Document:

fdnh-ex41_117.htm

 

Exhibit 4.1

AMENDED AND RESTATED

Common Stock Purchase WarranT

FOUNDATION HEALTHCARE, INC.

 

	
Warrant Shares:                                
	
Original Issue Date: June 20, 2011

	
Warrant No.                                      
	
Amended and Restated Date:  June 20, 2016

 

THIS COMMON STOCK PURCHASE WARRANT (the “Warrant”) certifies that, for value received, ___________________ (the “Holder”) is entitled, upon the terms and subject to the limitations on exercise and the conditions hereinafter set forth, at any time on or after the Issue Date and on or prior to the close of business on the six-year anniversary of the Issue Date (the “Termination Date”) but not thereafter, to subscribe for and purchase from Foundation Healthcare, Inc., an Oklahoma corporation, f/k/a Graymark Healthcare, Inc. (the “Company”), up to xx,xxx shares (the “Warrant Shares”) of its common stock, par value $0.0001 per share (the “Common Stock”).  The purchase price of one share of Common Stock under this Warrant shall be equal to the Exercise Price, as defined in Section 2(b).  

This Warrant is being amended and restated to, among other things, (i) provide for a change in the name of the Company from Graymark Healthcare, Inc. to Foundation Healthcare, Inc., (ii) to affect 1-for-10 reverse split of the Company’s common stock that was effective on January 8, 2015, (iii) to affect anti-dilution adjustments since the original issue date and (iv) to extend the Termination Date to June 20, 2017.

Section 1.Definitions.  Capitalized terms used herein shall have the meanings given to them herein.  As used herein, (i) “business day” means any day on which the New York Stock Exchange, Inc. is open for trading, and (ii) “Affiliate” has the meaning ascribed to it in Rule 12b-2 under the Securities Exchange Act of 1934, as amended (the “Exchange Act”). 

Section 2.Exercise.

a)Exercise of Warrant.  Exercise of the purchase rights represented by this Warrant may be made, in whole or in part, at any time or times on or after the Issue Date and on or before the Termination Date by delivery to the Company (or such other office or agency of the Company as it may designate by notice in writing to the registered Holder at the address of the Holder appearing on the books of the Company) of a duly executed facsimile copy of the Notice of Exercise Form annexed hereto; and, within three trading days of the date said Notice of Exercise is delivered to the Company, the Company shall have received payment of the aggregate Exercise Price of the shares thereby purchased by wire transfer or cashier’s check drawn on a United States bank.  Notwithstanding anything herein to the contrary, the Holder shall not be required to physically surrender this Warrant to the Company until the Holder has purchased all of the Warrant Shares available hereunder and the Warrant has been exercised in full, in which case, the Holder shall surrender this Warrant to the Company for cancellation within three trading days of the date the final Notice of Exercise is delivered to the Company.  Partial exercises of this Warrant resulting in purchases of a portion of the total number of 

 

 

Warrant Shares available hereunder shall have the effect of lowering the outstanding number of Warrant Shares purchasable hereunder in an amount equal to the applicable number of Warrant Shares purchased.  The Company shall maintain in the Warrant Register (as defined below) records showing the number of Warrant Shares purchased and the date of such purchases.  The Company shall deliver any objection to any Notice of Exercise Form within one business say of receipt of such notice.  The Holder and any assignee, by acceptance of this Warrant, acknowledge and agree that, by reason of the provisions of this paragraph, following the purchase of a portion of the Warrant Shares hereunder, the number of Warrant Shares available for purchase hereunder at any given time may be less than the amount stated on the face hereof. 

b)Exercise Price.  The exercise price per share of the Common Stock under this Warrant shall be $12.42, subject to adjustment hereunder (the “Exercise Price”).

c)Mechanics of Exercise. 

i.Delivery of Certificates Upon Exercise.  Certificates for shares purchased hereunder shall be transmitted by the Company’s transfer agent to the Holder by crediting the account of the Holder’s prime broker with the Depository Trust Company (“DTC”) through its Deposit Withdrawal Agent Commission (“DWAC”) system if the Company is then a participant in such system and there is an effective registration statement permitting the issuance of the Warrant Shares to or resale of the Warrant Shares by Holder, and otherwise by physical delivery to the address specified by the Holder in the Notice of Exercise by the date that is three trading days after the latest of (A) the delivery to the Company of the Notice of Exercise Form, (B) surrender of this Warrant (if required) and (C) payment of the aggregate Exercise Price as set forth above (such date, the “Warrant Share Delivery Date”).  This Warrant shall be deemed to have been exercised on the first date on which all of the foregoing have been delivered to the Company.  The Warrant Shares shall be deemed to have been issued, and Holder or any other person so designated to be named therein shall be deemed to have become a holder of record of such shares for all purposes, as of the date the Warrant has been exercised, with payment to the Company of the Exercise Price and all taxes required to be paid by the Holder, if any, pursuant to Section 2(c)(vi) prior to the issuance of such shares, having been paid.  If the Company fails for any reason to deliver to the Holder certificates evidencing the Warrant Shares subject to a Notice of Exercise by the Warrant Share Delivery Date, the Company shall pay to the Holder, in cash, as liquidated damages and not as a penalty, for each $1,000 of Warrant Shares subject to such exercise (based on the VWAP (as defined below) of the Common Stock on the date of the applicable Notice of Exercise), $10.00 per trading day (increasing to $20.00 per trading day on the fifth trading day after such liquidated damages begin to accrue) for each trading day after such Warrant Share Delivery Date until such certificates are delivered or Holder rescinds such exercise. 

“VWAP” means, for any date, the price determined by the first of the following clauses that applies: (a) if the Common Stock is then listed or quoted on NYSE Amex, The NASDAQ Capital Market, The NASDAQ Global Market, The NASDAQ Global Select Market or the New York Stock Exchange (each, a “Trading Market”), the daily volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the Trading Market on which the Common Stock is then listed or quoted as reported by Bloomberg L.P. (based on a trading day from 9:30 a.m. (New York City time) to 4:02 p.m. (New York City 

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time), (b) if the OTC Bulletin Board is not a Trading Market, the volume weighted average price of the Common Stock for such date (or the nearest preceding date) on the OTC Bulletin Board, (c) if the Common Stock is not then listed or quoted for trading on the OTC Bulletin Board and if prices for the Common Stock are then reported in the “Pink Sheets” published by Pink OTC Markets, Inc. (or a similar organization or agency succeeding to its functions of reporting prices), the most recent bid price per share of the Common Stock so reported, or (d) in all other cases, the fair market value of a share of Common Stock as determined by an independent appraiser selected in good faith by the Holders of a majority in interest of the Warrants then outstanding and reasonably acceptable to the Company, the fees and expenses of which shall be paid by the Company

ii.Delivery of New Warrants Upon Exercise.  If this Warrant shall have been exercised in part, the Company shall, at the request of a Holder and upon surrender of this Warrant certificate, at the time of delivery of the certificate or certificates representing Warrant Shares, deliver to Holder a new Warrant evidencing the rights of Holder to purchase the unpurchased Warrant Shares called for by this Warrant, which new Warrant shall in all other respects be identical with this Warrant.

iii.Rescission Rights.  If the Company fails to cause its transfer agent to transmit to the Holder a certificate or the certificates representing the Warrant Shares pursuant to Section 2(c)(i) by the Warrant Share Delivery Date, then, the Holder will have the right to rescind such exercise.

iv.Compensation for Buy-In on Failure to Timely Deliver Certificates Upon Exercise.  In addition to any other rights available to the Holder, if the Company fails to cause its transfer agent to transmit to the Holder a certificate or the certificates representing the Warrant Shares pursuant to an exercise on or before the Warrant Share Delivery Date, and if after such date the Holder is required by its broker to purchase (in an open market transaction or otherwise) or the Holder’s brokerage firm otherwise purchases, shares of Common Stock to deliver in satisfaction of a sale by the Holder of the Warrant Shares which the Holder anticipated receiving upon such exercise (a “Buy-In”), then the Company shall, within three trading days after the Holder’s request and in the Holder’s discretion, either (A) pay cash to the Holder in an amount equal to the Holder’s total purchase price (including brokerage commissions, if any) for the shares of Common Stock so purchased (the “Buy-In Price”), at which point the Company’s obligation to deliver such certificate (and to issue such Warrant Shares or credit such Holder’s balance account with DTC) shall terminate, or (B) promptly honor its obligation to deliver to the Holder a certificate or certificates representing such Warrant Shares or credit such Holder’s balance account with DTC and pay cash to the Holder in an amount equal to the excess (if any) of the Buy-In Price over the product of (1) such number of shares of Common Stock, times (2) the VWAP on the date of exercise.

v.No Fractional Shares or Scrip.  No fractional shares or scrip representing fractional shares shall be issued upon the exercise of this Warrant.  As to any fraction of a share which the Holder would otherwise be entitled to purchase upon such exercise, the Company shall, at its election, either pay a cash adjustment in respect of such final fraction in an amount equal to such fraction multiplied by the Exercise Price or round up to the next whole share.

