Document:

tsla-ex108_955.htm

 

Exhibit 10.8

TENTH AMENDMENT TO AMENDED AND RESTATED AGREEMENT FOR RESEARCH & DEVELOPMENT ALLIANCE ON

TRIEX MODULE TECHNOLOGY

This TENTH AMENDMENT TO AMENDED AND RESTATED AGREEMENT FOR RESEARCH & DEVELOPMENT ALLIANCE ON TRIEX MODULE TECHNOLOGY (this “Tenth Amendment”) is effective as of March 31, 2017 (the “Effective Date”) and is by and between THE RESEARCH FOUNDATION FOR THE STATE UNIVERSITY OF NEW YORK (“FOUNDATION”), a non-profit educational corporation existing under the laws of the State of New York, having an office located at 257 Fuller Road, Albany, New York 12203, on behalf of the Colleges of Nanoscale Science and Engineering of the State University of New York Polytechnic Institute), and SILEVO, LLC (as successor in interest of SILEVO INC.) (“SILEVO”), a Delaware limited liability company with its principal office located at 47700 Kato Road, Fremont, California 94538. FOUNDATION and SILEVO are each referred to herein sometimes individually as a “Party” or, collectively, as “Parties.”

	
I. 
	
RECITALS

	
1.1.
	
FOUNDATION and SILEVO entered into that certain Amended and Restated Agreement for Research & Development Alliance on Triex Module Technology effective as of September 2, 2014, as amended by a First Amendment thereto effective as of October 31, 2014, a Second Amendment thereto effective as of December 15, 2014, a Third Amendment thereto effective as of February 12, 2015, a Fourth Amendment thereto effective as of March 30, 2015, a Fifth Amendment thereto effective as of June 30, 2015, a Sixth Amendment thereto effective as of September 1, 2015, a Seventh Amendment thereto effective as of October 9, 2015, an Eighth Amendment thereto effective as of October 26, 2015 (the “Eighth Amendment”) and a Ninth Amendment thereto effective as of December 9, 2015 (as amended, the “Agreement”).

	
1.2.
	
FOUNDATION and SILEVO wish to amend the Agreement as more particularly set forth herein.

THEREFORE, in consideration of the mutual promises and covenants contained in this Tenth Amendment and other good and valuable consideration, the receipt and sufficiency of which hereby are acknowledged, and intending to be legally bound hereby, the Parties agree as follows: 

	
II.
	
DEFINED TERMS 

	
2.1
	
In addition to the terms defined elsewhere in this Tenth Amendment, capitalized terms that are used but not defined herein shall have the meanings ascribed to such terms in the Agreement.

 

 

	
III.
	
AMENDMENTS

	
3.1
	
Scope Changes

(a)FOUNDATION and SILEVO shall use commercially reasonable best efforts to eliminate construction cost increases due to changes in the scope of the Manufacturing Facility. References in the Agreement to $400 Million (which was reduced to $348.1 Million in Amendment No. 8) with respect to FOUNDATION’s obligation to acquire Manufacturing Equipment will be reduced to $274,735,529 and instead, notwithstanding anything to the contrary in the Agreement (including references to $350 Million and $750 Million), FOUNDATION will pay for the items described in the summary attached hereto as Exhibit A, in addition to the contributions for which FOUNDATION is responsible under the Agreement. Notwithstanding the foregoing, in the event that the items described in Exhibit A of this Tenth Amendment (including those items included in Exhibit A to the Eighth Amendment) are completed for less than an aggregate of $125,264,471, then the FOUNDATION’s obligation to acquire Manufacturing Equipment shall be increased above $274,735,529 by any such amount.

(b)The last sentence of Section 3.1(a) of Amendment No. 8 is hereby deleted and replaced with the following: “SILEVO shall acquire a portion of the Manufacturing Equipment costing approximately $125,264,471, which equipment will be owned by SILEVO.”

(c)The following sentence is hereby added to the end of Section 5.1(c) of the Agreement: “Notwithstanding anything herein to the contrary, the FOUNDATION shall apply any unused portion of the FOUNDATION’s $274,735,529 commitment to acquire Manufacturing Equipment for the Manufacturing Facility (as such amount may be increased pursuant to the last sentence of Section 3.1(a) of this Tenth Amendment) as directed by SILEVO to (i) purchase additional Manufacturing Equipment for use at the Manufacturing Facility, (ii) install, test and commission Manufacturing Equipment at the Manufacturing Facility, (iii) make additions, modifications or improvements to the Manufacturing Facility, or (iv) take such other actions related to the condition of the Manufacturing Facility or Manufacturing Equipment as may be agreed upon by the Parties.”  Notwithstanding anything stated in this Section 3.1(c) to the contrary, any such application of the unused portion shall be consistent with any applicable Legal Requirements and shall be subject to the terms and conditions of the Grant Disbursement Agreement(s) between Fort Schuyler Management Corporation and Empire State Development.

	
IV.
	
