Document:

EXHIBIT 10.1

SEVERANCE AND GENERAL RELEASE AGREEMENT

This Severance and General Release Agreement (“Agreement”) made this 30th day of August, 2017, by and between Cynthia Smith (“Employee”), an individual, and MetaBank (“Bank”), a corporation.

WHEREAS, Bank has decided to terminate Employee’s employment with Bank effective on August 15, 2017; and

WHEREAS, the purpose of this Agreement is to provide certain benefits to Employee following termination of employment in exchange for a covenant not to sue and general release of all claims against Bank; and

WHEREAS, by executing this Agreement, Bank does not admit that Employee possesses a legally valid claim or potential claim.  Without admitting wrongdoing or liability, Bank desires to enter into this Agreement to put to rest all potential controversies between the parties and to avoid the costs and expenses associated with defending any such claims or controversies;

NOW, THEREFORE, in consideration of the covenants undertaken and the releases contained in this Agreement, Employee and Bank agree as follows:

1.          TERMINATION.  Employee’s termination of employment is effective on August 15, 2017 (the “Termination Date”).   Bank shall pay Employee the Employee’s normal compensation through the Termination Date.

2.          SEVERANCE.  In consideration of a fully enforceable Severance and General Release Agreement and other promises made by Employee as set forth herein, Bank will pay Employee the amount of Eight Hundred Fifteen Thousand Dollars ($815,000.00) payable in two equal installments of Four Hundred Seven Thousand Five Hundred Dollars ($407,500.00), less standard withholding and deductions elected by Employee or required by applicable law, with the first payment made the later of September 2017 or at least eight (8) days after Bank’s receipt of this executed Agreement, and the second payment will be made in January 2018 (provided Employee does not revoke Employee’s acceptance of the Agreement during the Revocation Period as provided in Paragraph 13).  Employee acknowledges that the above Severance is over and above any sums payable to Employee as a result of the cessation of the employment relationship with the Bank.

If Employee elects to continue participating in Bank’s group medical plan pursuant to rights which accrue under the Comprehensive Omnibus Reconciliation Act of 1985 as amended (COBRA) following the Termination Date, then as further consideration to Employee, and provided Employee does not exercise her right of rescission under Section 13 herein, Bank will subsidize Employee’s group medical premiums, as set forth in Section 3 below.

3.          EMPLOYEE BENEFITS.  Bank will continue to provide Employee all regular employee benefits up to the Termination Date.  Employee may be eligible to continue coverage under Bank’s group health insurance plan, and any other plans, to the extent required under COBRA.  Coverage under the COBRA plan[s] shall be in accordance with the terms of the plan[s] as such may be amended from time to time.

Employee will receive, under separate cover, information regarding the process of continuing her health insurance by making a federal COBRA continuation election, and she may elect to continue such benefits in accordance with COBRA requirements following the Termination Date.  If following the Termination Date Employee elects to and does continue participation in the Bank-sponsored group medical plan under COBRA, Bank will pay premiums for such coverage on the terms and conditions set forth in the following paragraph.

Except as otherwise set forth in this paragraph, Bank will be obligated to pay the premiums for medical coverage until the earlier of September 30, 2018, or the date on which Employee is no longer eligible for COBRA coverage, at the level of coverage that Employee had as of the Termination Date.  If Employee reduces the level of coverage under the plan (e.g., from family to single), Bank will pay premiums only for reduced coverage for the remainder of the time period set forth above and will not increase that amount if Employee later increases the level of coverage under the plan.  Bank will continue to subsidize the COBRA continuation coverage as set forth in this Section 3 only so long as Employee is otherwise entitled to COBRA coverage.  Employee shall promptly notify Bank if Employee becomes eligible for any other group coverage or if Employee otherwise becomes ineligible for COBRA coverage.  After the time that Bank ceases to pay for the COBRA coverage, Employee may choose to continue such coverage as permitted under COBRA at Employee’s own expense for the remaining months (if any) of the applicable COBRA continuation period.  The parties agree that the group medical premium payments contemplated by this Agreement are not intended to and do no create a retiree health plan covering any other employees.

4.          TRANSITION.  The Employee shall use her reasonable best efforts to assist the Bank in the transition of current and pending Bank matters involving Employee’s workload. Employee will provide not more than 40 hours of consulting services, with Bradley C. Hanson, or his designee, as needed for the transition of work during the 30 day period following execution of this agreement.

