Document:

pzg-ex101_6.htm

Exhibit 10.1

SECURITY AGREEMENT

This SECURITY AGREEMENT, dated as of September __, 2019 (as amended, supplemented or otherwise modified from time to time in accordance with the provisions hereof, this "Agreement"), made by and among Paramount Gold Nevada Corp., a Nevada Corporation (the "Grantor"), in favor of (in its capacity as collateral agent, for the benefit of the Holders of the Notes (defined below) the "Secured Party").

WHEREAS, the Grantor is borrowing up to $5.5 million in principal amount of Notes (as defined below); and

WHEREAS, this Agreement is given by the Grantor in favor of the Secured Party to secure the payment and performance of all of the Secured Obligations; and

WHEREAS, it is a condition to the obligations of the purchasers the Notes that the Grantor execute and deliver this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants, terms and conditions set forth herein, and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties agree as follows:

1.Definitions.

(a)Unless otherwise specified herein, all references to Sections and Schedules herein are to Sections and Schedules of this Agreement.

(b)Unless otherwise defined herein, terms used herein that are defined in the UCC shall have the meanings assigned to them in the UCC. However, if a term is defined in Article 9 of the UCC differently than in another Article of the UCC, the term has the meaning specified in Article 9.

(c)For purposes of this Agreement, the following terms shall have the following meanings:

"Collateral" has the meaning set forth in Section 2.

"Equity Interests" means all of the shares, interests, rights, participations or other equivalents (however designated) of securities of the Grantor, including warrants, options or other rights for the purchase or acquisition from the Grantor, and all of the other ownership or profit interests of the Grantor (including partnership, member or trust interests therein), whether voting or nonvoting.

"Event of Default" has the meaning set forth in the Notes.

"First Priority" means, with respect to any lien and security interest purported to be created in any Collateral pursuant to this Agreement, such lien and security interest is the most senior lien to which such Collateral is subject (subject only to liens permitted under the Notes).

“Notes” means those certain Senior Secured Convertibles Notes of the Grantor issued on or about the date hereof in the aggregate principal amount of $_____________, together with any Additional Notes (as defined therein).

 

 

 

 

"Perfection Certificate" has the meaning set forth in Section 5.

"Proceeds" means "proceeds" as such term is defined in section 9-102 of the UCC and, in any event, shall include, without limitation, all dividends or other income from the Collateral, collections thereon or distributions with respect thereto.

"Secured Obligations" has the meaning set forth in Section 3.

"UCC" means the Uniform Commercial Code as in effect from time to time in the State of New York or, when the laws of any other state govern the method or manner of the perfection or enforcement of any security interest in any of the Collateral, the Uniform Commercial Code as in effect from time to time in such state.

2.Grant of Security Interest. The Grantor hereby pledges and grants to the Secured Party, and hereby creates a continuing First Priority lien and security interest in favor of the Secured Party in and to all of its right, title and interest in and to the following, wherever located, whether now existing or hereafter from time to time arising or acquired (collectively, the "Collateral"): 

(a)all fixtures and property of every kind and nature including all accounts, goods (including inventory and equipment), documents (including, if applicable, electronic documents), instruments, promissory notes, chattel paper (whether tangible or electronic), letters of credit, letter-of-credit rights (whether or not the letter of credit is evidenced by a writing), securities and all other investment property, commercial tort claims described on Schedule 1 hereof as supplemented by any written notification given by the Grantor to the Secured Party pursuant to Section 4(e), general intangibles (including all payment intangibles), money, deposit accounts, and any other contract rights or rights to the payment of money; and 

(b)all Proceeds and products of each of the foregoing, all books and records relating to the foregoing, all supporting obligations related thereto, and all accessions to, substitutions and replacements for, and rents, profits and products of, each of the foregoing, and any and all Proceeds of any indemnity, warranty or guaranty payable to the Grantor from time to time with respect to any of the foregoing.

3.Secured Obligations. The Collateral secures the due and prompt payment and performance of:

(a)the obligations of the Grantor from time to time arising under the Notes, this Agreement or otherwise with respect to the due and prompt payment of (i) the principal of and premium, if any, and interest on the Notes (including interest accruing during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), when and as due, whether at maturity, by acceleration, upon one or more dates set for prepayment or otherwise and (ii) all other monetary obligations, including fees, costs, attorneys' fees and disbursements, reimbursement obligations, contract causes 

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of action, expenses and indemnities, whether primary, secondary, direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, fixed or otherwise (including monetary obligations incurred during the pendency of any bankruptcy, insolvency, receivership or other similar proceeding, regardless of whether allowed or allowable in such proceeding), of the Grantor under or in respect of the Notes and this Agreement; and

(b)all other covenants, duties, debts, obligations and liabilities of any kind of the Grantor under the Notes, this Agreement or any other document made, delivered or given in connection with any of the foregoing, in each case whether evidenced by a note or other writing, whether allowed in any bankruptcy, insolvency, receivership or other similar proceeding, whether arising from an extension of credit, issuance of a letter of credit, acceptance, loan, guaranty, indemnification or otherwise, and whether primary, secondary, direct or indirect, absolute or contingent, due or to become due, now existing or hereafter arising, fixed or otherwise (all such obligations, covenants, duties, debts, liabilities, sums and expenses set forth in Section 3 being herein collectively called the "Secured Obligations").

4.Perfection of Security Interest and Further Assurances.

(a)The Grantor shall, from time to time, as may be required by the Secured Party with respect to all Collateral, immediately take all actions as may be requested by the Secured Party to perfect the security interest of the Secured Party in the Collateral, including, without limitation, with respect to all Collateral over which control may be obtained within the meaning of sections 8-106, 9-104, 9-105, 9-106 and 9-107 of the UCC, as applicable, the Grantor shall immediately take all actions as may be requested from time to time by the Secured Party so that control of such Collateral is obtained and at all times held by the Secured Party. All of the foregoing shall be at the sole cost and expense of the Grantor.

(b)The Grantor hereby irrevocably authorizes the Secured Party at any time and from time to time to file in any relevant jurisdiction any financing statements and amendments thereto that contain the information required by Article 9 of the UCC of each applicable jurisdiction for the filing of any financing statement or amendment relating to the Collateral, including any financing or continuation statements or other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest granted by the Grantor hereunder, without the signature of the Grantor where permitted by law, including the filing of a financing statement describing the Collateral as all assets now owned or hereafter acquired by the Grantor, or words of similar effect. The Grantor agrees to provide all information required by the Secured Party pursuant to this Section promptly to the Secured Party upon request.

(c)The Grantor hereby further authorizes the Secured Party to file with the United States Patent and Trademark Office and the United States Copyright Office (and any successor office and any similar office in any state of the United States or in any other country) this Agreement and other documents for the purpose of perfecting, confirming, continuing, enforcing or protecting the security interest granted by the Grantor hereunder, without the signature of the Grantor where permitted by law.

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(d)If the Grantor shall at any time hold or acquire any certificated securities, promissory notes, tangible chattel paper, negotiable documents or warehouse receipts relating to the Collateral, the Grantor shall immediately endorse, assign and deliver the same to the Secured Party, accompanied by such instruments of transfer or assignment duly executed in blank as the Secured Party may from time to time specify.

(e)If the Grantor shall at any time hold or acquire a commercial tort claim, the Grantor shall (i) immediately notify the Secured Party in a writing signed by the Grantor of the particulars thereof and grant to the Secured Party in such writing a security interest therein and in the proceeds thereof, all upon the terms of this Agreement, with such writing to be in form and substance satisfactory to the Secured Party and (ii) deliver to the Secured Party an updated Schedule 1.

(f)If any Collateral is at any time in the possession of a bailee, the Grantor shall promptly notify the Secured Party thereof and, at the Secured Party's request and option, shall promptly obtain an acknowledgment from the bailee, in form and substance satisfactory to the Secured Party, that the bailee holds such Collateral for the benefit of the Secured Party and the bailee agrees to comply, without further consent of the Grantor, at any time with instructions of the Secured Party as to such Collateral.

