Document:

PZZA_Exhibit_10_1

		
			Exhibit 10.1
		

		
			SECOND AMENDMENT TO FIRST AMENDED AND RESTATED CREDIT AGREEMENT
		

		
			Second Amendment to First Amended and Restated Credit Agreement, dated June 8, 2016, by and among Papa John's International, Inc., a Delaware corporation (the "Borrower"), each of the Guarantors (as listed on the signature pages hereto), the Banks (as hereinafter defined) and PNC Bank, National Association, in its capacity as administrative agent for the Banks (in such capacity, the "Administrative Agent") (the "Second Amendment").
		

		
			W I T N E S S E T H:
		

		
			WHEREAS, the Borrower, the Guarantors, RSC Insurance Services Ltd., a Bermuda company, the Banks and the Administrative Agent have entered into that certain First Amended and Restated Credit Agreement, dated April 30, 2013, as amended by that certain First Amendment to First Amended and Restated Credit Agreement, dated October 31, 2014 (as further amended, restated, modified or supplemented from time to time, the "Credit Agreement"); and
		

		
			WHEREAS, the Borrower hereby requests that the Revolving Credit Commitments be increased by One Hundred Million and 00/100 Dollars ($100,000,000.00) in accordance with Section 2.11 of the Credit Agreement (as such Section exists prior to the effectiveness of this Second Amendment), and in connection with the foregoing the Borrower and the Guarantors desire to amend certain provisions of the Credit Agreement, and the Administrative Agent and each of the Banks desire to permit such amendments pursuant to the terms and conditions set forth herein.
		

		
			NOW, THEREFORE, in consideration of the premises contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, and intending to be legally bound hereby, the parties hereto agree as follows:
		

		
			1.All capitalized terms used herein that are defined in the Credit Agreement shall have the same meaning herein as in the Credit Agreement unless the context clearly indicates otherwise.
		

		
			2.The cover page of the Credit Agreement is hereby amended to delete the reference to "$400,000,000.00" set forth therein and in its stead insert a reference to "$500,000,000.00".
		

		
			3.The first "WHEREAS" clause of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted the following:
		

		
			WHEREAS, the Borrower has requested the Banks to provide a revolving credit facility (including a letter of credit subfacility) to the Borrower in an aggregate principal amount, subject to Section 2.10 [Reduction of Revolving Credit Commitments] and Section 2.11 [Increase of Revolving Credit Commitments], not to exceed Five Hundred Million and 00/100 Dollars ($500,000,000.00); and
		

		
			
		

		 

 

		
			4.The definition of Daily LIBOR Rate set forth in Section 1.1 of the Credit Agreement is hereby amended to add the following new paragraph to the end thereof:
		

		
			Notwithstanding the foregoing, if the Daily LIBOR Rate as determined above would be less than zero (0.00), such rate shall be deemed to be zero (0.00) for purposes of this Agreement.
		

		
			5.The definition of Euro-Rate set forth in Section 1.1 of the Credit Agreement is hereby amended to add the following new paragraph to the end thereof:
		

		
			Notwithstanding the foregoing, if the Euro-Rate as determined under any method above would be less than zero (0.00), such rate shall be deemed to be zero (0.00) for purposes of this Agreement.
		

		
			6.Section 2.11 of the Credit Agreement is hereby deleted in its entirety and in its stead is inserting the following:
		

		
			2.11Reserved.
		

		
			7.Part 1 of Schedule 1.1(B) of the Credit Agreement is hereby deleted in its entirety and in its stead is inserted Part 1 of Schedule 1.1(B) of the Credit Agreement set forth on Exhibit A attached hereto and made a part hereof.
		

		
			8.The provisions of Sections 2 through 7 of this Second Amendment shall not become effective until the Administrative Agent has received the following, each in form and substance acceptable to the Administrative Agent and its counsel:
		

		
			(a)this Second Amendment, duly executed by the Borrower, the Guarantors, the Banks and the Administrative Agent;
		

		
			(b)the documents listed in the Preliminary Closing Agenda set forth on Exhibit B attached hereto and made a part hereof;
		

		
			(c)payment of all fees and expenses owed to the Administrative Agent and its counsel and the Banks in connection with this Second Amendment (including, without limitation, any such fees and expenses payable pursuant to that separate fee letter, dated of even date herewith, executed and delivered by the Administrative Agent and acknowledged and agreed to by the Borrower);  and
		

		
			(d)such other documents as may be reasonably requested by the Administrative Agent.
		

		
			9.The Loan Parties hereby reconfirm and reaffirm all representations and warranties, agreements and covenants made by them pursuant to the terms and conditions of the Credit Agreement, except as such representations and warranties, agreements and covenants may have heretofore been amended, modified or waived in writing in accordance with the Credit Agreement.
		

		
			
		

		 

		

			2

		

		

			 

		

 

		
			10.The Loan Parties hereby represent and warrant to the Administrative Agent and each of the Banks that (i) the Loan Parties have the legal power and authority to execute and deliver this Second Amendment; (ii) the officers of the Loan Parties executing this Second Amendment have been duly authorized to execute and deliver the same and bind such Loan Parties with respect to the provisions hereof; (iii) the execution and delivery hereof by the Loan Parties and the performance and observance by the Loan Parties of the provisions hereof, of the Credit Agreement and of all documents executed or to be executed therewith, do not violate or conflict with the organizational documents of the Loan Parties or any Law applicable to the Loan Parties or result in a breach of any provision of or constitute a default under any other agreement, instrument or document binding upon or enforceable against the Loan Parties; and (iv) this Second Amendment, the Credit Agreement and the documents executed or to be executed by the Loan Parties in connection herewith or therewith constitute valid and binding obligations of the Loan Parties in every respect, enforceable in accordance with their respective terms.
		

