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  Exhibit 10.3    
    

 
    LETTER AMENDMENT    
    

 

			
	CITIGROUP GLOBAL MARKETS INC.

388 Greenwich Street

New York, New York 10013	 	 UBS AG, STAMFORD BRANCH

677 Washington Boulevard

Stamford, CT 06901
	
JEFFERIES FINANCE LLC

520 Madison Avenue

New York, NY 10022	
 	
 UBS SECURITIES LLC

677 Washington Boulevard

Stamford, CT 06901
	
BANK OF AMERICA, N.A.

Corporate Debt Products—Real Estate

IL4-135-06-11

135 S. LaSalle Street

Chicago, Illinois 60603	
 	
MORGAN STANLEY BANK, N.A.

One Utah Center

201 South Main Street, 5th Floor

Salt Lake City, Utah 84111

    
	
ROYAL BANK OF CANADA

3 World Financial Center

200 Vesey Street, 12th Floor

New York, NY 10281	
 	
 

 

 

			
	Dated as of December 18, 2014
	
SELECT INCOME REIT

Two Newton Place

255 Washington Street, Suite 300

Newton, Massachusetts 02458-2076

Attention: John C. Popeo

                   Chief Financial Officer	
 	
 

 

 Re: Select Income REIT $1,000,000,000 Senior Unsecured Bridge Loan  

Ladies and Gentlemen: 

        Reference
is made to that certain (a) Commitment Letter, dated as of August 30, 2014 (as amended to date, the "Commitment
Letter") between Citigroup Global Markets Inc. ("CGMI") on behalf of Citi, and UBS AG, Stamford Branch
("UBS Bank"; and individually and collectively with UBS Securities LLC ("UBS Securities"), as the
context may require, "UBS", and, together with CGMI, each in its capacity as a Commitment Party, the "Initial Commitment
Parties") and Select Income REIT (the "Borrower"), and (b) Joinder Agreement to Senior Unsecured Bridge Loan Commitment
Letter, dated as of September 9, 2014 (the "Joinder") among the Borrower, the Initial Commitment Parties, Bank of America, N.A.
("BofA"), Royal Bank of Canada ("RBC"), Jefferies Finance LLC
("Jefferies") and Morgan Stanley Bank, N.A. ("MS", together with BofA, RBC and Jefferies, the
"Additional Commitment Parties" and, together with the Initial Commitment Parties, the "Commitment
Parties"). Capitalized terms not otherwise defined in this letter amendment (this "Amendment") shall have their respective
meanings set forth in the Commitment Letter. 

        It
is hereby agreed by you and us as follows: 

        1.     Amendments.

	(a)
	Section 1(c)(i)
of the Commitment Letter is hereby amended by adding the phrase "(if any)" immediately after the term "Guarantors".

	(b)
	Clause (ii)
of the first sentence of the penultimate paragraph of Section 1 of the Commitment Letter and the last sentence of the penultimate
paragraph of Section 1 of the Commitment Letter are hereby amended and restated in their entirety as follows: 

"(ii)
the terms of the Operative Documents shall be in a form such that they do not impair availability of the Facility on the Closing Date if the conditions expressly set forth in Section 1(c)
of this Commitment Letter and the conditions contained in the section entitled "Conditions Precedent to Funding" in Annex I are satisfied (it being acknowledged that delivery of guaranties (if
any) to be provided by the Target and any subsidiary of the Target that is required to become a Guarantor shall be effected on the Closing Date substantially simultaneously with the consummation of
the Acquisition). For purposes hereof, "Specified Representations" means the representations and warranties made by the Company and each Guarantor (if
any) in the Operative Documents as to corporate status, corporate power and authority to enter into the Operative Documents; the due authorization, execution, delivery and enforceability of the
Operative Documents; the Operative Documents not conflicting with charter documents of the Company and each Guarantor (if any) or law; solvency as of the Closing Date of the Company and its
subsidiaries on a consolidated basis (in the manner consistent with Exhibit B attached to Annex I hereto); Federal Reserve margin regulations; use of proceeds of the Facility not
violating anti-money laundering, anti-terrorism and anti-bribery laws, the Patriot Act or OFAC; and the Investment Company Act. This paragraph, and the provisions herein, shall be referred to as the
"Certain Funds Provisions"."  

	(c)
	Annex I
in the Commitment Letter is hereby deleted and replaced with Annex I attached hereto. 

        2.     Effectiveness
of Amendment. This Amendment shall become effective as of the date first above written when, and only when, CGMI shall have
received counterparts of this Amendment executed by the Borrower and the Commitment Parties. 

        3.     Costs
and Expenses. The Borrower agrees to pay on demand all reasonable and documented out-of-pocket costs and expenses of the Commitment
Parties in connection with the preparation, execution, delivery, administration, modification and amendment of this Amendment (including, without limitation, reasonable and documented fees and
disbursements of a single counsel to the Commitment Parties and their affiliates and of a single reasonably necessary special and local counsel for each applicable jurisdiction). 

        4.     Certain
Definitions. Following the effectiveness of this Amendment, each reference in the Commitment Letter to "this Commitment Letter",
"hereunder", "hereof" or words of like import referring to the Commitment Letter, and each reference in the Joinder to "the Commitment Letter", "thereunder", "thereof" or words of like import
referring to the Commitment Letter, shall mean and be a reference to the Commitment Letter, as amended by this Amendment. 

        5.     Ratification.
The Commitment Letter (as amended by this Amendment) shall continue to be in full force and effect and is hereby in all
respects ratified and confirmed. The execution, delivery and effectiveness of this Amendment shall not, except to the extent expressly provided herein, operate as a waiver of any right, power or
remedy of any Commitment Party under the Commitment Letter, nor constitute a waiver of any provision of the Commitment Letter. 

   

   

  
2 

        6.     Execution
Instructions. If you agree to the terms and provisions hereof, please evidence such agreement by executing and returning a
counterpart of this Amendment to Malcolm K. Montgomery of Shearman & Sterling LLP by facsimile (646.848.7587) or via electronic transmission to MMontgomery@Shearman.com, with seven
duplicate originals by overnight courier. 

        7.     Counterparts.
This Amendment may be executed in any number of counterparts and by different parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement. Delivery of an executed counterpart of a signature page to this
Amendment by telecopier or email shall be effective as delivery of a manually executed counterpart of this Amendment. 

        8.     Governing
Law. This Amendment shall be governed by, and construed in accordance with, the laws of the State of New York. 

[Balance of page intentionally left blank] 

   

   

  
3 

 

					
	 	 	 Very truly yours,
	

 	
 	
CITIGROUP GLOBAL MARKETS INC.
	

 	
 	
  By	
 	
/s/ DAVID BOUTON

  Name: David Bouton

Title: Managing Director

 

 [Signatures Continued on Next Page.] 

   

   

 
S-1 

 

					
	 	 	 UBS AG, STAMFORD BRANCH
	

 	
 	
  By	
 	
/s/ JOHN STROLL

  Name: John Stroll

Title: Director
	

 	
 	
  By	
 	
/s/ WARREN JERVEY

  Name: Warren Jervey

Title: Executive Director and Counsel

          Region Americas Legal
	

 	
 	
 UBS SECURITIES LLC
	

 	
 	
  By	
 	
/s/ JOHN STROLL

  Name: John Stroll

Title: Director
	

 	
 	
  By	
 	
/s/ WARREN JERVEY

  Name: Warren Jervey

Title: Executive Director and Counsel

          Region Americas Legal

 

 [Signatures Continued on Next Page.] 

   

   

 
S-1 

 

					
	 	 	 BANK OF AMERICA, N.A.
	

 	
 	
  By	
 	
/s/ CHERYL SNEOR

  Name: Cheryl Sneor

Title: Vice President

 

 [Signatures Continued on Next Page.] 

   

   

 
S-2 

 

					
	 	 	 ROYAL BANK OF CANADA
	

 	
 	
  By	
 	
/s/ JOSHUA FREEDMAN

  Name: Joshua Freedman

Title: Authorized Signatory

 

 [Signatures Continued on Next Page.] 

   

   

 
S-4 

 

					
	 	 	 JEFFERIES FINANCE LLC
	

 	
 	
  By	
 	
/s/ J. PAUL MCDONNELL

  Name: J. Paul McDonnell

Title: Managing Director

 

 [Signatures Continued on Next Page.] 