(g)The Grantor agrees that at any time and from time to time, at the expense of the Grantor, the Grantor will promptly execute and deliver all further instruments and documents, obtain such agreements from third parties, and take all further action, that may be necessary or desirable, or that the Secured Party may reasonably request, in order to create and/or maintain the validity, perfection or priority of and protect any security interest granted or purported to be granted hereby or to enable the Secured Party to exercise and enforce its rights and remedies hereunder or under any other agreement with respect to any Collateral.

5.Representations and Warranties. The Grantor represents and warrants as follows:

(a)It has previously delivered to the Secured Party a certificate signed by the Grantor and entitled "Perfection Certificate" ("Perfection Certificate"), and that: (i) the Grantor's exact legal name is that indicated on the Perfection Certificate and on the signature page hereof, (ii) the Grantor is an organization of the type, and is organized in the jurisdiction, set forth in the Perfection Certificate, (iii) the Perfection Certificate accurately sets forth the Grantor's organizational identification number (or accurately states that the Grantor has none), the Grantor's place of business (or, if more than one, its chief executive office), and its mailing address, (iv) all other information set forth on the Perfection Certificate relating to the Grantor is accurate and complete and (v) there has been no change in any such information since the date on which the Perfection Certificate was signed by the Grantor.

(b)All information set forth on the Perfection Certificate relating to the Collateral is accurate and complete and there has been no change in any such information since the date on which the Perfection Certificate was signed by the Grantor.

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(c)The Collateral consisting of securities have been duly authorized and validly issued, and are fully paid and non-assessable and subject to no options to purchase or similar rights. The Grantor holds no commercial tort claims except as indicated on Schedule 1. None of the Collateral constitutes, or is the proceeds of, (i) farm products, (ii) as-extracted collateral, (iii) manufactured homes, (iv) health-care-insurance receivables, (v) timber to be cut, (vi) aircraft, aircraft engines, satellites, ships or railroad rolling stock. None of the account debtors or other persons obligated on any of the Collateral is a governmental authority covered by the Federal Assignment of Claims Act or like federal, state or local statute or rule in respect of such Collateral. The Grantor has at all times operated its business in compliance with all applicable provisions of the federal Fair Labor Standards Act, as amended, and with all applicable provisions of federal, state and local statutes and ordinances dealing with the control, shipment, storage or disposal of hazardous materials or substances.

(d)At the time the Collateral becomes subject to the lien and security interest created by this Agreement, the Grantor will be the sole, direct, legal and beneficial owner thereof, free and clear of any lien, security interest, encumbrance, claim, option or right of others except for the security interest created by this Agreement and other liens permitted by the Notes.

(e)The pledge of the Collateral pursuant to this Agreement creates a valid and perfected First Priority security interest in the Collateral, securing the payment and performance when due of the Secured Obligations.

(f)It has full power, authority and legal right to issue the Notes and pledge the Collateral pursuant to this Agreement.

(g)Each of this Agreement and each Note has been duly authorized, executed and delivered by the Grantor and constitutes a legal, valid and binding obligation of the Grantor enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization, moratorium or other similar laws affecting creditors' rights generally and subject to equitable principles (regardless of whether enforcement is sought in equity or at law).

(h)No authorization, approval, or other action by, and no notice to or filing with, any governmental authority or regulatory body is required for the borrowing of the Loans and the pledge by the Grantor of the Collateral pursuant to this Agreement or for the execution and delivery of the Notes and this Agreement by the Grantor or the performance by the Grantor of its obligations thereunder. 

(i)The execution and delivery of the Notes and this Agreement by the Grantor and the performance by the Grantor of its obligations thereunder, will not violate any provision of any applicable law or regulation or any order, judgment, writ, award or decree of any court, arbitrator or governmental authority, domestic or foreign, applicable to the Grantor or any of its property, or the organizational or governing documents of the Grantor or any agreement or instrument to which the Grantor is party or by which it or its property is bound.

(j)The Grantor has taken all action required on its part for control (as defined in sections 8-106, 9-104, 9-105, 9-106 and 9-107 of the UCC, as applicable) 

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to have been obtained by the Secured Party over all Collateral with respect to which such control may be obtained pursuant to the UCC. No person other than the Secured Party has control or possession of all or any part of the Collateral.

6.Voting, Distributions and Receivables.

(a)The Secured Party agrees that unless an Event of Default shall have occurred and be continuing, the Grantor may, to the extent the Grantor has such right as a holder of the Collateral consisting of securities, other Equity Interests or indebtedness owed by any obligor, vote and give consents, ratifications and waivers with respect thereto, except to the extent that, in the Secured Party's reasonable judgment, any such vote, consent, ratification or waiver would detract from the value thereof as Collateral or which would be inconsistent with or result in any violation of any provision of the Notes or this Agreement, and from time to time, upon request from the Grantor, the Secured Party shall deliver to the Grantor suitable proxies so that the Grantor may cast such votes, consents, ratifications and waivers.

(b)The Secured Party agrees that the Grantor may, unless an Event of Default shall have occurred and be continuing, receive and retain all cash dividends and other distributions with respect to the Collateral consisting of securities, other Equity Interests or indebtedness owed by any obligor.

(c)If any Event of Default shall have occurred and be continuing, the Secured Party may, or at the request and option of the Secured Party the Grantor shall, notify account debtors and other persons obligated on any of the Collateral of the security interest of the Secured Party in any account, chattel paper, general intangible, instrument or other Collateral and that payment thereof is to be made directly to the Secured Party.

7.Covenants. The Grantor covenants as follows:

(a)The Grantor will not, without providing at least 30 days' prior written notice to the Secured Party, change its legal name, identity, type of organization, jurisdiction of organization, corporate structure, location of its chief executive office or its principal place of business or its organizational identification number. The Grantor will, prior to any change described in the preceding sentence, take all actions reasonably requested by the Secured Party to maintain the perfection and priority of the Secured Party's security interest in the Collateral.

(b)The Collateral, to the extent not delivered to the Secured Party pursuant to Section 4, will be kept at those locations listed on the Perfection Certificate and the Grantor will not remove the Collateral from such locations without providing at least 30 days' prior written notice to the Secured Party. The Grantor will, prior to any change described in the preceding sentence, take all actions reasonably required by the Secured Party to maintain the perfection and priority of the Secured Party's security interest in the Collateral.

(c)The Grantor shall, at its own cost and expense, defend title to the Collateral and the First Priority lien and security interest of the Secured Party therein against the claim of any person claiming against or through the Grantor and shall 

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maintain and preserve such perfected First Priority security interest for so long as this Agreement shall remain in effect.

(d)The Grantor will not sell, offer to sell, dispose of, convey, assign or otherwise transfer, grant any option with respect to, restrict, or grant, create, permit or suffer to exist any mortgage, pledge, lien, security interest, option, right of first offer, encumbrance or other restriction or limitation of any nature whatsoever on, any of the Collateral or any interest therein except as expressly provided for in the Notes or with the prior written consent of the Secured Party.

(e)The Grantor will keep the Collateral in good order and repair and will not use the same in violation of law or any policy of insurance thereon. The Grantor will permit the Secured Party, or its designee, to inspect the Collateral at any reasonable time, wherever located.

(f)The Grantor will pay promptly when due all taxes, assessments, governmental charges, and levies upon the Collateral or incurred in connection with the use or operation of the Collateral or incurred in connection with this Agreement.

(g)The Grantor will continue to operate its business in compliance with all applicable provisions of the federal Fair Labor Standards Act, as amended, and with all applicable provisions of federal, state and local statutes and ordinances dealing with the control, shipment, storage or disposal of hazardous materials or substances.

