Document:

gnrt_Ex10_3

		

			Exhibit 10.3

		

		
			Dated: 8 November 2017
		

		
			GENER8 MARITIME SUBSIDIARY VII INC. 
as Borrower
		

		
			THE COMPANIES listed in Part A of Schedule 1 
as joint and several Owner Guarantors and 
joint and several Hedge Guarantors
		

		
			GENER8 MARITIME, INC.
as Parent Guarantor
		

		
			THE BANKS AND FINANCIAL INSTITUTIONS listed in Part B of Schedule 1
as Original Lenders
		

		
			CITIBANK, N.A., LONDON BRANCH
as ECA Co-ordinator and ECA Agent
		

		
			NORDEA BANK AB (PUBL), NEW YORK BRANCH 
as Facility Agent and Security Agent
		

		
			SECOND SUPPLEMENTAL AGREEMENT
		

		
			relating to a Facility Agreement, dated as of 30 November 2015 (as supplemented by a Supplemental
Agreement, dated as of 28 December 2015, and as amended and restated by an Amending and
Restating Deed, dated as of 29 June 2016)
for certain term loan facilities of up to $385,227,495 
		

		
			 
		

		
			 
		

		
			

		 

 

		

		
			 
		

		
			Index
		

		
			ClausePage
		

		
			1......................................................DEFINITIONS AND INTERPRETATION3
		

		
			2........................................AGREEMENT OF THE FINANCE PARTIES4
		

		
			3........................................................................................CONDITIONS PRECEDENT4
		

		
			4............................................................................................................REPRESENTATIONS5
		

		
			5.AMENDMENTS TO FACILITY AGREEMENT AND OTHER FINANCE DOCUMENTS6
		

		
			6..................................................................................................FURTHER ASSURANCE7
		

		
			7................................................................................................COSTS AND EXPENSES7
		

		
			8....................................................................................................................................................NOTICES7
		

		
			9........................................................................................................................COUNTERPARTS7
		

		
			10....................................................................................................................GOVERNING LAW7
		

		
			11........................................................................................................................ENFORCEMENT8
		

		
			Schedules
		

		
			Schedule 1 The Parties.............................................................................................................................................9
		

		
			Part A The Obligors...................................................................................................................................................9
		

		
			Part B The Original Lenders.....................................................................................................................................11
		

		
			Execution
		

		
			Execution Pages
		

		
			 
		

		
			 
		

		
			 
		

		
			

		 

		

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			THIS AGREEMENT is made on 8 November 2017 (this “Agreement”)
		

		
			AMONG
		

		
			GENER8 MARITIME SUBSIDIARY VII INC., a corporation incorporated and existing under the laws of the Republic of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 as borrower (the “Borrower”);
		

		
			THE LIMITED LIABILITY COMPANIES listed in Part A of Schedule 1 (The Parties) hereto as joint and several owner guarantors (the “Owner Guarantors”) and as joint and several hedge guarantors (the “Hedge Guarantors”);
		

		
			GENER8 MARITIME, INC., a corporation incorporated and existing under the laws of the Republic of the Marshall Islands whose registered office is at Trust Company Complex, Ajeltake Road, Ajeltake Island, Majuro, Marshall Islands MH96960 as the parent guarantor (the “Parent Guarantor”);
		

		
			THE BANKS AND FINANCIAL INSTITUTIONS listed in Part B of Schedule 1 (The Parties) hereto as lenders (the “Original Lenders” and each, an “Original Lender”);
		

		
			CITIBANK, N.A., LONDON BRANCH as ECA agent (the “ECA Agent”) and as ECA co‐ordinator (the “ECA Co-ordinator”);
		

		
			NORDEA BANK AB (PUBL), NEW YORK BRANCH as agent of the other Finance Parties (as successor of Nordea Bank Finland Plc, New York Branch, the “Facility Agent”); and
		

		
			NORDEA BANK AB (PUBL), NEW YORK BRANCH as security agent for the Secured Parties (as successor of Nordea Bank Finland Plc, New York Branch, the “Security Agent”).
		

		
			BACKGROUND
		

		
			By the Facility Agreement, the Lenders agreed to make available to the Borrower a facility of up to $385,227,495.00.
		

		
			The Obligors have requested certain amendments be made to the financial ratios provided for in the Facility Agreement.
		

		
			This Agreement sets out the terms and conditions on which the Lenders and the other Finance Parties agree, with effect on and from the Effective Date, at the request of the Obligors, to make certain amendments to the financial covenants in the Facility Agreement, certain consequential amendments to the Facility Agreement and the other Finance Documents and certain other minor changes.
		

		
			OPERATIVE PROVISIONS
		

		
			1DEFINITIONS AND INTERPRETATION
		

		
			1.1Definitions
		

		
			In this Agreement:
		

		
			

		 

		

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			“Effective Date” means the later of (i) the date of this Agreement and (ii) the date on which the conditions precedent in Clause 3 (Conditions Precedent) are satisfied or waived.
		

		
			“Facility Agreement” means the facility agreement dated as of 30 November 2015 and made between (i) the Borrower as borrower, (ii) the Owner Guarantors as owner guarantors and as hedge guarantors, (iii) the Parent Guarantor, (iv) the banks and financial institutions named therein as mandated lead arrangers, (v) the Original Lenders as original lenders, (vi) the banks and financial institutions named therein as original hedge counterparties, (vii) the ECA Agent as ECA agent and as ECA co-ordinator, (viii) the Facility Agent as facility agent and (ix) the Security Agent as security agent, as supplemented by a Supplemental Agreement, dated as of 28 December 2015, and as amended and restated by an Amending and Restating Deed, dated as of 29 June 2016.
		

		
			“Party” means a party to this Agreement.
		

		
			1.2Defined expressions
		

		
			Defined expressions in the Facility Agreement shall have the same meanings when used in this Agreement unless the context otherwise requires or unless otherwise defined in this Agreement.
		

