Document:

fcel-ex105_44.htm

 

EXHIBIT 10.5

GUARANTY AGREEMENT 

This Guaranty Agreement (this "Guaranty") is entered into as of February 11, 2020, by FuelCell Energy, Inc., a Delaware corporation (herein together with its successors and assigns, the "Guarantor"), in favor of Crestmark Equipment Finance, an unincorporated division of a federal bank, MetaBank (herein together with its successors and assigns, the "Guaranteed Party").

WHEREAS, Central CA Fuel Cell 2, LLC, a Delaware limited liability company (“Project Developer”) and an affiliate of Guarantor, is the developer and owner of that certain fuel cell power generation project located at the City of Tulare Wastewater Treatment Plant at 411 East Kern Avenue, Tulare, California 93274 (the “Project”);

WHEREAS, Guaranteed Party desires to provide financing to the Project in a transaction structured as a sale and leaseback of the Project pursuant to which: (i) Guaranteed Party will purchase the Project from Project Developer pursuant to terms and conditions set forth in a Purchase and Sale Agreement (the “Purchase and Sale Agreement”) and (ii) Guaranteed party, simultaneously therewith, will lease the Project back to Project Developer pursuant to the terms and conditions set forth in a Lease Agreement (the “Lease Agreement”);

WHEREAS, in connection with Guaranteed Party and Project Developer entering into the Purchase and Sale Agreement and Lease Agreement, such parties will also enter into certain agreements related thereto as set forth in Schedule I attached hereto (such agreements, together with the Purchase and Sale Agreement and Lease Agreement are collectively referred to as the “Sale Leaseback Agreements”); and

WHEREAS, in consideration for the benefits that Guarantor will receive as a result of Project Developer’s entering into the foregoing transaction with Guaranteed Party, Guarantor is willing to guaranty Project Developer’s payment and performance obligations under the Sale Leaseback Agreements in the event Project Developer does not fulfill any of such payment or performance obligations.

NOW, THEREFORE, in order to induce the Guaranteed Party to enter into the Sale Leaseback Agreements and for other good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, Guarantor hereby agrees as follows:

1.Guarantor unconditionally guaranties to the Guaranteed Party:

(a)the performance of all obligations owing by Project Developer to Guaranteed Party pursuant to the terms and conditions of the Sale Leaseback Agreements;

 

 

 

(b)the payment when due of all amounts payable by Project Developer to the Guaranteed Party pursuant to the terms and conditions of the Sale Leaseback Agreements; and

(c)the payment of all reasonable attorney's fees and other reasonable costs and expenses incurred by the Guaranteed Party in connection with commencing any action to enforce this Guaranty against Guarantor (collectively, the “Obligations”).

2.This Guaranty shall be a continuing guarantee of performance and payment and not of collection. It shall remain in full force and effect for so long as any Obligations remain outstanding pursuant to the Sale Leaseback Agreements (the "Guaranty Term"); provided, that this Guaranty shall survive beyond such date to the extent any claim is made hereunder prior to such date and is not resolved as of such date, in which case, as to such claims this Guaranty shall remain in full force and effect until all such claims are resolved. Upon the failure of Project Developer to pay any payment Obligation due to the Guaranteed Party under the Sale Leaseback Agreements (after expiration of all applicable grace or cure periods), the Guaranteed Party shall give written notice of such failure to Guarantor and Guarantor shall pay or cause to be paid the amount owed within ten (10) business days following receipt of such written notice from Guaranteed Party.  Upon the failure of Project Developer to perform any nonpayment Obligation required under the Sale Leaseback Agreements (after expiration of all applicable grace or cure periods), the Guaranteed Party shall give written notice of such failure to Guarantor and Guarantor shall perform or cause to be performed any such Obligation within thirty (30) business days following receipt of such written notice from Guaranteed Party; provided that if such default is capable of being cured but cannot be cured within such thirty-day period, and Guarantor is diligently pursuing such cure, the cure period shall be extended for so long as is necessary to effect such cure (but in no event in excess of sixty (60) days beyond such thirty-day period).

