Document:

Exhibit

Exhibit 10.4

PORTIONS OF THIS EXHIBIT HAVE BEEN REDACTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT BY NELNET, INC. UNDER RULES AND REGULATIONS PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION.  THE REDACTED PORTIONS ARE MARKED WITH [*****] AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION ALONG WITH SUCH REQUEST FOR CONFIDENTIAL TREATMENT.

LOAN PARTICIPATION AGREEMENT

This Loan Participation Agreement (the “Agreement”) is made and entered into effective as of this 22nd day of August, 2018, by and between Union Bank and Trust Company, a Nebraska banking corporation, in its own right (the “Lender”) and National Education Loan Network, Inc., a Nebraska corporation (the “Participant”). 

WHEREAS, Lender is engaged in a program of originating both in-school and refinance student loans (“Education Loans”) to borrowers as part of an Education Loan program in which Nelnet Consumer Finance, Inc. provides marketing services on behalf of Lender;

WHEREAS, Lender has engaged Nelnet Servicing, LLC, d/b/a/ FirstMark Services (the “Servicer”) to assist Lender in originating and servicing the Education Loans; 

WHEREAS, Participant, wishes to purchase from Lender a participation interest in the Education Loans and Lender wishes to sell to Participant a participation interest in Education Loans under the terms and conditions as set forth herein.

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein contained, Participant and Lender do hereby agree as follows:

1.    Sale of Participation Interests in Education Loans.

A.    During the term of this Agreement, Participant does hereby irrevocably agree to purchase or arrange for a designee to purchase from Lender, or the designee of Lender, a 95% participation interest in the Education Loans at the Purchase Price (as defined below) upon presentation of a request for purchase by Lender in the manner provided herein.  Lender does hereby irrevocably agree to sell, transfer, and convey to Participant or Participant’s designee, a participation interest in the Education Loans at the Purchase Price upon presentation of a request for sale by Participant.  This commitment to sell shall apply only to Education Loans. Lender may hold such Education Loans for periods of time prior to sale of participation interests therein from time to time as the parties may mutually agree from time to time, but, in any event, no less than [*****] days. Lender shall make available to Participant information from time to time as Participant may reasonably request in order to enable Participant to make credit decisions with respect to Education Loans. Lender shall make such transfer and shall keep its interest in the 

PORTIONS OF THIS EXHIBIT HAVE BEEN REDACTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT BY NELNET, INC. UNDER RULES AND REGULATIONS PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION.  THE REDACTED PORTIONS ARE MARKED WITH [*****] AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION ALONG WITH SUCH REQUEST FOR CONFIDENTIAL TREATMENT.

Education Loans free and clear of all security interests, liens or encumbrances of any nature whatsoever, provided, however, the Participant acknowledges that Lender holds legal title to the underlying promissory note evidencing the Education Loan. The Purchase Price for such participation interests shall be the amount equal to [*****]% of outstanding principal balance, plus a premium of [*****]% of the outstanding principal balance, plus [*****]% of accrued and unpaid interest on the Education Loan being participated (the “Purchase Price”). The Purchase Price shall be paid in immediately available funds.  The commitment on the part of Participant to purchase participation interests in Education Loans pursuant to this Agreement up to the amount set forth above shall continue for a period of 360 days from the date first set forth above, and shall renew for successive 360 day terms thereafter unless either party gives written notice to the other of an intent to not renew at least ninety (90) days prior to the end of the then current commitment period. Upon termination of this Agreement, the Lender shall transfer the Lender’s interest in the participation interests to the Participant or its designee.

B.     The participation interest purchased hereunder is a participation in the specific Education Loans identified in the Participation Certificate(s) issued by Lender to Participant, and is not a participation interest in an unidentifiable pool of loans. The sale and purchase of the loan participations under this Agreement shall be without recourse of any nature whatsoever against Lender. Lender and Participant acknowledge and agree that this Agreement results in a pro rata sharing of credit risk proportionate to the respective interests of Lender and Participant in the Education Loans, both before and after any default with respect to the Education Loans. Lender shall retain ownership of the title to each of the Education Loans in which participation interests are purchased by Participant.

2.    Procedures for Purchase or Sale. (a)  Demand for Purchase or Sale.  Lender may, from time to time, make a request or requests that Participant purchase the respective participation interests in such Education Loans, and Participant may, from time to time, make a request or requests that Lender sell such participation interests in Education Loans (each, a “Request”).  Each Request shall be made by Lender or Participant, as applicable, giving written notice of the Request to the other party hereto and advising the other party hereto of the sum of the principal balances and interest accrued thereon of participation interests in the Education Loans to be purchased or sold. Participant shall then, after receipt or giving of the Request, provide Lender with immediately available funds to satisfy each Request.  Participant shall use best efforts to make payment within twenty (20) business day of receipt of any Request received by or given by Participant.   Any sale, transfer or other disposition to Participant of Education Loans shall be made free and clear of any liens, security interests or encumbrances of any nature whatsoever, and shall be made in accordance with this Agreement. During the term of this Agreement, the respective obligation of 

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PORTIONS OF THIS EXHIBIT HAVE BEEN REDACTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT BY NELNET, INC. UNDER RULES AND REGULATIONS PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION.  THE REDACTED PORTIONS ARE MARKED WITH [*****] AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION ALONG WITH SUCH REQUEST FOR CONFIDENTIAL TREATMENT.

Participant or Lender, as applicable, to honor Requests as set forth in this Agreement shall be revocable upon thirty (30) days prior written notice to the other party, provided, however, that any outstanding Request issued during such thirty (30) day time period shall be honored.

3.    Participation Certificates. The Education Loans are evidenced by promissory notes. Lender makes no representations or warranties with respect to the Education Loans or any documentation evidencing such Education Loans except as expressly stated in Section 5(a) hereof.  Lender shall give written notice to Participant of any modification in Lender’s standard Education Loan documentation, and Lender shall not implement any such modification until thirty (30) days following such notice.  The originals of such promissory notes shall be kept in the physical custody and possession of the Servicer for purposes of servicing. On the date of the first sale of a participation interest with respect to a portfolio of Education Loans, or thereafter as mutually agreed to by the parties, Lender shall execute and deliver (or shall cause to be executed and delivered) to Participant a  master participation certificate substantially in the form marked as Exhibit “A,” attached hereto and incorporated herein by this reference, evidencing a participating equitable ownership interest in the Education Loans in that particular portfolio. Lender shall attach or cause to be attached to the executed original of Exhibit “A” a schedule of the Education Loans identifying such loans comprising the portfolio. 

