Document:

Exhibit

EXHIBIT 10.1
FORM OF LEAK-OUT AGREEMENT

Amedica Corporation
1885 West 2100 South
Salt Lake City, UT 84119
Attn: Chief Executive Officer
 
Dear Sirs:
This agreement (the “Leak-Out Agreement”) is being delivered to you in connection with that certain understanding by and among Amedica Corporation, a Delaware corporation (“the Company”) and ________________________ (“Holder”).
     The Holder holds securities of the Company (consisting exclusively of (A) shares of common stock, $0.01 par value, of the Company (the “Shares”) and other securities acquired by members of the Holder upon the purchase or exercise of any securities acquired pursuant to that certain Securities Purchase Agreement dated as of September 8, 2015 (the “SPA”) (capitalized terms not defined herein shall have the meaning as set forth in the SPA) and (B) securities issued thereunder upon the exercise of the Series A, B, C and D warrants, respectively (collectively, the “Restricted Securities”), in each case, as described on the signature page of the undersigned, Holder agrees with the Company as follows:
During the period commencing on the date hereof (“Execution Date”) and ending on the earlier of: (a) November 13, 2015, (b) the date of the stockholder meeting deadline contemplated by Section 4.17 of the SPA (c) the time of release (whether by termination of an applicable leak-out agreement or otherwise), in whole or in part, of any securities of the Company from all, or any part, of any leak-out agreement, transfer or sale restrictions set forth in any other leak-out agreement entered into or (d) any breach by the Company of any term of this Leak-Out Agreement that is not cured within 5 business days following delivery of written notice of such breach by the Holder to the Company (“Cured”), neither the Holder, nor any of its Affiliates, collectively, shall sell, on any trading day, more Shares purchased pursuant to the SPA than the greater of (x) 5,000 Shares (y) 8% of the daily average composite trading volume of the Company’s common stock as reported by Bloomberg, LP (subject to adjustment for any stock splits or combinations, stock dividends, recapitalizations or similar event after the date hereof); provided, that the foregoing restriction shall not apply to any sales of Shares occurring both (I) at a sale price at or above $0.50 and (II) at a time the last price of the Common Stock on the principal Trading Market (as reported by Bloomberg, LP) is at or above $0.50 (in each case, subject to adjustment for any stock splits or combinations, stock dividends, recapitalizations or similar event after the date hereof).  
For the purpose of this Leak-Out Agreement, the following definitions shall apply:
     “Affiliate” means, with respect to any specified Person, (x) any other Person who or which, directly or indirectly, controls, is controlled by, or is under common control with such specified Person, including, without limitation, any partner, officer, director, member of such Person and any fund now or hereafter existing that is controlled by or under common control with one or more general partners or managing members of, or shares the same management company with, such Person or (y) if such Person is a natural person, such Person’s spouse, lineal descendant (including any adopted child or adopted grandchild) or other family member, or a custodian or trustee of any trust, partnership or limited liability company for the benefit of, in whole or in part, or the ownership interests of which are, directly or indirectly, controlled by, such Person or any other member or members of such Person’s family.
“Person” means an individual, a limited liability company, a partnership, a joint venture, a corporation, a trust, an unincorporated organization, any other entity and any governmental or any department or agency thereof.
Notwithstanding anything herein to the contrary, on or after the date hereof, the Holder may, directly or indirectly, sell or transfer all, or any part, of the Restricted Securities (or any securities convertible or exercisable 

