Document:

fcel-ex102_40.htm

 

EXHIBIT 10.2

 

THIRD AMENDMENT TO CONSTRUCTION LOAN AGREEMENT 

 

THIS THIRD AMENDMENT TO CONSTRUCTION LOAN AGREEMENT (this “Amendment”) is dated as of September 30, 2019, by and among FUELCELL ENERGY FINANCE II, LLC, a Connecticut limited liability company (“Borrower”), BAKERSFIELD FUEL CELL 1, LLC, a Delaware limited liability company (“Bakersfield”), BRT Fuel Cell, LLC, a New York limited liability company (“BRT”), CR FUEL CELL, LLC, a New York limited liability company (“CR”), Yaphank Fuel Cell Park, LLC, a New York limited liability company (“Yaphank”), Homestead Fuel Cell 1, LLC, a Connecticut limited liability company (“Homestead”), DERBY FUEL CELL, LLC, a Connecticut limited liability company (“Derby”, and collectively with Bakersfield, BRT, CR, Yaphank and Homestead, each, an “Initial Project Company Guarantor”, and together, the “Initial Project Company Guarantors”), and GENERATE LENDING, LLC, a Delaware limited liability company (the “Lender”).

 

WHEREAS, the Borrower, the Initial Project Company Guarantors and the Lender are parties to a Construction Loan Agreement dated as of December 21, 2018 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the “Loan Agreement”), pursuant to which the Lender has made a construction loan facility available to the Borrower; and

 

WHEREAS, the Borrower and the Lender have agreed to modify certain provisions of the Loan Agreement as more particularly set forth in this Amendment.

 

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

 

	
1.
	
Capitalized Terms; Effective Date.  Capitalized terms used in this Amendment which are not otherwise defined herein shall have the meanings assigned thereto in the Loan Agreement, as modified by this Amendment.  Except as expressly provided to the contrary herein, all modifications to the Loan Agreement set forth herein shall be effective as of the date of this Amendment.

 

	
2.
	
Amendments to Loan Agreement.  Each of the parties hereto hereby agrees that, on and as of the date of this Amendment: 

 

	
(a)
	
Clause (i) of Section 2.3 of the Loan Agreement is hereby amended by deleting such clause in its entirety and substituting in lieu thereof the following new clause (i) to read in its entirety as follows:

 

“(i) The Lender may, in its sole discretion, at any time, issue a notice to Borrower stating that Lender is terminating the Commitment and that all Working Capital Loans are due and payable; provided that such notice may be in the form of an e-mail message or other memorandum.  If the Lender delivers such notice, the Commitment shall immediately terminate and all of the Working Capital Loans, together with all accrued and unpaid interest thereon and all other Obligations then outstanding, shall be due and payable in their entirety, without penalty or premium, within two (2) Business Days of delivery of such notice.  The obligation of the Borrower to repay the Working Capital Loans, all accrued and unpaid interest thereon and all other then outstanding Obligations as contemplated by this Section 2.3(i) has been guaranteed by the Parent pursuant to the Parent Guaranty.  In the event that Lender issues the foregoing notice, from and after such date, Lender shall not be entitled to any Disposition Fee under Section 2.3 (c) or have any rights under Section 2.3(d) with respect to any Disposition or Refinancing that occurs after such date; provided, 

- 1 -

 

 

however, the Lender shall be entitled to a Disposition Fee on any Disposition of the Bakersfield Project, regardless of when such Disposition occurs.”

 

	
(b)
	
Clause (j) of Section 2.3 of the Loan Agreement is hereby amended by deleting such clause in its entirety and substituting in lieu thereof the following new clause (j) to read in its entirety as follows:

 

“(j)Until such time as all Obligations have been repaid in full, no Initial Project Company Guarantor shall be released from any of its obligations as a Loan Party under this Agreement and the other Loan Documents, including without limitation its guaranty of the Obligations pursuant to Section 10 of this Agreement.”

 

	
3.
	
Conditions to Effectiveness.  This Amendment shall become effective subject to (a) Lender’s receipt of the first payment set forth under Section 5 below in the amount of $3,000,000.00 on or before noon, Eastern time, October 2, 2019; and (b) the fulfillment of the condition precedent that the Lender shall have received the following documents, each duly executed by the parties thereto and delivered to the Lender:

 

	

	
(i)this Amendment;

	

	
(ii)the Acknowledgement and Agreement of the Parent; and

	

	
(iii)the Third Amendment to Right to Finance Agreement, executed by the Borrower, the Parent and the Lender.

