Document:

EX-4.2

 Exhibit 4.2 

MERCURY GENERAL CORPORATION, 

as the Company, 
 And

 WILMINGTON TRUST, NATIONAL ASSOCIATION, 

as the Trustee 
 FIRST
SUPPLEMENTAL INDENTURE 
 DATED AS OF MARCH 8, 2017 

TO INDENTURE 
 DATED AS
OF MARCH 8, 2017 
 Relating To 

$375,000,000 4.400% Senior Notes due 2027 

 FIRST SUPPLEMENTAL INDENTURE 

FIRST SUPPLEMENTAL INDENTURE, dated as of March 8, 2017 (this “Supplemental Indenture”), between Mercury General
Corporation, a California corporation (the “Company”), and Wilmington Trust, National Association, as trustee (the “Trustee”), to the Base Indenture (as defined below). 

RECITALS 

WHEREAS, the Company has heretofore executed and delivered to the Trustee an Indenture, dated as of March 8, 2017 (the
“Base Indenture”), providing for the issuance from time to time of its senior debt securities, to be issued in one or more series as therein provided; 

WHEREAS, pursuant to the terms of the Base Indenture, the Company desires to provide for the establishment of its 4.400% Senior Notes
due 2027 (the “Notes”), the form and substance of such Notes and the terms, provisions and conditions thereof to be set forth as provided in the Base Indenture and this Supplemental Indenture (together, the
“Indenture”); 
 WHEREAS, the Company has requested that the Trustee execute and deliver this Supplemental
Indenture, and all requirements necessary to make this Supplemental Indenture a valid and legally binding instrument in accordance with its terms, to make the Notes, when executed by the Company and authenticated and delivered by the Trustee, the
valid and legally binding obligations of the Company and all acts and things necessary have been done and performed to make this Supplemental Indenture enforceable in accordance with its terms, and the execution and delivery of this Supplemental
Indenture has been duly authorized in all respects. 
 WITNESSETH: 

NOW, THEREFORE, for and in consideration of the premises contained herein, each party agrees for the benefit of the other party and for
the equal and ratable benefit of the Holders of the Notes, as follows: 
 ARTICLE ONE 

DEFINITIONS 

Section 1.01 Capitalized terms used but not defined in this Supplemental Indenture shall have the meanings ascribed to them in the
Base Indenture. 
 Section 1.02 References in this Supplemental Indenture to article and section numbers shall be deemed to be
references to article and section numbers of this Supplemental Indenture unless otherwise specified. 
 Section 1.03 For
purposes of this Supplemental Indenture and the Notes, the following terms have the meanings ascribed to them as follows: 

  
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 “Additional Notes” means any additional Notes that may be issued from time to
time pursuant to the second paragraph of Section 2.01. 
 “Base Indenture” has the meaning provided in the recitals.

 “Business Day” has the meaning provided in Section 3.02. 

“Comparable Treasury Issue” means the United States Treasury security selected by an Independent Investment Banker as having
an actual or interpolated maturity comparable to the remaining term of the Notes to be redeemed as if the Notes matured on the Par Call Date (the “Remaining Life”) that would be utilized, at the time of selection and in accordance with
customary financial practice, in pricing new issues of corporate debt securities of comparable maturity to the Remaining Life of such Notes. 

“Comparable Treasury Price” means, with respect to any redemption date, (1) the average of the Reference Treasury Dealer
Quotations for such redemption date determined by the Company, after excluding the highest and lowest of such Reference Treasury Dealer Quotations, or (2) if the Independent Investment Banker obtains fewer than four such Reference Treasury
Dealer Quotations, the average, determined by the Company, of all Reference Treasury Dealer Quotations obtained. 

“Depositary” has the meaning provided in Section 2.03. 

“Indenture” has the meaning provided in the recitals. 

“Independent Investment Banker” means one of the Reference Treasury Dealers appointed by the Company. 

“Initial Notes” means the aggregate principal amount of each series of Notes issued on the date hereof, as specified on the
first paragraph of Section 2.01. 
 “Interest Payment Date” has the meaning provided in Section 2.04. 

“Maturity Date” has the meaning provided in Section 2.02. 

“Notes” has the meaning provided in the recitals. For the avoidance of doubt, “Notes” shall include the Additional
Notes as provided herein, if any. 
 “Par Call Date” has the meaning provided in Section 3.02. 

“Principal Subsidiaries” means (1) any present or future subsidiary of the Company, the consolidated total assets or
revenues of which constitute at least 10% of the Company’s total consolidated assets or revenues; and (2) any person which is a successor, by merger or otherwise, to substantially all the business or properties of any subsidiary referred
to or described in clause (1). 
 “Record Date” has the meaning provided in Section 2.04. 

  
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 “Redemption Date” has the meaning provided in Section 3.02. 