8.Secured Party Appointed Attorney-in-Fact. The Grantor hereby appoints the Secured Party the Grantor's attorney-in-fact, with full authority in the place and stead of the Grantor and in the name of the Grantor or otherwise, from time to time during the continuance of an Event of Default in the Secured Party's discretion to take any action and to execute any instrument which the Secured Party may deem necessary or advisable to accomplish the purposes of this Agreement (but the Secured Party shall not be obligated to and shall have no liability to the Grantor or any third party for failure to do so or take action). This appointment, being coupled with an interest, shall be irrevocable. The Grantor hereby ratifies all that said attorneys shall lawfully do or cause to be done by virtue hereof. 

9.Secured Party May Perform. If the Grantor fails to perform any obligation contained in this Agreement, the Secured Party may itself perform, or cause performance of, such obligation, and the expenses of the Secured Party incurred in connection therewith shall be payable by the Grantor; provided that the Secured Party shall not be required to perform or discharge any obligation of the Grantor.

10.Reasonable Care. The Secured Party shall have no duty with respect to the care and preservation of the Collateral beyond the exercise of reasonable care. The Secured Party shall be deemed to have exercised reasonable care in the custody and preservation of the Collateral in its possession if the Collateral is accorded treatment substantially equal to that which the Secured Party accords its own property, it being understood that the Secured Party shall not have any responsibility for (a) ascertaining or taking action with respect to any claims, the nature or sufficiency of any payment or performance by any party under or pursuant to any agreement relating to the Collateral or other matters relative to any Collateral, whether or not the Secured Party has or is deemed to have knowledge of such matters, or (b) taking any necessary steps to preserve rights against any parties with respect to any 

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Collateral. Nothing set forth in this Agreement, nor the exercise by the Secured Party of any of the rights and remedies hereunder, shall relieve the Grantor from the performance of any obligation on the Grantor's part to be performed or observed in respect of any of the Collateral.

11.Remedies Upon Default.

(a)If any Event of Default shall have occurred and be continuing, the Secured Party, without any other notice to or demand upon the Grantor, may assert all rights and remedies of a secured party under the UCC or other applicable law, including, without limitation, the right to take possession of, hold, collect, sell, lease, deliver, grant options to purchase or otherwise retain, liquidate or dispose of all or any portion of the Collateral. If notice prior to disposition of the Collateral or any portion thereof is necessary under applicable law, written notice mailed to the Grantor at its notice address as provided in Section 15 hereof ten days prior to the date of such disposition shall constitute reasonable notice. So long as the sale of the Collateral is made in a commercially reasonable manner, the Secured Party may sell such Collateral on such terms and to such purchaser(s) as the Secured Party in its absolute discretion may choose, without assuming any credit risk and without any obligation to advertise or give notice of any kind other than that necessary under applicable law. Without precluding any other methods of sale, the sale of the Collateral or any portion thereof shall have been made in a commercially reasonable manner if conducted in conformity with reasonable commercial practices of creditors disposing of similar property. At any sale of the Collateral, if permitted by applicable law, the Secured Party may be the purchaser, licensee, assignee or recipient of the Collateral or any part thereof and shall be entitled, for the purpose of bidding and making settlement or payment of the purchase price for all or any portion of the Collateral sold, assigned or licensed at such sale, to use and apply any of the Secured Obligations as a credit on account of the purchase price of the Collateral or any part thereof payable at such sale. To the extent permitted by applicable law, the Grantor waives all claims, damages and demands it may acquire against the Secured Party arising out of the exercise by it of any rights hereunder. The Grantor hereby waives and releases to the fullest extent permitted by law any right or equity of redemption with respect to the Collateral, whether before or after sale hereunder, and all rights, if any, of marshalling the Collateral and any other security for the Secured Obligations or otherwise. At any such sale, unless prohibited by applicable law, the Secured Party or any custodian may bid for and purchase all or any part of the Collateral so sold free from any such right or equity of redemption. Neither the Secured Party nor any custodian shall be liable for failure to collect or realize upon any or all of the Collateral or for any delay in so doing, nor shall it be under any obligation to take any action whatsoever with regard thereto. The Grantor agrees that it would not be commercially unreasonable for the Secured Party to dispose of the Collateral or any portion thereof by utilizing internet sites that provide for the auction of assets of the type included in the Collateral or that have the reasonable capability of doing so, or that match buyers and sellers of assets. The Secured Party shall not be obligated to clean-up or otherwise prepare the Collateral for sale.

(b)If any Event of Default shall have occurred and be continuing, all rights of the Grantor to (i) exercise the voting and other consensual rights it would otherwise be entitled to exercise pursuant to Section 6(a) and (ii) receive the 

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dividends and other distributions which it would otherwise be entitled to receive and retain pursuant to Section 6(b), shall immediately cease, and all such rights shall thereupon become vested in the Secured Party, which shall have the sole right to exercise such voting and other consensual rights and receive and hold such dividends and other distributions as Collateral.

(c)If any Event of Default shall have occurred and be continuing, any cash held by the Secured Party as Collateral and all cash Proceeds received by the Secured Party in respect of any sale of, collection from, or other realization upon all or any part of the Collateral shall be applied in whole or in part by the Secured Party to the payment of expenses incurred by the Secured Party in connection with the foregoing or incidental to the care or safekeeping of any of the Collateral or in any way relating to the Collateral or the rights of the Secured Party hereunder, including reasonable attorneys' fees, and the balance of such proceeds shall be applied or set off against all or any part of the Secured Obligations in such order as the Secured Party shall elect. Any surplus of such cash or cash Proceeds held by the Secured Party and remaining after payment in full of all the Secured Obligations shall be paid over to the Grantor or to whomsoever may be lawfully entitled to receive such surplus. The Grantor shall remain liable for any deficiency if such cash and the cash Proceeds of any sale or other realization of the Collateral are insufficient to pay the Secured Obligations and the fees and other charges of any attorneys employed by the Secured Party to collect such deficiency.

(d)If the Secured Party shall determine to exercise its rights to sell all or any of the Collateral pursuant to this Section, the Grantor agrees that, upon request of the Secured Party, the Grantor will, at its own expense, do or cause to be done all such acts and things as may be necessary to make such sale of the Collateral or any part thereof valid and binding and in compliance with applicable law.

12.No Waiver and Cumulative Remedies. The Secured Party shall not by any act (except by a written instrument pursuant to Section 14), delay, indulgence, omission or otherwise be deemed to have waived any right or remedy hereunder or to have acquiesced in any Default or Event of Default. All rights and remedies herein provided are cumulative and are not exclusive of any rights or remedies provided by law.

13.SECURITY INTEREST ABSOLUTE. The Grantor hereby waives demand, notice, protest, notice of acceptance of this Agreement, notice of loans made, credit extended, Collateral received or delivered or other action taken in reliance hereon and all other demands and notices of any description. All rights of the Secured Party and liens and security interests hereunder, and all Secured Obligations of the Grantor hereunder, shall be absolute and unconditional irrespective of: 

(a)any illegality or lack of validity or enforceability of any Secured Obligation or any related agreement or instrument;

(b)any change in the time, place or manner of payment of, or in any other term of, the Secured Obligations, or any rescission, waiver, amendment or other modification of the Notes, this Agreement or any other agreement, including any increase in the Secured Obligations resulting from any extension of additional credit or otherwise;

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(c)any taking, exchange, substitution, release, impairment or non-perfection of any Collateral or any other collateral, or any taking, release, impairment, amendment, waiver or other modification of any guaranty, for all or any of the Secured Obligations;

(d)any manner of sale, disposition or application of proceeds of any Collateral or any other collateral or other assets to all or part of the Secured Obligations;

(e)any default, failure or delay, willful or otherwise, in the performance of the Secured Obligations;

(f)any defense, set-off or counterclaim (other than a defense of payment or performance) that may at any time be available to, or be asserted by, the Grantor against the Secured Party; or

(g)any other circumstance (including, without limitation, any statute of limitations) or manner of administering the Loans or any existence of or reliance on any representation by the Secured Party that might vary the risk of the Grantor or otherwise operate as a defense available to, or a legal or equitable discharge of, the Grantor or any other grantor, guarantor or surety.