	
4.
	
Reimbursement of Costs and Expenses.  

 

	
(a)
	
Borrower, the Initial Project Company Guarantors, the Parent Guarantor and Lender each agree that, as of the date hereof, Lender has incurred costs and expenses, including attorney’s fees and expenses, associated with the Loan Agreement in the amount of $125,000 and Borrower agrees that such costs and expenses shall be reimbursed by Borrower no later than five (5) Business Days after the execution of this Amendment.

 

	
(b) 
	
Borrower, the Initial Project Company Guarantors, the Parent Guarantor and Lender each agree that, from and after the date hereof, within five (5) Business Days following demand by Lender, Borrower shall reimburse Lender for attorneys’ fees incurred after the date hereof in connection with: (i) any subsequent amendments, waivers, joinders and modifications of the Loan Agreement or any other Loan Document; or (ii) in connection with Lender’s exercise of any rights and remedies under the Loan Agreement or Loan Documents.

 

	
5.
	
Covenants of Borrower and Initial Project Company Guarantors.  To induce the Lender to enter into this Amendment and agree to the terms hereof, the Borrower and the Initial Project Guarantors hereby agree:

 

	
(a)
	
That Borrower shall, by no later than noon, Eastern time, October 2, 2019, pay to Lender three million dollars ($3,000,000.00) via wire transfer of immediately available funds, which amount shall be applied to the outstanding principal balance of the Working Capital Loans in accordance with the terms of the Loan Agreement, and which amount shall not be subject to any prepayment penalty or premium.

 

	
(b)
	
That Borrower shall, by no later than October 31, 2019, pay to Lender three million dollars ($3,000,000.00) via wire transfer of immediately available funds, which amount shall be applied to the 

- 2 –

 

 

		
outstanding principal balance of the Working Capital Loans in accordance with the terms of the Loan Agreement, and which amount shall not be subject to any prepayment penalty or premium.

 

	
(c)
	
That Borrower shall, by no later than November 30, 2019, pay to Lender two million dollars ($2,000,000.00) via wire transfer of immediately available funds, which amount shall be applied to the outstanding principal balance of the Working Capital Loans in accordance with the terms of the Loan Agreement, and which amount shall not be subject to any prepayment penalty or premium.

 

	
(d)
	
That Borrower shall, by no later than December 31, 2019, pay to Lender via wire transfer of immediately available funds, all remaining principal and accrued interest outstanding on the Working Capital Loans, without prepayment penalty or premium of any kind, and Lender shall not be entitled to any Disposition Fee under Section 2.3 (c) or have any rights under Section 2.3(d) with respect to any Disposition or Refinancing that occurs after such date; provided, however, the Lender shall be entitled to a Disposition Fee on any Disposition of the Bakersfield Project, regardless of when such Disposition occurs. 

 

	
(e)
	
That Borrower shall, immediately upon the closing of a Debt facility by the Borrower or the Parent, repay all of the Obligations in their entirety, including all accrued and unpaid interest, and the principal amount of all Working Capital Loans then outstanding.  Any payments made pursuant to this Section 5(e) shall be made without premium or penalty of any kind, and shall be made via wire transfer of immediately available funds.

 

(f)To provide daily reports to Lender in form and substance reasonably satisfactory to Lender.

 

	
(g)
	
To use all commercially reasonable efforts to provide information to Lender within three (3) Business Days of Lender’s request therefor.

 

	
(h)
	
To participate in weekly telephonic meetings with Lender.

 

The Borrower and the Initial Project Guarantors acknowledge and agree that the failure to timely comply with any of the foregoing covenants shall constitute a Facility Event of Default under the Loan Agreement.  

 

	
6.
	
Loan Party Representations and Warranties.  

