Document:

ex_142396.htm

Exhibit 10.1

 

 

FIRST ADDENDUM TO 

LOAN AGREEMENT DATED MARCH 22, 2018 

FOR ORMAT TECHNOLOGIES, INC. AS BORROWER 

WITH MIGDAL INSURANCE COMPANY, LTD., 

MIGDAL MAKEFET PENSION AND PROVIDENT FUNDS LTD. AND YOZMA

PENSION FUND OF SELF EMPLOYED LTD.

 

This FIRST ADDENDUM TO THE LOAN AGREEMENT DATED MARCH 22, 2018 FOR ORMAT TECHNOLOGIES, INC. AS BORROWER WITH MIGDAL INSURANCE COMPANY, LTD., MIGDAL MAKEFET PENSION AND PROVIDENT FUNDS LTD. AND YOZMA PENSION FUND OF SELF EMPLOYED LTD. (this “First Addendum”) is made and entered on March 25, 2019, by and between Ormat Technologies, Inc. ("Borrower”) and Migdal Insurance Company, Ltd., Migdal Makefet Pension and Provident Funds Ltd. And Yozma Pension Fund of Self Employed Ltd. ("Lenders"). Each of the Borrower and Lenders may be referred to individually as a “Party” and together as the “Parties”.

 

WHEREAS, the Parties executed the Loan Agreement dated March 22, 2018, pursuant to which Lenders provided Borrower with a loan in an amount of US $100,000,000 (the “Agreement” and the "Loan", respectively);

 

WHEREAS, the outstanding principal amount under the Loan Agreement, as at the date hereof is US $100,000,000 plus accrued interest.

 

WHEREAS, Borrower requested Lenders to provide to Borrower an additional loan in an amount of US $50,000,000 (the “Additional Loan”) in addition to the Loan;

 

WHEREAS, Lenders agreed to make available to the Borrower the Additional Loan under substantially the same terms and conditions of the Agreement and subject to the terms and conditions set forth herein, and

 

WHEREAS, the Parties wish to enter into this First Addendum to the Agreement, in order to set forth the terms and conditions of the Additional Loan, without changing or amending the terms of the Agreement except as otherwise provided herein.

 

NOW, THEREFORE, in consideration of the mutual covenants and undertakings contained herein, and subject to the terms and conditions set forth herein, and with the intent to be bound, the Parties hereto agree as follows:

 

1

 

 

	
			1.

				
			Definitions and Interpretation

			

 

	 	
			1.1

				
			Capitalized terms not defined herein shall have the meaning ascribed to such terms in the Agreement.

			

 

	 	
			1.2

				
			In this First Addendum: 

			

 

Finance Document means:

 

	 	
			(a)

				
			the Agreement;

			

 

	 	
			(b)

				
			a Transfer Certificate under the Agreement or under this First Addendum;

			

 

	 	
			(c)

				
			the Utilization Request under the Agreement or under this First Addendum

			

 

	 	
			(d)

				
			this First Addendum; and

			

 

	 	
			(e)

				
			any other document designated as such by the Lenders and the Borrower.

			

 

	 	
			Interest Payment Date means (i) September 15, 2019, and (ii) the 15th day of each March and September thereafter until the Last Repayment Date, and all as set forth in Schedule 2 (Repayment Schedule).

			

 

Loan Amount means:

 

	 	
			(a)

				
			in relation to an Original Lender, the amount set opposite its name under the heading "Loan Amount" in Schedule 1 (The Parties) and any other Loan Amount transferred to it under this First Addendum; and

			

 

	 	
			(b)

				
			in relation to any other Lender, the Loan Amount transferred to it under this Addendum,

			

 

to the extent not cancelled, reduced or transferred by it under the terms of this First Addendum.

 

Original Financial Statements means the Borrower's annual audited consolidated financial statements for the year 2018.

 

Utilisation Request means a notice substantially in the form set out in Schedule 3 (Utilisation Request).

 

2

 

 

	
			2.

				
			The Additional Loan

			

 

	 	
			2.1

				
			Subject to the terms of this First Addendum, the Lenders shall make to the Borrower an Additional Loan in an aggregate amount of US $50,000,000 (fifty million US dollars).