   

   

 
S-4 

 

					
	 	 	 MORGAN STANLEY BANK, N.A.
	

 	
 	
  By	
 	
/s/ SUBHALAKSHMI GHOSH-KOHLI

  Name: Subhalakshmi Ghosh-Kohli

Title: Authorized Signatory

 

 [Signatures Continued on Next Page.] 

   

   

 
S-5 

ACCEPTED
AND AGREED

on December 18, 2014: 

SELECT
INCOME REIT 

 

					
	
 By	
 	
/s/ DAVID M. BLACKMAN

  Name: David M. Blackman

Title: President and Chief Operating Officer	
 	
 

 

   

   

  
S-7 

 

 
 

  Annex I    
    

 
 

  Summary of Terms and Conditions    
    
    SELECT INCOME REIT    
    
    $1,000,000,000 Senior Unsecured Bridge Loan    
    

 

  

					
	

  
	BORROWER:	 	Select Income REIT (the "Borrower").
	
GUARANTORS:	
 	
Consistent with the Existing Credit Facility (defined below).
	
EXISTING CREDIT FACILITY:	
 	
The existing $750 million revolving credit facility extended pursuant to that certain Credit Agreement dated as of March 12, 2012 by and among the Borrower, the financial institutions party thereto, as lenders,
 Wells Fargo Bank, National Association, as administrative agent, and the other agents and arrangers party thereto, as the same may be amended, amended and restated, restated, modified or replaced with the approval in writing of the lenders
thereunder as required pursuant thereto, provided that such approving lenders include, among others, persons or entities that constitute Commitment Parties holding at least a majority of aggregate
commitments under the Commitment Letter (as defined below) as of December 18, 2014 (the "Existing Credit Facility"). Capitalized terms used and not defined herein are used as defined in the Existing Credit Facility.
	
JOINT LEAD ARRANGERS AND JOINT BOOKRUNNERS:	
 	
The Joint Lead Arrangers and Bookrunners will be Citigroup Global Markets Inc. ("CGMI") and UBS Securities LLC (the "Arrangers").
	
ADMINISTRATIVE AGENT:	
 	
An affiliate of CGMI will act as the administrative agent (the "Administrative Agent").
	
SYNDICATION AGENT:	
 	
UBS Securities LLC (the "Syndication Agent").
	
LENDERS:	
 	
Syndicate of Lenders acceptable to the Arrangers and Borrower (collectively, the "Lenders").
	
FACILITY:	
 	
$1,000,000,000 (the "Facility Amount") senior unsecured bridge loan (the "Bridge Loan").
	
AVAILABILITY:	
 	
The Facility Amount will be disbursed in a single drawing on the Closing Date.

 

  

 

					
	

  
	 	 	 $1,000,000,000 Senior Unsecured Bridge Loan	 	Page 1
	

Confidential
 

 

 

 

  

					
	

  
	PURPOSE:	 	To consummate the acquisition (the "Acquisition") by the Borrower of 100% of the outstanding equity interests in Cole Corporate Income Trust, Inc. (the "Target"), and for the payment of costs and expenses incurred in
connection with the Acquisition, the Bridge Loan and related transactions.
	
AMORTIZATION:	
 	
Interest only during the term of the Bridge Loan (except as provided in the Mandatory Prepayments section below). The outstanding principal balance of the Bridge Loan will be due in full on the Maturity
Date.
	
MATURITY:	
 	
The Bridge Loan shall mature 364 days after the Closing Date (the "Maturity Date").
	
OPTIONAL PREPAYMENT:	
 	
The Borrower may prepay the Bridge Loan, in whole or in part, at any time without fees, premiums or penalty, subject to customary reimbursement of the Lenders' pro rata breakage and redeployment costs associated with
any LIBOR borrowings prepaid on a date other than the last day of the applicable interest period.
	
MANDATORY PREPAYMENTS AND COMMITMENT REDUCTIONS:	
 	
An amount equal to the following amounts shall be applied to prepay the Bridge Loan, without fees, premiums or penalty (other than customary breakage and redeployment costs associated with any LIBOR borrowings prepaid
on a date other than the last day of the applicable interest period) (and, prior to the Closing Date, the commitments pursuant to the Commitment Letter relating to the Bridge Loan to which the Arrangers and the Borrower are parties (the "Commitment
Letter") or the definitive loan documentation for the Bridge Loan, as applicable, shall be permanently and automatically reduced by an amount equal to): 100% of the Net Cash Proceeds (as defined below) of all (i) Capital Raising Transactions (as
defined below), (ii) Material Asset Sales (as defined below) and (iii) cash equity contributions to the Borrower, in each case on or after the date of the Commitment Letter.
	

 	
 	
A "Capital Raising Transaction" shall be public or 144A common equity, preferred equity (including preferred equity convertible into common stock), or debt securities (including debt securities convertible into common
stock) or other unsecured debt for borrowed money issued or guaranteed by the Borrower; provided, however, that "Capital Raising Transaction" shall not
include (i) intercompany debt among the Borrower and/or its subsidiaries; (ii) borrowings under the Existing Credit Facility (including pursuant to any increase in commitments thereunder); (iii) any equity or debt securities (with the
exception of any notes issued by the Borrower with the express intention of the Borrower to replace all or a portion of the Facility) or other unsecured debt issued to finance the Acquisition; and (iv) any debt incurred to refinance or replace
any indebtedness of the Target assumed in connection with the Acquisition. Other customary carveouts to be agreed by the parties.

 

  

 

					
	

  
	 	 	 $1,000,000,000 Senior Unsecured Bridge Loan	 	Page 2
	

Confidential
 

 

 

 

  

					
	

  
	 	 	A "Material Asset Sale" (i) shall mean any non-ordinary course asset sale by the Borrower or any of its subsidiaries generating Net Cash Proceeds in excess of $5,000,000 in any transaction and (ii) shall in any
event exclude the Healthcare Properties Sale (as defined in the Acquisition Agreement).
	

 	
 	
"Net Cash Proceeds" shall mean (a) with respect to any asset sale, the aggregate amount of all cash (which term, for the purpose of this definition, shall include cash equivalents) proceeds (including any cash
proceeds received by way of deferred payment of principal pursuant to a note or installment receivable or purchase price adjustment or otherwise, but only as and when received) actually received in respect of such asset sale, including property
insurance or condemnation proceeds paid on account of any loss of any property or assets, net of (1) all reasonable attorneys' fees, accountants' fees, brokerage, consultant and other customary fees and commissions, title and recording tax
expenses and other reasonable fees and expenses incurred in connection therewith, (2) all taxes paid or reasonably estimated to be payable as a result thereof, (3) all payments made, and all installment payments required to be made, with
respect to any obligation (A) that is secured by any assets subject to such asset sale, in accordance with the terms of any Operative Document or instrument with respect to a lien upon such assets, or (B) that must by its terms, or in order
to obtain a necessary consent to such asset sale, or by applicable law, be repaid (including pursuant to any mandatory prepayment or redemption requirement) out of the proceeds from such asset sale, (4) all distributions and other payments
required to be made to minority interest holders in subsidiaries or joint ventures as a result of such asset sale, or to any other person or entity (other than the Borrower or any of its subsidiaries) owning a beneficial interest in the assets
disposed of in such asset sale, and (5) the amount of any reserves established by the Borrower or any of its subsidiaries in accordance with GAAP to fund purchase price or similar adjustments, indemnities or liabilities, contingent or otherwise,
reasonably estimated to be payable in connection with such asset sale (provided that to the extent and at the time any such amounts are released from such reserve, such amounts shall constitute Net Cash Proceeds); and (b) with respect to any
equity issuance or debt incurrence, the aggregate amount of all cash proceeds actually received in respect of such equity issuance or debt incurrence, net of reasonable fees, expenses, costs, underwriting discounts and commissions incurred in
connection therewith and net of taxes paid or reasonably estimated by the Borrower to be payable as a result thereof.
	

 	
 	
Upon each repayment or prepayment of the Bridge Loan, the aggregate Bridge Loan commitments of the Lenders shall be automatically and permanently reduced, on a pro rata basis, by the amount of such repayment or
prepayment. Amounts repaid may not be reborrowed. Once terminated, a Bridge Loan commitment may not be reinstated.
	
