APPLICABLE DISCOUNT RATE. Shall mean: (i) for Cash Flows from assets with binding off-take or sales contracts, such as power purchase agreements or other hedged sales contracts, from the residual contractual portion of completed restructurings, or from such projects in construction that are being constructed pursuant to a turn-key engineering, procurement and construction contract, the 10-year U.S. Treasury Rate plus 2.65%, or, in the case of such projects in construction that are not being
... constructed pursuant to a turn-key engineering, procurement and construction contract, the 10-year U.S. Treasury Rate plus 3.65%; (ii) for Cash Flows from merchant power facilities or other assets with no significant off-take, tolling or other comparable contractual arrangements or, in the case of such projects in construction that are being constructed pursuant to a turn-key engineering, procurement and construction contract, the 10-year U.S. Treasury Rate plus 5.65%, or, in the case of such projects in construction that are not being constructed pursuant to a turn-key engineering, procurement and construction contract, the 10-year U.S. Treasury Rate plus 6.65%; (iii) for Cash Flows from expected contract restructurings, the 10-year U.S. Treasury Rate plus 5.65%; (iv) for Cash Flows from expected terminal values, the 10-year U.S. Treasury Rate plus 5.65%; (v) for Cash Flows from Contingent Debt Instruments, the Applicable Discount Rate for the underlying project, as determined pursuant to (i), (ii), (iii) or (iv) above; (vi) for Annual Fixed Fees, 10%; and (vii) in any other case, such discount rate as shall be established according to fair and reasonable procedures developed by the Management Company in good faith in consultation with the Companies.
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