4.    Decisions Concerning the Education Loans. After purchase of the participation interest pursuant to this Agreement, all actions and decisions concerning the Education Loans, including without limitation the day-to-day administration and servicing of the Education Loans, shall be made by Participant and Lender according to their respective percentages of ownership of each Education Loan and such decisions shall be binding on Lender and Participant. Servicing of the Education Loans shall be performed by the Servicer on behalf of Lender and Participant, and Lender shall pay to the Servicer all costs of servicing the Education Loans during the term of this Agreement. All servicing reports generated by the Servicer with respect to the Education Loans shall be available to Participant, and 95.0% of all payments received by Lender or the Servicer with respect to the Education Loans participated in accordance with this Agreement shall be forwarded promptly to Participant or its designee, less [*****]% of the servicing fee payable to the Servicer as set forth in Section 4(a) hereof.  Lender shall permit reasonable access from time to time upon request of Participant, or any of the beneficiaries of the trusts on behalf of which Participant acts, to access and review information and loan files and appropriate credit and other information to enable decisions on credit to be made.  Participant acknowledges that it and the beneficiaries on behalf of which it acts have made their own credit analysis and do not rely on the Lender for any such credit analysis.    

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PORTIONS OF THIS EXHIBIT HAVE BEEN REDACTED PURSUANT TO A REQUEST FOR CONFIDENTIAL TREATMENT BY NELNET, INC. UNDER RULES AND REGULATIONS PROMULGATED BY THE SECURITIES AND EXCHANGE COMMISSION.  THE REDACTED PORTIONS ARE MARKED WITH [*****] AND HAVE BEEN FILED SEPARATELY WITH THE SECURITIES AND EXCHANGE COMMISSION ALONG WITH SUCH REQUEST FOR CONFIDENTIAL TREATMENT.

5.    Payments and Accounting to Participant; Records.

(a)    Lender, through the Servicer, shall account and deliver promptly (approximately once every thirty days) to Participant that  portion of income from the Education Loans which is equal to 95% of the payments of interest and other income from the Education Loans and principal payments, less [*****]% of the fees charged by the Servicer with respect to servicing the Education Loans. Participant shall have a right to an accounting of all funds received by Lender in connection with the Education Loans.

(b)    Lender, through its agent, the Servicer, will maintain customary books and records relating to the Education Loans, which shall be made available to Participant at all reasonable times for the purpose of inspection, and copies of any of Lender’s records relating to the Education Loans shall be furnished to Participant at Participant’s request.

(c)    To the extent not already available to Participant, Lender, through the Servicer, shall provide to Participant, promptly after Lender receives or obtains any information in Lender’s possession as to the accrual status of, and principal and interest payments with respect to, the Education Loans, together with any information as to default of borrowers on such Education Loans. 

6.    Representations and Warranties.

(a) Lender makes no representations or warranties, whether expressed or implied, to Participant, as to the collectability of the Education Loans or the continued solvency of the borrowers on Education Loans. Lender does represent and warrant to Participant as follows:

(1)    This Agreement has been duly authorized, executed and delivered by Lender and constitutes a legal, valid and binding obligation.

		
	(2)
	The Agreement was made in compliance with all applicable local, State and federal laws, rules and regulations.

(3)    Lender has and its officers acting on its behalf have, full legal authority to engage in the transactions contemplated by the Agreement, the execution and delivery of the Agreement, the consummation of the transactions herein contemplated and compliance with the terms, conditions and provisions of the 

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Agreement do not and will not conflict with or result in a breach of any of the terms, conditions or provisions of the charter, articles or bylaws of Lender or any agreement or instrument to which Lender is a party to or bound by any agreement or instrument or a default thereunder. Lender is not a party to or bound by any agreement or instrument or subject to any charter or other corporation restriction or judgment, order, writ, injunction, decree, law, rule or regulation which may materially and adversely affect the ability of Lender enforceable against it in accordance with its terms, and no consent, approval or authorization of any government or governmental body is required in connection with the consummation of the transactions herein contemplated.

		
	(4)
	Lender is duly organized, validly existing and in good standing under the laws of the State of Nebraska and has the power and authority to own its assets and carry on its business as now being conducted.

(5)    At the time of origination, each Education Loan was made by the Lender in accordance with Lender’s underwriting policies and guidelines, a true and accurate copy of which has been furnished to Participant. 

(6)    Each Education Loan has been duly executed and delivered and constitutes the legal, valid and binding obligations of the maker thereof, enforceable in accordance with its terms.
    
(7)    No Education Loan participated hereunder is subject to any security interest, lien or other encumbrance of any nature whatsoever. 

(b)    Participant represents and warrants to Lender as follows:

(1)    This Agreement has been duly authorized, executed and delivered by Participant and constitutes a legal, valid and binding obligation.

		
	(2)
	The Agreement was made in compliance with all applicable local, State and federal laws, rules and regulations.

(3)    Participant has and its officers acting on its behalf have, full legal authority to engage in the transactions contemplated by the Agreement, the execution and delivery of the Agreement, the consummation of the transactions herein contemplated and compliance with the terms, conditions and provisions of the Agreement do not and will not conflict with or result in a breach of any of the terms, conditions or provisions of the charter, articles or bylaws of Participant or any agreement or instrument to which 

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Participant is a party to or bound by any agreement or instrument or a default thereunder. Participation is not a party to or bound by any agreement or instrument or subject to any charter or other corporation restriction or judgment, order, writ, injunction, decree, law, rule or regulation which may materially and adversely affect the ability of Participant enforceable against it in accordance with its terms, and no consent, approval or authorization of any government or governmental body is required in connection with the consummation of the transactions herein contemplated.

(4)    Participant is duly organized, validly existing and in good standing under the laws of the State of Nebraska, and has the power and authority to own its assets and carry on its business as now being conducted.

(5)    The authorized officer executing this Agreement on behalf of Participant hereby certifies that Participant has approved purchase of a 95.0% participation interest in the Education Loans as identified in the participation certificate, and is relying upon the maker of the respective Education Loans to repay the same. 

7.    Term. The term of this Agreement shall continue until the Education Loans participated hereunder are paid in full or as the parties may otherwise mutually agree.  The Lender may terminate this Agreement with regards to at any time upon 90 days-notice to the Participant.    

8.    Miscellaneous Provisions. 

A.    Neither this Agreement nor any term hereof may be changed, waived, discharged, modified or terminated orally, unless by an instrument in writing signed by both of the parties hereto. This Agreement may be terminated by either party hereto upon thirty (30) days prior written notice sent to the other party.  This Agreement may be terminated by either party immediately upon such party’s deeming that it is required to do so by any regulatory authority or applicable law. 

B.    The headings in this Agreement are for convenience of reference only and shall not define or limit the provisions hereof.

C.    All of the terms, covenants and conditions herein contained shall inure to the benefit of, and be binding upon, the parties hereto and their respective successors and assigns.