MISCELLANEOUS  

No amendment or modification of this Tenth Amendment shall be valid or binding upon the Parties unless in a writing executed by both of the Parties.  This Tenth Amendment, together with the Agreement, is the complete and exclusive statement of the agreement of the Parties in respect of the subject matter described in this Tenth Amendment and shall supersede all prior and contemporaneous agreements, communications, representations, and understandings, either oral or written, between the Parties or any officers, agents or representatives thereof.  This Tenth Amendment may be signed in one or more counterparts, each of which shall be deemed to be an original and all of which when taken together shall constitute the same Tenth Amendment.  Any signed copy of this Tenth Amendment made by photocopy, facsimile or PDF Adobe format shall be considered an original.  Except as amended and/or modified by this Tenth Amendment, the Agreement (including Section 19.3 thereof) is hereby ratified and confirmed and all other terms of the Agreement shall remain in full force and effect, unaltered and unchanged by this Tenth Amendment.  In the event of any conflict between the provisions of this Tenth Amendment and the provisions of the Agreement, the provisions of this Tenth Amendment shall prevail.  Whether or not specifically amended by this Tenth Amendment, all of the terms and provisions of the Agreement are hereby amended to the extent necessary to give effect to the purpose and intent of this Tenth Amendment.

 

 

IN WITNESS WHEREOF, the Parties hereto have caused this Tenth Amendment to be executed and delivered by their duly authorized representatives as of the Effective Date. 

	
THE RESEARCH FOUNDATION FOR
	
 
	
 

	
THE STATE UNIVERSITY OF NEW YORK
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
By:
	
 
	
/s/ Paul C. Kelly
	
 
	
 

	
Name:
	
 
	
Paul C. Kelly
	
 
	
 

	
Title:
	
 
	
RF Operations Manager
	
 
	
 

	
Date:
	
 
	
April 10, 2017
	
 
	
 

	
 
	
 
	
 
	
 
	
 

	
SILEVO, LLC
	
 
	
 

	
By:
	
 
	
/s/ Peter Rive
	
 
	
 

	
Name:
	
 
	
Peter Rive
	
 
	
 

	
Title:
	
 
	
Vice President
	
 
	
 

	
Date:
	
 
	
April 4, 2017
	
 
	
 

 

 

 

	
Exhibit A

	
Silevo Requested Additional Scope Cost Breakdown (approved as of 11/18/16)

	
 
	
 

	
 
	
 

	
ITEM
	
SCTY Cost to be Absorbed by FSMC (USD)

	
Add Warehouse rack sprinklers
	
$768,000

	
Slab load increases
	
$2,816,000

	
Add compactor at Wafer Dock
	
$32,461

	
Add 1 CVD Crane
	
$416,000

	
Add 30 person break room
	
$320,000

	
LEED additional Design Fees
	
$79,480

	
Trailer parking increased to 60 trailers
	
$402,783

	
Add forklift charging stations
	
$70,000

	
Add full height walls at Mezzanine Scrubber rooms
	
$1,775,000

	
Chemical Loading Dock
	
$165,000

	
Extend corridor between CUB and Wafer warehouse
	
$910,000

	
Add Jib Crane
	
$54,194

	
Admixture for Moisture reduction/barrier or sealer where CRC coatings are required
	
$1,536,000

	
Electric car charging stations 2 units
	
$28,900

	
Add Fence at Yard Perimeter
	
$164,241

	
Add 30 office floor boxes
	
$21,000

	
CUB exterior wall changed to Versa wall system
	
$282,030

	
LED Light fixtures in Manuf.
	
$209,000

	
Chi Town
	
$10,934,000

	
Pre Action System at IT Rooms
	
$70,000

	
PVAC Credit
	
($642,000)

	
I&C Plant PAX
	
$601,000

	
Additional Conduit for Teledata Duct Bank
	
$7,923

	
 
	
 

	
TUM 3 ‐ Design Implementation
	
$31,594

	
Full Capacity/TUM 0 (50%)
	
$16,865,000

	
O/H Bridge Crane for PECVD
	
$1,613,674

	
WWT/Recycling
	
$12,400,000

	
SUBTOTAL 1 (Eighth Amendment)
	
$51,931,280

	
 
	
 

	
Fireproofing Manuf Roof Steel
	
$7,000,000

	
Secondary Entrance and Ring Road ‐ design fees only
	
$24,553

	
Ins. Carrier Premium ‐ Add. Fire protection‐ Design Fees/Committed Costs ‐
	
$34,098

	
Noise Study ‐
	
$24,172

	
Add Spare Conduit at Substation
	
$8,629

	
Add Jib Crane ‐ Design Fees
	
$26,843

	
Insurance Carrier premium‐
	
$8,848

	
TUM1/ 2 Revisions (ROME)/ Increased Sanitary/ Truck Off load/ Additional Eqpt pads
	
$38,677,123

	
Revise Gate Location due to deletion of Guard Shack
	
($13,706)

	
Add Bypass Isolation Transfer Switch
	
$313,538

	
Chemical Loading Dock Grade Beam
	
$376,681

 

 

	
Exhibit A

	
Silevo Requested Additional Scope Cost Breakdown (approved as of 11/18/16)

	
 
	
 