INTEREST RATE:	
 	
Pricing (the "Applicable Margin") will be determined in accordance with the pricing grid as set forth in the attached Exhibit A.

 

  

 

					
	

  
	 	 	 $1,000,000,000 Senior Unsecured Bridge Loan	 	Page 3
	

Confidential
 

 

 

 

  

					
	

  
	 	 	If the Borrower obtains ratings from Moody's, S&P and Fitch that are not equivalent, the Applicable Margin shall be determined by the lower of the highest two ratings. If the Borrower obtains ratings from only Moody's
and S&P, the Applicable Margin shall be determined by the higher of the two ratings. If the Borrower obtains ratings from only one of S&P or Moody's plus Fitch, the Applicable Margin shall be determined by the S&P or Moody's rating. If
the Borrower shall cease to have a Credit Rating from S&P or Moody's, the Applicable Margin shall be determined based on Level 5 of such grid.
	

 	
 	
"LIBOR" means, with respect to any LIBOR Loan for any Interest Period, the rate of interest obtained by dividing (i) the ICE Benchmark Administration Limited LIBOR Rate ("ICE LIBOR"), as published by Reuters (or
another commercially available source providing quotations of ICE LIBOR, as determined by the Administrative Agent from time to time for purposes of providing quotations of interest rates applicable to Dollar deposits in the London interbank market)
at approximately 11:00 a.m., London time, on the date that is two Business Days prior to the first day of such Interest Period and having a maturity equal to such Interest Period by (ii) a percentage equal to 1 minus the
stated maximum rate (stated as a decimal) of all reserves, if any, required to be maintained with respect to Eurocurrency funding (currently referred to as "Eurocurrency liabilities") as specified in Regulation D of the Board of Governors of the
Federal Reserve System (or against any other category of liabilities which includes deposits by reference to which the interest rate on LIBOR Loans is determined or any applicable category of extensions of credit or other assets which includes loans
by an office of any Lender outside of the United States of America). Any change in such maximum rate shall result in a change in LIBOR on the date on which such change in such maximum rate becomes effective.
	

 	
 	
"Interest Period" means with respect to each LIBOR Loan, each period commencing on the date such LIBOR Loan is made, or in the case of the continuation of a LIBOR Loan the last day of the preceding Interest Period for
such Loan, and ending 7 days thereafter or on the numerically corresponding day in the first, third or sixth calendar month thereafter, as the Borrower may select in a notice of borrowing, notice of continuation or notice of conversion, as the
case may be, except that each Interest Period (other than an Interest Period having a duration of 7 days) that commences on the last business day of a calendar month (or on any day for which there is no numerically corresponding day in the
appropriate subsequent calendar month) shall end on the last business day of the appropriate subsequent calendar month. Notwithstanding the foregoing: (i) if any Interest Period would otherwise end after the Maturity Date, such Interest Period
shall end on the Maturity Date; and (ii) each Interest Period that would otherwise end on a day which is not a business day shall end on the immediately following business day (or, if such immediately following business day falls in the next
calendar month, on the immediately preceding business day).

 

  

 

					
	

  
	 	 	 $1,000,000,000 Senior Unsecured Bridge Loan	 	Page 4
	

Confidential
 

 

 

 

  

					
	

  
	 	 	"Base Rate" means the LIBOR Market Index Rate; provided, that if for any reason the LIBOR Market Index Rate is unavailable, Base Rate shall mean the per annum rate of interest equal to the Federal Funds Rate plus one and
one-half of one percent (1.50%).
	

 	
 	
"LIBOR Market Index Rate" means, for any day, LIBOR as of that day that would be applicable for a LIBOR Loan having a one-month Interest Period determined at approximately 11:00 a.m. Eastern Standard time for such
day (or if such day is not a business day, the immediately preceding business day). The LIBOR Market Index Rate shall be determined on a daily basis.
	

 	
 	
Interest will be payable monthly, computed on the actual days elapsed in a 360 day year.
	

 	
 	
Bridge Loan documentation will include customary provisions (a) protecting the Lenders against increased costs or loss of yield resulting from changes in reserve, tax, capital adequacy and other requirements of law,
 and (b) indemnifying the Lenders for breakage costs incurred in connection with, among other things, any failure to borrow a LIBOR loan, or any repayment of a LIBOR loan on a day other than the last day of an interest period with respect
thereto. While an event of default exists, the interest rate on all outstanding obligations will be equal to the Base Rate plus the Applicable Margin plus 2.0%. The loan documentation will contain customary provisions addressing the Foreign Account
Tax Compliance Act.
	
CERTAIN FEES:	
 	
As set forth in Exhibit A.
	
FINANCIAL COVENANTS:	
 	
Same as, and limited to those contained in, the Existing Credit Facility.
	
OTHER COVENANTS:	
 	
Same as, and limited to those contained in, the Existing Credit Facility.
	
REPORTING REQUIREMENTS:	
 	
Same as, and limited to those contained in, the Existing Credit Facility.
	
INDEMNIFICATION:	
 	
Same as Existing Credit Facility.

 

  

 

					
	

  
	 	 	 $1,000,000,000 Senior Unsecured Bridge Loan	 	Page 5
	

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	CONDITIONS PRECEDENT TO FUNDING:	 	Limited to those conditions set forth in Section 1(c) of the Commitment Letter, plus the conditions set forth below (the date upon which all such conditions precedent to funding shall be satisfied and the funding of
the Bridge Loan occurs, the "Closing Date"):
	

 	
 	
 1.	
 	
 The Administrative Agent shall have received (a) customary legal opinions as reasonably required by the Administrative Agent, (b) evidence of authorization and organizational documents with respect to the
Borrower and the Guarantors (if any) consisting of (i) applicable certificates or articles of incorporation, formation, organization, limited partnership or other comparable organizational instrument of the Borrower and each Guarantor (if any)
certified by the secretary of state, (ii) incumbency certificate for the Borrower and each Guarantor (if any), (iii) copies of applicable organizational documents of the Borrower and each Guarantor (if any) certified by an officer of the
Borrower or such Guarantor (if any), as applicable and (iv) customary good standing certificates (with respect to the applicable jurisdiction of incorporation or organization of the Borrower and each Guarantor (if any)), (c) customary
insurance certificates or other evidence of insurance coverage and (d) a customary borrowing notice.
	

 	
 	
 2.	
 	
 The substantially concurrent consummation of the Acquisition on or prior to the Closing Date in accordance in all material respects with that certain Agreement and Plan of Merger, dated as of August 30, 2014
(such agreement, including all exhibits and schedules thereto, the "Acquisition Agreement"), by and among Select Income REIT, a wholly owned subsidiary of Select Income REIT that is a Maryland limited liability company and Cole Corporate Income Trust,
 Inc. (the "Acquisition Company"), without amendment, modification or waiver thereof or any consent thereunder (including any change in the definition of Company Material Adverse Effect or the lender protective provisions or in the purchase
price (excluding any adjustments provided for in the Acquisition Agreement but including, without limitation, any material increase in the purchase price in relation to a Superior Proposal (as defined in the Acquisition Agreement) pursuant to
Section 6.3 of the Acquisition Agreement) which is materially adverse to the Lenders (unless consented to by the Arrangers)).

 

  

 

					
	

  
	 	 	 $1,000,000,000 Senior Unsecured Bridge Loan	 	Page 6
	

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	 	 	 3.	 	 (a) Except as set forth in (i) the publicly available Company SEC Documents (as defined in the Acquisition Agreement) filed with or furnished to the Securities Exchange Commission, as have been amended since the
time of their filing with the Securities Exchange Commission on or after January 1, 2012 and prior to the date of the Acquisition Agreement (excluding any risk factor disclosure and disclosure of risks or other matters included in any "forward
looking statements" disclaimer or other statements that are cautionary, predictive or forward looking in nature); provided, that the applicability of any such document to the following is reasonably apparent on its face; and (ii) the disclosure
letter delivered by the Target to the Borrower immediately prior to the execution of the Acquisition Agreement (it being agreed that any disclosure set forth in such disclosure letter shall only qualify or modify the following to the extent (and only
to the extent) it is reasonably apparent from the face of such disclosure that such disclosure also qualifies or modifies the following): from January 1, 2014 through the date of the Acquisition Agreement, there has not been any Company Material
Adverse Effect (as defined in the Acquisition Agreement) or any change, effect, development, circumstance, condition, state of facts, event or occurrence, which, individually or in the aggregate, has had, or would reasonably be expected to have, a
Company Material Adverse Effect and (b) since the date of the Acquisition Agreement through the closing of the Acquisition, there shall not have occurred any event, change, effect or development that, individually or in the aggregate, has had or
would reasonably be expected to have a Company Material Adverse Effect.

