Document:

exh10-125.htm

Exhibit 10.125

 

GUARANTY OF PAYMENT AND COMPLETION

 

This GUARANTY OF PAYMENT AND COMPLETION dated as of December 20, 2012, (this “Guaranty”), is executed by CORONUS SOLAR, INC., a company incorporated under the laws of Canada (“Guarantor”), to and for the benefit of CLEAN FOCUS FINANCING COMPANY, LP, a Delaware limited partnership (together with its successors and assigns, "Lender").

 

R E C I T A L S:

 

A.           Lender has agreed to make a loan in the stated principal amount of Four Million and 00/100 Dollars ($4,000,000.00) (the “Loan”) to CORONUS ENERGY CORP., a Delaware corporation (“Owner”), and the fifteen (15) Delaware limited liability companies identified on Exhibit A, in each of which Owner holds one hundred percent (100%) of the authorized and outstanding membership interests (the “Project Companies” and collectively with the Owner, the “Borrower”). The Loan is evidenced by a Promissory Note (the “Note”) of even date herewith between the Borrower and the Lender for the purpose of financing certain costs to develop, interconnect and permit fifteen (15) solar photovoltaic energy generation facilities of the Project Companies to be located in San Bernardino County, California, United States of America (the “Projects”).  All capitalized terms not otherwise defined herein shall have the meanings set forth in the Note.

 

B.           As a condition precedent to Lender’s extension of the Loan to Borrower and in consideration therefor, Lender has required the execution and delivery of (i) this Guaranty by Guarantor, (ii) that certain Promissory Note dated as of even date herewith, executed by Borrower and made payable to the order of Lender (the “Note”), evidencing the Loan, and (iii) the other Loan Documents (as defined in the Note).

 

C.           Guarantor is the sole owner of one hundred percent (100%) of the capital stock of the Owner and, receiving a benefit from the Lender’s entering into the Loan and having a financial interest in the development of the Projects, has agreed to execute and deliver this Guaranty to Lender.

 

NOW, THEREFORE, for good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, Guarantor hereby agrees as follows:

 

A G R E E M E N T S:

 

1.   Guaranty of Payment.  Guarantor hereby unconditionally, absolutely and irrevocably guaranties to Lender the punctual payment and performance when due, whether at stated maturity or by acceleration or otherwise, of the indebtedness and other obligations of Borrower to Lender evidenced by the Note and any other amounts that may become owing by Borrower under the Loan Documents (such indebtedness, obligations and other amounts are hereinafter referred to as “Payment Obligations”).  This Guaranty is a present and continuing guaranty of payment and not of collectability, and Lender shall not be required to prosecute collection, enforcement or other remedies against Borrower or any other guarantor of the Payment Obligations, or to enforce or resort to any collateral for the repayment of the Payment

 

	
Execution Form

	  1	
Guaranty of Payment and

Completion/ Coronus Solar

  

  

  

Obligations or other rights or remedies pertaining thereto, before calling on Guarantor for payment.  If for any reason Borrower shall fail or be unable to pay, punctually and fully as required under the Loan Documents, any of the Payment Obligations, Guarantor shall jointly and severally pay such obligations to Lender in full immediately upon demand.  One or more successive actions may be brought against any or all of Guarantor, as often as Lender deems advisable, until all of the Payment Obligations are paid and performed in full.  The Payment Obligations and the Construction Obligations (as defined below) together with all other payment and performance obligations of Guarantor hereunder, are referred to herein as the “Obligations”.

 

2.   Performance Guaranty.

 

      (a)       Guarantor absolutely, unconditionally and irrevocably undertakes and guarantees, for the benefit of Lender and each and every present and future holder or holders of the Note or assignee or assignees of the Loan Documents, that all obligations of Borrower to continue development of the Projects, and comply with the terms and requirements of all Interconnection Agreements, Rule 21 generating facility interconnections requirements, conditional use permits and power purchase agreements under the CREST program with Southern California Edison (each a “CREST PPA”) and other  project agreements now existing or hereafter in existence as a result of the application of advances of the Loan and other performance obligations of Borrower relating to development of the Projects under the Loan Documents  (collectively, the “Construction Obligations”) shall be completed promptly when required pursuant to, and in accordance with, the terms and conditions contained in the Loan Documents, free and clear of any and all liens, charges, security interests and claims of any kind and nature whatsoever.  Guarantor shall cause the Construction Obligations to be performed, completed and paid for in the manner and at the applicable times required to be so performed, completed and paid for by Borrower, to the extent that Borrower fails to do so at any and all applicable times.

 

      (b)       Upon the occurrence of an Event of Default by Borrower under the Loan Documents, Guarantor agrees, on not more than fifteen (15) days written demand by Lender (a “Demand Notice”) to commence performance of the Construction Obligations and to diligently pursue performance thereof to completion, as described below.  Guarantor shall indemnify, defend and hold Lender harmless from and against any and all loss, damage, cost, expense, injury or liability Lender may suffer or incur in connection with third party claims brought as a result of the performance of the Construction Obligations by Guarantor (other than as a result of the gross negligence or willful misconduct of Lender or a delay caused by Lender).  If Guarantor fails to commence and pursue diligently the performance of the Construction Obligations within fifteen (15) days after its receipt of a Demand Notice, then, either before or after pursuing any other remedy of Lender against Guarantor or Borrower and regardless of whether Lender shall ever pursue any such other remedy, Lender shall have the right to complete the Construction Obligations, or call upon any other reputable parties to complete the Construction Obligations, in accordance with the applicable Interconnection Agreements, conditional use permits and applicable CREST PPAs, and shall have the right to expend such sums as Lender in its discretion deems proper in order so to complete the Construction Obligations.  During the course of any development activities undertaken by

 

	
Execution Form

	
2

	
Guaranty of Payment and

Completion/ Coronus Solar

  

  

  

Lender or by any other party on behalf of Lender, Guarantor shall pay on demand any amounts due to any party necessary to complete the Construction Obligations, without regard to any limitation on liability set forth herein (except for the gross negligence or willful misconduct of Lender or a delay caused by Lender); provided, however, Guarantor’s liability shall not exceed the outstanding Payment Obligations at any time plus any other obligations incurred by Lender in connection with the Projects, including but not limited to obligations incurred by Lender to complete the Construction Obligations.  Lender at any time may require Guarantor to perform or supervise the performance of such work in lieu of Lender or any party engaged by Lender.  The obligations of Guarantor in connection with such work shall not be affected by any errors or omissions of Borrower, any Contractor or Subcontractor, or any agent or employee of any of them in design, supervision or performance of the work, it being understood that such risk is assumed by Guarantor.  Neither the completion of the Construction Obligations nor failure of said parties to complete the Construction Obligations shall relieve Guarantor of any liabilities hereunder; rather, such liability shall be continuing, except as otherwise provided herein, and may be enforced by Lender to the end that the Construction Obligations shall be completed timely as contemplated by the Note, the project agreements, and the plans and specifications, free of any liens, and without loss, expense, injury or liability of any kind to Lender.

 

      (c)       For purposes of this Section 2, the Construction Obligations shall be deemed to be completed upon delivery to Lender of evidence satisfactory to Lender  that the objective of each advance pursuant to the Loan has been achieved

 

3.   Representations and Warranties.  The following shall constitute representations and warranties of Guarantor, and Guarantor hereby acknowledges that Lender intends to make the Loan in reliance thereon:

 

      (a)       Guarantor is not in default, in any material respect, and to Guarantor’s knowledge no event has occurred which, with the passage of time and/or the giving of notice, would constitute a default, under any agreement to which Guarantor is a party, the effect of which will materially impair performance by Guarantor of its obligations under this Guaranty.  Neither the execution and delivery of this Guaranty nor compliance with the terms and provisions hereof will violate any applicable law, rule, regulation, judgment, decree or order applicable to Guarantor, or will conflict with or result in any material breach of any of the terms, covenants, conditions or provisions of any indenture, mortgage, deed of trust, instrument, document, agreement or contract of any kind that creates, represents, evidences or provides for any lien, charge or encumbrance upon any of the property or assets of Guarantor, or any other indenture, mortgage, deed of trust, instrument, document, agreement or contract of any kind to which Guarantor is a party or to which Guarantor or the property of Guarantor may be subject.

 

      (b)       There are no litigation, arbitration, governmental or administrative proceedings, or actions, examinations, claims or demands pending, or to the knowledge of Guarantor, threatened that could materially adversely affect performance by Guarantor of its obligations under this Guaranty.

 

	
Execution Form

	
3

	
Guaranty of Payment and

Completion/ Coronus Solar

  

  

  

    (c)         Neither this Guaranty nor any statement or certification as to facts previously furnished or required herein to be furnished to Lender by Guarantor, contains any material inaccuracy or untruth in any representation, covenant or warranty or omits to state a fact material to this Guaranty.