into Restricted Securities, as applicable) to any Person (an “Assignee”) without complying with (or otherwise limited by) the restrictions set forth in this Leak-Out Agreement; provided, that as a condition to any such sale or transfer (other than with respect to any Block Trade) an authorized signatory of the Company and such Assignee duly execute and deliver a leak-out agreement in the form of this Leak-Out Agreement with respect to such transferred Restricted Securities (or such securities convertible or exercisable into Restricted Securities, as applicable) (an “Assignee Agreement”) and sales of the Holder and its Affiliates and all Assignees shall be aggregated for all purposes of this Leak-Out Agreement and all Assignee Agreements.
     The Holder represents and warrants to the Subsidiary that neither the Holder, nor any of its respective Affiliates, have purchased securities of the Company from the Company other than the Restricted Securities.
     The Company further represents and warrants as of the date hereof and covenants and agrees from and after the date hereof that none of the terms offered to any Person entering into a Leak-Out agreement who is a Unit Purchaser under the SPA with respect to any consent, release, amendment, settlement or waiver of the terms, conditions or transactions herein, is or will be more favorable to such Person than those set forth in this Leak-Out Agreement or provided to any Person unless the provisions of this paragraph are complied with. If, and whenever on or after the date hereof, the Company desires to provide terms which might affect any of the actions prohibited in the immediately preceding sentence, then (i) the Company shall provide the Holder with notice thereof (x) at least two (2) business days prior to such date and (y) upon the consummation thereof the terms and conditions of this Leak-Out Agreement shall be, without any further action by the Holder or the Company, automatically amended and modified in an economically and legally equivalent manner such that the Holder shall receive the benefit of the more favorable terms and/or conditions (as the case may be), provided that upon written notice to the Company at any time prior to the expiration of such two (2) business day period the Holder may elect not to accept the benefit of any such amended or modified term or condition, in which event the term or condition contained in this Leak-Out Agreement shall continue to apply to the Holder as it was in effect immediately prior to such amendment or modification as if such amendment or modification never occurred with respect to the Holder. 
Provided there have been no changes in applicable law, rule, or regulation or interpretation by the Staff of the Securities and Exchange Commission following the Execution Date and subject to any other agreements to which the Company and Holder are parties, the Company agrees not to take any position contrary to that of the holding period of the Restricted Securities tacking back to September 11, 2015, the original issue date of the Restricted Securities (or, as applicable, such securities convertible or exercisable into Restricted Securities (assuming for such purpose that any warrants to purchase Common Stock of the Company, if any, are exercised on a cashless basis)).The Company shall use reasonable best efforts to cause the Company’s transfer agent to timely obtain and process (at the Company’s sole cost and expense) such opinions of counsel (the “Opinion Firm”) as the Company’s transfer agent may require or request in connection with the removal of any restrictive legend and the Company shall provide such required undertakings, certificates, documentation and additional information as such transfer agent and Opinion Firm shall require in connection with such activities. As a condition to the issuance of each such opinion and transfer agent actions, the Company and its counsel shall have the right to require that Holder timely execute an attestation as to Holder not being an Affiliate of the Company and that the Holder (and its Affiliates, successors and assigns) have fully complied with the terms applicable to Holder under this Leak-Out Agreement and reasonable evidence of such compliance.
       Any notices, consents, waivers or other communications required or permitted to be given under the terms of this Leak-Out Agreement must be in writing.
     This Leak-Out Agreement constitutes the entire agreement among the parties hereto with respect to the subject matter hereof and supersedes all prior negotiations, letters and understandings relating to the subject matter hereof and are fully binding on the parties hereto. For the avoidance of doubt, the parties hereto further acknowledge and agree that this Leak-Out Agreement supersedes any other similar agreement entered into by the Company, the Subsidiary and any of the members of the Holder prior to the date hereof (collectively, the “Other Leak-Out Agreements”), and the terms and conditions of such Other Leak-Out Agreements shall not apply to the Holder.

