Document:

ex-10.57

 EXHIBIT 10.57
 

 

 PLEDGE AGREEMENT
 

 THIS PLEDGE AGREEMENT, entered into as of October 30, 2013 (the “Pledge Agreement”), by and between David J. Lies (the “Pledgor”) with an address at 1701 E. Lake Avenue, Suite 260, Glenview, Illinois 60025, and Blue Earth, Inc. (the “Pledgee”) with an address at 2298 Horizon Ridge Parkway, Suite 205, Henderson, Nevada 89052.
 

 W I T N E S S E T H
 

 WHEREAS, the Pledgor has executed and delivered a promissory note (the “Note”) to the Pledgee in the principal amount of One Million Dollars ($1,000,000);
 

 WHEREAS, the Pledgor has agreed to pledge the 333,334 shares of common stock of the Pledgee issuable upon the exercise of certain Class A Warrants held by the Pledgor (the “Pledged Interest”) to the Pledgee as security for the payment and performance of the Pledgor=s obligations under the Note; and
 

 WHEREAS, capitalized terms used but not defined herein shall have the respective meanings set forth in the Note.
 

 NOW, THEREFORE, the parties hereto agree as follows:
 

 1.
 Pledge and Grant of Security Interest.  The Pledgor hereby pledges to the Pledgee, and grants to the Pledgee a security interest in, all of his right, title and interest in and to the Pledged Interest as security for the full and prompt payment and performance of the Pledgor’s obligations under the Note (the “Obligations”).  The Pledgor has delivered simultaneously herewith to the Pledgee, and the Pledgee hereby acknowledges receipt of, a certificate evidencing the Pledged Interest registered in the name of the Pledgor (the “Pledged Certificate”).  So long as any of the Obligations remain unsatisfied, the Pledged Certificate shall be held by and in the custody of the Pledgee subject to and in accordance with the terms and provisions hereof.
 2.
 Representations and Warranties. 
 (a)
 The Pledgor hereby represents and warrants to the Pledgee as follows:
 (i)
 he is the owner of the Pledged Interest, he holds good title to the Pledged Interest, he has the right to pledge the Pledged Interest and the Pledged Interest are free from all liens, encumbrances, adverse claims and other security interests (other than those created hereby); and
 (ii)
 None of the Pledged Interest is subject to any prohibition against encumbering, pledging, hypothecating or assigning the same or requires notice or consent in connection therewith.
 

 
 

 (b)
 The foregoing representations and warranties shall survive until full and final payment and performance of all of the Obligations or the transfer of title to the Pledged Interest to the Pledgee.
 3.
 Covenants.
 (a)
 So long as any of the Obligations remain unsatisfied, the Pledgor will not sell, assign, transfer, dispose of, pledge or encumber in any manner any of the Shares (as defined in the Note), or agree or attempt to do so, or suffer to exist any lien, security interest or other encumbrance on the Shares created, except the lien of this pledge. 
 (b)
 So long as any of the Obligations remain unsatisfied, the Pledgor shall, upon request of the Pledgee, furnish to the Pledgee such stock powers, instruments of assignment and other instruments as may be required by the Pledgee in order to permit or effect transfer of the Pledged Certificates in accordance with the terms of this Pledge Agreement.
 (c)
 The Pledgor shall at any time and from time to time, upon the written request of the Pledgee, execute and deliver such other instruments and documents and do such further acts and things as the Pledgee may reasonably request in order to effect the purposes of this Pledge Agreement.
 (d)
 Beyond the exercise of reasonable care to assure the safe custody of the Pledged Certificates, Pledgee shall not have any duty or liability to preserve rights pertaining thereto, and shall be relieved of all responsibility for the Pledged Certificates upon the Pledgee surrendering them to the Pledgor upon satisfaction in full of the Obligations.
 4.
 Events of Default.  A breach or violation of this Pledge Agreement by the Pledgor or an Event of Default under the Note, shall constitute an event of default (“Event of Default”) by the Pledgor hereunder.
 5.
 Rights of the Pledgee upon Default.   
 (a)
 If an Event of Default shall occur and be continuing, the Pledgor agrees to the Pledgee shall have the right to (i) cancel the Shares; or (ii) immediately re-register the Pledged Certificates in such name(s) as the Pledgee shall determine.
 (b)
 Until the Pledged Certificates have been re-registered, immediately upon the occurrence of an Event of Default, the Pledged Certificates shall be deemed to be registered in the name of the Pledgee.
 