		
			1.3Application of construction and interpretation provisions of Facility Agreement
		

		
			Clause 1.2 (construction) of the Facility Agreement applies to this Agreement as if it were expressly incorporated in it with any necessary modifications.
		

		
			1.4Designation as a Finance Document
		

		
			The Borrower and the Facility Agent designate this Agreement as a Finance Document.
		

		
			1.5Third party rights
		

		
			Unless provided to the contrary in a Finance Document, a person who is not a Party has no right under the Third Parties Act to enforce or to enjoy the benefit of any term of this Agreement.
		

		
			2AGREEMENT OF THE FINANCE PARTIES
		

		
			2.1Agreement of the Lenders and the other Finance Parties
		

		
			The Lenders and the other Finance Parties agree, subject to and upon the terms and conditions of this Agreement, to the amendments to the Facility Agreement set out in Clause 5.1 (Specific amendments to the Facility Agreement).
		

		
			2.2Effective Date
		

		
			The agreement of the Lenders and the other Finance Parties contained in Clause 2.1 (Agreement of the Lenders and the other Finance Parties) shall have effect on and from the Effective Date.
		

		
			3CONDITIONS PRECEDENT
		

		
			The agreement of the Lenders and the other Finance Parties contained in Clause 2.1 (Agreement of the Lenders and the other Finance Parties) is subject to:
		

		
			

		 

		

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			(a)no Default continuing on the date of this Agreement and the Effective Date or resulting from the occurrence of the Effective Date;
		

		
			(b)the Repeating Representations to be made by each Obligor being true in all material respects (it being understood and agreed that such representations and warranties shall be deemed to have been made on each of the date of this Agreement and the Effective Date with reference to the facts and circumstances existing as at such dates, except to the extent that such representations and warranties specifically refer to an earlier date, in which they shall be true and correct in all material respects as of such earlier date (but further provided that the representation made under clause 18.7 (Financial Statements; Financial Condition; Undisclosed Liabilities) of the Facility Agreement which shall be made with reference to the latest financial statements provided under the Facility Agreement and as at the last day of the financial period in relation to which such financial statements relate);
		

		
			(c)no event described in paragraph (a) of clause 7.2 (change of control) of the Facility Agreement having occurred on the date of this Agreement or the Effective Date; and
		

		
			(d)the Facility Agent shall have received this Agreement, duly executed by the Obligors and the Lenders.
		

		
			4REPRESENTATIONS
		

		
			4.1Corporate Power and Authority; Legal Validity and Enforceability
		

		
			(a)Each Obligor has the corporate or other applicable power and authority to execute, deliver and perform the terms and provisions of this Agreement and has taken all necessary corporate or other applicable action to authorize the execution, delivery and performance by it of this Agreement.
		

		
			(b)Each Obligor has duly executed and delivered this Agreement, and this Agreement constitutes the legal, valid and binding obligation of such Obligor enforceable against such Obligor in accordance with its terms, except to the extent that the enforceability thereof may be limited by applicable bankruptcy, insolvency, fraudulent conveyance, reorganization, moratorium or other similar laws generally affecting creditors’ rights and by equitable principles (regardless of whether enforcement is sought in equity or at law).
		

		
			4.2No Violation
		

		
			Neither the execution, delivery or performance by any Obligor of this Agreement, nor compliance by it with the terms and provisions thereof, will:
		

		
			(a)contravene any material provision of any applicable law, statute, rule or regulation or any applicable order, judgment, writ, injunction or decree of any court or governmental instrumentality;
		

		
			(b)conflict with or result in any breach of any of the terms, covenants, conditions or provisions of, or constitute a default under, or result in the creation or imposition of (or the obligation to create or impose) any Security (except Other Permitted Security) upon any of the material properties or assets of such Obligor pursuant to the terms of any indenture, mortgage, deed of trust, credit agreement or loan agreement, or any other material agreement, contract or instrument, to which such Obligor is a party or by which it or any of its material property or assets is bound or to which it may be subject; or
		

		
			

		 

		

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			(c)violate any provision of the Constitutional Documents of such Obligor.
		

		
			5AMENDMENTS TO FACILITY AGREEMENT AND OTHER FINANCE DOCUMENTS
		

		
			5.1Specific amendments to the Facility Agreement
		

		
			With effect on and from the Effective Date, the Facility Agreement shall be, and shall be deemed by this Agreement to be, amended as follows:
		

		
			(a)clause 1.1 of the Facility Agreement be amended by:
		

		
			(i)deleting the definition of “Debt Service Coverage Ratio”; 
		

		
			(ii)inserting the following new definition in the appropriate alphabetical order:
		

		
			“Interest Expense Coverage Ratio”  shall mean, for any period, the ratio of the Consolidated EBITDA for such period to the Consolidated Cash Interest Expense for such period.”
		

		
			(b)clause 20.2 of the Facility Agreement be amended by deleting the same in its entirety and replacing it with the following instead:
		

		
			“Interest Expense Coverage Ratio
		

		
			The Parent Guarantor will not permit the Interest Expense Coverage Ratio for any Test Period ending on or after 30 September 2017 to be less than 2.50:1.00.”
		

		
			(c)clause 20.4 of the Facility Agreement be amended by deleting the same in its entirety and replacing it with the following instead:
		

		
			“Maximum Consolidated Leverage
		

		
			The Parent Guarantor will not permit the Consolidated Leverage Ratio to be greater than 0.60 to 1.00 on the last day of any Test Period ending on or after 30 September 2017.” 
		

		
			(d)the definition of, and references throughout to, each Finance Document shall be construed as if the same referred to that Finance Document as amended and supplemented by this Agreement; and
		

		
			(e)by construing references throughout to “this Agreement” and other like expressions as if the same referred to the Facility Agreement as amended and supplemented by this Agreement.
		