5.          CONFIDENTIALITY/NON-DISPARAGEMENT.  Employee agrees that the terms and conditions of the Agreement shall remain confidential as and between the parties, and Employee shall not disclose them to any other person.  Without limiting the generality of the foregoing, Employee will not respond to or in any way participate in or contribute to any public discussion, notice or other publicity concerning or in any way relating to the execution of this Agreement or the events including any negotiations which led to its execution.  Without limiting the generality of the foregoing, Employee specifically agrees that Employee shall not disclose information regarding this Agreement to any current or former employee of Bank.  Without limiting the foregoing, Employee may disclose the monetary aspects of this Agreement to Employee’s spouse, attorneys or financial advisors provided Employee informs them of this confidentiality provision.  Employee hereby agrees that disclosure of any terms or the conditions of the Agreement in violation of the foregoing shall constitute and be treated as a material breach of this Agreement.  Employee further agrees that Employee will not make disparaging, uncomplimentary or negative remarks about Bank, its products, business affairs or employees.  Employee expressly agrees that Employee’s violation of this Section 5 relating to confidentiality/non-disparagement shall entitle Bank to any and all rights and remedies available at law or in equity.

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6.          REFERENCE INQUIRY.  It is mutually agreed that, if inquiry is made by third parties concerning Employee, Bank is authorized to state only Employee’s title and dates of employment, unless provided written authorization by Employee to release further information.

7.          DENIAL OF ANY VIOLATION – AGREEMENT NOT EVIDENCED.  Bank expressly denies any violation of its policies, procedures, contractual obligations, or state or federal laws or regulations.  Accordingly, while this Agreement resolves all issues between Bank and Employee relating to any alleged violation of Bank policies or procedures or any state or federal law or regulation, this Agreement does not constitute an adjudication or finding on the merits and it is not, and shall not be construed as an admission by Bank of any violation of its policies, state or federal laws, or regulations.  Moreover, neither this Agreement nor anything in this Agreement shall be construed to be or shall be admissible in any proceedings as evidence of or an admission by Bank of any violation of its policies, procedures, state or federal laws.  This Agreement may be introduced, however, in any proceeding to enforce the Agreement.  Such introduction shall be pursuant to an order protecting its confidentiality.

8.          GENERAL RELEASE AND DISCHARGE.  Except for those obligations created by or arising out of this Agreement for which receipt or satisfaction has not been acknowledged herein, Employee on behalf of Employee and Employee’s decedents, dependents, heirs, executors, administrators, assigns, and successors, and each of them, hereby covenants not to sue and fully releases and discharges Bank and its parent, subsidiaries and affiliates, past and present, and each of them, as well as its and their trustees, directors, officers, agents, attorneys, insurers, employees, stockholders, representatives, assigns and  successors, past and present and each of them, hereinafter together and collectively referred to as “Releasees,” with respect to and from any and all claims, wages, demands, rights, liens, agreements, contracts, covenants, actions, suits, causes of action, obligations, debts, costs, expenses, attorneys’ fees, damages, judgments, orders and liabilities, of whatever kind or nature in law, equity or otherwise, whether now known or unknown, suspected or unsuspected, and whether or not concealed or hidden, which Employee now owns or holds or has at any time heretofore owned or held as against said Releasees, arising out of or any way connected with Employee’s employment relationship with Bank or the termination of Employee’s employment or any other transactions, occurrence, actions, omissions or any loss, damage or injury whatever, known or unknown, suspected or unsuspected, resulting from any act or omission, by or on the part of said releases, or any of them, committed or omitted prior to the date of this Agreement.

Employee specifically understands and agrees that this waiver, release and discharge includes:

		(a)	
All claims arising under federal, state or local laws prohibiting employment discrimination such as, without limitation,

		
i.

	
The Age Discrimination in Employment Act (ADEA);

		
ii.

	
The Older Workers Benefit Protection Act (OWBPA);

		
iii.

	
Title VII of the Civil Rights Act of 1964;

		
iv.

	
The Civil Rights Act of 1991;

		
v.

	
The Americans With Disabilities Act, as amended (ADA);

		
vi.

	
The Equal Pay Act;

		
vii.

	
The Family and Medical Leave Act;

		
viii.

	
The Worker’s Adjustment and Retraining Notification Act (WARN);

		
ix.