 

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 6.
 Remedies of the Pledgee upon Default  In the event that an Event of Default shall occur and be continuing, the Pledgee shall have all of the rights and remedies afforded to secured parties with respect to the Shares as set forth in the Uniform Commercial Code from time to time in effect in the State of Nevada (the “Code”), as well as all other rights and remedies granted this Pledge Agreement.  The Pledgee shall have the right to cancel the Shares and terminate all of Pledgor’s obligations hereunder.  The Pledgee shall have the right upon any public sale or sales, and, to the extent permitted by law, upon any private sale or sales, to purchase the whole or any part of the Shares so sold and cancel the Shares accordingly. The Pledgee shall apply any proceeds from time to time held by him and the net proceeds of any sale or other disposition, after deducting all reasonable costs and expenses of every kind incurred in respect thereof or incidental to the care or safekeeping of any of the Shares or in any way relating to the Shares or the rights of the Pledgee hereunder including, without limitation, reasonable attorneys= fees and disbursements of counsel to the Pledgee, to the satisfaction in whole or in part of the Obligations, in such order as the Pledgee may determine; and only after such application and after the payment by the Pledgee of any other amount required by any provision of law need the Pledgee account for the surplus, if any, to the Pledgor.  To the extent permitted by applicable law, the Pledgor waives all claims, damages and demands he may acquire against the Pledgee arising out of the lawful exercise by him of any rights hereunder.  Neither the Pledgee, nor any of his legal representatives, administrators, successors or assigns shall be liable for failure to sell or otherwise dispose of the Shares or for any delay in doing so.  If any notice of a proposed sale or other disposition of the Shares shall be required by law, such notice shall be deemed reasonable and proper if given at least ten (10) days before such sale or other disposition.  The Pledgor shall remain liable for any deficiency if the proceeds of any sale or other disposition of the Shares are insufficient to pay all of the Obligations and any and all costs and expenses of every kind incurred by the Pledgee with respect to the collection of such deficiency, including, without limitation, all reasonable fees and disbursements of any attorneys employed by the Pledgee.
 The Pledgor recognizes that the any sale of any or all the Shares shall be subject to any restrictions contained in the Securities Act of 1933, as amended, and applicable state securities laws or otherwise, and may be compelled to resort to one or more private sales thereof to a restricted group of purchasers, which will be obliged to agree, among other things, to acquire such securities for their own account for investment and not with a view to the distribution or resale thereof.  The Pledgor acknowledges and agrees that any such private sale may result in prices and other terms less favorable than if such sale were a public sale and, notwithstanding such circumstances, agrees that any such private sale shall be deemed to have been made in a commercially reasonable manner.
 

 The Pledgor agrees to use his reasonable efforts to do or cause to be done all such other acts as may be necessary to make such sale or sales of all or any portion of the Shares pursuant to this section valid and binding and in compliance with any and all other applicable requirements of law.
 7.
 Termination of Agreement.  Upon (i) the Pledgor=s satisfaction of the Obligations in full (at which time the Pledgee shall deliver the Pledged Certificates to the Pledgor), or (ii) the conclusion of the actions contemplated by Section 7 hereof, this Pledge Agreement shall terminate.
 