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vi.Charges, Taxes and Expenses.  Issuance of certificates for Warrant Shares shall be made without charge to the Holder for any issue or transfer tax or other incidental expense in respect of the issuance of such certificate, all of which taxes and expenses shall be paid by the Company, and such certificates shall be issued in the name of the Holder or in such name or names as may be directed by the Holder; provided, however, that in the event certificates for Warrant Shares are to be issued in a name other than the name of the Holder, this Warrant when surrendered for exercise shall be accompanied by the Assignment Form attached hereto duly executed by the Holder and the Company may require, as a condition thereto, the payment of a sum sufficient to reimburse it for any transfer tax incidental thereto. 

vii.Closing of Books.  The Company will not close its stockholder books or records in any manner which prevents the timely exercise of this Warrant, pursuant to the terms hereof.

d)Holder’s Exercise Limitations.  The Company shall not effect any exercise of this Warrant, and a Holder shall not have the right to exercise any portion of this Warrant, pursuant to Section 2 or otherwise, to the extent that after giving effect to such issuance after exercise as set forth on the applicable Notice of Exercise, the Holder (together with the Holder’s Affiliates, and any other Persons (as defined below) acting as a group together with the Holder or any of the Holder’s Affiliates), would beneficially own in excess of the Beneficial Ownership Limitation (as defined below).  For purposes of the foregoing sentence, the number of shares of Common Stock beneficially owned by the Holder and its Affiliates shall include the number of shares of Common Stock issuable upon exercise of this Warrant with respect to which such determination is being made, but shall exclude the number of shares of Common Stock which would be issuable upon (i) exercise of the remaining, nonexercised portion of this Warrant beneficially owned by the Holder or any of its Affiliates and (ii) exercise or conversion of the unexercised or nonconverted portion of any other securities of the Company (including, without limitation, any other common stock equivalents) subject to a limitation on conversion or exercise analogous to the limitation contained herein beneficially owned by the Holder or any of its Affiliates.  Except as set forth in the preceding sentence, for purposes of this Section 2(d), beneficial ownership shall be calculated in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder, it being acknowledged by the Holder that the Company is not representing to the Holder that such calculation is in compliance with Section 13(d) of the Exchange Act and the Holder is solely responsible for any schedules required to be filed in accordance therewith.   To the extent that the limitation contained in this Section 2(d) applies, the determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable shall be in the sole discretion of the Holder, and the submission of a Notice of Exercise shall be deemed to be the Holder’s determination of whether this Warrant is exercisable (in relation to other securities owned by the Holder together with any Affiliates) and of which portion of this Warrant is exercisable, in each case subject to the Beneficial Ownership Limitation, and the Company shall have no obligation to verify or confirm the accuracy of such determination.  In addition, a determination as to any group status as contemplated above shall be determined in accordance with Section 13(d) of the Exchange Act and the rules and regulations promulgated thereunder.  For purposes of this Section 2(d), in determining the number of outstanding shares of Common Stock, a Holder may rely on the number of outstanding shares of Common Stock as reflected in (A) the Company’s most recent periodic or 

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annual report filed with the Commission, as the case may be, (B) a more recent public announcement by the Company or (C) a more recent written notice by the Company or its transfer agent setting forth the number of shares of Common Stock outstanding.  Upon the written or oral request of a Holder, the Company shall within three trading days confirm orally and in writing to the Holder the number of shares of Common Stock then outstanding.  In any case, the number of outstanding shares of Common Stock shall be determined after giving effect to the conversion or exercise of securities of the Company, including this Warrant, by the Holder or its Affiliates since the date as of which such number of outstanding shares of Common Stock was reported.  The “Beneficial Ownership Limitation” shall be 4.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock issuable upon exercise of this Warrant.  The Holder, upon not less than 61 days’ prior notice to the Company, may increase or decrease the Beneficial Ownership Limitation provisions of this Section 2(d), provided that the Beneficial Ownership Limitation in no event exceeds 9.99% of the number of shares of the Common Stock outstanding immediately after giving effect to the issuance of shares of Common Stock upon exercise of this Warrant held by the Holder and the provisions of this Section 2(d) shall continue to apply.  Any such increase or decrease will not be effective until the 61st day after such notice is delivered to the Company.  The provisions of this paragraph shall be construed and implemented in a manner otherwise than in strict conformity with the terms of this Section 2(d) to correct this paragraph (or any portion hereof) which may be defective or inconsistent with the intended Beneficial Ownership Limitation herein contained or to make changes or supplements necessary or desirable to properly give effect to such limitation.  The limitations contained in this paragraph shall apply to a successor holder of this Warrant.   

Section 3.Certain Adjustments.

a)Stock Dividends and Splits.  If the Company, at any time while this Warrant is outstanding: (i) pays a stock dividend or otherwise makes a distribution or distributions on shares of its Common Stock or any other equity or equity equivalent securities payable in shares of Common Stock (which, for avoidance of doubt, shall not include any shares of Common Stock issued by the Company upon exercise of this Warrant), (ii) subdivides outstanding shares of Common Stock into a larger number of shares, (iii) combines (including by way of reverse stock split) outstanding shares of Common Stock into a smaller number of shares, or (iv) issues by reclassification of shares of the Common Stock any shares of capital stock of the Company, then in each case the Exercise Price shall be multiplied by a fraction of which the numerator shall be the number of shares of Common Stock (excluding treasury shares, if any) outstanding immediately before such event and of which the denominator shall be the number of shares of Common Stock outstanding immediately after such event, and the number of shares issuable upon exercise of this Warrant shall be proportionately adjusted such that the aggregate Exercise Price of this Warrant shall remain unchanged.  Any adjustment made pursuant to this Section 3(a) shall become effective immediately after the record date for the determination of stockholders entitled to receive such dividend or distribution and shall become effective immediately after the effective date in the case of a subdivision, combination or re-classification.

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b)Pro Rata Distributions.  If the Company, at any time while this Warrant is outstanding, shall distribute to all holders of Common Stock (and not to the Holders) evidences of its indebtedness or assets (including cash and cash dividends) or rights or warrants to subscribe for or purchase any security other than the Common Stock (which shall be subject to Section 3(b)), then in each such case the Exercise Price shall be adjusted by multiplying the Exercise Price in effect immediately prior to the record date fixed for determination of stockholders entitled to receive such distribution by a fraction of which the denominator shall be the VWAP determined as of the record date mentioned above, and of which the numerator shall be such VWAP on such record date less the then per share fair market value at such record date of the portion of such assets or evidence of indebtedness so distributed applicable to one outstanding share of the Common Stock as determined by the Company’s Board of Directors in good faith.  In either case the adjustments shall be described in a statement provided to the Holder of the portion of assets or evidences of indebtedness so distributed or such subscription rights applicable to one share of Common Stock.  Such adjustment shall be made whenever any such distribution is made and shall become effective immediately after the record date mentioned above. 

c)Fundamental Transaction. If, at any time while this Warrant is outstanding, (i) the Company, directly or indirectly, in one or more related transactions effects any merger or consolidation of the Company with or into another Person in which the Company is not the surviving entity or the stockholders of the Company immediately prior to such merger or consolidation do not own, directly or indirectly, at least 50% of the outstanding voting securities of the surviving entity, (ii) the Company, directly or indirectly, effects any sale, lease, license, assignment, transfer, conveyance or other disposition of all or substantially all of its assets in one or a series of related transactions, (iii) any, direct or indirect, purchase offer, tender offer or exchange offer (whether by the Company or another Person) is completed pursuant to which all or substantially all of the holders of Common Stock are permitted to sell, tender or exchange their shares for other securities, cash or property and has been accepted by the holders of 50% or more of the outstanding Common Stock, or (iv) the Company, directly or indirectly, in one or more related transactions effects any reclassification, reorganization or recapitalization of the Common Stock or any compulsory share exchange pursuant to which the Common Stock is effectively converted into or exchanged for other securities, cash or property (other than as a result of a subdivision or combination of shares of Common Stock covered by Section 3(a) above), (each a “Fundamental Transaction”), then, upon any subsequent exercise of this Warrant, the Holder shall have the right to receive, for each Warrant Share that would have been issuable upon such exercise immediately prior to the occurrence of such Fundamental Transaction, at the option of the Holder (without regard to any limitation in Section 2(d) on the exercise of this Warrant), the number of shares of Common Stock of the successor or acquiring corporation or of the Company, if it is the surviving corporation, and any additional consideration (the “Alternate Consideration”) receivable as a result of such Fundamental Transaction by a holder of the number of shares of Common Stock for which this Warrant is exercisable immediately prior to such Fundamental Transaction (without regard to any limitation in Section 2(d) on the exercise of this Warrant).  For purposes of any such exercise, the determination of the Exercise Price shall be appropriately adjusted to apply to such Alternate Consideration based on the amount of Alternate Consideration issuable in respect of one share of Common Stock in such Fundamental Transaction, and the Company shall apportion the Exercise Price among the Alternate Consideration in a reasonable manner reflecting the relative value of any different components of 

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the Alternate Consideration.  If holders of Common Stock are given any choice as to the securities, cash or property to be received in a Fundamental Transaction, then the Holder shall be given the same choice as to the Alternate Consideration it receives upon any exercise of this Warrant following such Fundamental Transaction.  Notwithstanding anything to the contrary, in the event of a Fundamental Transaction other than one in which a Successor Entity (as defined below) that is a publicly traded corporation whose stock is quoted or listed for trading on an Eligible Market (as defined below) assumes this Warrant such that the Warrant shall be exercisable for the publicly traded Common Stock of such Successor Entity, the Company or any Successor Entity  shall, at the Holder’s option, exercisable at any time concurrently with, or within 30 days after, the consummation of the Fundamental Transaction, purchase this Warrant from the Holder by paying to the Holder an amount of cash equal to the Black Scholes Value of the remaining unexercised portion of this Warrant on the date of the consummation of such Fundamental Transaction.  As used herein (w) “Black Scholes Value” means the value of this Warrant based on the Black and Scholes Option Pricing Model obtained from the “OV” function on Bloomberg, L.P. (“Bloomberg”) determined as of the day of consummation of the applicable Fundamental Transaction for pricing purposes and reflecting (A) a risk-free interest rate corresponding to the U.S. Treasury rate for a period equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date, (B) an expected volatility equal to the greater of 100% and the 100 day volatility obtained from the HVT function on Bloomberg as of the trading day immediately following the public announcement of the applicable Fundamental Transaction, (C) the underlying price per share used in such calculation shall be the sum of the price per share being offered in cash, if any, plus the value of any non-cash consideration, if any, being offered in such Fundamental Transaction and (D) a remaining option time equal to the time between the date of the public announcement of the applicable Fundamental Transaction and the Termination Date, (1) “Successor Entity” means the Person (or, if so elected by the Holder, the Parent Entity (as defined below)) formed by, resulting from or surviving any Fundamental Transaction or the Person (or, if so elected by the Holder, the Parent Entity) with which such Fundamental Transaction shall have been entered into, (2) “Eligible Market” means the NYSE Amex, The NASDAQ Capital Market, The NASDAQ Global Market, The NASDAQ Global Select Market, the New York Stock Exchange or the OTC Bulletin Board (or any successors to any of the foregoing), (3) “Parent Entity” of a Person means an entity that, directly or indirectly, controls the applicable Person and whose common stock or equivalent equity security is quoted or listed on an Eligible Market, or, if there is more than one such Person or Parent Entity, the Person or Parent Entity with the largest public market capitalization as of the date of consummation of the Fundamental Transaction.  The terms of any agreement pursuant to which a Fundamental Transaction is effected shall include terms requiring any such successor or surviving entity to comply with the provisions of this Section 3(e) and insuring that this Warrant (or any such replacement security) will be similarly adjusted upon any subsequent transaction analogous to a Fundamental Transaction, and (4) “Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and a government or any department or agency thereof. 