 

4.   Continuing Guaranty.  Guarantor agrees that the performance of the Obligations by Guarantor shall be a primary obligation, shall not be subject to any counterclaim, set-off, abatement, deferment or defense based upon any claim that Guarantor may have against Lender, Borrower, any other guarantor of the Obligations or any other person or entity, and shall remain in full force and effect without regard to, and shall not be released, discharged or affected in any way by, any circumstance or condition (whether or not Guarantor shall have any knowledge thereof), including without limitation:

 

      (a)       any lack of validity or enforceability of any of the Loan Documents;

 

      (b)       any termination, amendment, modification or other change in any of the Loan Documents, including, without limitation, any modification of the interest rate(s) described therein;

 

      (c)       any furnishing, exchange, substitution or release of any collateral securing repayment of the Loan, or any failure to perfect any lien in such collateral;

 

      (d)       any failure, omission or delay on the part of Borrower, Guarantor, any other guarantor of the Obligations or Lender to conform or comply with any term of any of the Loan Documents or any failure of Lender to give notice of any Event of Default (as defined in the Note);

 

      (e)       any waiver, compromise, release, settlement or extension of time of payment or performance or observance of any of the obligations or agreements contained in any of the Loan Documents;

 

      (f)        any action or inaction by Lender under or in respect of any of the Loan Documents, any failure, lack of diligence, omission or delay on the part of Lender to perfect, enforce, assert or exercise any lien, security interest, right, power or remedy conferred on it in any of the Loan Documents, or any other action or inaction on the part of Lender;

 

      (g)       any voluntary or involuntary bankruptcy, insolvency, reorganization, arrangement, readjustment, assignment for the benefit of creditors, composition, receivership, liquidation, marshalling of assets and liabilities or similar events or proceedings with respect to Borrower, Guarantor or any other guarantor of the Obligations, as applicable, or any of their respective property or creditors, or any action taken by any trustee or receiver or by any court in any such proceeding;

 

      (h)       any merger or consolidation of either Borrower into or with any entity, or any sale, lease or transfer of any of the assets of either Borrower, Guarantor or any other guarantor of the Obligations to any other person or entity;

 

	
Execution Form

	
4

	
Guaranty of Payment and

Completion/ Coronus Solar

  

  

  

      (i)        any change in the ownership of either Borrower or any change in the relationship between either Borrower, Guarantor or any other guarantor of the Obligations, or any termination of any such relationship;

 

      (j)        any release or discharge by operation of law of either Borrower, Guarantor or any other guarantor of the Obligations from any obligation or agreement contained in any of the Loan Documents; or

 

      (k)       any other occurrence, circumstance, happening or event, whether similar or dissimilar to the foregoing and whether foreseen or unforeseen, which otherwise might constitute a legal or equitable defense or discharge of the liabilities of a guarantor or surety or which otherwise might limit recourse against either Borrower or Guarantor to the fullest extent permitted by law.

 

5.   Waivers.  To the extent permitted by applicable law, Guarantor expressly and unconditionally waives (i) notice of any of the matters referred to in Section 4 above, (ii) all notices which may be required by statute, rule of law or otherwise, now or hereafter in effect, to preserve intact any rights against Guarantor, including, without limitation, any demand, presentment and protest, proof of notice of non-payment under any of the Loan Documents and notice of any Event of Default or any failure on the part of Borrower, Guarantor or any other guarantor of the Obligations to perform or comply with any covenant, agreement, term or condition of any of the Loan Documents, (iii) any right to the enforcement, assertion or exercise against Borrower, Guarantor or any other guarantor of the Obligations of any right or remedy conferred under any of the Loan Documents, (iv) any requirement of diligence on the part of any person or entity, (v) any requirement on the part of Lender to exhaust any remedies or to mitigate the damages resulting from any default under any of the Loan Documents, and (vi) any notice of any sale, transfer or other disposition of any right, title or interest of Lender under any of the Loan Documents.

 

6.   Subordination.  Guarantor agrees that any and all present and future debts and obligations of either Borrower to Guarantor are hereby subordinated to the claims of Lender and are hereby assigned by Guarantor to Lender as security for the Obligations and the obligations of Guarantor under this Guaranty.

 

7.   Subrogation Waiver.  Until the Obligations are paid in full and all periods under applicable bankruptcy law for the contest of any payment by Guarantor or Borrower as a preferential or fraudulent payment have expired, Guarantor knowingly, and with advice of counsel, to the extent permitted by applicable law, waives, relinquishes, releases and abandons all rights and claims to indemnification (except as provided herein), contribution, reimbursement, subrogation and payment which Guarantor may now or hereafter have by and from either Borrower and the successors and assigns of either Borrower, for any payments made by Guarantor to Lender, including, without limitation, any rights which might allow either Borrower, either Borrower’s successors, a creditor of either Borrower, or a trustee in bankruptcy of either Borrower to claim in bankruptcy or any other similar proceedings that any payment made by either Borrower or either Borrower’s successors and assigns to Lender was on behalf of or for the benefit of Guarantor and that such payment is recoverable by either Borrower, a creditor or trustee in bankruptcy of either Borrower as a preferential payment, fraudulent

 

	
Execution Form

	
5

	
Guaranty of Payment and

Completion/ Coronus Solar

  

  

  

conveyance, payment of an insider or any other classification of payment which may otherwise be recoverable from Lender.

 

8.   Reinstatement.  The obligations of Guarantor pursuant to this Guaranty shall continue to be effective or automatically be reinstated, as the case may be, if at any time payment of any of the Obligations or the obligations of Guarantor under this Guaranty is rescinded or otherwise must be restored or returned by Lender upon the insolvency, bankruptcy, dissolution, liquidation or reorganization of Guarantor or Borrower or otherwise, all as though such payment had not been made.

 

9.   Financial Statements.  Guarantor represents and warrants to Lender that (a) the financial statements of Guarantor previously submitted to Lender are true, complete and correct in all material respects, disclose all actual and contingent liabilities, and fairly present the financial condition of Guarantor as of the date thereof, and do not contain any untrue statement of a material fact or omit to state a fact material to the financial statements submitted or this Guaranty, and (b) no material adverse change has occurred in the financial statements from the dates thereof until the date hereof.  Guarantor shall furnish to Lender such additional financial statements as Lender may reasonably request.

 

10.     Transfers; Sales, Etc.  Guarantor shall not sell, lease, transfer, convey or assign any of Guarantor’s assets, including in particular but notwithstanding the generality of this prohibition, any of Guarantor’s assets which have been assigned or pledged as additional security for the Loan and the Note, unless such sale, lease, transfer, conveyance or assignment would not materially and adversely affect Guarantor’s ability to meet its obligations under this Guaranty.

 

11.     Enforcement Costs.  If:  (a) this Guaranty, is placed in the hands of one or more attorneys for collection or is collected through any legal proceeding; (b) one or more attorneys is retained to represent Lender in any bankruptcy, reorganization, receivership or other proceedings affecting creditors’ rights and involving a claim under this Guaranty, or (c) one or more attorneys is retained to represent Lender in any other proceedings whatsoever in connection with this Guaranty, then Guarantor shall pay to Lender upon demand all fees, costs and expenses incurred by Lender in connection therewith, including, without limitation, reasonable attorney’s fees, court costs and filing fees (all of which are referred to herein as the “Enforcement Costs”), in addition to all other amounts due hereunder; provided, however, that if the highest court (whether trial or appellate) hearing an action brought by Lender against Guarantor hereunder determines that the defense or defenses raised by Guarantor in such action is or are a valid defense to all relief sought by Lender, Guarantor shall not be obligated to pay Enforcement Costs with respect to such action.

 

12.     Successors and Assigns.  This Guaranty shall inure to the benefit of Lender and its successors and assigns.  This Guaranty shall be binding on Guarantor and the respective heirs, legatees, successors and assigns of each Guarantor.  Guarantor agrees and acknowledges that the liability of Guarantor hereunder is independent of any other guarantees or other obligations at any time in effect with respect to the Obligations or any part thereof, and that the liability of Guarantor hereunder may be enforced regardless of the existence, validity, enforcement or non-enforcement of any such other guarantees or other obligations.

 

	
Execution Form

	
6

	
Guaranty of Payment and

Completion/ Coronus Solar

  

  

  

13.    No Waiver of Rights.  No delay or failure on the part of Lender to exercise any right, power or privilege under this Guaranty or any of the other Loan Documents shall operate as a waiver thereof, and no single or partial exercise of any right, power or privilege shall preclude any other or further exercise thereof or the exercise of any other power or right, or be deemed to establish a custom or course of dealing or performance between the parties hereto. The rights and remedies herein provided are cumulative and not exclusive of any rights or remedies provided by law.  No notice to or demand on Guarantor in any case shall entitle Guarantor to any other or further notice or demand in the same, similar or other circumstance.

