Document:

tsla-ex103_1078.htm

EXHIBIT 10.3

 

Confidential Treatment Requested by Tesla Motors, Inc.

 

 

 
 AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT
 

This AMENDMENT NO. 1 TO LOAN AND SECURITY AGREEMENT (this “Amendment”) is made as of November 1, 2016 (the “Effective Date”), by and among Tesla 2014 Warehouse SPV LLC (the “Borrower”), Tesla Finance LLC, as servicer (“TFL”), the lenders (the “Lenders”) and group agents party thereto from time to time, and Deutsche Bank AG, New York Branch, as administrative agent (in such capacity, the “Administrative Agent”).  Capitalized terms used in this Amendment (including the Recitals), to the extent not otherwise defined herein, shall have the respective meanings assigned such terms in the Loan and Security Agreement, dated August 31, 2016 (as may be further amended, restated, amended and restated, modified, or otherwise supplemented, the “Loan and Security Agreement”), among the Borrower, TFL, Lenders and group agents party thereto from time to time and the Administrative Agent.

RECITALS

WHEREAS, the Borrower, TFL and the Administrative Agent desire to make certain amendments to the Loan and Security Agreement on the terms and conditions expressly set forth herein.

NOW, THEREFORE, in consideration of the premises set forth above, the terms and conditions contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

	
 
	
1.
	
Amendments to the Loan and Security Agreement.

a.The definition of “Portfolio Performance Condition” contained in Section Section 1.01 of the Loan and Security Agreement is hereby amended and restated to read in its entirety as follows:

“Portfolio Performance Condition” shall mean, on any date of determination, the occurrence of any one or more of the following events:

(i)         the annualized average of the Delinquency Ratios for any three (3) consecutive Settlement Periods shall exceed [***]; or

(ii)        the Residual Value Performance Ratio, as of any Statistically Significant RVPR Calculation Date shall be less than [***]; or

(iii)       the annualized average of the Credit Loss Ratios for the three (3) most recent Settlement Periods shall exceed [***];

provided, however, that a Portfolio Performance Condition shall no longer be deemed to be continuing if:

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[***] Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions.

 

EXHIBIT 10.3

 

Confidential Treatment Requested by Tesla Motors, Inc.

(x) with respect to the Portfolio Performance Condition referred to in clause (i), the annualized average of the Delinquency Ratios for the three (3) most recent consecutive Settlement Periods subsequent to the occurrence of such Condition shall be less than or equal to [***],

(y) with respect to the Portfolio Performance Condition referred to in clause (ii), the Residual Value Performance Ratio as of the first Statistically Significant RVPR Calculation Date subsequent to the occurrence of such Condition shall be greater than or equal to [***], 

(z) with respect to the Portfolio Performance Condition referred to in clause (iii), the annualized average of the Credit Loss Ratios for the three (3) most recent Settlement Periods subsequent to the occurrence of such Condition shall be less than or equal to [***].

	
 
	
2.
	
Conditions Precedent to Effectiveness of this Amendment.  This Amendment shall not become effective until all of the following conditions precedent shall have been satisfied or waived by:

(a)The Administrative Agent shall have received this Amendment fully executed in a sufficient number of counterparts for distribution to all parties.

(b)The representations and warranties set forth herein and in the Transaction Documents (other than any such representations or warranties that, by their terms, are specifically made as of a date other than the date hereof) shall be true and correct in all material respects. 

(c)The Administrative Agent shall have received all other documents and legal matters in connection with the transactions contemplated by this Amendment and such documents shall have been delivered or executed or recorded and shall be in form and substance reasonably satisfactory to Administrative Agent.

3.Representations and Warranties.  The Borrower and TFL each individually represents and warrants to Administrative Agent and the Lenders as follows:

(a)Authority.  Such Person has the requisite power and authority to execute and deliver this Amendment, and to perform its obligations hereunder and under the Transaction Documents (as amended or modified hereby) to which it is a party.  The execution, delivery and performance by such Person of this Amendment have been duly approved by all necessary action, have received all necessary governmental approval, if any, and do not contravene any law or any contractual restriction binding on such Person, which would be reasonably likely to have a Material Adverse Effect.

(b)Enforceability.  This Amendment and each Transaction Document (as amended or modified hereby) is the legal, valid and binding obligation of such Person, enforceable against such Person in accordance with their terms, except as enforceability may be limited by equitable principles relating to enforceability or by applicable bankruptcy, insolvency, reorganization, moratorium, or similar laws affecting the enforcement of creditors’ rights generally.

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[***] Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions.

 

Confidential Treatment Requested by Tesla Motors, Inc.

(c)Representations and Warranties.  The representations and warranties contained in each Transaction Document (other than any such representations or warranties that, by their terms, are specifically made as of a date other than the date hereof) are true and correct in all material respects on and as of the date hereof as though made on and as of the date hereof.

(d)No Default.  After giving effect to this Amendment, no event has occurred and is continuing that constitutes a Default or Event of Default.

