Document:

EX-10.22

 Exhibit 10.22 

TRANSUNION 
 2015
EMPLOYEE STOCK PURCHASE PLAN 
 ARTICLE I – PURPOSE 

 

	1.01	Purpose. 

 The purpose of the Plan is to provide a means by which Eligible Employees
can share in the Company’s future success by acquiring shares of Common Stock. It is the Company’s intention to have the Plan qualify as an “employee stock purchase plan” under Section 423 of the Code. Accordingly, the
provisions of the Plan shall be administered in a manner that is consistent with the requirements of Section 423 of the Code. 

ARTICLE II – DEFINITIONS 
  

	2.01	Affiliate. 

 “Affiliate” means any parent corporation or subsidiary
corporation of the Company (as determined in accordance with Section 424 of the Code). 
  

	2.02	Base Compensation. 

 “Base Compensation” means regular base straight-time
gross earnings annualized as of the relevant Offering Commencement Date, excluding (i) payments, if any, for overtime, incentive compensation, commissions, incentive payments, premiums, bonuses, stock or other equity-based compensation, and
(ii) any other special remuneration of a Participant during an Offering Period. Notwithstanding the foregoing, the Plan Administrator may, in its discretion, on a uniform and nondiscriminatory basis, establish a different definition of
“Base Compensation” for a subsequent Offering Period prior to the Offering Commencement Date of such subsequent Offering Period. 
  

	2.03	Board. 

 “Board” means the Board of Directors of the Company. 

 

	2.04	Change in Control. 

 “Change in Control” has the meaning set forth in the
Company’s 2015 Omnibus Incentive Plan, as amended from time to time, or any successor plan thereto. 
  

	2.05	Code. 

 “Code” means the Internal Revenue Code of 1986, as amended, and
any successor thereto. Reference in the Plan to any section of the Code shall be deemed to include any regulations or other interpretive guidance under such section, and any amendments or successor provisions to such section, regulations or
guidance. 
  

	2.06	Common Stock. 

 “Common Stock” means the common stock, par value $0.01 per
share, of the Company (and any stock or other securities into which such Common Stock may be converted or into which it may be exchanged). 

	2.07	Company. 

 “Company” means TransUnion, a Delaware corporation. 

 

	2.08	Eligible Employees. 

 “Eligible Employees” means, subject to the
limitations set forth in Section 4.02, any individual employed by the Company or an Affiliate who has completed at least six (6) months of service with the Company or an Affiliate, except (i) employees who are not employed by the Company or an
Affiliate prior to the beginning of an Offering Period or prior to such other time period specified by the Plan Administrator, (ii) individuals who provide services to the Company or any of its Affiliates as independent contractors who are
reclassified as common law employees for any reason except for federal income and employment tax purposes, and (iii) employees who reside in countries for whom such employees’ participation in the Plan would result in a violation under any
corporate or securities laws of such country of residence. 
  

	2.09	Exchange Act. 

 “Exchange Act” means the Securities Exchange Act of 1934,
as amended, and any successor thereto. Reference in the Plan to any section (or rule promulgated under) the Exchange Act shall be deemed to include any rules, regulations or other interpretive guidance under such section or rule, and any amendments
or successor provisions to such section, rules, regulations or other interpretive guidance. 
  

	2.10	Fair Market Value. 

 “Fair Market Value” means, on a given date,
(i) if the Common Stock is listed on a national securities exchange, the closing sales price of the Common Stock reported on the primary exchange on which the Common Stock is listed and traded on such date, or, if there are no such sales on
that date, then on the last preceding date on which such sales were reported, (ii) if the Common Stock is not listed on any national securities exchange but is quoted in an inter-dealer quotation system on a last sale basis, the average between
the closing bid price and ask price reported on such date, or, if there is no such sale on that date, then on the last preceding date on which a sale was reported, or (iii) if the Common Stock is not listed on a national securities exchange or
quoted in an inter-dealer quotation system on a last sale basis, the amount determined by the Plan Administrator in good faith to be the fair market value of the Common Stock. 

 

	2.11	New Purchase Date. 

 “New Purchase Date” means a new Purchase Date, as
designated by the Plan Administrator, if the Plan Administrator shortens any Offering Period then in progress. 
  

	2.12	Notice Period. 

 “Notice Period” means (i) the two (2) year
period following the Offering Commencement Date relating to the applicable shares of Common Stock, or (ii) the one (1) year period following the Purchase Date related to the applicable shares of Common Stock that were purchased. 

  
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	2.13	Offering Commencement Date. 

 “Offering Commencement Date” means the first
day of each Offering Period. 
  

	2.14	Offering End Date. 

 “Offering End Date” means the last day of each
Offering Period. 
  

	2.15	Offering Period. 

 “Offering Period” means a six (6) month period
established by the Plan Administrator in accordance with Section 5.01. 
  

	2.16	Participant. 

 “Participant” means, with respect to an Offering Period, an
Eligible Employee who is participating in such Offering Period, as provided in Section 4.01. 
  

	2.17	Plan. 

 “Plan” means this TransUnion 2015 Employee Stock Purchase Plan, as
may be amended from time to time. 
  

	2.18	Plan Administrator. 

 “Plan Administrator” means two or more individuals
appointed by the Board to administer the Plan; provided, that notwithstanding appointment of a Plan Administrator, the Board may take any action permitted to be exercised by the Plan Administrator under the Plan in accordance with
Section 10.01 hereof. 
  

	2.19	Purchase Date. 

 “Purchase Date” means with respect to any Offering
Period, the Offering End Date associated with such Offering Period (or such other date established by the Plan Administrator prior to the applicable Offering Commencement Date or pursuant to Section 9.02); provided, however, if
any such date is not a Trading Day, the Purchase Date shall be the next business day that is a Trading Day. 
  

	2.20	Purchase Price. 

 “Purchase Price” means an amount per share of Common
Stock, or methodology for determination of calculating an amount per share of Common Stock, as determined by the Plan Administrator not less than thirty (30) days prior to the commencement of any Offering Period, which shall in no event be less than
the lesser of eighty-five percent (85%) of the Fair Market Value of such Common Stock on either of (i) the Offering Commencement Date of such Offering Period, or (ii) the Purchase Date (or New Purchase Date, as applicable) for such
Offering Period. 
  

	2.21	Reserves. 

 “Reserves” has the meaning set forth in Section 9.01.

  
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	2.22	Rule 16b-3. 

 “Rule 16b-3” has the meaning set forth in
Section 10.01. 
  

	2.23	Securities Act. 

 “Securities Act” means the Securities Act of 1933, as
amended, and any successor thereto. Reference in the Plan to any section (or rule promulgated under) the Securities Act shall be deemed to include any rules, regulations or other interpretive guidance under such section or rule, and any amendments
or successor provisions to such section, rules, regulations or other interpretive guidance. 
  

	2.24	Subscription. 

 “Subscription” means an Eligible Employee’s
authorization for payment to be made by the Eligible Employee for Common Stock purchases under this Plan in the form and manner specified by the Plan Administrator (which may include enrollment by submitting forms, by voice response, internet access
or other electronic means). 
  

	2.25	Trading Day. 

 “Trading Day” means a day on which the national stock
exchange upon which the Common Stock is listed is open for trading. 
 ARTICLE III – SHARES OF COMMON STOCK 

 

	3.01	Shares of Common Stock Reserved For the Plan. 

 (a) Subject to
adjustment upon changes in capitalization of the Company as provided in Section 9.01, the maximum number of shares of Common Stock which may be issued under the Plan shall be 2,400,000. 