 

  

 

					
	

  
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	 	 	"Company Material Adverse Effect" means any event, circumstance, change, state of fact, development or effect that individually or in the aggregate with any other event(s), circumstance(s), change(s), state(s) of fact,
development(s) or effect(s) (a) is or would reasonably be expected to be material and adverse to the business, assets, properties, liabilities, operations, financial condition or results of operations of the Acquisition Company and the Company
Subsidiaries (as defined in the Acquisition Agreement), taken as a whole or (b) will, or would reasonably be expected to, prevent or materially impair or delay the ability of the Acquisition Company to consummate the Acquisition before the
Outside Date (as defined in the Acquisition Agreement); provided, however, that for purposes of clause (a) of this definition, "Company Material Adverse Effect" shall not include any event, circumstance, change, state of fact,
development or effect, and any such event, circumstance, change, state of fact, development or effect shall not be taken into account when determining whether a Company Material Adverse Effect has occurred or is reasonably likely to occur, in each
case to the extent arising out of or resulting from (i) any failure, in and of itself, of the Acquisition Company to meet any internal or external projections or forecasts or any decrease, in and of itself, in the net asset value of the Company
Common Stock (as defined in the Acquisition Agreement) (it being understood and agreed that any event, circumstance, change, state of fact, development or effect giving rise or contributing to such failure or decrease may constitute or otherwise be
taken into account in determining whether there has been a Company Material Adverse Effect), (ii) any changes in the general conditions that affect the commercial real estate industry, (iii) any change in the United States or global economy
or capital, financial or securities markets generally, including changes in interest or exchange rates, (iv) any adoption, implementation, promulgation, repeal, modification, amendment, reinterpretation, change or proposal of any applicable Law
(as defined in the Acquisition Agreement) of or by any Governmental Entity (as defined in the Acquisition Agreement) after the date hereof, (v) the commencement, escalation or worsening of a war or armed hostilities or the occurrence of acts of
terrorism or sabotage, (vi) the negotiation, execution or announcement of the Acquisition Agreement, or the consummation or anticipation of the Acquisition or the other Transactions (as defined in the Acquisition Agreement), other than for
purposes of Section 4.5 and Section 8.2(a) of the Acquisition Agreement to the extent related to Section 4.5 of the Acquisition Agreement, (vii) the taking of any action expressly required by, or the failure to take any action
expressly prohibited by, the Acquisition Agreement, (viii) earthquakes, hurricanes, floods or other natural disasters, (ix) any damage or destruction of any Company Property (as defined in the Acquisition Agreement) that (A) is
substantially covered by insurance and (B) does not give rise to the right of any tenant to terminate its lease of such Company Property or any significant portion thereof, or (x) changes in GAAP or the interpretation thereof, which in the
case of each of clauses (ii), (iii), (iv), (v), (viii), (ix) and (x) do not disproportionately affect the Acquisition Company and the Company Subsidiaries, taken as a whole, relative to other companies operating in the industries in
which the Acquisition Company and the Company Subsidiaries operate.

 

  

 

					
	

  
	 	 	 $1,000,000,000 Senior Unsecured Bridge Loan	 	Page 8
	

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	 	 	 4.	 	 To the extent reasonably requested at least 10 business days prior to the Closing Date, the Administrative Agent shall have received at least three business days prior to the Closing Date all documentation and other
information with respect to the Borrower and the Guarantors (if any) that the Administrative Agent or the Arrangers reasonably determine is required by U.S. regulatory authorities under applicable "know your customer" and anti-money laundering rules
and regulations, including the PATRIOT Act.
	

 	
 	
 5.	
 	
 The Arrangers shall have received (a) audited financial statements for the Target for the fiscal year most recently ended at least 90 days before the Closing Date (without any qualified opinion thereon) and
(b) to the extent available, unaudited financial statements for the Target for each completed fiscal quarter since the date of such audited financial statements ending at least 45 days before the Closing Date, which shall be prepared in
accordance with, or reconciled to, U.S. generally accepted accounting principles.
	

 	
 	
 6.	
 	
 The Specified Representations shall be true and correct in all material respects as of the Closing Date.
	

 	
 	
 7.	
 	
 The Acquisition Agreement Representations shall be true and correct in all respects as of the Closing Date except to the extent that the Borrower would not have the right to terminate its obligations under the
Acquisition Agreement as a result of a breach of such representations in the Acquisition Agreement.
	
REPRESENTATIONS AND WARRANTIES:	
 	
Subject in all respects to the Certain Funds Provisions, same as, and limited to those contained in, the Existing Credit Facility.
	
EVENTS OF DEFAULT:	
 	
Same as, and limited to those contained in, the Existing Credit Facility.
	
ASSIGNMENTS/ PARTICIPATIONS:	
 	
Same as Existing Credit Facility; provided that, notwithstanding any other provision in the Operative Documents, with respect to any assignment to any Lender, no Commitment Party (as defined in the Commitment
Letter) shall be relieved, released or novated from its obligations under the Commitment Letter (including its obligation to fund the Facility on the Closing Date) in connection with any syndication or assignment of the Facility to any Lender,
including its commitments in respect thereof, until after the Closing Date has occurred.
	
WAIVERS AND AMENDMENTS:	
 	
Same as Existing Credit Facility.
	
EXPENSES:	
 	
The Borrower will pay all reasonable and documented out-of-pocket costs and expenses associated with the preparation, due diligence, administration, syndication and enforcement of all documentation executed in
connection with the Bridge Loan, including, without limitation, the reasonable and documented legal fees of Shearman & Sterling LLP, counsel to the Administrative Agent and the Arrangers, regardless of whether or not the Bridge Loan is
closed. The Borrower will also pay the reasonable and documented expenses of each Lender in connection with the "workout" or enforcement of any loan documentation for the Bridge Loan.
	
GOVERNING LAW:	
 	
New York.

 

  

 

					
	

  
	 	 	 $1,000,000,000 Senior Unsecured Bridge Loan	 	Page 9
	

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	OTHER:	 	Subject in all respects to the Certain Funds Provisions, the definitive documentation for the Bridge Loan shall include customary representations regarding anti-corruption laws, and, consistent with the Existing Credit
Facility, waivers by each party to its right to trial by jury and submission by each party to State of New York jurisdiction.

 

  

 

					
	

  
	 	 	 $1,000,000,000 Senior Unsecured Bridge Loan	 	Page 10
	

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  EXHIBIT A    
    
    PRICING GRID    
    

 

											
	RATINGS: S&P AND

MOODY'S 	 	THE

GREATER OF

A- AND

A3 	 	THE

GREATER OF

BBB+ AND

BAA1 	 	THE

GREATER OF

BBB AND

BAA2 	 	THE

GREATER OF

BBB- AND

BAA3 	 	BELOW

BOTH

BBB- AND

BAA3 
	 LEVEL
	 	Level I	 	Level II	 	Level III	 	Level IV	 	Level V
	 APPLICABLE MARGIN *
	 	112.5	 	122.5	 	140.0	 	175.0	 	215.0

 

 	*
	:        In
basis points per annum 

 

 All
margins and fees change as of the first day of the month following the rating classification changes. 

 

  

			
	FUNDING FEE:	 	 35 bps due to the Lenders on their respective commitment amounts funded at the closing of the Bridge Loan, due and payable on the Closing Date (if the Closing Date occurs).
	
DURATION FEE:	
 	
 The Borrower will pay to the Lenders pro rata based on each Lender's outstanding principal amount of the Bridge Loan at the applicable time, (a) 25 bps on the outstanding principal amount of the Bridge Loan on
the 90th day following the Closing Date, (b) 50 bps on the outstanding principal amount of the Bridge Loan on the 180th day following the Closing Date, and (c) 75 bps on the outstanding principal amount of
the Bridge Loan on the 270th day following the Closing Date.
	
