Document:

Document

Exhibit 10.4

Execution Version

AMENDMENT NO. 2 TO THE SECOND AMENDED
AND RESTATED CREDIT AGREEMENT 
THIS AMENDMENT NO. 2 TO THE second amended and restated CREDIT AGREEMENT, dated as of March 5, 2021 (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”), each of the Persons identified as a “Lender” on the signature pages hereto (each, a “Lender”), and KEYBANK NATIONAL ASSOCIATION, as the Administrative Agent (the “Administrative Agent”).
RECITALS
WHEREAS, the Borrowers entered into the Credit Agreement, dated as of April 1, 2015 (as amended from time to time prior to November 12, 2019, the “Original Credit Agreement”), by and among the Borrowers, CEE, as a Guarantor, the Lenders party thereto, Credit Suisse, AG, Cayman Islands Branch, as the Administrative Agent and Silicon Valley Bank, as the Collateral Agent and L/C Issuer;
WHEREAS, pursuant to that certain Resignation and Appointment of Administrative Agent, dated as of November 12, 2019, by and among Credit Suisse, AG, Cayman Islands Branch, as the resigning administrative agent, KeyBank National Association, as the successor administrative agent, the Borrowers, the Lenders party thereto and Silicon Valley Bank, as Collateral Agent and as the L/C Issuer, KeyBank National Association was appointed as Administrative Agent and accepted such appointment;
WHEREAS, pursuant to that certain Amendment No. 7 to the Credit Agreement, dated as of November 12, 2019 (“Amendment No. 7”), the Borrowers, CEE, the Lenders party thereto, the Collateral Agent and the Administrative Agent amended and restated the Original Credit Agreement in its entirety as set forth in Annex 1 to Amendment No. 7 (the Original Credit Agreement, as so amended and restated, and as further amended prior to October 5, 2020, the “Amended and Restated Credit Agreement”);  
WHEREAS, pursuant to that certain Second Amended and Restated Credit Agreement, dated as of October 5, 2020, the Borrowers, CEE, the Lenders party thereto, the Collateral Agent and the Administrative Agent amended and restated the Amended and Restated Credit Agreement in its entirety as set forth in Annex 1 to the Second Amended and Restated Credit Agreement (such Second Amended and Restated Credit Agreement, as amended pursuant to Amendment No. 1 thereto, dated as of January 25, 2021, among the the Loan Parties, the Lenders parties thereto, the Administrative Agent, the Collateral Agent and the L/C Issuer, the “Existing Credit Agreement”); 
101621681.6