	
The Occupational Safety and Health Act;

		x.	
The South Dakota Human Relations Act and the fair employment practices laws of the state or states in which Employee has been employed by Bank or any of its subsidiaries or other affiliates;

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(b)          Claims for breach of contract, either express or implied;

		(c)	
Claims for personal injury, harm or damages, whether intentional or unintentional;

		(d)	
Claims growing out of any legal restrictions on the right to terminate Employee, including any claim for wrongful discharge;

		(e)	
Claims for benefits including, without limitation, those arising under Employees’ Retirement Income Security Act of 1974;

		(f)	
For any other work related claim that may arise from or may be related to her employment, up to and through the date of this Agreement; and

Employee agrees not to litigate any such claims except for breach or validity of this Agreement. Bank and Employee agree that by entering into this Agreement, Employee does not waive claims that may arise after the date the Agreement is executed or any claim for any vested rights under any applicable pension plan.

 Employee represents and warrants that Employee has been paid all wages due and owing from Bank, including but not limited to overtime, in accordance with the Fair Labor Standards Act, and has received any and all benefits for which Employee would be eligible under the Family and Medical Leave Act.

9.          BUSINESS INFORMATION – CONFIDENTIALITY.  Employee acknowledges that by reason of Employee’s position with Bank, Employee had access to trade secrets and other non-public information relating to MetaBank or its affiliates, including without limitation:  any MetaBank proprietary information, technical data, trade secrets or know-how, including, but not limited to, research, product plans, products, services, suppliers, customer lists and customers (including, but not limited to, customers of MetaBank), prices and costs, markets, software, developments, inventions, protocols, interfaces, laboratory notebooks, processes, formulas, technology, designs, drawings, engineering materials, hardware configuration information, marketing data, licenses, finances, budgets or other business information disclosed by MetaBank either directly or indirectly in writing, orally or by drawings or observation of parts or equipment (the “Confidential Information”); provided, however, that Confidential Information does not include information that is publicly available or generally known in the industry through no fault or misconduct of Employee.

Employee acknowledges that the Confidential Information is vital, sensitive, confidential and proprietary to MetaBank and/or its affiliates and MetaBank derives economic benefits from maintaining such information confidential.  Employee shall (i) hold the Confidential Information in the strictest confidence and take all reasonable precautions to prevent the inadvertent disclosure of Confidential Information to any unauthorized individual or entity; and (ii) not disclose or use the Confidential Information.  This restriction shall remain in effect for so long as the information at issue falls within the definition of Confidential Information.

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10.          RETURN OF CONFIDENTIAL MATERIALS.  Employee shall return to Bank and shall not take or copy in any form or manner any Confidential Materials and information, including all originals and copies, whether in paper or computer stored form.

11.          PAYMENT OF TAXES.  Employee agrees that Employee shall be exclusively liable for the payment of all federal and state taxes which may result from the payments contemplated by this Agreement.  Employee acknowledges that Bank and/or its attorneys do not make and have not made any representations regarding the taxability of the payments.

12.          RIGHT TO CONSULT WITH ATTORNEY.  Employee acknowledges that Employee has a right to consult with an attorney or any other advisor, counselor or consultant of Employee’s choosing prior to signing this Agreement and that Employee is hereby advised in writing to consult with an attorney prior to executing this Agreement.

13.          WAIVER OF CLAIMS UNDER THE AGE DISCRIMINATION IN EMPLOYMENT ACT AND THE OLDER WORKERS BENEFIT PROTECTION ACT OF 1990.  Notwithstanding anything in this Agreement to the contrary, Employee understands this voluntary waiver releases Bank of any and all claims under the Age Discrimination in Employment Act (ADEA) and the Older Workers Benefit Protection Act of 1990 (OWBPA) and that Employee has been given twenty-one (21) days to sign this Agreement after it has been received in order to consider all its terms fully.    Employee may revoke Employee’s acceptance of this Agreement at any time within seven (7) days following execution of this Agreement and the Agreement shall not become effective or enforceable until expiration of this seven (7) day period (the “Revocation Period”).  Should Employee revoke this Agreement during the Revocation Period, this entire Agreement shall be deemed null and void.  This waiver does not apply to rights or claims under the ADEA and OWBPA that may arise after the date the waiver is executed.  If Employee desires to revoke this Agreement, revocation may be made by a written revocation delivered to Ian Stromberg, SVP HR & Administration, MetaBank, 5501 South Broadband Lane, Sioux Falls, SD  57108.

