Document:

EX-10.3

 Exhibit 10.3 

EMPLOYMENT AGREEMENT 

EMPLOYMENT AGREEMENT (this “Agreement”), dated as of February 23, 2017 and effective as of March 1, 2017 (the “Effective
Date”), between News Corporation, a Delaware corporation (the “Company”), with offices at 1211 Avenue of the Americas, New York, NY 10036, and Susan Panuccio, residing at the address that is on file with the Company (the
“Executive”). 
 W I T N E S S E T H: 

WHEREAS, the Executive is currently employed as the Chief Financial Officer of News Corp Australia pursuant to an employment agreement
between News Corp Australia, a wholly owned subsidiary of the Company, and the Executive, dated as of September 4, 2013 (the “Prior Agreement”); and 

WHEREAS, the Company and the Executive wish to set forth the terms and conditions of the Executive’s employment. 

NOW, THEREFORE, in consideration of the premises and mutual agreements hereinafter contained, the parties hereto agree as follows: 

1. Duties. 
 (a) The
Company agrees to employ the Executive and the Executive agrees to be employed by the Company for the Term (as hereinafter defined). During the Term, the Executive shall: (i) have the title and the duties of Chief Financial Officer of the
Company; and (ii) report directly to the Chief Executive Officer of the Company. 
 (b) If the Executive is elected as a member of the
board of directors or an officer of the Company or any subsidiaries or affiliates, the Executive agrees to serve in such capacity or capacities without additional compensation. 

(c) During the Term the Executive shall devote substantially all of the Executive’s business time and attention and give the
Executive’s best efforts and skill to furthering the business and interests of the Company and to the performance of executive duties consistent with the Executive’s position as Chief Financial Officer of the Company and the terms of this
Agreement. 
 2. Term. “Term” as used herein shall mean the period from the Effective Date through June 30, 2020;
provided, however, if the Term is terminated earlier in accordance with this Agreement, the Term shall mean the period from the Effective Date through the effective date of such earlier termination. The Term shall be terminated earlier only in
accordance with Sections 8 and 9. Not later than six (6) months prior to the end of the Term, the parties hereto shall begin discussions to determine whether they are interested in continuing the employment of the Executive after the Term, and
if so, they shall enter into good faith negotiations with respect to such continuing employment 

 Following the completion of the Term, except to the extent set forth in this Agreement,
(i) the provisions of this Agreement will automatically expire and (ii) in the absence of a new written employment contract signed by both the Executive and an authorized representative of the Company, any continued employment with the
Company will be at will, of no fixed term and may be terminated (with at least ten (10) business days’ prior written notice) at any time by either the Executive or the Company for any or no reason. 

3. Location. The Executive shall be based and essentially render services in the New York City metropolitan area at the principal
office maintained by the Company in such area. The Executive will travel as reasonably required to perform the Executive’s functions hereunder. 

4. Compensation. 
 (a)
Base Salary. As compensation for the Executive’s services, the Executive shall receive a base salary at an annual rate of not less than $ 1,100,000 (the “Base Salary”) to be paid in the same manner as other senior executives of
the Company are paid (which shall be no less frequently than monthly). 
 (b) Annual Bonus. Beginning with the Fiscal Year 2018 which
ends June 30, 2018, the Executive will be eligible to receive an annual bonus (the “Annual Bonus”) with a target (the “Annual Bonus Target”) of not less than $1,100,000. The actual payout of the Annual Bonus will be
calculated based upon the metrics and targets established and approved by the Compensation Committee. Any Annual Bonus granted shall be paid in cash at the same time as other senior executives of the Company are paid, and in all events no later than
March 15 of the calendar year following the calendar year in which the applicable fiscal year ends. 
 (c) Long-Term Incentive.
The Executive shall also be entitled to receive an annual award under the Company’s 2013 Long-Term Incentive Plan, as amended and restated, or any other Company performance-based long-term equity-based incentive program (the “Plan”),
in accordance with the terms and conditions of the Plan, that has a target value of not less than $1,100,000 beginning with the fiscal 2018-2020 awards granted in the August 2017 cycle (the “Equity Bonus”). The Equity Bonus shall be in a
form and subject to terms and conditions, including claw-back provisions, determined by the Company and consistent with those of equity awards to comparable senior executives of the Company. 

5. Other Benefits. The Executive shall be entitled to the following benefits (collectively, the “Benefits”): 

(a) The Executive shall be entitled to participate in all of the following incentive or benefit plans or arrangements presently in effect or
hereafter adopted by the Company or its applicable affiliates and to such other perquisites as are applicable to other senior executives of the Company of equal rank, including, but not limited to, any profit-sharing, pension, group medical, dental,
disability and life insurance or other similar benefit plans. 
 (b) The Executive shall be entitled to six (6) weeks of paid vacation
annually, subject to the terms of the Company’s vacation policy. All accrued vacation days should be used in the year in which they are earned as the Company does not allow carryover of unused vacation days or provide for a cash payout in
respect of such days upon a termination of employment. 

  
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 (c) The Company will provide to the Executive an Executive Relocation support package including
Company-provided services to assist the Executive with relocation of the Executive and her family from Australia to New York, as well as a one-time cash payment of $50,000 for relocation support and provide temporary housing for 11 months. 

6. Business Expenses. During the Term, the Company shall pay, or reimburse the Executive for, all expenses reasonably and necessarily
incurred by the Executive in connection with the Executive’s performance of the Executive’s duties hereunder. Such business expenses shall be reimbursed as provided in Section 23(f). 

7. Confidentiality; Restriction on Competition. 

(a) The Executive shall hold all of the Company’s Confidential Information (as hereinafter defined) in strictest confidence, and will
not, directly or indirectly, take, publish, use or disclose any of the Company’s Confidential Information at any time after the termination of the Executive’s employment, for any reason, except as may be required by law, provided that upon
learning of any such legal requirement, the Executive shall promptly provide the Company with written notice to the Company of any such legal requirement in enough time for it to try to obtain an appropriate protective order or other remedy. For
purposes of this Agreement, the phrase “Confidential Information” means personal information regarding past and present executives of the Company and its affiliates, including their family members, all trade secrets and information on
costs, pricing, and materials, supplier information, customer lists and customer information, vendor lists and vendor information, employee lists and employee information, market share reports, customer contract terms and rates, account management,
financial information, audit information, research, development, marketing plans, promotion plans, and/or compilations of information that was disclosed to or acquired by the Executive during or in the course of the Executive’s employment that
relates to the business of the Company and is not generally available to the public or generally known in the Company’s industry. 

(b) Confidential Information does not include that information which the Executive can affirmatively prove by clear and convincing evidence:
(i) is, at the time of disclosure, in the public domain other than as a result of disclosure (whether by act or omission) by the Executive or by other persons to whom the Executive has disclosed such information; (ii) was available to the
Executive without an obligation of confidentiality prior to the Executive’s employment with the Company; (iii) is independently developed by the Executive having had no access to any Confidential Information and without the use of any such
information; or (iv) becomes available to the Executive without an obligation of confidentiality from a source, other than the Company, having the legal right to disclose such information. 