 

	
(a)
	
Borrower and each Initial Project Company Guarantor hereby (i) confirms that all of the representations and warranties set forth in the Loan Agreement and the other Loan Documents are true and correct with respect to Borrower and each Initial Project Company Guarantor as of the date hereof (except insofar as such representations and warranties relate expressly to an earlier date, in which case such representations and warranties shall have been true and correct in all material respects as of such earlier date), (ii) covenants to perform its obligations under the Loan Agreement and other Loan Documents (including, but not limited to, this Amendment), (iii) specifically represents and warrants to Lender that it has good and marketable title to all of its respective Collateral, free and clear of any lien or security interest in favor of any other person or entity, other than Permitted Encumbrances, (iv) represents and warrants that the execution, delivery and performance of this Amendment have been authorized by all requisite limited liability company action on the part of each of Borrower and each Initial Project Company Guarantor and will not violate the certificate of formation, operating agreement, or other applicable organization or governing documents of Borrower or such Initial Project Company Guarantor, as applicable, and (v) represents and warrants that this Amendment constitutes the legal, valid and binding obligation of Borrower and each Initial Project Company Guarantor, enforceable against Borrower and each Initial Project Company Guarantor in accordance with its terms except as such enforceability may be limited by any applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditor’s rights 

- 3 –

 

 

		
generally and by general equitable principles (whether enforcement is sought by proceedings in equity or at law).

 

	
(b)
	
The Borrower and each Initial Project Company Guarantors hereby represent and warrant that no Facility Event of Default, Facility Default, Project Company Event of Default or Project Company Default has occurred and is continuing under the Loan Agreement.

 

	
(c) 
	
The Borrower and each Initial Project Company Guarantor hereby represent and warrant that attached hereto as Schedule 1 is a true, correct and complete list of the assets owned as of the date hereof by (i) Borrower and (ii) each Initial Project Company Guarantor.

 

	
7.
	
Acknowledgement of Outstanding Obligations.  Borrower acknowledges and agrees that, as of the date of this Amendment, the aggregate principal amount of all Working Capital Loans is $10,000,000.00 and the aggregate outstanding amount of accrued and unpaid interest on the Working Capital Loans is $ 0.  Borrower acknowledges and agrees that all such principal and accrued interest thereon is due and payable without offset or defense of any kind or nature (which accrued interest on the Working Capital Loans shall continue to accrue and become due and payable on the dates and on the terms specified in the Loan Agreement).

 

	
8.
	
Loan Party Assets.  Each of the Borrower and the Initial Project Company Guarantors represents and warrants that (i) attached hereto as Schedule 1 is a true, correct and complete list of the assets of each of the Borrower and the Initial Project Company Guarantors, including the estimated value thereof, as of the date hereof, and (ii) the applicable Borrower or Initial Project Company Guarantor has good and valid title to such assets, free and clear of claims of any other Person, other than the Lender.

 

	
9.
	
No Other Modifications; Reaffirmation by the Borrower and Initial Project Company Guarantors.  Except as expressly modified hereby, the terms of the Loan Agreement and each other Loan Document (and all covenants, conditions and agreements therein) shall remain in full force and effect in all respects, and are hereby ratified and confirmed in all respects by Borrower and each Initial Project Company Guarantor.  Each of the Borrower and each Initial Project Company Guarantor hereby covenants and agrees to comply with all of the terms, covenants and conditions of the Loan Agreement (as amended hereby) and the Loan Documents to which it is a party, notwithstanding any prior course of conduct, waivers, releases or other actions or inactions on Lender’s part which might otherwise constitute or be construed as a waiver of or agreement to such terms, covenants and conditions, or otherwise.

 

	
10.
	
Release.  BORROWER AND EACH INITIAL PROJECT COMPANY GUARANTOR HEREBY ACKNOWLEDGES THAT BORROWER’S PAYMENT OBLIGATIONS UNDER THE LOAN DOCUMENTS ARE ABSOLUTE AND UNCONDITIONAL WITHOUT ANY RIGHT OF RESCISSION, SETOFF, COUNTERCLAIM, DEFENSE, OFFSET, RECOUPMENT, CROSS-COMPLAINT, CLAIM OR DEMAND OF ANY KIND OR NATURE WHATSOEVER THAT CAN BE ASSERTED TO REDUCE OR ELIMINATE ALL OR ANY PART OF ITS LIABILITY TO REPAY THE OBLIGATIONS OR TO SEEK AFFIRMATIVE RELIEF OR DAMAGES OF ANY KIND OR NATURE FROM LENDER. BASED UPON THE FACTS KNOWN TO BORROWER AND EACH INITIAL PROJECT COMPANY GUARANTOR AS OF THE EFFECTIVE DATE, BORROWER AND EACH INITIAL PROJECT COMPANY GUARANTOR HEREBY VOLUNTARILY AND KNOWINGLY RELEASES AND FOREVER DISCHARGES LENDER AND ITS PREDECESSORS, AGENTS, EMPLOYEES, SUCCESSORS AND ASSIGNS (COLLECTIVELY, THE “RELEASED PARTIES”), FROM ALL POSSIBLE CLAIMS, DEMANDS, ACTIONS, CAUSES OF ACTION, DAMAGES, COSTS, EXPENSES, AND LIABILITIES WHATSOEVER, KNOWN OR UNKNOWN, ANTICIPATED OR UNANTICIPATED, SUSPECTED OR UNSUSPECTED, FIXED, CONTINGENT, OR CONDITIONAL, AT LAW OR IN EQUITY, WHICH BORROWER OR ANY INITIAL PROJECT COMPANY 