D.    Notices under this Agreement shall be in writing unless otherwise permitted hereby, and if in writing, may be personally delivered or sent by United States mail, sufficient postage prepaid, or by telecopy or facsimile, to the respective parties at the following addresses:

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Participant:

National Education Loan Network, Inc. 
6801 South 27th Street
Lincoln, Nebraska 68508
Attention: General Counsel
Telephone: 402-486-5334

Lender:

Union Bank and Trust Company     
Attn: Brad Crain
4243 Pioneer Woods Dr.    
Lincoln, NE 68506
Telephone: 402-323-1783

E.    This Agreement shall not be construed to create a partnership or joint venture between Lender and Participant. The transaction evidenced by this Agreement is a loan participation transaction, and advances made by Participant to Lender from time to time for Participant’s purchase of participation interests shall not constitute loans to Lender. Participant’s interest in the Education Loans is an ownership interest, not a security interest.

F.    If any one or more of the covenants or agreements or portion thereof provided in this Agreement on the part of Participant or Lender to be performed should be determined by a court of competent jurisdiction to be contrary to law, then such covenant or covenants, or such agreement or agreements, or such portions thereof, shall be deemed severable from the remaining covenants and agreements provided in this Agreement and the invalidity thereof shall in no way affect the validity of the other provisions of this Agreement hereunder and under any applicable provisions of law.

G.    This Agreement shall be construed and interpreted in accordance with the laws of the State of Nebraska. 

Executed as of the day and year first above written. 

	
			
	National Education Loan Network Inc. Participant

By: /s/ James D. Kruger

Title: Treasurer

	 
	Union Bank and Trust Company, as trustee, Lender

By:   /s/ Angie Muhleisen
Title:   President & CEO

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PARTICIPATION CERTIFICATE

Pursuant to that certain Loan Participation Agreement (the “Agreement”) dated as of ____________________, 2018, by and between National Education Loan Network, Inc. (“Participant”) and Union Bank and Trust Company, as trustee (“Lender”), Lender hereby issues and delivers this Participation Certificate to evidence Participant’s participation interests in a 95.0% interest in unsecured Education Loans which are identified by the schedule marked as Exhibit “A,” attached hereto and incorporated herein by this reference, which loans or participation interests therein are owned by Lender and are serviced and designated a separate account, in accordance with the Agreement. This Participation Certificate shall be governed, in all respects, by the Agreement, the terms of which are incorporated herein by this reference as if fully stated herein. 

Dated as of the ___ day of _________________, 2018. 

Union Bank and Trust Company, as trustee (“Lender”) 
                            

By:    ________________________________
Title:    ________________________________

Accepted as of the same date set forth above: 

National Education Loan Network, Inc. (“Participant”)
                            

By:    ________________________________
Title:    ________________________________

8ex_126279.htm

Exhibit 10.1

 

FIRST AMENDMENT, WAIVER AND CONSENT TO FINANCE AGREEMENT

 

THIS FIRST AMENDMENT, WAIVER AND CONSENT TO FINANCE AGREEMENT dated as of October 17, 2018 (this “First Amendment”), by and between GEOTÉRMICA PLATANARES, S.A. DE C.V., a sociedad anónima de capital variable organized and existing under the laws of the Republic of Honduras (the “Borrower”) and OVERSEAS PRIVATE INVESTMENT CORPORATION, an agency of the United States of America (“OPIC”).

 

W I T N E S S E T H :

 

WHEREAS, the parties hereto have entered into that certain Finance Agreement dated as of April 30, 2018 (as in effect as of the date hereof, the “Finance Agreement”);

 

WHEREAS, in connection with the transactions set forth above, the Borrower has requested certain amendments to the Finance Agreement and for OPIC to waive certain provisions of the Finance Agreement and provide its consent as set forth in the letter dated September 27, 2018; and

 

WHEREAS, the Finance Agreement may be amended, and the provisions therein waived, by the parties thereto in accordance with Section 9.06 (Integration; Amendments) of the Finance Agreement;

 

NOW, THEREFORE, in consideration of the foregoing and the agreements contained herein, the sufficiency of which is hereby acknowledged, the parties hereto each agree as follows.

 

Section 1. Defined Terms. 

 

Capitalized terms used and not otherwise defined herein shall have the meanings ascribed to them in the Finance Agreement and the principles of interpretation and construction set forth in Schedule X (Defined Terms and Rules of Interpretation) of the Finance Agreement shall apply hereto.

 

Section 2. Amendment.

 

Upon the effectiveness of this First Amendment, the Finance Agreement is hereby amended as follows:

 

	 	
			(a)

				
			The defined term “Account Control Agreement” and all references thereto in the Finance Agreement shall be deleted in their entirety.

			

 

	 	
			(b)

				
			The following new defined terms shall be inserted in the appropriate alphabetical order in Schedule X (Defined Terms and Rules of Interpretation):

			

 

“Elcosa Cayman Pledge Agreement” means that certain Equitable Mortgage Over Shares in OrPower 19, Inc., dated November 27, 2013, granted by the Intermediate Shareholder in favor of Elcosa.

 

“Labor Ministry Safety and Hygiene Regulation Approval” means the approval by the Secretaría de Trabajo y Seguridad Social of the Reglamento de Seguridad e Higiene of the Borrower.

 

	 	
			(c)

				
			The definition of “Cayman Pledge Agreements” in Schedule X (Defined Terms and Rules of Interpretation) shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows:

			

 

 

 

 

“Cayman Pledge Agreements” means (a) the Equitable Mortgage Over Shares in OrPower 19, Inc., to be executed on or before the first Closing Date between Intermediate Shareholder and OPIC and (b) the Amended and Restated Equitable Mortgage Over Shares in OrPower 19, Inc.Deed of Priority, to be executed on or before the first Closing Date betweenby and among OPIC, Intermediate Shareholder and Elcosa.

 

	 	
			(d)

				
			The definition of “Citi Onshore Account Pledge Agreement” in Schedule X (Defined Terms and Rules of Interpretation) shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows:

			

 

“Citi Onshore Account Pledge Agreement” means the account pledge agreement (Contrato de Control y Administración de Cuentas de Prenda en Primer Grado sin Desplazamiento y Control sobre Depósitos en cuenta Bancaria) in form and substance satisfactory to OPIC, governed by the laws of Honduras to be entered into by the Borrower, and OPIC, the Onshore Administration and Guaranty Trustee and Banco de Honduras, S.A., creating a pledge over the Citi Onshore O&M Account.

 

	 	
			(e)

				
			The definition of “Direct Agreements” in Schedule X (Defined Terms and Rules of Interpretation) shall be amended by inserting the text underlined below to read in its entirety as follows:

			

 

“Direct Agreements” means (i) the Elcosa Direct Agreement, (ii) the ENEE Direct Agreement (from and after the execution thereof in accordance with Section 5.18), (iii) the consent and agreement, dated on or before the first Disbursement, among OPIC, the Supplier and the Borrower in respect of the Warranty Agreement and the O&M Support Agreement, (iv) the SERNA Direct Agreement (from and after the execution thereof in accordance with Section 6.15), and (v) each of the notices described in Section 4.22.