(c) All papers, books, records, files, proposals or other documents, and all computer software, software applications, files, data bases, and
the like relating to the business and affairs of the Company or which contain Confidential Information, whether prepared by the Executive or otherwise coming into the Executive’s possession, shall remain the exclusive property of the Company
and shall not be removed from its premises except as necessary for the performance of the Executive’s responsibilities and in furtherance of the interests of the Company. Upon the termination of the Executive’s employment for any reason,
the Executive 

  
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will immediately surrender and turn over to the Company any property of the Company which the Executive may have in the Executive’s possession, custody or control, no matter where located,
and whether in electronic, paper or other format, including but not limited to, records, files, drawings, documents, models, disks, computers and other equipment, and the Executive shall not keep any copies or portions thereof, including any
material contained on the Executive’s personal computer which is currently located at the Executive’s residence, if any, including any files the Executive may have saved or downloaded from the Company’s computer system. 

(d) While the Executive is employed by the Company and after the Executive’s employment terminates for whatever reason, the Executive
agrees not to publicly criticize the Company, its corporate affiliates, or subsidiaries, and their respective officers, directors, shareholders or employees and agree further not to speak of the Company, its parent, affiliates, officers,
shareholders or employees in an unflattering way (other than truthful testimony under oath). 
 (e) In order to protect the Company’s
goodwill with its clients, vendors and employees, during the Term and for one (1) year following termination of the Executive’s employment for any reason, the Executive shall not, directly or indirectly, either personally or on behalf of
any other entity (whether as a director, stockholder, owner, partner, consultant, principal, employee, agent or otherwise), engage in any of the following conduct: (a) canvass, solicit or accept any business on behalf of any of the
Company’s competitors from any business or organization that had interacted with the Company during the last three (3) years of the Executive’s employment; (b) solicit or recruit for employment, hire, employ, attempt to employ,
or engage or attempt to engage as a contractor or consultant any individual employed by the Company or its affiliates, or entice or suggest to such individual to terminate his or her employment with the Company; or (c) take any action which is
intended, or would reasonably be expected to, adversely affect the Company, its subsidiaries, or their respective businesses, reputation, or relationship with their clients, business partners or vendors. 

(f) During the Term, the Executive shall not engage, and shall not solicit any employees of the Company or its affiliates to engage, in any
other commercial activities that may in any way interfere with the performance of the Executive’s duties or responsibilities to the Company. During the Term and for one (1) year following termination of the Executive’s employment for
any reason, the Executive shall have no interest, directly or indirectly, in any business or prospective business (whether conducted by a natural person, partnership, corporation or other entity) whose products, services or activities materially
compete or seek to compete, in whole or in part, with business conducted by the Company (a “Competing Business”) and the Executive shall perform no services for any person, partnership, corporation or other entity engaged in any such
business. The foregoing does not prohibit the Executive’s ownership of less than one percent (1%) of the outstanding common stock of a company whose shares are publicly traded. 

(g) The Executive shall at all times be subject to, comply with and carry out such rules, regulations, policies, directions and restrictions
applicable to the Company’s employees generally as the Company may from time to time establish, including, without limitation, News Corporation’s Standards of Business Conduct, Electronic Communications

  
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Policy and Claw-back Policies, as well as those imposed by law. The Executive acknowledges that the Executive has received copies of such policies, and has reviewed, understands and will comply
with such policies. 
 (h) The Executive acknowledges that the relationship between the Executive and the Company is exclusively that of
employer and employee and that the Company’s obligations to the Executive are exclusively contractual in nature. The Company shall be the sole owner of all the fruits and proceeds of the Executive’s services hereunder, including, but not
limited to, all ideas, concepts, formats, suggestions, developments, arrangements, designs, packages, programs, promotions and other intellectual properties which the Executive may create in connection with and during the Term, free and clear of any
claims by the Executive (or anyone claiming under the Executive) of any kind or character whatsoever (other than the Executive’s right to compensation hereunder). The Executive shall, at the request of the Company, execute such assignments,
certificates or other instruments as the Company may from time to time deem necessary or desirable to evidence, establish, maintain, perfect, protect, enforce or defend its right, title and interest in or to any such properties. 

(i) The Company shall have the right to use the Executive’s name, biography and likeness in connection with its business, including in
advertising its products and services, and may grant this right to others, but not for use as a direct endorsement. 
 8. Termination by
the Company. The Executive’s employment hereunder may be terminated by the Company without any breach of this Agreement only under the following circumstances: 

(a) The Executive’s employment hereunder shall terminate upon the Executive’s death. 

(b) If, as a result of the Executive’s incapacity and disability due to physical or mental illness, the Executive shall have been absent
from the Executive’s duties hereunder for a period of seven (7) months during the Term and is unable to provide the Company with a note from the Executive’s treating physician that provides for a definite and reasonable return to work
date, the Company may terminate the Executive’s employment hereunder. 
 (c) The Company may terminate the Executive’s employment
hereunder for “cause” (as hereinafter defined). For purposes of this Agreement, “cause” shall mean: (i) the Executive is convicted of, or pleads guilty or nolo contendere to, a felony or crime involving moral turpitude;
(ii) the Executive engages in conduct that constitutes willful neglect or willful misconduct in carrying out the Executive’s duties under this Agreement, and such breach remains uncured following fifteen (15) days prior written notice
given by the Company to the Executive specifying such breach, provided such breach is capable of being cured; (iii) the Executive has breached any material representation, warranty, covenant or term of this Agreement, including among other
things, a breach of written Company policy, and such breach remains uncured following twenty-one (21) days’ prior written notice specifying such breach given by the Company to the Executive, provided such breach is capable of being cured;
(iv) the Executive’s act of fraud or dishonesty in the performance of the Executive’s job duties; (v) the Executive intentionally engages in conduct which impacts negatively and materially on the

  
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reputation or image of the Company, its affiliates or any of their respective products; and/or (vi) the Executive’s use of or addiction to illegal drugs. 

(d) The Company may terminate the Executive’s employment other than for cause, death or disability, subject to Section 10(d). 

(e) Any termination of the Executive’s employment by the Company (other than termination pursuant to subsection (a) of this
Section 8) shall be communicated by a written Notice of Termination to the Executive. For purposes of this Agreement, a “Notice of Termination” shall mean a notice that shall indicate the specific termination provision in this
Agreement relied upon and shall set forth in full detail the facts and circumstances claimed to provide the basis for termination of the Executive’s employment under the provision so indicated. 

(f) “Date of Termination” shall mean (i) if the Executive’s employment is terminated by the Executive’s death, the
date of this death, or (ii) if the Executive’s employment is terminated pursuant to subsections (b), (c) or (d) of this Section 8, the date specified in the Notice of Termination. 