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 8.
 Miscellaneous.
 (a)
 This Pledge Agreement constitutes the entire agreement between the parties pertaining to the subject matter hereof, and supersedes all prior agreements or understandings as to such subject matter. 
 (b)
 No waiver of any of the provisions of this Pledge Agreement shall be deemed, or shall constitute, a waiver of any other provisions, whether or not similar, nor shall any waiver constitute a continuing waiver.  No waiver shall be binding unless executed in writing by the party making the waiver.
 (c)
 No amendment or modification of this Pledge Agreement shall be valid unless made in writing and signed by the party to be charged therewith.
 (d)
 This Pledge Agreement shall be binding upon and shall inure to the benefit of the parties hereto and their respective heirs, legal representatives, executors, administrators, successors and assigns, as applicable.
 (e)
 This Pledge Agreement shall be construed and interpreted and the rights granted herein governed in accordance with the laws of Nevada, without giving effect to conflict of laws principles.
 (f)
 Each of the parties to this Pledge Agreement agrees to execute and deliver any and all additional papers, documents and other assurances, and shall perform any and all acts and things, reasonably necessary to effectuate the purpose and intent of this Pledge Agreement.
 (g)
 This Pledge Agreement may be executed in any number of counterparts, each of which shall be deemed an original and all of which shall constitute one instrument.
 (h)
 All notices or other communications or deliveries required or permitted hereunder shall be sufficiently given if delivered by hand, or sent by certified or registered mail (return receipt requested, postage prepaid), facsimile transmission or overnight mail or courier, addressed to the parties as described in the Note or at such other address as any party or person shall designate by notice to the other parties in accordance with the provisions hereof.
 (i)
 In the event that the Pledged Certificates or any portion thereof are released to the Pledgor and any payments or proceeds of any security for the Obligations, or any part thereof, are subsequently invalidated, declared to be fraudulent or preferential, set aside and/or required to be repaid to a trustee, receiver or any other party under any bankruptcy law, state or federal law, common law or equitable cause, then the Pledgor shall redeliver the Pledged Certificates to the Pledgee and, until so redelivered, shall hold the Pledged Certificates as agent of, and in trust for, the Pledgee.
 SIGNATURE PAGE TO FOLLOW
 

 4
 

 
 IN WITNESS WHEREOF, the undersigned have executed this Pledge Agreement as of the date first above written.
 

 PLEDGOR:
 

 

 /s/ David J. Lies
 David J. Lies
 

 

 

 PLEDGEE:
 

 BLUE EARTH, INC.
 

 

 /s/ Johnny Thomas
 Name: Johnny Thomas
 Title: CEO
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 5EX-10.58

 Exhibit 10.58
 10.10.2013
 

 STRATEGIC AGREEMENT
 

 This Strategic Agreement (this "Agreement") is made and entered into as of the 10th day of October, 2013 (the "Effective Date"), by and among New Generation Power, LLC ("NGP"), an Illinois registered limited liability company with its principal offices at 39 South LaSalle Street, Suite 600, Chicago, Illinois 60603; Blue Earth, Inc. ("BE"), a Nevada registered corporation with its principal offices at 2298 Horizon Ridge Pkwy, Suite 205, Henderson Nevada, 89052; and Talesun Solar USA, Ltd. ("TSUN"), a Delaware corporation with its principal offices at 111 W. Saint John Street, Suite 900, San Jose, California 95113. NGP, BE and TSUN are hereinafter sometimes referred to collectively as the "Parties" and individually as a "Party".
 This Strategic Agreement expressly replaces, supersedes and renders null and void that certain Strategic Partnership Agreement by and among NGP, BE, and TSUN dated as of August 30, 2013.
 RECITALS
 WHEREAS, the Parties have decided to engage in a series of transactions that will permit NGP to utilize Seven (7) Megawatts ("MW") worth of NGP's ITC 1603 Cash-in-Lieu of Tax Credit grant Safe Harbored Talesun solar PV modules (hereinafter sometimes referred to as the "SH Modules") to build out approximately Forty-Seven (47) MW worth of solar PV projects;
 WHEREAS, the Parties will collaborate on the initial solar projects listed in Exhibit A: "Project Pipeline" to this Agreement;
 WHEREAS, NGP will be the developer on the solar projects, BE will be the Engineering, Procurement and Contraction ("EPC") services provider, and TSUN, or its designated affiliate, will sometimes provide the balance of the non-Safe Harbored solar PV modules if it so chooses;
 WHEREAS, Talesun Solar Hong Kong, Ltd., a company established and existing under the laws of Hong Kong and having a principal place of business at 38F Tower One, Lippo Center, 89 Queensway, Hong Kong (“THK”) and NGP have heretofore executed and delivered a Framework Contract on the Sale and Purchase of Talesun Modules (#-TP660P) dated December 29, 2011 (the “Module Supply Agreement”); a Module Supply Financing Agreement (the “Financing Agreement”), dated December 29, 2011; and an Amended and Restated Module Supply Financing Agreement dated September 12, 2013 that amended, restated and superseded the Financing Agreement (the “Amended and Restated Module Supply Financing Agreement”) (the Module Supply Agreement, the Financing Agreement and the Amended and Restated Module Supply Financing Agreements are collectively, the “THK Documents”) pursuant to which the SH Modules were sold to NGP (along with other Modules manufactured by affiliates of TSUN and THK) and further pursuant to which NGP became indebted to THK to pay the purchase price for the SH Modules (and the purchase price for such other Modules manufactured by affiliates of TSUN and THK) (the amount of this debt on the SH Modules 
 