 

14.    Modification.  The terms of this Guaranty may be waived, discharged, or terminated only by an instrument in writing signed by the party against which enforcement of the change, waiver, discharge or termination is sought.  No amendment, modification, waiver or other change of any of the terms of this Guaranty shall be effective without the prior written consent of Lender.

 

15.    Joinder.  Any action to enforce this Guaranty may be brought against Guarantor without any reimbursement or joinder of Borrower or any other guarantor of the Obligations in such action.

 

16.    Severability.  If any provision of this Guaranty is deemed to be invalid by reason of the operation of law, or by reason of the interpretation placed thereon by any administrative agency or any court, Guarantor and Lender shall negotiate an equitable adjustment in the provisions of the same in order to effect, to the maximum extent permitted by law, the purpose of this Guaranty and the validity and enforceability of the remaining provisions, or portions or applications thereof, shall not be affected thereby and shall remain in full force and effect.

 

17.    Applicable Law.  This Guaranty is governed as to validity, interpretation, effect and in all other respects by laws and decisions of the State of California.

 

18.    Notices.  Any notices, communications and waivers under this Guaranty shall be in writing and shall be (i) delivered in person, (ii) mailed, postage prepaid, either by registered or certified mail, return receipt requested, or (iii) sent by overnight express carrier, addressed in each case as follows:

 

	 	
To Lender:

	
Clean Focus Financing Company, LP

150 Mathilda Place

Suite 206

Sunnyvale, California  94086

Attn:           Stanley Chin

 

	 	  	  
	 	
To Guarantors:

	
Coronus Solar, Inc.

1600 - 609 Granville Street

Vancouver, British Columbia

Canada  V7Y IC3

Attn:           Jeff Thachuk, President

	
Execution Form

	
7

	
Guaranty of Payment and

Completion/ Coronus Solar

  

  

  

or to any other address as to any of the parties hereto, as such party shall designate in a written notice to the other party hereto.  All notices sent pursuant to the terms of this Section shall be deemed received (i) if personally delivered, then on the date of delivery, (ii) if sent by overnight, express carrier, then on the next Business Day immediately following the day sent, or (iii) if sent by registered or certified mail, then on the earlier of the third Business Day following the day sent or when actually received.

 

19.  CONSENT TO JURISDICTION.  TO INDUCE LENDER TO ACCEPT THIS GUARANTY, GUARANTOR IRREVOCABLY AGREES THAT, SUBJECT TO LENDER’S SOLE AND ABSOLUTE ELECTION, ALL ACTIONS OR PROCEEDINGS IN ANY WAY ARISING OUT OF OR RELATED TO THIS GUARANTY MAY BE LITIGATED IN STATE OR FEDERAL COURT SITTING IN THE COUNTY OF SANTA CLARA, STATE OF CALIFORNIA, UNITED STATES OF AMERICA.  GUARANTOR HEREBY CONSENTS AND SUBMITS TO THE JURISDICTION OF STATE OR FEDERAL COURT WITH APPLICABLE JURISDICTION SITTING IN THE COUNTY OF SANTA CLARA, STATE OF UNITED STATES OF AMERICA, WAIVES PERSONAL SERVICE OF PROCESS AND AGREES THAT ALL SUCH SERVICE OF PROCESS MAY BE MADE BY REGISTERED MAIL DIRECTED TO GUARANTOR AT THE ADDRESSES STATED HEREIN AND SERVICE SO MADE WILL BE DEEMED TO BE COMPLETED UPON ACTUAL RECEIPT.

 

20.    WAIVER OF JURY TRIAL.  GUARANTOR AND LENDER (BY ACCEPTANCE HEREOF), HAVING BEEN REPRESENTED BY COUNSEL, KNOWINGLY AND VOLUNTARILY WAIVES ANY RIGHT TO A TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO ENFORCE OR DEFEND ANY RIGHTS UNDER THIS GUARANTY OR UNDER ANY AMENDMENT, INSTRUMENT, DOCUMENT OR AGREEMENT DELIVERED OR WHICH MAY IN THE FUTURE BE DELIVERED IN CONNECTION HEREWITH AND AGREES THAT ANY SUCH ACTION OR PROCEEDING WILL BE TRIED BEFORE A COURT AND NOT BEFORE A JURY.  GUARANTOR AGREES THAT GUARANTOR WILL NOT ASSERT ANY CLAIM AGAINST LENDER ON ANY THEORY OF LIABILITY FOR SPECIAL, INDIRECT, CONSEQUENTIAL, INCIDENTAL OR PUNITIVE DAMAGES.

 

21.     Counterparts; Facsimile Signatures.  This Guaranty may be executed in any number of counterparts, all of which shall be taken to be one and the same instrument, for the same effect as if all parties hereto had signed the same signature page.  Receipt of an executed signature page to this Guaranty by facsimile or other electronic transmission shall constitute effective delivery thereof.

 

	
Execution Form

	
8

	
Guaranty of Payment and

Completion/ Coronus Solar

  

  

  

22.    Further Covenants.  To the extent of any inconsistency between this Section 22 and the other provisions of this Guaranty, the terms and provisions of this Section shall govern and control.  To the extent permitted by applicable law, Guarantor hereby waives and agrees not to assert or take advantage of any defense based upon:

 

      (a)       The incapacity, lack of authority, death or disability of Borrower or any other person or entity.

 

      (b)       The failure of Lender to commence an action against Borrower or any other Guarantor or to proceed against or exhaust any security held by Lender at any time or to pursue any other remedy whatsoever at anytime.

 

      (c)       Lack of notice of default, demand of performance or notice of acceleration to Borrower, any other Guarantor or any other party with respect to the Loan or the obligations guaranteed under this Agreement.

 

      (d)       The consideration for this Guaranty.

 

      (e)       Any acts or omissions of Lender that vary, increase or decrease the risk on any Guarantor.

 

      (f)        Any statute of limitations affecting the liability of any Guarantor hereunder, the liability of Borrower or any Guarantor under the Loan Documents, or the enforcement hereof, to the extent permitted by law.

 

      (g)       The application by Borrower of the proceeds of the Loan for purposes other than the purposes represented by Borrower to Lender or intended or understood by Lender or Guarantor.

 

      (h)       Lender’s election, in any proceeding instituted under the Federal Bankruptcy Code, of the application of Section 1111(b) (2) of the Federal Bankruptcy Code or any successor statute.  "Bankruptcy Code" shall mean 11 U.S.C. Sections 101 et seq., as modified and/or recodified from time to time.

 

      (i)        Any borrowing or any grant of a security interest under Section 364 of the Federal Bankruptcy Code.

 

      (j)        All rights and defenses that Guarantor may have because Borrower’s debt is secured by real property.  This means, among other things:

 

 (i)          Lender may collect from Guarantor without first foreclosing on any real or personal property collateral pledged by Borrower.

 

 (ii)         If Lender forecloses on any real property collateral pledged by Borrower:

 

	
Execution Form

	
9

	
Guaranty of Payment and

Completion/ Coronus Solar

  

  

  

    (A)           The amount of the debt may be reduced only by the price for which that collateral is sold at the foreclosure sale, even if the collateral is worth more than the sale price.

 

    (B)           Lender may collect from Guarantor even if Lender, by foreclosing on the real property collateral, has destroyed any right Guarantor may have to collect from Borrower, or both of them.

 

This is an unconditional and irrevocable waiver of any rights and defenses Guarantor may have because Borrower's debt is secured by real property.

 

      (k)       Any defense based upon any statute or rule of law which provides that the obligation of a surety must be neither larger in amount nor in other respects more burdensome than that of the principal.

 

      (l)        Any claim or other rights which Guarantor may now have or hereafter acquire against Borrower that arise from the existence or performance of Guarantor's obligations under this Guaranty or any of the other Loan Documents, including, without limitation, any right of subrogation, reimbursement, exoneration, contribution or indemnification (except as otherwise provided herein), any right to participate in any claim or remedy of Lender against Borrower or any collateral which Lender now has or hereafter acquires, whether or not such claim, remedy or right arises in equity or under contract, statute or common law, by any payment made hereunder or otherwise, including, without limitation, the right to take or receive from Borrower, directly or indirectly, in cash or other property or by setoff or in any other manner, payment or security on account of such claim or other rights.

 

      (m)      Any duty on the part of Lender to disclose to Guarantor any facts Lender may now or hereafter know about either Borrower, regardless of whether Lender has reason to believe that any such facts materially increase the risk beyond that which Guarantor intends to assume, or has reason to believe that such facts are unknown to Guarantor, or has a reasonable opportunity to communicate such facts to Guarantor, since Guarantor acknowledges that Guarantor is fully responsible for being and keeping informed of the financial condition of each Borrower and of all circumstances bearing on the risk of nonperformance of any obligations hereby guaranteed.