		
			5.2Amendments to Finance Documents
		

		
			With effect on and from the Effective Date, each of the Finance Documents, other than the Facility Agreement, shall be, and shall be deemed by this Agreement to have been, amended as follows:
		

		
			(a)the definition of, and references throughout each of the Finance Documents to, the Facility Agreement and any of the other Finance Documents shall be construed as if the same referred to the Facility Agreement and those Finance Documents as amended and supplemented by this Agreement; and
		

		
			

		 

		

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			(b)by construing references throughout each of the Finance Documents to “this Agreement”, “this Deed” and other like expressions as if the same referred to such Finance Documents as amended and supplemented by this Agreement.
		

		
			5.3Finance Documents to remain in full force and effect
		

		
			The Finance Documents shall remain in full force and effect as amended and supplemented by:
		

		
			(a)the amendments to the Finance Documents contained or referred to in Clause 5.1 (Specific amendments to the Facility Agreement) and Clause 5.2 (Amendments to Finance Documents); and
		

		
			(b)such further or consequential modifications as may be necessary to give full effect to the terms of this Agreement.
		

		
			6FURTHER ASSURANCE
		

		
			Clause 21.34 (Further Assurance) of the Facility Agreement shall apply, with any necessary adaptations, in relation to this Agreement.
		

		
			7COSTS AND EXPENSES
		

		
			Notwithstanding anything to the contrary contained in the Facility Agreement, none of the Obligors, the Lenders, the Mandated Lead Arrangers, the Facility Agent or the Security Agent shall be responsible for any costs and expenses (including legal fees) incurred in connection with the negotiation, preparation, printing, execution, syndication and perfection of this Agreement.
		

		
			8NOTICES
		

		
			Clause 38 (notices) of the Facility Agreement, as amended and supplemented by this Agreement, applies to this Agreement as if it were expressly incorporated in it with any necessary modifications.
		

		
			9COUNTERPARTS
		

		
			This Agreement may be executed in any number of counterparts, and this has the same effect as if the signatures on the counterparts were on a single copy of this Agreement.
		

		
			10GOVERNING LAW
		

		
			This Agreement and any non-contractual obligations arising out of or in connection with it are governed by English law.
		

		
			11ENFORCEMENT
		

		
			11.1Jurisdiction
		

		
			(a)The courts of England have non-exclusive jurisdiction to settle any dispute arising out of or in connection with this Agreement (including a dispute regarding the existence, validity or termination of this Agreement or any non-contractual obligation arising out of or in connection with this Agreement) (a “Dispute”).
		

		
			

		 

		

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			(b)The Obligors accept that the courts of England are the most appropriate and convenient courts to settle Disputes and accordingly no Obligor will argue to the contrary.
		

		
			(c)This Clause 11.1 (Jurisdiction) is for the benefit of the Secured Parties only. As a result, no Secured Party shall be prevented from taking proceedings relating to a Dispute in any other courts with jurisdiction. To the extent allowed by law, the Secured Parties may take concurrent proceedings in any number of jurisdictions.
		

		
			11.2Service of process
		

		
			(a)Without prejudice to any other mode of service allowed under any relevant law, each Obligor (other than an Obligor incorporated in England and Wales):
		

		
			(i)irrevocably appoints Cheeswrights as its agent for service of process in relation to any proceedings before the English courts in connection with this Agreement; and
		

		
			(ii)agrees that failure by a process agent to notify the relevant Obligor of the process will not invalidate the proceedings concerned.
		

		
			(b)If any person appointed as an agent for service of process is unable for any reason to act as agent for service of process, the Borrower (on behalf of all the Obligors) must immediately (and in any event within five (5) days of such event taking place) appoint another agent on terms acceptable to the Facility Agent. Failing this, the Facility Agent may appoint another agent for this purpose.
		

		
			This Agreement has been entered into on the date stated at the beginning of this Agreement. 
		

		
			 
		

		
			

		 

		

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			SCHEDULE 1
		

		
			THE PARTIES 
		

		
			PART A 
		

		
			THE OBLIGORS
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Name of Borrower

					
					
						Place of Incorporation or Formation

					
					
						Registration number (or equivalent, if any)

					
					
						Address for Communication

				
	
					
						GENER8 MARITIME SUBSIDIARY VII INC.

					
					
						REPUBLIC OF MARSHALL ISLANDS

					
					
						78649

					
					
						299 PARK AVENUE, 2nd Floor 
NEW YORK, NY 10171-0002 
Attn: Chief Financial Officer 
Telephone: (212) 763-5600 
Facsimile: (212) 763-5608
E-mail: finance@gener8maritime.com

				
	
					
						 

					
					
						 

					
					
						 

					
					
						With a copy to: 

					
						Kramer Levin Naftalis & Frankel LLP 
1177 Avenue of the Americas 
New York, NY 10036 
Attention: Kenneth Chin, Esq. 

					
						Telephone: +1 212 715 9100 
Facsimile: +1 212 715 8000

				

		
			 
		

		
			 
		

			
					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Name of Parent Guarantor

					
					
						Place of Incorporation or Formation

					
					
						 Registration number (or equivalent, if any)

					
					
						Address for Communication

				
	
					
						GENER8 MARITIME INC.

					
					
						REPUBLIC OF MARSHALL ISLANDS

					
					
						31343

					
					
						299 PARK AVENUE, 2nd Floor 
NEW YORK, NY 10171-0002
Attn: Chief Financial Officer 
Telephone: (212) 763-5600 
Facsimile: (212) 763-5608 
E-mail: finance@gener8maritime.com

				
	
					
						 

					
					
						 

					
					
						 

					
					
						With a copy to: 

					
						 

					
						Kramer Levin Naftalis & Frankel LLP 
1177 Avenue of the Americas 
New York, NY 10036 
Attention: Kenneth Chin, Esq. 