			

 

	 	
			2.2

				
			The Lenders will only be obliged to make the Additional Loan if, on the date of the Utilization Request and on the proposed Utilization Date:

			

 

	 	
			(a)

				
			the Lenders shall have received:

			

 

	 	
			(i)

				
			all of the documents and other evidence listed in Schedule 4 (Conditions Precedent) in form and substance satisfactory to the Lenders; and

			

 

	 	
			(ii)

				
			a duly completed Utilization Request, in accordance with the provisions of Clause 3.1 (Delivery of a Utilisation Request) of the Agreement and Schedule 3 hereto.

			

 

	 	
			(b)

				
			no Default under the Loan or Additional Loan is continuing or would result from the Additional Loan; and

			

 

	 	
			(c)

				
			all representations made by the Borrower under the Finance Documents are true and complete.

			

 

	 	
			(d)

				
			The Borrower shall have complied with all of its covenants under the Agreement.

			

 

	 	
			(e)

				
			There shall be no legal impediment pursuant to any applicable law or regulation binding upon Lenders with respect to the grant of Additional Loan.

			

 

 

	
			3.

				
			Utilisation of the Additional loan

			

 

	 	
			3.1

				
			Delivery of a Utilisation Request

			

 

The Utilisation Request is irrevocable and will not be regarded as having been duly completed unless:

 

	 	
			(f)

				
			the Utilisation Request is delivered to Lenders on the date of the execution of this First Addendum.

			

 

	 	
			(g)

				
			the amount of the requested Additional Loan is the total amount of the Additional Loan (US $50,000,000).

			

 

	 	
			(h)

				
			The currency specified in the Utilisation Request is US dollars.

			

 

	 	
			(i)

				
			The proposed Utilisation Date specified in the Utilisation Request will be 3 (three) Business days following the date hereof.

			

 

3

 

 

	 	
			3.2

				
			Advancing the Loan

			

 

Subject to the terms and conditions of this Agreement, on the Utilisation Date, the Lenders shall advance the Loan to account number 78556092 in branch number 10 (Tel Aviv main branch) of Israel Discount Bank Ltd, in the name of the Borrower (Swift code: IDBLILIT; IBAN (USD): IL39-0110-1000-0007-8556-092).

 

	
			4.

				
			Repayment of the Additional loan

			

 

	 	
			4.1

				
			The Borrower shall repay the principal of the Additional Loan in installments, as follows:

			

 

	 	
			(a)

				
			a principal amount of US $31,500,000 (thirty one million five hundred thousand US dollars) of the Additional Loan shall be repaid in 15 (fifteen) equal semi-annual installments, every March 15 and September 15, with the first payment being on March 15, 2021 and the last repayment date being September 15, 2028.

			

 

	 	
			(b)

				
			a principal amount of US $18,500,000 (eighteen million five hundred thousand US dollars) of the Additional Loan shall be repaid in one bullet payment on March 15, 2029 (the “Last Repayment Date”)

			

 

and all as set forth in Schedule 2 (Repayment Schedule).

 

	 	
			4.2

				
			Payments to the Lenders 

			

 

All payments to be made by the Borrower under the Finance Documents shall be made in US dollars, directly to the accounts specified in the table appearing in Part III of Schedule 1 (The Parties), pro rata between such accounts, in accordance with the respective rate specified with respect to each account in such table.

 

 

	
			5.

				
			Interest

			

 

	 	
			5.1

				
			Interest Rate

			

 

The rate of interest of the Additional Loan is a fixed rate of 4.6% per annum.

 

	 	
			5.2

				
			Payment of interest

			

 

The Borrower shall pay the accrued interest on the Loan on each Interest Payment Date. 

 

 

	
			6.

				
			GENERAL

			

 

	 	
			6.1

				
			The Borrower hereby confirms and covenants that no change has occurred to the representations and warranties given in the Agreement, other than changes occurring in the ordinary course of business and which have no adverse material affect on the Borrower, its business activity, or Lenders’ rights under the Agreement or this First Addendum or which were disclosed by the Borrower through its public filings.

			

 

	 	
			6.2

				
			The Parties further agree that, except as specifically modified by the provisions of this First Addendum, the provisions of the Agreement shall apply and govern this First Addendum, mutatis mutandis.

			

 

	 	
			6.3

				
			This First Addendum may be executed in separate counterparts, each of which shall be deemed an original, but together shall constitute one and the same instrument.

