Document:

Exhibit

EXHIBIT 10.04

PG&E Corporation and Pacific Gas and Electric Company
Executive Incentive Compensation Recoupment Policy (Policy)
Effective February 21, 2018

PG&E Corporation and Pacific Gas and Electric Company (each, a Company) provide Section 16 Officers (1) the opportunity to participate in various performance-based short- and long-term compensation arrangements.  Payments under such arrangements are advanced to such Section 16 Officers as earned, vested, or paid (Payments) but remain subject to recoupment as set forth in the Policy.

Under the Policy, the PG&E Corporation Compensation Committee (Compensation Committee), the Board of Directors (Board) of PG&E Corporation, or the Board of Pacific Gas and Electric Company, as applicable based on the delegation described below, may, in good faith exercise of its reasonable discretion seek recoupment of Payments previously advanced to Section 16 Officers upon any of the following Triggering Events described below.  The Board of each Company has delegated the administration of the Policy to the Compensation Committee, including authority to determine whether or not to seek recoupment of Payments, except that with respect to a particular Company’s Chief Executive Officer (2), the Policy will be administered by the Board of such Company.  The Triggering Events are:

		
	1.
	if either Company restates financial statements that were filed with the Securities and Exchange Commission for any of the past three completed fiscal years, and the individual was a Section 16 Officer of either Company during the fiscal year for which the financial statements were restated, or

		
	2.
	if, during any of the past three completed fiscal years, a material miscalculation occurred with respect to the amount of any Payment made to an individual who was a Section 16 Officer at the time of such Payment, or  

		
	3.
	if any individual who served as a Section 16 Officer during the past three years engaged in fraud or other intentional misconduct, and such fraud or intentional misconduct caused material financial or reputational harm to either Company, as determined by the Compensation Committee or the Board of a Company.

Payments subject to recoupment will be no greater than: 

		
	•
	For Triggering Event 1 or 2:  the difference between (i) the amount of any Payment made as a result of the erroneous financial statements or the material miscalculations, as applicable, and (ii) the lower Payment that would have been advanced based on the restated financial statement or in the absence of the material miscalculation, as applicable, or

		
	•
	For Triggering Event 3:  the full amount of Payments during the fiscal year in which the fraud or misconduct occurred.

The Compensation Committee, and the Boards of the Companies, if applicable, may exercise discretion regarding whether to adjust the amount of Payments that are subsequently recouped to account for tax consequences to the current or former Section 16 Officer.

The relevant administrator shall determine, in its sole discretion, the method of recoupment, to the extent permitted by law.  The Policy does not limit the rights of the Companies to pursue other lawful remedies that they deem appropriate or their ability to seek lawful recoupment in appropriate circumstances (including circumstances beyond the scope of the Policy) of any amounts from any individual.

The Policy may be amended or terminated by the Boards of the Companies (with respect to the applicable Company) at any time.

(1) “Section 16 Officer” means an “officer” of either Company who is subject to the reporting and short swing profit liability provisions of Section 16 of the Securities Exchange Act of 1934, as amended.
(2) A Company’s Board of Directors shall administer the Plan with respect to the Company’s President for periods in which the Chief Executive Officer position is not occupied.a7thamendmenttopfloanagr