		
			11.The Loan Parties represent and warrant to the Administrative Agent and each of the Banks that (i) no Event of Default or Potential Default exists under the Credit Agreement, nor will any occur as a result of the execution and delivery of this Second Amendment or the performance or observance of any provision hereof, (ii) the Schedules attached to and made a part of the Credit Agreement, as amended by this Second Amendment, are true and correct as of the date hereof and there are no modifications or supplements thereto, and (iii) they presently have no claims or actions of any kind at law or in equity against the Banks or the Administrative Agent arising out of or in any way relating to the Credit Agreement or the other Loan Documents.
		

		
			12.Each reference to the Credit Agreement that is made herein, in the Credit Agreement or in any other document executed or to be executed in connection herewith or with the Credit Agreement shall hereafter be construed as a reference to the Credit Agreement as amended hereby.
		

		
			13.The agreements contained in this Second Amendment are limited to the specific agreements made herein.  Except as amended hereby, all of the terms and conditions of the Credit Agreement shall remain in full force and effect.  This Second Amendment amends the Credit Agreement and is not a novation thereof.
		

		
			14.This Second Amendment may be executed in any number of counterparts and by the different parties hereto on separate counterparts each of which, when so executed, shall be deemed to be an original, but all such counterparts shall constitute but one and the same instrument.
		

		
			15.This Second Amendment shall be governed by, and shall be construed and enforced in accordance with, the Laws of the State of New York without regard to the principles of the conflicts of law thereof.  The Loan Parties, the Banks and the Administrative Agent hereby consent to the jurisdiction and venue of the Supreme Court of New York County and the United States District Court for the Southern District of New York with respect to any suit arising out of or mentioning this Second Amendment.
		

		
			 
		

		
			[INTENTIONALLY LEFT BLANK]
		

		
			 
		

		
			 
		

		
			

		 

		

			3

		

		

			 

		

 

IN WITNESS WHEREOF, and intending to be legally bound, the parties hereto, have caused this Second Amendment to be duly executed by their duly authorized officers on the date first written above.
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						BORROWER:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						WITNESS

					
					
						 

					
					
						PAPA JOHN'S INTERNATIONAL, INC

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ Kenneth M. Cox

					
					
						 

					
					
						By:   /s/ Lance F. Tucker                   (Seal)

				
	
					
						 

					
					
						 

					
					
						Name: Lance F. Tucker

				
	
					
						 

					
					
						 

					
					
						Title: Senior Vice President, Chief 

				
	
					
						 

					
					
						 

					
					
						Financial Officer, Chief Administrative

				
	
					
						 

					
					
						 

					
					
						Officer and Treasurer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						GUARANTORS:

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						WITNESS:

					
					
						 

					
					
						PAPA JOHN'S USA, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ Kenneth M. Cox

					
					
						 

					
					
						By:   /s/ Lance F. Tucker                             

				
	
					
						 

					
					
						 

					
					
						Name: Lance F. Tucker

				
	
					
						 

					
					
						 

					
					
						Title: Senior Vice President, Chief 

				
	
					
						 

					
					
						 

					
					
						Financial Officer, Chief Administrative

				
	
					
						 

					
					
						 

					
					
						Officer and Treasurer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						WITNESS:

					
					
						 

					
					
						PREFERRED MARKETING SOLUTIONS, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ Kenneth M. Cox

					
					
						 

					
					
						By:   /s/ Lance F. Tucker                               

				
	
					
						 

					
					
						 

					
					
						Name:  Lance F. Tucker

				
	
					
						 

					
					
						 

					
					
						Title: Treasurer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						WITNESS

					
					
						 

					
					
						CAPITAL DELIVERY, LTD

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ Kenneth M. Cox

					
					
						 

					
					
						By:   /s/ Lance F. Tucker                                

				
	
					
						 

					
					
						 

					
					
						Name: Lance F. Tucker

				
	
					
						 

					
					
						 

					
					
						Title:  President and Treasurer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			
		

		
			

		 

 

 
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						WITNESS:

					
					
						 

					
					
						RISK SERVICES CORP.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ Kenneth M. Cox

					
					
						 

					
					
						By:    /s/ Lance F. Tucker                              

				
	
					
						 

					
					
						 

					
					
						Name: Lance F. Tucker

				
	
					
						 

					
					
						 

					
					
						Title:  President and Treasurer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						WITNESS:

					
					
						 

					
					
						PJ FOOD SERVICE, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ Kenneth M. Cox

					
					
						 

					
					
						By:    /s/ Lance F. Tucker                               

				
	
					
						 

					
					
						 

					
					
						Name: Lance F. Tucker

				
	
					
						 

					
					
						 

					
					
						Title:  Treasurer

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						WITNESS

					
					
						 

					
					
						TRANS PAPA LOGISTICS, INC.

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						/s/ Kenneth M. Cox

					
					
						 

					
					
						By:     /s/ Lance F. Tucker                                 

				
	
					
						 

					
					
						 

					
					
						Name:   Lance F. Tucker                                   

				
	
					
						 

					
					
						 

					
					
						Title:     Treasurer                                              

				
	
					
						 

					
					
						 

					
					
						 

				

		
			 
		

		
			 
		

		

		 

		

			 

		

		

			 

		

 

	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						PNC BANK, NATIONAL ASSOCIATION,

				
	
					
						 

					
					
						 

					
					
						as a Bank and as Administrative Agent

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:    /s/ Deroy Scott                                  

				
	
					
						 

					
					
						 

					
					
						Name:  Deroy Scott

				
	
					
						 

					
					
						 

					
					
						Title:  Senior Vice President

				

		
			 
		

		
			
		

		

		 

 

	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						JPMORGAN CHASE BANK, N.A., as a

				
	
					
						 

					
					
						 

					
					
						Bank and as Co-Syndication Agent

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:    /s/ James D. Baker, Jr.                    

