Document:

Amendment No. 1 to Amended and Restated Preferred Partnership Agreement

 Exhibit 10.40 

 

					
	 Confidential Document
	  	 	  	 Execution version

 

 AMENDMENT 1 TO 

AMENDED AND RESTATED PREFERRED PARTNERSHIP AGREEMENT 

THIS AMENDMENT 1 TO THE AMENDED AND RESTATED PREFERRED PARTNERSHIP AGREEMENT (this “Amendment”), dated as of
10 February 2012 (“Amendment Effective Date”), is executed and entered into by and between BrightSource Energy, Inc., a Delaware corporation (“BSE”), for itself and on behalf of BrightSource Industries (Israel)
Ltd. (“BSII”) (BSE and BSII may be referred to herein as “BrightSource”), and ALSTOM Power Inc. (“Alstom”), a Delaware corporation. BrightSource and Alstom are sometimes hereinafter referred to
individually as a “Party” and collectively as the “Parties”. 
 RECITALS

 A. BSE and Alstom have signed on 27th December 2010 the Amended and Restated Preferred
Partnership Agreement (the “PPA”). 
 B. The Parties have been contemplating to develop a
product in the market of plants combining a solar field with a gas turbine combined cycle plant or a gas turbine open cycle plant (hereinafter referred to as “Integrated Solar Combined Cycle” or “ISCC”). 

C. The Parties wish to amend the PPA in order to set forth their agreement relating to the Integrated Solar Combined
Cycle products and more particularly to those where steam production is based on the power tower solution. 
 NOW, THEREFORE, in
consideration of the foregoing and the mutual covenants, representations and warranties herein contained, the Parties, intending to be legally bound, hereby agree as follows: 

 
  

ARTICLE 1 

DEFINITIONS AND INTERPRETATION 
  

 
 Except as
defined herein all capitalized terms and expressions shall have the same meaning defined in the Agreement. 
 ISCC Project
Opportunities: shall refer to a proposed project involving the ISCC Tower Product, together with any Other Alstom-Based ISCC Project that is pursued jointly under Section 2.2 of this Amendment and any Other ISCC Project that is pursued
jointly under Section 2.3 of this Amendment. 

  
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 ISCC Tower Contract(s): shall refer to contracts signed between BSE and Alstom
and/or between any of their Affiliates covering ISCC Project Opportunities. 
 ISCC Tower Product(s): shall refer to
power tower concentrating solar thermal plant based on sub-critical direct steam generation to be integrated by Alstom with KAxx combined cycle turn-key plants with the GT24, GT26 and GT13* ranges of Alstom gas turbines. 

Other Alstom-Based ISCC Project: shall refer to any project other than a project using the ISCC Tower Product based on
sub-critical steam generation with open cycle or combined cycle gas turbine(s) manufactured by Alstom. 
 Other ISCC
Project: shall refer to any proposed solar power tower based on sub-critical steam generation with open cycle or combined cycle gas turbines not manufactured by Alstom and excluding any aero-derivative gas turbine applications. 

PESA: shall refer to the Amended and Restated Preferred Equipment Supply Agreement signed by BrightSource Energy Inc and Alstom
Power Inc on 27 December 2010. 
  
  

ARTICLE 2 
 COOPERATION AND EXCLUSIVITY 
  

 

2.1 Cooperation on ISCC Project Opportunities: 

The Parties agree to treat ISCC Project Opportunities as “Project Opportunities” under the provisions of the PPA
in all respects including but not limited to screening by the Project Coordination Committee of the ISCC Project Opportunities, going through the Go/No Go and Bid/No Bid gate reviews as defined in the PPA and the other provisions of Articles 3 and 4
of the PPA (it being understood and agreed that the limitation of Project Opportunities to Base Countries shall not apply to ISCC Project Opportunities). 
 If the Parties decide to “Go” or to “Bid” on an ISCC Project Opportunity, BSE and Alstom agree that they will cooperate to develop the ISCC Project Opportunity on an exclusive basis.
No Party shall directly or indirectly, alone or together with a third party, prepare, submit or participate to a bid for an ISCC Project Opportunity or develop or participate to the development of an ISCC Project Opportunity, until the Parties have
reached signature of the ISCC Tower Contract after the decision to “Go” or “Bid” has been made. 
 2.2 Other Alstom-Based ISCC Projects: If one Party has an opportunity to pursue any Other Alstom-Based ISCC Project, such Party must present the opportunity by written notice to the other
Party, who shall have a right of first refusal to participate. The other Party shall decide whether to participate within 15 days after it receives the written notice If the other Party chooses to participate, such Other Alstom-Based ISCC Project
shall be deemed to be an ISCC Project 

  
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Opportunity under this Amendment. If, however, the other Party does not choose to participate, it will not be entitled to pursue the project whether alone or with a third party and the Party who
presented the opportunity shall have the right to pursue it individually or with another party. 