- 4 –

 

 

		
GUARANTOR MAY NOW OR HEREAFTER HAVE AGAINST ANY OF THE RELEASED PARTIES, IF ANY, AND IRRESPECTIVE OF WHETHER ANY SUCH CLAIMS ARISE OUT OF CONTRACT, TORT, VIOLATION OF LAW OR REGULATIONS, OR OTHERWISE, AND ARISING FROM THE LOAN OR ANY OTHER OBLIGATIONS OWING TO LENDER, INCLUDING, WITHOUT LIMITATION, ANY CONTRACTING FOR, CHARGING, TAKING, RESERVING, COLLECTING OR RECEIVING INTEREST IN EXCESS OF THE HIGHEST LAWFUL RATE APPLICABLE, THE EXERCISE OF ANY RIGHTS AND REMEDIES UNDER THE CREDIT AGREEMENT OR OTHER LOAN DOCUMENTS, AND THE NEGOTIATION AND EXECUTION OF THIS AMENDMENT.

 

	
11.
	
References.  All references in the Loan Agreement to “this Agreement,” “herein,” “hereunder” or other words of similar import, and all references to the Loan Agreement in the other Loan Documents, or any other document or instrument that refers to the Loan Agreement, shall be deemed to be references to the Loan Agreement as amended by this Amendment.

 

	
12.
	
Applicable Law.  THIS AMENDMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAW PROVISIONS.

 

	
13.
	
Counterparts; Electronic Delivery.  This Amendment may be executed in one or more counterparts (all counterparts together reflecting the signature of all parties) each of which shall be deemed an original, and all of which together shall constitute one and the same instrument.  Delivery by any party to this Amendment of its signatures hereon through facsimile or other electronic image file (including .pdf) (i) may be relied upon as if this Amendment were physically delivered with an original hand-written signature of such party, and (ii) shall be binding on such party for all purposes.

 

	
14.
	
Successors.  This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

 

	
15.
	
Final Agreements.  This Amendment represents the final agreement of the Borrower, the Initial Project Company Guarantors and the Lender with respect to the subject matter hereof, and may not be contradicted, modified or supplemented in any way by evidence of any prior or contemporaneous written or oral agreements of the Borrower, the Initial Project Company Guarantors and the Lender.

 

	
16.
	
Costs and Expenses.  The Borrower and the Initial Project Company Guarantors agree to reimburse the Lender for the fees and expenses of its counsel relating to this Amendment.  

 

[Remainder of page intentionally blank; signature pages follow.]

 

- 5 –

 

 

IN WITNESS WHEREOF, the Borrower, the Initial Project Company Guarantors and the Lender have caused this Amendment to be duly executed by their duly authorized officers, under seal, all as of the date first above written.

 

	
BORROWER:

	
 
	
 
	
 
	
 

	
FUELCELL ENERGY FINANCE II, LLC

	
 
	
 
	
 
	
 

	
By:
	
FuelCell Energy Finance, LLC

	
Its:
	
Sole Member

	
 
	
 
	
 
	
 

	
 
	
By:
	
FuelCell Energy, Inc.

	
 
	
Its:
	
Sole Member

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Michael S. Bishop

	
 
	
 
	
Name:
	
Michael S. Bishop

	
 
	
 
	
Title:
	
Executive Vice President & Chief Financial Officer

 

[Signatures continue on following page.]

 

THIRD AMENDMENT TO LOAN AGREEMENT 

SIGNATURE PAGE

 

 

	
INITIAL PROJECT COMPANY GUARANTORS:

	
 
	
 
	
 
	
 

	
BAKERSFIELD FUEL CELL 1, LLC

	
 
	
 
	
 
	
 

	
By:
	
FuelCell Energy Finance II, LLC

	
Its:
	
Sole Member

	
 
	
 
	
 
	
 

	
 
	
By:
	
FuelCell Energy, Inc.