				
	
					
						 

					
					
						 

					
					
						Name:   James Duffy Baker, Jr.                     

				
	
					
						 

					
					
						 

					
					
						Title:     Managing Director                            

				

		
			
		

		

		 

		

			 

		

		

			 

		

 

	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						BANK OF AMERICA, N.A., as a Bank and as

				
	
					
						 

					
					
						 

					
					
						Documentation Agent

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:     /s/ Thomas C. Kilcrease, Jr.                  

				
	
					
						 

					
					
						 

					
					
						Name:    Thomas C. Kilcrease, Jr.                   

				
	
					
						 

					
					
						 

					
					
						Title:    Senior Vice President                          

				

		
			 
		

		
			
		

		

		 

		

			 

		

		

			 

		

 

	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						U.S. BANK NATIONAL ASSOCIATION, as a

				
	
					
						 

					
					
						 

					
					
						Bank and as a Co-Syndication Agent

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:      /s/ Johnny L. Perry                               

				
	
					
						 

					
					
						 

					
					
						Name:    Johnny L. Perry                                 

				
	
					
						 

					
					
						 

					
					
						Title:   Senior Vice President                           

				

		
			 
		

		
			
		

		

		 

		

			 

		

		

			 

		

 

	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						BRANCH BANKING AND TRUST

				
	
					
						 

					
					
						 

					
					
						COMPANY, as a Bank

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						 

					
					
						 

					
					
						By:     /s/ Ryan T. Hamilton                           

				
	
					
						 

					
					
						 

					
					
						Name:     Ryan T. Hamilton                           

				
	
					
						 

					
					
						 

					
					
						Title:  Vice President                                      

				

		
			 
		

		
			
		

		
			

		 

		

			 

		

		

			 

		

 

EXHIBIT A
		

		
			Part 1 of Schedule 1.1(B)
		

		
			Part 1 - Commitments of Banks and Addresses for Notices to Banks; Lending Offices
		

			
					
						 

					
					
						 

					
					
						 

				
	
					
						

Bank

					
					
						Amount of
Commitment for Revolving Credit Loans

					
					
						

Ratable Share

				
	
					
						PNC Bank, National Association

					
						101 South Fifth Street

					
						Louisville, Kentucky 40202

					
						Attn:  Deroy Scott

					
						Telephone: (502) 581-7821

					
						Telecopy: (502) 581-7904

					
					
						$130,833,334.00

					
					
						26.166666800%

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						JPMorgan Chase Bank, N.A.

					
						416 W. Jefferson

					
						Louisville, KY  40202

					
						Attn:  Matt Multerer

					
						Telephone: (502) 566-8431

					
						Telecopy: (502) 566-2367

					
					
						$130,833,334.00

					
					
						26.166666800%

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						U.S. Bank National Association

					
						One Financial Square

					
						Louisville, KY 40202

					
						Attn:  Johnny L. Perry

					
						Telephone: (502) 562-6248

					
						Telecopy: (502) 562-6460

					
					
						$105,000,000.00

					
					
						21.000000000%

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Bank of America, N.A.

					
						414 Union Street

					
						TN1-100-04-04

					
						Nashville, TN  37219

					
						Attn:  Thomas Kilcrease

					
						Telephone: (615) 749-3926

					
						Telecopy: (615) 749-4762

					
					
						$91,666,666.00

					
					
						18.3333332%

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Branch Banking and Trust Company

					
						2600 East Point Parkway, Suite 103

					
						Louisville, KY  40223-5151

					
						Attn:  Greg Branstetter

					
						Telephone: (502) 614-4246

					
						Telecopy: (502) 253-2809

					
					
						$41,666,666.00

					
					
						8.3333332%

				
	
					
						 

					
					
						 

					
					
						 

				
	
					
						Total

					
					
						$500,000,000.00

					
					
						100.000000000%

				

		
			

		 

		

			 

		

		

			 

		

 

EXHIBIT B
		

		
			 
		

		
			PRELIMINARY CLOSING AGENDA
		

		
			This Preliminary Closing Agenda contains the documents to be delivered in connection with a second amendment to an amended and restated credit facility provided to Papa John's International, Inc., a Delaware corporation (the "Borrower"), by PNC Bank, National Association ("PNC Bank") and various other financial institutions from time to time (PNC Bank and such other financial institutions are each, a "Bank" and collectively, the "Banks"), with PNC Bank, as administrative agent for the Banks (in such capacity, the "Agent") and PNC Capital Markets LLC, a Pennsylvania limited liability company, as joint lead arranger and joint bookrunner.
		

		
			 
		

			
					
						.

					
					
						 

					
						 

					
						 

				
	
					
						 

					
						No.

					
					
						 

					
						LOAN DOCUMENTS

					
						 

				
	
					
						1.

					
					
						Second Amendment to First Amended and Restated Credit Agreement (the "Credit Agreement"), by and among the Borrower, Papa John's USA, Inc., a Kentucky corporation ("Papa John's USA"), Preferred Marketing Solutions, Inc., a Kentucky corporation (f/k/a Papa John's Support Services, Inc.) ("Preferred Marketing"), Capital Delivery, Ltd., a Kentucky corporation ("Capital Delivery"), Risk Services Corp., a Kentucky corporation ("Risk Services"), PJ Food Service, Inc., a Kentucky corporation ("PJ Food"), Trans Papa Logistics, Inc., a Kentucky corporation ("Trans Papa") (Papa John's USA, Preferred Marketing, Capital Delivery, Risk Services, PJ Food and Trans Papa are each, a "Guarantor" and collectively, the "Guarantors") (the Borrower and the Guarantors are collectively, the "Loan Parties"), the Banks and the Agent (the "Second Amendment").