(b) In connection with each Offering Period, the Plan Administrator may specify a maximum number of shares of Common Stock that may be
purchased by any Participant on any Purchase Date during such Offering Period, and/or all Participants on any Purchase Date during such Offering Period. If the total number of shares of Common Stock to be issued on any Purchase Date exceeds the
maximum number of shares of Common Stock available for issuance under the Plan, the Company shall (i) make a pro-rata allocation of the shares of Common Stock available for delivery and distribution in as nearly a uniform manner as shall be
practicable and the Plan Administrator determines to be equitable, (ii) return the balance of payroll deductions credited to the account of each Participant under the Plan as promptly as practicable, and (iii) have the discretion to
terminate any or all Offering Periods then in effect pursuant to Section 5.01(a). If any rights granted under the Plan terminate for any reason without having been exercised, the shares of Common Stock not purchased under such rights shall
again become available for issuance under the Plan. 
  

	3.02	Participant’s Interest in Rights to Purchase Common Stock. 

(a) Until the applicable shares of Common Stock are issued (as evidenced by the appropriate entry on the books of the Company), a Participant
shall only have the rights of an unsecured creditor with respect to such shares of Common Stock, and no right to vote or receive dividends or any other rights as a stockholder shall exist with respect to such shares of Common Stock. 

(b) The Participant shall have no interest in the shares of Common Stock covered by a right to purchase such shares of Common Stock under the
Plan until such right has been exercised. 

  
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 ARTICLE IV – ELIGIBILITY AND PARTICIPATION 

 

	4.01	Enrollment and Participation. 

 (a) Any individual who, on the day
preceding an Offering Commencement Date, qualifies as an Eligible Employee may elect to become a Participant in the Plan for such Offering Period by submitting a Subscription, in the form prescribed for this purpose by the Company (including, if
requested by the Company, a payroll deduction authorization form). The Subscription shall be filed with the Company in accordance with the procedures as established by the Company. Eligible Employees may not have more than one (1) Subscription
in effect with respect to any Offering Period. 
 (b) Once enrolled in the Plan, a Participant shall continue to participate in the Plan
until such Participant ceases to be an Eligible Employee or withdraws from the Offering Period or the Plan in accordance with Section 6.03. Under the foregoing automatic enrollment provisions, payroll deductions will continue at the level in
effect immediately prior to any new Offering Commencement Date, unless changed in advance by the Participant in accordance with Section 6.03. A Participant who withdraws from the Plan in accordance with Section 6.03 may again become a
Participant if such person is then an Eligible Employee, by following the procedure described in Section 4.01(a). 
  

	4.02	Limitations on Participation. 

 Notwithstanding any provisions of the Plan to the
contrary, no Eligible Employee shall be granted a right to purchase shares of Common Stock pursuant to the Plan: 
 (a) if, immediately
after the option is granted, such Eligible Employee owns shares of Common Stock possessing five percent (5%) or more of the total combined voting power or value of all classes of Common Stock (for purposes of this Section 4.02(a), the
rules of Section 424 of the Code shall apply in determining stock ownership of any Eligible Employee), pursuant to the requirements of Section 423(b)(3) of the Code. 

(b) which permits such Eligible Employee to purchase shares of Common Stock under all employee stock purchase plans of the Company and its
Affiliates that shall accrue at a rate which exceeds $25,000 in Fair Market Value of the Common Stock (determined at the time such right to purchase Common Stock is granted) for each calendar year in which such right is outstanding, pursuant to the
requirements of Section 423(b)(8) of the Code. When applying the limitations of this Section 4.02(b), the right to purchase Common Stock under an option accrues when the option (or any portion thereof) first becomes exercisable during the
calendar year, the right to purchase Common Stock under an option accrues at the rate provided in the option, but in no case may such rate exceed $25,000 of Fair Market Value of such Common Stock (determined at the time such option is granted) for
any one (1) calendar year, and a right to purchase Common Stock which has accrued under one option granted pursuant to the Plan may not be carried over to any other option to purchase Common Stock. 

ARTICLE V – OFFERING PERIODS 
  

	5.01	Offering Periods. 

 (a) The Plan shall be implemented by consecutive
Offering Periods with new Offering Commencement Dates commencing on the first Trading Day on or after January 1 and July 1 of each year (or at such other times as may be determined by the Plan Administrator). Each Offering Period shall
comply with the requirements of Section 423(b)(5) of the Code. The Plan Administrator shall have the power to terminate or change the duration and/or frequency of the Offering Periods (including the Offering Commencement Date) with respect to
future Offering Periods without shareholder approval. Any such changes shall be announced prior to the scheduled beginning of the affected Offering Period. 

(b) A Subscription that is in effect on an Offering End Date will automatically be deemed to be a Subscription for the Offering Period that
commences immediately following such Offering End Date, provided that the Participant is still an Eligible Employee and has not withdrawn such Participant’s Subscription in accordance with Section 6.03. Payroll deductions will continue at
the level in effect immediately prior to the new Offering Commencement Date, unless changed in advance by the Participant in accordance with Section 6.03. 

  
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	5.02	Grant of Option. 

 On each Offering Commencement Date, each Participant shall be
automatically granted an option to purchase as many shares of Common Stock (rounded down to the nearest whole share of Common Stock) as may be purchased with such Participant’s payroll deductions during the related Offering Period at the
Purchase Price, subject to the limitations set forth in Sections 3.01 and 4.02. 
 ARTICLE VI – PAYROLL DEDUCTIONS 

 

	6.01	Amount of Payroll Deductions. 

 An Eligible Employee’s Subscription shall
authorize payroll deductions at a rate, in whole percentages, of no less than one percent (1%) and no more than fifteen percent (15%), as elected by the Participant, of such Participant’s Base Compensation on each payroll date that the
Subscription is in effect. Payroll deductions shall commence on the first payroll date following the Offering Commencement Date and shall continue until the Participant changes the rate of such Participant’s payroll deductions or terminates
such Participant’s participation in the Plan, in each case, as provided in Section 6.03. 
  

	6.02	Participant’s Account. 

 All payroll deductions made with respect to a
Participant shall be credited to such Participant’s recordkeeping account under the Plan. A Participant may not make any separate cash payment into such account. No interest shall accrue or be paid on any amount withheld from a
Participant’s pay under the Plan or credited to the Participant’s account, unless required by law. Except as provided in this Section 6.02, all amounts in a Participant’s account shall be used to purchase whole shares of Common
Stock and no cash refunds shall be made from such account. Any amounts that are insufficient to purchase whole shares shall be credited to the Participant’s account, and added to any fractional amounts resulting on subsequent Purchase Dates.
Upon liquidation or other closing of a Participant’s account, any fractional amounts shall be paid in cash to the Participant based on the then-current Fair Market Value of the Common Stock. In addition, any amounts that are withheld but unable
to be applied to the purchase of Common Stock because of the limitations of Section 4.02 shall be returned to the Participant without interest and shall not be used to purchase shares of Common Stock with respect to any other Offering Period
under the Plan. 
  

	6.03	No Changes in Payroll Deductions; Termination of Subscription. 

 (a)
Except as may be permitted by the Plan Administrator in its sole discretion, following the Offer Commencement Date associated with an Offering Period, a Participant may terminate such Participant’s Subscription for the Offering Period (but may
not otherwise increase or decrease such Participant’s level of elected payroll deductions under the Subscription with respect to such Offering Period). 

  
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 (b) Any termination of a Subscription shall only be deemed effective if such Subscription is
executed pursuant to procedures established by the Plan Administrator. If a Participant terminates such Participant’s Subscription with respect to an Offering Period, the accumulated payroll deductions in such Participant’s account at the
time the Subscription is withdrawn shall be paid without interest to such Participant as soon as practicable after receipt of such Participant’s notice of withdrawal and such Participant’s Subscription for the current Offering Period will
be automatically terminated, and no further contributions for the purchase of shares of Common Stock will be made during the Offering Period or subsequent Offering Periods until such Participant re-enrolls in the Plan pursuant to
Section 4.01(a). Any re-enrollment in the Plan shall be effective only at the commencement of a subsequent Offering Period. 