 CONFIDENTIAL TREATMENT REQUESTED FOR REDACTED PORTIONS
 

 
 arising under and secured by the THK Documents that remains unpaid is $6,500,000 and shall hereafter referred to as the “Debt Owed to THK”);
 WHEREAS, BE will loan to NGP an amount equal to $6,500,000 and BE will distribute the loan to NGP through a combination of a total of $1,000,000 in cash payments and in the form of issuing [REDACTED]; and
 WHEREAS, NGP will use the proceeds of such loan to repay the Debt Owed to THK;
 NOW, THEREFORE, for and in consideration of good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, and intending to be legally bound hereby, the Parties do hereby agree as follows:
 PRINCIPAL TERMS
 1.
 THE PRINCIPAL TERMS OF THIS AGREEMENT
 CONFIDENTIAL TREATMENT REQUESTED FOR REDACTED PORTIONS PURSUANT TO RULE 83.  PROVISIONS BELOW HAVE BEEN REPLACED BY AMENDMENT NO. 1 
 1.1
 BE will loan $6.5 million to NGP secured by a security interest on the SH Modules in accordance with that certain Security Agreement, dated as of October 10, 2013 by and between Be, as “Lender” and NGP, as “Borrower”. The loan shall consist of $1.0 million in cash and [REDACTED]. See Exhibit F for details.
 [REDACTED].
 1.3
 NGP granted BE engineering, procurement and construction ("EPC") rights to 47 MW of solar projects initially and additional 100 MW of EPC work on solar projects provided BE is performing on the initial EPC contracts. See Exhibit F for details.
 1.4
 Talesun committed to grant BE EPC on 18 MW of solar projects. See Exhibit F for details.
 1.5
 All EPC contracts will be on a cost plus basis with full transparency on costs, as the Parties will work together to minimize construction cost on the solar projects. See Exhibit F for details.
 1.6
 BE has the opportunity to provide construction financing. See Exhibit F for details.
 

 

 CONFIDENTIAL TREATMENT REQUESTED FOR REDACTED PORTIONS
 

 
 

 2.
 OTHER TERMS
 2.1
 Entire Agreement. This Agreement constitutes the entire understanding between the Parties with respect to the subject matter hereof, and all prior or contemporaneous agreements, understandings, representations and statements, oral or written, are merged into this Agreement. Neither this Agreement nor any provision hereof may be waived, modified, amended, discharged or terminated except by an instrument in writing signed by the Parties hereto.
 2.2
 Survival. All covenants, agreements, representations, warranties, and obligations set forth in this Agreement shall survive the complete execution, delivery and performance of this Agreement.
 2.3
 Binding Effect. This Agreement shall be binding upon and shall inure to the benefit of the Parties hereto and their respective (as applicable) successors and assigns.
 2.4
 Severability. Any term or provision of this Agreement that is invalid or unenforceable in any situation in any jurisdiction shall not affect the validity or enforceability of the remaining terms and provisions hereof or the validity or enforceability of the offending term or provision in any other situation or in any other jurisdiction.
 2.5
 Counterparts. This Agreement may be executed in any number of counterparts, each of which shall be deemed an original, but all of which together shall be deemed to be one and the same instrument.
 2.6
 Construction. The article, section and subsection headings used herein are inserted for reference purposes only and shall not in any way affect the meaning or interpretation of this Agreement. As used in this Agreement, the masculine, feminine or neuter gender, and the singular or plural, shall be deemed to include the others whenever and wherever the context so requires. This Agreement is the product of informed negotiations between and joint drafting of the Parties and their representatives, including counsel. In the event any ambiguity is found to exist in any provision of this Agreement, such ambiguity is not to be construed against any Party as the drafter of the document.
 2.7
 Governing Law. This Agreement shall be governed and construed in accordance with the laws of the State of California, without giving effect to the choice of law principles thereof. Any action or proceeding arising out of or relating to this Agreement will be brought solely in the state or federal courts located in or for San Diego or San Jose counties. 
 