14.Amendments. None of the terms or provisions of this Agreement may be amended, modified, supplemented, terminated or waived, and no consent to any departure by the Grantor therefrom shall be effective unless the same shall be in writing and signed by the Secured Party and the Grantor, and then such amendment, modification, supplement, waiver or consent shall be effective only in the specific instance and for the specific purpose for which made or given.

15.Addresses For Notices. All notices and other communications provided for in this Agreement shall be in writing and shall be given in the manner and become effective as set forth in the Notes, and addressed to the respective parties at their addresses as specified on the signature pages hereof or as to either party at such other address as shall be designated by such party in a written notice to each other party.

16.Continuing Security Interest; Further Actions. This Agreement shall create a continuing First Priority lien and security interest in the Collateral and shall (a) subject to Section 17, remain in full force and effect until payment and performance in full of the Secured Obligations, (b) be binding upon the Grantor, its successors and assigns, and (c) inure to the benefit of the Secured Party and its successors, transferees and assigns; provided that the Grantor may not assign or otherwise transfer any of its rights or obligations under this Agreement without the prior written consent of the Secured Party.  Without limiting the generality of the foregoing clause (c), any assignee of the Secured Party's interest in any agreement or document which includes all or any of the Secured Obligations shall, upon assignment of the Notes, become vested with all the benefits granted to the Secured Party herein with respect to such Secured Obligations.

17.Termination; Release. On the date on which all Secured Obligations have been paid and performed in full which, for the avoidance of doubt, shall include the conversion of the Secured Obligations in full either upon either a mandatory conversion or optional conversion of the Secured Obligations into shares of the Grantor’s common stock, the 

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Secured Party will(a) duly assign, transfer and deliver to or at the direction of the Grantor (without recourse and without any representation or warranty) such of the Collateral as may then remain in the possession of the Secured Party, together with any monies at the time held by the Secured Party hereunder, and (b) execute and deliver to the Grantor a proper instrument or instruments acknowledging the satisfaction and termination of this Agreement. 

18.GOVERNING LAW. This Agreement and any claim, controversy, dispute or cause of action (whether in contract or tort or otherwise) based upon, arising out of or relating to this Agreement and the transactions contemplated hereby and thereby shall be governed by, and construed in accordance with, the laws of the State of New York. 

19.Counterparts. This Agreement and any amendments, waivers, consents or supplements hereto may be executed in counterparts (and by different parties hereto in different counterparts), each of which shall constitute an original, but all taken together shall constitute a single contract. Delivery of an executed counterpart of a signature page to this Agreement by facsimile or in electronic (i.e., "pdf" or "tif") format shall be effective as delivery of a manually executed counterpart of this Agreement. This Agreement constitutes the entire contract among the parties with respect to the subject matter hereof and supersede all previous agreements and understandings, oral or written, with respect thereto.

[signature page follows]

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first above written.

	
 
	
PARAMOUNT GOLD NEVADA CORP., as Grantor

	
 
	
By_____________________

Name:

Title:

 

 

	
 
	
SPROTT PRIVATE RESOURCE LENDING II (COLLECTOR), LP, as Secured Party

	
 
	
By_____________________

Name:

Title:

200 Bay Street, Suite 2600
Toronto, Ontario  M5J 2J2

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

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Schedule 1

COMMERCIAL TORT CLAIMS

None.

13Exhibit 10.1

Exhibit 10.1

FIFTH AMENDMENT TO OFFICE BUILDING LEASE AGREEMENT
(Sunnova Energy Corporation – 20 Greenway Plaza)
THIS FIFTH AMENDMENT TO OFFICE BUILDING LEASE AGREEMENT (this "Fifth Amendment") is dated effective and for identification purposes as of September 12, 2019 (the "Effective Date"), and is made by and between SCP 20 GREENWAY, LLC, a Delaware limited liability company ("Landlord"), and SUNNOVA ENERGY CORPORATION, a Delaware corporation ("Tenant").
RECITALS:
WHEREAS, Landlord (as successor-in-interest to 20 Greenway Plaza LLC, a Delaware limited liability company ("Original Landlord")) and Tenant are parties to that certain Office Building Lease Agreement (the "Original Lease") dated August 29, 2014, as amended by that certain First Amendment to Office Building Lease Agreement (the "First Amendment") dated May 18, 2015, that certain Second Amendment to Office Building Lease Agreement (the "Second Amendment") dated June 1, 2015, that certain Third Amendment to Office Building Lease Agreement (the "Third Amendment") dated November 15, 2018, and that certain Fourth Amendment to Office Building Lease Agreement (the "Fourth Amendment") dated May 7, 2019 (collectively, the "Lease"), pertaining to that certain premises comprised of a total of approximately 71,732 rentable square feet of space (the "Existing Premises") within that certain building located at 20 East Greenway Plaza, Houston, Texas 77046 (the "Building"), as follows:
	
		
	Suite
	Rentable Square Feet

	Suite 350
	Approx. 2,850 rentable square feet

	Suite 400
	Approx. 11,214 rentable square feet

	Suite 475
	Approx. 19,894 rentable square feet

	Suite 540
	Approx. 18,280 rentable square feet

	Suite 750
	Approx. 19,494 rentable square feet

WHEREAS, Tenant executed that certain Confirmation dated December 11, 2014, in connection with the Original Lease;
WHEREAS, pursuant to the First Amendment, Tenant also leases that certain one (1) rack encompassing thirty-two (32) square feet in the raised floor independent HVAC data room space on the third (3rd) floor of the Building (the "Rack Space");
WHEREAS, Tenant has subleased Suite 350 to GCC Bunkers LLC, a Separate Series of Gulf Coast Commodities LLC, a Texas Series Limited Liability Company ("Subtenant"), pursuant to that certain Sublease Agreement dated May 8, 2017, as amended by that certain Amendment to Sublease Agreement dated April 20, 2018 (collectively, the "Sublease"), subject to that certain Consent to Sublease Agreement dated May 2, 2017, executed by Original Landlord, Tenant and Subtenant.  Subtenant currently subleases Suite 350 on a month-to-month basis;

WHEREAS, the Lease by its terms shall expire on July 31, 2022 (the "Prior Expiration Date");
WHEREAS, Landlord and Tenant desire to reduce the Existing Premises by removing Suite 350 (the "Reduction Space") from the Existing Premises effective as of the Prior Expiration Date as more fully set forth herein; and
WHEREAS, Landlord and Tenant desire to enter into this Fifth Amendment to extend the Lease Term with respect to that portion of the Existing Premises other than the Reduction Space (i.e., Suite 400, Suite 475, Suite 540 and Suite 750) (collectively, the "Remaining Space") and provide for certain other matters as more fully set forth herein.
NOW, THEREFORE, in consideration of the foregoing and the mutual covenants contained herein, the parties agree that the Lease shall be amended in accordance with the terms and conditions set forth below.
1.    Definitions.  The capitalized terms used herein shall have the same definitions as set forth in the Lease, unless otherwise defined herein.
2.    Extension for Remaining Space.  The Lease Term for the Remaining Space is hereby extended for a period of eighty-four (84) months (the "Extended Term"), commencing on the date immediately following the Prior Expiration Date (i.e., August 1, 2022) (the "Extension Date"), and expiring on July 31, 2029, unless sooner terminated in accordance with the terms of the Lease, as amended by this Fifth Amendment (collectively, the "Amended Lease").  No such extension shall operate to release Tenant from liability for any amounts owed or defaults which exist under the Amended Lease prior to the Extension Date.
3.    Reduction.
(a)    Expiration of Reduction Space.  Landlord and Tenant acknowledge and agree that the extension set forth in Section 2 above shall apply to the Remaining Space only, and the Lease Term for the Reduction Space shall continue to expire on the Prior Expiration Date or the earlier termination of the Amended Lease.  Accordingly, effective as of the date immediately following the Prior Expiration Date (i.e., August 1, 2022) (the "Reduction Effective Date"), the Existing Premises shall be decreased from a total of approximately 71,732 rentable square feet to approximately 68,882 rentable square feet by the elimination of the Reduction Space.  Effective as of the Reduction Effective Date, the term "Premises," as defined in the Lease, shall be deemed to mean the Remaining Space, subject to the terms and conditions of this Section 3.
(b)    Survival of Obligations.  Effective as of the Prior Expiration Date, all obligations of the parties with respect to Suite 350 only shall cease and terminate in the same manner as upon expiration of the Lease Term; provided, however, that Tenant shall remain liable hereunder for all obligations and liabilities which accrue under the Amended Lease as it relates to Suite 350 through the Prior Expiration Date, including, without limitation, Tenant's obligation to pay Base Rent and Tenant's Proportionate Share of Operating Expenses.  Any such amounts not due and payable prior to the Reduction Effective Date, but which relate to the period prior to the Reduction 

