P.
(&#147;SGC&#148;) entered into an Omnibus Agreement Regarding Termination of Lease (the &#147;Omnibus Agreement&#148;), relating to the termination of Buzzard&#146;s leasehold interest in the Scrubgrass Facility. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Also on November&nbsp;30, 2007, EPC (Buzzard&#146;s parent and a subsidiary of the Company) entered into a Loan Termination Agreement (the &#147;Loan
Termination Agreement&#148;) with Crystal Creek relating to the termination of EPC&#146;s obligations under the Loan Agreements and the forgiveness of all amounts owed by EPC to Crystal Creek thereunder. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">The closing of the transactions contemplated by the Omnibus Agreement occurred on February&nbsp;29, 2008, at which time the transactions contemplated by
the Loan Termination Agreement also became effective. As reported in the Company&#146;s Form 10-Q filed with the U.S. Securities and Exchange Commission for the quarter ended September&nbsp;30, 2007, the contemplated disposition has a combined
transaction value to the Company of approximately $6.0 million for accounting purposes, primarily related to the forgiveness of indebtedness of EPC Corporation to Crystal Creek and the recognition of a previously deferred gain. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">As a result of the closing of the transactions contemplated by the Omnibus Agreement, Buzzard&#146;s leasehold interest in the Scrubgrass Facility,
together with the assignment to Buzzard of certain contracts and other rights associated with the Scrubgrass Facility (the &#147;Related Rights&#148;), was terminated in exchange for a payment to Buzzard of $375,000, and certain indebtedness of
Buzzard to SGC was forgiven. In addition, Buzzard, EPC, SGC and certain other parties to certain agreements relating to the Scrubgrass Facility (the &#147;Project Agreements&#148;) exchanged full mutual releases. Furthermore, as contemplated by the
Lease Agreement, certain Project Agreements were terminated, assigned by Buzzard to SGC, and/or amended to remove Buzzard and/or EPC as parties thereto. The Related Rights and Project Agreements include the following material agreements to which
Buzzard and/or EPC was a party: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Management Services Agreement by and between Scrubgrass Generating Company, L.P. and PG&amp;E-Bechtel Generating Company dated December&nbsp;15, 1990, which was
assigned by Scrubgrass Generating Company, L.P. to Buzzard Power Corporation on June&nbsp;17, 1994. PG&amp;E-Bechtel Generating Company has assigned its rights to this agreement ultimately to U.S. Gen. (now PG&amp;E National Energy Group);
</FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Agreement for Operation and Maintenance of the Scrubgrass Cogeneration Plant between Scrubgrass Generating Company, L.P. and Bechtel Power Corporation dated
December&nbsp;21, 1990, which was assigned by Scrubgrass Generating Company, L.P. to Buzzard Power Corporation on June&nbsp;17, 1994. Bechtel Power Corporation has assigned its rights to this agreement ultimately to U.S. Operating Services Company
(now PG&amp;E Operating Services Company); </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">First Amendment to the Agreement for Operation and Maintenance of the Scrubgrass Cogeneration Plant between Buzzard Power Corporation and, ultimately, U.S.
Operating Services Company (now PG&amp;E Operating Services Company) dated December&nbsp;22, 1995; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Stock Pledge Agreement, dated December&nbsp;19, 1991, between EPC Corporation and Scrubgrass Generating Company, L.P.; </FONT></P></TD></TR></TABLE>

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<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
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<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Amended and Restated Participation Agreement, dated as of December&nbsp;22, 1995, among Buzzard Power Corporation, Scrubgrass Generating Company, L.P., EPC
Corporation, Bankers Trust Company and Credit Lyonnais, as amended to date; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Amended and Restated Disbursement and Security Agreement between Scrubgrass Generating Company, L.P., as Lessor, Buzzard Power Corporation, as Lessee, Bankers Trust
Company as Disbursement Agent and Credit Lyonnais acting through its New York Branch as Agent, dated as of December&nbsp;22, 1995, as amended to date; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>

<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Amended and Restated Lessee Working Capital Loan Agreement between Scrubgrass Generating Company, L.P., as Lender, and Buzzard Power Corporation, as Lessee, dated
as of December&nbsp;22, 1995, as amended to date; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Amended and Restated Lessee Working Capital Note, dated December&nbsp;11, 2006, in the original principal amount of $6,000,000, issued by Buzzard Power Corporation
in favor of Scrubgrass Generating Company, L.P., as amended to date; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
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<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Agreement for the Sale of Electric Energy from the Scrubgrass Generating Plant by and between Pennsylvania Electric Company and Scrubgrass Power Corporation dated
August&nbsp;7, 1987 which was assigned by Scrubgrass Power Corporation to Scrubgrass Generating Company, L.P. on December&nbsp;15, 1990 and assigned by Scrubgrass Generating Company, L.P. to Buzzard Power Corporation on June&nbsp;17, 1994, as such
agreement has been amended and/or supplemented to date; and </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Settlement Agreement, dated August&nbsp;3, 2000 and effective February&nbsp;27, 2001, among Buzzard Power Corporation, Scrubgrass Generating Company L.P. and
Pennsylvania Electric Company. </FONT></P></TD></TR></TABLE> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The Loan Agreements that were terminated by the Loan Termination Agreement include the following
agreements to which EPC was a party: </FONT></P> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">20.0% Senior Secured Note due December&nbsp;31, 2012 in the original principal amount of $3.7 million, made by EPC Corporation in favor of Crystal Creek Coalpower
Funding LLC; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Securities Deposit Agreement, dated September&nbsp;4, 2003, among EPC Corporation, Crystal Creek Coalpower Funding LLC and the Security Deposit Agent and Securities
Intermediary named therein; </FONT></P></TD></TR></TABLE> <P STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Pledge Agreement, dated September&nbsp;4, 2003, between the Company and Crystal Creek Coalpower Funding LLC; </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Management Agreement, dated September&nbsp;4, 2003, between the Company and EPC Corporation; and </FONT></P></TD></TR></TABLE> <P
STYLE="font-size:6px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="5%"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD WIDTH="2%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">&#149;</FONT></TD>
<TD WIDTH="1%" VALIGN="top"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD ALIGN="left" VALIGN="top"> <P ALIGN="left"><FONT FACE="Times New Roman" SIZE="2">Tax Sharing Agreement, dated September&nbsp;4, 2003, between the Company and EPC Corporation. </FONT></P></TD></TR></TABLE> <P
STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The Company directs you to the descriptions of the terms of foregoing terminated agreements which were material to the Company appearing, among other places, under the
headings &#147;Business &#150; Buzzard&#148;, &#147;Liquidity and Capital Resources &#150; Long Term Liabilities and Commitments &#150; EPC Corporation Debt Obligations &#150; Scrubgrass Debt Obligations&#148; in its Annual Report on Form 10-K for
the year ended December&nbsp;31, 2006, which descriptions are incorporated herein by reference. </FONT></P> <P STYLE="font-size:18px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE STYLE="BORDER-COLLAPSE:COLLAPSE" BORDER="0" CELLPADDING="0" CELLSPACING="0" WIDTH="100%">
<TR>
<TD WIDTH="10%" VALIGN="top" ALIGN="left"><FONT FACE="Times New Roman" SIZE="2"><B>ITEM&nbsp;9.01</B></FONT></TD>
<TD ALIGN="left" VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><B>FINANCIAL STATEMENTS AND EXHIBITS </B></FONT></TD></TR></TABLE> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">(b) Pro Forma Financial
Information. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">As a result of the decision by the Company&#146;s board of directors in May 2007 to authorize negotiations for the disposition of
Buzzard&#146;s leasehold interest in the Scrubgrass Facility, the Company has been reporting the results of Buzzard&#146;s operations as &#147;discontinued operations&#148; in its quarterly reports on Form 10-Q beginning with the quarter ended
June&nbsp;30, 2007. The Company&#146;s unaudited balance sheet and other unaudited financial statements as of and for the nine months ended September&nbsp;30, 2007 as set forth in the Company&#146;s Quarterly Report on Form 10-Q for the nine months
ended September&nbsp;30, 2007, which financial statements set forth the effect of the discontinued operations, are incorporated by reference herein. In addition, the unaudited, selected pro forma financial data, adjusted for the impact of
discontinued operations, for each of the fiscal years ended December&nbsp;31, 2006, 2005 and 2004 appearing in the final prospectus, dated September&nbsp;27, 2007, which is a part of the Company&#146;s Registration Statement on Form S-3 (SEC File
No.&nbsp;333-145732) and which final prospectus was filed with the SEC pursuant to Rule 424(b)(3) on September&nbsp;28, 2007, is incorporated by reference herein. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">(d) Exhibits. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TR>
<TD></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD WIDTH="92%"></TD></TR>
<TR>
<TD VALIGN="bottom" NOWRAP> <P STYLE="border-bottom:1px solid #000000;width:39pt"><FONT FACE="Times New Roman" SIZE="1"><B>Exhibit&nbsp;No.</B></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom" STYLE="border-bottom:1px solid #000000"> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="1"><B>Description</B></FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;2.01</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Omnibus Agreement Regarding Termination of Lease, dated November 30, 2007, by and between Buzzard Power Corporation and Scrubgrass Generating Company, L.P.</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;2.02</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Assignment, Termination and Release Agreement, dated as of February 20, 2008, among Buzzard Power Corporation, EPC Corporation, Scrubgrass Generating Company, L.P. and Calyon New York Branch, as
agent.</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">&nbsp;&nbsp;2.03</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Third Amendment to Amended and Restated Disbursement Agreement, dated as of February 29, 2007, by and among Scrubgrass Generating Company, L.P., Buzzard Power Corporation, Deutsche Bank Trust
Company Americas, as Disbursement Agent and Deutsche Bank Trust Company Americas, as Securities Intermediary.</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">99.1</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Loan Termination Agreement, dated November 30, 2008, between EPC Corporation and Crystal Creek Coalpower Funding, LLC.</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">99.2</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Press Release, dated March 3, 2008.</FONT></TD></TR>
</TABLE>

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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>SIGNATURES </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized. </FONT></P> <P
STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
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<TR>
<TD WIDTH="7%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="92%"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">ENVIRONMENTAL POWER CORPORATION</FONT></P></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Michael E. Thomas</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Michael E. Thomas</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Senior Vice President,</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Chief Financial Officer and Treasurer</FONT></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Dated: March&nbsp;5, 2008 </FONT></P>
</BODY></HTML>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.01
<SEQUENCE>2
<FILENAME>dex201.htm
<DESCRIPTION>OMNIBUS AGREEMENT REGARDING TERMINATION OF LEASE
<TEXT>
<HTML><HEAD>
<TITLE>Omnibus Agreement Regarding Termination of Lease</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 2.01 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>OMNIBUS AGREEMENT REGARDING TERMINATION OF LEASE </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">This OMNIBUS AGREEMENT REGARDING TERMINATION OF
LEASE (this &#147;<U>Agreement</U>&#148;), dated as of November&nbsp;30, 2007 (the &#147;<U>Effective Date</U>&#148;), is by and among SCRUBGRASS GENERATING COMPANY, L.P., a Delaware limited partnership (&#147;<U>Scrubgrass</U>&#148;), and BUZZARD
POWER CORPORATION, a Delaware corporation (&#147;<U>Buzzard,</U>&#148; and together with Scrubgrass, the &#147;<U>Parties</U>,&#148; and each individually, a &#147;<U>Party</U>&#148;). </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>W I T N E S S E T H: </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, Scrubgrass, as lessor, and Buzzard, as lessee,
are parties to that certain Amended and Restated Lease Agreement, dated December&nbsp;22, 1995 (the &#147;<U>Lease</U>&#148;), pursuant to which, among other things, Scrubgrass leased the Project to Buzzard and assigned the Assigned Rights to
Buzzard; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, Scrubgrass, Buzzard, the Agent, EPC, the Bond Trustee and the Agent, are parties to that certain Amended and Restated
Participation Agreement, dated December&nbsp;22, 1995, as amended (the &#147;<U>Participation Agreement</U>&#148;), and Buzzard is a party to certain other agreements with Scrubgrass and other parties in connection with the Project; </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, Section&nbsp;11.2 of the Participation Agreement provides that Scrubgrass and Buzzard may terminate the Lease subject to the conditions to such
termination set forth in such Section&nbsp;11.2; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, the Parties desire, upon the satisfaction of the conditions set forth
herein, to: (i)&nbsp;effectuate Buzzard&#146;s assignment, transfer, conveyance and delivery to Scrubgrass, and Scrubgrass&#146;s acceptance from Buzzard, of the Assigned Assets (as defined below) and Buzzard&#146;s assignment, transfer, conveyance
and delivery to Scrubgrass, and Scrubgrass&#146;s assumption of, the Assumed Obligations (as defined below); (ii)&nbsp;terminate the Lease and certain other agreements related thereto; and (iii)&nbsp;provide for certain mutual releases and
discharges in connection therewith (the transactions contemplated by the foregoing clauses (i) &#150; (iii), collectively with the other transactions contemplated hereunder to be entered into in connection therewith, being referred to as the
&#147;<U>Lease Termination Transaction</U>&#148;); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">NOW, THEREFORE, in consideration of the premises and the mutual promises,
representations, warranties and covenants hereinafter set forth, the Parties hereto agree as follows: </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>ARTICLE I </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>DEFINITIONS </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.1. <U>Definitions</U>.
As used herein, the following terms shall have the following meanings unless the context otherwise requires: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Agent</U>&#148; means
Calyon New York Branch, as Agent under the Reimbursement and Loan Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Amended and Restated Management Services
Agreement</U>&#148; has the meaning set forth in Section&nbsp;8.2.10. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Amended and Restated Partnership Agreement</U>&#148; has the meaning set forth in
Section&nbsp;7.1.8. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Amendment No.&nbsp;7</U>&#148; means Amendment No.&nbsp;7 to the Reimbursement and Loan Agreement, dated as
of the date hereof, being entered into among Scrubgrass, the Agent and the Bank Parties party thereto, in form and substance satisfactory to Scrubgrass in its sole discretion. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Assigned Assets</U>&#148; means all of Buzzard&#146;s right, title and interest in and to the Assigned Rights. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Assigned Rights</U>&#148; has the meaning set forth in the Participation Agreement, which &#147;Assigned Rights&#148; are comprised solely of
the rights, title, interests and obligations of Buzzard in and under the agreements listed on Schedule I to the Assignment and Termination Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">&#147;<U>Assignment and Termination Agreement</U>&#148; has the meaning set forth in Section&nbsp;8.2.5. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">&#147;<U>Assumed Obligations</U>&#148; means all of Buzzard&#146;s obligations under the Assigned Rights accruing and arising in respect of the period from and after the Closing Date. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Bank Parties</U>&#148; has the meaning set forth in the Participation Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Basic Rent (Equity)</U>&#148; has the meaning set forth in the Lease. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Bond Trustee</U>&#148; means Deutsche Bank Trust Company Americas, in its capacity as Bond Trustee under the Indenture. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Bond Trustee Consent</U>&#148; means the consent of the Bond Trustee, in form and substance reasonably satisfactory to the Bond Trustee,
Scrubgrass, Buzzard and the Agent, pursuant to which the Bond Trustee consents to the consummation of the Lease Termination Transaction. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">&#147;<U>Bonds</U>&#148; has the meaning set forth in the Participation Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Buzzard</U>&#148; has the meaning set
forth in the preamble. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Buzzard Transaction Documents</U>&#148; means, collectively, all of the Transaction Documents to which
Buzzard is a party, whether by assignment or otherwise, as listed on <U>Schedule A</U> hereto. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Closing</U>&#148; means the
consummation of the Lease Termination Transaction hereunder. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Closing Date</U>&#148; means the date on which Closing occurs
pursuant to Section&nbsp;8.1. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Contractual Obligation</U>&#148; has the meaning set forth in the Participation Agreement.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Counterparties</U>&#148; means each of the Principal Project Agreement counterparties that is party to a Counterparty Consent.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Counterparty Consents</U>&#148; means the consent of each of the Counterparties listed on Schedule 6.2 hereto substantially in
the form of <U>Exhibit D</U> hereto. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Disbursement Agreement</U>&#148; means the Amended and Restated Disbursement and Security
Agreement, dated December&nbsp;22, 1995, as amended, modified, or supplemented from time to time, among Scrubgrass, Buzzard, the Agent and Deutsche Bank Trust Company Americas as Disbursement Agent. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Disbursement Agreement Amendment</U>&#148; has the meaning set forth in Section&nbsp;8.2.6. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>East Bay Pledge Agreement Termination</U>&#148; has the meaning set forth in Section&nbsp;8.2.4. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>East Bay Stock Pledge Agreement</U>&#148; means the Stock Pledge Agreement, dated as of December&nbsp;19, 1991, between East Bay Model
Engineer&#146;s Society and Scrubgrass. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Effective Date</U>&#148; has the meaning set forth in the preamble. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>EPC</U>&#148; means EPC Corporation, a Delaware corporation formerly known as &#147;Environmental Power Corporation.&#148; </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>EPC Pledge Agreement Termination</U>&#148; has the meaning set forth in Section&nbsp;8.2.3. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>EPC Stock Pledge Agreement</U>&#148; means the Stock Pledge Agreement, dated as of December&nbsp;19, 1991, between EPC and Scrubgrass.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Forbearance Agreement</U>&#148; means the Forbearance Agreement, dated as of December&nbsp;11, 2006, as amended, modified, or
supplemented from time to time, by and between Buzzard and Scrubgrass. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Forbearance Extension Date</U>&#148; has the meaning set
forth in Section&nbsp;2.3. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Forbearance Period</U>&#148; has the meaning set forth in Section&nbsp;2.3. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Governmental Approval</U>&#148; has the meaning set forth in the Participation Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Governmental Authority</U>&#148; has the meaning set forth in the Participation Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Lease</U>&#148; has the meaning set forth in the recitals. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">&#147;<U>Lease Termination Documents</U>&#148; means this Agreement, Amendment No.&nbsp;7, the Assignment and Termination Agreement, the Amended and Restated Partnership Agreement, the EPC Pledge Agreement
Termination, the East Bay Pledge Agreement Termination, the Disbursement Agreement Amendment, the Termination of Lease Memorandum and each Counterparty Consent. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">&#147;<U>Lease Termination Transaction</U>&#148; has the meaning set forth in the recitals. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">&#147;<U>Lessee Working Capital Agreement</U>&#148; means the Amended and Restated Lessee Working Capital Loan Agreement, dated December&nbsp;22, 1995, as amended, modified, or supplemented from time to time, between Scrubgrass and Buzzard.