14.          DEADLINE TO EXECUTE AND DELIVER AGREEMENT.  This Agreement shall be null and void and have no force and effect if not executed and delivered by Employee to Ian Stromberg, SVP HR & Administration, MetaBank, 5501 South Broadband Lane, Sioux Falls, SD  57108 on or before September 5, 2017.

15.          EMPLOYEE ACKNOWLEDGMENTS.  Prior to signing this Agreement, Employee acknowledges that Employee read and carefully considered this Agreement, and had an opportunity to ask questions about it, to discuss this Agreement with Employee’s attorney, advisor, counselor, consultant or other person of Employee’s choosing.  Employee acknowledges that Employee is signing this Agreement freely and voluntarily.  Employee acknowledges receiving a copy of this Agreement on August 15, 2017.

16.          COMPLETE AGREEMENT.  This Agreement constitutes and contains the entire agreement and final understanding concerning Employee’s employment, voluntary resignation from the same, and the other subject matters addressed herein between the parties.  It is intended by the parties as a complete and exclusive statement of the terms of the Agreement.  It supersedes and replaces all prior negotiations and all agreements proposed or otherwise, whether written or oral, concerning the subject matters hereof.  Any representation, promise or agreement not specifically included in this Agreement shall not be binding upon or enforceable against either party.  This is a fully integrated agreement.

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17.          SEVERABILITY AND INVALID PROVISIONS.  If any provision of this Agreement or the application hereof is held invalid, the invalidity shall not affect other provisions or applications of the Agreement which can be given effect without the invalid provisions or applications and to this end, the provisions of this Agreement are declared to be severable.

18.          CHOICE OF LAW / CONSENT TO JURISDICTION.  This Agreement shall be deemed to have been executed and delivered from the State of South Dakota, and the rights of obligations of the parties hereunder shall be construed and enforced in accordance with and governed by the laws of the State of South Dakota without regard to the principles of conflicts of law.  Employee agrees that any lawsuit arising directly or indirectly or otherwise in connection with, out of or related to this Agreement may be litigated only in the courts whose situs is within the State of South Dakota, and Employee specifically waives any right Employee may have to transfer or change venue of any such litigation, and hereby consents and submits to the jurisdiction of any courts located within the State of South Dakota.

19.          JOINT PREPARATION OF AGREEMENT.  Each party has cooperated in drafting the preparation of this Agreement.  Hence, any construction to be made of this Agreement shall not be construed against any party on the basis that the party was the drafter.

20.          WAIVER OF BREACH – EFFECT.  No waiver of any breach of any term or provision of this Agreement shall be construed to be nor shall be, a waiver of any other breach of this Agreement.  No waiver shall be binding unless in writing and signed by the party waiving the breach.

21.          FURTHER EXECUTIONS.  All parties agree to cooperate fully and to execute any and all supplementary documents to make all additional actions that may be necessary or appropriate to give full force to the basic terms intended of this Agreement which are not inconsistent with its terms.

22.          HEADINGS NOT BINDING.  The use of headings in this Agreement is only for ease of reference and the headings have no effect and are not to be considered part or a term of this Agreement.

23.          AT WILL EMPLOYMENT. By signing below, Bank and Employee agree that Employee was free to terminate employment with Bank at will, without cause, and Bank was free to terminate the employment of Employee, at will, without cause.

24.          STATUS DURING SEVERANCE BENEFIT PERIOD. Commencing with the Termination Date, Employee shall cease to be an employee of Bank for any purpose. The payment of Severance under this Agreement shall be payments to a former employee.

I have read the foregoing Agreement, I accept and agree to the provisions it contains, and hereby execute it voluntarily with full understanding of its consequences.

Executed this 30th day of August, 2017.