9. Termination by the Executive. 

(a) At the Executive’s option, and provided the foregoing occurrences satisfy “Good Reason” within the meaning of
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), and Section 1.409A-1(n)(2)(ii) of the Treasury Regulations promulgated thereunder, the Executive may terminate the Executive’s employment without
any breach of this Agreement only under the following circumstances: 
 (i) in the event of a material breach of the Agreement by the
Company, which breach, if curable, is not cured within thirty (30) days after the Chief Human Resources Officer and the Chief Executive Officer of the Company each receive written notice specifying such breach; 

(ii) if the Executive is required to be based and essentially render services in areas other than within 50 miles of the New York City
metropolitan area; or 
 (iii) if there is a material diminution in the Executive’s duties thereby diminishing the Executive’s
role. 
 (b) Any Good Reason termination of the Executive’s employment by the Executive shall be communicated by a written Notice of
Termination to the Company within ninety (90) days of the condition giving rise to such Good Reason first occurring, and the Company shall have thirty (30) days from such notice to cure the condition giving rise to such Good Reason, as set
forth in Section 1.409A-1(n)(2)(C) of the Treasury Regulations. 
 10. Compensation upon Termination. 

(a) If the employment of the Executive is terminated pursuant to Section 8(a), by reason of the Executive’s death, the Company
agrees to pay directly to the Executive’s 

  
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surviving spouse (or to another recipient designated in writing by the Executive from time to time), or if the Executive’s spouse shall not survive the Executive, then to the legal
representative of the Executive’s estate: (i) for a period of twelve (12) months (commencing with the Date of Termination) an amount equal to and payable at the same rate as the Executive’s then current Base Salary; (ii) any
Annual Bonus payable but not yet paid with respect to any fiscal year ended prior to the Date of Termination (the “Unpaid Prior Year Bonus”), payable no later than the time specified in Section 4(b); (iii) a pro rata portion of
the Annual Bonus Executive would have earned for the fiscal year of termination had no termination occurred (calculated based on the Annual Bonus Target and number of days the Executive was employed by the Company in the fiscal year during which the
Date of Termination occurs compared to the total number of days in such fiscal year), payable no later than the time specified in Section 4(b); and (iv) with respect to Equity Bonus awards or awards under the Plan, vesting, payment and
other terms as provided for herein or under the terms of the applicable Plan documents. The foregoing payments shall be in addition to what the Executive’s spouse, beneficiaries or estate may be entitled to receive pursuant to any employee
benefit plan or life insurance policy then provided to the Executive or maintained by the Company. The payments provided for in this Section 10(a) shall fully discharge the obligations of the Company and its affiliates hereunder and the Company
and its affiliates shall be under no obligation to provide any further compensation to the Executive, the Executive’s surviving spouse or the legal representative of the Executive’s estate. 

(b) During any period that the Executive fails to perform the Executive’s duties hereunder as a result of incapacity and disability due
to physical or mental illness, the Company shall (i) continue to provide to the Executive the then current Base Salary and the Benefits until the Executive returns to the Executive’s duties or until the Executive’s employment is
terminated pursuant to Section 8(b) and (ii) with respect to Equity Bonus awards or awards under the Plan, vesting, payment and other terms as provided for herein or under the terms of the applicable Plan documents; provided, however, that
should the Executive fail to perform the Executive’s duties but remain employed for a period of twelve (12) months, the Company will cease paying the Base Salary. The foregoing payments shall be in addition to what the Executive may be
entitled to receive pursuant to any disability benefit plan then provided to the Executive or maintained by the Company. The payments provided for in this Section 10(b) shall fully discharge the obligations of the Company and its affiliates
hereunder and the Company and its affiliates shall be under no obligation to provide any further compensation to the Executive. 
 (c) If
the Executive’s employment shall be terminated for cause pursuant to Section 8(c), the Executive shall receive the then current Base Salary and the Benefits through the Date of Termination and any Unpaid Prior Year Bonus, payable no later
than the time specified in Section 4(b). The payments provided for in this Section 10(c) shall fully discharge the obligations of the Company and its affiliates hereunder and the Company and its affiliates shall be under no obligation to
provide any further compensation to the Executive. 
 (d) If the Company shall terminate the Executive’s employment pursuant to
Section 8(d), or if the Executive shall terminate the Executive’s employment hereunder pursuant to Section 9, the Executive shall receive: (i) the greater of (A) the then current Base Salary and the Annual Bonus in the same
manner as though the Executive continued to be employed 

  
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hereunder through June 30, 2020, with the amount of the Annual Bonus payment(s) equal to the Annual Bonus Target, and (B) each of the then current Base Salary and the Annual Bonus paid
in the same manner as though the Executive continued to be employed hereunder for the successive twenty four (24) months following the Date of Termination, with the amount of the Annual Bonus payment(s) equal to the Annual Bonus Target;
(ii) any Unpaid Prior Year Bonus, payable no later than the time specified in Section 4(b)); (iii) a pro rata portion of the Annual Bonus Executive would have earned for the fiscal year of termination had no termination occurred
(calculated based on the Annual Bonus Target and number of days the Executive was employed by the Company in the fiscal year during which the Date of Termination occurs compared to the total number of days in such fiscal year), payable no later than
the time specified in Section 4(b); and (iv) continued vesting of any Equity Bonus awards or awards under the Plan that were granted prior to the Date of Termination in the same manner as though the Executive continued to be employed
through June 30, 2020 with payments made at the same times they would have been made had the Executive continued to be employed through such date (and, for the avoidance of doubt, any Equity Bonus awards that would not have been payable but for
continued employment through a date after June 30, 2020 shall be forfeited); and (v) and Company paid premiums under the Consolidated Omnibus Budget Reconciliation Act of 1985, as amended (“COBRA”), for you and your eligible
dependents through June 30, 2020 which amounts shall either be paid directly or reimbursed to you by the Company. The payments provided for in this Section 10(d) shall fully discharge the obligations of the Company and its affiliates
hereunder and the Company and its affiliates shall be under no obligation to provide any further compensation to the Executive. 
 (e) A
precondition to the Company’s obligation to pay compensation and provide benefits to the Executive (or the Executive’s surviving spouse or the legal representative of the Executive’s estate) pursuant to this Section 10 shall be
the execution and non-timely revocation by the Executive, or as the case may be, the Executive’s surviving spouse or the legal representative of the Executive’s estate, of the Company’s then standard separation agreement and general
release and the continued compliance with the terms, conditions and covenants set forth therein. 
 (f) For the avoidance of doubt, any
post-employment bonus payments or equity grants that vest or remain eligible for vesting will remain subject to the News Corporation claw-back policies and terms and conditions of the applicable Plan documents. 

(g) Without duplicating any benefits set forth in this Section 10, upon any termination of employment, the Executive (or the
Executive’s spouse, beneficiaries or estate) will be entitled to any unreimbursed business expenses approved in accordance with the Company’s policy and due the Executive through termination and to receive any benefits vested, and to make
all elections and receive all payments and rights under all employee benefit, pension, insurance and other plans in which the Executive participated in accordance with the terms and conditions of the plan concerned. Such business expenses shall be
reimbursed as provided in Section 23(f). 
 (h) The Executive shall have no duty to mitigate the Executive’s damages hereunder and
any income earned by the Executive following the Executive’s termination 

  
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without cause (as defined in Section 8(c)) or the Executive’s resignation pursuant to Section 9 shall not reduce the compensation payable to the Executive hereunder. 