 [Remainder of page intentionally left blank]
 

 

 CONFIDENTIAL TREATMENT REQUESTED FOR REDACTED PORTIONS
 

 
 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date first above written.
 

 

 	 	 	
	 New Generation Power, LLC
	  
	 Blue Earth, Inc.

	 39 South LaSalle Street
	  
	 2298 Horizon Ridge Pkwy

	 Suite 600
	  
	 Suite 205

	 Chicago, IL 60603
	  
	 Henderson, NV 89052

	  
	  
	  

	  
	  
	  

 

 	 	 	
	 /s/ Chirinjeev Kathuria
 Signature
	  
	 /s/ Johnny R. Thomas
 Signature

	 

 Dr. Chirinjeev Kathuria
	  
	 

 Dr. Johnny R. Thomas

	 

 Chairman and President     
	  
	 

 CEO

	 

 Date: 9-3-2013
	  
	 

 Date:

 

 

 Talesun Solar USA Ltd. 
 111 W. Saint John Street 
 Suite 900
 San Jose, CA 95113
  
 	 	
	 /s/ Eric Ma
 Signature
	  

	 

 Name:  Eric Ma
	  

	 

 Title: General Manager
	  

	 

 Date:  10/11/2013
	  

 

 

 

 

 

 

 

 

 

 CONFIDENTIAL TREATMENT REQUESTED FOR REDACTED PORTIONS
 

 
 

 Exhibit F
 

 Principal Terms
 

 In the event of any inconsistency between the language in this Schedule F and the Strategic Agreement (the "SA") to which it is an exhibit this Schedule F shall supersede the SA. Capitalized terms herein shall have the same meaning as set forth in the SA.
 3.
 SH MODULE PAYMENT TERMS
 3.1
 Loan to NGP. Subject to the terms and conditions hereof and according to the Payment Schedule listed below, NGP shall grant a first lien security interest on NGP's SH Modules to BE in accordance with that certain Security Agreement, dated as of October 10, 2013 by and between BE, as “Lender” and NGP, as “Borrower” in order to secure repayment by NGP of the Loan Amount. NGP will use the proceeds of the Loan Amount (defined below) to repay the Debt Owed to THK and for no other purpose.
 3.2
 Loan Amount. The aggregate loan amount ("Loan Amount") BE shall provide to NGP to be collateralized by NGP’s grant to BE of the security interest in the SH Modules referenced in Section 3.1 shall be an amount equal to the sum of $6,500,000.  NGP shall utilize the SH Modules at the initial solar projects listed in Exhibit A: "Project Pipeline" to the SA.
 3.3
 Loan Distribution Schedule. The Loan Amount will be paid in accordance with the following schedule:
 CONFIDENTIAL TREATMENT REQUESTED FOR REDACTED PORTIONS PURSUANT TO RULE 83.  PROVISIONS BELOW HAVE BEEN REPLACED BY AMENDMENT NO. 1 
 5.
 REPRESENTATIONS AND WARRANTIES REGARDING THE SH MODULES
 5.1
 NGP Guarantee to BE. NGP will guarantee to BE that the allocated 7MW of SH Modules and the solar projects which will utilize those SH Modules are exempted from any litigation or complaints between NGP and TSUN that may arise in the future. BE shall be fully indemnified by NGP.
 5.2
 SH Module Identification and Storage. The 7 MW of SH Modules in which a security interest has been granted by NGP to BE under that certain Security Agreement, dated as of October 10, 2013 by and between BE, as “Lender” and NGP, as “Borrower” shall be identified as to their Treasury Application Numbers ("TANs"), serial numbers and other appropriate identification information.  They shall be stored in the current warehouse. 
 5.3
 SH Module Tax Grant Documents. NGP shall provide Safe Harbor AUP Report  in Exhibit E.
 [REDACTED]
 