“Redemption Notice” has the meaning provided in Section 3.03. 

“Redemption Price” means the redemption price specified in Section 3.02(a) or (b), as applicable. 

“Reference Treasury Dealer” means each of (i) Merrill Lynch, Pierce, Fenner & Smith Incorporated; and
(ii) Wells Fargo Securities, LLC, and their respective successors; and (iii) two other nationally recognized investment banking firms that are Primary Treasury Dealers specified from time to time by the Company; provided, however, that if
any of the foregoing or their successors cease to be a primary U.S. Government securities dealer (each, a “Primary Treasury Dealer”), the Company will substitute therefor another such Primary Treasury Dealer. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the
average, as determined by the Company in good faith, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Company (with a copy to the Trustee) by such
Reference Treasury Dealer at 3:30 p.m., New York City time, on the third business day preceding such redemption date. 

“Supplemental Indenture” has the meaning provided in the preamble. 

“Treasury Rate” means, with respect to any redemption date, the rate per year equal to: (1) the yield, under the heading
which represents the average for the immediately preceding week, appearing in the most recently published statistical release designated “H.15(519)” or any successor publication which is published weekly by the Board of Governors of the
Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury Constant Maturities,” for the maturity corresponding to the Comparable
Treasury Issue; provided that, if no maturity is within three months before or after the Remaining Life of the Notes to be redeemed, yields for the two published maturities most closely corresponding to the Comparable Treasury Issue shall be
determined and the Treasury Rate shall be interpolated from those yields on a straight line basis, rounding to the nearest month; or (2) if such release (or any successor release) is not published during the week preceding the calculation date
or does not contain such yields, the rate per year equal to the semi-annual equivalent yield to maturity or interpolated maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury Issue (expressed as a percentage
of its principal amount) equal to the Comparable Treasury Price for such redemption date. 
 “Trustee” has the meaning
provided in the preamble. 

  
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 ARTICLE TWO 

GENERAL TERMS AND CONDITIONS OF THE NOTES 

Section 2.01 Designation and Principal Amount. 

The Notes are hereby authorized and are designated as a Series of Securities under the Base Indenture, titled as the “4.400% Senior Notes
due 2027”, initially limited to $375,000,000 in aggregate principal amount. The Notes issued on the date hereof pursuant to the terms of the Indenture shall be in an aggregate principal amount of $375,000,000, which amount shall be set forth in
the written order of the Company for the authentication and delivery of the Notes pursuant to Section 2.3 of the Base Indenture. 
 In
addition, without the consent of the Holders of the Notes, the Company may issue Additional Notes having the same terms (except for the issue date and, in some cases, the public offering price and the first interest payment date) as, and ranking
equally and ratably with, the Notes. Any Additional Notes, will constitute a single series of Notes under the Indenture. No Additional Notes may be issued if an Event of Default under the Indenture has occurred and is continuing with respect to the
Notes. 
 Section 2.02 Maturity. 

Unless an earlier redemption has occurred, the principal amount of the Notes shall mature and be due and payable, together with any accrued
interest thereon, on March 15, 2027 (the “Maturity Date”). 
 Section 2.03 Form and Payment. 

The Notes shall be issued as global notes, in fully registered book-entry form without coupons in minimum denominations of $2,000 and integral
multiples of $1,000 in excess thereof. 
 The Notes and the Trustee’s Certificates of Authentication to be endorsed thereon are to be
substantially in the form of Exhibit A, which form is hereby incorporated in and made a part of this Supplemental Indenture. 
 The
terms and provisions contained in the Notes shall constitute, and are hereby expressly made, a part of this Supplemental Indenture, and the Company and the Trustee, by their execution and delivery of this Supplemental Indenture, expressly agree to
such terms and provisions and to be bound thereby. 
 The Company will make payments of principal and/or interest, if any, in respect of the
Notes represented by global notes by wire transfer of immediately available funds to the accounts specified by The Depository Trust Company (together with any successor thereto, the “Depositary”) or its nominee. The Company will
make all payments of principal, premium, if any, and/or interest and special interest, if any, with respect to certificated notes by wire transfer of immediately available funds to the accounts specified by the Holders of the certificated notes or,
if no such account is specified, by mailing a check to each such Holder’s registered address. 

  
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 Principal, premium, if any, and/or interest, if any, on the global notes representing the Notes
shall be made to the Depositary. 
 The global notes representing the Notes shall be deposited with, or on behalf of, the Depositary and
shall be registered in the name of the Depositary or a nominee of the Depositary. No global note may be transferred except as a whole by a nominee of the Depositary to the Depositary or to another nominee of the Depositary, or by the Depositary or
such nominee to a successor of the Depositary or a nominee of such successor. 
 If any Interest Payment Date or the Maturity Date is not a
Business Day, the related payment of principal of or interest on such series of Notes shall become due and payable on the next succeeding Business Day with the same force and effect as if made on the date such payment were due, and no interest shall
accrue on the amount payable for the period from and after such Interest Payment Date or the Maturity Date, as the case may be. Any such interest not so punctually paid or duly provided for shall forthwith cease to be payable to the Holder on such
regular Record Date and shall be paid as set forth in Section 2.13 of the Base Indenture. 
 Section 2.04 Interest.