 

	 	
			(f)

				
			The definition of “Material Adverse Effect” in Schedule X (Defined Terms and Rules of Interpretation) shall be amended by inserting the text underlined below to read in its entirety as follows:

			

 

“Material Adverse Effect” means any event, development, or circumstance having a material adverse effect on (a) the Project, (b) the business, operations, prospects, condition (financial or otherwise), or property of the Borrower, OII, the Intermediate Shareholder, (c) the ability of the Borrower or any other Material Project Party to perform in a timely manner its payment obligations or other material obligations under any of the Transaction Documents, (d) the validity or enforceability of any material provision of any Transaction Document (except the MINOSA PPA), (e) the rights and remedies of OPIC under any of the Financing Documents, or (f) the Liens provided to OPIC under the Security Documents.

 

	 	
			(g)

				
			The definition of “MINOSA Cooperation Agreement” in Schedule X (Defined Terms and Rules of Interpretation) shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows:

			

 

“MINOSA Cooperation Agreement” means the cooperation agreementAcuerdo de Cooperación, dated as of September 5, 2018, by and to be entered into between the Borrower and MINOSA.

 

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			(h)

				
			The following new defined term shall be inserted in the appropriate alphabetical order in Schedule X (Defined Terms and Rules of Interpretation):

			

 

“MINOSA PPA Termination Agreement” means the Acta de Terminación Anticipada y Condicionada, del Contrato de Suministro de Energía Eléctrica y Contrato de Uso Remunerado de Líneas Eléctricas, dated as of September 5, 2018, by and between the Borrower and MINOSA.

 

	 	
			(i)

				
			The following new defined term shall be inserted in the appropriate alphabetical order in Schedule X (Defined Terms and Rules of Interpretation):

			

 

“MINOSA Reimbursement Agreement” means the Convenio de Reembolso, dated as of September 5, 2018, by and between the Borrower and MINOSA.

 

	 	
			(j)

				
			Section 2.03 (Repayment of the Loan) shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows:

			

 

The Borrower shall repay the Loan in fifty-eightsix (586) approximately equal quarterly installments (collectively, the “Principal Installments”) beginning on JuneDecember 20, 2019 as set forth in Schedule 2.03.

 

	 	
			(k)

				
			Section 3.01(d)(iii) (Capitalization) shall be amended by inserting the text underlined below to read in its entirety as follows:

			

 

No transfer of (a) the Borrower’s assets or the ordinary shares of the Borrower, except for the transfer of assets and shares into the trusts governed by the Honduran Asset Trust Agreement, the Administration and Guaranty Trust Agreement and the Honduran Share Trust Agreement, or (b) the shares of OrPower 19, except for the pledges of shares under the Cayman Pledge Agreements and the Elcosa Cayman Pledge Agreement, has been made to Elcosa or any other party.

 

	 	
			(l)

				
			Section 3.01(g) (Defaults) shall be amended by inserting the text underlined below to read in its entirety as follows:

			

 

No Default or Event of Default has occurred and is continuing other than any failure of ENEE to make payments in accordance with the ENEE PPA but which payments are nonetheless made within the applicable grace period, as contemplated in Section 8.01(j) and with respect to which the Borrower has notified OPIC within five days of making this representation as to how delayed ENEE’s payment is; provided, that, in the case of any Default or Event of Default with respect to any party other than the Borrower or any of the Ormat Parties, such representation is limited to the Knowledge of the Borrower and the Ormat Parties. Neither the Borrower nor, to the Knowledge of the Borrower and the Ormat Parties, any other party is in breach of any provision of any contract to which the Borrower is a party, which breach could be a Material Adverse Effect.

 

3

 

 

	 	
			(m)

				
			Section 3.01(j)(i) (Status of Consents) shall be amended by inserting the text underlined below to read in its entirety as follows:

			

 

As of the Effective Date and the date of first Disbursement, Schedule 4.04 lists (and as of any other date on which this representation is given or deemed repeated, such Schedule 4.04, as updated in writing prior to the time of such representation, lists) each Consent necessary for: (x) the conduct of the Borrower’s business and the implementation of the Project; (y) the due execution, delivery, validity and enforceability of, and performance by the Borrower of its obligations under, the Borrower Documents (except the MINOSA PPA), including Financing Documents, the incurrence of Indebtedness thereunder and the payment of amounts due or to become due with respect thereto (including Consents necessary for such amounts to be free of withholding Taxes and Consents necessary to permit the exemptions from other applicable Taxes assumed by the Financial Model); and (z) the due execution, delivery, validity and enforceability of, and performance by any Shareholder of its obligations under, any Transaction Documents (other than the MINOSA PPA) to which it is a party; in each case, other than (A) Consents of a routine nature that are not yet required based on the then-current stage of the Project and which the Borrower reasonably expects to obtain in the ordinary course of business without materially delaying the Project or exceeding the costs set forth in the Financial Plan and (B) such other Consents that may become required in the future for the Project as a result of a change in Applicable Law.

 

	 	
			(n)

				
			Section 4.01(c) (Transaction Documents) shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows:

			

 

Certified copies of the following documents (the “Material Project Documents”, and all such contracts, together with any other contract required for the construction or operation of the Project and any power purchase agreement entered into by the Borrower, including the MINOSA PPA, that is entered into with respect to the Borrower or the Project subsequent to the date hereof, the “Project Documents”):

 

(i)     the ENEE PPA and the Commercial Operation Start Certificate;

 

(ii)     the interconnection and wheeling agreements, if any;

 

(iii)     the Joint Guarantee;

 

(iv)     contracts among the Shareholders and between OII and/or the Borrower, on the one hand, and Elcosa and its Affiliates, on the other hand, including the Project Structuring Agreement, the ancillary documents related to that structuring agreement, and any revenue sharing and consulting and marketing contracts entered into by the Borrower;

 

(v)     the Operation Contract;

 

(vi)     the Warranty Agreement;

 

(vii)     the MINOSA Cooperation Agreement;

 

(viii)     all contracts for the purchase of land, lease of land or use of easements and rights of way for the Project, including the La Bufa Comfort Letter and the La Bufa Land Lease Agreement;

 

(ix)     all contracts for the lease of equipment or facilities for the Project exceeding a value of $1,000,000;

 

(x)     the Ormat Guaranty;

 

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(xi)     all contracts entered into by the Borrower to provide services to the Project exceeding a value of $200,000;

 

(xii)     the Water Contract;

 

(xiii)     the O&M Support Agreement; and

 

(xiv)     the MINOSA Reimbursement Agreement.