TICKING FEE:	
 	
 The Borrower will pay to the Administrative Agent, for the account of the applicable Lenders, a ticking fee, which shall accrue from January 2, 2015 to the date such ticking fee is paid, in an amount equal to
0.20% per annum of the average daily aggregate amount of unused commitments of the Lenders that have any such unused commitments in respect of the Facility, earned on the date of the acceptance by the Company of the Commitment Letter, and due and
payable on the earlier to occur of (i) the Closing Date, and (ii) March 31, 2015.

 

  

 

					
	

  
	 	 	 $1,000,000,000 Senior Unsecured Bridge Loan	 	Page 11
	

Confidential
 

 

 

 
 

  EXHIBIT B    
    
    FORM OF SOLVENCY CERTIFICATE    
    

[    ·    ], 20     

        This
Solvency Certificate is being executed and delivered pursuant to Section
[    ·    ] of that certain
[    ·    ](1) (the "Loan Agreement"); the
terms defined therein being used herein as therein defined. 

        I,
[    ·    ], the [chief financial officer/equivalent
officer] of the Borrower, in such capacity and not in an individual capacity, hereby certify that I am the [chief financial officer/equivalent officer] of the
Borrower and that I am generally familiar with the businesses and assets of the Borrower and its Subsidiaries (taken as a whole), I have made such other investigations and inquiries as I have deemed
appropriate and I am duly authorized to execute this Solvency Certificate on behalf of the Borrower pursuant to the Loan Agreement. 

        I
further certify, in my capacity as [chief financial officer/equivalent officer] of the Borrower, and not in my individual capacity, as of the date hereof and
after giving effect to the [Transactions] and the incurrence of the indebtedness and obligations being incurred in connection with the Loan Agreement and the
[Transactions], that, (i) the sum of the debt (including contingent liabilities) of the Borrower and its Subsidiaries, taken as a whole, does not exceed the present fair
saleable value of the assets (at a fair valuation) of the Borrower and its Subsidiaries, taken as a whole; (ii) the capital of the Borrower and its Subsidiaries, taken as a whole, is not
unreasonably small in relation to the business of the Borrower and its Subsidiaries, taken as a whole, contemplated as of the date hereof; and (iii) the Borrower and its Subsidiaries, taken as
a whole, do not intend to incur, or believe that they will incur, debts including current obligations beyond their ability to pay such debt as they mature in the ordinary course of business. 

[Remainder
of page intentionally left blank] 

	(1)
	Describe the Credit Agreement

 

					
	

  
	 	 	 $1,000,000,000 Senior Unsecured Bridge Loan	 	Page 12
	

Confidential
 

 

 

        IN
WITNESS WHEREOF, I have executed this Solvency Certificate on the date first written above. 

 

					
	

 	
 	
  By:	
 	
  

 
	 	 	 	 	Name: [·]
	 	 	 	 	Title: [·]

 

  

 

					
	

  
	 	 	 $1,000,000,000 Senior Unsecured Bridge Loan	 	Page 13
	

Confidential
 

 

 

QuickLinks

Exhibit 10.3

LETTER AMENDMENT

Annex I

Summary of Terms and Conditions SELECT INCOME REIT $1,000,000,000 Senior Unsecured Bridge Loan

EXHIBIT A PRICING GRID

EXHIBIT B FORM OF SOLVENCY CERTIFICATEEX-10.1

 JOINDER AGREEMENT 

THIS JOINDER AGREEMENT, dated as of December 18, 2014 (this “Agreement”), by and among BARCLAYS BANK PLC
(“Barclays”), GOLDMAN SACHS BANK USA (“Goldman Sachs”), MORGAN STANLEY SENIOR FUNDING, INC. (“MSSF”), MORGAN STANLEY BANK, N.A. (“MSB” and together with
MSSF, “Morgan Stanley”), JPMORGAN CHASE BANK, NATIONAL ASSOCIATION (“JPMorgan”), BANK OF AMERICA, N.A. (“Bank of America”), and CITIBANK, N.A. (“Citi”) (each an
“Incremental Lender” and collectively the “Incremental Lenders”), TERRAFORM POWER OPERATING, LLC, a Delaware limited liability company (“Borrower”), TERRAFORM POWER, LLC, a Delaware
limited liability company (“Holdings”), and CERTAIN SUBSIDIARIES OF BORROWER, as Guarantors, and Goldman Sachs, as Administrative Agent. 

RECITALS: 

WHEREAS, reference is hereby made to the Credit and Guaranty Agreement, dated as of July 23, 2014 (as amended by that
certain First Amendment to Credit and Guaranty Agreement dated as of August 25, 2014, and as may be further amended, restated, supplemented or otherwise modified from time to time, the “Credit Agreement”; the terms defined
therein and not otherwise defined herein being used herein as therein defined), by and among Borrower, the Lenders party thereto from time to time, Goldman Sachs, as Administrative Agent and as Collateral Agent, and the other Persons party thereto;
and 
 WHEREAS, subject to the terms and conditions of the Credit Agreement, Borrower may increase the existing Revolving
Commitments and/or obtain New Term Loan Commitments by entering into one or more Joinder Agreements with the New Revolving Loan Lenders and/or New Term Loan Lenders, as applicable. 

NOW, THEREFORE, in consideration of the premises and agreements, provisions and covenants herein contained, the parties hereto agree as
follows: 
 1. Approval of Credit Documents. Each Incremental Lender (i) confirms that it has received a copy of the Credit Agreement and
the other Credit Documents, together with copies of the financial statements referred to therein and such other documents and information as it has deemed appropriate to make its own credit analysis and decision to enter into this Agreement and it
is sophisticated with respect to decisions to make loans similar to those contemplated to be made hereunder and it is experienced in making loans of such type; (ii) agrees that it will, independently and without reliance upon Administrative
Agent or any other Lender or Agent and based on such documents and information as it shall deem appropriate at the time, continue to make its own credit decisions in taking or not taking action under the Credit Agreement; (iii) appoints and
authorizes Administrative Agent and Collateral Agent to take such action as agent on its behalf and to exercise such powers under the Credit Agreement and the other Credit Documents as are delegated to Administrative Agent and Collateral Agent, as
the case may be, by the terms thereof, together with such powers as are reasonably incidental thereto; and (iv) agrees that it is a Lender under the Credit Agreement and will perform in accordance with its terms all of the obligations which by
the terms of the Credit Agreement are required to be performed by it as a Lender. 

  
 1 

 2. Commitment. Each Incremental Lender hereby severally agrees to commit to provide its respective New
Revolving Loan Commitment and New Term Loan Commitment (the New Term Loans thereunder, each a “Series A New Term Loan”) as set forth on Schedule A annexed hereto, on the terms and subject to the conditions set forth below, on
the Incremental Closing Date. 
 3. Amendment to Section 1.1 of the Credit Agreement. Section 1.1 of the Credit Agreement is hereby amended
as follows: 
  

	 	a.	by amending and restating the definition of “Applicable Margin” in its entirety to read as follows: 

“Applicable Margin” means: 

(i) except as otherwise provided in this definition, (a) with respect to Base Rate Loans, 2.75% per annum and (b) with
respect to Eurodollar Rate Loans, 3.75% per annum; 
 (ii) prior to the Trigger Date, (a) with respect to Base Rate Loans
that are Series A New Term Loans, 3.00% per annum, and (b) with respect to Eurodollar Rate Loans that are Series A New Term Loans, 4.00% per annum; 

(iii) on and after the Trigger Date, (a) with respect to Base Rate Loans that are Series A New Term Loans, 4.00% per annum,
and (b) with respect to Eurodollar Rate Loans that are Series A New Term Loans, 5.00% per annum; 
 (iv) on and after the
Trigger Date until the fourteenth day following the Trigger Date, (a) with respect to Base Rate Loans that are Closing Date Term Loans, 3.375% per annum, and (b) with respect to Eurodollar Rate Loans that are Closing Date Term
Loans, 4.375% per annum; and 
 (v) on and after the fifteenth day following the Trigger Date, (a) with respect to Base
Rate Loans that are Closing Date Term Loans, 4.125% per annum, and (b) with respect to Eurodollar Rate Loans that are Closing Date Term Loans, 5.125% per annum, 

in each case of clauses (iii) through (v) plus (x) an additional 0.25% per annum from and after April 27, 2015
and (y) an additional 0.25% per annum if, at any time, either (1) Moody’s downgrades the Borrower’s corporate credit rating below Ba3 or (2) S&P downgrades the Borrower’s corporate credit rating below
BB-; and 
  

	 	b.	by adding the following definitions in proper alphabetical sequence: 

 “Incremental
Arrangers” means Barclays, Goldman Sachs, Morgan Stanley Senior Funding, Inc., J.P. Morgan Securities LLC, Merrill Lynch, Pierce, Fenner & Smith Incorporated (or any of its designated affiliates) and Citigroup. 