 Interest on the Notes shall accrue at the rate of 4.400% per annum. Interest on the Notes shall accrue from September 15, 2017 or the
most recent Interest Payment Date on which interest was paid. Interest on the Notes shall be payable semi-annually in arrears on March 15 and September 15 of each year, beginning on September 15, 2017 (each an “Interest
Payment Date”), to the Holders in whose names the Notes are registered at the close of business on the preceding March 1 and September 1 (each a “Record Date”). Interest on the Notes shall be computed on the basis of a
360-day year comprised of twelve 30-day months. 
 Section 2.05 Limitation on Liens. 

So long as any Notes are outstanding, the Company will not, and will not permit any of its Principal Subsidiaries to, directly or indirectly,
use any voting stock of a Principal Subsidiary as security for any of its debt or other obligations unless the Notes are secured prior to, or to the same extent as that debt or other obligation. This restriction does not apply to liens on voting
stock existing at the time a corporation becomes the Company’s Principal Subsidiary or any renewal or extension of such existing liens and does not apply to shares of Subsidiaries that are not “Principal Subsidiaries.” 

Section 2.06 Limitation on Disposition of Stock of Principal Subsidiaries. 

The Company will not, and will not permit any of its Subsidiaries to, issue, sell, assign, transfer or otherwise dispose of, directly or
indirectly, any of the common stock of the Company’s Principal Subsidiaries (except to the Company or to one or more of the Company’s other Subsidiaries or for the purpose of qualifying directors), except for: 

 

	 	(a)	any issuance, sale, assignment, transfer or other disposition is required to comply with the order of a court or regulatory authority of competent jurisdiction, other than an order issued at the Company’s request
or at the request of one of the Company’s Subsidiaries; 

  
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	 	(b)	all of the common stock of a principal subsidiary owned by the Company or by a Principal Subsidiary sold for cash or other property having a fair market value that is at least equal to the fair market value of the
disposed stock, as determined in good faith by the Company’s board of directors; or 

  

	 	(c)	after giving effect to the issuance, sale, assignment, transfer or other disposition, the Company and its Subsidiaries would own directly or indirectly at least 80% of the issued and outstanding common stock of such
principal subsidiary and such issuance, sale, assignment, transfer or other disposition is made for consideration consisting of cash or other property which is at least equal to the fair value of such common stock. 

The Company may also merge or consolidate any Principal Subsidiary into or with another direct or indirect Subsidiary of the Company, the
shares of capital stock of which the Company owns at least 80%. 
 ARTICLE THREE 

REDEMPTION OF THE NOTES 

Section 3.01 Redemption Provisions in the Base Indenture. 

Sections 3.1, 3.2 and 3.3 of the Base Indenture shall not be applicable to the Notes and are superseded by Article III of this Supplemental
Indenture. Sections 3.4, 3.5 and 3.6 of the Base Indenture shall be applicable to the Notes. 
 Section 3.02 Optional
Redemption. 
 (a) Redemption Prior to December 15, 2026. Prior to December 15, 2026, (the date that is
three months prior to the Maturity Date of the Notes (the “Par Call Date”)), the Notes may be redeemed, in whole or in part, at the Company’s option, at any time or from time to time, on notice given not more than 60 days, nor
less than 30 days, prior to the date on which the Notes will be redeemed (the “Redemption Date”), at a price (the “Redemption Price”) equal to the greater of: 

(1) 100% of the principal amount of any Notes to be redeemed; or 

(2) the sum of the present values of the remaining scheduled payments of principal and interest on any Notes to be redeemed
(exclusive of interest accrued to the Redemption Date) discounted to the Redemption Date on a semi-annual basis (assuming a 360-day year consisting of twelve 30-day
months) at the then current Treasury Rate plus 30 basis points. 
 (b) Redemption On or After December 15, 2026. On
or after the Par Call Date, the Notes may be redeemed, in whole or in part, at the Company’s option, at any time or from time to time, on notice given not more than 60 days, nor less than 30 days, prior to the Redemption Date, at a Redemption
Price equal to 100% of the principal amount of any Notes to be redeemed. 