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d)Number of Warrant Shares.  Simultaneously with any adjustment to the Exercise Price pursuant to paragraph (a) and (e) of this Section, the number of Warrant Shares that may be purchased upon exercise of this Warrant shall be increased or decreased proportionately, so that after such adjustment the aggregate Exercise Price payable hereunder for the increased or decreased number of Warrant Shares shall be the same as the aggregate Exercise Price in effect immediately prior to such adjustment. 

e)Subsequent Equity Sales.

i.Except as provided in subsection (e)(iii) hereof, if and whenever the Company shall issue or sell, or is, in accordance with any of subsections (e)(ii)(l) through (e)(ii)(7) hereof, deemed to have issued or sold, any shares of Common Stock for no consideration or for a consideration per share less than the Exercise Price in effect immediately prior to the time of such issue or sale, then and in each such case (a “Trigger Issuance”) the then-existing Exercise Price shall be reduced as of the close of business on the effective date of the Trigger Issuance, to a price determined as follows:

 

	
Adjusted Exercise Price  = 
	
   (A x B) + D

	
 
	
A+C

where

“A” equals the number of shares of Common Stock outstanding, including Additional Shares of Common Stock (as defined below) deemed to be issued hereunder, immediately preceding such Trigger Issuance;

“B” equals the Exercise Price in effect immediately preceding such Trigger Issuance;

“C” equals the number of Additional Shares of Common Stock issued or deemed issued hereunder as a result of the Trigger Issuance; and

“D” equals the aggregate consideration, if any, received or deemed to be received by the Company upon such Trigger Issuance;

provided, however, that in no event shall the Exercise Price after giving effect to such Trigger Issuance be greater than the original Exercise Price.

For purposes of this subsection (e), “Additional Shares of Common Stock” shall mean all shares of Common Stock issued by the Company or deemed to be issued pursuant to this subsection (e), other than Exempt Issuances (as defined below).

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ii.For purposes of this subsection 3(e), the following subsections (e)(ii)(l) to (e)(ii)(7) shall also be applicable: 

(1)Issuance of Rights or Options. In case at any time the Company shall in any manner grant (directly and not by assumption in a merger or otherwise) any warrants or other rights to subscribe for or to purchase, or any options for the purchase of, Common Stock or any stock or security convertible into or exchangeable for Common Stock (such warrants, rights or options being called “Options” and such convertible or exchangeable stock or securities being called “Convertible Securities”), whether or not such Options or the right to convert or exchange any such Convertible Securities are immediately exercisable, and the price per share for which Common Stock is issuable upon the exercise of such Options or upon the conversion or exchange of such Convertible Securities (determined by dividing (i) the sum (which sum shall constitute the applicable consideration) of (x) the total amount, if any, received or receivable by the Company as consideration for the granting of such Options, plus (y) the aggregate amount of additional consideration payable to the Company upon the exercise of all such Options, plus (z), in the case of such Options which relate to Convertible Securities, the aggregate amount of additional consideration, if any, payable upon the issue or sale of such Convertible Securities and upon the conversion or exchange thereof, by (ii) the total maximum number of shares of Common Stock issuable upon the exercise of such Options or upon the conversion or exchange of all such Convertible Securities issuable upon the exercise of such Options) shall be less than the Exercise Price in effect immediately prior to the time of the granting of such Options, then the total number of shares of Common Stock issuable upon the exercise of such Options or upon conversion or exchange of the total amount of such Convertible Securities issuable upon the exercise of such Options shall be deemed to have been issued for such price per share as of the date of granting of such Options or the issuance of such Convertible Securities and thereafter shall be deemed to be outstanding for purposes of adjusting the Exercise Price. Except as otherwise provided in subsection 3(e)(ii)(3), no adjustment of the Exercise Price shall be made upon the actual issue of such Common Stock or of such Convertible Securities upon exercise of such Options or upon the actual issue of such Common Stock upon conversion or exchange of such Convertible Securities. 

(2)Issuance of Convertible Securities.  In case the Company shall in any manner issue (directly and not by assumption in a merger or otherwise) or sell any Convertible Securities, whether or not the rights to exchange or convert any such Convertible Securities are immediately exercisable, and the price per share for which Common Stock is issuable upon such conversion or exchange (determined by dividing (i) the sum (which sum shall constitute the applicable consideration) of (x) the total amount received or receivable by the Company as consideration for the issue or sale of such Convertible Securities, plus (y) the aggregate amount of additional consideration, if any, payable to the Company upon the conversion or exchange thereof, by (ii) the total number of shares of Common Stock issuable upon the conversion or exchange of all such Convertible Securities) shall be less than the Exercise Price in effect immediately prior to the time of such issue or sale, then the total maximum number of shares of Common Stock issuable upon conversion or exchange of all such Convertible Securities shall be deemed to have been issued for such price per share as of the date of the issue or sale of such Convertible Securities and thereafter shall be deemed to be outstanding for purposes of adjusting the Exercise Price, provided that (a) except as otherwise provided in subsection 3(e)(ii)(3), no adjustment of the Exercise Price shall be made upon the 

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actual issuance of such Common Stock upon conversion or exchange of such Convertible Securities and (b) no further adjustment of the Exercise Price shall be made by reason of the issue or sale of Convertible Securities upon exercise of any Options to purchase any such Convertible Securities for which adjustments of the Exercise Price have been made pursuant to the other provisions of subsection 3(e). 

(3)Change in Option Price or Conversion Rate.  Upon the happening of any of the following events, namely, if the purchase price provided for in any Option referred to in subsection 3(e)(ii)(l), the additional consideration, if any, payable upon the conversion or exchange of any Convertible Securities referred to in subsections 3(e)(ii)(l) or 3(e)(ii)(2), or the rate at which Convertible Securities referred to in subsections 3(e)(ii)(l) or 3(e)(ii)(2) are convertible into or exchangeable for Common Stock shall change at any time (including, but not limited to, changes under or by reason of provisions designed to protect against dilution), the Exercise Price in effect at the time of such event shall forthwith be readjusted to the Exercise Price which would have been in effect at such time had such Options or Convertible Securities still outstanding provided for such changed purchase price, additional consideration or conversion rate, as the case may be, at the time initially granted, issued or sold.  On the termination of any Option for which any adjustment was made pursuant to this subsection 3(e) or any right to convert or exchange Convertible Securities for which any adjustment was made pursuant to this subsection 3(e) (including, without limitation, upon the redemption or purchase for consideration of such Convertible Securities by the Company), the Exercise Price then in effect hereunder shall forthwith be changed to the Exercise Price which would have been in effect at the time of such termination had such Option or Convertible Securities, to the extent outstanding immediately prior to such termination, never been issued.

(4)Stock Dividends.  Subject to the provisions of this Section 3(e), in case the Company shall declare a dividend or make any other distribution upon any stock of the Company (other than the Common Stock) payable in Common Stock, Options or Convertible Securities, then any Common Stock, Options or Convertible Securities, as the case may be, issuable in payment of such dividend or distribution shall be deemed to have been issued or sold without consideration.

(5)Consideration for Stock.  In case any shares of Common Stock, Options or Convertible Securities shall be issued or sold for cash, the consideration received therefor shall be deemed to be the gross amount received by the Company therefor. In case any shares of Common Stock, Options or Convertible Securities shall be issued or sold for a consideration other than cash, the amount of the consideration other than cash received by the Company shall be deemed to be the fair value of such consideration as determined in good faith by the Board of Directors of the Company.  In case any Options shall be issued in connection with the issue and sale of other securities of the Company, together comprising one integral transaction in which no specific consideration is allocated to such Options by the parties thereto, such Options shall be deemed to have been issued for such consideration as determined in good faith by the Board of Directors of the Company.  If Common Stock, Options or Convertible Securities shall be issued or sold by the Company and, in connection therewith, other Options or Convertible Securities (the “Additional Rights”) are issued, then the consideration received or deemed to be received by the Company shall be reduced by the fair market value of the Additional Rights (as determined using the Black-Scholes option pricing model or another 

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method mutually agreed to by the Company and the Holder).  The Board of Directors of the Company shall respond promptly, in writing, to an inquiry by the Holder as to the fair market value of the Additional Rights. In the event that the Board of Directors of the Company and the Holder are unable to agree upon the fair market value of the Additional Rights, the Company and the Holder shall jointly select an appraiser who is experienced in such matters.  The decision of such appraiser shall be final and conclusive, and the cost of such appraiser shall be borne evenly by the Company and the Holder.  