 CONFIDENTIAL TREATMENT REQUESTED FOR REDACTED PORTIONS
 

 
 

 

 

 

 

 

 

 

 

 

 

 

 [REDACTED]
 

 

 

 

 

 

 

 

 

 

 

 

 

 CONFIDENTIAL TREATMENT REQUESTED FOR REDACTED PORTIONS
 

 
 

 6.
 NGP AND BE COLLABORATION ON PROJECTS UTILIZING THE SH MODULES
 6.1
 BE as EPC provider to NGP on SH Module Projects. BE shall be the EPC services provider for all NGP solar PV projects using any of the 7 MW of SH Modules in which a security interest has been granted by NGP to BE hereunder as long as BE is not in breach of this Exhibit F or the SA.
 6.2
 EPC Agreement. NGP and BE shall enter into an EPC agreement wherein BE will be granted the exclusive right to be the EPC services provider for 47 MW of NGP solar PV projects as long as the following considerations are met:
 d)
 BE will provide an open book to NGP for all projects;
 e)
 The EPC gross margin for the EPC contracts shall be [REDACTED]. However, the interest, fees and costs associated with construction financing paid to a third party are not included in the BE [REDACTED] gross margin;
 f)
 The EPC contracts will be defined as cost plus contracts, the form of which shall be as shown as Exhibit E attached hereto. The contracts may need some changes to accommodate construction finance, but the form, substance, margins, payment dates, etc. shall generally be consistent with the terms in the form;
 g)
 The non-Safe Harbored modules (approximately [REDACTED] of the modules used on any project) shall be included in the EPC contracts for gross margin calculations;
 h)
 The EPC information during the bidding, sub-contracting and implementation phase shall be transparent so that NGP can provide BE information on other subcontractors or vendors for consideration. BE shall make the ultimate choice as to vendors and subcontractors;
 i)
 NGP will have the ability to work with BE to optimize the solar equipment costs including, solar modules, racking, inverters, BOS, and overall supply chain. All such products shall be "bankable";
 j)
 BE has successfully completed past projects within the terms and conditions of the EPC Agreement; and
 k)
 The sum of [REDACTED] of the overall development fee from NGP's projects will be paid to NGP from construction financing at NTP whereas NTP is defined as all regulatory and governmental permits and waivers are complete, 100% take-out financing secured and construction finance is secured.
 

 CONFIDENTIAL TREATMENT REQUESTED FOR REDACTED PORTIONS
 

 
 