  
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 If the Company redeems any Notes pursuant to the foregoing paragraphs, it will pay accrued and
unpaid interest on the principal amount of any Note being redeemed to the Redemption Date. 
 (c) Calculation of the Treasury Rate.
The Treasury Rate will be calculated by the Company in good faith on the third Business Day preceding the Redemption Date. As used in the immediately preceding sentence, the term “Business Day” means any day that is not a Saturday,
Sunday or other day on which commercial banks in New York City are authorized or required by law to remain closed. 

Section 3.03 Notice of Redemption. 

At least 30 days but not more than 60 days before the Redemption Date, the Company will deliver a notice of redemption (the
“Redemption Notice”) to each Holder whose Notes are to be redeemed, in accordance with Section 10.2 of the Base Indenture, except that Redemption Notices may be given more than 60 days prior to the Redemption Date if the notice
is issued in connection with a defeasance of the Notes or a satisfaction and discharge of this Supplemental Indenture pursuant to Article VIII of the Base Indenture. 

The Redemption Notice shall identify the Notes to be redeemed and corresponding CUSIP, ISIN or Common Code numbers, as applicable, and will
state: 
 (a) The amount of the Notes to be redeemed; 

(b) the Redemption Date; 
 (c) the
Redemption Price; 
 (d) if any global note is being redeemed in part, the portion of the principal amount of such global note to be redeemed
and that, after the redemption date upon surrender of such global note, the principal amount thereof will be decreased by the portion thereof redeemed pursuant thereto; 

(e) the CUSIP number; 
 (f) the
name and address of the Paying Agent(s) to which the Notes are to be surrendered for redemption; 
 (g) that interest on Notes called for
redemption ceases to accrue on and after the Redemption Date unless the Company defaults in the deposit of the Redemption Price; 
 (h) that
Notes called for redemption must be surrendered to the Paying Agent to collect the Redemption Price; 
 (i) the paragraph of the Notes and/or
Section of the Indenture pursuant to which the Notes called for redemption are being redeemed; and 
 (j) that no representation is made as
to the correctness or accuracy of the CUSIP, ISIN or Common Code numbers, if any, listed in such notice or printed on the Notes. 

  
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 If the Company chooses to redeem less than all of the Notes, the Company will notify the Trustee
at least 60 days before giving the Redemption Notice, or such shorter period as is satisfactory to the Trustee, of the aggregate principal amount of the Notes to be redeemed and the applicable Redemption Date. If less than all of the Notes are to be
redeemed at the Company’s option, the Notes, or portions of the Notes, to be redeemed, will be selected in accordance with the procedures of the Depositary. Unless the Company defaults in the payment of the Redemption Price, interest will cease
to accrue on any Notes that have been called for redemption at the Redemption Date. 
 At the Company’s written request, the Trustee
shall give the Redemption Notice in the Company’s name and at its expense; provided, however, that the Company has delivered to the Trustee, at least 10 days prior to the Redemption Date, an Officers’ Certificate requesting
that the Trustee give such notice and setting forth the information to be stated in such notice as provided in the preceding paragraph. 

The Company will not be required (i) to issue, register the transfer of or exchange any Notes during a period beginning at the opening of
business 30 days immediately preceding the sending of a Redemption Notice of Notes selected for redemption and ending at the close of business on the day of such notice is sent (ii) to register the transfer of or exchange any Notes between a
Record Date and the related Interest Payment Date, or (iii) to register the transfer of or exchange any Notes selected, called or being called for redemption in whole or in part. 

The full defeasance and covenant defeasance provisions of the Indenture will apply to the Notes. 

ARTICLE FOUR 
 EVENTS OF
DEFAULT 
 Section 4.01 Addition of Events Constituting Events of Default. 

In addition to the Events of Default included in Section 6.1 of the Base Indenture, an “Event of Default” shall be included to
mean, with respect to the Notes, any of the following: 
 (a) if any event of default under a mortgage, indenture or instrument under which
the Company may issue, or by which the Company may secure or evidence, any indebtedness, including an event of default under any other series of the Company debt securities, whether the indebtedness now exists or is later created or incurred,
happens and consists of default in the payment of more than $25,000,000 in principal amount of indebtedness at the maturity of the indebtedness, after giving effect to any applicable grace period, or results in the indebtedness in principal amount
in excess of $25,000,000 becoming or being declared due and payable prior to the date on which it would otherwise become due and payable, and this default is not cured or the acceleration is not rescinded or annulled within a period of 30 days after
the Company received written notice; and 

  
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 (b) The Company shall fail within 60 days to pay, bond or otherwise discharge any uninsured
judgment or court order for the payment of money in excess of $25,000,000, which is not stayed on appeal or is not otherwise being appropriately contested in good faith. 

ARTICLE FIVE 

AMENDMENTS AND WAIVER 

Section 5.01 Addition of Amendments and Waivers Without Consent of Holders. 