 

	 	
			(o)

				
			Section 4.09 (Legal Opinions) shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows:

			

 

 

OPIC shall have received acceptable written opinions, dated the Closing Date, satisfactory to OPIC in form and substance, of (a) Matamoros Batson & Asociados, its legal counsel in the Project Country, (b) Aguilar Castillo Love, legal counsel to the Borrower and the Ormat Parties in the Project Country, (c) Freshfields Bruckhaus Deringer US LLP, its legal counsel in the United States, with respect to OPIC funding matters, (d) Norton Rose Fulbright US LLP, legal counsel to the Borrower and the Ormat Parties, (e) Ogier, its legal counsel in the Cayman Islands, (f) Maples and Calder, legal counsel to the Borrower and the Ormat Parties in the Cayman Islands and (g) in-house counsel, or other acceptable counsel, to (i) the Supplier, and (ii) Elcosa (except with respect to that certain Consulting Agreement dated as of November 27, 2013 between Bidle Trading Inc. and the Borrower) and (iii) ENEE; provided, that the written opinion of counsel to ENEE may be provided in the form of written certifications from ENEE’s in-house counsel.

 

	 	
			(p)

				
			Section 4.22 (Notices to SERNA and MINOSA) shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows:

			

 

OPIC shall have received evidence that the Borrower shall have provided written notice to SERNA and MINOSA of (a) the transactions contemplated by this Agreement and (b) the collateral assignment by the Borrower of the Borrower’s rights in the Operation Contract (in the case of SERNA) and the MINOSA Cooperation Agreement and the MINOSA PPAReimbursement Agreement (in the case of MINOSA), to the trust described in the Administration and Guaranty Trust Agreement, which notice shall be in substantially the form of (x) with respect to SERNA, Exhibit H-1 and (y) with respect to MINOSA, Exhibit H-2.

 

	 	
			(q)

				
			Article IV shall be amended to insert the following paragraph as a new Section 4.23

			

 

Section 4.23. Filing for Registration. OPIC shall have received (a) evidence that the Administration and Guaranty Trust has been filed for registration in the Registro de la Propiedad Inmueble y Mercantil, the Registro Mercantil and the Registro de Garantías Mobiliarias of Honduras, (b) evidence that the Honduran Share Trust Agreement has been filed for registration at the Registro de Garantías Mobiliarias and (c) a copy of the entry in the Borrower’s corporate ledger, certified by the Borrower’s secretary, which records the creation of security over all common shares of the Borrower under the Honduran Share Trust Agreement.

 

5

 

 

	 	
			(r)

				
			Article IV shall be amended to insert the following paragraph as a new Section 4.24:

			

 

Section 4.24. MINOSA PPA Termination. OPIC shall have received a certified copy or original of the MINOSA PPA Termination Agreement.

 

	 	
			(s)

				
			The introductory paragraph of Article V (Conditions Precedent to Each Disbursement) shall be amended by inserting the text underlined below to read in its entirety as follows:

			

 

Unless OPIC otherwise agrees in writing, the obligation of OPIC to make each Disbursement (including the first Disbursement) is subject to the prior fulfillment or written waiver, to OPIC’s satisfaction in its sole discretion, of the following conditions precedent as of the date that is ten (10) days prior to such Closing Date and to their continued fulfillment on such Closing Date, except that the conditions set forth in Section 5.18 shall be applicable only and exclusively to the second Disbursement.

 

	 	
			(t)

				
			The following new Section 5.18 (Condition Precedent to the Second Disbursement) shall be inserted following the end of Article V of the Finance Agreement:

			

 

As an exclusive condition to the making by OPIC of the second Disbursement, OPIC shall have received at least ten (10) days prior to the second Disbursement (a) written certifications from members of the board of directors, the operative committee, officers of ENEE, and (in lieu of a legal opinion) ENEE’s in-house counsel in respect of the ENEE Direct Agreement, satisfactory to OPIC in form and substance and (b) a certified copy or original of the executed ENEE Direct Agreement.

 

	 	
			(u)

				
			Section 6.09 (Security Documents) shall be amended to insert the following as paragraphs (c) and (d) to such section of the Financing Agreement:

			

 

(c) Within one-hundred twenty (120) days from the date on which the Administration and Guaranty Trust Agreement is filed with the Registro de la Propiedad Inmueble y Mercantil, evidence that the Administration and Guaranty Trust is duly registered in such registry.

 

(d) Within ninety (90) days from the date on which the Administration and Guaranty Trust and the Honduran Share Trust Agreement are filed with the Registro Mercantil and the Registro de Garantías Mobiliarias of Honduras, as applicable, evidence that (i) the Administration and Guaranty Trust is duly registered in the Registro Mercantil and the Registro de Garantías Mobiliarias of Honduras and (ii) the Honduran Share Trust Agreement is duly registered in the Registro de Garantías Mobiliarias.

 

	 	
			(v)

				
			The following new Section 6.12(d) (Worker Rights) shall be inserted following the end of Section 6.12 of the Finance Agreement:

			

 

The Borrower shall:

 

(i) take such actions as are lawfully in its power to obtain the Labor Ministry Safety and Hygiene Regulation Approval;

 

(ii) promptly notify OPIC of any significant developments related to the Labor Ministry Safety and Hygiene Approval;

 

6

 

 

(iii) periodically, and in no event less than once per calendar month, communicate to OPIC the status of the Labor Ministry Safety and Hygiene Regulation Approval;

 

(iv) promptly pay any fines due and payable as a result of the late filing for the Labor Ministry Safety and Hygiene Regulation Approval and provide evidence thereof to OPIC; and

 

(v) promptly provide OPIC with a copy of the Labor Ministry Safety and Hygiene Regulation Approval once obtained.

 

 

	 	
			(w)

				
			Section 8.01(d) (Covenant Default) shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows:

			

 

The Borrower fails to comply with any covenant or provision set forth in (i) Sections 6.08, 6.09, 6.10, 6.11 (except as provided in Section 8.01(f)) or 6.12 (except as provided in Section 8.01(e)(i)) or Article VII or (ii) solely with respect to not having received the Labor Ministry Safety and Hygiene Regulation Approval despite the filing by the Borrower, Sections 3.01(i)(i), 3.01(j)(i), 3.01(l)(i), 3.01(l)(ii), 3.01(l)(v), 6.01(d), 6.02, 6.11(a), and 6.12(a) (except as provided in Section 8.01(e)(ii),

 

	 	
			(x)

				
			Section 8.01(e) (Worker Rights Non-Compliance) shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows:

			

 

(i) With respect to any Worker Rights Non-Compliance caused by a Project Contractor or Project Subcontractor, the Borrower fails to cause the relevant Project Contractor or Project Subcontractor to cure, or prevent the recurrence of, any Worker Rights Non-Compliance and such failure continues for ninety (90) days after the first occurrence of such Worker Rights Non-Compliance or (ii) solely with respect to the Worker Rights Non-Compliance caused by the Labor Ministry Safety and Hygiene Regulation Approval not having been received despite the filing by the Borrower, the Borrower fails to comply with the requirements of Section 6.12(d).