ARTICLE VII – TERMINATION OF EMPLOYMENT 
  

	7.01	Termination of Employment. 

 Termination of a Participant’s employment for any
reason, including retirement, death or the failure of such Participant to remain an Eligible Employee of the Company or its Affiliates, shall immediately terminate such Participant’s participation in the Plan. In such event, the accumulated
payroll deductions in such Participant’s account at the termination of such Participant’s employment shall be paid without interest to such Participant (or such Participant’s beneficiary) as soon as practicable after such termination
of such Participant’s employment and such Participant’s Subscription for the current Offering Period will be automatically terminated, and no further contributions for the purchase of shares of Common Stock will be made during the Offering
Period or subsequent Offering Periods. For purposes of this Section 7.01, an Eligible Employee shall not be deemed to have terminated employment or failed to remain in the continuous employ of the Company or an Affiliate in the case of sick
leave, military leave, or any other leave of absence approved by the Plan Administrator; provided, however, that such leave of absence is for a period of not more than ninety (90) days or re-employment upon the expiration of such leave is
guaranteed by contract or statute. 
 ARTICLE VIII – EXERCISE OF RIGHTS TO PURCHASE COMMON STOCK 

 

	8.01	Automatic Exercise. 

 (a) Unless a Participant terminates such
Participant’s Subscription as provided in Section 6.03, a Participant’s right to purchase shares of Common Stock will be automatically exercised on each Purchase Date for the applicable Offering Period. The right to purchase shares of
Common Stock will be exercised by using the accumulated payroll deductions in such Participant’s account as of each such Purchase Date to purchase the maximum number of whole shares of Common Stock that may be purchased at the Purchase Price
(rounded down to the nearest whole share). The number of shares of Common Stock that will be purchased for each Participant on the Purchase Date shall be determined by dividing (i) such Participant’s accumulated payroll deductions in such
Participant’s account as of the Purchase Date by (ii) the Purchase Price. 
 (b) At the time an option granted under the Plan is
exercised, in whole or in part, or at the time some or all of the shares of Common Stock issued to a Participant under the Plan are disposed of, the Participant must make adequate provisions for any applicable federal, state or other tax withholding
obligations, if any, which arise upon the Purchase Date or the disposition of the shares of Common Stock. At any time, the Company or an Affiliate may, but will not be obligated to, withhold from the Participant’s compensation the amount
necessary to meet applicable withholding obligations, including any withholding required to make available to the Company any tax deductions or benefits attributable to the sale or disposition of shares of Common Stock by the Participant earlier
than as described in Section 423(a)(1) of the Code. 

  
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	8.02	Delivery of Common Stock. 

 (a) As promptly as practicable after
each Purchase Date, the number of shares of Common Stock purchased by each Participant pursuant to Section 8.01 shall be deposited into an account established in the Participant’s name with the broker designed by the Plan Administrator for
such purpose. 
 (b) Shares of Common Stock that are purchased under the Plan will be held in an account in the Participant’s name in
uncertificated form. Furthermore, shares of Common Stock to be delivered to a Participant under the Plan will be registered in the “street name” of such Participant. 

ARTICLE IX – CHANGES IN CAPITALIZATION; ADJUSTMENTS UPON CHANGE IN CONTROL 

 

	9.01	Changes in Capitalization. 

 Subject to any required action by the stockholders of
the Company, (i) the number of shares of Common Stock covered by each option under the Plan that has not yet been exercised, (ii) the number of shares of Common Stock that have been authorized for issuance under the Plan but have not yet
been placed under option (collectively, the “Reserves”), (iii) the number of shares of Common Stock set forth in Section 3.01, (iv) the Purchase Price per share, and (v) the maximum number of shares of Common
Stock that may be purchased by any Participant on any Purchase Date during an Offering Period, shall, if applicable, be proportionately adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, subdivision, combination or reclassification of the Common Stock (including any such change in the number of shares of Common Stock effected in connection with a change in domicile of the Company), or any
other increase or decrease in the number of shares of Common Stock effected without receipt of consideration by the Company, or any increase or decrease in the value of a share of Common Stock resulting from a spinoff or split-up; provided,
however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of consideration.” Such adjustment shall be made by the Plan Administrator, whose determination in that
respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of shares of stock of any class, or securities convertible into shares of stock of any class, shall affect, and no adjustment by reason
thereof shall be made with respect to, the number or price of shares of Common Stock subject to an option. 
  

	9.02	Adjustments Upon Change in Control. 

 (a) In the event of a Change
in Control, the Board may take any action it deems necessary or desirable with respect to any option or ongoing Offering Period, including, but not limited to: (i) terminating the Plan and returning all contributions made by Participants in
connection with such termination of the Plan, and (ii) establishing a New Purchase Date and providing that each outstanding option under the Plan will be assumed or an equivalent option will be substituted by the successor corporation or a
parent or subsidiary of the successor corporation. 
 (b) For purposes of this Section 9.02, an option granted under the Plan shall be
deemed to be assumed upon a change in control, without limitation, if, at the time of issuance of the stock or other consideration, each holder of an option under the Plan would be entitled to receive the same number and kind of shares of stock or
the same amount of property, cash or securities as such holder would have been entitled to receive upon the occurrence of the transaction if the holder had been, immediately prior to the transaction, the holder of the same number of shares of Common
Stock covered by the option at such time (after giving effect to any adjustments in the number of shares of Common Stock covered by the option as provided for in Section 9.01); provided, however, that if the consideration received
in the transaction is not solely common stock of the successor corporation or its parent (as 

  
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defined in Section 424(e) of the Code), the Plan Administrator may, with the consent of the successor corporation, provide for the consideration to be received upon exercise of the option to
be solely common stock of the successor corporation or its parent equal in Fair Market Value to the per share consideration received by holders of shares of Common Stock in the transaction. 

ARTICLE X – ADMINISTRATION 
  

	10.01	Appointment of Plan Administrator. 

 The Plan Administrator shall administer the
Plan. To the extent required for transactions under the Plan to qualify for the exemptions available under Rule 16b-3 promulgated under the Exchange Act (“Rule 16b-3”), all actions relating to awards to persons subject to
Section 16 of the Exchange Act shall be taken by the Board unless each person who serves on the Plan Administrator is a “non-employee director” within the meaning of Rule 16b-3 or such actions are taken by a sub-Plan Administrator of
the Plan Administrator (or the Board) comprised solely of “non-employee directors.” 
  

	10.02	Authority of Plan Administrator. 

 The Plan Administrator shall have full and
plenary authority, subject to the provisions of the Plan, to (i) promulgate such rules and regulations as it deems necessary for the proper administration of the Plan, (ii) interpret the provisions and supervise the administration of the
Plan, and (iii) take all action in connection therewith or in relation thereto as it deems advisable. All determinations by the Plan Administrator under the Plan shall, to the full extent permitted by law, be final and binding on upon all
parties. The Company shall pay all expenses incurred in the administration of the Plan. No member of the Plan Administrator shall be personally liable for any action, determination, or interpretation made in good faith with respect to the Plan, and
all members of the Plan Administrator shall be fully indemnified by the Company with respect to any such action, determination or interpretation. 