				
	
					
						2.

					
					
						Third Amended and Restated Revolving Credit Note, made by the Borrower to PNC Bank in the principal amount not to exceed One Hundred Thirty Million Eight Hundred Thirty-Three Thousand Three Hundred Thirty-Four and 00/100 US Dollars (US $130,833,334.00).

				
	
					
						3.

					
					
						Third Amended and Restated Revolving Credit Note, made by the Borrower to JPMorgan Chase Bank, N.A. in the principal amount not to exceed One Hundred Thirty Million Eight Hundred Thirty-Three Thousand Three Hundred Thirty-Four and 00/100 US Dollars (US $130,833,334.00).

				
	
					
						4.

					
					
						Third Amended and Restated Revolving Credit Note, made by the Borrower to U.S. Bank, National Association in the principal amount not to exceed One Hundred Five Million and 00/100 Dollars ($105,000,000.00).

				
	
					
						5.

					
					
						Third Amended and Restated Revolving Credit Note, made by the Borrower to Bank of America, N.A.  in the principal amount not to exceed Ninety-One Million Six Hundred Sixty-Six Thousand Six Hundred Sixty-Six and 00/100.

				
	
					
						6.

					
					
						Third Amended and Restated Revolving Credit Note, made by the Borrower to Branch Banking and Trust Company in the principal amount not to exceed Forty-One Million Six Hundred Sixty-Six Thousand Six Hundred Sixty Six and 00/100.

				
	
					
						 

					
					
						 

				

		 

		

			 

		

		

			 

		

 

	
					
						 

					
					
						ORGANIZATIONAL DOCUMENTS

				
	
					
						 

					
					
						Borrower

				
	
					
						7.

					
					
						Good Standing Certificates of the Borrower from the Secretary of State of the Commonwealth of Kentucky and certain other material jurisdictions.

					
						 

					
						 

				
	
					
						8.

					
					
						Certificate of Secretary of the Borrower as to (i) resolutions of its Board of Directors authorizing the Borrower to enter into the Second Amendment and all related documents, (ii) incumbency, and (iii) no amendments to its Certificate of Incorporation or Bylaws.

				
	
					
						 

					
					
						Papa John's USA

				
	
					
						9.

					
					
						Good Standing Certificates of Papa John's USA from the Secretary of State of the Commonwealth of Kentucky and certain other material jurisdictions. 

					
						 

					
						 

				
	
					
						10.

					
					
						Certificate of the Corporate Assistant Secretary of Papa John's USA as to (i) resolutions of its Board of Directors authorizing it to enter into the Second Amendment and all related documents, (ii) incumbency, and (iii) no amendments to its Certificate of Incorporation or Bylaws.

				
	
					
						 

					
					
						Preferred Marketing

				
	
					
						11.

					
					
						Good Standing Certificates of Preferred Marketing from the Secretary of State of the Commonwealth of Kentucky.

				
	
					
						12.

					
					
						Certificate of the Corporate Assistant Secretary of Preferred Marketing as to (i) resolutions of its Board of Directors authorizing it to enter into the Second Amendment and all related documents, (ii) incumbency, and (iii) no amendments to its Certificate of Incorporation or Bylaws.

				
	
					
						 

					
					
						Capital Delivery

				
	
					
						13.

					
					
						Good Standing Certificates of Capital Delivery from the Secretary of State of the Commonwealth of Kentucky.

				
	
					
						14.

					
					
						Certificate of the Corporate Assistant Secretary of Capital Delivery as to (i) resolutions of its Board of Directors authorizing it to enter into the Second Amendment and all related documents, (ii) incumbency, and (iii) no amendments to its Certificate of Incorporation or Bylaws

				
	
					
						 

					
					
						Risk Services

				
	
					
						15.

					
					
						Good Standing Certificates of Risk Services from the Secretary of State of the Commonwealth of Kentucky.

				
	
					
						16.

					
					
						Certificate of the Corporate Assistant Secretary of Risk Services as to (i) resolutions of its Board of Directors authorizing it to enter into the Second Amendment and all related documents, (ii) incumbency, and (iii) no amendments to its Certificate of Incorporation or Bylaws.

				

		 

		

			 

		

		

			 

		

 

	
					
						 

					
					
						PJ Food

				
	
					
						17.

					
					
						Good Standing Certificates of PJ Food from the Secretary of State of the Commonwealths of Kentucky and certain other material jurisdictions.

				
	
					
						18.

					
					
						Certificate of the Corporate Assistant Secretary of PJ Food as to (i) resolutions of its Board of Directors authorizing it to enter into the Second Amendment and all related documents, (ii) incumbency, and (iii) no amendments to its Certificate of Incorporation or Bylaws.

				
	
					
						 

					
					
						Trans Papa

				
	
					
						19.

					
					
						Good Standing Certificates of Trans Papa from the Secretary of State of the Commonwealth of Kentucky and the State of New Jersey.

				
	
					
						20.

					
					
						Certificate of the Corporate Assistant Secretary of Trans Papa as to (i) resolutions of its Board of Directors authorizing it to enter into the Second Amendment and all related documents, (ii) incumbency, and (iii) no amendments to its Certificate of Incorporation or Bylaws.

				
	
					
						 

					
					
						RELATED DOCUMENTS

				
	
					
						21.

					
					
						UCC-11 Lien Searches or equivalent searches (including UCC's and taxes (to the extent tax liens are filed at the state level)) at the state level with respect to certain material locations of the Loan Parties (collectively, the "Lien Searches").