3.Guarantor shall not be discharged or released from its obligations hereunder by any proceeding, voluntary or involuntary, involving the bankruptcy, insolvency, receivership, reorganization, liquidation or arrangement of Project Developer or by any defense which Project Developer  may have by reason of the order, decree or decision of any court or administrative body resulting from any such proceeding.

4.This Guaranty shall remain in effect notwithstanding: (a) any change in the amount, time or manner of payment of any sums required to be paid pursuant to the Sale Leaseback Agreements; (b) any change in any of the terms, covenants, conditions or provisions of the Sale Leaseback Agreements; (c) any amendments or modifications to the Sale Leaseback Agreements; (d) any permitted assignment of the Sale Leaseback Agreements or of any sums payable under the Sale 

 

 
 

 

Leaseback Agreements; (e) receipt of any security for the payment of the Sale Leaseback Agreements and any exchange, enforcement, waiver or release of any such security; (f) the application of any such security to the Sale Leaseback Agreements; and (g) any release in whole or in part of any of the Obligations or settlement or compromise of differences with respect thereto.

5.Guarantor waives any right to require the Guaranteed Party to: (a) proceed against the Project Developer or any other person or entity directly or contingently liable for the payment of any of the Sale Leaseback Agreements; (b) pursue any other remedy in the Guaranteed Party's power whatsoever; or (c) notify Guarantor of any default by Project Developer in the payment of any sums required to be paid pursuant to the Sale Leaseback Agreements or in the performance of any term, covenant or condition therein required to be kept, observed or performed by Project Developer except the notices specified in Section 2 and Section 10 of this Guaranty.  Guarantor waives any defense arising by reason of the invalidity, illegality or lack of enforceability of any Sale Leaseback Agreement, the failure of the Guaranteed Party to perfect or maintain perfection of any interest in any collateral and unless reserved herein, any other circumstance whatsoever that might otherwise constitute a legal or equitable discharge, release or defense of a guarantor or surety, or that might otherwise limit recourse against Guarantor.

6.Upon demand, Guarantor agrees to pay and perform, in accordance with Section 2 of this Guaranty, all Obligations set forth in any Sale Leaseback Agreements. This Guaranty and Guarantor's payment obligations hereunder shall continue to be effective or be reinstated, as the case may be, if at any time payment of any of the Obligations is rescinded or must otherwise be restored or returned by the Guaranteed Party, all as though such payment had not been made. Until the payment and performance in full of all of the Obligations, Guarantor waives and shall have no right of subrogation against Project Developer. Guarantor waives all presentments, demands for performance, notices of non-performance, protests, notices of dishonor, and notices of acceptance of this Guaranty except the notices specified in Section 2 and Section 10 of this Guaranty.

7.(a)  During the Guaranty Term, as long as Guarantor is a publicly traded company filing reports with the United States Securities and Exchange Commission (“SEC”), within ten (10) business days of Guarantor’s filing of any Form 10 Q or 10 K, Guarantor shall provide Guaranteed Party with copies of all such filings.

(b) If, at any time during the Guaranty Term, Guarantor ceases to be a publicly traded company and, as a result, the foregoing information is no longer filed with the SEC, then, from and after such time, Guarantor shall: (i) within sixty (60) days after the end of each quarterly period during the Guaranty Term, deliver to Guaranteed Party unaudited quarterly financial statements for the Guarantor as of the end of such quarterly period, prepared in accordance with generally accepted accounting principles in the United States (“GAAP”); and (ii) within one hundred twenty (120) days 

 

 
 

 

after the end of each calendar year , deliver to Guaranteed Party audited annual financial statements for the Guarantor, as of the end of such calendar year, prepared in accordance with GAAP; provided that if audited annual financial statements are not prepared for Guarantor in the ordinary course for any year then unaudited annual financial statements for the Guarantor for such year may be provided if they are certified by the chief financial officer of the Guarantor as prepared in accordance with GAAP.