11. Survival of Agreement. This Agreement shall inure to the benefit of the Company and any other successors and general assigns of the
Company or any other corporation or entity which is a parent, subsidiary or affiliate of the Company to which this Agreement is assigned, and any other corporation or entity into which the Company may be merged or with which it may be consolidated.
For purposes of clarity, the Company may assign this Agreement in the event of an asset or stock sale of all or a majority of the Company to the controlling corporation or entity surviving or resulting from such asset or stock sale. The terms,
conditions, promises and covenants set forth in Sections 7 through 23 shall survive the termination of this Agreement and the Executive’s employment (in accordance with their respective terms) for any reason. 

12. Indemnity; Cooperation. 

(a) The Company shall indemnify the Executive and hold the Executive harmless from any cost, expense or liability arising out of or relating
to any acts, omissions or directions made by the Executive in the course of performing the Executive’s duties in good faith under this Agreement. 

(b) During the Term and for a period of three (3) years after the termination of the Executive’s employment, and during all
reasonable times thereafter, the Executive will (i) fully cooperate with the Company in providing truthful testimony as a witness or a declarant in connection with any present or future litigation, administrative or arbitral proceeding
involving the Company or any of its affiliates with respect to which the Executive may have relevant information and (ii) assist the Company during the investigatory and discovery phases (or prior thereto) of any judicial, administrative,
internal, arbitral or grievance proceeding involving the Company or any of its affiliates and with respect to which the Executive may have relevant information. The Company will, within thirty (30) days of the Executive producing receipts
satisfactory to the Company, reimburse the Executive for any reasonable and necessary expenses incurred by the Executive in connection with such cooperation. 

(c) Without limiting any other provision of this Agreement, this Section 12 shall survive the termination or expiration of this Agreement
for any reason whatsoever. 
 13. Notices. All notices, requests, demands or other communications provided for hereby shall be in
writing and shall be deemed to have been duly given (a) when delivered personally, (b) one (1) day after having been sent by telegram, telecopy or similar electronic means, or by overnight courier service against receipt, or
(c) four (4) days after having been sent within the continental United States by first-class certified mail, return receipt requested, postage prepaid, to the other party. Any notices to the Executive shall be sent to the last known
address of the Executive on record with the Company. 
 14. Governing Law. This Agreement shall be enforced, governed by and
construed in accordance with the laws of the State of New York, without regard to its conflicts of law principles. Each party hereby submits to the exclusive jurisdiction of the Supreme Court of the State of New York, and the United States District
Court for the Southern District of New York, 

  
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for the purpose of enforcement of this Agreement and waives, and agrees not to assert, as a defense in any such action or proceeding, that such party was not subject to the personal jurisdiction
of any such court or that venue is improper for lack of residence, inconvenient forum or otherwise. The parties also agree that service of process (the method by which a party may be served with any such court papers) may be made by overnight mail
at the applicable address set forth in Section 13. The Company may also have other rights and remedies it may have at any time against the Executive, whether by law or under this Agreement. 

15. Construction. Each party acknowledges that such party has participated with, at its option, the advice of counsel, in the
preparation of this Agreement. The language of all provisions of this Agreement shall in all cases be construed as a whole, extending to it its fair meaning, and not strictly for or against either of the parties. The parties agree that they have
jointly prepared and approved the language of the provisions of this Agreement and that should any dispute arise concerning the interpretation of any provision hereof, neither party shall be deemed the drafter nor shall any such language be
presumptively construed in favor of or against either party. 
 16. Severability. The conditions and provisions set forth in this
Agreement shall be severable, and if any condition or provision or portion thereof shall be held invalid or unenforceable, then said condition or provision shall not in any manner affect any other condition or provision and the remainder of this
Agreement and every section thereof construed without regard to said invalid condition or provision, shall continue in full force and effect. 

17. Assignment. Neither party shall have the right, subject to Section 11, to assign the Executive’s rights and obligations
with respect to the Executive’s actual employment duties without the prior consent of the other party. 
 18. Entire Agreement.
This Agreement constitutes the entire understanding between the parties hereto with respect to the subject matter hereof, and this Agreement supersedes and renders null and void any and all prior oral or written agreements, understandings or
commitments pertaining to the subject matter hereof, including, without limitation, the Prior Agreement. No waiver or modification of the terms or provisions hereof shall be valid unless in writing signed by the party so to be charged thereby and
then only to the extent therein set forth. 
 19. Withholding and Payroll Practices. All salary, severance payments, bonuses or
benefits provided by the Company under this Agreement shall be net of any tax or other amounts required to be withheld by the Company under applicable law and shall be paid in the ordinary course pursuant to the Company’s then existing payroll
practices or as otherwise specified in this Agreement. 
 20. Counterparts. This Agreement may be executed in multiple counterparts,
each of which shall be deemed an original, and all of which together shall constitute one and the same instrument. 
 21. Headings.
Headings in this Agreement are for reference only and shall not be deemed to have any substantive effect. 

  
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 22. Section 280G. 

(a) Notwithstanding any other provisions of this Agreement to the contrary, in the event that it shall be determined that any payment or
distribution in the nature of compensation (within the meaning of Section 280G(b)(2) of the Code) to or for the benefit of the Executive, whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or
otherwise (the “Payments”), would constitute an “excess parachute payment” within the meaning of Section 280G of the Code, the Company shall reduce (but not below zero) the aggregate present value of the Payments under the
Agreement to the Reduced Amount (as hereinafter defined), if reducing the Payments under this Agreement will provide the Executive with a greater net after-tax amount than would be the case if no such reduction was made. The Payments shall be
reduced as described in the preceding sentence only if (1) the net amount of the Payments, as so reduced (and after subtracting the net amount of federal, state and local income and payroll taxes on the reduced Payments), is greater than or
equal to (2) the net amount of the Payments without such reduction (but after subtracting the net amount of federal, state and local income and payroll taxes on the Payments and the amount of Excise Tax (as hereinafter defined) to which the
Executive would be subject with respect to the unreduced Payments). Any reduction shall be made in accordance with Section 409A of the Code. 

(b) The “Reduced Amount” shall be an amount expressed in present value that maximizes the aggregate present value of Payments
without causing any Payment under this Agreement to be subject to the Excise Tax, determined in accordance with Section 280G(d)(4) of the Code. The term “Excise Tax” means the excise tax imposed under Section 4999 of the Code,
together with any interest or penalties imposed with respect to such excise tax. 
 (c) All determinations to be made under this
Section 22 shall be made by an independent registered public accounting firm or consulting firm selected by the Company immediately prior to a change in control, which shall provide its determinations and any supporting calculations both to the
Company and the Executive within ten (10) days of the change in control. Any such determination by such firm shall be binding upon the Company and the Executive. All fees and expenses of the accounting or consulting firm in performing the
determinations referred to in this Section 22 shall be borne solely by the Company. 
 23. Section 409A. 

(a) This Agreement is intended to comply with Section 409A of the Code, and will be interpreted accordingly. References under this
Agreement to the Executive’s termination of employment shall be deemed to refer to the date upon which the Executive has experienced a “separation from service” within the meaning of Section 409A of the Code. 