WHEREAS, the parties hereto desire to amend the Existing Credit Agreement on the terms set forth in this Amendment; 
WHEREAS, pursuant to Section 11.01 of the Existing Credit Agreement, no amendment to the Existing Credit Agreement is effective unless executed by the Borrowers or the applicable Loan Party, as the case may be, and the Required Lenders (being 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, the Lenders party to this Amendment have Total Credit Exposures constituting Required Lenders under the Existing Credit Agreement;
WHEREAS, this Amendment is not otherwise prohibited by Section 11.01 of the Existing Credit Agreement; and
WHEREAS, the Administrative Agent, by execution of this Amendment, is providing its acknowledgement required under Section 11.01 of the Existing Credit Agreement; 
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
1.01Definitions.  Capitalized terms not otherwise defined in this Amendment shall have the meanings set forth in the Existing Credit Agreement.
1.02Rules of Interpretation.  The rules of interpretation set forth in Section 1.02 of the Existing Credit Agreement shall apply to this Amendment.  Solely for purposes of convenience, an amendment to an existing provision of the Credit Agreement is shown in this Amendment with the text that is deleted from the provision (indicated textually in the same manner as the following example: deleted text) and the text that is added to the provision (indicated textually in the same manner as the following example: double-underlined text).
ARTICLE 2
AMENDMENTS
2.01Additional Definitions.  The following new definitions are added to Section 1.01 of the Existing Credit Agreement (in proper alphanumeric order):
“Specified Vivint Entity” means each entity listed on Schedule 1.01(e) hereto, as such Schedule 1.01(f) may be amended from time to time by Sunrun with the consent of the Required Lenders.
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“Specified Vivint Entity Transactions” means, with respect to any Specified Vivint Entities, the Vivint Financing(s) to which one or more of such Specified Vivint Entities are parties and that (i) is non-recourse to the Specified Vivint Entities (other than such recourse as is permitted pursuant to Section 7.02(i)) and (ii) as to which no Loan Party guaranties payment of debt service for such Vivint Financing.
2.02Amendment to Section 7.02(i).  Section 7.02(i) of the Existing Credit Agreement is hereby amended in its entirety to read as follows:
(i) any Loan Party’s limited guarantees, indemnification obligations, and obligations to make capital contributions to or repurchase assets of (x) the Excluded Subsidiaries that are not Vivint Entities (including Equity Interests of such Excluded Subsidiaries) as required under the documents evidencing the Tax Equity Commitments, Cash Equity Commitments, Backlever Financings or System Refinancings, or SREC Transactions, as the case may be, (y) the Specified Vivint Entities as required under the documents evidencing the related Specified Vivint Entity Transactions or (z) Vivint Solar, Vivint Solar Developer, LLC or Vivint Solar Provider, LLC, but only to the extent relating to obligations of such Vivint Entity with respect to a Specified Vivint Entity involved in, and only as required by the documents evidencing, the related Specified Vivint Entity Transactions, so long as, in each case, (i) such limited guarantees, indemnification and capital contribution obligations are not made in respect of obligations to repay debt for or pay debt service with respect to borrowed money and, (ii) if any Loan Party is required to make a payment or contribution in connection with such obligations, after giving effect to such payment or contribution on a Pro Forma Basis, (x)(A) the Loan Parties shall be in compliance with each of the financial covenants set forth in Section 7.11 and (y)(B) no Borrowing Base Deficiency shall exist;
2.03Addition of Schedule.  The Existing Credit Agreement is hereby amended by adding Schedule 1.01(f) hereto as a new Schedule 1.01(e) to the Existing Credit Agreement, as the same may be amended from time to time by Sunrun with the consent of the Required Lenders.
2.04Ratification.  Except as amended by this Amendment, the Existing Credit Agreement and the other Loan Documents remain in full force and effect.
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2.05Amended Terms.  On and after the Amendment Effective Date, all references to the “Credit Agreement” in each of the Loan Documents shall mean the Existing 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 an Arranger under the Existing Credit Agreement or any other Loan Document.  Nothing contained in this Amendment shall be construed as a substitution or novation of the obligations (including the Obligations) of the Loan Parties outstanding under the Existing Credit Agreement or instruments securing or evidencing any of the Obligations, which shall continue and 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 Existing Credit Agreement or any other Loan Document.
2.06Loan Document.  This Amendment shall constitute a Loan Document under the terms of the Existing Credit Agreement.
2.07Reaffirmation of Guarantees and Security Interests.  Each Loan Party hereby (a) affirms and confirms its guarantees, pledges, grants and other undertakings under the Existing Credit Agreement, as amended by this Amendment, the Security Agreement and the other Loan Documents to which it is a party, and (b) agrees that all guarantees, pledges, grants and other undertakings thereunder shall continue to be in full force and effect and shall accrue to the benefit of the Secured Parties, including the Lenders.
ARTICLE 3
REPRESENTATIONS AND WARRANTIES
Each Loan Party represents and warrants to each of the Lenders and the Administrative Agent, on the date hereof and on the Amendment Effective Date (as hereinafter defined), that the following statements are true and correct:
3.01Existence.  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.
3.02Power and Authority.  Such Loan Party has the requisite power and authority to execute and deliver this Amendment.
3.03Due 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. 
3.04Binding Obligation.  This Amendment has been duly executed and delivered by such Loan Party, and this Amendment and the Existing Credit Agreement, as amended by this 
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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 Existing Credit Agreement, as amended by this Amendment, 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.
3.05No 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 constitutes or would constitute a Default or an Event of Default.
3.06Representations and Warranties.  The representations and warranties of the Borrowers and each other Loan Party contained in the Existing Credit Agreement or any other Loan Document, are (i) with respect to representations and warranties that contain a materiality qualification, true and correct in all respects, and (ii) with respect to representations and warranties that do not contain a materiality qualification, true and correct in all material respects, in each case, on and as of the date hereof (or if such representations and warranties expressly relate to an earlier date, as of such earlier date), and the representations and warranties contained in Sections 5.05(a) and (b) of the Existing Credit Agreement are deemed to refer to the most recent statements furnished pursuant to Sections 6.01(a) and (b) of the Existing Credit Agreement, respectively.
3.07No Borrowing Base Deficiency or NYGB Borrowing Base Deficiency.  No Borrowing Base Deficiency or NYGB Borrowing Base Deficiency exists as of the date hereof.
3.08Material Adverse Effect.  No Material Adverse Effect has occurred or is continuing since the date of the last audited financial statements furnished pursuant to Section 6.01(a) of the Existing Credit Agreement.
ARTICLE 4
CONDITIONS PRECEDENT
4.01Conditions Precedent to Effectiveness.  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, the Required Lenders, and the Administrative Agent.
(b)The Borrowers shall have paid all fees, costs and expenses of the Administrative Agent and the Lenders incurred in connection with the execution and delivery of this Amendment (including fees and out-of-pocket expenses of the counsel and other advisors or consultants retained by the Administrative Agent).
ARTICLE 5
GENERAL PROVISIONS
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5.01Notices.  All notices and other communications given or made pursuant hereto shall be made as provided in the Existing Credit Agreement.
5.02Severability.  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.
5.03Headings.  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.
5.04Governing Law.  This Amendment shall be governed by and construed in accordance with the law of the State of New York.
5.05Counterparts.  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.  Each party to this Amendment represents and warrants to each of the other parties to this Amendment that it has the corporate or limited liability company capacity and authority to execute this Amendment through electronic means and there are no restrictions for doing so in that party’s constitutive documents.
5.06Costs 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 Existing Credit Agreement. 
5.07Submission 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 Existing Credit Agreement, respectively, are hereby incorporated by reference, mutatis mutandis.
[SIGNATURE PAGES FOLLOW]