	
Guard Station ‐Design Fees/ committed costs ‐
	
$27,617

	
IPS Tool Water Resource Change
	
$65,248

	
Logistics and Second Entrance Traffic Analysis
	
$13,991

	
MES Cable Tray
	
$1,233,329

	
Teledata/ Security/ Card Access/Camera Infrastructure ‐
	
$3,072,467

	
CUB Data Center Committed Costs ‐ M+W Design Fees
	
$20,708

	
Added Bulk Gas Scope ‐ Praxair
	
$599,737

	
Delete Inter Rack Sprinklers
	
($758,444)

	
BCDS Additional Scope‐ Mixers at Day Tanks
	
$32,295

	
Epoxy in lieu of Sealer‐ Area 3
	
$279,249

	
Sealing of Fireproofing ‐
	
$10,781,250

	
Epoxy in lieu of Sealer‐ Area 1 and 2
	
$352,688

	
Epoxy in lieu of Sealer‐ Area 4
	
$511,755

	
Clean Texture/ HF Dip Tool Layout Changes (Berm and CRC Revisions)
	
$9,768

	
Larger OH Doors for Tool Access
	
$12,178

	
LSS ‐ Facilities & Tool Interfaces to FMS Design
	
$27,778

	
BCDS TBV #2 Relocation from Gridline N2 to N4 in Manufacturing Facility due to Tool relocations
	
$4,579

	
Ammonia Collection ‐ placeholder
	
$19,536

	
I&C Plant PAX Facilities Controls Rationalization (In Addition to 601k)
	
$769,763

	
Teledata/ Security Design Fees ‐ EYP
	
$44,273

	
CUB Data Center Committed Design Fees ‐ EYP
	
$12,221

	
O2 System in Inert Gas Room ‐ O2 System to be monitored by HPM System‐ Design Fees
	
$1,221

	
Tool Layout Change Progressive Build ‐ Priority 3 PB 4 Extend Exhaust to Clean Tex Tool 208 ‐ ROM
	
$19,708

	
Tool Layout Change‐ Priority 1 PB 5 Relocate and Modify Exhaust Ductwork and POCs to CLN 209 and 210
	
$87,111

	
Tool Layout Change‐ Progressive Build ‐ Priority 1 PB 9 Extend and modify exhaust to ECP Tools ‐ ROM
	
$56,306

	
Tool Layout Change ‐ Progressive Build‐ PB 43 Relocate Base Build Exhaust to ECP/ ISO Edge Tools ‐ ROM
	
$32,977

	
Tool Layout Change ‐ Progressive Build‐ PB 41 Remove and relocate existing exhaust ductwork for Clean Tex Tools CLN 201, 202, 203 and 204 ‐ ROM
	
$55,677

	
Tool Layout Change ‐ Priority 1 PB 6 Relocate Exhaust to PECVD Tool 214 ‐ ROM
	
$15,567

	
Safety Showers and infrastructure additional over the BOD as required for Tool Install scope
	
$661,773

	
Provide N2 Purifier
	
$594,240

	
Thiourea Collection ‐ placeholder
	
$744,837

	
Additional Cameras and Security Requirements ‐ Design
	
$29,429

	
Larger Overhead Doors‐ Design Fees ‐ EYP
	
$10,990

	
Gown Room modifications at Module Assembly and Cell ‐ M+W Design Fees
	
$18,454

	
Tool Layout Change ‐ Formerly Progressive Build Priority 1 ‐ PB42 Remove & Relocate Exhaust to CLN 205, 206, 207, 208
	
$81,908

	
Tool Utility Matrix Update‐ (TUM 4) ‐ M+W Design Fees
	
$38,481

 

 

	
Exhibit A

	
Silevo Requested Additional Scope Cost Breakdown (approved as of 11/18/16)

	
 
	
 

	
Office Painting Revisions‐ Reception and Cafeteria
	
$2,208

	
Ammonia/ Thirourea Splitter Boxes‐ added to Base build scope of work to facilitate Ammonia and Thirourea Treatment systems
	
$32,990

	
Extend Power and Data to Office Desks. Office furniture provided by SCTY did include prewired panels
	
$69,624

	
Conference Room Marker boards‐ Level 5 Finish and Marker board Paint
	
$16,273

	
O2 System in Inert Gas Room ‐ O2 System to be monitored by HPM System ‐ Construction
	
$19,576

	
Provide added Door in Vestibule ‐ Construction Placeholder
	
$6,640

	
Add Data for IPADs at Office Conference Rooms for SCTY Corporate standard
	
$18,851

	
H2 Over Pressure Protection‐ Construction Costs
	
$24,111

	
TUM 3A Specification and Baseline Monitoring Report Update‐ M+W Design
	
$19,312

	
Overhead doors in Manufacturing Area ‐ M+W Design
	
$9,584

	
Photo Ceiling Repairs due to Design Development in coordinating Progressive build MES Cable Tray
	
$16,355

	
Progressive Build Base Build Scope ‐ PB 2 increase to accommodate Tool Alignment‐ Relocate laterals Ar/ Ar/O2 blend from GL 15 to GL 11 and H2/N2 & GN2 from GL24 to GL 25. ( Note: H2/ N@ and GN2 is currently on hold pending direction from SCTY) ‐ placeholder
	