	
/s/ Cynthia M. Smith

	 	
/s/ Bradley C. Hanson

	 
	
Employee

	 	
Bradley C. Hanson

	 
	 	 	
President, Meta Financial Group

	 
	 	 	
President, MetaBank

	 

  

6Exhibit 10.1

 

FIRST AMENDMENT TO LOAN AND SECURITY
AGREEMENT

 

THIS FIRST AMENDMENT
TO LOAN AND SECURITY AGREEMENT (this “Amendment”), dated as of September 5, 2017 (the “Amendment
Effective Date”), is entered into by and among FuelCell Energy, Inc., a Delaware corporation (“Parent”),
Versa Power Systems, Inc., a Delaware corporation (“Versa Delaware”), Versa Power Systems Ltd. a corporation
organized under the laws of Alberta, Canada (“Versa Canada”), and each of Parent’s Subsidiaries that delivers
a Joinder Agreement pursuant to Section 7.13 of the Loan and Security Agreement (hereinafter collectively referred to as the “Borrowers”
and each, a “Borrower”), the several banks and other financial institutions or entities from time to time parties
thereto as Lender, constituting the Required Lenders, and HERCULES CAPITAL, INC., a Maryland corporation, in its capacity as administrative
agent and collateral agent for itself and the Lender (in such capacity, together with its successors and assigns in such capacity,
“Agent”).

 

Borrower the Lender
and Agent are parties to a Loan and Security Agreement dated as of April 14, 2016 (as amended, restated or modified from time
to time, the “Loan and Security Agreement”). The Borrowers have requested that Agent and Lender agree to certain
amendments to the Loan and Security Agreement. Agent and Lender have agreed to such request, subject to the terms and conditions
hereof.

 

Accordingly, the parties
hereto agree as follows:

 

SECTION 1         Definitions;
Interpretation.

 

(a)          Terms
Defined in Loan and Security Agreement. All capitalized terms used in this Amendment (including in the recitals hereof) and
not otherwise defined herein shall have the meanings assigned to them in the Loan and Security Agreement.

 

(b)          Interpretation.
The rules of interpretation set forth in Section 1.1 of the Loan and Security Agreement shall be applicable to this Amendment
and are incorporated herein by this reference.

 

SECTION 2         Amendments to the Loan and
Security Agreement.

 

(a)          The
Loan and Security Agreement shall be amended as follows effective as of the Amendment Effective Date:

 

(i)          New
Definitions. The following definitions are added to Section 1.1 in their proper alphabetical order:

 

“Blocked
Account Control Agreement” means an Account Control Agreement wherein Agent has and maintains exclusive control over the
subject account or accounts, in form and substance acceptable to Agent in its sole discretion.

 

“First
Amendment” means that certain First Amendment to Loan and Security Agreement dated as of September 5, 2017, among Borrowers
and Agent.

 

“First
Amendment Effective Date” means September 5, 2017.

 

“Series
C Convertible Preferred Certificate” means that certain Certificate of Designations, Preferences and Rights of the Series
C Convertible Preferred Stock of FuelCell Energy, Inc., in the form attached as Exhibit B to the First Amendment, in each case
as in effect on the First Amendment Effective Date.

 

“Series
C Convertible Preferred Documents” means (a) that certain Underwriting Agreement between Parent and Oppenheimer & Co.
Inc. dated as of September 5, 2017 in the form attached as Exhibit A to the First Amendment and (b) the Series C Convertible Preferred
Certificate.

 

    	 	1	 

     

    

 

“Series C Convertible Preferred
Stock” means the Series C Convertible Preferred Stock issued by the Borrower pursuant to the Series C Convertible Preferred
Certificate.

 

(ii)         Amended
Definitions. The definition of “Permitted Indebtedness” is amended by removing the word “and” at the
end of clause (xiii), inserting the word “and” at the end of clause (xii) and adding a new clause (xiv) as follows:
“(xiv) subject to Section 7.7, redemption and/or conversion rights as set forth in the Series C Convertible Preferred Documents”

 

(iii)        Section
7.7. Section 7.7 is hereby amended and restated in its entirety as follows:

 