			

 

4

 

 

IN WITNESS WHEREOF, the Parties have entered into this First Amendment on March 25, 2019.

 

 

 

 

	
			Ormat Technologies, Inc.

				
			Migdal Insurance Company  

			
	 	 
	 	 
	 	 
	
			By: _/s/Doron Blachar/Hezi Kattan          

			Name: Doron Blachar/Hezi Kattan          

			Title: CFO/ CG& CCO  

				
			By: /s/ Doron Sapir/Asaf Shoham

			Name: Doron Sapir/ Asaf Shoham

			Title: CEO \ CIO

			

 

 

             

 

	
			Migdal Makefet Pension and 

				
			Yozma Pension Fund of Self Employed

			
	
			Provident Funds Ltd.

				
			Ltd.

			
	 	 
	 	 
	 	 
	
			By: By:/s/Doron Sapir/Asaf Shoham 

			 

			Name: Doron Sapir/ Asaf Shoham   

			 

			Title: CEO \ CIO         

				
			By:/s/Doron Sapir/Asaf Shoham

			 

			Name: Doron Sapir/ Asaf Shoham

			 

			Title: CEO \ CIO

			

 

5

 

 

SCHEDULE 1

THE PARTIES

 

 

 

Part I

The Borrower 

 

	
			Ormat Technologies, Inc

			As Borrower

				
			Registration number (or equivalent, if any)

			Jurisdiction of Incorporation - Delaware, USA

			

 

 

Part II

 

The Lenders

 

	
			Name of Original Lender

				
			Loan Amount

			
	
			Migdal Insurance Company Ltd.

				
			USD 30,154,956.31 (Thirty million one hundred and fifty-four thousand nine hundred and fifty-six dollars and thirty-one cents

			
	 	 
	
			Migdal Makefet Pension and Provident Funds Ltd.

				
			USD 19,471,719.55(Nineteen million four hundred and seventy-one thousand seven hundred and nineteen dollars and fifty-five cents

			
	 	 
	
			Yozma Pension Fund of Self Employed Ltd.

				
			USD 373,324.14 (Three hundred seventy-three thousand three hundred and twenty-four dollars and fourteen cents

			

 

6

 

 

Part III

 

Payments Accounts 

 

 

 

	Account Details	
			Respective rate of

			payment per account

			
	
			Account number 669509 in branch number 600 of Bank Hapoalim, Israel, in the name of Migdal Insurance Makefet Yozma – Amitim

				
			90.21876%

			
	
			Account number 669487 in branch number 600 of Bank Hapoalim, Israel, in the name of Migdal Insurance Makefet Yozma - Nostro

				
			9.78124%

			

 

7

 

 

schedule 2

 

REPAYMENT SCHEDULE

 

 

 

	
			Date

				
			Interest payment

			(thousands of dollars)

				
			Principal

			repayment

			(thousands of dollars)

				
			Balance of

			principal

			(thousands of dollars)

			
	
			28/03/19

				
			 -

				
			-

				
			50,000

			
	
			15/09/19

				
			1,078

				
			-

				
			50,000

			
	
			15/03/20

				
			1,147

				
			-

				
			50,000

			
	
			15/09/20

				
			1,159

				
			-

				
			50,000

			
	
			15/03/21

				
			1,141

				
			-

				
			50,000

			
	
			15/09/21

				
			1,159

				
			2,100

				
			47,900

			
	
			15/03/22

				
			1,093

				
			2,100

				
			45,800

			
	
			15/09/22

				
			1,062

				
			2,100

				
			43,700

			
	
			15/03/23

				
			997

				
			2,100

				
			41,600

			
	
			15/09/23

				
			965

				
			2,100

				
			39,500

			
	
			15/03/24

				
			906

				
			2,100

				
			37,400

			
	
			15/09/24

				
			867

				
			2,100

				
			35,300

			
	
			15/03/25

				
			805

				
			2,100

				
			33,200

			
	
			15/09/25

				
			770

				
			2,100

				
			31,100

			
	
			15/03/26

				
			709

				
			2,100

				
			29,000

			
	
			15/09/26

				
			672

				
			2,100

				
			26,900

			
	
			15/03/27

				
			614

				
			2,100

				
			24,800

			
	
			15/09/27

				
			575

				
			2,100

				
			22,700

			
	
			15/03/28

				
			521

				
			2,100

				
			20,600

			
	
			15/09/28

				
			478

				
			2,100

				
			18,500

			
	
			15/03/29

				
			422

				
			18,500

				
			0

			

  

8

 

 

SCHEDULE 3

 

Utilisation Request

 

From:     Ormat Technologies, Inc.