 

 [REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

 

 

 

	
Execution Form

	
10

	
Guaranty of Payment and

Completion/ Coronus Solar

  

  

  

IN WITNESS WHEREOF, Guarantor has executed this Guaranty of Payment and Completion as of the date first above written.

 

	  	
GUARANTOR:

 

 

	  	
CORONUS SOLAR INC., a company incorporated under

the laws of Canada

	
 

	  
	  	
By:           Jeff Thachuk

	  	  
	  	
Name:      Jeff Thachuk

 

	  	
Title:         President

 

	  	  

 

 

 

	
Execution Form

	
11

	
Guaranty of Payment and

Completion/ Coronus Solar

  

  

  

EXHIBIT A - Schedule of Owner and Project LLC's

Owner:               Coronus Energy Corporation

                          1100 - 1200 West 73rd Ave.

                          Vancouver, BC

                          Canada  V6P 6G5

Project LLCs:

	
1.  

	
Coronus 29-Palms North 1 LLC, a Delaware limited liability company

 

	
2.  

	
Coronus 29-Palms North 2 LLC, a Delaware limited liability company

 

	
3.  

	
Coronus 29-Palms North 3 LLC, a Delaware limited liability company

 

	
4.  

	
Coronus Yucca Valley East 1 LLC, a Delaware limited liability company

 

	
5.  

	
Coronus Yucca Valley East 2 LLC, a Delaware limited liability company

 

	
6.  

	
Coronus Yucca Valley East 3 LLC, a Delaware limited liability company

 

	
7.  

	
Coronus Joshua Tree East 1 LLC, a Delaware limited liability company

 

	
8.  

	
Coronus Joshua Tree East 2 LLC, a Delaware limited liability company

 

	
9.  

	
Coronus Joshua Tree East 3 LLC, a Delaware limited liability company

 

	
10.  

	
Coronus Joshua Tree East 4 LLC, a Delaware limited liability company

 

	
11.  

	
Coronus Joshua Tree East 5 LLC, a Delaware limited liability company

 

	
12.  

	
Coronus Apple Valley East 1 LLC, a Delaware limited liability company

 

	
13.  

	
Coronus Apple Valley East 2 LLC, a Delaware limited liability company

 

	
14.  

	
Coronus Adelanto West 1 LLC, a Delaware limited liability company

 

	
15.  

	
Coronus Adelanto West 2 LLC, a Delaware limited liability company

 

	
Execution Form

	
12

	
Guaranty of Payment and

Completion/ Coronus Solarexh10-126.htm

Exhibit 10.126

 

COLLATERAL ASSIGNMENT AND PLEDGE AGREEMENT

 

THIS COLLATERAL ASSIGNMENT AND PLEDGE AGREEMENT (“Assignment”) is made as of, and is effective as of, December 20, 2012, by CORONUS ENERGY CORP., a Delaware corporation (“Assignor”) to and for the benefit of CLEAN FOCUS FINANCING COMPANY, LP, a Delaware limited partnership, its successors and assigns (“Lender”).

 

RECITALS:

 

A.        Lender has agreed to make a loan in the stated principal amount of up to Four  Million and 00/100 Dollars ($4,000,000.00) (the “Loan”) to Assignor and the fifteen (15) project companies listed on Exhibit A (the “Project Companies” and together with Assignor, collectively, “Borrower”).  The Loan is evidenced by that certain Promissory Note of even date herewith in the stated principal amount of up to Four Million and 00/100 Dollars ($4,000,000.00) (as amended from time to time, the "Note") for the purpose of financing certain development costs incurred by the solar photovoltaic electric generation installations (individually, a “Project” and collectively, the “Projects”) being developed by Assignor at location in San Bernardino County, California, USA.

 

B.        Assignor is the owner of one hundred percent (100%) of the authorized membership interest in each of the Delaware limited liability company Project Companies listed on Exhibit A.

 

C.        Each Project Company has, is, or will be, entering into certain agreements for the land rights, construction, installation, operation and maintenance of its Project and the sale of the electric output of the Project to Southern California Edison pursuant to its individual Southern California Edison CREST Power Purchase Agreement (a “CREST PPA”).

 

D.        The Loan is evidenced by the Note of even date herewith made by Borrower to the order of Lender, and is secured by, among other documents and instruments of which this Collateral Assignment and Pledge Agreement assigning Borrower’s interests in the purchase agreements and parcels encumbering the respective interests of Owner in real property located in San Bernardino County, California, and described on Exhibit B attached hereto is one, those certain Mortgages, Assignment of Rents, Security Agreement and Financing Statement to be dated and executed by each Borrower following the first advance of the Loan, (together with all modifications, amendments, restatements and replacements thereof, the “Mortgages”) (the real property and other interests in real property being collectively referred to herein as the  "Property"),a Collateral Assignment and Pledge Agreement  and a Guaranty by Coronus Solar Inc. (“Coronus Solar”), a Canadian corporation, the sole shareholder of Owner.  The Note, this Collateral Assignment and Pledge Agreement, the Mortgages, the Collateral Assignment and Pledge Agreement of Coronus Solar, the Guaranty of Coronus Solar and all other documents evidencing or securing the Loan are hereinafter referred to as the “Loan Documents”.

 

E.        Assignor is the owner of all membership interests in the Project Companies and is a wholly owned subsidiary of Coronus Solar. In order to secure all amounts due under the Note and all other obligations of Borrower now or hereafter existing, whether direct or indirect, absolute or contingent, under any of the Loan Documents (which indebtedness and obligations

 

	
Execution Form

	
1

	
Assignment of Member Interests / 

Coronus Energy Corp.

 

  

  

  

are hereinafter referred to as the “Obligations”), the Assignor has agreed to assign the collateral described below.

 

F.         The capitalized terms used but not defined herein shall have the meanings assigned to them in the Loan Agreement.

 

NOW, THEREFORE, in consideration of One Dollar ($1.00) and other good and valuable consideration the receipt and sufficiency of which are hereby acknowledged and intending to be legally bound, the Assignor hereby covenants and agrees as follows:

 

1.         Security Interest.  Assignor hereby pledges, transfers and assigns to the Lender a first and superior security interest (the "Security Interest") in the following described items, and all interest received thereon, all renewals, replacements, and substitutions therefor and in all proceeds thereof in any form (the "Collateral"):

 

(a)        all of Assignor’s right, title and interest in, to, and under the Assignor’s rights as the sole member of the Project Companies, whether now or hereafter existing, or now or hereafter acquired (the “Any Project Company Membership Interests”), including but not by way of limitation, (i) its interest in the income, all distributions, repayment of capital contributions, deductions, losses, and tax benefits (including any tax credits allocated or available to the Assignor), (ii) its interest with respect to any and all loans made by any Project Company to any person or entity, (iii) any other sums, payments, fees or other amounts to which Assignor may be entitled from any Project Company as the sole member thereof, (iv) that certain Operating Agreement of each Project Company as now existing, to be entered into, as it may be amended, supplemented, and/or restated from time to time (each a “Project Company Operating Agreement”), (v) all voting rights of the Assignor under each Project Company Operating Agreement, as it may be amended, supplemented, and/or restated from time to time, and (vi) all books and records pertaining to any of the above described property, including, but not limited to, any computer readable memory and any computer hardware or software.

 

(b)        all of Assignor’s right, title and interest in, to, and under, if any, each of the agreements and documents listed on Exhibit C hereto.

 

(c)        all of Assignor’s right, title and interest in, to, and under, if any, any contracts, permits, applications or other documents or agreements entered into or submitted by any of the  Project Companies,

 

2.         Indebtedness Secured.  The Security Interest secures payment of any and all Obligations whether now existing or hereafter incurred, of every kind and character, direct or indirect, and whether such Obligations are from time to time reduced and thereafter increased, or entirely extinguished and thereafter reincurred.

 

3.         Representations and Warranties of Assignor. Assignor represents and warrants and, so long as this Assignment is in effect, it shall be deemed continuously to represent and warrant that:

 

	
Execution Form

	
2

	
Assignment of Member Interests / 

Coronus Energy Corp.

  

  

  

(a)        Assignor is authorized to enter into this Assignment, which is the legal, valid and binding obligation of Assignor enforceable in accordance with its terms, except as may be limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws.

 

(b)        Assignor is the owner of the Collateral free and clear of any other voluntary or involuntary security interest, lien, claim or encumbrance of any nature.

 

(c)        Assignor is the sole member and manager, or managing member, of each Project Company.

 

4.         Covenants of Assignor.  So long as this Assignment is in effect:

 

(a)        Assignor will defend the Collateral against the claims and demands of all other parties; will keep the Collateral free from all security interests or other encumbrances, except as contemplated by the Loan Documents; and will not sell, transfer, assign, deliver or otherwise dispose of any Collateral or any interest therein without the prior written consent of Lender except as permitted by the Loan Documents.