$60,000

	
Progressive Build‐ BB Scope increase to accommodate Tool

alignment‐ Priority 1 Design ‐ PB 2,

5,6,9,10,11,12,13,14,15,16,27,34,35,36
	
$72,498

	
Progressive Build‐ BB Scope increase to accommodate Tool alignment‐ Priority 2 & 3 Design ‐ PB4, PB8, PB14, PB19, PB20, PB21, PB22, PB23, PB24, PB25, PB26, PB28, PB 29, PB30, PB331, PB32, PB33, PB34, PB37, PB38 and PB14b. The scope of work for these items is identified in the attached M+W PCOs 128, 141 thru154, and 133, 155 , 156 and 158.
	
$177,201

	
Progressive Build‐ BB Scope increase to accommodate Tool alignment‐ Priority 1 Construction ‐ PB 12, PB 13, PB 14, PB14a, PB 14b, PB 15 and PB 16.
	
$121,881

	
Progressive Build‐ Priority 1 PB14A Align PCW lateral ‐ Design Fees
	
$3,510

	
Progressive Build ‐ Priority 1 PB 11 Relocate DIW laterals to PVD Tools
	
$153,778

	
Progressive Build ‐ Priority 1 PB 10 Relocate and modify DIW lateral to HF Dip Tools ‐ ROM
	
$177,076

	
Tool Install ‐ formerly Progressive Build ‐ Priority 1 PB 34 and 35 Drains ‐ ROM ‐ Partial Release of Long Lead Materials
	
$4,977,000

	
Tool Install ‐ formerly Progressive Build ‐ Priority 1 PB 34 and 35 Drains ‐ ROM ‐ Option 1 Fabricate and Install North side
	
$‐

	
Tool Install Progressive Build ‐ Priority 1 PB 27 Extend DIW to CLN Tools ‐ ROM ‐
	
$1,059,969

	
Progressive Build ‐ Priority 1 PB 27 Modify DIW to CLN Tools ‐ ROM ‐
	
($10,873)

	
Tool Install Progressive Build ‐ Priority 1 PB 36 Photo Drains & Sleeves thru Photo ceiling‐ ROM
	
$398,160

 

 

 

	
Exhibit A

	
Silevo Requested Additional Scope Cost Breakdown (approved as of 11/18/16)

	
 
	
 

	
Progressive Build‐ Priority 3 Design Credit‐ Credit for unused Design hours for PB3, 19, 20, 21 ,22, 23, 24, 25, 26, 28, 29, 37, and 38 associated with M+W PCO 179
	
($150,339)

	
Tool Install Progressive Build ‐ Priority 1 PB 28 Photo Drains & Sleeves thru Photo ceiling‐ Credit for Unused Scope
	
($391,220)

	
Office Interiors
	
$834,499

	
Thirourea Collection System ‐ Reduced Scope of Work
	
($125,311)

	
CAL 149 Summary for the following CALs‐ CAL 63.1 IT Backbone SCTY Scope, CAL 85R1.1 Modifications to Gown Room, CAL 145 Bridge Crane Stops, CAL 146 Change Locksets Office Bathrooms 130 and 131, CAL Start, Test Commission Scope Deletion, CAL 148 Additional Electrical Circuits for Office Furniture
	
($418,165)

	
SUBTOTAL 2 (Post Amendment 8)
	
$73,333,191

	
 
	
 

	
TOTAL SPEND
	
$125,264,471tsla-ex109_1658.htm

Exhibit 10.9

CONFIDENTIAL TREATMENT REQUESTED

Certain portions of this document have been omitted pursuant to a request for Confidential Treatment and, where applicable, have been marked with “[***]” to indicate where omissions have been made. The confidential material has been filed separately with the Securities and Exchange Commission.

ADMINISTRATIVE AGENT ACTION NO. 31

This ADMINISTRATIVE AGENT ACTION NO. 31 (this “Action”), dated as of March 30, 2017 (the “Effective Date”), is entered into by and among Megalodon Solar, LLC, a Delaware limited liability company (“Borrower”), [***], a Delaware limited liability company (“[***]”), and Bank of America, N.A., as the Administrative Agent (the “Administrative Agent”) and the Collateral Agent (the “Collateral Agent” and together with the Administrative Agent, the “Agents”) under the Loan Agreement, dated as of May 4, 2015 (as amended, the “Loan Agreement”), by and among the Borrower, the Agents, each of the Lenders and the other parties from time to time parties thereto.  As used in this Action, capitalized terms which are not defined herein shall have the meanings ascribed to such terms in the Loan Agreement.

A.[***] has granted a security interest in substantially all of its assets to the Collateral Agent under the Borrower Subsidiary Party Security Agreement.

B.[***] holds rights to certain SRECs that are generated, produced or otherwise created by or from its PV Systems.

C.Pursuant to that certain Assignment Agreement (the “Assignment Agreement”), dated as of the date hereof, by and among SolarCity Corporation, [***] and [***], a Delaware limited liability company (“[***]”), a copy of which is attached hereto as Exhibit 1, [***] intends to sell, convey, assign and transfer certain of the SRECs generated by its PV Systems to [***]. 