	
			
	 
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Effective Date, shall be paid by Tenant to Landlord within ten (10) days of Tenant's receipt of an invoice therefor from Landlord.
(c)    Termination of Subtenant.  Tenant hereby represents and warrants to Landlord that (i) the Sublease is the entire agreement of Tenant and Subtenant with respect to Suite 350, and there are no additional amendments or modifications to the Sublease other than those stated herein, and (ii) Tenant has not assigned, subleased or otherwise transferred any interest of Tenant in Suite 350 or the Amended Lease, other than the Sublease.  Tenant shall cause the Sublease to be terminated on or before the Prior Expiration Date.
(d)    Surrender of Suite 350.  Tenant shall surrender Suite 350 to Landlord on or before the Prior Expiration Date free of Subtenant and in accordance with the terms and conditions of the Lease, including, without limitation, the terms set forth in Sections 14(C), 21(B), 21(C) and 29(I) of the Original Lease.  If Tenant or Subtenant shall holdover in Suite 350 from and after the Prior Expiration Date, Tenant shall be liable for such hold over and such hold over shall be subject to the terms of the Amended Lease, including, without limitation, the terms set forth in Section 21(A) of the Original Lease.
4.    Base Rent.  
(a)    Prior to Extended Term.  Tenant shall continue to pay Base Rent for the Existing Premises (i.e., approximately 71,732 rentable square feet) through the Prior Expiration Date in accordance with the terms and conditions of the Lease; provided, however, that Tenant shall be entitled to four (4) full calendar months of abatement of Base Rent during the period of January 1, 2020, through April 30, 2020, inclusive, subject to the terms and conditions of Section 6 below.  
(b)    Extended Term.  Commencing on the Extension Date, Tenant shall pay Base Rent for the Remaining Space (i.e., approximately 68,882 rentable square feet) as follows:
	
			
	Period of Extended Term
	Approx. Annual Rate/RSF
	Monthly Installment of Base Rent

	08/01/22-07/31/23
	$22.50
	$129,153.75

	08/01/23-07/31/24
	$23.00
	$132,023.83

	08/01/24-07/31/25
	$23.50
	$134,893.92

	08/01/25-07/31/26
	$24.00
	$137,764.00

	08/01/26-07/31/27
	$24.50
	$140,634.08

	08/01/27-07/31/28
	$25.00
	$143,504.17

	08/01/28-07/31/29
	$25.50
	$146,374.25*

*Tenant shall be entitled to one (1) full calendar month of abatement of Base Rent during the month of July, 2029, subject to the terms and conditions of Section 6 below.

	
			
	 
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All such Base Rent shall be paid in accordance with the Amended Lease.
5.    Tenant's Proportionate Share; Operating Expenses.  As of the Effective Date and continuing through the Prior Expiration Date, Tenant's Proportionate Share shall continue to be 16.58% (i.e., 71,732 / 432,633).  Commencing on the Reduction Effective Date, Tenant's Proportionate Share shall be 15.92% (i.e., 68,882 / 432,633) as a result of the elimination of the Reduction Space.  Tenant shall continue to pay Tenant's Proportionate Share of Operating Expenses from and after the Effective Date and continuing throughout the Extended Term in accordance with the terms and conditions of the Amended Lease; provided, however, that Tenant shall be entitled to five (5) full calendar months of abatement of Tenant's Proportionate Share of Operating Expenses during the Abatement Period (as defined in Section 6 below), subject to the terms and conditions of Section 6 below.  As set forth in Section 1.11 of the Original Lease, the cap on "controllable" Operating Expenses shall not be applicable during the initial twelve (12) months of the Extended Term (i.e., such cap shall be "reset" during such extension).  For informational purposes only, Landlord has estimated 2019 Operating Expenses to be $13.09 per rentable square foot.  Notwithstanding the foregoing, the foregoing estimate shall not be deemed to be a representation or warranty as to the amount of the actual Operating Expenses for 2019 or a cap on the amount of the actual Operating Expenses for 2019.
6.    Abatement.  Subject to the terms and conditions of this Section, Tenant shall be entitled to a total of five (5) full calendar months of abatement of Base Rent and Tenant's Proportionate Share of Operating Expenses during the following periods (collectively, the "Abatement Period"):  (a) the period of January 1, 2020, through April 30, 2020, inclusive (i.e., a period of four (4) full calendar months), and (b) the month of July, 2029 (i.e., a period of one (1) full calendar month).  The total amount of Base Rent and Tenant's Proportionate Share of Operating Expenses abated during the Abatement Period is referred to herein as the "Abated Amount".  Such abatement shall apply solely to payment of the monthly installments of Base Rent and Tenant's Proportionate Share of Operating Expenses, but shall not be applicable to any other charges, expenses or costs payable by Tenant under the Amended Lease.  Landlord and Tenant agree that the abatement of the Abated Amount contained in this Section is conditional and is made by Landlord in reliance upon Tenant's faithful and continued performance of the terms, conditions and covenants of the Amended Lease and the payment of all monies due Landlord thereunder.  In the event that Tenant defaults under the terms and conditions of the Amended Lease, then Tenant shall no longer be entitled to any portion of the Abated Amount pursuant to this Section from and after such date of default, and the unamortized portion of that portion of the Abated Amount received by Tenant as of such date of default (amortized on a straight-line basis over the last seventy-nine (79) months of the Extended Term) shall become fully liquidated and immediately due and payable (without limitation and in addition to any and all other rights and remedies available to Landlord provided herein or at law and in equity).  At any time prior to or during the Abatement Period (or any portion thereof), Landlord shall have the option to make a cash payment (the "Buyout Payment") to Tenant in the amount of the remaining Abated Amount, discounted at the rate of ten percent (10%) per annum from the last day of the applicable Abatement Period to the first day of the month during which the Buyout Payment is made.  Upon Landlord's tender of the Buyout Payment, Tenant shall no longer be entitled to the Abated Amount pursuant to this Section.  Landlord shall exercise its option to buy out the Abated Amount by delivering at least ten (10) days' prior written notice thereof to Tenant, and shall make the Buyout Payment to Tenant on or about the date set forth in such notice.