4.Choice of Law.  The validity of this Amendment, the construction, interpretation, and enforcement hereof, and the rights of the parties hereto with respect to all matters arising hereunder or related hereto shall be determined under, governed by, and construed in accordance with the laws of the State of New York.

5.Counterparts.  This Amendment may be executed in any number of counterparts and by different parties and separate counterparts, each of which when so executed and delivered, shall be deemed an original, and all of which, when taken together, shall constitute one and the same instrument.  Delivery of an executed counterpart of a signature page to this Amendment by telefacsimile or other electronic method of transmission shall be effective as delivery of a manually executed counterpart of this Amendment.

6.Reference to and Effect on the Transaction Documents. Upon and after the effectiveness of this Amendment, each reference in the Loan and Security Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import referring to the Loan and Security Agreement, and each reference in the other Transaction Documents to “the Loan and Security Agreement”, “thereof” or words of like import referring to the Loan and Security Agreement, shall mean and be a reference to the Loan and Security Agreement as modified and amended hereby. This Amendment shall constitute a “Transaction Document” for all purposes of the Loan and Security Agreement and the other Transaction Documents. 

 [Remainder of Page Intentionally Left Blank; Signature Pages Follow.]

 

 

 

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[***] Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions. 

Confidential Treatment Requested by Tesla Motors, Inc.

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed by their respective authorized officers as of the day and year first above written.

 

TFL:

 

TESLA FINANCE, LLC

 

 

By: /s/ William Donnelly
Name: William Donnelly
Title:    President

 

 

BORROWER:

TESLA 2014 WAREHOUSE SPV, LLC

By: /s/ Susan Repo
Name: Susan Repo
Title:   Vice President

 

 

[Signature Page to Amendment No. 1 to Loan and Security Agreement]

[***] Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions.

Confidential Treatment Requested by Tesla Motors, Inc.

ADMINISTRATIVE AGENT AND LENDER:

 

DEUTSCH BANK AG, NEW YORK BRANCH

 

 

By: /s/ Katherine Bologna
Name: Katherine Bologna
Title:  Director

 

 

By: /s/ Maureen Farley
Name: Maureen Farley
Title: Vice President

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

[Signature Page to Amendment No. 1 to Loan and Security Agreement]

[***] Information has been omitted and filed separately with the Securities and Exchange Commission. Confidential Treatment has been requested with respect to the omitted portions.Exhibit

EXHIBIT 10.1

EXECUTION VERSION

TERMINATION OF MASTER AGREEMENTS, CONTROL AGREEMENTS AND PLEDGE AGREEMENTS

THIS TERMINATION OF MASTER AGREEMENTS, CONTROL AGREEMENTS AND PLEDGE AGREEMENTS (this “Termination”) is dated as of October 1, 2016, between RENAISSANCE REINSURANCE LTD., a Bermuda company (“RRL”), and CITIBANK EUROPE PLC (the “Bank”).
Background Statement
RRL, RenaissanceRe Specialty Risks Ltd., a Bermuda company (“RSRL”), Platinum Underwriters Bermuda, Ltd., a Bermuda company (“Platinum Bermuda”), certain other Applicants and the Bank are parties to a Facility Letter, dated as of September 17, 2010, as amended by the Letter Agreement, dated July 14, 2011, the Letter Agreement, dated October 1, 2013, the Letter Agreement, dated December 23, 2014, the Letter Agreement, dated March 31, 2015, the Letter Agreement, dated December 30 2015, and the Letter Agreement, dated January 14, 2016 (the “L/C Agreement”).  All capitalized terms used but not defined herein shall have the meanings given to them in the L/C Agreement.

RRL and the Bank entered into an Amended and Restated Pledge Agreement, dated as of November 25, 2014 (the “RRL Pledge Agreement”), pursuant to which RRL granted to the Bank a security interest in custodial account number RREF07520002 (the “RRL Account”) and the property held therein.  RRL, the Bank, and The Bank of New York Mellon, as Custodian, entered into an Amended and Restated Account Control Agreement, dated as of November 25, 2014 (the “RRL Control Agreement”), pursuant to which the Bank perfected its security interest in the RRL Account and the Collateral therein.  
RSRL (formerly known as Glencoe Insurance Ltd.) and the Bank entered into an Insurance Letters of Credit – Master Agreement, dated as of September 17, 2010 (the “RSRL Master Agreement”), providing for the establishment of letters of credit by the Bank.  RSRL and the Bank entered into an Amended and Restated Pledge Agreement, dated as of November 25, 2014 (the “RSRL Pledge Agreement”), pursuant to which RSRL granted to the Bank a security interest in custodial account number RREF06410002 (“RSRL Account”) and the property held therein.  RSRL, the Bank, and The Bank of New York Mellon, as Custodian, entered into an Amended and Restated Account Control Agreement, dated as of November 25, 2014 (the “RSRL Control Agreement”), pursuant to which the Bank perfected its security interest in the RSRL Account and the Collateral therein.  
Platinum Bermuda and the Bank entered into an Insurance Letters of Credit – Master Agreement, dated March 31, 2015 (the “Platinum Bermuda Master Agreement”), providing for the establishment of letters of credit by the Bank.  Platinum Bermuda entered into a Pledge Agreement, dated as of March 31, 2015 (the “Platinum Bermuda Pledge Agreement”), pursuant to which Platinum Bermuda granted to the Bank a security interest in custodial account number RREF8006002 (“Platinum Bermuda Account”) and the property held therein.  Platinum Bermuda, 