(b) Notwithstanding anything herein to the contrary, (i) if at the time of the Executive’s separation from service with the Company,
the Executive is a “specified employee” as defined in Section 409A of the Code (and any related regulations or other pronouncements thereunder) and the deferral of the commencement of any payments or benefits otherwise payable
hereunder or payable under any other compensatory arrangement between the Executive and the Company, or any of its affiliates as a result of such separation from service is necessary in order to prevent any accelerated or additional tax under
Section 409A of the Code, then the 

  
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Company will defer the commencement of the payment of any such payments or benefits hereunder (without any reduction in such payments or benefits ultimately paid or provided to the Executive)
until the date that is six (6) months following the Executive’s separation from service (or the earliest date as is permitted under Section 409A of the Code), at which point all payments deferred pursuant to this Section shall be paid
to the Executive in a lump sum and (ii) if any other payments of money or other benefits due to the Executive hereunder could cause the application of an accelerated or additional tax under Section 409A of the Code, such payments or other
benefits shall be deferred if deferral will make such payment or other benefits compliant under Section 409A of the Code, or otherwise such payment or other benefits shall be restructured, to the extent possible, in a manner that does not cause
such an accelerated or additional tax. Any payments deferred pursuant to the preceding sentence shall be paid together with interest thereon at a rate equal to the applicable Federal rate for short-term instruments. 

(c) To the extent any reimbursements or in-kind benefits due to the Executive under this Agreement constitute “deferred
compensation” under Section 409A of the Code, any such reimbursements or in-kind benefits shall be paid to the Executive in a manner consistent with Treas. Reg. Section 1.409A-3(i)(1)(iv). Additionally, to the extent that the
Executive’s receipt of any in-kind benefits from the Company or its affiliates must be delayed pursuant to this Section due to the Executive’s status as a “specified employee”, the Executive may elect to instead purchase and
receive such benefits during the period in which the provision of benefits would otherwise be delayed by paying the Company (or its affiliates) for the fair market value of such benefits (as determined by the Company in good faith) during such
period. Any amounts paid by the Executive pursuant to the preceding sentence shall be reimbursed to the Executive (with interest thereon) as described above on the date that is six (6) months following the Executive’s separation from
service. 
 (d) Each payment made under this Agreement shall be designated as a “separate payment” within the meaning of
Section 409A of the Code. 
 (e) The Company shall consult with the Executive in good faith regarding the implementation of the
provisions of this Section. Without limiting the generality of the foregoing, the Executive shall notify the Company if the Executive believes that any provision of this Agreement (or of any award of compensation, including equity compensation, or
benefits) would cause the Executive to incur any additional tax under Section 409A of the Code and, if the Company concurs with such belief after good faith review or the Company independently makes such determination, then the Company shall,
after consulting with the Executive, use reasonable best efforts to reform such provision to comply with Section 409A of the Code through good faith modifications to the minimum extent reasonably appropriate to conform with Section 409A of
the Code. 
 (f) Any amount that the Executive is entitled to be reimbursed for any business-related expenses borne by employee under this
Agreement will be reimbursed to the Executive as promptly as practicable and in any event not later than the last day of the calendar year after the calendar year in which the expenses are incurred. Expenses eligible for reimbursement during any
calendar year will not affect the amount of expenses eligible for reimbursement in any other calendar year. 

  
 12 

 (g) Whenever a payment under this Agreement specifies a payment period with reference to a number
of days (e.g., “payment shall be made within thirty (30) days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company. 

(h) Unless this Agreement provides a specified and objectively determinable payment schedule to the contrary, to the extent that any payment
of base salary or other compensation is to be paid for a specified continuing period of time beyond the Executive’s termination of employment in accordance with the Company’s payroll practices (or other similar term), the payments of such
base salary or other compensation shall be made on a monthly basis. 
 (i) To the extent that severance payments or benefits pursuant to
this Agreement are conditioned upon the execution and delivery by the Executive of a separation agreement and general release (and the expiration of any revocation rights provided therein) which could become effective in one of two (2) taxable
years of the Executive depending on when the Executive executes and delivers such separation agreement and general release, any deferred compensation payment (which is subject to Section 409A of the Code) that is conditioned on execution of the
separation agreement and general release shall be made within ten (10) days after the separation agreement and general release becomes effective and such revocation rights have lapsed, but not earlier than the first business day of the later of
such taxable years. 
 [Signature page follows] 

  
 13 

 IN WITNESS WHEREOF, the parties hereto have affixed their signatures as of the day and year first
above written. 
  

							
	NEWS CORPORATION	 		 	SUSAN PANUCCIO
				
	By:	 	/s/ Keisha Smith-Jeremie	 		 	/s/ Susan Panuccio
	Name: Keisha Smith-Jeremie	 		 	
	Title: Chief Human Resources Officerrun-ex101_600.htm

 

Exhibit 10.1

EXECUTION VERSION

AMENDMENT NO. 4 TO THE CREDIT AGREEMENT

THIS AMENDMENT NO. 4 TO THE CREDIT AGREEMENT, dated March 8, 2017 (this “Amendment”), is entered into by and among SUNRUN INC., a Delaware corporation (“Sunrun”), AEE SOLAR, INC., a California corporation (“AEE Solar”), SUNRUN SOUTH LLC, a Delaware limited liability company (“Sunrun South”), and SUNRUN INSTALLATION SERVICES INC., a Delaware corporation (“Sunrun Installation Services” and, together with Sunrun, AEE Solar and Sunrun South, each, a “Borrower” and, collectively, the “Borrowers”), CLEAN ENERGY EXPERTS, LLC, a California limited liability company (“CEE” and, together with the Borrowers, each, a “Loan Party” and, collectively, the “Loan Parties”), and each of the Persons identified as a “Lender” on the signature pages hereto (each, a “Lender”) and acknowledged by CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, as the Administrative Agent (the “Administrative Agent”), and SILICON VALLEY BANK, as the Collateral Agent (the “Collateral Agent”).  

RECITALS

WHEREAS, the Borrowers entered into the Credit Agreement, dated as of April 1, 2015 (as amended from time to time, the “Credit Agreement”), by and among the Borrowers, CEE, as a Guarantor, the Administrative Agent, the Lenders party thereto, Silicon Valley Bank, as the Collateral Agent, and Credit Suisse Securities (USA) LLC, as the Lead Arranger and Book Runner;

WHEREAS, pursuant to Section 11.01 of the Credit Agreement, no amendment to the Credit Agreement is effective unless executed by the Borrowers or the applicable Loan Party, as the case may be, and at least two (2) Lenders having Total Credit Exposures representing more than 50% of the Total Credit Exposures of all Lenders and acknowledged by the Administrative Agent;

WHEREAS, this Amendment is not otherwise prohibited by Section 11.01 of the Credit Agreement;

WHEREAS, the Lenders party to this Amendment (the “Required Lenders”) have Total Credit Exposures representing more than 50% of the Total Credit Exposures of all Lenders under the Credit Agreement; 

WHEREAS, the Borrowers and the Required Lenders desire to amend the Credit Agreement on the terms set forth herein; and

WHEREAS, each of the Administrative Agent and the Collateral Agent by execution of this Amendment is providing its acknowledgement required under Section 11.01 of the Credit Agreement. 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

 

NOW, THEREFORE, in consideration of good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto, intending to be legally bound, agree as follows:

ARTICLE 1

DEFINITIONS

1.01 Definitions.  Capitalized terms not otherwise defined herein shall have the meanings set forth in the Credit Agreement.