In addition to changes to Section 9.3 of the Base Indenture, the following changes cannot be made with respect to the Notes without the
consent of the Holders of all of the Notes then outstanding: 
 (a) change the place of payment; 

(b) change in the Redemption Price; or 

(c) change in the Par Call Date to a date that is prior in time to the stated Par Call Date. 

ARTICLE SIX 
 ABOUT THE
TRUSTEE 
 Section 6.01 Replacement of Provision Regarding the Duties of the Trustee. 

With respect to the Notes, Section 7.1(e) of the Base Indenture is hereby replaced in its entirety with the following: 

(a) The Trustee may refuse to perform any duty or exercise any right or power unless it receives indemnity or security reasonably satisfactory
to it against the costs, expenses and liabilities which might be incurred by it in performing such duty or exercising such right or power. 

ARTICLE SEVEN 

MISCELLANEOUS 

Section 7.01 Application of Supplemental Indenture. 

This Supplemental Indenture shall be deemed part of the Base Indenture in the manner and to the extent herein and therein provided. 

Section 7.02 Trust Indenture Act Controls. 

If any provision hereof limits, qualifies or conflicts with the duties imposed by Sections 310 through 317 of the Trust Indenture Act, the
imposed duties shall control. 

  
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 Section 7.03 Conflict with Base Indenture. 

To the extent not expressly amended or modified by this Supplemental Indenture, the Base Indenture shall remain in full force and effect. If
any provision of this Supplemental Indenture relating to the Notes is inconsistent with any provision of the Base Indenture, the provision of this Supplemental Indenture shall control. 

Section 7.04 Notices. 

Any request, direction, instruction, demand, document, notice or communication by a party to the other parties will be made in the manner and
be effective as set forth in Section 10.2 of the Base Indenture. Notices shall be delivered as follows: 
 if to the Company: 

Mercury General Corporation 

4484 Wilshire Boulevard 
 Los
Angeles, California 90010 
 Attention: Ted Stalick 

Telephone: (323) 937-1060 

with a copy to: 

Latham & Watkins LLP 

350 South Grand Avenue 
 Los
Angeles, California 90071 
 Attention: Julian Kleindorfer 

Telephone: (213) 891-1234 

if to the Trustee: 
 Wilmington
Trust, National Association 
 Rodney Square North 

1100 North Market Street 

Wilmington, DE 19890 

Attention: Mercury General Administrator 

Telephone: (302) 636-6432 

with a copy to: 
 Covington & Burling
LLP 
 The New York Times Building 

620 Eighth Avenue 
 New York, NY
10018 
 Attention: Ronald A. Hewitt 

Telephone: (212) 841-1220 

  
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 Section 7.05 Governing Law. 

THIS SUPPLEMENTAL INDENTURE AND THE NOTES, INCLUDING ANY CLAIM OR CONTROVERSY ARISING OUT OF OR RELATING TO THIS SUPPLEMENTAL INDENTURE OR THE
NOTES, SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO CONFLICT OF LAW PRINCIPLES THAT WOULD RESULT IN THE APPLICATION OF ANY LAW OTHER THAN THE LAW OF THE STATE OF NEW YORK. 

Section 7.06 Successors. 

All agreements of the Company in the Base Indenture, this Supplemental Indenture and the Notes shall bind its successors. All agreements of
the Trustee in the Base Indenture and this Supplemental Indenture shall bind its successors. 
 Section 7.07 Waiver of Jury
Trial. 
 EACH OF THE COMPANY AND THE TRUSTEE 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 THIS INDENTURE, THE NOTES OR THE TRANSACTION CONTEMPLATED HEREBY. 

Section 7.08 Counterparts. 

This instrument may be executed in any number of counterparts, each of which so executed shall be deemed to be an original, but all such
counterparts shall together constitute but one and the same instrument. 
 Section 7.09 Trustee Disclaimer. 

The Trustee makes no representation as to the validity or sufficiency of this Supplemental Indenture other than as to the validity of its
execution and delivery by the Trustee. The recitals and statements herein are deemed to be those of the Company and not the Trustee. 

[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 as of the day and year first above written. 
  