					
						 

					
						Telephone: +1 212 715 9100 
Facsimile: +1 212 715 8000

				

		
			 
		

		
			 
		

		

		 

		

			9

		

		

			 

		

 

	
					
						

					
						 

					
					
						 

					
					
						 

					
					
						 

				
	
					
						Name of Owner Guarantor / Hedge Guarantor

					
					
						Place of Incorporation or Formation

					
					
						Registration number (or equivalent, if any)

					
					
						Address for Communication

				
	
					
						GENER8 STRENGTH LLC 
GENER8 SUPREME LLC 
GENER8 SUCCESS LLC 
GENER8 ANDRIOTIS LLC

					
						GENER8 CHIOTIS LLC GENER8 MILTIADES LLC

					
					
						
REPUBLIC OF 
MARSHALL 
ISLANDS

					
					
						963430 
963435 
963434 
963431

					
						963432

					
						963433

					
					
						299 PARK AVENUE, 
2nd Floor 
NEW YORK, NY 10171-0002  
Attn: Chief Financial Officer 
Telephone: (212) 763-5600 
Facsimile: (212) 763-5608 
E-mail: finance@gener8maritime.com

				
	
					
						 

					
					
						 

					
					
						 

					
					
						With a copy to: 

					
						Kramer Levin Naftalis & Frankel LLP 
1177 Avenue of the Americas 
New York, NY 10036 
Attention: Kenneth Chin, Esq. 

					
						Telephone: +1 212 715 9100 
Facsimile: +1 212 715 8000

				

		
			 
		

		
			
		

		
			

		 

		

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			PART B
		

		
			THE ORIGINAL LENDERS
		

			
					
						 

					
					
						 

				
	
					
						Name of Commercial Lender 

					
					
						Address for Communication

				
	
					
						CITIBANK, N.A., LONDON BRANCH

					
					
						Citibank N.A., London Branch, 
Citigroup Centre, Canada Square, 
London, E14 5LB 
c/o Citibank International Limited, 
Poland Branch 
7/9 Traugutta str., 1st Floor 
00-985 Warsaw, Poland 
Attention: Loan Operations Department 
(Kara Catt / Romina Coates — EAF Middle Office) 
Telephone: +44 207986 4881 
Facsimile: +44 207 655 2380 
E-mail:  cibuk.loans@citi.com

					
						With a copy to: 

					
						388 Greenwich Street, 
New York, NY, 10013 
Attention: Meghan O’Connor 
Telephone: +1 212 816 8557 
Facsimile: N/A 
E-mail: meghan.oconnor@citi.com

				
	
					
						THE EXPORT-IMPORT BANK OF CHINA

					
					
						No.30 Fu Xing Men Nei St., Xicheng District 
Beijing, China 100031 
Attention: Transport Finance Department (Jenny Mi/ Wei Zhenyu) 
Telephone: +86 10 83578412/83579512 
Facsimile: +86 10 83578428/9 

					
						Email: 

					
						mijie@eximbank.gov.cn

					
						weizhenyu@eximbank.gov.cn

				
	
					
						BANK OF CHINA, NEW YORK BRANCH

					
					
						Bank of China, New York Branch 
410 Madison Avenue 
New York, NY 10017 

					
						Attention: Operation Service Department 
(Ms. Wenzhen Zhang) 

					
						Telephone: +1 646 231 3143 
Facsimile: +1 212 371 4185

					
						Email:

					
						svnloanadmin.nvb@bocusa.com

					
						wzhang@bocusa.com

				

		
			 
		

		
			 
		

		
			

		 

		

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			EXECUTION PAGES
		

			
					
						 

					
					
						 

				
	
					
						GENER8 MARITIME SUBSIDIARY VII INC., as Borrower

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						/s/ Dean Scaglione

					
					
						 

				
	
					
						Dean Scaglione

					
					
						 

				
	
					
						Vice President and Treasurer

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						GENER8 MARITIME, INC., as Parent Guarantor

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						/s/ Dean Scaglione

					
					
						 

				
	
					
						Dean Scaglione

					
					
						 

				
	
					
						Controller and Treasurer

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						GENER8 STRENGTH LLC, as Owner Guarantor and Hedge Guarantor

				
	
					
						 

					
					
						 

				
	
					
						/s/ Dean Scaglione

					
					
						 

				
	
					
						Dean Scaglione

					
					
						 

				
	
					
						Manager

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						GENER8 SUPREME LLC, as Owner Guarantor and Hedge Guarantor

				
	
					
						 

					
					
						 

				
	
					
						/s/ Dean Scaglione

					
					
						 

				
	
					
						Dean Scaglione

					
					
						 

				
	
					
						Manager

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						GENER8 SUCCESS LLC, as Owner Guarantor and Hedge Guarantor

				
	
					
						 

					
					
						 

				
	
					
						/s/ Dean Scaglione

					
					
						 

				
	
					
						Dean Scaglione

					
					
						 

				
	
					
						Manager

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Signature page to Gener8 Sinosure Second Supplemental Agreement]

		

 

	
					
						

					
						 

					
					
						 

				
	
					
						GENER8 ANDRIOTIS LLC, as Owner Guarantor and Hedge Guarantor

				
	
					
						 

					
					
						 

				
	
					
						/s/ Dean Scaglione

					
					
						 

				
	
					
						Dean Scaglione

					
					
						 

				
	
					
						Manager

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						GENER8 CHIOTIS LLC, as Owner Guarantor and Hedge Guarantor

				
	
					
						 

					
					
						 

				
	
					
						/s/ Dean Scaglione

					
					
						 

				
	
					
						Dean Scaglione

					
					
						 

				
	
					
						Manager

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						GENER8 MILTIADES LLC, as Owner Guarantor and Hedge Guarantor

				
	
					
						 

					
					
						 

				
	
					
						/s/ Dean Scaglione

					
					
						 

				
	
					
						Dean Scaglione

					
					
						 

				
	
					
						Manager

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Signature page to Gener8 Sinosure Second Supplemental Agreement]

		

 

	
					
						

					
						 

					
					
						 

				
	
					
						CITIBANK, N.A., LONDON BRANCH, as Original Lender

				
	
					
						 

					
					
						 

				
	
					
						/s/ Meghan O’Connor

					
					
						 

				
	
					
						Name: Meghan O’Connor

					
					
						 

				
	
					
						Title: Vice President

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Signature page to Gener8 Sinosure Second Supplemental Agreement]