(6)Record Date.  In case the Company shall take a record of the holders of its Common Stock for the purpose of entitling them (i) to receive a dividend or other distribution payable in Common Stock, Options or Convertible Securities or (ii) to subscribe for or purchase Common Stock, Options or Convertible Securities, then such record date shall be deemed to be the date of the issue or sale of the shares of Common Stock deemed to have been issued or sold upon the declaration of such dividend or the making of such other distribution or the date of the granting of such right of subscription or purchase, as the case may be.

(7)Treasury Shares.  The number of shares of Common Stock outstanding at any given time shall not include shares owned or held by or for the account of the Company or any of its wholly-owned subsidiaries, and the disposition of any such shares (other than the cancellation or retirement thereof) shall be considered an issue or sale of Common Stock for the purpose of this subsection (e).

iii.Exempt Issuance.  Notwithstanding the foregoing, no adjustment will be made under this paragraph (e) in respect of an Exempt Issuance.  For the purposes of this Warrant, “Exempt Issuance” means the issuance of (a) shares of Common Stock, common stock equivalents, restricted stock units or other Options to employees, consultants officers or directors of the Company pursuant to any existing or future stock option, restricted stock, stock purchase or other equity compensation plan duly adopted for such purpose, by a majority of the non-employee members of the Board of Directors or a majority of the members of a committee of non-employee directors established for such purpose, and the issuance of Common Stock in respect of such common stock equivalents, restricted stock units or other Options, (b) securities (including Common Stock and common stock equivalents) upon the exercise, conversion or exchange of securities (including Convertible Securities and Options) issued and outstanding on the date hereof, including the Warrants, provided that such securities have not been amended since date hereof to increase the number of such securities or to decrease the exercise price, exchange price or conversion price of such securities, (c) securities issued pursuant to acquisitions or strategic transactions approved by a majority of the disinterested directors of the Company, provided that any such issuance shall only be to a Person (or to the equity holders of a Person) that the Company’s Board of Directors determines in good faith is, itself or through its subsidiaries, an operating company or an owner of an asset in a business synergistic with the business of the Company and shall provide to the Company additional benefits in addition to the investment of funds, but shall not, for the purposes of this clause (c), include a transaction in which the Company is issuing securities primarily for the purpose of raising capital or to an entity whose primary business is investing in securities, and (d) the issuance of securities in a transaction described in Section 3(a) or 3(b) above.

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iv.Upon any adjustment to the Exercise Price pursuant to this Section 3(e), the number of Warrant Shares purchasable hereunder shall be adjusted by multiplying such number by a fraction, the numerator of which shall be the Exercise Price in effect immediately prior to such adjustment and the denominator of which shall be the Exercise Price in effect immediately thereafter.   

f)Calculations.  All calculations under this Section 3 shall be made to the nearest cent or the nearest 1/100th of a share, as the case may be.  For purposes of this Section 3, the number of shares of Common Stock deemed to be issued and outstanding as of a given date shall be the sum of the number of shares of Common Stock (excluding treasury shares, if any) issued and outstanding.

g)Notice to Holder.

i.Adjustment to Exercise Price.  Whenever the Exercise Price is adjusted pursuant to any provision of this Section 3, the Company shall promptly mail to the Holder a notice setting forth the Exercise Price after such adjustment and setting forth a brief statement of the facts requiring such adjustment. 

ii.Notice to Allow Exercise by Holder.  After the Issue Date, (A) the Company shall declare a dividend (or any other distribution in whatever form) on the Common Stock, (B) the Company shall declare a special nonrecurring cash dividend on or a redemption of the Common Stock, (C) the Company shall authorize the granting to all holders of the Common Stock rights or warrants to subscribe for or purchase any shares of capital stock of any class or of any rights, (D) the approval of any stockholders of the Company shall be required in connection with any reclassification of the Common Stock, any consolidation or merger to which the Company is a party, any sale or transfer of all or substantially all of the assets of the Company, or any compulsory share exchange whereby the Common Stock is converted into other securities, cash or property, or (E) the Company shall authorize the voluntary or involuntary dissolution, liquidation or winding up of the affairs of the Company, then, in each case, the Company shall cause to be mailed to the Holder at its last address as it shall appear upon the Warrant Register of the Company, at least 20 calendar days prior to the applicable record or effective date hereinafter specified, a notice stating (x) the date on which a record is to be taken for the purpose of such dividend, distribution, redemption, rights or warrants, or if a record is not to be taken, the date as of which the holders of the Common Stock of record to be entitled to such dividend, distributions, redemption, rights or warrants are to be determined or (y) the date on which such reclassification, consolidation, merger, sale, transfer or share exchange is expected to become effective or close, and the date as of which it is expected that holders of the Common Stock of record shall be entitled to exchange their shares of the Common Stock for securities, cash or other property deliverable upon such reclassification, consolidation, merger, sale, transfer or share exchange; provided that the failure to mail such notice or any defect therein or in the mailing thereof shall not affect the validity of the corporate action required to be specified in such notice.  To the extent that any notice provided hereunder constitutes, or contains, material, non-public information regarding the Company or any of its subsidiaries, the Company shall simultaneously file such notice with the Commission pursuant to a Current Report on Form 8-K.  The Holder shall remain entitled to exercise this Warrant during the period commencing on the date of such notice to the effective date of the event triggering such notice except as may otherwise be expressly set forth herein.

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Section 4.Transfer of Warrant. 

a)Transferability.  Subject to compliance with any applicable securities laws, this Warrant and all rights hereunder (including, without limitation, any registration rights) are transferable, in whole or in part, upon surrender of this Warrant at the principal office of the Company or its designated agent, together with a written assignment of this Warrant substantially in the form attached hereto duly executed by the Holder or its agent or attorney and funds sufficient to pay any transfer taxes payable upon the making of such transfer.  Upon such surrender and, if required, such payment, the Company shall execute and deliver a new Warrant or Warrants in the name of the assignee or assignees, as applicable, and in the denomination or denominations specified in such instrument of assignment, and shall issue to the assignor a new Warrant evidencing the portion of this Warrant not so assigned, and this Warrant shall promptly be cancelled.  The Warrant, if properly assigned in accordance herewith, may be exercised by a new holder for the purchase of Warrant Shares without having a new Warrant issued.  

b)New Warrants. This Warrant may be divided or combined with other Warrants upon presentation hereof at the aforesaid office of the Company, together with a written notice specifying the names and denominations in which new Warrants are to be issued, signed by the Holder or its agent or attorney.  Subject to compliance with Section 4(a), as to any transfer which may be involved in such division or combination, the Company shall execute and deliver a new Warrant or Warrants in exchange for the Warrant or Warrants to be divided or combined in accordance with such notice.  All Warrants issued on transfers or exchanges shall be dated the initial issuance date set forth on the first page of this Warrant and shall be identical with this Warrant except as to the number of Warrant Shares issuable pursuant thereto. 

c)Warrant Register. The Company shall register this Warrant, upon records to be maintained by the Company for that purpose (the “Warrant Register”), in the name of the record Holder hereof from time to time.  The Company may deem and treat the registered Holder of this Warrant as the absolute owner hereof for the purpose of any exercise hereof or any distribution to the Holder, and for all other purposes, absent actual notice to the contrary.  Upon thirty (30) days notice to the Holder, the Company may appoint a warrant agent to maintain the Warrant Register.  

Section 5.Miscellaneous.

a)No Rights as Stockholder Until Exercise.  This Warrant does not entitle the Holder to any voting rights, dividends or other rights as a stockholder of the Company prior to the exercise hereof as set forth in Section 2(c)(i).  

b)Loss, Theft, Destruction or Mutilation of Warrant. The Company covenants that upon receipt by the Company of evidence reasonably satisfactory to it of the loss, theft, destruction or mutilation of this Warrant or any stock certificate relating to the Warrant Shares, and in case of loss, theft or destruction, of indemnity or security reasonably satisfactory to it (which, in the case of the Warrant, shall not include the posting of any bond), and upon surrender and cancellation of such Warrant or stock certificate, if mutilated, the Company will make and deliver a new Warrant or stock certificate of like tenor and dated as of such cancellation, in lieu of such Warrant or stock certificate.

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c)Saturdays, Sundays, Holidays, etc.  If the last or appointed day for the taking of any action or the expiration of any right required or granted herein shall not be a business day, then, such action may be taken or such right may be exercised on the next succeeding business day. 

d)Authorized Shares.  The Company covenants that, during the period the Warrant is outstanding, it will reserve from its authorized and unissued Common Stock a sufficient number of shares to provide for the issuance of the Warrant Shares upon the exercise of any purchase rights under this Warrant.  The Company further covenants that its issuance of this Warrant shall constitute full authority to its officers who are charged with the duty of executing stock certificates to execute and issue the necessary certificates for the Warrant Shares upon the exercise of the purchase rights under this Warrant.  The Company will take all such reasonable action as may be necessary to assure that such Warrant Shares may be issued as provided herein without violation of any applicable law or regulation, or of any requirements of the Trading Market upon which the Common Stock may be listed.  The Company covenants that all Warrant Shares which may be issued upon the exercise of the purchase rights represented by this Warrant will, upon exercise of the purchase rights represented by this Warrant and payment for such Warrant Shares in accordance herewith, be duly authorized, validly issued, fully paid and nonassessable and free from all taxes, liens and charges created by the Company in respect of the issue thereof (other than taxes in respect of any transfer occurring contemporaneously with such issue).  