			
	MERCURY GENERAL CORPORATION
		
	By:	 	 /s/ Gabriel Tirador

	Name: Gabriel Tirador
	Its: President and Chief Executive Officer
	
	WILMINGTON TRUST, NATIONAL ASSOCIATION, as Trustee
		
	By:	 	 /s/ W. Thomas Morris, II

	Name: W. Thomas Morris, II
	Its: Vice President

  
 [Signature Page to
Supplemental Indenture]run-ex1025_945.htm

Exhibit 10.25

EXECUTION VERSION

AMENDMENT NO. 3 TO THE CREDIT AGREEMENT

THIS AMENDMENT NO. 3 TO THE CREDIT AGREEMENT, dated December 2, 2016 (this “Amendment”), is entered into by and among SUNRUN INC., a Delaware corporation (“Sunrun”), AEE SOLAR, INC., a California corporation (“AEE Solar”), SUNRUN SOUTH LLC, a Delaware limited liability company (“Sunrun South”), and SUNRUN INSTALLATION SERVICES INC., a Delaware corporation (“Sunrun Installation Services” and, together with Sunrun, AEE Solar and Sunrun South, each, a “Borrower” and, collectively, the “Borrowers”), CLEAN ENERGY EXPERTS, LLC, a California limited liability company (“CEE” and, together with the Borrowers, each, a “Loan Party” and, collectively, the “Loan Parties”), and each of the Persons identified as a “Lender” on the signature pages hereto (each, a “Lender”) and acknowledged by CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as the Administrative Agent (the “Administrative Agent”), and SILICON VALLEY BANK, as the Collateral Agent (the “Collateral Agent”).  

RECITALS

WHEREAS, the Borrowers entered into the Credit Agreement, dated as of April 1, 2015 (as amended from time to time, the “Credit Agreement”), by and among the Borrowers, CEE, as a Guarantor, the Administrative Agent, the Lenders party thereto, Silicon Valley Bank, as the Collateral Agent, and Credit Suisse Securities (USA) LLC, as the Lead Arranger and Book Runner;

WHEREAS, pursuant to Section 11.01 of the Credit Agreement, no amendment to the Credit Agreement is effective unless executed by the Borrowers or the applicable Loan Party, as the case may be, and at least two (2) Lenders having Total Credit Exposures representing more than 50% of the Total Credit Exposures of all Lenders and acknowledged by the Administrative Agent;

WHEREAS, this Amendment is not otherwise prohibited by Section 11.01 of the Credit Agreement;

WHEREAS, the Lenders party to this Amendment (the “Required Lenders”) have Total Credit Exposures representing more than 50% of the Total Credit Exposures of all Lenders under the Credit Agreement; 

WHEREAS, the Borrowers and the Required Lenders desire to amend the Credit Agreement on the terms set forth herein; and

WHEREAS, each of the Administrative Agent and the Collateral Agent by execution of this Amendment is providing its acknowledgement required under Section 11.01 of the Credit Agreement. 

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

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

ARTICLE 1
DEFINITIONS

1.01Definitions.  Capitalized terms not otherwise defined herein shall have the meanings set forth in the Credit Agreement.

1.02Rules of Interpretation.  The rules of interpretation set forth in Section 1.02 of the Credit Agreement shall apply to this Amendment.  Solely for purposes of convenience, an amendment to an existing provision of the Credit Agreement is shown in this Amendment with the text that is deleted from the provision (indicated textually in the same manner as the following example: deleted text) and the text that is added to the provision (indicated textually in the same manner as the following example: double-underlined text).

ARTICLE 2
AMENDMENTS

2.01Amendments to Definitions.  

(a)  The “Appraisal” definition set forth in Section 1.01 of the Credit Agreement is hereby deleted in its entirety and replaced with the following text:

“Appraisal” means the appraisal acquired by the Borrowers every quarteron a semi-annual basis, which (i) is from a nationally recognized third-party appraiser that (A) is qualified to appraise independent electric generating businesses and (B) (x) has been engaged in the appraisal or business valuation and consulting business for no fewer than three (3) years or (y) is otherwise acceptable to the Collateral Agent, and (ii) (A) is approved by the applicable Tax Equity Investor and (B) shows the fair market value of new residential photovoltaic systems in each of the States of the United States in which Projects are being Tranched, in each case expressed in terms of dollars per watt of installed capacity.

(b)  Clause (a) of the “Borrowing Base” definition set forth in Section 1.01 of the Credit Agreement is hereby deleted in its entirety and replaced with the following text:

(a)the least of (i) [***] of the appraised fair market value PV System Value of Eligible Project Back-Log (net of terminated contracts, which will be calculated as reported on the monthly Borrowing Base Certificate) for Projects (less cash sale Projects accounted for in clause (e) below), (ii) [***] of Eligible Take-Out less Backlever Financing required to collateralize clause (b) and (iii) [***] of Net Retained Value; plus 

(c)  The “NYGB Borrowing Base” definition set forth in Section 1.01 of the Credit Agreement is hereby deleted in its entirety and replaced with the following text:

“NYGB Borrowing Base” means, as of any date of determination, the appraised fair market value PV System Value of the Eligible Project Back-Log attributable to [***].

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

2

 

(d)  The “PV System Value” definition set forth in Section 1.01 of the Credit Agreement is hereby deleted in its entirety and replaced with the following text:

“PV System Value” means, for PV Systems which are to be installed on residential property, the appraised value of a such PV Systems (based on the national appraisal or the state appraisals, as applicable, in each case as set forth in the most recent Appraisal).

