Document:

exhibit_10-1.htm

Exhibit 10.1

SECOND CONSENT AGREEMENT

This SECOND Consent Agreement (“Agreement”), is entered into as of October 20, 2015, among Alpha Capital Anstalt (“Lender”) and Andalay Solar, Inc. (“Borrower”).

RECITALS

A. WHEREAS, pursuant to a Second Amendment to Loan and Security Agreement dated February 27, 2015 (the “Second Amendment”) Borrower issued to Lender a note in the principal amount of $500,000 (the “Note”).

B. WHEREAS, the Note is convertible into the Borrower’s common stock at a conversion price of $0.005 per share (the “Conversion Price”).

 

C. WHEREAS, pursuant to Section 3.4 of the Second Amendment, as amended by the Consent dated September 1, 2015, the Borrower is prohibited from issuing stock below $0.005 per share without the consent of the Lender.

 

D. WHEREAS, the Borrower desires to issue shares of its common stock to Southridge Partners II LP (“Southridge”) at $0.002 per share (the “Southridge Share Issuance”) pursuant to the equity purchase agreement executed between the Borrower and Southridge in December 2014.

AGREEMENT

For good and valuable consideration, receipt of which is hereby acknowledged, the parties agree as set forth below.

1. Conversion Price.  The Borrower hereby reduces the Conversion Price to $0.002 per share, subject to further adjustment as set forth in the Second Amendment and Note.

2. Consent.  The Lenders consents to the Southridge Share Issuance.

3. Choice of Law.  This Agreement and all transactions contemplated hereunder and/or evidenced hereby shall be governed by, construed under, and enforced in accordance with the internal laws of the State of New York without giving effect to conflicts of law principles.

  

  

  

 

4. Venue.  The parties hereby agree that all actions or proceedings arising in connection with this Agreement shall be tried and litigated only in the State and Federal courts located in the State and County of New York or, at the sole option of Lender, in any other court in which Lender shall initiate legal or equitable proceedings and which has subject matter jurisdiction over the matter in controversy. Each of Borrower and Lender waives, to the extent permitted under applicable law, any right each may have to assert the doctrine of forum non conveniens or to object to venue to the extent any proceeding is brought in accordance with this section.

 

5. JURY TRIAL WAIVER.  BORROWER AND LENDERS HEREBY WAIVE THEIR RESPECTIVE RIGHTS TO A JURY TRIAL OF ANY CLAIM OR CAUSE OF ACTION BASED UPON OR ARISING OUT OF ANY OF TRANSACTIONS CONTEMPLATED THEREIN, INCLUDING, WITHOUT LIMITATION, CONTRACT CLAIMS, TORT CLAIMS, BREACH OF DUTY CLAIMS, AND ALL OTHER COMMON LAW OR STATUTORY CLAIMS. BORROWER AND LENDERS REPRESENT THAT EACH HAS REVIEWED THIS WAIVER AND EACH KNOWINGLY AND VOLUNTARILY WAIVES ITS JURY TRIAL RIGHTS FOLLOWING CONSULTATION WITH LEGAL COUNSEL. IN THE EVENT OF LITIGATION, A COPY OF THIS AGREEMENT MAY BE FILED AS A WRITTEN CONSENT TO A TRIAL BY THE COURT.

 

6. Interpretation.  Headings and numbers have been set forth herein for convenience only. Unless the contrary is compelled by the context, everything contained in each section applies equally to this entire Agreement.  This Agreement and all agreements relating to the subject matter hereof are the product of negotiation and preparation by and among each party and its respective attorneys, and shall be construed accordingly.  In the event that any one or more of the provisions contained in this Agreement shall be for any reason held to be invalid, illegal or unenforceable in any respect, then such provision shall be ineffective only to the extent of such prohibition or invalidity, and the validity, legality, and enforceability of the remaining provisions contained herein shall not in any way be affected or impaired thereby. The parties agree to replace any invalid provision with a valid provision, which most closely approximates the intent and economic effect of the invalid provision.

 

7. Amendments in Writing.  Neither this Agreement nor any provisions hereof may be changed, waived, discharged, or terminated, nor may any consent to the departure from the terms hereof be given, orally (even if supported by new consideration), but may only be by an instrument in writing signed by all parties to this Agreement. Any waiver or consent so given shall be effective only in the specific instance and for the specific purpose for which given.  Except as specifically consented to and modified herein the Second Amendment, LSA (as defined in the Second Amendment), and Note remain in full force and effect including the security interest granted to the Lender thereunder.  The Borrower acknowledges that this Agreement shall not modify the Lender’s holding period of the Note for Rule 144 purposes.