Notwithstanding the provisions of the preceding paragraph, the Parties agree that if a Party decides not to pursue such
Other Alstom-based ISCC Project, it shall be free to pursue the project using another technology, which is not based on tower technology. 
 2.3 Other ISCC Projects: Each Party shall promptly and reasonably inform the other informed of opportunities that may involve Other ISCC Projects If one Party has an opportunity to pursue
any Other ISCC Project, such Party must present the opportunity by written notice to the other Party, who shall have a right of first refusal to participate. The other Party shall decide whether to participate within 15 days after it receives the
written notice. If the other Party chooses to participate, such Other ISCC Project shall be deemed to be an ISCC Project Opportunity under this Amendment. If, however, the other Party does not choose to participate, it will not be entitled to pursue
the project whether alone or with a third party and the Party who presented the opportunity shall have the right to pursue the project individually or with another party. 

Notwithstanding the provisions of the preceding paragraph, the Parties agree that if a Party decides not to pursue such
Other ISCC Project, it shall be free to pursue the project using another technology, which is not based on tower technology. 
 2.4 Exceptions to the Joint Pursuit of ISCC Project Opportunities: In case it becomes evident from the requirements of a specific ISCC Project Opportunity that one of the Parties or the
technology of one of the Parties will not be accepted or permitted for such ISCC Project Opportunity, the Parties shall discuss options to mitigate or resolve the issue. If the issue cannot be resolved in such a manner that it will allow the Parties
to submit a Proposal with reasonable chances of success, either in a consortium or contractor / subcontractor relationship, the other Party shall be free to pursue such ISCC Project Opportunity according to the No Go decision process of 3.2.4 of the
PPA. 
  
  

ARTICLE 3 
 TERRITORY 
  

 

3.1 Territory: The Parties agree that they will pursue ISCC Project Opportunities worldwide in accordance
with this Amendment; however, the Parties acknowledge that they will initially focus on the US and the Middle East North African markets. 

  
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 ARTICLE 4 
 PARTIES RESPECTIVE SCOPE OF WORK 

 
  

4.1 Scope of Alstom: 

For ISCC Tower Product(s) and other Alstom-Based ISCC Projects, Alstom shall design (including the thermodynamic boundary
conditions for the solar receiver-steam generator (“SRSG”)), manufacture and supply the SRSG and shall provide the KAxx combined cycle plant (ISCC Tower Products) or the steam add on (Other ALSTOM-Based ISCC Projects), and the full
integration of the Solar Field into the plant. 
 For any Other ISCC Projects, Alstom at a minimum will design
(including the thermodynamic boundary conditions for the SRSG), manufacture and supply the SRSG. The integration of the Solar Field into the plant and the supply of other equipment will be decided on a case-by-case basis. 

ALSTOM will lead the business development of ISCC Tower Products. 

4.2 Scope of BSE: BSE shall provide marketing support and business development support during the
development of the ISCC Project Opportunities at Alstom’s reasonable request. However, BSE is also free to independently market and engage in business development of ISCC Project Opportunities. 

For ISCC Tower Product(s) and other Alstom-Based ISCC Projects, BSE shall develop, size and supply the Solar Field
matching the project specific thermodynamic boundary conditions of the SRSG specified by Alstom. 
 For Other
ISCC Projects, BSE shall develop, size and supply the Solar Field. The integration of the Solar Field into the plant and the supply of other equipment will be decided on a case-by-case basis. 

4.3 Resources and Costs: Each Party shall allocate sufficient resources to perform its scope of work and
shall bear its costs of performing its obligations under this Amendment. Each Party shall keep the other Party reasonably informed of its marketing and business development efforts with respect to the ISCC Project Opportunities. 

4.4 O&M responsibilities: Allocation of responsibilities for the Operation and Maintenance of the plant
shall be decided during the period of preparation of a bid. 

  
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 ARTICLE 5 
 ROADMAP AND TERM OF THE AMENDMENT

  
  

5.1 Roadmap: The Parties commit to develop within 60 days after the Amendment Effective Date a roadmap
which describes the different and successive steps for the development and marketing of the ISCC Tower Product. 