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">3 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Lessee Working Capital Loan Note</U>&#148; means the promissory note, dated December&nbsp;11,
2006, issued by Buzzard to Scrubgrass pursuant to the Lessee Working Capital Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Lien</U>&#148; has the meaning set forth
in the Participation Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Loan Documents</U>&#148; has the meaning set forth in the Participation Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Original Management Services Agreement</U>&#148; has the meaning set forth in Section&nbsp;8.2.10. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Parties</U>&#148; has the meaning given in the preamble. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">&#147;<U>Permitted Liens</U>&#148; has the meaning set forth in the Participation Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">&#147;<U>Person</U>&#148; means an individual or a corporation, partnership, limited liability company, trust, estate, unincorporated organization, association or other entity. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Post-Closing FERC Filings</U>&#148; means, collectively, the self-recertification of Qualifying Facility status and the notice of Exempt
Wholesale Generator status to be filed by Scrubgrass at FERC after the Closing Date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Principal Project Agreements</U>&#148; has
the meaning set forth in the Participation Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Project</U>&#148; has the meaning set forth in the Participation Agreement.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Project Revenues</U>&#148; has the meaning set forth in the Participation Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Reimbursement and Loan Agreement</U>&#148; means the Amended and Restated Reimbursement and Loan Agreement, dated as of December&nbsp;22, 1995,
as amended, modified, or supplemented from time to time, among Scrubgrass, the Agent and the other financial institutions party thereto. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">&#147;<U>Requirement of Law</U>&#148; has the meaning set forth in the Participation Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Scrubgrass</U>&#148; has
the meaning set forth in the preamble. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Specified Buzzard Transaction Documents</U>&#148; means the Lease, the Participation
Agreement, the Disbursement Agreement, the Lessee Working Capital Agreement, the Lessee Working Capital Note, the Lessee Security Agreement and the Omnibus Reaffirmation Agreement, as such terms are defined in the Reimbursement and Loan Agreement,
and as each such document is in effect immediately prior to the consummation of the Closing and the effectiveness of Amendment No.&nbsp;7. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">&#147;<U>Specified Default</U>&#148; has the meaning set forth in Section&nbsp;2.3. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Tax Indemnity Agreement</U>&#148;
has the meaning set forth in the Participation Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Tax Return</U>&#148; means any return, report, information return,
declaration, claim for refund or other document (including any schedule or related or supporting information) required to be supplied to any taxing authority with respect to Taxes, including amendments thereto. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Taxes</U>&#148; means all taxes, charges, fees, levies, penalties or other assessments imposed
by any federal, state, local or foreign taxing authority, including, but not limited to, excise, property, sales, transfer, franchise, payroll, withholding, social security, gross receipts, license, stamp, occupation, employment or other taxes,
including any interest, penalties or additions attributable thereto. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Termination of Lease Memorandum</U>&#148; has the meaning
set forth in Section&nbsp;8.2.7. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Termination Payment</U>&#148; means the amount of $375,000. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Third Party Consents</U>&#148; has the meaning set forth in Section 6.2. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>Transaction Documents</U>&#148; has the meaning set forth in the Participation Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1.2. <U>Rules of Construction</U>. The following rules shall be applicable to this Agreement: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) References in this Agreement to articles, sections, paragraphs and clauses are to articles, sections paragraphs and clauses of this Agreement unless
otherwise indicated. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) All references herein to any agreement shall be to such agreement as properly amended or modified as of the date
of reference. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) All references to a particular entity shall include a reference to such entity&#146;s successors and permitted assigns.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(d) Except as otherwise required by the context, such definitions shall be equally applicable to the singular or plural forms of the terms
defined. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(e) The words &#147;herein,&#148; &#147;hereof&#148; and &#147;hereunder&#148; shall refer to this Agreement as a whole and not
to any particular section or subsection of this Agreement. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>ARTICLE II </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>LEASE TERMINATION TRANSACTION </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2.1. <U>Assignment and Assumption of Assigned
Assets and Assumed Obligations</U>. Upon the occurrence of the Closing, in consideration of payment of the Termination Payment by Scrubgrass to Buzzard, and in confirmation of the termination of the assignment, pursuant to Section&nbsp;2.03(a) of
the Lease, by Scrubgrass to Buzzard of the Principal Project Agreements (as defined in the Lease) and the reversion to Scrubgrass of all rights and obligations thereunder as contemplated by the last sentence of Section&nbsp;2.03(c) of the Lease (but
not in limitation of any of the transactions contemplated by this Agreement), Buzzard shall assign, transfer, convey and deliver to Scrubgrass, and Scrubgrass shall acquire and accept, the Assigned Assets, subject to no Liens other than Permitted
Liens, and Buzzard shall assign, transfer, convey and deliver to Scrubgrass, and Scrubgrass shall acquire and assume, all of the Assumed Obligations. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">2.2. <U>Lease Termination Transaction</U>. At the Closing, each of Scrubgrass and Buzzard shall terminate the Lease and consummate each of the other transactions applicable to it hereunder, and shall execute and
deliver each of, the Lease Termination Documents to which it is a party and any other relevant documents to effect such consummation, in each case as set forth in Section&nbsp;8.2. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2.3. <U>Performance Period Obligations</U>. Buzzard shall continue to perform fully the Assumed
Obligations, including all of its obligations under the Buzzard Transaction Documents, for the period between the Effective Date and the Closing Date, including its payment obligations thereunder that arise during such period and its payment
obligations that have accrued prior to the Effective Date but have not been paid; <U>provided</U> <U>that</U>, Scrubgrass hereby agrees to forbear from exercising its rights and remedies under the Lease with respect to any Event of Default under
Section&nbsp;13.01(a)(ii) of the Lease arising solely out of Buzzard&#146;s failure to pay Basic Rent (Equity) due to a shortfall in Project Revenues available to make such payment of Basic Rent (Equity) (any such default, a &#147;<U>Specified
Default</U>&#148;). Such forbearance shall terminate on the date which shall be the earliest to occur of (i)&nbsp;the Closing Date, (ii)&nbsp;the occurrence of an Event of Default under the Lease other than a Specified Default and (iii)&nbsp;the
earlier of (A)&nbsp;January&nbsp;31, 2008 or such later date as may be requested by Scrubgrass and Buzzard and consented to by the Agent in its sole discretion, provided that such later date shall not be later than April&nbsp;30, 2008 (such later
date, the &#147;<U>Forbearance Extension Date</U>&#148;) and (B)&nbsp;the date this Agreement is terminated pursuant to Section&nbsp;10.1 (such period of forbearance, the &#147;<U>Forbearance Period</U>&#148;). During the Forbearance Period, all
Basic Rent (Equity) that is not paid will continue to accrue, together with interest on any such overdue amounts at the Default Rate. After the Forbearance Period, if the Closing has not occurred, Scrubgrass (and, to the extent provided in the
Transaction Documents, the Agent, the Banks and other financing parties) shall be entitled to exercise all rights and remedies with respect to any Specified Default as if such forbearance had never been granted and Buzzard shall retain all of its
rights and defenses, if any, with respect thereto. Without limiting the foregoing, Scrubgrass and Buzzard agree that the Forbearance Agreement is hereby terminated as of the Effective Date and that the provisions thereof are superseded in their
entirety by this Section&nbsp;2.3 as of such date. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>ARTICLE III </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>COVENANTS OF BUZZARD </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.1. <U>Conduct of the Business of Buzzard Prior to the
Closing Date</U>. Except with the consent in writing of Scrubgrass and subject to the Transaction Documents, and except as may be required to effect the Lease Termination Transaction on the Closing Date, Buzzard shall, between the Effective Date and
Closing, conduct its business in accordance with the ordinary course of such business consistent with past custom and practice and in accordance with the Buzzard Transaction Documents. Without limiting the generality of the foregoing, Buzzard shall
not, except as otherwise provided in this Agreement: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">3.1.1 grant any options, warrants, conversion or other rights to acquire any of
Buzzard&#146;s interest in the Assigned Assets, or grant or enter into any agreements, commitments, arrangements or understandings of any kind, contingent or otherwise, to sell any such interests, or agree to do any of the foregoing; </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">3.1.2 enter into any contract, commitment, agreement, arrangement or transaction that would impair the ability of Buzzard to consummate the Lease
Termination Transaction; or </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">3.1.3 enter into any agreement or understanding with respect to any of the transactions set forth in the
foregoing Sections 3.1.1 or 3.1.2. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3.2. <U>Obligation to Update</U>. Buzzard shall promptly notify Scrubgrass of any matters arising or
discovered after the Effective Date which, if existing or known at the Effective Date, would be required to be set forth or described in this Agreement or the Exhibits or Schedules hereto. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>ARTICLE IV </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>REPRESENTATIONS AND WARRANTIES OF BUZZARD </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Buzzard hereby represents and warrants to Scrubgrass that the following are true and correct on and as of the Effective Date and the Closing Date:
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.1. <U>Organization and Standing</U>. Buzzard is a corporation duly organized, validly existing and in good standing under the laws of the
State of Delaware. Buzzard is duly qualified to do business and in good standing in the Commonwealth of Pennsylvania. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.2.
<U>Ownership</U>. The authorized capital stock of Buzzard consists of (a)&nbsp;100 shares of common stock, $0.00 par value per share, all of which are issued and outstanding and held of record and beneficially by EPC, and (b)&nbsp;10 shares of
preferred stock, $0.00 par value per share, all of which are issued and outstanding and held of record and beneficially by the East Bay Model Engineer&#146;s Society. No other Person owns, of record or beneficially, any capital stock in, or option
or other claim to ownership of any capital stock in, Buzzard. EPC was formerly known as &#147;Environmental Power Corporation.&#148; EPC is the same legal entity as the entity named &#147;Environmental Power Corporation&#148; which entered into the
Participation Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.3. <U>Authority and Enforceability</U>. The execution, delivery and performance by Buzzard of each Lease
Termination Document to which it is a party and each of the certificates provided by it hereunder have been duly authorized and approved by all corporate action on the part of Buzzard, and constitutes or will, when executed and delivered, constitute
the legal, valid and binding obligation of Buzzard, enforceable against it in accordance with its respective terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium, applicable equitable principles, or
similar laws from time to time in effect affecting the enforcement of creditors&#146; rights generally. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.4. <U>No Conflicts</U>. Upon
obtaining the consents and approvals set forth on <U>Schedules 4.5</U> and <U>5.4</U>, the execution, delivery and performance of the Lease Termination Documents to which Buzzard is a party, and the consummation of the Lease Termination Transaction,
by Buzzard, will not conflict with or result in any violation of, or default (or give rise to any right of termination, cancellation or acceleration) under, any provision of (i)&nbsp;the certificate of incorporation or the bylaws of Buzzard,
(ii)&nbsp;any Specified Buzzard Transaction Document, or (iii)&nbsp;any judgment, order, decree, law, regulation or rule applicable to Buzzard. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">4.5. <U>Consents and Approvals</U>. Except for the Post-Closing FERC Filings and the items set forth on <U>Schedules 4.5</U> and <U>5.4</U>, no act, consent, approval, authorization, permit, order, filing, notice, registration or
qualification of or with any Person (including, but not limited to, any Governmental Authority, the Agent, the Banks, the Disbursement Agent or the Bond Trustee) is </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">required to be obtained or made by Buzzard in connection with the execution, delivery or performance of the Lease Termination Documents to which it is a
party and the consummation of the Lease Termination Transaction; <U>provided</U> <U>that</U> the representation set forth in this Section&nbsp;4.5 is not made in respect of any such requirements under any Transaction Documents other than the
Specified Buzzard Transaction Documents. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.6. <U>Compliance with Law; Legal Proceedings</U>. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) Buzzard is in compliance in all material respects with and not in material default under any and all Requirements of Law and all terms and provisions
of all Contractual Obligations of Buzzard (except for any Specified Default under the Lease). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) There is no suit, claim, action,
proceeding or investigation pending or, to the knowledge of Buzzard, threatened relating to Buzzard, the Assigned Assets or the Assumed Obligations by or before any Governmental Authority, any other Person or otherwise which (i)&nbsp;would prohibit,
or restrain Buzzard&#146;s execution, delivery or performance of the Lease Termination Documents to which it is a party or the consummation of the Lease Termination Transaction, or (ii)&nbsp;could reasonably be expected to have a material adverse
effect on the business, operations or financial condition of the Project. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.7. <U>Taxes</U>. Buzzard has filed all Tax Returns where
required and paid all Taxes associated with its organization and qualifications to do business, the Assigned Assets and the Project required to be paid by it when due and payable. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.8. <U>Assigned Assets; No Liens</U>. Buzzard holds a leasehold or contractual interest, as applicable, in the Assigned Assets, free and clear of all
Liens, other than Permitted Liens. Schedule 4.8 lists any Permitted Lien which exists with respect to the Assigned Assets. Each of the Assigned Assets is in full force and effect. To the knowledge of Buzzard, all of the agreements previously
assigned to Buzzard by Scrubgrass and in effect on the Effective Date are listed on Schedule A hereto. There are no outstanding options, calls or commitments granted by Buzzard with respect to the Assigned Assets or the Assumed Obligations other
than rights in favor of Scrubgrass under the Lease. Upon the consummation of the Lease Termination Transaction, (a)&nbsp;Buzzard shall convey to Scrubgrass a contractual interest in the Assigned Assets, free and clear of all Liens, other than
Permitted Liens, and all right, title and interest in the Assigned Assets held by Buzzard pursuant to the Lease prior to such consummation will be vested in Scrubgrass, free and clear of all Liens other than Permitted Liens, and
(b)&nbsp;Buzzard&#146;s leasehold rights and interests in the Project shall terminate and all possessory rights and interests in the Project held by Buzzard on the Closing Date pursuant to the Lease shall revert to and vest in Scrubgrass, free and
clear of all Liens other than Permitted Liens. Buzzard holds no assets, rights, interests or obligations relating to or comprising the Project other than (i)&nbsp;its assets, rights, interests or obligations in or under the Assigned Assets or the
Assumed Obligations and (ii)&nbsp;the assets, rights, interests and obligations of Buzzard that are being terminated pursuant to the Lease Termination Documents. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">4.9. <U>Buzzard Transaction Documents</U>. Buzzard is not a party itself or by assignment to any contract, commitment, agreement, arrangement or transaction other than the Buzzard Transaction Documents. No
&#147;Default&#148; or &#147;Event of Default,&#148; however defined, by Buzzard has occurred and is continuing under any of the Buzzard Transaction Documents, other than the </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">Specified Default under the Lease. Buzzard does not have any material obligations to any Person other than its material obligations under the Buzzard
Transaction Documents to which it is a party. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.10. <U>Tax-Exempt Bonds</U>. Prior to the Closing Date, Buzzard has not breached or failed
to perform its material obligations under the Tax Indemnity Agreement and to the knowledge of Buzzard, Buzzard has not taken any action which has adversely affected the tax exempt status of the Bonds and has not failed to take any action required to
be taken by it to maintain such status. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4.11. <U>Scope of Business</U>. As of the Closing Date, Buzzard has not engaged in any business,
or taken any other action affecting the Project, other than the entering into and performance of the Buzzard Transaction Documents. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman"
SIZE="2"><B>ARTICLE V </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>REPRESENTATIONS AND WARRANTIES OF SCRUBGRASS </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">Scrubgrass represents and warrants to Buzzard that the following are true and correct on and as of the Effective Date and the Closing Date: </FONT></P>
<P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5.1. <U>Organization and Standing</U>. Scrubgrass is a limited partnership duly organized, validly existing and in good standing under the laws of the
State of Delaware. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5.2. <U>Authority and Enforceability</U>. The execution, delivery and performance by Scrubgrass of each Lease
Termination Document to which Scrubgrass is a party and each of the certificates provided by it hereunder have been duly authorized and approved by all necessary partnership action on the part of Scrubgrass, and constitutes or will, when executed
and delivered, constitute the legal, valid and binding obligation of Scrubgrass, enforceable against Scrubgrass in accordance with its respective terms, except as enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium,
applicable equitable principles, or similar laws from time to time in effect affecting the enforcement of creditors&#146; rights generally. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">5.3. <U>No Conflicts</U>. Upon obtaining the consents and approvals set forth on <U>Schedules 4.5</U> and <U>5.4</U>, the execution, delivery and performance of each of the Lease Termination Documents to which Scrubgrass is a party, and the
consummation of the Lease Termination Transaction, by Scrubgrass will not conflict with or result in any violation of, or default (or give rise to any right of termination, cancellation or acceleration, except as specifically provided for or
permitted hereunder or under any of the Lease Termination Documents) under, any provision of (i)&nbsp;the certificate of limited partnership or the limited partnership agreement of Scrubgrass, (ii)&nbsp;any agreement or instrument to which
Scrubgrass is a party or may be bound, or (iii)&nbsp;any judgment, order, decree, law, regulation or rule applicable to Scrubgrass. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5.4.