8.As of the date hereof, Guarantor represents and warrants to the Guaranteed Party that:

(a)Guarantor is a corporation duly incorporated, validly existing and in good standing under the laws of the State of Delaware.

(b)The execution, delivery and performance of this Guaranty: (1) have been duly authorized by all necessary action required by Guarantor's organizational documents; (2) do not require any approval or consent of any stockholder, trustee or holder of any obligations of Guarantor except such as have been duly obtained; and (3) do not contravene any law, governmental rule, regulation or order now binding on Guarantor, or the organizational documents of Guarantor, or contravene the provisions of, or constitute a default under, or result in the creation of any lien or encumbrance upon the property of Guarantor under, any indenture, mortgage, contract or other agreement to which Guarantor is a party or by which it or its property is bound.

(c)This Guaranty constitutes the legal, valid and binding obligation of Guarantor, enforceable against Guarantor in accordance with the terms hereof, except as limited by applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting the enforcement of creditors' rights generally, and by applicable laws (including any applicable common law and equity) and judicial decisions which may affect the remedies provided herein.

9.A default shall be deemed to have occurred hereunder ("Default") if: (a) Guarantor shall fail to perform or observe any covenant or obligation required to be performed by it hereunder; (b) a material inaccuracy exists in any representation or warranty made by Guarantor hereunder; or (c) Guarantor generally fails to pay its debts as they become due or its admission in writing of its inability to pay the same, or the commencement of any bankruptcy, insolvency, receivership or similar proceeding by or against Guarantor or any of its properties or business (unless, if involuntary, the proceeding is dismissed within ninety  (90) days of the filing thereof) or the rejection of this Guaranty in any such proceeding;

 

 
 

 

10.Upon a Default hereunder, the Guaranteed Party may, at its option, declare this Guaranty to be in default by written notice to Guarantor (without election of remedies), and at any time thereafter, may do any one or more of the following, all of which are hereby authorized by Guarantor:

A.declare the Sale Leaseback Agreements to be in default and thereafter sue for and recover all damages and all other sums otherwise recoverable from Project Developer thereunder; and/or

B.pursue any and all legal remedies available to the Guaranteed Party under this Guaranty as a result of such Default.

No right or remedy referred to in this Section is intended to be exclusive, but each shall be cumulative, and shall be in addition to any other remedy referred to above or otherwise available at law or in equity, and may be exercised concurrently or separately from time to time.

The failure of the Guaranteed Party to exercise the rights granted hereunder upon any Default by Guarantor shall not constitute a waiver of any such right upon the continuation or reoccurrence of any such Default.

The obligations of Guarantor hereunder are independent of the obligations of Project Developer under the Sale Leaseback Agreements. A separate action or actions may be brought and prosecuted against Guarantor whether or not an action is brought against Project Developer or whether Project Developer be joined in any such action or actions.

11.GUARANTOR AGREES THAT THIS GUARANTY AND THE RIGHTS AND OBLIGATIONS OF GUARANTOR HEREUNDER SHALL IN ALL RESPECTS BE GOVERNED BY, AND CONSTRUED IN ACCORDANCE WITH, THE INTERNAL LAWS OF THE STATE OF NEW YORK (WITHOUT REGARD TO THE CONFLICT OF LAWS PRINCIPLES OF SUCH STATE OTHER THAN SECTION 5-1401 AND 5-1402 OF THE NEW YORK GENERAL OBLIGATIONS LAW). Guarantor agrees that any action or proceeding arising out of or relating to this Guaranty may be commenced in any state or Federal court in the State of New York; and agrees that a summons and complaint commencing an action or proceeding in any such court shall be properly served and shall confer personal jurisdiction if served personally or by certified mail, return receipt requested, to it at its address hereinafter set forth, or as it may provide in writing from time to time, or as otherwise provided under the laws of the State of New York.