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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/ Tom vonReichbauer    

		Name: Tom vonReichbauer
		Title: Chief Financial Officer
		
		
		AEE SOLAR, INC.,
a California corporation

		By: /s/ Tom vonReichbauer    

		Name: Tom vonReichbauer
		Title: Chief Financial Officer
		
		
		SUNRUN SOUTH LLC,
a Delaware limited liability company

		By: /s/ Tom vonReichbauer    

		Name: Tom vonReichbauer
		Title: Chief Financial Officer
		
		SUNRUN INSTALLATION SERVICES INC.,
a Delaware corporation

		By: /s/ Jeanna Steele    

		Name: Jeanna Steele
		Title: Secretary
		
	GUARANTOR:
	CLEAN ENERGY EXPERTS, LLC,
a California limited liability company

		By: /s/ Lynn Jurich    

		Name: Lynn Jurich
		Title: President

[Signature Page to Amendment No. 2 to the Second Amended and Restated Credit Agreement]

						
		KEYBANK NATIONAL ASSOCIATION,
as Administrative Agent and a Lender

		By: /s/ Richard Gerling    

		Name: Richard Gerling
		Title: Senior Vice President

[Signature Page to Amendment No. 2 to the Second Amended and Restated Credit Agreement]

						
		SILICON VALLEY BANK,
as a Lender

		By: /s/ Mona Maitra    

		Name: Mona Maitra

		Title: Managing Director

[Signature Page to Amendment No. 2 to the Second Amended and Restated Credit Agreement]

						
		MORGAN STANLEY SENIOR FUNDING, INC.,
as a Lender

		By:/s/ Marisa Moss    

		Name: Marisa B. Moss
		Title: Vice President

[Signature Page to Amendment No. 2 to the Second Amended and Restated Credit Agreement]

						
		ROYAL BANK OF CANADA,
as a Lender

		By: /s/ Mark W. Condon    

		Name: Mark W. Condon

		Title: Authorized Signatory

[Signature Page to Amendment No. 2 to the Second Amended and Restated Credit Agreement]

						
		CREDIT SUISSE AG, CAYMAN ISLANDS BRANCH,
as a Lender

		By: /s/ William O’Daly    

		Name: William O’Daly
		Title: Authorized Signatory
		

By:/s/ Komal Shah    

		Name: Komal Shah
		Title: Authorized Signatory

[Signature Page to Amendment No. 2 to the Second Amended and Restated Credit Agreement]

						
		NY GREEN BANK,
a division of the New York State Energy Research & Development Authority,
as a Lender

		By: /s/ Andrew Kessler    

		Name: Andrew Kessler

		Title: Acting President

[Signature Page to Amendment No. 2 to the Second Amended and Restated Credit Agreement]

SCHEDULE 1.01(e)

Specified Vivint Entities

With respect to the Sunrun 2021-1 Specified Vivint Entity Transaction:
Vivint Solar Financing VIII Parent, LLC
Sunrun Vulcan Depositor 2021-1, LLC
Sunrun Vulcan Issuer 2021-1, LLC 
Vivint Solar Fund 26 Manager, LLC
Vivint Solar Fund 27 Manager, LLC
Vivint Solar Owner VIII Manager, LLC
Vivint Solar Fund 26 Project Company, LLC
Vivint Solar Fund 27 Project Company, LLC
Vivint Solar Owner VIII, LLCDocument