<U>Consents and Approvals</U>. Except for the Post-Closing FERC Filings and the items set forth on <U>Schedules 4.5</U> and <U>5.4</U>, no act, consent, approval, authorization, permit, order, filing, notice, registration or qualification of or with
any Person (including, but not limited to, any Governmental Authority, the Agent, the Banks, the Disbursement Agent, or the Bond Trustee), that has not already been obtained, is required to be obtained or made by Scrubgrass in connection with the
execution, delivery or performance of the Lease Termination Documents to which it is a party and the consummation of the Lease Termination Transaction; <U>except</U> <U>that</U> the </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">representation set forth in this Section&nbsp;5.4 does not apply to any such acts, consents, approvals, authorizations, permits, orders, filings, notices,
registrations or qualifications to the extent that the failure to obtain, make or file any of them, as applicable, would not have a Material Adverse Effect or a material adverse effect on the consummation of the Lease Termination Transaction.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5.5. <U>Legal Proceedings</U>. There is no suit, claim, action, proceeding or investigation pending or, to the knowledge of Scrubgrass,
threatened relating to Scrubgrass or the Project before any Governmental Authority, which (i)&nbsp;would prohibit or restrain Scrubgrass&#146;s execution, delivery or performance of the Lease Termination Documents to which it is a party or the
consummation of the Lease Termination Transaction or (ii)&nbsp;could reasonably be expected to have a material adverse effect on the consummation of the Lease Termination Transaction. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>ARTICLE VI </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>ADDITIONAL AGREEMENTS OF THE PARTIES </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6.1. <U>Further Assurances</U>. The Parties shall use commercially reasonable efforts to take, or cause to be taken, all actions and do, or cause to be
done, all things necessary, proper or advisable under applicable laws and regulations to cause the Closing Date to occur. At any time, and from time to time, upon and after the Closing Date, each of Scrubgrass and Buzzard shall execute such
additional instruments and take such actions as may be reasonably requested by the other Party, the Agent and the Bond Trustee, in each case to confirm or perfect or otherwise to carry out the intent and purposes of this Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6.2. <U>Consents and Approvals; Cooperation</U>. The Parties shall apply for and use commercially reasonable efforts to (i)&nbsp;secure any
nongovernmental approvals, consents and waivers of third parties listed in Part I of <U>Schedules 4.5</U> and <U>5.4</U> (&#147;<U>Third Party Consents</U>&#148;), necessary for the execution, delivery, and performance of the Lease Termination
Documents and the consummation of the Lease Termination Transaction, and (ii)&nbsp;give notices to, or make any filings with, any Governmental Authority, or secure the permission, approval, determination, consent or waiver of any Governmental
Authority, required by law to be given or made in connection with the Lease Termination Transaction, including with respect to any Governmental Approval or otherwise as listed in Part II of <U>Schedules 4.5</U> and <U>5.4</U>, and, after the Closing
Date, the Post-Closing FERC Filings. Each Party agrees that the foregoing obligations shall include an obligation to provide the other Parties with copies of any such notices, filings or submissions promptly after same are delivered to third parties
or Governmental Authorities. Subject to the terms and conditions of this Agreement and applicable law, the Parties shall consult, cooperate and assist each other in connection therewith. Except as otherwise expressly provided herein, no Party shall
have any liability whatsoever for the failure of any Governmental Authority or other Person to grant any required approval, consent or waiver, or to agree to take or refrain from taking any action necessary or desirable to consummate the Lease
Termination Transaction. No Party shall be obligated to make, or cause to be made, any payment to a third party in order to obtain any Third Party Consent. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">6.3. <U>Insurance Policies</U>. Scrubgrass shall not terminate or modify coverage under any &#147;occurrence&#148;-based insurance policy (excluding business interruption coverage under any such policy, an
&#147;<U>Insurance Policy</U>&#148;) in such a manner as to adversely affect any rights Buzzard may have under such Insurance Policy with respect to the Assigned Assets for insured losses caused by events, facts, or circumstances occurring prior to
the Closing Date covered by such policies. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">6.3.1 If Buzzard determines at any time after the Closing Date to make a claim under an Insurance Policy
that is permitted under such Insurance Policy, Buzzard shall notify Scrubgrass of its request to make such claim, setting forth in such notice the nature of the claim and describing in reasonable detail the basis for and facts and circumstances
surrounding the claim. Scrubgrass shall cooperate with Buzzard to make the claim to the insurer and pursue the claim at Buzzard&#146;s reasonable direction and expense (including attorney&#146;s fees and expenses) and Buzzard&#146;s benefit until
resolution of the claim; <U>provided</U> <U>that</U> Scrubgrass shall have all rights to control the Insurance Policies. To the extent that Scrubgrass receives any proceeds from an Insurance Policy in respect of a claim made at the request of
Buzzard, Scrubgrass shall promptly transfer such proceeds, to the extent such proceeds relate to losses incurred by Buzzard and not by Scrubgrass or the Project, to Buzzard after deducting any deductible incurred and paid by Scrubgrass pursuant to
such Insurance Policy in respect of such claim. If, after the Closing Date, either Scrubgrass or Buzzard requires any information regarding an Insurance Policy, or any data or other information pertaining to a claim or potential claim in order to
evaluate coverage or the merits of a claim or to make filings with insurance carriers or claims adjustors or administrators or to administer or otherwise manage a claim, Scrubgrass or Buzzard, as the case may be, each agree to supply such
information, and shall cause such information to be supplied, to the other (or its designee(s)), to the extent such information is in its reasonable control or can be reasonably obtained, promptly upon written request therefor. </FONT></P> <P
STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>ARTICLE VII </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>CONDITIONS PRECEDENT
</B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">7.1. <U>Conditions Precedent to Scrubgrass&#146;s Obligation to Close</U>. The obligations of Scrubgrass to consummate the
transactions contemplated by this Agreement shall be subject to the satisfaction, on or before the Closing Date, of each and every one of the following conditions, all or any of which may be waived, in whole or in part, by Scrubgrass subject to
compliance with the Transaction Documents, but without prejudice to any other right or remedy which Scrubgrass may have hereunder as a result of any misrepresentation by, or breach of any covenant or warranty of Buzzard contained in this Agreement,
or any certificate, agreement or instrument furnished by it hereunder: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.1.1 <I>Representations True at Closing</I>. The representations
and warranties made by Buzzard in this Agreement and any agreement, document or instrument delivered by it to Scrubgrass hereunder shall be true and correct in all material respects (except that if any such representations and warranties are
qualified by materiality, such representations and warranties shall be true and correct) on the Closing Date with the same force and effect as though such representations and warranties had been made on and as of such date. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.1.2 <I>Covenants of Buzzard</I>. Buzzard shall have duly performed in all material respects all of the covenants, acts and undertakings required
hereunder to be performed by it on or prior to the Closing Date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.1.3 <I>Consents and Approvals</I>. Each of the consents listed on
<U>Schedule 4.5</U> and <U>Schedule 5.4</U> respectively, shall have been obtained. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.1.4 <I>Receipt of Counterparty Consents</I>. Scrubgrass shall have received each Counterparty Consent,
duly executed by all parties other than the Agent, in form and substance reasonably satisfactory to Scrubgrass. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.1.5 <I>Effectiveness of
Amendment No.&nbsp;7</I>. Scrubgrass shall have received a fully executed copy of Amendment No.&nbsp;7 and each of the conditions to effectiveness thereto shall have been satisfied. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.1.6 <I>Assignment and Termination Agreement</I>. Buzzard, EPC and the Agent shall have executed and delivered the Assignment and Termination Agreement.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.1.7 <I>Buzzard&#146;s Deliverables</I>. Buzzard shall have delivered to Scrubgrass the following: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) a certificate of the secretary of Buzzard, dated as of the Closing Date, certifying on behalf of Buzzard as to the following documents: (i)&nbsp;a
copy of the articles of incorporation of Buzzard, (ii)&nbsp;a copy of the bylaws of Buzzard and all amendments thereto, (iii)&nbsp;a copy of the resolutions of Buzzard approving the transactions set forth in this Agreement, and (iv)&nbsp;incumbency
certificates for the officers of Buzzard executing this Agreement or any agreements delivered herewith; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) a certificate by a duly
authorized officer of Buzzard, dated as of the Closing Date, certifying on behalf of Buzzard that Buzzard has duly performed in all material respects all of the covenants, acts and undertakings required hereunder to be performed by it on or prior to
the Closing Date and that the condition set forth under Section&nbsp;7.1.1 has been satisfied; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) a certificate of good standing of
Buzzard from the Secretary of State of the State of Delaware, dated within the 10 days preceding the Closing Date; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(d) each of the
agreements, documents and instruments set forth in Section&nbsp;8.2 to which Buzzard and Scrubgrass are parties, as executed by Buzzard. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman"
SIZE="2">7.1.8 <I>Amended and Restated Partnership Agreement</I>. Aspen Scrubgrass Participant, LLC shall have executed and delivered an amended and restated partnership agreement in form and substance reasonably satisfactory to the Agent (the
&#147;<U>Amended and Restated Partnership Agreement</U>&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.1.9 <I>Amendment to Insurance Policies</I>. Subject to Section&nbsp;6.3,
either (a)&nbsp;the insurance policies in effect on the Effective Date shall have been amended, effective from and after the Closing Date, so that Buzzard is eliminated as the named beneficiary or an additional named insured thereunder, as
applicable, or (b)&nbsp;new insurance policies shall have been established with Scrubgrass as the named beneficiary that satisfy the requirements of the Transaction Documents. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.1.10 <I>Disbursement Agreement Amendment</I>. The Disbursement Agent, the Agent and Buzzard shall have executed and delivered the Disbursement
Agreement Amendment. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">7.2. <U>Conditions Precedent to Buzzard&#146;s Obligation to Close</U>. The obligations of Buzzard to
consummate the transactions contemplated by this Agreement shall be subject to the satisfaction, on or before the Closing Date, of each and every one of the following conditions, all or any of which may be waived, in whole or in part by Buzzard,
subject to compliance with the Transaction Documents but without prejudice to any other right or remedy which Buzzard may have hereunder as a result of any misrepresentation by, or breach of any covenant or warranty of Scrubgrass contained in this
Agreement, or any certificate, agreement or instrument furnished by it hereunder: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.2.1 <I>Representations True at Closing</I>. The
representations and warranties made by Scrubgrass in this Agreement and any agreement, document or instrument delivered by it to Buzzard hereunder shall be true and correct in all material respects (except that if any such representations and
warranties are qualified by materiality, such representations and warranties shall be true and correct) on the Closing Date with the same force and effect as though such representations and warranties had been made on and as of such date.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.2.2 <I>Covenants of Scrubgrass</I>. Scrubgrass shall have duly performed in all material respects all of the covenants, acts and
undertaking required hereunder to be performed by it on or prior to the Closing Date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.2.3 <I>Consents and Approvals</I>. Each of the
consents listed on <U>Schedule 4.5</U> or <U>Schedule 5.4</U>, respectively, shall have been obtained. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.2.4 <I>Assignment and Termination
Agreement</I>. Scrubgrass and the Agent shall have executed and delivered the Assignment and Termination Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.2.5
<I>Scrubgrass&#146;s Deliverables</I>. Scrubgrass shall have delivered to Buzzard the following: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) on the Closing Date, a certificate of
the secretary of Scrubgrass, dated as of the Closing Date, certifying on behalf of Scrubgrass as to the following documents: (i)&nbsp;the certificate of limited partnership of Scrubgrass, (ii)&nbsp;certified copies of resolutions of Scrubgrass
approving the transactions set forth in this Agreement and (iii)&nbsp;incumbency certificates for the officers of Scrubgrass executing this Agreement or any agreements delivered herewith; </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) a certificate by a duly authorized officer of Scrubgrass, dated as of the Closing Date, certifying on behalf of Scrubgrass that Scrubgrass has duly
performed in all material respects all of the covenants, acts and undertakings required hereunder to be performed by it on or prior to the Closing Date and that the condition set forth under Section&nbsp;7.2.1 has been satisfied; </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) a certificate of good standing of Scrubgrass from the Secretary of State of the State of Delaware, dated within the 10 days preceding the Closing
Date; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(d) each of the agreements, documents and instruments set forth in Section&nbsp;8.2 to which Scrubgrass and Buzzard are parties,
as executed by Scrubgrass. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.2.6 <I>Disbursement Agreement Amendment</I>. The Disbursement Agent, the Agent and Scrubgrass shall
have executed and delivered the Disbursement Agreement Amendment. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>ARTICLE VIII </B></FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>CLOSING </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.1. <U>Time and Place of
Closing</U>. Closing shall be held at the offices of Latham&nbsp;&amp; Watkins LLP, New York, New York, on the date the conditions precedent in Article VII have been satisfied (the &#147;<U>Closing Date</U>&#148;), commencing at 10:00 a.m. New York
time, unless another place or date is agreed to in writing by the Parties. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8.2. <U>Transactions at Closing</U>. At Closing, each of the
following transactions shall occur: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">8.2.1 <I>Payment of Termination Payment.</I> Scrubgrass shall pay the Termination Payment to Buzzard by
wire transfer of immediately available funds to an account designated by Buzzard. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">8.2.2 <I>Vacating the Project</I>. Buzzard shall vacate,
and transfer to Scrubgrass, custody of the Project, to the satisfaction of Scrubgrass, in an orderly manner and without impairing the business, operations or property of the Project. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">8.2.3 <I>EPC Pledge Agreement Termination</I>. Scrubgrass shall execute and deliver a termination and release agreement, substantially in the form of
<U>Exhibit B</U> hereto (the &#147;<U>EPC Pledge Agreement Termination</U>&#148;), together with EPC, pursuant to which the EPC Stock Pledge Agreement shall be terminated from and after the Amendment No.&nbsp;7 Effective Date and the stock
certificates and related powers pledged as collateral by EPC thereunder shall be transferred by Scrubgrass back to EPC. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">8.2.4 <I>East Bay
Pledge Agreement Termination</I>. Scrubgrass shall execute and deliver a termination and release agreement, substantially in the form of <U>Exhibit C</U> hereto (the &#147;<U>East Bay Pledge Agreement Termination</U>&#148;), together with East Bay
Model Engineer&#146;s Society, pursuant to which the East Bay Stock Pledge Agreement shall be terminated from and after the Amendment No.&nbsp;7 Effective Date and the stock certificates and related powers pledged as collateral by East Bay
thereunder shall be transferred by Scrubgrass back to East Bay Model Engineer&#146;s Society. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">8.2.5 <I>Assignment and Termination
Agreement</I>. Buzzard and Scrubgrass shall execute and deliver an assignment, termination and release agreement, substantially in the form of <U>Exhibit A</U> hereto (&#147;<U>Assignment and Termination Agreement</U>&#148;), together with EPC and
the Agent, pursuant to which (i)&nbsp;Buzzard shall assign to Scrubgrass, and Scrubgrass shall accept and assume, all of the Assigned Assets and the Assumed Obligations, respectively, (ii)&nbsp;Buzzard and Scrubgrass shall terminate the Lease, the
Lessee Security Agreement, the Lessee Working Capital Loan Agreement and the Tax Indemnity Agreement, (iii)&nbsp;EPC and Buzzard shall be eliminated as parties to the Participation Agreement, (iv)&nbsp;Scrubgrass shall forgive all amounts
outstanding on the Effective Date under the Lessee Working Capital Loan Agreement and the Lessee Working Capital Loan Note and (v)&nbsp;Scrubgrass shall return the Lessee Working Capital Note to Buzzard for cancellation. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">8.2.6 <I>Disbursement Agreement Amendment</I>. Scrubgrass and Buzzard shall execute and deliver an
amendment to the Disbursement Agreement substantially in the form of <U>Exhibit E</U> hereto (the &#147;<U>Disbursement Agreement Amendment</U>&#148;), with the other parties to the Disbursement Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">8.2.7 <I>Termination of Lease Memorandum</I>. Scrubgrass and Buzzard shall execute and deliver a termination of the memorandum of the Lease,
substantially in the form of <U>Exhibit F</U> hereto (the &#147;<U>Termination of Lease Memorandum</U>&#148;), and on the Closing Date Scrubgrass shall file such Termination of Lease Memorandum for recording in the recorder&#146;s offices of Venango
County, Pennsylvania, Allegheny County, Pennsylvania, and Armstrong County, Pennsylvania, unless it is not possible or reasonably practical for Scrubgrass to make any such filings on the Closing Date, in which case Scrubgrass shall make such filings
as promptly as practicable after the Closing Date. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">8.2.8 <I>UCC Financing Statements</I>. Any UCC financing statements or financing
statement amendments required to be filed in connection with the transactions under the Assignment and Termination Agreement and the Disbursement Agreement Amendment shall be filed. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">8.2.9 <I>Opinion of Counsel</I>. Buzzard shall deliver an opinion of Buzzard&#146;s counsel substantially in the form of Exhibit A to Amendment
No.&nbsp;7. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">8.2.10 <I>Amended and Restated Management Services Agreement</I>. Scrubgrass shall execute and deliver an amended and restated
management services agreement, substantially in the form of Exhibit B to Amendment No.&nbsp;7 (the &#147;<U>Amended and Restated Management Services Agreement</U>&#148;), together with Power Services Company, pursuant to which the terms of the
Management Services Agreement, dated December&nbsp;15, 1990, between the Borrower and PG&amp;E-Bechtel Generating Company (the &#147;<U>Original Management Services Agreement</U>&#148;), will be amended and restated to take into account the Lease
Termination Transaction and the elimination of Buzzard as an acknowledging party to the Original Management Services Agreement. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>ARTICLE
IX </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>SURVIVAL OF REPRESENTATIONS </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>AND WARRANTIES </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">9.1. <U>Survival of Representations and Warranties</U>. All representations,
warranties, agreements, covenants and obligations made by or undertaken by the Parties in this Agreement, the Schedules and Exhibits hereto, or in any document or instrument executed and delivered pursuant hereto and, with respect to Buzzard, in the
Lease Termination Documents to the extent of applicable survival provisions, are material, have been relied upon the other Party, and shall survive Closing hereunder. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">9.2. <U>No Consequential Damages</U>. Notwithstanding anything to the contrary contained herein, no Party shall have any obligation or liability arising under or relating to this Agreement, </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">the Schedules and Exhibits hereto, or in any document or instrument executed and delivered pursuant hereto, for any consequential, incidental, indirect,
punitive, exemplary or special loss or damage, resulting from any cause whatsoever, whether arising in contract, warranty, tort, strict liability, indemnity or otherwise. No officer, director, manager, employee or agent of any Party shall be liable
for, and there shall be no recourse to any such person in connection with, the obligations of any Party hereunder. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>ARTICLE X
</B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>TERMINATION </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">10.1.