 

 

8. Counterparts; Facsimile Execution.  This Agreement may be signed in any number of counterparts, each of which shall be an original, with the same effect as if all signatures were upon the same instrument.  This Agreement or a signature page thereto intended to be attached to a copy of this Agreement, signed and transmitted by facsimile machine, telecopier or other electronic means (including via transmittal of a “pdf” file) shall be deemed and treated as an original document. The signature of any person thereon, for purposes hereof, is to be considered as an original signature, and the document transmitted is to be considered to have the same binding effect as an original signature on an original document. At the request of any party hereto, any facsimile, telecopy or other electronic document is to be re-executed in original form by the persons who executed the facsimile, telecopy of other electronic document. No party hereto may raise the use of a facsimile machine, telecopier or other electronic means or the fact that any signature was transmitted through the use of a facsimile machine, telecopier or other electronic means as a defense to the enforcement of this Agreement.

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IN WITNESS WHEREOF, the parties hereto have caused this Consent Agreement to be executed as of the date first set forth above.

BORROWER

Andalay Solar, Inc.

/s/ Steven Chan

By: Steven Chan

Title: CEO

LENDER

Alpha Capital Anstalt

/s/ Konrad Ackermann

By: Konrad Ackermann

Its: DirectorExhibit

EXHIBIT 10.07

Emmanuel Villalobos
Forward Marketer, Long-Term Trading
El Paso Electric Company 

October 13, 2015

Mr. Don Stoneberger
Freeport-McMoRan Copper & Gold Energy Services 
333 North Central Avenue Suite 21.021
Phoenix, AZ  85004

Re: Power Purchase and Sale Agreement between Freeport-McMoRan Copper & Gold Energy Services, LLC And El Paso Electric Company

Dear Mr. Stoneberger,

Pursuant to Section 3.4 of the Power Purchase and Sale Agreement ("Agreement") between Freeport-McMoRan Copper & Gold Energy Services, LLC ("FMES") (formerly, Phelps Dodge Energy Services, LLC) and El Paso Electric Company ("EPE"), as memorialized by letter agreement dated March 23, 2015 among FMES, EPE and Samchully Power & Utilities 1, LLC, FMES and EPE (collectively the "Parties") hereby agree to maintain the quantity for energy to be purchased and sold under Sections 3.1 and 3.2 of the Agreement at 125 MW per hour through 11:59 p.m. Mountain Standard Time on December 31, 2016. This is in accordance with our recent phone conversations, and subsequent acceptance of FMES' offer for an additional 25 MW for the period of one year. The parties further agree that the quantity of firm energy that may be dispatched by EPE pursuant to Section 3.6 of the Agreement is 125 MW per hour, less the quantity of energy sold and delivered by FMES pursuant to Section 3.1. The amount of energy to be purchased and sold under the Agreement was set to revert to the original base contract amount of 100 MW per hour, on 11:59 p.m. Mountain Standard Time on December 31, 2015, based on a September 17, 2014 agreement between the Parties.

Please indicate FMES' acknowledgement of the foregoing agreement by signing this letter in the place indicated below and returning the original or a copy thereof to my attention at your earliest convenience.

Sincerely,

/s/ Emmanuel Villalobos

Emmanuel Villalobos

1

[AUTHORIZING SIGNATUES]

El Paso Electric Company

/s/ David Hawkins                                       
VP System Operations Resource Planning & Management
     

Freeport-McMoRan Copper & Gold Energy Services, LLC

/s/ Don Stoneberger                                      
President, Freeport-McMoRan Copper & Gold Energy Services, LLC

Cc:    D.H. Kim
Samchully Power & Utilities 1, LLC

2Exhibit

Exhibit 10.1

FEDERAL HOME LOAN BANK OF SAN FRANCISCO

RESOLUTION

September 25, 2015

RESOLVED, that the Board of Directors of the Federal Home Loan Bank of San Francisco hereby approves the 2016 Director Compensation and Expense Reimbursement Policy, as set forth in Exhibit G.

	
	
	I certify that this is a true and correct copy of a resolution adopted by the Board of Directors of the Federal Home Loan Bank of San Francisco at its meeting on September 25, 2015.

	 

	/s/ Suzanne Titus-Johnson

	Suzanne Titus-Johnson, Senior Vice President and 
General Counsel-Corporate Secretary

Exhibit G

FEDERAL HOME LOAN BANK OF SAN FRANCISCO

Board of Directors
Compensation and Expense Reimbursement Policy
2016

The Board of Directors of the Federal Home Loan Bank of San Francisco hereby establishes the following Compensation and Expense Reimbursement Policy for 2016.

Compensation

To provide the Directors with reasonable compensation for the performance of their duties as members of the Board of Directors and the amount of time spent on official Bank business, the Bank will pay service and meeting fees to each member of the Board of Directors in accordance with the applicable position held by the Director as set forth below. 