Exhibit 10.1
EXHIBIT A

Director Stock Program

REVISED APRIL 28, 2021
1.    Continuation of Program. The director stock program (“DSP”) previously established under the Spirit AeroSystems Holdings, Inc. Omnibus Incentive Plan (“OIP”), pursuant to Section 2.4 of the OIP is hereby continued, subject to any modifications in the terms and provisions of the DSP described below. In addition to the generally applicable terms of the OIP, the following terms, conditions, and provisions will apply to Awards of Restricted Stock or Restricted Stock Units made to Participants as part of the DSP. Capitalized terms not specifically defined in this Exhibit will have the meanings set forth in the OIP.
2.    Eligibility. Each Eligible Person who is a Nonemployee Director of the Company will be eligible to participate in the DSP upon commencement of the individual’s term as a Director of the Company.
3.    Mandatory Grant of Restricted Stock or RSUs. $135,000 of a Nonemployee Director’s annual director compensation (or such higher or lower amount as may, in the future, be designated by the Board or Committee) will be paid in the form of an Award of Restricted Stock or RSUs, as elected by the Participant at the time and in the manner provided in this Exhibit (a “Mandatory Grant”). If no timely election is made by a Nonemployee Director, a Mandatory Grant will be made in the form of Restricted Stock.
4.    Elective Grant of Restricted Stock or RSUs. A Nonemployee Director may elect, at the time and in the manner provided in this Exhibit, to have all or any portion of the Participant’s annual director compensation that is not required to be paid in the form of a Mandatory Grant paid in cash or in the form of a grant of Restricted Stock and/or RSUs. A grant of Restricted Stock or RSUs made pursuant to an election described in this paragraph is referred to in this Exhibit as an “Elective Grant.” If no timely election is made by a Nonemployee Director, the compensation described in this paragraph will be paid in the form of cash.
5.    Number of Shares or RSUs. The number of Shares of Restricted Stock or RSUs granted to a Nonemployee Director in a Mandatory Grant or an Elective Grant will be determined under such conventions and rules as the Board or the Committee may adopt, in its sole discretion. 
6.    Vesting Schedule. Unless otherwise provided in an Award Agreement, the Restricted Stock or RSUs granted in a Mandatory Grant will be subject to a service condition. A Nonemployee Director must remain continuously in service for the director term to which the Mandatory Grant relates, which term is the Restricted Period for such award. If a Nonemployee Director incurs a Termination for any reason before the end of the term to which the Mandatory Grant relates (i.e., before the annual meeting of the shareholders of the Company immediately following the grant date of the Mandatory Grant), the Nonemployee Director will not satisfy the service condition, and the Restricted Stock and/or RSUs granted to the Nonemployee Director in 

that Mandatory Grant will be forfeited without any payment therefor. The Board may, in its sole discretion, waive this one-year service condition (in whole or in part) with respect to a Nonemployee Director if it deems it appropriate and in the best interests of the Company to do so. Any Elective Grant will be subject to the same service-based vesting term as applies under the Mandatory Grants; provided, however, in the event of the Participant’s Termination for any reason prior to the expiration of the Restricted Period, such Award will be forfeited and the Participant will instead receive a cash payment for the pro rata portion of the compensation subject to such Elective Grant that is earned, as determined by the Board, as of the date of the Participant’s Termination.  
7.    Elections. An election by a Nonemployee Director in connection with a Mandatory Grant or an Elective Grant must be made in writing and in such form as the Committee may prescribe (which may include, but is not limited to, making the election as part of an Award Agreement). 
An election with respect to a Nonemployee Director’s annual director compensation must be made on or before the December 31 preceding the Participant’s election (or re-election) as a Nonemployee Director, except that, in the case of a Participant who is first elected as a Nonemployee Director, the election may be made during the period ending 30 days after the date the Participant first becomes elected as a Nonemployee Director. 
An election will be irrevocable once it becomes effective and will continue in effect unless and until further modified. Failure to make a valid and timely election with respect to a Mandatory Grant will require that payment be made in the form of an Award of Restricted Stock. Failure to make a valid and timely election with respect to an Elective Grant will require that payment be made in cash.
If an election is made by a Nonemployee Director to receive an Elective Grant but the Nonemployee Director terminates service before the Elective Grant is made, payment will be made in cash. 
8.    83(b) Elections. Although an Award of Restricted Stock pursuant to a Mandatory Grant may be subject to certain lapse restrictions and may be substantially nonvested upon transfer, any such Award is intended to constitute a transfer of such Restricted Stock within the meaning of Code Section 83 upon grant. Accordingly, Nonemployee Directors who are awarded Restricted Stock will be eligible to make an election under Code Section 83(b) at the time such Award is made, subject to complying with all applicable requirements for making such an election, including, but not limited to, the requirement that such election be made within 30 days after the date of transfer.
*     *     *     *     *

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