<U>Method of Termination</U>. This Agreement constitutes the binding and irrevocable agreement of the Parties to consummate the transactions contemplated hereby and this Agreement may be terminated or abandoned only as follows: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">10.1.1 by the mutual written consent of the Parties; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman"
SIZE="2">10.1.2 by Buzzard on or after the later of January&nbsp;31, 2008 or, if applicable, the Forbearance Extension Date, upon written notice to Scrubgrass, if any of the conditions set forth in Section&nbsp;7.2, have not been fulfilled or
waived, unless such fulfillment has been frustrated or made impossible by any act or failure to act of Buzzard; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">10.1.3 by Scrubgrass on or
after the later of January&nbsp;31, 2008 or, if applicable, the Forbearance Extension Date, upon written notice to Buzzard, if any of the conditions set forth in Section&nbsp;7.1, have not been fulfilled or waived, unless such fulfillment has been
frustrated or made impossible by any act or failure to act of Scrubgrass, as applicable; or </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">10.1.4 by Scrubgrass prior to the Closing Date
upon written notice to Buzzard in the event Buzzard breaches any of its obligations hereunder and fails to cure such breach within 15 days after Scrubgrass provides Buzzard written notice describing such breach. </FONT></P> <P
STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>ARTICLE XI </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>GENERAL PROVISIONS </B>
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11.1. <U>Notices</U>. Any notice to be given hereunder shall be in writing and may be sent via personal delivery, facsimile transmission
or United States mail. Notices sent by personal delivery shall be effective upon receipt and notices sent by facsimile transmission shall be effective upon receipt of automatic confirmation transmission; <U>provided</U>, <U>however</U>, that where,
in the case of personal delivery to an address or transmission by facsimile, delivery or transmission occurs after 4:00 p.m. (in the time zone applicable for the recipient) on a business day or on a day that is not a business day in the place of
receipt, receipt shall be deemed to occur at 9:00 a.m. (in the time zone applicable for the recipient) on the next following business day in that place, and for this purpose &#147;business day&#148; means a day on which banks in that place are open
for business in the ordinary course, other than Saturdays and Sundays. Notices sent by United States mail shall be effective upon receipt, or if receipt is refused, at such time as delivery is refused by addressee upon presentation. Notices shall be
sent to the Parties at the addresses set forth below, <U>provided</U> that any Party may change its address for notice hereunder upon prior written notice to the other Party. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">16 </FONT></P>


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<TR>
<TD WIDTH="13%"></TD>
<TD VALIGN="bottom" WIDTH="4%"></TD>
<TD WIDTH="83%"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">If&nbsp;to&nbsp;Buzzard:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Buzzard Power Corporation</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">c/o Environmental Power Corporation</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">One Cate Street, 4</FONT><FONT FACE="Times New Roman" SIZE="1"><SUP>th</SUP></FONT><FONT FACE="Times New Roman" SIZE="2"> Floor</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Portsmouth, NY 03801</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Attention: General Counsel</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Fax: (603) 431-2650</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">If&nbsp;to&nbsp;Scrubgrass:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Scrubgrass Generating Company, L.P.</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">c/o Cogentrix Energy, Inc.</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">9405 Arrowpoint Boulevard</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Charlotte, NC 28273-8100</FONT></TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="92%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="14%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="73%"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Attention:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Tom Bonner</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Beth Rippetoe</FONT></TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="92%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="14%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD></TD>
<TD VALIGN="bottom" WIDTH="2%"></TD>
<TD WIDTH="78%"></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Fax:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">(704) 525-9934</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">(704) 539-1006</FONT></TD></TR>
</TABLE>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="92%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="14%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD WIDTH="40%"></TD>
<TD VALIGN="bottom" WIDTH="3%"></TD>
<TD WIDTH="40%"></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">with a copy to:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Latham &amp; Watkins LLP</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">885 Third Avenue, Suite 1000</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">New York, NY 10022-4834</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Attention: Warren Lilien</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Fax: (212) 751-4864</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;&nbsp;&nbsp;&nbsp;</FONT></TD>
<TD VALIGN="top"></TD></TR>
</TABLE> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11.2. <U>Relationship</U>. Notwithstanding any implication herein to the contrary, this Agreement
does not create and shall not be deemed to create a partnership, company, joint venture or any other entity or similar legal relationship between the Parties. No Party hereto is or shall act as or be deemed to be the agent or representative of the
other. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11.3. <U>Modifications</U>. No change, amendment or modification of this Agreement shall be valid or binding upon the Parties
unless such change, amendment or modification shall be in writing and duly executed by each Party hereto. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11.4. <U>Assignment</U>. No
Party may assign this Agreement without the prior written consent of the other Party, which consent shall not be unreasonably withheld or delayed. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">11.5. <U>Governing Law</U>. This Agreement shall be governed by and construed under the laws of the State of New York without reference to the conflict of laws provisions thereof. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11.6. <U>Entire Agreement</U>. This Agreement contains the entire agreement between the Parties with respect to the subject matter hereof and supersedes
any and all other prior understandings, correspondence and agreements, oral or written, between them. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11.7. <U>Severability</U>. If any
provision of this Agreement is void or unenforceable under the governing law, (a)&nbsp;such provision shall be deemed severed from this Agreement and the validity and enforceability of the remainder of this Agreement shall not be affected thereby,
and (b)&nbsp;the Parties shall negotiate in good faith an equitable amendment to any such provision with the view to effecting, to the extent legally possible, the original purpose and intent of this Agreement. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">17 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11.8. <U>Non-Waiver</U>. The failure of any Party to this Agreement at any time or times to require the
performance of any provision of this Agreement shall in no manner affect the right to enforce the same. No waiver by any Party to this Agreement of any provision (or of a breach of any provision) of this Agreement, whether by conduct or otherwise,
in any one or more instances, shall be deemed or construed either as a further or continuing waiver of any such provision or breach or as a waiver of any other provision (or of a breach of any other provision) of this Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11.9. <U>Binding Effect</U>. This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and
assigns. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11.10. <U>Headings</U>. The Section headings and other headings in this Agreement are inserted solely as a matter of convenience
and for reference and are not and shall not be deemed to be a part of this Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11.11. <U>Exhibits and Schedules Incorporated</U>.
All Exhibits and Schedules attached hereto are incorporated herein by reference. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11.12. <U>Costs and Expenses</U>. Except as otherwise
provided in this Agreement, each Party shall be responsible for its own expenses associated with the transactions contemplated by this Agreement. Any sales, use, transfer, documentary, registration and other similar Taxes imposed by any Governmental
Authority with respect to the transfer of the Assigned Assets or the Assumed Obligations to Scrubgrass (excluding any Taxes on gross or net income or profits) shall be paid for by Scrubgrass, regardless of whether a Governmental Authority seeks to
collect such Taxes from Scrubgrass or Buzzard. The Parties agree to cooperate and coordinate their actions with respect to any such Taxes to ensure that all tax returns related to such Taxes are duly filed on a timely and consistent basis.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11.13. <U>No Reliance</U>. Each Party agrees that (a)&nbsp;the other Parties (including its agents and representatives) have made no
representation, warranty, covenant or agreement to or with such Party relating to the transactions contemplated hereby, other than those expressly set forth in the Agreement, the Schedules and Exhibits hereto, or in any document or instrument
executed and delivered pursuant hereto, and (b)&nbsp;such Party has not relied upon any representation, warranty, covenant or agreement relating to the transactions contemplated hereby, other than those expressly set forth in this Agreement, the
Schedules and Exhibits hereto, or in any document or instrument executed and delivered pursuant hereto; <U>provided</U>, that in no event shall this provision be construed as releasing any Person not a party to this Agreement from any obligations
such Person may have to the releasing Party under agreements (i)&nbsp;entered into after the Closing Date, or (ii)&nbsp;not related to the Project or the Lease Termination Transactions. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11.14. <U>No Third-Party Beneficiaries</U>. This Agreement shall not confer any rights or benefits upon any Person other than the Parties, the Bank
Parties and the Bond Trustee and their respective successors and permitted assigns. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">18 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11.15. <U>Counterparts</U>. This Agreement may be executed in two or more counterparts, each of which
will be deemed an original, but all of which together will constitute one and the same instrument. Any signature page of any such counterpart, or any facsimile thereof, may be attached or appended to any other counterpart to complete a fully
executed counterpart to this Agreement, and any facsimile transmission of any Party&#146;s signature to any counterpart shall be deemed an original signature and shall bind such Party. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">[<I>The remainder of this page is intentionally left blank</I>.] </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">19 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">IN WITNESS WHEREOF, each party hereto has executed or caused this Omnibus Agreement Regarding Termination
of Lease to be executed on its behalf, all on the day and year first above written. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="12%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="87%"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">SCRUBGRASS GENERATING COMPANY, L.P.,<BR>a Delaware limited partnership</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Thomas J. Bonner</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Thomas J. Bonner</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">President</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">BUZZARD POWER CORPORATION,<BR>a Delaware corporation</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Michael E. Thomas</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Michael E. Thomas</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">President</FONT></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">(Omnibus Agreement Regarding Termination of Lease) </FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The following exhibits and schedules have been omitted. Copies of such exhibits and schedules will be furnished to the
Securities and Exchange Commission upon request. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2"><B><U>SCHEDULES</U> </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT
FACE="Times New Roman" SIZE="2">SCHEDULE A - BUZZARD TRANSACTION DOCUMENTS </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">SCHEDULE 4.5 - BUZZARD CONSENTS AND APPROVALS </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">SCHEDULE 4.8 - PERMITTED LIENS </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">SCHEDULE 5.4 - SCRUBGRASS CONSENTS AND
APPROVALS </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">SCHEDULE 6.2 - COUNTERPARTY CONSENTS </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2"><B><U>EXHIBITS </U></B></FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="100%" BORDER="0" ALIGN="center">

<TR>
<TD WIDTH="6%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="93%"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP><FONT FACE="Times New Roman" SIZE="2">EXHIBIT&nbsp;A&nbsp;-</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">ASSIGNMENT, TERMINATION AND RELEASE AGREEMENT</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP><FONT FACE="Times New Roman" SIZE="2">EXHIBIT&nbsp;B&nbsp;-</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">TERMINATION AND RELEASE AGREEMENT (EPC Pledge Agreement)</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP><FONT FACE="Times New Roman" SIZE="2">EXHIBIT&nbsp;C&nbsp;-</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">TERMINATION AND RELEASE AGREEMENT (East Bay Pledge Agreement)</FONT></TD></TR>
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<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
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<TD VALIGN="top" NOWRAP><FONT FACE="Times New Roman" SIZE="2">EXHIBIT&nbsp;D&nbsp;-</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">FORM OF COUNTERPARTY CONSENT</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top" NOWRAP><FONT FACE="Times New Roman" SIZE="2">EXHIBIT&nbsp;E&nbsp;-</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">THIRD AMENDMENT TO AMENDED AND RESTATED DISBURSEMENT AGREEMENT</FONT></TD></TR>