	
 
	
Its:
	
Sole Member

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Michael S. Bishop

	
 
	
 
	
Name:
	
Michael S. Bishop

	
 
	
 
	
Title:
	
Executive Vice President & Chief Financial Officer 

 

	
BRT Fuel Cell, LLC

	
 
	
 
	
 
	
 

	
By:
	
FuelCell Energy Finance II, LLC

	
Its:
	
Sole Member

	
 
	
 
	
 
	
 

	
 
	
By:
	
FuelCell Energy, Inc.

	
 
	
Its:
	
Sole Member

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Michael S. Bishop

	
 
	
 
	
Name:
	
  Michael S. Bishop

	
 
	
 
	
Title:
	
Executive Vice President & Chief Financial Officer 

 

	
CR FUEL CELL, LLC

	
 
	
 
	
 
	
 

	
By:
	
FuelCell Energy Finance II, LLC

	
Its:
	
Sole Member

	
 
	
 
	
 
	
 

	
 
	
By:
	
FuelCell Energy, Inc.

	
 
	
Its:
	
Sole Member

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Michael S. Bishop

	
 
	
 
	
Name:
	
  Michael S. Bishop

	
 
	
 
	
Title:
	
Executive Vice President & Chief Financial Officer 

 

[Signatures continue on following page.]

 

 

 

 

 

 

THIRD AMENDMENT TO LOAN AGREEMENT 

SIGNATURE PAGE

 

 

	
Yaphank Fuel Cell Park, LLC

	
 
	
 
	
 
	
 

	
By:
	
FuelCell Energy Finance II, LLC

	
Its:
	
Sole Member

	
 
	
 
	
 
	
 

	
 
	
By:
	
FuelCell Energy, Inc.

	
 
	
Its:
	
Sole Member

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Michael S. Bishop

	
 
	
 
	
Name:
	
  Michael S. Bishop

	
 
	
 
	
Title:
	
Executive Vice President & Chief Financial Officer 

 

	
Homestead Fuel Cell 1, LLC

	
 
	
 
	
 
	
 

	
By:
	
FuelCell Energy Finance II, LLC

	
Its:
	
Sole Member

	
 
	
 
	
 
	
 

	
 
	
By:
	
FuelCell Energy, Inc.

	
 
	
Its:
	
Sole Member

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Michael S. Bishop

	
 
	
 
	
Name:
	
  Michael S. Bishop

	
 
	
 
	
Title:
	
Executive Vice President & Chief Financial Officer 

 

	
DERBY FUEL CELL, LLC

	
 
	
 
	
 
	
 

	
By:
	
FuelCell Energy Finance II, LLC

	
Its:
	
Sole Member

	
 
	
 
	
 
	
 

	
 
	
By:
	
FuelCell Energy, Inc.

	
 
	
Its:
	
Sole Member

	
 
	
 
	
 
	
 

	
 
	
 
	
 
	
 

	
 
	
By:
	
/s/ Michael S. Bishop

	
 
	
 
	
Name:
	
  Michael S. Bishop

	
 
	
 
	
Title:
	
Executive Vice President & Chief Financial Officer 

 

[Signatures continue on following page.]

 

 

 

 

 

 

 

 

THIRD AMENDMENT TO LOAN AGREEMENT

SIGNATURE PAGE

 

 

	
LENDER:

	
 
	
 
	
 
	
 

	
GENERATE LENDING, LLC,

	
a Delaware limited liability company

	
 
	
 
	
 
	
 

	
 
	
 
	
 

	
By:
	
/s/ Matan Friedman

	
Name:
	
Matan Friedman

	
Title:
	
Manager

 

THIRD AMENDMENT TO LOAN AGREEMENT

SIGNATURE PAGE

 

 

ACKNOWLEDGMENT AND AGREEMENT

OF

PARENT

 

September 30, 2019

 