D.[***] is an Affiliate of [***].

E.The disposition of SRECs contemplated under the Assignment Agreement is permitted without the consent of either Agent or any Lender subject to the terms and conditions set forth in Sections 6.4(c), 6.10(d) and 6.16 of the Loan Agreement.

F.Pursuant to Section 9.10(a)(ii) of the Loan Agreement, the Administrative Agent is authorized to instruct the Collateral Agent to release any Lien on any property granted to or held by the Collateral Agent under any Financing Document that is sold or otherwise disposed of or to be sold or otherwise disposed of as part of or in connection with any sale or other disposition permitted under any Financing Document.

G.The Borrower has requested that the Collateral Agent release its lien on all of the “Assigned Rights” described in the Assignment Agreement (the “Released Assets”), effective immediately upon execution of this Action.

Accordingly, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, and subject to the conditions set forth herein, the parties hereto hereby agree as follows:

 

		
	
 
	
Administrative Agent Action No. 31

 

[***] 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.

 

Section 1.Release; Covenants.  Upon satisfaction of the condition precedent set forth in Section 3 on the Effective Date, without any further action by any party:

(a)the security interest granted to the Collateral Agent by [***] pursuant to the Borrower Subsidiary Party Security Agreement with respect to the Released Assets (and any related rights and assets described in the Assignment Agreement) shall automatically terminate and be released and all rights to the Released Assets shall revert to [***];

(b)the Collateral Agent authorizes the Borrower, [***] or any other party on behalf of the Borrower or [***], to file a UCC financing statement amendment relating to the Released Assets in the form attached hereto as Exhibit 2; and

(c)the Collateral Agent shall, at the sole cost and expense of the Borrower, procure, deliver or execute and deliver to the Borrower, from time to time, all further releases, termination statements, financing statement amendments, certificates, instruments and documents, each in form and substance satisfactory to the Borrower and the Collateral Agent, and take any other actions, as reasonably requested by the Borrower or that are required to evidence the release of the Released Assets.

Section 2.Condition Precedent.  This Action shall be effective upon the Administrative Agent’s receipt of counterparts of this Action, executed and delivered by each of the other parties hereto.

Section 3.Representations and Warranties.  The Borrower hereby represents and warrants as of the Effective Date that (a) the transactions contemplated by the Assignment Agreement are permitted under Sections 6.4(c), 6.10(d) and 6.16 of the Loan Agreement and (b) the Assignment Agreement (i) does not contain any provisions for liquidated damages, contingent liabilities or other damages, or the posting of collateral or other security and (ii) is entered into in the ordinary course of business at prices and on terms and conditions not less favorable to [***] than could be obtained on arm’s-length basis from unrelated third parties.

Section 4.Reference to and Effect on Financing Documents. Each of the Loan Agreement and the other Financing Documents is and shall remain unchanged and in full force and effect, and, except as expressly set forth herein, nothing contained in this Action shall, by implication or otherwise, limit, impair, constitute a waiver of, or otherwise affect the rights and remedies of the Administrative Agent or any of the other Secured Parties, or shall alter, modify, amend or in any way affect any of the terms, conditions, obligations, covenants or agreements contained in each of the Loan Agreement and any other Financing Document.  This Action shall also constitute a “Financing Document” for all purposes of the Loan Agreement and the other Financing Documents.

 

		
	
2
	
Administrative Agent Action No. 31

 

[***] 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.

 

Section 5.Incorporation by Reference.  Sections 10.5 (Entire Agreement), 10.6 (Governing Law), 10.7 (Severability), 10.8 (Headings), 10.11 (Waiver of Jury Trial), 10.12 (Consent to Jurisdiction), 10.14 (Successors and Assigns) and 10.16 (Binding Effect; Counterparts) of the Loan Agreement are hereby incorporated by reference herein, mutatis mutandis.

Section 6.Expenses. The Borrower agrees to reimburse the Administrative Agent in accordance with Section 10.4(b) of the Loan Agreement for its reasonable and documented out-of-pocket expenses in connection with this Action, including reasonable and documented fees and out-of-pocket expenses of legal counsel.

Section 7.Construction. The rules of interpretation specified in Section 1.2 of the Loan Agreement also apply to this Action, mutatis mutandis.

[Signature Pages Follow]

 

 

 

 

		
	
3
	
Administrative Agent Action No. 31

 

[***] 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.

 

IN WITNESS WHEREOF, the parties hereto have caused this Action to be duly executed by their respective authorized officers as of the day and year first written above.