				
	
					
						22.

					
					
						Fully-executed copy of all UCC-3 Termination Statements and any other releases that may be necessary to satisfy any and all existing liens on the assets of the Loan Parties or disclosed by the Lien Searches which are not permitted pursuant to the terms of the Credit Agreement, if any (including, payoff letters, if applicable), all in form and substance satisfactory to the Agent.

				
	
					
						23.

					
					
						Opinion of Counsel to the Loan Parties, in form and substance satisfactory to the Agent and the Banks.

				
	
					
						24.

					
					
						Officer's Certificate of each Loan Party, as of the closing date, regarding no material adverse change, the accuracy of representations and warranties, compliance with covenants, no defaults, etc.scty-ex42_6.htm

 

Exhibit 4.2

SolarCity Corporation, as Issuer,

-and-

U.S. Bank National Association, as Trustee

 

 

ONE HUNDRED-AND-EIGHTIETH SUPPLEMENTAL INDENTURE

Dated as of June 10, 2016

to

INDENTURE

Dated as of October 15, 2014

 

 

    4.40% Solar Bonds, Series 2016/11-1

 

 

 

 

 

 

	
 
	
TABLE OF CONTENTS
	
 

	
 
	
 
	
PAGE

	
ARTICLE 1
DEFINITIONS

	
SECTION 1.01
	
Scope of Supplemental Indenture
	
2

	
SECTION 1.02
	
Definitions
	
2

	
ARTICLE 2
ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES

	
 
	
 
	
 

	
SECTION 2.01
	
Title and Terms
	
3

	
SECTION 2.02
	
Company Global Securities
	
3

	
SECTION 2.03
	
Payments
	
4

	
ARTICLE 3
MISCELLANEOUS PROVISIONS

	
 
	
 
	
 

	
SECTION 3.01
	
Trustee Acceptance
	
4

	
SECTION 3.02
	
Governing Law
	
5

	
SECTION 3.03
	
Trust Indenture Act
	
5

	
SECTION 3.04
	
Execution in Counterparts
	
5

	
SECTION 3.05
	
Severability
	
5

	
SECTION 3.06
	
Appointment of Paying Agent and Security Registrar
	
5

	
SECTION 3.07
	
Ratification of Original Indenture
	
5

	
 
	
 
	
 

	
EXHIBIT

	
Exhibit A
	
Form of Note
	
A-1

 

 

i

 

 

ONE HUNDRED-AND-EIGHTIETH SUPPLEMENTAL INDENTURE, dated as of June 10, 2016 (the “Supplemental Indenture”), between SolarCity Corporation, a Delaware corporation (hereinafter called the “Company”), having its principal executive office located at 3055 Clearview Way, San Mateo, California, 94402, and U.S. Bank National Association, a national banking association duly organized and existing under the laws of the United States of America, as trustee (in such capacity, the “Trustee”), to the indenture, dated as of October 15, 2014, between the Company and the Trustee (as amended or supplemented from time to time in accordance with the terms thereof, the “Original Indenture”).

RECITALS OF THE COMPANY

WHEREAS, the Company executed and delivered the Original Indenture to the Trustee to provide, among other things, for the issuance, from time to time, of the Company’s Securities, unlimited as to principal amount, in one or more series to be established by the Company under, and authenticated and delivered as provided in, the Original Indenture;

WHEREAS, Section 801(8) of the Original Indenture provides for the Company and the Trustee to enter into a supplemental indenture to the Original Indenture to provide for the issuance of and establish the forms and terms and conditions of Securities as permitted by Sections 201 and 301 of the Original Indenture;

WHEREAS, the Board of Directors and the Offering Committee thereof have duly adopted resolutions authorizing the Company to execute and deliver this Supplemental Indenture;

WHEREAS, pursuant to the terms of the Original Indenture, the Company desires to establish a new series of its Securities to be known as its 4.40% Solar Bonds, Series 2016/11-1 (the “Notes”), the form and substance of such Notes and the terms, provisions and conditions thereof to be set forth as provided in the Original Indenture and this Supplemental Indenture;

WHEREAS, the Form of Note contemplated under the terms of the Notes is to be substantially in the form hereinafter provided; and

WHEREAS, the Company has requested that the Trustee execute and deliver this Supplemental Indenture, and all requirements necessary to make (i) this Supplemental Indenture a valid instrument in accordance with its terms, and (ii) the Notes, when executed by the Company and authenticated and delivered by the Trustee, the valid obligations of the Company, in each case, have been performed, and the execution and delivery of this Supplemental Indenture have been duly authorized in all respects.

NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH, for and in consideration of the premises and the purchases of the Notes by the Holders thereof, it is mutually agreed, for the benefit of the Company and the equal and proportionate benefit of all Holders of the Notes, as follows:

 

 

Article 1
DEFINITIONS

SECTION 1.01Scope of Supplemental Indenture

.  The changes, modifications and supplements to the Original Indenture effected by this Supplemental Indenture shall be applicable only with respect to, and shall only govern the terms of (and only the rights of the Holders and the obligations of the Company with respect to), the Notes, which may be issued from time to time, and shall not apply to any other Securities that may be issued under the Original Indenture (or govern the rights of the Holders or the obligations of the Company with respect to any other such Securities) unless a supplemental indenture with respect to such other Securities specifically incorporates such changes, modifications and supplements.  The provisions of this Supplemental Indenture shall supersede any corresponding or conflicting provisions in the Original Indenture.