7.7           
Distributions. Borrower shall not, and shall not allow any Subsidiary to, (a) repurchase or redeem any class of stock or other
equity interest in cash other than (i) pursuant to employee, director or consultant repurchase plans or other similar agreements,
provided, however, in each case the repurchase or redemption price does not exceed the original consideration paid for such stock
or equity interest and (ii) so long as no Event of Default has occurred and is continuing, pursuant to the redemption and/or conversion
rights set forth in the Series C Convertible Preferred Documents; provided that, Borrower shall make any such repurchase, redemption
or payment in the form of its common stock and not in cash or other consideration unless prohibited pursuant to the terms of the
Series C Convertible Preferred Certificate or otherwise prohibited by applicable law or (b) declare or pay any cash dividend or
make a cash distribution on any class of stock or other equity interest, except that (i) a Subsidiary may pay dividends or make
distributions to Borrower and (ii) so long as no Event of Default has occurred and is continuing, Borrower may pay cash dividends
under Borrower’s (A) Series 1 Preferred Shares in an amount not to exceed Canadian $1,250,000 per year, (B) Series B Preferred
Shares in an amount not to exceed U.S. $3,300,000 per year and (C) Series C Convertible Preferred Shares as required in the Series
C Convertible Preferred Documents provided that, Borrower shall pay such dividend or distribution in the form of common stock and
not in cash or other consideration unless prohibited pursuant to the terms of the Series C Convertible Preferred Certificate or
otherwise prohibited by applicable law or (c) lend money to any employees, officers or directors or guarantee the payment of any
such loans granted by a third party in excess of $100,000 in the aggregate or (d) waive, release or forgive any Indebtedness owed
by any employees, officers or directors in excess of $100,000 in the aggregate. For the avoidance of doubt, Borrower shall not
use cash to retire, redeem or make principal payments other than those referenced in (ii) above on its Convertible Perpetual Preferred
Stock (which, for the avoidance of doubt, does not include the Series C Convertible Preferred Stock) without the consent of Agent.

 

(iv)        Section
8.2. Section 8.2 is hereby amended and restated as follows:

 

8.2        Minimum
Unrestricted, Blocked Cash Balance. At all times, Borrower shall maintain an unrestricted, blocked Cash balance of at least the
greater of (x) (a) $20,000,000.00 plus (b) the amount of accounts payable (as defined under GAAP) not paid within 90 days of the
date payment was issued, in accounts subject to an Account Control Agreement in favor of Agent and (y) (a) 100% of the outstanding
Loan balance plus (b) the amount of accounts payable (as defined under GAAP) not paid within 90 days of the date payment was issued,
in accounts subject to a Blocked Account Control Agreement in favor of Agent.

 

(v)         Section
9.8. A new Section 9.8 is hereby added as follows:

 

9.8           Series
C Convertible Preferred Stock. The delivery of any Triggering Event Redemption Notice (as defined under the Series C Convertible
Preferred Certificate) under the Series C Convertible Preferred Certificate, both as in effect on the First Amendment Date and
as may be amended.

 

    	 	2	 

     

    

 

(vi)        Notwithstanding
any other provision of the Loan and Security Agreement, as amended, the Borrower shall be permitted to redeem all or a portion
of the Series C Convertible Preferred Stock at an aggregate redemption price of up to $30,000,000 pursuant to Section 5(b) of the
Series C Convertible Preferred Certificate following a Triggering Event (as defined in the Series C Convertible Preferred Certificate)
pursuant to Section 5(a)(iii) of the Series C Convertible Preferred Certificate. For the avoidance of doubt, any principal or accrued
amount outstanding at the time of redemption in excess of the aggregate amount paid to the Holders, shall remain outstanding and
remain due and payable to the Holders. Notwithstanding the foregoing, in no event shall this section or any other provision of
the Loan Documents or otherwise limit any rights of the Agent and Lenders to be paid prior to the holders of the Series C securities
upon any exercise of remedies by Agent or the Lenders (whether such exercise is automatic or upon the direction of any parties),
in any action either before or after the consummation of any Insolvency Proceeding.

 

(b)          References
within Loan and Security Agreement. Each reference in the Loan and Security Agreement to “this Agreement” and the
words “hereof,” “herein,” “hereunder,” or words of like import, shall mean and be a reference
to the Loan and Security Agreement as amended by this Amendment.

 

SECTION 3         Conditions
of Effectiveness. The effectiveness of Section 2 of this Amendment shall be subject to the satisfaction of each of the
following conditions precedent:

 

(a)          Fees
and Expenses. The Parent shall have paid all attorney fees and other costs and expenses then due in accordance with Section
5(e), and (ii) all other fees, costs and expenses, if any, due and payable as of the Amendment Effective Date under the Loan
and Security Agreement.

 

(b)          This
Amendment. Agent shall have received this Amendment, executed by Agent, the Lender and the Loan Parties.

 

(c)          Series
C Convertible Preferred Documents. Agent shall have received executed copies of each Series C Convertible Preferred Document,
in form and substance satisfactory to Agent.