 “Trigger Date” means February 15, 2015 or such later date as may be agreed
by all Incremental Arrangers. 
 4. Principal Payments. Borrower shall make principal payments on the Series A New Term Loans in consecutive
quarterly installments and at final maturity on the dates and in the amounts set forth below, commencing March 31, 2015: 
  

					
	 Payment Date
	  	Scheduled
Repayment of
Series A New Term Loans	 
	 March 31, 2015
	  	$	687,500	  
	 June 30, 2015
	  	$	687,500	  
	 September 30, 2015
	  	$	687,500	  
	 December 31, 2015
	  	$	687,500	  
	 March 31, 2016
	  	$	687,500	  
	 June 30, 2016
	  	$	687,500	  
	 September 30, 2016
	  	$	687,500	  
	 December 31, 2016
	  	$	687,500	  
	 March 31, 2017
	  	$	687,500	  
	 June 30, 2017
	  	$	687,500	  
	 September 30, 2017
	  	$	687,500	  
	 December 31, 2017
	  	$	687,500	  
	 March 31, 2018
	  	$	687,500	  
	 June 30, 2018
	  	$	687,500	  
	 September 30, 2018
	  	$	687,500	  
	 December 31, 2018
	  	$	687,500	  
	 March 31, 2019
	  	$	687,500	  
	 June 30, 2019
	  	$	687,500	  
	 Maturity Date
	  	 	Remainder	  

 5. Voluntary and Mandatory Prepayments. Scheduled installments of principal of the Series A New Term Loans set
forth above shall be reduced in connection with any voluntary or mandatory prepayments of the Series A New Term Loans in accordance with Sections 2.13, 2.14 and 2.15 of the Credit Agreement, as applicable. 

6. Prepayment Fees. Subject to paragraph 9 below, Borrower agrees to pay to each New Term Loan Lender the following prepayment fees: 

 In the event that all or any portion of the Series A New Term Loans are (i) repaid, prepaid, refinanced or replaced through the
incurrence of any bank loan debt financing having an effective interest cost or weighted average yield that is less than the effective 

 
interest cost or weighted average yield of the Series A New Term Loans (or portion thereof) so repaid, prepaid, refinanced or replaced or (ii) repriced or effectively refinanced in
connection with any waiver, consent or amendment directed at, or the result of which would be, the lowering of the effective interest cost or the weighted average yield of the Series A New Term Loans (each of (i) and (ii), a “Repricing
Transaction”)) on or prior to the six-month anniversary of the Incremental Closing Date, such repayment, prepayment, refinancing, replacement or repricing will be made at 101.0% of the principal amount so repaid, prepaid, refinanced,
replaced or repriced. If all or any portion of the Series A New Term Loans held by any Lender is repaid, prepaid, refinanced or replaced pursuant to Section 2.23 of the Credit Agreement on or prior to the six-month anniversary of the
Incremental Closing Date as a result of, or in connection with, such Lender not agreeing or otherwise consenting to any waiver, consent or amendment referred to in clause (ii) above (or otherwise in connection with a Repricing Transaction),
such repayment, prepayment, refinancing or replacement will be made at 101.0% of the principal amount so repaid, prepaid, refinanced or replaced. 

Prior to the Trigger Date, any reference to Section 2.13(c) of the Credit Agreement in any Credit Document will be deemed to include a
reference to paragraph 6 of this Agreement. 
 7. Other Fees. Borrower agrees to pay on the Incremental Closing Date to each New Revolving
Loan Lender a non-refundable closing fee in an amount equal to 1.25% of the stated principal amount of such New Revolving Loan Lender’s New Revolving Loan Commitment.  

8. Use of Proceeds. The proceeds of the Series A New Term Loans will be used (a) to fund the acquisitions previously identified to the
Commitment Parties (as defined in the Commitment Letter referred to on Annex B hereto) as the Q4 Acquisitions or any other acquisition agreed to by the Incremental Arrangers; and (b) to pay related fees and expenses. 

9. Trigger Date Modifications. On the Trigger Date, the following terms shall change automatically: 

 

	 	a.	 the prepayment fees applicable to the Series A New Term Loans as set forth in paragraph 6 hereof will be adjusted such that in the event that all or
any portion of the Series A New Term Loans is (i) repaid, prepaid, refinanced or replaced through the incurrence of any debt financing having an effective interest cost or weighted average yield that is less than the effective interest cost or
weighted average yield of the Series A New Term Loans (or portion thereof) so repaid, prepaid, refinanced or replaced or (ii) repriced or effectively refinanced in connection with any waiver, consent or amendment directed at, or the result of
which would be, the lowering of the effective interest cost or the weighted average yield of the Series A New Term Loans (each of (i) and (ii), a “Trigger Date Incremental Repricing Transaction”)) on or prior to the first
anniversary of the Trigger Date, such repayment, prepayment, refinancing, replacement or repricing will be made at 101.0% of the principal amount so repaid, prepaid, refinanced, replaced or repriced. If all or any portion of the Series A New Term
Loans held by any Lender is repaid, prepaid, refinanced or replaced pursuant to Section 2.23 of the Credit Agreement on or prior to the six-month anniversary of the Trigger Date as a result of, or in connection with, such Lender not

	 	
agreeing or otherwise consenting to any waiver, consent or amendment referred to in clause (ii) above (or otherwise in connection with a Trigger Date Incremental Repricing Transaction), such
repayment, prepayment, refinancing or replacement will be made at 101.0% of the principal amount so repaid, prepaid, refinanced or replaced; 

  

	 	b.	an additional mandatory prepayment requirement will be added to Section 2.14 of the Credit Agreement such that on the date of receipt by Holdings of any Net Equity Proceeds from the issuance of Equity Interests by
Holdings, Borrower shall prepay the Series A New Term Loans in an aggregate amount equal to 100% of such Net Equity Proceeds; 

  

	 	c.	any reference to Section 2.13(c) of the Credit Agreement in any Credit Document will deemed to include paragraph 9(a) of this Agreement; and 

 

	 	d.	the reference to “Sections 2.14(a) through 2.14(c)” in Section 2.14 of the Credit Agreement will be deemed to include paragraph 9(b) of this Agreement. 

10. Proposed Borrowing. This Agreement represents Borrower’s request to borrow Series A New Term Loans from the New Term Loan Lenders as follows
(the “Proposed Borrowing”): 
  

							
	a.	  	Business Day of Proposed Borrowing: December 18, 2014
		
	b.	  	Amount of Proposed Borrowing: $275,000,000
				
	c.	  	Interest rate option:	 	     ̈    a.	 	Base Rate Loan(s)
				
		  		 	    x    b.	 	 Eurodollar Rate Loans
with an initial Interest
Period of 1 month

 11. Weighted Average Yield. The Weighted Average Yield applicable to the Series A New Term Loans, as determined by
Borrower and the New Term Loan Lenders, will be: 
  

	 	a.	on the Incremental Closing Date, (a) with respect to Base Rate Loans, 3.00% per annum, and (b) with respect to Eurodollar Rate Loans, 4.00% per annum; 

 

	 	b.	on the Trigger Date, (a) with respect to Base Rate Loans, 4.00% per annum, and (b) with respect to Eurodollar Rate Loans, 5.00% per annum; and 

 

	 	c.	on the fifteenth day following the Trigger Date, (a) with respect to Base Rate Loans, 4.75% per annum, and (b) with respect to Eurodollar Rate Loans, 5.75% per annum, 

in each case of clauses (b) and (c), plus an additional 0.25% per annum if, at any time, either (1) Moody’s downgrades the
Borrower’s corporate credit rating below Ba3 or (2) S&P downgrades the Borrower’s corporate credit rating below BB-. 
 12.
Security. The Series A New Term Loans will be secured by the Collateral on a pari passu basis with the Closing Date Term Loans. 