 6.3
 Procurement of Balance of PV Modules. The procurement of the balance of the solar PV modules that are not SH Modules shall be provided by a "Bankable" Solar Module Provider ("BSMP") in any project where SH Modules secured by BE are used and BE is the EPC provider. This BSMP shall agree to payment terms on all non-SH Modules to be paid upon receipt of the 1603 cash in lieu of tax credit grant from the US Treasury (the "Tax Grant") with respect to the SH Modules. If the Tax Grant is reduced or denied, NGP shall be responsible for arranging payment to BSMP as part of the 100% take-out financing.
 6.4
 Additional 100 MW of Projects. In addition to 47MW of initial projects, NGP shall grant BE additional 100 MW of EPC work on solar projects provided BE is performing on the initial EPC contracts and BE remains a bankable EPC provider.
 6.5
 TSUN 18 MW Solar Protects. TSUN and BE shall enter into an EPC agreement wherein BE will be the EPC for 18 MW of TSUN's solar projects under the same [REDACTED] GM Cost Plus EPC agreement referenced above and shall be substantially as shown in Exhibit E by August 30, 2013 provided that if the SH Modules are utilized for the projects to secure the Tax Grant, a minimum of [REDACTED] of the project company and cash flows will have to be assigned to NGP in order to comply with US Treasury Guidelines regarding the Tax Grant.
 6.6
 BE Provided Construction Financing. Should BE arrange or provide construction financing for any of NGP's solar PV projects, BE and/or BE's lender shall have a first security position on the BE financed projects until the long-term take-out financing pays BE and/or its lender in full. NGP shall be responsible to ensure BE's first security position after COD if the final payment is conditioned upon receipt of the Tax Grant. NGP shall have firm take-out financing in place before BE negotiates construction financing.
 6.7
 Inability to Arrange Take-out Financing. If NGP fails to obtain adequate take-out financing for projects utilizing the 7 MW of SH Modules within [REDACTED] period, BE will have the right to use the SH Modules it holds a security interest in and use them on BE projects as long as any of the reasons for inability to arrange take-out financing was not due to non-bankability of BE as the EPC services provider.
 6.8
 Project Cash Flows. In consideration of loaning the Loan Amount and not in lieu of repayment of the Loan Amount BE will receive [REDACTED] of the project's cash flows payable to NGP arising solely from the SH Modules that serve as collateral hereunder for the Loan Payment used for NGP’s solar PV projects. Conversely and in order to comply with US Treasury Guidelines, NGP will receive a minimum of [REDACTED] of the project company and cash flows on BE or TSUN related solar PV projects that are not developed by or with NGP but will utilize NGP's 1603 Safe Harbored modules (other than the SH Modules) to secure the Tax Grant.
 6.9
 BE Secured SH Module Payment. The BE loan shall be re-paid, upon contribution to any project of any of the SH Modules in which a security interest has been granted by NGP to BE under that certain Security Agreement, dated as of October 10, 2013 by and between BE, as “Lender” and NGP, as “Borrower”.
 

 

 CONFIDENTIAL TREATMENT REQUESTED FOR REDACTED PORTIONS
 

 
 Exhibit A
 

 Projects
 

 

 	 	 	 	
	 Project
	  
 Project Company Name
  
	 Location
	 MW(dc)

	 [REDACTED]
	 [REDACTED]
	 [REDACTED]
	 [REDACTED]

	 [REDACTED]
	 [REDACTED]
	 [REDACTED]
	 [REDACTED]

	 [REDACTED]
	 [REDACTED]
	 [REDACTED]
	 [REDACTED]

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 CONFIDENTIAL TREATMENT REQUESTED FOR REDACTED PORTIONS
 

 
 

 AMENDMENT #1 TO
 STRATEGIC AGREEMENT
 

 THIS AMENDMENT #1, dated as of October 23, 2013 (the “Amendment”), to that certain Strategic Agreement, dated as of October 10, 2013 (the “Agreement”), by and among New Generation Power, LLC (“NGP”), Blue Earth, Inc. (“BE”), and Talesun Solar USA, Ltd. (“TSUN” and collectively, the “Parties”).  
 W I T N E S S E T H:
 WHEREAS, the Parties desire to amend the terms of the Agreement, pursuant to the terms and conditions set forth herein, as of the date hereof.
 NOW, THEREFORE in consideration of mutual covenants and premises set forth herein, and intending to be legally bound, the parties hereto agree as follows:
 1.
 Capitalized Terms.  Capitalized terms used herein and not otherwise defined shall have the meaning set forth for such terms in the Agreement.
 2.
 Amendments to the Agreement. 
 (a)
 Section 1.1 of the Agreement is hereby deleted in its entirety and replaced by the following:
 “1.1. BE will loan an aggregate amount equal to $6,500,000 to NGP in accordance with the schedule described in Section 3.3 of Exhibit F hereto (the “Loan”).  The Loan shall  secured by a security interest on the SH Modules in accordance with that certain Security Agreement, dated as of October 10, 2013 by and between BE, as “Lender” and NGP, as “Borrower”, as amended. (the “Security Agreement”).”
 (b)  
 Section 1.2 of the Agreement is hereby deleted in its entirety and replaced by “1.2. Intentionally Omitted”.
 (c)
 Section 3.3 of Exhibit F to the Agreement is hereby deleted and replaced in its entirety by the following:
 “Section 3.3.  Loan Distribution Schedule.  The Loan amount will be paid in accordance with the following schedule:
 a) Prior to the date hereof, BE has made a loan advance to NGP in an amount equal to $1,000,000 in cash.
 b) Upon the execution of the Amendment, BE shall wire to NGP an amount equal to $500,000 in cash  (the “Second Payment”).
 c) No later than ten (10) days following the Second Payment BE shall advance at least $500,000 in cash by wire transfer to NGP  (the “Third Payment”).
 