Reference is made to (i) that certain Third Amendment to Construction Loan Agreement, dated as of the date hereof (as amended, restated, supplemented or otherwise modified from time to time, the “Amendment”), by and among FUELCELL ENERGY FINANCE II, LLC, a Connecticut limited liability company (“Borrower”), BAKERSFIELD FUEL CELL 1, LLC, a Delaware limited liability company (“Bakersfield”), BRT Fuel Cell, LLC, a New York limited liability company (“BRT”), CR FUEL CELL, LLC, a New York limited liability company (“CR”), Yaphank Fuel Cell Park, LLC, a New York limited liability company (“Yaphank”), Homestead Fuel Cell 1, LLC, a Connecticut limited liability company (“Homestead”), DERBY FUEL CELL, LLC, a Connecticut limited liability company (“Derby”, and collectively with Bakersfield, BRT, CR, Yaphank and Homestead, each, an “Initial Project Company Guarantor”, and together, the “Initial Project Company Guarantors”), and GENERATE LENDING, LLC, a Delaware limited liability company (the “Lender”); (ii) that certain Construction Loan Agreement, dated as of December 21, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the “Loan Agreement”), by and among the Borrower, the Initial Project Company Guarantors and the Lender; and (iii) that certain Guaranty Agreement, dated as of December 21, 2018 (as amended, restated, supplemented or otherwise modified from time to time, the “Parent Guaranty”), by FUELCELL ENERGY, INC., a Delaware corporation (the “Parent”).   Capitalized terms used herein and not otherwise defined herein shall have the respective meanings given to such terms in the Loan Agreement. 

 

The Parent, a guarantor of the full and prompt payment of all of the indebtedness, obligations and liabilities of the Borrower to the Lender to pursuant the Parent Guaranty, hereby:

 

(a)acknowledges receipt of a copy of the Amendment, which amends the Loan Agreement to, among other things, provide for a new period during which the Lender may exercise its option to terminate its Commitment under the Loan Agreement and cause all Working Capital Loans to become immediately due and payable and sets forth a repayment schedule for the outstanding Working Capital Loans and certain prepayment requirements;

 

(b)acknowledges and agrees that all obligations of the Borrower to the Lender under the Loan Agreement, as amended by the Amendment, and the other Loan Documents, are in each case guaranteed by the Parent pursuant to the Parent Guaranty, and reaffirms all of its obligations under the Parent Guaranty; 

 

(c)acknowledges and agrees that the Parent Guaranty, and the Parent’s obligations thereunder, remain in full force and effect, without release, diminution or impairment, notwithstanding the execution and delivery of the Amendment or the modifications to the Loan Agreement set forth therein; and

 

(d)represents, warrants, acknowledges and agrees to and with Lender that (i) the Parent does not hold or claim any right of action, claim, cause of action or damages, either at law or in equity, against Lender which arises from, may arise from, allegedly arise from, are based upon or are related in any manner whatsoever to the Loan Agreement, the Amendment, any other Loan Document or any other related agreement, document or instrument, which are based upon acts or omissions of Lender in connection therewith and (ii) the indebtedness, obligations and liabilities owing by the Parent pursuant to the Parent Guaranty are absolutely owed to Lender, without offset, deduction or counterclaim.

 

[Remainder of page intentionally blank; signature page follows.]

 

 

 

IN WITNESS WHEREOF, the undersigned has executed this Acknowledgment and Agreement under seal as of the date first written above.

 

	
PARENT

	
 
	
 
	
 
	
 

	
FUELCELL ENERGY, INC.

	
 
	
 

	
 
	
 
	
 
	
 

	
By:
	
/s/ Michael S. Bishop
	
(SEAL)

	
Name:
	
Michael S. Bishop

	
Title:
	
Executive Vice President and Chief Financial Officer

 

 

 

THIRD AMENDMENT TO LOAN AGREEMENT

 (ACKNOWLEDGEMENT AND AGREEMENT OF PARENT)

SIGNATURE PAGE

 

 

SCHEDULE 1

 

List of Assets of Borrower and Each Project Company Guarantor

 

CURRENT INFORMATION

 

1.Tangible Personal Property 

Inventory and Equipment.  Set forth below are all the locations where Holdco and each Loan Party currently maintains inventory and equipment of Holdco or such Loan Party, as applicable (whether or not in the possession of Holdco or such Loan Party):  

 

	
Name of 

Holdco/Loan Party 
	
Address/City/State/Province/Zip Code/Postal Code 
	
Estimated Value of Inventory and Equipment 

	
Bakersfield Fuel Cell 1, LLC
	
Modules
	
Location
	
$14.1M 

	
Cxxxx-136
	
 