	
			
	 
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7.    Intentionally Deleted.
8.    Parking.  Effective as of the Effective Date, Sections 1.18 and 1.19 of the Original Lease (as amended) are hereby amended and restated as follows:
"1.18    Parking Spaces:  Tenant and its employees, agents and invitees shall have the non-exclusive right to use up to five (5) parking spaces per one thousand (1,000) rentable square feet in the Premises (the "Maximum Parking Spaces"); provided, however, Tenant shall lease on a "must-take" basis no less than three (3) parking spaces per one thousand (1,000) rentable square feet in the Premises (the "Must-Take Parking Spaces").  All Parking Spaces shall be in the parking garage adjacent to the Building (the "Adjacent Garage" or "Edwards Garage"); provided, however, Tenant may elect to convert up to ten (10) of the parking spaces to be designated as unreserved vehicular parking spaces in the parking garage associated with the Building (the "Building Garage") for the Lease Term, as same may be extended.  Tenant's use of the Parking Spaces is subject to (1) such reasonable Rules and Regulations (as defined herein) as Landlord may promulgate from time to time and (2) rights of ingress and egress of other tenants and their employees, agents and invitees.  None of the Parking Spaces shall be assigned.  Once any Parking Spaces are surrendered (provided Tenant must always have the Must-Take Parking Spaces in the Adjacent Garage), then Tenant may only re-lease such spaces subject to availability.
1.19    Parking Rent:  Tenant shall be obligated to pay Landlord on a monthly basis the prevailing fair market rate charged by Landlord for parking spaces in the Building Garage, if any (exclusive of any taxes owed by Landlord on such parking fees).  Tenant shall be obligated to pay Landlord on a monthly basis the prevailing fair market rate charged by Landlord for parking spaces in the Adjacent Garage (exclusive of any taxes owed by Landlord on such parking fees); provided, however, that the prevailing fair market rate per parking space in the Adjacent Garage shall not exceed one hundred ten percent (110%) of the rate that Landlord is being charged by the Adjacent Garage operator ("Operator") for such parking space in the Adjacent Garage at any given time.  Tenant shall be responsible for all taxes on Parking Rent."
As of the Effective Date and continuing through the Prior Expiration Date, the Maximum Parking Spaces shall equal three hundred fifty-eight (358) parking spaces and the Must-Take Parking Spaces shall equal two hundred fifteen (215) parking spaces, based on the Existing Premises containing approximately 71,732 rentable square feet.  Commencing on the Reduction Effective Date, the Maximum Parking Spaces shall equal three hundred forty-four (344) parking spaces and the Must-Take Parking Spaces shall equal two hundred six (206) parking spaces, based on the Remaining Space containing approximately 68,882 rentable square feet.  If Tenant desires to lease any parking spaces above the Maximum Parking Spaces, such leases shall be at the Parking Rent and subject to availability.

	
			
	 
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Notwithstanding the foregoing, Landlord and Tenant acknowledge and agree that as of the Effective Date, Tenant has elected to convert ten (10) of the parking spaces in the Adjacent Garage to be designated as unreserved vehicular parking spaces in the Building Garage in accordance with Section 1.18 of the Original Lease (as amended above).  Accordingly, the number of Maximum Parking Spaces and Must-Take Parking Spaces set forth in the paragraph above shall be reduced by ten (10) parking spaces for so long as Tenant maintains such ten (10) parking spaces in the Building Garage.  For the avoidance of doubt, as of the Effective Date, the Maximum Parking Spaces shall equal three hundred forty-eight (348) parking spaces and the Must-Take Parking Spaces shall equal two hundred five (205) parking spaces, based on the Existing Premises containing approximately 71,732 rentable square feet, and Tenant leases from Landlord ten (10) unreserved parking spaces in the Building Garage.
As of the Effective Date, the prevailing fair market rate charged by Operator for unreserved parking spaces in the Adjacent Garage is $89.00 per space per month, and the prevailing fair market rate charged by Landlord for unreserved parking spaces in the Building Garage is $110.00 per space per month.  Landlord and Tenant acknowledge that as of the Effective Date, Landlord is currently pursuing a reduction of the rate charged by Operator for parking spaces in the Adjacent Garage.  If Operator reduces the rate charged in the Adjacent Garage, the parking rate charged to Tenant for parking spaces in the Adjacent Garage shall be appropriately reduced.  Tenant acknowledges and agrees that Landlord has not made any representation or warranty that a parking rate reduction will be achieved with respect to parking spaces in the Adjacent Garage, and the terms of any such reduction shall be subject to the approval of Landlord, in its sole and absolute discretion.  For the avoidance of doubt, any reduction of parking rates charged by Operator for the Adjacent Garage shall not affect the parking rates charged by Landlord for the Building Garage.
9.    Building Signage.  Effective as of the Effective Date, provided Tenant is not in default under the terms of the Amended Lease (beyond any applicable notice and cure periods), Tenant shall have the right to install one (1) exterior sign on the top façade of the Building in the location depicted on Exhibit A attached hereto (the "Building Sign").  Tenant shall have the right to have the Building Sign backlit, subject to Tenant’s receipt of required approvals in accordance with the following sentence.  Landlord hereby approves the plans and specifications for the Building Sign as set forth on Exhibit A-1 attached hereto.  Notwithstanding the foregoing, Tenant’s right to install the Building Sign is expressly subject to and contingent upon Tenant receiving, at Tenant's sole cost and expense, the approval and consent to the Building Sign from all applicable governmental and quasi-governmental governmental agencies, and all other necessary permits, zoning, regulatory and other approvals in connection with the Building Sign.  Landlord shall notify Tenant of any required approvals of which Landlord is aware which are not governmental or quasi-governmental agencies.  Additionally, any changes to the Building Sign shall be subject to Landlord’s prior review and written approval thereof, and shall conform to Landlord's signage criteria for the Building.  In such event, Tenant shall submit to Landlord reasonably detailed drawings of its changes to the Building Sign, including without limitation, the size, material, shape, location, coloring and lettering for review and approval by Landlord.  Tenant shall reimburse Landlord for any reasonable out-of-pocket costs associated with Landlord's review and supervision as hereinbefore provided, including, without limitation, engineers and other professional consultants.  All costs of approval, consent, design, installation, supervision of installation, wiring, maintaining, repairing and removing the Building Sign will be at Tenant’s sole cost and expense, provided that Tenant may 

	
			
	 
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utilize the Allowance (as defined in Section 11(b) below) for such costs.  Tenant will be solely responsible for any damage to the Building Sign and any damage that the installation, maintenance, repair or removal thereof may cause to the Building.  Upon the expiration or earlier termination of the Amended Lease, Tenant shall remove the Building Sign and restore any damage to the Building at Tenant’s sole cost and expense.  In addition, Landlord shall have the right to remove the Building Sign at Tenant's sole cost and expense, if, at any time during the Lease Term:  (a) Tenant assigns the Amended Lease; (b) Tenant sublets more than fifty percent (50%) of the Premises, provided that Tenant remains in possession of not less than 55,000 rentable square feet in the Building; (c) Tenant is in default under the terms of the Amended Lease (beyond any applicable notice and cure periods); or (d) Tenant leases less than a total of 68,000 rentable square feet in the Building.  The rights contained in this Section are not assignable separate and apart from the Amended Lease, nor may such rights be separated from the Amended Lease in any manner, either by reservation or otherwise.
10.    Intentionally Deleted.  
11.    Condition of Premises.
(a)    Tenant in Possession.  Tenant is in possession of the Premises and agrees to accept the same on the Effective Date and on the Extension Date "as is" without any agreements, representations, understandings or obligations on the part of Landlord to perform or fund any alterations, repairs or improvements, except as provided in Section 11(b) below.
(b)    Tenant's Work; Allowance.  Commencing on the Effective Date, Tenant may repair, refurbish and upgrade the Remaining Space in accordance with and subject to the terms and conditions of Section 14 of the Original Lease ("Tenant's Work").  Notwithstanding anything in this Fifth Amendment to the contrary, Tenant shall be entitled to a one-time tenant improvement allowance in the amount of $35.00 per rentable square foot in the Remaining Space (i.e., $2,410,870.00, based on the Remaining Space containing approximately 68,882 rentable square feet) (the "Allowance") toward the actual out-of-pocket costs of Tenant's Work.  The Allowance may be used by Tenant to pay for (1) the hard costs of Tenant's Work, (2) the architectural, engineering and permitting costs related to Tenant's Work, (3) Tenant's moving expenses in connection with Tenant's relocation from the Reduction Space to the Remaining Space, (4) costs of the Building Sign as set forth in Section 9 above, (5) the costs of any furniture, fixtures and equipment purchased by Tenant and installed in the Remaining Space, and (6) the costs of any data cabling that is installed as part of Tenant's Work.  Provided Tenant is not in default under the terms of the Amended Lease (beyond any applicable notice and cure periods), Landlord shall reimburse Tenant for the allowable costs of Tenant's Work (up to the Allowance) as Tenant’s Work progresses (provided that Tenant shall not make more than one (1) draw request per calendar month, and Landlord shall not be obligated to make more than one (1) disbursement per calendar month) within thirty (30) business days following (i) completion of the applicable portion of Tenant's Work, as evidenced by a certification of completion of such portion of Tenant’s Work from the project engineer or architect, (ii) Landlord's receipt of Tenant's invoice of the costs related thereto, together with invoices, receipts and/or bills substantiating such costs and evidence of payment by Tenant for all such costs by Tenant, (iii) Landlord's receipt of conditional lien waivers in a form acceptable to Landlord from all contractors and subcontractors who did work on the applicable portion of Tenant's Work, together with final unconditional lien waivers in a form acceptable to Landlord showing full 