 

 
 

 

12.GUARANTOR AND, IN ACCEPTING THIS GUARANTY, GUARANTEED PARTY HEREBY WAIVE TRIAL BY JURY IN ANY ACTION OR PROCEEDING TO WHICH GUARANTOR OR GUARANTEED PARTY MAY BE A PARTY ARISING OUT OF OR IN ANY WAY PERTAINING TO THIS GUARANTY OR THE SALE LEASEBACK AGREEMENTS. 

13.The obligations of Guarantor under this Guaranty may not be assigned or delegated without the prior written consent of the Guaranteed Party. Guaranteed Party may assign (i) all or any of its rights and obligations under this Guaranty to any of its affiliates, and (y) all of its rights, but not its obligations, under this Guaranty to any other person in connection with any permitted assignment of its rights under the Sale Leaseback Agreements and shall, in each case, give prompt written notice to the Guarantor following any such assignment. This Guaranty shall inure to the benefit of the Guaranteed Party, its successors and permitted assigns, and shall be binding upon the successors and permitted assigns of Guarantor.  In the event of a change of control with regard to Project Developer or an assignment of the Lease Agreement by Project Developer, to the extended permitted or otherwise approved by Guaranteed Party, then Guarantor may request the substitution of a replacement Guarantor for the Sale Leaseback Agreements which such substitution and the terms therefore may be approved or denied by Guaranteed Party in its reasonable discretion. 

14.All notices hereunder shall be in writing, personally delivered, delivered by overnight courier service, sent by facsimile transmission (with confirmation of receipt), or sent by certified mail, return receipt requested, addressed as follows:

 

			
	
If to Guarantor:
	
 
	
FuelCell Energy, Inc.

	
 
	
 
	
3 Great Pasture Road

	
 
	
 
	
Danbury, Ct. 06810

	
 
	
 
	
Attn:  Legal Department

	
 
	
 
	
Telephone: 203-825-6000

	
 
	
 
	
Facsimile: 203-825-6069

	
 
	
 
	
 

	
 
	
 
	
 

	
If to the Guaranteed Party:
	
 
	
Crestmark Equipment Finance

	
 
	
 
	
5480 Corporate Drive

	
 
	
 
	
Suite 350

	
 
	
 
	
Troy, MI 48098

	
 
	
 
	
Attn: Corporate Counsel

	
 
	
 
	
Telephone: (513) 455-2300

	
 
	
 
	
Facsimile: (513) 763-1637

 

 
 

 

 

or to such other address as such party shall from time to time designate in writing to the other party; and shall be effective from the date of receipt.

15.This Guaranty constitutes the entire agreement between the parties with respect to the subject matter hereof and shall not be rescinded, amended or modified in any manner except by a document in writing executed by both parties. Any provision of this Guaranty which is prohibited or unenforceable in any jurisdiction shall, as to such jurisdiction, be ineffective to the extent of such prohibition or unenforceability without invalidating the remaining provisions hereof, and any such prohibition or unenforceability in any jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction.

 

 
 

 

IN WITNESS WHEREOF, Guarantor, through a duly authorized officer, has duly executed this Guaranty Agreement as of the date first written above.

 

			
	
GUARANTOR:

	
 
	
 
	
 

	
 
	
 
	
 

	
FUELCELL ENERGY, INC.

	
 

	
 

	
By:
	
 
	
/s/ Michael S. Bishop

	
Name:
	
 
	
Michael S. Bishop

	
Title:
	
 
	
Executive Vice President, Chief 

	
 
	
 
	
Financial Officer and Treasurer

 

 

 
 

 

 

	
Accepted and agreed:

	
 

	
CRESTMARK EQUIPMENT FINANCE

	
By:
	
/s/ Thomas R. Rutherford

	
Name:
	
Thomas R. Rutherford

	
Title:
	
President

 

 

 
 

 

SCHEDULE I

Sale Leaseback Agreements

All agreements between the Project Developer and the Guaranteed Party related to the Sale Leaseback Transaction, including the Bill of Sale delivered pursuant to the Purchase and Sale Agreement dated February 11, 2020 and the Rental Schedule delivered pursuant to the Lease Agreement dated February 11, 2020.fcel-ex106_21.htm