SECTION 1.02Definitions

.  For all purposes of the Indenture, except as otherwise expressly provided or unless the context otherwise requires:

(i)the terms defined in this Article 1 shall have the meanings assigned to them in this Article 1 and include the plural as well as the singular;

(ii)all words, terms and phrases defined in the Original Indenture (but not otherwise defined herein) shall have the same meanings as in the Original Indenture;

(iii)all other terms used herein that are defined in the Trust Indenture Act, either directly or by reference therein, shall have the meanings assigned to them in the Trust Indenture Act;

(iv)all accounting terms not otherwise defined herein shall have the meanings assigned to them in accordance with generally accepted accounting principles, and, except as otherwise herein expressly provided, the term “generally accepted accounting principles” with respect to any computation required or permitted hereunder shall mean such accounting principles as are generally accepted at the date of this instrument; and

(v)the words “herein,” “hereof” and “hereunder” and other words of similar import refer to this Supplemental Indenture as a whole and not to any particular Article, Section or other subdivision.

“Company” has the meaning set forth in the first paragraph of this Supplemental Indenture.

“Form of Note” shall mean the “Form of Note” attached hereto as Exhibit A.

“Indenture” means the Original Indenture, as originally executed and as supplemented from time to time by one or more indentures supplemental thereto, including this Supplemental Indenture, entered into pursuant to the applicable provisions of the Indenture, including, for all purposes of this instrument and any such supplemental indenture, the provisions of the Trust Indenture Act that are deemed to be a part of and govern the Original Indenture and this Supplemental Indenture.

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“Initial Notes” has the meaning specified in Section 2.03.

“Interest Payment Date” means February 15 and August 15 of each year, beginning on August 15, 2016.

“Issue Date” means, with respect to Notes owned by any Holder, the date upon which such Notes were originally issued to such Holder (or transferor of such Holder), as set forth on the Security Register.

“Note” or “Notes” has the meaning specified in the fourth paragraph of the recitals of this Supplemental Indenture, and shall include any Additional Notes issued pursuant to Section 2.03.

“Noteholder,” “Holder” or “holder” as applied to any Note, or other similar terms (but excluding the term “beneficial holder”), means any Person in whose name at the time a particular Note is registered in the Security Register.

“Original Indenture” has the meaning specified in the first paragraph of this Supplemental Indenture.

“Regular Record Date” for the interest payable on any Interest Payment Date means the fifteenth day prior to such Interest Payment Date (whether or not a Business Day).

“Stated Maturity” means, with respect to the payment of principal on the Notes, June 10, 2017.

“Supplemental Indenture” has the meaning specified in the first paragraph hereof.

Article 2
ISSUE, DESCRIPTION, EXECUTION, REGISTRATION AND EXCHANGE OF NOTES

SECTION 2.01Title and Terms

.  There is hereby established a series of Securities designated the “4.40% Solar Bonds, Series 2016/11-1”.  The aggregate principal amount of the Notes shall not be limited and shall be initially authenticated and delivered from time to time upon delivery to the Trustee of the documents required by Section 303 of the Indenture.  The Notes shall be issued only in fully registered form to each purchaser in the minimum investment amount of $1,000, with no additional limitations on increments that a purchaser may invest once such minimum investment amount has been satisfied by such purchaser.

SECTION 2.02Company Global Securities

.  The Notes initially shall be represented by one or more permanent Company Global Securities.  The Form of Note shall be substantially as set forth in Exhibit A, which is incorporated into and shall be deemed a part of this Supplemental Indenture, with such appropriate insertions, omissions, substitutions and other variations as are required or permitted by the Indenture, and may have such letters, numbers or other marks of identification and such legends or endorsements placed thereon as may be required to comply with the rules of any securities exchange or as may, consistently herewith, be determined to be necessary or appropriate by the Officers of the Company executing such Notes, as evidenced by their execution of the Notes.

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SECTION 2.03Payments 

.  The principal amount of Notes then Outstanding shall be payable at the Stated Maturity.  Interest on the Notes shall accrue at a rate of 4.40% per annum, from and including the Issue Date with respect to such Notes, or from the most recent date on which interest has been paid or duly provided for with respect to such Notes, to, but excluding, the next Interest Payment Date, until the principal thereof is paid or made available for payment.  Interest shall be payable in arrears on each Interest Payment Date, beginning on August 15, 2016, to the Persons in whose name a Note is registered on the Security Register at the Close of Business on the Regular Record Date immediately preceding the applicable Interest Payment Date.  If any Stated Maturity or Maturity of, or any other day on which a payment is due shall be a day which is not a Business Day, then such payment may be made on the next succeeding day that is a Business Day with the same force and effect as if made at the Stated Maturity or Maturity or on any such other payment date, as the case may be, and no interest shall accrue on the amount payable on such date or at such time for the period from and after such Stated Maturity, Maturity or other payment date, as the case may be, to the next succeeding Business Day.  Interest will be computed on the basis of twelve 30-day months and a 360-day year. The amount of interest payable for any period shorter than a full semi-annual interest period will be computed on the basis of the number of days elapsed in a 180-day semi-annual period of six 30-day months.  Up to $90,000,000 aggregate principal amount of Notes will be authenticated on the date of this Supplemental Indenture (the “Initial Notes”).

The Company may, without the consent of the Holders of the Notes, hereafter issue additional Notes (“Additional Notes”) under the Indenture with the same terms and conditions, except for any difference in the issue price, Issue Date and interest accrued prior to the issue date of the Additional Notes, as the Initial Notes, in an unlimited aggregate principal amount.  Any such Additional Notes shall constitute a single series together with the Initial Notes for all purposes hereunder, including, without limitation, for purposes of any waivers, supplements or amendments to the Indenture requiring the approval of Holders of the Notes and any offers to purchase the Notes.  