 

	 	
			(y)

				
			Section 8.01(h) (Transaction Document Default) to the Financing Agreement shall be amended by inserting the text underlined below to read in its entirety as follows:

			

 

Any Transaction Document (other than, with respect to 8.01(h)(i), (ii), (iii), (iv) and (v), the MINOSA PPA to the extent the MINOSA PPA comes back into force in accordance with the terms of the MINOSA Reimbursement Agreement) at any time for any reason (i) ceases to be in full force and effect (other than upon expiration in accordance with its terms when fully performed or upon termination and replacement, which termination or replacement shall be with OPIC’s prior written consent if such Transaction Document is a Material Project Document or the MINOSA PPA), (ii) is declared to be void or is repudiated, (iii) is suspended or revoked, or terminated (other than upon expiration in accordance with its terms when fully performed or upon termination and replacement with OPIC’s prior written consent), (iv) the validity or enforceability thereof is at any time contested in writing by the Borrower, any Shareholder or any other counter-party (other than OPIC), (v) ceases to give or provide the respective rights, titles, remedies, powers, or privileges intended to be created thereby, or (vi) with respect to the Ormat Guaranty only, any amendment, deletion or other modification takes effect without the prior written consent of OPIC; provided that there shall be no Event of Default hereunder in respect of any Material Project Document referred to in Sections 4.01(c)(ix) and (xi) or any other Project Document that is not a Material Project Document (each, a “Replaceable Project Document”) if any such Replaceable Project Document is restored or replaced with an equivalent Project Document (together with any replacement Direct Agreement if applicable) with the original counterparty to such Replaceable Project Document or another Person of similar or superior creditworthiness and experience as such original counterparty at the time of such replacement, in each case, on terms reasonably satisfactory to OPIC within 45 days of the occurrence of such event or circumstance.

 

7

 

 

	 	
			(z)

				
			Section 8.01(j) (Other Agreements Default) to the Financing Agreement shall be amended by inserting the text underlined below to read in its entirety as follows:

			

 

Other Agreements Default. The Borrower, any Shareholder or any party to a Material Project Document fails to comply with or perform any of its material obligations or undertakings set forth in any Transaction Document to which it is a party (other than this Agreement or the Notes) and such failure continues beyond the applicable cure period (or, in the case of the ENEE PPA, only for so long as ENEE fails to comply with its payment obligations under the ENEE PPA up to sixty (60) days beyond the applicable cure period, provided that the collected credit balance of the DSR Account is at all times during such period, a Dollar amount equal to the aggregate amount of Debt Service with respect to the Loan for the immediately succeeding nine-month period), if any; provided that there shall be no Event of Default with respect to a Material Project Party under a Replaceable Project Document if such Material Project Party is replaced with another Person reasonably satisfactory to OPIC within 45 days of the occurrence of such event or circumstance.

 

	 	
			(aa)

				
			Section 9.01 shall be amended by inserting the text underlined below and deleting the text stricken below to read in its entirety as follows:

			

 

Except as provided in Sections 6.11(g) and 6.12(b), each notice, demand, or other communication relating to this Agreement shall be in writing, shall be hand-delivered or sent prepaid by mail or overnight delivery service or e-mail (with a copy by mail to follow, receipt of which copy shall not be required to effect notice), and shall be deemed duly given when sent to the following addresses:

 

To the Borrower:

Geotérmica Platanares, S.A. de C.V.

Plaza Saavedra, Modulo #20 y 21

Bo. Mercedes, 1a Calle NE 3a Av NE, Frente a Hotel VIP Copan

Santa Rosa de Copán, Honduras, Centroamerica

Edificio Salisa, Colonia Zerón 21 ave N.O. 9 y 10 calles #932, local #4 

San Pedro Sula, Cortés, Honduras

HONDURAS

 

Attn.:     Elio Orozco

E-mail:  eorozco@ormat.com

Phone:   504-2662-1066

 

8

 

 

with a copy to:

 

Ormat Technologies, Inc.

6225 Neil Road

Reno, Nevada 89511

Attn: Chief Financial Officer

 

 

To OPIC:

Overseas Private Investment Corporation

1100 New York Avenue, N.W.

Washington, D.C. 20527

United States of America

Attn.: Vice President, Structured Finance and Insurance

And attn.: Managing Director, Portfolio Management Division

E-mail: notices@opic.gov

Re: Platanares Geothermal Project (Honduras) Transaction No. 9000003553

 

Either party may, by written notice to the other, change the address to which such notices, demands, or other communications should be sent to it. No notice to OPIC, including notices delivered pursuant to Sections 6.11(g) and 6.12(b), shall be effective unless such notice includes the project name and number, as listed above, and, prior to the first Disbursement, attention to Vice President, Structured Finance and Insurance and, subsequent to the first Disbursement, attention to Managing Director, Portfolio Management Division.

 

	 	
			(bb)

				
			Schedule 2.03 (Amortization Schedule) to the Financing Agreement shall be replaced in its entirety with Annex I attached hereto.

			

 

	 	
			(cc)

				
			Exhibit H-2 (Form of Written Notice to MINOSA) to the Financing Agreement shall be replaced in its entirety with Annex II attached hereto.

			

 

 

Section 3. Waiver and Consent.

 

3.1           Upon the Amendment Effective Date (as defined in Section 4 below), OPIC agrees to waive the following provisions of the Finance Agreement:

 

	 	
			(a)

				
			the requirement in Section 5.12(b) (Project Costs) of the Finance Agreement that OPIC receive written confirmation from the Borrower’s auditor confirming that Project Costs incurred through the end of the fiscal quarter most recently ended prior to the Disbursement to occur on or about July 16, 2018 are in accordance with the accounting records of the Borrower; provided that OPIC shall instead receive such confirmation with respect to Project Costs incurred through the end of the December 2017;

			

 

	 	
			(b)

				
			provided that the Borrower provides coverage under the Sponsor’s global liability insurance program, and with respect to Third Party Liability only, the requirement in Schedule 6.03, item 1.1(a) that an “Approved Reinsurer” have a financial strength rating of at least A- from Standard & Poor’s or A- from A.M. Best; and

			

 

9

 

 

	 	
			(c)

				
			the limitation in Section 2(A) of Schedule 6.03 (Insurance), Annex A that the maximum deductible be not greater than $250,000 per event; provided that it shall be less than or equal to $1,000,000.

			

 

1

 

3.2         Upon the effectiveness of this First Amendment, OPIC consents to and approves the Borrower’s current local insurer of Third Party Liability, Mapfre Seguros Honduras S.A., as an Approved Insurer pursuant to item 1.1(b) in Schedule 6.03 to the Finance Agreement, so long as the Borrower provides coverage under the Sponsor’s global liability insurance program.