ARTICLE XI – MISCELLANEOUS 
  

	11.01	Amendment and Termination. 

 (a) The Board may at any time and for
any reason terminate the Plan. Except as provided in Article IX, no such termination of the Plan may affect options previously granted, provided that the Plan or an Offering Period may be terminated by the Plan Administrator on a Purchase Date or by
the Board’s setting a New Purchase Date with respect to an Offering Period then in progress if the Board determines that termination of the Plan and/or the Offering Period is in the best interests of the Company and the stockholders or if
continuation of the Plan and/or the Offering Period would cause the Company to incur adverse accounting charges as a result of a change after the effective date of the Plan in the generally accepted accounting principles applicable to the Plan.
Either the Board or the Plan Administrator may amend the Plan. Except as provided in Section 9.01 and in this Section 11.01, no amendment to the Plan shall make any change in any option previously granted that adversely affects the rights
of any Participant. In addition, to the extent necessary to comply with Rule 16b-3 or Section 423 of the Code (or any successor rule or provision or any applicable law or regulation), the Company shall obtain stockholder approval in such a
manner and to such a degree as so required. 
 (b) Without stockholder consent and without regard to whether any Participant’s rights
may be considered to have been adversely affected, the Board or the Plan Administrator shall be entitled to change the Offering Period, limit the frequency and/or number of changes in the amount withheld during an Offering Period, permit payroll tax
withholding in excess of the amount designated by a Participant in order to adjust for delays or mistakes in the Company’s processing of properly completed withholding 

  
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elections, establish reasonable waiting and adjustment periods and/or accounting and crediting procedures to ensure that amounts applied toward the purchase of Common Stock for each Participant
properly correspond with amounts withheld from the Participant’s compensation, and establish such other limitations or procedures as the Board or the Plan Administrator determines, in its sole discretion, are advisable and consistent with the
Plan. 
 (c) Upon termination of the Plan, the date of termination shall be considered a Purchase Date, and any cash remaining in
Participant accounts will be applied to the purchase of Common Stock, unless determined otherwise by the Board. Upon termination of the Plan, the Board shall have authority to establish administrative procedures regarding the exercise of outstanding
rights to purchase shares of Common Stock or to determine that such rights shall not be exercised. 
  

	11.02	Use of Funds. 

 All payroll deductions received or held by the Company or any
Affiliate under this Plan may be used by the Company or such Affiliate for any corporate purpose and neither the Company nor any Affiliate shall be obligated to segregate such payroll deductions. 

 

	11.03	Transferability; Notice of Disposition. 

 (a) Neither payroll
deductions credited to a Participant’s account nor any rights with regard to the exercise of a right to purchase Common Stock or to receive shares of Common Stock under the Plan may be assigned, transferred, pledged, or otherwise disposed of in
any way by the Participant other than by will or the laws of descent and distribution or as provided in Section 7.01. Any such attempted assignment, transfer, pledge, or other disposition shall be void ab initio. During a
Participant’s lifetime, rights to purchase shares of Common Stock that are held by such Participant shall be exercisable only by such Participant. 

(b) Each Participant shall notify the Company, in writing, if such Participant disposes of any of the shares of Common Stock purchased in any
Offering Period pursuant to the Plan if such disposition occurs within the Notice Period. The Company may, at any time during the Notice Period, place a legend or legends on any book entry representing shares of Common Stock acquired pursuant to the
Plan requesting that the Company’s transfer agent notify the Company of any transfer of such shares of Common Stock. The obligation of the Participant to provide such notice shall continue notwithstanding the placement of any such legend on the
book entry. 
  

	11.04	Term; Stockholder Approval of the Plan. 

 The Plan shall be effective upon its
approval by the Board and shall be approved by the stockholders of the Company, in any manner permitted by applicable corporate law, within twelve (12) months before or after the Plan is adopted by the Board. No purchase of shares of Common
Stock pursuant to the Plan shall occur prior to such stockholder approval. The Plan shall terminate on the earliest of (i) termination of the Plan by the Plan Administrator (which termination may be effected by the Board at any time),
(ii) the tenth (10th) anniversary of the approval of the Plan by the stockholders or (iii) issuance of all of the shares of Company Stock available for issuance under the Plan. 

 

	11.05	No Employment Rights; Effect of the Plan. 

 (a) The Plan does not,
directly or indirectly, create in any employee or class of employees, any right with respect to continuation of employment with the Company or any of its Affiliates, and it shall not be deemed to interfere in any way with the right of the Company or
any Affiliate employing such person to terminate, or otherwise modify, an employee’s employment at any time. 
 (b) The provisions of
the Plan shall, in accordance with its terms, be binding upon, and inure to the benefit of, all successors of each Participant, including, without limitation, such Participant’s estate and the executors, administrators or trustees thereof,
heirs and legatees, and any receiver, trustee in bankruptcy or representative of creditors of such Participant. 

  
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	11.06	Governing Law. 

 The Plan shall be governed by and construed in accordance with the
internal laws of the State of Delaware applicable to contracts made and performed wholly within the State of Delaware, without giving effect to the conflict of laws provisions thereof. 

 

	11.07	Miscellaneous. 

 (a) Notices. All notices or other
communications by a Participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person, designated by the Company for the
receipt thereof. 
 (b) Conditions Upon Issuance of Shares of Stock. Shares of Common Stock shall not be issued with respect to an
option unless the exercise of such option and the issuance and delivery of such shares of Common Stock pursuant thereto shall comply with all applicable provisions of law, including, without limitation, the Securities Act, the Exchange Act,
applicable state securities laws and the requirements of any stock exchange upon which the shares of Common Stock may then be listed, and shall be further subject to the approval of counsel for the Company with respect to such compliance. As a
condition to the exercise of an option, the Company may require the person exercising such option to represent and warrant at the time of any such exercise that the shares of Common Stock are being purchased only for investment and without any
present intention to sell or distribute such Common Stock if, in the opinion of counsel for the Company, such a representation is required by any of the aforementioned applicable provisions of law. 

  
 11Exhibit 10.32

 

FOURTEENTH AMENDMENT TO CREDIT AND SECURITY
 AGREEMENTS, WAIVER OF DEFAULT, AND CONSENT

 

THIS FOURTEENTH AMENDMENT TO CREDIT AND SECURITY AGREEMENTS, WAIVER OF DEFAULT, AND CONSENT (the “Amendment”), dated as of June 10, 2015, is entered into by and between CAPSTONE TURBINE CORPORATION, a Delaware corporation (“Company”), and WELLS FARGO BANK, NATIONAL ASSOCIATION (“Wells Fargo”).

 

RECITALS

 

A.                                    Company and Wells Fargo are parties to (i) a Credit and Security Agreement dated February 9, 2009 (as amended by that certain First Amendment to Credit and Security Agreements, dated June 9, 2009 (“First Amendment”), that certain Second Amendment to Credit and Security Agreements and Waiver of Defaults, dated November 5, 2009 (“Second Amendment”), that certain Third Amendment to Credit and Security Agreements and Waiver of Default, dated June 11, 2010 (“Third Amendment”), that certain Fourth Amendment to Credit and Security Agreements, dated June 29, 2010 (“Fourth Amendment”), that certain Fifth Amendment to Credit and Security Agreements, dated November 9, 2010 (“Fifth Amendment”), that certain Sixth Amendment to Credit and Security Agreement and Waiver of Default, dated March 23, 2011 (“Sixth Amendment”), that certain Seventh Amendment to Credit and Security Agreements and Waiver of Default, dated June 2, 2011 (“Seventh Amendment”), that certain Eighth Amendment to Credit and Security Agreements, dated September 27, 2011 (“Eighth Amendment”), that certain Ninth Amendment to Credit and Security Agreements and Waiver of Default, dated February 7, 2012 (“Ninth Amendment”), that certain Tenth Amendment to Credit and Security Agreement, dated June 11, 2012 (“Tenth Amendment”), that certain Eleventh Amendment to Credit and Security Agreement, dated June 5, 2013 (“Eleventh Amendment”), that certain Twelfth Amendment to Credit and Security Agreement, dated June 9, 2014 (“Twelfth Amendment”), and that certain Thirteenth Amendment to Credit and Security Agreement, dated November 3, 2014 (“Thirteenth Amendment”), and as further amended from time to time, the “Domestic Credit Agreement”), and (ii) a Credit and Security Agreement (Ex-Im Subfacility), dated February 9, 2009 (as amended by the First Amendment, the Second Amendment, the Third Amendment, the Fourth Amendment, the Fifth Amendment, the Sixth Amendment, the Seventh Amendment, the Eighth Amendment, the Ninth Amendment, the Tenth Amendment, the Eleventh Amendment, the Twelfth Amendment, and the Thirteenth Amendment, and as further amended from time to time, the “Ex-Im Credit Agreement”; and together with the Domestic Credit Agreement, the “Credit Agreements”).  Capitalized terms used in these recitals have the meanings given to them in the Credit Agreements unless otherwise specified.