 

 

 

 

EXHIBIT 10.6

 

CENTRAL CA FUEL CELL 2, LLC, FUELCELL ENERGY, INC.,

AND

CRESTMARK EQUIPMENT FINANCE

TECHNOLOGY LICENSE AND ACCESS AGREEMENT

FOR

 

TULARE BIOMAT FUEL CELL POWER PLANT

 

This Technology License and Access Agreement (“Agreement”) dated February 11, 2020 (“Effective Date”) is by and between Crestmark Equipment Finance, a division of Metabank (“Lessor”), Central CA Fuel Cell 2, LLC, a Delaware limited liability company (“Lessee”), and FuelCell Energy, Inc., a Delaware corporation (“Service Provider”) (Service Provider, Lessor and Lessee are each individually, a “Party”, and collectively, the “Parties”).

 

WHEREAS, Lessor has purchased one SureSource 3000 Power Plant with corresponding SureSource Modules and ancillary balance of plant components related thereto (collectively, the "SureSource Power Plant") from Lessee under the Purchase and Sale Agreement, dated the 11th day of February, 2020 (the “Purchase Agreement”) attached hereto as Exhibit A and the Equipment Lease Agreement, dated the 11th day of February, 2020 (the “Lease Agreement”) attached hereto as Exhibit B, as part of a sale leaseback transaction whereby Lessor is leasing to Lessee and Lessee has installed and will operate the SureSource Power Plant at the Tulare wastewater treatment plant, Tulare, California (the “Project”); and

 

WHEREAS, said SureSource Power Plant shall be operated and maintained by Service Provider for Lessee under a Service Agreement dated the 27th  day of December, 2019 between Service Provider and Lessee  (the “Service Agreement”), as attached hereto as Exhibit C, and

 

WHEREAS, Service Provider is the ultimate parent of Lessee; 

 

WHEREAS, in connection with the Lease Agreement, Lessee will grant to Lessor a security interest in, among other things, the Service Agreement; and

 

WHEREAS, the Parties wish to establish the provisions for operation and maintenance of the Project in the event of a Failure Event (as defined herein below).

 

NOW, THEREFORE, the Parties, in consideration of the mutual promises contained herein and other good and valuable consideration the receipt and sufficiency of which is hereby acknowledged, and agreeing to be legally bound, hereby agree to the following:

 

	
 
	
1.0
	
Definitions:

-
 

 

 

 

 

	
 
	
1.1
	
“Competitor” or “Competitors” shall be as defined in Section 1.2 of the Service Agreement.
	
 

	
 
	
1.2
	
“SureSource Operations Technology” means that portion of the SureSource Technology comprising trade secrets, know-how and other confidential information owned or otherwise controlled/licensed by Service Provider and/or Lessee which are necessary or useful for the operation and maintenance of the SureSource Power Plant used in the Project, including but not limited to processes, techniques, algorithms, software, content, data, databases, protocols, specifications, manuals, drawings, reports, designs, plans, work product and other information/materials.
	
 

	
 
	
1.3
	
“SureSource Fuel Cell Module” or “SureSource Module” shall be as defined in Section 1.19 of the Service Agreement.
	
 

	
 
	
1.4
	
“Failure Event” shall mean that one or more of the following events has occurred:

1.4.1  Service Provider is no longer capable of providing the Services or capable of delivering the SureSource Modules to Lessee for use at the Project in accordance with the planned maintenance schedule;

1.4.2  The filing of a petition under Chapter 11 of the United States Bankruptcy Code (the “Bankruptcy Code”) regarding Service Provider, and the earliest to occur of:

(a) The debtor’s rejection of this Agreement and Service Agreement, pursuant to the exercise of the debtor’s rights under 11 U.S.C. Section 365; or

(b) A sale under Section 363 under Chapter 11 of the Bankruptcy Code is unlikely to occur and Service Provider is not providing, or is no longer capable of providing the Services as required by this Agreement;

1.4.3  The filing of a petition under Chapter 7 of the Bankruptcy Code regarding Service Provider (or the conversion of a proceeding under Chapter 11 of the Bankruptcy Code to a proceeding under Chapter 7 of the Bankruptcy Code).