 

3.3        Upon the Amendment Effective Date (as defined in Section 4 below), OPIC agrees to waive the Borrower’s non-compliance with Sections 3.01(i)(i), 3.01(j)(i), 3.01(l)(i), 3.01(l)(ii), 3.01(l)(v), 6.01(d), 6.02, 6.11(a), and 6.12(a), solely with respect to not having received the Labor Ministry Safety and Hygiene Regulation Approval, which shall be obtained in accordance with Section 6.12(d) (Worker Rights).

 

Section 4. Effectiveness. 

 

The amendments in this First Amendment shall become effective as of the date on which (the “Amendment Effective Date”) (a) this First Amendment has been executed and delivered by and on behalf of each of the parties hereto and (b) the Borrower shall have filed for the Labor Ministry Safety and Hygiene Regulation Approval as set forth in Section 2(v)(i).

 

This First Amendment is and shall be construed as supplemental to the Finance Agreement and every clause thereof shall continue in full force and effect and be binding on the parties thereto save as expressly amended by this First Amendment.

 

From and after the Amendment Effective Date, each reference in the Finance Agreement to “this Agreement”, “hereunder”, “hereof”, “herein”, or words of like import, and each reference to the “Finance Agreement” in any other Financing Document shall be deemed a reference to the Finance Agreement as amended by this First Amendment.

 

Section 5. Representations and Warranties. 

 

To induce OPIC to enter into this First Amendment, the Borrower, on and as of the Amendment Effective Date, after giving effect to this First Amendment, hereby represents and warrants to OPIC that: (i) this First Amendment has been duly authorized, executed and delivered by the Borrower, and constitutes the legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, subject to bankruptcy, insolvency, reorganization or other similar laws affecting creditors’ rights generally and to general principles of equity; (ii) the Finance Agreement, after giving effect to this Amendment constitutes the legal, valid and binding obligation of the Borrower, enforceable against the Borrower in accordance with its terms, subject to bankruptcy, insolvency, reorganization or other similar laws affecting creditors’ rights generally and to general principles of equity; (iii) no Default or Event of Default has occurred and is continuing and (iv) no Consent is required to be obtained from any other Governmental Authority in connection with the transactions contemplated by, and the amendments to the Financing Documents set forth in, this First Amendment.

 

1 OPIC will require the endorsement.

 

10

 

 

Section 6. Expenses.

 

All expenses incurred by OPIC in connection with the negotiation, preparation, execution, delivery and implementation of this First Amendment (including, without limitation, reasonable and documented fees and expenses of counsel to OPIC) shall be paid or reimbursed as provided in Section 2.08(a) (Payment or Reimbursement of Expenses) of the Finance Agreement.

 

Section 7. Ratification. 

 

	 	
			(a)

				
			Except as expressly provided herein, the Borrower hereby acknowledges, ratifies, and reaffirms all of the terms and provisions of the Financing Documents to which it is a party.

			

 

	 	
			(b)

				
			Except as expressly provided herein, nothing contained in this First Amendment and no action by, or inaction on the part of, OPIC shall, or shall be deemed to, directly or indirectly (i) constitute a consent to or waiver of any past, present or future violations of any provisions of the Finance Agreement or any other Financing Document, (ii) amend, modify or operate as a waiver of any provision of the Finance Agreement or any other Financing Document, except as expressly set forth herein, or of any right, power or remedy of OPIC thereunder, or (iii) constitute a course of dealing or other basis for altering any obligations of the Borrower under the Finance Agreement or any other Financing Document.

			

 

	 	
			(c)

				
			Without limiting the generality of the foregoing, OPIC hereby reserves all of its rights and remedies under the Finance Agreement.

			

 

	 	
			(d)

				
			This First Amendment constitutes a Financing Document.

			

 

Section 8. Counterparts.

 

This First Amendment may be executed in counterparts, each of which when so executed and delivered shall be deemed an original and all of which together shall constitute one and the same instrument.

 

Section 9. Governing Law. 

 

THIS FIRST AMENDMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK, UNITED STATES OF AMERICA WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAWS THEREOF THAT WOULD RESULT IN THE APPLICATION OF THE LAW OF ANY OTHER JURISDICTION.

 

Section 10. Notices. 

 

All communications and notices hereunder shall be given as provided in Section 9.01 (Notices) of the Finance Agreement.

 

 

[SIGNATURE PAGES FOLLOW]

 

11

 

 

IN WITNESS WHEREOF, the parties hereto have caused this First Amendment to be executed by their respective officers thereunto duly authorized, as of the date first written above.

 

 

 

GEOTÉRMICA PLATANARES, S.A. DE C.V.

as Borrower

 

 

By:___________________________

Name:

Title:

 

 

 

[Signature Page to First Amendment]

 

 

 

 

OVERSEAS PRIVATE INVESTMENT CORPORATION

as Lender

 

 

By:___________________________

Name:

Title:

 

 

 

[Signature Page to First Amendment]

 

 

 

 

Annex I

 

(Updated Schedule 2.03 to the Finance Agreement)

 

 

 

 

 

Combined Repayment

	
			Amortization Period 

			(Quarterly)

				 	
			Opening

			Balance

				 	 	
			All

			 