1.02 Rules of Interpretation.  The rules of interpretation set forth in Section 1.02 of the Credit Agreement shall apply to this Amendment.  

ARTICLE 2

AMENDMENTS

2.01 Amendment to Section 5.05(b).  Section 5.05(b) of the Credit Agreement is hereby deleted in its entirety and replaced with the following text:

“Quarterly Financial Statements.  The most recently delivered unaudited Consolidated balance sheet of Sunrun, and the related Consolidated statements of income or operations and cash flows for the fiscal quarter ended on that date (i) were prepared in accordance with GAAP consistently applied throughout the period covered thereby, except as otherwise expressly noted therein, and (ii) fairly present the financial condition of the Borrowers and their Subsidiaries as of the date thereof and their results of operations for the period covered thereby, subject, in the case of clauses (i) and (ii), to the absence of footnotes and to normal year-end audit adjustments.”

2.02 Amendment to Section 6.01(b).  Section 6.01(b) of the Credit Agreement and the paragraph immediately following Section 6.01(b) of the Credit Agreement are hereby deleted in their entirety and replaced with the following text:

“Quarterly Financial Statements. As soon as available, but in any event within sixty (60) days after the end of each of the first three fiscal quarters of each fiscal year of Sunrun, a Consolidated balance sheet and the related Consolidated statements of Sunrun, as at the end of such fiscal quarter, of income or operations and cash flows for the portion of Sunrun’s fiscal year then ended, which Consolidated statements shall also set forth in comparative form, (A) in the case of the Consolidated balance sheet, either the figures for the prior fiscal quarter of the current fiscal year or the figures for the prior fiscal year ended, (B) in the case of the Consolidated statement of income or operations, the figures for the corresponding fiscal quarter of the previous fiscal year and, (C) in the case of the Consolidated statement of cash flows, the corresponding portion of the previous fiscal year.

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

2

 

 

All statements shall be provided in reasonable detail and prepared in accordance with GAAP and including management discussion and analysis of operating results inclusive of operating metrics in comparative form, such Consolidated statements to be certified by the chief executive officer, chief financial officer, treasurer or controller who is a Responsible Officer of Sunrun as fairly presenting the financial condition, results of operations and cash flows of Sunrun, subject only to normal year-end audit adjustments and the absence of footnotes.”

2.03 Amendment to Section 6.02.  The penultimate paragraph of Section 6.02 of the Credit Agreement is hereby deleted in its entirety and replaced with the following text:

“Documents required to be delivered pursuant to Section 6.01(a) or (b) or Section 6.02(g) (to the extent any such documents are included in materials otherwise filed with the SEC) may be delivered electronically and, if so delivered, shall be deemed to have been delivered on the date (a) on which the Borrowers post such documents, or provide a link thereto on the Borrowers’ website on the Internet at the website address listed on Schedule 1.01(a); or (b) on which such documents are posted on the Borrowers’ behalf on an Internet or intranet website, if any, to which each Lender and the Administrative Agent have access (whether a commercial, third-party website, related to an SEC filing or whether sponsored by the Administrative Agent); provided that: the Borrowers shall deliver paper copies of such documents to the Administrative Agent or any Lender upon its request to the Borrowers to deliver such paper copies.  The Administrative Agent shall have no obligation to request the delivery of or to maintain paper copies of the documents referred to above, and in any event shall have no responsibility to monitor compliance by the Borrowers with any such request by a Lender for delivery, and each Lender shall be solely responsible for requesting delivery to it or maintaining its copies of such documents.”

2.04 Amendment to Schedule 1.01(a).  Schedule 1.01(a) of the Credit Agreement is hereby amended by adding the following text to the end thereof:

“Borrowers’ Website Address for Purposes of the Penultimate Paragraph of Section 6.02 of the Credit Agreement:

http://investors.sunrun.com”

2.05 Amendment to Exhibit C.  Exhibit C of the Credit Agreement is hereby deleted in its entirety and replaced with the new Exhibit C attached hereto as Annex I.

ARTICLE 3

COVENANTS

3.01 Amendment to Schedule 5.21(g)(ii).  The Borrowers shall amend Schedule 5.21(g)(ii) of the Credit Agreement to reflect the Borrowers’ most recent update of all locations where any personal property Collateral is located at any premises owned or leased by a Loan Party with a 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

3

 

 

Collateral value in excess of $1,000,000 and deliver to the Administrative Agent such amended Schedule 5.21(g)(ii) within forty-five (45) days of the Amendment Effective Date and, to the extent that a Collateral Access Agreement has not been put in place in connection with any such location disclosed on such amended Schedule 5.21(g)(ii), shall deliver to the Collateral Agent a fully executed Collateral Access Agreement within ninety (90) days of delivery of such amended Schedule 5.21(g)(ii).

ARTICLE 4

REPRESENTATIONS AND WARRANTIES

Each Loan Party represents and warrants to each of the Lenders and the Administrative Agent, on the date hereof, that the following statements are true and correct:

4.01 Existence.  Such Loan Party is duly organized or formed, validly existing and, as applicable, in good standing under the Laws of the jurisdiction of its incorporation or organization.

4.02 Power and Authority.  Such Loan Party has the requisite power and authority to execute and deliver this Amendment.

4.03 Due Authorization.  The execution, delivery and performance of this Amendment have been duly authorized by all necessary corporate or limited liability company action on the part of such Loan Party.  The applicable resolutions of such Loan Party authorize the execution, delivery and performance of this Amendment by such Loan Party and are in full force and effect without modification or amendment. 

4.04 Binding Obligation.  This Amendment has been duly executed and delivered by such Loan Party, and this Amendment and the Credit Agreement, as amended by this Amendment, constitute the legally valid and binding obligation of such Loan Party, enforceable against such Loan Party in accordance with the terms of this Amendment and the Credit Agreement, subject to applicable bankruptcy, insolvency, reorganization, moratorium or similar laws affecting creditors’ rights generally and subject to general principles of equity, regardless of whether such enforceability is considered in a proceeding in equity or at law.

4.05 No Default or Event of Default.  As of the date hereof, no event has occurred and is continuing or would result from the consummation of the amendments contemplated by this Amendment that would constitute a Default or an Event of Default.

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

4

 

 

ARTICLE 5

CONDITIONS PRECEDENT

5.01 Conditions Precedent to Effectiveness.  The amendments contained in Article 2 of this Amendment shall not be effective until the date (such date, the “Amendment Effective Date”) that the following conditions precedent have been satisfied or waived by the Required Lenders:

(a)  The Administrative Agent shall have received copies of this Amendment executed by the Loan Parties and the Required Lenders, and acknowledged by the Administrative Agent and the Collateral Agent.

(b)  The Borrowers shall have paid all fees, costs and expenses of the Administrative Agent, the Collateral Agent and the Lenders incurred in connection with the execution and delivery of this Amendment (including third-party fees and out-of-pocket expenses of the Lenders’ counsel and fees of the Collateral Agent’s counsel and other advisors or consultants retained by the Administrative Agent).

(c)  The Borrowers shall have delivered or caused to be delivered any other customary documents as reasonably requested by the Administrative Agent in connection with this Amendment.