	
				
	Position
	Maximum Annual Service Fee
	Maximum Annual Meeting Fees
	Total Maximum Annual Compensation

	Chair
	$67,500
	$47,500
	$115,000

	Vice Chair
	$62,500
	$47,500
	$110,000

	Audit and Risk Committee Chairs
	$52,500
	47,500
	$100,000

	All Other Committee Chairs
	$47,500
	$47,500
	$95,000

	Directors on Audit Committee
	$37,500
	$47,500
	$85,000

	Other Directors
	$32,500
	$47,500
	$80,000

In determining Total Maximum Annual Compensation, the Board considered compensation levels and practices at other Federal Home Loan Banks, the Directors Compensation Analysis—May 2015 report prepared by McLagan, and trends in the financial services market generally.

Service Fees

Service fees for the above positions compensate Directors for their continuous service as Bank directors, including for their time attending special Board and Committee meetings held during the year as needed, preparing for Board and Committee meetings, reviewing materials sent periodically between meetings, attending Director training and educational briefings, and all other activities outside the regularly scheduled two-day Board and Committee meetings, which may include attending Affordable Housing Advisory Council and Federal Home Loan Bank System meetings. Directors are expected to attend all Board meetings and meetings of the Committees on which they serve, and to remain engaged and actively participate in all meetings.

The maximum annual service fee will be pro-rated and paid with the meeting fee, if applicable, at the conclusion of each two-month service period on the Board of Directors (i.e., month-end February, April, June, August, October and December). A Director will not be paid the final two-

	
			
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month service fee for the year if the Director has not attended (in person or by telephone) at least 75% of all regular and special meetings of the Board and the Committees on which the Director served during the year (adjusted as needed for partial year service), or if the Board, in its discretion, determines at any time that the Director has consistently demonstrated a lack of engagement and participation in meetings attended.

If a director holds more than one position on the Board, during any applicable payment period, the director’s service fee for that period will be calculated based on the position that pays the highest service fee, and will be pro-rated for the number of days the director held that position during the applicable payment period. Any Director who joins or leaves the Board between service fee payments will receive a pro rata service fee for the number of days the Director was on the Board during the service period. 

Meeting Fees

Each Director will receive a meeting fee of $9,500 for attending any portion of five of the six regularly scheduled two-day Board and Committee meetings, so long as the Director’s attendance includes the Board meeting and at least one Committee on which the Director serves. A Director may receive a meeting fee for participation in one regularly-scheduled Board and Committee meeting by telephone. 

No meeting fee will be paid for participation in special meetings of the Board or Committees (in person or by telephone) or for participation in other Bank or Federal Home Loan Bank System activities. 

The President of the Bank is authorized to interpret this Policy, as necessary, according to applicable statutory, regulatory and policy limits. 

Expense Reimbursement

The Bank will reimburse Directors for necessary and reasonable travel, subsistence and other related expenses incurred in connection with the performance of their official duties, which may include participation in meetings or activities for which no fee is paid.

For expense reimbursement purposes, Directors’ “official duties” include: 

		
	1)
	Meetings of the Board and Board committees

		
	2)
	Meetings requested by the Federal Housing Finance Agency and Federal Home Loan Bank System committees

3)    Meetings of the Council of Federal Home Loan Banks and its committees
		
	4)
	Meetings of the Bank's Affordable Housing Advisory Council

		
	5)
	Events attended on behalf of the Bank when requested by the President in consultation with the Chair

		
	6)
	Other events attended on behalf of the Bank with the prior approval of the Chair

		
	7)
	Director education events attended with the prior approval of the Chair.

Each Director is responsible for making his or her own travel arrangements to attend meetings and other events for which expenses may be reimbursed.

	
			
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Expenses reimbursable for Directors are the same as the expenses reimbursable for senior officers under the Bank’s Reimbursement and Travel Expense Policy, except that Directors may not be reimbursed for gift or entertainment expenses.

To be reimbursed for allowable expenses, a Director must complete a Director Statement of Expenses form, itemizing the expenses within 30 days of completion of any covered trip or activity. The statement must be submitted to the Bank’s Assistant Corporate Secretary and must include the following information:

		
	1)
	Meeting(s) or event(s) attended, with dates and locations

		
	2)
	Itemization of reimbursable expenses, with supporting receipts for any expense exceeding $50.00

		
	3)
	Ticket receipt or e-ticket confirmation for airline travel

4)    To whom reimbursement should be made payable.

Records

The Bank will maintain records of (i) Directors’ attendance at meetings of the Board and Board committees; (ii) total compensation paid; and (iii) expenses reimbursed. The Bank will report this information to the Federal Housing Finance Agency as required.

	
			
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