 13. New Lenders. Each of Morgan Stanley and Bank of America (each, a “New Lender”)
acknowledges and agrees that upon its execution of this Agreement such New Lender shall become a “Lender” under, and for all purposes of, the Credit Agreement and the other Credit Documents, and shall be subject to and bound by the terms
thereof, and shall perform all the obligations of and shall have all rights of a “Lender” thereunder. 
 14. Credit Agreement
Governs. This Agreement is a Credit Document. The Series A New Term Loans hereunder are “New Term Loans” made pursuant to (and as defined in) Section 2.24 of the Credit Agreement and, pursuant to Section 2.24 of the
Credit Agreement, the terms and provisions of the Series A New Term Loans shall, except as otherwise set forth in the Credit Agreement or in this Agreement, be identical to the terms and provisions of the Closing Date Term Loans. For the avoidance
of doubt, the Adjusted Eurodollar Rate with respect to the Series A New Term Loans shall at no time be less than 1.00% per annum. Loans under the New Revolving Loan Commitments hereunder are “New Revolving Loans” made pursuant
to (and as defined in) Section 2.24 of the Credit Agreement and, pursuant to Section 2.24 of the Credit Agreement, the terms and provisions of the New Revolving Loans shall be identical to the Revolving Loans. All obligations in respect of
the Series A New Term Loans, the New Revolving Loan Commitments and the New Revolving Loans are and shall be “Obligations” pursuant to and as defined in the Credit Agreement, and are and shall be secured pursuant to the Collateral
Documents. 
 15. Borrower’s Certifications. By its execution of this Agreement, the undersigned officer and Borrower hereby certify
that: 
  

	 	a.	The representations and warranties contained in the Credit Agreement and the other Credit Documents are true and correct in all material respects on and as of the date hereof to the same extent as though made on and as
of the date hereof, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties were true and correct in all material respects on and as of such earlier date;
provided that, in each case, 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.	No event has occurred and is continuing or would result from the consummation of the Proposed Borrowing contemplated hereby that would constitute a Default or an Event of Default; and 

 

	 	c.	Borrower has performed in all material respects all agreements and satisfied all conditions which the Credit Agreement provides shall be performed or satisfied by it on or before the date hereof. 

16. Borrower Covenant. By its execution of this Agreement, Borrower hereby covenants to make any payments required pursuant to
Section 2.18(c) of the Credit Agreement in connection with the New Revolving Loan Commitments. 

 17. Conditions to Effectiveness. The effectiveness of this Agreement is subject to the satisfaction
of the conditions set forth on Schedule B annexed hereto (the date on which all such conditions are satisfied and the Series A New Term Loans are funded, the “Incremental Closing Date”). The provisions hereof related to the
New Term Loan Commitments shall become effective immediately prior to the effectiveness of the provisions related to the New Revolving Loan Commitments. 

18. Eligible Assignee. By its execution of this Agreement, each Incremental Lender represents and warrants that it is an Eligible Assignee.

 19. Notice. For purposes of the Credit Agreement, the initial notice address of each New Lender shall be as set forth below its
signature below. 
 20. Non-US Lenders. For each New Lender that is a Non-US Lender, delivered herewith to Administrative Agent are
such forms, certificates or other evidence with respect to United States federal income tax withholding matters as such New Lender may be required to deliver to Administrative Agent pursuant to Section 2.20(c) of the Credit Agreement.

 21. Recordation of the New Loans. Upon execution and delivery hereof, Administrative Agent will record the Series A New Term Loans made
by New Term Loan Lenders and the New Revolving Loans made by the New Revolving Loan Lenders, if any, in the Register. 
 22. Amendment,
Modification and Waiver. This Agreement may not be amended, modified or waived except by an instrument or instruments in writing signed and delivered on behalf of each of the parties hereto. 

23. Entire Agreement. This Agreement, the Credit Agreement and the other Credit Documents constitute the entire agreement among the parties with
respect to the subject matter hereof and thereof and supersede all other prior agreements and understandings, both written and verbal, among the parties or any of them with respect to the subject matter hereof. 

24. GOVERNING LAW. THIS AGREEMENT AND THE RIGHTS AND OBLIGATIONS OF THE PARTIES HEREUNDER (INCLUDING, WITHOUT LIMITATION, ANY CLAIMS SOUNDING IN
CONTRACT LAW OR TORT LAW ARISING OUT OF THE SUBJECT MATTER HEREOF AND ANY DETERMINATIONS WITH RESPECT TO POST-JUDGMENT INTEREST) SHALL BE GOVERNED BY, AND SHALL BE CONSTRUED AND ENFORCED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK WITHOUT
REGARD TO CONFLICT OF LAWS PRINCIPLES THEREOF THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK. 

25. Severability. In case any provision in or obligation hereunder or under any other Credit Document shall be invalid, illegal or unenforceable
in any jurisdiction, the validity, legality and enforceability of the remaining provisions or obligations, or of such provision or obligation in any other jurisdiction, shall not in any way be affected or impaired thereby. 

26. Counterparts. This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an
original, but all such counterparts together shall constitute but one and the same instrument. 
 [Remainder of page
intentionally left blank] 

 IN WITNESS WHEREOF, each of the undersigned has caused its duly authorized officer to
execute and deliver this Joinder Agreement as of December 18, 2014. 
  

			
	 GOLDMAN SACHS BANK USA, as an

Incremental Lender

		
	By:	 	 /s/ Charles D. Johnston

	Name:	 	Charles D. Johnston
	Title:	 	Authorized Signatory
	
	BARCLAYS BANK PLC, as an Incremental Lender
		
	By:	 	 /s/ Anne E. Sutton

	Name:	 	Ann E. Sutton
	Title:	 	Director
	
	MORGAN STANLEY SENIOR FUNDING, INC., as an Incremental Lender
		
	By:	 	 /s/ Henrik Sandstrom

	Name:	 	Henrik Sandstrom
	Title:	 	Authorized Signatory
	
	Notice Address:
	MS Loan Servicing
	1300 Thames Street Wharf
	Baltimore, MD 21231
	Telephone: 443-627-4355
	 Telecopier: 718-233-2140

msloanservicing@morganstanley.com

 
			
	MORGAN STANLEY BANK, N.A., as an Incremental Lender
		
	By:	 	 /s/ Reagan C. Philipp

	Name:	 	Reagan Philipp
	Title:	 	Authorized Signatory
	
	JPMORGAN CHASE BANK, NATIONAL ASSOCIATION, as an Incremental Lender
		
	By:	 	 /s/ Bridget Killackey

	Name:	 	Bridget Killackey
	Title:	 	Vice President
	
	BANK OF AMERICA, N.A., as an Incremental Lender
		
	By:	 	 /s/ Patrick Engel

	Name:	 	Patrick Engel
	Title:	 	Director
	
	Notice Address:
	
	NC1-007-17-18, 100 N. Tryon St.
	Charlotte, NC 28255-0001
	
	Attention: Patrick Engel
	Telephone: 980-386-3354
	Facsimile: 980-233-7097

 
			
	CITIBANK, N.A., as an Incremental Lender
		
	By:	 	 /s/ Kirkwood Roland

	Name:	 	Kirkwood Roland
	Title:	 	Director & Vice President

 
			
	TERRAFORM POWER, LLC
		
	By:	 	 /s/ Alejandro Hernandez

	Name:	 	Alejandro Hernandez
	Title:	 	Chief Financial Officer
	
	TERRAFORM POWER OPERATING, LLC
		
	By:	 	 TERRAFORM POWER, LLC,
 its Sole Member and
Sole Manager

		
	By:	 	 /s/ Alejandro Hernandez

	Name:	 	Alejandro Hernandez
	Title:	 	Chief Financial Officer

					
	 	  	 	  	SUNEDISON YIELDCO CHILE HOLDCO,
LLC
			
		  		  	SUNEDISON YIELDCO UK HOLDCO 2, LLC
			
		  		  	SUNEDISON YIELDCO UK HOLDCO 3, LLC
			
		  		  	SUNEDISON YIELDCO UK HOLDCO 4, LLC
			
		  		  	SUNEDISON YIELDCO NELLIS HOLDCO, LLC
			
		  		  	SUNEDISON CANADA YIELDCO, LLC
			
		  		  	SUNEDISON YIELDCO DG-VIII HOLDINGS, LLC
			
		  		  	SUNEDISON YIELDCO DG HOLDINGS, LLC
			
		  		  	SUNEDISON YIELDCO REGULUS HOLDINGS, LLC
			
		  		  	SUNEDISON YIELDCO ACQ1, LLC
			
		  		  	SUNEDISON YIELDCO ACQ2, LLC
			
		  		  	SUNEDISON YIELDCO ACQ3, LLC
			
		  		  	SUNEDISON YIELDCO ACQ4, LLC
			
		  		  	SUNEDISON YIELDCO ACQ5, LLC
			
		  		  	SUNEDISON YIELDCO ACQ6, LLC
			
		  		  	SUNEDISON YIELDCO ACQ7, LLC
			
		  		  	SUNEDISON YIELDCO ACQ8, LLC
			
		  		  	SUNEDISON YIELDCO ACQ9, LLC

 
			