	
			
	 
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payment of those portions of Tenant's Work that were the subject of the conditional lien waivers provided by Tenant to Landlord in connection with the prior disbursement of the Allowance, (iv) Landlord's receipt of a copy of the final permits approved by the applicable governing authority to the extent required for the applicable portion of Tenant's Work, and (v) to the extent applicable, Landlord's receipt of all documentation required for Tenant's Work pursuant to Section 14 of the Original Lease.  Landlord shall be under no obligation to pay for any of Tenant's Work in excess of the Allowance, and Tenant shall not be entitled any unused portion of the Allowance upon completion of Tenant's Work, except as expressly set forth below.  The Allowance shall only be available for Tenant's use from the Effective Date through August 1, 2023 (the "Allowance Deadline"); provided, however, that if Tenant is not in default under the terms of the Amended Lease (beyond any applicable notice and cure periods), any unused portion of the Allowance as of the Allowance Deadline (but not to exceed $10.00 per rentable square foot of the Remaining Space (i.e., $688,820.00, based on the Remaining Space containing approximately 68,882 rentable square feet)) shall automatically be applied as a credit against the Base Rent next coming due and payable under the Amended Lease (as so capped, the "Applied Allowanced") (in which event the Allowance Deadline shall no longer apply, and the Applied Allowance shall be applied against Base Rent until it is applied in full), and the Applied Allowance shall no longer be available to Tenant as an allowance or reimbursement for any costs.  Upon the Allowance Deadline, Tenant waives any and all rights to any unused portion of the Allowance in excess of the Applied Allowance.
12.    Rack Space.  Tenant is in possession of the Rack Space and agrees to accept the same on the Effective Date and on the Extension Date "as is" without any agreements, representations, understandings or obligations on the part of Landlord to perform or fund any alterations, repairs or improvements.  Tenant shall continue to lease the Rack Space from and after the Effective Date and continuing throughout the Extended Term in accordance with the terms and conditions of the Amended Lease, including, without limitation, the payment of rent for the Rack Space in accordance with Section 2(c) of the First Amendment.  At any time after the Effective Date, Landlord may substitute for the Rack Space other rack space on the third (3rd) or fourth (4th) floor of the Building (which other rack space may be located within any portion of the Premises on such floors) (the "Relocation Rack Space") provided: (a) the Relocation Rack Space shall be similar to the Rack Space in size, provided that in no event shall the Relocation Rack Space consist of less than thirty-two (32) square feet, and provided further that the rent for the Rack Space shall continue to be based on a size of thirty-two (32) square feet (regardless of the actual size of the Relocation Rack Space); (b) Landlord shall pay the reasonable out-of-pocket expenses of Tenant for moving from the Rack Space to the Relocation Rack Space, including all costs associated with relocating redundant internet connections, security, access control etc.; (c) such move shall be made during evenings, weekends or otherwise, so as to incur the least inconvenience to Tenant; (d) Landlord shall first give Tenant at least ninety (90) days' notice before making such change; and (e) the Relocation Rack Space shall retain backup generation capacity, fire suppression, access control, security and HVAC capacity as the Rack Space is provided as of the Effective Date, or as otherwise agreed-upon by Tenant. Tenant shall have the right to relocate such Rack Space to within its Premises at any time throughout the Lease Term, subject to the Lease Agreement and those provisions in this Section 12. Notwithstanding the foregoing, if the Relocation Rack Space is located within the Premises or if Tenant elects to relocate the Rack Space to within its Premises, Landlord and Tenant acknowledge that since Tenant is already obligated to pay Base Rent for the Premises, Tenant shall not be obligated to pay additional base rent for the Relocation Rack Space, provided that nothing 

	
			
	 
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herein shall limit Tenant's obligation to pay all amounts attributable to above-standard usage or Auxiliary Power as provided for in the Lease with respect to the Relocation Rack Space and Tenant's use thereof, as applicable.  If Landlord shall exercise its right hereunder, the Relocation Rack Space shall thereafter be deemed to be the Rack Space for the purposes of the Amended Lease. 
13.    Option to Extend.  Tenant shall continue to have the Renewal Option set forth in Section 2 of Rider One to the Original Lease with respect to the entire Premises then leased by Tenant; provided, however, that Tenant shall deliver the Renewal Request Notice not more than eighteen (18) months nor less than twelve (12) months prior to the expiration of the Lease Term.
14.    Rights of First Refusal.
(a)    4th, 5th and 7th Floors.  Tenant shall continue to have the Right of Refusal set forth in Section 3 of Rider One to the Original Lease, as amended by Section 7 of the Second Amendment; provided, however, that the "Refusal Space" shall mean each of (i) all leasable space located on the fourth (4th) floor of the Building, other than Suite 400 and Suite 475, which are currently leased by Tenant, (ii) all leasable space located on the fifth (5th) floor of the Building, other than Suite 540, which is currently leased by Tenant, and (iii) all leasable space located on the seventh (7th) floor of the Building, other than Suite 750, which is currently leased by Tenant.  If any Third Party Offer is for any Refusal Space, together with any other portion of the Building, then the Right of Refusal shall apply to all space that is subject to such Third Party Offer, and Tenant may not elect to exercise the Right of Refusal with respect to only the Refusal Space.  Notwithstanding anything in the Lease to the contrary, the Right of Refusal shall be subordinate to the rights of any other tenant of the Building relating to the Refusal Space existing as of the Effective Date.  Further, if Landlord is obligated to re-offer any Refusal Space to Tenant after the six (6) month period described in Section 3(e) of Rider One to the Original Lease, then such right shall be subordinate to the rights of any other tenant of the Building relating to the Refusal Space existing as of the expiration of such six (6) month period.  For the avoidance of doubt, if Tenant does not exercise its Right of Refusal in the time and manner set forth in Section 3 of Rider One to the Original Lease, then Landlord shall be free to lease the Refusal Space to any party on any terms that Landlord desires during such six (6) month period.  Additionally, if Landlord has submitted a written proposal to any other tenant of the Building relating to the Refusal Space prior to the Effective Date, then the Right of Refusal shall be subordinate to Landlord's right to finalize an agreement based on such proposal.
(b)    Suite 310.  Tenant is hereby granted a right of refusal to lease from Landlord Suite 310 in the Building consisting of approximately 7,851 rentable square feet of space, as depicted on Exhibit B attached hereto, which right of refusal shall be subject to all of the terms and conditions of Section 3 of Rider One to the Original Lease, as amended by Section 7 of the Second Amendment, subject to the following modifications:  (i) for purposes of this Section 14(b), the "Refusal Space" shall be deemed to mean Suite 310 in the Building; (ii) Tenant shall only have the Right of Refusal with respect to all of Suite 310 (and not only a portion thereof); (iii) if any Third Party Offer is for Suite 310, together with any other portion of the Building, then the Right of Refusal shall apply to all space that is subject to such Third Party Offer, and Tenant may not elect to exercise the Right of Refusal with respect to only Suite 310; (iv) Tenant's Right of Refusal with respect to Suite 310 shall be subordinate to Landlord's right to renew any tenant occupying any portion of Suite 310 as of the Effective Date, as well as any rights of any other tenant of the Building relating to Suite 310 