     This Leak-Out Agreement may be executed simultaneously in any number of counterparts. Each counterpart shall be deemed to be an original, and all such counterparts shall constitute one and the same instrument. This Leak-Out Agreement may be executed and accepted by facsimile or PDF signature and any such signature shall be of the same force and effect as an original signature.
     The terms of this Leak-Out Agreement shall be binding upon and shall inure to the benefit of each of the parties hereto and their respective successors and assigns.
     This Leak-Out Agreement may not be amended or modified except in writing signed by each of the parties hereto.
     All questions concerning the construction, validity, enforcement and interpretation of this letter agreement shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is improper.
     Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under this letter agreement and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. Each party hereby irrevocably waives any right it may have, and agrees not to request, a jury trial for the adjudication of any dispute hereunder or in connection with or arising out of this letter agreement or any transaction contemplated hereby. 
     Each party hereto acknowledges that, in view of the uniqueness of the transactions contemplated by this letter agreement, the other parties hereto would not have an adequate remedy at law for money damages in the event that this Leak-Out Agreement has not been performed in accordance with its terms, and therefore agrees that such other parties shall be entitled to specific enforcement of the terms hereof in addition to any other remedy to which it may be entitled, at law or in equity.
The obligations of Holder under this Agreement are several and not joint with the obligations of any Other Holder under any other agreement, and Holder shall not be responsible in any way for the performance of the obligations of any Other Holder under any such other agreement.  Nothing contained herein or in this Agreement, and no action taken by Holder pursuant hereto, shall be deemed to constitute Holder and Other Holders as a partnership, an association, a joint venture or any other kind of entity, or create a presumption that Holder and the Other Holders are in any way acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement and the Company acknowledges that Holder and the Other Holders are not acting in concert or as a group with respect to such obligations or the transactions contemplated by this Agreement or any other Agreement.  The Company and Holder confirms that Holder has independently participated in the negotiation of the transactions contemplated hereby with the advice of its own counsel and advisors.  Holder shall be entitled to independently protect and enforce its rights, including, without limitation, the rights arising out of this Agreement, and it shall not be necessary for any Other Holder to be joined as an additional party in any proceeding for such purpose. Only Company and Holder are the parties to this agreement and Other Holders may not rely on this agreement and no person (including, without limitation any Other Holder) shall be a third party beneficiary hereof.  

[SIGNATURE PAGE TO AMDA LEAK-OUT]
 
Agreed to and Acknowledged:
 
AMEDICA CORPORATION
 
By: _____________________
       Name: 
       Title: 
 
“Holder”

__________________________

By: ____________________
       Name:
Title: 
 

Schedule I
 
List of Restricted Securities
 
Shares:
Series A Warrant: 
Series B Warrant:
Series C Warrant:
Series D Warrant:scty-ex42_56.htm

 

Exhibit 4.2

SolarCity Corporation, as Issuer,

-and-

U.S. Bank National Association, as Trustee

 

 

ONE HUNDRED-AND-TWENTY-SECOND SUPPLEMENTAL INDENTURE

Dated as of September 11, 2015

to

INDENTURE

Dated as of October 15, 2014

 

 

Solar Bonds, Series 2015/R1

 

 

 

 

 

 

 

	
 
	
TABLE OF CONTENTS
	
 

	
 
	
 
	
PAGE

	
ARTICLE 1
DEFINITIONS

	
SECTION 1.01
	
Scope of Supplemental Indenture
	
2

	
SECTION 1.02
	
Definitions
	
2

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

	
 
	
 
	
 

	
SECTION 2.01
	
Title and Terms
	
3

	
SECTION 2.02
	
Computation of Interest Rate
	
4

	
SECTION 2.03
	
Minimum and Maximum Holding Amounts
	
4

	
SECTION 2.04
	
Company Global Securities
	
4

	
SECTION 2.05
	
Payments
	
4

	
SECTION 2.06
	
Reinvestment of Interest
	
5

	
ARTICLE 3
REDEMPTION

	
SECTION 3.01
	
General
	
5

	
SECTION 3.02
	
Redemption at the option of the Holder
	
5

	
SECTION 3.03
	
Redemption at the option of the Company
	
6

	
 
	
 
	
 

	
ARTICLE 4

MISCELLANEOUS PROVISIONS

	
SECTION 4.01
	
Trustee Acceptance
	
6

	
SECTION 4.02
	
Governing Law
	
7

	
SECTION 4.03
	
Trust Indenture Act
	
7

	
SECTION 4.04
	
Execution in Counterparts
	
7

	
SECTION 4.05
	
Severability
	
7

	
SECTION 4.06
	
Appointment of Paying Agent and Security Registrar
	
7

	
SECTION 4.07
	
Ratification of Original Indenture
	
7

	
 