the Bank, and The Bank of New York Mellon, as Custodian, entered into an Account Control Agreement, dated as of March 31, 2015 (the “Platinum Bermuda Control Agreement”), pursuant to which the Bank perfected its security interest in the Platinum Bermuda Account and the Collateral therein.
Platinum Bermuda has merged into RSRL and, in turn, RSRL has merged into RRL.  RRL continues as the surviving corporation pursuant to s104A of the Companies Act 1981 of Bermuda.  RRL acknowledges and agrees that, as the surviving corporation, it has assumed all of the rights and obligations of RSRL and Platinum Bermuda under all of the Facility Documents, including without limitation, the L/C Agreement, the RSRL Pledge Agreement, the RSRL Control Agreement, the Platinum Bermuda Pledge Agreement, and the Platinum Bermuda Control Agreement.  Without limiting the generality of the foregoing, RRL acknowledges that it has assumed the obligations of RSRL and Platinum Bermuda under the L/C Agreement with respect to any letters of credit that remain outstanding in the name of RSRL or Platinum Bermuda.
RRL desires to transfer all property held in the RSRL Account and the Platinum Bermuda Account simultaneously into the RRL Account.  The Bank has agreed to this transfer and to the termination of the RSRL Pledge Agreement, the RSRL Control Agreement, the RSRL Master Agreement, the Platinum Bermuda Master Agreement, the Platinum Bermuda Pledge Agreement and Platinum Bermuda Control Agreement in accordance with the terms of this Termination.  
Statement of Agreement
In consideration of the mutual covenants and agreements contained in this Termination, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

		
	1.
	Transfer Authorization.  The Bank authorizes RRL to transfer all property held in the RSRL Account and all property held in the Platinum Bermuda Account to the RRL Account, and such property shall continue to constitute Collateral securing the Secured Obligations (as defined in the RRL Pledge Agreement) of RRL under the RRL Pledge Agreement.  Notice of this provision is hereby given to The Bank of New York Mellon, as Custodian of the RSRL Account and the Platinum Bermuda Account.

		
	2.
	Termination.  Upon the transfer of all property in the RSRL Account and the Platinum Bermuda Account to the RRL Account, the RSRL Master Agreement, the Platinum Bermuda Master Agreement, the RSRL Pledge Agreement, the Platinum Bermuda Pledge Agreement, the RSRL Control Agreement and the Platinum Bermuda Control Agreement shall automatically terminate, except for any provisions that expressly survive termination. 

		
	3.
	 L/C Obligations. RRL acknowledges and agrees that, as the surviving corporation, it has assumed the obligations of RSRL and Platinum Bermuda under the L/C Agreement with respect to any letters of credit that remain outstanding in the name of RSRL or Platinum Bermuda.

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	4.
	Release of Security Interests.  The Bank authorizes RRL to file (or direct any third party to file on its behalf) in the appropriate recording offices all Uniform Commercial Code (“UCC”) termination statements and all other documentation required to fully release of record any security interests or other liens in respect of the RSRL Account and the Platinum Bermuda Account.

		
	5.
	Governing Law. This Termination shall be governed by and construed and enforced in accordance with the laws of the State of New York.

		
	6.
	Counterparts; Delivery of Signature Pages. This Termination may be executed in two or more counterparts each of which will be deemed an original, but all of which together will constitute one and the same instrument.  This Termination may be executed and delivered via facsimile or electronic mail with the same force and effect as if an original were executed.

		
	7.
	Further Assurances. RRL and the Bank, at RRL’s expense, further agree to deliver to one another, such other releases or instruments of termination as the other party may reasonably request, in order to fully effectuate the purposes of this Termination.

[SIGNATURES ON FOLLOWING PAGE]

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IN WITNESS WHEREOF, the parties have caused this Termination to be executed and delivered as of the date first above written.

RENAISSANCE REINSURANCE LTD.

By:    /s/ Stephen H. Weinstein    
Name:    Stephen H. Weinstein    
Title:    SVP    

CITIBANK EUROPE PLC

By:    /s/ Niall Tuckey    
Name:    Niall Tuckey    
Title:    Director    

[Signature Page 1 to Termination of Control and Pledge Agreements]

Solely for purposes of acknowledging Sections 1 and 2:

THE BANK OF NEW YORK MELLON
By: /s/ Dawn V. Robertson             
      Name: Dawn V. Robertson 
      Title: Vice President

[Signature Page 2 to Termination of Control and Pledge Agreements]

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