		

 

	
					
						

					
						/

					
					
						 

				
	
					
						THE EXPORT-IMPORT BANK OF CHINA, as Original Lender

				
	
					
						 

					
					
						 

				
	
					
						/s/ Gao Zefeng

					
					
						 

				
	
					
						Name: Gao Zefeng

					
					
						 

				
	
					
						Title: Deputy Manager

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Signature page to Gener8 Sinosure Second Supplemental Agreement]

		

 

	
					
						

					
						 

					
					
						 

				
	
					
						BANK OF CHINA, NEW YORK BRANCH, as Original Lender

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Name:

					
					
						 

				
	
					
						Title:

					
					
						 

				

		
			 
		

		
			
		

		

		 

		

			[Signature page to Gener8 Sinosure Second Supplemental Agreement]

		

 

	
					
						

					
						/C

					
					
						 

				
	
					
						CITIBANK, N.A., LONDON BRANCH, as ECA Co-ordinator and ECA Agent

				
	
					
						 

					
					
						 

				
	
					
						/s/ Christopher Conway

					
					
						 

				
	
					
						Name: Christopher Conway

					
					
						 

				
	
					
						Title: Managing Director

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Nordea Bank AB (publ), New York Branch,  as Facility Agent

				
	
					
						 

					
					
						 

				
	
					
						/s/ Martin Lunder

					
					
						 

				
	
					
						Name: Martin Lunder

					
					
						 

				
	
					
						Title: Managing Director

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						/s/ Jessika Larsson

					
					
						 

				
	
					
						Name: Jessika Larsson

					
					
						 

				
	
					
						Title: Assistant Vice President

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						Nordea Bank AB (publ), New York Branch, as Security Agent

				
	
					
						 

					
					
						 

				
	
					
						/s/ Martin Lunder

					
					
						 

				
	
					
						Name: Martin Lunder

					
					
						 

				
	
					
						Title: Managing Director

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						 

					
					
						 

				
	
					
						/s/ Jessika Larsson

					
					
						 

				
	
					
						Name: Jessika Larsson

					
					
						 

				
	
					
						Title: Assistant Vice President

					
					
						 

				

		
			 
		

		 

		

			[Signature page to Gener8 Sinosure Second Supplemental Agreement]ex_100038.htm

	PERSONAL AND CONFIDENTIAL	Exhibit 10.1

 

 

 

FORM OF RESTRICTED STOCK UNIT AGREEMENT

FOR TIME-BASED RSUs

 

Date: [Insert Date]

 

	
			Company: Ormat Technologies, Inc.

			
	
			Date of Grant:     [Insert Date]

			
	
			Total No. of Restricted Stock Units: [Insert Total Number of RSUs]

			Vesting Schedule: [Sample]

			[Insert Number of RSUs] will vest on [first anniversary of grant date]

			[Insert Number of RSUs] will vest on [second anniversary of grant date]

			[Insert Number of RSUs] will vest on [third anniversary of grant date]

			[Insert Number of RSUs] will vest on [fourth anniversary of grant date]

			

 

(Name and Address)

 

Dear (Name):

 

We are pleased to inform you that, as an eligible employee of Ormat Technologies, Inc. (herein called the “Company”) or one of its subsidiaries, you have been granted one or more restricted stock units (herein called “RSUs”) under the Company’s 2012 Incentive Compensation Plan (as amended and restated) and the Restricted Stock Unit Terms and Conditions (herein called the “Plan” and the “Terms and Conditions”).

 

By your signature, you agree that the RSUs are granted under and governed by the Plan and the Terms and Conditions, and acknowledge receipt of these documents, as well as the Prospectus for the Plan.

 

As set forth in Section 1 of the Terms and Conditions, a signed copy of this agreement must be received by the Corporate Secretary of the Company, c/o Ormat Systems Ltd., Industrial Area, P.O. Box 68, Yavne 8100 Israel before 5:00 P.M. Eastern time on the 3rd business day after the date of grant noted above. If the 3rd business day is a holiday in the United States or in Israel, such signed copy of this agreement will be considered timely received if it is received by 5:00 P.M. Eastern Time on the following business day in the United States and Israel after such holiday. Failure to return a signed copy of this agreement will deem the grant of the RSUs null and void.

 

	
			Very truly yours,

				 
	
			ORMAT TECHNOLOGIES, INC.

				 
	
			_____________________________

				
			____________________________

			
	
			Date:

				
			Signature of Awardee

			

 

 

 

 

RESTRICTED STOCK UNITS

TERMS AND CONDITIONS

 

As a participant in the Ormat Technologies, Inc. 2012 Incentive Compensation Plan (as amended and restated, the “Plan”), you have been granted one or more Restricted Stock Units (herein called “RSUs”) under the Plan. RSUs give you the opportunity to receive at a specified future date, payment of an amount equal to all or a portion of the Fair Market Value of a specified number of shares of Common Stock after the Vesting Date(s) specified in Section 2 below (herein called the letter agreement) multiplied by the applicable percentage of RSUs specified in Section 2 below, subject to your acceptance of the RSUs as provided in Section 1 below and the other terms and conditions described below.

 

The date of the grant of the RSUs (herein called the date of grant) is set forth in the letter agreement.

 

Note that all capitalized terms in the letter agreement and these Terms and Conditions are defined in the Plan, except as indicated in such agreement and herein. All terms of the Plan are hereby incorporated into these Terms and Conditions.

 

	
			1.

				
			Acceptance of RSUs: The RSUs will not be deemed granted unless you sign your name in the space provided on the enclosed copies of the letter agreement and cause one signed copy to be received by the Corporate Secretary of the Company, c/o Ormat Systems Ltd., Industrial Area, P.O. Box 68, Yavne 8100 Israel (or to such other person and place as the Company may specify in writing), before 5:00 P.M. Eastern Time on the 3rd day after the date of grant. If the 3rd day is a holiday in the United States or in Israel, such signed copy of the letter agreement will be considered timely received if it is received by 5:00 P.M. Eastern Time on the following business day in the United States and Israel after such holiday. If the Corporate Secretary does not receive your properly executed copy of the letter agreement before such time, then, anything in the letter agreement and these Terms and Conditions to the contrary notwithstanding, the grant of the RSUs will be deemed null and void ab initio (as of the date of the grant). (Your signing and delivering a copy of the letter agreement will evidence your acceptance of the RSUs upon these Terms and Conditions.)