 

(b)        Any Collateral, including any profits (but not losses), incomes, contributions, proceeds and any other sums, fees or amounts which the Assignor receives or is entitled to from any Project Company will be immediately delivered to the Lender as cash Collateral to be held by the Lender for the purpose of securing the payment or performance of the Obligations.  

 

(c)        Assignor will execute such additional documents and take such further actions as may be required to carry out the provisions and intent of this Assignment. Assignor hereby authorizes the filing of a financing statement or statements, and such amendments thereto and continuations thereof as may be required or advisable to perfect and maintain the continuous perfection of the Security Interests.  In addition, Assignor grants to Lender a power of attorney coupled with an interest to effectuate the terms of the foregoing sentence and to file all continuations, renewals or amended financing statements without the signature of Assignor.

 

(d)        Assignor agrees not to amend or voluntarily permit the amendment of  any Project Company Operating Agreement without the prior written consent of the Lender.

 

(e)        Assignor covenants and agrees not to voluntarily withdraw as member or managing member of any Project Company without the prior written consent of the Lender.

 

(f)         Assignor shall cause each Project Company to comply with each of the agreements to which each such entity is a party.

 

5.         Events of Default; Remedies.

 

(a)        Any of the following events or conditions shall constitute an "Event of Default" hereunder: (i) failure of Assignor to pay, perform or observe any of the Assignor’s obligations set forth herein, if such failure shall continue for ten (10) days after written notice thereof is sent to Assignor, or (ii) the occurrence of an Event of Default under any of the Loan Documents.

 

	
Execution Form

	
3

	
Assignment of Member Interests / 

Coronus Energy Corp.

  

  

  

(b)        Lender shall have all rights and remedies with respect to the Collateral of a secured party under the Uniform Commercial Code and under any applicable law, as the same may from time to time be in effect, in addition to those rights granted herein and in any other agreement now or hereafter in effect between Assignor and Lender.

 

(c)        Assignor agrees to pay on demand all costs and expenses incurred by Lender enforcing this Assignment, in realizing upon or protecting any Collateral and in enforcing and collecting any Indebtedness or any guaranty thereof, including, without limitation, if Lender retains counsel for advice, suit, appeal, insolvency or other proceedings under the federal Bankruptcy Code (11 U.S.C. §101, et seq.) or otherwise, or for any of the above purposes, the reasonable attorneys' fees and expenses incurred by Lender.  Payment of all moneys hereunder is secured by the Collateral.

 

(d)        If, at any time when Lender shall determine to exercise its right to sell the whole or any part of the Collateral hereunder, such Collateral or the part thereof to be sold shall not, for any reason whatsoever, be effectively registered under the Securities Act of 1933, as amended (or any similar statute then in effect) (the “Act”), then Lender may (subject only to requirements of applicable law), sell such Collateral or part thereof by private sale in such commercially reasonable manner as Lender may deem necessary or advisable, but subject to the other requirements of this Section 5(d), and shall not be required to effect such registration or to cause the same to be effected.  Without limiting the generality of the foregoing, in any such event, Lender may (i) in accordance with applicable securities laws, proceed to make such private sale notwithstanding that a registration statement for the purpose of registering such Collateral or part thereof could be or shall have been filed under said Act, (ii) approach and negotiate with a single possible purchaser to effect such sale, and (iii) restrict such sale to a purchaser who is an accredited investor under the Act and who will represent and agree that such purchaser is purchasing for its own account, for investment and not with a view to the distribution or sale of such Collateral or any part thereof.  In addition to a private sale as provided above in this Section 5(d), if any of the Collateral shall not be freely distributable to the public without registration under the Act (or similar statute) at the time of any proposed sale pursuant to this Section 5(d) then Lender shall not be required to effect such registration or cause the same to be effected but (subject only to requirements of applicable law) may require that any sale hereunder (including a sale at auction) be conducted subject to restrictions:

 

          (i)          as to the financial sophistication and ability of any Person permitted to bid or purchase at any such sale;

 

          (ii)         as to the content of legends to be placed upon any certificates representing the Collateral sold in such sale, including restrictions on future transfer thereof;

 

          (iii)        as to the representations required to be made by each Person bidding or purchasing at such sale relating to that Person’s access to financial information about the Assignor and such Person’s intentions as to the holding of the Collateral so sold for investment for its own account and not with a view to the distribution thereof; and

 

	
Execution Form

	
4

	
Assignment of Member Interests / 

Coronus Energy Corp.

 

  

  

  

          (iv)        as to such other matters as Lender may deem necessary or appropriate in order that such sale (notwithstanding any failure so to register) may be effected in compliance with the Bankruptcy Code and other laws affecting the enforcement of creditors’ right and the Act and all applicable state securities laws.

 

          The proceeds of, and other realization upon, the Collateral by virtue of the exercise of remedies under this Section 5(d) shall be deposited into an account designated by Lender and applied in accordance with the provisions of the Note.

 

(e)        If the proceeds of, or other realization upon, the Collateral by virtue of the exercise of remedies under Section 5(d) are insufficient to cover the costs and expenses of such exercise and the payment in full of the Obligations, Assignor shall remain liable for any deficiency to the extent provided under applicable Legal Requirements.

 

(f)         Private Sale.

 

          (i)          Lender shall not incur any liability as a result of the sale, lease or other disposition of all or any part of the Collateral at any private sale pursuant to Section 5(d) conducted in a commercially reasonable manner.  Without limiting the foregoing, Assignor hereby waives any claims against Lender arising by reason of the fact that the price at which the Collateral may have been sold at such a private sale was less than the price which might have been obtained at a public sale or was less than the aggregate amount of the Obligations, even if Lender accepts the first offer received and does not offer the Collateral to more than one offeree.

 

          (ii)         Assignor recognizes that, by reason of certain prohibitions contained in the Act and applicable state securities laws, Lender may be compelled, with respect to any sale of all or any part of the Collateral, to limit purchasers to those who will agree, among other things, to acquire the Collateral for their own account, for investment and not with a view to distribution or resale.  Assignor acknowledges that any such private sales may be at prices and on terms less favorable to Lender than those obtainable through a public sale without such restrictions, and, notwithstanding such circumstances, agree that any such private sale conducted in accordance with this Assignment shall be deemed to have been made in a commercially reasonable manner and that Lender shall have no obligation to engage in public sales and no obligation to delay the sale of any Collateral for the period of time necessary to permit the respective issuer of such Collateral to register it for public sale.

 

(g)        Assignor will take no action, as contemplated by Section 8-103 of the UCC or otherwise, that would cause any of the Pledged Interests to fall within the definition of “security” under Article 8 of the UCC, including but not limited to (i) entering into an amendment to any Project Company Operating Agreement or any other writing or agreement purporting to opt in to Article 8 of the UCC pursuant to Section 8-103 thereof or (ii) transferring any of the Pledged Interests to a securities account.

 

(h)        Assignor shall not consent to the issuance of any certificate to evidence

 

	
Execution Form

	
5

	
Assignment of Member Interests / 

Coronus Energy Corp.

 

  

  

  

any of the Pledged Interests.

 

(i)         Assignor shall (i) if any Pledged Interests now or in the future exists in certificated form, deliver to Lender any and all certificates representing the Pledged Interests, duly endorsed in blank; (ii) with respect to any part of the Collateral that constitutes an uncertificated security, cause any issuer thereof to register Lender as the registered owner of such uncertificated security or to enter into agreements to establish Lender’s control (within the meaning of Section 8-106 of the UCC) over such uncertificated securities.

 

6.         Authority of Lender.  Assignor hereby irrevocably appoints Lender the Assignor's true and lawful attorney, with full power of substitution, in Assignor's name or in Lender's name, or otherwise, for Lender's sole use and benefit, but at Assignor's cost and expense, to exercise at any time and from time to time all or any of the following powers with respect to all or any of the Collateral:

 

(a)        Upon the occurrence of any Event of Default as set forth in paragraph 5 above:

 

          (i)          To demand, sue for, collect, receive and give acquittance for any and all moneys due or to become due upon or by virtue thereof.

 

          (ii)         To receive, take, hold, endorse, collect, assign and deliver any and all checks, notes, drafts, documents and other negotiable and non-negotiable instruments and chattel paper taken or received by Lender in connection herewith.

 

          (iii)        To settle, compromise, compound, prosecute or defend any action or proceeding with respect thereto.

 

          (iv)        To sell, transfer, assign or otherwise deal in or with the same, or the proceeds or avails thereof, or to renew the same, as fully and effectively as if Lender were absolute the owner thereof, and to make any allowance and other adjustment with reference thereto.

 

          (v)         To collect on the Collateral, whether or not any action of Lender results in the imposition of any penalty.  Assignor authorizes Lender from time to time to renew any Collateral at its maturity, on such terms as Lender deems appropriate.