 

B.                                    Company has requested that (i) certain amendments be made to the Credit Agreements, (ii) an Event of Default be waived, and (iii) Wells Fargo consent to the Company’s execution of a guaranty for a real property lease to be entered into by Capstone Turbine International, Inc., all of which Wells Fargo is willing to agree to pursuant to the terms and conditions set forth herein.

 

Fourteenth Amendment to Credit and Security Agreements
 WFB/Capstone Turbine Corporation

 

 

NOW, THEREFORE, in consideration of the premises and of the mutual covenants and agreements herein contained, it is agreed as follows:

 

1.                                      Amendments to Credit Agreements.  The Credit Agreements are amended as follows:

 

1.1                               Section 5.2(b) of the Credit Agreements.  Section 5.2(b) of the Credit Agreements is amended to read in its entirety as follows:

 

“(b)                           Minimum Adjusted EBITDA.  Company shall achieve Adjusted EBITDA, measured on each of the following test dates described below, for the periods specified below, of not less than the amount set forth opposite each such test date and test period (numbers appearing between “< >“ are negative):

 

	
Test Date and Test Period
    	
 
    	
Minimum Adjusted EBITDA
    	
 
    
	
Fiscal Year to Date Period ending June 30, 2015
    	
 
    	
$
    	
<7,500,000>
    	
 
    
	
Fiscal Year to Date Period ending September 30,   2015
    	
 
    	
$
    	
<10,750,000>
    	
 
    
	
Fiscal Year to Date Period ending December 31,   2015
    	
 
    	
$
    	
<13,300,000>
    	
 
    
	
Fiscal Year to Date Period ending March 31,   2016
    	
 
    	
$
    	
<14,900,000>
    	
 
    

 

1.2                               Section 5.2(c) of the Domestic Credit Agreement.  Section 5.2(c) of the Domestic Credit Agreement is amended to read in its entirety as follows:

 

“(c)                            Minimum Cash to Covenant Indebtedness Ratio.  At all times, Company shall maintain a ratio of (i) cash and Cash Equivalents of Company in which Wells Fargo has a perfected first priority security interest, to (ii) the aggregate amount of outstanding Covenant Indebtedness (as defined below), that is not less than 85%.  By way of example, if there is $10 of Covenant Indebtedness, there must be at least $8.50 of cash and Cash Equivalents in which Wells Fargo has a perfected first priority security interest.  For purposes of this paragraph, “Covenant Indebtedness” shall mean, as of any date that this minimum cash to Covenant Indebtedness ratio is determined, the then outstanding debts (consisting of the outstanding unreimbursed line balance plus unpaid accrued interest, fees, costs, and expenses), obligations and liabilities of Company to Wells Fargo under this Agreement, the other Loan Documents, and the Ex-Im Documents (including, without limitation and duplication, the L/C Amount).”

 

1.3                               Section 5.2(c) of the Ex-Im Credit Agreement.  Section 5.2(c) of the Ex-Im Credit Agreement is amended to read in its entirety as follows:

 

“(c)                            Minimum Cash to Covenant Indebtedness Ratio.  At all times, Company shall maintain a ratio of (i) cash and Cash Equivalents of Company in which Wells Fargo has a perfected first priority security interest, to (ii) the aggregate amount of outstanding Covenant Indebtedness (as defined below), that is not less than 85%.  By way of

 

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example, if there is $10 of Covenant Indebtedness, there must be at least $8.50 of cash and Cash Equivalents in which Wells Fargo has a perfected first priority security interest.  For purposes of this paragraph, “Covenant Indebtedness” shall mean, as of any date that this minimum cash to Covenant Indebtedness ratio is determined, the then outstanding debts (consisting of the outstanding unreimbursed line balance plus unpaid accrued interest, fees, costs, and expenses), obligations and liabilities of Company to Wells Fargo under this Agreement, the other Loan Documents, and the Domestic Loan Documents (including, without limitation and duplication, the L/C Amount under the Domestic Facility Agreement).”

 

1.4                               Section 5.2(d) of the Credit Agreements.  Section 5.2(d) of the Credit Agreements is amended to read in its entirety as follows:

 

“(d)                           Capital Expenditures.  Company shall not incur or contract to incur Capital Expenditures of more than (i) $2,500,000 in the aggregate during Company’s fiscal year ending March 31, 2016, and (ii) zero for each subsequent year until Company and Wells Fargo agree on limits on Capital Expenditures for subsequent periods based on Company’s projections for such periods.”

 

1.5                               Section 5.28 of the Credit Agreement.  Section 5.28 of the Credit Agreements is hereby amended to read in its entirety as follows:

 

“5.28                  Cash Collateral.  Company shall establish and maintain a pledge of cash collateral in the amount of $5,000,000 (the “Cash Collateral”), subject to the following terms and conditions:  (i) the Cash Collateral shall be held in a deposit account or securities account maintained at Wells Fargo Bank, National Association or an affiliate of Wells Fargo (the “Cash Collateral Account”); (ii) to secure the Indebtedness, Company hereby grants to Wells Fargo a security interest in all of Company’s right, title, and interest in and to the Cash Collateral, the Cash Collateral Account, all interest that accrues (if any) on the Cash Collateral, and all products and proceeds thereof, in each case whether now existing or hereafter arising; (iii) Company shall have no access to the Cash Collateral or the Cash Collateral Account (i.e., the Cash Collateral Account shall be deemed “blocked”), until this Agreement has been terminated and all Indebtedness has been paid in full or except as provided below; (iv) any interest (if any) that may accrue on the Cash Collateral shall be held in the Cash Collateral Account, and shall itself be deemed to be Cash Collateral; (v) during any Default Period, Wells Fargo may, in Wells Fargo’s sole discretion, apply all or any portion of the Cash Collateral to the Indebtedness (in any order selected by Wells Fargo); (vi) the Cash Collateral, Cash Collateral Account, all interest that accrues (if any) on the Cash Collateral, and all products and proceeds thereof shall be deemed to be “Collateral” under this Agreement and the other Loan Documents; (vii) except as provided below, Company shall not have any right to access the foregoing collateral so long as this Agreement is in effect or any Indebtedness remains outstanding, Company shall not transfer (or attempt to transfer) any such collateral to any Person, and Company shall keep such collateral free and clear of all Liens (except in favor Wells Fargo); and (viii) Company shall execute and/or deliver any instruments, documents, assignments, security agreements, control agreements, financing statements, and any other agreement that Wells Fargo may reasonably request to

 