 

(d)          Series
C Convertible Preferred Issuance. The Borrower shall have issued 33,500 shares of Series C Convertible Preferred Stock pursuant
to the Series C Convertible Preferred Documents.

 

(e)          Blocked
Account Control Agreement. The Blocked Account Control Agreement shall be in full force and effect.

 

(f)          Representations
and Warranties; No Default. On the Amendment Effective Date, after giving effect to the amendment of the Loan and Security
Agreement contemplated hereby:

 

(i)          The
representations and warranties contained in Section 4 shall be true and correct on and as of the Amendment Effective Date
as though made on and as of such date; and

 

(ii)         There
exist no Events of Default or events that with the passage of time would result in an Event of Default.

 

SECTION 4        Representations
and Warranties. To induce Agent and Lender to enter into this Amendment, each Borrower hereby confirms, as of the date hereof,
(a) that the representations and warranties made by it in Section 5 of the Loan and Security Agreement and in the other Loan Documents
are true and correct in all material respects; provided, however, that such materiality qualifier shall not be applicable
to any representations and warranties that already are qualified or modified by materiality in the text thereof; (b) that there
has not been and there does not exist a Material Adverse Effect; and (c) that the information included in the Perfection Certificate
delivered to Agent on the Effective Date remains true and correct. For the purposes of this Section 4, (i) each reference
in Section 5 of the Loan and Security Agreement to “this Agreement,” and the words “hereof,” “herein,”
“hereunder,” or words of like import in such Section, shall mean and be a reference to the Loan and Security Agreement
as amended by this Amendment, and (ii) any representations and warranties which relate solely to an earlier date shall not
be deemed confirmed and restated as of the date hereof (provided that such representations and warranties shall be true, correct
and complete as of such earlier date).

 

    	 	3	 

     

    

 

SECTION 5         Miscellaneous.

 

(a)          Loan
Documents Otherwise Not Affected; Reaffirmation. Except as expressly amended pursuant hereto or referenced herein, the Loan
and Security Agreement and the other Loan Documents shall remain unchanged and in full force and effect and are hereby ratified
and confirmed in all respects. The Lender’s and Agent’s execution and delivery of, or acceptance of, this Amendment
shall not be deemed to create a course of dealing or otherwise create any express or implied duty by any of them to provide any
other or further amendments, consents or waivers in the future. Each Borrower hereby reaffirms the grant of security under Section
3.1 of the Loan and Security Agreement and hereby reaffirms that such grant of security in the Collateral secures all Secured Obligations
under the Loan and Security Agreement and the other Loan Documents.

 

(b)          Conditions.
For purposes of determining compliance with the conditions specified in Section 3, each Lender that has signed this Amendment
shall be deemed to have consented to, approved or accepted or to be satisfied with, each document or other matter required thereunder
to be consented to or approved by or acceptable or satisfactory to a Lender unless Agent shall have received notice from such Lender
prior to the Amendment Effective Date specifying its objection thereto.

 

(c)          Release.
In consideration of the agreements of Agent and each Lender contained herein and for other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, each Borrower, on behalf of itself and its successors, assigns, and other
legal representatives, hereby fully, absolutely, unconditionally and irrevocably releases, remises and forever discharges Agent
and each Lender, and its successors and assigns, and its present and former shareholders, affiliates, subsidiaries, divisions,
predecessors, directors, officers, attorneys, employees, agents and other representatives (Agent, Lenders and all such other persons
being hereinafter referred to collectively as the “Releasees” and individually as a “Releasee”),
of and from all demands, actions, causes of action, suits, covenants, contracts, controversies, agreements, promises, sums of money,
accounts, bills, reckonings, damages and any and all other claims, counterclaims, defenses, rights of set-off, demands and liabilities
whatsoever of every name and nature, known or unknown, suspected or unsuspected, both at law and in equity, which any Borrower,
or any of its successors, assigns, or other legal representatives may now or hereafter own, hold, have or claim to have against
the Releasees or any of them for, upon, or by reason of any circumstance, action, cause or thing whatsoever which arises at any
time on or prior to the day and date of this Amendment, including, without limitation, for or on account of, or in relation to,
or in any way in connection with the Loan Agreement, or any of the other Loan Documents or transactions thereunder or related thereto.
Each Borrower understands, acknowledges and agrees that the release set forth above may be pleaded as a full and complete defense
and may be used as a basis for an injunction against any action, suit or other proceeding which may be instituted, prosecuted or
attempted in breach of the provisions of such release. Each Borrower agrees that no fact, event, circumstance, evidence or transaction
which could now be asserted or which may hereafter be discovered shall affect in any manner the final, absolute and unconditional
nature of the release set forth above. Borrower waives the provisions of California Civil Code section 1542, which states:

 

A GENERAL RELEASE
DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE
RELEASE, WHICH IF KNOWN BY HIM OR HER, MUST HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.