 

(b)        Prior to or upon the occurrence of an Event of Default as set forth in paragraph 5 above:

 

          (i)          To receive, take, hold, endorse and collect any and all checks, notes, drafts, documents and other negotiable and non-negotiable instruments and chattel paper and to retain in a cash collateral account the cash proceeds thereof and/or after an Event of Default to apply the same to the Obligations.

 

          (ii)         To require the Assignor to effect collection on any such Collateral which has become due and to remit the proceeds (less reasonable costs of

 

	
Execution Form

	
6

	
Assignment of Member Interests / 

Coronus Energy Corp.

  

  

  

collection, including reasonable attorneys' fees and expenses) promptly upon receipt for deposit in a cash collateral account with the Lender.

 

The powers conferred upon the attorney-in-fact hereunder are solely to protect the interest in the Collateral of the Lender and shall not impose any duty upon any such attorney-in-fact to exercise any such powers.  The attorney-in-fact shall be accountable only for amounts that it actually receives as a result of the exercise of such powers and neither it nor any of its officers, directors, employees or agents shall be responsible to Assignor or any Project Company for any act or failure to act unless such action or failure to act constitutes gross negligence.

7.         Limitation on Lender’s Duty in Respect of Collateral.

 

(a)        Except as expressly provided in the Uniform Commercial Code under applicable law, the Lender shall have no duty as to any Collateral in its possession or control or in the possession or control of any agent or nominee of Lender or as to any income thereon or as to the preservation of rights against prior parties or any other rights pertaining thereto.

 

(b)        The powers conferred upon the Lender by this Assignment are to protect its interest in the Collateral and shall not impose any duty upon the Lender to exercise any such powers.  The Assignor hereby agrees that the Lender shall not be liable for, nor shall the indebtedness evidenced by the Obligations be diminished by, the Lender’s delay or failure to collect upon, foreclose, sell, take possession of or otherwise obtain value for the Collateral.

 

(c)        Except as may be required by the provisions hereunder, and to the fullest extent permitted by applicable law, the Lender shall be under no duty whatsoever to make or give any presentment, notice of dishonor, protest, demand for performance, notice of non-performance, notice of intent to accelerate, notice of acceleration, or other notice or demand in connection with any Collateral or the Obligations, or to take any steps necessary to preserve any rights against Borrower or other person.  The Assignor waives any right of marshaling in respect of any and all Collateral, and waives any right to require the Lender to proceed against Borrower or other person, exhaust any Collateral or enforce any other remedy which the Lender now has or may hereafter have against Borrower or other person.

 

(d)        The security interests are granted as security only and shall not subject the Lender to, or transfer or in any way, affect or modify, any obligation or liability of the Assignor with respect to any of the Collateral or any transaction in connection therewith.  The Assignor shall remain liable under each Project Company Operating Agreement to the extent set forth therein to perform its duties and obligations thereunder to the same extent as if this Assignment had not been executed.  The exercise by the Lender of any of its rights hereunder shall not release the Assignor from any of its duties or obligations under any Project Company Operating Agreement, and the Lender shall not have any obligation or liability under the any Project Company Operating Agreement by reason of this Assignment or otherwise, nor shall the Lender be obligated to perform any of the obligations or duties of the Assignor thereunder, to make any payment, to make any inquiry as to the nature or sufficiency of any payment received by the Assignor or the Lender or the sufficiency of any performance by any party under any Project Company Operating Agreement or to take any action to collect or enforce any claim for payment assigned hereunder.  The Lender shall not by reason of this Assignment or the exercise of any

 

	
Execution Form

	
7

	
Assignment of Member Interests / 

Coronus Energy Corp.

 

  

  

  

remedies hereunder become responsible or liable in any manner or to any extent for the obligations and liabilities of Borrower or any Project Company, whether now existing or hereafter incurred. The Assignor specifically understands and agrees that the Lender shall have no responsibility for (i) collecting or protecting any income, earnings, or proceeds with regard to the Collateral, (ii) preserving any of the Assignor’s rights against parties to the Collateral or against third persons, (iii) ascertaining any maturities, calls, conversion rights, exchanges, offers, tenders or similar matters relating to the Collateral, or (iv) informing the Assignor about any of these matters, whether or not the Lender actually has or is deemed to have knowledge thereof.

 

8.         Notices.  All notices provided under this Assignment will be in writing and will be transmitted in the manner and to the addresses required by the Note, the Stock Purchase Agreement to be entered into between the Lender and Coronus Solar (the “Stock Purchase Agreement”), or to such other addresses as the Lender and Assignor may specify from time to time in writing.  Notice sent to Borrower and/or any Project Company in accordance with the requirements of the Stock Purchase Agreement shall be deemed notice to the Assignor under this Assignment.

 

9.         Miscellaneous.

 

(a)        Without limiting any other right of Lender, whenever Lender has the right to declare any Obligations to be immediately due and payable (whether or not is has so declared), Lender at its sole election, may set off against the Obligations any and all moneys then or thereafter owed to Assignor by Lender in any capacity, whether or not the Obligations or the obligation to pay such moneys owed by Lender are then due, and Lender shall be deemed to have exercised such right of set off immediately at the time of such election though any charge therefor is made or entered on Lender's records subsequent thereto.

 

(b)        No course of dealing between Assignor and Lender and no delay or omission by Lender in exercising any right or remedy hereunder or with respect to any Obligations shall operate as a waiver thereof or of any other right or remedy, and no single or partial exercise thereof shall preclude any other right or remedy. Lender may remedy any default by Assignor hereunder or with respect to any Obligations in any reasonable manner without waiving the default remedied and without waiving any other prior or subsequent default by Assignor.  All rights and remedies of Lender hereunder are cumulative.

 

(c)        The Assignor hereby waives any right to require that the Lender proceed against any real or personal property or any guaranty given as security for the Obligations whether or not now existing or hereafter given, before exercising its rights and remedies with respect to the Collateral.

 

(d)        Lender and Assignor as used herein shall include the heirs, executors or administrators, or successors, or assigns, of those parties.

 

(e)        No modification, rescission, waiver, release or amendment of any provision of this Assignment shall be made except by a written agreement subscribed by Assignor and by a duly authorized officer of Lender.

 

	
Execution Form

	
8

	
Assignment of Member Interests / 

Coronus Energy Corp.

 

  

  

  

(f)         This Assignment and the transaction evidenced hereby shall be construed under the laws of the State of California of the United States of America, as the same may from time to time be in effect.

 

(g)        This Assignment shall remain in full force and effect until all of the Obligations outstanding, or contracted or committed for (whether or not outstanding), shall be finally and irrevocably paid in full. If, after receipt of any payment of all or any part of the Obligations, Lender is for any reason compelled to surrender such payment to any person or entity, because such payment is determined to be void or voidable as a preference, impermissible set off, or a diversion of trust funds, or for any other reason, this Assignment shall continue in full force notwithstanding any contrary action which may have been taken by Lender in reliance upon such payment, and any such contrary action so taken shall be without prejudice to Lender's rights under this Assignment and shall be deemed to have been conditioned upon such payment having become final and irrevocable.

 

10.       Severability of Provisions.  Any provision of this Assignment which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions of this Assignment or affecting the validity or enforceability of such provision in any other jurisdiction.

 

11.       Headings.  The paragraph headings of this Assignment are included herein for convenience of reference only and shall not constitute a part of this Assignment for any other purpose.

 

12.       Counterparts.  This Assignment may be executed in counterparts, each of which, when taken together, shall be construed as one and the same instrument.

 

13.       Indemnity.  The Assignor agrees to indemnify and hold harmless the Lender, its officers, directors, employees and agents (the “Indemnified Parties”) from and against any and all claims, losses, penalties, fines, costs, damages and liabilities (including reasonable attorneys fees and expenses) (collectively, the “Claims”) growing out of or resulting from this Assignment (including, without limitation, enforcement hereof), except Claims resulting solely from the Indemnified Parties’ gross negligence or willful misconduct.  The indemnification of the Indemnified Parties as provided in this paragraph 13 shall remain in full force and effect if any such Claims or liabilities, directly or indirectly, result from, arise out of, or relate to, or are asserted to have resulted from, arisen out of or related to, the sole or contributory negligence (but not gross negligence) of the Indemnified Parties.  The provisions of this paragraph 13 shall survive the termination of this Assignment and the Loan.

 

14.       Conversion and Termination.  Assignor acknowledges that upon the closing and transfer by Coronus Solar of the outstanding share of Assignor to Lender, Lender shall convert the amount of the Loan then advanced into capital contributions to those Project Companies for which Loan advances have been made (the “Loan Conversion”). Upon the Loan Conversion the Lender’s obligation to make additional advances pursuant to the Loan shall terminate and this Assignment shall automatically terminate.  If the Loan Conversion does not occur, then upon the irrevocable payment and discharge of all of the Obligations (other than inchoate indemnity

 

	
Execution Form

	
9

	
Assignment of Member Interests / 

Coronus Energy Corp.