                                                         EXECUTION VERSION      AMENDMENT NO. 7 TO AMENDED & RESTATED LOAN AGREEMENT                                       PF          THIS AMENDMENT NO. 7 TO AMENDED & RESTATED LOAN AGREEMENT  (PF) (this “Seventh Amendment”), dated as of September 11, 2018, is by and among (i) HASI  CF I Borrower LLC, a Delaware limited liability company (“Borrower HASI”), HAT CF I  Borrower LLC, a Delaware limited liability company (“Borrower HAT I”) and HAT CF II  Borrower LLC, a Delaware limited liability company (“Borrower HAT II”, and together with  Borrower HASI and Borrower HAT I, the “Borrowers”), (ii) Bank of America, N.A., in its  capacity as lender under the A&R Loan Agreement (as defined below) (in such capacity, the  “Lender”), (iii) Bank of America, N.A., in its capacity as administrative agent under the A&R  Loan Agreement (in such capacity, the “Administrative Agent”), and (iv) for purposes of Section  3 only, Bank of America, N.A., in its capacity as administrative agent under the Other Loan  Agreement (in such capacity, the “Other Administrative Agent”).         WHEREAS, the Borrowers, the Lender, and the Administrative Agent are parties to an  Amended & Restated Loan Agreement (PF) dated as of August 12, 2014 (as amended, amended  and restated, or otherwise modified from time to time, the “A&R Loan Agreement”);         WHEREAS, simultaneously with the joining of the Tower Loan (as defined herein) (a)  the Borrowers, the Lender, and the Administrative Agent have agreed to amend certain  provisions of the A&R Loan Agreement as more specifically set forth herein and (b) the Other  Administrative Agent has agreed to consent to such amendments as more specifically set forth  herein.          NOW, THEREFORE, in consideration of the premises and the agreements, provisions  and covenants herein contained, the parties hereto hereby agree as follows:   SECTION 1.  Definitions.  Capitalized terms used in this Seventh Amendment but not defined herein shall have the  meanings ascribed thereto in the A&R Loan Agreement.   SECTION 2.  Required Lender.  The Lender holds 100% of the Outstanding Amount and the aggregate unused Commitments  under the A&R Loan Agreement and thus constitutes the Required Lender for purposes of the  A&R Loan Agreement and this Seventh Amendment.                                                                                                              Project Moon (PF)                                                   Amendment No. 7 to A&R Loan Agreement    

 

 SECTION 3.  A&R Loan Agreement Amendment.   In accordance with Section 15.1.1 of the A&R Loan Agreement and, with respect to the   Administrative Agent and the Other Administrative Agent, Section 2.4(c)(i) of the A&R  Intercreditor Agreement, and in each case subject to the terms set forth herein, as of the date  hereof, the Required Lender, the Administrative Agent, the Other Administrative Agent and each  Borrower hereby agree to amend the A&R Loan Agreement as follows:      i.   Section 1.1 to the A&R Loan Agreement is amended by adding the following defined          terms in alphabetical order:                 “Tower Loan” means the Loan made by the Lenders on September 12, 2018 in                respect of the Tower Underlying Financing in the original principal amount of                $63,022,192.64.                   “Tower Termination Date” means the earlier of (x) July 19, 2021 and (y) such                other date on which the final payment of the principal amount of all of the                Loans become due and payable as herein provided, whether at such stated                maturity date, by declaration of acceleration, or otherwise.                 “Tower Underlying Financing” means the Underlying Financing described in                Underlying Financing Specification No. 23 dated as of September 11, 2018, as                amended.       ii. Section 1.1 to the A&R Loan Agreement is further amended as follows:             a.  by deleting the text “Revolver Termination Date” in the definition of “Change                of Control” and replacing it with the text “Tower Termination Date”            b.   by deleting clause (y) of the definition of “Interest Period” in its entirety and                replacing it with the following:                 (y) no Interest Period shall extend beyond the Revolver Termination Date, other                than Interest Periods with respect to the Tower Loan, which shall not extend                beyond the Tower Termination Date.      iii. Section 2.1.2 of the A&R Loan Agreement is amended by deleting such section in its          entirety and replacing it with the following:           2.1.2. Within the limits of each Lender’s Commitment, and subject to the other terms          and conditions hereof, Borrowers may borrow under Section 4.1, prepay under Section          5.2.2, and re-borrow under Section 4.1. Subject to Sections 5.2.1 and 5.2.2, (i) all          amounts owed hereunder with respect to the outstanding principal amount of each Loan          (other than the Tower Loan) shall be paid in full no later than the Revolver Termination          Date and (ii) all amounts owed hereunder with respect to the outstanding principal          amount of the Tower Loan shall be paid in full no later than the Tower Termination          Date. Principal on the Tower Loan shall be due and payable in accordance with the                                                                                   2                                                                    Project Moon (PF)                                                    Amendment No. 7 to A&R Loan Agreement     