 

To:         All Original Lenders

 

Dated:

 

Dear Sirs

 

Ormat Technologies, Inc. - $50,000,000 loan agreement

dated March 25, 2019 (the "First Addendum")

 

	
			1.

				
			We refer to the First Addendum. This is a Utilisation Request. Terms defined in the Agreement have the same meaning in this Utilisation Request unless given a different meaning in this Utilisation Request or the First Addendum.

			

 

	
			2.

				
			We wish to borrow the Additional Loan on the following terms:

			

 

	
			Proposed Utilisation Date:

				
			28.3.2019 (or, if that is not a Business Day, the next Business Day)

			
	 	 
	
			Currency of Loan:

				
			US dollars

			
	 	 
	
			Amount:

				
			US$50,000,000 (fifty million US dollars)

			
	 	 
	
			Interest Period:

				
			Shall be in accordance with the provisions of Clause 9.1 of the Loan Agreement dated March 22, 2018, pursuant to which Lenders provided Borrower with a loan in an amount of US $100,000,000 (the "Agreement").

			

 

	
			3.

				
			We confirm that each condition specified in Clause 2.2 of the First Addendum is satisfied on the date of this Utilisation Request.

			

 

	
			4.

				
			The proceeds of this Additional Loan should be credited to account number 78556092 in branch number 10 (Tel Aviv main branch) of Israel Discount Bank Ltd, in the name of the Borrower (Swift code: IDBLILIT; IBAN (USD): IL39-0110-1000-0007-8556-092).

			

 

Attached hereto is a signed bank confirmation of the account details.

 

	
			5.

				
			We confirm that no Default is continuing or might reasonably be expected to result from the making of the Additional Loan.

			

 

	
			6.

				
			This Utilisation Request is irrevocable.

			

 

Yours faithfully

...................................................

authorised signatory for

Ormat Technologies, Inc.

 

9

 

 

sCHEDULE 4

 

Conditions Precedent to Utilisation of the ADDITIONAL loAn

 

	
			1.

				
			Corporate Documentation 

			

 

A certificate signed by a director or officer of the Borrower:

 

	 	
			(a)

				
			attaching a copy, certified as correct, complete and in full force and effect as at the Utilization Date, of each of the following documents:

			

 

	 	
			(i)

				
			its constitutional documents including any amendments or confirmation that the constitutional documents delivered to the Lenders are complete and up to date.

			

 

	 	
			(ii)

				
			resolution of (x) the board of directors or equivalent body of the Borrower and (y) to the extent required, the shareholders or equivalent body of the Borrower:

			

 

	 	
			(A)

				
			approving the terms of, and the transactions contemplated by, the Finance Documents and resolving that it execute, deliver and perform the Finance Documents.

			

 

	 	
			(B)

				
			authorizing a person or persons to execute the Finance Documents;

			

 

	 	
			(C)

				
			authorizing a specified person or persons, on its behalf, to sign and/or deliver all documents and notices (including the Utilization Request) to be signed and/or delivered by it under or in connection with the Finance Documents

			

 

	 	
			(b)

				
			including a copy of the passport of each person authorized by the resolution referred to in paragraph (a) above to execute the Finance Documents;

			

 

	 	
			(c)

				
			including a specimen of the signature of each person authorized by the resolution referred to in paragraph (a) above.

			

 

	 	
			(d)

				
			confirming that:

			

 

	 	
			(i)

				
			each document delivered to the Lenders in accordance with this Schedule 4 (Conditions Precedents) is correct, complete and in full force and effect as at the Utilization Date.

			

 

	 	
			(ii)

				
			no Default is continuing or might reasonably be expected to result from the making of the Additional Loan or the entry into, the performance of, or any transaction contemplated by, any Finance Document.

			

 

	 	
			(iii)

				
			all representations made by the Borrower under the Finance Documents are true. 

			

 

	 	
			(e)

				
			Confirming that all conditions precedent to the utilization of the Loan as set forth in clause 2.2 of the First Addendum have been fulfilled.

			

 

	
			2.