EXHIBIT

	
Exhibit A
	
Form of Note
	
A-1

 

 

i

 

 

ONE HUNDRED-AND-TWENTY-SECOND SUPPLEMENTAL INDENTURE, dated as of September 11, 2015 (the “Supplemental Indenture”), between SolarCity Corporation, a Delaware corporation (hereinafter called the “Company”), having its principal executive office located at 3055 Clearview Way, San Mateo, California, 94402, and U.S. Bank National Association, a national banking association duly organized and existing under the laws of the United States of America, as trustee (in such capacity, the “Trustee”), to the indenture, dated as of October 15, 2014, between the Company and the Trustee (as amended or supplemented from time to time in accordance with the terms thereof, the “Original Indenture”).

RECITALS OF THE COMPANY

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

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

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

WHEREAS, pursuant to the terms of the Original Indenture, the Company desires to establish a new series of its Securities to be known as its Solar Bonds, Series 2015/R1 (the “Notes”), the form and substance of such Notes and the terms, provisions and conditions thereof to be set forth as provided in the Original Indenture and this Supplemental Indenture;

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

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

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

 

 

Article 1
DEFINITIONS

Section 1.01Scope of Supplemental Indenture

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

Section 1.02Definitions

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

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

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

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

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

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

“Account” means an account controlled by a Holder that holds notes issued pursuant to the Company’s Solar Bond Program, and amounts related to an Account shall include only the aggregate principal amount of Redeemable Notes held by such holder.

“Aggregate Maximum Holding” has the meaning specified in Section 2.03.

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

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

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

“Initial Notes” has the meaning specified in Section 2.05.

“Interest Payment Date” means January 1, April 1, July 1 and October 1 of each year, beginning on October 1, 2015.

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

“Note” or “Notes” has the meaning specified in the fourth paragraph of the recitals of this Supplemental Indenture, and shall include any Additional Notes issued pursuant to Section 2.05.

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

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

“Redeemable Note” means any note issued pursuant to the Company’s Solar Bond Program that may be redeemed prior to such note’s Stated Maturity, if any.

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

“Series Maximum Holding” has the meaning specified in Section 2.03.

“Series Minimum Holding” has the meaning specified in Section 2.03.

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

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

Section 2.01Title and Terms

.  There is hereby established a series of Securities designated the “Solar Bonds, Series 2015/R1”.  The Notes shall have no stated maturity and shall be redeemable, in whole or in part, at the option of the Holder or the Company pursuant to the terms of Article 3 below. The aggregate principal amount of the Notes shall not be limited and shall be initially authenticated and delivered from time to time upon delivery to the Trustee of the documents required by Section 303 of the Indenture.  The Notes shall be issued to each 

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purchaser in the Series Minimum Holding, with no additional limitations on increments that such purchaser may invest in the Notes once such purchaser satisfies the Series Minimum Holding. 

Section 2.02Computation of Interest Rate

.  Interest on the Notes shall accrue at an initial rate of 1.10% per annum, which shall continue for successive quarters until such time as a new interest rate shall be determined by the Company’s Chief Financial Officer or, upon providing notice to the Holders through the Platform Website and to the Trustee, such other person or persons as may be designated by the Board of Directors from time to time. The Company shall provide notice to the Holders through the Platform Website and to the Trustee of any change in the interest rate on the Notes at least 45 days prior to the end of each quarterly period.  Any change in interest on the Notes shall be effective on the first day of the next succeeding quarter.  Interest will be computed on the basis of twelve 30-day months and a 360-day year.  The amount of interest payable for any period shorter than a full quarterly interest period will be computed on the basis of the number of days elapsed in a 90-day quarterly period of three 30-day months.  