1.4.4. Service Provider is acquired by a third party, which fails to continue the business of Service Provider or adequately fulfill the requirements of the Service Agreement.  

	
 
	
1.5
	
“Service” or “Services” includes and shall be limited to activities identified under Section 2.0 of the Service Agreement.

	
 
	
1.6
	
“Term” shall be as defined in Section 5.1 below.

	
 
	
2.0
	
Notice:

Lessee shall promptly notify Lessor in writing upon the occurrence of any Failure Event.

	
 
	
3.0
	
Service License:

 

Service Provider hereby grants to Lessor upon a Failure Event a license to use the SureSource Operations and Maintenance Manuals (the “Licensed Materials’), solely for the operation, servicing, monitoring and maintenance of the Project for the Term of this Agreement, including but not limited to the right to use the  SureSource Power Plant communications system software and firmware, and the SureSource Power Plant monitoring software.  The Operations and Maintenance Manuals shall be delivered to 

-
 

 

 

 

 

Lessor or its designee prior to the commencement of the Lease Agreement.  Without limiting the foregoing, the Parties acknowledge and agree that the license set forth herein is effective as of the Effective Date but is only exercisable by Lessor upon the occurrence of a Failure Event as defined in Section 1.4 above and otherwise in accordance with this Agreement. Lessor’s exercise of the license shall become automatic upon the occurrence of a Failure Event without any further action required on the part of any party.  For the sake of clarity, Lessor’s exercise of the license shall include the right of Lessor to share the Licensed Materials with a third party, and the use by such third party of the Licensed Materials, as is reasonably necessary in Lessor’s reasonable discretion, to continue to maintain the SureSource Power Plant.  Such license shall be sublicenseable and transferable by Lessor to (i) any party which Lessor engages for the purposes of maintaining the SureSource Power Plant or (ii) to any purchaser of the SureSource Power Plant from Lessor; provided, however, that any disclosure to a sublicensee (i) shall not be a Competitor (unless a Failure Event has occurred), (ii) shall be subject to the provisions of the Mutual Confidentiality Agreement of September 17, 2019 between FuelCell Energy, Inc. and Crestmark, and (iii) shall at all times be limited to the SureSource Power Plant for the Project.  Notwithstanding the foregoing, Lessor may share the Licensed Materials at any time from the date hereof with DAI Management Consultants, Inc. (“DAI”) for the purposes of allowing DAI to develop a backup servicing support plan for Lessor and to fulfill DAI’s scope of work under the Owner’s Representative Agreement between DAI and Lessor.   For all purposes under this Agreement, DAI Management Consultants, Inc., or any successor organization, shall conclusively be presumed to not be a Competitor.

 

	
 
	
4.0
	
Training, Employment of Personnel and Documentation

 

	
 
	
4.1
	
Training: Promptly upon written notice from Lessor at any time after execution of this Agreement, Service Provider shall provide Service Provider’s employee equivalent SureSource 3000 classroom training to no more than three (3) Lessor-designated personnel or Lessor designee.  So long as there has been no Failure Event, then the Lessor designee shall not be a Competitor or an employee of a Competitor with respect to the SureSource Technology and the operation of the Project, trouble-shooting and preventative maintenance for the Project and the SureSource Power Plant, and replacement of SureSource Modules at the Project. This training shall include an understanding of the SureSource 3000 technology, including the fuel cell stacks, module assemblies and the electrical and mechanical balance of plant components and the biogas cleanup equipment. Further, trained personnel will be familiar with key operating protocols, service call procedures, and operating tests, including documenting and maintaining a formal change-out process when the fuel cell stacks reach the end of life.  So long as there has been no Failure Event, then Service Provider may, in its sole discretion, require the execution of appropriate non-disclosure and non-compete agreements prior to the commencement of any training hereunder. Personnel trained pursuant to this Agreement  will not be trained in or perform manufacturing or SureSource Module replacement, or regulatory compliance requirements,  but are expected to have sufficient knowledge to take a conditioned SureSource 3000 Module and manage contractors performing delivery, installation and commissioning of the replacement Modules at the Project. Additional trainees will be at Lessor’s cost and expense. 