<TR>
<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
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<TD VALIGN="top" NOWRAP><FONT FACE="Times New Roman" SIZE="2">EXHIBIT&nbsp;F&nbsp;-</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">FORM OF TERMINATION OF MEMORANDUM OF AMENDED AND RESTATED LEASE</FONT></TD></TR>
</TABLE>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.02
<SEQUENCE>3
<FILENAME>dex202.htm
<DESCRIPTION>ASSIGNMENT, TERMINATION AND RELEASE AGREEMENT
<TEXT>
<HTML><HEAD>
<TITLE>Assignment, Termination and Release Agreement</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 2.02 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT
FACE="Times New Roman" SIZE="2">EXECUTION VERSION </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>ASSIGNMENT, TERMINATION AND RELEASE AGREEMENT </B></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">This ASSIGNMENT, TERMINATION AND RELEASE AGREEMENT (this &#147;<U>Assignment and Termination Agreement</U>&#148;), dated as of February&nbsp;29, 2008, is
among BUZZARD POWER CORPORATION, a Delaware corporation (&#147;<U>Buzzard</U>&#148;), SCRUBGRASS GENERATING COMPANY, L.P., a Delaware limited partnership (&#147;<U>Scrubgrass</U>&#148;), EPC CORPORATION, a Delaware corporation and the parent company
of Buzzard (&#147;<U>EPC</U>&#148;), and CALYON NEW YORK BRANCH, as agent (the &#147;<U>Agent</U>&#148;) under the Loan and Reimbursement Agreement referred to below. </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B><U>RECITALS </U></B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, Scrubgrass, as lessor, and Buzzard, as lessee, are parties to that certain
Amended and Restated Lease Agreement, dated December&nbsp;22, 1995 (the &#147;<U>Lease</U>&#148;), pursuant to which, among other things, Scrubgrass leased the Project to Buzzard and assigned the Assigned Rights (as defined in the Lease) to Buzzard;
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, Scrubgrass, Buzzard, EPC, the Agent and the Bond Trustee are parties to the Amended and Restated Participation Agreement, dated
December&nbsp;22, 1995 (as amended, supplemented or otherwise modified, the &#147;<U>Participation Agreement</U>&#148;); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS,
Section&nbsp;11.2 of the Participation Agreement provides that Scrubgrass and Buzzard may terminate the Lease subject to the conditions to such termination set forth in such Section&nbsp;11.2; </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, pursuant to that certain Omnibus Agreement Regarding Termination of Lease, dated as of November&nbsp;30, 2007 (the &#147;<U>Omnibus
Agreement</U>&#148;), among Scrubgrass and Buzzard, Scrubgrass and Buzzard have agreed to enter into this Assignment and Termination for the purpose of: (i)&nbsp;effecting the assignment, transfer, conveyance and delivery by Buzzard to Scrubgrass,
and the acceptance and assumption by Scrubgrass, of the Assigned Assets including the Lease, and the Assumed Obligations, respectively, including all of Buzzard&#146;s rights, title, interest and obligations, as assignee under Section&nbsp;2.03 of
the Lease, under each of the agreements listed on <U>Schedule I</U> hereto, which transactions will be in confirmation of the termination of the assignment, pursuant to Section&nbsp;2.03(a) of the Lease, by Scrubgrass to Buzzard of the Principal
Project Agreements (as defined in the Lease) and the reversion to Scrubgrass of all rights and obligations thereunder as contemplated by the last sentence of Section&nbsp;2.03(c) of the Lease (but not in limitation of any of the transactions
contemplated by this Agreement); (ii)&nbsp;terminating the Lessee Security Agreement, the Lessee Working Capital Loan Agreement and the Tax Indemnity Agreement (collectively, the &#147;<U>Terminated Lease Documents</U>&#148;); (iii)&nbsp;modifying
the Participation Agreement to eliminate Buzzard and EPC as parties thereto; (iv)&nbsp;effecting the forgiveness by Scrubgrass of all amounts outstanding on the Amendment No.&nbsp;7 Effective Date under the Lessee Working Capital Loan Agreement and
the Lessee Working Capital Note; and (v)&nbsp;effecting the return by Scrubgrass to Buzzard of the Lessee Working Capital Note for cancellation; and </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, pursuant to Amendment No.&nbsp;7, dated as of November&nbsp;30, 2007 (&#147;<U>Amendment
No.&nbsp;7</U>&#148;), to the Reimbursement and Loan Agreement (as defined in the Omnibus Agreement), the Agent and the other banks party thereto have agreed to the transactions set forth in this Assignment and Termination Agreement upon
satisfaction of the terms and conditions set forth in Amendment No.&nbsp;7; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">NOW, THEREFORE, for good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1. <U>Definitions</U>. Capitalized
terms used herein and not defined herein shall have the meanings given to such terms in the Omnibus Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2. <U>Assignment and
Assumption of Assigned Assets</U>. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) <I>Assignment of Rights</I>. Buzzard hereby transfers, assigns, conveys and delivers to Scrubgrass,
and Scrubgrass hereby acquires and accepts, all of the Assigned Assets. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) <I>Assignment of Obligations</I>. Buzzard hereby transfers,
assigns, conveys and delivers to Scrubgrass all of the Assumed Obligations. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) <I>Assumption</I>. Scrubgrass hereby assumes, becomes
bound by, and agrees to perform fully all of the Assumed Obligations. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(d) <I>Performance of Obligations</I>. Scrubgrass hereby agrees to
perform fully all of the Assumed Obligations, and will indemnify Buzzard in respect of, and hold Buzzard harmless against, any and all debts, obligations and other liabilities (whether absolute, accrued, contingent, fixed or otherwise, or whether
known or unknown, or due or to become due or otherwise), monetary damages, fines, fees, penalties, interest obligations, deficiencies, losses and expenses (including amounts paid in reasonable costs, fees and expenses of attorneys and other expenses
of litigation) incurred or suffered by Buzzard or any of its affiliates (within the meaning of Rule 12b-2 under the Securities Exchange Act of 1934) thereof resulting from, relating to or constituting any failure on the part of Scrubgrass to perform
such Assumed Obligations. The Agent agrees that it shall look only to Scrubgrass for performance of the Assumed Obligations. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(e)
<I>Leasehold Interests</I>. Scrubgrass and Buzzard agree that (i)&nbsp;all of Buzzard&#146;s leasehold interests in the Project under the Lease are hereby terminated, (ii)&nbsp;without limiting the effectiveness of this Agreement with respect to the
Assigned Rights and the Assigned Obligations, this Agreement shall confirm that the assignment of the Principal Project Agreements (as defined in the Lease) by Scrubgrass to Buzzard pursuant to Section&nbsp;2.03(a) of the Lease is hereby terminated
and all rights and obligations under the Principal Project Documents hereby revert to and vest in Scrubgrass as contemplated by the last sentence of Section&nbsp;2.03(c) of the Lease and (iii)&nbsp;all of the possessory rights and interests held by
Buzzard in the Project on the Amendment No.&nbsp;7 Effective Date hereby revert to and vest in Scrubgrass, in each case, effective as of the Amendment No.&nbsp;7 Effective Date. </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3. <U>Terminated Lease Documents</U>. The parties hereto agree that: (a)&nbsp;each of the Terminated
Lease Documents is hereby terminated, effective as of the Amendment No.&nbsp;7 Effective Date, and all obligations under the Terminated Lease Documents are hereby deemed satisfied, discharged and paid in full, and (b)&nbsp;all liens granted on and
security interests granted in the Lessee Collateral (as defined in the Lessee Security Agreement) in favor of Scrubgrass under the Lessee Security Agreement are hereby released and terminated. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4. <U>Loan Forgiveness</U>. Scrubgrass hereby forgives all amounts due and owing by Buzzard under the Lessee Working Capital Loan Agreement and the
Lessee Working Capital Note. Scrubgrass shall promptly return the Lessee Working Capital Note to Buzzard for cancellation. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5.
<U>Modification of Participation Agreement</U>. The parties hereto agree that the Participation Agreement is hereby modified by eliminating each of EPC and Buzzard as a party thereto, effective immediately upon and subject to the consummation of the
Lease Termination Transaction. After giving effect to such modification, EPC and Buzzard shall have no further rights or obligations under the Participation Agreement and the provisions of Article VIII and Article IX shall no longer have any force
or effect, and all references in the Participation Agreement to, and all provisions applicable to, the &#147;Lessee,&#148; &#147;EPC&#148; or the &#147;Amended and Restated Lease&#148; and all the defined terms and provisions specifically related
thereto shall be deemed deleted therefrom and shall no longer have any force or effect. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6. <U>Releases</U>. </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) <I>Release of Buzzard and EPC by Scrubgrass</I>. Scrubgrass, for itself and its affiliates, including, but not limited to, its successors and assigns,
does hereby irrevocably and unconditionally release and forever discharge Buzzard and EPC and their affiliates, and each of their and their affiliates&#146; respective agents, directors, officers, employees, representatives, predecessors, successors
and assigns, and all Persons acting by or through them, of and from any and all claims, assertion of claims, expenses, debts, demands, actions, causes of action, suits, liabilities, and/or expenses (including attorney&#146;s fees) of any nature
whatsoever (collectively, &#147;<U>Claims</U>&#148;), whether or not now known, suspected or claimed, which they ever had, now have, or hereafter acquire, both at law and in equity, from the beginning of time to the Amendment No.&nbsp;7 Effective
Date; <U>provided</U>, <U>however</U>, that this release and discharge shall not apply to or limit any right or remedy of Scrubgrass relating to or arising out of the Lease Termination Documents to which it is a party. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) <I>Release of Buzzard and EPC by Agent</I>. The Agent, for itself, its affiliates, the Bond LOC Issuer and the Banks, including, but not limited to,
its successors and assigns, does hereby irrevocably and unconditionally release and forever discharge Buzzard and EPC and their affiliates, and each of their and their affiliates&#146; respective agents, directors, officers, employees,
representatives, predecessors, successors and assigns, and all Persons acting by or through them, of and from any and all Claims, whether or not now known, suspected or claimed, which they ever had, now have, or hereafter acquire, both at law and in
equity, from the beginning of time to the Amendment No.&nbsp;7 Effective Date; <U>provided</U>, <U>however</U>, that this release and discharge shall only apply to those Claims relating to or arising out of the Transaction Documents;
<U>provided</U>, <U>further</U>, that this release and discharge shall not apply to or limit any right </FONT>
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 <P STYLE="margin-top:0px;margin-bottom:0px">
<FONT FACE="Times New Roman" SIZE="2">or remedy of the Agent, its affiliates, or any of the Bank Parties, or their successors or assigns, (i)&nbsp;relating to or arising out of the Lease
Termination Documents to which it is a party or under which it has rights as a third party beneficiary or a secured party, or (ii)&nbsp;relating to or arising out of any Transaction Document that remains in effect (by assignment or otherwise) after
the consummation of the Lease Termination Transaction (a &#147;<U>Continuing Transaction Document</U>&#148;)&nbsp;with respect to Scrubgrass, any Counterparty,&nbsp;any other Bank Party, the Bond Trustee, or any other Person party to any Assigned
Right, any Assigned Agreement, or any Continuing Transaction Document, or with respect to any of their affiliates, or their and their affiliates&#146; respective agents, directors, officers, employees, representatives, predecessors, successors and
assigns, or any Person acting by or through them. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) <I>Release of Scrubgrass, Agent and Bond Trustee by Buzzard and EPC</I>. Each of
Buzzard and EPC, for itself and its affiliates, including, but not limited to, its successors and assigns, does hereby irrevocably and unconditionally release and forever discharge Scrubgrass and its affiliates (including, without limitation,
Cogentrix/Scrubgrass, LLC (f/k/a Cogentrix/Scrubgrass, Inc.), Falcon Power, LLC (f/k/a Falcon Power Corporation), Scrubgrass Power, LLC (f/k/a Scrubgrass Power Corporation), Leechburg Properties, Inc., Clearfield Properties, Inc., Power Services
Company and U.S. Operating Services Company), Aspen Scrubgrass Participant, LLC and its affiliates, the Agent, the Bank Parties, and their affiliates, and the Bond Trustee and its affiliates, and each of their and their affiliates&#146; respective
agents, directors, officers, employees, representatives, predecessors, successors and assigns, and all Persons acting by, or through them, of and from any Claims, whether or not now known, suspected or claimed, which they ever had, now have, or
hereafter acquire, both at law and in equity, from the beginning of time to the Amendment No.&nbsp;7 Effective Date; <U>provided</U>, <U>however</U>, that this release and discharge shall not apply to or limit any right or remedy of Buzzard or EPC
relating to or arising out of the Lease Termination Documents to which they are a party, respectively. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(d) <I>Forbearance from
Litigation</I>. Scrubgrass, on the one hand, and Buzzard and EPC, on the other hand, agree and acknowledge that neither of them, nor any Person acting on their behalf has or will file, charge, claim, sue or cause or permit to be filed any charge,
claim or action for damages or other relief against any Person involving any matter arising out of or relating to the subject of the releases set forth herein; <U>provided</U>, <U>however</U>, that this provision shall not apply to or limit any
rights either Scrubgrass or Buzzard may have to pursue Claims against the other party relating to or arising out of the Lease Termination Documents to which they are parties. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">7. <U>Effect on Assigned Rights</U>. The Assigned Rights shall remain in full force and effect after giving effect to the transactions under this
Assignment and Termination Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8. <U>Severability</U>. Any provision of this Assignment and Termination 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.
</FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">9. <U>Effectiveness</U>. This Assignment and Termination Agreement shall become effective upon the last
to occur of: (a)&nbsp;the execution and delivery of this Assignment and Termination by each of the parties hereto and the execution and delivery of each of the Counterparty Consents, and (b)&nbsp;the occurrence of the Amendment No.&nbsp;7 Effective
Date (as defined in Amendment No.&nbsp;7). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">10. <U>Counterparts</U>. This Assignment and Termination Agreement may be executed in two or
more counterparts, each of which will be deemed an original, but all of which together will constitute one and the same instrument. Any facsimile transmission of any party&#146;s signature to any counterpart shall be deemed an original signature and
shall bind such party. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">11. <U>Governing Law</U>. This Assignment and Termination Agreement shall be governed by and construed under the
laws of the State of New York without reference to the conflict of laws provisions thereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><I>[The remainder of this page is intentionally
left blank.] </I></FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">IN WITNESS WHEREOF, the parties have executed this Assignment, Termination and Release Agreement as of
the date first set forth above. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="12%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="87%"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">BUZZARD POWER CORPORATION,</FONT></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">a Delaware corporation</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Dennis Haines</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Dennis Haines</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Vice President</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">SCRUBGRASS GENERATING COMPANY, L.P.,</FONT></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">a Delaware limited partnership</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Thomas J. Bonner</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Thomas J. Bonner</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">President</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The undersigned hereby executes this Assignment,</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">Termination and Release Agreement for purposes of</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="2">Sections 5, 6, 8, 9, 10 and 11:</FONT></P></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">EPC CORPORATION,</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="2">a Delaware
corporation</FONT></P></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Dennis Haines</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Dennis Haines</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Vice President</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Acknowledged and agreed to for the purposes of</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman"
SIZE="2">Sections 2(d), 5, 6, 7, 8, 9, 10 and 11 hereof:</FONT></P></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">CALYON NEW YORK BRANCH,</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="2">as
Agent</FONT></P></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Robert G. Colvin</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Robert G. Colvin</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Director</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Ted Vandermel</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Ted Vandermel</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"><FONT FACE="Times New Roman" SIZE="2">Director</FONT></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">(Assignment, Termination and Release Agreement) </FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">SCHEDULE I </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><U>Agreements </U></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">[Omitted. A copy of this Schedule will be furnished to the Securities and Exchange Commission upon
request.] </FONT></P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-2.03
<SEQUENCE>4
<FILENAME>dex203.htm
<DESCRIPTION>THIRD AMENDMENT TO AMENDED AND RESTATED DISBURSEMENT AGREEMENT
<TEXT>
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<TITLE>Third Amendment to Amended and Restated Disbursement Agreement</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 2.03 </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT
FACE="Times New Roman" SIZE="2">EXECUTION VERSION </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>THIRD AMENDMENT </B></FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><B>TO AMENDED AND RESTATED DISBURSEMENT AGREEMENT </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">This THIRD AMENDMENT TO AMENDED
AND RESTATED DISBURSEMENT AGREEMENT, dated as of February&nbsp;29, 2007 (this &#147;<U>Amendment</U>&#148;), is among SCRUBGRASS GENERATING COMPANY, L.P., a Delaware limited partnership (&#147;<U>Scrubgrass</U>&#148;), BUZZARD POWER CORPORATION, a
Delaware corporation (&#147;<U>Buzzard</U>&#148;), DEUTSCHE BANK TRUST COMPANY AMERICAS (formerly known as Bankers Trust Company), as Disbursement Agent, DEUTSCHE BANK TRUST COMPANY AMERICAS (&#147;<U>Deutsche Bank</U>&#148;), as securities
intermediary (as defined in Section&nbsp;8-102(a)(14) of the UCC (as defined herein), in such capacity, the &#147;<U>Securities Intermediary</U>&#148;) and bank (as defined in Section&nbsp;9-102(a)(8) of the UCC (as defined herein), in such
capacity, the &#147;<U>Bank</U>&#148;), and CALYON NEW YORK BRANCH (as successor to Credit Lyonnais, New York Branch), as agent (the &#147;<U>Agent</U>&#148;) for certain Bank Parties referred to in the Amended and Restated Disbursement Agreement
(as defined below). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><U>RECITALS </U></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2">WHEREAS, Scrubgrass, as lessor, and Buzzard, as lessee, are parties to that certain Amended and Restated Lease Agreement, dated December&nbsp;22, 1995 (the &#147;<U>Lease</U>&#148;), pursuant to which, among other things, Scrubgrass leased
the Project (as defined in the Lease) to Buzzard and assigned certain related agreements to Buzzard; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, in connection with the
termination of the Lease by Scrubgrass and Buzzard pursuant to that certain Omnibus Agreement Regarding Termination of Lease, dated as of February, 2007 (the &#147;<U>Omnibus Agreement</U>&#148;), between Scrubgrass and Buzzard, Scrubgrass and
Buzzard have agreed to enter into this Agreement for the purpose of amending the Amended and Restated Disbursement and Security Agreement, dated as of December&nbsp;22, 1995 (as amended by the First Amendment to the Amended and Restated Disbursement
and Security Agreement, dated as of October&nbsp;9, 1998, and Amendment No.&nbsp;2 to Disbursement Agreement, dated as of December&nbsp;11, 2006, the &#147;<U>Amended and Restated Disbursement Agreement</U>&#148;) in the manner set forth herein; and
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">WHEREAS, pursuant to Amendment No.&nbsp;7, dated as of November&nbsp;30, 2007 (&#147;<U>Amendment No.&nbsp;7</U>&#148;), to the
Reimbursement and Loan Agreement (as defined in the Omnibus Agreement), the Agent and the other banks party thereto have agreed to the transactions set forth in this Amendment upon satisfaction of the terms and conditions set forth in Amendment
No.&nbsp;7; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties
hereto agree as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1. <U>Definitions</U>. Capitalized terms used herein and not defined herein shall have the meanings given to such
terms in the Amended and Restated Disbursement Agreement. To the extent a capitalized term is created herein or its meaning or definition is amended herein, such term is used herein as so defined, including as amended. </FONT></P> <P
STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">1 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2. <U>Accounts.</U> </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(a)(i) On or before the date hereof, the Financial Institution shall establish an account of Scrubgrass titled &#147;Scrubgrass Generating Company, L.P., Operating Account, Deutsche Bank Trust Company Americas as
Disbursement Agent, as Secured Party&#148; with account number 63382 (the &#147;<U>Scrubgrass Operating Account</U>&#148;), and (ii)&nbsp;on the date hereof, the Financial Institution shall transfer any cash or Permitted Investments in the account
of Buzzard currently referred to as the &#147;Operating Account&#148; in the Amended and Restated Disbursement Agreement, account number MU-BV998, to the Scrubgrass Operating Account and shall thereafter close such account of Buzzard. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b)(i) On or before the date hereof, the Financial Institution shall establish an account of Scrubgrass titled &#147;Scrubgrass Generating Company, L.P.,
Maintenance Reserve Account, Deutsche Bank Trust Company Americas as Disbursement Agent, as Secured Party&#148; with account number 63383 (the &#147;<U>Scrubgrass Maintenance Reserve Account</U>&#148;), and (ii)&nbsp;on the date hereof, the
Financial Institution shall transfer any cash or Permitted Investments in the account of Buzzard currently referred to as the &#147;Maintenance Reserve Account&#148; in the Amended and Restated Disbursement Agreement, account number MU-BV996, to the
Scrubgrass Maintenance Reserve Account and shall thereafter close such account of Buzzard. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c)(i) On or before the date hereof, the
Financial Institution shall establish an account of Scrubgrass titled &#147;Scrubgrass Generating Company, L.P., Available Cash Flow Account, Deutsche Bank Trust Company Americas as Disbursement Agent, as Secured Party&#148; with account number
63384 (the &#147;<U>Scrubgrass Available Cash Flow Account</U>&#148;), and (ii)&nbsp;on the date hereof, the Financial Institution shall transfer any cash or Permitted Investments in the account of Buzzard currently referred to as the
&#147;Available Cash Flow Account&#148; in the Amended and Restated Disbursement Agreement, account number MU-BV997, to the Scrubgrass Available Cash Flow Account and shall thereafter close such account of Buzzard. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(d) On the date hereof, any cash or Permitted Investments in the account of Buzzard currently referred to as the &#147;Lessee Environmental Liability
Reserve Account&#148; in the Amended and Restated Disbursement Agreement, account number MU-FF419 shall be transferred to the Scrubgrass Operating Account and such account of Buzzard shall thereafter be closed. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(e) On the date hereof, the Financial Institution shall transfer any cash or Permitted Investments in the Rent Suspense Account to the Scrubgrass
Operating Account and shall thereafter close the Rent Suspense Account. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(f) From and after the date hereof, the Capital Expenditure Fund
shall be deemed to be solely the account of, and for the benefit of, Scrubgrass. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3. <U>Amendments</U>. The following amendments to the
Amended and Restated Disbursement Agreement shall take effect on the date hereof: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(a) Buzzard hereby withdraws, and Scrubgrass, the Agent
and the Financial Institution hereby agree that Buzzard shall be withdrawn, as a party to the Amended and Restated Disbursement Agreement. The parties hereto hereby agree that, from and after the </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">2 </FONT></P>


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<FONT FACE="Times New Roman" SIZE="2">consummation of such withdrawal, Buzzard shall no longer have any rights or obligations under the Amended and Restated Disbursement Agreement and any
provisions of the Amended and Restated Disbursement Agreement that are applicable to Buzzard shall no longer have any force or effect in respect of Buzzard to the extent of such application. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(b) Scrubgrass hereby terminates its appointment of Deutsche Bank, acting as the Disbursement Agent, as its agent and withdraws as a principal to such
agency. Deutsche Bank and the Agent hereby acknowledges and agree that Deutsche Bank is no longer acting as agent for Scrubgrass. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(c) All
references in the Amended and Restated Disbursement Agreement to, and all provisions applicable to, the &#147;Lessee,&#148; the &#147;Amended and Restated Lease,&#148; the &#147;Amended and Restated Lessee Working Capital Loan Agreement,&#148; the
&#147;Lessee Accounts,&#148; the &#147;Rent Suspense Account,&#148; &#147;Basic Rent (Equity),&#148; the &#147;Lessee Environmental Liability Reserve Account,&#148; any &#147;Lessee Release Notice,&#148; any &#147;Lessor Post-Default Disbursement
Certificate,&#148; any &#147;Capital Expenditure Fund Deposit Certificate,&#148; any &#147;Enhancement Consent Certificate of Lessee,&#148; any &#147;Lessee Collateral,&#148; any &#147;Lessor Default Notice,&#148; and the &#147;Lessee Account
Collateral&#148; shall be deemed deleted therefrom (including the Exhibits and Schedules thereof) and shall no longer have any force or effect. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman"
SIZE="2">(d) The term &#147;Operating Account&#148; shall mean the Scrubgrass Operating Account. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(e) The term &#147;Maintenance Reserve
Account&#148; shall mean the Scrubgrass Maintenance Reserve Account. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(f) The term &#147;Available Cash Flow Account&#148; shall mean the
Scrubgrass Available Cash Flow Account. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(g) The term &#147;Financial Institution&#148; shall mean Deutsche Bank in its capacities as
Disbursement Agent, Bank and Securities Intermediary. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(h) The term &#147;Lessor Accounts&#148; shall mean, collectively,
(i)&nbsp;&#147;Lessor Accounts&#148; as defined in the Amended and Restated Disbursement Agreement, and (ii)&nbsp;the Scrubgrass Operating Account, the Scrubgrass Maintenance Reserve Account and the Scrubgrass Available Cash Flow Account, including,
in the case of each of the accounts described in the foregoing clauses (i)&nbsp;and (ii), any such account as it may be renamed or renumbered, or any successor account to any such account that may be established, in each case with the consent of the
Disbursement Agent and the Agent, and otherwise in accordance with the Amended and Restated Disbursement Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(i) The term
&#147;Accounts&#148; shall mean the &#147;Lessor Accounts&#148;. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(j) The term &#147;UCC&#148; means the Uniform Commercial Code as in
effect from time to time in the State of New York; <U>provided</U>, that in the event that, by reason of mandatory provisions of law, any or all of the perfection or priority of, or remedies with respect to, any Account Collateral is governed by the
Uniform Commercial Code as enacted and in effect in a jurisdiction other than the State of New York, the term &#147;UCC&#148; shall mean the Uniform Commercial Code as enacted and in effect in such other jurisdiction solely for purposes of the
provisions hereof relating to such perfection, priority or remedies. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">3 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(k) Section&nbsp;3.01 is hereby deleted in its entirety and the words &#147;(<I>Intentionally
omitted</I>)&#148; are inserted in place thereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(l) Section&nbsp;3.02 is hereby deleted in its entirety and replaced with the following:
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">&#147;SECTION 3.02. <U>Assignment by Lessor</U>. To secure the timely payment of the Obligations, Scrubgrass does hereby
assign, transfer, pledge and grant to Agent, on behalf of the Bank Parties, a security interest in all of Lessor&#146;s right, title and interest to, in and under the following, whether now owned or hereafter acquired and whether now existing or
hereafter coming into existence: (i)&nbsp;all proceeds of the New Term Loan, Working Capital Loans, Debt Service Loans and all revenues, cash, insurance proceeds, condemnation proceeds and other monies derived from Lessor&#146;s interest in and
operation of the Project, (ii)&nbsp;each of the Accounts, including all monies and investment securities held in the Accounts and all other funds held by the Financial Institution under this Disbursement Agreement and (iii)&nbsp;the proceeds of all
the foregoing (all the collateral described in clauses (i)&nbsp;through (iii)&nbsp;above being herein collectively called the &#147;<U>Lessor Account Collateral</U>&#148;). </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(m) Section&nbsp;3.03 is hereby deleted in its entirety and the words &#147;(<I>Intentionally omitted</I>)&#148; are inserted in place thereof.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(n) Section&nbsp;5.01 is hereby amended as follows: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:13%"><FONT
FACE="Times New Roman" SIZE="2">(i) The words &#147;During the period commencing on the Effective Date and ending on the last day of the term of the Amended and Restated Lease&#148; in the first sentence thereof are hereby replaced with the words
&#147;Commencing from the Effective Date&#148;. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(ii) The word &#147;Lessee&#148; in the first sentence thereof is hereby replaced with
the word &#147;Lessor&#148;. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(iii) Clause (iii)&nbsp;thereof is hereby deleted in its entirety and clause (iv)&nbsp;thereof is renumbered
clause (iii). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(o) Section&nbsp;5.02 is hereby amended as follows: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(i) In subsection (a)(X), clause <U>Third</U>, the word &#147;Lessee&#148; is hereby replaced with the word &#147;Lessor&#148; and the words
&#147;Lessee&#146;s designee&#148; are hereby replaced with the words &#147;Lessor&#146;s designee&#148;. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(ii) Clauses <U>First</U>
through <U>Seventeenth</U> of subsection (a)(Y) are hereby deleted in their entirety and replaced by the following clauses <U>First</U> through <U>Fifteenth</U>: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:13%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">&#147;<U>First</U>, (i)&nbsp;to payment of the appropriate amounts described in Part X above which are due and unpaid as of such Payment
Date, as described </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">4 </FONT></P>


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<FONT FACE="Times New Roman" SIZE="2">in Schedule 1 to such Disbursement Certificate, (ii)&nbsp;to retention in the Operating Account of any other amounts described in Part X above which are
accrued and unpaid (but not due) as of such Payment Date, as described in Schedule 1 to such Disbursement Certificate and (iii)&nbsp;to retention in the Operating Account, up to $25,000 for application by the Disbursement Agent, upon written
direction of Lessor, to the payment of costs and expenses relating to the Project; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:13%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><U>Second</U>, to the Amortization
Account, the installment due on such Payment Date in respect of the redemption of Bonds as set forth in Schedule 5.02 of the Amended and Restated Reimbursement Agreement, a copy of which is attached as Schedule II, as described in Schedule 1 to such
Disbursement Certificate; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:13%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><U>Third</U>, to Agent, any scheduled installments of principal due on any Loan (other than the
Debt Service Loans and Working Capital Loans) on such Payment Date as set forth in Schedule II hereto, as described in Schedule 1 to such Disbursement Certificate; </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:13%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><U>Fourth</U>, to Agent, any other amounts due and payable to the Bond LOC Issuer, the Contract LOC Issuer, the Agent or any Bank under
any Transaction Document, as described in Schedule 1 to such Disbursement Certificate; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:13%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><U>Fifth,</U> to the Remarketing
Agent, remarketing fees, if any, in respect of the Bonds; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:13%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><U>Sixth</U>, (a)&nbsp;to the payment of any Debt Service
(Tranche A) Loan, if necessary, to reduce such loan balance to the Required Maximum Debt Service (Tranche A) Loan Amount for such Payment Date, and (b)&nbsp;then to the payment of any outstanding Debt Service (Tranche B) Loan; <U>provided</U>,
<U>however</U>, that in the event that the Required Maximum Debt Service (Tranche A) Loan Amount has been reduced to zero (0)&nbsp;under clauses (a)(ii) or (a)(iii) of the definition thereof, then amounts under this clause <U>Sixth</U> shall be
applied to the payment of outstanding Debt Service (Tranche A) Loans and outstanding Debt Service (Tranche B) Loans, pro rata based on the proportions that the principal amount of Debt Service (Tranche A) Loans and principal amount of Debt Service
(Tranche B) Loans, respectively, bear to the aggregate outstanding principal amount of Debt Service (Tranche A) Loans and Debt Service (Tranche B) Loans; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:13%; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2"><U>Seventh</U>, in the following order of priority: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:13%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(i) to the Maintenance Reserve
Account, the amount required or permitted by Section&nbsp;13.01(e) of the Amended and Restated Reimbursement Agreement to be deposited in the Maintenance Reserve Account, as described in Schedule 1 to such Disbursement Certificate, and then
</FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">5 </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; margin-left:13%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(ii) if required by Section&nbsp;13.01(i) of the Amended and Restated Reimbursement
Agreement, 100% of the balance remaining in the Operating Account shall be deposited into the Hedge Account; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:13%; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2"><U>Eighth</U>, if the restrictions set forth in Section&nbsp;11.08 of the Amended and Restated Reimbursement Agreement shall apply, then 100% of the balance remaining in the Operating Account shall be deposited into the Available Cash Flow
Account; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:13%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><U>Ninth</U>, to the Bond Issuer, the payment of Bond Issuer Fees then due, as described in Schedule 1 to such
Disbursement Certificate; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:13%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><U>Tenth</U>, to Lessor, an amount equal to the Level Tenth Payment Amount applicable to such
Payment Date and as described in Schedule 1 to such Disbursement Certificate, unless the restrictions set forth in Section&nbsp;11.08 of the Amended and Restated Reimbursement Agreement shall apply, then such Level Tenth Payment Amount shall be
deposited in the Available Cash Flow Account, in either case as set forth in paragraph 4 of such Disbursement Certificate; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:13%; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2"><U>Eleventh</U>, to the Project Manager, amounts due and owing to Project Manager under the Project Management Agreement (each as defined in the Amended and Restated Reimbursement and Loan Agreement), as described in Schedule 1 to such
Disbursement Certificate; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:13%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><U>Twelfth</U>, to the Operator, the amount of Subordinated Operating Expenses due and owing to
the Operator, as described in Schedule 1 to such Disbursement Certificate; </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:13%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><U>Thirteenth</U>, to the holders of Junior
Debt, if any, listed in Schedule VI hereto, accrued interest and any installment of principal on Junior Debt due on or prior to such Payment Date as set forth in Schedule VI hereto (as such Schedule may be established or amended from time to time
pursuant to written instructions from Lessor consistent with the Amended and Restated Reimbursement Agreement) and described in Schedule 1 to such Disbursement Certificate; </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; margin-left:13%; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><U>Fourteenth</U>, for deposit in the Capital Expenditure Fund, the amount set forth in Schedule 1 to such Disbursement Certificate for
application against Capital Expenditures in accordance with Article XIX of this Disbursement Agreement; and </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:13%; text-indent:4%"><FONT FACE="Times New Roman"
SIZE="2"><U>Fifteenth</U>, the balance remaining in the Operating Account to payment to Lessor of the amounts set forth in Schedule 1 to such Disbursement Certificate.&#148; </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT
SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">6 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman" SIZE="2">(iii) Section&nbsp;5.02(a) is hereby amended by adding the following sentence to the end thereof:
</FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">&#147;For purposes of this Section&nbsp;5.02(a), &#147;Level Tenth Payment Amount&#148; means, in respect of any Payment
Date, the amount identified as the &#147;Level Tenth Payment Amount&#148; corresponding to such Payment Date in Schedule IV hereof.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT FACE="Times New Roman"
SIZE="2">(iv) Section&nbsp;5.02(b) is hereby deleted in its entirety and the words &#147;(<I>Intentionally omitted</I>)&#148; are inserted in place thereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:13%"><FONT
FACE="Times New Roman" SIZE="2">(v) Section&nbsp;5.02(d) is hereby amended by deleting the words &#147;and 5.02(a)(Y) clauses &#145;<U>Fifth</U>&#146;, &#145;<U>Seventh</U>&#146;, &#145;<U>Ninth</U>&#146;, and &#145;<U>Eleventh</U>&#146; through
&#145;<U>Seventeenth</U>&#146; (without any application as provided in any other clause of Section&nbsp;5.02)&#148; and inserting in place thereof the words &#147;and 5.02(a)(Y) clauses &#145;<U>Fifth</U>&#146;, &#145;<U>Seventh</U>&#146; and
&#145;<U>Ninth</U>&#146; through &#145;<U>Fifteenth</U>&#146; (without any application as provided in any other clause of Section&nbsp;5.02)&#148;. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman"
SIZE="2">(p) Section&nbsp;6.01 is hereby deleted in its entirety and replaced with the following: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">&#147;SECTION 6.01.