 

    terms and conditions of Underlying Financing Specification No. 23 dated as of      September 11, 2018 and this Agreement.    iv. Section 2.6 of the A&R Loan Agreement is amended by deleting clause (b) in its      entirety and replacement with the following:       (b) the date on which the aggregate principal amount of all Advances made under the      Loan Facility since July 19, 2013 (without regard to any prepayment or repayments      hereunder), is equal to or greater than $1,100,000,000 (the “Maximum Advance      Limitation”), and   v.  Section 3.1.1(c) to the A&R Loan Agreement is amended as follows:         a.  by deleting the text “and” immediately before the text “(iii) on the”.         b.  by adding the text “and (iv) on the Tower Termination Date” immediately after            the text “(iii) on the Revolver Termination Date”.   vi. Section 4.6 to the A&R Loan Agreement is amended by deleting the first sentence      thereof in its entirety and replacing it with the following:             On (i) the Revolver Termination Date set forth in clause (x) of the definition            thereof, all Obligations in respect of the Loans (other than the Tower Loan)            shall be immediately due and payable, (ii) the Revolver Termination Date set            forth in clause (y) of the definition thereof, all Obligations shall be immediately            due and payable and (iii) the Tower Termination Date all Obligations shall be            immediately due and payable.                                                                             3                                                                Project Moon (PF)                                                Amendment No. 7 to A&R Loan Agreement                 

 

   vii. Section 5.2 to the A&R Loan Agreement is amended by deleting such section in its         entirety and replacing it with the following:          5.2. Repayment of Loans. The Outstanding Amount as well as all other amounts due         and payable under the Loan Documents with respect to the Loans (other than the Tower         Loan) shall be due and payable on the Revolver Termination Date, unless payment is         sooner required or accelerated hereunder in which case such Outstanding Amount and         all other amounts shall be due and payable on all Loans, including the Tower Loan, on         such sooner or accelerated date. The Outstanding Amount of the Tower Loan as well as         all other amounts due and payable under the Loan Documents shall be due and payable         on the Tower Termination Date, unless payment is sooner required or accelerated         hereunder in which case such Outstanding Amount and all other amounts shall be due         and payable on such sooner or accelerated date.      viii. Section 9.1.5 to the A&R Loan Agreement is amended by inserting at the end of such         section the following:          (d)  Upon full payment of all Obligations in respect of the Loans (other than the         Tower Loan) following the Revolver Termination Date, the Administrative Agent,         Collateral Agent and Borrowers shall at the Borrower’s cost and expense promptly         thereafter enter into definitive documentation (in form and substance reasonably         satisfactory to each such party) giving effect to the Collateral Release for all Collateral         related to such payment of all such Obligations (other than the Tower Loan).    SECTION 4.  [RESERVED]  SECTION 5.  Seventh Amendment as Loan Document; Representations.     i.  For the avoidance of doubt, the parties hereto agree that this Seventh Amendment shall         be deemed to be a Loan Document under the A&R Loan Agreement.     ii.      [Reserved].      iii. Each Borrower represents and warrants, as to itself and each Related Borrower Party, to         each Agent and the Lender, as of the date hereof, that the following statements are true         and correct:           a.   The execution, delivery and performance by such Borrower of this Seventh               Amendment, and the consummation of the transactions contemplated hereby do               not and will not (i) violate in any material respect (A) any provision of any               Applicable Law with respect to such Related Borrower Party, (B) any of the               Organizational Documents of any Related Borrower Party, or (C) any order,               judgment or decree of any court or other agency of government binding on any               Related Borrower Party; (ii) conflict with, result in a breach of or constitute               (immediately or upon the giving of notice) a default in any material respect                                                                                 4                                                                   Project Moon (PF)                                                   Amendment No. 7 to A&R Loan Agreement    