2.02Amendment to Section 6.02.  The introductory paragraph and clause (c) of Section 6.02 of the Credit Agreement are hereby deleted in their entirety and replaced with the following text:

Deliver to the Administrative Agent for distribution to each Lender (and, in the case of Sections 6.02(c) and (m), to the Collateral Agent), in form and detail satisfactory to the Administrative Agent and the Required Lenders (and, in the case of Sections 6.02(c) and (m), the Collateral Agent):

(c)  [Reserved]Appraisals.  As soon as each Appraisal is available, a copy of each such Appraisal. 

ARTICLE 3
REPRESENTATIONS AND WARRANTIES

Each Loan Party represents and warrants to each of the Lenders and the Administrative Agent, on the date hereof, that the following statements are true and correct:

3.01Existence.  Such Loan Party is duly organized or formed, validly existing and, as applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization.

3.02Power and Authority.  Such Loan Party has the requisite power and authority to execute and deliver this Amendment.

3.03Due Authorization.  The execution, delivery and performance of this Amendment have been duly authorized by all necessary corporate or limited liability company action on the part of such Loan Party.  The applicable resolutions of such Loan Party authorize the execution, delivery and performance of this Amendment by such Loan Party and are in full force and effect without modification or amendment. 

3.04Binding Obligation.  This Amendment has been duly executed and delivered by such Loan Party, and this Amendment and the Credit Agreement, as amended by this Amendment, constitute the legally valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with the terms of this Amendment and the Credit Agreement, subject to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law.

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

3

 

3.05No Default or Event of Default.  As of the date hereof, no event has occurred and is continuing or would result from the consummation of the amendments contemplated by this Amendment that would constitute a Default or an Event of Default.

ARTICLE 4
CONDITIONS PRECEDENT

4.01Conditions Precedent to Effectiveness.  The amendments contained in Article 2 of this Amendment shall not be effective until the date (such date, the “Amendment Effective Date”) that the following conditions precedent have been satisfied or waived by the Required Lenders:

(a)  The Administrative Agent shall have received copies of this Amendment executed by the Loan Parties and the Required Lenders, and acknowledged by the Administrative Agent and the Collateral Agent.

(b)  The Borrowers shall have paid all fees, costs and expenses of the Administrative Agent, the Collateral Agent and the Lenders incurred in connection with the execution and delivery of this Amendment (including third-party fees and out-of-pocket expenses of the Lenders’ counsel and fees of the Collateral Agent’s counsel and other advisors or consultants retained by the Administrative Agent).

(c)  The Borrowers shall have delivered or caused to be delivered any other customary documents as reasonably requested by the Administrative Agent in connection with this Amendment.

ARTICLE 5
GENERAL PROVISIONS

5.01Notices.  All notices and other communications given or made pursuant hereto shall be made as provided in the Credit Agreement.

5.02Severability.  In case any one or more of the provisions contained in this Amendment should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby, and the parties hereto shall enter into good faith negotiations to replace the invalid, illegal or unenforceable provision.

5.03Headings.  Section headings have been inserted in this Amendment as a matter of convenience for reference only and it is agreed that such paragraph headings are not a part of this Amendment and shall not be used in the interpretation of any provision of this Amendment.

5.04Governing Law.  This Amendment shall be governed by and construed in accordance with the law of the State of New York.

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

4

 

5.05Counterparts.  This Amendment may be signed in any number of counterparts and each counterpart shall represent a fully executed original as if signed by all of the parties listed below.

5.06Ratification.  Except as amended hereby, the Credit Agreement and the other Loan Documents remain in full force and effect.

5.07Amended Terms.  On and after the date hereof, all references to the Credit Agreement in each of the Loan Documents shall hereafter mean the Credit Agreement as amended by this Amendment.  The execution, delivery and performance of this Amendment shall not constitute a waiver of any provision of, or operate as a waiver of any right, power or remedy of the Lenders, the Administrative Agent, the Collateral Agent or the Arranger under, the Credit Agreement or any other Loan Document.  Nothing contained in this Amendment shall be construed as a substitution or novation of the obligations of the Loan Parties outstanding under the Credit Agreement or instruments securing the same, which obligations shall remain in full force and effect, except to the extent that the terms thereof are modified by this Amendment.  Nothing expressed or implied in this Amendment shall be construed as a release or other discharge of the Loan Parties from any of their obligations or liabilities under the Credit Agreement or any other Loan Document.

5.08Loan Document.  This Amendment shall constitute a Loan Document under the terms of the Credit Agreement.

5.09Costs and Expenses; Indemnification; Reimbursement.  The parties hereto agree that this Amendment is subject to the costs and expenses, indemnification, reimbursement and related provisions set forth in Section 11.04 of the Credit Agreement. 