			

 

	
			2.

				
			Vesting:

			

 

	 	
			(a)

				
			Subject to the provisions of this Section 2 and of Section 5, 6 and 7, the RSUs shall become vested in accordance with the following vesting schedule:

			

 

(i)      ___% of the RSUs shall vest on the ______ anniversary of the date of grant; 

 

(ii)      ___% of the RSUs shall vest on the _______ anniversary of the date of grant;

 

(iii)      ___% of the RSUs shall vest on the _______ anniversary of the date of grant; and

 

(iv)      the remaining __% of the RSUs shall vest on the _______ anniversary of the date of grant. 

 

2

 

 

No fractional shares shall be delivered and fractional shares shall be disregarded. All vesting increments shall be rounded to the nearest whole number of RSUs.

 

	 	
			(b)

				
			The RSUs shall not become vested unless you shall have remained continuously in the employ or service of the Company or of one or more of its Subsidiaries on the applicable Vesting Date, except as provided in Section 5, 6 and 7. Any RSUs that are not vested will terminate on the date of your Separation from Service.

			

 

	
			3.

				
			Issuance of Shares: RSUs will be credited to an account to be maintained on your behalf. The Fair Market Value of any vested RSUs measured as of the Vesting Date will be paid within thirty (30) days of the date such Vesting Date. Payment of any RSUs shall be made by the issuance of shares of Common Stock. 

			

 

	
			4.

				
			Transferability of RSUs: The RSUs shall not be transferable by you otherwise than (i) by will or (ii) by the laws of descent and distribution. Any transferred RSU shall continue to be subject to these Terms and Conditions.

			

 

	
			5.

				
			Death: Section 2 to the contrary notwithstanding, if you incur a Separation from Service because you die, you will become fully vested in any unvested RSUs awarded under the letter of grant to which these Terms and Conditions are attached. 

			

 

	
			6.

				
			Other Separation from Service: 

			

 

(a)     Except as otherwise clearly specified in a duly executed, written, valid and binding agreement between you and the Company, if you incur a Separation from Service before the end of the applicable Vesting Date for any reason other than death, you will immediately forfeit any unvested RSUs. 

 

	 	
			(b)

				
			For the purposes of the letter agreement, your employment by a Subsidiary of the Company shall be considered terminated on the date that the company by which you are employed is no longer a Subsidiary of the Company.

			

 

	
			7.

				
			Change of Control: Section 2 to the contrary notwithstanding, upon a Change of Control, you will become fully vested in any unvested RSUs awarded under the letter of grant to which these Terms and Conditions are attached. 

			

 

	
			8.

				
			Dividend Equivalents: Except as otherwise provided in Section 11, no dividend equivalents shall be payable or accumulated in respect of RSUs.

			

 

	
			9.

				
			Clawbacks: The RSUs are subject to recoupment in accordance with Section 15(i) of the Plan and any other recoupment or clawback policy adopted by the Company. 

			

 

	
			10.

				
			Listing Requirements: The Company shall not be obligated to deliver any certificates representing any shares until all applicable requirements imposed by federal and state securities laws and by any stock exchanges upon which the shares may be listed have been fully met. 

			

 

3

 

 

	
			11.

				
			Transfer of Employment: Leave of Absence: A transfer of your employment from the Company to a Subsidiary or vice versa, or from one Subsidiary to another, without an intervening period, shall not be deemed a Separation from Service. If you are granted an authorized leave of absence, you shall be deemed to have remained in the employ of the Company or a Subsidiary during such leave of absence.

			

 

	
			12.

				
			Adjustments in RSUs:

			

 

(a)     The existence of the letter agreement and the RSUs shall not affect or restrict in any way the right or power of the Board of Directors or the stockholders of the Company to make or authorize any reorganization or other change in its capital or business structure, any merger or consolidation of the Company, any issue of bonds, debentures, preferred or prior preference stock ahead of or affecting the shares or the rights thereof, the dissolution or liquidation of the Company or any sale or transfer of all or any part of its assets or business.

 

	 	
			(b)

				
			In the event of any change in or affecting the outstanding shares by reason of a stock dividend or split, merger or consolidation (whether or not the Company is the surviving corporation), recapitalization, spin-off, reorganization, combination or exchange of shares or other similar corporate changes or an extraordinary dividend in cash, securities or other property, the Board of Directors shall make such amendments to the Plan, the letter agreement, these Terms and Conditions and the RSUs and make such adjustments and take actions thereunder as it deems appropriate, in its sole discretion, under the circumstances. Such amendments, adjustments and actions may include, but are not limited to, (i) changes in the number and kind of shares underlying the RSUs set forth in the letter agreement, and (ii) accelerating the vesting of the RSUs. The determination by the Board as to the terms of any of the foregoing adjustments shall be conclusive and binding.

			

 

	
			13.

				
			Stockholder Rights: Neither you nor any other person shall have any rights of a stockholder as to shares underlying any RSUs unless and until (a) the Company pays or settles any vested RSUs in shares of Common Stock, and (b) such Common Stock shall have been recorded by the Company’s registrar, American Stock Transfer and Trust Company (herein called “AST”), as having been issued or transferred, as the case may be.

			

 

	
			14.

				
			Delivery of Shares: To the extent that any vested RSUs are paid or settled in shares of Common Stock:

			

 

(a)     Certificates for any shares issuable upon exercise will be issued and delivered as soon as practicable, subject to Section 7.