 

(d)          No
Reliance. Each Borrower hereby acknowledges and confirms to Agent and the Lender that such Borrower is executing this Amendment
on the basis of its own investigation and for its own reasons without reliance upon any agreement, representation, understanding
or communication by or on behalf of any other Person.

 

(e)          Costs
and Expenses. Each Borrower agrees to pay to Agent on the Amendment Effective Date the out-of-pocket costs and expenses of
Agent and the Lenders party hereto, and the fees and disbursements of counsel to Agent and the Lenders party hereto (including
allocated costs of internal counsel), in connection with the negotiation, preparation, execution and delivery of this Amendment
and any other documents to be delivered in connection herewith on the Amendment Effective Date or after such date.

 

(f)          Binding
Effect. This Amendment binds and is for the benefit of the successors and permitted assigns of each party.

 

    	 	4	 

     

    

 

(g)          Governing
Law. This Agreement and the other Loan Documents shall be governed by, and construed and enforced in accordance with, the laws
of the State of California, excluding conflict of laws principles that would cause the application of laws of any other jurisdiction.

 

(h)          Complete
Agreement; Amendments. This Amendment and the Loan Documents represent the entire agreement about this subject matter and supersede
prior negotiations or agreements with respect to such subject matter. All prior agreements, understandings, representations, warranties,
and negotiations between the parties about the subject matter of this Amendment and the Loan Documents merge into this Amendment
and the Loan Documents.

 

(i)          Severability
of Provisions. Each provision of this Amendment is severable from every other provision in determining the enforceability of
any provision.

 

(j)          Counterparts.
This Amendment may be executed in any number of counterparts and by different parties on separate counterparts, each of which,
when executed and delivered, is an original, and all taken together, constitute one Amendment. Delivery of an executed counterpart
of a signature page of this Amendment by facsimile, portable document format (.pdf) or other electronic transmission will be as
effective as delivery of a manually executed counterpart hereof.

 

(k)          Loan
Documents. This Amendment shall constitute a Loan Document.

 

[Balance of Page Intentionally
Left Blank; Signature Pages Follow]

 

    	 	5	 

     

    

 

IN WITNESS WHEREOF,
the parties hereto have duly executed this Amendment, as of the date first above written.

 

	 	BORROWERS:
	 	 
	 	FuelCell Energy, Inc.
	 	 	 
	 	Signature:	/s/ Michael S. Bishop
	 	 	 
	 	Print Name:	Michael S. Bishop
	 	 	 
	 	Title:	Senior Vice President, Chief
	 	 	Financial Officer & Treasurer
	 	 	 
	 	Versa Power Systems, Inc.
	 	 	 
	 	Signature:	/s/ Michael S. Bishop
	 	 	 
	 	Print Name:	Michael S. Bishop
	 	 	 
	 	Title:	Treasurer
	 	 	 
	 	Versa Power Systems Ltd.
	 	 
	 	Signature:	/s/ Michael S. Bishop
	 	 	 
	 	Print Name:	Michael S. Bishop
	 	 	 
	 	Title:	Treasurer

 

[Signature Page to First Amendment to Loan
and Security Agreement]

 

     

     

    

 

	 	AGENT:
	 	 
	 	HERCULES FUNDING II, LLC
	 	 	 
	 	Signature:	/s/ Jennifer Choe
	 	 	 
	 	Print Name:	Jennifer Choe
	 	 	 
	 	Title:	Assistant General Counsel
	 	 
	 	LENDER:
	 	 
	 	HERCULES FUNDING II, LLC
	 	 	 
	 	Signature:	/s/ Jennifer Choe
	 	 	 
	 	Print Name:	Jennifer Choe
	 	 	 
	 	Title:	Assistant General Counsel

 

[Signature Page to First Amendment to Loan
and Security Agreement]

 

     

     

    

 

Exhibit A

 

Underwriting Agreement

 

     

     

    

 

Exhibit B

 

Certificate of Designation

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