 

	
MEGALODON SOLAR, LLC

as Borrower

	
 

	
By:
	
/s/ Lyndon Rive

	
Name:
	
Lyndon Rive

	
Title:
	
President

	
 
	
 

	
[***],

as a Subject Fund

	
 

	
By:
	
/s/ Lyndon Rive

	
Name:
	
Lyndon Rive

	
Title:
	
President

	
 
	
 

	
BANK OF AMERICA, N.A.

as Administrative Agent and Collateral Agent

	
 

	
By:
	
/s/ Darleen R. DiGrazia

	
Name:
	
Darleen R. DiGrazia

	
Title:
	
Vice President

 

Signature Page to Administrative Agent Action No. 31

[***] 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 1

ASSIGNMENT AGREEMENT

ASSIGNMENT AGREEMENT

([***])

 

This ASSIGNMENT AGREEMENT (this “Agreement”) is entered into as of March 30, 2017 (the “Effective Date”) by and among SolarCity Corporation, a Delaware corporation (“SolarCity”), [***], a Delaware limited liability company (the “Company” and the “Assignor”) and [***], a Delaware limited liability company (the “Assignee” and together with SolarCity and the Company, the “Parties”).  Capitalized terms used in this Agreement and not otherwise defined herein have the respective meanings assigned to such terms in Annex A to this Agreement.

 

WITNESSETH

 

WHEREAS, the Company holds rights to certain RECs that are generated, produced or otherwise created by or from the PV Systems listed on Schedule 1 attached hereto;

 

WHEREAS, Company desires to absolutely and irrevocably assign, convey and transfer collectively the entire interest in the Assigned Rights to the Assignee; and

 

WHEREAS, this Agreement and the transactions hereunder are being entered into in contemplation of a loan to be extended to Assignee pursuant to the Term Loan Agreement (the “Credit Agreement”), dated as of [***], among Assignee, as Borrower, [***], as Lender, and [***], as Administrative Agent and Collateral Agent (in its capacity as Administrative Agent, the “Third Party Beneficiary”, and in its capacity as the Collateral Agent, the “Collateral Agent”).

 

NOW, THEREFORE, for value received, in consideration of the mutual agreements herein contained and other good and valuable consideration, receipt and sufficiency thereof being hereby acknowledged, the parties hereto hereby agree as follows:

 

1.Irrevocable Assignment.

 

(a)The Company, hereby absolutely and irrevocably sells, conveys, transfers, assigns and delivers unto the Assignee, without recourse to the Company, any and all of the Company’s right, title and interest in and to the Assigned Rights.  The Assignee hereby irrevocably purchases and accepts the Assigned Rights and assumes, to the extent accruing from and after the Effective Date, any and all duties, obligations, responsibilities, claims, demands and other commitments with respect to or otherwise in connection with the Assigned Rights.

 

(b)It is the intention of the Parties that the Assigned Rights transferred by the Company to the Assignee pursuant to this Agreement shall not be part of the Company’s estate in the event of the filing of a bankruptcy petition by or against the Company under any bankruptcy or similar law.  On and after the Effective Date hereunder, the Assignee 

[***] 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.

 

shall own the Assigned Rights transferred by the Assignor to the Assignee, and the Assignor shall not take any action inconsistent with such ownership and shall not claim any ownership interest in the Assigned Rights.

 

(c)This sub-paragraph shall be of no force and effect with respect to an assignment of an Assigned Right unless there has been a final determination in a bankruptcy proceeding where the Assignor is the debtor, that an assignment referred to in this paragraph is not an absolute assignment of the Assigned Right, and all appeal periods (after such final determination) have lapsed without appeal.  In the event that the transfer of the Assigned Rights by the Assignor to the Assignee pursuant to this Agreement is deemed to be a secured financing (or is otherwise determined not to be an absolute assignment of all of Assignor’s right, title and interest in, to and under or transfer of all of Assignor’s equitable interest in, to and under the Assigned Rights transferred, or purportedly transferred hereunder), then (i) the Assignor shall be deemed hereunder to have granted to the Assignee, and the Assignor does hereby grant to the Assignee, a security interest in all of the Assignor’s right, title and interest in, to and under such Assigned Rights, whether now owned or hereafter acquired and (ii) this Agreement shall constitute a security agreement under applicable law.  For the avoidance of doubt: (i) in the event that a court determines that the transfer of the Assigned Rights is not an absolute assignment of the Assigned Rights or a “true sale” and such a determination is appealed, the Assignee shall be deemed to have the benefit of the security interest grant during the pendency of such appeals and (ii) if the appeals court holds, on a final, non-appealable basis that the Assigned Rights is an absolute assignment or a “true sale” then such security grant shall be deemed to have never been granted and shall have no force and effect.

 

2.Purchase Price.

 

(a)The purchase price for all of the Assigned Rights conveyed to the Assignee under this Agreement shall be the amount of $[***] (the “Purchase Price”), payable or to be provided on the Effective Date by payment in cash in immediately available funds.

 

(b)The Purchase Price shall be paid to the Company, in consideration of the Assigned Rights transferred by the Company. 

 

3.Representations and Warranties of SolarCity and the Company.  Each of SolarCity and the Company hereby represents and warrants to the Assignee with respect to itself as follows:

 

(a)It (i) is duly organized and validly existing under the laws of its jurisdiction of organization, (ii) is in good standing under such laws, and (iii) has full power and authority to execute, deliver and perform its obligations under this 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.

 

(b)Its execution, delivery and performance of this Agreement have been duly authorized and this Agreement has been duly executed and delivered and constitutes its legal, valid and binding obligation, enforceable against it in accordance with the terms hereof, except as enforceability may be limited by bankruptcy, insolvency and other legal principles pertaining to creditors’ rights.