 

	 	
			(b)

				
			If a Registration Statement on Form S-8 is in effect with respect to the RSUs, you can arrange with your stockbroker to have the broker exercise your right on your behalf and have the shares withdrawn from AST electronically by DWAC for deposit in your brokerage account.

			

 

4

 

 

	
			15.

				
			Tax Matters:

			

 

	 	
			(a)

				
			You should consult your tax advisor about tax consequences of the RSUs.

			

 

	 	
			(b)

				
			Tax Withholding for U.S. Employees: If and to the extent Federal income tax withholding (and state and local income tax withholding, if applicable) may be required by the Company in respect of taxes on income you realize upon or after payment or settlement of any portion of the RSUs, or upon disposition of any shares of Common Stock acquired through the payment or settlement of any RSUs, the Company may withhold such required amounts from your future paychecks or may require that you deliver to the Company the amounts to be withheld. You may also pay the minimum required Federal income tax withholding (and state and local income tax withholding, if applicable) by electing either to have the Company withhold a portion of the shares of Common Stock otherwise issuable upon payment or settlement of the RSUs, or to deliver other shares of Common Stock you own, in either case having a fair market value (on the date that the withholding amount is to be determined) of the minimum amount required to be withheld, provided that the election will be irrevocable and will be subject to such rules as the Committee may adopt. You may also arrange to have any tax (or taxes) paid directly to the Company on your behalf from the proceeds of the sale of Common Stock to the extent provided in the notice of exercise referred to in Section 10.

			

 

	 	
			(c)

				
			Tax Withholding For Israeli Employees - The provisions specified in Annex A attached hereto shall apply only to Eligible Individuals who are residents of the state of Israel or those who are deemed to be residents of the state of Israel for the payment of tax, from the date of the grant and until the last Exercise date. 

			

 

	 	
			(d)

				
			Section 409A. The grant, vesting, payment and settlement of the RSUs are intended to be exempt from the requirements of Code Section 409A. Notwithstanding any other provision of the letter agreement, these Terms and Conditions or the Plan to the contrary, the Company makes no representation regarding the status of any RSUs under Code Section 409A.

			

 

	
			16.

				
			Employment or Other Service: Nothing contained herein shall confer any right to continue in the employ or other service of the Company or a Subsidiary or limit in any way the right of the Company or a Subsidiary to change your compensation or other benefits or to terminate your employment or other service with or without cause.

			

 

	
			17.

				
			Short-Swing Trading: If you are a director or executive officer of the Company or one of its subsidiaries who is granted RSUs, you must report such grant, the vesting or settlement of such RSUs and any sale of Common Stock received upon settlement of any RSUs, on a Form 4 (Statement of Changes of Beneficial Ownership of Securities) within two business days of such reportable event pursuant to Section 16(a) of the Securities Exchange Act of 1934, as amended. The Corporate Secretary of the Company will provide you with a form of the Form 4 upon request, but such filing is the personal responsibility of the holder of RSUs. All holders of RSUs should consult the Company’s Insider Trading Policy before arranging any trade in any of the Company’s securities, including Common Stock. 

			

 

5

 

 

	
			18.

				
			Time of Essence: Time is of the essence with respect to delivering notices and stock certificates hereunder. There is no grace period.

			

 

	
			19.

				
			Successors: These Terms and Conditions are binding on your heirs and personal representatives and on the successors of the Company.

			

 

	
			20.

				
			Counterparts: The letter agreement may be executed in duplicate counterparts, each of which shall be deemed to be an original.

			

 

6

 

 

Annex A

 

ORMAT TECHNOLOGIES, INC.

 

AMENDED AND RESTATED 2012 INCENTIVE COMPENSATION PLAN

 

TAX WITHOLDING FOR ISRAELI EMPLOYEES

 

(e)     Tax Withholding For Israeli Employees - The provisions specified hereunder shall apply only to Eligible Individuals who are residents of the state of Israel or those who are deemed to be residents of the state of Israel for the payment of tax (such persons, “Israeli Participants”), from the date of the grant and until the last Exercise date. 

 

(i)     For the purposes of this Annex A, the following terms shall have the following meanings:

 

	 	
			● 

				
			“Affiliate” means any “employing company” within the meaning of Section 102(a) of the Ordinance.

			

 

	 	
			●

				
			“Approved 102” means an Award granted pursuant to Section 102(b) of the Ordinance and/or additional rights issued with respect thereto, including, but not limited to, bonus shares, and held in trust by a Trustee for the benefit of the Employee.

			

 

	 	
			●

				
			“Capital Gain (CG)” means an Approved 102 elected and designated by the Company to qualify under the capital gain tax treatment in accordance with the provisions of Section 102(b)(3) of the Ordinance.

			

 

	 	
			●

				
			“Controlling Shareholder” shall have the meaning ascribed to it in Section 32(9) of the Ordinance.

			

 

	 	
			●

				
			“Employee” means a person who is employed by the Company or an Affiliate, including an individual who is serving as a director or an office holder, but excluding any Controlling Shareholder, all as determined in Section 102 of the Ordinance.

			

 

	 	
			●

				
			“ITA” means the Israeli Tax Authority.

			

 

	 	
			●

				
			“Ordinary Income (OI-)” means an Approved 102 elected and designated by the Company to qualify under the ordinary income tax treatment in accordance with the provisions of Section 102(b)(1) of the Ordinance.

			

 

	 	
			●

				
			“Ordinance” means the Israeli Income Tax Ordinance [New Version] 1961 as now in effect or as hereafter amended.

			

 

	 	
			●

				
			“Rules” means the Israeli Income Tax Rules (Tax Relief in Issuance of Shares to Employees) 2003.

			

 

A-1

 

 

	 	
			●

				
			“Section 102” means Section 102 of the Ordinance and any regulations, Rules, orders or procedures promulgated thereunder as now in effect or as hereafter amended.

			

 

	 	
			●

				
			“Trustee” means any individual or trust company appointed by the Company to serve as a trustee and approved by the ITA, all in accordance with the provisions of Section 102(a) of the Ordinance.