 

-
 

 

 

 

 

	
 
	
4.2
	
Fees: Fees associated with initial and ongoing training of Lessor’s third-party designee shall be paid by Lessee pursuant to the fee schedule is attached hereto as Exhibit D. Any changes to the fee structure on Exhibit D shall be mutually agreed upon.

 

	
 
	
4.3
	
Usage Conditions: Lessor agrees that any personnel and/or designees trained pursuant to this Article 3 shall use such training solely for the purpose of operation and maintenance of the Project after a Failure Event and shall not use such training for any other purpose. 

 

	
 
	
4.4
	
Contacts:  Service Provider agrees to identify and document major contractors involved in the Service of the Project. Documentation of contractors will be as agreed by Service Provider and Lessor, and might include subcontractors for the electrical and mechanical balance of plant and major original equipment suppliers and manufacturers. Lessor will also have access to Service Provider’s Customer Service personnel in the normal course of operation of the Project. Lessor agrees not to contact any party outside the normal course of business prior to a Failure Event. 

 

	
 
	
4.5
	
Employment of Personnel: In the event of Service Provider’s filing for or announcement of liquidation, Service Provider will not object or otherwise interfere in Lessor’s employment of former Service Provider personnel for the purpose of Service of the Project through the end of the Lease Agreement.

 

	
 
	
4.6
	
Performance Metrics: Lessor and its designee shall be kept abreast by Lessee and Service Provider of major developments with the Project through quarterly and annual customer reports in accordance with Service Provider’s standard customer format, the form of which is attached hereto as Exhibit E.  All reports will be delivered to Lessor within 45 days of the last day of each reporting period.

 

	
 
	
4.7
	
Documentation: Promptly upon written notice from Lessor at any time after execution of this Agreement, Service Provider will provide Lessor or its designee with agreed upon documentation of policies, procedures and lists, as applicable, including Service Provider’s service organization, maintenance processes, spare parts and logistics plans so that such designee may provide annual reporting to the Lessor. 

 

	
 
	
5.0
	
Term and Termination: 

Term and Termination: This Agreement shall come into force as of the Effective Date and shall remain in full force and effect for so long as Lessor (or any purchaser of the SureSource Power Plant from Lessor) owns the SureSource Power Plant (“Term”). 

 

	
 
	
6.0
	
Confidentiality: This Agreement is subject to the Mutual Confidentiality Agreement of September 17, 2019 between FuelCell Energy, Inc. and Crestmark. All information provided pursuant to this Agreement shall be treated as Confidential Information by Lessor.

	
 
	
7.0
	
Consent to Pledge.   Service Provider consents to the pledge of, and security interest granted in, the Service Agreement by Lessee in favor of Lessor in connection with the Lease Agreement.

-
 

 

 

 

 

	
 
	
8.0
	
Representations and Warranties: Each Party hereto represents and warrants that (a)  it  has  the power and authority to enter into this Agreement and perform its obligations hereunder; and(b) the execution and delivery of this Agreement does not conflict with or violate any provisions of or otherwise conflict with, violate or breach or constitute a default or require any consent under, any contractual obligation or court or administrative order by which such Party is bound.