				
			Transaction Documents

			

 

At least one original copy of each Finance Document executed by the parties thereto.

 

10

 

 

	
			3.

				
			Legal Opinions 

			

 

The following legal opinions, each addressed to the Original Lenders and capable of being relied upon by any person who become a Lender under the Agreement:

 

	 	
			(a)

				
			A legal opinion of Goldfarb Selgiman & Co., legal advisers to the Borrower as to the laws of the state of Israel, as to, inter alia, the validity and enforceability of the Finance Documents.

			

 

	 	
			(b)

				
			A legal opinion of Norton Rose Fulbright, legal advisers to the Borrower, as to the laws of the United States and the State of Delaware, as to, inter alia, the capacity and authority of the Borrower to execute the Finance Documents, the choice of law and venue apply to the Finance Documents.

			

 

	
			4.

				
			Other Documents and Evidence

			

 

	 	
			(a)

				
			The Original Financial Statements.

			

 

	 	
			(b)

				
			A copy of any other Authorization or other document, opinion or assurance which the Lenders consider to be necessary or desirable in connection with the entry into and performance of the transactions contemplated by any Finance Document or for the validity and enforceability of any Finance Document.

			

 

 

11ex_142398.htm

Exhibit 10.2

 

- 1 -

 

 

 

AMENDMENT TO THE

 

EMPLOYMENT AGREEMENT

 

 

THIS AMENDMENT TO THE EMPLOYMENT AGREEMENT that was entered into as of the 11 day of February 2014 (the "Agreement"), by and between Ormat Technologies, Inc., a Delaware corporation with offices at 6225 Neil Road, Reno, Nevada (the "Ormat"); Ormat Systems Ltd., an Israeli company and a wholly owned subsidiary of the Company with offices at Szydlowki Road Yavne, Israel (the "Company"); and Isaac Angel, ID Number 012735478, residing at 43 Haparsa Street, Tel Aviv, Israel (the "Executive"), is entered into as of December 1, 2017 (the "Amendment").

 

 

WHEREAS: The Executive serves as the CEO of both Ormat and the Company, as described in section 1(b) of the Agreement; and

 

 

WHEREAS: the parties are engaged under the terms and conditions set forth in the Agreement; and

 

 

WHEREAS: the parties wish to amend certain terms and conditions set forth in the Agreement as provided in this Amendment below;

 

 

NOW, THEREFORE, the parties agree as follows:

 

 

	
			1.

				
			The provisions specified hereunder shall form an integral part of the Agreement.

			

 

	
			2.

				
			The Agreement and this Amendment are complimentary to each other and shall be deemed as one.

			

 

	
			3.

				
			Starting on December 1, 2017 the sum of Base Salary as set forth in Section 1.1 of Appendix A of the Agreement shall be amended to NIS 178,420 (gross) per month, on a nominal basis.

			

 

	
			4.

				
			Sections 3 to Appendix A of the Agreement shall be replaced as follows:

			

 

"3. Clawback Provision for Restricted Stock Units and SARs

 

3.1 On May 8th 2018 the Executive was granted with:

 

	 	
			(a)

				
			39,615 Restricted Stock Units exercisable into Ormat's stocks under the Company’s 2018 Incentive Compensation Plan and the provisions of the award agreement signed between the Executive and the Company (the "RSUs" and the "RSU Agreement"); and

			

 

	 	
			(b)

				
			294,899 Stock Appreciation Rights exercisable into Ormat's stocks under the Company’s 2018 Incentive Compensation Plan and the provisions of the award agreement signed between the Executive and the Company (the "SARs" and the "SAR Agreement").

			

 

	 	
			(c)

				
			Such RSUs and SARs granted to the Executive are collectively referred to herein as the “Equity Incentive Grants.” Under the RSU Agreement and the SAR Agreement the Equity Incentive Grants shall become vested in four tranches (each, a "Tranche").