Except and to the extent as waived or consented to by the Holder, the Company shall not by any action, including, without limitation, amending its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate to protect the rights of Holder as set forth in this Warrant against impairment.  Without limiting the generality of the foregoing, the Company will (i) not increase the par value of any Warrant Shares above the amount payable therefor upon such exercise immediately prior to such increase in par value, (ii) take all such action as may be necessary or appropriate in order that the Company may validly and legally issue fully paid and nonassessable Warrant Shares upon the exercise of this Warrant and (iii) use commercially reasonable efforts to obtain all such authorizations, exemptions or consents from any public regulatory body having jurisdiction thereof, as may be, necessary to enable the Company to perform its obligations under this Warrant.

Before taking any action which would result in an adjustment in the number of Warrant Shares for which this Warrant is exercisable or in the Exercise Price, the Company shall obtain all such authorizations or exemptions thereof, or consents thereto, as may be necessary from any public regulatory body or bodies having jurisdiction thereof.

e)Jurisdiction. All questions concerning the construction, validity, enforcement and interpretation of this Warrant shall be determined in accordance with the laws of the State of Oklahoma.

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f)Restrictions.  The Holder acknowledges that the Warrant Shares acquired upon the exercise of this Warrant, if not registered, and the Holder does not utilize cashless exercise, will have restrictions upon resale imposed by state and federal securities laws. 

g)Nonwaiver and Expenses.  No course of dealing or any delay or failure to exercise any right hereunder on the part of Holder shall operate as a waiver of such right or otherwise prejudice Holder’s rights, powers or remedies. Without limiting any other provision of this Warrant, if the Company willfully and knowingly fails to comply with any provision of this Warrant, which results in any material damages to the Holder, the Company shall pay to Holder such amounts as shall be sufficient to cover any costs and expenses including, but not limited to, reasonable attorneys’ fees, including those of appellate proceedings, incurred by Holder in collecting any amounts due pursuant hereto or in otherwise enforcing any of its rights, powers or remedies hereunder.

h)Notices.  The Company shall provide Holder with prompt written notice of all actions taken pursuant to this Warrant. Whenever notice is required to be given under this Warrant, unless otherwise provided herein, such notice shall be given in writing, will be mailed (i) if within the domestic United States by first-class registered or certified airmail, or nationally recognized overnight express courier, postage prepaid, or by facsimile or (ii) if delivered from outside the United States, by International Federal Express or facsimile, and (iii) will be deemed given (A) if delivered by first-class registered or certified mail domestic, three business days after so mailed, (B) if delivered by nationally recognized overnight carrier, one business day after so mailed, (C) if delivered by International Federal Express, two business days after so mailed and (D) if delivered by facsimile, upon electronic confirmation of receipt, and will be delivered and addressed as follows: 

(1) if to the Company, to: 

Foundation Healthcare, Inc.

13900 N. Portland, Ste. 200

Oklahoma City, Oklahoma 73134

Attention: General Counsel

Facsimile: (405) 608-1700

With Copies to:

Goodwin Procter, LLP

100 Northern Avenue

Boston, Massachusetts 02210

Attention: Robert E. Puopolo, Esq.

Facsimile: 617- 321-4362

(2) if to the Holder, at the address of the Holder appearing on the books of the Company.

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i)Limitation of Liability.  No provision hereof, in the absence of any affirmative action by Holder to exercise this Warrant to purchase Warrant Shares, and no enumeration herein of the rights or privileges of Holder, shall give rise to any liability of Holder for the purchase price of any Common Stock or as a stockholder of the Company, whether such liability is asserted by the Company or by creditors of the Company. 

j)Remedies.  The Holder, in addition to being entitled to exercise all rights granted by law, including recovery of damages, will be entitled to specific performance of its rights under this Warrant.  The Company agrees that monetary damages would not be adequate compensation for any loss incurred by reason of a breach by it of the provisions of this Warrant and hereby agrees to waive and not to assert the defense in any action for specific performance that a remedy at law would be adequate.

k)Successors and Assigns.  Subject to applicable securities laws, this Warrant and the rights and obligations evidenced hereby shall inure to the benefit of and be binding upon the successors and permitted assigns of the Company and the successors and permitted assigns of Holder.  The provisions of this Warrant are intended to be for the benefit of any Holder from time to time of this Warrant and shall be enforceable by the Holder or holder of Warrant Shares.

l)Amendment.  This Warrant may be modified or amended or the provisions hereof waived with the written consent of the Company and the Holder.

m)Severability.  Wherever possible, each provision of this Warrant shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Warrant shall be prohibited by or invalid under applicable law, such provision shall be ineffective to the extent of such prohibition or invalidity, without invalidating the remainder of such provisions or the remaining provisions of this Warrant.

n)Headings.  The headings used in this Warrant are for the convenience of reference only and shall not, for any purpose, be deemed a part of this Warrant.

********************

(Signature Page Follows)

 

 

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IN WITNESS WHEREOF, the Company has caused this Warrant to be executed by its officer thereunto duly authorized as of the date first above indicated.

 

	
 
	
FOUNDATION HEALTHCARE, inc.

	
 
	
 
	
 

	
 
	
By:
	
/s/ STANTON NELSON

	
 
	
Name:
	
Stanton Nelson

	
 
	
Title:
	
Chief Executive Officer

 

ACKNOWLEDGED AND AGREED TO

THIS 20th DAY OF JUNE 2016:

 

	
HOLDER

	
 
	
 

	
By:
	
 

	
Name:
	
 

	
Title:
	
 

 

 

 

 

 

NOTICE OF EXERCISE

To:FOUNDATION HEALTHCARE, inc.

(1)The undersigned hereby elects to purchase ________ Warrant Shares of the Company pursuant to the terms of the attached Warrant (only if exercised in full), and tenders herewith payment of the exercise price in full, together with all applicable transfer taxes, if any.  Payment shall be in lawful money of the United States by wire transfer or cashier’s check.

(2)Please issue a certificate or certificates representing said Warrant Shares in the name of the undersigned or in such other name as is specified below:

 

	
 
	
 
	
 

 

The Warrant Shares shall be delivered to the following DWAC Account Number or by physical delivery of a certificate to:

 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

 

	
 
	
 

	
[SIGNATURE OF HOLDER]
	
 

 

	
Name of Entity: 
	
 

	
Signature of Authorized Signatory of Entity:
	
 

	
Name of Authorized Signatory:
	
 

	
Title of Authorized Signatory:
	
 

	
Date:
	
 

 

 

 

 

 

ASSIGNMENT FORM

(To assign the foregoing warrant, execute

this form and supply required information. 

Do not use this form to exercise the warrant.)

FOR VALUE RECEIVED, [       ] all of or          shares of the foregoing Warrant and all rights evidenced thereby are hereby assigned to

 

	
 
	
whose address is
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
Dated:
	
                               ,                

	
 
	
 
	
 

	
Holder’s Signature:
	
 
	
 

	
 
	
 
	
 

	
Holder’s Address:
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
 

	
Signature Guaranteed:
	
 
	
 

	
 
	
 
	
 

 

NOTE:  The signature to this Assignment Form must correspond with the name as it appears on the face of the Warrant, without alteration or enlargement or any change whatsoever, and must be guaranteed by a bank or trust company.  Officers of corporations and those acting in a fiduciary or other representative capacity should file proper evidence of authority to assign the foregoing Warrant.Exhibit 10.1

 

 

SECOND SUPPLEMENTAL INDENTURE

  

SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of September 2, 2016, among TerraForm Global Operating, LLC, a Delaware limited liability company (the “Issuer”), the Guarantors (as defined in the Indenture referred to below) party hereto and U.S. Bank National Association, as trustee under the Indenture referred to below (the “Trustee”).

WITNESSETH

WHEREAS, the Issuer has heretofore executed and delivered to the Trustee an indenture, dated as of August 5, 2015, as supplemented by the first supplemental indenture, dated as of November 4, 2015 (as so supplemented, the “Indenture”), providing for the issuance of 9.75% Senior Notes due 2022 (the “Notes”);

WHEREAS, under Section 9.01 of the Indenture, without the consent of any Holder, the Issuer, the Guarantors and the Trustee may amend or supplement the Indenture, the Notes or the Note Guarantees to, among other things, (i) cure any ambiguity, mistake, defect or inconsistency or (ii) make any change that would provide any additional rights or benefits to the Holders or that does not adversely affect the legal rights hereunder of any Holder;

WHEREAS, under Section 9.02 of the Indenture, subject to certain exceptions, the Issuer and the Trustee may amend or supplement the Indenture, the Notes and the Note Guarantees, with the consent of the Holders of at least a majority in aggregate principal amount of the then outstanding Notes;

WHEREAS, on or prior to the date hereof, the Holders of at least a majority in aggregate principal amount of the then outstanding Notes have consented to certain amendments to the Indenture, as set forth in Article I herein, pursuant to a consent solicitation as contemplated by the Consent Solicitation Statement and the related Letter of Consent, each dated August 26, 2016, of the Issuer;

WHEREAS, the Issuer, the Guarantors and the Trustee desire to execute and deliver this Supplemental Indenture and, in accordance with the requirements of the Indenture, the Issuer has delivered an Officer’s Certificate and an Opinion of Counsel to the Trustee; and

WHEREAS, pursuant to Sections 9.01 and 9.02 of the Indenture, the Issuer, the Guarantors and the Trustee are authorized to execute and deliver this Supplemental Indenture.

NOW, THEREFORE, in consideration of the foregoing and for other good and valuable consideration, the receipt of which is hereby acknowledged, the Issuer, the Guarantors and the Trustee mutually covenant and agree for the equal and ratable benefit of the Holders as follows:

ARTICLE I.          AMENDMENTS TO THE INDENTURE.