ARTICLE 6

GENERAL PROVISIONS

6.01 Notices.  All notices and other communications given or made pursuant hereto shall be made as provided in the Credit Agreement.

6.02 Severability.  In case any one or more of the provisions contained in this Amendment should be invalid, illegal or unenforceable in any respect, the validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby, and the parties hereto shall enter into good faith negotiations to replace the invalid, illegal or unenforceable provision.

6.03 Headings.  Section headings have been inserted in this Amendment as a matter of convenience for reference only and it is agreed that such paragraph headings are not a part of this Amendment and shall not be used in the interpretation of any provision of this Amendment.

6.04 Governing Law.  This Amendment shall be governed by and construed in accordance with the law of the State of New York.

6.05 Counterparts.  This Amendment may be signed in any number of counterparts and each counterpart shall represent a fully executed original as if signed by all of the parties listed below.

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

5

 

 

6.06 Ratification.  Except as amended hereby, the Credit Agreement and the other Loan Documents remain in full force and effect.

6.07 Amended Terms.  On and after the date hereof, all references to the Credit Agreement in each of the Loan Documents shall hereafter mean the Credit Agreement as amended by this Amendment.  The execution, delivery and performance of this Amendment shall not constitute a waiver of any provision of, or operate as a waiver of any right, power or remedy of the Lenders, the Administrative Agent, the Collateral Agent or the Arranger under, the Credit Agreement or any other Loan Document.  Nothing contained in this Amendment shall be construed as a substitution or novation of the obligations of the Loan Parties outstanding under the Credit Agreement or instruments securing the same, which obligations shall remain in full force and effect, except to the extent that the terms thereof are modified by this Amendment.  Nothing expressed or implied in this Amendment shall be construed as a release or other discharge of the Loan Parties from any of their obligations or liabilities under the Credit Agreement or any other Loan Document.

6.08 Loan Document.  This Amendment shall constitute a Loan Document under the terms of the Credit Agreement.

6.09 Costs and Expenses; Indemnification; Reimbursement.  The parties hereto agree that this Amendment is subject to the costs and expenses, indemnification, reimbursement and related provisions set forth in Section 11.04 of the Credit Agreement. 

6.10 Submission to Jurisdiction; Waiver of Venue; Service of Process; Waiver of Jury Trial.  The submission to jurisdiction, waiver of venue, service of process and waiver of jury trial provisions set forth in Sections 11.14(b), (c) and (d) and 11.15 of the Credit Agreement, respectively, are hereby incorporated by reference, mutatis mutandis.

[SIGNATURE PAGES FOLLOW]

 

 

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

6

 

 

IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the date first set forth above.

 

	
BORROWERS:
	
SUNRUN INC., 

a Delaware corporation

	
 
	
 

	
 
	
By:/s/ Robert P. Komin, Jr.                       

	
 
	
Name: Robert P. Komin, Jr.

	
 
	
Title: CFO

	
 
	
 

	
 
	
 

	
 
	
AEE SOLAR, INC., 

a California corporation

	
 
	
 

	
 
	
By:/s/ Robert P. Komin, Jr.                        

	
 
	
Name: Robert P. Komin, Jr.

	
 
	
Title: CFO

	
 
	
 

	
 
	
 

	
 
	
SUNRUN SOUTH LLC, 

a Delaware limited liability company

	
 
	
 

	
 
	
By:/s/ Robert P. Komin, Jr.                        

	
 
	
Name: Robert P. Komin, Jr.

	
 
	
Title: CFO

	
 
	
 

	
 
	
SUNRUN INSTALLATION SERVICES INC., 

a Delaware corporation

	
 
	
 

	
 
	
By:/s/ Robert P. Komin, Jr.                        

	
 
	
Name: Robert P. Komin, Jr.

	
 
	
Title: CFO

	
 
	
 

	
GUARANTOR:
	
CLEAN ENERGY EXPERTS, LLC, 

a California limited liability company

	
 
	
 

	
 
	
By:/s/ Robert P. Komin, Jr.                        

	
 
	
Name: Robert P. Komin, Jr.

	
 
	
Title: CFO

 

 

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

[Signature Page to Amendment No. 4 – Credit Agreement]

 

 

	
 
	
CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH, 

as Administrative Agent and Lender

	
 
	
 

	
 
	
By:/s/ Mikhail Faybusovich                       

	
 
	
Name: Mikhail Faybusovich

	
 
	
Title: Authorized Signatory

	
 
	
 

	
 
	
 

	
 
	
By:/s/ Karim Rahimtoola                          

	
 
	
Name: Karim Rahimtoola

	
 
	
Title: Authorized Signatory

 

 

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

[Signature Page to Amendment No. 4 – Credit Agreement]

 

 

 

		
	
 
	
MORGAN STANLEY SENIOR FUNDING, INC., 

as Lender

	
 
	
 

	
 
	
By:/s/ Pat Layton                                             

	
 
	
Name: Pat Layton

	
 
	
Title: Vice President

 

 

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

[Signature Page to Amendment No. 4 – Credit Agreement]

 

 

 

	
 
	
GOLDMAN SACHS BANK USA, 

as Lender

	
 
	
 

	
 
	
By:/s/ Eddie Achagba                         

	
 
	
Name: Eddie Achagba

	
 
	
Title: Authorized Signatory

 

 

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

[Signature Page to Amendment No. 4 – Credit Agreement]

 

 

 

	
 
	
KEYBANK NATIONAL ASSOCIATION,

as Lender

	
 
	
 

	
 
	
By:/s/ Richard Gerling                                    

	
 
	
Name:Richard Gerling

	
 
	
Title:Senior Vice President

 

 

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

[Signature Page to Amendment No. 4 – Credit Agreement]

 

 

 

	
 
	
SILICON VALLEY BANK,

as Collateral Agent and Lender

	
 
	
 

	
 
	
By:/s/ Eric Jacobson                                

	
 
	
Name:Eric Jacobson

	
 
	
Title:Managing Director

 

 

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

[Signature Page to Amendment No. 4 – Credit Agreement]

 

 

	
 
	
NY GREEN BANK,

a division of the New York State Energy Research & Development Authority, 

as Lender

	
 
	
 

	
 
	
By:/s/ Alfred Griffin                                   

	
 
	
Name: Alfred Griffin

	
 
	
Title: President

 

 

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

[Signature Page to Amendment No. 4 – Credit Agreement]

 

 

ANNEX I

Exhibit C

Compliance Certificate

[Attached]

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

 

EXHIBIT C 

TO CREDIT AGREEMENT

Form of

Compliance Certificate

Financial Statement Date: [_______,_____]

 

		
	
TO:
	
Credit Suisse AG, Cayman Islands Branch, as Administrative Agent

	
 
	
 

	
RE:
	
Credit Agreement, dated as of April 1, 2015, by and among Sunrun Inc. (“Sunrun”), a Delaware corporation, AEE Solar, Inc., a California corporation, Sunrun South LLC, a Delaware limited liability company, and Sunrun Installation Services Inc., a Delaware corporation (collectively, the “Borrowers”), the Guarantors, the Lenders, Credit Suisse AG, Cayman Islands Branch, as Administrative Agent, and Silicon Valley Bank, as Collateral Agent (as amended, modified, extended, restated, replaced or supplemented from time to time, the “Credit Agreement”; capitalized terms used and not otherwise defined herein shall have the meaning set forth in the Credit Agreement)

	
 
	
 

	
DATE:
	
[Date]

	
 
	
 

The undersigned Responsible Officer1 hereby certifies as of the date hereof that [he/she] is the [_______________________] of Sunrun, and that, as such, [he/she] is authorized to execute and deliver this Compliance Certificate (this “Certificate”) to the Administrative Agent on the behalf of Sunrun and the other Loan Parties, and that:

[Use following paragraph 1 for fiscal year-end financial statements]

1. The Loan Parties have delivered the year-end audited financial statements required by Section 6.01(a) of the Credit Agreement for the fiscal year of Sunrun ended as of the above date, together with the report and opinion of an independent certified public accountant required by Section 6.01(a) of the Credit Agreement.