3

 

evidence, maintain, perfect, and/or ensure the first priority of Wells Fargo’s security interest in the foregoing collateral; provided that failure to execute or deliver any such items shall not affect the foregoing grant of the security interest in the foregoing collateral, and Wells Fargo shall be deemed to have a duly perfected and first priority security interest in all such collateral at all times.  Notwithstanding any provision to the contrary herein, the Cash Collateral shall be released to Company subject to the following terms (including upon satisfaction of the following conditions precedent):  (a) Company shall deliver an Authenticated Record to Wells Fargo each time Company requests a release of the Cash Collateral, which Authenticated Record shall specify the amount of Cash Collateral to be released and the date of such release of Cash Collateral (provided that such release date shall be at least three (3) Business Days after receipt by Wells Fargo of the Authenticated Record requesting such release of Cash Collateral and not more than 10 days after receipt by Wells Fargo of the Authenticated Record); (b) no Default Period shall be existing as of the date of any release of the Cash Collateral; (c) the Cash Collateral shall be released in two tranches:  (x) the initial release of Cash Collateral shall not exceed $2,500,000, and (y) the second release of Cash Collateral shall be the remaining balance of the Cash Collateral; (d) prior to the initial release of the Cash Collateral (in an amount of up to $2,500,000 as requested by Company), Wells Fargo shall have received Company’s Quarterly Report on Form 10-Q filed with the United States Securities and Exchange Commission for two consecutive quarters ending on or after September 30, 2015, and such reports shall demonstrate that (x) Company remained in compliance with the financial covenants set forth in Section 5.2 of this Agreement at all times, and (y) Company’s Adjusted EBITDA for each such quarter was equal to or greater than $1.00; and (e) the second release of Cash Collateral (for the remaining balance of the Cash Collateral) shall occur on or after December 31, 2015, and only after each of the foregoing conditions precedent have been satisfied and, in addition, receipt by Wells Fargo of the audited financial statements of Company for a fiscal year ending on or after December 31, 2015, and confirmation by Wells Fargo that Company (x) remained in compliance with the financial covenants set forth in Section 5.2 of this Agreement at all times, and (y) Company’s Adjusted EBITDA for any such fiscal year was equal to or greater than $1.00.”

 

1.6                               Section 5.29 of the Credit Agreements.  The following new Section 5.29 is hereby added to the Credit Agreements immediately after Section 5.28 of the Credit Agreements:

 

“5.29                 Control Agreements.  Except with respect to “Excluded Accounts” (as defined below), Company shall obtain, and maintain at all times, a Control Agreement, from each bank (other than Wells Fargo), securities intermediary, and commodities intermediary maintaining a deposit account, securities account, or commodities account for Company or holding any financial assets or commodities for Company.  For purposes of this paragraph, “Excluded Accounts” means:  (i) deposit accounts and/or securities accounts of the Company that at any time have an aggregate balance of not more than $100,000, and (ii) amounts deposited into deposit accounts expressly identified by Company to Wells Fargo that are specially and exclusively used for payroll, payroll taxes and other employee wage and benefit payments to or for the employees of Company.

 

4

 

1.7                               Exhibit A to Credit Agreements.

 

(a)                                 The following defined term is hereby added to Exhibit A to the Credit Agreements in the appropriate alphabetical position:

 

“Control Agreement” means a control agreement, in form and substance reasonably satisfactory to Wells Fargo, executed and delivered by Company, Wells Fargo, and the applicable securities intermediary (with respect to a securities account), commodities intermediary (with respect to a commodities account), or bank (with respect to a deposit account).

 

(b)                                 The following defined terms that appear in Exhibit A to the Credit Agreements are amended to read in their entirety as follows:

 

“Adjusted EBITDA” means, for any period of determination, Company’s Adjusted Net Income, calculated before (in each case, to the extent included in determining net income), without duplication, (i) Interest Expense, (ii) provision for income taxes, (iii) depreciation and amortization expense, (iv) any extraordinary gains or extraordinary non-cash losses, (v) changes resulting from the valuation of goodwill and intangible assets made in accordance with FASB Accounting Standard 142, and (vi) noncash changes resulting from foreign exchange adjustments arising from a revaluation of assets subject to foreign currency revaluation.

 

“Adjusted Net Income” means, for any period of determination, the sum of (i) Company’ s Net Income, plus (ii) to the extent deducted in determining Net Income, non-cash warrant and stock-based compensation expenses, minus (iii) to the extent included in determining Net Income, non-cash warrant and stock-based compensation income.

 

1.8                               Exhibit E to the Domestic Credit Agreement.  Exhibit E to the Domestic Credit Agreement is hereby deleted and replaced with Exhibit E-1 attached to this Amendment.

 

1.9                               Exhibit E to the Ex-Im Credit Agreement.  Exhibit E to the Ex-Im Credit Agreement is hereby deleted and replaced with Exhibit E-2 attached to this Amendment.

 

2.                                      Waiver of Default.  Company is in default of the following provision of the Credit Agreements (the “Existing Default”):

 

	
Section/Covenant
    	
 
    	
Description
    
	
Section 5.2(b)
   (Minimum Adjusted Net Income)
    	
 
    	
Company breached the minimum Adjusted Net Income   covenant for the fiscal year to date period ending March 31, 2015.
    

 

Upon the terms and subject to the conditions set forth in this Amendment (including, but not limited to, the effectiveness of this Amendment in accordance with Section 6 of this Amendment), Wells Fargo hereby waives the Existing Default.  This waiver shall be effective only in this specific instance and for the specific purpose for which it is given, and this waiver shall not entitle Company to any other or further waiver in any similar or other circumstances.

 

5

 

3.                                      Consent.  Capstone Turbine International, Inc. and Company may enter into that certain Lease with Pavilion Property Trustees Limited with respect to the lease of real property  located at Unit 800, Fareham Reach, 154-156 Fareham Road, Gosport, Hampshire (the “Lease”), under which Company will need to guarantee the obligations of Capstone Turbine International, Inc. under such Lease (the “Lease Guaranty”).  Upon the terms and subject to the conditions set forth in this Amendment (including, but not limited to, the effectiveness of this Amendment in accordance with Section 6 of this Amendment), Wells Fargo hereby consents to the Lease Guaranty, notwithstanding any provision of the Credit Agreements to the contrary.

 

4.                                      No Other Changes.  Except as explicitly amended by this Amendment, all of the terms and conditions of the Credit Agreements and the other Loan Documents shall remain in full force and effect and shall apply to any advance or letter of credit thereunder.

 

5.                                      Accommodation Fee. [Intentionally omitted].

 

6.                                      Conditions Precedent.  This Amendment shall be effective when Wells Fargo shall have received an executed original of this Amendment, together with each of the following, each in substance and form acceptable to Wells Fargo in its sole discretion:

 

6.1                               A Certificate of Authority from the Company’s corporate secretary;

 

6.2                               Payment of the Accommodation Fee described in Section 5 of this Amendment;

 

6.3                               Consent and approval of this Amendment by the Export Import Bank of the United States, if required by Wells Fargo;

 

6.4                               The Acknowledgement and Agreement of Guarantor set forth at the end of this Amendment, duly executed by Guarantor;

 

6.5                               A new securities account control agreement with respect to all accounts maintained by Company at Wells Fargo Securities, LLC, duly executed by all parties thereto, and termination of any prior securities account control agreement among Wells Fargo, Company, and Wells Fargo Institutional Securities, LLC; and

 

6.6                               Such other matters as Wells Fargo may require.

 

7.                                      Representations and Warranties.  Company hereby represents and warrants to Wells Fargo as follows:

 

7.1                               Company has all requisite power and authority to execute this Amendment and any other agreements or instruments required hereunder and to perform all of its obligations hereunder, and this Amendment and all such other agreements and instruments have been duly executed and delivered by Company and constitute the legal, valid and binding obligation of Company, enforceable in accordance with their terms.