				 	 	
			Principal 

			Repayment

				 	 	
			Closing 

			Balance

				 
	 	 	 	 	-	 	 	 	114,700,000	 	 	 	-	 	 	 	114,700,000	 
	1	 	 	 	114,700,000	 	 	 	-	 	 	 	(2,048,214.29	)	 	 	112,651,786	 
	2	 	 	 	112,651,786	 	 	 	10,000,000	 	 	 	(2,048,214.29	)	 	 	120,603,571	 
	3	 	 	 	120,603,571	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	118,370,172	 
	4	 	 	 	118,370,172	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	116,136,772	 
	5	 	 	 	116,136,772	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	113,903,373	 
	6	 	 	 	113,903,373	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	111,669,974	 
	7	 	 	 	111,669,974	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	109,436,574	 
	8	 	 	 	109,436,574	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	107,203,175	 
	9	 	 	 	107,203,175	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	104,969,775	 
	10	 	 	 	104,969,775	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	102,736,376	 
	11	 	 	 	102,736,376	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	100,502,976	 
	12	 	 	 	100,502,976	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	98,269,577	 
	13	 	 	 	98,269,577	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	96,036,177	 
	14	 	 	 	96,036,177	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	93,802,778	 
	15	 	 	 	93,802,778	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	91,569,378	 
	16	 	 	 	91,569,378	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	89,335,979	 
	17	 	 	 	89,335,979	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	87,102,579	 
	18	 	 	 	87,102,579	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	84,869,180	 
	19	 	 	 	84,869,180	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	82,635,780	 
	20	 	 	 	82,635,780	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	80,402,381	 
	21	 	 	 	80,402,381	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	78,168,981	 
	22	 	 	 	78,168,981	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	75,935,582	 
	23	 	 	 	75,935,582	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	73,702,183	 
	24	 	 	 	73,702,183	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	71,468,783	 
	25	 	 	 	71,468,783	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	69,235,384	 
	26	 	 	 	69,235,384	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	67,001,984	 
	27	 	 	 	67,001,984	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	64,768,585	 
	28	 	 	 	64,768,585	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	62,535,185	 
	29	 	 	 	62,535,185	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	60,301,786	 
	30	 	 	 	60,301,786	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	58,068,386	 
	31	 	 	 	58,068,386	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	55,834,987	 
	32	 	 	 	55,834,987	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	53,601,587	 
	33	 	 	 	53,601,587	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	51,368,188	 
	34	 	 	 	51,368,188	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	49,134,788	 
	35	 	 	 	49,134,788	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	46,901,389	 
	36	 	 	 	46,901,389	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	44,667,989	 
	37	 	 	 	44,667,989	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	42,434,590	 
	38	 	 	 	42,434,590	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	40,201,190	 
	39	 	 	 	40,201,190	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	37,967,791	 
	40	 	 	 	37,967,791	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	35,734,392	 
	41	 	 	 	35,734,392	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	33,500,992	 
	42	 	 	 	33,500,992	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	31,267,593	 
	43	 	 	 	31,267,593	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	29,034,193	 
	44	 	 	 	29,034,193	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	26,800,794	 
	45	 	 	 	26,800,794	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	24,567,394	 
	46	 	 	 	24,567,394	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	22,333,995	 
	47	 	 	 	22,333,995	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	20,100,595	 
	48	 	 	 	20,100,595	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	17,867,196	 
	49	 	 	 	17,867,196	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	15,633,796	 
	50	 	 	 	15,633,796	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	13,400,397	 
	51	 	 	 	13,400,397	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	11,166,997	 
	52	 	 	 	11,166,997	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	8,933,598	 
	53	 	 	 	8,933,598	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	6,700,198	 
	54	 	 	 	6,700,198	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	4,466,799	 
	55	 	 	 	4,466,799	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	2,233,399	 
	56	 	 	 	2,233,399	 	 	 	-	 	 	 	(2,233,399.47	)	 	 	(0.0	)

 

 

 

 

Annex II

 

(Updated Exhibit H-2 to the Finance Agreement)

 

 

 

 

 

 

WRITTEN NOTICE TO MINOSA

 

October 18, 2018

 

Monty Reed

Minerales de Occidente S.A. de C.V. 4ta. Avenida, S.O. entre 3 y 4 calle, Barrio El Calvario

Tel: +504 26621232

Email: mreed@auraminerals.com

 

RE: Notice of Collateral Assignment of Cooperation Agreement

 

Dear Mr. Reed:

 

Reference is made to (a) that certain Acuerdo de Cooperación, dated as of September 5, 2018 (the "Cooperation Agreement") between Geotérmica Platanares, S.A. de C.V., a Honduran sociedad anónima de capital variable ("GeoPlatanares") and Minerales de Occidente S.A. de C.V., a Honduran sociedad anónima de capital variable ("MINOSA") and (b) that certain Convenio de Reembolso, dated as of September 5, 2018, the "Reimbursement Agreement") between GeoPlatanares and MINOSA. Capitalized terms not otherwise defined herein shall have the meanings set forth in the Cooperation Agreement and the Reimbursement Agreement, as applicable.

 

GeoPlatanares entered into a Finance Agreement, dated as of April 30, 2018, with the Overseas Private Investment Corporation ("OPIC'), as amended, amended and restated, supplemented or otherwise modified from time to time in accordance with the terms thereof (the "Finance Agreement"), in order to obtain debt financing for the Proyecto Geotérmico.

 

As security for GeoPlatanares's obligations under the Finance Agreement and the other documents and agreements related thereto, GeoPlatanares, OrPower 19, Inc., and Banco del País, S.A., as trustee, (the "Trustee"), entered into that certain Amended and Restated Administration and Guarantee Trust Agreement (the Contrato de Fideicomiso de Administración y Garantía Enmendado y Reexpresado), dated on or about October 29, 2018, as amended, amended and restated, supplemented or otherwise modified from time to time (the "Administration and Guaranty Trust Agreement") and the other documents and agreements related thereto, under which GeoPlatanares has assigned its rights and benefits under and pursuant to each of the Cooperation Agreement and the Reimbursement Agreement, to the Trustee.

 

Section 6.3.1 of the Reimbursement Agreement provides that GeoPlatanares may collaterally assign its rights under the Reimbursement Agreement to OPIC or its agents, representative or nominee. The Fourth Clause of the Cooperation Agreement provides that GeoPlatanares may grant a security interest to OPIC over the land rights that are subject to that agreement.

 

At the request of OPIC, this letter provides notice to MINOSA of our collateral assignment of our rights and benefits under and pursuant to the Cooperation Agreement and the Reimbursement Agreement to the Trustee, effective as of the date of execution of the Administration and Guaranty Trust Agreement. In addition, all amounts payable to GeoPlatanares under and in connection with the Cooperation Agreement and the Reimbursement Agreement shall be made directly to (x) if in Lempiras, the Onshore HNL Revenue Account (Cuenta de Ingresos Lempiras) or (y) if in U.S. Dollars, the Onshore USD Revenue Account (Cuenta de Ingresos Dólares), as applicable, maintained under the Accounts Administration and Retention Agreement (Contrato de Administración y Retención de Cuentas) dated on or about October 29, 2018, among GeoPlatanares, OPIC and the Trustee by wire transfer as follows:

 

 

 

 

Onshore HNL Revenue Account:

Bank Name: Banco del País

Account Number: 21-299-000758-4

Account Name: FIDEICOMISO PLATANARES, S.A. DE C.V.

Currency: Lempiras

Swift Code: PISAHNTE

 

 

 

Onshore USD Revenue Account:

Bank Name: Banco del Pals

Account Number: 22-299-000437-0

Account Name: FIDEICOMISO PLATANARES, S.A. DE C.V.

Currency: U.S. Dollars

Swift Code: PISAHNTE

 

or as otherwise specified by the Trustee in a written notice to GeoPlatanares, MINOSA and OP1C.

 

If you have any questions regarding the collateral assignment described herein, please feel free to contact Elio Orozco at 504-2662-1066 or eorozco ,ormat.com.

 

 

[Signature page follows]

 

 

 

 

GEOTERMICA PLATANARES, S.A. DE C.V.

 

 

Name: Nachman Isaac

Title: Authorized Representative

 

 

 

 

 

 

 

 

 

[Signature Page to Minosa Notification]

 

 

 

 

 

Annex II

 

(Updated Exhibit H-2 to the Finance Agreement)

 

[To be attached]

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