 

(c)The Assigned Rights to be conveyed to the Assignee hereunder are, immediately prior to their conveyance hereunder owned by the Company, collectively, free and clear of any adverse claim or restrictions on transferability and the Company has the full right, organizational power and lawful authority to convey its respective portion of the same and interests therein and, upon conveyance thereof hereunder, the Assignee will have acquired good and marketable title to and a valid ownership interest in such Assigned Rights, free and clear of any adverse claim or restrictions on transferability.  No effective financing statement or other instrument similar in effect covering all or any part of any Assigned Rights conveyed hereunder is on file in any filing office, except such as may have been filed in favor of the Assignee as “Secured Party” or “Assignee”.

 

(d)Other than as previously provided for in the Services Agreement (as supplemented by the Limited Termination Agreement), the Assigned Rights are not subject to any prior sale, transfer, assignment or participation or any agreement with respect to the same. 

 

(e)No consent, approval, order or authorization of, and no filing with or notice to, any party is required which has not been obtained in connection with the authorization, execution, delivery or performance by it of this Agreement or under the transactions contemplated hereunder, including, without limitation, the transfer of the Assigned Rights to Assignee.

 

(f)Company is solvent and will not become insolvent as a result of the transactions contemplated by this Agreement and, after giving effect to the transactions contemplated by this Agreement, it will not have unreasonably small capital to conduct its business as now conducted or as planned.

 

(g)For accounting purposes, Company will treat the transactions effected by this Agreement as sales of assets to the Assignee in accordance with GAAP. Its financial records shall reflect that the assets conveyed hereunder have been conveyed to the Assignee, are no longer owned by it.

 

(h)No tax lien or similar adverse claim has been filed against Company, and no claim is being asserted against it, with respect to any such tax, assessment or other governmental charge. Any taxes, fees and other governmental charges payable by it in connection with the execution and delivery of this Agreement and the transactions contemplated hereby or thereby that are due have been paid.

 

[***] 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.

 

(i)There is not now, nor will there be at any time in the future, any agreement or understanding between Company and the Assignee (other than as expressly set forth herein) providing for the allocation or sharing of obligations to make payments or otherwise in respect of any taxes, fees, assessments or other governmental charges.

 

(j)Company has not conveyed any interest in any Assigned Rights to the Assignee with any intent to hinder, delay or defraud any of Assignor’s creditors.

 

(k)Company has received reasonably equivalent value in exchange for the conveyance of the Assigned Rights conveyed hereunder.

 

4.Representations and Warranties of Assignee.  The Assignee hereby represents and warrants to SolarCity and the Company that the Assignee (a) is duly organized and validly existing under the laws of its jurisdiction of organization, (b) is in good standing under such laws, (c) has full power and authority to execute, deliver and perform its obligations under this Agreement and (d) has given fair consideration and reasonably equivalent value in exchange for the conveyance of the Assigned Rights conveyed hereunder.

 

5.Metering Data.  SolarCity shall make available to Assignee all data reasonably available to SolarCity that is necessary for Assignee to monitor, measure, verify, calculate, disclose and claim for the benefit of Assignee any matter respecting the RECs included in the Assigned Rights or any aspects thereof pursuant to any present or future protocol, standard, or guidance.  Such data shall include but not be limited to any meter data available from the PV Systems related to the Assigned Rights.  In the event SolarCity is unable to provide such data to Assignee pursuant to this Section 5, SolarCity will use commercially reasonable efforts to ensure that any replacement services provider under the Services Agreement (or any new maintenance services agreement entered into by the Company in replacement of the Services Agreement) will make such data available to Assignee.

 

6.Consent to Collateral Assignment.  Assignee may, and Assignor hereby acknowledges that Assignee may, pledge, grant a security interest in, and collaterally assign all of its rights under this Agreement to the Collateral Agent as security for the obligations of Assignee under the Credit Agreement and the related financing documents.  Assignor irrevocably consents to any such pledge, grant and collateral assignment by Assignee.  In the event that the Collateral Agent elects to exercise its security interest in this Agreement, the Collateral Agent may by notice to the Assignor assume (or transfer its rights and interests to a designee or assignee that shall assume) all rights of Assignee under this Agreement, and Assignor consents to such assumption or transfer and agrees that upon such assumption the Collateral Agent (or such designee or assignee) shall have the right to exercise directly all rights of Assignee under this 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.

 

7.Indemnity.  SolarCity shall defend, indemnify and hold harmless the Assignee and the Third Party Beneficiary (each an “Indemnified Person”) from and against any and all costs, expenses, losses, damages, claims, and liabilities, suffered or sustained by any Indemnified Person (including reasonable fees and expenses of counsel and other professionals) arising out of or resulting from:  (i) the defense of an action, proceeding, motion or other objection in which the sale, conveyance, transfer, assignment and delivery of the Assigned Rights contemplated hereunder is asserted to be any transaction other than a true sale of the Assigned Rights and (ii) with respect to the enforcement or protection of all of Assignee’s and Third Party Beneficiary’s claims and rights under this Agreement, including as part of any restructuring or bankruptcy.