	
 
	
9.0
	
Indemnity: Each Party shall indemnify, defend and hold harmless the other Party hereto  and its affiliates, and each of their respective employees, officers, directors and agents, from and against any and all third party claims for its (i) material breach of any representations, warranties and covenants under this Agreement; (ii) infringement or misappropriation of the patent rights, trade secrets or other intellectual property rights of Service Provider or any third party; and (iii) injury to persons or damages to property which it causes as a result of its performance of its obligations hereunder, unless such injury or damages are directly caused by the other Party’s grossly negligent acts or willful misconduct.

	
 
	
10.0
	
Severability: Should any of the provisions of this Agreement be or become fully or    partly invalid or unenforceable, the remainder of the Agreement shall be valid and enforceable. Such invalid or unenforceable provision shall be replaced by a provision which shall come as close as possible to the purpose of the invalid provision.

	
 
	
11.0
	
Waiver: The failure of either Party at any time or from time to time to exercise any of its rights or to enforce any of the terms, conditions or provisions under this Agreement shall not be deemed to be a waiver of any such rights nor shall it prevent such Party from subsequently asserting or exercising any such rights.

	
 
	
12.0
	
Governing Law: This Agreement shall be governed and  construed in  accordance with the laws of the State of New York except for that portion of its laws relating to any conflicts of laws principles.

	
 
	
13.0
	
Disputes: Any and all disputes resulting from, concerning the validity of or arising in connection with this Agreement that cannot be settled by the Parties shall be submitted to a court of competent jurisdiction within the State of New York.

	
 
	
14.0
	
Amendments and Modifications: This Agreement may only be amended by a written instrument, properly executed by duly authorized officers of the Parties hereto.

 

 

 

 

 

 

[Signature Page Follows]

 

 

-
 

 

 

 

 

 

IN WITNESS WHEREOF, the Parties have caused this Agreement to be duly executed as of the Effective Date in their respective corporate names by their duly authorized representatives.

 

 

 

	
Service Provider:
	
Lessee:

	
 
	
 

	
 
	
 

	
FuelCell Energy, Inc.
	
Central CA Fuel Cell 2, LLC

	
 
	
 

	
 
	
 

	
/s/ Michael S. Bishop
	
 
	
/s/ Michael S. Bishop
	
 

	
Name:  Michael S. Bishop
	
Name:  Michael S. Bishop

	
Title:  Executive Vice President,
	
Title:  Executive Vice President,

	
Chief Financial Officer and Treasurer
	
Chief Financial Officer and Treasurer

	
 
	
 

	
 
	
 

	
Date:  February 11, 2020
	
Date:  February 11, 2020

	
 
	
 

	
 
	
 

	
 
	
 

	
Lessor:
	
 

	
 
	
 

	
Crestmark Equipment Finance
	
 

	
 
	
 

	
 
	
 

	
/s/ Thomas R. Rutherford
	
 
	
 

	
Name: Thomas R. Rutherford
	
 

	
 
	
 

	
 
	
 
	
 

	
Title:  President
	
 

	
 
	
 

	
 
	
 
	
 

	
Date:  February 11, 2020
	
 

 

 

 

Signature Page to Technology Access Agreement

 
 

 

 

 

 

Exhibit A

 

Purchase Agreement

 

 

 

 

 

Exhibit B

 

Lease Agreement

 

 

 

 

 

Exhibit C

 

Service Agreement

 

 

 

 

 

Exhibit D

 

Fee Schedule

 

The fixed price payable by Lessee pursuant to Section 4.2 for Lessor and/or its designee to complete all requirements pursuant to this Agreement including training and initial project documentation (Phase I) is $18,000. Lessee shall also pay Lessor or it’s designee a maximum of $7,500 per year for the term of the Lease Agreement, escalating at 3% each year, including annual documentation updates, training refreshers, monitoring, reporting or any other services requested by Lessor. Travel time and reasonable out-of-pocket expenses  for Lessor’s designee shall be approved in advance by Lessee and shall be separately invoiced to and payable by Lessee. Fees shall be invoiced once annually upon delivery of the final documentation and/or report to Lessor.

 

 

 

 

 

 

Exhibit E

 

Form of Quarterly Report

 

 

[Seller to insert prior to execution]

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