 

SECTION 1.1          The Table of Contents of the Indenture is hereby amended by changing the reference to “Section 4.18  Covenant Fall Away” to “Section 4.18 Intentionally omitted” and adding the following entries in proper numerical order:

 

“Section 4.19          Cancellation of Notes Held by Certain Persons

  Section 4.20          Limitation on Excess Settlement Amounts

  Section 4.21          Repayment of and Reborrowing under Credit Facility

  Section 4.22          Additional Advisor Disclosure”

SECTION 1.2          Section 1.01 of the Indenture is hereby amended to add the following definitions in proper alphabetical order:

“Advisor Disclosure Letter” means the letter agreement dated September 2, 2016 between the Parent, Willkie Farr & Gallagher LLP, and Evercore Group L.L.C. (or with replacement parties in accordance with such agreement).

 

“Chapter 11” means Title 11 of the U.S. Code.

 

“Equity Restricted Payment” means (i) Restricted Payments under clause (1) of Section 4.07(a) on account of Parent’s Equity Interests or to the direct or indirect holders of the Parent’s Equity Interests, (ii) Restricted Payments under clause (2) of Section 4.07(a) made to purchase, redeem or otherwise acquire or retire for value any Equity Interests of the Parent or any direct or indirect parent entity of the Parent, or (iii) any other Restricted Payment to TerraForm for the purpose of declaring or paying any dividend or making any other payment or distribution on account of TerraForm’s Equity Interests or purchasing, redeeming or otherwise acquiring or retiring for value any Equity Interests of TerraForm.

“Excess Settlement Amount” means the amount of Net Settlement Payments paid in excess of $5 million in cash.

“Independent Board” means (a) at any time TerraForm is the sole managing member of the Parent, a Board of Directors of TerraForm a majority of which consists of Sponsor Independent Directors; provided that, for the avoidance of doubt, the Board of Directors of TerraForm as existing on September 2, 2016 shall be an “Independent Board” for purposes of this clause (a) and the members of the Corporate Governance and Conflicts Committee of TerraForm and the current Interim Chief Executive Officer of Terraform shall be a Sponsor Independent Director under the facts as of September 2, 2016; and (b) at any time TerraForm is not the sole managing member of the Parent, the Board of Directors of the Parent a majority of which consists of Sponsor Independent Directors.

 

“Junior Claim” means (a) a claim against the Issuer or any Guarantor that would be subordinated to the Issuer’s obligations under this Indenture and the Notes, or such Guarantor’s obligations under its Note Guarantee, under 11 U.S.C. Sec. 510 (or any successor statute) in a hypothetical Chapter 11 case where the Issuer or such Guarantor were a debtor, or (b) any claim against TerraForm (other than related to tax claims); provided, however, that a claim shall not be a Junior Claim hereunder to the extent that the Parent, the Issuer or a Restricted Subsidiary is directly or indirectly liable for such claim and the claim against the Parent, the Issuer or such Restricted Subsidiary is not a claim of the type set forth in clause (a) hereof.  For purpose of this definition, “claim” has the meaning set forth in 11 U.S.C. Sec. 101(5).

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“M&A Transaction” means any transaction or series of related transactions (including, without limitation, any merger, business combination or consolidation) the result of which would be (a) a Change of Control, (b) consolidation or merger of TerraForm, the Parent or the Issuer into another Person (whether or not TerraForm, the Parent or the Issuer is the surviving person) or (c) a sale, assignment, transfer, conveyance, or other disposition of all or substantially all of the properties or assets of TerraForm or Terraform and its Subsidiaries taken as a whole, the Parent or the Parent and its Subsidiaries taken as a whole or the Issuer or the Issuer and its Subsidiaries taken as a whole, in one or more related transactions, to another Person.

 

“Net Settlement Payments” means aggregate cash payments by the Parent, the Issuer or any Restricted Subsidiary in connection with the settlement of any litigation claim (or any cash payment made by the Parent, the Issuer or a Restricted Subsidiary to an affiliate, including TerraForm, in consideration of the settlement of any litigation claim), excluding (A) payments in respect of professional fees and expenses, (B) payments reimbursed or any amount reasonably expected to be covered by insurance and (C) payments with respect to which reimbursement has actually been received from any party other than Terraform or any of its Subsidiaries.

 

“Pending” means, as to any transaction, that the transaction is the subject of a binding commitment or agreement as of September 2, 2016 (other than the Amended and Restated Equity Interest Purchase and Sale Agreement, dated as of December 1, 2015, between TerraForm Global, LLC and SunEdison Holdings Corporation) or was listed as a “Pending Acquisition” in the Registration Statement on Form S-1 of TerraForm dated July 31, 2015, and in each case has not been terminated or waived.

 

“Sponsor Disposition and Offer” means (a) a direct or indirect sale or other disposition of all or substantially all of the equity interests in TerraForm held by the Sponsor and its Subsidiaries (other than the TerraForm Parties) (including through an M&A Transaction or through the acquisition of the applicable Sponsor or Subsidiary entity or entities holdings such interests) (such sale, a “Sponsor Disposition”) with (b) (A) an offer made pursuant to section 4.15 or (B) an offer (or binding agreement to make an offer) by TerraForm (or one of its affiliates) or a third party to each Holder to repurchase all or any part (being not less than $2,000 or an integral multiple in excess of $1,000) of the Holder’s Notes, at a purchase price in cash at least equal to 101% of the aggregate principal amount of Notes repurchased, plus accrued and unpaid interest, if any, on the Note repurchased on the date of purchase, on terms no less favorable to Holders than those contained in Section 4.15, except that notice of such offer may be delivered to each Holder (with a copy to the Trustee) within 90 days following the completion of such Sponsor Disposition.

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“Sponsor Independent Director” means a person other than (a) an executive officer, employee or director of a Sponsor Related Party (other than an executive officer for the TerraForm Parties) or (b) any other individual having a relationship which, in the opinion of the Parent’s Board of Directors, would interfere with the exercise of independent judgment in carrying out the responsibilities of a director of the Parent; provided, however, “Sponsor Independent Director” shall not include (A) a director who is, or at any time during the past three years was, employed by a Sponsor Related Party (other than as an executive officer for the TerraForm Parties); (B) a director who accepted or who has a Family Member who accepted any compensation from the Sponsor Related Parties in excess of $120,000 during any period of twelve consecutive months within the three years preceding the determination of independence, other than the following: (i) compensation for board or board committee service; (ii) compensation paid to a Family Member who is an employee or executive officer of a Sponsor Related Party; (iii) benefits under a tax-qualified retirement plan, or non-discretionary compensation; or (iv) compensation for service as an executive officer for the TerraForm Parties or as an employee primarily dedicated to performing services for the TerraForm Parties; (C) a director who is a Family Member of an individual who is, or at any time during the past three years was, employed by the Sponsor Related Parties as an executive officer (other than as an executive officer for the TerraForm Parties or as an employee primarily dedicated to performing services for the TerraForm Parties); (D) a director who is, or has a Family Member who is, a partner in, or a controlling shareholder or an executive officer of, any organization (other than the TerraForm Parties) to which a Sponsor Related Party made, or from which the Sponsor Related Party received, payments for property or services in the current or any of the past three fiscal years that exceed 5% of the recipient’s consolidated gross revenues for that year, or $200,000, whichever is more, other than the following: (i) payments arising solely from investments in the Company’s securities; or (ii) payments under non-discretionary charitable contribution matching programs.  For purposes of this definition, “Family Member” means a person’s spouse, parents, children and siblings, whether by blood, marriage or adoption, or anyone residing in such person’s home.

 

“Sponsor Related Parties” means the Sponsor or its Subsidiaries (other than the TerraForm Parties).

 

“TerraForm Parties” TerraForm or its Subsidiaries or TerraForm Power, Inc. or its Subsidiaries.

SECTION 1.3          The definition of “Cumulative CAFD” in the Indenture is hereby amended to change the reference to “2015” to “2016.”

SECTION 1.4          The definition of “Permitted Investment” in the Indenture is hereby amended to:

(a)          add at the end of clause (2)(ii) “provided in each case that until the occurrence of a Sponsor Disposition and Offer, such Investments must be existing or Pending as of September 2, 2016;”

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(b)          add at the end of clause (6): “provided in each case that until the occurrence of a Sponsor Disposition and Offer, any such whole-plant acquisition must be existing or Pending as of September 2, 2016;”

(c)          add at the end of clause (12): “provided that until the occurrence of a Sponsor Disposition and Offer, any such Permitted Business Investments must be existing or Pending as of September 2, 2016;” and

(d)          amend clause (16) to read: “other Investments made since the Issue Date in any Person having an aggregate Fair Market Value at any time outstanding (measured, with respect to each Investment, on the date such Investment was made and without giving effect to subsequent changes in value) not to exceed the greater of (A) $18.75 million or (B) 0.5% of Consolidated Total Assets determined as of the date any Investment pursuant to this clause (B) is made; provided that, following the occurrence of a Sponsor Disposition and Offer, if any Investment pursuant to this clause (16) is made in any Person that is not a Restricted Subsidiary of the Parent at the date of the making of such Investment and such Person becomes a Restricted Subsidiary of the Parent after such date (in compliance with the terms of this Indenture), such Investment shall thereafter be deemed to have been made pursuant to clause (1) above and not this clause (16) ; provided further that on the date of any Investment pursuant to this clause (16) there shall be an Independent Board.”

SECTION 1.5          Clause (33) of the definition of “Permitted Lien” in the Indenture is hereby amended to:

(a)          change the reference to “(i) $50.0 million or (ii) 1.5% of Consolidated Total Assets” to “(i) $12.5 million or (ii) 0.375% of Consolidated Total Assets” and

(b)          delete the period at the end of the clause and add at the end of the clause: “; provided that there is an Independent Board on the date of incurrence of such Lien or Indebtedness.”