 

6

 

7.2                               The execution, delivery and performance by Company of this Amendment and any other agreements or instruments required hereunder have been duly authorized by all necessary corporate action and do not (i) require any authorization, consent or approval by any governmental department, commission, board, bureau, agency or instrumentality, domestic or foreign, (ii) violate any provision of any law, rule or regulation or of any order, writ, injunction or decree presently in effect, having applicability to Company, or the certificate of incorporation or bylaws of Company, or (iii) result in a breach of or constitute a default under any indenture or loan or credit agreement or any other agreement, lease or instrument to which Company is a party or by which it or its properties may be bound or affected.

 

7.3                               After giving effect to this Amendment, all of the representations and warranties contained in Section 4 of, and Exhibit D to, the Credit Agreements are true and correct in all material respects on and as of the date hereof as though made on and as of such date, except to the extent that such representations and warranties relate solely to an earlier date (in which case they shall continue to be true and correct as of such earlier date), provided that the Existing Default has occurred.

 

8.                                      References.  All references in the Credit Agreements to “this Agreement” shall be deemed to refer to the relevant Credit Agreement as amended hereby; and any and all references in the Security Documents to the Credit Agreements shall be deemed to refer to the relevant Credit Agreement as amended hereby.

 

9.                                      No Waiver.  Except as expressly provided in Section 2 of this Amendment, the execution of this Amendment and the acceptance of all other agreements and instruments related hereto shall not be deemed to be a waiver of any Default or Event of Default under the Credit Agreements or a waiver of any breach, default or event of default under any Security Document or other document held by Wells Fargo, whether or not known to Wells Fargo and whether or not existing on the date of this Amendment.

 

10.                               Release.  Company and the Guarantor signing the Acknowledgment and Agreement of Guarantor set forth below hereby absolutely and unconditionally release and forever discharge Wells Fargo, and any and all participants, parent corporations, subsidiary corporations, affiliated corporations, insurers, indemnitors, successors and assigns thereof, together with all of the present and former directors, officers, agents, attorneys, and employees of any of the foregoing, from any and all claims, demands or causes of action of any kind, nature or description, whether arising in law or equity or upon contract or tort or under any state or federal law or otherwise, which either Company or Guarantor has had, now has or has made claim to have against any such person for or by reason of any act, omission, matter, cause or thing whatsoever arising from the beginning of time to and including the date of this Amendment, whether such claims, demands and causes of action are matured or unmatured or known or unknown.  It is the intention of the Company and Guarantor in executing this release that the same shall be effective as a bar to each and every claim, demand and cause of action specified and in furtherance of this intention the Company and Guarantor each waives and relinquishes all rights and benefits under Section 1542 of the Civil Code of the State of California, which provides:

 

“A GENERAL RELEASE DOES NOT EXTEND TO CLAIMS WHICH THE CREDITOR DOES NOT KNOW OR SUSPECT TO EXIST IN HIS OR HER FAVOR AT THE TIME OF EXECUTING THE RELEASE, WHICH IF KNOWN BY HIM OR HER MIGHT HAVE MATERIALLY AFFECTED HIS OR HER SETTLEMENT WITH THE DEBTOR.”

 

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The parties acknowledge that each may hereafter discover facts different from or in addition to those now known or believed to be true with respect to such claims, demands, or causes of action and agree that this instrument shall be and remain effective in all respects notwithstanding any such differences or additional facts.

 

11.                               Costs and Expenses.  Company hereby reaffirms its agreement under the Credit Agreements to pay or reimburse Wells Fargo on demand for all costs and expenses incurred by Wells Fargo in connection with the Loan Documents, including, without limitation, all reasonable fees and disbursements of legal counsel.  Without limiting the generality of the foregoing, Company specifically agrees to pay all reasonable fees and disbursements of counsel to Wells Fargo for the services performed by such counsel in connection with the preparation of this Amendment and the documents and instruments incidental hereto.  Company hereby agrees that Wells Fargo may, at any time or from time to time in its sole discretion and without further authorization by Company, make a loan to Company under the Credit Agreements, or apply the proceeds of any loan, for the purpose of paying any such reasonable fees, disbursements, costs and expenses.

 

12.                               Miscellaneous.  This Amendment and the Acknowledgment and Agreement of Guarantor may be executed in any number of counterparts, each of which when so executed and delivered shall be deemed an original and all of which counterparts, taken together, shall constitute one and the same instrument.  Transmission by facsimile or “pdf” file of an executed counterpart of this Amendment shall be deemed to constitute due and sufficient delivery of such counterpart.  Any party hereto may request an original counterpart of any party delivering such electronic counterpart.  This Amendment and the rights and obligations of the parties hereto shall be construed in accordance with, and governed by, the laws of the State of California.  In the event of any conflict between this Amendment and the Credit Agreements, the terms of this Amendment shall govern.  The Export-Import Bank of the United States shall be an express intended beneficiary of this Amendment.

 

[Signatures on next page]

 

8

 

IN WITNESS WHEREOF, the parties hereto have caused this Amendment to be duly executed as of the date first above written.

 

	
 
    	
WELLS   FARGO BANK,
    
	
 
    	
NATIONAL   ASSOCIATION
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Josephine Camalian
    
	
 
    	
Print   Name: Josephine Camalian
    
	
 
    	
Title:   Authorized Signatory
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
CAPSTONE   TURBINE CORPORATION
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jayme Brooks
    
	
 
    	
Print   Name: Jayme Brooks
    
	
 
    	
Its:   Chief Financial Officer & Chief Accounting Officer
    

 

S-1

 

ACKNOWLEDGMENT AND AGREEMENT OF GUARANTOR

 

The undersigned, a guarantor of the indebtedness of Capstone Turbine Corporation (“Company”) to Wells Fargo Bank, National Association (as more fully defined in the Amendment, “Wells Fargo”), pursuant to the separate Guaranty dated February 9, 2009 (“Guaranty”), hereby (i) acknowledges receipt of the foregoing Fourteenth Amendment to Credit and Security Agreements, Waiver of Default, and Consent (“Amendment”); (ii) consents and agrees to the terms (including, without limitation, the release set forth in Section 10 of the Amendment) and execution and performance thereof; (iii) reaffirms all obligations to Wells Fargo pursuant to the terms of the Guaranty; and (iv) acknowledges that Wells Fargo may amend, restate, extend, renew or otherwise modify the Credit Agreements and any indebtedness or agreement of the Company, or enter into any agreement or extend additional or other credit accommodations, without notifying or obtaining the consent of the undersigned and without impairing the liability of the undersigned under the Guaranty for all of the Company’s present and future indebtedness to Wells Fargo.

 

 

	
 
    	
CAPSTONE   TURBINE INTERNATIONAL, INC.
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
/s/   Jayme Brooks
    
	
 
    	
Print   Name: Jayme Brooks
    
	
 
    	
Title:   Chief Financial Officer & Chief Accounting Officer
    

 

1

 

Exhibit E-1

 

Exhibit E to Credit and Security Agreement

 

COMPLIANCE CERTIFICATE

 

	
To:
    	
Wells   Fargo Bank, National Association (“Wells Fargo”)
    
	
Date:
    	
[                  ,   20  ]
    
	
Subject:
    	
Financial   Statements
    

 

In accordance with our Credit and Security Agreement dated February 9, 2009 (as amended from time to time, the “Credit Agreement”), attached are the financial statements of Capstone Turbine Corporation (the “Company”) dated [              , 200 ] (the “Reporting Date”) and the year-to-date period then ended (the “Current Financials”).  All terms used in this certificate have the meanings given in the Credit Agreement.