			

 

 

- 2 -

 

3.2. Based on the resolution of the compensation committee and the board of directors of Ormat (the "Board”), Section 9 of the RSU Agreement and Section 18 of the SAR Agreement, and in addition to the any other term and provision of the RSU Agreement and the SAR Agreement, it is hereby agreed that a portion of up to 25% of each of the Tranches of the Equity Incentive Grants will be subject to the clawback provisions set forth below, which execution will be subject to the sole discretion of the Board:

 

	 	
			3.2.1

				
			Application. the Board may (in accordance with section 3.2.3 below) at any time prior to the second anniversary of the vesting of each of the Tranches of the Equity Incentive Grants (the “Clawback Period”), reduce (including reduce to nil) up to 25% the value of each of the Tranches of the Equity Incentive Grants not already vested and/or paid, and/or clawback the value of each of the Tranches of the Equity Incentive Grants already vested by requiring the Executive to repay or return to the Company or to Ormat an amount of up to 25% of the Equity Incentive Grants which has already been paid or vested.

			

 

	 	
			3.2.2

				
			Tigger Events

			

 

   The clawback may be exercised by the Board at any time during the Clawback Period, subject to the occurrence of any of the following events during the Applicable Period (each, a "Trigger Event"):

 

	 	
			(a)

				
			the Executive took part in illegal activity, violation of fiduciary duty, intentional violation or grossly negligent disregard of Ormat's or the Company's policies, rules, and procedures in a way that caused materially significant damage to Ormat or the Company during the Applicable Period; provided, however that there is a direct connection between the acts or omissions committed by the Executive himself, and between the materially significant damage;

			

 

or 

 

	 	
			(b)

				
			an event or a set of events which occurred during both (i) the period in which the Executive served as the CEO of the Company or Ormat and (ii) the Applicable Period, and which caused Ormat or the Company to incur a Materially Significant Write-off.

			

 

For the purposes of this section 3.2.2(b) a "Materially Significant Write-off" is a write-off of assets and/or the Company taking a materially significant charge to earnings or other related restatement, such that the recorded amount of assets and/or earnings is reduced at a value equal to, or higher than, $200 million, as shall be reflected in Ormat's audited financial annual reports for the relevant period.

 

For the purposes of this section 3.2.2 the "Applicable period" shall be a period which starts two (2) years prior to the date of vesting of each of the Tranches of the Equity Incentive Grants and until the ends at the lapse of the Clawback Period.

 

 

- 3 -

 

	 	
			3.2.3

				
			Types of Adjustment

			

 

Following a Trigger Event, the Board may:

 

	 	
			(a)

				
			reduce or clawback a portion (up to 25%) of each of the Tranches of the Equity Incentive Grants, including any shares or other consideration received from the exercise or sale of the Equity Incentive Grants or underlying shares thereof;

			

 

	 	
			(b)

				
			determine that a portion (up to 25%) of each of the Tranches of the Equity Incentive Grants will not vest (or, in the case of SARs, will not be exercisable); and

			

 

	 	
			(c)

				
			amend any condition applying to up to 25% of the the Equity Incentive Grants and/or set additional conditions for vesting (or exercise).

			

 

	 	
			3.2.4

				
			Held Consideration. 

			

 

In order to facilitate the implementation of the clawback provisions herein, up to 25% of the vested RSUs (i.e. Ormat's stocks issued with respect to such RSUs) and SARs (or the cash consideration received upon the sale of the underlying stocks), shall continue to be held by Ormat, or by the Trustee, as the case may be (such RSUs and SARs and its underlying stocks or cash as indicated above, as the case may be, together, the "Held Consideration"), and such Held Consideration shall not be transferable for a period of 24 months from the date the RSU and SAR became vested (the "Held Consideration Period").

 

	 	
			(a)

				
			In the event that the Board determines that a clawback is required, the Board will look first to the Held Consideration amount.

			

 

	 	
			(b)

				
			In the event that any of such Held Consideration is clawed back, it will be deemed forfeited (the "Forfeited Held Consideration")–1, subject to withholding any applicable tax, if applicable.

			

 

	 	
			(c)

				
			It is hereby clarified that the Forfeited Held Consideration will be remitted and transferred to Ormat, or the Company, only after withholding of any applicable tax due from the Forfeited Held Consideration and the Executive shall not be required to pay any additional sums or taxes upon the execution of such clawback provision (i.e. Ormat or the Company shall receive only the net Forfeited Held Consideration).

			

 

	 	
			(d)

				
			Upon expiration of the Held Consideration Period, the Held Consideration shall be released, and become freely transferable, subject to all other terms, conditions and restrictions that apply to such RSUs and SARs (e.g. the terms of the SAR Agreement, RSU Agreement, the Company’s 2018 Incentive Compensation Plan and any applicable law) and the payment of any applicable tax from such Held Consideration, to the extent applies.