Section 2.03Minimum and Maximum Holding Amounts

. Holdings in the Notes shall be subject to an initial minimum holding amount by Holder of at least $1,000 (the “Series Minimum Holding”). Holdings in the Notes shall be subject to a maximum holding per Holder and per Account of $10 million (the “Series Maximum Holding”). Holdings in Redeemable Notes shall also be subject to a maximum holding per each Holder and per each Account of $10 million (the “Aggregate Maximum Holding”). The Company reserves the right, in its sole discretion, to increase, reduce or waive the Series Minimum Holding, the Series Maximum Holding and/or the Aggregate Maximum Holding for certain Holders.

Section 2.04Company Global Securities

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

Section 2.05Payments

.  

Interest on the Notes shall accrue at an initial rate of 1.10% per annum and at any other rate as determined pursuant to Section 2.02 from and including the Issue Date with respect to such Notes, or from the most recent date on which interest has been paid or duly provided for with respect to such Notes, to, but excluding, the next Interest Payment Date, until the Notes are redeemed pursuant to Article 3. Interest shall be payable in arrears on each Interest Payment Date, beginning on October 1, 2015, to the Persons in whose name a Note is registered on the Security Register at the Close of Business on the Regular Record Date immediately preceding the applicable Interest Payment Date.  If a Redemption Date is on or after a Regular Record Date and on or before the related Interest Payment Date, the accrued and unpaid interest, if any, shall be paid on the Redemption Date to the Holder as of the related Regular Record Date. If any day 

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on which a payment is due shall be a day which is not a Business Day, then such payment may be made on the next succeeding day that is a Business Day with the same force and effect as if made on such other payment date, and no interest shall accrue on the amount payable on such date or at such time for the period from and after such payment date to the next succeeding Business Day. Up to $10 million aggregate principal amount of Notes will be authenticated on the date of this Supplemental Indenture (the “Initial Notes”).

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

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

Section 2.06Reinvestment of Interest

.  The interest on any Note may be reinvested in additional Redeemable Notes at the option of the Holder, subject to the limitations under Section 2.03. Any reinvestment of interest shall be made in accordance with the procedures of the Company’s Platform Website, which initially shall provide for the reinvestment of interest payments through the Holder’s purchase of additional Redeemable Notes and which also may, from time to time in the Company’s sole discretion, provide for the automatic reinvestment of interest payments.

Article 3
REDEMPTION

Section 3.01General

. The Notes have no Stated Maturity and may be redeemed, in whole or in part, at either the Holder’s (solely with respect to the principal amount of Notes held by such Holder) or the Company’s election. Upon any redemption of Notes from a Holder pursuant to this Article 3, such Holder shall be entitled to cash at a redemption price equal to the principal amount of the Notes (or portion thereof) redeemed from such Holder, plus accrued and unpaid interest to, but not including, the Redemption Date, according to the procedures in Section 2.05.  All redemptions will be made through the Platform Website as described in this Article 3 and as may be amended from time to time.

Section 3.02Redemption at the option of the Holder

.  A Holder of the Notes may redeem, in whole or in part, the Notes held by such Holder by providing written notice to the Company, through the Platform Website, of the Holder’s election to exercise the redemption option at least 30 days prior to the end of the quarter.  The Holder may modify or revoke its request for redemption until 30 days prior to the end of the quarter, and the Company reserves 

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the right to waive such 30 day notice and deadline requirements in its sole discretion.  The Company reserves the right to require any Holder to provide any additional documentation as the Company may reasonably request in order to effect the redemption.  Upon receipt of proper notice that has not been validly revoked and any other additional documentation, as applicable, the Company shall redeem the applicable Notes on the first day of the new quarter next succeeding the quarter in which proper notice, not validly revoked, of the election to exercise the redemption is provided.  

Section 3.03Redemption at the option of the Company

.  

The Chief Financial Officer or such other person or persons as may be designated by the Board of Directors from time to time, in its or their sole discretion, as the case may be, may redeem the Notes at any time, in whole or in part, upon providing notice to the Trustee and notice to the Holders of the Notes that are the subject of the redemption through the Platform Website.  If the Company determines to redeem any of a Holder’s Notes, the Company shall provide written notice to such Holder through the Platform Website at least 30 days prior to the anticipated Redemption Date. If redemption is for less than the full amount of outstanding Notes, the Company may, in its sole discretion, choose to redeem the Notes on a pro rata basis or on other than a pro rata basis.