 

  

  

  

obligations), this Assignment shall automatically terminate and the Lender shall, at the expense of Borrower, terminate any financing statements with respect thereto filed by Lender.

 

15.       Waiver of Special Damages.  TO THE EXTENT PERMITTED BY APPLICABLE LAW, THE ASSIGNOR SHALL NOT ASSERT, AND HEREBY WAIVES, ANY CLAIM AGAINST LENDER, ON ANY THEORY OF LIABILITY, FOR SPECIAL, INDIRECT, CONSEQUENTIAL OR PUNITIVE DAMAGES (AS OPPOSED TO DIRECT OR ACTUAL DAMAGES) ARISING OUT OF, IN CONNECTION WITH, OR AS A RESULT OF, THIS ASSIGNMENT OR ANY AGREEMENT OR INSTRUMENT CONTEMPLATED HEREBY, THE TRANSACTIONS, THE LOAN OR THE USE OF THE PROCEEDS THEREOF.

 

16.       Jury Waiver.  ASSIGNOR AND LENDER (BY ITS ACCEPTANCE HEREOF) EACH HEREBY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS ASSIGNMENT OR THE TRANSACTIONS CONTEMPLATED HEREBY (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY).  ASSIGNOR AND LENDER (BY ITS ACCEPTANCE HEREOF) (A) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTY HERETO HAVE BEEN INDUCED TO ENTER INTO THE LOAN BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS SECTION.

 

[Signature Pages Follow]

	
Execution Form

	
10

	
Assignment of Member Interests / 

Coronus Energy Corp.

 

  

  

  

    IN WITNESS WHEREOF, Assignor has duly executed this Assignment as of the day and year first above written.

	  	
ASSIGNOR:

	  	  
	  	  	
CORONUS ENERGY CORP., a Delaware

	  	  	
corporation

	  	  	  	  
	  	  	
By:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Name:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Title:

	
President

	  	  	  	  
	  	  	  	  
	  	  	
CORONUS 29-PALMS NORTH 1 LLC, a

	  	  	
Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Name:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Title:

	
President

	  	  	  	  
	  	  	  	  
	  	  	
CORONUS 29-PALMS NORTH 2 LLC, a

	  	  	
Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Name:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Title:

	
President

	  	  	  	  
	  	  	  	  
	  	  	  	  
	  	  	
CORONUS 29-PALMS NORTH 3 LLC, a

	  	  	
Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
Jeff Thachuk

	
Execution Form

	
11

	
Assignment of Member Interests / 

Coronus Energy Corp.

 

  

  

  

	  	  	
Name:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Title:

	
President

	  	  	  	  
	  	  	  	  
	  	  	
CORONUS YUCCA VALLEY EAST 1 LLC, a

	  	  	
Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Name:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Title:

	
President

	  	  	  	  
	  	  	  	  
	  	  	
CORONUS YUCCA VALLEY EAST 2 LLC, a

	  	  	
Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Name:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Title:

	
President

	  	  	  	  
	  	  	  	  
	  	  	
CORONUS YUCCA VALLEY EAST 3LLC, a

	  	  	
Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Name:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Title:

	
President

	  	  	  	  
	  	  	  	  
	  	  	
CORONUS JOSHUA TREE EAST 1 LLC, a

	  	  	
Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Name:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Title:

	
President

	
Execution Form

	
12

	
Assignment of Member Interests / 

Coronus Energy Corp.

  

  

  

  

	  	  	
CORONUS JOSHUA TREE EAST 2 LLC, a

	  	  	
Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Name:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Title:

	
President

	  	  	  	  
	  	  	  	  
	  	  	
CORONUS JOSHUA TREE EAST 3 LLC, a

	  	  	
Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Name:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Title:

	
President

	  	  	  	  
	  	  	  	  
	  	  	
CORONUS JOSHUA TREE EAST 4 LLC, a

	  	  	
Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Name:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Title:

	
President

	  	  	  	  
	  	  	  	  
	  	  	
CORONUS JOSHUA TREE EAST 5 LLC, a

	  	  	
Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Name:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Title:

	
President

	  	  	  	  
	  	  	  	  
	  	  	
CORONUS APPLE VALLEY EAST 1 LLC, a

	  	  	
Delaware limited liability company

	
Execution Form

	
13

	
Assignment of Member Interests / 

Coronus Energy Corp.

  

  

  

  

	  	  	
By:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Name:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Title:

	
President

	  	  	  	  
	  	  	  	  
	  	  	
CORONUS APPLE VALLEY EAST 2 LLC, a

	  	  	
Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Name:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Title:

	
President

	  	  	  	  
	  	  	  	  
	  	  	
CORONUS ADELANTO WEST 1 LLC, a

	  	  	
Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Name:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Title:

	
President

	  	  	  	  
	  	  	  	  
	  	  	
CORONUS ADELANTO WEST 2 LLC, a

	  	  	
Delaware limited liability company

	  	  	  	  
	  	  	
By:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Name:

	
Jeff Thachuk

	  	  	  	  
	  	  	
Title:

	
President

	
Execution Form

	
14

	
Assignment of Member Interests / 

Coronus Energy Corp.

  

  

  

  

EXHIBIT A - Schedule of Owner and Project LLC's

Owner:             Coronus Energy Corporation

1100 - 1200 West 73rd Ave.

Vancouver, BC

Canada  V6P 6G5

Project LLCs:

	
1.  

	
Coronus 29-Palms North 1 LLC, a Delaware limited liability company

 

	
2.  

	
Coronus 29-Palms North 2 LLC, a Delaware limited liability company

 

	
3.  

	
Coronus 29-Palms North 3 LLC, a Delaware limited liability company

 

	
4.  

	
Coronus Yucca Valley East 1 LLC, a Delaware limited liability company

 

	
5.  

	
Coronus Yucca Valley East 2 LLC, a Delaware limited liability company

 

	
6.  

	
Coronus Yucca Valley East 3 LLC, a Delaware limited liability company

 

	
7.  

	
Coronus Joshua Tree East 1 LLC, a Delaware limited liability company

 

	
8.  

	
Coronus Joshua Tree East 2 LLC, a Delaware limited liability company

 

	
9.  

	
Coronus Joshua Tree East 3 LLC, a Delaware limited liability company

 

	
10.  

	
Coronus Joshua Tree East 4 LLC, a Delaware limited liability company

 

	
11.  

	
Coronus Joshua Tree East 5 LLC, a Delaware limited liability company

 

	
12.  

	
Coronus Apple Valley East 1 LLC, a Delaware limited liability company

 

	
13.  

	
Coronus Apple Valley East 2 LLC, a Delaware limited liability company

 

	
14.  

	
Coronus Adelanto West 1 LLC, a Delaware limited liability company

 

	
15.  

	
Coronus Adelanto West 2 LLC, a Delaware limited liability company

 

	
Execution Form

	
15

	
Assignment of Member Interests / 

Coronus Energy Corp.

  

  

  

  

EXHIBIT B – Project LLC Plant Names, Location, and Owner

	
Plant Name:

	
Coronus 29-Palms North 1

	
Street Address:

	
4502 Mesquite Springs Road

	
City, State, Zip

	
Twentynine Palms, CA  92277

	
County:

	
San Bernardino

	
Latitude:

	
34.1707

	
Longitude:

	
-116.073

	
Owner Legal Name:

	
Coronus 29-Palms North 1 LLC

	
EIN

	
80-0828038

	
Street Address:

	
1100 - 1200 West 73rd Ave.

	
City, State, Zip

	
Vancouver, BC  V6P 6G5

	
Country

	
Canada

	
Plant Name:

	
Coronus 29-Palms North 2

	
Street Address:

	
4502 Mesquite Springs Road

	
City, State, Zip

	
Twentynine Palms, CA  92277

	
County:

	
San Bernardino

	
Latitude:

	
34.1703

	
Longitude:

	
-116.0756

	
Owner Legal Name:

	
Coronus 29-Palms North 2 LLC

	
EIN

	
80-0836057

	
Street Address:

	
1100 - 1200 West 73rd Ave.

	
City, State, Zip

	
Vancouver, BC  V6P 6G5

	
Country

	
Canada

	
Plant Name:

	
Coronus 29-Palms North 3

	
Street Address:

	
4502 Mesquite Springs Road

	
City, State, Zip

	
Twentynine Palms, CA  92277

	
County:

	
San Bernardino

	
Latitude:

	
34.170573

	
Longitude:

	
-116.078145

	
Owner Legal Name:

	
Coronus 29-Palms North 3 LLC

	
EIN

	
36-4739496

	
Street Address:

	
1100 - 1200 West 73rd Ave.