260 N. Smith Ave 

Corona, CA 92880 

	
Cxxxx-137
	
 

260 N. Smith Ave 

Corona, CA 92880 

	
Cxxxx-138
	
264 Chase River Rd., 

Waterbury, CT 06704 

	
Cxxxx-139
	
264 Chase River Rd., 

Waterbury, CT 06704 

 

	
BOP
	
Location

	
MxxxQ: Skid #1 
	
260 N. Smith Ave, 

Corona, CA 82880

 

	
MxxxQ: Skid #2
	
1881 Route 461881 Route 46 

Ledgewood, NJ 07852

 

	
MxxxQ: Skid #2a
	
1881 Route 461881 Route 46 

Ledgewood, NJ 07852

	
MxxxQ: Skid #3/Crates
	
1881 Route 461881 Route 46 

Ledgewood, NJ 07852

 

	
Desulferizer Vessels
	
6900 McHard Road (FM 2234)

Houston, TX 77053

 

 

 

 

	
 
	
EBOP Leader
	
300 Chase River Rd, 

Waterbury, CT 06704

 
	
 

	
EBOP  Follower
	
264 Chase River Rd, 

Waterbury, CT 06704

 

	
MxxxQ: Skid #1 
	
260 N. Smith Ave., 

Corona, CA 92880

 

	
MxxxQ: Skid #2
	
1881 Route 461881 Route 46 

Ledgewood, NJ 07852

 

	
MxxxQ: Skid #2a
	
1881 Route 461881 Route 46 

Ledgewood, NJ 07852

 

	
MxxxQ: Skid #3/Crates
	
1881 Route 461881 Route 46 

Ledgewood, NJ 07852

 

	
Desulferizer Vessels
	
Houston, TX (Ward Tank)

	
EBOP Leader
	
6900 McHard Road (FM 2234)

Waterbury, CT  77053

 

	
EBOP  Follower
	
6900 McHard Road (FM 2234)

Waterbury, CT 77053

	
BRT Fuel Cell, 

LLC
	
N/A 
	
N/A 

	
Yaphank Fuel Cell Park, LLC
	
Module – Cxxxx-148

264 Chase River Rd., 

Waterbury, CT 06704

 

Module – Cxxxx-144

264 Chase River Rd., 

Waterbury, CT 06704 
	
$4.3M

	
CR Fuel Cell, LLC 
	
BOP

MxxxQ: Skid 2 & 2a  Only

MxxxQ: Skid #1 

MxxxQ: Skid #2

MxxxQ: Skid #2a

MxxxQ: Skid #3/Crates

MxxxQ: Skid #1 

MxxxQ: Skid #2

MxxxQ: Skid #2a

MxxxQ: Skid #3/Crates

 

1578 Sussex Turnpike,  

Randolph, NJ 0768
	
$4.0M 

 

 

 

** On June 7, 2019, Lender received an e-mail attaching a PDF, which included the project asset information identified above, along with pictures of such collateral. In addition, the information on collateral identified above was provided to Lender identifying project values.

 

 

2.Real Estate Related UCC Collateral – Owned or Leased Real Property.  

Set forth below are all the locations where Holdco or any Loan Party owns or leases any real property or otherwise conducts business: 

 

			
	
Name of Holdco/Loan Party
	
Address/City/State/Province/Zip Code/Postal Code
	
Owned or Leased

	
Bakersfield Fuel Cell, I LLC. 
	
7200 East Brundage Lane, Bakersfield, CA 
	
License 

	
Derby Fuel Cell, LLC
	
200 Roosevelt Drive

Derby, CT 06418
	
Ground Lease

	
Yaphank Fuel Cell Park, LLC
	
350 Horseblock Road

Yaphank, NY 11980
	
Ground Leasefcel-ex103_41.htm

 

EXHIBIT 10.3

THIRD AMENDMENT TO RIGHT TO FINANCE AGREEMENT

THIS THIRD AMENDMENT TO RIGHT TO FINANCE AGREEMENT (this "Amendment") is dated as of September 30, 2019 (the "Effective Date"), by and among FUELCELL ENERGY, INC., a Delaware corporation (the "Parent"), FUELCELL ENERGY FINANCE II, LLC, a Connecticut limited liability company, a wholly-owned subsidiary of the Parent (the "Borrower") ,and GENERATE LENDNG, LLC, a Delaware limited liability company (the "Lender").