In addition, the Company, in its sole discretion, shall have the right to redeem the Notes in the following circumstances:

(a)The Company may choose to redeem a Holder’s Notes if the principal amount of such Holder’s Notes falls below the initial Series Minimum Holding and remains below such amount for 30 consecutive days.  In the event of a redemption pursuant to this Section 3.03(a), the Company shall provide such Holder with at least 5 days prior notice through the Platform Website.

(b)The Company may choose to redeem a Holder’s Notes if the principal amount of such Holder’s Notes exceeds either the Series Maximum Holding or, when aggregated with all Redeemable Notes held by such Holder, the Aggregate Maximum Holding.  In the event of a redemption pursuant to this Section 3.03(b), the Company shall provide such Holder with at least 5 days prior notice through the Platform Website.

(c)The Company may choose to redeem a Holder’s Notes if the Company believes, in its sole judgment and discretion, that such Holder is abusing or misusing the redemption provisions in a manner or with an effect that is not in the best interests of the Company.  In the event of a redemption pursuant to this Section 3.03(c), the Company shall provide such Holder with at least 5 days prior notice through the Platform Website.

Article 4
MISCELLANEOUS PROVISIONS

Section 4.01Trustee Acceptance

  The Trustee has accepted the amendment of the Original Indenture effected by this Supplemental Indenture and agrees to execute the trust created by the Original Indenture as hereby amended, but only upon the terms and conditions set forth in the Indenture, including the terms and provisions defining and limiting the liabilities and 

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responsibilities of the Trustee, and without limiting the generality of the foregoing, the Trustee shall not be responsible in any manner whatsoever for or with respect of any of the recitals or statements contained herein, all of which recitals or statements are made solely by the Company, or for or with respect to (a) the validity or sufficiency of this Supplemental Indenture or any of the terms or provisions hereof, (b) the proper authorization hereof by the Company by corporate action or otherwise, and (c) the due execution hereof by the Company.  Furthermore, the Trustee shall not control, or have oversight of the process of, any decisions to change the interest rate of the Notes and shall not be responsible or liable in any respect therefore.

Section 4.02Governing Law

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

Section 4.03Trust Indenture Act

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

Section 4.04Execution in Counterparts

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

Section 4.05Severability

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

Section 4.06Appointment of Paying Agent and Security Registrar

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

Section 4.07Ratification of Original Indenture

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

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

[Remainder of the page intentionally left blank]

 

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

		
	
 

SOLARCITY CORPORATION

	
 
	
 

	
By:
	
/s/ Brad Buss

	
 
	
Name: Brad Buss

	
 
	
Title: Chief Financial Officer

 

		
	
U.S. BANK NATIONAL ASSOCIATION, as Trustee

	
 
	
 

	
By:
	
/s/ Beverly Freeney

	
 
	
Name: Beverly Freeney

	
 
	
Title: Vice President

 

 

 

 

 

Exhibit A

Form of Note

 

 

 

 

NOTE

 

SOLARCITY CORPORATION
Solar Bonds, Series 2015/R1

			
	
 
	
 
	
 

	
No. [  ]
	
 
	
 

 

SolarCity Corporation, a Delaware corporation (herein called the “Company,” which term includes any successor Person under the Indenture referred to on the reverse hereof), for value received hereby promises to pay to each of the Holders listed on Schedule A hereto, or their registered assigns, the principal sum set forth next to such Holder’s name on Schedule A (the aggregate of which principal sums shall not exceed $10,000,000) on the applicable Redemption Date at the office or agency of the Company maintained for that purpose in accordance with the terms of the Indenture, in such coin or currency of the United States of America as at the time of payment shall be legal tender for the payment of public and private debts, and to pay interest, quarterly, on January 1, April 1, July 1 and October 1 (each, an “Interest Payment Date”), commencing on the Issue Date set forth next to such Holder’s name on Schedule A, on said principal sum at said office or agency, in like coin or currency, at the initial rate per annum of 1.10% (the “Interest Rate”), from and including the most recent Interest Payment Date in respect of which interest has been paid (or commencing on the Issue Date set forth set forth next to such Holder’s name on Schedule A if no interest has been paid hereon).  The Interest Rate is subject to change on a quarterly basis pursuant to a determination by the Chief Financial Officer, or such other person or persons as may be designated by the Board of Directors from time to time, in its or their sole discretion, as the case may be. Interest will be computed on the basis of twelve 30-day months and a 360-day year. The amount of interest payable for any period shorter than a full quarterly interest period will be computed on the basis of the number of days elapsed in a 90-day quarterly period of three 30-day months.