			

 

 

1 With respect to any outstanding underlying stock, if issued, Ormat and/or the Company may effectuate a sale of all or a portion of the underlying stocks out of the Restricted Portion, and transfer the consideration received upon such sale, after withholding applicable, tax to the Company or to Ormat, instead of forfeiting the underlying stock – all subject to Ormat and/or the Company's sole and absolute discretion and consideration.

 

 

- 4 -

 

	 	
			(e)

				
			All applicable taxes and other obligatory and compulsory payments that may arise with respect to the grant, exercise, and vesting of the SARs and RSUs, or its expiration, or the sale of the stocks underlying the SARs and RSUs, or the forfeiture of the Forfeited Held Consideration shall be borne solely by the Executive."

			

 

	
			5.

				
			Section 4.1 of Appendix A of the Agreement shall be amended and replaced with the following, which shall apply to the period starting on December 1, 2017:

			

 

"4.1. If the Company's annual consolidated net income ("Annual Profits") are above $20 million, as determined pursuant to the Company's financial statements:

 

	 	
			4.1.1.

				
			Executive will be entitled to receive an annual bonus (the "Annual Profits Bonus") calculated out of a budget (the "Bonus Budget") equal to (a) 0.75% for Annual Profits of up to $50 million (inclusive), and (b) 1.00% for the portion of the Annual Profits, if any, that is above $50 million; provided that in any event the Bonus Budget and the Annual Profits Bonus shall each not exceed $675,000.

			

 

and

 

	 	
			4.1.2.

				
			Executive will be entitled to receive an additional annual bonus (the "Annual KPI Bonus"). The Annual KPI Bonus shall be granted according to the discretion and approval of the relevant Company's organs and subject to applicable law, based on the achievement of other goals, such as diversity, social and environmental responsibility and merger and acquisition activities; provided that in any event the Annual KPI Bonus shall not exceed $225,000.

			

 

The Annual Profits Bonus and the Annual KPI Bonus shall be called herein, together, the "Annual Bonus"."

 

The above shall not derogate from the powers and authority of the relevant organs of the Company or Ormat to approve any other form of bonus or other benefit to the Executive.

 

	
			6.

				
			The definition in Section 10 of the Agreement shall be replaced by the following:

			

 

"Change of Control" shall mean the consummation of any of the following events, in a single transaction or in a series of related transactions: (i) the acquisition of Ormat by another person (s) or entity by means of a merger, reorganization, consolidation or similar event in which such person (s) will hold, immediately after such acquisition, more than 50% of the outstanding voting power of Ormat, the acquiring, resulting or surviving corporation; or (ii) the sale of all or substantially all of the assets of Ormat (on a consolidated basis) to another entity (except an entity that is one of the Ormat's subsidiaries or affiliates or affiliated with any of the Ormat's then-current principal stockholders). The term "Change of Control" shall not include any transaction or series of related transactions that are part of an internal voluntary reorganization and/or restructuring of the Company and/or its subsidiaries and affiliates that does not involve the acquisition of control by a third party not affiliated with Ormat, its subsidiaries and affiliates, such as a change in the state of incorporation of the Ormat and/or acquisition by the Company of its own shares from any person.

 

 

- 5 -

 

	
			7.

				
			The remaining terms of the Agreement shall remain unchanged.

			

 

	
			8.

				
			The above terms shall form an integral part of the Agreement and shall be deemed due notification regarding amendment of Executives employment terms in accordance with the provisions of Information for Employees and Employee Candidates Law (Working Conditions and Procedures for Screening and Hiring), 2002 and the regulations thereunder.

			

 

 

 

 

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- 6 -

 

IN WITNESS WHEREOF, the parties have caused this Amendment to be executed effective as of the Effective Date.

 

 

ORMAT TECHNOLOGIES, INC.                

 

 

	By: /s/ Todd Freeland                                      

			Name: Todd C. Freeland                     

			Title: Chairman of the Board of Directors	
			By: /s/ Ravit Barniv 

			Name: Ravit Barniv     

			Title: Compensation Committee, Chair

			

        

 

 

ORMAT SYSTEMS LTD.                

 

By: /s/                        

Name:

Title:

 

 

 

EXECUTIVE:

 

ISAAC ANGEL                

 

By: /s/ Isaac Angel

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