The Company shall pay the principal of and interest on any Note in immediately available funds to the Persons in whose name such Note is registered in the Security Register, at the office or agency designated by the Company for that purpose.  All payments on the Notes will be made in US. Dollars or in such other coin or currency of the United States of America as of the time of payment is legal tender for the payment of public and private debts. 

Article 3
MISCELLANEOUS PROVISIONS

SECTION 3.01Trustee Acceptance

  The Trustee has accepted the amendment of the Original Indenture effected by this Supplemental Indenture and agrees to execute the trust created by the Original Indenture as hereby amended, but only upon the terms and conditions set forth in the Indenture, including the terms and provisions defining and limiting the liabilities and responsibilities of the Trustee, and without limiting the generality of the foregoing, the Trustee shall not be responsible in any manner whatsoever for or with respect of any of the recitals or statements contained herein, all of which recitals or statements are made solely by the Company, or for or with respect to (a) the validity or sufficiency of this Supplemental Indenture or any of 

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the terms or provisions hereof, (b) the proper authorization hereof by the Company by corporate action or otherwise, and (c) the due execution hereof by the Company.

SECTION 3.02Governing Law

.  This Supplemental Indenture and the Notes shall be governed by, and construed in accordance with, the laws of the State of New York.

SECTION 3.03Trust Indenture Act

.  This Supplemental Indenture will be subject to, and governed by, the provisions of the Trust Indenture Act that are required to be part of this Supplemental Indenture and shall, to the extent applicable, be governed by such provisions.

SECTION 3.04Execution in Counterparts

.  This Supplemental Indenture may be executed in any number of counterparts, each of which shall be an original, but such counterparts shall together constitute but one and the same instrument.

SECTION 3.05Severability

.  In case any provision in this Supplemental Indenture or in the Notes shall be invalid, illegal or unenforceable, then (to the extent permitted by law) the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby.

SECTION 3.06Appointment of Paying Agent and Security Registrar

.  The Company is hereby appointed to act as Paying Agent and Security Registrar subject to and in accordance with the terms and conditions set forth herein and in the Original Indenture and shall have all of the rights, benefits and immunities of a Paying Agent and Security Registrar as set forth herein and therein.  

SECTION 3.07Ratification of Original Indenture

.  The Original Indenture, as supplemented by this Supplemental Indenture, is in all respects ratified and confirmed, and this Supplemental Indenture shall be deemed part of the Original Indenture in the manner and to the extent herein and therein provided.  For the avoidance of doubt, each of the Company and each Holder of the Notes, by its acceptance of such Notes, acknowledges and agrees that all of the rights, privileges, protections, immunities and benefits afforded to the Trustee and the Agents under the Original Indenture are deemed to be incorporated herein, and shall be enforceable by the Trustee and the Agents hereunder, as if set forth herein in full.

U.S. Bank National Association hereby accepts the trusts in this Supplemental Indenture declared and provided, upon the terms and conditions herein above set forth.

[Remainder of the page intentionally left blank]

 

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

		
	
 

SOLARCITY CORPORATION

	
 
	
 

	
By:
	
/s/ Tanguy Serra

	
 
	
Name: Tanguy Serra

	
 
	
Title: Chief Financial Officer

 

		
	
U.S. BANK NATIONAL ASSOCIATION, as Trustee

	
 
	
 

	
By:
	
/s/ K. Wendy Kumar

	
 
	
Name: K. Wendy Kumar

	
 
	
Title: Vice President

 

 

 

 

 

Exhibit A

Form of Note

 

 

 

 

NOTE

 

SOLARCITY CORPORATION
    4.40% Solar Bonds, Series 2016/11-1

			
	
 
	
 
	
 

	
No. [  ]
	
 
	
 

 

SolarCity Corporation, a Delaware corporation (herein called the “Company,” which term includes any successor Person under the Indenture referred to on the reverse hereof), for value received hereby promises to pay to each of the Holders listed on Schedule A hereto, or their registered assigns, the principal sum set forth next to such Holder’s name on Schedule A (the aggregate of which principal sums shall not exceed $90,000,000), on June 10, 2017 at the office or agency of the Company maintained for that purpose in accordance with the terms of the Indenture, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest, semiannually, on February 15 and August 15 of each year (each, an “Interest Payment Date”), commencing on the Issue Date set forth set forth next to such Holder’s name on Schedule A, on said principal sum at said office or agency, in like coin or currency, at the rate per annum of 4.40%, from and including the most recent Interest Payment Date in respect of which interest has been paid (or commencing on the Issue Date set forth set forth next to such Holder’s name on Schedule A if no interest has been paid hereon).  If any Stated Maturity or Maturity of, or any other day on which a payment is due shall be a day which is not a Business Day, then such payment may be made on the next succeeding day that is a Business Day with the same force and effect as if made at the Stated Maturity or Maturity or on any such other payment date, as the case may be, and no interest shall accrue on the amount payable on such date or at such time for the period from and after such Stated Maturity, Maturity or other payment date, as the case may be, to the next succeeding Business Day.  Interest will be computed on the basis of twelve 30-day months and a 360-day year. The amount of interest payable for any period shorter than a full semi-annual interest period will be computed on the basis of the number of days elapsed in a 180-day semi-annual period of six 30-day months.

Reference is made to the further provisions of this Note set forth on the reverse hereof.  Such further provisions shall for all purposes have the same effect as though fully set forth at this place.

This Note shall not be valid or become obligatory for any purpose until the certificate of authentication hereon shall have been manually signed by the Trustee or other duly authorized Authenticating Agent under the Indenture.

 

A-1

 

 

IN WITNESS WHEREOF, the Company has caused this Note to be duly executed.