This Note shall have no Stated Maturity and shall be redeemable, in whole or in part, at the election of a Holder (solely with respect to the principal amount of Notes held by such Holder) or the Company. Upon any redemption, a Holder shall be entitled to cash at a redemption price equal to the principal amount of this Note (or portion thereof) being redeemed from such Holder, plus accrued and unpaid interest to, but not including, the Redemption Date, as defined in the Indenture. If a Redemption Date is on or after a Regular Record Date and on or before the related Interest Payment Date, the accrued and unpaid interest, if any, shall be paid on the Redemption Date to the Holder as of the related Regular Record Date.

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

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

A-1

 

 

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

Dated: [  ]

				
	
 
	
 
	
SOLARCITY CORPORATION

	
 
	
 
	
 

	
 
	
 
	
 

	
 
	
 
	
By:
	
 

	
 
	
 
	
 
	
Name: 

	
 
	
 
	
 
	
Title: 

 

 

			
	
ATTEST:
	
 

	
 
	
 

	
 
	
 

	
By
	
 
	
 

	
 
	
Name: 
	
 

	
 
	
Title:  
	
 

 

 

A-2

 

TRUSTEE’S CERTIFICATE OF AUTHENTICATION

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

U.S. BANK NATIONAL ASSOCIATION 
as Trustee

			
	
By:
	
 
	
 

	
 
	
Authorized Signatory 
	
 

 

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REVERSE OF NOTE
SOLARCITY CORPORATION
Solar Bonds, Series 2015/R1

This note is one of a duly authorized issue of notes of the Company, designated as its “Solar Bonds, Series 2015/R1” (herein called the “Notes”), issued under and pursuant to an Indenture, dated as of October 15, 2014 (the “Original Indenture”), between the Company and U.S. Bank National Association, as trustee (in such capacity, the “Trustee”), as supplemented with respect to the Notes by the One Hundred-and-Twenty-Second Supplemental Indenture, dated as of September 11, 2015 (the “Supplemental Indenture,” and together with the Original Indenture, the “Indenture”), between the Company, as issuer, paying agent and security registrar (herein called the “ Paying Agent and Security Registrar”), and the Trustee, as trustee, and as the authenticating agent (herein called the “Authenticating Agent”), to which Indenture and all indentures supplemental thereto reference is hereby made for a description of the rights, limitations of rights, obligations, duties and immunities thereunder of the Trustee, Authenticating Agent, Paying Agent, Security Registrar, the Company and the Holders of the Notes.  Capitalized terms used but not otherwise defined in this Note shall have the respective meanings ascribed thereto in the Indenture.

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

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

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

The Notes are issuable in fully registered form, without coupons, in the Series Minimum Holding, with no additional limitations on incremental investments a Holder may make in the Notes, subject to the Series Maximum Holding and Aggregate Maximum Holding, once such Holder satisfies the Series Minimum Holding.  The Notes may be exchanged for a like aggregate 

A-4

 

principal amount of Notes, on the terms and subject to the conditions and limitations set forth in the Indenture.

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

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

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

A-5

 

Schedule A

 

SOLARCITY CORPORATION
Solar Bonds, Series 2015/R1

 

			
	
Name of Holder
	
Principal Amount
	
Issue Date 

	
 
	
 
	
 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Aggregate Principal Amount Outstanding:

 

 

 

 

A-6

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