	
			
	 
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existing as of the Effective Date; and (v) Section 3(e) of Rider One to the Original Lease is hereby deleted in its entirety with respect to Suite 310.  Notwithstanding anything in the Lease to the contrary, Tenant acknowledges and agrees that the Right of Refusal with respect to Suite 310 is a one-time right, and if Tenant does not exercise its Right of Refusal with respect to Suite 310 in the time and manner set forth herein, the Right of Refusal with respect to Suite 310 shall be deemed terminated and of no further force or effect.
(c)    Limitation.  Notwithstanding anything in the Lease to the contrary, Tenant shall have no right of refusal to lease any portion of the Building other than the "Refusal Space" described in Sections 14(a) and (b) above.
15.    Options; Allowances.  Tenant acknowledges and agrees that it has (a) no rights and/or options to extend or renew the Lease Term, except as set forth in Section 13 above, (b) no rights and/or options to terminate the Amended Lease early, and (c) no rights and/or options to lease additional space within the Building, except as set forth in Section 14 above, and all other rights and/or options with respect to the matters described above are hereby deemed of no further force or effect.  For the avoidance of doubt, Section 5 of the Third Amendment and Section 5 of the Fourth Amendment are hereby deleted in their entirety and of no further force or effect.  Additionally, except as set forth in Section 11 above, Tenant acknowledges and agrees that it has no claim to any credits or tenant allowances provided to Tenant under the Lease, all of which have been paid or credited in full by Landlord to Tenant or are otherwise hereby deemed to be have been waived by Tenant, and Landlord has no further obligations with respect thereto.  For the avoidance of doubt, Tenant shall not be entitled to any credits or tenant allowances pursuant to Exhibit C to the Original Lease, Section 6 of the First Amendment or Exhibit B to the Second Amendment.
16.    Brokers.  Tenant and Landlord each hereby represents and warrants to the other that such representing party has not dealt with any real estate brokers or leasing agents, except Cushman & Wakefield of Texas, Inc., who represents Tenant, and CBRE, Inc., who represents Landlord (collectively, the "Brokers").  No commissions are payable to any party claiming through Tenant as a result of the consummation of the transaction contemplated by this Fifth Amendment, except to Brokers, if applicable.  Tenant hereby agrees to indemnify and hold Landlord harmless from any and all loss, costs, damages or expenses, including, without limitation, all reasonable attorneys' fees and disbursements by reason of any claim of or liability to any other broker, agent, entity or person claiming through Tenant (other than the Brokers) and arising out of or in connection with the negotiation and execution of this Fifth Amendment.  Landlord hereby agrees to indemnify and hold Tenant harmless from any and all loss, costs, damages or expenses, including, without limitation, all reasonable attorneys' fees and disbursements by reason of any claim of or liability to any broker, agent, entity or person claiming through Landlord and arising out of or in connection with the negotiation and execution of this Fifth Amendment.
17.    Governing Law.  This Fifth Amendment is governed by federal law, including without limitation the Electronic Signatures in Global and National Commerce Act (15 U.S.C. §§ 7001 et seq.) and, to the extent that state law applies, the laws of the State of Texas without regard to its conflicts of law rules.
18.    Counterparts; Electronic Signatures. This Fifth Amendment may be executed in counterparts, including both counterparts that are executed on paper and counterparts that are in 

	
			
	 
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the form of electronic records and are executed electronically.  An electronic signature means any electronic sound, symbol or process attached to or logically associated with a record and executed and adopted by a party with the intent to sign such record, including facsimile or e-mail electronic signatures.  All executed counterparts shall constitute one agreement, and each counterpart shall be deemed an original.  The parties hereby acknowledge and agree that electronic records and electronic signatures, as well as facsimile signatures, may be used in connection with the execution of this Fifth Amendment and electronic signatures, facsimile signatures or signatures transmitted by electronic mail in so-called pdf format shall be legal and binding and shall have the same full force and effect as if a paper original of this Fifth Amendment had been delivered and had been signed using a handwritten signature.  Landlord and Tenant (i) agree that an electronic signature, whether digital or encrypted, of a party to this Fifth Amendment is intended to authenticate this writing and to have the same force and effect as a manual signature, (ii) intend to be bound by the signatures (whether original, faxed or electronic) on any document sent or delivered by facsimile or, electronic mail, or other electronic means, (iii) are aware that the other party will rely on such signatures, and (iv) hereby waive any defenses to the enforcement of the terms of this Fifth Amendment based on the foregoing forms of signature.  If this Fifth Amendment has been executed by electronic signature, all parties executing this document are expressly consenting under the Electronic Signatures in Global and National Commerce Act ("E-SIGN"), and Uniform Electronic Transactions Act ("UETA"), that a signature by fax, email or other electronic means shall constitute an Electronic Signature to an Electronic Record under both E-SIGN and UETA with respect to this specific transaction.
19.    Miscellaneous.  With the exception of those matters set forth in this Fifth Amendment, Tenant's leasing of the Premises and the Rack Space shall be subject to all terms, covenants and conditions of the Lease.  In the event of any express conflict or inconsistency between the terms of this Fifth Amendment and the terms of the Lease, the terms of this Fifth Amendment shall control and govern.  Except as expressly modified by this Fifth Amendment, all other terms and conditions of the Lease are hereby ratified and affirmed.  This Fifth Amendment may be executed in any number of counterparts, and delivery of any counterpart to the other party may occur by electronic or facsimile transmission; each such counterpart shall be deemed an original instrument, but all such counterparts together shall constitute one agreement.  An executed Fifth Amendment containing the signatures (whether original, faxed or electronic) of all the parties, in any number of counterparts, is binding on the parties.  The parties acknowledge that the Lease is a valid and enforceable agreement and that as of the date of this Fifth Amendment, Tenant has no actual knowledge of any circumstances that would give rise to any claim in favor of Tenant against Landlord or its agents which might serve as the basis of any other set-off against accruing rent and other charges or any other remedy at law or in equity.
[Remainder of Page Intentionally Left Blank]

	
			
	 
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IN WITNESS WHEREOF, this Fifth Amendment is dated effective as of the date and year first written above.
LANDLORD:

SCP 20 GREENWAY, LLC,
a Delaware limited liability company

By: /s/     Steven Yari                
Name:     Steven Yari                
Title: Authorized Signatory            

TENANT:

SUNNOVA ENERGY CORPORATION,
a Delaware corporation

By: /s/ William J. Berger            
Name: William J. Berger            
Title: President and Chief Executive Officer 

	
			
	 
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Exhibit 10.1

EXHIBIT A
LOCATION OF BUILDING SIGN

	
			
	1225773.05/OC
378376-00003/8-14-19/bjw/bjw
	EXHIBIT A
-1-
	

Exhibit 10.1

EXHIBIT A-1
LANDLORD APPROVED PLANS AND SPECIFICATIONS FOR BUILDING SIGN
[See Attached]

	
			
	1225773.05/OC
378376-00003/8-14-19/bjw/bjw
	EXHIBIT A-1
-1-
	

Exhibit 10.1

EXHIBIT B
SITE PLAN SHOWING SUITE 310 REFUSAL SPACE

	
			
	1225773.05/OC
378376-00003/8-14-19/bjw/bjw
	EXHIBIT B
-1-

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