 CONFIDENTIAL TREATMENT REQUESTED FOR REDACTED PORTIONS
 

 
 

 d) Following the Third Payment, BE shall fund the remaining principal amount of the Loan by no later than December 23, 2013 (the “Final Payment Due Date”).
 Notwithstanding anything to the contrary herein, following the Second Payment, BE may fund any or the entire Loan amount any time prior to the Final Payment Due Date and shall be secured accordingly pursuant to the terms of the Security Agreement.”
 (d)
 Section 4 of Exhibit F to the Agreement is hereby deleted in its entirety and replaced by the following:
 “4.
 Payment to TSUN. All proceeds from the Loan shall be disbursed by NGP directly to THK by wire transfer to the account of THK by NGP until THK has been paid the full $6,500,000 of Debt Owed to THK.”
 (e)
 Section 6.7 of Exhibit F to the Agreement is hereby deleted in its entirety and replaced by the following:
 “6.7
 Inability to Arrange Take-out Financing. If NGP fails to obtain adequate take-out financing for projects, as described on Exhibit A hereto, utilizing the 7 MW of SH Modules within a [REDACTED] period, BE will have the right to use in any manner the SH Modules it holds a security interest in and direct the use of such SH Modules on BE projects as long as any of the reasons for inability to arrange take-out financing was not due to non-bankability of BE as the EPC services provider.”
 (f)
 Section 6.9 of Exhibit F to the Agreement is hereby deleted in its entirety and replaced by the following:
 “6.9  BE Re-Payment of the Loan.  Upon NGP’s sale, contribution or transfer to any project of the SH Modules, which secure the repayment of the BE Loan in accordance with the Security Agreement, NGP shall remit any and all payments earned or received from such SH Modules to BE as repayment of the outstanding principal balance of the BE Loan.”
 3. 
 Miscellaneous.
 (a)
 Except as modified herein, the Agreement shall remain in full force and effect.  
 (b)
 This Amendment may be executed in two or more counterparts (including via facsimile or portable document format (pdf), each of which shall be deemed an original, but all of which together shall constitute one and the same instrument.
 

 [SIGNATURE PAGE FOLLOWS]
 

 

 CONFIDENTIAL TREATMENT REQUESTED FOR REDACTED PORTIONS
 

 
 

 

 IN WITNESS WHEREOF, the Parties hereto have executed this Agreement as of the Effective Date first above written.
 

 

 	 	 	
	 New Generation Power, LLC
	  
	 Blue Earth, Inc.

	 39 South LaSalle Street
	  
	 2298 Horizon Ridge Pkwy

	 Suite 600
	  
	 Suite 205

	 Chicago, IL 60603
	  
	 Henderson, NV 89052

	  
	  
	  

	  
	  
	  

 

 	 	 	
	 /s/ Chirinjeev Kathuria
 Signature
	  
	 /s/ Johnny R. Thomas
 Signature

	 

 Dr. Chirinjeev Kathuria
	  
	 

 Dr. Johnny R. Thomas

	 

 Chairman and President     
	  
	 

 CEO

	 

 Date: 9-3-2013
	  
	 

 Date:

 

 

 Talesun Solar USA Ltd. 
 111 W. Saint John Street 
 Suite 900
 San Jose, CA 95113
  
 	 	
	 /s/ Eric Ma
 Signature
	  

	 

 Name:  Eric Ma
	  

	 

 Title: General Manager

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