[Use following paragraph 1 for fiscal quarter-end financial statements]

1. The Loan Parties have delivered the unaudited financial statements required by Section 6.01(b) of the Credit Agreement for the fiscal quarter of Sunrun ended as of the above date, which Consolidated financial statements fairly present the financial condition, results of 

	
	 

	
1     
	
This Certificate should be from the chief executive officer, chief financial officer, treasurer or controller of the Borrowers, as applicable.

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

 

operations and cash flows of Sunrun in accordance with GAAP as of such date and for such period, subject only to normal year-end audit adjustments and the absence of footnotes.

2. The undersigned has reviewed and is familiar with the terms of the Credit Agreement and has made, or has caused to be made under [his/her] supervision, a detailed review of the transactions and condition (financial or otherwise) of Sunrun and its Subsidiaries during the accounting period covered by such financial statements.

3. A review of the activities of Sunrun and its Subsidiaries during such fiscal period has been made under the supervision of the undersigned with a view to determining whether during such fiscal period Sunrun and each of the other Loan Parties performed and observed all their obligations under the Loan Documents, and

[select one:]

[to the best knowledge of the undersigned, during such fiscal period each of the Loan Parties performed and observed each covenant and condition of the Loan Documents applicable to it, and no Default has occurred and is continuing.]

—or—

[to the best knowledge of the undersigned, the following covenants or conditions have not been performed or observed and the following is a list of each such Default and its nature and status:]

4. The representations and warranties of the Borrowers and each other Loan Party contained in Article V of the Credit Agreement or any other Loan Document, or which are contained in any document furnished at any time under or in connection therewith are (i) with respect to representations and warranties that contain a materiality qualification, true and correct in all respects on and as of the date hereof and (ii) with respect to representations and warranties that do not contain a materiality qualification, true and correct in all material respects on and as of the date hereof, and except that for purposes of this Compliance Certificate, the representations and warranties contained in subsections (a) and (b) of Section 5.05 of the Credit Agreement shall be deemed to refer to the most recent statements furnished pursuant to clauses (a) and (b), respectively, of Section 6.01 of the Credit Agreement, including the statements in connection with which this Compliance Certificate is delivered.

5. The financial covenant analyses and information set forth on Schedule A attached hereto are true and accurate on and as of the date of this Certificate.

Delivery of an executed counterpart of a signature page of this Certificate by fax transmission or other electronic mail transmission (e.g., “pdf’ or “tiff’) shall be effective as delivery of a manually executed counterpart of this Certificate.

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

 

 

		
	
 
	
SUNRUN INC.,

a Delaware corporation, as Borrower

	
 
	
 

	
 
	
By:                                                               

	
 
	
Name:                                                          

	
 
	
Title:                                                            

 

 

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

 

Schedule A

Financial Statement Date: [_________,___] (“Statement Date”)

to the Compliance Certificate 

($ in 000’s)

	
I.
	
Section 7.11(a) — Unencumbered Liquidity

	
 
	
A.
	
Sum of the Borrowers’ cash and Cash Equivalents (determined as of the last day of each month based on the average daily balance thereof during such month) held in deposit accounts and securities accounts in which the Collateral Agent has obtained a perfected first priority Lien subject to no other Lien: $                

Compliance

The Borrowers [are] [are not] in compliance with Section 7.11(a) of the Credit Agreement as the Unencumbered Liquidity of $______________2, which has been measured as of the last day of the month ended [_______, 201__], [is] [is not] greater than or equal to the minimum permitted Unencumbered Liquidity amount of $25,000,000 required as of such month end.3

	
II.
	
Section 7.11(b) — Interest Coverage Ratio

 

	
A.   Numerator (for the prior trailing 12-month period then ending on the most recent fiscal quarter end available):
	
 

	
i.    Operating income (measured in accordance with GAAP) plus depreciation and amortization included in COGS
	
$                       

	
ii.   [***] of general and administration costs (G&A, as measured in accordance with GAAP)
	
$                       

	
iii.  [***] percent of sales and marketing costs (S&M, as measured in accordance with GAAP)
	
$                       

	
iv.  [***] percent of research and development costs (R&D, as measured in accordance with GAAP)
	
$                       

	
v.  Sum of Line II.A.i + Line II.A.ii + Line II.A.iii + Line II.A.iv
	
$                       

 

	
	 

	
2 
	
 Insert Line I.A.

	
3 
	
 Pursuant to Section 7.11(a), an Event of Default shall not be deemed to have occurred solely as a result of the Borrowers’ failure to maintain an Unencumbered Liquidity of at least $25,000,000 as of any month end unless its Unencumbered Liquidity is less then such amount on two consecutive measurement dates; provided that Unencumbered Liquidity shall not be less than $20,000,000 as of the last day of any month.

 

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

 

 

	
B.   Denominator (for the prior trailing 12-month period then ending on the most recent fiscal quarter end available, which is to be paid in cash, in each case, of or by the Borrowers and their Subsidiaries, other than Excluded Subsidiaries, for such period of measurement):
	
 

	
i.    all interest, premium payments, debt discount, fees, charges and related expenses in connection with borrowed money (including capitalized interest) or in connection with the deferred purchase price of assets, in each case to the extent treated as interest in accordance with GAAP
	
$                       

	
ii.   all interest paid or payable with respect to discontinued operations
	
$                       

	
iii.  the portion of rent expense under Capitalized Leases that is treated as interest in accordance with GAAP
	
$                       

	
iv.  Aggregate cash Interest Charges of the Borrowers and their Subsidiaries, other than Excluded Subsidiaries (which Interest Charges shall not be determined on a Consolidated basis): Sum of Line II.B.i + Line II.B.ii + Line II.B.iii
	
$                       

 

	
 
	
C.
	
Interest Coverage Ratio (Line II.A.iii ÷ Line II.B.iv):                       to 1.00

Compliance

The Borrowers [are] [are not] in compliance with Section 7.11(b) of the Credit Agreement as the Interest Coverage Ratio of _____4 to 1.00 [is][is not] greater than or equal to the minimum permitted Interest Coverage Ratio of 2.00 to 1.00.

	
	 

	
4 
	
 Insert Line II.C.

[***] Confidential treatment has been requested for the bracketed portions. The confidential redacted portion has been omitted and filed separately with the Securities and Exchange Commission.

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