WHEREAS, the Borrower, the Parent and the Lender are parties to a Right to Finance Agreement dated December 21, 2018, (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "Right to Finance"); and

WHEREAS, the Borrower, the Initial Project Company Guarantors and the Lender are parties to a Construction Loan Agreement dated as of December 21, 2018 (as amended, restated, amended and restated, supplemented or otherwise modified from time to time, the "Loan Agreement"), pursuant to which the Lender has made a construction loan facility available to the Borrower; and

WHEREAS, concurrently with the execution of this Amendment, the Borrower, the Initial Project Company Guarantors, and the Lender are entering into that certain Third Amendment to Construction Loan Agreement (the "Third Amendment"), which Third Amendment includes an acknowledgement and agreement of the Parent; and

WHEREAS, the Borrower, the Parent and the Lender have agreed to modify certain provisions of the Right to Finance, subject to the terms and conditions set forth herein.

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

1.Capitalized Terms. Capitalized terms used in this Amendment which are not otherwise defined herein shall have the meanings assigned thereto in the Right to Finance.

2.Amendment of the Right to Finance. Each of the parties hereto hereby agrees that, on and as of the Effective Date:

(a)The last sentence of Paragraph 6 of the Right to Finance is hereby amended by deleting such sentence in its entirety and substituting in lieu thereof the following new sentence to read in its entirety as follows:

"In addition, if the Lender exercises its right to terminate the Commitment and require repayment of the Working Capital Loans pursuant to Section 2.3(i) of the Loan Agreement, this Agreement shall terminate as of the date of such exercise of such right."

(b)Paragraph 8 of the Right to Finance is hereby amended by adding the following new sentence to the end of such Paragraph 8:

 

 

“Notwithstanding the foregoing, this Agreement shall automatically terminate and be of no further force or effect after September 30th, 2019.”

3.Applicable Law. THIS AMENDMENT SHALL BE GOVERNED BY THE LAWS OF THE STATE OF NEW YORK WITHOUT REGARD TO THE CONFLICTS OF LAW PROVISIONS.

4.Counterparts; Electronic Delivery. This Amendment may be executed in one or more counterparts (all counterparts together reflecting the signature of all parties) each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. Delivery by any party to this Amendment of its signatures hereon through facsimile or other electronic image file (including .pdf) (i) may be relied upon as if this Amendment were physically delivered with an original hand-written signature of such party, and (ii) shall be binding on such party for all purposes.

5.Successors. This Amendment shall be binding upon and inure to the benefit of the parties hereto and their respective successors and assigns.

6.Final Agreements. This Amendment represents the final agreement of the Borrower, the Parent and the Lender with respect to the subject matter hereof, and may not be contradicted, modified or supplemented in any way by evidence of any prior or contemporaneous written or oral agreements of the Borrower, the Parent and the Lender.

[Remainder of page intentionally blank; signature page follows.]

 

 

 

IN WITNESS WHEREOF, the Borrower, the Parent and the Lender have caused this Amendment to be duly executed by their duly authorized officers, under seal, all as of the date first above written.

	
 
	
 

BUYER:

 

	
 
	
FUELCELL ENERGY FINANCE II, LLC

 

	
 
	
By:
	
FuelCell Energy Finance, LLC.

	
 
	
Its:
	
Sole Member

	
 
	
 
	
 

	
 
	
By:
	
FuelCell Energy, Inc.

	
 
	
Its:
	
Sole Member

	
 
	
 
	
 

	
 
	
By:
	
/s/ Michael S. Bishop

	
 
	
Name:
	
Michael S. Bishop

	
 
	
Title:
	
Executive Vice President & Chief Financial Officer

	
 
	
PARENT:
	
 

	
 
	
 
	
 

	
 
	
FUELCELL ENERGY, INC.

 

	
 
	
 
	
 

	
 
	
By:
	
/s/ Michael S. Bishop

	
 
	
Name:
	
Michael S. Bishop

	
 
	
Title:
	
Executive Vice President & Chief Financial Officer

	
 
	
 
	
 

	
 
	
LENDER:
	
 

	
 
	
 
	
 

	
 
	
GENERATE LENDING, LLC.

A Delaware limited liability company

	
 
	
 
	
 

	
 
	
By:
	
/s/ Matan Friedman

	
 
	
Name:
	
Matan Friedman

	
 
	
Title:
	
Manager

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