 

             under any Contractual Obligation of any Related Borrower Party; (iii) result in               or require the creation or imposition of any material Lien upon any of the               properties or assets of any Related Borrower Party (other than any Liens               permitted by or created under any of the Loan Documents in favor of Collateral               Agent, on behalf of the Secured Parties); or (iv) require any approval of               stockholders, members or partners or any approval or consent of any Person               under any Contractual Obligation of any Related Borrower Party;            b.  Such Borrower is duly authorized to execute, deliver and perform its obligations               under this Seventh Amendment.  The execution, delivery and performance of               this Seventh Amendment has been duly authorized by all necessary corporate,               limited liability company or partnerships, as applicable, action on the part of               such Borrower; and            c.  This Seventh Amendment is a legal, valid and binding obligation of such               Borrower, enforceable in accordance with its terms, except as enforceability               may be limited by bankruptcy, insolvency or similar laws affecting the               enforcement of creditors’ rights generally.      iv. For purposes of determining withholding Taxes imposed under the Foreign Account         Tax Compliance Act (FATCA), from and after the effective date of this Seventh         Amendment, each Borrower and each Agent shall treat (and the Lender hereby         authorizes the Agents to treat) the A&R Loan Agreement as not qualifying as a         “grandfathered obligation” within the meaning of Treasury Regulation Section 1.1471-        2(b)(2)(i).   SECTION 6.  Effect of Seventh Amendment.  The amendment set forth herein is limited as written, is effective only in the specific instance and  for the specific purpose for which given, and shall not be deemed to be a waiver of or consent to,  or modification of in any respect, any other term or condition in the A&R Loan Agreement or  any of the documents referred to herein or therein.  The terms and provisions set forth in each  Loan Document are hereby ratified and confirmed by each Borrower in all respects.  Each  Borrower acknowledges and agrees that the execution, delivery and performance of this Seventh  Amendment by the Administrative Agent and of the Lender does not and shall not create (nor  shall Borrowers or any Related Borrower Subsidiary rely upon the existence of or claim or assert  that there exists) any obligation of the Lender and the Administrative Agent to consider or agree  to any amendment of or waiver or consent with respect to any of the Loan Documents, or any  other instrument or agreement to which the Administrative Agent or the Lender is a party  (collectively an “Amendment or Consent”), and in the event that the Administrative Agent or the  Lender subsequently agrees to consider any requested Amendment or Consent, neither the  existence of this Seventh Amendment, nor any other conduct of the Administrative Agent or the  Lender related hereto, shall be of any force or effect on the Administrative Agent’s or the  Lender’s consideration or decision with respect to any such requested Amendment or Consent,  and the Administrative Agent and the Lender shall not have any obligation whatsoever to  consider or agree to any such Amendment or Consent.                                                                                 5                                                                   Project Moon (PF)                                                   Amendment No. 7 to A&R Loan Agreement    

 

SECTION 7.  Governing Law.  This Seventh Amendment shall be governed by the laws of the State of New York.   SECTION 8.  Severability.  Wherever possible, each provision of this Seventh Amendment shall be interpreted in such  manner as to be valid under Applicable Law.  If any provision is found to be invalid under  Applicable Law, it shall be ineffective only to the extent of such invalidity and the remaining  provisions of this Seventh Amendment shall remain in full force and effect.   SECTION 9.  Counterparts; Electronic Signatures.  This Seventh Amendment may be executed in counterparts, each of which shall constitute an  original, but all of which when taken together shall constitute a single contract.  Delivery of a  signature page of this Seventh Amendment by telecopy or other electronic means shall be  effective as delivery of a manually executed counterpart thereof.   SECTION 10.  Amendment Fee.  The Lenders and the Administrative Agent hereby waive the $25,000 “amendment fee” provided  for in Sections 3.24 and 15.1.4 of the A&R Loan Agreement.                            [Signatures Appear on Next Pages]                                                                                   6                                                                   Project Moon (PF)                                                   Amendment No. 7 to A&R Loan Agreement

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