5.2 Failure to develop a Product: If after 24 months from the Amendment Effective Date, no customer has
awarded a contract for an ISCC Tower Product or the Parties have not issued any bid on any other ISCC Project Opportunity, then the Parties shall stop the development of the ISCC Tower Product, and this Amendment shall terminate automatically unless
otherwise extended by the Parties. 
 5.3 Expiry: The provisions of this Amendment shall expire
unless terminated earlier in accordance with the PPA or in accordance with sub-clause 5.2 above upon the date that is three years after the Amendment Effective Date unless extended in accordance with the next sentence. This Amendment shall be
extended by up to five successive one-year terms unless at least 30 days prior to the end of the then current term, either Party delivers notice to the other Party that it does not wish to extend the Amendment for another one year term.
Notwithstanding the expiry of the termination of this Amendment, the provisions of the PPA shall remain valid in accordance with the PPA. 
 For the avoidance of doubt, expiry of this Amendment according to the above paragraph shall not affect the PPA, which shall remain in full force and effect. 

 
  

ARTICLE 6 
 PROJECT STRUCTURE 
  

 

6.1 Tendering responsibilities: Each Party shall be responsible for the tendering (technical and
commercial) relating to its respective scope in the application of any ISCC Project Opportunities. 
 6.2
Contract structure: Alstom and BSE will decide on a project-by-project basis which between consortium agreement and subcontract agreement is the most suitable contract structure. Such decision shall be taken no later than the bid
decision. If the Parties decide to bid in consortium it is hereby agreed that Alstom or any of its designated Affiliate will act as the leader of the 

  
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consortium unless otherwise agreed on a case-by-case basis. The Parties will rely on the same principles set out in Exhibit E of the PPA. 

If Alstom and BSE decide not to bid in consortium, it is hereby agreed that Alstom shall act as the main contractor
towards the EPC Contractor unless otherwise agreed on a case-by-case basis. 
  

 
 ARTICLE
7 
 INTELLECTUAL PROPERTY RIGHTS 

 
  

7.1 SRSG development: The Parties agree that all Intellectual Property Rights on the SRSG shall be owned in
accordance with the principles set out in the terms of the SRSG Letter of Agreement between the Parties and Exhibit I of the Preferred Equipment Supply Agreement (PESA). 

It is furthermore expressly agreed that rights shall be granted on the SRSG by a Party to the other in accordance with
the SRSG Letter of Agreement between the Parties only to the extent that the Parties decide to bid together on an ISCC Project Opportunity. 
 7.2 Other Intellectual Property rights: For the avoidance of doubt any other Intellectual Property rights, obligations and restrictions, including provisions regarding escrow of information,
shall be treated in accordance with the terms of the PPA. 
  

 
 ARTICLE
8 
 MISCELLANEOUS 
  

 

7.1 Effect of amendment: The PPA remains in full force and effect, as amended hereby. 

7.2 Counterparts: This Amendment may be executed in counterparts, and each counterpart shall constitute one
and the same instrument and may be delivered by electronic means. 
 [Signature page follows.] 

  
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 AGREEMENT EXECUTION 

IN WITNESS WHEREOF, BrightSource Energy, Inc. and ALSTOM Power Inc. have caused this Agreement to be executed as of the date first
written above by their duly authorized representatives as follows: 
  

							
	 BrightSource Energy, Inc:
	  	 	  	 ALSTOM Power Inc.:

				
	 By:
	  	 /s/ John Woolard
	  		  	 By: /s/ Timothy F. Curran

	 Name:
	  	      John Woolard
	  		  	 Name: Timothy F. Curran

	 Title:
	  	      CEO & President
	  		  	 Title: President

 BrightSource Industries (Israel) Ltd. acknowledges that it has reviewed this Agreement and agrees with
its provisions, and that it shall cooperate (through BSE or otherwise) with BSE in all respects in order to allow BSE to comply with its obligations under this Agreement. 

 

					
	 BrightSource Industries (Israel) Ltd.:
	  	 
			
	 By:
	  	 /s/ Israel Kroizer
	  	
	 Name:
	  	      Israel Kroizer
	  	
	 Title:
	  	      President
	  	

  
 7 (7)Offer Letter - Richard Kelly

 Exhibit 10.41 

 
 

 
 December 9, 2011 
 Richard Kelly 
 2390 Ranch Reserve Ridge 
 Westminster, CO 80234 
 Dear Dick: 