<U>Deposits into the Available Cash Flow Account</U>. The Disbursement Agent shall deposit into the Available Cash Flow Account all amounts so directed pursuant to a Disbursement Certificate delivered pursuant to Section&nbsp;5.02(a)(Y), clause
&#147;<U>Eighth</U>&#148;.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(q) Section&nbsp;6.02 is hereby amended by: (i)&nbsp;deleting from the heading thereof the words
&#147;the Rent Suspense Account and&#148;; (ii)&nbsp;deleting from clause (a)&nbsp;thereof the words &#147;the Rent Suspense Account and&#148;; and (iii)&nbsp;by deleting from clause (b)&nbsp;thereof the words &#147;cash available in the Rent
Suspense Account to the Lessor and&#148; . </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(r) The heading to Article XI is hereby deleted in its entirety and replaced with the heading,
&#147;AGENT DEFAULT NOTICES; DISBURSEMENT BLOCK CERTIFICATES; SECURED PARTY ORDERS&#148;. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(s) Section&nbsp;11.03 is hereby deleted in its
entirety and replaced with the following: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">&#147;SECTION 11.03. <U>Control over the Accounts</U>. Notwithstanding anything
else to the contrary in this Disbursement Agreement, the Financial Institution agrees that if at any time it shall receive from the Agent (A)&nbsp;any &#147;entitlement order&#148; (as defined in Section&nbsp;8-102 of the UCC) and/or (B)&nbsp;any
instruction directing disposition of funds (such entitlement order or instruction, a &#147;<U>Secured Party Order</U>&#148;) with respect to any Account, the Financial Institution shall comply with such Secured Party Order without further consent by
Scrubgrass or any other person. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(t) Section&nbsp;14.01(d) is hereby amended to delete the word &#147;Lessee&#148; in the parenthetical and
replace it with the word &#147;Lessor&#148;. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">7 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(u) Section&nbsp;16.01 is hereby amended to delete the words &#147;and Lessee&#148; in the penultimate
sentence thereof, and to replace the word &#147;Lessee&#148; in each other place it appears with the word &#147;Lessor&#148;. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(v)
Section&nbsp;16.03(b) and Section&nbsp;16.03(c) are hereby amended to delete the term &#147;Majority Banks&#148; in each place it appears and replace it with &#147;Agent&#148;. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(w) Section&nbsp;16.04 is hereby amended (i)&nbsp;to delete &#147;and Lessor Release Notice&#148; in the first sentence thereof and (ii)&nbsp;by
replacing the word &#147;<U>Seventeenth</U>&#148; in the third sentence thereof with the word &#147;<U>Fifteenth</U>&#148;. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(x)
Section&nbsp;16.08 is amended by adding the following sentence to the end thereof: </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; margin-left:4%; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">&#147;Regardless of any provision in any
other agreement, for purposes of the UCC, the State of New York shall be the jurisdiction of the Financial Institution.&#148; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(y)
Section&nbsp;16.13 is hereby deleted in its entirety and the words &#147;(<I>Intentionally omitted</I>)&#148; are inserted in place thereof </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman"
SIZE="2">(z) Section&nbsp;17.01(b) is hereby deleted in its entirety and the words &#147;(<I>Intentionally omitted</I>)&#148; are inserted in place thereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(aa) Article XVIII is hereby deleted in its entirety and the words &#147;(<I>Intentionally omitted</I>)&#148; are inserted in place thereof. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(bb) Section&nbsp;19.01 is hereby amended by replacing the words &#147;and/or Lessee make available&#148; with the words &#147;makes available&#148; and
by replacing the word &#147;<U>Sixteenth</U>&#148; with the word &#147;<U>Fourteenth</U>&#148;. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(cc) Section&nbsp;19.02 is hereby amended
by replacing the word &#147;<U>Seventeenth</U>&#148; with the word &#147;<U>Fifteenth</U>&#148;. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(dd) Section&nbsp;19.03 is hereby amended
by deleting the words &#147;Lessee and&#148; from the heading and the text thereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(ee) Section&nbsp;20.02 is hereby amended by deleting
the words &#147;clauses &#145;<U>Eighth</U>&#146; and &#145;<U>Eleventh</U>&#146; through &#145;<U>Seventeenth</U>&#146; of Section&nbsp;5.02(a)(Y)&#148; and the words &#147;clauses &#145;<U>Ninth</U>&#146; through &#145;<U>Fifteenth</U>&#146; of
Section&nbsp;5.02(a)(Y)&#148; are inserted in place thereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(ff) Exhibit 5.02(a)(1) is hereby amended by deleting the words &#147;clauses
&#145;<U>Eighth</U>&#146; and &#145;<U>Eleventh</U>&#146; through &#145;<U>Seventeenth</U>&#146; of Section&nbsp;5.02(a)(Y)&#148; in the bracketed paragraph relating to the Hedge Account and the words &#147;clauses &#145;<U>Ninth</U>&#146; through
&#145;<U>Fifteenth</U>&#146; of Section&nbsp;5.02(a)(Y)&#148; are inserted in place thereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(gg) Each of the following Exhibits is hereby
deleted in its entirety: Exhibit 8.04(b), Exhibit 11.02(a)(1), Exhibit 11.02(a)(2), Exhibit 18.02(b) and Exhibit 18.02(c). </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">8 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(hh) Schedule IV is hereby amended by changing the title thereof to &#147;Level Tenth Payment Amounts and
Payment Dates&#148;, and by changing the heading of the third column from &#147;Basic Rent (Equity)&#148; to &#147;Level Tenth Payment Amount&#148;. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT
FACE="Times New Roman" SIZE="2">4. <U>Representations of the Financial Institution</U>. The Financial Institution hereby represents and warrants that the Accounts are &#147;securities accounts&#148; as defined in the UCC and that Scrubgrass is the
sole entitlement holder in respect of such Accounts. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5. <U>Severability</U>. Any provision of this Amendment 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. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6. <U>Effectiveness</U>. The Amended and Restated Disbursement Agreement shall remain in full force and effect after giving effect to the transactions
under this Amendment. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">7. <U>Counterparts</U>. This Amendment may be executed in two or more counterparts, each of which will be deemed an
original, but all of which together will constitute one and the same instrument. Any facsimile transmission of any party&#146;s signature to any counterpart shall be deemed an original signature and shall bind such party. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8. <U>Governing Law</U>. This Amendment shall be governed by and construed under the laws of the State of New York without reference to the conflict of
laws provisions thereof. Regardless of any provision in any other agreement, for purposes of the UCC, the State of New York shall be the jurisdiction of the Financial Institution. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"
ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">[<I>The remainder of this page is intentionally left blank</I>.] </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">9 </FONT></P>


<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">IN WITNESS WHEREOF, the parties have executed this Third Amendment to Amended and Restated Disbursement
Agreement as of the date first set forth above. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="7%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="92%"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">SCRUBGRASS GENERATING COMPANY, L.P.,</FONT></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">a Delaware limited partnership</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Thomas J. Bonner</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Thomas J. Bonner</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">President</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">BUZZARD POWER CORPORATION,</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="2">a Delaware
corporation</FONT></P></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Dennis Haines</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Dennis Haines</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Vice President</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">CALYON NEW YORK BRANCH,</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="2">as
Agent</FONT></P></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Robert G. Colvin</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Robert G. Colvin</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Director</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Ted Vandermel</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Ted Vandermel</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Director</FONT></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">(Third Amendment to Amended and Restated Disbursement Agreement) </FONT></P>

<p Style='page-break-before:always'>
<HR  SIZE="3" COLOR="#999999" WIDTH="100%" ALIGN="CENTER">

<DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="7%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="92%"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">DEUTSCHE BANK TRUST COMPANY AMERICAS,</FONT></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"><FONT FACE="Times New Roman" SIZE="2">as Disbursement Agent</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Wuendith Encalada</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Wuendith Encalada</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Vice President</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Safet Kalabovic</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Safet Kalabovic</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Vice President</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">DEUTSCHE BANK TRUST COMPANY AMERICAS,</FONT></P> <P STYLE="margin-top:0px;margin-bottom:1px"><FONT FACE="Times New Roman" SIZE="2">as
Securities Intermediary</FONT></P></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Wuendith Encalada</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Wuendith Encalada</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Vice President</FONT></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Safet Kalabovic</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Name:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Safet Kalabovic</FONT></TD></TR>
<TR>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Title:</FONT></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Vice President</FONT></TD></TR>
</TABLE></DIV> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">(Third Amendment Amended and Restated Disbursement Agreement) </FONT></P>
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</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>5
<FILENAME>dex991.htm
<DESCRIPTION>LOAN TERMINATION AGREEMENT
<TEXT>
<HTML><HEAD>
<TITLE>Loan Termination Agreement</TITLE>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 99.1 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT
FACE="Times New Roman" SIZE="2"><B>LOAN TERMINATION AGREEMENT </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">THIS LOAN TERMINATION AGREEMENT is made as of November&nbsp;30, 2007
(the &#147;Agreement&#148;), by and among EPC Corporation, a Delaware corporation (the &#147;Borrower&#148;), Environmental Power Corporation, a Delaware corporation and Parent of Borrower (the &#147;Parent&#148;), and Crystal Creek Coalpower
Funding, LLC, a Delaware limited liability company (the &#147;Lender&#148;). </FONT></P> <P STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><U>RECITALS </U></FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">A. Lender, Borrower and/or Parent are parties to the following agreements (the &#147;Loan Agreements&#148;): </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(i) Note Purchase Agreement, dated September&nbsp;4, 2003, between Borrower and Lender (the &#147;Note Purchase Agreement&#148;; all capitalized terms
used herein but not defined herein shall have the respective meanings giving to them in the Note Purchase Agreement); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(ii) 20.0% Senior
Secured Note due December&nbsp;31, 2012 in the original principal amount of $3.7 million, made by Borrower in favor of Lender (the &#147;Note&#148;); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(iii) Pledge Agreement, dated September&nbsp;4, 2003, between Parent and Lender (the &#147;Pledge Agreement&#148;); </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman"
SIZE="2">(iv) Securities Deposit Agreement, dated September&nbsp;4, 2003, among Borrower, Lender and the Security Deposit Agent and Securities Intermediary named therein; </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">(v) Management Agreement, dated September&nbsp;4, 2003, between Parent and Borrower; and </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">(vi) Tax Sharing
Agreement, dated September&nbsp;4, 2003, between Parent and Borrower. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">B. Buzzard Power Corporation, a Delaware corporation and wholly
owned subsidiary of Borrower (&#147;Buzzard&#148;), and Scrubgrass Generating Company, L.P., a Delaware limited partnership (&#147;SGC&#148;), are parties to the Amended and Restated Lease Agreement, dated as of December&nbsp;22, 1995 (as amended,
restate and supplement, the &#147;Lease Agreement&#148;). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">C. SGC alleges that Buzzard is in default (the &#147;Specified Lease
Default&#148;) under the Lease Agreement due to the failure to pay Basic Rent (Equity) (as defined in the Lease Agreement). </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">D. Lender
alleges that Borrower is in default under the Loan Agreements due to the Specified Lease Default and the failure to pay interest in accordance with Section&nbsp;11(b) of the Note Purchase Agreement (the &#147;Specified Loan Defaults&#148;).
</FONT></P>

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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">E. Buzzard and SGC have entered into the Omnibus Agreement Regarding Termination of Lease, dated as of
the date hereof (the &#147;Omnibus Agreement&#148;), relating to, among other things, the termination of the Lease Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">F. Pursuant
to the Note Purchase Agreement, Borrower needs to obtain the consent of Lender in order for Buzzard to enter into the Omnibus Agreement and consummate the transactions contemplated thereby. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">G. In connection with the transactions contemplated by the Omnibus Agreement, Borrower, Parent and Lender desire to terminate the Loan Agreements as more
specifically set forth herein. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">H. These recitals are an integral part of this Agreement. </FONT></P> <P
STYLE="margin-top:24px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2"><U>AGREEMENT </U></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">1. <U>Consent</U>. Lender
hereby consents to Borrower entering into the Omnibus Agreement, in the form and substance as previously provided by Borrower to Lender, and consents to the transactions contemplated by the Omnibus Agreement in the manner set forth therein.
</FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">2. <U>Termination of Loan Agreements</U>. Borrower, Parent and Lender each hereby agree that the Loan Agreements shall terminate upon the
date (the &#147;Termination Date&#148;) when (i)&nbsp;each condition precedent under Article VII of the Omnibus Agreement has been satisfied or waived, (ii)&nbsp;each transaction, as set forth in Section&nbsp;8.2 of the Omnibus Agreement, has
occurred or been waived, and (iii)&nbsp;the Closing (as defined in the Omnibus Agreement) has occurred. Upon termination of the Loan Agreements on the Termination Date as provided herein, none of the parties thereto shall have any further obligation
to any of the other parties thereunder. The termination of the Loan Agreements, and the mutual releases set forth in Section&nbsp;3 hereof, shall represent full and complete satisfaction of all obligations of Borrower, Parent and Lender to each
other under each of the Loan Agreements to which they are a party, including, without limitation, all amounts owed by Borrower to Lender under the Note and any obligation to extend financing by Lender to Borrower. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">3. <U>Release and Forbearance</U>. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">3.1
<U>Release of Borrower and Parent by Lender</U>. Effective on the Termination Date, Lender, in consideration of the mutual promises set forth in this Agreement, for itself, its affiliated corporations and entities of any nature, and any party which
may claim through Lender, including, but not limited to, its successors and assigns, does hereby irrevocably and unconditionally release and forever discharge Borrower and Parent and their affiliated corporations and entities of any nature, each of
their agents, directors, officers, employees, representatives, attorneys, predecessors, successors and assigns, and all persons acting by, through, under or in concert with any of them of and from any and all claims, assertion of claims, expenses,
debts, demands, actions, causes of action, suits, liabilities, and/or expenses (including attorneys&#146; fees) of any nature whatsoever, whether or not now known, suspected or claimed, which they ever had, now have, or hereafter acquire, both at
law and in equity, arising out of any </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">fact or matter in any way existing as of the Termination Date, including, without limiting the generality of the foregoing, any and all claims arising out of
or related to any of the Loan Agreements, any and all amounts owed by Borrower to Lender thereunder, and any claims for breach thereof by Borrower or Parent. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">3.2 <U>Release of Lender by Borrower and Parent</U>. Effective on the Termination Date, each of Borrower and Parent, in consideration of the mutual promises set forth in this Agreement, for itself, its affiliated
corporations and entities of any nature, and any party which may claim through Borrower or Parent, including, but not limited to, their respective successors and assigns, does hereby irrevocably and unconditionally release and forever discharge
Lender and its affiliated corporations and entities of any nature, each of their agents, directors, officers, employees, representatives, attorneys, predecessors, successors and assigns, and all persons acting by, through, under or in concert with
any of them of and from any and all claims, assertion of claims, expenses, debts, demands, actions, causes of action, suits, liabilities, and/or expenses (including attorneys&#146; fees) of any nature whatsoever, whether or not now known, suspected
or claimed, which they ever had, now have, or hereafter acquire, both at law and in equity, arising out of any fact or matter in any way existing as of the date of this Agreement, including without limiting the generality of the foregoing, any and
all claims arising out of or related to any of the Loan Agreements, and any claims for breach thereof by Lender. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">3.3 <U>Effect on this
Agreement</U>. The foregoing releases shall not apply to or affect the respective obligations of the parties under the Loan Agreements unless and until the Termination Date occurs, and shall not apply to or affect the respective obligations of the
parties under this Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">4. <U>Forbearance from Litigation</U>. Borrower and Parent shall continue to perform fully all of their
respective obligations under the Loan Agreements for the period between the date of this Agreement and the Termination Date, including, without limitation, its payment obligations thereunder, including obligations that have accrued and not been
paid; provided that, Lender hereby agrees to forbear from exercising its rights and remedies under the Loan Agreements with respect to the Specified Loan Defaults due to a shortfall in Project Revenues. Such forbearance shall terminate on the date
which shall be the earlier to occur of (i)&nbsp;the occurrence of an Event of Default under the Note Purchase Agreement or other Loan Agreements other than the Specified Loan Defaults and (ii)&nbsp;termination of any forbearance by SGC under the
Omnibus Agreement (such period of forbearance, the &#147;Forbearance Period&#148;). During the Forbearance Period, all principal and interest that is not paid will continue to accrue, together with interest on any such overdue amounts at the Default
Rate. After the Forbearance Period, if the assignment of the Lease Agreement does not occur in accordance with the terms of the Omnibus Agreement, Lender shall be entitled to exercise all rights and remedies with respect to the Specified Loan
Defaults as if such forbearance had never been granted, and Borrower and Parent retain all rights and defenses with respect thereto. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">5.