SECTION 1.6          Section 4.01 of the Indenture is hereby amended to:

(a)          add the following after the phrase “in the manner provided in the Notes”:

“(and, with respect to the special interest referred to in the second paragraph of this Section 4.01, as provided in such second paragraph)”; and 

(b)          add the following new paragraph at the end thereof:

“Beginning on September 6, 2016 through and including December 6, 2016, additional special interest will accrue on the Notes at a rate equal to 4.0% per annum (which such special interest shall cease to accrue after December 6, 2016), which shall be in addition to interest as provided in the Notes and payable in the same manner as such other interest payments on the Notes on the Interest Payment Date immediately following December 6, 2016.”

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SECTION 1.7          Section 4.03(f) of the Indenture is hereby amended to reference Section 6.01(3) instead of Section 6.01(4).

SECTION 1.8          Sections 4.07(a)(i) and (ii) of the Indenture (i.e., the text beginning with “(i) if the Fixed Charge Coverage Ratio” through the end of Section 4.07(a)) are hereby amended and restated in their entirety to read as follows (including the addition of a new clause (iii)):

“(i) if the Fixed Charge Coverage Ratio for the applicable Test Period at the time of such Restricted Payment is greater than or equal to 1.75 to 1.00, such Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Parent and its Restricted Subsidiaries since July 1, 2016 (excluding Restricted Payments permitted by clauses (2) through (13) of Section 4.07(b) or clause (ii) below), is less than the sum, without duplication, of:

 

(A) Cumulative CAFD, determined as of the date such Restricted Payment is made; provided that until the occurrence of a Sponsor Disposition and Offer, for each fiscal quarter that begins after June 30, 2016 and in which a Sponsor Disposition and Offer does not occur, Cumulative CAFD shall only be increased by the lesser of (x) 70% of CAFD otherwise calculated pursuant to the definition thereof for such fiscal quarter and (y) $15.0 million for the fiscal quarter ending September 30, 2016 and $21.0 million for any subsequent fiscal quarter; plus 

 

(B) 100% of the aggregate net proceeds received by the Parent (including the Fair Market Value of the Capital Stock of a Permitted Business or long-term assets used or useful in a Permitted Business) since July 1, 2016 (x) as a contribution to its common equity capital or (y) in consideration of the sale or issuance of Equity Interests of the Parent (other than Disqualified Stock) or from the issue or sale of convertible or exchangeable Disqualified Stock of the Parent or the Issuer or convertible or exchangeable debt securities of the Parent or the Issuer, in each case that have been converted into or exchanged for Equity Interests of the Parent or any direct or indirect parent of the Parent (other than Equity Interests (or Disqualified Stock or debt securities) sold to a Subsidiary of the Parent); plus 

 

(C) to the extent that any Restricted Investment that was made after July 1, 2016 is sold for cash or otherwise liquidated or repaid for cash, 100% of the aggregate amount received by the Parent or its Restricted Subsidiaries in cash and the Fair Market Value of property other than cash received; plus 

 

(D) the net reduction in Restricted Investments after July 1, 2016 resulting from dividends, liquidating distributions, redemptions, repayments of loans or advances, or other transfers of assets in each case to the Parent or any of its Restricted Subsidiaries from any Person (including, without limitation, Unrestricted Subsidiaries and Joint Ventures) or from redesignation of Unrestricted Subsidiaries as Restricted Subsidiaries, in the case of each of the foregoing items (B), (C) and (D) for purposes of this clause (i), to the extent such amounts have not been included in Cumulative CAFD for any period commencing on or after July 1, 2016 (items (B), (C) and (D) being referred to collectively as “Incremental Funds”); minus 

  

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(E) the aggregate amount of Incremental Funds expended since July 1, 2016 pursuant to this clause (i) or clause (iii) below; minus

 

(F) the aggregate amount of Excess Settlement Amounts paid after September 2, 2016 and designated to this Item (F) pursuant to Section 4.20(b);

 

provided that at the time of a Restricted Payment pursuant to this clause (i) there is an Independent Board or the Sponsor Independent Directors have unanimously voted in favor of such Restricted Payment; provided further, until the occurrence of a Sponsor Disposition and Offer, the reference to “1.75” in this clause (i) shall be replaced with “2.25”; or

 

(ii) if such Restricted Payment is not an Equity Restricted Payment and if the Fixed Charge Coverage Ratio for the applicable Test Period at the time of such Restricted Payment is greater than or equal to 1.75 to 1.00, such Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Parent and its Restricted Subsidiaries since July 1, 2016 (excluding Restricted Payments permitted by clauses (2) through (13) of Section 4.07(b) or made under clauses (i) above or (iii) below), is less than:

 

(A)          $50 million; minus

 

(B)          the aggregate amount of Excess Settlement Amounts paid after September 2, 2016 and designated to this Item (B) pursuant to Section 4.20(b); provided that at the time of a Restricted Payment pursuant to this clause (ii) there is an Independent Board or the Sponsor Independent Directors have unanimously voted in favor of such Restricted Payment; provided further, until the occurrence of a Sponsor Disposition and Offer, the reference in this clause (ii) to “1.75” shall be replaced with “2.25”; or

 

(iii) if the Fixed Charge Coverage Ratio for the applicable Test Period at the time of such Restricted Payment is less than 1.75 to 1.00, such Restricted Payment, together with the aggregate amount of all other Restricted Payments made by the Parent and its Restricted Subsidiaries during the quarter in which such Restricted Payment is made (excluding Restricted Payments permitted by clauses (2) through (13) of Section 4.07(b)) is less than the sum, without duplication, of:

 

(A) $25.0 million less the aggregate amount of all Restricted Payments made by the Parent and its Restricted Subsidiaries pursuant to this clause (iii)(A) during the period beginning on July 1, 2016 and ending on the last day of the fiscal quarter immediately preceding the quarter in which such Restricted Payment is made; plus

 

(B) Incremental Funds to the extent such amounts have not been expended on or after July 1, 2016 pursuant to this clause (iii) or clause (i) above (including any amounts that were included in Cumulative CAFD for any period commencing on or after July 1, 2016 and expended pursuant to clause (i) above);

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provided that at the time of a Restricted Payment pursuant to this clause (iii) there is an Independent Board or the Sponsor Independent Directors have unanimously voted in favor of such Restricted Payment; provided further, until the occurrence of a Sponsor Disposition and Offer, the reference in this clause (iii) to “1.75” shall be replaced with “2.25.”

 

Notwithstanding any of the foregoing to the contrary, the amount of Incremental Funds will not be increased as a result of the Organizational Transactions.”

SECTION 1.9          Section 4.07(b)(14) of the Indenture is hereby amended to:

(a)          change the reference to “(i) $10 million or (ii) 0.25% of Consolidated Total Assets” to “(i) $2.5 million or (ii) 0.0625% of Consolidated Total Assets”; and

(b)          delete the period at the end of the clause and add: “; provided that on the date of any such additional Restricted Payments there is an Independent Board.”

SECTION 1.10          Section 4.09(a) of the Indenture is hereby amended to:

(a)          change the reference to “2.0” to “3.0”; and

(b)          delete the period at the end of the clause and add: “; provided that on the date of any such incurrence there is an Independent Board.”

SECTION 1.11          Section 4.09(b)(1) of the Indenture is hereby amended to:

(a)          change the reference to “the greatest of (A) $750.0 million, (B) 20.0% of Consolidated Total Assets, determined as of the date of each incurrence pursuant to this clause (1)(i)(B), and (C) 2.5x CFADS for the applicable Test Period, determined as of the date of each incurrence pursuant to this clause (1)(i)(C)” to “$350.0 million”; and

(b)          add at the end of the clause: “provided that on the date of any such incurrence there is an Independent Board;”

SECTION 1.12          Section 4.09(b)(15) of the Indenture is hereby amended to replace the clause in its entirety with “Intentionally omitted;”.

SECTION 1.13          Section 4.09(b)(20) of the Indenture is hereby amended to:

(a)          change the reference to “(i) $125.0 million or (ii) 3.0%” to “(i) $31.25 million or (ii) 0.75%”; and

(b)          add at the end of the clause: “provided that on the date of any such incurrence there is an Independent Board;”

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SECTION 1.14          Section 4.09(b)(21) of the Indenture is hereby amended to replace the clause in its entirety with “Intentionally omitted;”.

SECTION 1.15          Section 4.11 of the Indenture is hereby amended to include at the end a new clause (c):

“(c) Notwithstanding the foregoing, the Parent will not, and will not permit any Restricted Subsidiary to, directly or indirectly, enter into any material transaction or series of related transactions (including, without limitation, the sale, purchase, exchange or lease of assets or property or the rendering of any service) related to any Project with a Sponsor Related Party that is (a) not in the ordinary course of business or (b) not existing or Pending as of September 2, 2016, unless approved by the Corporate Governance and Conflicts Committee of TerraForm or Parent (or, if at any time TerraForm is not the sole managing member of the Parent, (x) the Corporate Governance and Conflicts Committee of Parent or (y) the Board of Directors of Parent (including a majority of the independent directors of such Board of Directors, to the extent applicable)).”

SECTION 1.16          Section 4.17 of the Indenture is hereby amended to delete the word “and” at the end of clause (1), replace the period at the end of clause (2) with “; and” and include at the end a new clause (3), as follows, immediately following clause (2):

“(3) such Subsidiary was not a Restricted Subsidiary as of September 2, 2016 and is not a Restricted Subsidiary to whom a Subsidiary that was a Restricted Subsidiary as of September 2, 2016 sold, assigned, transferred, conveyed or otherwise disposed all or substantially all of its property or assets.”

SECTION 1.17          Section 4.18 of the Indenture is hereby amended to replace the section in its entirety with “Intentionally omitted”.