5.10Submission to Jurisdiction; Waiver of Venue; Service of Process; Waiver of Jury Trial.  The submission to jurisdiction, waiver of venue, service of process and waiver of jury trial provisions set forth in Sections 11.14(b), (c) and (d) and 11.15 of the Credit Agreement, respectively, are hereby incorporated by reference, mutatis mutandis.

[SIGNATURE PAGES FOLLOW]

 

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

5

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first set forth above.

 

	
BORROWERS:
	
SUNRUN INC., 
a Delaware corporation

	
 
	
 

	
 
	
By:
	
/s/ Bob Komin

	
 
	
Name:  Bob Komin

	
 
	
Title:  CFO

	
 
	
 

	
 
	
 

	
 
	
AEE SOLAR, INC., 
a California corporation

	
 
	
 
	
 

	
 
	
By:
	
/s/ Bob Komin

	
 
	
Name:  Bob Komin

	
 
	
Title:  CFO

	
 
	
 

	
 
	
 

	
 
	
SUNRUN SOUTH LLC, 
a Delaware limited liability company

	
 
	
 
	
 

	
 
	
By:
	
/s/ Bob Komin

	
 
	
Name:  Bob Komin

	
 
	
Title:  CFO

	
 
	
 

	
 
	
 

	
 
	
SUNRUN INSTALLATION SERVICES INC., 
a Delaware corporation

	
 
	
 
	
 

	
 
	
By:
	
/s/ Bob Komin

	
 
	
Name:  Bob Komin

	
 
	
Title:  CFO

	
 
	
 

	
 
	
 

	
GUARANTOR:
	
CLEAN ENERGY EXPERTS, LLC, 
a California limited liability company

	
 
	
 
	
 

	
 
	
By:
	
/s/ Mina Kim

	
 
	
Name: Mina Kim

	
 
	
Title: General Counsel

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

[Signature Page to Amendment No. 3 – Credit Agreement]

 

 

	
 
	
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, 

as Administrative Agent and Lender

	
 
	
 
	
 

	
 
	
By:
	
/s/ William O’Daly

	
 
	
Name: William O’Daly

	
 
	
Title: Authorized Signatory

	
 
	
 

	
 
	
By:
	
/s/ Karim Rhimtoola

	
 
	
Name: Karim Rahimtoola

	
 
	
Title: Authorized Signatory

 

 

 

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

[Signature Page to Amendment No. 3 – Credit Agreement]

 

 

	
 
	
MORGAN STANLEY SENIOR FUNDING INC., 

as Lender

	
 
	
 
	
 

	
 
	
By:
	
/s/ Patrick Layton

	
 
	
Name: Patrick Layton

	
 
	
Title: Vice President

 

 

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

[Signature Page to Amendment No. 3 – Credit Agreement]

 

 

	
 
	
GOLDMAN SACHS BANK USA, 

as Lender

	
 
	
 
	
 

	
 
	
By:
	
/s/ David M. Cirigliano

	
 
	
Name: David M Cirigliano

	
 
	
Title: Authorized Signatory

 

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

[Signature Page to Amendment No. 3 – Credit Agreement]

 

 

	
 
	
ROYAL BANK OF CANADA,

as Lender

	
 
	
 
	
 

	
 
	
By:
	
/s/ Frank Lambrinos

	
 
	
Name: Frank Lambrinos

	
 
	
Title: Authorized Signatory

 

 

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

[Signature Page to Amendment No. 3 – Credit Agreement]

 

 

	
 
	
KEYBANK NATIONAL ASSOCIATION,

as Lender

	
 
	
 
	
 

	
 
	
By:
	
/s/ Richard Gerling

	
 
	
Name: Richard Gerling

	
 
	
Title: Senior Vice President

 

 

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

[Signature Page to Amendment No. 3 – Credit Agreement]

 

 

	
 
	
SILICON VALLEY BANK,

as Collateral Agent and Lender

	
 
	
 
	
 

	
 
	
By:
	
/s/ Vince Wilton

	
 
	
Name:Vince Wilton

	
 
	
Title: VP

 

 

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

[Signature Page to Amendment No. 3 – Credit Agreement]

 

 

	
 
	
NY GREEN BANK,

a division of the New York State Energy Research & Development Authority, 

as Lender

	
 
	
 
	
 

	
 
	
By:
	
/s/ Alfred Griffin

	
 
	
Name: Alfred Griffin

	
 
	
Title: President

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

[Signature Page to Amendment No. 3 – Credit Agreement]

 

 

	
 
	
COMERICA BANK,

as Lender

	
 
	
 
	
 

	
 
	
By:
	
/s/ Robert Hernandez

	
 
	
Name: Robert Hernandez

	
 
	
Title: Senior Vice President

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

[Signature Page to Amendment No. 3 – Credit Agreement]

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