	SUNEDISON YIELDCO, DGS HOLDINGS, LLC
	
	SUNEDISON YIELDCO, ENFINITY HOLDINGS, LLC
	
	TERRAFORM POWER IVS I HOLDINGS, LLC
	
	TERRAFORM REC ACQ HOLDINGS, LLC
	
	TERRAFORM SOLAR HOLDINGS, LLC
	
	TERRAFORM LPT ACQ HOLDINGS, LLC
	
	TERRAFORM UK1 ACQ HOLDINGS, LLC
	
	TERRAFORM CD ACQ HOLDINGS, LLC
	
	TERRAFORM SOLAR XVII ACQ HOLDINGS, LLC
		
	By:	 	TERRAFORM POWER OPERATING, LLC, its Sole Member and Sole Manager
		
	By:	 	 TERRAFORM POWER, LLC,
 its Sole Member and
Sole Manager

		
	By:	 	 /s/ Alejandro Hernandez

	Name:	 	Alejandro Hernandez
	Title:	 	Chief Financial Officer

 Consented to by: 
  

			
	 GOLDMAN SACHS BANK USA,
 as
Administrative Agent

		
	By:	 	 /s/ Charles D. Johnston

		 	Authorized Signatory

 SCHEDULE A 

TO JOINDER AGREEMENT 
 NEW TERM
LOAN COMMITMENTS 
  

							
	 Name of Lender
	  	 Type of Commitment
	  	Amount	 
	 Barclays Bank PLC
	  	New Term Loan Commitment	  	 	$45,833,333.34	  
	 Goldman Sachs Bank
	  	New Term Loan Commitment	  	 	$45,833,333.34	  
	 Morgan Stanley Senior Funding, Inc.
	  	New Term Loan Commitment	  	 	$45,833,333.33	  
	 JPMorgan Chase Bank, National Association
	  	New Term Loan Commitment	  	 	$45,833,333.33	  
	 Bank of America, N.A.
	  	New Term Loan Commitment	  	 	$45,833,333.33	  
	 Citibank, N.A.
	  	New Term Loan Commitment	  	 	$45,833,333.33	  
		  		  	  
	  
	 
		  	 	Total: $275,000,000	  
		  		  	  
	  
	 

 NEW REVOLVING LOAN COMMITMENTS 
  

							
	 Name of Lender
	  	 Type of Commitment
	  	Amount	 
	 Barclays Bank PLC
	  	New Revolving Loan Commitment	  	 	$  4,166,666.67	  
	 Goldman Sachs Bank
	  	New Revolving Loan Commitment	  	 	$  4,166,666.67	  
	 Morgan Stanley Bank, N.A.
	  	New Revolving Loan Commitment	  	 	$29,166,666.66	  
	 JPMorgan Chase Bank, National Association
	  	New Revolving Loan Commitment	  	 	$  4,166,666.67	  
	 Bank of America, N.A.
	  	New Revolving Loan Commitment	  	 	$29,166,666.66	  
	 Citibank, N.A.
	  	New Revolving Loan Commitment	  	 	$  4,166,666.67	  
		  		  	  
	  
	 
		  	 	Total: $75,000,000	  
		  		  	  
	  
	 

 SCHEDULE B 

TO JOINDER AGREEMENT 
 CONDITIONS
PRECEDENT 
  

	1.	Payment of Fees and Expenses. All costs, fees, expenses (including, without limitation, legal fees and expenses) and other compensation contemplated by the Credit Agreement, the Incremental Facilities Commitment
Letter (the “Commitment Letter”) dated October 29, 2014 among the Borrower and the Commitment Parties (as defined therein), and the Fee Letter (as defined in the Commitment Letter) payable to the Commitment Parties, the
Administrative Agent or the Lenders shall, upon the initial borrowing of New Revolving Loans or Series A New Term Loans, have been, or will be substantially simultaneously, paid to the extent due. 

 

	2.	Q4 Acquisitions. The Q4 Acquisitions (other than any acquisition identified to the Commitment Parties as a “drop-down” acquisition) shall have been consummated or will be consummated substantially
concurrently with the funding of the Series A New Term Loans. 

  

	3.	Pro Forma Compliance; Leverage Ratio. Borrower shall be in pro forma compliance with the covenant set forth in Section 6.7(a) of the Credit Agreement as of the last day of the most recently ended Fiscal
Quarter after giving effect to the transactions contemplated by this Agreement. Borrower shall be in pro forma compliance with the covenant set forth in Section 6.7(b) of the Credit Agreement as of the last day of the most recently ended Fiscal
Quarter after giving effect to the New Term Loan Commitments (and, for the avoidance of doubt, prior to giving effect to the New Revolving Loan Commitments). After giving pro forma effect to the New Term Loan Commitments and any related
transactions, the Leverage Ratio shall not exceed 4.50:1.00. 

  

	4.	Definitive Documents; Customary Closing Conditions. The Commitment Parties shall be reasonably satisfied that each of the Borrower and the Guarantors has complied with the following customary closing conditions:
(i) the delivery of customary legal opinions, corporate records and documents from public officials and officer’s certificates; (ii) evidence of authority; (iii) obtaining material third party and material governmental consents
necessary in connection with the Q4 Acquisitions, the related transactions or the financing thereof; (iv) absence of material litigation or material regulatory action adversely affecting the Q4 Acquisitions, the related transactions and the
financing thereof; (v) execution of this Agreement; (vi) delivery of a reaffirmation agreement; (vii) a solvency certificate substantially in the form delivered previously pursuant to the Credit Agreement, certifying that the Borrower
and the Guarantors are, on a consolidated basis after giving effect to the transactions contemplated hereby, solvent; (viii) notice requesting the New Revolving Loan Commitments and the New Term Loan Commitments; and (ix) each Incremental
Lender shall have received at least 5 business days prior to the Incremental Closing Date all documentation and other information required by bank regulatory authorities under applicable “know-your-customer” and anti-money laundering rules
and regulations, including the Patriot Act to the extent requested at least 10 days prior to the Incremental Closing Date. 

	5.	Funding Notice. Administrative Agent shall have received a fully executed and delivered Funding Notice executed by an Authorized Officer in accordance with Section 2.1(b) of the Credit Agreement.

  

	6.	Total Utilization of Revolving Commitments. After making the Credit Extensions requested on the Incremental Closing Date, the Total Utilization of Revolving Commitments shall not exceed the Revolving Commitments
then in effect. 

  

	7.	Representations and Warranties. The representations and warranties contained in the Credit Agreement and in the other Credit Documents shall be true and correct in all material respects on and as of the
Incremental Closing Date to the same extent as though made on and as of that date, except to the extent such representations and warranties specifically relate to an earlier date, in which case such representations and warranties shall have been
true and correct in all material respects on and as of such earlier date; provided that, in each case, such materiality qualifier shall not be applicable to any representations and warranties that already are qualified or modified by
materiality in the text thereof. 

  

	8.	No Event of Default or a Default. No event shall have occurred and be continuing or would result from the effectiveness of this Agreement and the transactions to be consummated in connection therewith that would
constitute an Event of Default or a Default. 

  

	9.	No Material Adverse Change. Since March 28, 2014, no event has occurred that has resulted in or could reasonably be expected to result in a material adverse change in or effect on the general affairs,
management, financial position, shareholders’ equity or results of operations of the Borrower and its subsidiaries, as determined by the Incremental Arrangers in their discretion.

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