	
City, State, Zip

	
Vancouver, BC  V6P 6G5

	
Country

	
Canada

	
Execution Form

	
16

	
Assignment of Member Interests / 

Coronus Energy Corp.

  

  

  

  

	
Plant Name:

	
Coronus Yucca Valley East 1

	
Street Address:

	
60097 Alta Loma Tr.

	
City, State, Zip

	
Joshua Tree, CA  92252

	
County:

	
San Bernardino

	
Latitude:

	
34.11969

	
Longitude:

	
-116.355914

	
Owner Legal Name:

	
Coronus Yucca Valley East 1 LLC

	
EIN

	
80-0835715

	
Street Address:

	
1100 - 1200 West 73rd Ave.

	
City, State, Zip

	
Vancouver, BC  V6P 6G5

	
Country

	
Canada

	
Plant Name:

	
Coronus Yucca Valley East 2

	
Street Address:

	
60097 Alta Loma Tr.

	
City, State, Zip

	
Joshua Tree, CA  92252

	
County:

	
San Bernardino

	
Latitude:

	
34.11848

	
Longitude:

	
-116.355656

	
Owner Legal Name:

	
Coronus Yucca Valley East 2 LLC

	
EIN

	
90-0874868

	
Street Address:

	
1100 - 1200 West 73rd Ave.

	
City, State, Zip

	
Vancouver, BC  V6P 6G5

	
Country

	
Canada

	
Plant Name:

	
Coronus Yucca Valley East 3

	
Street Address:

	
60097 Alta Loma Tr.

	
City, State, Zip

	
Joshua Tree, CA  92252

	
County:

	
San Bernardino

	
Latitude:

	
34.1178

	
Longitude:

	
-116.355658

	
Owner Legal Name:

	
Coronus Yucca Valley East 3 LLC

	
EIN

	
99-0383426

	
Street Address:

	
1100 - 1200 West 73rd Ave.

	
City, State, Zip

	
Vancouver, BC  V6P 6G5

	
Country

	
Canada

	
Execution Form

	
17

	
Assignment of Member Interests / 

Coronus Energy Corp.

  

  

  

  

	
Plant Name:

	
Coronus Joshua Tree East 1

	
Street Address:

	
6350 Mount Shasta Ave.

	
City, State, Zip

	
Joshua Tree, CA  92252

	
County:

	
San Bernardino

	
Latitude:

	
34.137889

	
Longitude:

	
-116.226089

	
Owner Legal Name:

	
Coronus Joshua Tree East 1 LLC

	
EIN

	
80-0842132

	
Street Address:

	
1100 - 1200 West 73rd Ave.

	
City, State, Zip

	
Vancouver, BC  V6P 6G5

	
Country

	
Canada

	
Plant Name:

	
Coronus Joshua Tree East 2

	
Street Address:

	
6350 Mount Shasta Ave.

	
City, State, Zip

	
Joshua Tree, CA  92252

	
County:

	
San Bernardino

	
Latitude:

	
34.139815

	
Longitude:

	
-116.226152

	
Owner Legal Name:

	
Coronus Joshua Tree East 2 LLC

	
EIN

	
99-0379528

	
Street Address:

	
1100 - 1200 West 73rd Ave.

	
City, State, Zip

	
Vancouver, BC  V6P 6G5

	
Country

	
Canada

	
Plant Name:

	
Coronus Joshua Tree East 3

	
Street Address:

	
6350 Mount Shasta Ave.

	
City, State, Zip

	
Joshua Tree, CA  92252

	
County:

	
San Bernardino

	
Latitude:

	
34.13737

	
Longitude:

	
-116.227244

	
Owner Legal Name:

	
Coronus Joshua Tree East 3 LLC

	
EIN

	
99-0379566

	
Street Address:

	
1100 - 1200 West 73rd Ave.

	
City, State, Zip

	
Vancouver, BC  V6P 6G5

	
Country

	
Canada

	
Execution Form

	
18

	
Assignment of Member Interests / 

Coronus Energy Corp.

  

  

  

  

	
Plant Name:

	
Coronus Joshua Tree East 4

	
Street Address:

	
6350 Mount Shasta Ave.

	
City, State, Zip

	
Joshua Tree, CA  92252

	
County:

	
San Bernardino

	
Latitude:

	
34.139815

	
Longitude:

	
-116.226152

	
Owner Legal Name:

	
Coronus Joshua Tree East 4 LLC

	
EIN

	
99-0381552

	
Street Address:

	
1100 - 1200 West 73rd Ave.

	
City, State, Zip

	
Vancouver, BC  V6P 6G5

	
Country

	
Canada

	
Plant Name:

	
Coronus Joshua Tree East 5

	
Street Address:

	
6350 Mount Shasta Ave.

	
City, State, Zip

	
Joshua Tree, CA  92252

	
County:

	
San Bernardino

	
Latitude:

	
34.13737

	
Longitude:

	
-116.227244

	
Owner Legal Name:

	
Coronus Joshua Tree East 5 LLC

	
EIN

	
98-1074488

	
Street Address:

	
1100 - 1200 West 73rd Ave.

	
City, State, Zip

	
Vancouver, BC  V6P 6G5

	
Country

	
Canada

	
Execution Form

	
19

	
Assignment of Member Interests / 

Coronus Energy Corp.

  

  

  

  

	
Plant Name:

	
Coronus Apple Valley East 1

	
Street Address:

	
10501 Central Road

	
City, State, Zip

	
Apple Valley, CA  92308

	
County:

	
San Bernardino

	
Latitude:

	
34.4417

	
Longitude:

	
-117.171

	
Owner Legal Name:

	
Coronus Apple Valley East 1 LLC

	
EIN

	
41-2282036

	
Street Address:

	
1100 - 1200 West 73rd Ave.

	
City, State, Zip

	
Vancouver, BC  V6P 6G5

	
Country

	
Canada

	
Plant Name:

	
Coronus Apple Valley East 2

	
Street Address:

	
10501 Central Road

	
City, State, Zip

	
Apple Valley, CA  92308

	
County:

	
San Bernardino

	
Latitude:

	
34.4404

	
Longitude:

	
-117.171

	
Owner Legal Name:

	
Coronus Apple Valley East 2 LLC

	
EIN

	
98-1074961

	
Street Address:

	
1100 - 1200 West 73rd Ave.

	
City, State, Zip

	
Vancouver, BC  V6P 6G5

	
Country

	
Canada

	
Execution Form

	
20

	
Assignment of Member Interests / 

Coronus Energy Corp.

  

  

  

  

	
Plant Name:

	
Coronus Adelanto West 1

	
Street Address:

	
8970 Cassia Road

	
City, State, Zip

	
Adelanto, CA  92301

	
County:

	
San Bernardino

	
Latitude:

	
34.5493

	
Longitude:

	
-117.465

	
Owner Legal Name:

	
Coronus Adelanto West 1 LLC

	
EIN

	
99-0381592

	
Street Address:

	
1100 - 1200 West 73rd Ave.

	
City, State, Zip

	
Vancouver, BC  V6P 6G5

	
Country

	
Canada

	
Plant Name:

	
Coronus Adelanto West 2

	
Street Address:

	
8970 Cassia Road

	
City, State, Zip

	
Adelanto, CA  92301

	
County:

	
San Bernardino

	
Latitude:

	
34.5478

	
Longitude:

	
-117.465

	
Owner Legal Name:

	
Coronus Adelanto West 2 LLC

	
EIN

	
39-2079889

	
Street Address:

	
1100 - 1200 West 73rd Ave.

	
City, State, Zip

	
Vancouver, BC  V6P 6G5

	
Country

	
Canada

	
Execution Form

	
21

	
Assignment of Member Interests / 

Coronus Energy Corp.

  

  

  

  

EXHIBIT C – Vacant Land Purchase Agreements

 

	
1)  

	
That certain Vacant Land Purchase Agreement by and between Coronus Energy Corp., a Delaware corporation, as Purchaser, and Donna Lachman, “The Hayashida Family Partnerships”, Sadako Hayashida, Kody Kodama, as Seller, dated November 14, 2012.

 

	
2)  

	
That certain Vacant Land Purchase Agreement by and between Coronus Energy Corp., a Delaware corporation, as Purchaser, and An Nhien Dai Nguyen and Anthony Nguyen, as Seller, dated December 8, 2012.

 

	
3)  

	
That certain Vacant Land Purchase Agreement by and between Coronus Energy Corp., a Delaware corporation, as Purchaser, and Clarence B Mc Gee Trust and Elsie A Mc Gee Trust, as Seller, pending execution.

 

 

 

 

 

 

 

 

	
Execution Form

	
22

	
Assignment of Member Interests / 

Coronus Energy Corp.

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00212-of-00352.parquet"}]]