			

 

	 	
			●

				
			“Unapproved 102 ” means an Award granted pursuant to Section 102(c) of the Ordinance and not held in trust by a Trustee.

			

 

(ii)     Any tax liability, of any kind due to the Plan, or resulting from it (including, without derogating from the aforementioned, income tax, capital gains tax, social security and health tax), and any other obligatory payment applicable as a result of the grant of the right, its exercise and your receipt of Common Stock as a result of such exercise (“the Shares”), will be fully borne by the Employee.

 

(iii)     The Company recommends that you consult with professional advisors and that you consider the tax implications, including the result of the application of Section 102, of the grant of the right, of its exercise and of the receipt of any Shares.

 

(iv)     With respect to any Approved 102, subject to the provisions of Section 102, an Employee shall not sell, release, assign, transfer or give as collateral or any right with respect to them given to any third party whatsoever (collectively “Transfer”) from trust any Share received upon the exercise of an Approved 102 and/or any share received subsequently following any realization of rights, including without limitation, bonus shares, until the lapse of the minimal restriction period (as defined below) required under Section 102. Notwithstanding the above, if any such sale or other Transfer occurs during the minimal restriction period, the sanctions under Section 102 shall apply to and shall be borne solely by such Employee.

 

(v)     In accordance with the provisions of Section 102, the Trustee will hold the right in trust for the benefit of the Employee until the right is exercised, if at all (or until the termination of the exercise period, to the extent the right remains unexercised, as applicable). Consequently, the Trustee will hold the right and/or the Shares (including any bonus shares or shares derived from issuance of rights exercised during the right’s exercise period) in trust for the benefit of the Employee for at least (i) in the case of a CG, 24 months from the date on which the right are granted and deposited with the Trustee; or (ii) in the case of an OI-, 12 months from the date on which the Right are granted and deposited with the Trustee (the “minimal restriction period”), and will not transfer the right and the Shares to the Employee prior to the full payment of the applicable taxes. Transfer of the Shares from the Trustee to the Employee or their sale by the Trustee prior to the termination of the minimal restriction period, might involve tax implications (which the Employee should consider prior to taking any such action).

 

A-2

 

 

(vi)     The Company has contracted with the Trustee with respect to the right and the Shares (the “trust agreement”) and the provisions of the trust agreement will apply and obligate any Employee who receives rights under the Plan. The main provisions of the trust agreement are: (i) the Company will not allot rights to its Employees but will allot them to the Trustee who will hold them for at least the minimal restriction period; (ii) during the minimal restriction period, the rights and the Shares will not be transferable; and (iii) after termination of the minimal restriction period, the Employee will be entitled to demand that the Trustee transfer the Shares to the Employee’s name, provided either: (A) the tax applicable to the Employee under Section 102 has been paid and the Trustee holds a confirmation for the payment issued by the ITA; or (B) the Trustee has transferred to the ITA the appropriate percentage amount (determined in accordance with the applicable tax rate) of the consideration received by it for the sale of the Shares, on account of the applicable tax. The Plan and the trust agreement will apply to any bonus shares and/or rights granted to the Employee, mutatis mutandis.

 

(vii)     The Company has undertaken not to allot right to Employees under Section 102, unless it received a confirmation from the Employee that the Employee undertakes vis-a-vis the ITA not to exercise the right prior to the termination of the minimal restriction period.

 

(viii)     The transfer of the Shares from the Trustee to the Employee or their sale by the Trustee for the benefit of the Employee, all in accordance with the Employee’s order, is possible and may be done in accordance and under the rules, conditions and arrangements to be agreed between the Company and the Trustee and in accordance and subject to applicable law and arrangements (if existing) with the tax authorities.

 

(ix)     The provisions of Section 102 will apply on the right to be granted to the Employees, (i.e., allotment via Trustee), in the capital lane. Any tax debit to the Employee will occur upon the earlier of the time the Shares will be transferred from the Trustee to the Employee or the time of the sale of the securities by the Trustee, without any debit occurring at the time the right will be allotted.

 

(x)     In accordance with Section 12(c)(ix) above, and since the Company has chosen the capital gains lane, as specified in Section 102, any income from the realization of the benefit by the Employee will be deemed as a capital gain and will be taxed at the applicable rate in accordance with Section 102 , excluding the portion of the income equaling the difference between the exercise price and the average price of the Common Stock during the 30 trading days prior to the allotment, which will be deemed as working income and will be subject to income tax, according to the rate applicable to the Employee, and social security tax and health tax.

 

(xi)     With regards to Approved 102 , the provisions of the Plan shall be subject to the provisions of Section 102 and the Tax Assessing Officer’s permit and/or any pre-rulings obtained by the ITA, and the said provisions, permit and/or pre-rulings shall be deemed an integral part of the Plan. Any provision of Section 102 and/or the said permit which is necessary in order to receive and/or to keep any tax benefit pursuant to Section 102, which is not expressly specified in the Plan, shall be considered binding upon the Company and the Employees.

 

A-3

 

 

(xii)      Any tax consequences arising from the grant or exercise of any Award, from the grant of right and/or the Shares, from the payment for shares covered thereby or from any other event or act (of the Company, and the Trustee or the Employee), hereunder, shall be borne solely by the Employee. The Company and/or the Trustee shall withhold taxes according to the requirements under the applicable laws, rules, and regulations, including withholding taxes at source. Furthermore, the Employee shall agree to indemnify the Company and/or the Trustee and hold them harmless against and from any and all liability for any such tax or interest or penalty thereon, including without limitation, liabilities relating to the necessity to withhold, or to have withheld, any such tax from any payment made to the Employee.

 

(xiii)     The Company and/or, when applicable, the Trustee shall not be required to release any share certificate to an Employee until all required payments (including any tax liability) have been fully made.

 

(xiv)     With respect to an Unapproved 102, if the Employee ceases to be employed by the Company, the Employee shall extend to the Company a security or guarantee for the payment of tax due at the time of sale of Shares, all in accordance with the provisions of Section 102.

 

 

A-4

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