SECTION 1.18          A new Section 4.19 Cancellation of Notes Held by Certain Persons is hereby added to the Indenture as follows:

“Section 4.19 Cancellation of Notes Held by Certain Persons

          Notes owned as of September 2, 2016, or acquired thereafter, by TerraForm, the Parent or any Restricted Subsidiary shall be delivered as soon as practicable (but in any event within 15 days of the completion of such acquisition) to the Trustee for cancellation.”

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SECTION 1.19          A new Section 4.20 Limitation on Excess Settlement Amounts is hereby added to the Indenture as follows:

“Section 4.20 Limitation on Excess Settlement Amounts

Prior to the public announcement of a binding M&A Transaction or of a Sponsor Disposition that has been approved by the Board of Directors of TerraForm, which M&A Transaction or Sponsor Disposition includes an offer made pursuant to section 4.15 or an offer (or binding agreement to make an offer) by TerraForm (or one of its affiliates) or a third party to each Holder to repurchase all or any part (being not less than $2,000 or an integral multiple in excess of $1,000) of the Holder’s Notes, at a purchase price in cash at least equal to 101% of the aggregate principal amount of Notes repurchased, plus accrued and unpaid interest, if any, on the Notes repurchased on the date of purchase, on terms no less favorable to Holders than those contained in Section 4.15, except that notice of such offer may be delivered to each Holder (with a copy to the Trustee) within 90 days following such the completion of such M&A Transaction or Sponsor Disposition, the Issuer and the Parent shall not, and shall cause each Restricted Subsidiary not to, settle or pay any settlement amount in respect of any litigation claim (or provide cash to an affiliate to be used by such affiliate to settle or pay any settlement amount in respect of any litigation claim) involving payment of Excess Settlement Amounts, unless:

 

(a)          the Board of Directors of TerraForm or the Corporate Governance and Conflicts Committee of TerraForm or the Parent, as applicable, has approved such settlement or other disposition and, in the case of a settlement on account of a Junior Claim, has reasonably determined that the payment of such Excess Settlement Amounts can be made in compliance with Section 4.20(b) hereof; and

(b)          at the time of payment of any Excess Settlement Amount for settlement of Junior Claims, (i) Issuer shall designate such Excess Settlement Amount to either item (F) of Section 4.07(a)(i), item (B) of Section 4.07(a)(ii) or a combination thereof and (i) Issuer shall not designate amounts thereto that, after giving effect thereto, would result in either the amount available for Restricted Payments under Section 4.07(a)(i) or the amount available for Restricted Payments under Section 4.07(a)(ii) to be less than zero.”

SECTION 1.20          A new Section 4.21 Repayment of and Reborrowing under Credit Facility is hereby added to the Indenture as follows:

“Section 4.21 Repayment of and Reborrowing under Credit Facility

(a)          As soon as practicable after September 2, 2016, but in any event not later than five (5) Business Days thereafter, the Issuer shall repay all outstanding Indebtedness borrowed under the Credit Agreement; provided that the Issuer may maintain outstanding letters of credit existing on September 2, 2016 to the extent that the total amount of such Letters of Credit does not exceed $1 million and may renew or extend (automatically or voluntarily) any such letter of credit.

 

(b)          After the date of such repayment, the Parent will not, and will not permit any Restricted Subsidiary, to borrower any Indebtedness (including, for the avoidance of doubt, any letters of credit other than the existing outstanding letters of credit or the extension or renewal of such letters of credit) under the Credit Agreement until the earlier to occur of (i) six months following the date on which the requirement of clause (a) of this Section 4.21 has been satisfied and (ii) the occurrence of a Sponsor Disposition and Offer.”

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SECTION 1.21          A new Section 4.22 Additional Advisor Disclosure is hereby added to the Indenture as follows:

“Section 4.22 Additional Advisor Disclosure

The Issuer and the Parent shall comply in all material respects with the Advisor Disclosure Letter unless such letter has been terminated in accordance with its terms.”

SECTION 1.22          Section 6.01(3) of the Indenture is hereby amended to add “or 4.22” immediately after “Section 4.03”.

SECTION 1.23          Section 8.03 of the Indenture is hereby amended to change the reference to “Sections 3.09, 4.03, 4.04, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.16 and 4.17 and clause (4) of Section 5.01” to “Sections 3.09, 4.03, 4.04, 4.07, 4.08, 4.09, 4.10, 4.11, 4.12, 4.13, 4.15, 4.16, 4.17, 4.19, 4.20, 4.21 and 4.22 and clause (4) of Section 5.01”.

 

ARTICLE II.          MISCELLANEOUS.

 

SECTION 2.1.          CAPITALIZED TERMS. Capitalized terms used herein without definition shall have the meanings assigned to them in the Indenture.

 

SECTION 2.2.          NO RECOURSE AGAINST OTHERS. No director, officer, employee, member, manager, incorporator or stockholder of the Issuer or any Guarantor, as such, will have any liability for any obligations of the Issuer or the Guarantors under the Notes, the Indenture as supplemented by this Supplemental Indenture, the Note Guarantees, or for any claim based on, in respect of, or by reason of, such obligations or their creation. Each Holder by accepting a Note waives and releases all such liability. The waiver and release are part of the consideration for issuance of the Notes. The waiver may not be effective to waive liabilities under the federal securities laws.

 

SECTION 2.3.          NEW YORK LAW TO GOVERN. THE INTERNAL LAW OF THE STATE OF NEW YORK SHALL GOVERN AND BE USED TO CONSTRUE THIS SUPPLEMENTAL INDENTURE WITHOUT GIVING EFFECT TO APPLICABLE PRINCIPLES OF CONFLICTS OF LAW TO THE EXTENT THAT THE APPLICATION OF THE LAWS OF ANOTHER JURISDICTION WOULD BE REQUIRED THEREBY. EACH OF THE ISSUER, THE GUARANTORS, THE TRUSTEE AND THE HOLDERS HEREBY IRREVOCABLY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY AND ALL RIGHT TO TRIAL BY JURY IN ANY LEGAL PROCEEDING ARISING OUT OF OR RELATING TO THE INDENTURE AS SUPPLEMENTED BY THIS SUPPLEMENTAL INDENTURE, THE NOTES, THE NOTE GUARANTEES OR THE TRANSACTION CONTEMPLATED HEREBY AND THEREBY.

 

SECTION 2.4.          COUNTERPARTS. The parties may sign any number of copies of this Supplemental Indenture. Each signed copy shall be an original, but all of them together represent the same agreement.

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SECTION 2.5.          EFFECT OF HEADINGS. The Section headings herein are for convenience only and shall not affect the construction hereof.

 

SECTION 2.6.          THE TRUSTEE. The Trustee shall not be responsible in any manner whatsoever for or in respect of the validity or sufficiency of this Supplemental Indenture or for or in respect of the recitals contained herein, all of which recitals are made solely by the Issuer and the Guarantors.

SECTION 2.7.          RATIFICATION OF INDENTURE; SUPPLEMENTAL INDENTURES PART OF INDENTURE. The Indenture, as supplemented and amended by this Supplemental Indenture, is in all respects ratified and confirmed and the terms, conditions and provisions thereof, as supplemented and amended by this Supplemental Indenture, shall remain in full force and effect. This Supplemental Indenture shall form a part of the Indenture for all purposes, and every Holder heretofore or hereafter shall be bound hereby.

SECTION 2.8.          EFFECTIVENESS. This Supplemental Indenture (including the amendments contained in Article I herein) shall be effective as of the date hereof.

 

[Remainder of Page Intentionally Left Blank]

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IN WITNESS WHEREOF, the parties hereto have caused this Supplemental Indenture to be duly executed and attested, all as of the date first above written.

	 	
TERRAFORM GLOBAL OPERATING, LLC

	 	
as Issuer

	 	 
	 	 
	 	
By:

	
TERRAFORM GLOBAL, LLC,

	 	 	Its Sole Member and Sole Manager
	 	 
	 	 
	 	
By:

	
/s/ Yana Kravtsova

	 	 	
Name:

	
Yana Kravtsova

	 	 	
Title:

	
Senior Vice President, General Counsel and Secretary

	 	 
	 	 
	 	
TERRAFORM GLOBAL, LLC

	 	
as Parent Guarantor

	 	 
	 	 
	 	
By:

	
/s/ Yana Kravtsova

	 	 	
Name:

	
Yana Kravtsova

	 	 	
Title:

	
Senior Vice President, General Counsel and Secretary

 

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EM HOLDINGS 18, LLC

	 	
as Guarantor

	 	 
	 	 
	 	
By:

	
TERRAFORM GLOBAL OPERATING, LLC,

	 	 	
its Sole Member and Sole Manager

	 	 
	 	 
	 	
By:

	
TERRAFORM GLOBAL, LLC,

	 	 	
its Sole Member and Sole Manager

	 	 
	 	 
	 	
By:

	
/s/ Yana Kravtsova

	 	 	
Name:

	
Yana Kravtsova

	 	 	
Title:

	
Senior Vice President, General Counsel and Secretary

	 	 
	 	 
	 	
TERRAFORM GLOBAL INTERNATIONAL HOLDINGS B.V.

	 	
as Guarantor

	 	 
	 	 
	 	
By:

	
/s/ S.I. Rep

	 	 	
Name:

	
S.I. Rep

	 	 	
Title:

	
Managing Director

	 	 
	 	 
	 	
SE EMERGING MARKETS SOLAR HOLDINGS PTE. LTD.

	 	
as Guarantor

	 	 
	 	 
	 	
By:

	
/s/ Sander Hubbers

	 	 	
Name:

	
Sander Hubbers

	 	 	
Title:

	
Director

 

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U.S. BANK NATIONAL ASSOCIATION,

	 	
as Trustee

	 	 
	 	 
	 	
By:

	
/s/ Richard Prokosch

	 	 	
Name:

	
Richard Prokosch

	 	 	
Title:

	
Vice President

 

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