 

A.            Preparation and Accuracy of Financial Statements.  I certify that the Current Financials have been prepared in accordance with GAAP, subject to year-end audit adjustments, and fairly present Company’s financial condition as of the Reporting Date.

 

B.            Name of Company; Merger and Consolidation.  I certify that:

 

(Check one)

 

 ̈                                    Company has not, since the date of the Credit Agreement, changed its name or jurisdiction of organization, nor has it consolidated or merged with another Person.

 

 ̈                                    Company has, since the date of the Credit Agreement, either changed its name or jurisdiction of organization, or both, or has consolidated or merged with another Person, which change, consolidation or merger:  ̈ was consented to in advance by Wells Fargo in an Authenticated Record, and/or  ̈ is more fully described in the statement of facts attached to this Certificate.

 

C.            Events of Default.  I certify that:

 

(Check one)

 

 ̈                                    I have no knowledge of the occurrence of an Event of Default under the Credit Agreement, except as previously reported to Wells Fargo in a Record.

 

 ̈                                    I have knowledge of an Event of Default under the Credit Agreement not previously reported to Wells Fargo in a Record, as more fully described in the statement of facts attached to this Certificate, and further, I acknowledge that Wells Fargo may under the terms of the Credit Agreement impose the Default Rate at any time during the resulting Default Period.

 

 

D.            Litigation Matters.  I certify that:

 

(Check one)

 

 ̈                                    I have no knowledge of any material adverse change to the litigation exposure of Company or any of its Affiliates or of any Guarantor.

 

 ̈                                    I have knowledge of material adverse changes to the litigation exposure of Company or any of its Affiliates or of any Guarantor not previously disclosed in Exhibit D, as more fully described in the statement of facts attached to this Certificate.

 

E.            Financial Covenants.  I further certify that:

 

(Check and complete each of the following)

 

1.             Minimum Adjusted EBITDA.  Pursuant to Section 5.2(b) of the Credit Agreement, as of the Reporting Date for the period               to            , Company’s Adjusted EBITDA was $[          ], which  ̈ satisfies  ̈ does not satisfy the requirement that Adjusted EBITDA be not less than the amount required in such Section 5.2(b) of the Credit Agreement (numbers appearing between “< >“ are negative) on the Reporting Date for such period.

 

2.             Minimum Cash to Covenant Indebtedness.  Pursuant to Section 5.2(c) of the Credit Agreement, at all times, Company has  ̈ has not  ̈ been in compliance with the requirement that the ratio of (i) cash and Cash Equivalents of Company in which Wells Fargo has a perfected first priority security interest, to (ii) the aggregate amount of outstanding Covenant Indebtedness (as defined in the Credit Agreement), is not less than 85%.

 

3.             Capital Expenditures.  Pursuant to Section 5.2(d) of the Credit Agreement, for the year-to-date period ending on the Reporting Date, Company has expended or contracted to expend during the fiscal year ended                , 20   , for Capital Expenditures, $                 in the aggregate, which  ̈ satisfies  ̈ does not satisfy the requirement that such expenditures not exceed $2,500,000 in the aggregate during the fiscal year ended March 31, 20   , and zero for each subsequent fiscal year.

 

Attached are statements of all relevant facts and computations in reasonable detail sufficient to evidence Company’s compliance with the financial covenants referred to above, which computations were made in accordance with GAAP.

 

	
 
    	
Capstone Turbine   Corporation
    
	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Its:   Chief Financial Officer
    

 

3

 

Exhibit E-2

 

Exhibit E to Credit and Security Agreement (Ex-Im Subfacility)

 

COMPLIANCE CERTIFICATE

 

	
To:
    	
Wells   Fargo Bank, National Association (“Wells Fargo”)
    
	
Date:
    	
[                  ,   20  ]
    
	
Subject:
    	
Financial   Statements
    

 

In accordance with our Credit and Security Agreement (Ex-Im Subfacility) dated February 9, 2009 (as amended from time to time, the “Credit Agreement”), attached are the financial statements of Capstone Turbine Corporation (the “Company”) dated [              , 200 ] (the “Reporting Date”) and the year-to-date period then ended (the “Current Financials”).  All terms used in this certificate have the meanings given in the Credit Agreement.

 

F.            Preparation and Accuracy of Financial Statements.  I certify that the Current Financials have been prepared in accordance with GAAP, subject to year-end audit adjustments, and fairly present Company’s financial condition as of the Reporting Date.

 

G.            Name of Company; Merger and Consolidation.  I certify that:

 

(Check one)

 

 ̈                                    Company has not, since the date of the Credit Agreement, changed its name or jurisdiction of organization, nor has it consolidated or merged with another Person.

 

 ̈                                    Company has, since the date of the Credit Agreement, either changed its name or jurisdiction of organization, or both, or has consolidated or merged with another Person, which change, consolidation or merger:  ̈ was consented to in advance by Wells Fargo in an Authenticated Record, and/or  ̈ is more fully described in the statement of facts attached to this Certificate.

 

H.            Events of Default.  I certify that:

 

(Check one)

 

 ̈                                    I have no knowledge of the occurrence of an Event of Default under the Credit Agreement, except as previously reported to Wells Fargo in a Record.

 

 ̈                                    I have knowledge of an Event of Default under the Credit Agreement not previously reported to Wells Fargo in a Record, as more fully described in the statement of facts attached to this Certificate, and further, I acknowledge that Wells Fargo may under the terms of the Credit Agreement impose the Default Rate at any time during the resulting Default Period.

 

 

I.             Litigation Matters.  I certify that:

 

(Check one)

 

 ̈                                    I have no knowledge of any material adverse change to the litigation exposure of Company or any of its Affiliates or of any Guarantor.

 

 ̈                                    I have knowledge of material adverse changes to the litigation exposure of Company or any of its Affiliates or of any Guarantor not previously disclosed in Exhibit D, as more fully described in the statement of facts attached to this Certificate.

 

J.             Financial Covenants.  I further certify that:

 

(Check and complete each of the following)

 

1.             Minimum Adjusted EBITDA.  Pursuant to Section 5.2(b) of the Credit Agreement, as of the Reporting Date for the period               to            , Company’s Adjusted EBITDA was $[          ], which  ̈ satisfies  ̈ does not satisfy the requirement that Adjusted EBITDA be not less than the amount required in such Section 5.2(b) of the Credit Agreement (numbers appearing between “< >“ are negative) on the Reporting Date for such period.

 

2.             Minimum Cash to Covenant Indebtedness Ratio.  Pursuant to Section 5.2(c) of the Credit Agreement, at all times, Company has  ̈ has not  ̈ been in compliance with the requirement that the ratio of (i) cash and Cash Equivalents of Company in which Wells Fargo has a perfected first priority security interest, to (ii) the aggregate amount of outstanding Covenant Indebtedness (as defined in the Credit Agreement), is not less than 85%.

 

3.             Capital Expenditures.  Pursuant to Section 5.2(d) of the Credit Agreement, for the year-to-date period ending on the Reporting Date, Company has expended or contracted to expend during the fiscal year ended                , 20   , for Capital Expenditures, $                 in the aggregate, which  ̈ satisfies  ̈ does not satisfy the requirement that such expenditures not exceed $2,500,000 in the aggregate during the fiscal year ended March 31, 20   , and zero for each subsequent fiscal year.

 

Attached are statements of all relevant facts and computations in reasonable detail sufficient to evidence Company’s compliance with the financial covenants referred to above, which computations were made in accordance with GAAP.

 

	
 
    	
Capstone Turbine   Corporation
    
	
 
    	
 
    	
 
    
	
 
    	
By:
    	
 
    
	
 
    	
 
    	
Its:   Chief Financial Officer
    

 

5

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