On behalf of BrightSource Energy, Inc. (the “Company”), it is my pleasure to invite you to serve as a member of the Board of
Directors of BrightSource Energy, Inc. (the “Board”). Either you or the Company’s shareholders may terminate this relationship at any time and for any reason. 
 Duties and Responsibilities. In performing your duties and responsibilities, we expect that you will attend and participate in approximately four to six Board and associated Committee
meetings annually, as applicable, one of which will typically be held at our offices in Jerusalem, Israel (the “Services”). We also expect that you will attend such additional meetings that business needs may require from time to time,
including attending additional meetings in Jerusalem, Israel and at other Company locations. 
 Board Fees. In
connection with your performance of the Services, the Company will pay you for your services based on the following current Board approved schedule of fees for the applicable Services that you are requested to provide. The following amounts
represent annual fees, which are paid in quarterly increments and are prorated for partial years of service: 
 Annual
Retainers: 
  

					
	 •      Board of Directors Member:
	  	$	50,000	  
	 •      Chair of the Board of Directors:
	  	$	50,000	  
	 •      Nominating and Governance Committee Chair:
	  	$	7,500	  
		  	  
	  
	 
	 •      Total Anticipated Annualized Retainer:
	  	$	107,500	  

 Stock Option Grant. As an added incentive, and subject to approval by the Compensation
Committee of the Company’s Board of Directors, you will be granted 95,000 options to purchase shares of the Company’s Common Stock (“Option Shares”) with an exercise price equal to the fair market value on the date of the
grant. These option shares will vest beginning on your Vesting Commencement Date as determined by the Board of Directors and at the monthly rate of 1/60th of the total number of the Option Shares. Vesting will depend on your continued service with
the Company. The option will be subject to the terms of the Company’s 2006 Stock Plan and the Stock Option Agreement between you and the Company. 
 BrightSource Energy, Inc. 
 1999 Harrison Street 

Suite 2150 
 Oakland, CA 94612 

www.BrightSourceEnergy.com 

 

 
 Equity Ownership Requirement. The Board of Directors has approved, effective upon the
Company’s initial public offering, an equity ownership requirement for its Directors. Under this requirement, each Director will be expected to own and hold shares of the Company’s common stock with a value equal to at least three
times the annual retainer fee, or $150,000. Each Director will be expected to satisfy the target ownership threshold within five years from the completion of the Company’s initial public offering. Only shares owned (including unvested
restricted stock) will count toward satisfying this requirement. Stock options (whether vested or unvested) will not count toward this requirement. 
 Service Related Expenses. The Company will reimburse you for necessary and reasonable expenses incurred in the course and scope of performing the Services, consistent with the Company’s
standard Expense Reimbursement policy and subject to reasonable evidence that the amount involved was expended for and related to the Services. 
 Confidential Information and Invention Assignment Agreement. Your acceptance of this offer and commencement of Services with the Company is contingent upon your signing and returning the
Company’s standard Consultant Confidential Information and Invention Assignment Agreement (“Confidentiality Agreement”) prior to your Start Date, a copy of which is enclosed for your review and signature. 

No Conflicting Obligations. You represent to the Company that your performance of the Services will not breach any other
agreement to which you are a party and that you have not, and will not during the term of your Services for the Company, enter into any oral or written agreement in conflict with any of the provisions of this letter or the Company’s policies.
You are not to use or disclose to any person associated with the Company, any confidential or proprietary information belonging to another person or entity with respect to which you owe an obligation of confidentiality under any agreement or
otherwise. The Company does not need and will not use such information and we will assist you in any way possible to preserve and protect the confidentiality of proprietary information belonging to third parties. Also, we expect you to abide by any
obligations to refrain from soliciting any person employed by or otherwise associated with any former employer and suggest that you refrain from having any contact with such persons until such time as any non-solicitation obligation expires.

 Taxes. The Company is not providing you and will not provide you tax advice. All taxes in connection with the
Services are solely your responsibility. 
 Entire Agreement. This letter, together with the Confidentiality
Agreement, sets forth the entire agreement and understanding between you and the Company relating to your Services and supersedes all prior agreements and discussions between us. This letter will be governed by the laws of the State of California
without regard to its conflicts of law provisions. 

  
 2 

 

 
 Once again, we are delighted to extend you this offer. To indicate your acceptance of the
Company’s offer, please sign and date this letter in the space provided below and return it to me, along with a signed and dated copy of the Confidentiality Agreement. This offer will terminate if not accepted by you on or before
December 12, 2011 and is subject to your election to the Board by the Company’s shareholders. 
 Sincerely, 

/s/ John Woolard 
 John Woolard 

President and CEO 
 BrightSource Energy, Inc.

 ACCEPTED AND AGREED: 
  

							
	 /s/ Richard Kelly
	  	 	  	 12/10/2011
	  	 
	Richard Kelly	  		  	Date	  	

  
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