 

8.Acknowledgements and Agreements.  Each of SolarCity and the Company hereby agrees and acknowledges that, from and after the Effective Date, it shall have no right, title or interest whatsoever in or to the Assigned Rights.

 

9.Third Party Beneficiary.  The Third Party Beneficiary shall be entitled to rely upon, shall be an express third party beneficiary of, and shall be entitled to enforce, the provisions of this Agreement, including without limitation, Section 7 and this Section 9.  For the avoidance of doubt, the Agreement shall not be terminated, cancelled, amended, modified, supplemented or changed, or any provision, default, breach or performance waived, or any assignment or novation made in a manner without written consent of the Third Party Beneficiary (to be granted or withheld in its sole discretion).  Notwithstanding any other provision hereof, this Section 9 shall terminate upon the Discharge Date (as defined in the Credit Agreement). The Parties hereto agree that the Third Party Beneficiary shall be an express third-party beneficiary of this Agreement as provided herein.

 

10.Successor and Assigns.  This Agreement shall be binding upon and inure to the benefit of the parties hereto and their respective successors and permitted assigns.

 

11.Further Assurances.  Each Party shall cooperate with the other and execute such instruments or documents and take such other actions as may reasonably be requested from time to time in order to carry out, evidence or confirm their rights or obligations or as may be reasonably necessary or helpful to give effect to this Agreement.

 

12.Governing Law.  This Agreement shall be governed by, and construed in accordance with the laws of the State of New York without regard to principles of conflicts or choice of laws.

 

13.Miscellaneous.  This Agreement may be executed in any number of counterparts, each of which when so executed and delivered shall constitute an original, but all of which counterparts together shall constitute one and the same instrument.  This Agreement cannot be amended, modified or supplemented except by an instrument in writing executed by the Parties (including, for the avoidance of doubt, the Third Party Beneficiary).

 

[Signature Page Follows]

[***] 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.

 

IN WITNESS WHEREOF, the Parties have each caused this Agreement to be duly executed by their respective officers as of the Effective Date.

 

	
SOLARCITY

	
 

	
SolarCity Corporation

	
 

	
By:
	
/s/ Lyndon Rive

	
 
	
Name: Lyndon Rive

	
 
	
Title: Chief Executive Officer

	
 
	
 

	
COMPANY

	
 
	
 

	
[***]

	
 

	
By:
	
/s/ Lyndon Rive

	
 
	
Name: Lyndon Rive

	
 
	
Title: President

	
 
	
 

	
ASSIGNEE

	
 
	
 

	
[***]

	
 

	
By:
	
/s/ Lyndon Rive

	
 
	
Name: Lyndon Rive

	
 
	
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.

 

ANNEX A

 

Definitions

 

“Assigned Rights” means all right, title and interest in and to any and all RECs that are generated, produced or otherwise created by or from each PV System described on Schedule 1 attached hereto during the period from and including the Effective Date through the applicable “End Date” for such PV System, as set forth on such Schedule 1, including for the avoidance of doubt RECs that are minted on or after the Effective Date as a result of the production of energy by any such PV System prior to the Effective Date.

 

“Code” means the Internal Revenue Code of 1986.

 

“Person” means any individual, partnership, limited liability company, joint venture, corporation, trust, unincorporated organization, or governmental entity or any department or agency thereof.

“PV System” means a photovoltaic system, including, as applicable, photovoltaic panels, racks, wiring and other electrical devices, conduit, weatherproof housings, hardware, one or more inverters, remote performance monitoring equipment, connectors, meters, disconnects and over current devices.  For avoidance of doubt, usage-monitoring equipment, if any, shall not be considered a part of the PV System.

 

“RECs” means solar renewable energy certificates or credits issued under any state renewable portfolio standard or federal renewable energy standard, pollution allowances, carbon credits and similar environmental allowances or credits and green tag or other reporting rights under Section 1605(b) of The Energy Policy Act of 1992 and any present or future federal, state, or local law, regulation or bill, and international or foreign emissions trading program, but excluding, for the avoidance of doubt, (i) investment tax credits under Section 48 of the Code, production tax credits available under Section 45 of the Code or other federal, state or local Tax benefits or credits, (ii) state rebates and performance based incentives and (iii) to the extent accruing prior to the Effective Date, any liabilities, including adverse wildlife or environmental impacts.  

 

 

Signature Page to Administrative Agent Action No. 31

[***] 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 1

 

Assigned Rights

 

[***]

 

	
InstallationID
	
JobID
	
State
	
SystemSize
	
SREC Factor
	
EstAnnualProduction
	
Adjust Production
	
MarketTypeName
	
Payment
	
PTODate
	
Year
	
RebateStatusName
	
State Certification
	
NON ID
	
MA 1
	
Fund
	
Draw
	
End Date

	
[Customer data omitted]

 

 

 

Exhibit 1

 

[***] 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 2

UCC-3 AMENDMENT STATEMENT

 

Exhibit 2

 

[***] 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 2

 

[***] 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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