Dated: [  ]

				
	
 
	
 
	
SOLARCITY CORPORATION

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
By:
	
 

	
 
	
 
	
 
	
Name: 

	
 
	
 
	
 
	
Title: 

 

 

			
	
ATTEST:
	
 

	
 
	
 

	
 
	
 

	
By
	
 
	
 

	
 
	
Name: 
	
 

	
 
	
Title:  
	
 

 

 

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TRUSTEE’S CERTIFICATE OF AUTHENTICATION

This is one of the Notes referred to in the within-mentioned Indenture. 

U.S. BANK NATIONAL ASSOCIATION 
as Trustee

			
	
By:
	
 
	
 

	
 
	
Authorized Signatory 
	
 

 

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REVERSE OF NOTE
SOLARCITY CORPORATION
4.40% Solar Bonds, Series 2016/11-1

This note is one of a duly authorized issue of notes of the Company, designated as its “4.40% Solar Bonds, Series 2016/11-1” (herein called the “Notes”), issued under and pursuant to an Indenture, dated as of October 15, 2014 (the “Original Indenture”), between the Company and U.S. Bank National Association, as trustee (in such capacity, the “Trustee”), as supplemented with respect to the Notes by the One Hundred-and-Eightieth Supplemental Indenture, dated as of June 10, 2016 (the “Supplemental Indenture,” and together with the Original Indenture, the “Indenture”), between the Company, as issuer, paying agent and security registrar (herein called the “ Paying Agent and Security Registrar”), and the Trustee, as trustee, and as the authenticating agent (herein called the “Authenticating Agent”), to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, Authenticating Agent, Paying Agent, Security Registrar, the Company and the Holders of the Notes.  Capitalized terms used but not otherwise defined in this Note shall have the respective meanings ascribed thereto in the Indenture.

If an Event of Default (other than an Event of Default specified in clauses (4), (5) or (6) of Section 501 of the Indenture) occurs and is continuing with respect to the Notes, then the Trustee, or the Holders of not less than 25% in aggregate principal amount of the Notes may declare the principal of all the Notes, and accrued and unpaid interest, if any, and premium, if any, thereon to be due and payable immediately.  If an Event of Default specified in clauses (4), (5) or (6) of Section 501 occurs, then the principal and accrued and unpaid interest, if any, and premium, if any, on all the Notes shall ipso facto become and be immediately due and payable without any declaration or other act on the part of the Trustee or any Holder of the Notes. 

Subject to the provisions of the Indenture, the Holders of not less than a majority in aggregate principal amount of the Notes at the time Outstanding may, on behalf of the Holders of all of the Notes, waive any past default or Event of Default, subject to exceptions set forth in the Indenture.  Upon any such waiver, said default shall for all purposes of this Note and the Indenture be deemed to have been cured and not to be continuing, but no such waiver shall extend to any subsequent or other default or impair any right consequent thereon.

The Indenture contains provisions permitting the Company and the Trustee, with the consent of the Holders of not less than a majority in aggregate principal amount of the Notes at the time Outstanding, to execute supplemental indentures to modify provisions of the Indenture, subject to exceptions permitting the modification of the Indenture without the consent of any Holder of Notes or requiring the consent of each Holder of a Note affected by such modification all as set forth in the Indenture.

The Notes are issuable in fully registered form, without coupons, in the minimum investment amount of $1,000, with no additional limitations on incremental investments a Holder may make in the Notes once such minimum investment amount has been satisfied by such Holder.  The Notes may be exchanged for a like aggregate principal amount of Notes of any 

A-4

 

other authorized denominations, on the terms and subject to the conditions and limitations set forth in the Indenture.

The Company, the Trustee, Authenticating Agent, Paying Agent and Security Registrar may deem the Persons in whose name this Note shall be registered upon the Security Register to be, and may treat them as, the absolute owners of this Note with respect to the principal sum set forth opposite such Person’s name on Schedule A hereto (whether or not amounts under this Note shall be overdue and notwithstanding any notation of ownership or other writing thereon made by any Person other than the Company or any Security Registrar), for the purpose of receiving payment of or on account of the principal of, and interest on this Note and for all other purposes; and neither the Company or the Trustee nor any Authenticating Agent, Paying Agent or any Security Registrar shall be affected by any notice to the contrary.  All such payments so made to any Holders for the time being, or upon their orders, shall be valid, and, to the extent of the sum or sums so paid, effectual to satisfy and discharge the liability for monies payable upon this Note.

No recourse for the payment of the principal of or interest on this Note, or for any claim based hereon or otherwise in respect hereof, and no recourse under or upon any obligation, covenant or agreement of the Company in the Indenture or any supplemental indenture or in any Note, or because of the creation of any indebtedness represented hereby, shall be had against any incorporator, stockholder, partner, member, manager, employee, agent, officer, director or subsidiary, as such, past, present or future, of the Company or any of the Company’s subsidiaries or of any successor thereto, either directly or through the Company or any of the Company’s subsidiaries or of any successor thereto, whether by virtue of any constitution, statute or rule of law, or by the enforcement of any assessment or penalty or otherwise; it being expressly understood that all such liability is hereby expressly waived and released as a condition of, and as consideration for, the execution of the Indenture and the issue of this Note.

In the case of any conflict between the provisions of this Note and the Indenture, the provisions of the Indenture shall control. The Indenture and this Note shall be governed by, and construed in accordance with, the laws of the State of New York.

A-5

 

Schedule A

 

SOLARCITY CORPORATION
4.40% Solar Bonds, Series 2016/11-1

 

			
	
Name of Holder
	
Principal Amount
	
Issue Date 

	
 
	
 
	
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aggregate Principal Amount Outstanding:

 

 

 

 

A-6

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