<U>Delivery of Stock Certificate and Note</U>. On the Termination Date, Lender shall deliver (a)&nbsp;to Parent, certificate no. 1, representing 1,000 shares of the common stock, $0.01 par value per share, of Borrower, which is being held by Lender
pursuant to the terms of the Pledge Agreement, and (b)&nbsp;to Borrower, the Note, which shall be cancelled by Borrower upon receipt thereof. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">- 3 - </FONT></P>


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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">6. <U>Representations and Warranties of Borrower and Parent</U>. Each of Borrower and Parent hereby
represents and warrants to Lender: </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">6.1 <U>Authority, Execution and Enforceability</U>. Each of Borrower and Parent has full power and
authority to execute, deliver and perform this Agreement. All necessary action, corporate or otherwise, has been taken by Borrower and Parent to authorize the execution, delivery and performance of this Agreement. This Agreement constitutes a valid,
binding and enforceable obligation of Borrower and Parent, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting generally the enforcement of creditors&#146;
rights and subject to a court&#146;s discretionary authority with respect to the granting of a decree ordering specific performance or other equitable remedies. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">6.2 <U>No Violation</U>. The execution and delivery of this Agreement by Borrower and Parent will not violate or breach in any material respect or constitute a material default under: (i)&nbsp;any federal, state or
local laws, rules or regulations, or any judgments, decrees, injunctions or order of any regulatory authority to which Borrower or Parent is subject; (ii)&nbsp;the Certificate of Incorporation or By-laws of Borrower or Parent; or (iii)&nbsp;any
mortgage, lien, lease, agreement, contract, instrument, order, arbitration award, judgment, or decree to which Borrower or Parent is a party or by which Borrower or Parent is bound, or to which any of their respective properties or assets is
subject. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">6.3 <U>Consents</U>. No approval or consent is required to be obtained by or on behalf of Borrower or Parent in connection with
the execution, delivery or performance of or the consummation of the transactions contemplated by this Agreement. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">6.4 <U>Loan
Agreements</U>. As of the date hereof, the outstanding principal amount under the Note is $3,700,000 (exclusive of any capitalization of interest), and such amount is due without offset. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">6.5 <U>Omnibus Agreement</U>. Borrower has provided Lender with a true and complete copy of the Omnibus Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">7. <U>Representations and Warranties of Lender</U>. Lender hereby represents and warrants to Borrower and Parent as follows: </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.1 <U>Authority, Execution and Enforceability</U>. Lender has full power and authority to execute, deliver and perform this Agreement. All necessary
action, limited liability company or otherwise, has been taken by Lender to authorize the execution, delivery and performance of this Agreement. This Agreement constitutes a valid, binding and enforceable obligation of Lender, enforceable in
accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting generally the enforcement of creditors&#146; rights and subject to a court&#146;s discretionary authority with respect to
the granting of a decree ordering specific performance or other equitable remedies. </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.2 <U>No Violation</U>. The execution and delivery of this Agreement by Lender will not violate or
breach in any material respect or constitute a material default under: (i)&nbsp;any federal, state or local laws, rules or regulations, or any judgments, decrees, injunctions or order of any regulatory authority to which Lender is subject;
(ii)&nbsp;the Certificate of Formation or limited liability company operating agreement of Lender, or (iii)&nbsp;any mortgage, lien, lease, agreement, contract, instrument, order, arbitration award, judgment, or decree to which Lender is a party or
by which Lender is bound, or to which any of its properties or assets is subject. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">7.3 <U>Consents</U>. No approval or consent is required
to be obtained by or on behalf of Lender in connection with the execution, delivery or performance of or the consummation of the transactions contemplated by this Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2">8. <U>General Provisions</U>. </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">8.1
<U>Counterparts; Facsimile Signatures</U>. This Agreement may be executed in two or more counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument, and it shall not be a condition
to the effectiveness of this Agreement that each party shall have executed the same counterpart. This Agreement may be executed by facsimile or other electronic signatures. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">8.2 <U>Applicable Law, Jurisdiction and Venue</U>. This Agreement shall be governed by, interpreted under and enforced in accordance with the laws of the
State of New York, without regard to the principles of conflict of laws that would cause the application of the laws of any other jurisdiction. The parties consent and agree that all legal proceedings relating to the subject matter of this Agreement
shall be maintained in courts sitting within the State of New York, and the parties further consent and agree that jurisdiction and venue for such proceedings shall lie exclusively with such courts. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">8.3 <U>Successors and Assigns</U>. This Agreement shall be binding upon and inure to the benefit of the parties and their respective successors and
assigns. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">8.4 <U>Headings and Subheadings</U>. The various headings and subheadings in this Agreement are inserted for convenience only and
shall not affect the meaning or interpretation of this Agreement or any provision hereof. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">8.5 <U>Entire Agreement</U>. This Agreement
constitutes the complete and exclusive statement of the agreement between the parties as to the subject matter of this Agreement. This Agreement supersedes all proposals, whether oral or written, and all other communications between and among the
parties relating to the subject matter of this Agreement. No addition to or modification of any of the foregoing provisions shall be binding upon any party unless made in writing and signed by all parties to this Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT FACE="Times New Roman" SIZE="2">8.6 <U>No Other Amendments/Waivers</U>. Unless and until the Termination Date occurs, the Loan Agreements shall be unmodified and shall continue to be in
full force and effect in accordance with their terms. In addition, except as specifically provided herein, unless and until the Termination Date occurs, this Agreement shall not be deemed a waiver of any term or </FONT>
</P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;</FONT></P>
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<FONT FACE="Times New Roman" SIZE="2">condition of any of the Loan Agreements and shall not be deemed to prejudice any right or rights which Lender or Borrower may now have or may have in the
future under or in connection with any of the Loan Agreements or any of the instruments or agreements referred to therein, as the same may be amended from time to time. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px; text-indent:8%"><FONT
FACE="Times New Roman" SIZE="2">8.7 <U>Expenses</U>. Each of Borrower and Parent hereby reconfirms its respective obligations pursuant to the Note Purchase Agreement and the Pledge Agreement to pay and reimburse Lender, for its reasonable costs and
expenses (including, without limitation, reasonable fees of counsel); <U>provided</U> <U>that</U>, Lender shall bear its own costs and expenses associated with the preparation and negotiation of this Agreement. </FONT></P> <P
STYLE="margin-top:12px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">[Remainder of page intentionally left blank &#150; signature page follows] </FONT></P> <P STYLE="margin-top:0px;margin-bottom:0px"><FONT SIZE="1">&nbsp;
</FONT></P>
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 <P STYLE="margin-top:0px;margin-bottom:0px; text-indent:4%"><FONT FACE="Times New Roman" SIZE="2"><B>IN WITNESS WHEREOF</B>, the parties have executed this Loan Termination Agreement as of the date first
written above. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P><DIV ALIGN="right">
<TABLE CELLSPACING="0" CELLPADDING="0" WIDTH="40%" BORDER="0">

<TR>
<TD WIDTH="6%"></TD>
<TD VALIGN="bottom" WIDTH="1%"></TD>
<TD WIDTH="93%"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2"><B>BORROWER:</B></FONT></P></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">EPC CORPORATION</FONT></P></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Michael E. Thomas</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Michael E. Thomas</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">President</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2"><B>PARENT:</B></FONT></P></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">ENVIRONMENTAL POWER CORPORATION</FONT></P></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
<TR>
<TD VALIGN="top"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">By:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Michael E. Thomas</FONT></P></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Michael E. Thomas</FONT></TD></TR>
<TR>
<TD VALIGN="top"></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Senior Vice President, Chief Financial Officer and Treasurer</FONT></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2"><B>LENDER:</B></FONT></P></TD></TR>
<TR>
<TD HEIGHT="16" COLSPAN="3"></TD></TR>
<TR>
<TD VALIGN="top" COLSPAN="3"> <P STYLE="margin-left:1.00em; text-indent:-1.00em"><FONT FACE="Times New Roman" SIZE="2">CRYSTAL&nbsp;CREEK&nbsp;COALPOWER&nbsp;FUNDING,&nbsp;LLC</FONT></P></TD></TR>
<TR>
<TD HEIGHT="16"></TD>
<TD HEIGHT="16" COLSPAN="2"></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-top:0px;margin-bottom:1px;border-bottom:1px solid #000000"><FONT FACE="Times New Roman" SIZE="2">/s/ Daniel R. Revers</FONT></P></TD></TR>
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<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Daniel R. Revers</FONT></TD></TR>
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<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">President</FONT></TD></TR>
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="center"><FONT FACE="Times New Roman" SIZE="2">- 7 - </FONT></P>

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<DESCRIPTION>PRESS RELEASE
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 <P STYLE="margin-top:0px;margin-bottom:0px" ALIGN="right"><FONT FACE="Times New Roman" SIZE="2"><B>Exhibit 99.2 </B></FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2"><B>Environmental Power Completes Exit from Interest in Scrubgrass Generating Facility </B></FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">PORTSMOUTH, N.H., March&nbsp;3 /PRNewswire-FirstCall/
&#150; Environmental Power Corporation (Nasdaq: <U>EPG</U> - <U>News</U>), a leader in the renewable bioenergy industry, today announced that it has completed all transactions necessary to terminate the leasehold interest held by its subsidiary,
Buzzard Power Corporation (&#147;Buzzard&#148;), in the Scrubgrass generating facility located in Venango County, Pennsylvania (the &#147;Scrubgrass Facility&#148;), and the related financial obligations of Buzzard&#146;s immediate parent company,
EPC Corporation. The transactions, negotiations for which were previously authorized by Environmental Power&#146;s Board of Directors in May 2007, are consistent with the Company&#146;s stated strategy to focus its management attention and resources
on the business of Microgy, Inc., the Company&#146;s wholly owned subsidiary developing anaerobic digestion-based renewable energy projects. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">The closing
of the transactions occurred on February&nbsp;29, 2008, and, as expected and previously reported, had a combined transaction value to the Company of approximately $6.0 million for accounting purposes, including the cash payment to Buzzard of
$375,000 and the forgiveness of indebtedness of EPC Corporation. </FONT></P> <P STYLE="margin-top:12px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">&#147;We are pleased to have finally concluded this transaction and appreciate the
cooperation of all of the involved parties,&#148; said Rich Kessel, President and Chief Executive Officer of Environmental Power. &#147;Importantly, the conclusion of this transaction allows us to focus our attention exclusively on the pipeline of
projects under development within the Microgy business.&#148; </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">ABOUT ENVIRONMENTAL POWER CORPORATION </FONT></P> <P
STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">Environmental Power Corporation is a developer, owner and operator of renewable energy production facilities. Its principal operating subsidiary, Microgy, Inc., holds an
exclusive license in North America for the development and deployment of a proprietary anaerobic digestion technology for the extraction of methane gas from animal wastes for its use to generate energy. For more information visit the Company&#146;s
web site at <U>www.environmentalpower.com</U>. </FONT></P> <P STYLE="margin-top:18px;margin-bottom:0px"><FONT FACE="Times New Roman" SIZE="2">CAUTIONARY STATEMENT </FONT></P> <P STYLE="margin-top:6px;margin-bottom:0px"><FONT FACE="Times New Roman"
SIZE="2">The Private Securities Litigation Reform Act of 1995, referred to as the PSLRA, provides a &#147;safe harbor&#148; for forward-looking statements. Certain statements contained in this press release, such as statements concerning planned
manure-to-energy systems, our sales pipeline, our backlog, our projected sales and financial performance, statements containing the words &#147;may,&#148; &#147;assumes,&#148; &#147;forecasts,&#148; &#147;positions,&#148; &#147;predicts,&#148;
&#147;strategy,&#148; &#147;will,&#148; &#147;expects,&#148; &#147;estimates,&#148; &#147;anticipates,&#148; &#147;believes,&#148; &#147;projects,&#148; &#147;intends,&#148; &#147;plans,&#148; &#147;budgets,&#148; &#147;potential,&#148;
&#147;continue,&#148; &#147;targets&#148; &#147;proposed,&#148; and variations thereof, and other statements contained in this press release regarding matters that are not historical facts are forward-looking statements as such term is defined in
the PSLRA. Because such statements involve risks and uncertainties, actual results may differ materially from those expressed or implied by such forward-looking statements. Factors that could cause actual results to differ materially include, but
are not limited to: uncertainties involving development-stage companies; uncertainties regarding project financing, the lack of binding commitments and/or the need to negotiate and execute definitive agreements for the construction and financing of
projects, the sale of project output, the supply of substrate and other requirements and for other matters; financing and cash flow requirements and uncertainties; inexperience with the development of multi-digester projects; risks relating to
fluctuations in the price of commodity fuels like natural gas, and our inexperience with managing such risks; difficulties involved in developing and executing a business plan; difficulties and uncertainties regarding acquisitions; technological
uncertainties; including those relating to competing products and technologies; risks relating to managing and integrating acquired businesses; unpredictable developments; including plant outages and repair requirements; the difficulty of estimating
construction, development, repair and maintenance costs and timeframes; the uncertainties involved in estimating insurance and implied warranty recoveries, if any; the inability to predict the course or outcome of any negotiations with parties
involved with our projects; uncertainties relating to general economic and industry conditions, and the amount and rate of growth in expenses; uncertainties relating to government and regulatory policies and the legal environment; uncertainties
relating to the availability of tax </FONT>
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<FONT FACE="Times New Roman" SIZE="2">credits, deductions, rebates and similar incentives; intellectual property issues; the competitive environment in which Environmental Power Corporation and
its subsidiaries operate and other factors, including those described in our most recent Annual Report on Form 10-K or Quarterly Report on Form 10-Q, well as in other filings we make with the Securities and Exchange Commission. Readers are cautioned
not to place undue reliance on these forward-looking statements, which speak only as of the date that they are made. We undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information,
future events or otherwise. </FONT></P> <P STYLE="font-size:12px;margin-top:0px;margin-bottom:0px">&nbsp;</P>
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<TD VALIGN="top"> <P STYLE="text-indent:2.00em"><FONT FACE="Times New Roman" SIZE="2">CONTACT:</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="bottom"></TD></TR>
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<TD HEIGHT="8"></TD>
<TD HEIGHT="8" COLSPAN="2"></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em"><FONT FACE="Times New Roman" SIZE="2">Company Contact</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Public Relations Contact</FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em"><FONT FACE="Times New Roman" SIZE="2">Mark Hall, Senior Vice President</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">John Abrashkin</FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em"><FONT FACE="Times New Roman" SIZE="2">Environmental Power Corporation</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">Ricochet Public Relations</FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em"><FONT FACE="Times New Roman" SIZE="2">(630) 573-2926</FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2">(212) 679-3300 x121</FONT></TD></TR>
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<TD VALIGN="top"> <P STYLE="margin-left:1.00em"><FONT FACE="Times New Roman" SIZE="2"><U>mhall@environmentalpower.com</U></FONT></P></TD>
<TD VALIGN="bottom"><FONT SIZE="1">&nbsp;</FONT></TD>
<TD VALIGN="top"><FONT FACE="Times New Roman" SIZE="2"><U>jabrashkin@ricochetpr.com</U></FONT></TD></TR>
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